POSC 422: Quiz Show 4 Flashcards

Vocabulary practice flashcards covering POSC 422 Quiz Show 4 on East Asian political economy, developmental states, international crises, and regional cooperation.

What was the main deal behind the San Francisco System?

The U.S. gave Asian allies protection and trade benefits in exchange for their support and military cooperation.

Why did U.S. interests in Asia change after the Cold War?

The U.S. became less focused on stopping communism and more focused on trade and economic competition.

What does weakening U.S. hegemony mean?

The U.S. was still powerful, but it no longer controlled the region's economy and politics as strongly.

What were the Nixon Shocks?

Major U.S. policy changes, including opening relations with China and ending the dollar's link to gold.

What was the purpose of the 1985 Plaza Accord?

To lower the value of the U.S. dollar and make American products more competitive.

Why did trade tensions between the U.S. and Japan increase?

Japanese exports became very successful, and the U.S. pressured Japan to open its markets.

What does 'From Allies to Targets' mean?

Asian countries that the U.S. once supported during the Cold War became targets of American trade pressure.

How did democratization challenge U.S. alliances in Asia?

New voters and leaders questioned U.S. military bases and demanded more independence.

What is authoritarian developmentalism?

A system where a strong government controls major economic decisions to help the country industrialize.

What is an Asian developmental state?

A government that actively guides industries, businesses, and investment to promote growth.

BAIR

Bureaucratic Authoritarian Industrializing Regimes.

Four Asian Tigers

The four rapidly growing economies of South Korea, Taiwan, Hong Kong, and Singapore.

Infant Industry

A new domestic industry that needs govt support before it can compete with established businesses.

Developmental State Industry Support

The use of tariffs, subsidies, and government-backed loans by a state to support domestic businesses.

Mercantilist Development

Using government policies to strengthen domestic industries and the national economy.

Japan's Role in Asian Regional Growth

The expansion of regional economies driven by Japanese companies investing abroad, building factories, and expanding regional trade.

Neoliberal Development Model

An approach that relies mainly on markets, private business, and international trade.

Washington Consensus

Economic reforms promoting privatization, deregulation, and freer trade.

Institutions Promoting the Washington Consensus

The IMF, World Bank, and U.S. Treasury.

Neoliberalism vs. Developmentalism

Neoliberalism relies more on markets; developmentalism gives government a larger economic role.

Asian Financial Crisis Timeframe

1997–1998.

Financial Liberalization

Removing restrictions on banks, foreign investment, and money moving across borders.

Risks of Financial Liberalization

Money can move in and out quickly, creating instability if oversight is weak.

Capital Flight during the Asian Financial Crisis

The rapid withdrawal of money from Asian economies by many investors.

Investor Panic

When many investors withdraw money quickly because they fear losses.

Asian Currencies in the 1997 Crisis

Several national currencies that lost a lot of value, making regional financial problems worse.

IMF Demands during the Asian Financial Crisis

Spending cuts, higher interest rates, tighter lending, and economic reforms required from struggling Asian economies.

Criticisms of IMF Crisis Policies

Arguments by critics that strict IMF measures worsened unemployment and business failures.

Neoliberal Triumphalism

The belief that the U.S. free-market approach was superior to Asia's state-led model.

Crisis-Resistant Asian Economies

Economies with stronger controls over banks and international money flows that were more protected from the 1997 crisis.

Economic Connectedness in Asia

The structural reality revealed by the Asian Financial Crisis that regional economies were connected, allowing financial trouble to spread across borders.

Post-1997 Crisis Cooperation

Regional efforts that grew because countries saw a need to work together to manage future financial crises.

APEC

Asia-Pacific Economic Cooperation, a forum that promotes trade and economic cooperation.

ASEAN Plus Three

A cooperative framework consisting of the ten ASEAN countries working with China, Japan, and South Korea.

End of Bipolarity in Asia

The conclusion of the U.S.–Soviet rivalry, which created more room for regional cooperation.

Multipolarity

An international system featuring several major centers of power rather than only two.

Economic Interdependence

A condition where countries benefit from trade and investment, while conflict can harm both economies, thereby encouraging cooperation.

1997 vs. 2008 Financial Crises (Origins)

A key distinction in origin: the 1997 crisis began in Asia, whereas the 2008 crisis began in the United States.

Causes of the 2008 Global Financial Crisis

Risky mortgages, weak financial regulation, and excessive financial risk-taking.

Post-Cold War Regional Cooperation Drivers

Shared economic interests and reduced ideological rivalry that encouraged countries to work together.

What is regionalization?

When Asian economies become more connected through trade, investment, and business activity.

What is regionalism?

When governments deliberately work together through regional agreements and organizations.

What is the difference between regionalization and regionalism?

Regionalization happens through growing economic connections; regionalism involves organized government cooperation.

What is the ASEAN Regional Forum (ARF)?

A security forum established in 1994 where countries discuss threats, build trust, and try to prevent conflict.

What are the three stages of the ASEAN Regional Forum?

Confidence-building, preventive diplomacy, and conflict management.

What is confidence-building?

Countries communicate and build trust so they are less likely to misunderstand or threaten each other.

What is preventive diplomacy?

Using talks and negotiations to stop disagreements from becoming serious conflicts.

What is cooperative security?

Countries improve security through dialogue, trust, inclusion, and cooperation instead of military threats.

What is the East Asia Summit (EAS)?

A regional meeting that began in 2005 to discuss cooperation and important issues affecting Asia.

Why did the U.S. initially oppose some Asian regional organizations?

The U.S. worried that they might weaken its influence or compete with its existing alliances.

What was the proposed Asian Monetary Fund (AMF)?

A Japanese proposal for regional financial assistance during the Asian Financial Crisis.

What was the East Asian Economic Grouping (EAEG)?

A proposal for Asian countries to cooperate economically without depending on Western countries.

What does fragmentation of U.S. hegemony mean?

The U.S. remained powerful, but other Asian countries gained more economic and political influence.

How did the end of bipolarity change Asia?

The end of U.S.–Soviet rivalry reduced ideological divisions and created more opportunities for cooperation.

Why did trade between Asian countries increase?

Growing investment, production networks, and economic development connected Asian economies more closely.

What are the benefits of international organizations?

They give countries regular opportunities to communicate, establish rules, build trust, and manage disagreements.

What does the 'shadow of the future' mean?

Countries cooperate because they know they will continue dealing with each other in the future.

What were China's three major steps toward regional reintegration?

Improved U.S.–China relations in 1971, market reforms in 1978, and greater regional engagement after the Cold War.

How did China's economic reforms change its regional relationships?

China expanded trade and diplomatic cooperation with other Asian countries.

Why can economic development improve regional peace?

Countries gain more from trade and cooperation, making war more costly and peaceful solutions more attractive.