IAFS Exam 2

World Bank

Provides long term loans, grants, and aid to developing countries focused on growth/development

International Monetary Fund

International Institution that promotes monetary and financial stability to countries

• Policy advice, monitoring, loans

Exchange Rate

All national currencies related to each other, cost of buying another currency

• 1 USD approx. 0.87 Euro

Reserve Currency

Foreign currency that is held by governments and is used to help them pay off debts or reduce exchange rate risks

De-Dollarization

Trends in gradual erosion of the dollars dominance as a global currency

• Decline in global hegemony of the dollar

BRICS

Brazil, Russia, India, China, South Africa

• Group of countries that were identified in early 2010s that were sen as rising players in global economy/finance

Foreign Direct Investment

Investments made by governments, individuals, and businesses in countries other than their own

• Individual investing in companies of other countries

• Companies expanding/investing in other countries

• Governments buying stocks/bonds of other governments

Race to the Bottom

Phenomenon where states compete for investment by lowering wages, restrictions, and regulations

• Volatile economies, reinforce inequality, poor working conditions

Washington Consensus

Loans come with various conditions for economic reform, including opening global market and cuts to state spending (in response to debt crisis in Latin America)

Trade Deficit

Situation where country imports more than exports

Trade Surplus

Situation where country exports more than imports

Global Value Chain

Sharing of international production with different tasks carried out in different countries

Comparative Advantage

Theory that specialization in producing goods in which countries have relative advantages, and they trade freely, benefits everyone

Tariffs

Tax/duty on imports of goods and paid by importer

Economic Nationalism

Opposition to free trade, support for isolationism, pro-market on domestic economic issues, strong nationalist stance on international negotiations

World Trade Organization

Designed to:

• Settle trade disputes

• Review national policies

• Build capacity of developing economies

• Cooperate with other IOs

Belt and Road Initiative

Chinese funded infrastructure project designed to streamline China’s trade interests

• Construction of roads, railways, ports, airports to reduce trade costs

Permissive Consensus

Politicians/elites tend to benefit from globalization, citizens trusted leaders to manage policies/institutions

Immigration

“Import” of migrants into a place

Emigration

“Export” of migrants from a place

Contact Theory

Those who live in close proximity to migrant communities tend to be least concerned about them, reduces fear through exposure

Group Threat Theory

Greater migration has been linked to rise in nativism, migration induces fear through perceived threat and competition

Push Factors

Characteristics of the origin that might force somebody to migrate from there

• War/violence, climate change, economic collapse, social/political prosecution

Pull Factors

Characteristics of destination that might entice somebody to migrate there

• Economic opportunities, political freedom/acceptance, cultural

Brain Drain

Loss of human capital to elsewhere

Brain Gain

Gain of human capital from elsewhere

Nativism

Promoting or protecting interests of native-born people over immigrants, includes opposition to immigration

Syrian Refugee Crisis

Result of violent government crackdown on public demonstrations, lead to civil war that caused millions to flee Syria

Ukrainian Refugee Crisis

Estimated 5.7 million refugees displaced as result of conflict with Russia, largest crisis since WWII

Rohingya Crisis

Government of Myanmar launched genocide against Rohingya, nearly 1.5 million had fled to neighboring countries

Modernization Theory

Assumptions: socio-economic development proceeds in step-wise sequence and is similar for most societies and is caused. by domestic factors, not reversible

• Traditional: agriculture, few tech advances, local/regional focus

• Preconditions to take-off: education leads to progress, regional/international interests

• Take-off: industrialization, sustained economic growth, key industries

• Drive to maturity: few to many industries, need for skilled workforce, tech advances, improved living

• Age of high mass consumption: increased consumption/per capita income, services/welfare expansion

Gun, Germs, and Steel

Book that argued that Eurasian dominance is due to favorable environmental conditions

• East-West axis of Eurasia

• Domesticable plants/animals

• Moderate climate and geography

Geographic Determinism

Idea that geography is unchangeable and humans have no impact on development outcomes

Inclusive Institutions

Both political and economic

• Democracy, freedom of speech/assembly

• Property rights, constrained state, accountability

Neo-Europe

Colonies designed for resettlement and replicating Europe

• Inclusive political/economic institutions, innovation/investment, development

Dependency Theory

Global South has grown dependent on global marks and on the GN for development

• Leaves them in perpetual cycles of growth and collapse

Resource Curse

Dependence on a single natural resource for economic growth can leave state dependent on global demand for resource

• Creates boom and bust in economic growth

• Can lead to violence, conflict, corruption, rentier states

Rentier States

State that derives all or substantial portion of national revenue from economic rent paid by foreign individuals, concerns or governments

• Ex. oil-rich states

• Receive income without an increase in productivity of domestic economy

Health Nationalism

Governments prioritize domestic populations and national borders during global crises

COVID-19

By February 2020, disease spread from China to most of the world

• GN and Latin America hit the hardest due to higher populations, democracies

Health Dependency

Much of developing world is dependent on Global North to receive resources to combat health crises

• Red Cross, Doctors without Borders

Life Expectancy

Number of years an individual or group of people can be expected to live based on health care, nutrition, disease, gender, genetics, and economy

Infant Mortality

Measure of the quality of health care and nutrition, per capita death rate of children under one

• A society that cannot ensure health of newborns/mothers has deeper problems

World Health Organization

Coordinates response to strategies to diseases, monitors data/trends, advises states on how to approach situations

Environmentalism

Encourages deeper understanding of impact of human actions on the environment

• Includes political, economic, ethical dimensions

Post-Materialism

Process by which societies evolve from economic debates to quality of life concerns

• Environment, self-expression, individualism

Green Growth

New strategies of development and prioritizes economic growth that is also environmentally friendly

Kyoto Protocol (1997)

Committed states to reducing GHG emissions, yet was ineffective

• Put onus for reduction on developed countries

• No clear long term goal

Paris Agreement (2015)

Set temperature ceiling for planet and gave all states flexibility to set own specific goals to reach whole goal

• Non-binding targets, binding reporting/transparency

• Long term goal

Leader-Laggard Dynamic

Tension between most and least active countries on climate change, West invests most into protection, reflecting free-rider problem

Responsibility Attribution

Developing states see global action as a limit on ability to industrialize

• Global North seen as cause of climate mess, so they should fix it

Differential Exposure

Climate change poses existential threat to some states, but not others leading some states to favor global policy

• States with influence on global agenda are more adaptable

Affluence Hypothesis

Idea that environmentalism is a “luxury” that is supported in good economic times

• As wealth increases, people can afford to care for the environment

Threat Response Hypothesis

Support for environmentalism increases as climate change poses a more real threat

Fridays for Future

Perception that global climate action was not proportionate to threat of climate change, green politics had failed and new era of activism was made

Green Backlash

Political, social, and economic resistance to environmental regulations

• Extreme right supporters did not support climate action

Losers of Environmentalism

Costs of green politics not equally distributed and often leads to urban-rural divide in environmentalism

Environmental Chauvinism

Belief that environmentalism should be handled “in house,” nationalism approach to environmental protection

Populism

Turns ordinary people against a corrupt, self-serving elite, “us vs. them” framing

• Molded to fit many ideological goals

• Few of its own principals/policy goals

Inclusive Populism

Variant that casts a broad net for “us” and narrow for “them,” focuses on universal redistribution and symbolic inclusion of marginalized communities

Exclusive Populism

Variant that casts a narrow net for “us,” defines people around specific identity group and defines “them” as elites/ethnic others

Left Behind Class

Right wing populism benefits from voters who feel “left behind” by economic changes

• Deindustrialization, automation, environmentalism

Relative Deprivation

An individual is not as well off as they feel they should be given their expectations of society

• Often tends to be associated with higher populist sentiments

Cultural Backlash

Advanced democracies have become post-materialist, therefore issues/policies that matter to people have become socially liberal/cosmopolitan

Measures of Economic Activity

Size (value of goods/services), structure (balance between goods/industry/services), freedom (extent of government in marketplace), equality (balance of income distribution)