Economic global governance

How is economic global governance done?

Range of IGOs, trade agreements and regional trade blocs

What is the aim of economic global governance?

Liberalise trade and enable economic growth while trying to prevent economic slumps such as the Great Depression

What does IMF stand for?

International Monetary Fund

What does WB stand for?

World Bank

What does WTO stand for?

World trade organisation

What was the initiative of the Bretton Woods meeting?

The initiative came from the US following WW2 and aimed to protect markets for US goods and stimulate economic growth to protect against communism. This meeting was between the US, UK and 42 other states in 1944.

When did the Bretton Woods agreement come into force?

1958

When did the Bretton Woods agreement collapse and what did this do to the value of the US dollar?

1978 - decreased value of US dollar

What was the purpose of the Bretton Woods agreement?

They aimed to maintain stable exchange rates by fixing all currencies in value to the US dollar.

What was the need for the Bretton Woods agreement?

Following WW2 the US had a majority of the wolds gold meaning currencies could not longer be fixed to the value of gold.

What is the G-7 and when did they first meet?

1075 - USA, France, Germany, UK, Japan, Italy, Canada

What is the G-8 and when did they first meet?

G-7 plus Russia

When did the G-20 first meet?

2008

How many members does the IMF have?

191

When was the IMF formed?

1945

Describe the IMF relationship with the UN

Independent from but has a close working relationship with the UN

Who is the managing director of IMF?

Kristalina Georgieva

Describe the IMF supervisory role in global governance

Previously, the had been managing the system of fixed exchange rates which tied all currencies to the value of a US dollar. This was to provided stability for exchange rates so that business had more confidence in their trade. This was however abandoned in 191and now the IMF simply supervises exchange rates to ensure stability rather than controlling them.

Describe the IMF loan role

They provide low-interest/no-interest loans to states tat are experiencing economic crisis with the aim to help the start recover. They do this to protect the global economy being contaminated and dragged into recession.

Describe the IMF monitoring role

They monitor trends of the global economy and ensure that member states are carrying out economically sensible policies i.e. they warned Liz Truss about her proposed tax cut that threatened to destabilise the UKs public finances and increase inflation

Describe IMF role in expertise

Most member states lack economic expertise of the richest countries meaning they provide them support and advice over matters of economy such as tax and reform

How did the global financial crisis in 2007/2009 undermine the IMF?

Their role is to prevent financial crisis yet they failed to foresee and prevent it.

What type of system is the IMF?

It is a contributory system meaning member states pay subscriptions in relation to the size of their economies and size of loans available to states varies accordingly.

Who contributes the most to the IMF and what does it mean?

USA - this means they hold the most influence over the IMF (16% of votes)

What caused the global financial crisis?

Banks were loaning out more than they could afford prior to houses prices falling meaning they were losing money

How did the IMF contribute to the global financial crisis?

They failed to foresee and prevent the crisis which was their main role.

What did the IMF do to promote recovery from the global financial crisis and hep prevent future crisis?

They provided £700 billion to held recover the economies of those states affected as well as strengthened their surveillance and risk analysis so it can gives early warnings of trends that might lead to difficulties.

When was the World Bank created?

1944

How many World Bank members are there?

180

What is the difference between the World Bank and IMF?

IMF provided short term loans whereas World Bank focuses on long term aims of reducing poverty and aiding development

What is the concern of the World Bank loaning to developing countries?

Puts them in huge amounts of debt which they may not be able to pay back

What does the World Bank do?

Aim to aid long term development such as the reduction of poverty and improvement of living quality

Where is the World Bank based and why may this be problematic?

Washington DC - gives US a more dominant influence

Who is the president of World Bank?

Ajay Banga