WORLD ECONOMIC ORGANIZATIONS

THE WORLD BANK An international institution who’s responsibility is to provide financial assistance to under-developed countries for the purpose of development and poverty-reduction An international institution who’s responsibility is to provide financial assistance to under-developed countries for the purpose of development and poverty-reduction Has 124 member countries Has 124 member countries Loans or grants are usually tied in with some sort of policy change for the nation receiving the loan. Loans or grants are usually tied in with some sort of policy change for the nation receiving the loan.

CRITICISM OF THE WORLD BANK Critics argue that the World Bank is intruding on state sovereignty Critics argue that the World Bank is intruding on state sovereignty The World Bank’s policies are driven by major investor countries, most notably the U.S., which looks to extend its influence into those countries The World Bank’s policies are driven by major investor countries, most notably the U.S., which looks to extend its influence into those countries World Bank installs foreign businesses which actually hurt the country that it is trying to help World Bank installs foreign businesses which actually hurt the country that it is trying to help Poor countries have no way to pay back loans so they have to take out more loans to pay back the original loan Poor countries have no way to pay back loans so they have to take out more loans to pay back the original loan Latin American countries spend all of their money trying to pay back loans instead of investing in their countries economyLatin American countries spend all of their money trying to pay back loans instead of investing in their countries economy

INTERNATIONAL MONETARY FUND The IMF is an international organization that focuses on observing exchange rates between nations, as well as offer financial assistance when requested. The IMF is an international organization that focuses on observing exchange rates between nations, as well as offer financial assistance when requested. Has 184 member states Has 184 member states IMF states goal as trying to reduce poverty and facilitate international trade IMF states goal as trying to reduce poverty and facilitate international trade

CRITICS OF THE IMF Most critics argue that the IMF only loans out money if the recipient country promises to implement IMF-approved economic reforms Most critics argue that the IMF only loans out money if the recipient country promises to implement IMF-approved economic reforms IMF supports corrupt, irresponsible governments who think that they can do whatever they want economically and the IMF will bail them out. IMF supports corrupt, irresponsible governments who think that they can do whatever they want economically and the IMF will bail them out.

North American Free Trade Agreement Member Countries: U.S., Mexico, Canada Member Countries: U.S., Mexico, Canada Goal is to reduce trade restrictions between member countries and allow the free flow of goods, services and people Goal is to reduce trade restrictions between member countries and allow the free flow of goods, services and people NAFTA argues that this creates jobs and encourages economic growth in all countries NAFTA argues that this creates jobs and encourages economic growth in all countries

CRITICS OF NAFTA Critics of NAFTA are divided Critics of NAFTA are divided Anti-NAFTA groups mostly in U.S.Anti-NAFTA groups mostly in U.S. American labor groups fear the loss of jobs to lower-paid Mexican workers, thus causing unemployment in the U.S. and hurting the economyAmerican labor groups fear the loss of jobs to lower-paid Mexican workers, thus causing unemployment in the U.S. and hurting the economy Corporate Outsourcing: when companies move production facilities to under-developed nations for cheaper costsCorporate Outsourcing: when companies move production facilities to under-developed nations for cheaper costs Pro-NAFTA groups mostly in Mexico Pro-NAFTA groups mostly in Mexico In Mexico NAFTA has helped boost exports and created thousands of new jobsIn Mexico NAFTA has helped boost exports and created thousands of new jobs

THE WORLD TRADE ORGANIZATION An international organization dealing with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably, and freely as possible An international organization dealing with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably, and freely as possible The global authority on trade and reserves the right to review a country's domestic trade policies The global authority on trade and reserves the right to review a country's domestic trade policies

CRITICS OF THE WTO Critics argue that the WTO invades state sovereignty Critics argue that the WTO invades state sovereignty Countries that try to make economic policies that protect its industry, workers, or environment (by keeping out major corporations) are seen as barriers to the WTO’s free tradeCountries that try to make economic policies that protect its industry, workers, or environment (by keeping out major corporations) are seen as barriers to the WTO’s free trade Also, many argue that the WTO implements policies that make the rich richer and the poor poorer Also, many argue that the WTO implements policies that make the rich richer and the poor poorer Does not allow under developed countries to produce badly need pharmaceuticals under generic or cheaper labels – they must pay full priceDoes not allow under developed countries to produce badly need pharmaceuticals under generic or cheaper labels – they must pay full price

Green: Developed, Yellow: Developing, Red: Less/Under Developed