Glossary - Poli-Sci

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COLOUR CODE KEY

Foundations of Political Economy

Global Economy & Development

Capitalism & Economic Ideologies

Socialism & Alternative Systems

Welfare & Social Policy

State, Resources & Economic Power

Political Economy

A branch of the social sciences that studies the relationships between markets and the state.

Economics

The study of the theory and practice of the production, distribution, and consumption of goods and services.

Markets

The arenas within which goods and services are bought and sold, with prices determined mainly by supply and demand.

Economic System

The interactions and institutions through which a society manages production, distribution and consumption, involving different degrees of interaction between governments and markets.

Free Trade

The reduction or removal of barriers to trade, creating an open and competitive marketplace, either between two countries or among three or more.

Development

The improvement of the economic and social well-being of peoples, communities or states.

Often used only in the context of poorer states.

Dependency Theory

A perspective based on the argument that resources flow from a periphery of poor states to a core of wealthy states, creating political and economic dependency.

Fair Trade

The idea that producers in poorer countries should earn a bigger share of the profits from the sale of their commodities and be paid a fair price for their work.

Global Financial Crisis

The crisis sparked in 2007 by financial deregulation and speculation in the United States, which spread quickly to Europe.

Capitalism

An economic principle based on leaving as many decisions as possible on production, distribution and prices to the free market.

Night-Watchman State

One which performs limited functions, such as maintaining law and order, providing national defence and enforcing contracts.

Neoliberalism

An economic philosophy representing a revival of classic liberalism that has been adopted by conservatives in many democracies since the 1980s.

Class Theory

A theory asserting that the class hierarchy (determined by the place of individuals in the production process) explains much about political consciousness.

Communism

An ideological position which suggests that a class war will lead to power and property being held in common, with the state withering away.

State Socialism

The political system found in ‘communist’ states, involving wholesale centralisation of political and economic control.

Command Economy

An economic system in which all decisions about production, supply and costs are made by government planners.

Welfare Economics

The branch of economics that focuses on the effect of the allocation of goods and services on overall social welfare.

Convergence Thesis

The idea that the political economies of high-income economies are adopting a common format based on a liberal, pro-market response while also restraining welfare spending and encouraging policies to expand the workforce.

Welfare State

One that makes provision through the law for those in need, such as the unemployed, the poor, the unwell, and the elderly.

Social Security

A collective term for welfare programmes targeted at people with inadequate income or no income.

Resource Curse

A phenomenon in which a state that is well endowed in a particular natural resource, or a limited selection of resources, experiences lower economic growth thanks to unbalanced policy, extensive corruption and internal conflict.

State Capitalism

A system in which the state wields a high degree of control over the economy, taking responsibility for many of the functions and activities that would be left (in a capitalist system) to the free market.

Rent-Seeking

The use of a resource that results in the transfer of wealth, rather than the creation of new wealth or benefits to society.

Rentier State

One which earns most or all of its national revenues from exporting raw materials or leasing natural resources to foreign companies.