The paper 'International Relations and Global Economics' is a wonderful example of a Macro and Microeconomics Assignment. Multilateralism is several countries working in concert with a given issue. After world war two which ended in 1945, multilateral organizations since their inception have been playing an important role in the expansion and development of third world countries. As the largest multilateral development organization, the World Bank is providing financial assistance to its member state top alleviate poverty. This essay focuses on the role of multilateral organizations in controlling the policy and practical framework of the development sector in developing countries.
Multilateral organizations are formed between three or more countries that work on issues related to all the nations found in the organization. According to Yildiz and Saggi (2010), after World War II that is in the late 1940s, the goal development was to increase gross national product which was looked upon as a development indicator. During this era, the states were focusing on industrial developments such as the creation of dams, roads increase of GNP by savings. It was penetrated through the world and academia was influenced, the economic development discipline and the decision-makers in the multilateral organizations.
(Ornelas 2005). States developments were formulating national development plans which were focusing on the growth of the GNP. The World Bank being influenced by these funded projects related to GNP. During this time, poverty was not a point of concern. The concept of poverty alleviation was not new in the world history of the world but people discussed it in terms of effects in GNP growth. It wasn’ t discussed in academic debates and never had an influence on lending policies and multilateral organization practices (Yildiz & Saggi 2010). In the 1960s and 1970spoverty was incorporated as a defining element of a development by the World Bank.
This theory was made by a new president by 1968,(World bank). This paradigm changed the spectrum of development. Everyone involved started writing and formulating policies focusing on poverty issues. Conferences and researches were planned and in this, the poor population was targeted in the data collection. The plans of national development were reviewed according to the concept of poverty alleviation. A new debate about “ poverty as part of development” was started in universities (Joy, 1976).
Economists focused on poverty mitigation while assessing policies on growth. Poverty in countries like India and Pakistan was focused and it was argued by (Ornelas, 2008) that there was the production of impressive growth by the practice of the neoclassical theory of development. The World Bank revised its lending policy in the late 1960s and doubled the lending amount for poverty mitigation. This was to help the third world countries or nations to improve the living standards of the people.
Namara who was the president by that time said that development is more than the economic growth of a country. Development is more of education, agricultural expansion, and people’ s technical training (Ornelas 2008). The World Bank changed its loaning rate on agriculture from 12% to 24% and lowered the infrastructure from 55% to 30%. These were done between the years of 1961 and 1971. (Ornelas 2005). This shift in lending share influenced the borrowing nations to shift their focus of development from one project to the other. This helped so much in making the third world countries in growth.
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