POLITICAL AND ECONOMIC CHANGE

Political Changes

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

Political Change: Trends and Types

Liberalization Regime transition

Russia, 1991; Mexico 2000 Political liberalization

The opening up of a nondemocratic system

Politically (constitution)

Political Change: Trends and Types

Democratizationnondemocracy procedural democracy substantive democracy

Incomplete democracyDemocracy 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

Stages of Democracy

1. Breakdown of nondemocracy Democratization from above (CCP) Democratization from below (PRI)

2. Establishment of Democracy Decision stage: institutional framework is

established

3. Consolidation of Democracy Stable enough to avoid breakdown of the

system

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

Democratic Breakdown

Collapse or slow transformation into a nondemocratic system

Three stages of a democratic breakdown (Juan Linz)

1. Crisis: threat to the existing democracy2. Breakdown: collapse of the existing system3. Reequilibration: transformation or overhaul

of the democratic system vs. establishment of a nondemocratic system

Economic Changes

Economic Change: Trends and Types

NationalizationA process by which the government takes

over existing private companies and runs them as state-owned enterprises

PrivatizationGovernment owned enterprises are sold to

the public

Economic Changes: Trends and Types

Economic LiberalizationRemoval of price restrictions and privatization

of industry, encouragement of foreign direct investments

Neoliberal Economic ReformsThe use of various policies to free the economy

Promoting competition Reducing regulations

Lowering trade barriers Reduce government spending

Balancing government budgets

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

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

Types of Countries

Economically Developed Countries (EDCs) Great Britain

Less-developed Countries Nigeria

Newly Industrialized Countries Mexico and Iran

Countries in Transition Russia

Resolved

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

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

Globalization

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 developmentPhysical Capital Machines and factories used to produce goods and servicesHuman Capital Productive characteristics of workers in a state

China’s Modernization Theory1. Countries reaching China’s level of development

have historically experienced political liberalization

2. Individual rights have not been granted (particularly in the countryside) even though the economy has risen

3. The CCP has departed from some Marxist ideology and limited some state-run economic activity

4. The pressure from the international community to abide by economic and legal agreements could lead to greater democratization

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

RepercussionsEconomically: the country stays underdeveloped

Politically: the country stays corrupt ad authoritarian

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

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

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