Lecture 34POLS 103 1st EditionOutline of Last Lecture 1. United Nations2. Syria3. Jerusalem4.Pakistan5. China Outline of Current Lecture II. IMFa. officiali. unofficial3. IMF seen in articlesCurrent LectureIMF: International Monetary fundTwo roles: official and unofficial History of IMF: Bretton Woods saw collapse of economic system during war time and post war fears, global depression(not just in the US) and tariff barriers, collapse of international trade.Woods therefore created IMF-world bankOfficialLends money to states to keep their currency stable by stepping in, IMF can stabilize countries currency However, IMF demands collateral to do thiscountries don’t have regular collateral, so IMF demands policy change The policies the IMF follows are right from Liberal Economics Money IMF uses comes from donor countries, all rich, all western/liberal/capitalist the economic policy used by IMF is the economic policy of donor countries UnofficialAll that knowledge that the IMF uses to step in in times of crisis means that the IMF has good information on the current policies and activities of the certain state These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.“Report Card” grading other countries The “report card” has no direct effect for the IMFbut the “report cards” are available for everyone what the IMF says has lots of influence over how much investment there is IMF bestows legitimacy good report card- capitalism likes you bad report card- capitalism doesn’t States object to IMF- they say it has too much power IMF enforces: “Washington Consensus”IMF is in Washington Forces states to go along with policies/ideas some say this violates sovereignty “Golden Straight Jacket”IMF “forces” states to adopt a specific set of policies, regulations, lawsstates claim that this violates sovereignty IMF says this is not true, they don’t force states to change States say in response to that: If we don’t listen to you, we get nothing The golden part comes from doing what the IMF wants- you get money IMF recommends the same basket of policy changes to everyone In Articles:Most poor states need money, investment World Banks Article World Bank- similar to IMF main goal is to help global poverty as opposed to IMF which is stability But it operates the same as IMFArticle notes all the controversy around new head of world bankEmerging Markets a number of developing countries with economies bigger than IMF can generally help article reinforces that the world markets are rejecting both countries (Russia and Brazil)article suggests that the countries would be better off if they reformed their policies Abenomics Japans economy has been a mess for over a decade Reform is hardJapan is too big for the IMF, yet reform (golden straight jacket) still relevant for themTanzania and Elephants poaching makes people money people in Tanzania turn to poaching to make money pays better than non-criminal jobs IMF- symbol of globalization does good, but has costThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a
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