Political and Economic Change

1. Political and Economic Change

2. Political Changes

3. Revolution, Coups, and War • Revolution • Fundamental change in the political and social institutions of a society • Characterized as having broad support and popular support • Ex: Bolshevik Revolution, Mao’s Revolution, Iran Revolution of 1979 • Coups • Coup d’etat: the act of overthrowing an existing government • Ex: Nigeria • War • Civil and Interstate war • “poltics by other means” -Clausewitz

4. Political Change: Trends and Types • Liberalization • Regime transition • Russia, 1991; Mexico 2000 • Political liberalization • The opening up of a nondemocratic system • Politically (constitution)

5. Political Change: Trends and Types Democratization nondemocracy procedural democracy  substantive democracy Incomplete democracy Democracy is established but does not last for an extended period of time Democratization Wave (Huntington) Specific period in which the number of democracies around the world increase

6. Stages of Democracy • Breakdown of nondemocracy • Democratization from above (CCP) • Democratization from below (PRI) • Establishment of Democracy • Decision stage: institutional framework is established • Consolidation of Democracy • Stable enough to avoid breakdown of the system

7. Characteristics of a Consolidated Democracy • Routinely held free and fair elections • Peaceful transition of power • Threat test: attempted coup or closely contested elections • Rule of law: compliance with rules and procedures • Legitimacy • Time

8. Democratic Breakdown Collapse or slow transformation into a nondemocratic system Three stages of a democratic breakdown (Juan Linz) • Crisis: threat to the existing democracy • Breakdown: collapse of the existing system • Reequilibration: transformation or overhaul of the democratic system vs. establishment of a nondemocratic system

9. Economic Changes

10. Economic Change: Trends and Types Nationalization A process by which the government takes over existing private companies and runs them as state-owned enterprises Privatization Government owned enterprises are sold to the public

11. Economic Changes: Trends and Types Economic Liberalization Removal of price restrictions and privatization of industry, encouragement of foreign direct investments Neoliberal Economic Reforms The use of various policies to free the economy Promoting competition Reducing regulations Lowering trade barriers Reduce government spending Balancing government budgets

12. The Political Economy • Economic Development • Changes in the structure of the economic system • Economic Growth • The increase in a state’s economic production over period of time • Measures • GDP/GNP • HDI • PPP

13. THE POLITICAL ECONOMY • Economic Development Strategies • Import Substitution Industrialization • State subsidy of specific domestic industries and other protectionist trade policies • Structural Adjustment • Integration into global markets and privatization

14. Types of Countries • Economically Developed Countries (EDCs) • Great Britain • Less-developed Countries • Nigeria • Newly Industrialized Countries • Mexico and Iran • Countries in Transition • Russia

15. Resolved The domination of the CCP in political affairs is beneficial to the Chinese state

16. Resolved “The two outstanding things about China’s 600 million people are that they are ‘poor and blank.’ On a blank sheet of paper free from any blotches, the freshest and most beautiful characters can be written, the freshest and most beautiful pictures can be painted.” -Mao

17. Globalization

18. Modernization Theory Western Europe and the United States provide the ideal model for economic and political development Stages of growth, capitalist economy represents the peak stage of development Social, political, and cultural changes take place with development Urbanization • Factories locate near labor force • Education and literacy rate rise with development Physical Capital • Machines and factories used to produce goods and services Human Capital • Productive characteristics of workers in a state

19. China’s Modernization Theory • Countries reaching China’s level of development have historically experienced political liberalization • Individual rights have not been granted (particularly in the countryside) even though the economy has risen • The CCP has departed from some Marxist ideology and limited some state-run economic activity • The pressure from the international community to abide by economic and legal agreements could lead to greater democratization

20. Dependency Theory LDCs are left underdeveloped because of the history of colonialism Colonialism exploited resources, leaving LDCs dependent upon the colonizers • Issues to impeding dependence: • Trade relations encouraging a small number of raw materials prevents them from diversifying their economies • Encouraging long-term debt, prevents long-term planning and building of infrastructure • Multinational corporations controlling new economic development in LDCs • Support of repressive regimes that maintain these conditions Repercussions Economically: the country stays underdeveloped Politically: the country stays corrupt ad authoritarian

21. Globalization The process of interconnectedness in the areas of economics, communications, technology, and politics. Foreign Direct Investment: corporations based in one country make investments to establish and operate businesses in other countries

22. Advantages to Globalization • Interdependence leads to cooperation and interaction • Eliminating trade barriers allows for the movement of human and physical capital, economic transactions are easier and more efficient • Rapid economic growth • Access to information, technology, and innovation • Spread of democracy and human rights

23. Disadvantages to Globalization • State sovereignty • Pressures to compete in the global market • Increase pressure from within the state to keep peace • Increase pressure from outside the state to conform to ‘global norms’ • The cost of rapid urbanization and development (crime, inequality, environment) Fragmentation State disintegration, as a result of dissolving bonds and interconnections that bind multiple political actors and units together