Week 6- Chapter 32

Question 1

Organization of the Petroleum Exporting Countries (OPEC)

Answer 1

In 1960 oil-exporting countries ran, Iraq, Kuwait, Saudi Arabia, and Venezuela formed a cartel called the Organization of the Petroleum Exporting Countries (OPEC) to coordinate production and raise
prices. They aimed to increase national revenue to support economic development. Until the early 1970s, OPEC had failed to control the oil market. But in 1973 OPEC countries agreed to an embargo, withholding oil sales to the United States and Western Europe in response to their support for Israel in the Yom Kippur War.

Question 2

African National Congress (ANC)

Answer 2

In the 1950s, black South Africans and their allies mounted peaceful protests. A turning point came in 1960 when police in the township of Sharpeville fired at demonstrators and killed sixty-nine black protesters. The main black political organization —the African National Congress (ANC) —was outlawed but continued in exile. Other ANC members, led by a young lawyer, Nelson Mandela (1918-2013), stayed in South Africa to mount armed resistance. In 1962, Mandela was captured, tried for treason, and sentenced to life imprisonment.

Question 3

neoliberalism

Answer 3

Beginning in the 1980s neoliberal policies increasingly shaped the world econ-
omy. Neoliberalism promoted free-market policies and the free circulation of capital
across national borders.

Question 4

petrodollars

Answer 4

Petrodollars are U.S. dollars earned by oil-exporting countries from the sale of oil, reflecting the global practice of trading oil in U.S. currency. This is often recycled and invested back into US.

In the decade after the first oil shock, OPEC countries such as Saudi Arabia
deposited their profits in international banks, particularly in the United States, which reinvested these deposits as loans that governments worldwide used to
finance development. This money was known as petrodollars. In this economic
cycle, consumers around the world paid higher prices for fuel, which generated prof-
It’s for oil exporters who invest their profits in large banks. In turn, these banks
loaned this capital out to foreign governments. Many industrializing countries faced high energy costs and heavy debts amassed through petrodollar loans.

Question 5

Washington Consensus

Answer 5

Debtor countries needed to continue borrowing to pay the interest on their debts, and their ability to secure loans now depended on their adherence to a set of liberal principles known as the Washington Consensus: policies that restricted public spending, lowered import barriers, privatized state enterprises, and deregulated markets. Neoliberalism ideas

Question 6

apartheid

Answer 6

In 1948, the ruling South African National Party created a racist and segregationist
system of discrimination known as apartheid, meaning “apartness” or “separation.” The population was legally divided into racial groups: whites, blacks, Asians, and racially mixed “coloureds.” Good jobs in the cities were reserved for whites living in luxurious, modern, central neighbourhoods. Blacks were restricted to precarious outlying townships plagued by poverty, crime, and mistreatment from white policemen.

Question 7

intifada

Answer 7

In 1987, young Palestinians in the occupied territories of the Gaza Strip and the
West Bank began the intifada, a prolonged campaign of civil disobedience against
Israeli soldiers. Inspired increasingly by Islamic fundamentalists, the Palestinian
uprising eventually posed a serious challenge not only to Israel but also to the secular Palestine Liberation Organization (PLO), long led from abroad by Yasir Arafat. The result was an unexpected and mutually beneficial agreement in 1993 between Israel
and the PLO. Israel agreed to recognize Arafat’s organization and start a peace pro-
cess that granted Palestinian self-rule in Gaza and called for self-rule throughout the
West Bank in five years. In return, Arafat renounced violence and abandoned the
demand that Israel withdraw from all land occupied in the 1967 war.

Question 8

“Japan, Inc.”

Answer 8

Japan’s emergence as an economic superpower fascinated outsiders. Many Asians and Africans looked to Japan for the secrets of successful modernization, but some of Japan’s Asian neighbours again feared Japanese exploitation. In the 1970s and 1980s, some Americans and Europeans bitterly accused “Japan, Inc.” of an unfair alliance between government and business and urged their own governments to retaliate.
In Japan’s system of managed capitalism, the government protected its industry
from foreign competition, decided which industries were important, and then made
loans and encouraged mergers to create powerful firms in those industries. The gov rewarded large corporations and encouraged them to develop extensive
industrial and financial activities. Workers were hired for life, and employees’ social
lives revolved around the company.

Question 9

junta

Answer 9

In 1973, Chile’s armed forces deposed Allende, who killed himself when the military stormed the presidential palace. A junta, or council of commanders of the
branches of the armed forces, took power. Its leader, General Augusto Pinochet, instituted radical economic reforms, giving neoliberal economists a free hand to conduct what they called “shock treatment” to remake Chile as a free-market economy. Schools, health care, pensions, and public
services were turned over to private companies. Regulatory protections for the industry were slashed, and land was concentrated in the hands of large agricultural corporations. The U.S. government lavished Pinochet with economic aid.

Question 10

Tiananmen Square

Answer 10

As the worldwide movement for political liberalization gained momentum, the
government of China maintained restrictions on demonstrations and slowed economic reform. Inflation soared to more than 30 per cent a year. The economic reversal, the continued lack of political freedom, and the conviction that Chinese society was becoming more corrupt led idealistic university students to spearhead demonstrations in 1989.

More than a million people streamed into Beijing’s central Tiananmen Square
to support the students’ demands. The government declared martial law and
ordered the army to clear the students. Masses of courageous citizens blocked the
soldiers’ entry into the city for two weeks, but in the early hours of June 4, 1989,
tanks rolled into Tiananmen Square. At least seven hundred students died as a wave
of repression, arrests, and executions descended on China.

As communism fell in Eastern Europe and the Soviet Union broke apart, China’s rulers felt vindicated. They believed their action had preserved Communist power, prevented chaos, and demonstrated the limits of reform. People in China were not alone in pressing for democratization— popular protest met with repression in other Communist or military regimes, such as in Burma.

Question 11

détente

Answer 11

Détente refers to the period of eased Cold War tensions between the United States and the Soviet Union from the late 1960s to the late 1970s. This era featured significant efforts to reduce the risk of nuclear conflict and improve diplomatic relations, highlighted by key events such as the Strategic Arms Limitation Talks (SALT I and II) and the Helsinki Accords. Détente also saw increased trade, cultural exchanges, and high-level diplomatic engagements, including President Nixon’s landmark visit to China in 1972. The period began to decline in the late 1970s, particularly after the Soviet invasion of Afghanistan in 1979 and ended with the election of President Ronald Reagan in 1980, who adopted a more confrontational stance towards the Soviet Union. While détente did not end the Cold War, it laid important groundwork for future arms control agreements and demonstrated the potential for superpowers to negotiate and reduce the risk of conflict.

Question 12

perestroika

Answer 12

When Mikhail Gorbachev (b. 1931) became premier in 1985, he set out to
reform the Soviet system with policies he called democratic socialism. The first set of
reforms was intended to transform and restructure the economy. Perestroika permitted freer prices, more autonomy for state enterprises, and the establishment of
some profit-seeking private cooperatives. However, these changes faced significant resistance and led to economic turmoil, contributing to the weakening of the Soviet state. Ultimately, perestroika played a crucial role in the dissolution of the Soviet Union in 1991, marking a significant shift in global political dynamics and the end of the Cold War.

Question 13

glasnost

Answer 13

Glasnost, meaning “openness” in Russian, was a policy introduced by Soviet leader Mikhail Gorbachev in the mid-1980s to increase transparency in government institutions and promote freedom of information. The policy allowed for greater freedom of expression, leading to more open discussion of political, social, and economic issues within the Soviet Union. It encouraged the media to report on government inefficiencies and corruption, previously taboo topics, and facilitated public debate and criticism. Glasnost also led to the release of political prisoners and greater freedom for cultural and intellectual life. While Glasnost intended to reform the Soviet system and strengthen socialism, it inadvertently exposed deep-seated issues and dissatisfaction, contributing to the rise of nationalist movements and the eventual dissolution of the Soviet Union in 1991. This policy marked a significant shift in Soviet society, breaking decades of strict censorship and state control.

Question 14

Solidarity

Answer 14

Gorbachev brought “new political thinking” to foreign affairs. He withdrew Soviet troops from Afghanistan in 1989 and sought to reduce Cold War tensions. Gorbachev pledged to respect the political choices of Eastern Europe’s people.

Soon after, a wave of peaceful revolutions swept across eastern Europe, overturning.
Communist regimes. Poland led the way. In August 1980, strikes grew into a working-class revolt. Led by Lech Walesa, workers organized the independent trade union Solidarity.

Communist leaders responded by imposing martial law in December 1981 and arresting Solidarity leaders. By 1988, labour unrest
and inflation had brought Poland to the brink of economic collapse, pressuring Poland’s Communist Party leaders into legalizing Solidarity and allowing free elections in 1989 for some seats in the Polish parliament.

Solidarity won every contested seat. A month later, Solidarity member Tadeusz Mazowiecki was sworn in as the first non-
communist prime minister in the eastern
Europe in a generation.

Question 15

European Union (EU)

Answer 15

Germany and France continued to lead the push for European unity, building on post-WWII integration efforts through NATO and the Common Market. Under French President Francois Mitterrand and German Chancellor Helmut Kohl, economic integration among European Community members advanced, culminating in forming the European Union (EU) in 1993. The EU, a political and economic body, enabled free movement of people and goods among twelve member countries, introduced a common currency (the euro) in 2002, and established the European Parliament for regulatory and investment coordination. The EU addressed diverse regional challenges: it integrated a unified Germany into Europe, provided Eastern Europe with a reform blueprint post-Soviet influence, and offered Western Europe an alternative path after losing its colonies. This marked a significant shift, uniting almost all of Europe under a common political framework for the first time since before the French Revolution.

Question 16

What were the short-term and long-term consequences of the OPEC
oil embargo?

Answer 16

Short-term Consequences:

Economic Recession: The immediate effect of the OPEC oil embargo of 1973-1974 was a severe economic recession in many Western countries. The sudden rise in oil prices led to increased costs for transportation and manufacturing, which in turn caused inflation and reduced economic growth.

Inflation: There was a significant spike in inflation rates as the cost of oil soared, driving up the prices of goods and services across the board. This phenomenon is often called “stagflation” — a combination of stagnation and inflation.

Energy Crisis: The embargo caused widespread fuel shortages and long lines at gas stations. In some countries, such as the United States, measures were taken to conserve energy, including the introduction of daylight saving time and speed limits on highways.

Policy Changes: In response to the crisis, many countries implemented policies to reduce their dependence on OPEC oil. For instance, the U.S. established the Strategic Petroleum Reserve, improved fuel efficiency standards, and invested in alternative energy sources.

Long-term Consequences:

Shift in Global Energy Policies: The embargo underscored the vulnerability of oil-dependent economies and prompted a shift towards diversified energy sources. This included increased investment in nuclear power, coal, and renewable energy technologies such as solar and wind power.

Changes in Transportation: The automobile industry, particularly in the United States, experienced a long-term impact. Smaller, more fuel-efficient cars became more popular, and manufacturers began to innovate in response to consumer demand for better mileage.

Economic and Political Shifts: The embargo altered the balance of economic and political power. Oil-producing countries in the Middle East gained significant influence on the global stage while oil-importing nations sought to improve diplomatic relations with these countries to ensure stable oil supplies.

OPEC’s Role: The embargo’s success demonstrated OPEC’s power to influence global oil prices. This realization led to periodic manipulation of oil production to control prices, affecting the global economy in subsequent decades.

Energy Conservation: There was a long-term cultural and policy shift towards energy conservation. Governments and consumers became more conscious of energy use, leading to more efficient practices and technologies.

Geopolitical Tensions: The embargo exacerbated geopolitical tensions in the Middle East and contributed to conflicts, including the 1973 Yom Kippur War and subsequent U.S. involvement in the region. This has had lasting implications for international relations and security policies.

Question 17

What effect did the Cold War and debt crisis have on Latin America?

Answer 17

Cold War Effects:

Political Instability: During the Cold War, Latin America became a battleground for ideological influence between the United States and the Soviet Union. Many countries experienced political instability, with military coups and dictatorships often supported by one of the superpowers.

Proxy Conflicts: The Cold War fueled proxy conflicts in Latin America, such as the Cuban Revolution in 1959, which led to Cuba becoming a communist ally of the Soviet Union and a focal point for Cold War tensions.

Military Dictatorships: In response to perceived threats of communism, several Latin American countries fell under military dictatorships supported by the United States. Human rights abuses and repression of dissent often characterized these regimes.

Arms Race: The Cold War led to increased militarization in Latin America, as governments received military aid and support from the superpowers. This exacerbated regional conflicts and diverted resources away from social and economic development.

Debt Crisis Effects:

Debt Accumulation: Latin American countries borrowed heavily from international financial institutions and commercial banks during the 1970s to finance development projects and infrastructure. However, high oil prices, rising interest rates, and economic mismanagement led to a debt crisis in the early 1980s.

Economic Recession: The debt crisis plunged Latin America into a severe economic recession characterized by high inflation, currency devaluations, and austerity measures imposed by international creditors.

Structural Adjustment Programs: In exchange for bailout loans, Latin American countries were required to implement structural adjustment programs prescribed by the International Monetary Fund (IMF) and the World Bank. These programs emphasized fiscal austerity, deregulation, privatization, and trade liberalization.

Social Impacts: Structural adjustment policies led to widespread social unrest and protests as governments implemented austerity measures, including cuts to public spending on education, healthcare, and social welfare programs. Income inequality worsened, and poverty levels rose in many countries.

Dependency: The debt crisis reinforced Latin America’s economic dependency on foreign creditors and exacerbated its vulnerability to external shocks and economic fluctuations.

Question 17

How did war and revolution reshape the Middle East?

Answer 17

1. Redrawing of Borders:
   World War I: The collapse of the Ottoman Empire after World War I led to European colonial powers redrawing borders in the Middle East, resulting in the creation of new nation-states.

Israel-Palestine Conflict: The establishment of the state of Israel in 1948 following the Arab-Israeli War led to displacement and ongoing conflict with Palestinians over territory.

2. Political Transformation:

Nationalism and Independence Movements: Wars and revolutions fueled nationalist movements across the region, leading to the emergence of independent states such as Egypt, Iraq, and Syria.

Arab Spring: The series of uprisings and revolutions starting in 2010, known as the Arab Spring, challenged authoritarian regimes across the Middle East, leading to political upheaval and in some cases, regime change.

3. Socioeconomic Impact:

Refugee Crisis: Wars and conflicts in the Middle East, such as the Syrian Civil War and the Iraq War, have caused large-scale displacement and created refugee crises affecting neighboring countries and beyond.

Economic Disruption: Wars and revolutions have disrupted economies, leading to poverty, unemployment, and instability in many parts of the region.

4. Sectarianism and Identity:

Sunni-Shia Divide: Wars and conflicts have exacerbated sectarian tensions between Sunni and Shia Muslims, leading to violence and political polarization in countries like Iraq, Syria, and Lebanon.

Ethnic and Religious Minorities: Wars and revolutions have also impacted ethnic and religious minority groups, leading to persecution, displacement, and marginalization.

5. External Intervention:

Foreign Influence: Wars and revolutions in the Middle East have often been influenced or driven by external powers, including colonial powers, superpowers like the United States and Russia, and regional actors like Iran and Saudi Arabia.

Military Intervention: Foreign military intervention, such as the U.S.-led invasion of Iraq in 2003, has further destabilized the
region and fueled anti-Western sentiment.

6. Rise of Non-State Actors:

Terrorism: Wars and revolutions have created fertile ground for extremist groups like ISIS (Islamic State of Iraq and Syria), which have carried out acts of terrorism and insurgency across the region.

Militias and Paramilitary Groups: Wars and revolutions have also given rise to militias and paramilitary groups that operate outside the control of state authorities, further complicating security and governance.

Question 18

How did white-minority rule end in southern Africa?

Answer 18

Internal Resistance:

The African National Congress (ANC), along with other anti-apartheid organizations like the Pan Africanist Congress (PAC), led a sustained campaign of protests, strikes, and civil disobedience against apartheid policies.
The Sharpeville Massacre in 1960 and the Soweto Uprising in 1976 were pivotal moments that galvanized domestic and international opposition to apartheid.

International Pressure:

Economic sanctions, diplomatic isolation, and cultural boycotts were imposed on South Africa by the international community, including the United Nations and Western governments, as part of the anti-apartheid movement. Divestment campaigns pressured multinational corporations to withdraw investments from South Africa, contributing to economic pressure on the apartheid regime.

Negotiated Transition:

The release of Nelson Mandela from prison in 1990 marked a turning point in South Africa’s history. Mandela and the ANC engaged in negotiations with the government, leading to the end of apartheid and the establishment of multiracial democratic elections. The negotiations culminated in adopting a new constitution in 1993 and the first fully democratic elections in 1994, which saw Mandela elected as South Africa’s first black president.

Question 19

How have East and South Asian nations pursued economic development,
and how political regimes have shaped those efforts.

Answer 19

East Asia:

State-Led Development:

Japan: Following World War II, Japan pursued a state-led development model, with the government playing a central role in directing industrial policy, investing in infrastructure, and promoting export-oriented growth. This approach, known as the “Japanese model” or “developmental state,” led to rapid industrialization and economic growth.

South Korea and Taiwan: These countries followed a similar model of state-led development, characterized by government intervention in strategic industries, land reforms, and investment in education and infrastructure. This approach, often called the “East Asian Tigers” model, propelled both countries from agrarian economies to industrial powerhouses within a few decades.

Export-Oriented Growth:

Many East Asian countries, including Japan, South Korea, Taiwan, and later China, adopted export-oriented growth strategies, focusing on producing goods for export markets. This approach allowed them to earn foreign exchange, attract investment, and achieve rapid economic growth. Under Deng Xiaoping’s leadership from the late 1970s, China implemented economic reforms and opened up to foreign trade and investment, leading to sustained economic growth and lifting millions out of poverty.

Political Regimes:

Authoritarian regimes in East Asia, such as those in South Korea, Taiwan, and China, played a significant role in guiding economic development through centralized planning, industrial policy, and repression of dissent.
In Japan, the Liberal Democratic Party (LDP) dominated politics for much of the post-war period, fostering stability and continuity in economic policy.

South Asia:

Mixed Economies:

India: After gaining independence from British colonial rule in 1947, India adopted a mixed economy model, combining state intervention and private enterprise. The government played a significant role in key sectors such as heavy industry, infrastructure, and agriculture through Five-Year Plans and public sector enterprises.
Pakistan: Pakistan initially pursued import substitution industrialization (ISI) policies, emphasizing domestic production of goods to reduce reliance on imports. However, these policies led to inefficiencies and economic stagnation.

Market Reforms:

In the 1990s, both India and Pakistan embarked on economic liberalization and market-oriented reforms, opening up their economies to foreign trade and investment, privatizing state-owned enterprises, and deregulating industries. This shift towards market-oriented policies aimed to spur economic growth and attract foreign capital.

Political Regimes:

India’s democratic political system has facilitated policy debates and reforms, although coalition politics and bureaucratic inefficiencies have sometimes hindered decision-making. Pakistan has experienced periods of military rule interspersed with civilian governments, which has led to political instability and inconsistent economic policies.

Question 20

How did decolonization change Europe?

Answer 20

End of Empires:
Decolonization led to the dismantling of European colonial empires, and former colonies in Africa, Asia, and the Caribbean gained independence from colonial rule.
Countries such as India, Pakistan, Indonesia, and numerous African nations achieved independence through peaceful negotiations and armed struggles.

Shift in Global Influence:
The end of colonialism diminished Europe’s global influence and marked the rise of new independent states on the international stage. Former colonial powers faced challenges adjusting to their reduced status and redefining their relationships with former colonies.

Migration:
Decolonization spurred large-scale migration movements, with people from former colonies moving to European countries for work, education, and opportunities. This migration had significant social, cultural, and demographic impacts on European societies, contributing to the emergence of multiculturalism and debates over immigration policies.

Question 21

How did the end of the Cold War change Europe?

Answer 21

Collapse of Communist Bloc:
The collapse of the Soviet Union and the Eastern Bloc countries marked Europe’s end of the Cold War division into two ideological camps. Former communist states in Central and Eastern Europe transitioned to democratic systems and market economies, joining Western institutions such as NATO and the European Union (EU).

Integration and Expansion:
The end of the Cold War facilitated European integration, leading to the expansion of the EU and NATO to include former communist states. The enlargement of these institutions contributed to stability, prosperity, and democratic consolidation in Central and Eastern Europe.

Geopolitical Realignment:
The end of the Cold War reshaped Europe’s geopolitical landscape, leading to new security arrangements, alliances, and partnerships. It also opened up opportunities for cooperation and dialogue between East and West, fostering diplomatic initiatives and conflict resolution efforts.

Economic Transformation:
The transition from centrally planned economies to market-oriented systems in former communist states brought economic challenges and opportunities.
Economic liberalization, privatization, and integration into the global economy led to significant economic growth and development in some countries, while others faced economic hardships and social dislocation.