Kabir's Econ Blog

February 11, 2010

Evaluation of Growth and Development Strategies

Filed under: Uncategorized — kabir1892 @ 1:11 pm

1) IMF and World Bank

-Large-scale organisations also work in the field of development. Many of these come under the umbrella of the UN and emerged as part of the discussions held towards the end of the Second World War

Ecuador: Lasting poverty reduction requires the cooperation of various groups including, communities, civil society, government, and donor agencies.  Working with these groups, the World Bank provides technical expertise and funding for poverty-reduction programs in areas such as health, agriculture, and basic infrastructure.

2) Other international organizations

-FAO

-UNICEF

-UNESCO

-WHO

Ecuador:

FAO – Increases nutrition and standard of living by improving agricultural productivity. It also helps the rural populations with their conditions.

UNICEF – UNICEF uses its knowledge, expertise and integrity to provide children with the appropriate supplies and services they require. Through Procurement Services, governments and non-profit organizations can use and learn from UNICEF’s procurement expertise in their own efforts to help children.

UNESCO – Aim is to eliminate problems such as diseases, discrimination and poverty that stop the economy from growing

WHO – The World Health Organization was created to give worldwide guidance in the field of health, to set global standards for health, to cooperate with governments in strengthening national health programs, and to develop and transfer appropriate health technology, information and standards.

3) Private Sector Banks

-Private sector banks make loans to developing countries at commercial rates of interest. As such, these loans become part of the debt of the poorer.

Ecuador: All private banks in Ecuador were required to invest at least 5 percent of their capital and reserves in the Central Bank, and together they owned the majority of shares in the Central Bank. Headquartered in Quito, the Central Bank had sixteen branches in other cities and towns in the late 1980s.

4) Non governmental Organizations

In recent years, one of the biggest growth industries in developing economies has been that of the NGOs – the non-governmental organisations.

They work best when:

  • Allowed to tackle issues at local level
  • Encouraged to employ as many local workers as possible
  • Specialised in specific and often rural-based project work
  • Project monitoring is done very carefully
  • Relations with governments are cordial but not too friendly.

Ecuador: In the face of hardship, a lot of NGO’s have been working to help Ecuador to get by. NGOs have played an indispensable role in helping the nation’s marginalized citizenry meet their basic needs, encouraging sustainable development, and protecting the nation’s natural resources from exploitation.

5) Multination Corporations

-An MNC is a company which possesses and controls means of production or services outside the country in which it was established. Although they operate in different countries, most of such corporations are controlled from a national base from which a global system of integrated production, sales, research, marketing and finance is facilitated.

Ecuador: In the 1970’s, MNC’s flooded into Ecuador following the discovery of oil by Texaco. In 1972, a large oil pipeline was opened to transport oil from the Amazon across the Andes. Output increased in the 1970’s and the industrial sector expanded at a rate of 10.5%.

Conclusion: In terms of growth and development, Ecuador has gone through numerous phases to improve its economy. The IMF and banks have helped to reduce poverty. International organizations helped by improving the overall living standards for children and families by eliminating diseases and proving food sources. Private banks were especially big help to Ecuador since it boosted the quarter 1 profits of Ecuador by 8%. NGO’s also played a big role in helping Ecuador since it sustained the development and protected the natural resources that it has. Multinational corporations helped in the 1970’s by helping open a pipeline to transport oil throughout the nation. Overall, these small and big changes have led to the Ecuadorian economy to grow. Even though this is true, ethnic problems and unequal treatment in Ecuador have made it hard for these aids to be of much help. They have helped sustained the economy as a whole, but as individual families, it is still very hard to handle. By continuing to receive the aid that they have been receiving, Ecuador will hopefully grow as a whole in the future.

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1 Comment »

  1. Great verbose post.
    This will truly help me out next year!

    Comment by deep1106 — May 19, 2010 @ 11:34 pm | Reply


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