GVPT 282

First world

Japan and the Western industrialized democracies that were the first countries to develop advanced industrial economies and liberal democracies.

Second World

the former communist nations

third world

countries that were not aligned with either superpower and were often economically and politically marginalized

Gross Domestic Product (GDP)

A measurement of the total goods and services produced within a country. It is the total value of all final goods and services produced within a country's borders during a given time period, regardless of the nationality of the producers.

Gini Coefficient

measures income inequality between countries using a 100-point scale on which 1 represents complete equality and 100 represents the highest possible inequality

Human Development Index (HDI)

calculated based on life expectancy, average years of schooling, expected years of schooling, and GDP per capita. The HDI combines these three dimensions into a single composite index that ranges from 0 to 1, with higher values indicating higher levels of human development.

Multidimensional Poverty Index (MPI)

measure of poverty by the UN. It is based on health, education, and living standards. The MPI combines these three dimensions into a single composite index that ranges from 0 to 1, with higher values indicating higher levels of poverty. A person is considered "multidimensionally poor" if they are deprived in at least one-third of the weighted indicators across the three dimensions.

Colonialism

where one nation assumes control over the other. In colonialism, one can see great movement of people to the new territory and living as permanent settlers: direct integration into the metropole.

Asian Infrastructure Investment Bank (AIIB)

A multilateral development bank that was established in 2015 with the aim of promoting sustainable economic development, creating wealth, and improving infrastructure connectivity in Asia and beyond. The bank is headquartered in Beijing, has 103 members. The AIIB's main objective is to support infrastructure projects in Asia that contribute to economic growth, social development, and environmental sustainability. This includes investments in areas such as energy and power, transportation, urban development, and water supply and sanitation. The AIIB's lending and investment activities are aligned with United Nations Sustainable Development Goals and the Paris Agreement on climate change. The AIIB collaborates with other multilateral infrastructure projects in Asia and beyond, and to support the development of sustainable infrastructure practices.

Bretton Woods Conference

A meeting that took place among the Allied powers in Bretton Woods, New Hampshire shortly before the end of World War II to regulate the post-war economic system. The conference established the IMF and the World bank, the main international financial institutions that now provide resources and guidance for development. The purpose of the meeting was to create an economic system that would avoid the economic nationalism and instability that contributed to the war through the promotion of the open market.

civil war

a type of violent conflict between organized groups within the same country or society that seek to take control of the government or achieve other political, territorial, or ideological objectives. Civil wars are typically fought by organized military or paramilitary groups, and they often involve the participation of civilians. An example is the Syrian civil war, which began in 2011. The conflict started as a peaceful protest movement calling for political reform, but it escalated into a full-blown civil war after the government responded with violent repression.

Comparative advantage

an economic concept that describes the ability of a country, individual, or organization to produce goods or services at a lower opportunity cost than another. In other words, comparative advantage refers to the ability to produce a particular good or service more efficiently than others. The concept of comparative advantage is often used in international trade, where countries specialize in producing goods or services that they can produce most efficiently, and then trade with other countries for goods or services they cannot produce as efficiently.

conditionality

refers to the terms and requirements attached to a loan, grant, or other financial assistance provided by one party to another. These conditions are typically set by the lender or donor and are intended to ensure that the recipient of the aid uses it in a way that is consistent with the goals and priorities of the lender or donor.

development ladder

a concept used in economic development that describes the various stages that countries go through as they transition from low-income to high-income economies. The development ladder typically involves a series of stages, each characterized by different levels of economic, social, and political development. At the bottom of the development ladder are low-income economies that are often characterized by high poverty rates, limited infrastructure, and low levels of human development. These economies typically rely on agriculture or resource extraction, and they may lack access to capital or technology. As countries move up the development ladder, they typically experience economic growth, urbanization, and the emergence of new industries and services. The development ladder may involve a series of stages, including industrialization, export-oriented growth, and the development of a knowledge-based economy.

elite colonialism

Elite colonialism typically involves the exploitation of local resources and labor to enrich the colonizers, often at the expense of the local population. This could involve the forced labor of indigenous people or the imposition of taxes and other forms of economic exploitation. It also refers to a historical phenomenon in which a small group of European colonizers established and maintained political, economic, and social power in colonial societies. The European colonizers were at the top of the social hierarchy, while the local populations occupied the bottom.

emerging donors

Emerging donors" (China, Saudi Arabia, etc.) are offering alternatives to receiving countries, introducing competition into the system. In trade and development policy, there has been a movement away from multilateralism and the Washington Consensus. They are not utilizing the idea of conditionality

Ethnic Fractionalization

- a term use to describe the degree of diversity and heterogeneity within a given population based on ethnic or cultural characteristics. It refers to the number of distinct ethnic or cultural groups that are present in a society, and the relative size and distribution of each group. Ethnic fractionalization is typically measured using an index that ranges from 0 to 1, with 0 indicating complete homogeneity (society made up of a single ethnic group) and 1 indicating complete heterogeny (a society made up of many different ethnic groups of equal size). High levels of ethnic fractionalization can sometimes be associated with social and political instability, as different groups may have competed. interests and may struggle for power and resources.

ethnic polarization

refers to a situation where members of different ethnic or cultural groups in a society become increasingly divided and hostile towards one another. It is a condition where ethnic differences become the defining factor in people's social identity and behavior, leading to an "us vs them" mentality and breakdown of social cohesion.

export-oriented industrialization (EOI)

A set of policies, originally pursued starting in the late 1960s by several East Asian countries, to spur manufacturing for export, often through subsidies and incentives for export production. Also refers to a development strategy that focuses on exporting goods and services in order to stimulate economic growth. This strategy emphasizes increasing the competitiveness of the domestic economy through investments in technology, infrastructure, and human capital. The idea is that by developing industries that can compete in international markets, countries can generate foreign exchange earnings, create employment opportunities, and achieve long-term economic growth. One drawback of this approach is that it can lead to over-dependence on exports and vulnerability to external shocks, such as changes in global demand or prices. Additionally, EOI can create social and environmental problems, such as inequality and ecological damage, especially if it relies on low wages and weak environmental regulations.

General Agreement on Tariffs and Trade (GATT)

was an international treaty established in 1947 with the aim of promoting international trade by reducing barriers to trade such as tariffs and quotas. It was succeeded by the World Trade Organization (WTO) in 1995. Under the GATT, member countries agreed to a set of rules and principles for conducting international trade. These included the Most Favored Nations principle, which stipulated that member countries could not discriminate between trading partners by granting one more favorable treatment than another, and the principle of National Treatment, which required member countries to treat foreign and domestic goods and services equally once they entered their respective markets. The GATT provided the framework for multilateral negotiations on trade liberalizations, which involved member countries making commitments to reduce tariffs and other trade barriers over time.

Heavily Indebted Poor Country Initiative

debt relief program launched by the IMF and the World bank in 1996. The goal is to reduce debt burden of the world's poorest countries, which are often saddled with unsustainable levels of external debt that prevent them from investing in their own development. Provide debt relief to eligible countries in two stages. In the first stage, countries must develop and implement a Poverty Reduction Strategy, which outlines a plan for reducing poverty and promoting sustainable economic growth. The second stage of HIPC involves the cancellation of eligible debt. This can include both bilateral debt (owed to individual creditor countries) and multilateral debt (owed to institutions such as the World bank and IMF). The debt relief provided by the HIPC initiative is intended to allow countries to redirect resources towards poverty reduction and sustainable development.

Human Security Paradigm

an approach to international relations and the development that places the protection and empowerment of individuals at the center of its analysis. It focuses on the security needs of states and aims to promote a broader and more comprehensive understanding of security that includes not just military and political factors, but also social, economic, and environmental factors. It emphasizes the need to address the underlying root causes of these challenges, such as inequality, exclusion, and environmental degradation. According to the human security paradigm, human security can be achieved through a range of measures: protecting individuals from physical violence, human rights abuses, providing access to basic services such as health care, education, and clean water, promoting economic and social development that is inclusive and sustainable, addressing environmental challenges, building effective governance systems that are transparent, accountable, and responsive to the needs of people.

Import Substitution Industrialization

a development strategy that emphasizes the production of goods domestically instead of relying on imports. The goal is to reduce dependency on foreign markets and develop local industries that can provide employment and support economic growth. This approach involves protecting domestic industries from foreign competition through tariffs, subsidies, and other forms of government intervention. The drawback ISI is that it can lead to inefficiency, as domestic producers may not be as competitive as foreign ones, and the high levels of protection can reduce incentives to innovate or improve production methods. Moreover, ISI can lead to rent-seeking behavior and political patronage, as well as higher consumer prices due to the protectionist measures.

Imperialism

refers to political or economic control, either formally or informal. Imperialism is exercising power over the conquered regions either through sovereignty or indirect mechanisms of control

informal economy

refers to economic activities that are unregulated or untaxed by the government and are not covered by labor laws or social protections. These economies are a significant and growing part of many economies around the world, particularly developing countries. One of the key issues with informal economies is the lack of labor protections and social protections for workers in the informal sector. Workers in the informal economy are often denied basic labor rights such as minimum wages, social security, and safety protections, and may be vulnerable to exploitation or abuse. Despite these challenges, some argue that the informal economy can also represent a source of entrepreneurial energy and innovation and may provide a safety net for vulnerable populations in times of economic hardship. As a result, there is ongoing debate about how best to support and regulate the informal economy, while ensuring that workers are protected and that the broader economy is able to function effectively.

instrumental freedoms

refers to a set of basic rights and liberties that are considered essential for individuals to excessive other, more substantive freedoms. These rights and liberties are seen as necessary tools of instruments that individuals need in order to fully realize their potential and pursue their goals and aspirations. For example, freedom of speech and expression, freedom of assembly and association, etc.

International Monetary Fund (IMF)

an international organization that acts as a lender of last resort, providing loans to troubled nations, and also works to promote trade through financial cooperation. the primary purpose of the IMF is to promote international monetary cooperation and exchange rate stability, facilitate balanced international trade, and help member countries address financial crises. The IMF works to achieve its goals by providing loans to member countries experiencing balance of payments difficulties, providing technical assistance and policy advice to member countries, and conducting research on global economic issues.

land reform

Refers to policies or programs aimed at changing the way land is owned, distributed, and used within a society. This may involve measures such as redistributing land from large landowners to small farmers, providing land titles to previously landless people, or promoting land consolidation to improve agricultural productivity. In some cases, land reform may be seen as a way to address historical injustices and inequalities, by providing access to land for marginalized communities or groups. In other cases, land reform may be seen as a way to promote economic growth and development, by encouraging investment in agriculture and other land-based industries.

metropole

the parent state of a colony. The mother nation to colonies

modernization theory

the process of modernization that involves a transition from traditional to modern societies. This transition is characterized by industrialization, urbanization, and the growth of a middle class. As societies become more modern, they are expected to become more democratic, more secular, and more oriented towards individualism and consumerism.

neoliberalism

A strategy for economic development that calls for free markets, balanced budgets, privatization, free trade, and minimal government intervention in the economy.

pattern variables

are a set of binary categories that are used to describe and analyze different dimensions of social action. Each pattern variable consists of two opposite poles, which represent different orientations or values that can be found in social action. For example, affectivity vs affective neutrality: this pattern variable describes the degree to which emotions are expressed or suppressed in social interactions.

point four program

a foreign aid initiative launched by President Harry Truman in 1949. Its name derived from the fact that is was part of Truman's fourth point, which called for the US to "embark on a bold new program for making benefits of our scientific advances and industrial progress available for the improvement and growth for underdeveloped areas." The Point Four program aimed to provide technical and economic assistance to developing countries from around the world, particularly in Asia, Africa, and Latin America. The program's primary objective was to promote economic development, alleviate poverty, and foster stability and democratic governance in these regions. The Point Four Program represented a significant shift in the US foreign policy towards greater engagement and assistance to the developing world.

Prebisch-Singer Hypothesis

- A theory that suggests developing or "traditional" societies, which are characterized by a reliance on primary commodities such as agriculture, minerals, and raw materials, tend to have a comparative disadvantage in international trade compared to developed or "modern" societies, which rely on manufactured goods and services. According to this theory, the terms of trade between traditional and modern societies tend to be biased against traditional societies

Responsibility to Protect Doctrine

a political and moral principle that was endorsed by the UN in 2005, in response to the international community's perceived failure to prevent and respond to genocide in Rwanda. The doctrine is based on the idea that the primary responsibility for protecting populations from mass atrocities lies with the state, but when a state is unable or willing to fulfill this responsibility, the international community has a responsibility to take appropriate action to protect the affected population. Three main aspects: responsibility of the state to protect its own population from genocide and war crimes, etc., the responsibility of the international community to assist states in fulfilling this responsibility, including through capacity building, diplomacy, and other peaceful means, and finally, responsibility of the international community to take timely and decisive action, including through the use of force, when a state is manifestly failing to protect its population from the above crimes.

settlement colonies

were established primarily as a place for people from Europe to settle; often involved destruction of indigenous cultures and population

statism

refers to the belief that the government should have a significant role in controlling and regulating various aspects of society, including the economy, social affairs, and personal behavior. In a statist system, the government has extensive powers to direct the actions of individuals and organizations, with the aim of achieving specific social or political goals.

Structural Adjustment Program

are economic policies that were imposed on developing countries by the International Monetary Fund (IMF) and the World Bank in the 1980s and 1990s. SAPs were designed to address economic problems such as inflation, budget deficits, and balance of payment crises by imposing market-oriented reforms that aimed to promote economic growth, reduce government intervention in the economy, and increase international trade and investment. SAPs typically included policies such as, trade liberalization, privatization of state-owned enterprises, and deregulation of markets. The implementation of SAPs often had negative consequences for developing countries, as they often led to social dislocation, and reduced access to healthcare and education, along with other negative consequences.

Washington Consensus

a term used to describe a set of economic policy prescriptions that were widely promoted by international financial institutions and governments in the 1980s and 1990s. These policies were largely aimed at promoting economic growth and development in developing countries. Main principles included: discal discipline, market-oriented reforms, trade liberalization, encouraging foreign direct investment, reforms to promote property rights and rule of law, and reforming the public sector and reducing government intervention in the economy.

World Bank

A specialized agency of the United Nations that makes loans to countries for economic development, trade promotion, and debt consolidation. Its formal name is the International Bank for Reconstruction and Development. generates capital funds from member states and from borrowing in international financial markets. Loan certain funds, with interest, to states for economic development projects. The mission is to promote global economic development and reduce poverty by providing financial and technical assistance to developing countries.

World Trade Organization

oversees trade agreements between countries. Mission is to promote free trade. Also they have the idea of most favored nation- which means no favoring nations in trade agreements.

Walt Rostov’s argument about modernization theory

argued that economic development follows a predictable pattern of stages that all countries go through on their way to becoming modern, industrialized societies. He identified five stages of economic growth: traditional society, preconditions for takeoff, takeoff, drive to maturity, and high mass consumption.

Marber position

argues that globalization and free trade are beneficial for developing countries. Marber argues that globalization has created opportunities for developing countries to grow their economies and improve the living standards of their citizens. He maintains that trade liberalization has led to greater economic growth, increased access to global markets, and the spread of technology and knowledge.

joseph stiglitz argument

argues that globalization has not lived up to its promises and has instead caused harm to developing countries. He maintains that trade policies have contributed to the widening income inequality, environmental degradation, and social unrest in developing countries. He advocates for greater regulation of the global financial system, more emphasis on human rights, and fair-trade policies that protect the interests of the poor.

asian financial crisis

·      Major global financial crisis that destabilized the world economy.

·      Proponents of neoliberalism blamed state intervention in the economy and poor governance. There were concerns about “moral hazard,” with government, corporate, and finance institutions too closely connected.

·      Critics of neoliberalism emphasize the dangers of premature financial liberalization, insufficient regulation, and absence of social safety nets; instability caused by speculation. Essentially, one of the main criticisms of neoliberal policies that were promoted by institutions such as the IMF and World Bank was that they encouraged speculative investment and financial deregulation, which allowed for the inflow of large amounts of foreign capital into Asian economies. This led to a boom in the region’s stock markets and real estate prices, creating a sense of economic growth and prosperity. However, this speculative investment was largely short-term, and when investors began to lose confidence in the sustainability of these markets, they quickly pulled their investments out. This caused a sudden and severe shock to the region’s economies, as currencies rapidly devalued, stock markets collapsed, and many banks and businesses went bankrupt.

Hernado de Soto’s argument

His argument is that many developing countries face a “missing middle” of a property rights: while large corporations and wealthy individuals may have clear title to their assets, many small businesses and individuals lack formal recognition of their property rights. This, in turn, leads to a lack of investment, entrepreneurship, and economic growth. De Soto’s argument is based on the idea that formal property rights are essential for economic development, as they provide a clear legal framework for investment, credit, and entrepreneurship. Without clear title to their assets, individuals and small businesses are unable to use their property as collateral for loans or to make long-term investments in their business. This lack of formal recognition also creates barriers to entry and exit in many markets, as individuals may be unable to sell their property or transfer ownership