Global 126 Midterm

How did industrialism shift the way nature was conceived in the colonized areas?

It shifted from the native viewpoint of Nature as a regenerative system to the colonial viewpoint that nature is simply raw material to be extracted.

How were the colonial economies structured and integrated into the international economy?

The colonial economies were structured to facilitate the extraction and export of raw materials. Colonies were the producers/exporters of raw materials for manufactured goods in the global economy.

What's the role of the World Bank?

Provided financial aid to developing countries and to rebuild Europe post-WWII. It finances countrys' infrastructure projects and supports the expansion of large-scale cash-crop agriculture and other development projects (did not fund social agendas).

What's the role of the IMF?

Establish global economic stability post-Great Depression. Focused on stabilizing national currency exchanges to create a stable national system. Responsible for maintaining a system of fixed exchange rates relative to the US dollar. Provided short-term loans to countries that needed to cover a temporary payment imbalance. Facilitate national trade post-WWII.

What was the GATT? What did it do?

Multi-lateral trade agreement governing national trade pre-WTO. It was made to liberalize trade and establish global trade regulations. Agriculture was exempt due to the insistence of the US until 1986. Democratic institution technically but the US and other countries swing bigger influence.(GeneralAgreementofTariifsandTrade

What were the U.S.'s economic interests after WWII?

Want to expand its access to foreign markets in order to gain access to cheap raw materials to support the US economy. Find new markets for its goods and investments. Developing its primary industry and promoting the US path to development in 3rd world countries.

According to McMichael, what were the two facets of the "development project"?

It was a blueprint for national political-economic development and it had a geopolitical purpose which was to promote capitalism over communism globally.

What did Escobar say shaped the development discourse?

Cold War. Capitalism vs Communism. US economic interest. Fear of overpopulation. Faith that science/technology were the tools for development. Patriarchy and ethnocentrism (indigenous had to modernize).

According to Escobar, why was development discourse so powerful?

Because it presents itself as universal and natural and taken as so. So the western way of development was taken as the way forward and the indigenous cultural and previous ways were lost in the process. It set the terms and "layed down the law" of development

According to Escobar, who were defined as the experts in this discourse?

The first world countries that were previously developed. Seen as models. The esteem scholars of science and technology in the first world countries were deemed experts for the developing countries to listen to.

What are the 5 stages in Rostow's theory?

1. The traditional Society

2.The preconditions for Take-off

3.The take-off

4.The drive to maturity

5.The age of high mass consumption

Briefly describe The traditional Society

Modern technology/science are not regularly and systematically employed. Spend most of energy on farming. Believe everything up to fate. No centralized, national state institutions.

Briefly describe The preconditions for Take-off

Cultural changes. State plays a key role. Come about through contact with advanced countries. Economic progress comes to be seen as necessary and good. Modern education with a focus on science and entrepreneurial spirit. Emergence of entrepreneurs. Establishment of a banking system. Manufacturing begins to develop. Construction of a centralized, national state begins.

Briefly describe The take-off

Obstacles to steady growth are overcome. New industries expand. New class of entrepreneurs expands. New technologies spread. Modernization of agriculture, Steady rate of growth.

Briefly describe The drive to maturity

Move into new industries. Modern technology extends throughout the economy. About 60 years after take-off begins.

Briefly describe The age of high mass consumption

Leading sectors shift toward durable consumer goods and services. Income per Capita increases so that the population is able to consume more than just basic needs. Urban societies. Significant formal sector employment(documented employment). Functions of the state begin to expand to provide social services. Countries have changed on a political social and economical level.

What is ISI?

Import Substitution Industrialization. Policy is to tariff imported goods that compete with the developing country's main production goods until the country is able to compete on a global scale with foreign producers. Subsidies to domestic producers. Import capital goods. Primary ISI = move away from import manufactured goods to producing CPG. Secondary ISI = start producing consumer durable goods (cars, steel, capital goods).

What were the Dependency perspective's critiques of Modernization theory?

Fails to consider the economic relationship between the core and the periphery. Critiqued the viewpoint that industrialization will solve all development-related issues. Following the USA/Europe path to industrialization will not help us understand the underdevelopment of the periphery. Need to understand the countries own social, economic history especially with respect to its Colonial past. Cannot overlook the history of the periphery country.

According to McMichael, how is the "globalization project" different from the "development project"?

Development project

-Definition of development - "nationally managed economic growth"

-Development is a national project

-Characterized by economic nationalism

-Involved putting up protections within markets that obstructed the flow of goods/money across borders.

-As well as obstructed activities of transnational corporations

Globalization Project

-Definition of development - "participation in the world market"

-Global focus of development. Each country finds its niche in the world economy.

-New way to analyze economic growth

What is "Green Neoliberalism"?

Goldman- The WB's response to the social and environmental critiques of its projects by reinventing itself with a new discursive framework.

How does Green Neoliberalism get embedded in local institutions and become the hegemonic understanding of sustainable development?

WB has trained professionals who teach Green Neoliberalism in institutes in their home countries. Universities and policymakers learn from the workshops/institutions and implement them locally.

Becomes hegemonic when the ideas become ingrained into these institutions. Employee exchange program

Key Characteristics of Modernization Theory?

Adopting scientific methods and Western methods to develop into a more civilized society

Focused on urbanization and industry

Linear path to development along a continuum

Cultural, social, economic shifts

When did Keynesian economic ideas come to shape policymaking?

1930s, post-WWI &GD

What were the different state-market models described in the film, Battle of Ideas?

Britain: nationalization, central planning, welfare state, making industries public

Germany: social market economy, leaving economy at will of market

India: deep faith in science/tech/industry, central development planning, model for planning

US: Keynesian with free market to neoliberalism in the 80s under Reagan

What does Frank mean when he says that the core countries may have been undeveloped but were never underdeveloped?

Undevelopment= development has not begun, the initial stage on the continuum

Underdeveloped= actively produced state of development caused by the exploitation of that economy

Key difference between modernization theory and dependency theory?

Modernization theory focuses on internal factors (banking, social, gov)

Dependency theory focuses on external influences

60s with rising of neomarxis ideas

Underdevelopment to development

Emphasis on power

Hayek economic theory

Reduced government influence. Believed that too much government planning increases government power, which ultimately threatens individual freedoms