gpp 115 study guide

green revolution

Mentioned in "Rise of the Bank by Michael Goldman", the green revolution was a a large increase in crop production in developing countries achieved by the use of fertilizers, pesticides, and high-yield crop varieties. Developed in the 1970s when the Bank's institutions wanted set root in different forms including the national development backs/insituties/agricutlure, there was a fueled studies in development economics, poverty, and the green revolution. Money went into the global south as a part of the financing of poverty alleviation and basic needs. Porposed by McNamara to bring to Asia, Africa, and Latin America, the green revolution integrated as it was viewed by the global north as an opportunity for poorer people.the world bank helped bring the green revolution to the south by offering substantial institutional support to state ministries, credit banks, research centers, and loans for heavy infrastructure such as dams and irrigation systems.

planners vs. searchers

Planners have grand ideas about solving poverty and who attempt to provide aid by raising large sums of money, and Searchers work with the communities they are seeking to help to find out the most effective ways to provide support. - Easterly laments that society is more efficient about distributing the newest Harry Potter book to bookstores than distributing medical supplies to impoverished children because aid is provided by Planners (individuals who take it upon themselves to determine what is best and what should be done without consult those they are looking to help) while Harry Potter books are provided by Searchers (individuals who FIND WAYS TO MAKE THINGS WORK / find ways to fulfill demand) (6) Planners think they know the answer, Searchers admit they don't but work to find out He also argues that the Planner's believe that they can solve all the world's poverty issues is highly presumptuous and reminiscent of the idea of the "white man's burden" from the age of imperialism.

Describe each phase of the World Bank. How was the world Bank transformed in the 1970s under McNamara? In the 1990s? How did these transformations mark a break with a previous era of development?

Reluctant Banker (1944-1968) - During this period, the bank received the majority of its funds from Wall Street, and as a result, ONLY ENGAGED IN SAFE LOANS that they felt confident would be repaid. Additionally, these investments were only made in PRODUCTIVE CAPITAL like roads, dams, and factories that would directly help pay back the debt. - Additionally, the US gov pressured the bank to only fund friends of the US - aka countries that were receptive to democratic capitalism Rise to Power (1968-1980) - During this period McNamara took over as head of the World Bank and transformed the organization to act more like an INVESTMENT BANKING FIRM - For example, during the first five years, the World bank lent more money and financed more projects than it had in the previous twenty years combined. (18) - Made decisions based on EMPIRICAL DATA - The World bank operated with an increased focus on fostering development and putting money into the hands of the absolute poorest (23) - It increasingly funded agricultural and rural projects, which he viewed as the "stepchild of development" (25) - McNamara demanded that a development plan was created for each nation that the World Bank lent to - These transformation marked a break from the pre-McNamara era which was characterized by selectivity, caution (the first loan went to the French), and Wall Street respectability Debt and Adjustment (1980-1989) - By this time the bank was involved directly in funding the nation budgets of many countries During this time it led these countries to pursue SHOCK THERAPY (emphasis on exports, reduce tariffs) → to put pressure on countries to repay loans. - Resulted in countries cutting public services to come up with the money to pay the bank back - Led to a "lost decade" for many Latin American countries - Generally characterized as a period when the bank became increasingly neoliberal (supporting the open market) Green Neoliberal (1989-Present) - People protested the bank's actions as economies crashed - In order to appease the protesters, the Bank reorganized and began to PRIORITIZE ENVIRONMENTAL PROTECTION - by the 90s they had lent about a billion dollars in the name of the environment - Demanded that all countries receiving loans signed off on an National Environmental Action Plan - This was all in an effort to create a global standard for environmental preservation

What were the effects of Structural Adjustment Policies (SAP) on the Global South?

SAPs consist of loans provided by the International Monetary Fund (IMF) and the World Bank (WB) to countries that experienced economic crises. The conditionality clauses attached to the loans have been criticized because of their effects on the social sector. While SAPs are supposed to allow the economies of the developing countries to become more market oriented, they resulted in financial threats to poor countries in the global south. They are loans that cannot be payed back and result in the continued economic struggle of that country. How was Jamaica's economy and social structure affected by these policies? (weis)

ladder of development

Sachs -"Ladder theory" is a theory of economic development which claims that all countries tend to go through roughly the same pattern when transforming from a poor economy to a rich one. The countries of Western Europe, Canada and the United States followed this pattern when they transformed their poor economies into rich ones during the nineteenth and twentieth centuries. good things that generally move up include higher capital stock, greater specialization, more advanced technology, and lower fertility as people make their way into development. the main objective is for the poorest countries to gain a foothold on the ladder; mainly rich countries allowing them their own space

freedom/unfreedom

Sen wants to: - Promote substantive freedom (capabilities): education, health, civil rights... etc.) - Remove unfreedoms: poverty, tyranny, poor economic opportunity

What is the role of the bourgeoisie according to Berman?

The bourgeoisie cannot exist without constantly revolutionizing the instruments of production, and with them the relations of production, and with them all the relations of society.... Constant revolutionizing of production, uninterrupted disturbance of all social relations, everlasting uncertainty and agitation, distinguish the bourgeois epoch from all earlier ones. - He saw Marx as someone who perfectly described modernism - "all that is solid melts into air" - Marx, a proponent of radical change and societal upheaval, appreciated the bourgeoisie because they embody MODERNISM - they are constantly creating things, tearing them down, and then rebuilding them because they are driven by the desire for profits (106)- Marx appreciates this, but also realized that the bourgeoisie's modernist tendencies are eventually what will lead to its downfall- The statement "all that is solid melts into air" refers to modernism, and how a modernist society, which is DRIVEN BY A DESIRE FOR MONEY, continually tears down things to make room for new, more profitable, things.

What is the transition from the "end of history" to the "end of poverty"?

The end of history, as mentioned by Sachs, is referring to the philosophical idea that supposes that a particular political, economic, or social system may develop that would constitute the end-point of humanity's sociocultural evolution and there would be a final form of human government. That would be the end of poverty as extreme poverty can be eliminated globally with the help of development aid that starts from the perfect government and works its way down to the local level. He presents the problem as an inability of very poor countries to reach the "bottom rung" of the ladder of economic development; once the bottom rung is reached, a country can pull itself up into the global market economy, and the need for outside aid will be greatly diminished or eliminated.

What is the main argument presented by Easterly in White Man's Burden? What does Easterly think about development projects?

The main argument Easterly presents in White Man's Burden is the bottom-up approach where aid is not accountable or responsive to the people it is serving. Instead, development aid creates inequality and perversive incentives and people become more powerful than others and there is a whole dichotomy of us versus them. There is no escape to the poverty trap unless you start in the smaller communities and talk to community advisors to underline issues and solve them locally. The government can be corrupt.

What is the main argument presented by Sachs in End of Poverty? How does infrastructure fit into Sachs's argument?

The main argument Sachs presents is the Top-Down approach where aid is helpful and should be implemented in government starting at the top and working its way down into communities. He believes aid fits into infrastructure by increasing the growth by augmenting savings, financing investment, and adding to capital stock. Moreover, aid that supports health and education will increase worker productivity and could provide a conduit for transfer of technology or knowledge from the rich to the poor countries.

How does Easterly's argument compare to Sachs'? Do they agree or disagree about the sources of-and solutions for- global poverty?

They disagree. Sachs is top-down approach and Easterly is Bottom-up. planners vs. searchers

What is the Washington Consensus and how does that relate to neoliberalism?

Washington Consensus reflected the set of policies that became their standard package of advice attached to loans. The first element was a set of policies designed to create economic stability by controlling inflation and reducing government budget deficits. "Neoliberalism" is contemporarily used to refer to market-oriented reform policies such as "eliminating price controls, deregulating capital markets, lowering trade barriers" and reducing state influence in the economy, especially through privatization. Neoliberal policies associated with the Washington Consensus, including pension privatization, the imposition of a flat tax, monetarism, cutting of corporate taxes, and central bank independence.

What is the "small world" shift Roy refers to regarding global poverty alleviation?

When discussing global poverty alleviation, Roy talks about the globalization of microfinance; also seen as microcredit, it is the lending of small amounts of money at low interest to new businesses in the developing world- which is loans. The shift moves to "small world" when there are banks loaning money.

Corporate social responsibility

a business's concern for society's welfare; the notion that corporations are expected to go above and beyond following the law and making a profit

absolute poverty

a minimum level of subsistence that no family should be expected to live below; a lack of resources that is life-threatening. A condition characterized by severe deprivation of basic human needs including food, safe drinking water, clean sanitation facilities, shelter, education, and healthcare.

Modernization Theory

a model of economic and social development that explains global inequality in terms of technological and cultural differences between nations

Conscientious consumption

a new value that combines a focus on personal health with a concern for global health; a social movement that based around increased awareness of the impact of purchasing decisions on the environment and the consumers health and life in general

Maelstrom

a whirlpool of great size and violence; a situation resembling a whirlpool in violence and destruction - Berman describes modernity as the ceaseless dialectic. It is basically change. That it is the DESTRUCTION OF TRADITIONAL INSTITUTIONS AND SOCIETAL NORMS, and its replacement with something new. It is to be caught up in a "maelstrom" of disintegration and renewal; But it is a paradoxical unity, a unity of disunity: 1t pours us all into a maelstrom of perpetual disintegration and renewal, of struggle and contradiction, of ambiguity and anguish. To be modern IS to be part of a universe in which, as Marx said, "all that is solid melts into air."

What is super capitalism and how is it different from democratic capitalism?

according to Reich - Supercapitalism is a TECHNOLOGICAL SHIFT - Globalization destroyed Keynesianism - Creates free market fundamentalism - Supercapitalism destroys democracy because it turned us into a consumer society - We are cogs in the machine, while corporations have power democratic capitalism promotes the support of individual freedom and pluralism, super capitalism has become more competitive, global and innovative seeking the highest profits for investors and offering the lowest prices for consumers; democratic capitalism also flowed with oligopolies that gave people more opportunities to be in the free-market

Leisinger (reading)

corporate philanthropy

shock therapy / structural adjustment policies

during the debt and adjustment period of the1980s (emphasis on exports, reduce tariffs) → to put pressure on countries to repay loans. - Resulted in countries cutting public services to come up with the money to pay the bank back - Led to a "lost decade" for many Latin American countries - Generally characterized as a period when the bank became increasingly neoliberal (supporting the open market)

Barriers to entry

factors that make it difficult and costly for an organization to enter a particular task environment or industry

liberalism / neoliberalism

liberalism - favorable progress/ freedom Neoliberalism =outgrowth of the US liberal movement - govern can't run big enterprises and contact between developing/ industrial is best through spreading technology

modernism / modernity / modernization

modernity: time period itself modernism: theory, political philosophy modernization: economic process

What are the reasons globalization doesn't level the playing field?

not everyone has access to the internet or computer or commodities needed to expand an economy

Fair trade

producer to consumer narrative that (NFO) the market collapsed in 1989 and people were not payed enough so producers lowered the wages

poverty trap

self-reinforcing mechanisms that cause the poor to stay poor

GDP

short for gross domestic product, gdp is the total value of goods produced and services provided in a country during one year. Jeffrey Sachs says that the rise in GDP comes from saving and capital accumulation, increasing specialization & trade, technological advancement, and greater natural resources per person. GDP and GNI are the main economic quantitative sources for measuring development.

What is modernization theory?

states all countries will follow similar path to become modernized. looks at internal social dynamics; The idea that the process of development started in the West ends in a process of industrialization that creates wealth accumulation and results w/ the Global North

Reichman (reading)

supercapitalism cs deocratic capitalism

relative poverty

survival but far below the general living standards of the society or social group in which they are living; a measurement of poverty based on a percentage of the median income in a given location. Amartya Sen's idea that poverty can be relative TO THE NORMS AND CUSTOMS OF A PARTICULAR SOCIETY, that a person in a wealthy country may need more money to fully participate in society than in the poor country.

Corporate philanthropy

the dimension of social responsibility that includes charitable donations - Donation of resources to support organized efforts intended for defined beneficial social purposes. A differentiation can be made between philanthropy and charity, defining charity as unconditional short-term relief (e.g., for tsunami victims), while philanthropy attempts to investigate and address the underlying causes to make a tangible positive change in the social conditions that cause the problem.

creative destructive

the hypothesis that the creation of new products and production methods simultaneously destroys the market power of existing monopolies

globalization

the process by which businesses or other organizations develop international influence or start operating on an international scale. pros include: - Economic growth - Prosperity and opportunity - Political and economic freedom - Democracy - Improved standard of living - Reduced poverty - Gender and race equity - Increased life span - Global law + order (UN) cons include: - Environment - Poverty, inequality, injustice - Homogenization - Profit-oriented - Fuels ethnic, religious, and factional tensions - Wars and terrorisms are global - Capital controls the state

small world

tight-knit social network with many strong ties as written by roy

ethical consumerism

type of consumer activism that is based on the concept of dollar voting; products made with the least harm to the environment and animals and no exploitation of humans or human labor

what does Sen mean by "development economics"? What are different ways to measure poverty?

when sen talks about development economics, he is talking about the social development and how it plays into people's everyday life. While classic economics is about commodities, sen argues that it is immoral to apply these concepts to people. Development economics focuses on the shifts in focus on quality of life, and functionings and capabilities in general. Development should be focused on how people function and how well the state facilitates their functioning. Development economics introduces the capabilities approach, with valuable beings & doing, getting away from financial markets, and valuing individual agency. different ways to measure poverty that sen measures includes the calorie based poverty line and how it is problematic bc food costs and lack of capabilities. other ways to measure poverty include doings and beings and understanding capabilities and choices

Friedman (reading)

work is flat - globalization

Berman (reading)

"All That is Solid Melts into Air" ‌• Bourgeoisie were economically revolutionary, but have to constantly change the means of production to prevent the forces that they awoke within proletariat from rising against them ‌• Eyes of the poor paradox: Modern aesthetic provides additional opportunities for poverty and wealth to conflict and contrast ‌• Men are subjects and objects of forces of econ change

Reich (reading)

"Supercapitalism" ‌• Democracy and capitalism are out of balance ‌• Technologies from space race paved way for boom ‌• Corporation aggregate power has risen but corporations as individuals have lost some power over pricing ‌• Opens doors for expansion of wallstreet

Sen (reading)

"The Concept of Development" ‌• Classic economics is about commodities and it is immoral to apply these concepts to people ‌• Development economics is focused of capabilities and people ‌• Development should be focused on how people function and how well the state facilitates their functioning ‌• (Inequitable) growth and WB basic needs approach not enough

Goldman (reading)

"The Rise of the Bank" ‌• Four stages: reluctant banker, rise to power, debt and readjustment and green neoliberalism ‌• Bank rose to power under McNamara's leadership which is where it increased holdings and established itself as global authority on poverty alleviation ‌• Loans led to massive debt and shift into 'kinder/gentler' world bank

What is the key distinction Leisinger makes between corporate responsibility and corporation philanthropy?

- Corporate responsibility encompasses different things that businesses feel obligated to fulfill (obey all laws, regulations). Corporate philanthropy does not fall under corporate responsibility, but it is something that business owners believe is "nice to have" (top of the pyramid) - Corporate philanthropy: Donation of resources to support organized efforts intended for defined beneficial social purposes. A differentiation can be made between philanthropy and charity, defining charity as unconditional short-term relief (e.g., for tsunami victims), while philanthropy attempts to investigate and address the underlying causes to make a tangible positive change in the social conditions that cause the problem.

What about the modern world is "flat," according to Friedman? What are the characteristics of a flat world?

- Friedman claims that the modern world is "flat" because increasingly, TECHNOLOGY IS LEVELING THE PLAYING FIELD, allowing people all around the world to compete with American workers. For the first time in history, intellectual capital can be delivered from anywhere because the internet and cheap software allows workers to contribute from wherever they are. - He believes that the flattening (globalization) of the world occurred in three phases: 1. Globalization 1.0 - Colonization / industrialization (1492-1800) - Countries globalized via Imperial conquest 2. Globalization 2.0 - Modernization (1800-2000) - Companies globalized via establishing long distance markets 3. Globalization 3.0 - Democracy, internet, new markets (2000+) - Non-white Individuals and small groups globalized using the internet and new technology - This phase of globalization was triggered by the simultaneous fall of the Berlin Wall and the development of Windows 3.0, the dot com boom caused by Netscape going public, the investment in transatlantic fiber-options communication cables, and the employment of Indian engineers to fix Y2K computer bugs

What is Peck's understanding of neoliberalism? How has the modern nation-state been remade under neoliberalism? Why does Peck consider the state increasingly relevant in the modern world?

- Peck asserts that neoliberalism doesn't exist in a single form, but instead in many hybrid forms with other economic systems - thus it will not fall in one Berlin Wall-like moment - He says that neoliberalism will not destroy the nation state and create one globalized society, reduce the role of the state in government, or lead to complete deregulation. - Neoliberalism won't undo all regulations, just some

super capitalism

- Supercapitalism is a TECHNOLOGICAL SHIFT - Globalization destroyed Keynesianism - Creates free market fundamentalism - Supercapitalism erodes democracy because it turned us into a consumer society - We are cogs in the machine, while corporations have power

poverty capital

- The Roy reading discussed the idea of poverty capital - Poverty capital, also known as microfinance (small world), consists of the idea that in order to alleviate poverty, the capitalist system must be inverted, and LOANS MUST BE MADE OUT TO THE POOR - The idea of microfinance was created by Muhammad Yunus who believed that CREDIT IS A HUMAN RIGHT and thus giving small loans to the poor can help them spark economic growth in their areas - these loans would be made without demanded collateral - Yunus believed in utilizing the "bottom billion" - Those who opposed poverty capital say that lending to the poor is risky (and that only a quarter of projects that were funded by World Bank microfinance were successful) - They also say that institutions engaging in predatory lending can actually cause poor people harm - Microfinance is part of the millennium development movement

big push

A concerted, economy-wide, and typically public policy-led effort to initiate or accelerate economic development across a broad spectrum of new industries and skills. the development strategy that relies on an integrated network of government sponsored and financed investments introduced into the economy all at once. The state would plan and coordinate a substantial large investment to solve the market failures that structuralists believed inhibited rapid industrialization in developing societies. written about by easterly, he critiques how this is not always helpful bc if it was then poverty would literally be history by now. instead it drives people deeper into loans

capabilities

A person's ability to choose from a bundle of functionings - the well being of two people who have achieved the same functionings can be different if one of them has the ability to choose between other functionings and one is confined to just one (Ex: fasting vs. starving); A method, developed by Amartya Sen, that gauges if a person is in poverty based on WHAT THEY ARE ABLE TO DO AND BE (being healthy, being well nourished, being literate, being able to travel without feeling that your life is in danger, being able to choose)

Nation-state

A state whose territory corresponds to that occupied by a particular ethnicity that has been transformed into a nationality

Neoliberalism

A strategy for economic development that calls for free markets, balanced budgets, privatization, free trade, and minimal government intervention in the economy.

How did consumerism and technology contribute to the rise of super capitalism?

Advances in communication, technology, transportation and the concentrated power of innovative buying systems have created a far more competitive business environment. In this environment, corporations have become increasingly involved in politics and are now fighting in the political arena hiring "platoons of lobbyists, lawyers, experts and public-relations specialists" to shape government regulations to their advantage or the disadvantage of their competition. Their public relations masters shape the debates while their money fuels the political process. In this relentless fight about economic gains, investors and consumers profit. On the other side, the needs of the citizenry with an interest in social stability and the common good are neglected. Their voice is lost and their political impact marginalized.

Why do corporations decide to pursue corporate social responsibility policies?

Being a socially responsible company can bolster a company's image and build its brand. Social responsibility empowers employees to leverage the corporate resources at their disposal to do good. Formal corporate social responsibility programs can boost employee morale and lead to greater productivity in the workforce

Keynesianism

Belief in aggressive government intervention to combat recession & promote economic growth, especially by massive federal spending ("stimulus") and less government intervention during an inflation

What, according to Berman, is modernity? Why is it 'pregnant with its contrary'?

Berman describes modernity as the ceaseless dialectic. It is basically change. That it is the destruction of traditional institutions and societal norms, and its replacement with something new. It is to be caught up in a "maelstrom" of disintegration and renewal - Much more about how society is reorganized, how the "person" is organized psychosubjectively

What are the pros and cons of ethical consumerism?

By choosing certain products over others, or even whether to purchase at all, consumers can embrace or reject particular environmental and labour practices and make other value claims based on the ethical values they hold. Exercising choice in this way creates incentives for producers to make production practices conform to consumer values. purchasing in itself becomes political

what are the sustainability development goals and why are they important?

Developed by the UN, the sustainability development goals are 17 development goals that focuses on a holistic approach to achieve sustainable development for all. Including points of ending poverty, zero hunger, clean water, and access to education, these goals provide shared blueprints for prosperity and equity for all people. They are important because they include all countries, developed and undeveloped, in a global partnership to address the worlds largest issues that are affecting people everyday.

what are the key elements (ideas, institutions, practices) of "millennial development"?

Linear timeline, poverty is becoming personal, no longer conservative, and idea of poverty and public character are distinctly millennial millennial development acknowledges social change and the failure vs successes that have strange/non linear development. it rejects the free market as an organizing principle bc it has failed; how/what do you substitute it with? relationships - Development required restoring capitalist world markets to sustain First World wealth through ACCESS TO STRATEGIC NATURAL RESOURCES AND OPPORTUNITY for Third World nations to emulate First World civilization and living standards. - The introduction of private property and accumulation of wealth. The 21st century redeemed development as a project in the face of the "visibility of poverty"