Midterm 2 Flashcards
5 Western-based international organizations for development
- OECD- Organizations for Economic Cooperation and Development; promote market economy, democracy census aid, made up of the most economically well of countries.
- European Union- world’s largest source of multilateral aid (10-12%)
- spheres of influence orgs- established by western powers to keep ties with former colonies
- organization of american states (OAS)- influential political and business elites on issues of development, status of women, the war on drugs, human rights
- Commonwealth of Nations- former British colonies, democracy promotion
Non-western-based international organizations for development
- BRICS (Brazil, Russia, India, China, South Africa); development based on south-south cooperation
- New Development Bank- alternative to western int’l financial institutions
- Non-Aligned Movement (NAM)- counter to cold war bipolar system; anti-imperialism, pro-independence, moderation of great powers
- G77- coalition of Global South states in the UN; want reduce western dominance in international political economy give global south more voice
non-western based international organization ‘regional blocs’
- Association of Southeast Asian Nations (ASEAN)
- Southern Common Market (MERCOSUR)
- African Union
International Financial Institutions
- IMF & World Bank
- Bretton Woods Institutions
IMF voting system
- weighted according to member’s financial contributions
- economically strong states 57% of vote (US 17%); poorer countries 29%
- votes translate into representation in board meetings; each economically strong state has 1 rep while 46 sub-Saharan states share 2 reps
- US highly influential- appoints the president, financing of IMF mostly goes to US allies
History of IMF/World Bank
- created in 1944 at Bretton Woods Conference. (IMF) in response to trade wars of WW2 (created to stabilize economy/exchange rates) World Bank (for reconstruction after WW2 destruction)
- 1950s/60s- clientele of World Bank increase cause of decolonization and new set of development loan clients for the World Bank
- 1970s- instability/crisis in global economy changs role of IMF/WB no longer involved in currency and exchange rate stability and becomes a lender of last resort, increased involvement in development projects
- end of 1970s- oil shocks lead GS to borrow from private western banks with high interest IMF/WB has to step into help pay their loans; implemented structural adjustment programs
- 1990s- SAPs criticized; it isn’t working so IMF/WB blame it on GS governments and end up promoting ‘good governance’- states are seen as important again
- 2000s: introduce ‘comprehensive agenda’ for development; Bretton Woods institutions began emphasizing poverty reduction instead of SAPs- focuses on states being drivers of development. But still keep very market focused
- 2008 financial crisis- try to revamp itself as global lender and promises to make amendments to western-dominated system.
Impact/role of IMF/World Bank
- established a new, stable, economic system
- responsible for development of west after WW2
What are 3 main characteristics of civil society
- voluntary associations
- non-governmental and non-profit associations
- seek to alter or reinforce existing rules
3 forms of civil society
- associations
- social communities
- share economic /polical interests
Functions of civil society
- limit state power
- strengthen accountability of the state
- empower movements
- absorb shocks of market liberalization
- improve inclusiveness
History of Civil society
1940s-70s- weak involvement of civil society in development
1980s- retreat of state, civil society strengthening of civil society Bretton Woods inst. promote civil society
1989- UNDP promote private sector (civil society) in development
1980s/90s- step in during neoliberal economic policies; promoted anti-globalization movements
- 1990s/2000s civil society increasing as well as political and economic liberalization;
what factors led to the rise of civil society
globalization, democratization, privatization, decentralization, economic liberalization and deregulation
2 different perspectives on the purpose of civil society
- promote alternative model of development
- promote capitalism
what is development ethics
moral issues of development and how development researchers and practitioners should could conduct themselves
cosmopolitanism
perspective in development ethics; all human beings belong to a single world community and we have a moral obligation to them.
3 types of cosmopolitan justifications
- consequentialist assess the ethicalness of an action by the quality of the result .
- contractarian- moral norms derive their legitimacy from contract or mutual agreement
- rights-based- justifies moral claims on the basis of fundamental entitlements to act or be treated in a specific way.
communitarianism
perspective in development ethics; the community has moral value and should be preserved, focuses on the community within our borders.
libertariansim
perspective in development ethics; individuals rights to freedom and non-interference is the center of moral good and ability to acquire wealth so they are against redistribution of wealth
what is ethical conduct of development actors
emphasis on ideas such as ‘positionality’ be aware of one’s own social/power relationshis and their implications
Multilateralism
formal coordination among 3 or more states inc accordance with certain principles
The UN is…
- centerpiece of global governance
- only global international organization
- established in 1945
Structure of UN
6 majors organs: UNDP, UN women, UNEP, UNHCR, UNICEF, World Health Organization
History of development in UN
1945-50s: economic and social development initiatives with heavy US influence
1960-80s: emergence of the Global South’s influence and new ideas of development
1990s-present: increased development initaitives
what is ECOSOC (Economic and Social Council)
supreme forum for development policy- coordinates development initiatives, facilitates development efforts, make recommendations to General Assembly, connects UN with the private sector
UNDP (UN Development Programme)
1965; aid efforts, promotes development approaches and principles; creates development networks i.e Human Development Report
UN Women
2010; promotion of gender equality and women’s empowerment
UNICEF (UN Children’s Emergency Fund
child survival and development; partners with Bretton Woods institutions
World Health Organization
physical, mental, social health
front-line against disease
contends with World Bank policies
United Nations Evironment Programme (UNEP)
1972; asses environmental conditions, facilitates environmental agreements and supervises their enforcement; raises awareness;
UN High Commissioner of Refugees (UNHCR)
raises funds for refugees, assits/governs refugee camps
challenges to UN Development
- lack of effectiveness (caught up in politics)
- lack of coordination (organizations within competing against each other with conflicting mandates)
- influence from multinational cooperation (partnership with MNCs) , UN has to present development dates as market opportunities
transnationalism
interconnectedness across 2 or more borders
globalization
transplanetary progress, involving growing mutlidimensiional flows of people,places, and information
effect of globalization; Kenichi Ohmae
globalization is taking away state’s sovereignty
what is the impact of globalization on development thinking
in post-colonial theory; globalization is a mechanism of control ofr the Global South Samir Amin
the washington consensus
- the agenda of the world Bank/its neoliberal policies was made in 1989
World Trade Organization
- GATT in 1994, largest economic international organization in the world; sets rules for the international trading system
alternative trade theory vs. theory of comparative advantage
Growth of exports doesn’t always lead to poverty reduction because the poor are left out from such types of development (disadvantageous terms)
Profits and Challenges of globalization
challenges: dependency on products; lack of power against liberalized trade; fdi policies
increasing inequalities
anti-corporate Globalization movement
democratizing global governance and making MNCs accountable
is globalization sustainable
no because it promotes hyper-growth and unrestricted exploitation of the earth
3 aspects important to development discourse in environment
- increasing human impact
- science/technology advances allow better
- understandings of human impact
- understanding the relationship between environmental degradation and economic and human development
what is sustainable development
to meet human genuine needs in the present without compromising the ability of future generations to meet theirs, and without diminishing the natural diversity of life on earth.
Paradox of sustainable development
economic growth leads to environmental degradation
Environmental Kuznets Curve
the economy will grow to a certain point and with it growing environmental degradation, then reaches a pick, then invests back into the economy reducing environmental degradation
2 main environmental problems
- Tragedy of commons-> Garret Hardin, environmental degredation that comes from people using public goods for personal gain
- Collective action problems-> when something will benefit many but the cost of undertaking it is too high that not many individuals would take it
History of sustainable development
1960s- environmentalism starts with campaign against nuclear weapons and its over consumption
1972- first un-convened environmental conference, UNEP (UN Environmental Program) is created
1980s- advances in climate science and global responses to climate change i.e Vienna Convention, Montreal Protocol
1983: World Commission on Environment and Development (WCED)
1987: Brundtland Report released which brought about the term sustainable development
1992: Earth Summit; largest ever global environmental conference
2000: Millennium Development Goals (MDGs)
2012: World Summit on Sustainable Development agenda and the SDGs framework is set, clearest relationship between development and environment
Rachel Carson
Silent Spring; 1962 uncontrolled pesticides entering the human food chain
Meadows
the limits of growth; 1972 population growth/degradation expected to bring resource scarcity, ecosystem collapse, pollution, reduced life expectancy
Climate Change is…
- caused by both natural and human activities i.e climate change is that is natural is exacerbated by human activities of over consumption
- disproportionately affects the global South
Climate Change in Bangladesh
more exposed to radiation which reduces agricultural yields, severe weather (cyclone), seal level rise. This creates high levels of poverty and low state capacity
what is the kyto protocol, who does it apply to?
mandatory emissions reduction targets, implementation measures, compliance mechanisms, but GS counties not bound to Kyoto
what replaced the Kyto protocol and how is it different
Paris Agreement, further GHG emissions reduction requirements binding to everyone as well as GS countries
2 main responses to climate change
mitigation- reduction of GHG
adaptation- coping with climate change that cannot be mitigated
what development perspective dominates sustainable development and problems with it
- market-based approaches are the best for dealing with environmental issues WBCSD “World Business Council for Sustainable Development”
- hypocrisy of neoliberal organizations who want to take on sustainable development when they themselves are the ones cause environmental degradation.
uneven playing field of sustainable development
Global North benefits most from these activities that make pollute the environment and GS countries bare the burden on top of the burden of having to catch up economically
3 models of the state
state model- high state control, minimal market control
neoliberalism- minimal state, maximal market role
middle ground- state guided market economy (promoted by Paul Prebisch)
4 characteristics of states
territory, population, gov’t, sovereignty
4 perspectives of social contract theory
- Thomas Hobbes-> (forced) humans must enter into contract to avoid killing each other, the trade their freedom for their security
- John Lock-> (voluntary) people willing come into agreement with the state in exchange for security
- Jean Jacques Rousseau (collective will) gain civil rights in return for obligations and responsibilities to the state
- Marxist theory- states represent the interests of the ruling class
who did the colonial legacy continue in GS countries
- colonial elites formed the post-colonial elites who had a vested interest in maintaining the system, by corruption, and frequent intrusion by the military
- colonial economic system continued- existing industries stifled, reliance on export of cheap primary products and import of manufactured goods/technology
SMEs vs Micro-enterprises
SMEs- locally owned, range from informal to formal, profits remain in the local area
Micro-enterprises- informal, not legally registered, do not pay taxes, not eligible for bank financing, do not follow labor, health, safety regulations
Problem with informal sector in the GS
most entrepreneurial activity in the Global South takes place in this informal sector, so they cannot have legal protection of their business i.e insurance or loans and do not pay tax which hinders the economy
Micro-finance
granting of small loans to would-be entrepreneurs, an idea popularized by Muhammed Yunus who established the Grameen Bank in Bangladesh
Problems with micro-finance
very mixed results and low success rates, can create indebtedness, can exploit the vulnerability of women in the GS
FDI and development in the Global south
FDI constitutes the single most important source of new money for the GS; 51% of FDI goes to GS
GS countries FDI is concentrated in
China, Hong Kong, Singapore, Brazil, India, and Mexico
mergers & acquisition
36% of FDI is M&A
critiques of EKC
- promotes environmental degradation
- Most western corps. just move companies to GS, not reducing environmental degradation just transferring it
Global value chains
the way multinational corporations organize their production overseas in the format of a “chain.” Higher valued activities are the head quarters of multinational corporations are in the global south, and the less valued, labour intensive. Even though mode of production is spread throughout the international system, the most important aspects are tightly knit within the corporate structure.
Proponents of Global value chains
- FDI, employment, education and training, economic growth, securing supplies for natural resources, integration into the deliver and supply chain, access to foreign financing
Opponents of Global Value Chains
- government limited to regulate MNCs because of international investment agreements that allows MNCs the governments of their host countries for unfair treatment or impediment to production.
- poor working conditions, exploitation of women-> long hours, low wages and poor conditions, gender-stereotyping and making low levels of production for women, and the higher skilled for men
- does not diffuse information
UNCTAD on Global Value Chains
- contribute 30% of GS’s GDP, but at the cost of environmental damage, and poor working conditions.
why do MNCs go abroad
- international business perspective: strategic business wise, access to cheap labour, access to new markets and new resources
- Mercantilist perspectives: to influence state foreign policy- such as promoting democratic culture and policy, securing a supply chain (when it comes to government regulation of MNCs)
- critical/dependency theory- promoting and being led by capitalism which means the exploitation of all resources in the spirit of capitalism
government regulation on MNCs
1960s- developing world ask for “fairer” world trade agreements from UNCAD/regulation of MNCs; Draft Code of Conduct on transnational Corporation. It was abandoned when the US and MNCs put pressure on UNCAD to protect rights of foreign investors.
Counters to the Draft of Code of Conduct by MNCs
- Promote corporate social responsibility
- bilateral agreements with investors and developing countries
- raising investment issues in the GATT negotiations
corporate social responsibilities
responsibility beyond their shareholders to their stakeholders; stakeholders being anyone affected by their business practices, promoting ethical business practices,
Guideline for Multinational Enterprises (1976) and the UN Global Compact (2000)
- guidelines of MNCs in terms of social responsibility, biggest advances in CSR
Proponents and Opponents of CSR
- P: labour, environmental and social progress. more conducive for profits and economic growth
- C: it is in effective because it mainly voluntary and their is no formal regulation of auditing or monitoring MNCs for this, there is little evidence of the desired effects of CSR on poorer countries
Chile neoliberal experiment
- overthrow of government by Augusto Pinochet with help of US-supported coup d’état and implemented neo-liberal systems that increased economic growth through deregulation of the market,
Challenges to neo-liberal globalization
- opposition stated that it put a lot of pressure on the poor, increased inequality and exploitation.
- rise of east Asian countries under the developmental state system
switch from neoliberalism to developmental state
- SAPs didn’t work so World Bank emphasize the role of the government to smooth out market, enforce contracts, protect property rights. eliminating corruption. Putting the blame on bad governance instead of neoliberal policies/weakness of the market
political corruption
using political authority to exploit your power for personal gain; new anti-corruption goals are put in place, in business social and political situations
globalization vs. the state
neoliberal-globalization has weakened the state, because the state has less control of MNCs and FDI, many financial transactions are made in international banks so it is hard to disrupt tax evasion and etc, and have a dependency on the global production chain.
shift from neoliberalism and Asian tigers
led to a shift from neoliberalism
neo-neoliberalism
- private actors are working as development agents
- corporation between civil society, government and private sector towards development
- civil society and government saw that their budgets were limited and the private sector can fulfill the gap and mobilize the necessary resources.
- private sector is seen as efficient and providing certain development services
- private sector see the profitability of development initiatives for their corporate image and success.
public-private partnership
privatization of public services, by the paying private sectors to provide certain services.
