5.9

• What are the World Bank, IMF, and WTO, and what are their main roles?

  IMF: Ensures global financial stability by lending to countries with unstable currencies. World Bank: Funds development projects to reduce poverty and support growth. WTO: Promotes global trade by reducing tariffs and trade barriers.All three follow the Washington Consensus, favouring deregulation and free-market capitalism.
• : What is the HIPC initiative, and what conditions are attached?

  The Highly Indebted Poor Countries (HIPC) initiative was launched by the IMF & World Bank in 1996. It offered partial debt write-offs to 36 of the poorest countries in exchange for: Good financial governance, Anti-corruption measures and Spending debt relief savings on healthcare, education & poverty reduction
• How did Uganda benefit from HIPC?

  Uganda had $1.9B in debt by 1992. In 2000, it qualified for debt relief under HIPC, As a result, government spending rose 20%. Introduced free primary schooling, improving access to education
• How do regional trade blocs and single markets work?

  Trade blocs allow free movement of goods, services, and people across borders without tariffs. Single markets require harmonised economic policies and cooperation (centripetal forces). However, nationalism (a centrifugal force) can weaken these groups—as seen in Brexit, where concerns over sovereignty led to the UK leaving the EU, despite economic benefits.
• What have been the effects of IMF and World Bank loans, especially in the 70s–80s?

  Loans helped developing nations, but rising global interest rates made repayment difficult. In return for help, countries had to adopt Structural Adjustment Programmes (SAPs), which involved: Reducing gov roles, Deregulation, Opening markets and Currency devaluation