POLS 1301 Chapter Notes - Chapter 10: Washington Consensus, International Political Economy, Free Trade

• School: Temple University
• Department: Political Science
• Course: POLS 1301
• Professor: Sarah S.Bush

Document Summary

Chapter 10: development causes of wealth and poverty of nations. Resource curse initial wealth followed by poverty. Are rich countries responsible for the problems of the developing world: colonialism rulers" interests prevail. 2 types of colonial rule: european settlers lived easily everyone prospered, european settlers could not survive in the environment exploitation of resources to the detriment of natives. International economy biased against ldcs: trade favored the interests of developed countries, ldcs sold primary products very competitive, declining prices, developed countries" trade was controlled by oligopolistic firms ensured prices did not fall. Protectionist policies of wealthy nations: ex: cotton farmers in the u. s. receive subsidies whereas foreign farmers do not. 1960s: asian countries encouraged their manufacturers to produce for foreign/american consumers, export-oriented industrialization (eoi, success by 1980s. Isi countries changed to eoi as debt crisis devastated isi economies: globalization and market-oriented policies, washington consensus, trade liberalization, privatization, openness to foreign investment, restrictive monetary and fiscal policies.