Topic 7 - EQ1 - Superpowers Flashcards

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1
Q

Define a superpower

A

A superpower is nation with the ability to project its influence anywhere in the world and be a dominant global force.

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2
Q

Who were the original superpowers? (the countries the term was made for)

A

USA, USSR and British Empire in the 1940s.

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3
Q

What are 7 loose criteria used to define a superpower?

A

-Military strength
-Economic strength
-Political influence
-Access to resources
-Demographic size/age
-Physical size
-Cultural impact

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4
Q

What is the base needed for superpower status?

A

Economic power. A large and powerful economy gives nations the wealth to increase their wealth through international trade and FDI, maintain a powerful military, exploit natural resources and develop human resources. Wealth is self-perpetuating.

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5
Q

What are the pillars built on economic power to reach superpower status?

A

-Military power (threat of military useful for bargaining, especially nuclear threat + military force can be used to achieve goals)
-Political influence (the ability to influence others through diplomacy and IGOs)
-Cultural power (can be exercised through the media and cultural attractiveness, language can either boost or limit potential cultural power)
-Resources (physical or human both help)

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6
Q

What are the two types of power which countries use to maintain power? (sometimes a third too)

A

Hard power and soft power (economic power too)

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7
Q

What is an example of hard power?

A

Military action or the threat of it (the creation of military alliances can also be quite hard power). E.g. NATO military intervention in Libya in 2011.

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8
Q

What is an example of soft power?

A

Cultural or ideological attractiveness (often pushed through propaganda or media) and perceived morality of foreign policy. E.g. USA was more culturally attractive to many that the USSR in the Cold War.

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9
Q

What is an example of economic power (as a form of maintaining power)?

A

The use of economic sanctions to damage another country’s economy to get them to stop doing something or do something else, development aid and favourable trade agreements. E.g. economic sanctions on Apartheid South Africa in 1962 from the EEC and the UK amongst others.

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10
Q

What is geostrategic policy?

A

Policies that attempt to meet the global and regional aims of a country by combining diplomacy with the movement and positioning of military assets.

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11
Q

What is MacKinder’s Heartland theory?

A

MacKinder thought that whoever controlled Eastern Europe - the Heartland and most geo-strategic location on Earth - would control the world. The idea was that whoever gained control of Eastern Europe, controlled the Heartland - also known as the Pivot Area and the centre of global power - and whoever controlled the Heartland, could easily gain control of the World Island (Africa and Eurasia). The further from the heartland the less power and influence a country would have.

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12
Q

What is the entirety of MacKinder’s theory based on in terms of the relationship between land and power?

A

Control over land = political power

Arguably makes the theory less applicable in the 21st Century.

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13
Q

How has the pivot point/centre of global power in MacKinder’s theory evolved over time?

A

MacKinder always knew the heartland and pivot point could shift, he believed it would shift with the centre of industrialisation and sea power (he believed the pivot point and true centre of global power was moving west with British industrialisation). MacKinder believed that Britain had the capabilities to dominate the heartland.

In the 11thC until the 19thC the centre of global power was in Central Asia due to the Silk Road. Post-industrialisation it shifted greatly towards Western Europe being in Iceland and Norway for much of the 20thC. However, the pivot point is moving quickly back towards Central Asia and towards the emerging economies of China and India.

THE PIVOT POINT IS NOT FIXED.

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14
Q

Where did Britain rule at the peak of the British Empire in the 1920s?

A

20% of the global population and 25% of global land mass.

It controlled land on every inhabited continent and stretched from Canada in the global NW to New Zealand in the SE.

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15
Q

What benefits did the Empire have for Britain?

A

-Global dominance and prestige (dominance over European rivals)

-Control over natural resources to supply British industry

-Access to markets for British export industry (often sold manufactured products back to where it had got the resources from for a greatly inflated price)

-The conversion of people to christianity (seen as a civilising mission)

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16
Q

What were the two phases of the British Empire?

A

Mercantilist phase (1600-1850) - small colonies conquered on the coast or islands (e.g. Jamaica, Bombay, New England) defended by coastal forts and navy to protect maritime trade of resources and slaves. Economic interests of private companies, such as the Royal African Company, EIC and Hudson’s Bay Company pioneered British expansion.

Imperial phase (1850-1945) - vast land conquered and coastal colonies extended inland. British social influences are increasingly introduced to colonies (language, sport, religion…). Govt institutions with British administrators set up to rule colonies (direct rule of govt). Complex trade develops. Farms and plantations often set up by settlers.

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17
Q

How colonial rule worked in India?

A

-Military personnel, civil servants and entrepreneurs emigrated to India to run the raj and British elite ran top jobs, Indians educated in British school dominated lower administrative positions

-Process of acculturation (British traditions such as cricket, afternoon tea and the English language… were introduced)

-Strict social order maintained that differentiated ruling white British from Indians (divide and rule)

-India modernised (over 61000 km of railways to enable efficient transport of goods)

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18
Q

What was the role of the navy in the Empire?

A

The Royal Navy and its dominations of the oceans (2x as big as second biggest navy in 1914) enabled the protection of colonies and the trade routes between them, therefore, maintaining the empire.

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19
Q

Why did the British colonial era (era of the first modern superpower) come to an end?

A

-Post WW2 bankruptcies meant there was little money to run, or even defend position of Britain, in colonies (Britain and most of Europe became reliant on American loans and the Americans as anti-imperialists were adamantly against funding the Empire)
-Post WW2 reconstruction at home meant the colonies were viewed as less important than domestic issues (Beveridge report + development of the EEC)
-Anti-colonial sentiment in the colonies grew increasingly strong across the Empire and demands for independence could no longer be ignored

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20
Q

What is a multi-polar world?

A

A multi-polar world is a world with multiple centres of global power in different global superpowers.

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21
Q

When did a multi-polar world emerge?

A

In the 1930s a multi-polar world emerged…

-Germany became more powerful in the ‘30s as Hitler rearmed the country and ‘set it free’ from the Treaty of Versailles, preparing it for war in Europe
-The USA became economically and militarily stronger, challenging Britain’s traditional global leadership
-The USSR became a beacon of a newly powerful ideology (communism)
-The rise of Imperial Japan as an increasing power in Asia threatened British interests in Asia
-The existence of the largest of Empire on the Earth was maintained throughout

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22
Q

Why did the multi-polar world fall post-ww2?

A

Britain was weakened by poor economic performance and the economic damage inflicted by WW2 and even before WW2 Britain’s traditional geographical spheres of influence were being challenged. Military power was increasingly more important with an arms race in the 30s and strengthened navies, but Britain could not really keep up. Britain began decolonising post war (Indian independence 1947).

Nazi Germany and Imperial Japan were obliterated by the war.

USSR and USA emerged as the two major powers in a new bi-polar world.

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23
Q

What is a bi-polar world?

A

A bi-polar world is a world with two opposing centres of power in different global superpowers.

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24
Q

When did the world become a bi-polar world?

A

The world was bi-polar from 1945-1990 during the Cold War with the USA and USSR being the two poles.

The colonial era of Britain, and to a lesser extent France, came to an end after WW2 and by the 1970s the colonial powers had lost their colonies because of: bankruptcy, focus on reconstruction at home and anti-colonial movements. No longer a challenge to supremacy of USA and USSR.

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25
Q

How did the two global powers emerge?

A

USA: Industrialised rapidly (post 1860s), rail links, fossil fuels and metals fuelled this growth – overtook UK by the 1880s.

USSR: The Russian Revolution (1917) created large federal state – the USSR, followed by rapid industrialisation. Overtook UK as 2nd largest economy by 1941.

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26
Q

What happened during the bi-polar era?

A

The Cold War from 1945-1991. A 45 year standoff without direct conflict between the USA and USSR.

These two global superpowers in the Cold War’s bipolar world had completely different ideologies. The USA was staunchly capitalist and the USSR was staunchly communist.

During the bi-polar era the USA became an increasingly global superpower with military bases aimed at containing the USSR and preventing the spread of communism. The USSR built a core of countries it either allied with (Eastern Europe) or invaded (Afghanistan).

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27
Q

What was the role of proxy wars during Cold War? What were some ‘hot moments’ during the Cold War?

A

Proxy wars were the only battleground in the Cold War.

A proxy war is when the USA or USSR fought each other in a conflict, backing opposing sides, but did not fight one another directly.

Hot moments in the Cold War:

  • 1950-53 Korean War – led to division into South Korea (backed by USA) and North (backed by China and Russia). The first of many proxy wars.
  • 1962 Cuban missile crisis – closest the two sides got to real conflict.
  • 1960s and 70s Vietnam War – USA beaten by Soviet backed Vietcong Communist forces – huge setback and stopped USA using troops abroad for next 20 years
  • Rebellions by workers in Eastern Europe against soviet rule – 1956 Hungary, 1968 Czechoslovakia.
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28
Q

What are some examples of hard power used in the Cold War?

A

-Military action via proxy wars (or the threat of direct military action with nukes…)
-Economic sanctions to damage another country’s economy

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29
Q

What are some examples of soft(ish) power used in the Cold War?

A

-Creation military and economic alliances to marginalise certain nations
-Development aid
-Trade agreements to forge economic ties
-Cultural and ideological attractiveness
-The moral authority of a nation’s foreign policy

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30
Q

How did the USA and USSR match up militarily?

A

Both had extensive intelligence networks (CIA vs KGB) and nuclear arsenals (USA had them in bases across the globe). USA had the world’s largest navy and most powerful Air Force, despite the USSR’s very large Army it had an outdated navy and Air Force.

In terms of allies, USA had Western Europe (NATO), South Korea and Japan, and USSR had Eastern Europe (Warsaw Pact) as well as Cuba and Vietnam.

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31
Q

How did the USA and USSR match up in regards to their cultures?

A

USA dominated modern popular culture media mediums (film, radio, TV, pop music) to portray a positive view of consumerism, democracy and western morality. The USSR had strict censorship and focused on high culture with ballet, classical music, art and theatre all pushed in the USSR

32
Q

How did the USA and USSR match up in terms of population and physical resources?

A

Practically identical populations.

Both largely self-sufficient in terms of resources, but USA was an oil importer. USSR much larger in terms of land mass.

33
Q

How did USA and USSR match up politically?

A

Free Market Capitalism vs Communist and centrally planned economy

USA was a democracy with elections every 4 years. USSR was a one party state with no free elections.

34
Q

What are some examples of mechanisms of power used by the USSR?

A

Military - The USSR created a buffer of friendly countries in Eastern and Central Europe, to shield it from the West. This border became known as the Iron Curtain. If Eastern European Countries deviated from Moscow policies, they were dealt with harshly, e.g. military invasion in Hungary in 1956.

Political - Eastern European countries were not directly ruled by Moscow, but the USSR influenced military and economic planning. Elections were held but all candidates were exclusively communist party members approved by Moscow.

Economic - Council for Mutual Economic Assistance with Warsaw Pact countries

35
Q

What are some examples of mechanisms of power used by the USA?

A

Cultural - In the USA accusations for anyone with suspected communist leanings, were reported on daily television. Hollywood was key in creating cultural attractiveness and produced films designed to generate suspicion of communists and portraying the USA as moral and freedom fighters.

Economic - US invested in Japan, Singapore and the Philippines to enable economic growth. This investment supported the growth of the Asian Tiger economies. NATO and the USA adopted a strategy to build economic influence. It strengthened Western European Countries by providing aid as part of the Marshall plan (post WW2)

36
Q

What are some examples of mechanisms of power used by the USA?

A

Cultural - In the USA accusations for anyone with suspected communist leanings, were reported on daily television. Hollywood was key in creating cultural attractiveness and produced films designed to generate suspicion of communists and portraying the USA as moral and freedom fighters.

Economic - US invested in Japan, Singapore and the Philippines to enable economic growth. This investment supported the growth of the Asian Tiger economies. In Europe NATO and the USA adopted a strategy to build economic influence. It strengthened Western European Countries by providing aid as part of the Marshall plan (post WW2).

Military - military support to governments and rebels fighting communism

37
Q

What are some mechanisms of power employed by both the US and the USSR?

A

Nuclear weapons were a huge bargaining tool and ensured mutually assured destruction between the two sides.

Both created strategic economic and military alliances (NATO vs Warsaw Pact).

Both used propaganda as a hugely important soft power tool (often against each other) - much more important than military aspects of the war.

38
Q

Why did the Soviet Union lose the Cold War?

A
  • Size of the economy. The USSR’s economy was about half the size of the USA – and this is probably an over-estimate. Plus the Western European economies of UK, France, Germany etc dwarfed that of Eastern Europe.
  • Arms race. Competition between the two led to an arms race – post Cuban missile 1962 the USSR resolved to outpace the U.S. in nuclear USA spent 9% of its economy on ‘defence’.
  • Proxy wars and supporting allies. This cost – possibly worthwhile in Cuba – military advisers and aid sapped USSR’s budget.
  • Star Wars - Early 1980s the USA under Reagan proposed Strategic Defense Initiative (popularly called Star Wars) costings hundreds of billions of dollars. It was the weaponization of outer space - a shield to intercept a Soviet ‘first strike’. Would have meant the end of ‘deterrence’. But the Soviet’s flagging economy couldn’t match this escalation in defence spending.
  • Invasion of Afghanistan - In 1979, the Soviets invaded and occupied the country. The Truman Doctrine had clearly stipulated that American policy was to contain the spread of communism throughout the world, so the U.S. responded by secretly supporting and training the Mujahedeen, insurgent rebels who fought against Soviets in Afghanistan.
39
Q

What was neocolonialism in the Cold War?

A

The USA and USSR aimed to influence and control developing countries after they gained independence from their former colonial masters. Neocolonialism was a new form of indirect control over these newly independent countries.

Both the US and the USSR used Neo-colonialism for control often creating violent and anti-Democratic regimes in developing countries like Zaire/DRC (USA) or Ethiopia (USSR). The US was arguably more successful with big IGOs supporting American attempts to control the developing world, e.g. IMF and WTO.

40
Q

What were/are some of the possible mechanisms of neocolonialism?

A

Strategic alliances - military alliances that make developing nation dependent on military and equipment from the superpower
Development aid - aid comes with ‘strings attached’ forcing the recipient to agree to policies and spending priorities suggested by the aid donor
TNC investment - investment may create jobs and wealth, but investment from abroad creates dependence on the country providing investment to the receiving country
Terms of trade - low commodity (raw materials or other primary products) export prices contrast with high prices for imported goods from developed countries
Debt - developing countries borrow money from developed ones and then end up on a debtor-creditor relationship where the in debt country is susceptible to the demands of the superpower it is indebted to

41
Q

What were/are some of the possible mechanisms of neocolonialism?

A

Strategic alliances - military alliances that make developing nation dependent on military and equipment from the superpower
Development aid - aid comes with ‘strings attached’ forcing the recipient to agree to policies and spending priorities suggested by the aid donor
TNC investment - investment may create jobs and wealth, but investment from abroad creates dependence on the country providing investment to the receiving country
Terms of trade - low commodity (raw materials or other primary products) export prices contrast with high prices for imported goods from developed countries
Debt - developing countries borrow money from developed ones and then end up on a debtor-creditor relationship where the in debt country is susceptible to the demands of the superpower it is indebted to

42
Q

When was the real emergence of a uni-polar world?

A

From the collapse of the USSR in 1991, but really since 1989 when communist Eastern Europe began to collapse, the world was a unipolar world dominated by the democratic, capitalist and liberal USA (continued up until approximately 2009). The USA had won the Cold War and established itself as one hyper-power.

Political scientists identified the fact that this the world was now a uni-polar world at the time of the USSR’s collapse. Francis Fukuyama wrote his famous book, “The End of History” in 1992 in which he argued the battle between ideologies, systems of governance and ways of life, the battle which has characterised and been the main focus of human history was over and so history itself was over, because liberal democracy moulded on a US and Western European model had ascended across the globe.

43
Q

What has happened since 2009 in regards to the poles of power on Earth?

A

Post-2009 it has been suggested that we are moving towards a multi-polar system with power distributed between the USA, EU and the BRICS with emerging superpowers with countries such as India and China growing more and more powerful with rapid economic growth and population growth. This will be particularly interesting as the power of the USA and EU wanes.

44
Q

What proportion of the global GDP was accounted for by the US and EU in 2014? What about China?

A

USA+EU = 46% of the global GDP

China = 13.3%

45
Q

What are the MINT countries?

A

4 demographically large countries that are forecasted to get much bigger and economically stronger.

These countries are: Mexico, Indonesia, Nigeria and Turkey

46
Q

What challenges are being faced by the EU and Japan which means that emerging countries may surpass them economically?

A

Japan and the EU face the challenge of an ageing population and slowing economies, at the same time that BRIC and MINT nations are growing exponentially.

47
Q

What are the BRIC (sometimes BRICS) countries?

A

B - Brazil (8th biggest economy)
R - Russia (11th biggest economy)
I - India (5th biggest economy)
C - China (2nd biggest economy)

(sometimes S - South Africa)

They are a group of emerging powers on the global stage identified in 2001. They all have strong regional power and are economically powerful and set to become only more powerful in the future. They formed a formal association in 2009.

48
Q

Which two groups of countries are superpowers likely to emerge from?

A

Either the BRIC or MINT countries.

49
Q

What is the G20?

A

A group of 20 major economies - 19 countries and the EU (although France, Italy and Germany have independent seats on the G20 too). It was formed in 1999 and meets annually.

50
Q

Are there any emerging economies in the G20?

A

Yes. Mexico, Indonesia, South Korea (to a lesser extent), Saudi Arabia, Turkey, India and China…

51
Q

What % of the global GDP and global trade is accounted for by G20 countries?

A

GDP - 85%
Global trade - 65%

52
Q

What is forecasted to happen in terms of the USA - China relationship by 2030?

A

China and the USA will be much more equal in terms of global economic and political power.

53
Q

How much of the global GDP and global population is in BRIC countries?

A

GDP - 19.8%
Population - over 40%

54
Q

How much of global territory of emerging countries?

A

25% of world’s territory

55
Q

What resources do Russia and Brazil have?

A

Russia - large quantities of oil and gas
Brazil - abundance of metals (gold, iron ore…) as well as other primary resources (wood, medicines, biofuel potential…)

56
Q

What effect do emerging economies have on the environment?

A

Emerging economies have huge manufacturing economies with huge emissions - China is the world’s largest emitter of CO2 emission ahead of the USA

57
Q

What are the strengths of Brazil?

A

-Global reputation as football nation (soft power)
-Half of SA’s economy (regional economic leader)
-Regional political leader
-Self-sufficient in food and energy (3rd in iron ore and HEP, 2nd in biofuels and 15th in oil production)
-Spends over 60% of SA’s military budget
-Population is big and young (210 mil)
-Biodiversity (13% of all known species) in Amazon
-Supports global initiatives on the environment (UN conference on Climate Change)

58
Q

What are the weaknesses of Brazil?

A

-Relies on primary products for export (not manufacturing) which limits economic potential
-Less militarily strong as other BRIC nations
-Economy suffers ‘boom and burst’ phases
-Recently politically unstable (events following Bolsonaro’s election loss and general corruption)

59
Q

What are the opportunities of Brazil?

A

-Huge natural resources have potential to fuel economic growth and develop trade links
-Huge potential in renewable or recyclable energy in field of HEP or biofuels
-Growing middle class with maturing service and consumer economy

60
Q

What are the threats to Brazil?

A

-Falling fertility rate (6 to 1.8 in past 60 years) creating demographic challenges
-Major environmental issues as a result of its development and resource exploitation (deforestation, mining, illegal poaching, oil spills…)
-Hard to exert global power one of few Portuguese speaking nations
-Education levels lag behind competition

61
Q

Overall, how is Brazil set for the future?

A

Brazil = self-sufficient, strong trade links with the emerging superpower and potential for sustainable development. However, limited in soft power, military capabilities, environmental exploitation and its current primary economic focus.

62
Q

What was Rostow’s modernisation (take-off model) theory?

A

He presented model for economic development in which he proposed that all developing countries must pass through five successive stages of growth. The model subscribes to the modernisation theory, especially economic modernisation.

63
Q

What are the stages of Rostow’s modernisation theory (take-off model)?

A

1 - Traditional society = characterised by a subsistence economy, market haggling > formal shops, high levels of labour intensive agriculture.

2 - Pre-conditions = development of mining industries, increase in capital use in agriculture, necessity of external funding and investment with growing savings.

3 - Take off = increasing industrialisation, further growth in savings and investment, some regional growth and agricultural employment declines in favour of secondary industry

4 - Drive to Maturity = growth becomes self-sustaining and wealth generation enables further investment in industry and development, industry more diversified, increasing in levels of technology utilised

5 - High Mass Consumption = High economic output, mass consumption of consumer durables, high proportion of employment in service sector

64
Q

What are some criticisms of Rostow’s modernisation theory?

A

-Only describes the economic change associated with development (not cultural or political)
-Assumes western capitalism and consumerism to be the ideal
-Only focuses on internal obstacles to development (not the external obstacles, in fact globalisation has meant that rates of growth do not solely lie in the hands of the developing country whether it be sanctions, protectionism or international competition)
-Stages have become more blurred with FDI, economic globalisation and neocolonialism
-Many countries (e.g. in sub-saharan Africa) have been stuck in stages 1 and 2, even after receiving loans from developed countries (but they often have interest rates which cause a drag on economic growth and they promote economic policies which favour the developed country but not always the developing country
-Model does not account for countries which have experienced reversed development advances (e.g. in Zimbabwe as a result of corrupt and failing governments such as that of Robert Mugabe)

65
Q

What does Frank’s Dependency Model aim to show?

A

The relationship in the world between ‘periphery’ developing countries and ‘core’ developed countries. He noted that ‘satellite’ (periphery) countries provided a range of services to metropolitan (core) countries with core countries often using periphery countries in an exploitative manner.

Developed countries control the development of developing countries by setting prices for commodities, interfering in economics and using military aid. E.g. USA’s influence over WTO and IMF helps USA over developing countries. As such, Frank’s model identifies how core countries have caused poverty in periphery countries (Neo-colonialism may still be doing this).

66
Q

What alternative did Frank promote to the current system of core countries exploiting peripheral countries?

A

He promoted socialism as a better way for development than capitalism. Socialism would reduce the clear inequalities between core countries and peripheral countries and the exploitative relationship. Capitalism fixes the core-periphery relationship.

67
Q

What are some ways in which peripheral countries support core countries and core countries exploit peripheral countries?

A

Periphery to core = Brain drain, raw materials, political support, debt repayments…

Core to periphery = Manufactured goods (often using materials from periphery at a higher price), Aid, Pollution from industry, political and economic ideas (USA pushes free-market economics)…

68
Q

What are some criticisms of the dependency theory and Frank’s Dependency Model?

A

-Positives of colonialism and this core-periphery relationship? Has provided peripheral regions with basic infrastructure (Indian railways…), Ethiopia and Afghanistan were never formally colonised and have serious problems with their underdeveloped infrastructure and are generally underdeveloped
-Some previously colonised countries are core and very developed - e.g. Singapore
-Countries which subscribed to socialism saw no difference in development, in fact socialism led to some countries becoming poorer or having no growth at all (USSR’s population very poor, North Korea, Laos, Vietnam…)
-Some economic interaction between the core and peripheral countries is beneficial (e.g. aid without ties…)

69
Q

What are some criticisms of both the modernisation and dependency theories?

A

-Both make the mistake of treating LDCs and developed capitalist societies as homogenous groups (e.g. Japanese or Swedish capitalism is very different to American capitalism)

70
Q

Which development theory was developed in response to the dependency theory? Why?

A

Wallerstein’s World Systems Theory of 1974.

Wallerstein developed his world systems theory in the 1970s as he believed that ex-colonies are NOT doomed to be forever trapped in a state of dependency; it is possible for them to climb the economic ladder of development, as many of them have done.

71
Q

What does Wallerstein believe about the need for poorer regions in the world (even if poor countries are able to climb the economic ladder)?

A

He believes that the system of global capitalism still requires some countries, or at least regions within countries to be poor so they can be exploited by the wealthy at the top.

72
Q

What are the three categories that Wallerstein puts countries into? (Frank proposed two of them)

A

Core - developed countries which control world wages and monopolise the production of manufactured goods

Semi-peripheral - countries which resemble the core in terms of their urban centres but also have areas of rural poverty resembling peripheral countries. The core contracts work out to these countries. E.g. Brazil, South Africa, India… (Wallerstein’s category). Tension will occur with the core as the semi-periphery emerges further.

Peripheral - provide raw materials, such as cash crops or metals, to core and semi-periphery. These are also the new markets which core countries attempt to market their manufactured goods to.

73
Q

What are the 4 key principles of the World Systems Theory?

A
  1. The world should be looked as at a whole (not individual countries)
  2. The world can be split into three groups: Core, Semi- periphery and Periphery.
  3. Countries can be upwardly or downwardly mobile in the system (differs from dependency theory in this way)
  4. The world is dynamic and core regions constantly find new ways of extracting profit from poor countries. E.g. through Unfair Trade Rules or Western TNCs
74
Q

What is the Kondratiev wave?

A

A theory by Soviet economist Kondratiev that the world economy moves in global depressions following major changes in production (railway development in late 1800s, Electrical engineering in early 1900s, vehicular development and computers in the mid-late 1900s) which cause an economic boom every 50/60 years.

75
Q

What is wrong with the Kondratiev wave?

A

It is misleading and unrealistic of what happens in a recession, there is a general pattern of economic growth between recessions in reality - yet the line drops back down to the same point every recession.

76
Q

What is the Keynesian approach to a recession? What if a government cannot afford to take a Keynesian approach or opts not to?

A

Recession leads to Public sector (government) investment, Private sector benefits, Highly entrepreneurial businesses take advantage, Drives direction of next wave of economy.

If no investment post-recession…

New investment from other governments (Gulf states or China) may be resorted to in desperate times of recession, does this lead to growing foreign influence from global superpowers?