Luck 2-20

Luck 2-20 - Katherine Luck Feb. 20th, 2008 3-8 Chapter 12:...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Katherine Luck Feb. 20 th , 2008 3-8 Chapter 12: Eliminating the Public Interest by Korten Following WWII attention was paid to the UN, but their General Assembly had little power. UN was created to function as a forum of debate. Yet major power countries had the right to veto. Three institutions were created to operate outside of the public eye: IMF, WTO, World Bank. These are referred as the Bretton Wood institutions. 44 nations gather to reach agreement on an institutional framework post WWII. (Bretton Woods, New Hampshire, July 1-22, 1944) Purpose of the meeting o To unite the world in a web of economic prosperity and independence o To create an open world economy unified under U.S. leadership that would ensure unchallenged U.S. access to the world’s market and raw materials Governance and administrative process in these agencies are secret. IMF – big nations powers have both veto power and voting shares WTO – is being used by the world’s largest corporations to consolidate their power and place them beyond public accountability. Creating a Demand for Debt After WWII, Europe needed rapidly dispersing grants for balance of payment support and imports to temporarily meet basic needs while its own economies were being rebuilt. U.S. Marshall Plan provided this type of assistance, the World Bank not. With no success in Europe, World Bank began to look to the lower income countries for customers. When the Bill Collector Calls In 1970, there was rise in oil prices. This causes the foreign debts of Southern countries to skyrocket. External debt of low-income countries increased from $21 billion to $110 billion. (1970-1980) IMF and World Bank imposed a package of policy prescription on indebted nations under the rubric of structural adjustment. o Privatize public assets and services o Open national economics to global economies o Restriction and tariff on imports and exports were reduced subsidies were offered to attract foreign investors o Social services for the poor was reduced World Bank and IMF claim that adjustment programs to be resounding success and declared the debt crisis resolved. These countries were experiencing higher growth rates, expanded their export sectors, increase the total value of
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

Luck 2-20 - Katherine Luck Feb. 20th, 2008 3-8 Chapter 12:...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online