Term
Chicago schools of economics |
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Definition
neoliberal approach
goes off keynesian model
state regulation wa |
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Term
| problem with keynesian model |
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Definition
based on idea that gov would shrink,
taxes were too high,
deficit spending hurt US&Euro,
discouraged investments |
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Term
| Changes/Reforms with keynesian model |
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Definition
deregulation (gov. back off so business operate freely and aggressively),
lower gov. spending+taxes,
reuced tarrifs,
institute stable exchange rate |
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| Institute stable exchange rate with Keynesian model |
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Definition
encourage confidence with investments,
open conpetitive markets based on free time |
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Term
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Definition
new global standard developed by john williamson in 1989,
policy prescriptions focused on bringing reforms to developing nations (total of 10) |
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Term
| washington policy prescriptions |
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Definition
1. Open markets for trade and investments
2. Expansion of domestic markets
3. Deregulation
4. Privatization
5. Fiscal and tax reforms |
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Term
| washington consensus is focused on________. |
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Definition
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Term
| washington consensus gets name from |
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Definition
| being emanated out of washington D.C |
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Term
| washington consensus was a market oriented model of econ. developmentand championed for______. |
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Definition
| one model fits all, any country could be applied to and see econ. growth |
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Term
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Definition
| price stability, curve inflation, tighten monitary policy, persue physical austerity, privatization, deregulation |
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Term
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Definition
| the increasing scale, variety, extent, speed, magnitude of Int. cross border, social, econ, military, political, cultural relations/interactions |
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Term
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Definition
economic globalization refers to the intensification and stretching of econ. interrelations cross the globe
(doesn't happen overnight) |
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Term
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Definition
| the world is flat, globalization: 1.0,2.0,3.0 |
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Term
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Definition
1492-1800 Christopher Columbus time,
mercantilism( persue wealth and make money) and colonialism(facilitate trade),
sale of exports while limiting imports and can do so by placing high tarrifs, world was becoming smaller
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Term
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Definition
1800-WWII Pax-britannica,
brits are dominant power est. econ. hegemony,
started global markets,
we start to see globe trade, multinational trade, multinational corporations |
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Term
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Definition
pax Americana,
US dominant econ. Friedman says the world is shrinking from small to tiny because the Internet, individuals can only achieve what corporations used to= bank and shop internationally, major expansion of world GDP |
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Term
| as world GDP has grown so has_______. |
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Definition
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Definition
| states should produce the goods they can most efficiently and cheaply produce at home and sell to the international market. |
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Term
| comparative advantage was put forth by______. |
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Definition
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Term
how will comparative advantage be efficient?
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Definition
| countries would specialize |
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Term
| trade creates a state of_________. |
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Definition
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Term
| what makes small states dependant on large states? |
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Definition
| smaller states sell their natural recources to the larger and wealthier states |
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Term
| not all dependency is bad because the smaller states get_______. |
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Definition
| econ. aid, military protection. |
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Term
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Definition
dependency is both ways, liberals are champoins,
ex. U.s and Mexico is not always one way,
mexico needs us for trade, investments, porous border and we need them for natural gas, oil, cheap labor. |
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Term
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Definition
1. increase states vulnerability
(too dependant of certain resources)
2. higher dependency
(more vulnerable to shifts in world market)
3. comparative advantage
(specialization at expense of other areas)
4. running deficit
(more import than export) |
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Term
| gold standards and money markets |
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Definition
Brits in charge and needed common exchange sys.
workable currency with commodity that everyone can agree on (gold) at a fixed rate |
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Term
| fluxuations- demand and supply |
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Definition
| have to exchange at fixed rate and was a rigid sys. |
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Definition
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Definition
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Definition
greater spending power,
good for consumer and bad for exporter, want to seel but goods are to expensive so it cant compete on the int. market |
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Term
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Definition
exports are cheaper,
everyone will buy on the market but home products are expensive |
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Term
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Definition
| policy of deficit cutting by lowering spending via a reduction |
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Term
| confidence in econ. brings in ____________. |
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Definition
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Term
| ______ is the key to wealth. |
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Definition
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Term
| Neoliberal school argued that you have to get rid of ________ in order to trade. |
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Definition
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Definition
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Definition
nontarrif barriers,
regulates the flow of goods in and out,
restrict import of certain goods, quotas, variety of motivations (don't want to flood market and keep out dangerous goods) |
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Definition
| laws that would limit/ regulate the flow of foreign capital in and out of the country, allows indiv/businesses to invest where they want to, encourage investments in domestic markets, deregulate |
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Term
| applying washington consensus domestically causes__________. |
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Definition
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Term
| __________ countries have econ growth by not using washington consensus policies. |
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Definition
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Term
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Definition
1. US- econ. hemoginy
(encourage countries we have dealings with to follow model)
2. international orgs.
( ex. WTO, promote deregulation of econ)
3. IMF- structural adjustment
( look at where problem is and find solution) |
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Term
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Definition
| international monetary fund |
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Term
| solution under structural adjustments |
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Definition
1. currency devaluation
2. fiscal austerity
3. lowering taxes
4. raising interest rates
5. privatization |
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Term
why aren't all countries rich?
possible problems |
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Definition
1. resources
2. corruption
3. history
4. cultural differences
5. civil conflict |
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Term
| countries are doing something wrong if ______________. |
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Definition
| they are not experiencing econ. growth |
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Term
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Definition
| all countries are bound by the same laws of econ. |
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Term
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Definition
| not all countries are poor because of econ. growth |
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Term
| colonialism (realist POV) |
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Definition
former colonies brought to dependance,
benefited the west because they were already industrialized,
politically underdeveloped, did not come about organically,exploited for resources, relationship of dependancy btw country and west, no chance to build econ. |
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Term
| liberal response of colonialsim |
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Definition
| colonialism has nothing to do with it, countries have been free for decades, if not developed then something else is wrong (corruption or political instablitiy) |
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Term
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Definition
| have exploitation in post colonial period |
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Term
| challenge of underdeveloped states |
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Definition
| have head start over non-developed countries, have to sell natural good/raw materials, do not have machenery, lack capital, sell primary products, natural resources |
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Term
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Definition
| vulnerability to demand market prices |
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Term
| western emulation and its problems |
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Definition
| focus on industrialization, have to start where west is now, owe money to foreign states when borrowing money |
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Term
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Definition
| foreign direct investments |
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Term
| foreign direct investments |
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Definition
| encourage investments in specific industry, can be successful but industry is owned by multinational corps. |
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Term
| relying on FDI relies on ____ class. |
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Definition
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Term
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Definition
| focus on resource that is less competative so there is higher market |
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Term
| having resources can be used to__________. |
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Definition
| provide income for the country and provide products that can be sold |
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Term
| best thing to do with having resources___________. |
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Definition
| take profits from selling these products and invest it into industry and build export econ. |
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Term
| resources can be used against country if ________ and ______ take place. |
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Definition
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Term
| countries relying on natural resources are at the mercy of the market because__________________. |
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Definition
| prices fluctuate causing instability in markets and same can be said about demand sometimes causing econ. to go haywire. |
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Term
| natural resources bad to rely on_________ and _________. |
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Definition
| agriculture and cash crops |
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Term
| what we see when countries depend on natural resources |
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Definition
| higher mortality, higher poverty, malnutrition increases |
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Term
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Definition
having abundance of natural resources which inhibits development in other areas
(overreliance on one or a few resources) |
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Term
| poor governance- authoritarianism |
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Definition
| common in developing states, the leaders which are very strong in a sense they don't have to play by the same rules that we might have to, dont have to consider public opinion, they can make choices that benefit them but hurt the public |
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Term
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Definition
| favoritism where rulers hand out rewards to family and friends to buy support but not letting rewards go to the people |
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Term
| Shaxon's reason for no delvelopment__________. |
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Definition
| should't be blamed on colonialism but blamed on the gov. officials that mismanage wealth and resources |
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Term
| Shaxon- individual, systematic, global |
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Definition
indiv- officials handing out bribes and line own pockets
sys- whole sys. is corrupt and ppl think rules are made to be broken
global- corrupt gov. dealing with foreign govs. and multinational corps |
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Term
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Definition
1. blood diamonds in angola
2. oil in Nigeria
3. Oil in Iraq |
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Term
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Definition
direct relationship btwn exploitation of ones resources and a corresponding decline in manufacturing,
strong export econ. has strong currency with cheap imported goods to flood market hurting domestic manufactures who's goods are more expensive than imports, focus development in ares with minimal employment |
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Term
| commodity price fluctuation |
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Definition
| focus on one resource makes state vulnerable, when price of their goods go down they have no money |
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Term
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Definition
| a country can borrow against the value of their resources to invest in their industries however when commodity price fluctuates and they dont have enough to pay back they are worse off all due to lack of stability |
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Term
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Definition
| looking at a zero sum situation, when govs. take incoming money and making benefits but not letting it trickle down to the general population |
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Term
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Definition
| govs. usually impose taxes to pay for services but when that money is coming in from their exports (because they own them) they dont need to impose taxes, taxes are instramental in modern beuocracies, Louis XIV created central beuacracy and tax sys. |
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Term
| taxes forces transperency because_________. |
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Definition
citizens want to know where their money is going,
creates interdependant relationship btwn leader and ppl. |
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Term
| import substitution industrialization |
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Definition
a strategy for development, led by the state, intended to help developing countries catch up, protectionist policies.
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