Political Science Exam 3

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Security Community

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A situation in which low expectations of interstate violence permit a high degree of political cooperation--as, for example, among NATO members

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Common Agricultural Policy (CAP)

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A European Policy based on the principle that a subsidy extended to farmers in any member country should be extended to farmers in all member countries.

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Capital Accumulation

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The creation of standing wealth (capital) such as buildings, roads, factories, and so forth; such accumulation depends on investment and the creation of an economic surplus.

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Economic surplus

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Made by investing money in productive capital rather than using it for consumption

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Bourgeoisie

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In Marxist terminology, the class of owners of capital--people who make money from their investments rahter than from their labor.

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Petty Bourgeoisie

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Small-time owners of capital, such as shop keepers.

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Proletariat

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Industrial factory workers-- are considered potentially the most powerful class because their labor is necessary for the production of surplus.

-Supposed to lead the revolution against the burgeoisie.

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Lumpenproletariat

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The class of economically unproductive people at the bottom of society.

Prisoners, criminals, drug addicts, and so forth.

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Superstructure

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In Marxist terminology, the forms of politics and culture that are shaped by the economic base or mode of production (slavery, feudalism, capitalism).

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World-system Theory

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A view of the world in terms of regional class divisions, with industrialized countries as the core, poosrest third world countries as the periphery, and other areas (for example, some of the newly industrializing countries) as the semiperiphery.

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Neocolonialism

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The continuation, in a former colony, of colonial exploitation without formal political control.

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Enclave Economy

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An historically important form of dependency in which foreign capital is invested in a third world country to extract a particular raw material in a particular place-- usually a mine, oil well, or plantation.

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Substence Farming

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Rural communities growing food mainly for their own consumptio rather than for sale in local or world markets.

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Cash Crops

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Agricultural goods produced as commodities for export to world markets.

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Refugees

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People fleeing their countries to find refuge from war, natural disaster, or political persecution. International law distinguishes them from migrants.

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Newly Industrializing Countries
(NICs)

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Third world states that have achieved self-sustaining capital accumulation, with impressive economic growth. The most successful are the "four tigers" or "four dragons" of East Asia: South Korea, Taiwan, Hong Kong, Singapore.

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"Four Tigers"

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South Korea, Taiwan, Hong Kong, Singapore

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Free Economic Zones

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The southern coastal provinces of China that were opened to foreign investment and run on capitalist principles with export-oriented industries, in the 1980s and 1990s.

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Export-led growth

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An economic development stategy that seekds to develp industries capable of competing in specific niches in the world economy.

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Terms of Trade

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The overall relationship between prices of imported an exported goods.

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Informal Sector

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Those modes of business, such as black markets and street vendors, operating beyond state control; some scholars see this sector as the core of a new development strategy.

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Paris Club

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A group of world governments that have loaned money to third world governments; it meets periodically to work out terms of debt renegotiations. Private creditors meet as the London Club.

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London Club

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A group of private creditors that have loaned money to third world governments.

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Oxfam America

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A private charitable group that works with local third world communities to determine the needs of their own people and to carry out development projoects. Oxfam does not operate the projects but provides funding to local organizations to carry them out.

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Organization for Security and Cooperation in Europe
(OSCE)

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Truly universal intergovernmental organization.

Operates by consensus, with 55 member states.

Has little power except to act as a forum for discussions of secrutiy issues.

1990s it shifted to running elections, helping politcal parties in Bosnia and Kosovo, and providing various forms of monitoring and assistance in a half dozen Eastern European countries.

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Lenin

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Founder of the Soviet Union before the Russian Revolution of 1917.

Lenin's theory of imperialism argued that European capitalists were investing in colonies where they could earn big profits and then using part of these to buy off the working class at home.

Shapes the major approach of the North-South gap.

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Trotsky

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A Russian revolutionary.

Bleived that after the 1917 revolution Russia would never be able to build socialism alone and should make its top priority the spreading of revolution to other countries to build a worldwide alliance.

Stalin is his archrival. He had him killed.

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Free Economic Zones

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Open to foreign investment and run on capitalist principles.

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Integration Theory and Practice
Goldstein

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Goldstein argues that integration is the process whereby supranatural institutions replace nationa insititutions and there is a transfer of sovereignty.

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Theories of Integration: Functionalism

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Associated with the British socal scientist David Mitrang in the early 1960s.

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Key Points of Integration

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A. Based on the needs of individuals
B.Economic and social problems which placed pressure on governments to coordinate activities.
C. As states coordinated, they began to create institutions to fulfill certain functions normally associated with the state

Bottom-up model of integration

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Theories of Integration:
Neo-functionalism

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Ernst Haas in 1964 writes "Beyond the Nation-State".
Economic integration will eventually lead to political integration.

Integration is not due to social pressures, but is due to economic and political elites creating supranational institutions.

Top-down model of integrationg

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European Union (EU)
The Beginning

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Traced back to 1950 and the Schuman Plan.

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Schuman argues:

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France and Germany have to unite to overcome economic and political problems.

His plan becomes the basis of the Treaty of Paris in 1951 and the European Coal and Steel Community (ECSC).

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Original members of the European Coal and Steel Community:

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Germany, France, Italy, Luxemburg, Belgium, and the Netherlands

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By 1957 the ECSC transformed into:

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European Economic Community (EEC)

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Institutions of the EEC (EU):
The Commission

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The most important body within the EU.

Every member-state gets one commissioner.

Executive Branch of the EU

Contains the Bureaucracy

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Directorate-Generals (DGs)

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The bureaucracy within the commission that handle specific public policies.

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Directorate-Generals (DGs) Duties:

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1. Propose Legislation
2. Administer Policies
3. Manages the budget
4. Conducts foreign policy and external relations

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Institutions of the EEC (EU):
The Council

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Consists of government ministers. The Presidency of the Council rotates every 6 months. The council considers the proposals of the commission so it is a quasi-legislative branch.

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Institutions of the EEC (EU):
European Parliament (EP)

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Only since 1979
Have members of the EP (MEPs) have been directly elected by Europeans. Like the council the EP is a legislative branch that passes legislation.

The weakest link of the 3 main institutions

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Institutions of the EEC (EU):
European Court of Justice (ECJ)

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Composed of a judge from each of the member states and serve a 6 year term and interpret EU laws.

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Brussels, Belgium

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Location of the Council and the Commission

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Luxemburg

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Location of the European Court of Justice

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France

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Location of the Parliament

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The only German-Based institution:

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European Central Bank

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First Englargement of the EEC

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Occured in 1973.
The UK comes in, Ireland, and Denmark

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"Eurosclerosis"

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The mid-1970s, World global financial collapse causes countries to start to re-focus on their own democratic economy and the not EEC.

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Second Enlargement of the EEC

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By the early 1980s as economies rebound integration continues.

Brought in Greece in 1981

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Third Englargement of the EEC

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Spain and Portugal in 1986

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Single European Act (SEA):

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Realization that the EEC needed to change.

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First goal of SEA

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Changed the procedural decision-making of the EEC frmo unanimity to qualified majority on some issues.

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Second goal of the SEA

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Urged the creation of a common market by 1992 invisioning a single currency and a centural bank

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Maastricht Treaty

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EEC passes this in 1991 to deal with the economic and political changes occuring in international relations.

This is the economic, political, and military integration.

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Four things the Maastricht Treaty did:

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1. Re-named the EEC into the EU
2. Implement monetary union: this is the Treaty that began the Euro
3. Common Foreign Policy
4. The creation of a joing military rival NATO

3&4 were not as successful

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Two forces that have impacted the EU

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Broadening & Deepening

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Broadening

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Enlarge

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Deepening

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Policies

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Fourth Englargement of the EU

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1994

Brings in Australia, Finland, and Sweden

Economically Easy

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Amsterdam Treaty

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1997, passed as a first step to dealing with the next enlargement of the EU

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Treaty of Nice

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2001, Ireland initially veteod this

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Changes created by the Treay of Nice:

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1. Voting system
-Extended qualified majority voting to new areas.
2. # of seats in the European Parliament were increased
3. Changed the allotment of commissioners so that every country only has one.

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Fifth Enlargement of the EU

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2004, brought in another 10 countries.

8 are former communist countries

Most difficult, "Big Bang"

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Sixth Enlargement of the EU

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2007, two last former communist countries become members- Romania & Bulgaria

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Today the EU has ___ member states

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27

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Next major issue for enlargement:

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Turkish membership

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Next major issue for the EU:

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Creation of a constitution

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Treaty of Lisbon

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2007, Constitution

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EU Constitution proposes:

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1. Increase the power of the EP as a legislative branch
2. Decreasing the # of commissioners to 18
3. Creation of a President & Foreign minister

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Regional Trading Block1:
Trade Preference Areas (TPAs)

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RTBs which memebers lower tariffs on some products to other members. Ex. ECSC

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RTB2:
Free Trade Area

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RTBs in which members eliminate all trade barriers to members imports but each country is allowed to maintain their ownb trade barrier against non-member countries.
Ex. EFTA, NAFTA

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RTB 3:
Customs Union

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RTB that encorporates a free trade area, bus also members impose a unified trade barrier agains all non-members, decreasing competition among them.

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RTB 4:
Common Market

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Market that eliminates all barriers among member state and allows for the free movement of people, goods, capital, and services.

This is the EU

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Modernism:

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1950-60s.

Argues that the major barrier to development in the "global south" is the internal characteristics of the countires.

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State ownership of the economy:

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The basic confronting the global south is that the states owns too much of the economy which leads to inefficiency.

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Population Growth:

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North- less than 1%
South- up to 3%

This population growth makes allocating resources in poor countries even more difficult

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Excessive Urbanization:

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A greater concentration of population in urban areas in the global south than in the north.

Problematic because is makes allocating resources for housing, transpotation, and education difficult.

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Excessive Military Spending:

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As a percentage, global south countries or LDCs spend more on defense (1% GDP).

Problem with this is that it diverts funds from public sectors (housing, education, health care)

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Lack of Education:

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To modernize your economy requires an educated workforce and most LDCs do not invest in education.

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Corruption:

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Most research has found a link between high corruption and poverty.

There is a link between inefficient economy and corruption

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Dendency Theory of North-South Gap:

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Problem is not with the domestic economic-system as that LDCs are part of a world economic-system, in which they are exploited.

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Problem of Privatization and employment:

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MNCs exploit natural resources and the labor market.

These MNCs take out the profits that they make and re-patriate them back to the global north.

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Limited Access to Technology:

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MNCs do not encourage the spread of technology.

Technology knowledge is dominated by foreigners and is not passed down to local staff

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There is a role for the state in the economy.

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Argue that markets can fail and thus the state has a responsibility to own various parts of the economy especially in public sectors.

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International Monetary Fund (IMF)

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Created at Bretton Woods.

To monitor the exchange rates of countries

1970-80s, becames a major economic player in assissting countries with foreign debt problems.

Today, it lents to countries that have a problem servicing their foreign debt.

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IMF is composed of ____.

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Nation-states

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Each nation-state is assigned a ____.

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Quota

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The Quota is assigned based on:

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GDP

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The Quota is important for several reasons:

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1. Determines the country's voting power
2. Determines the amount of money a country can borrow from the IMF

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The IMF cannot:

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Impose lending on a state.

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The IMF:

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Lends money and creates loans based on tranches.

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A tranche is:

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A portion of an IMF loan

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Tranche One:

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Unconditional, the state can borrow the first tranche (25%) at any time, for any reason, without doing anything.

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Tranches 2-4:

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(Upper Tranches)

A country must sign standby agreement with the IMF that details the economic reforms to assist the country to stabilize the economy.

Conditional.

Must reform to get access to the money

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Purpose of a standby agreement:

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Not only allows a country to draw upon tranches 2-4

Also a signal to private lenders (banks) that the debtor state can repay a loan.

Countries go to the IMF to gain access to loans

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IMF first became a major economic institution during:

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Latin American debt crisis of the 1970s.

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Latin American debt crisis of the 1970s

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Turned to the IMF for financial support.

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World Bank

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Established in Bretton Woods

Located in Washington

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Purpose of the World Bank

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Provide development loans for poorer countries.

Originally for Europe but change quickly to other regions

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World Bank provides:

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Developmental loans for infrastructure and other economic growth.

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The Bank NEVER

Back 101

Gives all of the money

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Developmental loans

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Are longer than IMF loans

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States go to the World Bank first because

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It might be the only possible lender and its interest rate is less than private banks.

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The World Bank can also provide:

Back 104

A signal to private lenders that the project requested by the state is economically sound.