POL 1102 Lecture Notes - Lecture 13: Cooking Oil, Conditionality, Maternal Death
30 Oct 2014
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Organization of petroleum exporting countries (opec) and oil prices. Oil-rich countries invest in western banks, who then lend that money. The international monetary fund (imf) & structural adjustment programs (saps) Lender of last resort: allowing debtor governments to pay back debts, conditionality. Conditions for imf & world bank loans. Reductions in government spending (health, education, and social) Elimination of subsidies (cooking oil, staple foods, fuel. Allow foreign investors to buy domestic companies. Saps" objectives & results: objectives, create, good investment climate , conditions for economic growth . Benefits: developing countries do get investments from multinational/transnational corporations. Jobs are created: taxable income for developing countries" governments, ability to pay back loans. Problems: a few countries get a large proportion of investments, south-south competition, dubious labor practices, there are more workers than are needed! The risk that if you let someone off the hook once, they will not learn from the experience: g8 summit of gleneagles, july 2005.
