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30 Cards in this Set
- Front
- Back
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Why were the IMF, World Bank, and GATT/WTO created, and why are they called the KIEO?
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Resolve problems of war reparations and debt, disorderly currency exchange and a decline in world trade… need for international bodies to promote open and stable economic relations… clled KIEO b/c of central role in monetary relations development and trade
IMF= monitor fixed exchange rates… short termn loans to help states deal with temp. balance-of-payments deficits World Bank=long term loans for postwar reconstruction in Europe GATT= lowered tariffs in multilateral trade negotations |
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What is the role of smaller organizations and groups such as the OECD G7/G8, and G20?
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Promote economic leadership and stability… G’s were smaller informal without constiutions, included most powerful DCs, political leaders authority to implement agreements often attended their meetings
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Why was the G20 formed and why is it displacing the G7/G8?
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Formed in 1999 became permanent form for informal dialogue among systematically important developed and emerging economies.. after east Asian financial crisis… no decision makin body… try to reach a consensus on economic and financial issues, shape IR agenda… represent 2/3 world pop … not very effective in dealing with crises problems
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4. What are the advantages of using PPP-adjusted per capita GDP figures and what are the shortcomings of the PPP-adjusted figures?
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Purchasing power parity- number of units of a country’s currency required to buy the same amount of goods and services in domestic US dollars … measure country’s economic development… does not measure HDI social being
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What is the human development index and what are its strengths and weaknesses?
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HDI measures social as well as economic development- includes life expectancy, adult literacy level, and school enrollments and a decent standard of living measured by PPP-adjusted per caipta GDPs… important takes account of social as well as economic aspects of development… problem is collecting reliable data.. incomplete LDCs
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Why were the G77 and UNCTAD formed, and how successfully have they been? Is the growing influence of the G20 likely to benefit all LDCs?
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To give prirotiy to the interests of LDCs… cannot have voice unless united… 130 members of G7… acts mainly as a pressure group for southern interests and as a source of technical expertise… not really effective
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What is the World economic Forum, and in what way does it contribute to a blurring of lines between “public” and private” in the global political economy?
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To help Europe reclaim some leadership of the international business community from the U.S. .. shifted to global focus changed its name to WEF 1987… became a venue in which business executives, political leaders, and multilateral instiutitons discuss global economic, political and social problems… NGOs seek to reinforce or alter existing norms, rules and social structures
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What are civil society groups and how do they differ in terms of their tactics and gaols? What are TANs?
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Civil society = NGos and social movements focusing on labor, women, the environment, development, and human rights have been largely excluded from positions of power… wide range of nongovernmental noncommercial groups that seek to either reinforce or alter existing norms, rules and social structures
Either conformist, reformist and transofrmist/rejectionist TANS= transnational advocacy networks… anazlyze relationship between NGos and other actors… support value laden causes important in such as the enviro , women, infant health, indigienous people… also involved with lopment, foreign debt issues |
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1) What is rational choice, and what are its main strengths and shortcomings as an analytical approach to the study of IPE?
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Seek to maximize the benefits and minimize the costs of pursuing their obejctives… may settle for value-satisficing rather than value maximizing decisions because policy makers have misperceptions and may lack information and capabilities needed to make optimal choices…
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2) What were the similarities and differences between the mercantilists and Friderich list in their approach to IPE? Did liberalism have any effect on List’s views?
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Mercantilists viewed industrialization as essential for a state’s military power, security, and economic self-sufficiency… List emphasized importance of manufacturing for a state’s economic development… U.S. and Germany could catch up… List criticized the mercantilists for supporting agricultural protectionism… also referred to benefits of free trade, but believed that states had to follow other policies because of the possibilities of war
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3) What did realists devote little attention to IPE issues after WWII and why did this change in the 1970s and 1980s
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IPE focused on security issues… period of economic stability and prosperity… decline of the Cold War and increasing disarray in the global economic induced many realists to shift attention from security to economic issues… OPECC, relative decline US hefgemony, foreign debt crisis, destabilized global economy
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4) What is hegemony and how do theorists differ in their views regarding the strategies and motives of hegemonic states? Is a hegemon necessary to create and maintain open, stable economic regimes?
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Extremely unequal distribution of power, “a single powerful state controls or dominates the lesser states in the international system”… can a state with military or economic power alone have hegemony or must it predominate in both areas… realists define hegemony in state-centric terms… complex of ideas social groups use to exert their authority… Liberals view hegemon in benevelonet terms as willing to “take on an undue share of the burdens of the system” by providing public goods to help create open, stablie economic regimes
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5) What are “public goods”? Why are they necessary for the functioning of the global economy and why does their provision presnt “collective action” problems? What is the relationship between hegemony and public goods?
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Public goods= nonexcludable and nonrival… ensure there is economic openness and stability….. collective action problem occurs when the uncoordinated actions of individuals or states do not produce the best possible outcome for them… more likely to be open and stable if there is a hegemonic state…
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6) How and why do theorists differ in their views regarding the current status of U.S. hegemony? Is any other actor likely to replace the U.S. as the global hegemon?
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Declinist predict that the hegemon will overextend itself in military and economic terms and free riders will gain more than the hegemonf rom economic openness and that dyanamic economies will rsie to challenge the hegemon’s predominant position
Renewalists think that US hegemony remains largely intact… US still has hard and soft power… renewalists criticize declinist about military power… China could replace US |
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7) What aspects of North-South relations are of most and least interests to realists
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Realists argue that LDCs seek increased power as well as wealth… LDC problem from weak position…
Realists became interested in OPEC when it wrested control effective exercise of power by the South Against the North since conclusion of Second WW |
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8) Whata re the strengths and weaknesses of the realist approach to IPE?
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Realists place more emphasis on relative gains b/c their concern with state survival and security in an an anarchic selp help system. … more attuned to relative gainscauses them to be highly skeptical about the influence of international institutions… if states are always fearful of gaining less than others, they will not transfer authority to IOs
REALIST AND LIBERAL GENERALLY ACCEPT CAPITALISM AS MOST DESIRABLE SYSTEM FOR CONDUCTING INTERNATIONAL ECONOMIC RELATIONS |
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1) What are the similarities and differences among orthodox, interventionists, and institutional liberals?
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Orthodox= promote “negatoive freedom” or freedom of the market to function with minimal interference from the state.
Interventionist = believe that negative freedom is not sufficient because the market does nto always produce widespread benefits; thus, they support some gov’t involvement to promote more equality and justice in a free market economy Institutional = some outside involvement as necessary to supplement the market and they favor strong international institutions such as WTO IMF WB |
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2) Why did John Gerard Ruggie’s “embedded liberalism” become so important after WWII and how did it draw upon the ideas of John Maynard Keynes and Karly Polanyi?
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reference to the fact that postwar efforts to maintain an open liberal international economy were embedded in societal efforts to provide domestic security and stability for the populace.. thus policies to promote openness in the global economy included government measures to cushion domestic economies and gov’t policies to provide domestic stability in turn were designed to minimize interference with expansion of the global economy. .. postwar liberals fovaroed gov’t intervention to counter socially unacceptable aspects of the market… opted for gov’t measures that would reinforce rather than replace the market
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3) When did neoliberalism emerge and why? How did it draw on the ideas of Milton Friedman? How did it differ from liberalism of Adam Smith?
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Thatcher Reagan policies revitalized business confidence by rejecting the attempt to ease the effects of liberalism on vultnerable groupsl these policies resulted in open conflict with gov’t employees, trade unions and welfare recipient. As these changes became more widespread, gov’t felt goriwng pressure to adopt orthodox liberal policies such as privatization, deregulation, and free trad and foreign investment…
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4) In what way do both the provision of public goods and prisoners’ dilemma demonstrate “collective action problems”? How and why do liberals and realists differ in their views regarding the possibilities for cooperation under prisoners’ dilemma?
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Two players can benefit from mutual cooperation but have an incentive to “defect” or cheat on eac h other to become free riders..liberal view cheating or free riding by states can inhibit cooperation, and mutual cooperation is possible if cheating can be controlled…. Realists are more skeptical than liberals that international institutions have an important role in moving states to a pareto-optimal outcome…
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5) What are international regimes and what are the views of regime theorists regarding the formation, maintenance and results of regimes?
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Sets of impolicit or explicit principles, norms, rules and decision-making procedures around which actors’ expectations converge in a given area of international relations… associated with IOs… regime principels, norms, and rules can increase understanding and cooperation and help establish standards that states and nonstate actors use to assess each other ‘s behavior. Regimes can also induce states to follow consistent policies, limit actions that adversely affect others, and become less responsive to special interests…
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6) In what way does regime theory draw on both the liberal and realist perspectives? What are the major criticisms of regime theory? Is “global governance” a more useful concept than regimes”?
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"sets of implicit or explicit principles, norms, rules, and decision making procedures around which actors' expectations converge in a given area of international relations" regime principles and norms refer to general beliefs and standards of behavior that guide relation in specific areas: for example... principals of global trade regime include trade liberalization, reciprocity, and nondiscrimination
Realists point out a regime’s principles, norms, and rules may further the interest of the most powerful actors, often at the expense of the least powerfule… even liberal theoriests argue that it has some serious shortcomings, and many now focus instead on global governance… global governance addresses a wide array of diverse issues and uses a number of theoretical approaches… |
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8) How do orthodox and interventionist liberals approach the issue of North-South relations? What are some of the criticisms of their approach?
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Orthodox liberals devoete little attention to North-South distribuational issues because they assume that international economic relations are a positive-sum game and that interdependence has a mutually beneficial effect on states… provide more benefits to LDCs than DCs
Interventionist = believe LDCs with efficient, market-oriented policies are most likely to achieve economic growth… call on the North to consider the special needs of the South and recommend changes that involve some intervention in the market. |
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What is the endogenous growth theory?
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olds that policy measures can have an impact on the long-run growth rate of an economy. For example, subsidies on research and development or education increase the growth rate in some endogenous growth models by increasing the incentive to innovation.
Endogenous growth theory advocates investment in human capital, innovation and knowledge as significant determinant to economic growth. The theory also focus on positive externalities and spill-over effects of knowledge based economy which will lead to development of global economy. |
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What is the pareto optimal outcome for prisoners dilemma and pareto deficient outcome...
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square I ( both cooperate) because no actor can become better of without making someone else worse off... Swaure II both actors would prefer another outcome
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What makes up the balance of payment
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records the debit and credit transaction that residents, firms, and gov't of one state have within the set of the world.. two main components: current account (state's current expenditures and NI) and capital account
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what is the account comprised of
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Merchandise trade, service trade, investment income and payments, remittances and official transactions
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What are the three main functions of money?
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medium of exchange(must be acceptable to others in payment for goods, services or assets), unit of account (places a value or price on gods, store of value (preserves purchasing power or wealth)
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What is the difference between devaluation and depreciation
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devaluation occurs when a state lowers its currency's official price but depreciation refers to a market driven reduction in a currency's price
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What is the role of the IMF
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created to stabilize exchange rates and provide member states with short term loans for temporary balance of payments problems
IMF conditionality ensures that borrowers must agree to adopt specific economic policies in return for IMF- funding, and the conditions become more stringent as a member borrows more from the IMF in relation to its quota... LDCs feel stron pressure to abide by IMF conditionality depend on IMF loan US has an effective veto with IMF... own 16.7% of votes |
