Global Political Economy

Question 1

What is global politicak economy?

Answer 1

Globe-spanning system of institutions and interactions that make up and govern the global economy

Strong link and influence btwn politics and economy, not possible to consider one without the other

States, multinational cooperation, networks, organisations…

Discipline since 70’

Question 2

Capitalism def and history

Answer 2

Eco sys characterized by:
-private ownership of means of production
- monetary profit as main objective
- wage labour/ commodification of labour

History:
-14th to 17th in Europe then spread
-16th to 17th: merchant capitalism ( with expeditions to America and Asia, new market so nl more local trade sys but global seaward trade)
-industrial capitalism: 18th to 19th: industrial revolution so modern industy emmerge
-since 1970’: finance capitalism (libéral financial control)

Question 3

Steps of industrialisation of the world economy

Answer 3

1. Breton Woods era from 50’ to 70’: about goods flew, not financial flew. created the IMF, World Bank, GATT ( général agreement on trafic and trade)
2. Neoliberal era/ age of finance capitalism 70’ to now:
   - “Washington concensus”: agreement that there is only one way to manage economy=
   fiscal discipline
   Trade liberalization
   Privatization
   Deregulation so drop in gov. intervention in eco, free market…
   Decrease of public spending so drop in gov expenditure
   -GATT became WTO in 95
   -BUT INT policies though: conditionality of IMF and World Bank Ioans that are economic reforms that States have to implement for recieving financial assistance

Question 4

Neoliberalism

Answer 4

Political theory of free market extended as far as possible with non gov intervention, deregulation, law taxation and export-orientation

Assumptions abt human being: they are rational, individualistic, compétitive actors

Question 5

Def economics

Answer 5

The study on the production and distribution of goods and wealth

Question 6

4 types of poverty

Answer 6

• int poverty line: by World Bank, less than 2.15 USD a day so 712M people
  -Ethnical Poverty Line, P. Edward: less than 5.80 USD a day so 1/2 of the pop
  -multidimentional Poverty index: OPHI and UNDP, health, éducation, standard of living so 1.2 Bilion people
  -Global Hunger Index: Cw and WHH, undernourishment, child mortality so 735 M people

Question 7

Biggest critique of capitalism

Answer 7

Marx: exploitative sys where eco power is unevenly distributed perpetrating class hierarchy

Question 8

In broad way, 5 historical moments of alleviation of poverty

Answer 8

• CW and the “ white men’s burden” to fight communism
  -1960’ and the Rostow’s modèle of dvlpmnt stages of economic growth
  -70-80’ and the structural adjustments prog by IMF and World Bank
  -modernisation and microfinance in south asia
  -90’ to now UN sustainable dvlpmnt goals

Question 9

Who did the Modèle of dvlmpnt stages of economic growth

Answer 9

Rostow in 1960’

Question 10

What did Rostow plus explanation

Answer 10

The modèle of devlopment stages of economic growth: eco growth dvlpmt is linear, less developped countires need to “catch up”
Steps
A. Trade society ( Farmers…)
B. Pre condition for take off
C. Take off ( intensive growth, industrialisation)
D. Drive to maturité
E. High mass consumption

Question 11

Critics of the modèle of development stages of economic growth from Rostow

Answer 11

Not every states has the same opportunity as the developed ones ( they had colonisation…) + different scheme

Question 12

Structural Adjustment Programmes

Answer 12

By IMF and World Bank ( same time as Neoliberalism so same ideas)
To solve poverty and debt of countries

. Fiscal discipline: strict control of gov spending to reduce budget deficit
. Thitening of monetary policy: in ordre to prévent inflation, restriction of money supply and raise of intrest rates
. Trade liberalism ++
. Privatisation: selling states companies…

Question 13

Critics of Structural Adjustment programs

Answer 13

. Reduce public spending on health, social services…
. Unemployment bcs of privatisation
. Economic dependecy ( loose in eco sov) on foreign aid and int financial institutions
. Eco instability bcs of the deregulation and rapid liberalization of the market
. Environmental dégradation bcs of the focus on export-led growth so natural ressource exploitation…

Question 14

Modernization and microfinance

Answer 14

. Modernization : eco growth is based on industrialisation, techno advancements, urbanizaion
SO if fostering innovation and access to global markets to integrate the poor into global cpitalism

. Microfinance: providing loans to low-income indiv, so they can start small businesses so entrepreneurship and self-sufficency : invest and then incoms generating

Question 15

UN sustainable development goals

Answer 15

Goals to achieve by 2030 abt living conditions such as poverty ( 1st) but lack of will of the wealthy countries

Question 16

Critics of Modernization and microfinance

Answer 16

. Modernization :
A. benefits urban centers and elites ( promoting industrial growth =/ trditional livelihoods)
B. Take example on Western models but not same opportunities, cultural and local context

.microfinance:
a. can lead to debt traps for poor borrowers who struggle to repay high-interests loans
B. Don’t address structural pb such as unemployement, infastructure deficits… so limited impact

Question 17

Which country had a success story
What did they didn’t do?

Answer 17

SK, Singapor, Taïwan, japan thanks to export-oriented indu, protection of infant industries such as Toyta for Japan,
BUT NOT WESTERN WAY: no deregulation, yes to state intervention, no liberalization of capital flows

Question 18

“Thanks” to who is global poverty an international issue

Answer 18

Harry Truman, the Point Four Programm
Call for coopérative int effort Led by UN
To ensure peace and freedom worldwide

Question 19

According to the World Bank, extrême poverty has derease of

Answer 19

42% in 1981
11% in 2015

Question 20

Who wrote How is the world organised economically?

Answer 20

V. Spider Peterson

Question 21

What did V. Spike Peterson wrote?

Answer 21

Howbis the world organised economically?

Question 22

Most familiar approaches to explaining global ecknomy according to V. Spider Peterson + critics

Answer 22

A. Neoliberal/ liberal approach
Critics: overlooking at th real ‘costs of neoliberalism’: raise in informal ( irregular activity where laws are difficult to enforce ex drug dealing so =/ formal: legal, contractual)

This generate:
. Unpaid labour
. Social inequalities ( women, migrants, poor are disadvantaged)

B. Marxist approach: Peterson values this approach for its focus on power and class dynamics BUT shows how Marx neglect
.informal économies,
.gender and sex who are the axes of inequality
.social reproduction: process through which societies reproduction their cultural, social and economic structures across generations

Question 23

Who wrote How can we end poverty

Answer 23

Pasha

Question 24

What did Pasha wrote

Answer 24

How can we end poverty

Question 25

What are the ‘poor’ according to Pasha

Answer 25

A. The label the poor is a social construct who comes from classification processes and not qualité of indiv

B. Poverty is defined and perpétuated 8by sociétaire perceptions, policies and economic sys who classifiy people according to their ressources

C. Critics of neoliberalism prioritizing market-driven solutions and individual respo over systemic change

D. His proposes public investment in éducation, healthcare…+ engaging with communities in décision making process to be sure that it is effective + focus on env sustainable ecologic practices+ wealth redistribution

E. Attempts to alleviate poverty in the world have mixer succeeded: improvements sp in south est asia but others…