IGOs

• 3 IGOs playing major role in global trade are?

  • WTO - increase trade and resolve trade disputes between member countries
  • IMF - advises governments how they can improve their economic situation - gives loans to countries
  • World Bank - provides loans to developing countries to invest in health, education and infrastructure
• they were set up to promote the western capitalist model alongside free trade, privatisation and deregulation and democracy
• IGO policies have benefitted developed countries as

  • policies encourage international trade mean economic barriers can be reduced to help the country export their services and goods and importing them from developing countries is cheaper = boost in economy for developed country e.g. USA's WTO increases GDP by around $87 billion a year
• IGO policies restructure developing countries economy in two ways

  • structural adjustment programme - IMF or World Bank agrees to provide loan on the condition it makes changes to economic policy like reducing government spending and privatizing state owned industry
  • heavily indebted poor countries - IMF and World Bank offer debt relief reducing amount country has to pay back in return for strict criteria
• Jamaica's Structural Adjustment Programme (SAPs)

  • Jamaica struggled with economic recessions and debt in 70s and 80s = Jamaica accepting loans from World Bank and IMF with structural adjustment conditions
  • they had to reduce government spending which led to public services like healthcare dropping e.g. nurses fell by 60%
  • socio-economic wellbeing declined following 1991 SMP agreement as the economy had to be deregulated and wages kept low = 14% decrease in children attending school in 2019 from 1990
• IGOS are usually part of regional trade groups too like NAFTA and EU