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ECONOMIC GEOGRAPHY > MIDTERM 4 > Flashcards

MIDTERM 4 Flashcards

1
Q

State

A

A territory with a population governed by an authority structure (ie. a territorial organization)

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2
Q

Things a government cannot control

A 
Paramilitary groups
Undocumented Migration
Refugee flows
Black Markets
Export Processing zones
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3
Q

Nation

A

Group of people with shared culture, history and ancestry

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4
Q

Nation State

A

Perfect correspondence of state and nation; an ideal which doesn’t actually exist

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5
Q

Plural State

A

State with minority population(s); prone to internal conflict

(ALL STATES)

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6
Q

Hyperglobalists

A

believe the state is irrelevant in global economy (thesis has been more or less rejected)

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7
Q

Evidence to support hyperglobalists

A

increased power of corporations and IFIs

Globalization –> New “borderless world”

State governments no longer control economic activity borders

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8
Q

Rejection of hyperglobalist thesis

A
  • States differ
        • Varying ability of states to control national (or global) economy

    • Who is economically dominant today? Tomorrow?
  • Private firms and markets engage with the state in
    mutually dependent relationships.
  • States are dynamic and always changing
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9
Q

The State, as an “architect” in the economy, serves

6 KEY FUNCTIONS:

A
  1. Ultimate guarantor of economy
  2. Regulator of economic activities
  3. Manager of national economy
  4. Business owner
  5. Investor
  6. Provider of public goods and services
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10
Q

State as the ULTIMATE GUARANTOR of the economy

A
  • deals with financial crises (stabilizing system, bailouts)
  • guarantees national economic instruments (Maintain value of currency and govt bonds )
        • sets interest rates (regulating loan to deposit 
      ratios)
  • secures international economic treaties (international trade and investment agreements)
  • property rights and the rule of law
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11
Q

State as a REGULATOR of the economy

A

Market regulation

Regulating economic flows

Budget spending

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12
Q

State market regulations

A

Labour laws
Contract laws
Anti-Monopoly regulations
Upholding “fairness of the market”

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13
Q

State economic flow Regulations

A

Cross-border flows of trade
Capital
Labour
Workers, Products, Money

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14
Q

State control of budget spending

A

collecting taxes
injecting $ back into the economy
Subsidies

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15
Q

State as a MANAGER OF NATIONAL ECONOMY

A

Creates and maintains policies to sustain or promote economic development.

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16
Q

The state creates and maintains policies to sustain or promote economic development via:

A

Trade Strategies

Tariffs and import quotas

Labelling and safety regulations

Foreign investment FDI strategies

Labour market strategies

Industrial Strategies

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17
Q

How does the government develop labour market strategies

A

Hiring and Firing
Welfare
Wages

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18
Q

Industrial Strategies of the government

A

Subsidies (Canadian government subsidizes oil and gas and agricultural sectors)

Import Quotas

Taxes

Access to raw materials

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19
Q

State as a BUSINESS OWNER

A

State Owned Enterprises (SOEs)

Government-Linked Corporations (GLCs)

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20
Q

State Owned Enterprises (Crown Corporations)

A

Public enterprise directly owned and managed by the state (controlling share, could be <100%)

Examples: CBC, BCHydro

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21
Q

Why would the government own a state enterprise?

A

An ideological belief that state ownership of economic resources is beneficial for the world.

Can be used to maintain cultural institutions

Can be used to take control over environmental issues

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22
Q

Government-Linked Corporation (GLCs)

A

State has direct or indirect stake in profit driven enterprises. (May have partial ownership)

eg. Renault, Fiat, Singapore Airlines

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23
Q

State as an INVESTOR

A

Certain states have become major global investors
through Sovereign Wealth Funds (SWFs)

Capital accumulation

Investments in

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24
Q

Capital Accumulation by:

A

Rich natural resources (eg. oil)
Surplus exports
Budget surpluses

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25
Q

State Investments are made in …

A

Financial services

Real estate

Energy Infrastructure

Industry

Resource extraction

Telecommunications

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26
Q

State as PROVIDER OF GOODS AND SERVICES

A
  • Services fundamental to national well being
  • Transport, education, health, infrastructure,
    public housing
  • State often largest employer of a nation
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27
Q

Public Goods

A

Services fundamental to national well being. Ideally: goods that are not depleted when consumed by others and everyone has access; in reality, accessibility varies.

eg. Parks, Water, Transportation, Fire Protection, Police Protection, Education

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28
Q

Private Goods

A

Ideal private goods are exclusive: once one person has bought/consumed it, then it’s no longer available to others

  • provided for purposes of making profit; excludes those who can’t afford them
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29
Q

Sovereign Wealth Funds

A

A state-owned investment fund that invests in real and financial assets such as stocks, bonds, real estate, raw materials or in alternative investments such as private equity fund or hedge funds.

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30
Q

Examples of Neoliberal States

A

Canada

U.S.

U.K.

31
Q

Examples of Welfare States

A

Sweden

Finland

Germany

32
Q

Examples of Developmental States

A

Japan

Brazil

Mexico

33
Q

Examples of Authoritarian States

A

Uzbekistan
Saudi Arabia
Turkmenistan

34
Q

Neoliberal State

A

Political, economic ideology based on strong
belief in individual liberty, free markets, and
private enterprise.

emerged in 1970’s, took off in 1980’s
Thatcher, Reagan.

35
Q

Dirigiste

A

A system in which strong state influence over economy

36
Q

Characteristics of a neoliberal state

A

 Minimize government role in economy

 Lower taxes

 Financial and trade liberalization

 Privatize state enterprises

 Widespread deregulation

37
Q

Characteristics of a NEOLIBERAL STATE

A

 Minimize government role in economy

 Lower taxes

 Financial and trade liberalization

 Privatize state enterprises

 Widespread deregulation

38
Q

Types of State

A
  • Neoliberal states
  • Welfare states
  • Developmental states
  • Authoritarian states
  • Fragile States
  • Dependent/Neocolonial state
39
Q

Characteristics of a NEOLIBERAL STATE

A

 Minimized government role in economy

 Lower taxes

 Financial and trade liberalization

 Privatize state enterprises

 Widespread deregulation

40
Q

Types of States (6)

A
  • Neoliberal states
  • Welfare states
  • Developmental states
  • Authoritarian states
  • Fragile States
  • Dependent/Neocolonial state
41
Q

Welfare State

A

a system whereby the government undertakes to protect the health and well-being of its citizens, especially those in financial or social need, by means of grants, pensions, and other benefits.

42
Q

Characteristics of a WELFARE STATE

A
  • govt regulation and management of economy
  • progressive taxation
  • goal of full employment
  • unions + collective bargaining
  • welfare system (social safety net)
  • ↑ govt spending in economic downturns
  • protectionism
43
Q

progressive taxation

A

a tax for which the percentage of income paid in taxes increases as income increases

44
Q

regressive taxation

A

a tax for which the percentage of income paid in taxes decreases as income increases

45
Q

proportional taxation

A

a tax for which the percentage of income paid in taxes remains the same for all incomes

46
Q

Developmental States

A

A system whereby there is relative autonomy of the capitalist state from corporate interests and voters. The government takes on an active and direct role to develop the economy.

47
Q

Characteristics of DEVELOPMENTAL STATES

A
  • strategic industrial policies support & protect domestic industry
  • state relatively autonomous from business & interest groups → allows it to pursue strong economic policies
  • state agencies consult with private sector to create strategic industrial policy
  • state nurtures certain industries/firms, creates needed economic & social infrastructure
  • capital and labour regulation
48
Q

Authoritarian States

A

Former socialist states that have liberalized their

economies but maintain strict political control.

49
Q

Characteristics of Authoritarian States

A 
•  Economies dominated by a mixture of SOEs and
private firms (domestic and foreign)
• Highly regulated private sector
50
Q

Former developmental & Authoritarian state example

A

South Korea

51
Q

Dependent

(Neocolonial) States

A

States where:

 Oligarchs/corporations have more power than govt.

 Natural resource economies – volatile commodity prices

 State indebted to IFIs or other states (eg. US)

 Governments lose control of their economies (SAPs, corporations)

 Neocolonialism

52
Q

Example of neocolonialism in Chad

A

Exxon takes 100% of its profits out of Chad

53
Q

Fragile States

A

A state significantly susceptible to crisis in one or more of its sub- systems. (It is a state that is particularly vulnerable to internal and external shocks and domestic and international conflicts).

54
Q

Characteristics of a fragile state

A
  • Weak institutional capacity, poor governance, political instability
  • Limited domestic revenues and limited access to alternative financing
  • Often experience ongoing violence
  • Widespread corruption
  • International agencies perform state roles
55
Q

Examples of Fragile States

A

South Sudan

Somalia

Syria

56
Q

Factors that “disintegrate” fragile states:

A

Internal factors (civil war, coup)

External factors (international pressure, invasion)

57
Q

“Upscaling the State”

A

State delegates some control of national
economic affairs to international or macroregional
organization.

Example: EU

58
Q

“Downscaling the State”

A

Regional devolution of power to subnational,
regional or municipal organizations; increased
autonomy for local/regional authorities, NGOs.

Example

59
Q

INTERNATIONAL ORGANIZATIONS

A

IMF (1944)

World Bank (1944)

WTO (1995)

UN (1945)

G7 (1997) → G8 (1998) → G20 (1999)

60
Q

Head of the IMF is always

A

European

61
Q

Head of the World Bank is always

A

from the U.S.

62
Q

The country with the most voting power in the both the World Bank and the IMF is

A

The U.S.

63
Q

Goal of G20

A

facilitate international economic
cooperation, strengthen global economy,
reform IFIs, improve financial regulation

64
Q

Goal of World Trade Organisation (WTO)

A

“ensure trade flows as smoothly,

predictably and freely as possible”

65
Q

Macroregional Group types

A

Economic/political integration:

 Free-trade areas (USMCA)
 Customs unions (Mercosur)
 Common market (COMESA)
 Economic union (EU)

66
Q

European Union

A

A political and economic union of 27 members operating within a single market with a standardized system of laws.

67
Q

Characteristics of EU

A
  • common trade, fisheries and agricultural policies
  • free movement of people, goods, services and capital
  • Common currency adopted by 19 members
  • European commission and parliament
68
Q

Summary of why hyperglobalism isn’t real

A

States continue to shape the economic activity
within/across their borders in many ways.

 States differ in their ability to control their economies
and influence international institutions.

 States retain major influence on global political/economic activity.

69
Q

Structural Adjustment Policies

A

Structural adjustment programmes consist of loans provided by the International Monetary Fund and the World Bank to countries that experienced economic crises, but that are applied with a neoliberal economic ideology or agenda as a precondition to receiving the money.

70
Q

Structural Adjustment Policies negative impacts

A

while

  • conversion to cash crops
  • devaluation of local currency
  • widening inequalities
  • Cut social services and government spending
  • Eliminate food and energy subsidies
  • Financial deregulation
  • Removal of tariffs and import quotas
  • Addition of local taxes
  • Privatization
71
Q

Downscaling of the state

A

Devloution of powers from national government to councils, provinces, regions, municipalities. As a result: hollowing out of the state

72
Q

characteristics of Not For Profit Organisations

A
  • little profit that has to be put back into company
  • self organized
  • Funds: foundations, govt, fees for services. govt. like to spend on direct action stuff not administrative
  • 5% of Global GDP
  • Typically run by volunteers
73
Q

Privatisation undermines ____

A

democracy.

74
Q

Why does Privatization undermine democracy?

A

As more and more goods are privatized, private lobbyist groups have more power to influence the state.

If the government does what you don’t like, you can vote against it, but there is much less you can do when a corporation does.

ECONOMIC GEOGRAPHY (15 decks)

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