Study Notes: Political and Economic Change and Development

Course Overview and Introduction to Social Welfare

Source Material: These notes are based on Chapter Twelve of "Comparative Government for the AP® Course" by Karen Waples, adapted from "Introducing Comparative Politics, Fifth Edition" by Stephen Orvis and Carol Ann Drogus.
Hallmarks of Advanced Democracies: A defining characteristic of advanced democratic states is the implementation of social welfare programs. These programs include: * Financial aid to the impoverished. * Health care services. * Unemployment insurance.
The United Kingdom’s National Health Service (NHS): * Origin: Created following World War II (WWII). * Funding: The majority of the revenue for the NHS is provided directly by the government. * Access: Services are provided without a bill or a deductible, regardless of the individual's ability to pay for the services. * Acclaim: A $2021$ evaluation ranked the NHS as the best health care system globally. It was also prominently celebrated during the opening ceremony of the $2012$ Summer Olympics in London. * Criticisms: Common complaints include long waiting periods for elective surgeries and relatively low salaries for health care professionals.

Section 12.1: Economic Policies

Import Substitution Industrialization (ISI): * Definition: These are protectionist economic policies designed to shelter domestic industries from international competition and minimize foreign influence over specific economic sectors. * Mechanisms: ISI involves enacting high tariffs on imported goods and providing government incentives to stimulate the growth of domestic manufacturing capabilities.
Neoliberal Policies and Ideology: * Neoliberalism: An economic ideology that prioritizes free-market principles and the reduction of trade barriers. * Structural Adjustment Policies: These are specific requirements imposed by international lenders, such as the International Monetary Fund (IMF), on countries receiving financial assistance. Requirements typically include: * Privatization of state-owned companies. * Reductions in tariffs. * The elimination or reduction of subsidies for domestic industries. * Austerity Measures: Significant cuts to social services and government spending in an effort to reduce national debt. These cuts often impact programs for women, children, the elderly, and the poor. * Key Components of Neoliberalism: * Reducing or completely eliminating tariffs. * Privatizing industries that were previously nationalized. * Reducing government subsidies provided to businesses, workers, and consumers. * Deregulating various industries and business sectors. * Encouraging Foreign Direct Investment (FDI).
Drawbacks of Neoliberalism: * Short-term Focus: Critics argue these policies prioritize immediate growth over long-term developmental stability. * Human Capital: Neoliberalism may undermine the development of human capital, defined as the education, skills, training, and other positive attributes people contribute to the economy. * Social and Environmental Impact: Policies can harm vulnerable populations, cause environmental degradation, and lead to urban sprawl. * Inequality: These policies often increase income inequality, which frequently activates social movements in opposition to the liberalization of the economy.
Section 12.1 Critical Thinking Questions: * What are the advantages and drawbacks of economic-liberalization policies? * Why might different economic policies be appropriate for different countries, depending on their level of development?
Section 12.1 Free-Response Question (Comparative Analysis): * A. Define economic-liberalization policy. * B. Describe economic-liberalization policies adopted in two different AP Comparative Government and Politics course countries. * C. Explain how each of the policies described in part B impacted state legitimacy.

Section 12.2: Social Policies

Gender Equity: * Representation: There has been a noticeable increase in the role of women in politics and government worldwide, including in the six AP course countries, though they remain generally underrepresented. * Legislative Quotas: Mexico requires political parties to ensure that $50\%$ of their candidates are female. * Trends: While the education gap between genders is narrowing, workforce participation remains lower for women than for men. Generally, democracies demonstrate a better track record in protecting women’s rights. * Current Pressures: Increasing pressure for childcare access and ongoing controversy surrounding abortion rights.
Figure 12.1: Gender Inequality Index ( $2018$ ): * Most Equality ( $0$ to $0.300$ ): United Kingdom. * Some Equality ( $0.301$ to $0.600$ ): Mexico, Russia, China. * Most Inequality ( $0.601$ to $0.835$ ): Nigeria, Iran.
Social Welfare Categories: * Social Welfare Policies: Tactics intended to reduce poverty and provide essential services like retirement security and healthcare. * Means-tested Programs: Reserved for individuals falling below a specific income threshold. Examples include food subsidies and cash assistance for housing. * Conditional Cash Transfer Programs: Requires recipients to meet certain behavior requirements (e.g., attending school) in addition to income requirements. Example: Prospera in Mexico provided cash to poor families who kept their children in school. * Non-means-tested Programs: Available to all citizens regardless of income. Examples include public education and social insurance (retirement security).
Health-Care Systems: * National Health System (NHS): Financed and operated by the government. * National Health Insurance (NHI): Citizens are required to purchase their own insurance, but the government regulates costs and limits premium prices. * Market-based: Insurance is typically obtained through employment; this system does not guarantee universal coverage.
Section 12.2 Critical Thinking Questions: * To what extent does state stability depend on the ability to provide citizens with social programs? * Is health care a universal right that should be provided to all citizens?
Section 12.2 Free-Response Question (Quantitative Analysis): * Data: Percentage of Mexican Population without Access to Health Services ( $2008$ - $2018$ ): * $2008$ : $38.4\%$ * $2010$ : $29.2\%$ * $2012$ : $21.5\%$ * $2014$ : $18.2\%$ * $2016$ : $15.5\%$ * $2018$ : $16.2\%$ * Questions: * A. Identify the year in which the largest percentage of the Mexican population lacked access to health care. * B. Describe a trend in the percentage of the Mexican population considered vulnerable due to lack of access to health care between $2008$ and $2018$ . * C. Describe a social welfare program in Mexico. * D. Draw a conclusion about how social welfare programs impact poverty rates. * E. Describe a factor, other than social welfare programs, that impacts poverty rates.

Section 12.3: Causes and Effects of Economic Policies

Impact of Industrialization and Globalization: * Transition: Globalization has moved formerly agricultural countries toward industrial development. * Positives: Increases in income levels. * Negatives: The "Race to the Bottom" (where countries lower standards to attract business).
Environmental Concerns: * Third-generation Problems: Global issues impacting the entire planet, such as deforestation and climate change. * Energy and Emissions: Most energy production generates carbon emissions. Developing renewable energy is a primary strategy for mitigation. * China’s Role: China has emerged as a leader in renewables by investing billions, monitoring air quality, and shutting down specific heavy polluters.
Nationalized Resources: * Countries: Mexico, Russia, Nigeria, China, and Iran nationalize natural resources to increase state sovereignty and generate revenue. * Usage of Revenue: States use resource wealth for infrastructure, social programs, or "rainy day" funds. Fuel subsidies are common but can strain budgets. * Private Ownership Comparison: Private ownership often leads to higher efficiency and modernization, but can weaken state sovereignty and increase the wealth gap.
The Rentier State and The Resource Curse: * Rentier State: A state that derives a significant portion of its national revenue from the export of oil or the leasing of resources to foreign entities. Examples: Russia, Nigeria, and Iran. * Characteristics of Rentier States: Generally create more corruption, face conflicts over revenue distribution, and are less likely to rely on citizen income taxes. * Resource Curse: A phenomenon where the abundance of a valuable natural resource results in: * Limited economic diversification. * Dependence on volatile world market prices. * Increased corruption and authoritarianism. * Decreased government responsiveness to citizens. * Recessions caused by spending anticipated (but not yet realized) future revenues. * Increased income inequality.
Section 12.3 Critical Thinking Questions: * What policies can states adopt to maintain economic growth while protecting the environment? * What are some of the reasons why some rentier states do not create more policies to diversify their economies?
Section 12.3 Free-Response Question (Conceptual Analysis): * A. Define rentier state. * B. Explain how a rentier state could improve economic growth. * C. Explain how a country's status as a rentier state impacts legitimacy. * D. Explain why having an abundant natural resource can negatively impact a state's economy.