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- - Adam Smith
- o Held Classical economic view; free market and invisible hand o Smith held that people acting in their own interests will cause the market to self-regulate supply and demand.
- - Rostow
- o Early modernization theory; society, preconditions, takeoff, drive to society, happiness o This idea explained why some “backward†countries, such as in Africa, failed to modernize: they didn’t even fulfill the preconditions.
- - André Gunder Frank
- o Early dependency theory: periphery countries would never fully develop; autarky is the solution. This model is extremely difficult to follow, since autarky is relatively impossible. o Latin America attempts some sort of this, through their ISI (as in, not importing so many goods).
- - Karl Polanyi
- o Society has to be able to push back against the free market, and the state should make some regulations o Social dislocations (poverty, unemployment, unsafe workplace) will provoke the people, which is a good thing in that it will lead to more government regulation.
- - Triple alliance
- o Revised dependency: alliance between the state, multinational corporations, and local elites to promote economic development; Peter Evans; interdependence of parties for growth, since local elites need MNCs for investment, MNCs need local elites for local context, state acts as gatekeeper plus manages relationship with local elites; LA; revised Dependency theory (shows a way that a periphery country can develop (dependent development), though only to semi-periphery) o Started in Brazil, by a man who later became the president.
- - Pluralism
- o When a state has multiple different organizations that represent various interests, it has pluralism; pluralism can be economic, political, or social o Economic pluralism can be seen in a diversity of business types, political pluralism could be with groups representing political interests, while social pluralism would include social organizations like religious groups and sports teams.
- - Totalitarian vs. Authoritarian Regime
- o Though both regimes place a single person (maybe with small group of elites) in power, totalitarianism give the people no choice of leader, no pluralism, and a guiding utopian ideology; authoritarianism (started by Juan Linz) has economic and social pluralism, no guiding ideology, and the leader will act very predictably o The USSR under Stalin, Italy’s fascism, and Germany’s Nazism were all totalitarian regimes. In Latin America, many regimes were bureaucratic-authoritarian, where there wasn’t a single leader, but a bureaucracy.
- - Neo-Patrimonial Regime
- o Leaders are elected to office, then leaders takes resources from those out of favor and gives to those in favor; reliance on patronage: right to rule is invested in person, not office (right comes from ability to secure patronage) o Some African states are seen as neo-patrimonial, and it is blamed for their lack of development.
- - Theocracy
- o Sovereignty is held by God, but God gives human representatives divine powers by which to rule; bureaucracy and elections, if they exist, are subject to religious authorities; no religious pluralism o Middle East
- - Liberal welfare state
- o Generally low levels of benefits, plus require means testing to show you have the need o USA
- - Social democratic welfare state
- o Everybody gets the benefit o Scandanavia
- - EOI
- o Export-oriented industrialization: industrializing with the intent of selling products overseas o Some LA, because of the debt crisis and changing global economy.
- - Debt-led growth
- o Growth that is financed by incurred debt; the Oil Shock in 1973 (huge influx of money for oil countries, lending in LA because they looked like a good credit risk) led to recycling of petrodollars (needed dollars to pay for oil, plus pay for big modernization projects), leading to debt-led growth (growth that is based on or funded by debt) o LA
- - The “lost decadeâ€
- o 1980s, when the level of depression was greater in Latin America than the Great Depression; stagnant economic development o Poverty and unemployment struck Latin America deeply in the 1980s. Mexico declared bankruptcy and ran to the IMF for aid, which led to a whole string of defaults from other countries.
- - 3 explanations for difficult economic development in Africa
- o (From van de Walle) external: geography; internal: low state capacity, the resource curse
- - The “resource curseâ€
- o Paradox of plenty; Rentier state effect (reliance on natural resource as source of income, plus price determined by international market), anti-modernization effect (no need for diversification, increase in income gap, increased repression), corruption (controlling elites, plus disrupts workings of the market) o Birdsall and Subramanian: Iraq has experienced the resource curse with their abundance of oil.