Final Exam Flashcards
Intensive growth
transforming the way things are produced
Extensive growth
adding external factors which leads to growth
Simon Kuznets
GDP is measure of national welfare
Paul Krugman
productivity is about everything
Productivity is about ..
Ratio of inputs and outputs and how these ratios can be maximized
Increase & decline in productivity ..
affects growth and profitability
Productivity motivates ..
competitiveness
Alfred Chandler
analysed productivity in the Industrial Revolution
Taylorism
studying ways of increasing productivity by changing the production process
High rode
high level of investments in infrastructure, skills etc. to improve productivity
Low rode
hardly any investments, capitalism
Strategies for boosting productivity
Capital intensity, intensification, innovations
Important elements of productivity
Transport and infrastructure
Digitization of business activities
causes a productivity transition troth = decline, increase curve
Amartya Sen
Welfare: focus on human development (autonomy, freedom, capabilities)
How to measure welfare?
income, morality, housing, electricity, freedom, water etc.
How is inequality caused?
Contigent, incidental, individual (some lucky some not), political (not a choice)
Neoclassical
The market could reduce inequalities
Statist/developmentalist
The state is an inequality mechanism, it can create, solve or maintain it
Critical political economy
Inequality because of class relations
Social inequalities
Uneven distribution of resources
Measures of inequality
Gini coefficient, Lorenz curve, Palma ratio, Relative poverty
Thomas Picketty
Rich will get richer and the poor will never catch up because incomes do not grow. Capitalism increases inequality. Market worship is bad. Calls for global tax and democracy.
Lorenz Curve
Distributie of income in a population
Palma ratio
Top 10 percent / Bottom 40 percent
Intergenerational transmission of poverty
Features of poverty are passed on to next generations (vicious circle)
Transcient inequalities
Inequality can change by for example government measures
Malign
wars, war taxes, conflicts, epidemics, state breakdowns
Benign
mass education, relaxed constraints on trade, tech progress, finance capital
Current forces acting on inequality
globalization, plutocratic politics (wealthy peeps), relaxed constraints on trade, tech progress
Angus Deaton
Inequality has increased but it is not the main thing to worry about
Kuznets curve
Hypothesis about inequality; inequality declines by industrialization
Extrapolation
A trend is going to continue in the future (Picketty, Kuznets curve)
Gradational inequality
There is a gradient income which makes people unequal.
Relational inequality
What your position is, domination and exploitation (caste system)
Charles Tilly
Principle of exclusions: your rights depend on the group you are in (categorical inequality)
Categorical inequality
Inequality based on class, ethnicity, gender
Eugenics movement
movement based on racial purification (inspired Hitler)
Ricardo
Class is fundamental aspect of social life, especially within capitalism
Weber
Class shapes social life and chances
Marx
Class is about social relations between different groups (similar to Weber, tho Marx included exploitation)
How to think about class?
As individual (race), as condition (living standard) and as inequality
Class analysis
Formation, struggle, consciousness
Class analysis of poverty
Genetic inferiority approach, culture of poverty, societal byproduct, class exploitation approach
Intersectionality
Multiple factors bearing on life experiences within capitalism
Market-state dualism
Looking at the state and market seperately
Varieties of Capitalism
Hall & Soskice; Liberal Market Economy & Coordinated Market Economy
Shareholders
Own the company, provide capital for the company (own the share). The profit the company makes it their dividend
Stakeholders
Parties that lend a company many or are simply interested
LME
Free role in allocation of resources; shareholder decides; to accumulate capital; short term
CME
Large role of the state; stakeholders; long term
Variegated financialisation
Arrangements on how firms are governed & financed; all firms are a political construct; ongoing process of market making
Hirschman
Introduced the discussion between exit, loyalty and voice in stake&shareholder capitalism
Voice
Representation of parties, government etc
Industrial relations
Individual bargaining (less power for workers) & peak bargaining (more power for workers)
World scale financialization
National financial systems vary more often; capital market liberalization evolves; financial interdependence
Financialization of social life
housing, education, social protection
Modes of incorporation
process by which countries have been incorporated in the world economy over time
Critics of Sen
Capitalism can liberate people
Indicators development
Millennium Development Goals & Sustainable Development Goals
What are the main development debates?
Modernization, Industrialization, Mobility/Underdevelopment, Marketization
'’Race to the bottom’’
Competition on the global market has negative effects
Extractive institutions
countries centered around exploitation; no opportunities
Inclusive institutions
everyone can participate in economic life (not always positive because in China, peasants had no reason to invest)
The liberal market view
Eliminate exclusion, inclusion in the world market
Ten commandments Washington
Telling developing countries not to protect their infant industries
Embedded autonomy
Issue of industrial promotion in developing countries; strong state. good bureaucracy; advice capitalists
State capture
The state has no autonomy, capitalists decide everything (opposite of embedded autonomy)
Claus Ale
Capitalists have veto in a capitalist economy
Evans, Huber, Stephens
How effective is the State? Explaining this by reflecting on effective states as dependent variable (makes that they are actually important) (focus on state capacity)
Institutional responsibility matrix
family, state, market, community
The welfare mix
Variation in institutional mix, so what aspects (state, market, family, community) are important in the specific country?
Anderson
How people are protected from the market by the state; aspects of social life are commodities; all depends on political class settlements
Karl Polanyi
People are dependent on the market and at one point need protection from the market. Why? Because a self-regulating market economy is a myth; an institution needs to protect the people
McKloskey
Markets have improved welfare
Types of welfare states
social, democratic, liberal and continental
Nordic welfare states
Very social democratic so; state protection
US and UK welfare states
Liberal; little market protection
Adverse incorporation
Occurs in countries that do not have welfare; people rely on the family or communities; exploitation in return for help; no state protection
