Unit 5: Economic Transformation and Political Response

Globalization

The process of interaction and integration among different nations driven by trade, investment, and information technology.

Economic Liberalization

The policy direction of reducing state intervention in the economy, often associated with Neoliberalism.

Neoliberalism

An ideology favoring free-market capitalism, deregulation, and reduced government spending.

Foreign Direct Investment (FDI)

Investment made by a company or individual in one country in business interests in another country.

Structural Adjustment Programs (SAPs)

Loans provided by the IMF/World Bank to countries in exchange for adopting neoliberal economic reforms.

Oligarchs

A small group of powerful individuals who control a country’s economy, often through corrupt practices.

Privatization

Selling state-owned enterprises to private investors to increase efficiency.

Nationalization

The government's takeover of private assets to consolidate political power.

Protectionism

Policies aimed at protecting domestic industries from foreign competition.

Democratic Deficit

The perceived lack of accountability of EU bureaucrats to citizens.

Iron Rice Bowl

Mao-era guarantee of lifetime employment and healthcare in China.

Hukou System

China's household registration system that restricts social benefits based on place of birth.

Bonyads

Religious charitable foundations in Iran controlling significant sectors of the economy.

Conditional Cash Transfers

Programs offering money to families if conditions, like school attendance, are met.

Race to the Bottom

The competition among countries to lower labor or environmental standards to attract business.

Sovereignty

The supreme power and authority of a state to govern itself.

Environmental Activism

Efforts to protect the environment and promote sustainable practices.

Resource Curse

The paradox where countries with abundant natural resources tend to have less economic growth.

Rentier State

A state that relies on revenue from natural resource rents rather than taxation.

Special Economic Zones (SEZs)

Designated areas in a country that allow for more liberal economic policies.

Import Substitution Industrialization (ISI)

Economic strategy aiming to reduce dependency on foreign goods through local production.

Austerity

Severe cuts to government spending to reduce national debt, often criticized for harming social services.

Economic Community of West African States (ECOWAS)

An organization promoting economic integration and peacekeeping in West Africa.

European Union (EU)

A political and economic union of member states that have ceded some level of sovereignty.

Multinational Corporations (MNCs)

Companies that operate in multiple countries, often influencing local economies and policies.

Market Liberalization

The process of allowing free-market forces to operate without excessive restrictions.

GDP growth

The increase in the value of all goods and services produced in a country over time.

Tariffs

Taxes imposed on imported goods to protect domestic industries.

Quotas

Limits on the amount of a product that can be imported to protect domestic producers.

The Great Firewall

China's internet censorship and control mechanism restricting access to foreign information.

Urbanization

The movement of people from rural areas to cities, often leading to infrastructure challenges.

Youth Bulge

A demographic trend where a significant proportion of the population is composed of young people.

Brain Drain

The emigration of educated or skilled individuals to other countries for better opportunities.

Proponents of Liberalization

Supporters who argue it increases global wealth and creates jobs.

Critics of Liberalization

Opponents who point out inequality and erosion of cultural distinctiveness as negative outcomes.

Privatization vs. Nationalization

A key debate over selling state assets versus government control of industry.

Economic Integration

The unification of economic policies and systems among countries to foster cooperation.

Demographic Change

Shifts in population characteristics that can impact political stability and economic prospects.

Erosion of Sovereignty

The weakening of a state's authority due to global influences or agreements.

IMF/World Bank

International organizations providing loans and economic assistance, often requiring reform.

Political Legitimacy

The acceptance of authority that a government has over its population.

Massive GDP Growth

A term referring to significant increases in a nation's economic output often linked to economic reforms.

Zapatista Uprising

An armed resistance movement in Mexico against neoliberal policies and for indigenous rights.

NHS (National Health Service)

The publicly funded healthcare system in the United Kingdom, central to the welfare state.

Green Development

An approach prioritizing sustainable environmental practices in development.

Social Safety Nets

Programs designed to provide financial support to individuals in need, often affected by austerity.

Electric Vehicles (EVs)

A vehicle that uses electric motors for propulsion, promoted by various governments for environmental sustainability.