Final Exam Flashcards
Marshall Plan
USSR refused to be involved
Unbelievable success. “the” model
Rebuilding existing infrastructure
Dams - why did IMF/WB alike this development style?
?
Traditional views / Definition of development
21st century views / Definition of development
?
World Bank
Created by Bretton Woods Agreement
Infrastructure projects (dam-created reservoirs) resulting in displacement of people
Purpose: loans for capital investment projects
International Monetary Fund (IMF)
Goal: Exchange rate stability & balance of payment alleviation
Loan Mechanism: Structural adjustment loans
Quota voting
Currency of Record
Currency used to calculate most international trade transactions
Simpler to use one currency for everyone
What is needed for a multivariate Soci-cultural model?
?
Liberalism / Classical Economics
Individualistic (private property, profit, self-interest) Free Competition (no outside interference) Supply and Demand driven (price equilibrium)
Marxism
Analyzes class relations and societal conflict using a materialist interpretation
Modernization Theory
Sachs Development Ladder
- high income business executives
- middle income L.T. Workers in India
- Poor sweatshop workers in Bangladesh
- Subsistence farmers in rural Malawi
Dependency Theory
Reaction of Latin America economists to failings of modernization theory
Industrialized countries exploit underdeveloped countries for raw materials and markets
Unequal trade impedes social progress; government intervention necessary
Neoliberalism
Built on idea of minimal government, low taxes and minimal regulation.
Generally for the benefit of those with capital.
Income Disparities
Extent to which income is distributed in an uneven manner among a population
Poverty Inequality
Not everyone is poor
Capability Inequality
Not everyone can do things
