Class 15: Underdevelopment Flashcards
What is Under-Development?
An explanation of uneven socio-economic development of states.
What are the South Hemisphere Development Strategies?
a) attempts to delink themselves from the intl economic system
b) attempts to change economic order
c) policy designed to maximize benefits from integration
When are the Southern Hemisphere development of strategies successful?
- well-developed bureaucracy
- labor discipline
What was the result of the Hirschmann study?
Germany’s trade with Eastern and Central Europe influences their development.
What are the two ways that foreign trade impacts power?
1) Supply effect - providing military resources
2) Influence effect - use of trade to influence other states by restricting their market.
What did Raul Prebisch say?
Developing states are poor because the system of global capitalism makes it difficult for them to develop through disadvantageous terms of trade.
What is the World Capitalist System theory?
Marxist conception. Systemic maldistributions of resources occurs as a result of inter-state relations. The universal motive is to maximize profit inthe system.
Modes of Production
1) core area; strong bureaucracies
2) peripheral areas; capitalist landowners want open access
3) semi-periphery areas; mixed
Three transformations of the world economy
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
Four stages of world capitalism
1) agricultural capitalism
2) focus on mercantilism
3) industrial capitalism
4) consolidation of industrial capitalism
Technology diffuses as a response to what two phenomena?
1) eventual redistribution of withdrawn surplus
2) privileged factions co-opt resistance factions
What are the three explanations of solutions by Robert Gilpin?
1) Liberal Development
2) Marxist Underdevelopment
3) Structuralist Underdevelopment
Liberal Development Assumptions
- trade permits comparative advantage
- productivity encourages foreign direct investment
- foreign aid assists in funding projects
Liberal solutions
- anti trust legislation
- reduction of tariffs
- privatizing state enterprises
Liberal development problems
- sometimes no comparative advantage
- state managed strategies aren’t a free market
- trade depends on competitive worker productivity
What are the assumptions of marxist underdevelopment?
- extraction of profits back to the investor states
- multi-national corporations dominate trade
- surplus expropriated through profits back to the investing state
Problems of marxist underdevelopment?
- underdeveloped states do not matter
- developed states absorb their economic surplus
- surplus investment of developing world of minor significance to developed
- multinational industries often overruled by foreign policy
Assumptions of Structuralist Underdevelopment?
- trade is not an engine of growth
- competition reduces export profits
- increased cost of manufactured goods
- export economies isolated
- investment avoids the underdeveloped
Structuralist Underdevelopment solutions for redistribution?
- ISI
- reduce trade barriers between developing states
- population control
What are the paradoxes of development?
- dependency cannot explain the emergence of newly-industrialized countries
- Why is the Middle East underdeveloped in spite of their oil control?
What are the two new dependency studies?
- Bureaucratic Authoritarian State
- Associated Dependent development
Three States of Associated Dependent Development?
- suppress labor
- nationalist development replaced by intl bourgeoisie
- restructured to intl trade
