Overview
Unit 2: Global Economic Development
Topics:
: Overview of economic globalization trends Development of the International Monetary Fund (IMF) and the World Bank and their basic structures and purposes : Controversial aspects of the International Financial Institutions (IFIs)
Learning Objectives: By the end of this Unit you will be able to:
. Explain the development of economic globalization
Explain the development and basic structures and purposes of the IMF and World Bank Analyze the outcomes related to the Millennium Development Goals, and possible improvements Describe the positive and negative impacts of several international financial institutional projects
Tasks:
Read the Learning Guide and the Reading Assignment Complete the Discussion Assignment by posting in the Discussion Forum Respond to three of your fellow classmates' posts in the Discussion Forum Complete and submit the Written Assignment : Make entries to the Learning Journal : Take the Self-Quiz : Participate in the Poll
Introduction
This week we will read about the historical development of a more globalized economy. Further, we will explore the development of the International Financial Institutions (IFIs), which were intended to assist the global economy by stabilizing global financial markets and to help to create world peace by preventing further world wars and economic collapse. However, they have now become widely
capitalism on developing countries in irresponsible ways.
Reading Assignment
1.World trade report. (2008). World Trade Organization https://my.uopeople.edu/pluginfile.php/1659829/mod book/chapter/400753/wtr2008globandtrade.pdf
: Read the following overview describing the increase in economic globalization over the past several decades
2. Globalization101. (n.d.). International Monetary Fund and WorldBank. The LEVIN Institute. https://my.uopeople.edu/pluginfile.php/1659829/mod_book/chapter/400753/glob101imfandwb.pdf : Read the following issue brief through the Levin Institute that describes the development, purpose, and criticisms of the International Financial Institutions (International Monetary Fund and World Bank)
Here is a summary of this week's reading: Merchandise trade after WWIl marks the biggest growth period in economic globalization. The main forces driving globalization include:
: Technological innovations (e.g. discovery of large oil fields in the Middle East, 1948) Broader political changes (e.g. the establishment of the United Nations in 1945) Economic policies (e.g. the establishment of Bretton Woods -- IMF, World Bank, 1944 -- 1971)
Development of the IMF and World Bank:
. Conference at Bretton Woods, New Hampshire, to address concerns about the stability of global economic markets
IMF Structure:
: IMF is controlled by its 187 member-countries, each of whom appoints a representative to the IMF's Board of Governors : The IMF has three main activities: surveillance, financial assistance, and technical assistance
Why is the IMF Controversial?
. Some critics say that the conditions of the loans are too controlling and don't give the receiving country enough freedom to do things the way they feel is necessary : Some critics say that the IMF imposed the policies of the Washington Consensus without understanding the complexities of the nations they were working with : Some critics are displeased that the policies are imposed all at once : Some critics say that the IMF was not transparent or open to constructive feedbac