Exam 2 Study Guide
Exam 2 Study Guide INR3003
Popular in Intro to International Affairs
Popular in International Studies
This 12 page Study Guide was uploaded by Beatriz Arteaga on Tuesday October 27, 2015. The Study Guide belongs to INR3003 at Florida State University taught by Whitney Bendeck in Summer 2015. Since its upload, it has received 129 views. For similar materials see Intro to International Affairs in International Studies at Florida State University.
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Date Created: 10/27/15
Democracy Product of the NationStates Europe US too I PostCold War Predictions 0 Mearsheimer Huntington Fukuvama Mearsheimer Realist view thought we were going to miss the bipolarity Predicted the next period would be unstable Huntington predicted the period we were moving into was going to be more bloodyturbulent Liberals welcomed the end of the Cold War very optimistic Fukuyama expected democracy to bring peace but also thought the peace would be boring II Waves of Democracy We have THREE waves of democracy First wave comes in the Western world where it originated end of 1700s through the 1800s First wave ends with the strengthening of empires in WWI Not until the end of WWII did we see the second wave of democracy Democracies were heavily replaced by military governments between 19601980 ish Third wave was due to the Cold War III Fukuyama39s quotEnd of Historyquot the quotend point of mankind39s ideological evolution and the universalization of Western liberal democracy as the final form of human governmentquot A Hegel Liberal democracy sees us all as individuals this includes PEOPLE and STATES George Hegel German philosopher He is the source of many of Fukuyama39s ideas Viewed the world in a nonmaterialistic way was focused on IDEAS His work was overlooked and misinterpreted Argues that there is 3 main components to mankind 1 Desire for survival going to seek out the things that we need for survival 2 Have the ability to reason rational thinking helps to ensure that we get the things for survival 3 Natural desire for recognition drives us into competition sports DO NOT seek to kill the other team Democracy provides recognition we are all equal and have voting powersrights B Preeminence of Ideas For Fukuvama the core is IDEAS quotideas determine everything C Teleological History Means linear development not random Storylike from nonsophisticated ideas to ideas like socialismMarxismanarchydemocracy Fukuyama believes this development ends with liberal democracy winning WWII put Fascism to an end Communism and Democracy were left Communism fell too leaving liberaldemocracy We will see wars but Fukuyama says they will be petty resources territory D LiberalDemocracy Need a government that recognizes the rights of its people Recognize that we NEED government BUT it has to be limited Government has to protect the rights and freedoms of its people Can buy and sell to have our own things Fukuyama explains that liberaldemocracy is capitalist free market economy Fukuyama sees that capitalism helps to REINFORCE democracy IV Another explanation for Democracy Modernization Theory See democracy as a byproduct of modernization A Industrialization Created so much social cultural and political change that democracy was the result of the Industrial Revolution B Societies Transformed 0 Emergence of Bourgeoisie Proletariat Urbanization Education and Civil Society Modernizations will form new classes Most important to the modernization theorists was the Bourgeoisie quotupper middle classquot Were receiving money but lacked the quottitlesquot weren39t noble born wanted the right to own land buy and sell Proletariat workers driving force of the Industrial Revolution Realized they had power went on strikes and created unions Both put pressure on the government to let them in and work for them Urbanization Industrialization caused cities to become populated caused different people to live together quotPower in numbersquot Increased focus on education in order to continue industrialization process we needed educated people Growth of the Civil Society middle class is the driving force C Democracy Prevails Modernization theorists use these changes to justify that industrializationmodernization lead to democracy D Critiques of Modernization Theory If industrialization leads to democracy why is China still communist Model that worked out for the Western world might not work out for the rest of the world Fukuyama doesn39t believe you need modernization to get to democracy V Democratic of Stability Theory quotWeakquot democracies don39t have wealth Wealth helps democracies to be more stable but wealth DOES NOT create democracy Major Powers have not strayed from democracy due to wealth and the institutions civil society Democratic Peace I Criticisms of Fukuyama NonWestern areas do not agree with democracy Ethnocentrism democracy doesn39t work for everyone else Cultures see democracy as very foreign Perhaps he is overstating democracy and its appeal II Democratic Peace 0 3 Main Points Democracy promotes peace If we have more democracies out there we will see less conflict DEMOCRACIES DO NOT FIGHT EACH OTHER Democracies do not tend to be militaristic powers Less likely to get involved in militarized disputes Clinton quotbest way to end security dilemma is by supporting the spread of democracy everywherequot quotMake better trading partners and partners in diplomacy Democratic Peace According to Our IR Perspectives A Identity Views Argue that democracies value peace more than nondemocracies Democracies share specific norms and values makes it easier to be friendly B Liberal Views All about cooperation and democratic institutions Proponents of democracy but for them it comes down to cooperation quotDemocracies don t tend to go to war because we are deeply connected with each otherquot Argue that going to war would negate the cooperation and benefits absolute gains Belong to the same international organizations governed by the same lawsrules that we all agree with Democracies are more likely to use diplomacy than conflict due to cooperation and communication C Realists Views Democracy is favorited by realists Do not think there is any guarantee that democracies will not go to war with each other they believe it is very likely Point out that democracies tend to ally together against nondemocracies IV How does Democracy Help Prevent War A Public Constraints Citizens constrain the leaders B Democratic Culture quotAt the core of a democratic culture is the value of peacequot Do not want conflict Democratic society is not likely to support a war that it considers to be unjust wars of expansion aggression etc C Audience Costs Means that political leaders always have to keep the will of their people audience in mind There are repercussions for not doing so held in Congress impeached etc n democratic cultures the people demand transparency Leads to positive diplomacy between democracies citizens hold the leaders accountable V Are Democracies More Peaceful Statistical data seems to support the claim Things to keep in mind A world populated by democracies is a new thing cannot say statistical data is a quotconstantquot During the period democracies have not fought each other Differences between weak and strong democracies weak one are less inclined to go to war Transition TO democracy can be very turbulent V Exceptions A Iran Mohd Mosaddegh 1953 Wanted to nationalize Iran39s oil industry US used CIA to put pressure on Iran used propaganda to turn army against Mosaddegh US used covert operations no war direct conflict grey area B Guatemala Jacobo Arbenz 1954 Became democracy after WWII Arbenz was elected president moved to nationalize the unused land of fruit company land distribution Main concern of the US was that he was moving towards communism CIA trained antiArbenz to invade US actually did not step on Guatemala soil 1954 Arbenz went to exile in Mexico Economic Globalization From post WWII era to today global economy has been steadily growing Can credit the expansion of global economy to trade and our interconnectedness I What is Globalization A Howard Wiarda and Manfred Steger Wiarda broad definition of economic globalization quotThe increasing scale extent variety speed and magnitude of international cross border social economic military political and cultural interrelationsquot Innovation tourism etc things that link us together Steger39s definition of economic globalization quotRefers to the intensification and stretching of economic interrelations across the globequot B Thomas Friedman The World is Flat 1 Globalization 10 1492 to 1800 Mercantilism and colonialism Europeans explore during this age to increase their own power and wealth Focus of mercantilism is to pursue wealth promote exports and limit imports Through process of colonization they find areas where they can extract resourceslabor Conquest and exploitation ZeroSum Shrinks the world from large to medium 2 Globalization 20 1800 to the WWs quotPax Britannicaquot Great Britain is leading the way in globalization 20 GB was the world s greatest power during this time Established global markets multinational trading multinational corporations World shrinks from medium to small 3 Globalization 30 Present quotPax Americanaquot America leads the way Also referred to as the age of the internet Friedman says that because of transportation world shrunk from small to tiny Globalization chatroom anyone can join II Trade A Comparative Advantage David Riccardo Core idea behind it is EFFICIENCY A country can produce and export more if it focuses on what is able to produce most cheaply Find what can be produced most cheaply at home and export that Should increase the global output of goods Goods should be available and available at the cheapest prices Focuses on free market without free trade goods won39t flow freely BDependency Argue that poorer states end up in dependency of the wealthier states Weaker states end up being taken advantage of Poorer states tend to be resourcebased no industrialization Because of the dependency weaker states will never industrialize because they are stuck in those relationships with stronger states Wiarda points out positives weaker states can depend on stronger states39 aid trade markets security and protection C Complex Interdependence Greater powers need the poor states for their resources Dependency works both ways Mexico needs the US for trade investments and border for excess laborers On the flip side the US needs Mexico oil natural gas cheap labor Economies are intertwined D Risks of Trade Trade can increase wealth but also give a state trade vulnerability some countries NEED trade to survive Countries can become highly dependent on imports to sustain their economy and growth Economic growth DEPENDS on exports goods that the country is selling Become vulnerable to any shifts in demand or prices If a country finds oil comparative advantage shift in economic trade Trade deficit buy more than we sell f country falls into trade deficit more money is going out rather than coming in I Currency A Gold Standards and Money Markets Common currency was needed for trade Could trade in gold itself Gold standard B Fluctuations Demand and Supply Supply high price low and vice versa Demand high price high demand low price low C Economic Impact of Currency Fluctuations US dollar is the international currency for trade Currency can float goes up and down with the economy A higher value of currency causes the value of exports to go up Keep a currency low to have cheap exports and therefore more buyers China is an export economy that s why their currency is EXTREMELY low D Reserve Currencies How countries deal with floating currencies Foreign currency held in reserve to help any offset in the global economy Gold Standards and Bretton Woods Classical Gold Standard Formed by the British Used as an international standard 1870 firmly established At the time the world was in Globalization 20 Pax Britannica London was the financial capital of the world Bank of England Facilitated international trade II Disruption WWI and the Great Depression Most countries go off the Gold Standard since they were at war Great Depression ultimately put an end to the Classical Gold Standard 1931 Bank of England stopped converting money into gold Began in the US due to the interconnectedness all economies began to fail A Rigidity of the Gold Standard Classical Standard did not allow for fluctuation economies were ALWAYS fluctuating The releasing of gold began to devalue the currency of countries People began to seek their money to be converted into gold B Gold Reserve Act 1934 FDR was requiring people to turn their gold in to the Federal Reserve Exchange rate went from 20 per oz of gold to 35 As a result the US had a lot of gold C BeggarThyNeighbor Protectionism As the economy begins to down slide they want to sell more of their goods export Goal at this time was sell a lot and buy little or nothing Trading was coming to halt since no one was buying Countries began to devalue their currency to make exports cheaper but then the people living there suffer since their money is worthless Labor became more expensive Ultimately this policy made the Great Depression worse III The US Steps Up Italy and Germany aggressor powers were rising up Mussolini and Hitler US stepped up to be the world leader US wanted to promote capitalism over communism US was looking at a way to maintain peace US was the only country that could be the world leader at the time strongest economy IV A New Economic Order Due to the Gold Reserve Act the US had the most gold in the world 0 DollarGold Standard New currency for trade became the US dollar US pegged the US dollar to gold 35 was worth 1 oz of gold Everybody else pegged TO the dollar US dollar became the new international currency for everything became the reserve money as well 1944 Creators saw it as more stable since it allowed for more fluctuation V UN Monetary and Financial Conference Bretton Woods 1944 44 allied nations met Took place in New Hampshire Everyone knew the Allies were going to win just a matter of when A Harry Dexter White and John Maynard Keynes White represented the US treasury Keynes represented British treasury White advocated a free market system Keynes wanted a socialist economy with strong state control Compromise was made goal was to reinvigorate international multinational trade B 4 AgreementsInstitutions 1 DollarGold Standard Keynes advocated a neutral currency not from any state rejected US dollar became the international currency and remains it 2 International Monetary Fund IMF An emergency reserve bank for the world Aids countries facing economic crisis to prevent another quotGreat Depressionquot Along with the loans comes conditionality changes will be made to the country39s economy if they accept the loans All countries in the IMF contribute to it based on their GDP percentage of it 3 International Bank for Reconstruction and Development IBRD IBRD is the World Bank Main focus was on providing reconstruction loans to Europe to help rebuild World Bank39s focus is development 4 General Agreement on Tariffs and Trade GATT Wanted to multilateralize trade Would only work if countries traded freely Whatever you agree to with most favored nation applies to ALL nations in the GATT Tariffs had to be brought down for goods to flow World Trade Organization GATT became the WTO in 1944 Now there is regional trading blocs EU AFDA States WANT to be part of the WTO comes with benefits protections etc Can be problematic for nonstate entities Bretton Woods and the Collapse I Early Blip in the System A Dollar Shortage and Convertibility Crisis US was selling a lot of goods to Europe money flowing in and not out The dollar gold system wasn39t working due to US trade surplus Dollar was becoming scarce By 1947 there was a convertibility crisis countries were no longer able to convert to dollars 1 Options Devaluation lower the value of the currency long term solution counteractive Deflation reduce price levels in the country could work but counties would have to push price to depression levels Implement austerity limit how much money the people were spending but they HAD to spend to buy the goods needed Go back to BeggarThyNeighbor Protectionism maximize exports minimize imports counterproductive 2 A Global Problem The world39s economy was suffering Every option would result in some kind of deficit or no change in economy B The Marshall Plan General George C Marshall Dual objectives antiCommunist plan economic plan Italy and France were looking like they could be swaying towards a communist government Both countries coming out of WW2 had very high unemployment housing shortages high inflation etc President Truman called upon Marshall and leaders of Europe to assess their economies and see how much money they needed April 1948 US Congress passed the Marshall Plan loans to Europe 4 billion by 1951 we had paid out 13 billion Loans came with conditions Italy and France had to get rid of the communist party in order to receive the money Money was in the form of US dollars got the Dollar Gold Standard to begin to flow International trade began to increase so did the global economy US became the leader of the global economy due to the usage of the dollar II The Long Boom quotGolden Years Europe economies began to compete with the US39s Maintained low inflation numbers Nutrition levels in Europe shot up higher life expectancy lower mortality rates Other parts of the world were experiencing higher growth than the US Asia III The Death of the DollarGold Standard 1971 A US Deficit Spending and Dollar Problems Over time the system began to stopped working as well for the US As time went on US gold was flowing out 1970s US only had 20 of the world s gold dollar value went down US had an artificially high dollar currency was of higher value exports were expensive During 1960s Vietnam War spending was high inflation was high Attempts to negotiate with Germany and Japan failed US toyed with the idea of devaluing the dollar 38 per oz of gold instead of S35 No option was working B France and Charles de Gaulle France rebelled against US hegemity Wanted a currency that had nothing to do with the US C Nixon Shock 1971 August 15 1971 Nixon pulled the US off of the Dollar Gold Standard When he did currencies began to float Brought an end to the Bretton Woods system Nixon devalued the dollar to boost exports became more competitive in the international market 10 tariff on incoming goods to try to block some imports both of these were to boost the economy D Oil Crisis OPEC Yom Kippur War 1973 Going off the dollar gold standard impacted oil industries Devaluing the dollar hurt the profits specifically OPEC All of this led to the Oil Crises coincided with the Yom Kippur War Syria and Egypt against Israel US backed Israel caused OPEC to raise prices of oil and then an oil embargo US realized in 1973 that they were dependent on foreign oil Inflation skyrocketed E End of the Long Boom 1 Stagflation Combo of a stagnant economy with inflation High unemployment very slow growth inflation Entire world was seeing inflation and high unemployment rates 2 End of Keynesian Economics End of the system that was behind Bretton Woods 3 Thatcher and Raegan Great Britain and US were major components on a new economic system devaluation Became known as quotReaganomicsquot in the US IV The Dollar Now Fiat Money Today we have fiat currency paper money with no intrinsic value of its own US dollar remains the international currency remains the dominant reserve currency NOT the only one Strategies for Development I Import Substitution Industrialization ISI A Latin America Associate ISI with Latin America Ideas developed there and was implemented notoriously Were not in GA39I39I39 1 How It Worked In Practice State led Protectionist approach Provided protection for economies allowed economies to grow Goal was to develop their own domestic industry infant industries and protect them WILL SUBSTITUTE IMPORTS WITH FRUITS FROM THEIR OWN DOMESTIC INDUSTRY High trade barriers were placed specifically on imports prohibition Increased the value of the currency gives them higher spending value on imports they NEEDED Worked well with authoritarian governments state led State insures that food prices remain very low consumers could afford them Countries with very best ISI were the larger ones Mexico Brazil etc more selfsufficientlarger population 2 Problems It Encountered Highly vulnerable to international market shifts due to dependency Great Depression hit Latin America HARD due to loans countries called in their loans Profits were exiting the country that39s why foreign businesses were still affiliated in LA Agricultural sector suffers due to industrialization rising food prices low farmers aren39t making money Short term gains but over the long term it became counterproductive 3 The Lost Decade 19731987 1973 OPEC oil crisis Smaller countries majority were at a disadvantage smaller populationless resources Were not developing strong export economies Weren39t offsetting imports two ways to offset is increase export gains andor invest Each country began to default on their debt First was Mexico 1982 Inflation some say was over 100 Thinqs that were promoted to help economies derequlation free market economy privatization B Infant vs Mature Industries ExportLed Growth Built up diverse industry State led A Comparative Advantage Each country will specialize in something they can produce very easily and cheap Used S initially but then got rid of it to export goods on international market Start with little cheap trinkets textiles Turn profit into more sophisticated exports such as steel production and electronics B Asia 1 How It Worked Kept their currency low to keep exporting goods cheaper and competitive Buy what they have to buy but main focus is to make profit off of exports unlike S Government decided what to export 2 Its Problems Export economies are at the mercy of demand Many producing similar goods Overreliance on the US most wealthy consumers Wanted to be part of WTO neoliberal but weren39t fond of protectionist economies a Crony Capitalism State led state picks quotfriendsquot political support Loansmoney flowing very freely not competitive A lot of the time the loans go bad and encourage irresponsible behavior b Asian Financial Crisis 19971998 Thailand Baht Noncompetitive practices Bad real estate investments which later went bad quotAsian Contagionquot Thailand pegged it39s currency to the US dollar 1996 pulled the Baht off the peg Baht began to lose value at a VERY rapid rate Plummeted their stock market which caused the same for neighboring countries Countries hit the hardest were Thailand S Korea Malaysia Indonesia Philippines and Singapore US was also hit I Was one strategy better than the other Export Led Growth worked better than the ISI Asian countries were once colonized by very strong industrial power houses Great Britain France and Japan Latin American countries were colonized by Spain and Portugal not as strong Globalization and Poverty Pros and Cons of Economic Globalization Industrialized North 90 of industry is produced there 45 of the world s income only M of the population lives there Today more than 1 billion people live in abject poverty Vast majority live in Africa and South Asia Abject not able to feed themselves lack of clothing and lack of shelter Not just poor but people who face death because they do not have the resources in order to guarantee health Every 6 seconds a child dies of malnutrition According to recent studies there is progress being made but the amount of poverty still present in the world is unacceptably high II NorthSouth Gap Between 1990 and 2013 the GDP has risen from 3000 to 6450 Sitting at 63 percent GDP growth However the population of the south is also growing rapidly at 13 percent Compare this to global North GDP 1990 20000 to GDP 2013 38470 Gap still exists however the growth for the south is impressive more rapid growth than in the north In the global north GDP growth is only 15 percent compared to 63 percent in the South Population growth in the north only 1 percent compared to 13 percent in the south III Are the poor catching up There certainly is economic progress in the South However 3 countries in the global south skewing data China India and Brazil Looking at a chart developing Asia leading the way in growing economies due to China and India as rising economies Typically we look at GDP but people suggest that we should look at more than just numbers Only within a free society is there opportunity for those people at the bottom to benefit from economic growth key component of development What is GDP GDP private consumption gross investment government spending exports imports GDP gives us an annual figure that gives us a sense as to the strength of a country s economy Average world GDP per capita 12000 Things not included in calculation of GDP accumulated wealth more accumulated wealth in the North Doesn t tell us what money is being spent on Gives us no sense of the distribution of wealth in a country Doesn t count illegal activity ie drug trade IV Distributional Issues One has to do with poverty those not benefitting from a country s wealth Dollar a day standard Now 125 adjusted for inflation used to measure poverty as distinguished from extreme of abject poverty under a dollar a day is in the worst shape These people are living in the worst situations possible Has been improvement many people have only moved up into the gap between the dollar and 2 dollar a day standards still not in good shapeimpoverished Inequality Large issue contributing to poverty GINI Coefficient looks at income equality If a country receives 0 perfect score would mean that income is equal Countries like Denmark and Japan are the best around 2 Countries in the worst shape are poor countries like Namibia and Botswana closer to 1 Human Development Index First in equation is GDP how much people should have Next is adult literacy rates life expectancy and the number of children enrolled in school gross enrollment ratio higher HDI rating means standards of living are higher As expected HDI is higher in the global north when compared to the global south Those in the worst shape are overwhelmingly present in Africa and South Asia Countries with a high GDP and a low HDI means the country has money but isn t spending it on the people Little distribution of wealth Foreign Aid quotofficial aid government to government Comes in the form of either humanitarian or development aid Humanitarian short term comes in times of crisis ie earthquake or tsunami Development Long term aid helping countries build up their infrastructures Foreign Aid can be controversial benefits and drawbacks Benefits in times of crisis aid can be very helpful and very welcome It can be very important toward seeing progress made in development projects Might see situations in these countries be better off thanks to aid Good in terms of demonstrating good will flowing from developed to developing countries In modern times providing aid helps to strengthen global security radical groups stem from impoverished regions Drawbacks A lot of these countries that need aid the most don t have democratic governments mainly authoritarian How do we know the money we provide is going to help the people Millennium Challenge Corporation Point is to try and address this problem assesses the level of corruption in a given country in order determine whether or not aid should be given V Different Approach OXFAM does not establish a donorrecipient relationship establishes partnerships Goes into countries and helps the people get started teaches them skills with which they can learn to selfsustain
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