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28 Cards in this Set
- Front
- Back
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Age of Mass Consumption |
Rostow
The period of contemporary comfort afforded many western nations, wherein consumers concentrate on durable goods, and hardly remember the subsistence concerns of previous stages. In the age of high mass consumption, a society is able to choose between concentrating on military and security issues, on equality and welfare issues, or on developing great luxuries for its upper class (US - cars). Each country in this position chooses its own balance between these three goals. |
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Trusteeship |
* Progress has to be made compatible with order. Laws of social evolution: Development leads to improvement.
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Bretton Woods System |
* Used to be called General Agreement on Tariffs and Trade. Series of meetings to get agreement on removing tariffs and barriers to trade, opening up markets. Run by consensus, not headed by developed countries.
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Capital Fundamentalism |
* The idea that the way to increase productivity is to invest in capital/machines. Why there is such an emphasis on saving in developing countries. But the problem is that this predicts that investing in machines should provide really good returns when countries are developing, and diminishing returns as countries get more and more machines. BUT, investment doesn’t flow to developing countries with few machines. It flows to developed countries that already have plenty of machines. Clearly, a flawed argument.
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Division of Labor (Smith) |
Specialization of resources where individual people themselves are speciailizing. Pin example. Labor produces value. Produces better workers, saves time. A master of a specific job will work the fastest on their job. Industry has more productivity increasing than agriculture, but technology advances are bigger in industry than they are in agriculture. With agriculture, nature is a limiting factor (seasons), and it’s almost impossible to get a range of skills in agriculture. |
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Colonial Division of Labor (McMichael) |
Specialization between a colony and its metropolitan colonizing country, exchanging primary products for manufactured goods, respectively. Colony focuses on “monocropping”, product like cotton or oil or gold. Colonizing country prevents manufacturing from taking hold (India under British rule, for example). |
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Comparative Advantage |
Ricardo Countries should make what they can make most efficiently (NOT what they can make more efficiently than others). It is more efficient to produce something that you can produce very efficiently and trade with others for other goods than to try to make everything yourself (so, an example of export-oriented industrialization instead of import substitution industrialization). Trade critical to economic growth Countries engage in international trade even when one country's workers are more efficient at producing every single good than workers in other countries. He demonstrated that if two countries capable of producing two commodities engage in the free market, then each country will increase its overall consumption by exporting the good for which it has a comparative advantage while importing the other good, provided that there exist differences in labor productivity between both countries |
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Core/periphery |
* A key part of dependency theory. There is the core, semi-periphery, and periphery. Core is developed world, successful, has unequal exchange with the developing world (periphery). The elites of the periphery are focused more off of making money from relations with the core than helping their own country, hurts periphery. Semi-periphery in between, think of a China or Brazil or South Africa today. Purpose is to prevent countries lower than the core from joining together, in negotiations, just pay off the semi-periphery.
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Creative Destruction |
* Toilet example!
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Development State |
A centralized bureaucratic state inherited from colonial rule committed to managing national economic growth by mobilizing money and people. It uses individual and corporate taxes, along with other government revenues such as export taxes and sales taxes, to finance public building of transport systems and to finance state enterprises such as steel works and energy exploration. And it forms coalitions to support its policies. State elites regularly use their power to accumulate wealth and influence in the state -whether through selling rights to public resources to cronies or capturing foreign aid distribution channels. |
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Double Movement |
Polanyi The paradox that comes from the fact that as the market becomes more and more free, certain regulation is actually needed to support the free market (preventing monopolies, getting rid of unions, etc.) Labor laws and similar rules occur because of the excesses of laissez-faire. |
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Dual Economy Model |
* Uses non reproducible capital; unlimited labor, but getting people out of subsistence sector can actual increase productivity per person.
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EI3 |
Stands for: Entrepreneurs, Innovative, Industrial, Independent * The supposed leaders of a country who need to transform the economy, particularly in Rostow’s take-off stage. Need to refocus the country and create new industries and ways of doing business. Need to be independent too of the country’s political elites, different goals. BUT, as dos Santos points out, in developing countries the elites aren’t independent, often connected by nepotism and corruption to the government, or have strong ties to Western influences. |
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Fictitious Commodities |
* Commodities are whatever is produced for consumption that creates wealth. HOWEVER, economic system is based off of factors of production (land, labor and money [capital]). These are bought and sold in markets like a commodity (property is sold, labor is sold by working for wages, money is trade in financial markets), but they aren’t commodities, not produced. Essentially, the economic system is based off of a myth that allows us to regulate them.
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Financing Gap |
* Foreign aid usually did not increase growth—or even investment, for that matter
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High Modernism (Scott) |
* rely on the expertise of intellectuals and scientific innovation
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Import Substitution Industrialization |
The theory that a developing country needs to protect its industries using things like tariffs, quotas, barriers, etc. so the industries can grow, and selling the products within ones own country, so the developing country becomes self-sufficient. Practiced by many of the Latin American countries. However, corruption and rent-seeking leads to inefficiencies, model really didn’t end up being so successful. Goes against Ricardo’s idea of comparative advantage. Kambhampati mentions this as one of the choices developing countries have in terms of how outwardly oriented they are. |
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Life Cycle Vulnerability |
* Frank gives the example of Chile and Brazil that experienced some kind of development during their golden ages but this was not self-generating or self-sufficient development because these countries exported only primary goods to the metropolis which made the metropoles better off and did not really help Brazil and Chile. What is more, when Sao Pablo started to develop, it did not help other regions to develop too because it converted those regions into its own satellites and therefore deepened their underdevelopment.
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The Poverty Trap |
A poverty trap is "any self-reinforcing mechanism which causes poverty to persist." If it persists from generation to generation, the trap begins to reinforce itself if steps are not taken to break the cycle. Essentially, the improvements needed to get a developing country out of poverty (capital projects, investment in infrastructure, loans, etc.) all require some level of savings in order to work. The utterly destitute, however, use all their income on staying alive, and can’t save any. Therefore, they remain trapped in poverty. aid agencies behave as venture capitalists funding start-up companies. Venture capitalists, once they choose to invest in a venture, do not give only half or a third of the amount they feel the venture needs in order to become profitable; if they did, their money would be wasted. If all goes as planned, the venture will eventually become profitable and the venture capitalist will experience an adequate rate of return on investment. Likewise, Sachs proposes, developed countries cannot give only a fraction of what is needed in aid and expect to reverse the poverty trap in Africa. Just like any other start-up, developing nations absolutely must receive the amount of aid necessary (and promised at the G-8 Summit in 2005[4]) for them to begin to reverse the poverty trap. The problem is that unlike start-ups, which simply go bankrupt if they fail to receive funding, in Africa people continue to die at a high rate due in large part to lack of sufficient aid. the extreme poor lack six major kinds of capital: human capital, business capital, infrastructure, natural capital, public institutional capital, and knowledge capital. Sachs leaves business capital investments to the private sector, which he claims would more efficiently use funding to develop the profitable enterprises necessary to sustain growth. In this sense, Sachs views public institutions as useful in providing the public goods necessary to begin the Rostovian take-off model, but maintains that private goods are more efficiently produced and distributed by private enterprise |
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Structural Economic Transformation |
* She discusses the way traditional economies change themselves into manufacturing economies, and then later more sophisticated manufactures (capital goods, technology, etc.) In all of this, she emphasizes the role the state plays in making choices - what type of goods should we manufacture? How open to trade should we be? Should we be balanced or focus on one product specifically? All require structural choices.
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Surplus Value |
* Equal to the new value created by workers in excess of their own labour-cost, which is appropriated by the capitalist as profit when products are sold
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Take Off Stage |
This stage is characterized by dynamic economic growth. As Rostow suggests, all is premised on a sharp stimulus (or multiple stimuli) that is/are any or all of economic, political and technological change. The main feature of this stage is rapid, self-sustained growth. Take-off occurs when sector led growth becomes common and society is driven more by economic processes than traditions. At this point, the norms of economic growth are well established and growth becomes a nation's "second nature" and a shared goal.[1] In discussing the take-off, Rostow is noted to have adopted the term "transition", which describes the process of a traditional economy becoming a modern one. After take-off, a country will generally take as long as fifty to one hundred years to reach the mature stage |
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Unequal Exchange |
* Areas which have so far remained outside the reach of the world-system enter it at the stage of 'periphery'. There is a fundamental and institutionally stabilized 'division of labor' between core and periphery: while the core has a high level of technological development and manufactures complex products, the role of the periphery is to supply raw materials, agricultural products, and cheap labor for the expanding agents of the core.The periphery is forced to sell its products at low prices, but has to buy the core's products at comparatively high prices. Once established, this unequal state tends to stabilize itself due to inherent, quasi-deterministic constraints. The statuses of core and periphery are not exclusive and fixed geographically, but are relative to each other. A zone defined as 'semi-periphery' acts as a periphery to the core and as a core to the periphery. Wallerstein
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Urban Bias |
the stereotyping of rural populations as backward and unproductive, and privileging of urban classes and manufacturing sector to legitimize development strategies. Roy talks about this with the Narmada dam scheme, moving poor farmers off their lands into slums in the city, and the electricity and resources generated also benefit urban areas. Also, as an example is Lewis’ dual economy model, where he emphasizes the importance of moving people from the subsistence sector (rural) to modern (urban). |
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Growth Theory and Development Theorists |
Smith/Ricardo Weber Sachs Rostow Lewis Kambhampati |
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Post-Development Theorists |
Polanyi McMichael Roy Shrestha Escobar |
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Dependency Theory Theorists |
Marx Martinussen Dos Santos Wallerstein |
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Relations of Production |
By "relations of production", Marx and Engels meant the sum total of social relationships that people must enter into, in order to survive, to produce and reproduce their means of life. As people must enter into these social relationships, i.e. because participation in them is not voluntary, the totality of these relationships constitute a relatively stable and permanent structure, the "economic structure". |
