MC221 Final exam

China model challenges

-Minxin Pei "trapped in transition"- Instead of evolving toward a full market economy, China is trapped in partial economic and political reforms -corruption and lack of free flow of ideas and innovation -severe environmental damage and air pollution from dependence on coal for energy -china single handedly reduced global poverty and turned it into more of an African/South Asian challenge -hard to maintain

Concerns with EU asylum policy

-transferral to point of entry puts refugee applicants at risk of being returned -contributes to delay in processing a claim -places serious pressure on external border regions and thus on states least able to handle the cases and # of refugees -desired target state may not be reachable -the EU tends to demonize Hungarian president Viktor Orban, but problem is much greater -populist nationalism to preserve "christian" countries in Europe is common

Three pillars

1.) LDP- liberal democratic party dominant conservative political party with strong ties to the US 2.) Strong corporate sector with supportive labor relationship -support from government and other firms to break strikes -change to "house unions" -lifetime employment after MIIKE coal miners strikes vs. mitsui corp. 3.) leadership from well respected economic bureaucracy -MITI/METI -double income campaign -3 treasures (refrigerator, washing machine, tv) -reverence for government bureaucrats -administrative guidance -coach vs umpire (US)--> on the same team Baseball analogy In US government is umpire- some assistance In Japan, they are the coach- explicitly trying to help industry

western arguments for gradualism

1.) adam przeworski: people opted for democracy for economic welfare, not for political reasons -people demand quick results -social cost is higher under radical strategy -threat to democracy resulting from dissatisfied population 2.) Roland Theoretical political economy radical reform leads to sharper decline -population will not tolerate more than a certain level of decline -gradualism may allow divide and rule to reduce impact of losers -radical reform would lead to higher taxes and thus slower growth of the private sector 3.) disorganization -need to preserve existing production networks -subsidize state firms to prevent immediate and massive collapse 4.) institutions first 5.) evolutionary theory -more chance for effective change in behavior of organizations if you don't quickly destroy state institutions -training and adjustment is needed

3 individual components of the WTO

1.) an intergovernmental bargaining process (multilateral trade negotiations since 1947) 2.) a set of rules and principles governing international trade relations -market based liberalism -nondiscrimination (most favored nation, exceptions for RTAs) -reciprocity (concessions on both sides) -domestic safeguards) 3.) dispute settlement mechanism

factors in europe's post world war II integration

1.) europe's weakness -result of internal dissensions and wars -end of Europe's at the center of world stage -europe's place taken by 2 new superpowers, US and USSR 2.) Never again -renewed conflict among european states must be avoided -motivated french efforts to tie germany into web of integration, to make war unthinkable 3.) better, freer, more just world -in which social and international relations would be conducted in a more orderly way (constructionism and liberal institutionalism rather than realist power) 4.) fear of USSR and US domination -most important factor -complex network of economic and security organizations created in response to perceived economic, political, and military threats

Success of the Japan model

1.) free ride on defense spending kishi's plan (US-japan treaty) 2.) The 3 pillars (3 legged stool) 3.) Technology transfer -led to loss of the US TV industry 4.) US consumer orientation vs. needs of firm/industry -US corporate short sightedness (short term profit maximization for private stock holders) vs long term strategy 5.) keiretsu and cooperation between firms -integrated industry -access to cheap capital -time to develop market share -cooperative pricing vs US firms 6.) export orientation -limits on important and FDI (foreign direct investment) -very gradual liberalization after established 7.) FDI--> US, Asia, Europe 8.) Compatible ODA -pay for right to belong to international community -support FDI with infrastructure projects 9.) Money politics -Recruit corp. and nomura securities scandal -LDP hand cuffed to special interests -bribery scandals -connection to asian financial crisis -crony capitalism (can promote business but not regulate) 10.) role of supportive culture 11.) Relevance of hegemonic stability theory -Japan's strategy weakening US? -Japan as a future hegemon (common view in 70's and 80's) 12.) A model to be emulated? -Asia/third world/eastern europe? 13.) Compare with US and European models -challenge of aging population and restrictive immigration policies -jaan as ideal model of sustainable, low growth, steady state economy -need population growth for economic growth, but is it sustainable for global model?

The US case

1.) governance -separation of powers (checks and balances) -gridlock stemming from increased partisanship, which is driven by primary system -impact of Supreme court decision on citizens united -tradition of laissez faire/limited government --> state role in economy is modest compared to Japan/germany -still largely inclusive, not extractive institutions -impact of gerrymandering -rule of law--> good property rights protection, but continuing influence peddling, unlimited campaign contributions and other corruption to support deregulation (Hernando de Soto) 2.) economic liberalism dominant -from hegemon in Bretton woods system to one of several leading economies -systematic deregulation of finance since 1970's stagflation period esp by Reagan admin--> led to 2008 crisis -mobility of capital championed -strong tradition of anti-trust -cheerleader for globalization -outsourcing of manufacturing now reduced, esp with rising wages in china and emerging low energy costs in US 3.) relentless widening of wealth disparity/income inequality -equality of opportunity, if not equality of conditions -has meritocracy declined? -key is quality of higher education -competitiveness from innovation and entrepreneurial bent (protection of proerty rights) -substantial investment in research and development at universities--> threatened by cuts in federal and state government budgets (Chip War Miller) 4.) global security responsibilities -bretton woods and marshall plan -role to promote stability and defeart USSR state socialist model and promote future economic partners -substantial defense spending and foreign policy that predominates over economic goals -willingness to allow japan to pursue neo-mercantilist policies -later capaign against industrial targeting (esp electronics), but substantial contracting with defense industry leading to civilian industrial spinoffs -recent concern about chinese industrial targeting and technology transfer efforts 5.) enviable geography and natural resources -ease of low cost transportation system -magnet for productive immigration -new finds of natural gas with new fracking technology--> return to energy self sufficiency?

Poland example

1.) macroeconomic stabilization (fear of hyperinflation) 2.) deregulation (prices, esp regime of free foreign trade) 3.) privatization 4.) reinforcing the social safety net -minimizing the role of old state institutions -social engineering out of the question

Issues and Challenges of the EU

1.) the euro criss-The eurozone crisis was caused by a balance-of-payments crisis, which is a sudden stop of foreign capital into countries that had substantial deficits and were dependent on foreign lending. 2.) membership expansion (Georgia and Ukraine) and contraction (UK and Greece), bicycle theory 3.) economic union or customs union only 4.) friction with hungary and poland (authoritarianism) 5.) governance- is there a democratic governance 6.) aging populations 7.) towards atlantic economic community 8.) trade in agriculture and energy- change or constant 9.) immigration (is europe ready for refugees from conflict and long term climate change) 10.) populism (esp from the right) 11.) energy independence and responding to putin and ukraine

Belt and Road Initiative (BRI)

21st century Chinese program to develop infrastructure to improve connections between China and the rest of Eurasia and Africa. a global infrastructure development strategy adopted by the Chinese government in 2013 to invest in more than 150 countries and international organizations. It is an effort to develop an expanded, interdependent market for China, grow China's economic and political power, and create the right conditions for China to build a high technology economy China views the BRI as vitally important in securing its borders on the Asian mainland

Citizens United v. FEC (2010)

A 2010 decision by the United States Supreme Court holding that independent expenditures are free speech protected by the 1st Amendment and so cannot be limited by federal law. Leads to creation of SuperPACs & massive rise in amount of third party electioneering (Citizens for a Better Tomorrow, Tomorrow) Citizens United v Federal Election Commission ruled invalidating restrictions on independent campaign spending by any organization- they prohibited corporations and unions from using their funds to use for election-related spending. It gave corporations and unions the green light to spend unlimited sums on ads and other political tools

TNC (Transnational Corporation)

A company that conducts research, operates factories, and sells products in multiple countries, not just where its headquarters or shareholders are located A transnational corporation is an enterprise that is involved with the international production of goods or services, foreign investments, or income and asset management in more than one country. It sets up factories in developing countries as land and labor are cheaper there. One of the significant advantages of a transnational company is that they are able to maintain a greater degree of responsiveness to the local markets where they maintain facilities.

Shock Therapy Economics

A dramatic economic shift, implemented in 1990s Russia, from a government-dominated economy to a market economy. shock therapy is a group of policies intended to be implemented simultaneously in order to liberalize the economy, including liberalization of all prices, privatization, trade liberalization, and stabilization via tight monetary policies and fiscal policies. Shock therapy is intended to boost economic production, increase the rate of employment, and improve living conditions. Shock Therapy affected trade and commerce of Russia in the following manner: (i) The value of Ruble, the Russian currency declined. (ii) Inflation rose at a very high rate and it lost all savings of people. (iii) Lack of productivity and technology created shortage of food which increased food imports every year gradual incremental reform programs less traumatic, but less likely to see quick results (eg. Hungary-gradual vs. Poland-big bang) western arguments for gradualism

Asia Infrastructure Investment Bank (AIIB)

A multilateral development bank with the mission of infrastructure development in Asia. First proposed by China in 2013 and established in 2015, the bank has 56 member states and 24 prospective member states. By building AIIB infrastructure projects along these routes, China can expand its geopolitical and geo-economic dimensions of power (Wilson, 2017). Additionally, not only does the AIIB help China to gain more power internationally, but also to gain influence in the borrowing countries at the regional level. AIIB offers sovereign and non-sovereign financing for sound and sustainable projects in energy and power, transportation and telecommunications, rural infrastructure and agriculture development, water supply and sanitation, environmental protection, and urban development and logistics.

NGOs

A non-governmental, non-profit organization that runs aid programs and lobbies for people's rights around the world A non-governmental organization, or NGO, typically is established to work toward public or social welfare goals. For instance, an NGO could focus on human rights, voters' rights, healthcare, helping the poor, and preventing cruelty to animals. NGOs can be funded by donations and grants. ex. american red cross, the salvation army, etc.

trade liberalization

A process that involves countries in reducing or removing trade barriers, such a tariffs and quotas, so goods and services can move around the world more freely Trade liberalization refers to eliminating or easing trade barriers between countries to promote free trade of goods and services. Examples of trade barriers are tariffs, import quotas, embargoes, and non-tariff barriers. political aspect -strength of domestic firms vs. consumers -prisoner's dilemma -the enforcement problem -protectionist impulse -Herman Daly in "Beyond Growth" calls for renationalizing trade and economic activity for environment reasons -labor and environmental standards -race to the bottom?

RTAs

A regional trade agreement (RTA) is a treaty between two or more governments that define the rules of trade for all signatories. When dealing with non-member countries, there are external rules in place that the members adhere to. Quotas, tariffs, and other forms of trade barriers restrict the transport of manufactured goods and services. Regional trading agreements help reduce or remove the barriers to trade. -are EU and NAFTA more important than global deal? US-EU Atlantic pact? US-pacific trade?

Doha Round

A series of negotiations under the World Trade Organization that began in Doha, Qatar, in 2001. It followed the Uruguay Round and has focused on agricultural subsidies, intellectual property, and other issues. It would have reduced government spending on subsidies in developed countries, but boosted financial companies. Unfortunately, agribusiness lobbies in the United States and the European Union put political pressure on their legislatures, which ended the Doha round of negotiations.

The Geneva Convention

A set of international standards of conduct for treating prisoners of war, established in 1929 A binding treaty that spells out the Rights of Refugees -there is no global authority in place to ensure compliance -UN high commisioner for refugees (UNHCR) has supervisory role but not enforcement role -considerable scope for states to deny or delay asylum application, especially for suspected economic or environmental migrants -the common european asylum system (CEAS) which imposes common standards, but in practice places enormous pressure on EU member states along southern and eastern borders due to dublin regulation

theory of demographic change

Based on effect of economic and social progress on population growth 1.) characterizes pre-modern societies Both birth rates and death rates are high, and population grows slowly if it all 2.) living conditions improve as public health measures are introduced and food production expands Birth rates remain high but death rates fall and population grows rapidly What happened in 19th and early 20th century 3.) economic and social gains occurs, including women participation in labor force combined with lower infant mortality rates reduce the desire for large families Birth rates and death rates are in equilibrium, but at much lower level

Chip War Chris Miller

CHIP WAR by Chris Miller is an epic account of the decades-long battle to control what has emerged as the world's most critical resource—microchip technology—with the United States and China increasingly in conflict. In the end, "Chip War" makes a whale of a case: that the chip industry now determines both the structure of the global economy and the balance of geopolitical power. Power in the modern world - military, economic, geopolitical - is built on a foundation of computer chips. America has maintained its lead as a superpower because it has dominated advances in computer chips and all the technology that chips have enabled. (Virtually everything runs on chips: cars, phones, the stock market, even the electric grid.) Now that edge is in danger of slipping, undermined by the naïve assumption that globalising the chip industry and letting players in Taiwan, Korea and Europe take over manufacturing serves America's interests. In Chip War economic historian Chris Miller recounts the fascinating sequence of events that led to the United States perfecting chip design, and how faster chips helped defeat the Soviet Union (by rendering the Russians' arsenal of precision-guided weapons obsolete). The battle to control this industry will shape our future

herman daly

Contemporary American economist and well-known proponent of a steady-state economy. Daly argued that growth should cease when decreasing marginal benefits are equaled by increasing marginal costs - the point where the economy has reached its optimal size. That point has already been reached and surpassed in high-income countries, where growth is now uneconomic, Daly maintained.

Culture and development

David Landes: Culture as key factor in determining wealth or poverty -inner values and attitudes that guide a population Max Weber: -hardwork and honesty -seriousness, thrifty use of money and time -stress of instruction and literacy -western values Lawrence Harrison -progress and poverty without Marx -key determinants: 1. the degree of identification with others in a society (the radius of trust or the sense of community) 2. the rigor of the ethical system 3. the way authority is exercised within the society Francis Fukuyama -pervasive social characteristic: the level of trust inherent in the society -absence of trust= poor economic performance the twenty percent solution -The Pareto principle states that for many outcomes, roughly 80% of consequences come from 20% of causes. In other words, a small percentage of causes have an outsized effect. -The key to following the 80 20 rule is to identify that roughly 20 percent of your actions or most productive tasks lead to the most success. -debate between neomercantilists and neoclassical free trade theorists -explain Asia's success--> raising utility maximizing individuals

The Dublin Regulation

Decrees that refugees must apply for asylum in the first EU country they enter. Its purpose is, essentially, to force refugees back to their point of entry into the EU, usually Greece, Hungary or Italy. The system began as the Dublin Convention in 1995 but was later incorporated into EU law. The first member state where finger prints are stored or an asylum claim is lodged is responsible for a person's asylum claim- EU member states have the right to transfer migrants to the first country of entry to the EU -aim is to prevent applicant from submitting applications in multiple member states, and to reduce number of "orbiting" asylum seekers who are shuttled from state to state seeking a more favorable ruling -the country in which the seeker first applies for asylum is responsible for either accepting or rejecting the claim, and the seeker may not restart the process in another jurisdiction -enourmous pressure on member states in the periphery, large camps in Greece and islands close to Turkey -European court of human rights in 2011 decided that returning asylum seekers to Greece due to Dublin Regulation constituted a human rights violation due to conditions of camps in Greece and poor treatment in Belgium -member states have different interests and refuse to compromise or show solidarity, but all agree on policies making it harder for refugees to get asylum in the EU

"Black cat, white cat"

Deng Xiaoping said that it does not matter if the cat is white or black, as long as it catches mice, it is a good cat, meaning that the only important thing is results. Means communist or Democratic, doesn't matter as long as the job gets done This is taken to mean that as long as the economy works, it is a good economy a slogan that would come to represent his pragmatic attitude toward Chinese economic policy.

Import Substitution Industrialization (ISI)

Development policy popular in the 1950s-1970s that uses trade policy, monetary policy, and currency rates to encourage the creation of new industries to produce goods domestically that the country imported in the past Import substitution industrialization is an economic theory adhered to by developing countries that wish to decrease their dependence on developed countries. ISI targets the protection and incubation of newly formed domestic industries to fully develop sectors so the goods produced are competitive with imported goods. One of the advantages of import-substituting industrialization is there will be the creation of new jobs. To substitute the imported products, the country must increase the number of industries. The increase in the industry in turn demands more labor force, creating new job opportunities. (ISI) is an economic policy that favors developing domestic industries and reducing reliance on manufactured foreign imports. ISI was a prominent policy adopted by developing countries in the 20th century to create a self-sufficient internal market.

Foreign Direct Investment (FDI)

Direct investment in business operations in a foreign country Foreign direct investment (FDI) is a category of cross-border investment in which an investor resident in one economy establishes a lasting interest in and a significant degree of influence over an enterprise resident in another economy Goods produced through FDI may be marketed domestically and also exported abroad, creating another essential revenue stream. FDI also improves a country's exchange rate stability, capital inflow and creates a competitive market. Finally it helps smoothen international relations. FDI creates new jobs and more opportunities as investors build new companies in foreign countries. This can lead to an increase in income and mor purchasing power to locals, which in turn leads to an overall boost in targetted economies

"Inside Job" documentary

Documentary explaining the 2008 financial crisis -the collapse of Iceland in 2008 -stable, prosperous democracy until the government began broad deregulation in 2000, proved disastrous to the environment -others began to take advantage of the geothermal areas, disastrous to the economy as deregulated financial system privatized 3 national banks -pure experiment in financial regulation (borrowed 120 billion dollars externally, previously had never operated outside borders) -finance took over and created a massive bubble economy (A financial bubble is an economic cycle characterized by rapidly increasing prices of an asset to a point that is unsustainable, causing the asset to burst or contract in value) -iceland government regulators did nothing- should have been protecting the people instead of enabling the greedy to take on enormous unsecured debt for conspicuous consumption; banks hired away regulators from government, banks collapsed in 2008 in the US Reagan administration behind changes -excessive salaries -massive private gains at public costs -regulators did not do their jobs crisis began with deregulation of the savings and loan industry who were suddenly allowed to make risky invesments by the time George W. Bush came to office in 2001 financial industry was vastly large, dominated by investment banks, unregulated and dominated by derivatives Securitization -security food chain linking various segments of industry into mutually reinforcing risk taking -person/bank making the initial loan no longer at risk for payback -sell mortgages to investment banks which put them together into CDO's (collateralized debt obligations) -encourages risky loans by initial lenders -CDO's were risky but grew rapidly, led to housing boom and rise in real estate prices (created a housing bubble)- could have been done more safely, but it wasn't. Knew what they were doing and did it anyways -predatory loans were profitable due to higher interest rates banks allowed to increase leverage ratio (loans out to cash in reserve), stimulated more borrowing, banks could gamble more -more incentive added with creation of credit default swaps, essentially insurance to remove risk entirely, further encouraged by risky lending, people in firms rewarded for taking massive risks

Paul Ehrlich vs Julian Simon

Erlich→ the population explosion Why overpopulation is our #1 environmental problem Simon→ an economist and business professor Market fundamentalism Believer in technology and growth Simon would support 1 billion Americans Population growth as desirable for economic growth and unproblematic as there will always be technological solutions for food and resource scarcity Ex. run out of water? Desalinate the ocean (duh)

Sustainable Development Goals (SDGs)

Goals resulting from a UN-led effort to end extreme poverty by focusing on 17 key indicators, the top five of which are no poverty, zero hunger, good health, quality education, and gender equality, with key benchmarks for 2030. Alongside continuing development priorities such as poverty eradication, health, education and food security and nutrition, it sets out a wide range of economic, social and environmental objectives. It also promises more peaceful and inclusive societies. It also, crucially, defines means of implementation 1. no poverty 2. no hunger 3. good health 4. quality education 5. gender equality 6. clean water and sanitation 7. renewable energy 8. good jobs and economic growth 9. innovation and infrastructure 10. reduced inqualities 11. sustainable cities and communities 12. responsible consumption 13. climate action 14. life below water 15. ecosystems-life on land 16. institutions 17. sustainability-strengthen the implementation and partnership

The Great Surge by Steven Radlet

In "The Great Surge," Steven Radelet sketches out 3 possible futures for developing countries ("progress expanded," "progress diminished," and "progress derailed"). -tremendous change witnessed, but often unrecognized -greatest progress among global poor in history -better access to education and health care -missing opportunity to take advantage and extend this trend Case for Change: poverty -# of people living in poverty has reduced dramatically, mostly in China and India -pattern still experienced by developing world why surge of progress beginning in 1990's: -end of the cold war -less proxy wars -stopped propping up dictators (but still some) -globalization/global integration -trade=improvements in technology (eg. vaccines, fertilizers, cell phones, shipping containers, electricity, paved roads, etc) expectations for future: -unsure if sustainable growth paints 3 scenarios 1- continue surge 2- stagnate 3- go backwards (would lead to rise in conflict, climate change) but this is a matter of choice (eg. invest in green tech)

Kishi's plan

Japan's Prime Minister Fumio Kishida on Monday set a new target for military spending over the next five years to 43 trillion yen ($318 billion), or 1.5 times the current level, as the country seeks defense buildup including the use of preemptive strike. The planned increase is "to firmly secure the necessities to pursue substantial reinforcement" of Japan's defense, Hamada said.

Anti-dumping

Legislation to protect an economy against the importing of a good at a price below its unit cost of production. Dumping, in economics, is a kind of injuring pricing, especially in the context of international trade. It occurs when manufacturers export a product to another country at a price below the normal price with an injuring effect. Antidumping and countervailing duties level the playing field for U.S. industries by remedying unfair trade actions from foreign businesses and countries.

NTBs (non-tariff trade barriers)

Market access barriers that result from prohibitions, restrictions, conditions or specific requirements and make importing products difficult and/or costly. -trade barriers that restrict imports or exports of goods or services through mechanisms other than the simple imposition of tariffs.

liberal democratic party

Monopolized Japanese government from its formation in 1955 into the 1990s; largely responsible for the economic reconstruction of Japan. The LDP is often described as a big tent conservative party. While lacking a cohesive political ideology, the party's platform has historically supported increased defense spending and maintaining close ties with the United States.

Deng Xiaoping's 4 modernizations

Progress in agriculture, industry, defense, and science and technology 1.) maintain authoritarian political control but reduce marxist ideological pruity 2.) take small, incremental steps to provide incentives for increased production, beginning with agriculture then onto other sectors 3.) manage the currency to keep products cheap for ease in export-led development 4.) carefully open the economy to imports and FDI esp in in areas that would lead to technology transfer 5.) gradually move up the technology/product development ladder to increase sophistication and value of products exported (while maintaining advantage from low cost labor in originalless high tech sectors- endless supply of labor from the rural villages- unique to china) 6.) build higher education infrastructure and send best brightest to world's best universities for graduate training

Tim Jackson Post Growth

Prosperity Without Growth argues that our present model of economic growth is not sustainable: it strains the resources of our planet to a breaking point, and causes climate change, environmental damage and psychological harm. Tim Jackson's Prosperity Without Growth is one of the most influential books on the postgrowth bookshelf, written in the wake of the financial crisis and clearly articulating the limits of economic growth as a measure of success. Jackson's new book, Post Growth: Life After Capitalism, offers a perspective on this world after growth. Once we let go of the very obviously flawed idea of endless economic growth as our metric of success, what becomes possible? More is not always a virtue. Struggle is not the only basis for existence. Competition is not the only response to struggle. Drudgery is not the only reward for labour. Productivity doesn't exhaust the return to work. Investment is not a meaningless accumulation of financial wealth. Denial is not the only response to our own mortality

social safety net

Social safety net programs protect families from the impact of economic shocks, natural disasters, and other crises A system of government transfers of cash or goods to vulnerable groups, undertaken to ensure that these groups do not fall below a socially acceptable minimum standard of living. The safety net is a collection of programs meant to protect individuals and families from financial and existential hardship. These programs are set up by the government to assist those who are unemployed or have no source of income. The safety net is not meant to support people long-term. Examples of SSNs are previously-contributory social pensions, in-kind and food transfers, conditional and unconditional cash transfers, fee waivers, public works, and school feeding programs.

The China model

The 'China model' is a blend between national control and ownership of resources and economic activities dominated by private entrepreneurs -socialist market economy (socialism with chinese characteristics) -10% growth annually in the 1980's up until recently -mao's 2nd economic plan failure nearly led to famine and total economic collapse -century of decline, poverty, and external control prior -when mao zedong died in 1976, rigid adherence to marxist ideology died with him

Schengen Agreement

The 1985 agreement between some - but not all - European Union member countries to reduce border formalities in order to facilitate free movement of citizens between member countries of this new "Schengenland." For example, today there are no border controls between France and Germany or between France and Italy. By signing the Schengen Agreement on 14 June 1985, Belgium, Germany, France, Luxembourg and the Netherlands agreed to gradually remove controls at their internal borders and to introduce freedom of movement for all nationals of the signatory countries, other EU Member States and some non-EU countries. Is the schengen agreement/EU in general in crisis? -YES -threat to common market may be overstated

BREXIT

The British Exit from the European Union June 23, 2016: UK conservative government holds referendum, supporters of "leave" prevail narrowly January 31, 2020: UK becomes first member to depart the EU February 2023: Rishi Sunak's conservative government negotiates final deal with the EU on the border front, ratification in process with stakeholders transition to departure faced many challenges, esp over northern ireland-ireland border issues

Common European Asylum System

The Common European Asylum System (CEAS) is a legal and policy framework developed to guarantee harmonised and uniform standards for people seeking international protection in the EU. It was established with the aim of enhancing practical cooperation on asylum matters and helping Member States fulfil their European and international obligations to give protection to people in need.

What explains the success of the Japan model

The East Asian model pioneered by Japan, is a plan for economic growth whereby the government invests in certain sectors of the economy in order to stimulate the growth of specific industries in the private sector. The main shared approach of East Asian economies is the role of the government. For East Asian governments have recognized the limitations of markets in allocation of scarce resources in the economy, thus the governments have used interventions to promote economic development This economic system differs from a centrally planned economy, where the national government would mobilize its own resources to create the needed industries which would themselves end up being state-owned and operated. East Asian model of capitalism refers to the high rate of savings and investments, high educational standards, assiduity and export-oriented policy

Great Leap Forward

The Great Leap Forward was a five-year economic plan executed by Mao Zedong and the Chinese Communist Party, begun in 1958 and abandoned in 1961. The goal was to modernize the country's agricultural sector using communist economic ideologies. Started by Mao Zedong, combined collective farms into People's Communes, failed because there was no incentive to work harder, ended after 2 years. poor planning and inefficient home industries hampered growth. Crop failures caused a famine that killed about 20 million people so the program was ended in 1961.

Ministry of Economy, Trade, and Industry (METI)

The Japanese government agency responsible for guiding and directing the development of the Japanese economy. METI has jurisdiction over a broad policy area, containing Japan's industrial/trade policies, energy security, control of arms exports, "Cool Japan", etc. METI will lead the way in forging a responsible energy policy that overcomes Japan's lack of natural resources while encouraging healthy competition in the private sector and maximizing Japan's capabilities in the areas of energy-saving initiatives and state-of-the-art environmental technology.

MIIKE coal miners strike

The Miike Struggle was a year-long struggle in Japan in 1960 between the organized labor movement, backed by a variety of left wing groups, and big business organizations, backed by the Japanese right, centering around a lengthy labor dispute at the Mitsui Miike Coal Mine on the west coast of Kyushu in southern Japan the Miike Struggle was the largest labor-management dispute in Japanese history. Ultimately, the labor movement in Japan was defeated at Miike, dealing a significant blow to its prospects going forward. As part of a national restructuring in the coal industry, in 1959 the Mitsui company announced plans to close the Miike mine, which would put thousands of miners out of work. The miners went on strike to protest the planned closures. The dispute continued for over a year and attracted nationwide support. Sōhyō provided national leadership and support for the strikers. Eventually the company prevailed and the miners lost their jobs.

Ministry of international trade and industry (MITI)

The Ministry of International Trade and Industry was a ministry of the Government of Japan from 1949 to 2001. The MITI was one of the most powerful government agencies in Japan and, at the height of its influence, effectively ran much of Japanese industrial policy, funding research and directing investment MITI used the foreign exchange allocation to stimulate the economy by promoting exports, managing investment and monitoring production capacity. In 1953, MITIs revised the Foreign Exchange Allocation Policy to promote domestic industries and increase the incentive for exports by revising the export-link system -MITI's job is to mediate conflict between firms of industry and choose the bath path for all through incentives and persuasion

Millenium Development Goals (MDGs)

The UN's creation of eight goals for economic development and social progress in 2000. Members agreed to reach the goals by 2015. -at time of implementation 500 people in extreme poverty -300 million suffering from hunger 1. Eliminate extreme poverty 2. Guarantee universal education 3. Promote gender equality and empower women 4. Reduce child mortality rates 5. Better maternal health services and reduction of maternal mortality rate 6. Reduce spread snd improve treatment for HIV/AIDS and other diseases 7. Environmentally sustainable development 8. Global development partnerships among member nations Unlike the MDGs, which only targets the developing countries, the SDGs (sustainable development goals) apply to all countries whether rich, middle or poor countries At least 21 million extra lives were saved due to accelerated progress. Our results show that the clearest victories during the MDG era were in matters of life and death. We calculate the number of lives saved beyond "business-as-usual" pre-MDG trends on child mortality, maternal mortality, HIV/Aids, and tuberculosis

Development Dilemma Robert Bates

The causes of underdevelopment -dependence, neocolonialism, and globalization Today's developing nations emerged from the rubble of the Second World War. Only a handful of these countries have subsequently attained a level of prosperity and security comparable to that of the advanced industrial world how the past can help us to understand the performance of nations in today's developing world

technology transfer

The communication of specific plans, designs, or educational programs necessary for the use of new technologies from one society or class to another. Technology transfer (TT) is a collaborative process that allows scientific findings, knowledge and intellectual property to flow from creators, such as universities and research institutions, to public and private users. Technology transfer is important to ensure that the company's innovation becomes commercialized. This helps early-stage intellectual property to become tools for research. It can also be used as a base for new products and services for public use. In economics, it is widely accepted that technology is the key driver of economic growth of countries, regions and cities. Technological progress allows for the more efficient production of more and better goods and services, which is what prosperity depends on. Technology transfer is important to ensure that the company's innovation becomes commercialized. This helps early-stage intellectual property to become tools for research. It can also be used as a base for new products and services for public use.

Official Development Assistance (ODA)

The most important part of foreign aid, referring to foreign aid that is offered by countries or by international organizations composed of a number of countries (it does not include aid offered by non-governmental organizations). The Official Development Assistance (ODA) is one of the government's sources of funds to finance programs or projects that promote social and economic development in the form of loans or grants. ODA includes activities carried out with the economic development and welfare of developing countries as their main objective.

Herman Daly's "Beyond Growth"

The population must be stabilized at a level consistent with the capacity of the earth to support its inhabitants What really must be stabilized is total consumption (population times per capita consumption). Both of these factors must be reduced Tim jackson: is it possible to reduce per capita consumption substantially in the industrial world? if not, can we survive continued high per capita consumption in the west and a dramatic expansion in consumption in the more populous developing countries as they further industrialize? -is economic growth still a legitimate goal for rich countries? Is it possible to have prosperity without growth?

World Systems Theory

Theory originated by Immanuel Wallerstein and illuminated by his three-tier structure, proposing that social change in the developing world is inextricably linked to the economic activities of the developed world. World Systems Theory is a view of the world in which countries are placed into different economic classes to explain their economic relationships with one another. These classes include Core, Semi-Periphery, and Periphery. World-Systems Theory can be useful in understanding world history and the core countries' motives for imperialization and other involvements like the US aid following natural disasters in developing Central American countries or imposing regimes on other core states.

"Race to the Bottom" Hypothesis

Theory that globalization harms the environment. Countries open to trade and investment adopt weaker environmental regulations out of fear of a loss in competitiveness. This theory is though of as to be semi-flawed. Environmental Kuznets Curve shows that as economies grow due to globalization, pollution increases until at a certain cap, pollution diminishes. This serves to prove that by increasing national income, international trade should work to protect the environment. Race to the bottom is a socio-economic phrase to describe either government deregulation of the business environment or reduction in corporate tax rates, in order to attract or retain usually foreign economic activity in their jurisdictions

lee hypothesis

This paper discusses the hypothesis that democracy hurts economic growth and development Democracy and Economic Development. It is often claimed that nondemocratic systems are better at bringing about economic development. This belief sometimes goes by the name of "the Lee hypothesis," due to its advocacy by Lee Kuan Yew, the leader and former president of Singapore. It states that authoritarian regimes are better at enriching poor nations than democracies. Proponents of the Lee thesis attribute this to an authoritarian focus on economic development rather than on freedom, which is seen as unnecessary to eradicating poverty

General Agreement on Tariffs and Trade (GATT)

a 1948 agreement that established an international forum for negotiating mutual reductions in trade restrictions the GATT provided the rules for much of world trade and presided over periods that saw some of the highest growth rates in international commerce. The GATT 1994 aims at further liberalizing trade in goods through the reduction of tariffs and other trade barriers and eliminating discrimination

MNCs (multinational companies)

a company based in one state with affiliated branches or subsidiaries operating in other states Multinational corporations conduct business in two or more countries. Some consider a multinational company to be one that generates 25% or more of its revenue outside the home country. An MNC can have a positive economic effect on the countries in which it operates. By producing the same quality of goods at lower costs, multinational companies can reduce prices and increase the purchasing power of consumers worldwide. Other benefits include a direct financial investment in foreign countries and job growth in their local economies.

The World Bank group

a group of five closely associated institutions that provides financial and technical assistance to developing countries -The other main product of the bretton woods conference -set up to promote the international flow of capital for productive purposes -current objective is to offer loans at reasonable terms to member developing countries willing to engage in projects to increase productive capacities and reduce poverty 1.) international finance corporation- IFC is the largest global development institution focused on the private sector in developing countries. IFC, a member of the World Bank Group, advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. 2.) International development association- Established in 1960, IDA aims to reduce poverty by providing zero to low-interest loans (called "credits") and grants for programs that boost economic growth, reduce inequalities, and improve people's living conditions. The executive head is the president of the World Bank (typically from the US)

Dependency Theory

a model of economic and social development that explains global inequality in terms of the historical exploitation of poor nations by rich ones Dependency theory is a sociological theory which holds that economic events in history have encouraged developing countries to depend upon the support of more advanced nations. Dependency theory focused on individual nations, their role as suppliers of raw materials, cheap labor, and markets for expensive manufactured goods from industrialized countries. The unequal exchange relationship between developed and developing countries was viewed as contributing to poor economic growth a model of economic and social development that explains global inequality in terms of the historical exploitation of poor nations by rich ones Dependency theory is the fact that resources flow from a "periphery" of poor and underdeveloped states to a "core" of wealthy states, enriching the latter at the expense of the former. Dependency theory was developed as a framework for understanding the reasons for the divergence in the development level between wealthier and poorer nations. Historically, the theory was first used to explain the underdevelopment of Latin America and is associated with scholars such as Paul Prebisch and Hans Singer

Causes of underdevelopment

dependence, neocolonialism, globalization 1.) the enduring effects of colonialism 2.) the dependency theory 3.) world systems theory 4.) system of trust -level of trust inherent in society- cases of econ. actors supporting one another -absence of trust--> poor economic performance (no large scale corporate development, family firms stay as such)

Bicycle theory (EU)

has to keep going to avoid falling over, the EU integration has to progress in order to avoid backtracking It argues that the world must aggressively keep removing barriers to trade, because, in the absence of progress, there will be backsliding. If you stop pedaling your bicycle, you'll fall over.

primary source of revenue for governments

in the 19th century tariffs and duties were the primary sources of revenue, now tariffs are almost gone and most governments obtain revenue through income taxes -governments cannot collect taxes if citizens are not working, problems arise when business are going out of business and people are being laid off protectionism can encourage unproductive and inefficient industries Protectionism refers to government policies that restrict international trade to help domestic industries. Protectionist policies are usually implemented with the goal to improve economic activity within a domestic economy but can also be implemented for safety or quality concerns.

IGOs (Intergovernmental Organizations)

institutions created and joined by states' governments, which give them authority to make collective decisions to manage particular problems on the global agenda The main purposes of IGOs were to create a mechanism for the world's inhabitants to work more successfully together in the areas of peace and security, and also to deal with economic and social questions.

Washington Consensus

label used to refer to the following fundamental principles of free trade: 1)that free trade raises the well-being of all countries by inducing them to devote their resources to production of those goods they produce relatively most efficiently; and 2) that competition through trade raises a country's long-term growth rate by expanding access to global technologies and promoting innovation It often refers to a dogmatic belief that developing countries should adopt market-led development strategies that will result in economic growth that will "trickle down" to the benefit of all. This is the set of 10 policies that the US government and the international financial institutions based in the US capital believed were necessary elements of "first stage policy reform" that all countries should adopt to increase economic growth.

GATT MTN sessions

negotiations between GATT member nations aimed at reducing tariff and nontariff trade barriers. The WTO replaced the GATT as the administrative body. The most recent round of multilateral trade negotiations was called the Doha round which began in 2001, there were 8 GATT MTN sessions prior 1.) Geneva Tariff Conference 1947 2.) Annecy Tariff Conference (23 countries) 3.) Torquay Tariff Conference (13 countries) 4.) Geneva Tariff Conference (38 countries) 5.) Dillon Round (26 countries) 6.) Kennedy Round (62 countries- tariffs and antidumping) 7.) Tokyo Round (102 countries- tariffs, NTB's) 8.) Uruguay Round (123 countries- new sectors (service)) 9.) Doha round (147 countries, suspended in 2008)

WTO (World Trade Organization)

organization through which member nations negotiate trading agreements and resolve disputes about trade policies and practices -member driver, consensus based IGO organized on 4 levels 1.) ministerial conference, attended by all member states meets every 2 years, responsible for long range planning of WTO 2.) general council for day to day operations, include dispute settlement body and trade policy review body 3.) councils that oversee broad areas of trade (goods council, services council, trade-related aspects of intellectual property council) 4.) further breakdown of these areas into specific areas (access, technical barriers)

IMF (International Monetary Fund)

part of the UN makes loans to countries to finance development Purpose: one of two main products of the Bretton Woods conference with objectives of safeguarding international financial and monetary stability (exchange rates) and providing financial backing for the revival and expansion of international trade The International Monetary Fund (IMF) works to achieve sustainable growth and prosperity for all of its 190 member countries. It does so by supporting economic policies that promote financial stability and monetary cooperation, which are essential to increase productivity, job creation, and economic well-being. The IMF provides broad support to low-income countries through policy advice, capacity-building activities, and concessional financial support - meaning it is provided at below-market interest rates.

The collapse of western civilization by Naomi Oreskes and Erik Conway

problem: we the children of the enlightenment failed to act on robust information about climate change and knowledge of damaging events that were about to enfold -in 1970's scientists began to recognize that human activities were changing the physical and biological functions of the planet in consequential ways -by early 2000s fires, floods, hurricanes, and heat waves began to intensify --> active denial: reflected natural variability --> passive denial: continued life as before, unconvinced that broad changes in industry and infrastructure were necessary -at a time when urgent need for energy transition became palpable, world production of greenhouse gases increased -why not act? -> human adaptive optimism -->reductionist approach: impeded investigations of complex systems, hard for scientists to articulate the threat posed by climate change -->political leaders believed they had more time to act than they really did -->when disruptive climate change was becoming apparent, wealthy nations dramatically increased their production of fossil fuels Market failure -western civilizaiton became trapped in the grip of 2 inhibiting ideologies 1.) positivism -experience, observation, and experiment could gather reliable knowledge about the real world and this knowledge could translfate into power -but in this critical period the massive climate change research had little impact -power resided not with those who understood the climate system, but in political, economic, and social institutions that had strong interest in maintaining the fossil fuels *the carbon combustion compelx -fossil fuel producers -industries that served energy companies -manufacturers whose products relied on inexpensive energy -financial institutions that serviced their capital demands and advertisisng -->maintaining the carbon-combustion complex was in the self interest of these groups, so they hid behind a network of think tanks that issued challenges to scientific knowledge they found threatening, giving the impression that the science was still uncertain 2.) market fundamentalism -societal needs were served most efficiently in a free market system -free markets were the only manner of doing so that did not threaten personal freedom -->carbon-combustion complex began to treat science as an enemy to be fought by whatever means necessary -->industrialists and financiers perceived large opportunities in less regulated markets and did the most to spread and promote deregulation -->ronal reagan: government was the problem, not the solution

oil breakpoint

the world is running out of oil, and we will soon reach the point where we will run out, and be forced to find energy alternatives -some say we reached it in 2008 -will the russian invasion of ukraine have a lasting effect? -is a new breakpoint imminent? -he who owns the oil will own the world examples of breakpoints in the past -wood to coal -whale oil to petroleum OPEC's goldilocks target $70/barrel -gives producers what they need in income, but not so high that it stimulates drasmatic action by consumers in conservation or alternative energy source development -Nixon called for a new manhattan project that would lead to energy self sufficiency by 1980 peak oil: the hypothetical point in time when the global production of oil reaches its maximum rate, after which production will gradually decline.

Mundell-Fleming Trilemma

tradeoff between free capital mobility, monetary autonomy, and exchange rate management you can only pick two! The policy trilemma, also known as the impossible or inconsistent trinity, says a country must choose between free capital mobility, exchange-rate management and monetary autonomy (the three corners of the triangle in the diagram). Only two of the three are possible. 1.) Foreign exchange stability (a fixed exchange rate) 2.) Capital mobility (free capital movement, absence of capital controls) 3.) national economic independence (control over domestic economy management, an independent monetary policy) two of these goals can complement each other while contradicting the third objective. Each state decides which two to pursue based on its history, national interests, and international political economic conditions

influence peddling

using one's institutional position to grant favors and sell information to which one's co-conspirators are not entitled Influence peddling is the practice of using one's influence in government or connections with authorities to obtain favours or preferential treatment for another, usually in return for payment The fundamental difference between these two categories is that, unlike the "corruptee" (i.e., the bribe-taker in corruption schemes), the "influence peddler" (i.e., the bribe-taker in influence peddling schemes) does not have the power to perform the corrupt act, but only acts as an intermediary,

the challenges facing tradition regimes

why state socialism failed: did the opposite of what makes an economy grow and be sucessful -made people more unproductive, because it removed incentives for productivity -incentivized doing nothing but what you have always done -took no risks, no effort to innovate (even penalized innovation) -incentives were in the wrong direction--> focused on quantity, not quality-->meeting quantitative quotas -stifled competition- no effort to stimulate competition -deter investment to new development-->channel resources to current consumption or to unproductive areas -capriciousness-->no consistent or reliable rules, policies, or expectations so that it is hard to plan or make assumptions about the future (leadership has no real fear of mass accountability) -stay closed to rest of the world in terms of ideas, resources, consumers, and investment -->don't accept finance or products from other countries (creates an autarky- completely isolated and protected from the rest of the world) -provide no rule of law or protection of private property -full command state socialist economy (everything bought, sold, and priced is controlled--> all decisions are made for you) -internal shortages or imbalances which lead to informal trade/black market activity -fully repressed entrepreneurial system-->no personal incentives for productive behavior, no benefit from competition -no private property--> property controlled by state officials who benefitted at all times -trade only with other state socialist economies