Evaluate the Role of Different Global Organisations in Narrowing the Development Gap
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- Date Submitted: 01/27/2015 05:52 AM
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Evaluate the role of different global organisations in narrowing the development gap (15)
Global organisations are key players who have range of impacts on the development gap they can narrow or widen the development gap. They are for example NGOs, WTO, IMF, TNCs, World Bank and governments.
The WTO (world trade organisation) promotes trade and economic cooperation between countries. Groups of countries that promote free trade are for example NAFTA, EU, ASEAN, and MERCOSUR. Arbitrates on trade disputes leading to cuts in tariffs that hinder free trade and there has been notable GDP growth in many parts of the world. WTO can raise standards of business practice and improve competitiveness of developed companies. They can narrow the development gap however they can encourage trade dependency and create barriers to fair trade and set up barriers against LICs.
The TNCS are capitalist enterprises that create supply chains which spread across the world. It provides FDI for investment in many countries e.g. Shell, Unilever, Nestle etc. Free trade has extended their reach to the poorest parts of the world and TNCs drive economic globalisation and transfer of technology. They provide employment and investments and this leads to more wealth which encourages spending and further demand which creates the multiplier effect. There could be possible exploitation of cheap labour by subcontracting and leakage of funds back to parent company.
The IMF focuses on a country’s international financial transactions. They fund to prevent a country meeting its commitments to other countries and it is designed to prevent disruption to international financial system. They manage financial transactions if countries get into debt. It often imposes conditions for support such as stabilisation programmes and it is controversial because it often hinders programmes rather than enhancing it.
NGOs are non-biased assistance ,which also responds to catastrophes such as floods, drought and...
Global organisations are key players who have range of impacts on the development gap they can narrow or widen the development gap. They are for example NGOs, WTO, IMF, TNCs, World Bank and governments.
The WTO (world trade organisation) promotes trade and economic cooperation between countries. Groups of countries that promote free trade are for example NAFTA, EU, ASEAN, and MERCOSUR. Arbitrates on trade disputes leading to cuts in tariffs that hinder free trade and there has been notable GDP growth in many parts of the world. WTO can raise standards of business practice and improve competitiveness of developed companies. They can narrow the development gap however they can encourage trade dependency and create barriers to fair trade and set up barriers against LICs.
The TNCS are capitalist enterprises that create supply chains which spread across the world. It provides FDI for investment in many countries e.g. Shell, Unilever, Nestle etc. Free trade has extended their reach to the poorest parts of the world and TNCs drive economic globalisation and transfer of technology. They provide employment and investments and this leads to more wealth which encourages spending and further demand which creates the multiplier effect. There could be possible exploitation of cheap labour by subcontracting and leakage of funds back to parent company.
The IMF focuses on a country’s international financial transactions. They fund to prevent a country meeting its commitments to other countries and it is designed to prevent disruption to international financial system. They manage financial transactions if countries get into debt. It often imposes conditions for support such as stabilisation programmes and it is controversial because it often hinders programmes rather than enhancing it.
NGOs are non-biased assistance ,which also responds to catastrophes such as floods, drought and...