Economics and International Development (Ch. 4)
Intro paragraph
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Economics are centered around how most efficiently resources will be allocated
The ongoing interconnectedness of world governments, allows for economic growth and
development
What is Economics?
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Economics is the social sciences of production, distribution, and consumption of goods and
services
Wants and needs are unlimited, but resources are limited
Liberal Economics
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Liberal economics explain that humans have infinite wants and needs which create demand, but
limited resources create scarcity
The values of demands not met are called opportunity cost
Economic Nationalism
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Economy is not independent of state’s social and political system; however, a strong part of the
nation state.
Mercantilism is a political theory of economics that holds economic well-being of nation directly
to control of global capital volume
Marxism
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Karl Marx created classless economic society called communism
Politically controlled economy
Modern Marxism can be divided into Marxism-Leninism and Social Democracy
Micro and Macroeconomics
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Micro- studying specific market systems on a small scale such as behavior of individuals, firms,
and industries
Macro- study of combined performance of all markets in defined market system
o GDP is total value of all goods and services produced in a country during a year
Developmentalist Perspectives
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Study economic growth in less-developed countries
Rostow- “The Stages of Economic Growth: A Non-Communist Manifesto
Wallerstein and Gunder Frank offered critiques of Rostow’s theories
Globalization and Rising Discontent
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The expansion of global communication, market connections, growing social and political
interdependencies
Neoliberalism economic theory and ideology serves as primary backdrop for globalization
Global Economic Crisis of 2008
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Began in United States with sharp decline in banking liquidity
Spread worldwide because United States is a global financial hub
The world recession reduced economic activities
IMF provided 110 bn Euros to Greece
Sustainability
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Carrying capacity references the consequences of human systems of economic growth in limited
and finite global resources
This leads to seeing how long these resources can “sustain” human actions
Conclusion
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Global Economic crisis led to much distrust in world governments.