CHAPTER 12 THE NORTH-SOUTH GAP CHAPTER OVERVIEW Chapters 12 and 13 address the issues and concerns related to the disparities in wealth and power between the industrialized countries in the global North and the more typically less industrialized countries in the global South. Chapter 12 presents an overview of the more left-of-center theories that seek to explain this phenomenon, whereas Chapter 13 examines the situation from a more classical liberal perspective. The chapter forcefully asserts the dire prospects of people who are confronted with abject poverty—a kind of poverty unknown to most citizens of the United States—and details the consequences. The current state of the global South is described, including the challenge to provide even basic human needs, hunger, urbanization, and the role of women in development. The difference between migrants and refugees is discussed, and the issue of human trafficking is raised. Theories of the accumulation of wealth—how it occurs and who has been able to control the process—are presented. A comparison between capitalist and socialist approaches is offered, and world-system theory is explained. Finally, the chapter addresses the impact of imperialism on the global South, both at the time of imperialism and to the present day. The history of world civilizations, and dominance of European civilization, is provided, along with a history of imperialism. The effects—both positive and negative—of colonialism are described and the current situation of postcolonial dependency is discussed. Poverty and lack of access to basic human resources are prime causes of revolutions, and communist revolutions during the Cold War are discussed. The changes to governments after revolutions are analyzed, with the conclusion that, in many cases, they are not too different, at least in the long-run. CHAPTER 13 INTERNATIONAL DEVELOPMENT CHAPTER OVERVIEW Chapter 13 examines the issue of economic development from a more capitalist perspective. One simple measure of economic development is per capita GDP. Using this measure, the successes and failures of the South as a whole and, more importantly, of its regions and countries, can be analyzed. The discussion then turns to the experiences of a variety of countries in the global South. First, the Newly Industrializing Countries (NICs) are discussed. In particular, the success of the four tigers of East Asia—South Korea, Taiwan, Hong Kong, and Singapore—are described. Second, the Chinese and Indian experiences are discussed. Finally, brief descriptions of a variety of other countries from Asia, Africa, Latin America, and the Middle East are provided. No single model of success emerges from the discussion of these countries’ experiences. However, the authors identify several common themes concerning trade, the concentration of capital, authoritarianism, and corruption. With respect to trade, two ...

1. CHAPTER 12
THE NORTH-SOUTH GAP
CHAPTER OVERVIEW
Chapters 12 and 13 address the issues and concerns related to
the disparities in wealth
and power between the industrialized countries in the global
North and the more typically
less industrialized countries in the global South. Chapter 12
presents an overview of the
more left-of-center theories that seek to explain this
phenomenon, whereas Chapter 13
examines the situation from a more classical liberal perspective.
The chapter forcefully asserts the dire prospects of people who
are confronted with abject
poverty—a kind of poverty unknown to most citizens of the
United States—and details
the consequences. The current state of the global South is
described, including the
challenge to provide even basic human needs, hunger,
urbanization, and the role of
women in development. The difference between migrants and
refugees is discussed, and
the issue of human trafficking is raised.
Theories of the accumulation of wealth—how it occurs and who
has been able to control
the process—are presented. A comparison between capitalist

2. and socialist approaches is
offered, and world-system theory is explained.
Finally, the chapter addresses the impact of imperialism on the
global South, both at the
time of imperialism and to the present day. The history of
world civilizations, and
dominance of European civilization, is provided, along with a
history of imperialism.
The effects—both positive and negative—of colonialism are
described and the current
situation of postcolonial dependency is discussed. Poverty and
lack of access to basic
human resources are prime causes of revolutions, and
communist revolutions during the
Cold War are discussed. The changes to governments after
revolutions are analyzed,
with the conclusion that, in many cases, they are not too
different, at least in the long-run.
CHAPTER 13
INTERNATIONAL DEVELOPMENT
CHAPTER OVERVIEW
Chapter 13 examines the issue of economic development from a
more capitalist
perspective. One simple measure of economic development is
per capita GDP. Using
this measure, the successes and failures of the South as a whole
and, more importantly, of
its regions and countries, can be analyzed.

3. The discussion then turns to the experiences of a variety of
countries in the global South.
First, the Newly Industrializing Countries (NICs) are discussed.
In particular, the success
of the four tigers of East Asia—South Korea, Taiwan, Hong
Kong, and Singapore—are
described. Second, the Chinese and Indian experiences are
discussed. Finally, brief
descriptions of a variety of other countries from Asia, Africa,
Latin America, and the
Middle East are provided.
No single model of success emerges from the discussion of
these countries’ experiences.
However, the authors identify several common themes
concerning trade, the
concentration of capital, authoritarianism, and corruption. With
respect to trade, two
models of development which have been tried by different
developing countries over
time include import substitution and export-led growth. The
prospects for each are briefly
discussed and related to the issue of the terms of trade.
The need to concentrate capital is particularly problematic; to
invest in manufacturing,
states must concentrate what surplus their economies produce,
which creates a short-term
problem with respect to consumption. Low-cost start-up
industry sectors, such as textiles,
are mentioned, along with the fact that many of these suffer
restrictions under the WTO
system of “free trade.” New approaches to capitalization are
discussed, including

4. informal markets and microcredit.
A common theme is the need for a “strong state”—one that can
facilitate capital
accumulation and maintain stability. The prospects for
development under authoritarian
vs. democratic governments are discussed. While democracy
has not accompanied
economic development in a systematic or general way and the
fastest growing states have
generally been authoritarian, the theory that authoritarianism
leads to economic
development does not hold up.
The obstacle of corruption is then addressed. Corruption allows
government officials to
skim off critical amounts of accumulating capital because of the
power they have to
shape the process of accumulation.
The chapter then turns to a discussion of North-South business,
including foreign
investment, technology transfer, North-South debt and IMF
conditionality, and some
efforts by the South to act as a group in the international
economic regime.
Finally, the role of foreign assistance is examined, including
bilateral and multilateral
government aid in the form of grants, technical cooperation,
credits, loans, loan
guarantees, and military aid. Particular U.S. and UN agencies
are noted and briefly
discussed. Three models of development assistance are
identified – the disaster relief
model, the handout model, and the Oxfam model. The Oxfam

5. model is presented as
having the most long-term promise and influence.
Terms of Discourse
Colonialism = is direct rule of the people by a foreign state OR
Imperialism by settlement
Decolonization = Divestiture of colonies by mother country
Neocolonialism = De facto imperialism with “independence”
Imperialism Defined
Political Justification = extension of state’s power thru
subjugation (and rule) of other
people & exploitation of their resources
Moral justification = extending benefits “civilization”, manifest
destiny and the so-called
“civilizing mission” of the colons
Lenin believed (wrongly) imperialism doomed
**imperialism is a general system of domination by a state or
states of other states,
regions or the whole world… colonialism can be a form of
imperialism; in addition
imperialism takes on indirect forms of control (MNCs, foreign
aid, … ) colonialism is a
descriptive term whereas imperialism is mostly ideological,
the process whereby the dominant politico-economic interests of
one nation expropriate
for their own enrichment the land, labor, raw materials, and
markets of another people.
J. A. Hobson-and following him, Lenin-attributed the colonial

6. expansions of these years
to special new economic forces This economic explanation of
the urge to imperialism is
whatever political, religious, or more idealistic excuses might
be made, the real impulse
was always one of capitalistic greed for cheap raw materials,
advantageous markets, good
investments, and fresh fields of exploitation. The argument, in
brief, is that what Hobson
called ''the economic taproot of imperialism'' was ''excessive
capital in search of
investment,'' and that this excessive capital came from
oversaving made possible by the
unequal distribution of wealth.
Empire v. Capitalist Empire
Emperors and conquistadors were interested mostly in plunder
and tribute, gold and
glory. Sometimes called “God, Gold and Glory” where God
means the invaders’ God.
Capitalist imperialism differs from these earlier forms in the
way it systematically
accumulates capital through the organized exploitation of labor
and the penetration of
overseas markets. Capitalist imperialism invests in other
countries, transforming and
dominating their economies, cultures, and political life,
integrating their financial and
productive structures into an international system of capital
accumulation.
Lenin elaborated the argument, in his pamphlet on Imperialism
the Highest Stage of

7. Capitalism (1916), to emphasize the current importance of
finance capital rather than
industrial, and the priority of the desire to find new outlets for
investment rather than new
markets. His thesis was that imperialism was "a direct
continuation of the fundamental
properties of capitalism in general," and that "the war of 1914
was on both sides
imperialist." He used this thesis to explain the fact, which Marx
and Engels had declared
to be normally impossible in a capitalist society, that there was
a conspicuous general
improvement in the economic condition of workers in the more
advanced countries.
argued Lenin, capitalism had found a new proletariat to exploit;
and from the enhanced
profits of such imperialism it was able to bribe at least the
"aristocracy of labor" at home
into renouncing its revolutionary fervor and collaborating with
the bourgeoisie. But such
improvement could only be temporary, and since imperialist
rivalries must lead to war,
all workers alike must eventually suffer from it
** according to Lenin, core countries exploit their colonies,
bringing their profits from
the sattelites to the metropole; WHY?
a. capitalists states create too much capital to reinvest in
their societies and the
competition among capitalist states leads to imperialism
(searching for markets and
buyers ) b. the search for new markets and buyers c.
monopoly capitalism would

8. alter relations in LDCs d. war among capitalist states would
occur
a. Lenin changes Marxism revolution can occur in
undeveloped countries where
monopoly capitalism dominates…
seven dimensions
1) international political dimension
directives from colonial center are implemented in colonized
state; British colonialism in
India= East India Company followed directives in London
(political decisions made by
center) in India; e.g., revenues generated used to pay for
London policy
three levels
• metropolitan
London
• colonial
Delhi
• provincial and local
districts
2) Bureaucratic elitism and authoritarianism
small group of elites (e.g., upper class usually) in India, the
India Civil Service had about
1,000 members who made up the local administrators which
work with the state
3) statism
almost complete control of economy by state; colonial economy
very centrally run
4) use of traditional authority figures
the colonial power establishes relationships with the traditional

9. elite who are in control of
the countryside; the rajas (prince of states) in India and the
zamindar (landlords)
guaranteed British influence in rural areas [this is more the
“indirect colonialism”
practiced by the British, which is different from direct rule as
mainly employed by the
French as in Algeria]
5) use of force
tens of small wars suppressed opposition-- British India the
Sikh wars the Burmese wars,
the Afghan wars …in Africa, the Zulu wars, Ashanti wars
6) technological advantage
colonial powers remained in control through force because of
their technological
superiority. the maxim machine gun was instrumental
7) hegemonic ideology
dominant or ruling set of ideas in a society which is reinforced
by the state as part of
legitimation supporting the continuation of the existing political
regime
two sets of beliefs perpetuated throughout the rule in India
A) british were benevolent, just and modernizing
B) they were invincible
WHAT IS INTL DEV
Defined mainly as Capital accumulation
But includes …
CAPITALISTS AND SOCIALISTS DIFFER ON how INCOME
IS DISTRIBUTED
Capitalists’ view Capitalists want the concentration of capital

10. that will generate
investment rather than consumption, realization of economies of
scale, and task
specialization; integration of developing countries into the
world economy; once a
developing county is on the road to capital accumulation THEN
it can focus on poverty
and equitable distribution; capital accumulation is also
characterized as the “trickle down
approach or Top-down path to development”
SOCIALISTS argue
Advocate equitable distribution sooner rather than later; they
believe that by bringing the
poor base up to a certain social and economic level will speed
up development faster than
the trickle down approach; focus is on development from the
bottom up rather than the
top down
Globally- Capitalists do not favor political decisions that would
alter the N-S economic
disparity but rather believe the MARKET can fix itself;
Socialists are the opposite
Measured in terms of PROSPERITY
Economic activity- measured by GNP (total value of goods and
services produced in a
country) “real GNP – adjusted for inflation
or GDP (differentiates between those goods and services
produced by foreigners in a
country and those produced by citizens in other countries) per
capita; %age change in
these figures
Others argue that Q of L more important measure; HDI a

11. measure of QoL
And is a scale of 0-100 (100 being most developed) by UNDP
Measures
Long and healthy life – indicator life expectancy at birth
Knowledge – literacy an school enrollment rates
standard of living – GDP per capita
The greatest challenge to political development came from the
dependency/world system
schools.
A) ORIGIN
Dependency originated in Latin America under the auspices of
ECLA, a UN group
studying the economic problems of Latin America. Its focus
was on underdevelopment.
B) UNIT OF ANALYSIS
The Unite of Analysis [aka level of analysis] for modernization
school was the national
society, in other words, a domestic level; on the other hand,
dependency theorists utilized
the world system.
C) DEFINED
Dos Santos (1970) defines dependency as “a situation in which
the economy of certain
countries is conditioned by the development and expansion of
another economy to which
it is subjected” (231). Dependent states are kept
underdeveloped by the capitalist classes
of the rich countries.
D) DEV NOT IMPOSSIBLE--

12. Cardoso (1973) argued that dependency did not necessarily
mean that economic growth
was impossible. The impact of dependent relations can change
as a result of changes in
the international system or new contexts. Thus, “associated-
dependent development”
was possible. Enrique Cardoso went on to become Brazil’s
president but was much less
a dependista in power
E) SOLUTION-
1) ISI
The solution to dependency was import-substitution
industrialization (ISI). An autarkic
approach to develop indigenous economies, where key goods
and services are created
locally and high tariffs are placed on the same good and or
service that was imported;
approach is for state to help local industry produce that product
until it can “freely and
fairly” compete with the import.
2) problems with
ISI ultimately failed as a result of external factors such as the
“internationalization of the
internal markets” of Latin America, a ‘new’ international
economic order, and the
denationalization of older import substituting industries in the
periphery;
India used ISI and so did Brazil to some success and with some
failure. It is very
difficult to truly keep all production of a good local since there
are many ancillary parts
and goods that go into the production of most any good. In
other words, if a country
wants to use ISI in the auto industry, it is difficult since it will
have to use ISI for all or

13. most of the parts that go into the auto. So this affects
supporting industries and is hard
and often inefficient to accomplish.
Modern World System theory expanded the dependency
approach further by
conceptualizing the world system as composed of a core, semi-
periphery and periphery.
Wallerstein (1974) stresses the importance of a capitalist world
economy. The core
countries exploit the periphery. Some states lie in between the
two in the semi-periphery.
The world system is the unit of analysis.
But was dependency ‘the’ solution to the shortcomings of
political development theory?
While development has been criticized for its ethnocentrism and
conservative bias,
since it expected all states to follow the same developmental
trajectory of the West or
industrialized world and often blamed culture (see Protestant
Ethic or other similar
arguments)
Dependency theory can also be attacked as ideological in its
own right.
It is ironic that both schools of thought were reactions to the
international context.
Development began with the emergence of the newly
independent states after World
War II. Dependency originated in response to the economic
hardships that Latin America

14. faced in the 60s. Multinational corporations were proliferating
and countries of the
periphery were becoming increasingly more in debt.
Dependistas were never critical of
the terrible economic mismanagement of the communist world
or the uneven relationship
between Moscow and its periphery. Look at the impoverished
Central Asian states of
today—they are poor as a direct result of the command economy
and its implementation
by the Russian metropole and the “dependent” relationship
While modernization theory failed to explain the continued
underdevelopment of
the Third World,
dependency failed to explain the development of peripheral
countries such as the
NICs and Brazil. The focus on national society and political
culture by the
modernizationists and the focus of dependency on solely the
system did not lead to
generalizable theory that could explain political change. Both
seemed to be static.
SIMILARITIES
same research concern : dev
same methodology
polar theoretical approach--
tradition vs modernity
dev
both are highly abstract

15. core vs. periphery
The rise of the Asian Tigers--
The most successful are the Four tigers or dragons:
South Korea, Iron and steel; Hyundai
Taiwan, light manufacturing; small electronics, computers
Hong Kong, electronics, textiles, banking and trade
Singapore: light manufacturing and home to many MNCs and
traders and financial
institutions
ALL HAD STRONG STATE which intervened in economic
policy; Chiebold policy of
South Korea; Military dictatorship; Taiwan too
Also Singapore had strict leadership and Hong Kong British
rule and then rule from
Beijing
• So to think that these states simply engaged in EOI or Export
Oriented
Industrialization or Export Oriented Growth (EOG) and
somehow developed is
false; key is also the fact that they rarely had a defense burden
Thailand: “fifth tiger”? Hit by 1997 financial crisis in Asia
Malaysia and Indonesia are up and coming “Tigers”
CHINA

16. No strikes allowed; vast underpaid workforce
Corruption under the get rich policies; nepotism AND inflation;
unemployment
Increased class disparities; limited political development
INDIA – also important b/c of size; Soviet style central
planning up through the 70s; lost
big when Soviets went under; however, have been able to, at
least in some sectors,
become part of the global economy
Interesting cases for development studies
EGYPT
NIGERIA
TURKEY
IRAN
BRAZIL : inflation, debt; military regimes; class differences
MEXICO : dominant party state; nepotism; debt; NAFTA
Lessons for the Third World?
TRADE
ISI v. EOI
Terms of trade “ Price of exports over imports”

17. Capital for Manufacturing
States want to move away from sale of raw materials and
become manufactured goods
exporters: NEED mucho dinero and capital: where to get it?
Nigeria can get it from oil
sales; most LDCs cannot accumulate capital easily; they must
make political decisions:
cut back on distribution and consumption and focus on capital
accumulation; COSTS are
high politically; poverty increases; political polarization can
occur and conflict can erupt;
Can come from foreign loans and assistance IMF conditions etc;
Some think that black markets can solve the problem; and or
microcredit programs
China example: does state controlled economic growth with
strict political rules help?
Compare with Russia
The Debt Crisis and its Consequences
causes
1) rise in price of oil
what did we say was the result of this???
2) restrictive monetary policies in the North
US Federal Reserve
clamped down on the money supply to curb inflation
results
- from 1979 interest rates climbed to 16%; THIS meant higher
payments on commercial
bank loans
- world recession (declining econ productivity and high
unemployment)
- LDCs faced declining terms of trade (MEANING?)
- plunging commodity prices and increased oil prices
- bad time because their demand for oil was on the increase

18. increased interest rates
1) rising cost of debt servicing
debt service ratio= the total amount of principal and interest as
a percentage of exports
which rose to 21% for all debtors and 38% for highly indebted
countries
2) from long term loans to short term loans
before 1979 three-five year loans; after 1979 one-three;
results in using money for consumption not production;
borrowers more vulnerable
first signs
early 80s
Argentina loss to UK in Falklands war
Argentina suspended payments on a $37 billion external debt (
financial markets are
destabilized
Mexico
in 1982 says it cannot service its debt
oil demands decrease—
Mexico is dependent on oil sales for 3/4 of its export earnings ;
higher interest rates and
increased debt service; overvalued peso; upcoming presidential
election (why important)
US reaction quick bailout -- $2 billion in prepayments on oil
and in credits for
agricultural purchases from US; helped arrange a $1 billion loan
from group of banks--
postponement of debt service fees -- US brokered a long-term
IMF-Mexican settlement in
exchange for almost $4 billion in IMF credits between 1983-85 ,

19. Mexico agreed to
austerity plan-- decreasing budget deficit, limiting public sector
external borrowing,
reducing subsidies; significantly IMF refused to sign until
commercial banks agreed to
loan Mexico another $5 billion (known as complementary
financing); Mexico's
government agreed to act as negotiator for all Mexican
borrowers in talks to reschedule
repayment debts and timetables
elsewhere
Brazil by December 1982 was $91 billion in debt and in trouble;
by end of 1983 Brazil
and all other Latin American countries and some African
countries had rescheduled their
debts;
Debt Crisis Management
the Mexico model
case-by-case approach
handled by domestic austerity programs
rescheduling of debt payments
additional lending
KEY ISSUE
reaching the agreement on austerity and an IMF loan
IMF became a powerful actor
imposed and survey economic policies
as leverage would hold up loan
Debtor governments and creditor banks
agreement between creditor banks and government as rep of
debtors; no reduction of
service fees or rates
short-term results were good
a) cooperation among players

20. averted global financial crisis
monies continued to flow to debtor states and they continued
their payments
b) Mexico
by restraining imports, increasing non-oil exports went from $7
billion deficit in 1982 in
its current account to a $5 billion surplus in 1983
c) Brazil - $800 million surplus in 82 to a $6.5 billion surplus
in 1983
long-term not so bright did not solve the debt crisis in the long-
term
Korea and Turkey able to restructure their debts and resume
growth
in most LDCs growth declined real GDP down; exports down;
debts up
The Baker Plan
three part plan by james baker in 1985 to help the fifteen most
indebted countries and
complement the on-going country by country restructuring
market oriented reforms
trade liberalization
HOW? decrease tariffs
financial liberalization
HOW? by increasing FDI incentives; deregulation; reducing
subsidies; exchange rates
more commercial loans
more World Bank loans
Results
Mexico, Chile, Uruguay

21. pursued structural adjustments and market - led reforms
Brazil, Argentina and Peru
had political constituencies and fragile democracies that
pursued more government led
strategies
unfavorable external conditions
persistent weakness of non-oil commodity prices
Success was not even and The Baker Plan was seen as a failure
and supplanted by the
Brady Plan
MAT 275 Extra Credit MatLab
Euler’s Method and Improved Euler’s Method
1. Determine the Euler’s approximations for problem #7 in
written exam 1 using the
euler.m file and the code below.
In your command window, use the Matlab command code
(filling in the proper
information) to obtain the results that you need for the report.
>> f=inline(’input function here’,’t’,’y’);
>> [t4,y4]=euler(f,[0,1],?input y0 value? , 4); % solves the ODE
using Euler with 4 steps
>> [ti4(:),yi4(:)]% shows results of the method

22. 2. Repeat the process by determining the Improved Euler’s
approximations for
problem #8 in written exam 1 using the impeuler.m file and the
code below.
>> f=inline(’input function here’,’t’,’y’);
>> [ti4,yi4]=impeuler(f,[0,1],?input y0 value? , 4); % solves
using Improved Euler w/4
steps
>> [ti4(:),yi4(:)]% shows results of the method
3. Lab Write up:
Submit the following as a word document or PDF file using the
submit link in Blackboard.
1. Build the following table with the values of the
approximations you obtained in step
1 (Euler’s method). Actual Value of the solution of the DE at
each step, the Absolute
Error and % Rel. Error.
x
Approximate
Values using
Euler’s Method

23. Actual Value Absolute Error % Rel. Error
0
0.25
0.5
0.75
1.0
2. Build the following table with the values of the
approximations you obtained in step
2 (Improved Euler’s method). Actual Value of the solution of
the DE at each step, the
Absolute Error and % Rel. Error.
x
Approximate
Values using
IMPROVED
Euler’s Method
Actual Value Absolute Error % Rel. Error
0

24. 0.25
0.5
0.75
1.0
3. Provide a single graph generated by Matlab, plotting the
results of the Euler’s method,
Improved Euler’s Method and the values of the EXACT
Solution
. Make sure you provide the
proper labeling for each curve.
4. Submit a scanned copy of pages 7, 8 and 9 from your written
exam 1 with the lab report. If
these pages are not included no extra credit can be assigned.
5. Submit the entire document using the link in blackboard.

25. INTERNATIONAL INTEGRATION
CHAPTER OVERVIEW
This chapter explores yet another trend in International
Relations that has the potential to
undermine sovereignty as it has been traditionally understood:
integration. The various
factors impelling integration have triggered a struggle between
the contradictory forces of
nationalism and supranationalism. The chapter begins with an
overview of the integration
theories of functionalism and neofunctionalism and the linked
concepts of spillover and
security community. It also explores briefly the potential costs
of integration along with
the wave of disintegration, beginning with decolonization and
continuing through the
Soviet Union and Eastern Europe and to the present day.
A closer examination of the process of integration within the
European Union (EU)

26. follows, including a short history and description of the present
structure of the EU. The
differences among the various levels of economic integration
are defined, namely free
trade area, customs union, common market, and economic and
monetary union. The
current efforts to bring the EU to the level of an economic and
monetary union, as
manifested in the passage and implementation of the Single
European Act and the
Maastricht Treaty, are explored. Finally, issues related to
expansion of the EU are
discussed.
This is followed by a discussion of a broader force impelling
international
interdependence: the power of information. The varieties of
media available for
information dissemination are identified and their power to
communicate effectively
discussed. The ways in which information can be used as a tool
of government power—
because of the latter’s enhanced access to information and
ability to spread
disinformation—is examined. The ways in which information

27. can be used as a tool
against governments are also discussed, with several examples
of this phenomenon
provided.
The notion of a global culture and the concept of cultural
imperialism are introduced and
explained. Finally, the concept of transnational communities
and their proliferation is
briefly noted and several such communities identified.
LEARNING OBJECTIVES
Upon completion of this chapter, students will be able to:
1. Define supranationalism and explain how it contradicts state
sovereignty.
2. Compare and contrast functionalism, neofunctionalism, and a
sense of community
as theories of integration.
3. Explain the development of the European Union from the
Schuman Plan and the

28. Treaty of Rome to the Single European Act and the Maastricht
Treaty.
4. Describe the stages of economic integration – free trade area,
customs union,
common market, and economic union.
5. Distinguish among the institutions of the European Union and
explain its
“democratic deficit.”
6. Explain the rationale for monetary union and the process
followed by the
European Union.
7. Explain the contradiction between deepening and widening in
the European
Union.
8. Explain the effects of the telecommunications revolution in
information
dissemination.

29. 9. Explain how information can be a tool used by governments
and a tool used
against governments.
10. Explain the positive and negative impacts of the nascent
global culture, including
the concept of cultural imperialism.
Realism v. Liberalism
Nationalism v. Supranationalism
Integration T
Defined
Recall the differences between R and L
What does R say about the S? MOST IMPORTANT ACTOR, S
are SOVEREIGN,
SEEK SURVIVAL at minimum and POWER
L rejects and COUNTERS with INTEGRATION T
Realists would emphasize NATIONALISM
(a reassertion of state sovereignty NOT nec the same as
patriotism)

30. Liberals would emphasize SUPRANATIONALISM (a trend
towards combining Ss into a
larger unit with a separate governance and set of rules and regs)
INTEGRATION T
Result of the two WW, scholars and policymakers believed that
the world would become
more and more unified over time.
INTEGRATION meaning the process by which supranational
units replace national
units, the process by which state sovereignty is transferred
upward from the state to
regional and or global units
BEST EG – European Union
Integration
forms
Functionalism
Neofunctionalism
examples of

31. Functionalism
The theory that technological and economic advancements will
lead to increased
supranational units (institutions and regimes) that seek to fulfill
certain functions, such as
coordinating policy about use of common rivers and waterways
or delivering mail across
borders; to measure integration, levels of mail flow and other
communications are used;
Neofunctionalism
Modifies functionalism by stating that new economic
coordination among states leads to
political coordination; technological and economic changes
spillover and lead to changes
in the political sphere; also can lead to the sense of how
community or “we” feeling that
these processes lead to; one example of this was achieved was
the post WWII book
project to change history books read across Europe– instead of
each country glorifying
their past and demonizing others – there was a uniform view of
history that was balanced

32. violence among member states
as in NATO or EU
E.g. of INTEGRATION, UN; NAFTA & WTO; Olympic Games
Free-trade areas/zones like the EFTA, NAFTA, Mercurso; where
tariffs and trade
restrictions are lifted
Custom unions- set of economic agreements and trade rules
agreed by countries on goods
coming from outside into a free trade area; Treaty of Rome
1969
Common markets- includes a custom union and rules on the
flow of capital, labor and
goods among members
History
1950 - Schuman Plan
1952 – European Coal and Steel Community
1957 – Treaty of Rome
1967 – European Community
1985 – Single European Act, to create Europe 1992
1991 – Maastricht Treaty – EC becomes EU
Euro and Justice and Home Affairs

33. Political and Military Integration
Qualifying
Just 50 years ago, the European states were at each others’
throats. Nationalism was
rampant. Talk of pure races etc. 500 year of warfare, two
world wars, then began this
process of integration and it started between the two worst
enemies: Germany and France
to limit trade barriers and create a security community
1950 - Schuman Plan – Jean Monnet and Robert Schuman,
developed the idea that
through economic cooperation one could build political
cooperation; focus was on
combining the steel and coal production capabilities of France
and Germany and THUS
1952 – European Coal and Steel Community – Italy and the
Benelux countries joined FR
and GR; mainly a group of technorats (technical experts in these

34. industries and labor and
other sectors involved) political and military cooperation did
not come about as easily
1957 – Treaty of Rome – same states created Euratom (nuclear
energy) and the EEC,
lowered tariffs and created a free trade area and customs union;
worked on CAP or
common agri policy to regulate subsidies
1967 – European Community
1985 – Single European Act, to create Europe 1992, major
revision of Treaty of Rome
focused on NTBs, what is chocolate? Belgium vs. UK and
others over cocoa butter vs.
veg oils in Cholcolate!! Belgians lost their competitive
advantage Standardizing
licensing., European Central Bank
1991 – Maastricht Treaty – EC becomes EU; 2 sets of changes
1) monetary union
(eliminating exchange rate issues by making the currency the
same) and 2) justice and
home affairs (policing the flows of people THIRD goal
political-military integration very
difficult

35. Collective goods
Free-Riders
Reexplain; hard to achieve monetary union when there is not
central taxation on member
states; so the richer countries must provide more $ to carry
along the free-riders (the
“poor four” : Greece Spain, Portugal, Ireland)
Technological advances
From radio, TV, Shortwave, Cable, Internet, Satellite
Information as a tool of government
Information as a tool against government
Consequences
Information as a tool of government
• Baker’s trip in 1992 to the CIS especially CA where every CA
minister asked
when can we get CNN

36. • Embedded reporters
• Sanitized warfare
• Disinformation (nazis, etc)
• VOA and Radio Deuetcheville Radio Israel the BBC
• Al-Jazeera
• Radio
Information as a tool against government
• Information can be used against govt
• Vietnam war, chechen war, now the gulf war
• Revolution via audio cassette
• Organizing global opposition to globalization via internet and
cell phones
Consequences
SECURITY DILEMMA IS LESS SEVERE. WHY? RISK OF
SURPRISE decreasing in
against perceived threats but
now can focus on known
threats
COLLECTIVE ACTION PROBLEMS ARE REDUCED? WHY?

37. Can ID Cheaters and
Free riders and verify cooperation and or defection
The McDonaldization of the World
Regional reactions
Islam vs. the West
The West vs. the Rest
Rich & Poor in World Politics
Key Terms
GDP, per capita, HDI)

38. -77
Colonialism and Imperialism
Imperialism (cont.)

39. Imperialism the Highest Stage of Capitalism
capitalist countries
rs
-Lenin Theories
JA Hobson
VI Lenin
International Development

40. skilled labor and adoption of technologies
How to measure
development?
-- How to measure?
values? And PPP?
Dependency (dependencia)

41. Tea, Spices, Coffee, Silk
dependencia
s with ISI
World Systems Theory

42. -periphery
Modernization v. Dependency
ailures of Dependency
Modernization
Modernization T (neo-liberal)
View of History Result of individual actions
View of third world Static
View of development As a condition = tradition
Assumptions Dev is inevitable

43. Unidirectional
Tradition v. modernity
Causes of under-dev Internal
Monopolies of labor & capital
Too much govt. intervention