Development and Spread of Liberal Economies, Laws, and Democracy Flashcards
(18 cards)
What is a Liberal Democracy?
A democratic system of government where individual rights and freedoms are recognized and protected, and political power is limited by the rule of law.
Define Liberal Economy.
A political ideology supporting a market economy, private property in the means of production, and opposing government intervention in the economy.
What theory did Thomas L. Friedman present in his book ‘The Lexus and the Olive Tree’?
‘No two countries that both had McDonald’s had fought a war against each other since each got its McDonald’s.’
What event contradicted Friedman’s theory shortly after the publication of his book?
NATO bombed Yugoslavia, and McDonald’s restaurants in Belgrade were demolished by protesters.
What was Friedman’s argument regarding the bombing of Yugoslavia?
The war ended quickly partly because the Serbian population did not want to lose their place in a global system symbolized by McDonald’s.
What key transition did Russia undergo after 1991?
Transitioned from a centrally planned economy to a liberal economy.
What was the economic situation in the Soviet Union before 1991?
A centrally planned economy with government control over industries, prices, and trade, with no private enterprise.
What was Boris Yeltsin’s ‘shock therapy’?
A policy aimed at rapidly liberalizing the economy in Russia.
What were some successes of Yeltsin’s ‘shock therapy’?
Increased economic liberalization and establishment of market mechanisms.
What were some failures of Yeltsin’s ‘shock therapy’?
High inflation, unemployment, and social unrest.
What economic model did Mao Zedong establish in China?
A centrally planned economy modeled after the Soviet Union.
What major economic policy did Mao implement between 1958 and 1961?
The Great Leap Forward.
What were the consequences of the Great Leap Forward?
Economic disaster and famine, resulting in over 30 million deaths.
What was the Cultural Revolution?
A movement that disrupted the economy through purges of intellectuals and capitalists from 1966 to 1976.
By 1978, what was the economic condition of China?
Economically stagnant with widespread poverty and inefficiency.
How did China gradually introduce economic liberalism?
Under Deng Xiaoping.
How does China’s model of state-managed capitalism differ from the US free-market model?
China maintains significant state control over the economy, unlike the US’s emphasis on minimal government intervention.
Can China’s economic reforms be considered successes or failures?
This is subject to debate, with arguments for both successes in economic growth and failures in social inequality.
