Evaluate the role of deferent global organizations In narrowing the Development gap (15). The role of global organizations , which are organizations set up by many countries as an GIG or there may be Individual groups set up to try and narrow the development gap, however how successful these organizations are In trying to narrow the development is still under question. An example of how an GIG may play a key role in trying to narrow the ever widening development gap Is the role f the world trade organization and its role in trying to promote free trade.
The world trade organization may play a key role in narrowing the development gap as it promotes economic co-operation between countries allowing there to be cuts in tariffs that hinder free trade allowing developing countries to import and export goods to fuel a nation’s economic development and because of this there has been a notable GAP growth in many parts of the world. However, how effective the WTFO role in narrowing the development may come under scrutiny. Some suggest that allowing for free trade may see the poor get poorer as the wealthier nations may exploit free trade regulations.
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Moreover, the role of the World Bank In trying to narrow the development gap may be essential. To date the World Bank has funded over 4000 development projects In 130 countries. Also for the poorest nations loans are Interest free and allow long repayments periods allowing nations that are trying to develop, develop sustainable, increasing economically and therefore helping reduce the development gap. However this is often not seen to be the case for countries who have received loans from the World Bank as most loans are at market interest rates.
Due to this being the case countries cannot pay off the debt and are often forced to privative and decrease spending in public sector, for example in Bolivia where they were forced to privative the water in Cohabit increasing cost of water in order to help with the debt, but this promotes dependency and hinders development as less is spent on the people and the development gap Isn’t affected. FED may also have a role to play In trying to narrow the development gap.
Foreign direct Investment from countries such as china In places like Africa which provided Infrastructure and key trade links, which may be key to development, this is evident in countries like Angola where Chinas influence is key to see and have provided key infrastructure as well as employment to help fuel development and help narrowing the development gap. However some argue this is a neo-colonial relationship between African countries ND china’s and China’s exploitation of African states to help fuel their own growth. Tens may play a part in trying to narrow the development gap.
Capitalist enterprises that create supply chains across the world. This is often referred to as the driving force behind economic development. Tan’s provide employment and investment In Lead’s and some argue In creates opportunities for development. An example of where has been key to their economic growth Is In china where they have embraced Tens. It has allowed china to collect vast amounts of capital which Is then reinvested ND because of this the number of people In poverty has decreased and there are more people in the middle class. Moreover by creating jobs It will in turn lead to growth.
However there is a fear that if a TNT gains control over what and where different countries trade that this would be more beneficial for the TNT and its goals are focused solely of profits and not on narrowing the development gap. In conclusion, the role of global organization’s in narrowing the development gap may still come into question, it’s clear to see that for the vast majority the poorer are tenting poorer and the rich are getting richer and that often global organizations seem to have their own interests as their main priority and not the interest of the people in the disadvantaged areas.
However as seen there advantages to be gained from some of the stand points and programmed set into place, for example FED in Africa to help increase trade but more needs to be done to narrow the gap, but nations main these organizations main priority is protecting its main assets, through exploitation and profit based programmed.