Deck 11: Political Economy of Development

Question 1

Large amounts of oil reserves in Iran have led to

A)rapid economic development
B)no economic liberalization
C)economic crisis during the Great Recession due to falling oil prices
D)sustained political and economic stability

Answer 1

C

Question 2

The most unequal region in the world is

A)sub-Saharan Africa
B)the Middle East
C)Latin America
D)Central Asia

Answer 2

C

Question 3

The Asian economic miracle occurred in large part thanks to

A)export-oriented growth
B)currency valuation
C)structural adjustment programs
D)none of these

Answer 3

A

Question 4

Which of the following posits that the state should let the market operate more or less freely?

A)developmental state model
B)socialist model
C)coordinated market economies
D)neoliberal development model

Question 5

Structural adjustment programs

A)are based on neoliberal ideas
B)are based on Keynesian ideas
C)were freely chosen by many developing countries
D)were incorporated into import substitution industrialization

Question 6

One criticism of neoliberal development policies is that

A)they are too focused on helping the poor and not enough on macroeconomic growth
B)they benefit the wealthy and international business at the expense of the poor
C)neoliberals increase government spending too much
D)neoliberal development has become uncontroversial

Question 7

In Nigeria during the colonial period, as in other African colonies, a key source of personal wealth was

A)subsistence agriculture
B)small business
C)government employment
D)oil

Question 8

According to Przeworski, democratic and authoritarian regimes

A)present great differences in term of economic development
B)are about the same on economic development
C)control citizens economically through capitalism
D)none of these

Question 9

The program that converted many of China's collective farms into family-operated enterprises in the late 1970s and early 1980s was known as the

A)"dual track" market
B)"household responsibility system"
C)special economic zone
D)Great Leap Forward

Question 10

Foreign Direct Investments are

A)investment from abroad in productive activity in another country
B)investment in productive activity within the country
C)investment from abroad directly spent by economic actors in a country
D)direct investments in real estate property of foreign countries

Question 11

If something, such as the GDP for example, is measured at "purchasing power parity," it means that it

A)takes into account the differences in the cost of living in different countries
B)holds all currencies to their 2010 US dollar equivalent
C)accounts for the country's global standing
D)does nothing at all

Question 12

Which of the following regions best demonstrates the worst economic failure in the age of globalization?

A)Africa
B)Latin America
C)Southeast Asia
D)Antarctica

Question 13

Structural Adjustment Policies were successful in

A)sub-Saharan Africa
B)Chile
C)Russia
D)India

Question 14

Since the 1990s, neoliberal economic reforms in Brazil

A)have mostly remained in place
B)were reversed by a new populist president
C)have produced great inequality
D)have slowly gained support

Question 15

The 1997-1998 East Asian financial crisis made the world aware that

A)money could be invested around the world
B)speculative buying could create a self-fulfilling prophecy
C)the world is interconnected
D)technology allows the world to hasten the speed of global communication

Question 16

Which of the following encourage trade protectionism in order to foster economic growth?

A)import-substitution industrialization
B)developmental capitalism
C)natural monopoly
D)none of these

Question 17

Which of the following category of states would have been most likely to adopt Import-Substitution Industrialization?

A)postindustrial
B)capitalist
C)communist
D)modernizing authoritarianism

Question 18

Movements of capital in the form of money across international borders are known as

A)international monetary mobility
B)foreign direct investment
C)internal capital flows
D)globalization

Question 19

With economic growth in China, inequality has

A)sharply increased
B)slightly increased
C)steadily decreased
D)remained about the same

Question 20

China's initial reforms in 1978 were focused on

A)agriculture
B)industry
C)increasing exports
D)producing consumer goods

Question 21

Economist and philosopher Amartya Sen focused on which concept of development in the new millennium?

A)human rights
B)equal rights
C)human capabilities
D)equal capabilities

Question 22

The development policy based on encouraging economic growth via exports of goods and services, usually starting with light manufacturing such as textiles, is known as

A)export-oriented growth
B)import-substitute industrializations
C)structural-adjustment programs
D)globalization

Question 23

SELECT ALL THAT APPLY.In the agenda of "good governance" states need to effectively and efficiently provide which of the key requisites for capitalist development?

A)security
B)property rights
C)contract enforcement
D)infrastructure

Question 24

SELECT ALL THAT APPLY.Which of the following countries experienced very rapid economic growth throughout that 1950s and 1960s?

A)Turkey
B)Brazil
C)Mexico
D)Greece

Question 25

SELECT ALL THAT APPLY.Proponents of the view that democracy enhances growth and reduce poverty mostly focus on which of the following issues?

A)accountability
B)stability
C)rule of law
D)economy

Question 26

The economic assumption of modernization theory holds that

A)poor countries would not follow the same process to achieve wealth that the West had in an earlier era
B)poor countries would largely go through the same process to achieve wealth that the West had in an earlier era
C)rich developed countries would support poorer countries as they developed
D)rich developed countries would not support poorer countries as they developed

Question 27

Unlike South Korea and Taiwan, as China's economy grew, society became

A)richer
B)poorer
C)more unequal
D)more equal

Question 28

SELECT ALL THAT APPLY.Using to the "flying geese" theory, which Asian country was the "lead goose" for Asian development?

A)Japan
B)South Korea
C)Taiwan
D)China

Question 29

For the first several decades of its independence, India pursued ______ policies.

A)import-substituting
B)export-oriented
C)open market
D)laissez faire

Question 30

Political backlash to neoliberal economic reforms in Brazil

A)put a leftist labor leader in office
B)reversed Brazilian economic policy
C)led to political instability
D)all of these

Question 31

SELECT ALL THAT APPLY.In addressing the "Bottom Billion" the World Bank advocated

A)developing strong state institutions
B)developing human capital
C)developing a market
D)developing a civil society

Question 32

Areas along the Chinese coast allowed to engage in external trade starting in 1980 were known as

A)special economic zones
B)no tariff zones
C)tariff free zones
D)free trade areas

Question 33

SELECT ALL THAT APPLY.The Human Development Index reflect Sen's capabilities definition of development and includes

A)wealth
B)health
C)education
D)equality

Question 34

SELECT ALL THAT APPLY.Which of the following organizations are involved in international economic development?

A)International Monetary Fund
B)World Bank
C)United Nations
D)North American Trade Organization

Question 35

SELECT ALL THAT APPLY.The "Pink Tide" in Latin America refers to

A)an ecological problem
B)a surge of leftist governments
C)a surge of non-democratic governments
D)none of these

Question 36

SELECT ALL THAT APPLY.The Millennium Development Goals set a target to

A)improve education and health
B)improve the status of women
C)reduce poverty and hunger
D)achieve environmental sustainability

Question 37

The idea that a developing state should protect its new industries by placing restrictions on international trade is referred to as

A)import-substitution industrialization
B)foreign-indirect investment
C)structural-adjustment programs
D)the development state

Question 38

SELECT ALL THAT APPLY.Which of the following concepts are key aspects of globalization?

A)trade
B)foreign direct investment
C)current exchange market
D)international capital flows

Question 39

Which economist was instrumental in the creation of the IMF and the World Bank?

A)Friedrich Hayek
B)Karl Marx
C)John Maynard Keynes
D)Friedrich Engels

Question 40

Mexico shifted from ISI to ______ policies in the 1980s.

A)neoliberal
B)neo-Keynesian
C)SAP
D)Developmental State

Question 41

Under what type of regimes have economic reforms in Africa been implemented?

Question 42

The Millennium Development Goals (MDGs) proposed by the United Nations are aimed at ______.

Question 43

Explain the "dual track" market system enacted by China in 1984.What was its purpose? Did it reach its goal?

Question 44

In countries with weak democracies and weak political parties, demands are based on patronage, which is likely to harm the business climate and discourages investment.

Question 45

Provide two potential missing factors in the relationship between democracy and development.

Question 46

According to Kaplan (2013), Latin American countries that relied more heavily on bonds to finance development maintained strong fiscal austerity than countries that relied more heavily on loans.

Question 47

The relationship between democracy and development has been long established; the direct effect of the level of democracy on growth is slightly negative.

Question 48

According to ISI, by increasing the number of imported manufactured products, postcolonial governments can encourage domestic and international investment in new industries.

Question 49

Briefly describe the recent economic reform efforts in China.

Question 50

List the four main Millennium Development Goals.

Question 51

Import-substitution industrialization is based on neo-liberal principles of reduced government protection of industries, fiscal austerity, and privatization.

Question 52

Problems with ISI were emerging at the same times that economists and policy makers in the West were shifting from neoliberal to Keynesian ideas and becoming increasing supportive of the ability of governments to manage the market.

Question 53

Postmodern theories argue that they very idea of development is an effort by wealthy countries to control the Global South.

Question 54

Which are the main arguments explaining the lack of African growth?

Question 55

Structural adjustment programs, or SAPs, focus on ______.

Question 56

Most of Nigeria's economic policy is focused on oil revenue.

Question 57

Comparative advantage holds that well-being will be maximized if each country uses its resources to produce whatever it can produce relatively efficiently compared with other countries.

Question 58

The "African Renaissance" noted by some analysts in the 2000s may have been caused by ______.

Question 59

Developmental states usually follow neoliberal fiscal and monetary policy, keeping inflation low and their currencies stable and realistically valued vis-à-vis others.

Question 60

Inequality is higher in middle-income countries like Mexico even though absolute poverty is quite low there.

Question 61

In what ways is the Chinese case a good example of the developmental state model? How is it similar to the model and how does it differ?

Question 62

In what ways is globalization determining the policies of sovereign nation-states in the Global South? Keep in mind especially economic and social policies while framing your answer.

Question 63

What led to the emergence of development economics?

Question 64

Explain and illustrate with real-life examples three distinct aspects of economic globalization in the Global South.

Question 65

Is there any relationship between economic development and regime type? Please explain in detail the position that you endorse.

Question 66

Outline, and use examples to illustrate, the pros and cons of structural-adjustment programs.

Question 67

What is the difference between export-oriented growth (EOG) and import-substitution industrialization (ISI)?

Question 68

How do SAPs help or hinder development?

Question 69

Propose a method to bolster the economic development of the "Bottom Billion."

Question 70

Mexico is a classic case of the shift from ISI to neoliberal economic policies in developing countries.What have been the benefits and costs of neoliberal policy in Mexico? Weighing these costs and benefits, has the neoliberal model benefitted the country overall?