Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Political Economy > Lecture 10 > Flashcards

Lecture 10 Flashcards

1
Q

What are the characteristics of developing nations?

A
  • High instances of poverty
  • Lack of a sizeable middle class
  • Relatively low literacy rates
  • Hunger
  • High instances of infant mortality
  • Poor infrastructure
  • Weak governments
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Who is Fanon, what did he write?

A

Fanon wrote a controversial book (The Wretched of the Earth) where he compelled Third World countries to fight against (even violently) oppose Western dommination. He also critized the elites in newly created countries who appeared to be corrupt.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is LDC?

A

Least Developed Countries

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Why did many LDC’s support Soviet style development strategies?

A

They were angry about the West who they (possibly rightfully) blamed for their underdevelopedness. Thus they were unwilling to support their viewpoints on development

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is according to structualists the difference between undevelopedness and underdevelopedness?

A

Un: lack of development
Under: by-product of the development process in industrailized regions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What do dependency theorists suggest?

A

That LDCs are locked in an unequal echange relationship because international prices for the manufactured goods that they import generally rise faster than the prices for primary products and raw materials that they export.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is the G77?

A

A group of 77 LDCs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is the UNCTAD?

A

The United Nations Conference on Trade and Development, a mechanism for LDCs and developed countries.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What are the six points of the Washington Consensus?

A
  • Currency devaluation
  • Raising intrest rates
  • Cutting government subsidies
  • Privatization of public companies
  • Reduction of the government budget deficit
  • Adoption of free-trade policies
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What are the three IPE Development Strategies?

A
  1. Economic Liberal
  2. Structualist
  3. Mercantilist
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is the liberal perspective to development?

A

Integrate into the global market economy by emphasizing their comparative advantages. Latecomers can learn from mistakes of developed countries.

Liberal perspectives largely focus on internal conditions (instead of global), some also focus on social impediments.

MNCs can help, though liberals do not believe in the race to the bottom, but believe that MNCs want growing markets, (political) stability and good government institutions. Often these MNCs have better conditions then local companies.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What does Moran believe is a strategy to combat sweatshops?

A

Adopting global standards and integrating swatshop concerns in WTO agreements. He believes that a passive strategy is wrongheaded, and believes that poor countries to create the right policy environments to get the highest gains.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is the appeal of the economic liberal outlook on development?

A

The interpretation that the US and others went through stages of growth that LDCs can replicate.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is Rostows theory regarding development?

A

Development requires LDCs to undergo evolutionary changes to their socioeconomic system. These are universal (according to him).

  1. Tradiotional: low levels of economic productivity and constraings individuals through rigid social values.
  2. Take off: new industries increase repidly as the entrepreneurials spirit becomes more dominant.
  3. Mass consumption & self-sustained growth: Major sectors in the economy are able to supply goods and services for a large cross-section of the population.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is the structuralist perspective on development strategies?

A

They believe in the dependency theory. They claim that developed nations have neoimperial connections to the periphery via trade, aid and FDI.

Those who are connected are wealty, those who are not, are not.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What did many Soviet countries do during the cold war to develop?

A

They turned inwards and emphasized isolation.

17
Q

What is import-substitution industrialization?

A

A nationalistic strategy design to minimiz the adverse effects of dependence of foreign capital and markets. By promoting local products and curtailing foreign imports. These strategies often turned countries made these heavily indebted and gave them inefficient industries.

18
Q

What is the mercantilist perspective to development? Who followed it?

A

They consider international trade as essential to national development, however they are not enthausiastic about the limited government doctrine (from the liberal perspective).

  • They believe in export oriented industralization, i.e. for the state to promote exports in selected sectors of the economy. Thus they created for themselves a comparative advantage.
  • Promoting high level of savings and investment

Countries like South Korea and Taiwan followed this example.

19
Q

What are NICs?

A

Newly Industrializing Countries

20
Q

What was the most succesful development strategy?

A

The mercantilist approach seems to have gotten the best results. Though the World Bank stresses that the key to success was not so much what the government did, but more did not do. Though East Asian scholars disagree and believe that the success mainly stemmed from the state intervention.

Some argue that this state control cause the Asian financial crisis. Though others claim that this was caused by neoliberal policies.

Some liberals and mercantilists have converged on the idea that the most important goal is good government not the strategy.

21
Q

What neoliberal policies has the IMF conceded?

A
  • Governments may need to increase spending during a crisis
  • High income inequality hurts growth
  • Capital controls mmay be beneficial in some circumstances
  • Social protections need to be strengthened

Though an analysis showed that its demands remain generally the same.

22
Q

What is Carrols critisism of the World Bank? What is his perspective?

A

Structuralist. The critized the IFC (part of the world bank) for fostering the growth of financial intermediaries in the Asia-Pacific region. He believes it promoties inernational capital accumulation through finance, not real development.

23
Q

How has development policy since 1990’s (and 2000s) changed?

A

The world bank now emphasizes good governance, i.e. governments have to reform to make the changes effective.

24
Q

When do demands for good governance sustain according to Birdsall?

A

If al least 20-25% is part of the middle class (at least $10 per day).

25
Q

How can countries escape the middle income trap according to Doner and Schneider?

A

Increase productivty, but this is difficult, since according to them it requires large social cohesion.

26
Q

What are bottum-up approaches to development?

A

Trying to change behavior of individuals, by nudging them in the right behaviour. Obv. structuralist oppose this as well.

Another part is to try to include everyone into the economy.

27
Q

What recent ways to increase inclusion in the financial systems? Why is this controversial?

A

Giving microcredits, empowering women. This is controversial since these programs oftens stress self-help and do not advocate for structural change. Also these programs portary women as people who need help and are victems.

28
Q

What are the eight Millennium Development Goals?

A
  1. Eradicate poverty by half
  2. Universal primary education
  3. Advance gender equality and empower women
  4. Reduce child mortality by two-thirds (by 2015)
  5. Reduce child mortality ratio by two-thirds
  6. Reduce the spread of HIV/AIDS and malaria by half (by 2015)
  7. Secure environmental sustainability
  8. Develop a partnership for development that includes an open rules based nondiscriminatory trade and financial system
29
Q

What does economist Sachs advocate for?

A

Greater commitments from industrial nations toward achieving MDG and SDGs. He also advocates for more foreign aid.

30
Q

What are some critisms of foreign aid?

A

Most wealty countries use foreign aid to pursue national security goals, and this often goes to corrupt regimes.

31
Q

What are HIPSs?

A

Heaviliy Indebted Poor Countries

32
Q

What are three observations about China’s growth?

A
  1. It removed protectionism slowly
  2. The state retained a large role in the economy
  3. The state imposed requirements on foreign investors to create comparative advantages

Political Economy (11 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions