Bretton Woods Institutions Lesson 2 PDF

**UNIVERSITY OF THE CORDILLERAS** **College of Arts and Sciences** **Department of Political Science** **[MODULE 3 IN SOCIAL SCIENCE 103N ]** **[(THE CONTEMPORARY WORLD) ]** **LESSON 2** ------------------------------- **BRETTONWOODS INSTITUTIONS** ------------------------------- **OBJE...

**UNIVERSITY OF THE CORDILLERAS** **College of Arts and Sciences** **Department of Political Science** **[MODULE 3 IN SOCIAL SCIENCE 103N ]** **[(THE CONTEMPORARY WORLD) ]** **LESSON 2** ------------------------------- **BRETTONWOODS INSTITUTIONS** ------------------------------- **OBJECTIVES:** +-----------------------------------------------------------------------+ | **At the end of the topic, students are expected to:** | | | | 1. identify the actors that promote economic globalization and | | describe their contributions to the failure of neoliberalism. | | | | 2. cite the differences between the World Bank and the IMF in terms | | of their operation and openness to reforms and the corresponding | | consequences\` | | | | 3. define tax havens, shell companies, and transfer pricing and | | describe briefly how each of these sustains or widens the gap | | between the Global South and the Global North | | | | 4. make a reflection on their learnings about the lesson. | +-----------------------------------------------------------------------+ **TEACHING-LEARNING ACTIVITY/LESSON PROPER:** +-----------------------------------------------------------------------+ | **THE BRETTONWOODS INSTITUTIONS (IMF-WB)** | | | | Lichauco (1988) noted that "these were conceived by USA because of | | its fear that after the war, nations, particularly those from Western | | Europe, would continue the protectionist practices that marked their | | policies before the war. | | | | America's post-war problem was overproduction; so, it became | | imperative that countries do not place obstacles to her exports. The | | post-war economic order had to be reorganized and reconstructed on | | the basis of free trade. | | | | Steger (2003) explained that the International Monetary Fund (IMF) | | was created to administer the international monetary system. The | | International Bank for Reconstruction and Development, later known as | | the World Bank (WB), was initially designed to provide loans for | | Europe\'s postwar reconstruction. | | | | In practice, Lichauco (1988) observed that both institutions would | | provide the finance capital of which the post-war world be in | | desperate need, on condition that the loan recipients kept their | | foreign exchange and import policies "essentially free from | | restrictions." Tariffs would be tolerated, but definitely not import | | controls and controls on foreign exchange transactions. The | | elimination of tariff was entrusted to the General Agreement of | | Tariff and Trade (now World Trade Organization \[WTO\]). | | | | **World Trade Organization (WTO).** Steger (2003) noted that "the | | General Agreement on Tariffs and Trade was established in 1947 as a | | global trade organization charged with fashioning and enforcing | | multilateral trade agreements. In 1995, the World Trade Organization | | was founded as the successor organization to GATT. | | | | Madeley (2003) added that the WTO is an organization that furthers | | liberalization to the chief benefit of those who stand to gain most | | from liberalization -- in practice the TNCs. The WTO is both a forum | | for trade liberalization and a judge on those who transgress, | | exercising considerable and direct power through its dispute | | settlement mechanism. | | | | Ibon Databank and Research Center (2005) reported that, "a decade | | after the founding of the WTO, agriculture subsidies in developed | | countries have remained high while elimination of quantitative | | restrictions and tariff cuts around the world have facilitated a | | dramatic increase in dumping of commodities by agribusiness TNCs. | | | | Hundreds of billions are paid out by rich countries for agricultural | | support, while underdeveloped countries are prohibited from | | protecting their agricultural sectors at all. | | | | [**Three Features of Economic Globalization** ] | | | | 1. 2. 3. | | | | Achbar, M. & Abbott, J. (2003, September 10). The corporation. | | (YouTube files). | | | | Cooke, S. (2012). Revised version of enslavement of a lesser being. | | Retrieved from: https://www.p | | oetrysoup.com/poem/revised\_version\_enslavement\_of\_a\_lesser\_bein | | g\_371398 | | | | Geier, L. (2008). Just a bit of meditation. Retrieved from: | | | | just\_a\_bit\_of\_meditation\_\_112440 | | | | Martin, W. (2017). Americanisation. Retrieved from: | | https://www.poetrysouamericanisation\_917224p.com/poem/ | | | | Steger, M.B. (2003). Globalization: A very short introduction. New | | York: Oxford University Press. Retrieved from: | | | | | +-----------------------------------------------------------------------+