SOC 104 Lecture Notes - Lecture 10: Economic Stagnation, Structural Adjustment, Nationstates
18 Feb 2016
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Document Summary
Free flow of capital around the world enabled by free trade agreement. More profit that is made and the more taxes and tariffs removed the more easily capital flows between countries. Free trade agreements: making investments in foreign countries lucrative for tncs. Loans & rules: imf, world bank, and structural adjustment programs - plans the local government must adjust to in order to get the money and pay them back at the desired times. Severe cuts on social programs/austerity from failing to pay back loans. To develop from foreign investments and kick starts their economy and enter in the global economy. Terms of the international rules and loans are controlled by wealthy nations. President of the world bank normally comes from the largest shareholder nation. Instead of flow flow of capital bettering economics the massive pattern is there is an extraction of wealth from poorer countries as they enter in the global economy.
