Superpowers
Enquiry Question 2: What are the impacts of superpowers on
the global economy, political systems and the physical
environment?
,7.4 Superpowers have a significant influence over the global economic system
Influence of Superpowers on the Global Economy through IGO'S (WB, IMF, WTO, WEF)
Since the end of the Cold War in 1990 the world has been dominated by the free-market
capitalism economic system. For much of the 20th century, capitalism operated alongside
socialist planned economies, an alternative economic system.
Free-Market Capitalism Centrally Planned Economy
Private ownership of property, Government ownership of property
eg: homes and land
Private ownership of business Prices controlled by the government,
The right to make a profit and which also controls the supply of
Features accumulate wealth goods and services
The buying and selling of goods Most businesses state owned and
and services in a competitive wages determined centrally
free market Profits taken by the government and
used to provide public services
USA USSR
Canada China
Examples Japan Cuba
Western Europe Eastern Europe
UK North Korea
IGO's Summary Table
How does it help superpowers
Founded HQ Function
influence the global economy?
Promote free market capitalism
Conditions attached to loads the
Promote sustainable give (SAP's - Structural
economic growth Adjustment Plans), like private
Funding countries ownership, trade liberalisation
IMF 1944 DC with financial (removing tariffs and quotas)
difficulty encouraging free trade,
Promote high removing subsidies and opening
employment up to TNC FDI.
USA gives 17%, therefore gets
16% voting rights
Finances
If the give a loan of money, there
development, eg:
are strings attached, SAP's,
dams
WB 1944 DC (same as above)
Responds to
USA - 16% voting right
disasters to give aid
China - 5% voting right
End poverty
WTO 1995 Geneva Governs the rules of Power in the hands of the
, wealthy nations
Failed to stop USA and UK
trade between subsidising their own food
nations products, which meant it was
Removes subsidies, harmful to famers in developing
tariffs and quotas countries as it was not a level
Promotes free trade playing field
Ghana had to stop subsiding its
own farmers if it wanted to join
Promote enterprise
WEF 1974 Davos and free trade Promote free market capitalism
across the world
TNC's allow superpowers and emerging powers to spread their influence globally, both in
terms of economics and culture. Through mergers and acquisitions, TNC's have been
growing rapidly and some of the largest TNC's now have annual profits that exceed the
GDP's of many lower and middle income countries.
Enquiry Question 2: What are the impacts of superpowers on
the global economy, political systems and the physical
environment?
,7.4 Superpowers have a significant influence over the global economic system
Influence of Superpowers on the Global Economy through IGO'S (WB, IMF, WTO, WEF)
Since the end of the Cold War in 1990 the world has been dominated by the free-market
capitalism economic system. For much of the 20th century, capitalism operated alongside
socialist planned economies, an alternative economic system.
Free-Market Capitalism Centrally Planned Economy
Private ownership of property, Government ownership of property
eg: homes and land
Private ownership of business Prices controlled by the government,
The right to make a profit and which also controls the supply of
Features accumulate wealth goods and services
The buying and selling of goods Most businesses state owned and
and services in a competitive wages determined centrally
free market Profits taken by the government and
used to provide public services
USA USSR
Canada China
Examples Japan Cuba
Western Europe Eastern Europe
UK North Korea
IGO's Summary Table
How does it help superpowers
Founded HQ Function
influence the global economy?
Promote free market capitalism
Conditions attached to loads the
Promote sustainable give (SAP's - Structural
economic growth Adjustment Plans), like private
Funding countries ownership, trade liberalisation
IMF 1944 DC with financial (removing tariffs and quotas)
difficulty encouraging free trade,
Promote high removing subsidies and opening
employment up to TNC FDI.
USA gives 17%, therefore gets
16% voting rights
Finances
If the give a loan of money, there
development, eg:
are strings attached, SAP's,
dams
WB 1944 DC (same as above)
Responds to
USA - 16% voting right
disasters to give aid
China - 5% voting right
End poverty
WTO 1995 Geneva Governs the rules of Power in the hands of the
, wealthy nations
Failed to stop USA and UK
trade between subsidising their own food
nations products, which meant it was
Removes subsidies, harmful to famers in developing
tariffs and quotas countries as it was not a level
Promotes free trade playing field
Ghana had to stop subsiding its
own farmers if it wanted to join
Promote enterprise
WEF 1974 Davos and free trade Promote free market capitalism
across the world
TNC's allow superpowers and emerging powers to spread their influence globally, both in
terms of economics and culture. Through mergers and acquisitions, TNC's have been
growing rapidly and some of the largest TNC's now have annual profits that exceed the
GDP's of many lower and middle income countries.
