Governments and Their Agencies (DP IB Global Politics: HL): Revision Note

Jane Hirons

Written by: Jane Hirons

Reviewed by: Lisa Eades

Updated on

Governments and their agencies' impact on development

  • Government agencies are organisations created by the state to carry out specific functions or deliver public services

    • Government agencies involved in development can include those linked to finance, trade, health, justice and education

  • The relationship between government and development is complex and variable, and depends upon a range of factors

Factors affecting the relationship between government and development

Factor

Explanation

Example

The system of government

  • Social democratic or socialist states often prioritise social and political development, focusing on welfare, equality and public services

  • Sweden prioritises welfare policies such as universal healthcare and education, showing a focus on social development

  • Nationalist or single-party states often prioritise economic development to strengthen state power and stability

  • China emphasises rapid economic growth and industrial expansion to maintain political control and national strength

Level of economic development

  • More economically developed countries (MEDCs) have greater financial stability, allowing them to prioritise social and environmental development

  • Canada invests in healthcare, education and environmental protection due to its strong and stable economy

  • Less economically developed countries (LEDCs) may prioritise economic growth but can be supported by IGOs to adopt broader development goals

  • Rwanda focuses on economic growth while working with international organisations to improve healthcare and sustainability

Theoretical context

  • Realists say that all governments prioritise the approaches to development that best suit the state’s need for security and power

  • Liberals argue that a multifaceted approach to development leads to a stable and secure society

Government interactions with other actors and stakeholders within the state

  • Other actors within the state who interact with government include:

    • civil society, including non-governmental organisations (NGOs)

    • companies

    • political leaders

    • social movements

    • resistance movements

    • the media

  • If people and groups outside the government can influence decisions, there are more connections between different actors and levels of government

    • Civil society might advocate for better access to healthcare or improved educational facilities

    • Environmental groups may advocate for investment in wind turbines or solar energy

    • Political leaders from other parties may challenge the government to do more to develop society, based on their own understanding of what development means

    • Protest movements may advocate for justice and greater political rights

    • Companies may advocate for favourable treatment to improve economic growth

Case Study

Government interactions with actors and stakeholders in India

  • India is a democratic state where many different actors interact with the government, creating a complex network of influence at national and regional levels

    • These interactions show how different actors can influence decisions, leading to more connections between government and society

Interaction with other actors

  • Civil society and NGOs

    • Groups such as the Right to Food Campaign have pushed the government to improve food security programmes

  • Companies

    • Large businesses lobby for policies such as lower taxes or investment incentives to support economic growth

  • Political leaders

    • Opposition parties regularly challenge the government on issues like unemployment and education standards

  • Social movements

    • Farmers’ protests in 2020–21 pressured the government to reconsider agricultural reforms

  • Media

    • Indian media highlights social and economic issues, shaping public debate and influencing policy priorities

  • In single-party or autocratic states governments may still interact with other actors as necessary in order to promote their own vision of development

    • However, the will of the government will always dominate

Stakeholders 

  • Stakeholders are people in a country who are affected by development decisions but do not try to influence government policies directly

    • In democracies governments may be keen to understand the impact on stakeholders if they hope to stay in power at the next election

    • The needs of marginalised or vulnerable people and groups may or may not be considered, depending on the will of the government

Government interactions with IGOs

  • IGOs (Intergovernmental Organisations) are organisations made up of multiple governments that work together to achieve shared goals, often on international issues like security, trade or human rights

  • States must, to some extent, pool their sovereignty to be a member of an IGO

    • Many do so because of the hope that the membership will facilitate development

  • Combined efforts to share expertise and devise strategies can support governments as they work on development

    • For example, the UN ‘s Sustainable Development Goals provide a shared framework of targets and guidance to promote economic, social and environmental development

  • Some IGOs, such as the World Bank, focus on poverty reduction and support state governments with development projects through loans

    • It lends money to and supports economic reform policies for its poorest member governments

    • However, the World Bank is criticised because richer countries have more voting power, meaning states like the USA, UK, Germany, Japan and France have the most influence over its decisions

    • Some also criticise the conditions the World Bank sets for loans, arguing they can sometimes harm sustainable development

  • Other IGOs specifically focus on economic development

    • For example, the International Maritime Organisation regulates global shipping to ensure safe, efficient trade while helping states improve their maritime standards and infrastructure

  • Because of state sovereignty, government interaction with IGOs can only occur if the government approves

    • However, all states are interested in development and very impoverished states have few other options

Government interactions with TNCs and MNCs

  • Government interactions with transnational corporations (TNCs) and multinational companies (MNCs) can have both positive and negative impacts on development.

  • Some TNCs and MNCs have more wealth than the less economically developed states with which they interact

    • Whether this imbalance of economic power is always a problem is debatable

    • However, there are some widely accepted positive and negative effects of governments working with TNCs and MNCs

Impacts for governments working with TNCs and MNCs

Positive Impact

Negative Impact 

  • Investment by TNCs and MNCs can create employment opportunities

  • They pay tax to the government of the host country, which will increase government revenue

  • They sometimes invest in important infrastructure such as roads or railways which benefit the company but also the state


  • There have been cases of workers being paid very low wages and/or working in unsafe conditions to maximise profit

  • They often pressure governments for a lower tax rate, lessening the revenue benefit

  • They have been accused of exploiting natural resources and polluting the environments of less economically developed states

Case Study

Rana Plaza Collapse, Bangladesh (2013)

A collapsed building in an urban area, surrounded by rescue workers and observers
  • The Rana Plaza factory building in Bangladesh collapsed in April 2013, killing over 1,100 workers and injuring thousands

    • The building housed garment factories producing clothing for major TNCs and MNCs supplying global brands

  • The disaster highlights how TNC investment can support economic development, but also shows the serious risks when governments prioritise growth over regulation and worker protection

Government interaction with TNCs and MNCs

  • Bangladesh’s government worked closely with foreign clothing companies to promote economic growth through exports

  • The garment industry became a key part of the economy, showing how TNC investment can drive development

Positive impacts

  • Employment: The garment sector employed millions of workers, helping reduce poverty

  • Economic growth: Exports increased national income and government revenue through taxes

  • Infrastructure: Industrial development improved transport and factory networks

Negative impacts

  • Poor working conditions: Workers were paid very low wages and faced unsafe conditions, which contributed to the collapse

  • Weak regulation: The government was criticised for failing to enforce safety laws due to pressure to attract foreign investment

  • Corporate influence: TNCs benefited from low costs and were accused of prioritising profit over worker safety

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