9.2 Flashcards
(16 cards)
Neoliberalism
The economic belief that free-market forces, achieved by minimizing government restrictions on business, will provide the greatest economic benefit to the widest range of people
Modernization Theory
À version of neoliberal development theory that argues that low-income societies develop economically only if they give up their traditional ways and adopt modern economic institutions, technologies, and cultural values that emphasize savings and productive investment
Dependency Theories
Marxist theories of economic development that argue that the poverty of low-income countries stems directly from their exploitation by wealthy countries and by the corporations that are based in wealthy countries
Core (Dependency Theories)
According to dependency theory, core describes the most advanced industrial countries, which take the lion’s share of profits in the world economic system
Periphery (Dependency Theories)
According to dependency theory, periphery describes countries that have a marginal role in the world economy and are thus dependent on the core countries for their trading relationships
Core-Periphery
Dependency theory saw the core-periphery relationship as a downward cycle in which core countries profit at the expense of impoverishing peripheral countries
Such exploitative core-periphery relations became a major force through colonialism
Colonialism
The process whereby Western nations established their rule in parts of the world away from their home territories
Dépendent Development
The theory that poor countries can still develop economically, but only in has shaped by their reliance on the wealthier countries
Global Commodity Chains
Worldwide networks of labour and production processes that extend from raw materials to the final consumer
Semiperiphery
Semi-industrialized, middle-income countries that extract profits in the form fo cheap labour and raw materials from peripheral countries, while at the same time providing labour and raw materials to the core industrial countries
World-Systems Theory
Pioneered by Immanuel Wallerstein, this theory emphasizes the interconnections among countries based on the expansion of a capitalist world economy.
This economy is make up of core, semiperiphery, and periphery countries
World-Systems theory argues that strong governments do not necessarily interfere with economic development, but rather can be key in promoting it
Slowly, once-powerful countries will lose their economic power over others
Global Capitalism
The current transnational phase of capitalism, characterized by global markets, production, and finance; a transnational capitalist class whose business concerns are global rather than national;
Transnational systems of governance (such as the World Trade Organization) promote global business interests
Transnational Capitalist Class
À social class whose economic interest are global rather than national, who share a globalizing perspective and similar lifestyles, and who see themselves as cosmopolitan citizens of the world
According to William Robinson’s theory of global capitalism, the transnational capitalist class is more powerful than national capitalist classes
It operates politically and culturally, as well as economically
Health Relating to High vs Low Income
High income countries are far healthier than low income countries
Low income countries have higher child mortality and lower life expectancy, but these numbers are improving
Why is Education Importnat
- It contributes to economic growth by creating the skilled workforce necessary for high-wage industries
- It can help people escape the cycle of harsh working conditions and poverty, depending on job availability
- It usually leads to people having fewer children, which slows the population growth that contributes to global poverty
Emerging Economies
Developing countries, such as India and Singapore, that over the past 2 or 3 decades have begun to develop a strong industrial base
