Deck 7: The Imf, Global Inequality, and Development

Question 1

In order to receive IMF loans, recipients must agree to reduce barriers to international trade and investment.

Answer 1

True

Question 2

Global economic inequalities

A)have always been a feature of international politics.
B)have become less pronounced since the beginning of the industrial revolution.
C)reflect the uneven impact of the industrial revolution.
D)are correlated with the possession of natural resources.

Answer 2

C

Question 3

Liberal/neoliberal economic theory assumes that economic development is possible for all nations in a capitalist international order.

Answer 3

True

Question 4

The World Bank led the way in providing structural adjustment loans.

Question 5

The "Washington Consensus" is critical of neoliberal policies.

Question 6

The experience of India in the 1990s is usually invoked to illustrate the

A)failure of structural adjustment policies.
B)benefits of neoliberal policies.
C)success of import substitution strategies.
D)success of structural adjustment policies.

Question 7

Structural adjustment loans

A)were granted with no strings attached.
B)did not have to be repaid.
C)required recipients to make domestic economic reforms.
D)were targeted to small business in developing countries.

Question 8

Declining terms of trade refers to

A)a lowering of trade barriers around the world.
B)products from developing nations that compete primarily on price rather than quality.
C)lower prices for exports but steady or rising prices for imports.
D)higher interest rates for developing states that defaulted on loans.

Question 9

The 1970s debt crisis for many developing nations was caused in part by

A)increasing energy prices.
B)IMF structural adjustment loans.
C)the collapse of the Soviet Union.
D)soaring rates of economic growth.

Question 10

Which of the following was a component of structural adjustment loans?

A)Increasing aid to the poor
B)Very high interest rates
C)Reducing barriers to imports
D)Increasing subsidies to industries that export

Question 11

According to dependency theory, political independence inevitably leads to economic growth.

Question 12

The NICs are located mainly in

A)Southern Europe.
B)Southeast Asia.
C)Africa.
D)South America.

Question 13

Dependency theory is most closely associated with a ___________________ perspective on international relations.

A)Marxist
B)liberal
C)realist
D)feminist

Question 14

The precedent of IMF loan conditionality was established in the Mexican debt crisis of the early 1980s.

Question 15

In the IMF voting power is based on

A)the principle of one nation, one vote.
B)a nation's population.
C)the resources that nations contribute to the IMF.
D)how much a nation owes the IMF.

Question 16

According to neoliberalsim, developing nations should be as economically self-sufficient as possible.

Question 17

Neocolonialism refers to

A)European colonization of Asia and Africa in the 1800s.
B)the decline of former colonial powers.
C)the continued economic domination and exploitation of former colonies.
D)recolonization of a newly independent nation.

Question 18

When we say that underdevelopment in many African nations appears "overdetermined," we mean that

A)there are so many obstacles to development that it is difficult to single out any one.
B)the problem is being greatly exaggerated.
C)too much attention is being paid to the problem.
D)too many success stories are being ignored.

Question 19

The United States practiced free trade throughout its development in the 1800s.

Question 20

Restricting imports of products so that domestic producers will grow to meet demand is known as

A)import substitution.
B)neocolonialism.
C)dependency.
D)neoliberalism.

Question 21

In the wake of decolonization, most Third World economies remained heavily reliant on the export of _____________________.

Question 22

The IMF is run according to the principle of one nation, one vote.

Question 23

Falling prices for raw materials relative to manufactured goods is viewed by many as resulting in declining _________________ for developing nations.

Question 24

Explain why some think that reliance on raw material exports harms developing nations.

Question 25

One of the problems facing many developing nations during the 1970s was OPEC's decision to increase the price of ______________.

Question 26

Most of the reduction in poverty we have seen over the last decade or so has occurred in _________________ and ______________.

Question 27

Empirical studies have shown that IMF structural adjustment policies have had a dramatically positive impact on economic growth rates.

Question 28

______________________ assumes that economic development is a positive-sum process in which the wealth of some nations does not depend on poverty in others.

Question 29

Voting within the IMF is based on each country's ______________________.

Question 30

Loans granted by ______________ to developing countries often require them to adopt market-oriented economic policies.

Question 31

Supporters of neoliberalism reject the claim that the current liberal international economic order represents the fundamental obstacle to development.Why do they reject this argument and what sorts of evidence do they cite in support of their position?

Question 32

Dependency theorists embrace the "Washington Consensus".

Question 33

In the area of development economics, dependency theory is most compatible with a __________ perspective on international relations.

Question 34

Current global economic inequalities began to emerge in the middle of the _______________ century.

Question 35

According to _____________________, multinational corporations are likely to do more harm than good, exploiting poor nations without promoting genuine development.

Question 36

What is the "Washington Consensus" and how did it influence IMF policy toward developing countries?

Question 37

The ___________________consensus assumes that free trade and limited government promote economic development.

Question 38

______________________ development strategies tried to promote development by directing investment to, and protecting new industries from, foreign competition.

Question 39

Most of the reduction in the number of people in poverty over the last two decades has occurred in Asia.

Question 40

What were the origins and rationale for import substitution policies?

Question 41

Why did the end of colonialism not lead to the hoped for growth and development throughout large parts of Asia and Africa?