PYQ Vault · Paper 2 · Evolution of the International Economic System
How are the rising powers challenging the USA and Western dominance in the IMF and the World Bank?
How the answer moves
The flow snapshot — the routes in, the body, the counter-view and the routes out.
Flow snapshot — how the answer moves
Intro routes
Track 1 (inside): votes must follow economic weight — 2010 quota package (~6% shift; India 2.3 → 2.6, China 3.8 6) — contest the European-MD / American- President convention → BRICS bargain as a bloc – India’s 2023 G20 presidency presses reform ~— Track 2 (outside): AIIB / NDB / BRICS CRA → finance and liquidity without conditionality (Stiglitz: conditionality deepened the 1997 Asian crisis) → Woods: a different development paradigm — infrastructure, industrialisation, poverty reduction over neoliberal prescription → exit works back as leverage inside — Kahler: “responsible stakeholders” or parallel institutions
Body flow
veto survives → leadership convention holds → quota shifts too small to move the balance — Weiss: incremental reform cannot answer an obsolete architecture — new banks may fragment rather than replace
Counter-view
rR) gains real but partial. monopoly over development finance broken, control of the twins intact → drift from Kindleberger’s hegemonic stability towards Keohane-Nye complex interdependence R2 close on Kahler’s fork → the West's choice is to accommodate the rising powers inside or watch the parallel architecture grow outside — reform is the price of keeping the twins central
Model answer
Handwritten, in the form it would be written in the examination hall.
