Waples/Comparative Government and Politics 1e - Ch 12

Neoliberalism

An economic ideology favoring policies that support the free market and reduce trade barriers.

Protectionist economic policy

A policy designed to protect domestic industry and reduce foreign influence on sectors of the economy.

Import substitution industrialization (ISI)

Enacting high tariffs and providing incentives to encourage the growth of domestic manufacturing.

Structural adjustment program (SAP)

Requirements for receiving assistance from international lenders (such as the IMF), including the privatization of state-owned companies, reducing tariffs, and reducing subsidies for domestic industries.

Austerity measures

Raising taxes and/or cutting spending in an effort to reduce the deficit and the national debt. Measures may entail cuts to social services, which might include programs to help women, children, the poor, and the elderly, in an effort to reduce government debt.

Human capital

The education, skills, training, and other positive attributes that people bring to the economy.

Rentier state

A state that relies on the export of oil or from the leasing of resources to foreign entities as a significant source of government revenue.

Resource curse

A problem faced by countries that have a valuable and abundant natural resource, which limits diversification of the economy, makes government revenue dependent on the world market, increases opportunities for corruption, and lessens the government's responsiveness to citizens.