18 Questions
Which economic approach was characterized by market liberalization and state non-intervention?
Neoliberalism + Structural Adjustment Programs
What was a key objective of the Bretton Woods system established after World War II?
To stabilize exchange rates and promote international monetary cooperation
Which economist played a key role in shaping the policies of the International Monetary Fund (IMF) at its inception?
Harry Dexter White
What was a major criticism of the Structural Adjustment Programs (SAPs) implemented by the IMF and World Bank in the 1980s?
They disproportionately impacted women by cutting social services.
How did the World Bank's approach to development change in the 2000s, according to the text?
It began to measure development beyond just GDP, to include well-being and social justice.
What was the key criticism of traditional development models according to the 2010s Post-Development Theory?
They were too top-down and failed to incorporate local, diverse perspectives.
What was the primary objective of the International Monetary Fund (IMF) established at the Bretton Woods conference?
To ensure the stability of the international monetary system
How did the views of John Maynard Keynes and Harry Dexter White differ regarding the approach to global economic governance?
Keynes advocated for a more ambitious and centralized approach, while White preferred a more pragmatic and conservative approach.
Which of the following was a key outcome of the Bretton Woods system?
The establishment of the International Bank for Reconstruction and Development (IBRD), now known as the World Bank Group
How did the Bretton Woods system attempt to promote peace and economic cooperation after World War II?
By designing the IMF and World Bank to assist in reconstruction, development, and ensure stable and balanced growth
What was the role of the (failed) International Trade Organization (ITO) in the Bretton Woods system?
It was intended to oversee and manage global trade, but ultimately failed to be established.
How did the mercantilist-style policies adopted by the US, Nazi Germany, Mussolini's Italy, and Japan in the inter-war period impact the global economy?
They led to retaliatory tariffs from other countries, reducing international trade.
What is the primary function of the International Monetary Fund (IMF)?
Provide financial resources and policy advice to member countries
Which international organization primarily aimed at rebuilding Europe after World War II?
International Bank for Reconstruction and Development (IBRD)
Who was one of the key figures in designing the Bretton Woods system of exchange rates and international payments?
John Maynard Keynes
What was the main reason for the failure of the International Trade Organization (ITO) to come into existence?
Failure of the United States Congress to ratify the Havana Charter
Which organization primarily provides short-term loans to member countries facing balance of payments problems?
International Monetary Fund (IMF)
What is the main focus of the World Bank in terms of its financial assistance?
Offering long-term loans for infrastructure projects
Study Notes
Development Theories and Paradigms
- 1980s: Neoliberalism and Structural Adjustment Programs (SAPs) emphasized economic growth through market liberalization and state non-intervention, but often led to cuts in social services, impacting women disproportionately.
- 1990s: Sustainable Development focused on economic development with environmental stewardship, highlighting long-term ecological viability.
- 2000s: Human Development and Capabilities Approach, based on Amartya Sen's work, expanded human freedoms and choices, measuring development beyond GDP to include well-being and social justice.
- 2010s: Post-Development Theory and Gender Critique challenged traditional development models, advocating for diverse, locally-driven approaches to well-being and progress, and honoring women's, non-binary, and Indigenous ways of knowing.
Asian and Chinese Approaches to International Development
- 2010s onwards: One Belt One Road, a return to big infrastructure projects.
Measuring Societal Progress
- GDP (Gross Domestic Product) and GDP per Capita are common measures of development.
- Gini Coefficient measures income inequality.
- HDI (Human Development Index) is another measure of development, which goes beyond GDP.
Historical Context of Global Economic Governance
- Post-WW2: The Bretton Woods System aimed to drive peace through economic cooperation.
- Major players: John Maynard Keynes (UK) and Harry Dexter White (USA) had differing approaches to global economic governance.
- 1944: The Bretton Woods Agreement established the IMF and World Bank.
International Organizations and Governance
International Monetary Fund (IMF)
- Objective: Ensure the stability of the international monetary system.
- Functions: Monitors global economic trends, provides economic analysis and policy advice, offers financial resources and technical assistance, and provides short-term loans.
International Bank for Reconstruction and Development (IBRD)
- Objective: Reduce poverty in middle-income and creditworthy poorer countries.
- Functions: Provides loans, guarantees, risk management products, and analytical and advisory services, focusing on long-term economic development and poverty reduction.
Global Agreement on Tariffs and Trade (GATT) and World Trade Organization (WTO)
- Objective: Reduce tariffs and other trade barriers through multilateral negotiations, promoting free trade and economic growth globally.
- GATT was succeeded by the WTO in 1995.
Historical Events and Agreements
- 1947: GATT was established as a temporary agreement until ITO.
- 1948: Havana Charter outlined the ITO, which would have had broader authority to address economic issues beyond tariffs.
- ITO never came into existence due to the failure of the United States Congress to ratify the Havana Charter.
Learn about the functions of the International Monetary Fund (IMF) which focuses on global economic trends, policy advice, financial resources, and providing short-term loans to stabilize currencies.
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