modernization theory
a linear relationship between economic development and democratic norms, emphasizing a shift from the “traditional man”
relative backwardness
“backward” countries develop differently in line with their
“backwardness”
dependency theory
peripheral (“backward”) countries cannot develop without isolating from the core; trajectory of development in wealthycountries disadvantages underdeveloped ones
core country
the most industrialized, technologically advanced, and economically dominant nations in the global system that can shape international relations in their favor
periphery country
less-developed nation that plays a smaller role in the global economy, characterized by a lack of industrialization, weak infrastructure, and reliance on exporting raw materials and agricultural products
Rostow’s stages of development
a model of economic development that describes a country’s progression which occurs in five stages transforming them from least-developed to most-developed countries
Newly Industrialized Countries
a nation undergoing rapid economic growth, transitioning from an agrarian-based economy to a more industrialized/urbanized one
East Asian Tigers
a set of high performing economies in East Asia that grew rapidly from the 1970s to the 1990s
the developmental state
a state that manipulates and guides economic policy to achieve economic development (usually in a short period of time)
chaebol
large, family-controlled conglomerates in South Korea that propelled much of the country’s industrial growth
Law of Ill Gotten Gains, South Korea
government strong arms a company to do something it otherwise wouldn’t do. in SK, government accuses unwilling business of corruption because the business won’t move to industry -> business can be sued/jailed/prosecuted or they can do what government suggests (ie. moving to industrialization)
Import-substituting Industrialization
development strategy seeks growth by replacing foreign goods with domestically produced industrial goods
Export-oriented Industrialization
a country focuses on producing goods and services for export to boost economic growth by integrating into the global market and attracting foreign investment
Park Chung-hee, South Korea
invests in human capital; gives government protection for businesses to persuade people to go from ag. to manuf.; encourages private investment in industries
Neoclassical economics
consumer perception drives product pricing
what countries are a part of the East Asian Tiger Model?
Malaysia, Japan, Singapore, and South Korea
comparative advantage
nations (or entities) benefit from specializing in producing goods and services they are most efficient at
