POLS 2080 Lecture Notes - Lecture 12: Loanable Funds, Neoliberalism, Structural Adjustment
12 Apr 2017
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Provide short terms loans to solve balance of payment issues: meaning the countries that have to import more than they export are susceptible to needed help from the imf. The imf does this to avoid decrease in currencies. Key player in european bail out: greece. Member states pay quotas to a pool of loanable funds: the bigger your loan the bigger your voting power in the imf. Longer term financing: originally for post war reconstruction and development. Originally named branch 1 the international bank for reconstruction and development ibrd: helps middle class countries. Branch 2 international development association ida: helps lower developed countries, international finance corporation ifc, multilateral investment guarantee agency miga, international center for settlement of investment disputes icsid. While at the same time austerity measures, little state involvement to minimize public expense how do neoliberalist demands differ from modernizationist demands: neoliberal get the state out of the picture, modernization think the state should be involved.
