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Developed Democracies
A country with institutionalized democracy and a high level of economic development.
Modern
Characterized as secular, rational, materialistic, technological, and bureaucratic, and placing a greater emphasis on individual freedom than in the past.
Postmodern
Characterized by a set of values that center on "quality of life" considerations and give less attention to material gain.
Integration
A process by which states pool their sovereignty, surrendering some individual powers in exchange for political, economic, or societal benefits.
Devolution
A process of sending down political power to lower levels of government.
Intergovernmental System
A system in which two or more countries cooperate on issues.
Supranational System
An intergovernmental system with its own sovereign powers over member states.
Base
The economic system of a society, made up of technology (the means of production) and class relations between people (the relations of production).
Bourgeoisie
The property-owning class.
Central Committee
The legislature-like party of a communist party.
Central Planning
A communist economic system in which the state explicitly allocates resources by planning what should be produced and in what amounts, the final prices of goods, and where they should be sold.
Communism
1) A political-economic system in which all wealth and property are shared so as to eliminate exploitation, oppression, and, ultimately the need for political institutions such as the state.
2) A political ideology that advocates such a system.
Dialectical Materialism
Process of historical change that is not evolutionary but revolutionary; the existing base and superstructure (thesis) would come into conflict with new technological innovations, generating growing opposition to the existing order (antithesis) - this would culminate in revolution, overthrowing the old base and superstructure (synthesis).
Glasnost
Literally, openness; the policy of political liberalization implemented in the Soviet Union in the late 1980s.
Nomenklatura
Politically sensitive or influential jobs in the state, society, or economy that were staffed by people chosen or approved by the Communist Party.
Party-State
A political system in which power flows directly from the ruling political party (usually a communist party) to the state, bypassing government structures.
Perestroika
Literally, restructuring; the policy of political and economic liberalization implemented in the Soviet Union in the late 1980s.
Politburo
The top policy-making and executive body of a communist party.
Proletariat
The working class.
Shock Therapy
A process of rapid marketization.
Superstructure
All noneconomic institutions in a society (e.g., religion, culture, national identity); these ideas and values derive from the base and serve to legitimize the current system of exploitation.
Vanguard of the Proletariat
Lenin's argument that an elite communist party would have to carry out revolution, because as a result of false consciousness, historical conditions would not automatically lead to capitalism's demise.
Colonialism
An imperialist system of physically occupying a foreign territory using military force, businesses, or settlers.
Developing Countries
Lower and middle income countries.
Empire
A single political authority that has under its sovereignty a large number of external regions or territories and different peoples.
Export-Oriented Industrialization
A mercantilist strategy for economic growth in which a country seeks out technologies and develops industries focused specifically on the export market.
Imperialism
A system in which a state extends its power to directly control territory, resources, and people beyond its borders.
Import Substitution
A mercantilist strategy for economic growth in which a country restricts imports in order to spur demand for locally produced goods.
Informal Economy
A segment of the economy that is not regulated or taxed by the state.
Lower Income Countries
Countries that lack significant economic development or political institutionalization or both; also known as less-developed countries (LDCs).
Microcredit
A system in which small loans are channeled to the poor through borrowing groups whose members jointly take responsibility for repayment.
Middle Income Countries
Historically less-developed countries that have experienced significant economic growth and democratization; also known as newly industrializing countries (NICs).
Middle Income Trap
A situation where countries experience economic growth but are unable to develop at a speed necessary to catch up with developed countries.
Neocolonialism
An indirect form of imperialism in which powerful countries overly influence the economies of less-developed countries.
Washington Consensus
A policy of economic liberalization adopted in exchange for financial support from liberal international organizations; typically includes privatizing state-run firms, ending subsidies, reducing tariff barriers, shrinking the size of the state, and welcoming foreign investment.
Bretton Woods System
An economic regime that manages international economic relations; this includes the International Monetary Fund (IMF), the World Bank, and the World Trade Organization (WTO).
Foreign Direct Investment (FDI)
The purchase of assets in a country by a foreign firm.
Globalization
The process of expanding and intensifying linkages between states, societies, and economies.
Intergovernmental Organization (IGO)
Group created by states to serve certain policy ends.
International Regime
The fundamental rules and norms that link states together and shape their relationships to one another, usually regarding some specific issues (such as greenhouse gases or trade).
Multinational Corporation (MNC)
Firm that produces, distributes, and markets its goods or services in more than one country.
Nongovernmental Organization (NGO)
A national or international group, independent of any state, that pursues policy objectives and fosters public participation.
North American Free Trade Agreement (NAFTA)
An agreement between Canada, Mexico, and the United States that liberalizes trade between the three countries.
Offshore Outsourcing
A process by which a firm moves some of its work to a secondary business outside the home country that can do the work more efficiently or cheaply.
Trans-Pacific Partnership (TPP)
Proposed agreement among twelve countries to liberalize trade though reduced tariffs and common regulations. Abandoned by the United States in 2017.
Human Development Index (HDI)
A measure that considers the output of wealth by looking at the overall well-being of society.
Gross Domestic Product (GDP)
Total market value of all goods and services produced by a country in a year.
GINI Index
The amount of income inequality in a society.
Institutionalized Liberal Democracy
Democracy rooted in the idea of liberalism, emphasizing individual freedoms.
Post-Industrialism
Shift from industry to services.
Welfare State
The state's provision of public benefits, such as education, health care, and transportation.
False Consciousness
Failure to understand the nature of one's exploitation; essentially amounts to "buying into" the superstructure.
Mao Zedong
Leader of the communist revolution in China.
Joseph Stalin
Succeeded Lenin as leader of the Soviet Union; embarked on rapid industrialization of the country, modifying Marxism to argue that socialism could be built within just a single country.
Marketization
Eliminating central planning and allowing the market to resurface naturally.
Privatization
Economic assets sold to private buyers.
Dependent Development
Economic organization under imperialism impeded domestic development in the countries. Suited the needs of imperialist power.
State Autonomy
Ability to act independently of public and foreign actors.
State Capacity
Ability to fulfill basic policy tasks.