Question

1-

The term ‘conditionality’ refers to the IMF practice of:

Imposing high interest rates on borrowers

Requiring states to undertake major economic reforms in exchange for emergency loans

The variation in the policies that are recommended from one crisis to another

B and C

2-

Imperialism/colonialism had a negative effect on developing countries because the experience did which of the following?

Reduced the global disparity in wealth and production between developed and developing countries

Created patterns of production and trade that continue to limit economic progress in developing countries

Restricted economic activity to the ‘newer’ regions of the world

All of the above

3-

The ‘dependency’ explanation for the gap between wealthy and developing countries argues that developing countries:

Are made weaker by the system of international trade and multi-national corporations

Continue to be harmed by the legacy of colonialism and imperialism

Benefit from dependence on new global technologies

A and B

4-

The strategy of ‘South-South trade’ refers to which of the following

		An ‘unorthodox’ development strategy that seeks to redirect cooperation and trade patterns
		An ‘orthodox’ development strategy that encourages specialization in exporting minerals
		An ‘orthodox’ development strategy that relies on foreign aid and assistance from wealthy countries
		An ‘unorthodox’ development strategy that seeks to reorganize the state to reduce corruption

Answer 1

1>  B and C

In case of IMF loans, conditionality is the conditions by the IMF in exchange of the loans. They are marjor reforms and policy change seeked by IMF.

2> Restricted economic activity to the ‘newer’ regions of the world

The bad about colonialism is that it restricts the economic activity to the colonists and labor-intensive low paying jobs are shifted to the colony.

3> A and B

There is a global pact between the elites in all the countries and economic trade, legacy of the colonialilism, imperialism increase the gap between the wealthy and developing countries.

4> An ‘unorthodox’ development strategy that seeks to redirect cooperation and trade patterns

Global South consists of mostly poor and developing economies, so it is an unorthodox strategy to increase trade among themselves instead of relying on the North.