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block grants
Federal funds provided to states or local governments for broad purposes, allowing discretion in spending within specific areas.
categorical grants
Federal funds provided for specific purposes, often with restrictions on their use.
devolution
the transfer of powers and responsibilities from the federal government to state and local governments, allowing for more localized decision-making.
layer cake federalism
A concept of federalism where the responsibilities and powers of national and state governments are distinctly separated, resembling layers of a cake.
mandate
An official order or requirement from the federal government that directs states or local governments to take specific actions, often with funding conditions.
marble cake federalism
A concept of federalism where the responsibilities and powers of national and state governments are intertwined and overlapping, resembling a marble cake.
nullification
The legal theory that states have the right to invalidate any federal law they deem unconstitutional. Nullification has been a controversial issue in American history, especially regarding states' rights.
tenth amendment
The constitutional provision that reserves powers not delegated to the federal government for the states and the people, reinforcing the principle of federalism.
unfunded mandates
Federal laws or regulations that require states to perform certain actions without providing the necessary funding to cover the costs.
welfare reform act of 1996
A significant piece of legislation that transformed the welfare system in the United States by instituting work requirements and limiting the duration of benefits, shifting more responsibility to the states.
economic globalization
includes economic networks that are growing more interconnected, a worldwide market with actors unconstrained by political borders, and a reduction in state control over economies
multinational corporations
businesses with a large presence in countries in different regions of the world. MNCs increasingly dominate global markets and pose challenges to, and sometimes conflict with, domestic economic policies regarding labor, the environment, land rights, taxation, and the budget
special economic zones
areas in China (particularly along China’s east coast) designated by the government as regions where private businesses could attract foreign direct investment
privatization
government-owned industries to businesses run with free-market forces that are owned and operated by private investors
nationalism
government-owned industries run without free-market forces
foreign direct investment
money invested in private businesses by individuals or a corporation outside of the country that can pose a challenge to a government’s foundational economic and political ideas and principles.
environmental degradation
environmental problems created by industrialization and other forms of economic development
international organizations
organizations joined by member states with a common interest such as the International Monetary Fund (IMF,) the World Bank and the United Nations
international monetary fund
(IMF) exerts great influence through preconditions for financial assistance; countries that receive IMF assistance often must agree to structural adjustment programs requiring privatization of state-owned companies, reduced tariffs, and reduced governmental subsidies of domestic industries.
supranational organizations
organizations in which member states grant the governing organization sovereignty over policies typically related to trade such as the Economic Community of West African States (ECOWAS), the European Union (EU), and the World Trade Organization (WTO)
structural adjustment programs
neoliberal reforms often required by international organizations granting emergency loans to countries that require privatization of state-owned companies, reduced tariffs, and reduced governmental subsidies of domestic industries
tariffs
taxes imposed by a government against imported goods
subsidies
government funding made to support domestic industries against foreign competition or to shape economic behaviors
import substitution industrialization
policies aimed at reducing foreign dependency by raising tariffs and encouraging local production of industrialized products
austerity measures
funding cuts to state programs and / or tax increases intended to decrease budget deficits and national debt; often required for IMF emergency loans
gender equity
civil rights ideal for women to be protected with equal treatment and to secure equal power as men in governing a country
maquiladora zones
areas of the Mexico’s manufacturing industry mostly located in northern Mexico; factories established to assemble parts imported from the United States for assembly in Mexico made more possible due to NAFTA. Contributed to greater economic development in the north than in the south, as well as other regional disparities.
rentier states
countries that obtain a sizable percentage of total government revenue from the export of oil and gas or from leasing the resource to foreign countries and have been able to raise standards of living and fund governmental programs based on their huge reserves.
resource curse
countries that rely too heavily on the export of commodities face negative economic, political and environmental consequences
economic diversification
when a country is able to obtain economic balance between agriculture, manufacturing and service without over dependence on one commodity or economic sector.