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political economy (measuring economic development (inequality - Gini Index…

- - - - concentrated in Africa :man::skin-tone-6::woman::skin-tone-6:
  - - - Mexico :flag-mx:
      - S. Korea :flag-kr:
      - Brazil :flag-br:
      - Taiwan :flag-tw:
      - SG :flag-sg:
      - Hong Kong :flag-hk:
  - - - ethnically diverse countries prone to conflict particularly when an ethnic group is marginalized
      - difficulty forging national identities
      - :female_sign: :male_sign: :scales: :red_cross: common, leading to large no.s of unmarried unemployed men prone to civil conflict involvement
    - - import substitution
        
        state funds/ creates industries & protects them through the use of trade restrictions on imports
        
        used in Latin America. failed, inefficient
      - export-oriented industrialisation
        
        state pursues an export-oriented strategy focusing on developing & protecting industries & products that could be exported
        
        goes up the production chain over time. used in Asia, more successful
      - dramatic economic change while colonized, but it was dependent development. 2 strategies to break it :arrow_down:
    - - struggle to fulfill basic needs & be free from internal special interests & outside foreign powers
      - politicization of the state, clientelism, corruption, political instability, & military coups common
    - - drought & desertification
      - tropical climates (makes a state conducive to disease)
      - soil erosion
      - being landlocked
- - - - involves private ownership & markets to guide production, good distribution & incomes
      - invisible hand of the marketplace (Adam Smith) will coordinate the economy
      - minimal state role
        
        Laissez-faire capitalism, state has almost no role
        
        today, liberal govts provide public goods & property rights at minimum, also have limited social welfare
        
        creative & potentially destabilizing force: generated wealth, broke down set roles for people, & created class divisions
    - - abolishes private property & favours collective ownership
      - extensive state role
        
        take over & nationalize enterprises
        
        guide good production and distribution
        
        fix prices & wages
        
        extensive social expenditures
        
        initially appeared successful but was inefficient leading to famine & economic decline
    - - focuses on state's needs & its position in the international system
      - imperial mercantile economies
        
        political & military power to open up markets and direct economies, trade only allowed to & from the colony
      - modern mercantilism
        
        state is active in industrial policy, using subsidies, taxation & import tariffs to encourage particular industries to grow for international competitiveness
        
        state may have partial ownership of industries
        
        lower social welfare, encourages saving
    - - state provides a wide array of public goods, extensive regulation on econmy & labour marke
      - some state ownership of industry
      - uses neocorporatism: policymaking involves negotiations b/w state, labour, & business interests. together, agreements on wages, vacations, unemployment, taxation etc.