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This examination delves into the significant impact of Transnational Corporations (TNCs) on global inequality, exploring how their actions contribute to disparities in wealth and development. It also evaluates the role of states and various agencies in shaping development outcomes, differentiating between modernisation and neo-liberal perspectives. Additionally, the functionality of International Government Organizations (IGOs) like the UN, WHO, and World Bank in promoting development initiatives is analyzed, alongside the challenges posed by corruption and predatory states.
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Potential Questions we might be answering • Evaluate the view that Transnational Corporations (TNCs) have had a significant part to play in the existence of global inequality. (30) • Evaluate sociological explanations of ethnic inequalities in the developing world. (30)
States (countries) • How is the state different from the government? • Governments are temporary • The state encompasses: legal system, police, civil service, military • What kind of people control the state? • The difference between modernisation and neo-liberal when we think about states?
What can the states do? • Support development – Runs the infrastructure – buys goods – employs the population • Development states • These are the kind of states modernists like
Neo-Liberal • States do the bare minimum required and allow transnationals and businesses to develop the country
Block • Corruption • Spending on bureaucracies • Predatory states – prey on their own people so the people at the top get very wealthy – i.e. D R Congo • What theory would argue that these blocks are the reason for a lack of development?
International Government Organisations (IGO) • The UN • Made up of: • The General Assembly • The Security Council (5 permanent members – UK, USA, France, Russia, China) • How would dependency theorists view the 5 permanent members? • In the general assembly third world nations have a vote – How would modernisation theorists view this?
What does the UN do? • Development Program – Measures development – gives loans for sustainable development • WHO – World Health Organisation • WFP – World Food Program • FAO – Food and Agriculture Program • Refugee program • Peacekeeping
World Bank • Member states all pay in money and it is then used for development projects • The more money a country pays in the more its vote counts for • It lends at low rates to developing countries • It often dictates what projects should be carried out
IMF and WTO • IMF polices international debt • It can lend to developed countries • Neo-liberal policies/structural adjustment programs • Short term interests • The WTO tries to introduce neo-liberal policies to world trade • Has been unable to stop developed countries using subsidies