World Politics Ch. 7-13
International Law
"A body of rules that binds states and other agents in world politics; considered to have the status of law" (pg. 459) - States have equal rights to make international law and can only be bound to those they consent/agree to
How is international law made?
(1) Custom: general practices accepted as law by states (2) International treaties: agreements written, negotiated and ratified by states (e.g. Geneva Convention) (codification of customary international law reduces negotiation and room for interpretation)
When is enforcement most likely?
(1) Domestic demands for action; causes political costs if leaders do not respond to call (2) When choosing to take action would also serve larger geopolitical interests (3) When action can be depicted as consistent with the norms of sovereignty (e.g. TANs aim to reframe enforcement to make states less anxious about losing their sovereignty)
How governments react when unable to pay their debt
(1) Enact austerity measures (which helps payback international debt but has domestic consequences) (2) Choose to default (stop paying debt, or change terms of agreement to make more favorable; more popular option for domestic population but displeases international creditor)
What are the 3 major factors that account for differences in ongoing development
(1) Geography: endowments, climate, disease, resource curse (2) Government policy: investment in infrastructure, security of property rights, stability (3) Domestic institutions: representation
Who Holds Political Power?/Factors determining who gets what they want in terms of trade policy
(1) Group size collective action problems; larger groups increase risk/temptation to free ride smaller groups are better organized (2) Political Institution democracies tend to be less protectionist than dictatorships because democracy leaves more openness in decision making process (3) Political parties historical ties between social parties and political parties
What does the IMF do in debt crisis?
(1) Negotiate economic reforms (2) Extend cheap loans to debtor countries if debtor countries agree to IMF's programs of reform (IMF is able to give out cheap loans because the incentive is not to make money but to ensure overall stability) (3) Provides certification to debtor countries; thus signaling their approval and letting other countries know the IMF thinks they are worthy of lending to
How can the esource curse, early economic activity, and colonial legacies explain why some countries have better institutions than others?
(1) Resource curse: leads to development of non-democratic institutions - Small groups with power over the resource will want to block democracy (2) Early economic activity: - Plantation, agriculture & mining leads to high inequality;(non democratic); creates small group of wealthy, powerful people who can block reforms (3) Colonial legacies: Imperial powers subordinate interests of colonies to benefit their own mother country
Why states sign agreements
(1) Self Interest Motivations - good for stability and prosperity: fosters more productive environment, less violence and conflict, stability increases trade - global impact of international conflict: can spillover and cause problems for neighboring states (2) Political Motivations - want assistance from other states or desire membership to certain organizations that is contingent on following human rights standards - demonstrate commitment to Democratic domestic reform (3) Moral motivations - agreements reflect values; states feel it is the right thing to do
Social infrastructure
(e.g.) public health, sanitation, education, urban planning
Physical infrastructure
(e.g.) railroads, airports, utilities and ports
Selection problem
(in international relations) refers to the fact that states decide the rules by which they will constrain themselves, thus it is no surprise they comply with the very rules they have written (467)
Controversy over IMF
- "Conditional loans" violate sovereignty of states to determine their own economic system - IMF favors certain reforms "designed to serve the interests of creditor nations"
Criticism of human rights
- Based on Western Liberal philosophical tradition, not universally shared (i.e. individual rights and freedom placed above all) - Idea of universal rights clashes with the principle of sovereignty - Vehicle of more powerful Western states to advance its values and interests
How can geography account for development?
- Certain endowments based on location are more conducive to development than others - Climate: diseases, distance from market, access to seaports (tropical climates less able to achieve industrialization) - Resource curse
Domestic Factors in Understanding Development (p. 425)
- Domestic political institutions determine how people's interests are translated into policy - Individual/group interests and their ability (or inability) to interact in ways that foster cooperation
Economic case for free trade
- Economically beneficial for nation as a whole - Allows countries to appreciate division of labor/specialization - Allows countries to focus on making things they're good at, while trading for that which they have trouble producing - Focusing on strongest industry is more productive
Do states take action on human rights?
- Enforcement is rare since the gains are small and the cost of enforcement is high - Human rights violations often occur as part of larger, complex, ongoing conflicts (making it more costly and controversial for states to intervene) - States that do the enforcing have to bear the costs of enforcement
Institutional bias against developing countries
- IMF imposes conditions that favor lenders and rich countries - Rules give advantage to those who created them in the first place (and developing countries were typically not present for the writing of the rules)
How can government policy account for development?
- Invest in foreign infrastructure: physical, social, economic, political, etc. - Secure property rights → sense of security → more investment and opportunity taking → productive economic activity - More stability increases willingness to invest
Why do some governments not provide? (in terms of Development)
- Lack of capacity or technical expertise - Role of special interest groups: particularistic interests are bad for development as a whole - Traditional economic sectors threatened by competition that modern industrialization would provide
Optimistic view of international law
- Louis Henkin "almost all nations observe almost all principles of international law almost all the time" - Failure to comply is only due to imprecision of the law itself and lack of capacity
Can economic warfare be avoided?
- Neighboring countries/those with strong interests can intervene on behalf of debtor nations - Intervention by IMF (help avoid crisis)
Middle ground view of international law
- No outside enforcement is inherently limiting - Yet time and effort put into it makes commitment worthwhile - Reduces cost of joint decision making - Secures self interest by facilitating cooperation
Skeptical view of international law
- States create and enforce international law (no international police force to ensure compliance) - International law therefore reflects state interests rather than a true constraint on state action - States only make and agree to laws they want to comply with in the first place
How can governments increase economic productivity?
- The gov't can directly increase economic productivity by financing projects to make use of resources - And indirectly: by building up infrastructure, better roads, more lines of communication
Trade Barriers Are Rooted In Domestic Politics
- Within a country, trade barriers create winners and losers; Winners = producers of the protected good - Losers = consumers of protected good, exporters, and the general population - Consumers and industries that use the protected good suffer from inflated prices due to trade barriers
Bias in the World Economy
- World economy maintains hierarchy - Developing countries are main producers of primary products (volatile prices, less stability, less incentive to invest in development) - Manufactured goods produce more stable economies - Terms of trade continually decline for developing countries because their products have less value relative to manufactured goods produced by developed nations
Factors of Production
1. Land 2. Labor (unskilled labor) 3. Capital for investment (machinery and equipment and financial assets to employ said equipment) *Human capital (skilled labor)
World Trade Organization (WTO)
1995, established to govern international trade relations; encourages and polices multilateral reduction barriers to trade and oversees the resolution of trade disputes
Non-excludable
A characteristic of public goods, available to all; without exclusion of consumption
Specialization
A method of production that relies on producing a limited (or "specific") service or good to gain productive efficiency within an overall system - Division of labor (pg. 293) - Typical of modern societies and developed countries
Boomerang model
A process through which NGO's in one state are able to activate transnational action/advocacy networks which puts pressure on originating government (481) - Method of indirectly pressuring governments to take action
Joint products
A product where public goods come bundled with private goods for which actors are willing to pay (543)
Individual petition
A right that permits individuals to directly petition international legal bodies if they believe a state has violated their rights (524)
Quotas (quantitative restriction)
A set limit restricting the amount of a particular good that is allowed to be imported
Import-Substituting Industrialization (ISI)
A set of policies to reduce imports and encourage domestic manufacturing (p. 442) - Often achieved through: trade barriers, subsidies to manufacturing, and state ownership of basic industries
Recession
A sharp slowdown in the rate of economic growth and activity (pg. 350)
Oligopoly
A situation in which a market or industry is dominated by a select few (powerful) firms (438)
Tariffs
A tax imposition on imports raising the domestic price of imported goods in order to protect domestic producers from external competition
Customary International Law
A type of international law that usually develops slowly, over time, as states begin to recognize them as appropriate and correct (460) - (e.g. diplomatic immunity, freedom of the seas, or crimes against humanity)
Genocide
Acts committed with the intent to destroy, in whole or part, a national, ethnical, racial, or religious group
Universal Declaration of Human Rights (UDHR)
Adopted by UN General Assembly; foundation of modern human rights laws; based on the four pillars of: dignity, liberty, equality and brotherhood
International Covenant on Civil and Political Rights (ICCPR)
Agreement detailing the basic civil and political rights of individuals and nations (496) - Right to liberty, presumption of innocence and equal standing under the law, freedom from torture, cruel punishment, discrimination etc. - Favored by Western states
International Covenant on Economic, Social and Cultural Rights (ICESCR)
Agreement that specifies the basic economic, social and cultural rights of individuals and nations (496) - Equal pay, equal work opportunity, right to unionize and strike, paid maternity leave, free primary education - Favored by Eastern nations - U.S. did not ratify because ICESCR covers rights that would require U.S. to reform
Resource Curse
An abundant natural resource creates fewer incentives to encourage production in other areas; extreme specialization; exclusive focus on one particular industry and the activities related to that industry (pg. 431) - Effortless inflow of money to the government (from natural wealth) provides fertile ground for corrupt practices (no need for taxation, ability to pay off citizens)
Infrastructure
Basic structures necessary for social activity such as transportation and telecommunications; networks; and power and water supply (p. 425) - Encourages growth by allowing citizens to focus their efforts on economic activity in a productive way
Who Benefits From Sovereign Borrowing? Why?
Business, consumers, and governments; because money can be used to increase economic productivity
Group 77 (p. 446)
Coalition of developing countries in the UN, attempt to use collective power of numbers in the world political arena to reform the economic order in favor of the developing world - formed in 1964; has grown to over 130 members
Why the Conflict over Sovereign Lending?
Conflict arises if borrowing country cannot service debt, and leads to a sovereign debt crisis where the debtor country wants to reduce the amount of money it owes but creditor nations want to be paid in full
Overexploitation
Consumption of a good at a rate that is collectively undesirable; overuse of a resource
Asian values
Contrasting traditional Western values; elevates the rights of families and communities; places social and political stability over the rights of individuals (499)
Multinational Corporations (MNCs)
Corporations that set up facilities in a foreign country (investing abroad as opposed to simply exporting); thereby operating in a number of countries outside its country of origin (pg. 366)
Externalities
Costs or benefits for stakeholders other than the actor who made the decision to take action (536) - Decision maker does not single handedly reap all the consequences or gains of their action
Hecksher- Ohlin Theory (factor endowments theory)
Countries specialize in their comparative advantage, then trade for that which they do not specialize in (p. 295) - e.g. labor-rich countries export labor intensive goods - why do some countries not focus on industries of which they have the most endowments?: answer = protectionism (barriers to trade)
Most favored nation status
Countries with MFN status agree to extend similar concessions and treatment to each other-- Guarantees all MFN countries equally favorable trading terms
Tools of economic warfare
Creditors can cut off future lending, freeze bank account and other assets to debtors in creditor country to retaliate against debtor default
Obligation
Degree to which states are legally bound to an international rule (463)
Delegation
Degree to which third parties (courts, arbitrators, mediators) are given authority to implement, interpret, and apply international legal rules; to resolve disputes over rules; or make additional rules (464)
What types of domestic institutions are best for development?
Democracies and institutions that are more representative show more development
Default
Failure to make payments on a debt - e.g. When conditions make it harder for debtor governments to keep up their payments, civilians may prefer their government simply default in order to force a reduction in their debt burden (pg. 351)
Trade liberalization
Favoring policies that put less restriction on trade
Who Benefits From Sovereign Lending?
Foreign lenders who get higher rate return (benefit from what?); because they are being paid more for the borrowing country to use their capital
Vienna Convention (1985)
Framework convention aimed at regulating activities for the protection of the ozone layer, particularly the emission of CFCs
Common-pool resources
Goods available to everyone (difficult to exclude anyone from using these resources); one user's consumption reduces the amount available to others; leads overexploitation due to competition and incentive to take as much of resource for self as possible
Austerity
Governments attempting to service their debts often impose unpopular measuresdomestically in order to earn back money needed to payoff their debts - domestic economy may be weakened in order to allow the government to continue paying debts to foreign creditors
Conditional amnesty
Grants forgiveness in return for full and truthful testimony/accountings of their role and knowledge of past abuses
OPEC
Group of developing country oil producers (created in 1960)
When do states cooperate on the use of public goods and common pool resources?
Group size matters (smaller groups have more success). Iteration can help And bundling public goods with private goods (creating joint products)
Privileged group
Individual actors, or a small group of actors, who receive such exceptional benefits from a public good that they are willing to bear the full cost of providing for all (actors vary in size and intensity of preference for a public good) (p. 544)
Framework Convention on Climate Change
International agreement that provides an overall framework for intergovernmental efforts on climate change (Conference of the Parties for establishing rules) - Forum for ongoing negotiations - Initial frameworks like the FCCC often generate substantive agreements and protocol (creates a channel for progress)
Montreal Protocol (1989)
International treaty designed to protect the ozone layer by phasing out the production of CFCs and other chemical compounds
Foreign Direct Investment (FDI)
Investment in a foreign country via acquisition of facilities abroad; allows investors to maintain managerial control - Form of international capital movement carried out by corporations to maintain control over the facilities they establish overseas (pg. 343)
Portfolio Investment
Investment in a foreign country via stocks or bonds; the investor has some claim on income but no managerial role or control in foreign operation (pg. 343)
Why violate human rights?
Lack of capacity: - development, resources, knowledge - no control over military and police National security: - rights violations in the interest of preserving national security (for the greater good) - in response to external threats Regime security: - government fears internal threat - opposition + uprising - interest in maintaining authority and traditional order
Soft law
Laws that are aspirational, ambiguous, and do not delegate significant powers to third parties (flexible and easier to achieve)
Sovereign lending
Loans from private financial institutions in one country to sovereign governments of another country (pg. 343)
"Status of law"
Made according to secondary rules
High obligation rules
Must be performed in goof faith and if breached require reparations to the injured party
Reciprocity
Mutual agreements to lower tariffs and other barriers to trade; involves trade-policy concessions from one government to another (p. 320)
Public goods
Non-excludable and non-rival in consumption; leads to free riding and disconnect between the interests of individuals and interests of the group
Procedural norms
Norms defining how decisions involving multiple actors should get made - often pretty well structured in domestic politics, but in nternational relations are less robust
Norms of fairness
Norms that are not required but reflect deep seated understanding; may shape political appeals and policies (p. 470)
Constitutive norms
Norms that define who is a legitimate or appropriate actor under what circumstances (e.g. what it means to be a state)
Regulative norms
Norms that govern the behavior of actors in their interactions with one another (471)
What causes countries to be unable to service their debts?
Occurs if... (1) borrowing country doesn't use money wisely (2) crisis elsewhere effects the international community
IMF (International Monetary Fund)
Organization aimed at global monetary cooperation, financial stability, international trade, and sustainable economic growth (pg. 356) - Members pledge financial resources (proportional to size of country and importance in trading system) - Has the ability to command large sums of money at short notice
Amnesties
Pardons individuals who committed human rights abuses or other political crimes as part of an effort to move on by putting past conflicts to rest (524)
Article 4 of the ICCPR
Permits the suspension of some rights in the cases or social or public emergency
Washington Consensus
Policy recommendations leaning towards acceptance of market-oriented policies (445) - Trade liberalization (attempt to make national producers more competitive on world markets) - Privatization (selling of government enterprises to private investors) - Fiscal and monetary policies to avoid large deficits and high inflation - Openness to foreign investment and international capital flows in general
Naming and Shaming
Practice of calling out (norm) violators, reducing their credibility and status as a "good country;" eventually weakens reputation and puts potentially profitable cooperation at risk
World Bank
Provides loans at below market interest rates to developing countries; promote economic development and development projects (pg. 348)
Ricardo-Viner Theory
Rather than individual factors of production such as land, labor or capital; it is the overall sector in which these factors are employed that determine who favors protectionism and who opposes it. This focuses on industries not factions. (p. 306) - Thus, steel manufacturers care not about the profits of capital but rather profits specific to the steel industry - Because factors of production are industry specific (difficult to move from one industry to another), interests of individuals flow from the sector of the economy for which they are employed - Demands for protection come from industries not factors
Primary Products
Raw materials and agricultural products (438)
International Bill of Rights
Refers collectively to the UDHR, ICCPR, and ICESCR; forming the core of modern international human rights regime
Rate of return
Refers to the price of using capital - High rate of return signifies low capital; countries want foreign companies to bring their money in (attract foreign capital) - A risky investment may be counterbalanced by a higher rate of return
Non-tariff barriers
Regulations targeted at foreign goods that are not tariffs; e.g. quotas and policies or regulations that favor domestic over imported products
Primary Rules
Rules regulating behavior (either prohibiting or requiring certain behaviors)
Secondary Rules
Rules that structure the making of primary rules; i.e. the rules on how rules are made
Transnational Advocacy Network (TANs)
Set of individuals and nongovernmental organizations acting in pursuit of a normative objective (pg. 474) - Efforts to call public attention to issues of human rights, social and economic justice - Involves international and domestic NGOs - Local social movements - Philanthropic organizations, the media, churches, trade unions, etc.
Export-Oriented Industrialization (EOI)
Set of policies to emphasize manufacturing for export and encourage manufacturers to produce for foreign consumers (443) - Achieved through: subsidies and incentives for export production
Depression
Severe downturn in the business cycle (that can lead to...) - Major declines in economic activity, production and investment - Contractions of credit - High unemployment (350)
Trade barriers
Specific impediments to the importation of foreign goods; includes tariffs, quotas, and non-tariff barriers - Often reflecting domestic concerns - Allows domestic producers to sell more - But can lead domestic producers to make more of what they are not particularly good at making; thus causing economic inefficiencies
Norms
Standards of behavior for individual actors with a given identity; norms define what actions are appropriate under what circumstances (p. 469) - norms are often singular rules, disconnected from any larger body of rules; may sometimes contradict secondary rules and the principle of sovereignty (460)
Comparative Advantage
The ability for a country to significantly benefit from a service or good that is far superior in comparison to their other services/goods (p. 294) - Exists in isolation (i.e. relative to only that one country's capabilities; not compared to others) - Implies that a nation gains most by specializing in producing and exporting what it makes most efficiently
Absolute advantage
The ability to produce more of a particular service or good at a more efficient rate than all other countrie; to be superior in the production of a specific commodoty (294) - Better than all (or most others) at one particular thing
Sovereign Debt
The amount of money that a country's government has borrowed (and owes domestically or internationally)
Precision
The degree to which obligations are more or less fully specified - More precise rules narrow the scope for interpretation - Vague terms mean bargaining is less likely to come to a close, and states will continue to negotiate (463)
Terms of Trade
The relationship between a country's export prices and its import prices (438)
Human rights
The rights possessed by all individuals by virtue of their being human, regardless of their status as citizens of membership in any group/organization
Norms life cycle
The three stage model of how norms diffuse within a population before taking on the ultimate "taken for granted" status (476) - Stage one: norm entrepreneurs work to convince other individuals to embrace their beliefs - Stage two: new frame is established, resulting in "norm cascade" (the norm gains significant support and is able to be used as a standard) - Third stage: norms are internalized
Protectionism
The use of specific measures (barriers) to shield domestic producers from imports - Protects certain domestic industries (p. 299) - Hurts: the consumers of imported goods, exporters, and citizens in general
Stolper-Samuelson Theorem
Theory to explain who will support vs. oppose protectionism; suggests owners of scarce factors will support protectionism while owners of abundant factors are hurt by protectionism and will therefore oppose it - Limiting imports of scarce factors of production reduces competition, allows owners of scarce factor to maintain costs of domestic usage (p. 305)
Colonial legacies, Initial institutions, and later development
Type of initial institution established by colonizers was dependent on rate/risk of settler mortality - High settler mortality, set up exploitive institutions for extraction and little investment in development - Low settler mortality, colonizers set up more permanent institutions, invested more into the development of the colony
Austerity measures
Unpopular domestic policies applied by debtor nations in crisis which involves: reducing consumption, cutting spending, raising taxes, and restricting wages - unpopular with domestic population (pg. 353)
Sovereign debt crisis
When a debtor country can no longer service its debt, this often leads to a bargaining interaction in order to come to an agreement - Debtors want to reduce costs owed, creditors want to maximize their return - The two actors begin bargaining over how to dispose of debt - Bargaining failure may lead to economic warfare
Non-rival in consumption
characteristic of a public good where one actor's consumption of the good does not diminish the quantity available for others to consume
Lustration
during regime change, policies limiting members of the previous regime from serving in political, bureaucratic, or civil positions (p. 523)
Prisoners of conscience
individuals imprisoned solely for the peaceful expression of their beliefs
Low obligation laws
laws that are aspirational; urge states to live up to some standard of behavior
International treaties
negotiated and ratified by states; typically originate in a convention; states voluntarily take on the set constraints (variance in precision, obligation and delegation) (461)
Debt Forgiveness
occurs when a creditor government formally agrees - via a contractual arrangement - with a debtor country to forgive all, or part, of the obligation
Nonderogable rights
rights that cannot be suspended for any reason; even in times of public emergency (pg. 500)
