Objective 9.06 Objecti Objective 9.

06 ve
Global Interdependence Global
Interdependence

9.06:

Essential Questions:
What

impact do developing nations play in the global economy? What responsibility do developed nations have in assisting weaker nations to grow economically? How are international financial and economic organizations used to maintain stability in the global economy?

Global Interdependence
Developed

countries Developing countries Foreign aid United Nations (UN) International Monetary Fund (IMF) World Bank

Global Interdependence

Global Interdependence means that people and nations all over the world now depend on one another for many goods and services. It also means that what happens in one nation or region affects what happens in others. The United States must import half the oil we use, so we must maintain good relations with oil-producing countries. Other countries depend on the United States for computers, aircraft, and other high-tech products. Poorer countries look to the United States for food, medicine, and arms.

Free Trade
When

countries try to convince other countries not to pass laws that block or limit trade, they are aiming to achieve free trade. NAFTA and the EU are examples of free trade.

World Trade Center Prior to 9/11

Developed Countries
This

level of economic development usually translates into a high income per capita. Countries with high gross domestic product (GDP) per capita often fit the above description of a developed economy. However, "developed" status cannot be determined by the factor GDP per capita alone.

Countries Around the World

Developing Countries
Also

known as a 3rd World Country. Developing countries have a relatively low standard of living and a lower GDP.

Developing Countries

Foreign Aid
Foreign

Aid is the help, mostly economic, which may be provided to communities or countries in the event of a humanitarian crisis or to achieve an economic objective. Humanitarian aid is therefore primarily used for emergency relief, while development aid aims to create long-term sustainable economic growth. Wealthier countries typically provide aid to economically developing countries

Foreign Aid

United Nations (UN)

The UN was established after World War II to prevent future wars. The UNs main purposes are to maintain international peace, develop friendly relations among nations, promote justice and cooperation, and seek solutions to global problems. The UN now has 189 members. Its main headquarters is in New York City. All UN members belong to the General Assembly. The assembly meets regularly to debate international issues. Decisions are made by majority vote.

United Nations

United Nations Security Council

The Security Council is the UNs peacekeeping arm. It has five permanent membersthe United States, Britain, Russia, France, and China. It also has 10 nonpermanent members elected by the General Assembly for two-year terms. Decisions require nine yes votes. However, any permanent member can veto, or reject, any motion, blocking actions it opposes. The Security Council meets regularly and holds emergency sessions to handle crises. It tries to help nations solve problems peacefully. It can also send UN troops, drawn from various nations, to prevent or stop a war.

United Nations Security Council

The Secretary-General of UN
The

secretary-general is the UNs chief executive officer. The General Assembly appoints the secretarygeneral to a five-year term, with a two-term limit. Ban Ki-moon is the current secretary-general

International Monetary Fund (IMF)

The International Monetary Fund provides financial and technical assistance, especially to promote economic growth in developing countries. It is located in Washington, D.C.

Voting Power of the IMF

Who uses the IMF?

World Bank
The

World Bank makes loans to developing countries at low interest rates. It is located in Washington, D.C.