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25 Cards in this Set
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staple theory
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regional economies/societies within countries develop according to nature of staple commodities exported to europe.
EX: canada, traded cod in atlantic regions and was cooperative and decentralized. central canada traded fur and the industry was more centralized and had larger firms. made montreal/toronto big business cities and not atlantic area. similar to plantation economies in latin american and america. characterized by high levels of inequality. DEscribes how certain countries have developed much more quickly than others, despite initial similarities. |
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progressive crops
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ideal smallholder crops with significant long term societal consequences. coffee and rice where large scale gang labor isn't profitable because these crops are harder to farm. coffee matures at different rates and must pay close attention to details. South brazil and US midwest developed faster than reactionary crop lands.
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reactionary crops
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favor large economies of scale, sugar and cotton, plantation products. create some of world's most uneven societies economically. farmed with gang labor. workers watched by overseer. more efficient than small farm for same products. small independent farmers couldn't keep up. US south/ brazilian NE developed large inequality due to crops.
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economies of scale
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cost advantages obtained due to expansion. factors that cause producer's average cost per unit to fall as scale output is increased.
there are some industries that are more efficient when producing in large scale and centralized. explains how sugar/cotton were lage scale production with concentrated wealth into hands of few large land owners. and others like wheat/coffee/rice were small holder farmers could compete with larger ones. |
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king leopold
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king of belgium. 19C, pursued colonial ambitions depsite his lack of navy/merchant fleets. convinced major colonial powers to divide up africa (UK, portugal france germany) and took Congo for himself.
disguised as christianizing the area to improve lives of inhabitants. exploited people and they were slave like conditions. natives who refused to work were kiled or families were kidnapped. extracted ivory at first but then rubber became man export. |
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plantation economies
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based on just a few, specialized staple crops for export (tobacco/cotton/sugar) associated with slavery historically along with foreign control and ownership.
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conquest economies
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based on exploitation of indigenous labor to extract natural goods. large supply of indigenous workers removes need to import slaves. endowments shape interests and colonialism breeds inequality.
colonizers will come full force to lands with great natural resources and promote/keep inequality to remain rich which results in uneven development within those countries. and widespread poverty (Engerman Sokoloff's theory). countries near equator are rich in resources and highly populated are among the poorest. |
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economic theory of imperialism
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larger countries conquer and colonize smaller countries not to futher political/religious/humanitarian goals but to push economic goals.
large countries usually manufacture and export goods and need constant raw resources to fuel it. cast imperialism as a religious/humanitarian goal (the white man's burden) when really they just want the goods. originates from karl marx's communist manifesto, cited as proof of globalization leading to exploitation in developing countries. |
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site specific foreign investments
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CHECK READINGS! natural resources available in certain area only movable at high cost. king leopold's congo, gold in africa. endowments= land, raw materials, natural resources. interests of investors may center on use of cheap labor BC high export costs (like with sugar plantations along Caribbean).
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extension of franchise
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development of a more representative electoral system/ democratization in gov. EX: reform act of 1832, gave industrial workers more representation in UK during 19C. growth of democracy reduces inequality, originally caused by industrialization. greater rep= more pressure within democracies to spread benefits widely across society. democratization promotes economic growth in countries that abandoned monarchies like UK, FR, GR, etc. pave way for adoption of gold standard and capitalism, thus promoting globalization.
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enclave economies
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where export based industry dominated by intl or non local capital extracts resources/products from another country. widely employed as term to describe post colonial dependency in developing world, esp Latin America.
mark twain imperialists who took but never returned anything were called 'the blessings-of-civilization trust' like leopold. trust members had no long term interests n the land, it was little more than organized theft. Portuguese did the same, this rule is called extractive enclaves. |
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settler colonialism
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small groups colonize areas with large indigenous populations. different from mass european migrations to small populated lands like US prairies. settler colony is ruled by assigned group of officials who dominate/control indigenous populations.
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social infrastructure
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physical asset that accommodates social services like schools/hospitals/prisons/etc. regions of africa were abundant with resources and had land for plantations and were likely to develop inegalitarian social structures. region became dominated by elites with no interest in providing infrastructure/ed/good gov necessary to develop past initial resources boom.
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divergence puzzles
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why former colonies like US/Canada became more prosperous than others in latin america. all began with similar endowments, resources and lots of land. US/Canada also grew faster than others, Barbados even though under same empire/UK.
1. soil/climate conditions determine which crops are most profitable, depending on whether those crops were based on ecnomies of scale or not determined the social structure to be more egalitarian or unequal. 2. nature of colonial rule, whether nations were ruled with economic development in mind and if populations were randomly scattered across political lines/ like in scramble of africa. shows unevenness of colonialism despite similar beginnings. |
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settlement economies
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climate suitable to small family farms like in US. US production was mostly based on small family farms, income equality, wealth distributed. led to institutions set up to promote equality in representation/protection. equality in gov led to development of schools, principal vehicle for literacy and important contributor to growth. US/canada only ones to enact free schools open to all. public education led to greater literacy rates and productivity, helped convergence/econ growth of those nations.
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scramble for africa
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colonization of african regions during new imperialism between 1881 and 1914 (WWI). divided up by europe powers but ignored ethnic/geographic division. division created lots of conflict with negative impact on economic growth. some colonial admiistrators, leopold and Portugueses, plundered their colonies without developing them economically . lack of legitimate trae and major loss of life devastated african economies and created persisting problems. cited as contributing cause to divergence puzzles that prevent convergence.
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poor institutions
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one of the primary cause of persistent lack of convergence of countries engaged in intl trade, other is economic trade restrictions. EX: weak property rights, absence of rule of law, corruption, all create disincentive to invest in that place. poorer a country's institutions are more difficult it will be to converge.
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path dependence
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history matters, econ conditions aren't completely due to current situations but previous ones as well. helps dependency theory, former colonies were hurt by globalization and free trade won't help them achieve convergence.
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soil and climatic conditions
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determine ability to grow crops in certain areas. influential in development of certain planation economies/small holding agricultural economies. long term consequences on social structure/political governance and ultimately econ development since colonial era.
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colonial sugar economies
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caribbean countries, barbados, plantation economies. associated with reactionary crops, led to poor institutions and poor growth. poor growth not due to little productivity, as the area expereinced economies of scale, but they were planations and therefore could lower fixed costs with larger and larger outputs. poor growth of region was due to little equality, slaves worked and left wealth in hands of very few. when slaves can't consume goods and can't interact with the economy the econ suffers. consequence is that the benefits of econ growth aren't spread widely, stunt development, fail to achieve convergence.
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Meiji Revolution of 11868
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period of modernization following restoration of japanese emperor to power, ended shogunate/ancient military rule. prompted after Commander Matthew Perry forced japan to open ports causing shogunate to lose face and setting into motion that modernize japan. following the revolution japan adopted ambitious program of modernization where embraced tech and capital investment of west. grew rapidly and converged at end of 20C. EX of how globalization can transform country from poor to success.
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grain invasion
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result of decreasing transportation costs to europe caused European market to be flooded with cheap imported grain from land abundant farmlands of recent settlement. Prussia and E Europe were breadbasket of europe and other countries had substantial numbers of farms.
transportation (railroads, steamships, refrigeration) allowed for grain and livestock producing lands to come in. land =Australia, US, Canada, S. America. UK adjusted to grain invasion and shifted away from grain to livestock and dairy farming. yet low cost imported grain threatened farmers in other parts of europe with extinction and many organized to institute protectionist tariffs to defend their interests |
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chinese exclusion act
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enacted in 1882, suspended immigration by chinese laborers for 10 years and led to permanent ban in 1943. demonstrates how S-S theorem predicts that immigration in labor scarce nations would hurt the labor of that country. also shows how interest groups with political representation organize to defend their interests. US workers, whose wages were cut by threat of chinese immigration labor, organized to pressure politicians to pass exclusion acts to preserve relative labor scarcity in US.
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Coalition of Iron and Rye
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protectionist coalition between manufacturing and agricultural interests (junker landowners of east) during 19C. followed cobden-chevalier treaty there was comprehensive trade liberalizaiton in europe but 1879, prussia becomes protectionist and adopts iron and rye tariff. first of series of european tariffs resulting in demand for protectionism. from this point until WWI there was gradual return to protectionism.
Prussia endowments were abundant in land and scarce in capital, was the farm belt of europe. falling transportation costs allowed entrance of cheaper grain from more land abundant countries/US making GR relatively scarce in both land and capital. Junkers, landowners, desired protection to save themselves from extinction and GR capitalists wanted protection from UK manufactured goods. Chancellor otto von bismarck brokered marriage of capital and land, iron and rye coalition, that brought high tariffs on both grains and manufactured goods. The coalition of iron and rye shows how threatened interests can combine and undermine globalization. |
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Junkers
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prussian land owners who suffered from grain invasion and enacted protectionist legislation in response. was major grain producer until the invasion. inflow of cheap grain imports threatened the survival of junkers agricultural livelihoods. no longer land abundant, relative to US, prussia lost CA in grain. junkers couldn't produce at competitive prices anymore. thus S-S predicts landowners will be hurt by intl trade. 19C GR was parliamentary democracy and most of power rested with federal council which was controlled by junkers BC held large amount of seats. Junkers had 17 seats and 14 were needed to veto. therefore junkers were able to maintain central role in influencing policy decision resulting in overrepresentation of prussia landowners. able to enact protectionist legislation against grain.
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