KEY TERMS IR 2 HALF ND
(TUTORIALS AND LIGHTBULB TERMS ONLY)
Bretton Woods
Established in 1944, creating three new bodies: IMF, World Bank, and GATT (which later
became the WTO). Part of the start of a modern globalized economy. Created in order to
manage the international financial system in the post-war period. Fixed exchange rates,
regulation and support. Based on assumption that the world economy consisted of a series
of interlinked national economies, and purpose was then to guarantee economic stability at
national level by regulating trading relations between and amongst nation-states.
SAP’s
Structural Adjustment Programmes. It was a set of adjustments economies in the third world
needed to make on their economies, in order for them to receive loans, and ultimately, as
the IMF and World Bank saw it, create economic growth. Reflected a strong faith in
economic liberalism and roll back govt regulation and intervention in the name of the free
market. Some adjustments include: reducing government spending, cutting welfare,
reducing or removing subsidies to domestic industries, reducing or removing tariffs and
quotas, privatization, etc, etc.
Democratic Peace Theory
Basically, democracies do not go to war with each other.
Fair Trade
Trade that doesn’t just benefit you economically, but is also morally right. Related to
alleviating poverty and respecting the best interests of sellers and producers in poor areas.
In contrast, completely free trade may rob these less economically privileged areas of
modernization, as you keep them in poverty by making them dependent on trade of primary
goods.
Regionalism
Successor to nation-state, and alternative to globalization. Has become more prominent
since the late 1980s. Theory of practice of coordinating social, economic or political activities
within a geographical region comprising a number of states. Exists on several levels, like the
institutional, which involves a growth of norms, rules and formal structures, or the effective
level, which implies a realignment of political identities and loyalties from the state level, to
the regional level. It just varies in degree, okay, but in essence, it’s all about regional
cooperation. There are three types:
Economic regionalism, - creation of greater economic opportunity through cooperation
Security regionalism, - cooperation designed to protect states from common enemies
Political regionalism. – cooperation with goal of strengthening and protecting values, and
thereby gain more powerful diplomatic voice. Examples include the Arab League and African
Union.
, Humanitarian Intervention
States infringing on another state’s principle of sovereignty by military intervention in order
to protect the citizens from abuse. A controversial term, because it is subjective, and can
carry strategic undertones. Some say an intervention is humanitarian if it is motivated
primarily by the desire to prevent harm to other people. Others say it is humanitarian if it
results in a net improvement in conditions, and a reduction of human suffering.
Keynesianism
Y’all should know this given we just had GPE but aight: Argued that the actions of individuals
in the private sector can create negative macroeconomic results. For the free market, but
under the opinion that the state should be present in sustaining capitalist relations and
correct the failings of the market (because they are inherently unstable).
Neoliberalism
Basically emphasizes cooperative behaviour within the international system, while
simultaneously accepting the anarchic character. In essence, liberalism with a hint of
realism. In economic terms, its philosophy is that the market is good, and the state is bad.
Laissez-faire <3 Economy works best when left alone by the government, which means tax
cuts, privatization, reduced welfare provision, low public spending, etc.
Washington Consensus
A set of policies put forward by the IMF, World Bank, and US treasury department for the
reconstruction of economies in the developing world. Very much drawn on the ideas of
neoliberalism. Controversial because it set certain policies as the blueprint for economic
development, without regard for differences between countries in terms of anything, really.
A few policies include: cutting public spending, tax reform, floating and competitive
exchange rates, openness to FDI, privatization, trade liberalization, etc.
Knowledge Economy
Its emergence marks shift from manufacturing to services, and introduction to new
information technologies. Knowledge as a key source of competitiveness and productivity,
especially through ICT (Information and Communication Technology).
World Systems Theory
A neo-Marxist analysis of the nature and workings of the global economy. The basic idea is
that the expansion of capitalism from the 16 century has created An EXPLOITATIVE
th
economic system, comprising these three parts:
Core: high wages, advanced tech, diversified production mix, sophisticated shit
Semi-peripheral: economically mixed areas, including some core and some peripheral
features
Peripheral: low wages, basic technology, simple production mix more focused on sugar,
grain, wood and so on.
(TUTORIALS AND LIGHTBULB TERMS ONLY)
Bretton Woods
Established in 1944, creating three new bodies: IMF, World Bank, and GATT (which later
became the WTO). Part of the start of a modern globalized economy. Created in order to
manage the international financial system in the post-war period. Fixed exchange rates,
regulation and support. Based on assumption that the world economy consisted of a series
of interlinked national economies, and purpose was then to guarantee economic stability at
national level by regulating trading relations between and amongst nation-states.
SAP’s
Structural Adjustment Programmes. It was a set of adjustments economies in the third world
needed to make on their economies, in order for them to receive loans, and ultimately, as
the IMF and World Bank saw it, create economic growth. Reflected a strong faith in
economic liberalism and roll back govt regulation and intervention in the name of the free
market. Some adjustments include: reducing government spending, cutting welfare,
reducing or removing subsidies to domestic industries, reducing or removing tariffs and
quotas, privatization, etc, etc.
Democratic Peace Theory
Basically, democracies do not go to war with each other.
Fair Trade
Trade that doesn’t just benefit you economically, but is also morally right. Related to
alleviating poverty and respecting the best interests of sellers and producers in poor areas.
In contrast, completely free trade may rob these less economically privileged areas of
modernization, as you keep them in poverty by making them dependent on trade of primary
goods.
Regionalism
Successor to nation-state, and alternative to globalization. Has become more prominent
since the late 1980s. Theory of practice of coordinating social, economic or political activities
within a geographical region comprising a number of states. Exists on several levels, like the
institutional, which involves a growth of norms, rules and formal structures, or the effective
level, which implies a realignment of political identities and loyalties from the state level, to
the regional level. It just varies in degree, okay, but in essence, it’s all about regional
cooperation. There are three types:
Economic regionalism, - creation of greater economic opportunity through cooperation
Security regionalism, - cooperation designed to protect states from common enemies
Political regionalism. – cooperation with goal of strengthening and protecting values, and
thereby gain more powerful diplomatic voice. Examples include the Arab League and African
Union.
, Humanitarian Intervention
States infringing on another state’s principle of sovereignty by military intervention in order
to protect the citizens from abuse. A controversial term, because it is subjective, and can
carry strategic undertones. Some say an intervention is humanitarian if it is motivated
primarily by the desire to prevent harm to other people. Others say it is humanitarian if it
results in a net improvement in conditions, and a reduction of human suffering.
Keynesianism
Y’all should know this given we just had GPE but aight: Argued that the actions of individuals
in the private sector can create negative macroeconomic results. For the free market, but
under the opinion that the state should be present in sustaining capitalist relations and
correct the failings of the market (because they are inherently unstable).
Neoliberalism
Basically emphasizes cooperative behaviour within the international system, while
simultaneously accepting the anarchic character. In essence, liberalism with a hint of
realism. In economic terms, its philosophy is that the market is good, and the state is bad.
Laissez-faire <3 Economy works best when left alone by the government, which means tax
cuts, privatization, reduced welfare provision, low public spending, etc.
Washington Consensus
A set of policies put forward by the IMF, World Bank, and US treasury department for the
reconstruction of economies in the developing world. Very much drawn on the ideas of
neoliberalism. Controversial because it set certain policies as the blueprint for economic
development, without regard for differences between countries in terms of anything, really.
A few policies include: cutting public spending, tax reform, floating and competitive
exchange rates, openness to FDI, privatization, trade liberalization, etc.
Knowledge Economy
Its emergence marks shift from manufacturing to services, and introduction to new
information technologies. Knowledge as a key source of competitiveness and productivity,
especially through ICT (Information and Communication Technology).
World Systems Theory
A neo-Marxist analysis of the nature and workings of the global economy. The basic idea is
that the expansion of capitalism from the 16 century has created An EXPLOITATIVE
th
economic system, comprising these three parts:
Core: high wages, advanced tech, diversified production mix, sophisticated shit
Semi-peripheral: economically mixed areas, including some core and some peripheral
features
Peripheral: low wages, basic technology, simple production mix more focused on sugar,
grain, wood and so on.
