GG - Unequal Power Relations

Describe the difference in power that HICs and LICs tend to have:

• HICs tend to have more power because they have more wealth and resources available to them.

• They also tend to have more and deeper relations with other countries, making them more influential

• In contrast, LICs often have less power and can only respond to decisions made by HICs, rather than influence them

Describe how unequal power relations can impact the environment:

• HICs tend to make decisions against combatting climate change (e.g. Trump pulling the US out of the Paris Agreement) even though they tend to be the ones least affected by climate change

• Additionally, TNCs from HICs can force LICs to reduce their environmental protections before they invest there

• LICs can be dependent on the TNCs for development, making them vulnerable to this exploitation.

Describe how unequal power relations can impact trade:

• HICs control trade agreements, making them more beneficial for themselves

• LICs may have to reduce tariffs, lower taxes or set up SEZs which may negatively impact their economy

How do some global financial institutions reinforce unequal power relations?

• The IMF and World Bank can reinforce unequal power relations

• E.g. they can add conditions to loans e.g. deregulation or privatisation

• This can reduce investment into healthcare and education

Describe how the WTO has reinforced unequal power relations:

• The WTO has been accused of being biased towards HICs

• Their president is always from the USA

• Some examples include:

  • High duties and quotas in HICs, reducing imports from LICs and NEEs

  • The protection of HIC agriculture but the pressure on LICs to open their markets to international produce

  • Developing countries aren’t represented as much in the WTO