Midterm Review - Concepts Flashcards
(30 cards)
Colonialism vs Neocolonialism
Colonialism:
- violence, ecological windfalls, development ideology, legal/political formalization
Neocolonialism
- cultural, economic, and political means (SAPs , using debt , and western backed coups)
Ecological Windfalls
Def: a transfusion of resources that allowed it to grow its economy beyond its natural limits
- the resources GN got from colonies for the accumulation of wealth that gives GN unfair advantage /economic inequality in global economy today
WTO
regulates and facilitates international trade
- consider virtual senate
Key Features:
- illusion of level playing field
(not level bc of colonial past advantages)
- illusion of choice
(dependency and need for foreign investment bc of debt)
Grameen Bank
empowers local communities, promotes self-sufficiency, challenging traditional banking structures (supports easterly, challenges escobar)
- microloans for the poor
Regulation Q
Under Banking Act of 1933
(also included glass Steagall act)
When inflation rose, market-led value of US treasury bills would rise above the Regulation q ceiling, and investors would pull their money out of banks and into Treasury bills. This tightened the capital available for new lending. Additionally led to particular decline in mortgage loans (given their long returns on investment horizons). As the economy slowed and interest rates fell, the mechanism would act in reverse, encouraging re-investment in banks
- discouraged risky investing by banks
Glass Steagall act
separated commercial and investment banks
- part of banking act of 1933
Banking Act of 1933
reg q and glass Steagall act
purpose: to increase regulation and prevent another crisis due to risky investment like great depression and 2008 crisis
Bretton Woods system 1944:
Purpose: ensure stability and development in the reconstructing post WWII world - (through fixed exchange rates - GS - and undoing Keynesianism)
Included :
- gold standard
(this caused stagflation, esp. as LBJ sold treasury bills to rest of world for investments that had no returns - Vietnam war and great society )
- The World Bank: financing states’ reconstruction post-WWII
- The IMF: finance reconstructing countries’ state spending to ensure global market stability
The World Bank
financing states’ reconstruction post-WWII
part of Bretton woods institutions 1944
- undid Keynesianism
The IMF
finance reconstructing countries’ state spending to ensure global market stability
part of Bretton woods institutions 1944
- undid Keynesianism
2008 crisis
2008 Financial Criss - great recession from risky investing (post removal of regQ)
repeal of reg q aimed to increase banks’ capital reserves and mitigate credit illiquidity
The Reserve System
South Africans pushed off land into reserves where they could do subsistence farming (but small and unfertile land)
- excuse to pay short wages for the men who had to travel to the white urban areas to work in factories
- women had to do the farming and their work was then undervalued (western patriarchy)
Pass Laws
Africans couldn’t settle in white areas (forced onto reserves
to maximize labor extraction and justify low wages/ no benefits
2 Views of Development
View #1: Temporally Linear and Spatially Isolated (technological advancements and the development ladder) - sachs
View #2: Temporally and Spatially Intertwined (development ideology, coercion, political formalization, and captive markets all globally intertwined) - hickel
captive markets
- monocultures –> imports
- debt dependency –> exports
- foreign investment –> race to the bottom
ex. India –> unequal treaties, monocultures, privatization of resources, destruction of textile industry = forced dependency for food and money on whatever the GN dictates
Enclosure
15th century england elites wanted to expand wool and agriculture industry and took control of parliament abolishing peasant rights to land
- common peasantry land privatized, displacement of peasants and forced competition (whoever could improve the land the best -locke) forced many into low wage factory jobs bc no longer owned means/conditions of production
puppet regime example
united fruit company (who got land, control over rail roads, and tax exemptions with control over prices because of debt Guatemala was in –> increased debt and landlessness) in Guatemala lobbied to get US to overthrow democratically elected president (who was redistributing land and nationalizing assets, keynesianism) and replace with dictator arbenz who served their interests
Tribalism
Walter Rodney - Fostering tribalism (“divide and rule”) - colonial powers often “consciously stimulated internal tribal jealousies” to keep them from resisting the European overlords themselves
Comparative Advantage
Comparative Advantage Theory: - Ricardo
every country should produce the goods or perform the function that they are best at relative to other countries
- countries with abundant, cheap labor should produce labor intensive goods; countries with more capital should produce capital intensive goods
- natural division of labor
- benefits common good by raising trade, incomes, and consumption
Opium Wars
19th century, fought between China and Western powers, primarily Britain, over the right to import opium into China, which the Chinese government had outlawed, resulting in unequal treaties and trade concessions for Western powers
China Suffered and lost wealth from unequal treaties
Britain won through violence (superior military) and blockades on China’s trade
Keynesianism
to discourage fascism post WWII
- increase in government spending to encourage high wages and drive development, financial industry regulations, workers’ rights
Examples in US:
- new deal (SSA, Afordable housing, Gi bill)
glass steagall act
Examples in GS:
- import-subsitition
- high tariffs
- nationalization
- land reform
- limited foreign trade
Post WWII Global South Political Alignments
1961: Non-Alignment Movement (NAM): forum of 120 countries alligned with neither US or USSR
1964: formed under G77 and United Nations Conference on Trade and Development
Early US neo-colonialism
1823: Monroe Doctrine
- any intervention in the political affairs of the Americas by foreign powers is a potentially hostile act against the United States
1904: Roosevelt Corollary:
- asserted the right of the U.S. to intervene in Latin America in cases of “flagrant and chronic wrongdoing by a Latin American Nation” to preempt intervention by European creditors
- Used to justify coups
developmentalism (before GN took over through loans/debt)
-state led development, social spending, workers rights. -a desire to build economies for the national good, not for the benefit of external powers (Hickel 105).
