Underdevelopment

Question 1

what are the Southern Hemisphere Development Strategies

Answer 1

(a) . attempts to delink themselves from some aspects of the international economic system; Moderately successful if domestic commitment to develop: a strong bureaucracy to halt corruption, labor control and education.
(b) . attempts to change the economic order itself;
(c) . policies designed to maximize the benefits from integration into the prevailing system. Highly successful, but only if the state has a well-developed bureaucracy, and has labor discipline.

Question 2

what is Hirschmann’s study of Germany’s trade

Answer 2

Foreign trade: power.
SUPPLY EFFECT: provide militarily usable resources.
INFLUENCE EFFECT: use of trade to influence other states by restricting access to its markets: control own imports + exports. Forces trading partners to find alternate markets. Influence by extent of export dependence. WEIMER GERMANY
_Greater the benefits, the greater the dependency: adjustment costs, esp. if undiversified.
_Bilateral trade; increase prices; costly production methods; low-demand exports.

Question 3

what does Raul Prebisch say about the poverty of developing states

Answer 3

Intuitive notion: developing states are poor not because they are simply underdeveloped, but because there is a system of global capitalism that makes it very difficult for them to develop.

Question 4

what is the principal manifestation of Intuitive notion and why

Answer 4

trade: rich countries compel weaker states to accept disadvantageous terms of trade that makes them poor.

Question 5

what is the Big methodological problem of trade

Answer 5

how do measure disadvantageous terms of trade? It implies that any product, such as 100 tons of copper, has some determinable absolute value and cost.

Question 6

what is The World Capitalist System (Immanuel Wallerstein

Answer 6

Marxian conception of economic development of the international system.

Question 7

what proposes The World Capitalist System (Immanuel Wallerstein

Answer 7

that systemic maldistributions of resources occurs as a result of inter-state relations, particularly between the First and Third worlds.

Question 8

what is the core areas of The World Capitalist System (Immanuel Wallerstein

Answer 8

strong bureaucracies: for capitalist landowners and merchant allies. Monarchs reinforced this to maximize their tax revenues. Constitutional compromises were often made that led to liberalism and democracy.

Question 9

what is the peripheral areas of The World Capitalist System (Immanuel Wallerstein

Answer 9

Capitalist landowners want open access (local commercial bourgeoisie do not): maximize profit from world market: depended on local coalitions. ( labor states, poor )
_Core states also made use of military forces and subversion to further weaken peripheral states.

Question 10

what does the semi-periphery

Answer 10

The semi-periphery keeps the world capitalist system from polarizing and becoming politically unstable. ( china )

Question 11

what are the 4 stage of transformation in the world capitalism

Answer 11

_(1): Stage one, of agricultural capitalism, began as a consequence of accidental technological and ecological conditions in Europe that led to the collapse of feudalism in the 14-15th Centuries, in which Western Europe was the core, Eastern Europe and the New World the periphery, and the Mediterranean the semi-periphery ( Portuguese, dutch, Spanish dominance )

_(2): The second stage emerged from a system wide recession of 1650-1730 and resulted in a new mode of capitalism focused on mercantilism, with its emphasis on the need for colonies.
_EG: This period was contested by the Dutch, English and French.

_(3): Stage three, industrial capitalism, saw the expansion of the European world economy and the absorption of sub-systems. Within this stage, changes in the mode of production eventually led to the obsolescence of slavery, and semi-peripheral states tended to engage in mercantilist type activity to offset the advantages of core states.
_EG: The British dominated this period.

_(4): In stage four, there is the consolidation of industrial capitalism with a further change of the mode of production and the consequent erosion of colonialism.

Question 12

what are the 3 Explanations and Solutions (by Robert Gilpin )

Answer 12

(1) . Liberal Development:
2. Marxist Underdevelopment:
3. Structuralist Underdevelopment

Question 13

what is the assumptions of Liberal Development:

Answer 13

1. Trade permits comparative advantage.
2. Higher productivity encourages foreign direct investment.
3. Foreign aid assists in funding projects.

Question 14

what are the Solutions to Obtain Redistribution ( Liberal Development )

Answer 14

Remove market distortions.

1. Anti-trust legislation to remove monopolies
2. Reduction of tariffs to encourage trade.
3. Privatizing state enterprises to remove state distortions

Question 15

what are the problems of Obtain Redistribution ( Liberal Development )

Answer 15

Problems:

(1) . In some instances there is no comparative advantage.
(2) . State-managed exports strategies are not a free market.
(3) . Trade depends on competitive worker productivity, which depends on education, health, security, anti-corruption, and infrastructure investments, which may not be available.

Question 16

what are the assumptions of Marxist Underdevelopment:

Answer 16

Assumption:
World capitalist system is structured in such a way as to preserve the state of economic affairs to the advantage of the major capitalist states.
North-South trade unfairly favors the developed states:
(1). Free flow of capital allows for the: extraction profits back to the investing states.
(2). Monopolistic multi-national corporations dominate trade structures.
(3). Economic surplus expropriated through profits back to the investing state.

Question 17

what are the problems of Marxist Underdevelopment:

Answer 17

(1) . Underdeveloped states do not matter, except in the area of oil, to developed states, as a measure of total trade;
(2) . Developed states absorb their economic surplus successfully;
(3) . Investment of surplus in the developing world is of minor significance to the developed world.
(4) . Multinational industries are often overruled by foreign policy concerns.

Question 18

what are the assumptions of Structuralist Underdevelopment

Answer 18

Assumption:

1. Trade is not an engine of growth.
2. International competition reduces export profits.
3. Increased cost of manufactured goods.
4. Export economies are actually isolated.
5. Investment avoids the underdeveloped states

Question 19

what are the Solutions to Obtain Redistribution ( Structuralist Underdevelopment )

Answer 19

(1) . Import-Substitution Industrialization (ISI): diversify away from primary industries into manufacturing by using tariffs to protect infant industries.
(2) . South-South trade and investment: reduce trade barriers between developing states to increase demand. Do this through regional integration.
(3) : Population control: Reduce population growth rates to avoid its depressing effects on per capita incomes.

Question 20

why is there a Dissatisfaction with dependency theories

Answer 20

their inability to predict the rise of the East Asian industrial states led to a more sophisticated approach termed the new dependency studies:
_Dependency cannot explain the emergence of the newly-industrialized countries (NIC – so-called in the 1970s): South Korea, Taiwan, Singapore, Malaysia, Thailand
_How did these states develop so much more quickly than Latin America, Africa, South Asia, and the Middle East?

Question 21

who proposed the Bureaucratic Authoritarian State model

Answer 21

O’Donnell

Question 22

what is the Bureaucratic Authoritarian State model

Answer 22

which seek development, usually with military backing., suppression of the population ( Taiwan, pakistan, Korea )

Question 23

who proposed the Associated Dependent Development

Answer 23

Evans and Cardoso

Question 24

what propose the Associated Dependent Development

Answer 24

to explain how industrialization was achieved through an association of international capital, the Bureaucratic-Authoritarian State, local capital. A key was the joint suppression of the workers to attract investment capital.
_The association with international capital was important because they brought the technology Brazil lacked.

Question 25

what are the three stages of Associated Dependent Development

Answer 25

(1). Suppress; (2). Nationalist development replaced by internationalized bourgeoisie; (3). Restructured to international trade.
Brazil