SIS Study Guide: Understanding Poverty, Development, and World Order - Prof. Joel Migdal, Study notes of International Business

Download SIS Study Guide: Understanding Poverty, Development, and World Order - Prof. Joel Migdal and more Study notes International Business in PDF only on Docsity! SIS Final Study Guide 1. A persistent theme of the past century is the division between rich, poor, and middle-income states. What specific factors help explain poverty and low growth? What do you think must happen in order to close the income gap between countries? In your answer, be sure to discuss, among other things, whether foreign aid or trade should play a role. Use concrete examples from readings and lectures.  Thesis: in order to close the gap between developed and third world countries it is essential that political establishments regulate the disposal of foreign aid in order to ensure the development of countries Brain drain Double edged sword: not only takes away from third world but also moves human capital to developed countries IMF creates vicious cycle of short teerm policies which don’t allow development or growth Mishandling of foreign aid get s placed toward corrupt governments Open trade  creates jobs  hope New Info: -CGLN (Chickens Get Laid Nightly) Conflict- 73% of the bottom billion has been in or still are in civil war Bad Governance- coup/ corruption, turnarounds Landlocked with bad neighbors- trade/ transportation Natural Resource – Dutch disease Collier: -Manufacturers and series offer much better prospects of equitable and rapid development. -Rich Countries tried to change their trade policies. They were protectionist (form subsidies). This is currently hurting developing countries. -Aid not only the answer. Aid can reduce capital flight and make private investment from foreign investors more attractive. Thesis: To explain poverty and IOW growth in the bottom billion in the bottom billion, collier presents the four traps as the defining factors of the gap between third world and industrialized countries. 2. What was the attraction of state-led development to new post-colonial leaders after WWII? Why were the results of such policies considered disappointing? What elements of statism do we see today in capitalist countries, and what are the arguments in favor of heavier state involvement in economies? In your answer, be sure to explain what statism is, and to reference authors who address this issue. 3. Compare and contrast Woodrow Wilson, Franklin Roosevelt, and George W. Bush’s approaches to constructing world order. What were their underlying assumptions about the world, views on US power and security, and beliefs about the importance of institutions? Which approach was most and least successful? Define the criteria you use to assess success and failure, and explain how you arrive at your assessment. SIS Final Study Guide  Thesis: all saw the U.S. as a superpower and believed democracy and free trade to be principles of the American system, each administration experienced a view that shaped their respective policies. Wilson and WWI ending  Self determination, collective security  [Neutral] Ahead of his time with 14 points, not accepted, influenced later generations  Wanted to prevent WWII via international collective security and oversight (14 Points) Roosevelt and The Depression  Keynesian economics, New Deal  [Positive] Implemented social democratic reform and led country out of Depression  Wanted to get economy back on track (Fireside Chat) Bush and September 11  Neo-conservative, military  [Negative] Iraq War distraction, fighting an idea (War on Terror), neglecting economy  Wanted to go after bin Laden 4. One of the themes of the 20th century is the law of unintended consequences, in which the policy of a state backfired and turned out to be detrimental to its intended beneficiaries. Think about the reasons why some policies had unintended effects. What lessons can world leaders draw from these cases to deal with problems facing the world today without making similar mistakes? Discuss these lessons with regard to two issues, which may include but are not limited to the following list: international terrorism, accommodating rising powers, global inequality, global warming, and competition for scarce resources.  Thesis: unintended consequences occur when policies are not evaluated under all circumstances. In order to better evaluate policies, leaders must think of possible repercussions. Two major examples of unintended consequences in history are the creation of the Berlin Wall and the Iraq War  Berlin Wall  Established to keep capitalism out of East Germany  Reagan and Gorbachev  “Tear down this wall”Tear down this wall”  Iraq War  Invade Iraq to “Tear down this wall”stop terror”  U.S. loss of power/soft power  Neglect of Afghanistan ISI: Import substitution industrialization  -Create industry through government policy -Shift from agriculture  industry -Protectionism (increased tariffs) -Unsustainable -Statism -Ex: Latin America MAD: Mutually Assured Destruction 5. Take on the role of an advisor to President Obama and write a memo outlining proposals to guide an international conference on measures to deal with the effects of the current global