Class 15: Underdevelopment

Question 1

What is Under-Development?

Answer 1

An explanation of uneven socio-economic development of states.

Question 2

What are the South Hemisphere Development Strategies?

Answer 2

a) attempts to delink themselves from the intl economic system
b) attempts to change economic order
c) policy designed to maximize benefits from integration

Question 3

When are the Southern Hemisphere development of strategies successful?

Answer 3

1. well-developed bureaucracy
2. labor discipline

Question 4

What was the result of the Hirschmann study?

Answer 4

Germany’s trade with Eastern and Central Europe influences their development.

Question 5

What are the two ways that foreign trade impacts power?

Answer 5

1) Supply effect - providing military resources
2) Influence effect - use of trade to influence other states by restricting their market.

Question 6

What did Raul Prebisch say?

Answer 6

Developing states are poor because the system of global capitalism makes it difficult for them to develop through disadvantageous terms of trade.

Question 7

What is the World Capitalist System theory?

Answer 7

Marxist conception. Systemic maldistributions of resources occurs as a result of inter-state relations. The universal motive is to maximize profit inthe system.

Question 8

Modes of Production

Answer 8

1) core area; strong bureaucracies
2) peripheral areas; capitalist landowners want open access
3) semi-periphery areas; mixed

Question 9

Three transformations of the world economy

Answer 9

1) a qualitative change
2) geographic increase in number of participants in the global economic system
3) each stage confirms or changes the particular role of each state

Question 10

Four stages of world capitalism

Answer 10

1) agricultural capitalism
2) focus on mercantilism
3) industrial capitalism
4) consolidation of industrial capitalism

Question 11

Technology diffuses as a response to what two phenomena?

Answer 11

1) eventual redistribution of withdrawn surplus
2) privileged factions co-opt resistance factions

Question 12

What are the three explanations of solutions by Robert Gilpin?

Answer 12

1) Liberal Development
2) Marxist Underdevelopment
3) Structuralist Underdevelopment

Question 13

Liberal Development Assumptions

Answer 13

1. trade permits comparative advantage
2. productivity encourages foreign direct investment
3. foreign aid assists in funding projects

Question 14

Liberal solutions

Answer 14

1. anti trust legislation
2. reduction of tariffs
3. privatizing state enterprises

Question 15

Liberal development problems

Answer 15

1. sometimes no comparative advantage
2. state managed strategies aren’t a free market
3. trade depends on competitive worker productivity

Question 16

What are the assumptions of marxist underdevelopment?

Answer 16

1. extraction of profits back to the investor states
2. multi-national corporations dominate trade
3. surplus expropriated through profits back to the investing state

Question 17

Problems of marxist underdevelopment?

Answer 17

1. underdeveloped states do not matter
2. developed states absorb their economic surplus
3. surplus investment of developing world of minor significance to developed
4. multinational industries often overruled by foreign policy

Question 18

Assumptions of Structuralist Underdevelopment?

Answer 18

1. trade is not an engine of growth
2. competition reduces export profits
3. increased cost of manufactured goods
4. export economies isolated
5. investment avoids the underdeveloped

Question 19

Structuralist Underdevelopment solutions for redistribution?

Answer 19

1. ISI
2. reduce trade barriers between developing states
3. population control

Question 20

What are the paradoxes of development?

Answer 20

1. dependency cannot explain the emergence of newly-industrialized countries
2. Why is the Middle East underdeveloped in spite of their oil control?

Question 21

What are the two new dependency studies?

Answer 21

1. Bureaucratic Authoritarian State
2. Associated Dependent development

Question 22

Three States of Associated Dependent Development?

Answer 22

1. suppress labor
2. nationalist development replaced by intl bourgeoisie
3. restructured to intl trade