PS 282 Finals Study Guide.docx

Liberalism

Liberalism

Automatic mechanism for production and distribution of resources, "Invisible hand" of the economy

Mercantilism

Government should be the main actors in the international economy, Government support for national economy is important

Marxist perspective

Unequal distribution of capital between the "core" and the "periphery, Resources form the periphery enrich the core

Liberalism

Privatization, liberalization, and limited regulation

Mercantilism

Trade protectionism (tariffs, quotas, non-tariff barriers) and international regulation

Marxist perspective

Better terms of trade required for periphery countries

Neoliberalism

A more extreme version of liberalism, Market is important, but sometimes we need intervention

Economic crises

Inevitable events, Global finance regime exists to soften the blow of crises and help states recover

Washington Consensus

Emphasis on neoliberalism by Bretton Woods institutions and the US Treasury Department, Privatization, Liberalization, and limited role of government in the economy

Bretton Woods regime

Original goals to rebuild European economies after WWI and prevent a new "Great Depression", Present goal is to manage stability of the global economy

IMF

Pressures for exchange rate manipulation, WB:Gives low interest loans for development projects, WTO:Sets rules of international trade

Most-favored nation principle

Each member-state must treat all other WTO member-states the same

IMF

Executive board, managing director, United States, and other major stakeholders, IMF lending decisions:Programs for countries in need of loans

IMF lending decisions

Informal governance mainly by the United States, Conditionality:Important component of all IMF loans

WTO

USA and EU exercise significant informal power, Dispute settlement mechanism:Member-states initiate a complaint, panel rules on the case

WTO trade negotiations

USA and EU determine negotiation outcomes, All countries must sign new trade agreements

WTO accession of new members

Two-thirds vote of membership required, Consensus rule for all existing member-states to approve new accession

Thomas Friedman's "The Lexus and the Olive Tree"

Lexus symbolizes progress, competitiveness, and market power, Olive Tree symbolizes tradition, identity, roots

Joseph Stiglitz's "Globalization and Its Discontents Revisited"

Critiques BWI policy outcomes, Winners:economic elites in industrialized countries, Losers:economic elites in developing countries

IMF and WB decisions

Skewed towards neoliberalism, Impact on countries:Forced opening of industries and national markets to global competition

Inflation Reduction Act and CHIPS Act

Support for clean energy and microchip manufacturing, Compatible with Mercantilism

Georgieva's prediction

Era of globalization ending, Fragmentation reduces economic growth opportunities for developing countries

Sustainable Development Agenda

17 goals adopted in 2015, Inspired by Millennium Development Goals

Milanovic's global trends

Global inequality decreased post-Cold War, Economic inequality increasing in many countries

Ibrahim's view on Africa's economic underdevelopment

Colonial legacy, Arbitrary borders, Extractive colonial economic projects

Ibrahim's suggestions for Africa's prosperity

More economic integration, Representation in global institutions, Support from Western countries

Sustainable Development

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs (Brundtland Commission, 1987)

Precautionary Principle

In the absence of conclusive scientific evidence that a substance is harmful, individual governments decide whether to allow its use or not

Controversy over Genetically Modified Organisms (GMOs)

Confrontation between the US and the European Union regarding acceptance and import of GMOs

Climate Change Controversy

Debate on causes - human action leading to increased carbon emissions vs. natural temperature pattern changes

Paris Agreement

Aims to limit global temperature rise to 2°C above pre-industrial levels, with more ambitious pledges from industrialized countries

UN Goals

Maintain peace, develop friendly relations, promote cooperation, and harmonize actions among nations

Collective Security

Principle where nations come to aid when a nation-state's security is compromised

Human Rights Regime

Includes Universal Declaration of Human Rights, International Covenants, and Vienna Declaration and Program of Action

Three Generations of Human Rights

First generation - protect individuals from state abuse, second generation - ensure a dignified standard of living, third generation - rights of specific groups

Responsibility to Protect

Duty of the international community to intervene in situations where human protection is needed, legitimized by the UN Security Council or General Assembly