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Week 10

by: Laura Castro Lindarte

Week 10 PSC 2337

Laura Castro Lindarte

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Extra points will be given for presentation in small groups for policy briefing and a speed date game. Next week on Tuesday will be a guest speaker and on Thursday will be the extra credit speed da...
Development Politics
Jessica C. Liao
Class Notes
Development Politics
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This 4 page Class Notes was uploaded by Laura Castro Lindarte on Friday March 25, 2016. The Class Notes belongs to PSC 2337 at George Washington University taught by Jessica C. Liao in Spring 2016. Since its upload, it has received 8 views.


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Date Created: 03/25/16
March 22, 2016  Political Development in Latin America I  ● Economists looking at geography say t​emperate and more settled zones will  develop economic and political institutions  ● Puzzles:   ○ Why contrasting political economic development present within New World?   ■ USA and Canada­ TOP   Argentina and Uruguay­ BEST IN SOUTH AMERICA  Colombia, Peru and Venezuela­ MIDDLE   Bolivia, Paraguay and Ecuador­ BOTTOM  ■ Brazil has different levels of development based on region   ● Ecological: tropical vs temperate  ○ Tropical less settled so extractive, temperate gets settle so good economy   ○ Problem that remains is fact that you see different between temperate zones:  Argentina vs USA and Costa Rica vs El Salvador and Honduras    ● Reversal of Development?​ed to revised explanati​ifferent level of inequality in  colonial leads to different outcomes   ● Disease explanation:   ○ Harsh environment leads to more disease so less settling while livable  environment leads to less disease so more settling   ○ Those NOT settled will use traditional social structure, those that do get settled  will make own bureaucratic structure   ○ Problem that Spanish decide to settle in harsh environmedea goes  i​ against history   ● Precious minerals: MOST PROMINENT EXPLANATION   ○ Settled in areas that had precious metals that could be sent to Europe   ○ Lay foundation for extractive  and exploitative labor institutions   ○ NO SUSTAINABLE INSTITUTIONS   ○ Mercantilist → restrictive political ito suppress competition   ● Pre­colonial Societies:   ○ Aztecof Central Mexico   ○ Inca​f Andean region  ■ Aztec and Inca different than pre­modern states because very small  political elite with little rights given to rest   ○ Hunter­gatherers societi​orth America and Southern Core (settled but in  tribal societies)   ○ Inverse correlation: areas with history of complexed states are less developed  than areas with tribal societies    ■ Harder to impose own institutions over traditional, tribal were easily  replaced   ● Complexed states set up around extracting while tribal are more self­reliance and  independent   ○ Problem that correlation between subnational areas and absence of development   ● The extent to which precolonial were able to resist will make it harder to impose  institutions   ○ Ignore impact of colonialism  ● Colonialism hypothesisdifferent between British and Spanish colonialism   ○ Spanish: settled in areas with dense populations to control natives   ○ British: settled in areas with easily resettle of natives­ no direct conflict   ■ No conflict means less expensive and start from zero   ● Rethinking settlement argument:  1. Causes of level of settlemelots in large dense areas with harsh environment   2. Consequences of level of settlemenleads to extractive institutions  ● The political economic sense matteidentity matters   ○ Spanish: mercantilisrestricted property ownership, political and market system,  a part of semi­periphery of world system   ■ Losing wealth to new free market rising   ○ British: open markegiving strong incentives to establish coherent bureaucracy,  rising hegemony   ■ Problem because different between British colonies in Caribbean       March 24, 2016  Political Development in Latin America II  ● Puzzle:   ○ Why didn’t Costa Rica become banana republic and why Argentina should have  looked like Canada or Australia but regressed instead?   ● Costa Rica:   ○ Solid economic growthand relatively wealthy   ○ Mature democracy   ○ No military coup   ○ Exceptionally peacefu​ompared to neighbors   ○ La Costa Pobre:   ■ Lack of precious metaland indigenous populations   ■ Fewer large estates   ■ Less slaves   ■ Absence of oligarchy​elatively homogenous society   a. In reality, oligarchy did exist in banana and coffee industry   ○ 1948 Civil Warbetween left and right conservative   ■ Calderon’s left­leaning coali​ad moderate leftist agenda   a. Got elected out of offi​ut Caldero tried to fraud   b. Military got involved to ensure election upheld   ■ Figuere's Social Democrat coalition and conservative Ulate   a. Implemented social democratic agenda, bipartisan constituent  assembly, electoral tribunal and extend suffrage to women   b. Abolish standing army­ leftist party disarms guerrilla   c. Had pretty centrist agenda  ■ After independence, series of dictators and political polarization stopped  growth  ● Argentina:   ○ 18­19th centurysettled late 17th century   ■ A land of new settlemensimilar with USA and Canada   ■ Most European population in Latin Ameri“massive whitening”)   a. Italy and Spain   ■ Small ethnic/racial divide  a. Some slaves but got taken out of influence making population very  homogenous   ■ “Reversal of Fortune” for a cent​tart to take off   a. Before this no big wealth of population   ■ Integrated into global econoEuropean markets)­ huge export of beef  (agro­products)   ○ Reason of Argentina’s succes​orn liberal   ■ Bourbon period of Spanish colonialism   a. No restrictive trade practices, monopolies and mercantilist rule   b. Less legacy of mercantilism and oligarchy  ○ Reversal of Fortune is reverafter the 1930s   ■ Trapped in cycleapid growth → hyperinflation → devaluation → default  → depression   a. Rapid growth by government giving job and printing lots of money  making inflation   b. Unable to pay debt so decreased value of peso, slowly begin to  pay back and start cycle again   ■ Economic nationalism and ISI polic​eugely dependent on European  markets but in Depression saw huge fall since Europe economy collapse   a. Led to idea of develop more products at home to be independent  and not import   b. Argentina wanted to build automobile industry but bad quality  because only 1 or 2 players protected by government so no  competition   c. Only Argentina buying cars but not enough people (demand) very  small   d. Import Substitute Industry   e. “Argentine riddle of reverse development”­ developed →  developing   ○ Two historical factors as hurdles to 1930s­1940s political reform:  ■  Concentration of land ownershn Buenos Aires   ■ Personalistic authoritarian leade​Juan Manuel de Rosas)   a. Consolidated power and killed many   b. Huge impact in future leader    ■ Failure in building a rule­ abiding institution   ○ Middle Class formRadical Circle Union Partn late 11th century  ■ Won and took office under Hipolito Yrigoyen   ■ Relying on oligarchy   ■ NO RADICAL REFORM   ■ Clientelistic distribution of public office   ■ BEEN IN POWER FOR A LONG TIME   ○ Infamous Decade: ​ncrease in military power   ■ Inspired by Germany   ■ Coalition between ​ld oligarchy and military   ■ Series of electoral fraud   ■ Military has lots of power, begins to look at politics   ■ RISE OF JUAN PERON   ○ Impact of Peron:   ■ LEFT agenda, a​ppeal to working class with clientelism   ■ Invention of populist tradition and bad economy decision   a. Restrict import, overvalued peso, taxed agricultural export, taking  over industries from foreign investo​upreme Court is controlled  by coup so no restriction   b. Overvalue peso to make domestic purchasing power   ● Reflection:   ○ Do material factors or human agencies matter more​how you need to look at  leaders   ○ Any other “exceptional case” resemble the Costa Rica or Argenti​ingapore                                 


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