Edexcel A Level 2016 Specification: Superpowers

1. Global Economic
Systems

2. IGOs
• As mentioned after WW2 there was a
growth in international organisations
where Govts came together and worked
together.
• IMF
• World Bank
• OECD
• WTO

3. Case Study of IMF in action: Côte
d'Ivoire
• The IMF prevented the Ivory coast
receiving aid until 2013
• It did so only when the Govt had agreed to
set up commercial; courts and allow free
elections
• After economic reform £4.4bill of debt was
cancelled
• A further £10bill depended upon reform of
the electricity and banking sector.
• This allows for MNCs to move in
• UN still bans diamond exports from the
area due to them financing the previous
civil war 2005

4. How long can it go on?

5. World Trade Organisation
• Established in 1945 to promote
international economic co-operation
• Based in Geneva
• 153 countries on 23 July 2008
• It deals with the rules of global trade
• It aims to ease trade and remove barriers
to trade
• It negotiates trade agreements between
countries and make sure that countries
stick to them

6. What does it do?
• Administering WTO trade agreements
• Forum for trade negotiations
• Handling trade disputes
• Monitoring national trade policies
• Technical assistance and training for
developing countries
• Cooperation with other international
organizations

7. • It differs from the IMF and WB as it operates on a one
country one vote basis
• This should be fairer for developing countries
• Unfortunately no voting has ever occurred
• Decisions are generally by mutual consent
• The biggest markets usually deciding the outcome
• The poorest countries with the smallest markets usually
come off worse
• They see the WTO as a rich man’s club that favours the
EU and USA

8. Subsidies
• Presently it is concentrating in removing or
reducing farm subsidies to help make
trade fairer.
• WTO believes in fair trade without tariffs or
subsidies
• Only the rich can afford to subsidise their
industries, giving them an unfair
advantage in the market place.

9. Agreement on Agriculture
(AoA)
• Allows domestic support (Subsidies) for
producers
• Three levels of this agreement
• Green
• Amber
• Blue

10. Green
• Allows subsidies on environmental
grounds
• For instance reducing crop output and
implementing woodland
• Obviously more applicable to wealthier
countries

11. Amber
• Allows subsidies that governments have
agreed to reduce but not cut out altogether
• I.e. are in the process of doing so

12. Blue
• Allows subsidies to be given, so long as
production is reduced in the long term
• This is vague and allows some countries
to take advantage.

13. • This system allows the USA and EU to spend $400
billion annually on farm subsidies
• They argue it protects the small farmer where costs are
greater
• However 50% of EU subsidies go to the largest 1% of
producers
• In the USA this figure is 70% of the largest 10%
• This effectively allows farmers to go on producing large
volumes of goods at subsided rates
• The EU and USA buy these and ‘dump’ on developing
countries in the form of aid

14. So isn’t that a good thing?
• Well by dumping all there excess
on developing countries it
undermines and undercuts local
producers such as Ghanaian
tomato and rice farmers causing
their produce to be worth less in
the market place.
• This allows the EU and USA to
buy it back up at a cheaper price.

15. That’s really bad. Is there
anything they can do..?
• Some of the cocoa farmers
have been joining together to
form co-operatives
• Kuapa Kokoo (Good cocoa
farmers) began in 1993
• Has 40,000 members in 650
villages – this produces 1% of
global crop
• Because it has a larger voice it
can get a better price for per
bag

16. • It does this by selling to fair trade organisations in Europe
• 1998 began the Day Chocolate Company
• Makes ‘Divine’ chocolate
• Kuapa Kokoo is managed by a farmers trust and provides
members with credit
• Profits have helped pay for improved drinking water in rural
areas and health insurance for farmers

17. So what do some people think?
• People who disagree with the WTO say that:
• The WTO is too powerful, in that it can make countries change laws.
• The WTO is run by the rich for the rich and does not give significant
weight to the problems of developing countries.
• The WTO doesn't do enough for workers' rights, child labour, the
environment and health.
• The WTO meetings are closed to the public and the media.

18. Questions
• What do we mean by cultural imperialism?
• How do the older superpowers feel
threatened by new ones

19. Structural Adjustment Programme