History 160 MT 2 Key Terms

Africanizationand Villigization

Africanization or Africanisation (lit., making something African) has been applied in various contexts, notably in geographic and personal naming and in the composition of the civil service e.g. via processes such as indigenization. and Villigization is the concentration of the population in villages as opposed to scattered settlements, typically to ensure more efficient control and distribution of services such as health care and education. the transfer of land to the communal control of villagers.

"Closing the gold window"

August 15, 1971: • Nixon "closes the gold window" • BW system collapses, once $s gold backing ends Why Close: Nixon's options - /1/ Devalue $ ....bad for a superpower - /2/ Restrict capital mobility... bad for a superpower - /3/ Reduce gold outflow....but • Vietnam War, how to cut military spending? • Raise tariffs to increase US exports, but free trade? • Tighten money, so consumers save, not spend, but this is recessionary and how to win the election?

Economic Commission for Latin America (ECLA)

ELAC was established in 1948 as the UN Economic Commission for Latin America,[4] or UNECLA. In 1984, a resolution was passed to include the countries of the Caribbean in the name.[5] It reports to the UN Economic and Social Council (ECOSOC). is a United Nations regional commission to encourage economic cooperation. ECLAC includes 45 member States (20 in Latin America, 13 in the Caribbean and 12 from outside the region), and 13 associate members which are various non-independent territories, associated island countries and a commonwealth in the Caribbean. ECLAC publishes statistics covering the countries of the region[2] and makes cooperative agreements with nonprofit institutions.[3] ECLAC's headquarters is in Santiago, Chile. Dependency Theory

IMF

Formed in 1944 at the Bretton Woods Conference, it came into formal existence in 1945 with 29 member countries and the goal of reconstructing the international payment system. Countries contribute funds to a pool through a quota system from which countries experiencing balance of payments difficulties can borrow money.

Jomo Kenyatta

In Kenya: • Patron-client capitalism in early '60 (KANU incorporates KADU) • Patron-client capitalism in early '60 (KANU) • Keep old institutions • FDI • Several languages • Exports - Coffee - Tea

Julius Nyerere

In Tanzania: • One-party socialism (TANU) • Africanization • ISI and Villigization • One language • Exports - Coffee - Sisel • Unified language (Swahili) and curriculum, abolition of tribal chiefs

Nehru

Jawaharlal Nehru (1889-1964; PM '47-'64) - Educated at Harrow and Cambridge - Congress Party leader, Ghandi ally - Blend econ nationalism and socialism

Kwame Nkrumah

Kwame Nkrumah PC (September 18 or 21, 1909[a] - 27 April 1972) led Ghana to independence from Britain in 1957 and served as its first prime minister and president. Nkrumah first gained power as leader of the colonial Gold Coast, and held it until he was deposed in 1966. An influential 20th-century advocate of Pan-Africanism, he was a founding member of the Organization of African Unity and was the winner of the Lenin Peace Prize in 1962. According to intelligence documents released by the American Office of the Historian, "Nkrumah was doing more to undermine [U.S. government] interests than any other black African."

Philips Curve

Phillips curve is a historical inverse relationship between rates of unemployment and corresponding rates of inflation that result within an economy. Stated simply, decreased unemployment, (i.e., increased levels of employment) in an economy will correlate with higher rates of inflation. In the 1960s, the trade looked stable In the 1970s, note rapid shift upward (Compare '70 and '71 with '74 and '75) '70 and '71 : ~2% less inflation for ~1% more unemployed '74 and '75: tradeoff or a crisis?

Raúl Prebisch

Raúl Prebisch (1901-1986) and ECLA - During GD, prices of commodities decreased much more than prices of manufactures • Terms of trade: Price of Exports (mostly Commodities in Latin America, Africa, Asia)/ Price of Imports (mostly Manufactures from Euro., US) • ToT decrease during GD (and in general vs manufactured goods, slide below) Raúl Prebisch (1901-1986) and ECLA - Solution: shift from commodities to manufactures • Agri market was competitive (many small producers) • Manufacturers organized oligopolies (few big producers)

Robert Triffin

Robert Triffin was a Belgian economist best known for his critique of the Bretton Woods system of fixed currency exchange rates.

Bretton Woods (1944)

The Bretton Woods Conference, formally known as the United Nations Monetary and Financial Conference, was the gathering of 730 delegates from all 44 Allied nations at the Mount Washington Hotel, situated in Bretton Woods, New Hampshire, United States, to regulate the international monetary and financial order after the conclusion of World War II. The conference was held from July 1-22, 1944. Agreements were signed that, after legislative ratification by member governments, established the International Bank for Reconstruction and Development (IBRD) and the International Monetary Fund (IMF).

Dodge Line

The Dodge Line was a financial and monetary contraction policy drafted by Joseph Dodge for Japan to gain economic independence after World War II. It was announced on March 7, 1949. It recommended: Balancing the national budget to reduce inflation More efficient tax collection Dissolving the Reconstruction Finance Bank because of its uneconomical loans Decreasing the scope of government intervention Fixing the exchange rate to 360 yen to one US dollar to keep Japanese export prices low Dodge had the Reconstruction finance bank, which was a major conductor of inflation-financed subsidies, shut down. He took important steps to restore Japan's foreign trade to private hands. The terms of all transactions were determined at the unchanging official exchange rate of $1 = 360 yen.

IBRD

The International Bank for Reconstruction and Development (IBRD) is an international financial institution that offers loans to middle-income developing countries. The IBRD is the first of five member institutions that compose the World Bank Group and is headquartered in Washington, D.C., United States. It was established in 1944 with the mission of financing the reconstruction of European nations devastated by World War II.

Triffen Dilemma

The Triffin dilemma is the conflict of economic interests that arises between short-term domestic and long-term international objectives for countries whose currencies serve as global reserve currencies. It points out that the country whose currency, being the global reserve currency, foreign nations wish to hold, must be willing to supply the world with an extra supply of its currency to fulfill world demand for these foreign exchange reserves, thus leading to a trade deficit. (If Foreign Dollar Liabilities > Gold Reserves...What Happens?)... Foreigners will eventually have more dollars than US has gold reserves

World Bank

The World Bank is an international financial institution that provides loans[3] to developing countries for capital programs. It comprises two institutions: the International Bank for Reconstruction and Development (IBRD), and the International Development Association (IDA). The World Bank is a component of the World Bank Group, which is part of the United Nations system. The World Bank's official goal is the reduction of poverty. However, according to its Articles of Agreement, all its decisions must be guided by a commitment to the promotion of foreign investment and international trade and to the facilitation of Capital investment.

Yoshida Doctrine

The Yoshida Doctrine, named after Japan's first Prime Minister after World War II Shigeru Yoshida, was a strategy adopted post World War II under Prime Minister Shigeru Yoshida, in which economics was to be concentrated upon majorly to reconstruct Japan's domestic economy while the security alliance with the United States would be the guarantor of Japanese security. The Yoshida Doctrine shaped Japanese foreign policy throughout the Cold War era and beyond.

Dollar Glut and Overhang

The dollar glut is a term for the accumulation of American dollars outside of the United States as a reserve currency, contrasted with the dollar gap, which led to the creation of the Marshall Plan following World War II. The eventual shift to a dollar glut forced the end of the gold standard in the United States and led to the collapse of the Bretton Woods system. The stability of the Bretton Woods system came to depend upon the ability of the US government to exchange dollars for gold at $35 an ounce. The American ability to fulfill this commitment began to diminish as the postwar dollar shortage was transformed into an overabundance of dollars, also known as the dollar glut. "dollar overhang" (liabilities > reserves)

Perspiration vs Innovation

Working hard pays off.... PaulKrugram: bread-and-butter economic forces as high savings rates, good education, and the movement of underemployed peasants into the modern sector MosesAbramovitz: "differences among countries in productivity levels create a strong potentiality for subsequent convergence of levels, provided that countries have a "social capability" adequate to absorb more advanced technologies."

Stagflation

a combination of stagnation and inflation, is a situation in which the inflation rate is high, the economic growth rate slows, and unemployment remains steadily high. After'70sproductivity slowdown, wages stagnate • Implications for inequality ...and electoral platforms DeclineofKeynesianism

Agricultural Marketing Boards

meant insure farmers against price fluctuations, allow government investment in new technologies, etc. they are an organization set up by a government to regulate the buying and selling of a certain commodity within a specified area. They most commonly exist to help sell farm products such as milk, eggs, beef or tripe and are funded by the farmers or processors of those crops or products. Marketing boards often also receive funding from governments as an agricultural subsidy.

MITI

ndustrial targeting (MITI) since far behind US • Licensing foreign technology (or "reverse engineering"), over permitting multinationals to open branches

Bandung Conference and Non-Alignment ('55)

• Non-Aligned Movement (NAM) - Voice for recently independent in Asia and Africa - Based on non-interference (India and China) • Bandung Conference (Indonesia, '55) - Third way between the US and Soviet Union - New large countries embrace: Indonesia, Turkey, Egypt