review terms for exam 3-1 - 15:34 Infrastructure Basic...

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15:34 Infrastructure Basic structures necessary for social activity such as transportation and  telecommunications networks and power and water supply Physical infrastructure: Railroads, airports, ports Economic infrastructure: financial and monetary system to carry out investments and  payments Social infrastructure: public health, education, urban planning to encourage growth and  development of their citizens  Property Rights Property owner can be confident that his or her material goods will not be seized Guaranteeing the security of individuals’ property Create incentives to make investments Encompassing Coalition Alliances that include enough of society to be concerned for broad social welfare Instead of spe Set aside differences to focus on developmental requirements Need to mobilize society National unification Common external threat Need broad-based coalitions to support pro-development policies Ethnic conflict
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Regional conflict Representative institutions more likely to favor overall welfare More democratic institutions provide more public goods Terms of Trade The relationship between a country’s export prices and its import prices Trade works against LDC because they produce primary products Primary Products Most LDC sell primary products raw material and agricultural products, typically unprocessed or slightly processed the  primary sector are distinguished from secondary and tertiary sectors Oligopolistic Characterizing an industry whose markets are dominated by a few firms Resource Curse Resource-rich regions tend to be underdeveloped Initial wealth gives rise to subsequent poverty Lucratively exploit the endowment Does not develop anything but exploiting and profiting from rich resource No developing institutions  Education, public health and economic infrastructure The South: Slave plantation economy
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Cotton Tobacco   Colonialism Where Europeans could settle, they established the rule of law Relatively representative institutions Encouraged development Institutions persisted (North America) Where Europeans could not settle, they exploited colonies for quick gains Imperialist looked out for their own interest of exploiting resources When the object was exploitation, institutions were not conducive to economic growth Extractive states to transfer resources Unrepresentative institution High correlation between settler death rates and rate of underdevelopment today Import-Substitution Industrialization (ISI) LDC Substitute local production for imports Reduce imports and encourage domestic manufacturing often through trade barriers,  subsides to manufacturing and state ownership of basic industries
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This note was uploaded on 02/13/2012 for the course POLI SCI 103 taught by Professor Pevehouse during the Fall '08 term at University of Wisconsin.

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review terms for exam 3-1 - 15:34 Infrastructure Basic...

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