Politics of Developing Nations

Politicsof Developing Nations

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Short-AnswerQuestions

1. Patron-ClientNetwork- This describes a system where a mutually obligatoryrelationship is arranged by an individual who has wealth, power,social status, or some other personal resource. Such individualsacquire the loyalty of humble persons. Therefore, the patron-clientnetwork ensures that political support is traded for materialcomforts.

2. Financialrepression- This is a term used to describe fiscal measures used bygovernments to reduce debt and boost their coffers. Such measuresinclude the deliberate attempts to maintain low interest rates thatsupersede the rate of inflation. Consequently, savers remit taxesthat are transferred as benefits from lenders to borrowers. Financialrepression allows the government to receive cheap loans fromcommercial banks.

3. Caste- Thisrefers to segmented, hierarchical systems of social organization andcontrol. Individuals are born into caste (priestly, untouchables)which determines everything about a person’s place in society. Someof the predetermined factors involve education, employment, andmarriage. Opportunities distributed according to caste eliminatecompetition.

4. Corruption-This refers to a form of unethical or dishonest conduct by a personentrusted with a position of authority, often to obtain personalbenefit. It may include many activities such as embezzlement andbribery. Granted, corruption could involve practices that are legalin many nations. In particular, political corruption refers to theuse of powers by government officials to acquire illegitimate gains.Nevertheless, an illegal act by an officeholder constitutes politicalcorruption only if the act is directly related to their officialduties, is done under color of law, or involves trading in influence.

5.Redistribution- This refers to the transfer of income and wealth fromsome individuals to others by means of social mechanisms. Some ofthese mechanisms include taxation, charity, welfare, public services,land reform, monetary policies, confiscation, divorce, or tort law.Redistribution is concerned with reducing inequalities in wealthdistribution.

Essay 1

2. Dependency leads to getting stuck by incapacitating the ability ofpoor persons to fend for themselves. On the other hand, poorleadership leads to getting stuck through the lack of developmentpolicies. Socioeconomic conditions cause people to lack adequateresources. In particular, the collective action problem hinders theability of persons to cater to their personal preferences. In thisregard, the interests of the group differ from an individual’sinterests. The economic and social benefits of a particular endeavordepend on each person in the group cooperating and acting in unison.Nevertheless, large societies cannot provide a guarantee of unanimousaction. Therefore, each person is motivated to act in theirindividual interest. However, countries such as China and Indiapresent exceptions to the logic of these policies. For example, Indiaseemed to be a pluralist democracy during the Congress Party’s era.During that time, the country had peaceful elections with very fewincidents of violence. Also, there were smooth transitions from oneregime to the other. Nonetheless, the caste system causedrestrictions in entry by barring citizens from fully participating inthe democratic process. Such discrimination was visible during thelong political succession of members of the Gandhi family. Besides,vote banking was a popular phenomenon where groups of Indianscustomarily elected new leaders based on their caste. Consequently,their dependency on aid limited the full expression of their domesticrights. On the other hand, China may seem to have plenty of economicprosperity due to its high level of GDP per capita. Nevertheless, theseeming prosperity occurred due to the movement of inputs rather thaninnovation and economic development.

Essay 2

1. Pettis andother economists have maintained that China needs to alter itsdevelopment policy to focus on domestic demand. Many economists areconvinced that the country needs to introduce competition todetermine who gets loans. For example, banks can offer competitiveloans to people rather than making capital available to those whotrade political favors. Chinese leaders (all Phase B) have opted fora policy that dramatically suppresses domestic demand. China’sdevelopment policy has three key distortions. First, the governmentmanipulates policy so that general public pays for the transfer toexporters, who can then capture domestic consumption (wealth) inother countries. Secondly, their export “success” is based ongovernment policies that allow Chinese exporters to undercut thecompetition in export markets. The costs for ensuring such policiesare paid for by average Chinese citizen. Thirdly, innovation is notthe source of Chinese export success. This is because the governmentmoves resources in such a manner that allows them to offer goods atvery low prices. Besides, the country lacks entrepreneurs who havegone out and risked their own capital. Subsequently, businessmencannot figure out how to innovate to provide a cheaper, betterproduct. Nevertheless, China is not likely to make the changesproposed by Pettis and other economists. This is because Chinalargely competes on low price, rather than on quality. Therefore, therise in GDP is one-off Phase B growth, and not development.Furthermore, prices are lowered through government intervention thatredistributes from consumers to producers. However, the Chinesegovernment cannot force improvements in quality through innovation.

Politics of Developing Nations

Politicsof Developing Nations

Economicgrowth can bedescribedas a rise in market value of the products and services created in aneconomy in due time. Economic growth isusually measuredinterms ofthe risein real GDP. Economic development, on the other hand, entails thepolicies and process by which a country improves the social wellness,political, and economics of its citizens. The two terms differregarding the aspects involved. In other words, economic growth canbe referred to as a narrower conception as compared to economicdevelopment.

Ineconomic growth, more output can happen via the addition of moreinputs i.e. more workers, seeds, or land also referred to as scalingup according to Bates. On the other hand, economic developmententails production of more outputs. It involves the addition of morethan just simple inputs. In addition to that, innovation togetherwith economic development multiplies the probabilities available withthe given stocks. It is more than proportionate rise in the output.Apart from that, it results in a continuous, stable, and long-termprogress in the three indicators i.e. Gini index, income per capita,and absolute poverty. It defers from economic growth which usuallyresults to busts and booms i.e. inputs that can be added are revealed(boom) and depleted (bust). The busts and booms do not result instable long-term progress in the three indicators. In general,economic growth brings about quantitative changes within the economy.Whereas, economic development champions both quantitative andqualitative shifts in the economy. In addition to that, it is mostlyconcerned with the structural variations of the economy.

Trujillo’srule

Trujillochanged the rule in the Dominican Republic from a family and clansystem to a unified national government. He also consolidated themarkets in the process. During this reign, Trujillo managed to movethe country from Phase A to B. The state moved from being just a mob,caricature, or tribe to become a Republic. As compared to othercountries such as Haiti as well as other leaders who stashed theirmoney abroad, Trujillo was core in the realization of Phase B in theDominican Republic.

AgustinCabral and her daughter Urania Cabral remind the readers of thenegative aspects of the Trujillo rule. Though the Dominican leaderchampioned great developments through iron fist rule, he had a badside. Agustin was a high ranking member of the Trujillo regime andmight have played a role in letting the president rape Urania. Somecountries employ dictatorship to champion advancements. Agustin andUrania help us to understand the negative sides of Trujillo’s rule.Agustin fell to disgrace once the regime ended.

JohnnyAbbes, who was the head of the Military Intelligence Service (SIM)during Trujillo`s rule, backed it. The military head is depicted asbrutal and cruel. Abbes had the right to distribute the importedproducts making profits in the process. He was at the forefront inending the United States occupation of the region. Trujillo ensuredall his collaborators excelled in their respective businesses.Balaguer was Trujillo’s puppet. Though he seemed insignificantduring Trujillo’s reign, Balaguer commanded authority after thepresident’s death. The characters rightly suggest that people inpower typically decide who benefits from the laws. In fact, if youhappen to be in favor of the ruling regime, then benefits are quitesubstantial. It is a common feature in nondemocratic (Phase B)states. Pupo Roman was a key figure in the assassination plot. Thestakes at Phase B are quite high i.e. if you are not in favor of theleaders, then one is bound to lose. Trujillo`s reign can typifynondemocratic nations. Though much developments happened during thistime, the social aspects were significantly affected.