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Political Economy
the study of how politics and economics relate to one another; how does their relationship affect the balance between individual freedoms and equality (communism, capitalism, etc.).
Markets
interactions between supply and demand; typically seller wants to create a product w/ a high demand, and a buyer wants the best product w/ the lowest price.
Command Economy
a state is heavily involved in the market.
Free Market Liberalism
markets are mostly decentralized.
Property
the ownership of goods or services exchanged in a market (includes property rights and intangible forms of property; music).
Public Goods
the state provides/secures goods that are available for society; equality can be created because no one person/group can monopolize); roads, security, health care, primary education.
Social Expenditures
a state has provisions of public benefits (aka Welfare), where those in need of more care are provided for. Ideally help everyone as a safety net, stimulates the economy, and decreases crime. (unemployed, children, elderly, disabled).
Taxation
countries with large social expenditures have higher tax rates to support (welfare money comes from taxes). taxes come from individuals, businesses, goods, and services.
Money
a medium of exchange that makes transactions easier created and managed by a state to stimulate growth. value comes from a public's trust in a state; legitimacy.
Central Bank
controlled by the government and regulates how much money is flowing through the economy. determine interest rates which influences those of private banks.
Economic Growth and Interest Rates
stimulated when people spend more money via LOW interest rates. HIGH interest rates promote saving.
Inflation
a rise in the general price level above the considered healthy rise (1-4% annual). the value of money decreases from excess spending, so INCREASED IR is the solution.
Hyperinflation
rise is higher than 50% a month for 2+ months in a row.
Deflation
when goods have been prices too low in order for consumers to buy (businesses fail, unemployment up, people spend less). solution to DECREASE IR and give out checks to people.
Regulations
rules for economy due to
Trade
states can manipulate tariffs (can lead to trade wars) and quotas to influence the economy (opponents of regulations will argue competition leads to innovation).
Communism
an ideology that proposes the elimination of private property and decentralized markets (no supply and demand) in order to achieve equality for a population.
Karl Marx
believed there were haves and have-nots; those in power (bourgeois/haves) exploit the proletariat (working-class/have-nots). the superstructure (culture) of a liberal democracy creates a "false consciousness," and revolution would be inevitable once capitalism reached advanced stages.
Fredrick Engels
helped create the "communist manifesto."
True Communism (utopia end goal)
population lives in a state-less world united in equality (no laws, police, armies, flags).
Communism In Practice
the Communist Party holds political power; power usually cemented in a constitution and other orgs. are viewed as hostile towards their ideology and are repressed (no civil society).
Vladamir Lenin
totalitarianism; thought he was the "Vanguard of The Proletariat" (believed people wouldn't just wake up from a false consciousness and required a group to lead; CP).
Nomenklatura
the CP appointed people to influential jobs in the state, society, or economy; head of a NP, university, military, film director for propaganda (led people to appoint for career opportunities besides ideological beliefs). CLIENTELISM except support for an ideology as opposed to a leader.
Communism Structure In Practice
a general secretary serves as chief executive, politburo serves as cabinet, central committee is like legislature, low level members assigned to cells (small orgs.).
Political Economy in USSR
through central planning state controls means of production and directs wealth towards goal of collective equality.
Issues with Central Planning
planning for an entire nation is an overwhelming task, mistakes of oversupply and undersupply can negatively affect various sectors; steel, overemphasis on industrialization leads to neglect of consumer goods, absents of competition --> lack of motivation--> poor products.
Religion in Communism
Marx believed "religion is the opiate of the masses"; people banking on rewards in afterlife kept them suffering in capitalism/ false consciousness. however, while the practice of religions stopped, believing never died out.
Institutions in Communism; Equality
equality was intended by Marx to expand beyond economy (marriage, gender), but in practice did not come about really (women given jobs at work+home, not social equity, just more responsibility).
Difficult to transition from authoritarianism to democratic regime because
-lots of foresight and compromise for separation of powers.-no traditional legitimacy for new regime.-rule of law must be respected by new govt. (everyone respects as opposed to rule by law).-difficult transition from centralization to privatization (how to determine who receives what and at what cost).-not receiving help from democratic nations.
Economic Transformation Post-Communism
transition to privatization/ marketization (forces of supply and demand no longer tied to state central planning). Shock Therapy (immediate change to free-market/democracy/civil society overnight). major FAILURE (unlike China who only changed some market practices, or Poland who got help from western europe).
Shares post Shock Therapy
given to company worker who sold to people at the top of communism (nomenklatura)--> oligarchy (corruption).
Religion Post Communism
never really disappeared, but begins to be practiced publicly again (provided social support during disruption).
The Russia Constitution
(1993) as a new democracy, legislature tried to remove Boris Yeltsin from seat as president, but army backed Yeltsin (tanks fired at Duma members building) and new constitution ratified. emphasizes presidentcial power (sets stage for today).
The Kremlin
the white house of Russia; metonymy of executive power because of president on the grounds (semi-presidential).
Presidential Terms
directly elected to serve two 6 yr terms (changed numerous times under Putin).
Powers of President
-appoint Prime Minister and their cabinet -appoints leaders to 8 federal districts (created to manage different areas; consolidate despite technical asymmetric federalism) -propose/veto bills (unchecked) -issue decrees w/o legislative approval (ex/
FSB/KGB
secret military service like CIA and FBI. Putin used to work as one.
Siloviki
number of people with former position with FSB/military services a part of Putin's inner circle (trained to be loyal).
Powers of Prime Minister
(ALL WITH PRESIDENTS APPROVAL) -supervises ministries uncontrolled by president. -national budget decisions. -proposes legislation.
The Federal Assembly
Russia's legislature; a bicameral parliament. Duma as lower house and Federation Council as upper.
Duma
lower house, most important. members serve 5-year term. more power and people than upper house (approve/deny appointment of Prime Minister, can initiate/accept/reject legislation). historic roots of Tzar trying to appeal to people (though ignored).
Federation Council
upper house, less power ("rubber stamp"). each federal administrative unit gets 2 reps (one selected by regional legislature and the other by federal). main purpose to approve bills.
Rubber Stamp
having a role, but really just doing as told.
The Judiciary; Constitutional Court
members nominated by president and confirmed by federation council. power of both abstract and concrete review (criminal cases, etc.) ex/
Legal Nihilism
a term meaning that the courts really don't matter, and the state will use courts as a tool to target political opposition. (ex/
Presidential Candidates
nominated by parties represented in the Duma.
Independent Candidates
require a minimum of 30,000 signatures in support (really difficult to get on ballet).
Run-Off Election
if candidate during an election doesn't receive majority vote, top 2 candidates compete in a second round to ensure majority. (Putin has won majority every time; fraud?)
Duma Elections
style has changed twice since 1993; first mixed (plurality and proportional), then only proportional, then a return to mixed. ex/
Local Government runs via
Asymmetric Federalism (uneven distribution of power); republics, oblasts, krays, okrugs, federal cities.
Republics
the most powerful, generally rep. non-Russian ethnic groups. have their own constitutions and can specify own language alongside Russian. (ex/
Federal Districts
created to bolster more Kremlin-approved oversight (reducing regional power/autonomy).
Political Parties
come and go often, typically personalized for political elites running for office. not as important as in US for example.
United Russia
created 2001 after Putin's 2000 victory; Putin's party (Unity) and main party of opposition (Fatherland-All Russia) merged to form. since creation always controlled duma seats; dominant party system. Putin now independent, but UR still backs him.
Dominant Party System
unlike one-party system where power of a party is written into constitutions.
Communist Party of The Russian Federation
a remnant of soviet-era ideologies, reached peek in 1995 (post shock therapy was largest, but now less than 15%). leader has come second to Putin since 1996 (helps Putin keep power through facade of true competition).
A Just Russia
A small party in the Russian Duma with a social-democratic orientation.
Liberal Democratic Party of Russia
run on a platform of nationalism, xenophobia, and general western hostility (thinks Putin is soft).
Early Civil Society Groups
extremely weak prior to 1980s and emerged with Glasnost (more freedom). Fan Club of Moscow Soccer team, (1987) maybe first independent group. flourished post 1991.
techniques used by Putin to clamp down on early civil society (especially those critical of Kremlin)
-tax codes -investigations into sources of income -police harassment
Putin clamped down on later civil society via
-(2006) all non-government orgs. need govt. approval. -(2012) if org. receives foreign money, become legally labeled as "foreign agents."
Religion under Putin
basically co-opted orthodox Christianity to drum up nationalism. activism against Kremlin sometimes deemed "extremists"; some musicians jailed for "religious hatred."
Media under Putin
consolidated under pro-Putin umbrella.
State Controlled Media
many news sources under direct state ownership, and many others become indirectly controlled.
Independent News Firms
often in newspaper form because media is government controlled.
Press Freedom Index in Russia
171/180 nations by Reporters Without Borders.
Oligarchs
a few business men (not members of nomenklatura) who took advantage of turbulent economy (especially successful in MEDIA SECTOR).
Yeltsin and Oligarchs
developed close ties bc wanted media to make him look good. was afraid of communist party's rise in Duma and potentially presidential race, and so borrowed $ from them in return to state-owned economic sectors (natural resource industry; oil, gas).
Putin against Oligarchs
NATIONALIZES; quickly worked to take away their power by bringing many assets back to state control (large portion of these firms redistributed to siloviki; CLIENTELISM).
Natural Resources under Putin
initially under Putin Russian economy spiked with these firms under state control, but international investors wary of corruption (Russia attacking sovereign nations--> economic sanctions). gave Putin ECONOMIC LEGITIMACY (improved people's lives, more money, life expectancy increased).
Russia HATES NATO
though not aggressive group (made to DEFEND against communism, but Russia paints them as such). cold war tensions.
Kosovo War (1998-99)
NATO intervened with formerly Yugoslavia in defense of Bonsnia & Kovoso against Serbia; Russia expressed sympathy for serbs due to cultural similarities.
Reasserting Foreign Power by
-getting closer with Iran and China (dealing with sanctions) -formation of the Eurasian Economic Union (Temu E.U.) -annexation of Crimea (strengthened nationalism)
Eurasian Economic Union
romance other soviet republics through this.