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20 Cards in this Set
- Front
- Back
- 3rd side (hint)
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self-regulating market
economic liberalism |
- Adam Smith, late 1700s-1920s
- Market actors are best left to their own devices - Market is self-correcting - Government interference should be kept to a min - Homo-economicus: understanding of human nature that ind. act rationally and in their own self-interest, society will benefit as a whole and everyone will prosper more than it could under any other system |
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fictitious commodities
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- mechanisms by which society becomes subordinate
- commodities used to be goods produced for exchange, now it has extended its reach to sectors in which the primary purpose was not for exchange - the motivation to work harder in exchange for personal gain ensures the subordination of people and society to this one overarching set of motivations |
- land
- labor -capital/money |
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stages of economic growth
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1. traditional stage
2. pre-conditions for take-off 3. take-off 4. drive to maturity 5. age of mass consumption |
Rostow
1. associated with previous characteristics of traditional society 2. scientific changes, new sci. knowledge and innovation, eco. growth and progress is positive 3. rapid stage of industrial expansion and investment 4. couple of generations after take-off, sci. progress spreads throughout society 5. consumption moves beyond basic needs to a wider range of consumer goods |
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dependency theory
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- critique of modernization theory as rationalization for a history of intent and brutal exploitation of the underdeveloped
- 3 things - Rastow: countries evolve/fail to evolve according to the presence/absence of capital and correct cultural habits |
- ethnocentrism: West = modernity, prosperity, progress, the Rest = tradition, barbarism, etc
- naive optimism: based on the relatively smooth transition of the US; however ignores the less smooth features such as slavery and the Civil War - failure to recognize economic dependence: (in order for there to be rich countries, there must be poor countries) |
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nation-state nationalism (capitalism?)
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- addresses the political problem (absolute state/divinity of king downfall) and economic problem (poorly integrated markets)
- integrate a diverse group of people based on a defined area; process of creating a culture, a nation; new identities and loyalties to the new government |
- liberal democracy and nation-state capitalism
- schooling becomes important - necessary foundation for capitalism |
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Bretton Woods Institutions -
World Bank, IMF |
World Bank (IBRD):
- finance reconstruction - aid development of impoverished countries - headed by an Amer. IMF: - expansion and balanced growth of internat'l trade - exchange rate stability - headed by a European |
World Bank
- IBRD: middle income countries - International Development Assosciation (IDA): poorest countries - New Development Framework IMF - Poverty Reduction Strategy Paper ('99) PRSP |
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Kuznets Curve
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- as societies begin to grow and prosper, their per capita incomes rise dramatically and so does inequality in these societies; as societies continue to grow and become wealthier, the inequality gap will decrease as wealth is redistributed
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- Upside down U in terms of inequality and income per capita
- Nations adopt policies to redistribute wealth |
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Marshall Plan
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- Massive expenditure of aid to countries after WWII by the US
- countries adopt policies with liberal economic principles goals: - re-build infrastructure - stimulating investment - ensure social peace - fend off communism/fascism |
- liberal economic principles: relative openness to trade, primacy of market forces
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Keynesianism
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- Markets are not automatically self-correcting
- Individuals may act rationally, but collectively they act irrational - Capitalism must be managed and redistributed - Nationalize declining or strategic industries - Class compromise - Welfare-state capitalism? - Global economic architecture |
- Great Depression
- Ind. tend to spend less and spend more during a downturn, collectively irrational - macro-economics emerges - IMF, WB GATT |
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New Development Framework
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World Bank "re-thinking"
- good governance matters; corruption is key issue - GDP growth + health, environment, poverty - tailor aid to specific conditions - broad-based consultation, "participatory development" |
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traditional societies vs. modern societies
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Modern societies:
- affective neutrality - self-orientation - universalism - achievement - functional specificity traditional societies: - lack of ambition - fatalism - conservatism - oriented to immediate needs, not future ones |
- modernization theory
- dependency theory |
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Third World
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- low income countries or areas (often post-colonial)
- largely agrarian |
- shorter life expectancies
- high infant mortality - high birth rates - high levels of poverty - low levels of education - manufacturing sector is secondary - primary sector: agriculture, mining of minerals, very little export of finished manufact. goods |
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Double movements
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counter movements
- as markets extended themselves in the realm of real commodities, societies increasingly fought back to constrain markets in the realm of fictitious commodities |
- spontaneous reactions from all corners of society
- society will never tolerate market liberalism in its pure form |
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Poverty Reduction Strategy Paper (PRSP)
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- country-driven
- result-oriented - comprehensive in recognizing the multidimensional nature of poverty - partnership-oriented - long-term perspective for poverty reduction |
- focused on outcomes that will benefit the poor
- coordinated participation of development partners - strict fiscal policy - trade liberalization - privatization - investment de-regulation and financial liberalization - agricultural liberalization - labor market flexibility |
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Neo-liberalism
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broader relief in the efficiency of markets, not necessarily accepting moral baggage of Thaterism and Reaganism
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- markets actors were best left to their own devices
- market forces are self-correcting, healthy equilibrium within some reasonable period of time - gov't interference at a min. - homo economics: ind., acting rationally and in their self-interest, would in the aggregate create the most prosperity and the best of all worlds - the degree to which this is all said to be consistent with human nature |
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Declining terms of trade
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- classical view of trade and what countries should do to situate themselves within economy is to find their comparative advantage
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- comparative adv: produce cheaply and efficiently
- poor countries sell primary commodities, prices collapse - wealthy countries sell finish products, demand for growth |
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Center-Periphery
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- in single system, there are core countries (wealthy) and peripheral countries (former colonies, 3rd world)
- many exploitative relationships that characterized colonialism still exist in a more nuanced form |
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Trade liberalization
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opening up countries to international competition
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Conditionalities
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- IMF imposed conditions that were too intrusive on the countries which it lent to
- should not be reforming governments, intruding upon the sovereignty of the national governments |
- could end up leaving the country worse off than before, requiring more loans from the World Bank
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The Scorecard on Development/ Globalizers vs. Non-Globalizers
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- Newly Globalizing countries may, at the end of the period in question, still be less globalized than the so-called non-globalizers.
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