1. International Development

Question 1

What is International Development?

Answer 1

“the organized intervention in collective affairs according to a standard of improvement” (Pieterse, 2010: 3).

Question 2

Transnationalisation of Production and Consumption

Answer 2

How today creating conditions for low cost production tend to be a core element of Export-oriented industrialisation strategies of national development.

Question 3

Theories of Globalisation they expect different outcomes from “international development”

Answer 3

Strategies (optimistic, neoliberal hyperglobalisers do not talk about “development” just “economic growth”).

Question 4

Development origins

Answer 4

The Classical Political Economists (1800s) sought to explain and devise progress (Enlightenment)

Enlightenment and Emergence of capitalism

The Classical Political Economists sought “progress” through the liberation from Feudal society with regard to production and trade.

Question 5

“Development” - Origins Karl Marx

Answer 5

“Progress” involved the construction of capitalist social relations, benefiting capital and at the expense of the working class.

Question 6

Marx thought that capitalism was

Answer 6

an extraordinary process, both progressive and unsustainable.

Question 7

Since mid-19th C., capitalism has indeed become internationalised

Answer 7

World markets have integrated and repeatedly entered into crises

Question 8

In post-World War II period development came to relate to

Answer 8

3rd world of former colonies and its underdevelopment to point to failure of colonial economics
and advocate their independence.

Question 9

The Cold War period saw “development” becoming a highly politicised notion

Answer 9

Western Development Economics vs. Central Planning

Question 10

Liberal Modernisation Theory (1960-)

Answer 10

Linear understanding made of universal steps toward progress.

Question 11

Dependency Theory (1960-)

Answer 11

dependent accumulation leads to the “development of underdevelopment”.

Question 12

Human Development (1980-)

Answer 12

“capacitation” and choice enlargement

Question 13

Neoliberalism (1980-)

Answer 13

Debt crisis and return to neoclassical economics

Question 14

Washington Consensus

Answer 14

Free markets (deregulation, liberalisation and privatisation)

Structural adjustment programmes.

Question 15

Global Value Chains (Gereffi 2013)

Answer 15

Governance of value chains and Upgrading of national economies.

Geographic consolidation and value chain consolidation

Power shift from lead firms towards growing, semi-autonomous supplier firms in semi-periphery.

Emergence of new development paradigms

Question 16

What is BRICS?

Answer 16

Association of five major emerging national economies: Brazil, Russia, India, China and South Africa

Question 17

Changing conditions after the Global Financial Crisis (2007-9):

Answer 17

End of Washington Consensus

Continued emergence of ”semi-peripheral” BRICS

Accelerated weakening of advanced ”core” economies.

Question 18

Gereffi Criticisms

Answer 18

BRICS too positive a picture depicted by Gereffi.

Need better understanding of changing relational, interscalar and uneven dynamic of development.

How to understand impact of growing significance of financial flows and crises? Monetary hierarchies and “global wealth chains”

Question 19

What is Neoliberalism?

Answer 19

Free-market ideological doctrine becoming prominent in early 1980s

Question 20

Neoliberalism Brenner et al 2010

Answer 20

Extending “the structural power of transnational corporations

Resulting in dramatic acceleration of the integration of economic processes beyond national state boundaries

Question 21

In Liberal Market Economies (LMEs),

Answer 21

“Market coordination”: “firms rely more heavily on market relations to solve coordination problems” (Hall and Soskice, 2001: 27)

Question 22

Coordinated Market Economies (CMEs)

Answer 22

Firms reach equilibria through networks, governmental regulation, social bargaining

Question 23

Two broad models of firm interest coordination able to survive competitive pressures.

Answer 23

Liberal Market Economies (LMEs)

Coordinated Market Economies (CMEs)

Question 24

Criticisms of LME and CME

Answer 24

Limited range of types of firm-coordination

Unintentionally promoting neoliberal ideology:

Implicit assumption of superiority of LME over
CME

Privileging the firm at national scale, cutting it off from the international

False impressions of coherence

Removes real agency

Fails to appreciate differential impact of overlapping power hierarchies on strategies of different actors

Question 25

Extreme Liberalism

Answer 25

Advocates the near total removal of the state from the economy.

Question 26

Neoliberalism key actor

Answer 26

Rational, utility-maximising Individual.

Question 27

Neoliberal natural playing field of actors is

Answer 27

“the market”

The state is only necessary to protect individuals from one another.

Question 28

To create “free markets”

Answer 28

Extraordinarily complex regulatory frameworks and big bureaucracies are required

(e.g. the European Single Market)

which are disliked by neoliberalism.

Question 29

8 Features of The Washington Consensus Programmes

Answer 29

1. Cutting public expenditure
2. Focusing economic output on direct export and resource extraction
3. Devaluation of currencies
4. Trade liberalisation, or lifting import and export restrictions
5. Increasing the stability of investment (by supplementing FDI with the opening of domestic stock markets)
6. Balancing budgets and not overspending
7. Removing price controls and state subsidies
8. Privatisation of all or part of state-owned firms