Polisci Question 1: Why do some states become economically prosperous while others are intrenched in long term poverty?

To make sure you memorize each question outline and some details

Argument 1

Historical colonialism

Historical colonialism intro sentence (doesn’t have to be exact)

most impoverished countries in the 1960s were states that were products of colonialism. This is defined as being under continuous colonial rule and having a lack of an independent economy and political system. These states were mostly centred in then global south which includes many latin countries. After the 1960s, these countries had lots of optimism for the future of their economy, but the previous colonialism left them unable to persist.

Argument 1: Why were they unable to persist

after independence, many countries in the global south relied on exporting raw materials and importing manufactured goods from developed countries, causing them to be stuck in poverty

Proof to explain this

The Prebisch singer hypothesis

The prebisch singer hypothesis

the idea that over time, the price of newly manufactured goods goes up, while the price of raw materials goes down along with demand. this causes less developed countries to earn less and less for their exports while still have to pay for increasingly expensive imports, putting them at an economic disadvantage

example of 2 countries

Ghana and South Korea:

• when Ghana was newly independent, they overall seemed better economically positioned than South Korea. However due to this hypothesis, Ghana was losing Monet and remained impoverished while south Korea prospered with their exports of manufactured goods.

Argument 2

Structural inequalities

Structural inequalities intro sentence

another argument is the idea that wealth and poverty are created simultaneously through the dependency theory.

The dependency theory

the idea that underdevelopment and impoverishment of the global south is due to the international economy and global capitalism. Argues that the way the global economy is set up favours developed countries as seen in factors such as trade and the role of major corporations. As well, it ties to the Prebisch singer hypothesis.

Where was dependency theory started

dependency theory was started in latin America during the time of the 1960s as well

ex. the role of multinational corporations

During this time, most of the words multinational corporations were owned by countries in the global north, who owned all major assets of countries in the global south. This did not allow the global south to have control over their economies, leading to them being trapped in poverty.

Argument 3

Differences in Development policies

Differences in development policies intro sentence .

Another major factor of why countries in the global south remain trapped in poverty is due to their unsuccessful economic development strategies, of which the developed word had major success in comparison.

2 policies to speak on

Import Subsidizing industrialisation (ISI)

• implemented by the global south

Export Oriented Industrialization (EOI)

• used by the global north

ISI purpose

to make a self-sufficient economy by reducing dependency on manufactured goods

How would they do this? (ISI)

by shifting their focus away from the exporting and manufacturing of raw and manufactured materials and towards industrial materials

Why did ISI not work ?

it was successful short term, but long term it collapsed due to internal factors such as the poor quality of exports and lack of recognition for the national economy and external factors such as rising interest rates and the oil crisis which ultimately caused inflation and a huge debt crisis in the global south

EOS purpose

• this was used mainly by East Asian countries like China, Taiwan, and Korea

• Purpose was to produce goods solely for export rather than domestic use

Why was EOS successful

these countries expanded their economy and were exporting more goods than all of the global south combined and it created larger markets by integrating into the global economy rather than domestic and allowed more competition which increased demand of their manufactured goods.