Definitions
Absolute Poverty
Bonus 50 pts: what hierarchy is associated with determining absolute poverty?
What is a clear delineation of income level or access to resources below which would not sustain health or wellbeing
Bonus (only if main answer is correct): Maslow's hierarchy of needs
$1.25
What is the global poverty line?
Loans made by the World Bank or the International Monetary Fund with express provisions requiring countries meet specific goals
What are SAPs or Structural Adjustment Programs
Type of economic output that is difficult to objectively quantify and, therefore, has historically been left out of national economic measures
What is informalization or informal types of labor
Critique of capitalism arguing that capitalism concentrates wealth in a minority at the express (and necessary) expense of the majority
What is Marxist or Communist Theory
Modernization theory
What is the historically observed singular linear path to development largely based on the progression of western states from pre-industrial to industrial mass consumption societies?
A focus on ecological balance, sustainability, and conservation of the "global commons" instead of purely focusing on economic and industrial progress
What is an alternative view of (measuring) development. (Green politics or environmental theory are ok here)
Aid and other support for developing nations should be predicated on the eventual benefit to the state providing the aid
What is the position a realist would take on foreign aid
Unlike governments, there is no requirement, or incentive, for this "force" to take into consideration the wellbeing of workers or citizens
What are free market forces
Reproductive labor is given value and included in economic calculations
What is feminist economic theory
What is conditionality?
Theory that relies heavily on the assumption that humans are rational economic actors and make the most efficient choices with regard to material consumption
What is economic liberalism (neo liberalism is also acceptable)
The IMF and World Bank theorized (and based SAP conditions upon) this main goal would foster innovation and entrepreneurship, both of which are necessary for economic growth and poverty reduction.
What is market reform
Tax revenue for many countries has been impacted by a shift towards this type of labor, which is on the rise due to neoliberal economic policies supporting business and weakening labor
Informal labor
Causes deepening inequities based on gender, race, and economic hierarchies when relied upon for economic policy decisions
what is liberalism or neoliberalism
Examples include: reproductive labor, subsistence agriculture, and the shadow economy (illegal stuff)
what is informalization
Stage of modernization theory characterized by growing economic diversification, reduced poverty, and increasing standards of living
What is the "Drive to Maturity" stage
Poverty increased in some developing countries due to governments cutting social and educational programs in an effort to meet IMF and World Bank requirements.
What were unintended outcomes of SAPs
Freedom of property ownership and unconstrained market activity conflicts with individual equality needed to ensure equal access, opportunity, and participation (all three necessary for a truly free market to function efficiently)
What is a foundational tension in economic liberalist theory?
Arguments for embracing this alternative approach to economic policy include:
-general benevolence where good acts improve happiness and decrease overall suffering
-human rights and the right to develop as any state sees fit without outside interference
-addressing past injustices and the historical flow of wealth from the global south to the global north
What is cosmopolitan theory (overall goal of advancing global justice)
What is Feminist Theory
Developing countries are "colonized" by the developed world through unfair SAPs and conditions attached to the lending of money
What is economic or dollar imperialism?
Regulations and requirements in SAPs were unfair and harmful to developing countries because the SAPs were imposing restrictions and consequences that already developed countries had not faced on their paths towards development
What is a critique, or failure, of the SAP program.
-Markets are efficient
-Unrestricted movement of trade is optimal
-Countries benefit when they can emphasize their inherent advantages
-Growth will trickle down to all levels of society
-Open borders help facilitate trade
-Governments should facilitate the above rules, but not interfere with them
What are liberal (neo classical) assumptions about the economy?
Excess unemployed and informally employed workers create a downward pressure on wages and discourage employed workers from improving their work conditions through organized leverage against employers.
Why maintaining a labor "surplus" is advantageous to businesses