POL 252 SP15 Development Political Economy

1. POL 252-01
Spring 2015

4. INSTRUCTIONS
In pairs, write down all of the ideas, terms, etc. that come to mind
when you hear the phrase “developed society.”
Think about economic, social, political, and cultural indicators.

5. We can measure
development in economic
and social terms.

6. We can also measure development
in political and cultural terms.

8.  Process of increasing country’s wealth
 Diversification of goods and services
 Increasing efficiency of production
 Progress measured by:
 Changes in economic structure
 Increasing per capita income

10.  Process of expanding choices of people in a society
to lead lives they value.

15. Examples of Highly Developed Countries
France Japan
United States United Kingdom

16. Examples of Developed Countries
Mexico Russia
Brazil Chile

17. Examples of Moderately Developed Countries
Haiti
IndiaChina
Iran

18. Examples of Least Developed Countries
Rwanda Liberia
Afghanistan Ethiopia

19.  Citizen Capability
 Economic Resilience
 Government
Viability Change has come throughTaliban

22.  Colonialism
 European Powers and Colonization

26. Eurasia

27.  Natural Resources
 Fertile Soil
 Location
 Disease

29. MAX WEBER PROTESTANTWORK ETHIC
 Discipline
 HardWork
 Thriftiness
 Honesty
 Time Management

30. Francis Fukuyama Robert Putnam

31.  Americans disengaged
from political involvement
 Loss of membership in
civic organizations
 Impact of “individualizing”

33.  Shape individuals’ incentives for investment
 Human creations designed to solve problems
 Determine how economic benefits from
growth are divided amongst society

34.  1) Market-Stabilizing Institutions
 2) Market-Legimizing Institutions

35.  Prevent markets from inflation, deficits, etc.
 Issue of hyperinflation
German
woman
using money
as fuel for her
stove during
WorldWar I

36.  Soften harsh economic consequences
 Example:
 Unemployment Insurance
 Global Financial Institutions

37.  Number
 Structure
 Political Capability

39.  Promote or hinder development
 Leaders have impact through:
 Choosing policies
 Constructing coalitions of supporters for policies
 Establishing / maintaining successful economic
or political institutions

40. David Cameron Steven Harper Angela Merkel

41. Enrique Pena Nieto Vladimir Putin Narendra Modi

42. Goodluck Jonathan Paul Kagame Ernest Bai Koroma

45. Unemployment
Lowered
Wages
Business
Investment
and Employment
Creation of
EconomicGrowth

47.  Sound fiscal policy
 Emphasis on deficit
spending
 Borrowing money
 Result?
 People have $
 Purchase goods/services
 Economy reboundJohn Maynard Keynes

48.  Politically Desirable
 New Programs = Re-Election withoutTaxes!
 Scrutinized by 1970s
 Western nations facing stagflation
 Mo Money, Mo Problems?

50. Milton Friedman
 Fiscal policy does NOT
stimulate growth
 Emphasis on monetary policy
 Justification for move to
free-market economy
 Known as neoliberalism
 “Conventional wisdom” until
“Great Recession” of 2008-
2009

52.  Appreciation vs. Depreciation
 Fixed vs. Floating Exchange Rate
 Fixed: Stable currency; International interests
 Floating: Fluctuating currency; Domestic interests