Final Flashcards

Question

Under ”liability responsibility” model, who might be held responsible for sweatshop labor (and why)? A. Owners and managers of factories that violate labor laws (e.g. BJ & B and Yoopong)? B. MNCs and firms that buy directly from these groups (Nike? UCs?) C. Government officials in countries within which sweatshops operate that violate labor laws? D. A, B, and C

Answer 1

D. A, B, and C

Answer 2

Cite: Lecture & Sachs Define the concept clearly and precisely, demonstrating understanding (~1 paragraph) Divided into two parts: Analytical and Normative Analytical: Examines interactions between 3 complex systems: Global economy Global society Global physical environment [4] Governance: Global, national, subnational, local levels Normative: Recommends set of goals to which the world should aspire: SDGs Hence defined as “Socially inclusive and environmentally sustainable economic growth” (Sustainable development defined—Sachs, 2015, Page 3) Explain its relevance for the field of development, with depth and complexity (~1 paragraph) Brings in another factor of consideration to the field of development—we cannot be so focused on development that we ignore everything else, such as the environment (Lecture 3) The need to address developmental challenges in a way that is environmentally sustainable. (lecture 3) Provide a fully developed empirical example (observable occurrence) of this relevance, based on course materials (~1 para) 10 Planetary Boundaries that humanity is in danger of exceeding (Sachs 2015, p.41) Red and green both showcases how close humans are to exceeding planetary boundaries Very Red: Climate change, Nitrogen cycle, Biodiversity loss Green: everything else on the circle, including (but not limited to) ocean acidification, change in land use, global freshwater use

Answer 3

Cite: Latin America: lecture, Vanden and Prevost, Greig et al. Define the concept clearly and precisely, demonstrating understanding (~1 paragraph) Neoliberalism is an economic and political philosophy that emerged in the late 20th century. It argued for free markets, reduced government intervention, privatization, and deregulation. Neoliberalism assumes that free markets naturally lead to efficiency, economic growth, and development, arguing that state led development models create inefficiencies and corruption. In Latin America, it became dominant in the 1980s and 1990s, especially through structural adjustment programs (SAPs) pushed by the IMF and World Bank (Vanden & Prevost). These policies were based on the idea that state-led development was inefficient and corrupt and that open markets would drive economic growth (Greig et al.). Explain its relevance for the field of development, with depth and complexity (~1 paragraph) Neoliberalism shaped development in Latin America by focusing on economic growth through market “liberalization” but at the cost of social welfare. The push to privatize industries and cut government spending was meant to make economies more efficient, but it also made essential services like healthcare and education harder to access for lower-income groups (Vanden & Prevost). While some countries saw short-term growth, the long-term effects were mixed, with rising inequality, economic instability, and greater dependence on global markets (2/11 Lecture) Provide a fully developed empirical example (observable occurrence) of this relevance, based on course materials (~1 para) The Chicago Boys,-a group of Chilean economists trained at the University of Chicago, implemented free-market policies that included privatization, deregulation, and cuts to social spending (Vanden & Prevost). While these reforms led to economic growth and foreign investment, they also caused high unemployment, deep income inequality, and social unrest. Another example of neoliberalism’s impact is Latin America in the 1990s, when countries adopted Structural Adjustment Programs (SAPs) pushed by the IMF and World Bank (Vanden & Prevost). These policies privatized industries, cut subsidies, and slashed social spending, which led to some economic growth but also worsened poverty and inequality (Lecture 2/11). In Mexico, for example, privatizing the banking sector and opening up markets to foreign investment actually led to financial instability (Greig et al.). Showed how neoliberal policies could make economies more vulnerable rather than securing long-term development.

Answer 4

Cite: Wade, Stiglitz: "What I Learned at the World Econ. Crisis," Rodrick + lecture Define the concept clearly and precisely, demonstrating understanding (~1 paragraph) Foundations of Crisis: Early to mid-1990s Dramatic financial sector liberalization (neoliberal reforms) Capital account openings US and Japan agree to allow US $ to appreciate vis-a-vis the J yen Japanese exports less expensive → economic stimulation Problem=Emerging economies (e.g. Thailand, Brazil, and others) pegged currencies to the dollar to attract foreign investment Prices of their exports increase Balance of payment deficits → cannot sustain attack on Bhat Capital account liberalization (neo-liberal reform) supported by IMF, US, and UK state treasuries, dominant financial firms in US and UK (Lecture 13) Influx of borrowed money for nations in Asia, including Malaysia, Philippines, South Korea, Thailand, etc. Led to deregulation in international monetary flow aka capital liberalization Deregulated and newer private domestic banks would take out massive loans (Wade 1998) Preconditions for crisis High rates of domestic savings Fixed exchange rate regimes pegged to the USD → little hindrance in moving the funds Led to increase in domestic currency supplies & inflation Liberalization of capital markets in the early to mid 1990s without regulations in place Vast international economic liquidation of currency Lending at lower prices, with higher returns This eventually led to inflation and a chain effect from bhat (thai currency) withdrawals in Thailand onto the rest of Asia (Wade 1998) Explain its relevance for the field of development, with depth and complexity (~1 paragraph) Theory: Currency crisis → triggers debt crisis → triggers development crisis: 1. Output and living standards plummet 2. Unemployment soars 3. Import prices go up; export prices down. Trade deficits 4. Millions of poor left at risk 5. Millions of middle-class citizens lose life savings Led to two thesis debates “Death Throws of Asian State Capitalism” Thesis: Central cause of crash: 1. Excessive state intervention in Asian markets 2. Domestic obstacles to growth “Panic/Investor Withdrawal in Under-Regulated System” Thesis What IMF came to realize but much later Central Focus: 1. External and global financial system causes 2. Dangers of capital account liberalization without regulatory frameworks (domestic and international) in place (Lecture 13) International capital markets do bad job on determining what is a good vs bad risk to take Liquid short term capital is a bad idea Trade orientation perse has little to do with the propensity to be hit with severe liquidity problems, given markets hit in asia are the most outwardly leaning Calls more extensively to an improved system on conflict management (Rodrick) Provide a fully developed empirical example (observable occurrence) of this relevance, based on course materials (~1 para) Crisis first hit Thailand Given Thailand was the most inflated From borrowing money through aforementioned methods Thailand’s stock market crashed Possible Thailand bhat devaluation, leading to companies rapidly trying to buy USD in fear Domestically though rodrick argues they handled it pretty well "the utility of a democratic process that gives people theright to choose a government they believe can solve their problem” Expelled foreign workers, mainly burmese to showcase that the government is trying something & to prioritize domestic workers in times of job loss (Rodrick) Tried to fix with IMF package (and kind of worked to contain financial crisis contagion) bc it showcased a international effort Stopped working after realizing US is not doing anything (Wade)

Answer 5

Cite: Stiglitz, Ch. 3, "Making Trade Fair" + lecture Define the concept clearly and precisely, demonstrating understanding (~1 paragraph) The Uruguay Trade Round, as discussed by Stiglitz in The New Republic, was a series of trade negotiations under GATT from 1986 to 1994 that ultimately led to the creation of the WTO. It was supposed to lower trade barriers across industries and promote global economic growth, but in reality, it favored wealthier nations while putting developing countries at a disadvantage. While free trade was the goal on paper, powerful countries like the U.S. and those in Europe kept protections like agricultural subsidies, making it harder for poorer nations to compete on equal footing Explain its relevance for the field of development, with depth and complexity (~1 paragraph) The significance of this concept for development is that it reinforced global inequalities instead of leveling the playing field. Developing nations had to lower trade barriers, but wealthier countries kept protecting their industries. Agricultural subsidies in the U.S. and Europe led to unfair competition, while TRIPS rules made it harder for poorer nations to access affordable medicines. Stiglitz argues that these policies limited economic growth in the Global South and kept them dependent on wealthier nations (Lecture, 3/6). Provide a fully developed empirical example (observable occurrence) of this relevance, based on course materials (~1 para) An example of this is how U.S. farm subsidies impacted global trade. Even after the Uruguay Round was supposed to reduce trade distortions, the U.S. continued subsidizing its agriculture, especially corn and wheat. This was especially damaging for Mexican farmers after NAFTA, where cheap, subsidized American corn flooded the market, putting small farmers out of business and driving many into poverty.

Answer 6

Cite: Iris Marion Young + lecture Define the concept clearly and precisely, demonstrating understanding (~1 paragraph) Responsibility not derived from individual fault, but from “my membership in a group (a collective) which no voluntary act of mine can dissolve” (Lecture 16) Iris Marion Young focuses on how people and institutions are responsible for social justice issues. - Responsibility is not just about assigning fault, it's about structural and institutional responsibility, especially for collective social harms like inequality, poverty, and environmental degradation - LIABILITY RESPONSIBILITY - Asks us to think about how we, as a collective, can address injustice and social harm. About recognizing out shared role in creating social change and improving society Explain its relevance for the field of development, with depth and complexity (~1 paragraph) Reconsiders the concept of liability responsibility Fault liability “Most common model…derives from legal responses to find guilt or fault for a harm…” “Fault model”: Responsibility assigned to particular agent(s) whose actions can be shown as causally connected to the circumstances for which responsibility is sought” Limiting condition: action causing harm must be voluntary, not coerced Strict liability Responsibility assigned, even if outcome is unintended 5 distinguishing features of political responsibility model Unlike fault/blame model responsibility (liability model), the political responsibility mode does not only hold specifc MNCs, firms, overnmetns, etc. responsible Liability responsibility model: perceives wrong as deviation from baseline of morally accepted norms and practices as codified in law Political Responsibility Model: forward-looking vs backward-looking Blame and praise is backwards looking while understanding the process that something unjust unjusthas happened and taking actions/responsibility for what has happened is more forwards looking Political responsibility is more open to actions that count as taking responsibility (vs. duty—which primarily is understood as rule following) Political responsibility is a shared responsibility (Young) Provide a fully developed empirical example (observable occurrence) of this relevance, based on course materials (~1 para) Examining Alta Gracia BJ & B Yoopong Corp., 1989-2002 Work conditions notoriously exploitative Low wages Lng hours No overpay Verbal, physical, sexual harassment/abuse Violation of workers’ right to organize Students Against Sweatshops (USAS) and BJ & B ~8 yrs. After establishment of BJ & B → 1997: emergence of transnational student labor movement, US Students Against Sweatshops (USAS) Because selling products to universities, BJ & B workers reach out to USAS → Transnational coalition USAS + faculty + university administrators + labor experts develop university codes of conduct to govern university supply chains Next Step: Establish an org to oversee implementation of university labor rights codes of conduct Workers RIghts Consortium (WRC) Created to enforce labor rights codes of conducts through monitoring university supply chains BJ & B Workers + USAS, 2001 File complaint with Workers rights consortium (WRC), dec. 2001 Right to organize being violated (bottom-up: domestic/DR) USAS supports workers (Transnational coalition) Demonstrations media campaign, letter writing, etc Scott nova, Director of WRC, (Top-down) Coalition building ImpactL Union finally recognized in 2002 1st unionized export apparel factory in a ftz in caribbean What explains success? Role of USAS critical in supporting BJ & B workers Scott Nova, Director of WRC Ignacio Hernandez, Secretary general of new union (Fedotrazonas) Was surprised to see group of students put pressure on brands (Lecture 15) How can we apply this to sweatshops? 1. Recognizing a shared responsibility, 2. Persuading others that they share it as well, 3. Organizing forms of collective action designed to Change incentive structures Alter constraints Shift distribution of benefits in continuing to buy and sell goods manufactured by super exploited workers (Lecture 16)

Answer 7

Cite: Sen, Ch. 12 + lecture Define the concept clearly and precisely, demonstrating understanding (~1 paragraph) Sen argues that individual freedom is interconnected with social responsibility. We all have a responsibility to society because social conditions are critical to enabling individuals to achieve their full potential. In Development as Freedom Sen argues that freedom is not merely about the absence of constraints but also about having the resources and opportunities to make decisions. He argues that societies have the responsibility to create conditions to exercise their freedom, such as access to education, healthcare, and economic opportunities. He explains that freedoms don’t exist in isolation, they’re shaped by social structures, institutions, and policies. At the same time, individuals also have a role in shaping these institutions. This means that expanding freedom isn’t just about giving people rights but also about creating a society that actively supports those rights and opportunities. Ex.voting Individual Freedoms: Political freedoms: The right to participate in governance, express opinions, and hold leaders accountable. Economic facilities: Access to financial resources, markets, and opportunities for economic participation. Social opportunities: Basic services like education and healthcare that enable people to lead fulfilling lives. Transparency guarantees: Open and accountable institutions that prevent corruption and exploitation. Protective security: Social safety nets such as famine relief and unemployment benefits that protect the most vulnerable Explain its relevance for the field of development, with depth and complexity (~1 paragraph) Sen emphasizes that freedom and development are mutually reinforcing, democracy, transparency, and social protections are necessary for economic and social progress (Lecture, 3/13). Sen’s concept challenges traditional economic measures of development, such as GDP, by emphasizing that human well-being must be the central focus of policy. He argues that economic growth alone does not guarantee greater freedom, and that economic policies should prioritize people’s well-being by providing them with the tools to make choices about their lives (Lecture, 3/13). In the context of development, this means that governments should actively invest in public goods that enhance people’s ability to participate in economic and political life. This perspective contrasts with neoliberal development models, which prioritize market efficiency but often neglect social safety nets (Lecture, 3/13.) Provide a fully developed empirical example (observable occurrence) of this relevance, based on course materials (~1 para) A clear example of this is how democratic societies are better at preventing famines, which Sen attributes to the accountability that political freedoms create. He points out that in democratic countries with a free press and open elections, governments are pressured to respond to food crises because failing to do so would cost them politically (Sen, Development as Freedom). In authoritarian regimes, where citizens lack the political freedom to demand action, they have historically suffered devastating famines. This example shows how individual freedoms, when supported by a socially committed government, can directly impact people's well being and prevent large scale humanitarian disasters.