UNIT 3: The Agencies of Development
Liberalization
- Reducing government regulations and restrictions
- Opening trades and markets for more free trade
Trade
Human activity that facilitates cultural interaction to gain more
informed understanding of other societies
World Trade Organization
Organization that aims to promote trade liberalization “by policing free trade agreements, encouraging countries to abolish import tariffs and other trade restrictions
China’s One Belt One Road initiative (BRI)
China’s attempt at improving connectivity through foreign investments and efficient use of foreign reserves for infrastructure development especially in Asia and Africa
Fair trade in development
- provides producers with financial certainty and continuity
GATT
General Agreement on Tariffs and Trade (revive international trade)
Critiques on WTO
- Too powerful
- Lack of openess and accessibility
- WTO reduces the ability of LEDC's to pursue national trade policies
The Doha Round
Intended to achieve major reform of the international trading system through the introduction of lower trade barriers
NGOs
Non-government organisations working towards various environmental or humanitarian goals
- funded by multilateral donnors
Civil society
Those groups that occupy the realm between the household and the state
- trade unions
- cooperatives
- community groups
IMF
Major financial agency of the UN --> provides funds in order to accomplish their objectives
- Main aim = to promote global monetary cooperation
What is the debt crisis
When a country is unable to meet its debt obligations
- Finds its origins in the colonial period
SAP's
Structural Adjustment Programmes
- countries need to implement them to have some financial assistance
Debt Relief
Debt cancellation in the most direct way
HIPC
Heavily Indebted Poor Countries Initiative
- Attempt from the international community to alleviate debt by the WB and IMF
- Takes a long time to be qualified and its a strict criteria
Different types of aid
1. Tied Aid
- Bilateral aid
-multilateral aid
2. Non-governmental aid from international charities
- Funded by private donations
- NGO's provide support and expertise
Does aid work? 4 types
1. Waisted Aid
- Embezzeled aid
- inappropriate projects
2. Aid undermining the indigenous authority
- harmful to selfesteem
- improuvement in assitance needed
3. Trade rather than aid
- countries pursuing sound economic policies
- trade relations in development
4. self interested and aid imperialism
- aid is not directed to poorest countries but where interest is served
-Aid preserves the status quo with economis relations
G8
France, Germany, Italy, UK, Japan, US, Canada, Russia (formerly)
- Most powerful economies in the world that joined together in an institution
- Meet to pre discuss topics
- Aid, debt, trade, how to help countries
- No representative for Africaa