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Global Institutions, Donor Interventions and Aid Dependence - Coggle…

- - - - maybe we need better institutions
        
        conditionalities
        
        easterly says - when these countries were not able to figure it out what are the chance that donors know it?
        
        https://www.theguardian.com/global-development/2014/mar/20/william-easterly-tyranny-experts-development-dictators
        
        does aid give incentives to good governance or low investment?
- - - - Bretton Woods conference
        
        The birth of the IMF and World Bank
        
        THE PRBLEM
        
        in europe the reconstruction was just physical recojnstruction of factries wheras developing countries had extractive institutions and needed restructuring of the whole institutional system
        
        lets look at how it worked
        
        Horrod Domar Model
        
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        agreed 0.7% of GDP
        
        Italy 0.15% of GDP, USA 0.21% of GDP, Norway 1.1% of GDP (c.a. 2010)
        
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        another source of funding
        
        Loans by the IMF
        
        these loand are for coutnries who for example defaulted in the past and so have very low credits -> no one else would lend them
        
        World bank 2 branches
        
        international bank of reconstruction and development
        
        lending to LDCs
        
        International Development Association (IDA)
        
        This branch lends to the poorest countries. They are lent money at a rate much lower than they can borrow at themselves.
        
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