Deck 11: The Political Economy of Global Poverty and Inequality

Question 1

Dependency theory focuses on domestic factors that have made Global South countries poor and dependent on foreign aid from the Global North.

Answer 1

False

Question 2

Least Developed Countries (LDCs) have overwhelmingly rural populations that rely on subsistence agriculture and bartering for economic survival.

Answer 2

True

Question 3

The Group of 77 called for the Global South to cut ties with the Global North and pursue development through import-led industrialization in their New International Economic Order (NIEO).

Answer 3

False

Question 4

The strategy of import-substitution industrialization was remarkably successful in the Global South in helping them break their ties with the Global North.

Question 5

Most foreign aid to the Global South is bilateral aid, which flows from one country to another.

Question 6

About 1.7 billion of the world's people suffer from severe poverty (acute deprivation).

Question 7

Dualism benefits the states of the Global South by allowing the government to focus more exclusively on improving the industrial sector while benefits trickle down to the rural sector.

Question 8

President Woodrow Wilson was a firm believer in the idea of self-determination for all people.

Question 9

Many Global South countries have pursued a policy of export-led industrialization that encourages domestic industries to produce products usually imported from abroad.

Question 10

Adam Smith's trade theories form the basis of mercantilist economic philosophy.

Question 11

Global East is the name given to the rapidly growing economies of East and South Asia.

Question 12

Most economists agree that free-market approaches to development, with minimum state interference, are the best way to promote development in the Global South.

Question 13

Modernization theory argues that economic development is achieved through technological innovation, efficient production, and investments from capital accumulation.

Question 14

The nonaligned movement was initiated by the United States in an attempt to restrain Soviet expansion into Eastern Europe.

Question 15

Official Development Assistance (ODA) usually channels its aid through multilateral aid organizations.

Question 16

Almost all of the now-independent sovereign states in the Global South were once colonized by more powerful Global North states.

Question 17

Tying foreign aid to the purchase of goods and services in the donor country increases the value of that aid by creating economies of scale.

Question 18

The failure of Global South countries to develop indigenous technology appropriate to domestic resources has made them dependent on the technology of Global North MNCs.

Question 19

The decolonization process that accelerated after World War II is notable for its violence.

Question 20

The less-developed countries are primarily located in the Global South.

Question 21

One explanation for why some countries are underdeveloped is offered by modernization theory, which claims that

A)state involvement in the economy is the key to development.
B)the major civilizations of the world will clash, bringing about global warfare.
C)less developed countries are exploited because global capitalism makes them dependent on the rich countries that create exploitative rules for trade and production.
D)wealth is created through efficient production, free enterprise, and free trade.
E)modern economies are based on natural resources and favorable geographic position such as access to waterways.

Question 22

The Asian Tiger countries have succeeded economically through

A)implementing import-substitution industrialization.
B)the use of strict communist-style control of the economy by the government.
C)promoting free trade among the industrialized countries.
D)aggressively promoting export-led growth.
E)strategic use of five-year plans.

Question 23

An economic system that focuses on supply and demand in the marketplace and emphasizes minimal government regulation of the economy is called

A)a command economy.
B)mercantilism.
C)colonialism.
D)a laissez-faire economy.
E)socialism.

Question 24

What is the G-77?

A)A coalition of the world's poorest countries
B)A coalition of the world's richest countries
C)A coalition of the worlds largest multinational corporations
D)Another name for the Asian Tiger economies
E)None of the above is true.

Question 25

Official development assistance (ODA) is

A)money that flows directly from one country to another.
B)money that flows from international banks to LDCs.
C)investment by MNCs in states in the Global South.
D)money that may only be used for humanitarian disaster relief.
E)money allocated to the military for security concerns.

Question 26

The goal of the New International Economic Order is to

A)help less-developed countries of the Global South to participate more fully in the making of international economic policy.
B)Facilitate trade and economic policy among Global North countries.
C)Increase the market share of Global North MNCs in the Global South.
D)Increase the size of Global North loan packages to the Global South.
E)Harmonize trade policies among Asian Tiger countries.

Question 27

The policy promoted by states in the Global South that sought greater participation in the global economy was known as

A)Liberal International Economic Order (LIEO).
B)New International Economic Order (NIEO).
C)Import-Substitution Industrialization (ISI).
D)Foreign Direct Investment (FDI).
E)Export-substitution Industrialization (ESI).

Question 28

An economic strategy that focuses on domestic industries for the purpose of discouraging imports is called

A)export-led industrialization.
B)dependent development.
C)dualism.
D)imperialism.
E)import-substitution industrialization.

Question 29

The UN Declaration on the Granting of Independence to Colonial Countries

A)enshrined colonialism in the UN charter.
B)declared colonialism a violation of human rights.
C)mandated reparations to be paid by former colonizing nations.
D)was initiated by the countries of the Global North.
E)All of the above are true.

Question 30

Imperialism, The Highest Stage of Capitalism is one of the most famous criticisms of European colonialism.Who wrote this book?

A)Karl Marx
B)V.I.Lenin
C)Adam Smith
D)Walt Rostow
E)J.A.Hobson

Question 31

Which of the following is considered a form of foreign aid?

A)Grants of money
B)Loans at low rates
C)Shared technical expertise
D)Military assistance
E)All of the above are true.

Question 32

Which of the following countries is not part of the Global South?

A)Indonesia
B)Burundi
C)Costa Rica
D)New Zealand
E)Nigeria

Question 33

Which of the following countries is not considered an Asian Tiger?

A)South Korea
B)Singapore
C)Taiwan
D)Hong Kong
E)Philippines

Question 34

The first wave of European imperialism was characterized by what economic policy?

A)Communism
B)Mercantilism
C)Laissez-faire economy
D)Equal-exchange
E)All of the above are true.

Question 35

A rural, impoverished, and neglected sector of society operating alongside an urban, developing, or modernizing sector is known as

A)dualism.
B)a semi-periphery.
C)cultural imperialism.
D)a barter system.
E)modernization.

Question 36

The first wave of European imperialism began in

A)the early fourteenth century.
B)the early fifteenth century.
C)the late fifteenth century.
D)the early sixteenth century.
E)the late eighteenth century.

Question 37

Common goals for foreign aid include which of the following?

A)Environmental protection
B)Reduced military spending
C)Increased power for women
D)Promotion of democratic governance and human rights
E)All of the above are common goals.

Question 38

Unlike earlier time periods, at the end of World War I the colonial territories of Germany and the Ottoman Empire were

A)parceled out among the victorious allies.
B)transferred under the League of Nations to countries that would rule them as "mandates" until eventual self-rule.
C)allowed to remain under the control of Germany and Turkey.
D)given independence.
E)None of the above is true.

Question 39

All of the following are true of decolonization except

A)as self-determination gained acceptance, the rationale for colonization was rejected.
B)World War II sapped the ability of former colonizing nations to maintain the costs necessary to support colonies.
C)decolonization set up some enduring rivalries still in existence today.
D)decolonization was achieved with no violence or bloodshed.
E)the nonaligned movement grew out of former colonies fearful of their new independence being compromised by Cold War loyalties.

Question 40

Adam Smith, in his treatise, The Wealth of Nations, argued that

A)mercantilism was the best way to ensure state security.
B)wealth came from the goods and services purchased, not merely the accumulation of precious metals.
C)military expansion abroad was an inevitable product of capitalism.
D)imperialism was a result of the inter-European competition for dominance.
E)governments must heavily regulate the economy to ensure it ran smoothly.

Question 41

To help heavily indebted poor countries (HIPCs), the International Monetary Fund and the World Bank have developed policies to

A)offer debt relief packages to those countries.
B)help develop economic self-reliance in those countries.
C)offer loans to those countries.
D)make those countries permanent members of the UN.
E)Both options c and d are true.

Question 42

The colonial heritage of the Global South is central to many explanations of the problems that Middle Eastern, African, Asian, and Latin American countries face.European imperial expansion into these regions occurred in two waves of empire building.Compare the economic strategies underlying the relationships between colonies and colonizers during each of these two periods.

Question 43

MNCs have been praised by some and condemned by others.What are the pros and cons of MNCs in the Global South? On the whole, has their presence there produced positive or negative effects?

Question 44

Debt is one the most debilitating economic problems facing Global South countries.Do Global North countries have a moral obligation to reduce or eliminate the debt owed them? What types of arrangements should Global North countries make with Global South debtors to help alleviate debt problems?

Question 45

Foreign direct investment (FDI) is

A)money that flows directly from one country to another.
B)money that flows from international banks to LDCs.
C)investment by MNCs in states in the Global South.
D)money that may only be used for humanitarian disaster relief.
E)money allocated to the military for security concerns.

Question 46

"Conditionality" in foreign aid refers to

A)the level of poverty that must be present for a country to be eligible to receive aid.
B)the terms of repayment of the loan.
C)demands that aid recipients must meet in order to receive the assistance.
D)Both options a and c are true.
E)All of the above are true.

Question 47

Compare the modernization and dependency theories on the causes of the economic gap between rich and poor countries.Which one do you find more convincing? Why?

Question 48

Virtually all states comprising the Global North provide large sums of aid to developing nations each year.Foreign aid comes in a variety of forms, and its purposes are as varied as its forms.Write an essay in which you discuss the different forms of foreign aid, their primary objectives, and their expected by-products.

Question 49

Which of the following are attitudes shared by the middle class in both the Global North and Global South?

A)Committed to educating future generations
B)Supportive of increased government accountability
C)Inclined toward entrepreneurship
D)Both options a and c are true.
E)All of the above are true.

Question 50

Which of the following is not a member of the BRIC countries?

A)Britain
B)India
C)Russia
D)Canada
E)Both options a and d are true.

Question 51

Discuss the factors that led to the development of OPEC.How did OPEC change global political economic relations? Could OPEC return to its previous position of power over oil importing countries? If so, what recourse would oil importers have to OPEC power.

Question 52

Global South nations have pushed for a New International Economic Order (NIEO).How would such an order change foreign assistance, investment, and trade between Global South and the Global North?

Question 53

Contrast the import-substitution strategy of industrialization with the export-led strategy.Which approach has been more successful for Global South countries in the post-World War Two era.Provide an example to support your claim.

Question 54

Explain the economic and political factors required to create a successful commodity producer cartel.What economic and political factors mitigate against the creation of successful commodity producer cartels?

Question 55

The period of decolonization following World War Two was remarkably peaceful.What accounts for this peaceful transition? What accounts for the rapid erosion of support for colonialism after World War II.