GVPT 282: Midterm One

During the Cold War, these were countries that were neither aligned with NATO nor the Communist Block, often newly independent nations in Africa, Asia, and Latin America

What are the Third World countries?

During the Cold War, these were countries aligned with NATO and capitalist economies, including the United States, Western European nations, and Japan

What are First World Countries?

During the Cold War, these were countries aligned with the Communist Bloc, including the Soviet Union and Eastern European countries

What is the Second World?

This organization includes Brazil, Russia, India, China, South Africa, and more

What is BRICS+?

This refers to countries that havent reached “developed” but have surpass being stuck. Examples include Mexico and the Philippines.

What are newly industrialized countries?

According to Sen, human _ is needed for development?

freedoms

From Sen, these are five distinct types of freedom that foster development

What are Instrumental Freedoms?

Regarding Sen and Development: _ freedoms act as both ends and means of development

Instrumental

Sen and Instrumental Freedoms: The ability to participate in a government, have rights such as free speech and elections

What is Sen’s Political Freedoms?

Sen and Instrumental Freedoms: The opportunity for individuals to utilize economic resources.

What are Sen’s Economic Freedoms?

Sen and Instrumental Freedoms: The arrangements for education, healthcare, and other services

What are Sen’s Social Freedoms?

From Sen, this is one of the five freedoms. To interact and deal with others under conditions of openness and clarity

What are Sen’s Transparency Freedoms?

From Sen, this instrumental freedom sets up safety nets and institutional protection, ensuring that individuals wont fall in deprivation

What are Sen’s Protective Freedoms?

Collier: This is the _ trap, cycle of economic conditions making a country prone to civil war, which influences more issues

conflict

Collier: This is the _ trap, the discovery of resources leads to corruption, diseases, and conflicts

resource

Collier: This is the _ trap, a country lacking access to the sea and is surrounded by neighbors with poor infrastructure

landlocked

Collier: this is the _ trap, small nation unable to reform economy cause of weak insitutions and weak investments

bad governance

This is a measurement of development: Looks at income inequality within a population, 0 means complete equality, while 1-100 means a range of inequality

What is the Gini Coefficent?

This is a measurement of development, looking at life expectancy, education, and per capita income indicators.

What is the Human Development Index?

These are the three components of the HDI:

life expectancy, education, and income.

This is a measure of development: looking into the various depivations in health, education, and living standards. Providing a fuller picture of poverty

What is the Multidimensional Poverty Index?

Economic measures of development have limitations because they don’t take into account _ freedoms.

human

From Collier: The _ _ referrs to the world’s poorest people, extreme poverty and lacking access to basic needs and opportunities

Bottom billion

Collier: The prerequisite to reducing poverty is _ growth through stable political environment and good governance

economic

Collier: Development _ is when aid agencies prefer glamour postings over the bottom billion

Biz

Collier: Development _ is when celebrities generate attention for moral images

Buzz

This is where one nation assumes control over others; involves settlement or extractions

What is Colonialism?

This is a nation leveraging political or economic control over another

What is Imperialism?

This is a home country in relation to its colonies.

What is a Metropole?

This is a type of colonization where it was established primarily as a place for people from Europe to settle; it usually involved destruction of indigenous cultures and populations

What is Settler Colonialism?

This is a type of colonization that was established primarily to extract abundant natural resources.

What is Extractive Colonialism?

This is the political institutions European colonizers established and then left behind perpetuated certain economic and social conditions

What is Path Dependency?

The legacy of _ colonization is associated with oppression of indigenous populations, relatively stable transitions from colonial to post-colonial governance.

settlement

The legacy of _ colonization left colonies impoverished and weakened due to disruptions of their systems of governance, having human and natural resources exploited, resulting in authoritarian leaders taking power in unstable transitions

Extractive

After the Spanish-American war, _ acquired the Philippines, Cuba, and Puerto Rico. Showing off imperialism

the United States

The _ Revolution influenced colonial expansion

Industrial

The _ _ _ _ involved colonizers controlling production of goods. Resources from colonies were brought back to the homeland. Sold back to colonies as expensive manufactured goods

What is the colonial division of labor?

This is a system that allowed Western Powers to administer former territories of the Ottoman Empire and German colonies, preparing them for self-governance.

What is the mandate system?

This policy from President Truman was designed to make American scientific advances and industrial progress available for the growth and improvement of underdeveloped areas.

What is the Point Four Program?

Truman’s point four program is regarded as the first development project because..

First global U.S. foreign aid program post WWII

While the point four program seems to help the world’s poor, the underlying motivations seek to main access to _ while establishing global allies to counter the _

natural resource, soviet union

This theory of development states that developing nations should adopt modern cultural values and insitutions to achieve economic progress

What is the Modernization Theory?

Modernization theory believes that developing nations have to acquire…

modern cultural, political, and economic institutions

Modernization theory is consistent with the idea of the development…

Ladder

This Parson Pattern Variable states that roles and statuses are based on non-achievable attributes such as sex, age, etc..

What is ascription from traditional societies?

This Parson Pattern Variable states that individuals are motivated by what is best for their collective unit: family, group, community

What is the collective orientation of traditional societies?

This Parson Pattern Variable states that an individual’s role and status are based on their merit, qualifications, and performance

What is achievement of modern societies?

This Parson Pattern Variable states that individuals are primarily driven by private self-interest.

What is self-orientation of modern societies?

From Parson Pattern Variables: Traditional societies value _ and _

Ascription and Collective Orientation

From Parson Pattern Variables: Modern societies value _ and _

Achievement and Self-Orientation

Walt Rostow created five broad stages that states pass through to become modern…

High mass consumption societies

This theory of development focuses on the relationship between core and peripheral states

What is Dependency Theory?

Within dependency theory, the reason why peripheral/ developing nations are stuck in poverty is that they depend on…

trade with core nations

The dependency theory coincides with the _ _ hypothesis: the exports of peripheral nations decline while imports of core nations increase

Pervish Singer

The dependency theory advocates for developing countries to seek economic _ and to delink from the _ economy

self-sufficiency; global

Dependency theory looks at _ factors

external

Modernization theory looks at _ factors

internal

This is government ownership of strategically important industries, putting in investments

What is Statism?

Statism is not communism because the government does not fully own the business; statism _ enterpise

guides

The two development models that came from statism is _ _ industrialization and _ -oriented industrialization

import-substitution, export

The development model from principles of statism, focusing on reducing foreign dependency and building domestic products

What is import-substitution industrialization?

ISI incorporated _ policies, economic decisions made by a government, usually taxation, government, and subsidies

Fiscal

ISI: Governments gave a substantial amount of money to infant industries. This is known as _

subsides

ISI used _ policies, which involves regulating the economy’s money supply, managing exchange rates, and setting interest rates

monetary

ISI: A main policy tool to reduce reliance on foreign goods was to impose _

tariffs on imports.

ISI was mainly used in _ in the 20th century

Latin America

ISI: Since Latin American countries want to build up domestic manufacturing, they started uses _ from international finanical markets

loans

A main reason why the Latin American debt crisis happened was because the U.S. Federal Reserve raised _

global interest rates, the cost of loans increases, debt became unpayable

This model of development, having principles of statism, focused on manufacturing for exporting

What is Export-Oriented Industrialization?

EOI was similar to ISI because they wanted to protect…

domestic industries

For EOI to build there domestic industries, countries established…

research institutes, building workforce

EOI was mainly used by the four

Asian Tigers: Hong Kong, Singapore, South Korea, and Taiwan.

The Asian Financial Crisis, proponents of neoliberalism blamed..

poor governance and too much state intervention

The Asian Financial Crisis, critics of neoliberalism highlighted the dangers of

financial liberalization and speculation.

This is the practice of engaging in risky financial transactions in an attempt to profit from short-term fluctuations

What is speculation?

In the context of global development, speculation involves…

foreign investors giving money into developing markets for short-term profits

With speculation, if investors become nervous about the market, they can..

rapidily pull their money out causing market instability.

Speculation was a primary trigger for the _ _ _

Asian Financial Crisis

This term has its origins when economists and policymakers in DC outlined 10 policies to address Latin American debt crisis

The Washington Consensus

Within the Washington Consensus, policymakers imposed _, making loans to governments in exchange for policy reforms

conditionality

Conditionality promoted _ to correct ISI

neoliberalism

This refers to the 20th century re-emergence of 19th century ideas

What is neoliberalism?

This is an economic philosophy, rooted in the works of Adam Smith. Essentially, freedom from government interference in the economy

What is neo-liberalism?

Within neoliberalism: global trade should be organized by _ _, meaning states should specialize in producing goods they can manufacture most efficiently

comparative advantage

These are economic and political reforms- such as cutting government spending, eliminating domestic subsidies, and removing trade barriers

What is structural adjustment programs? [SAP]

_ was introduced as a direct corrective response to the collapse of the ISI model

Structural Adjustment Programs (SAPs)

The Washington Consensus used _ to force indebted nations to restructure their economies

SAPS

The _ originated from 1944. Where 44 allied nations met to design the post-WWII global economic architecture

Bretton Woods Conference

The Bretton Woods institution: the countries that put in the most money get the most

voting power

The primary goal of the Bretton Woods Conference was to regulate the

international monetary, preventing economic nationalism

The Bretton Woods Conference resulted in the creation of two organizations that promoted open markets and coordination of global economic affairs

the International Monetary Fund (IMF) and the World Bank.

The _ focuses on global economic development and poverty reduction

World Bank

Before the World Bank focused on large infrastructure projects, they now derisked, providing financial guarantees to absorb…

potential losses in developing countries

The World Bank: Decision-making is based on the…

amount of capital stock each member contributes

The _ _ _ was established to oversee the international monetary system and manage currency relations between states

International Monetary Fund (IMF)

The _ _ ended the direct convertibility of US dollar to gold, ushered freelt floating exchange rates. Ended the Bretton Woods system

Nixon Shock

Originally, the Bretton Woods conference wanted to create a formal international trade organization. It failed, resulting in a…

General Agreement on Tariffs and Trade (GATT)

Within GATT, a single objection could..

block the implementation of a trade agreement

GATT enshrined the principles of trade liberalization and …

Most-Favored-Nation Principle. Also became World Trade Organization

Most-Favored-Nation Principle means that any trade advantage or tariffs reduction granted to one member…

must be extended to all other members.