How can superpowers influence the global economy?

• Bretton Woods, USA 


  International monetary fund was born, global heads went to the retreat to tell other countries what to do with their money

  INFLUENCE
• Davos, Switzerland 


  World economic forum annual meeting

  Spread western ideology
• The rise of the current economic system

  Since the Cold War, the world has been dominated by free market capitalism
• What is meant by the term free market capitalism?

  Private ownership of property, private ownership of businesses, right to make a profit and accumulate wealth
• How is free market capitalism promoted around the world?

  International government organisations offer the idea of free market capitalism to emerging countries - can be seen as taking advantage
• What are international government organisations?

  Regional or global organisations whose members are nation states
• What do IGO’s do?

  They uphold treaties and international law as well as allowing cooperation on issues such as trade economic policy, human rights, military, and conservation
• What does the world bank do?

  Makes development loans to developing countries but within a free market model that promotes export, industrialisation, and private businesses- benefiting large developed world TNCs
• what does the international monetary fund do?

  promotes global economic security and stability, and assist countries to reform their economies
• What does the international monetary fund mean by economic reform?

  Economic reforms often mean more open access to developing economies for TNC’s
• what is the world economic forum?

  A Swiss nonprofit organisation that promotes globalisation and free trade, via its annual meetings at Pavos, which bring together the global businesses and political elite
• What is the world trade organisation and what does it do?

  Is an international government organisation that regulates global trade and tries to liberalise trade, established in 1995
• What is the goal of the world trade organisation?

  To help produces of goods and services, exporters and importers, conduct their business and also allows governments to meet their own objectives
• criticisms of the WB and IMF

  -loans set without regard to the borrower countries circumstances

  -IMF packages also associated with negative social outcomes, like reduced investment in public health/education
• IGOs link to the modernisation theory

  take off and how they need to export materials to generate income which can occur due to free trade, loans
• IGOs link to the Dependency theory

  Developed countries control developing nations by setting prices paid for commodities

  although free trade exists IGOs decisions are made by developing countries