Creating a Global Economycolonial roots, international organizations and inequitable power relations

cold war globe

development paradigm

was supposed to...

level the playing field

create trade alliances

foster global economy

make independant nations (of former colonies)

new world order

global institutions

World Bank + IMF

WB = lending institution

IMF = monitor world currency

short term loans

offical/unofficial rules

1960-70s--shift

height of decolonization efforts

shifted to former colonized nations

1970s rise in oil $-- goes to western banks

lending increases + large scale projects

no accountability

bubble bursts

Who is valued?

threats:

“The foreign assets of a country that refuse to pay its debt would be attacked by creditors throughout the world; its exports seized by creditors at each dock where they landed; its national airlines unable to operate; and its sources of desperately needed capital goods and spare parts virtually eliminated. In many countries, even food imports would be curtailed.”

new DEBT repayment focus

new set of policies/programs

structural adjustment programs

social + economic strings attached

privatize

wage freeze

export

reduce tariffs/subsides/protections (trade liberalization)

mono-industries/crops

effects

“aid”

movie questions

what is the relationship between “development” and debt?

what is the role of “developed” nations in the creation of “developing” nations’ debt?

How does national debt effect individuals? And who is negatively effected?