Test Bank Role of State in Development Chapter 8

Chapter 8

State of the State: Does the State Have a Role in Development?

Multiple Choice Questions

1. Which of the following is the best definition of a “nation”?
   1. A definite territorial and political entity, with a population that identifies itself as a common group in juxtaposition to others.
   2. A sovereign country recognized by the United Nations.
   3. A sovereign country capable of its own self-determination.
   4. A body of people, living in a territory, aware of its own aspirations for political autonomy.
   5. A group of like-minded people, regardless of their physical location.
2. Traditional definitions of the term “state” are often accused of being what?
   1. Too inclusive
   2. Exclusionary
   3. Eurocentric
   4. Unclear
   5. Too generic
3. Which of the following is NOT a part of the definition of a state?
   1. It has a monopoly over the means of force within a designated territory that it controls.
   2. It contains no more than two distinct ethnic groups or “nations.”
   3. It has legitimate support from the majority of the population living in its borders.
   4. It is recognized by other states.
   5. It is empowered by the population with making public decisions.
4. Which term refers to the notion that governments require the consent of their populations to rule?
   1. Autonomy
   2. Dependency
   3. Legitimacy
   4. Hegemony
   5. Democracy
5. Which Indian industry collapsed under British pressure during the colonial period?
   1. Spice
   2. Textile
   3. Tea
   4. Rice
   5. Cotton
6. What does “state autonomy” refer to?
   1. The total number of people supportable by a state.
   2. The degree of insulation a state has from external and social forces.
   3. A state’s ability to weigh technical decisions.
   4. A state’s ability to defend itself.
   5. How heavily the state is involved in the market.
7. Which term was coined by radical development theorists to describe a state that is ruled by an elite that is tied to, or “bought out by,” external interests?
   1. Weberian
   2. Hegemonic
   3. Bureaucratic-Authoritarian
   4. Compradorial
   5. Hobbesian
8. Which of the following is NOT a sign of the persistent difficulty that developing states face in engendering economic development?
   1. Reliance on commodity exports
   2. Reliance on external technology, investment, and imports
   3. The “brain drain”
   4. The link between military rule and the influence of other states
   5. Reliance on import control schemes
9. Which of the following would NOT inhibit “state capacity”?
   1. Inappropriate economic systems
   2. Poorly-trained personnel
   3. Out-of-date equipment
   4. Small budgets
   5. All of the above would inhibit state capacity.
10. When did the push for industrialization to “modernize” become one of the central goals of developing states?
    1. 1890s
    2. 1930s
    3. 1960s
    4. 1980s
    5. 2000s
11. Which of the following countries has NOT implemented a “state-planning model”?
    1. India
    2. Ghana
    3. Cuba
    4. Egypt
    5. South Africa
12. Over the course of the last century, debates about the role of the state in economic development have raged between whom?
    1. Marxists and Keynesians
    2. Keynesians and free market theorists
    3. Free marketers and Marxists
    4. Postmodernists and free marketers
    5. Feminists and Marxists
13. Where did structuralism emerge?
    1. Europe
    2. The United States
    3. Africa
    4. Latin America
    5. Asia
14. Which of the following is true, according to the Prebisch-Singer hypothesis?
    1. Trade surpluses help reduce the price volatility of industrial goods.
    2. Commodity prices are directly proportionate to industrial output.
    3. Industrial goods do not move as quickly when commodity prices are volatile.
    4. Commodity prices earn less over time than industrial goods prices.
    5. Industrial goods prices are more volatile than commodity prices.
15. According to Chalmers Johnson, which of the following was responsible for the East Asian Miracle?
    1. State regulation
    2. Market liberalization
    3. Cultural values
    4. Modernization
    5. Democratization
16. What term did Albert O. Hirschman use to describe the need for investment in a cluster of related industries in order to achieve industrialization?
    1. Cross fertilization
    2. Interdependency
    3. Import substitution
    4. Critical mass
    5. Linkages
17. Which term was first used by Chalmers Johnson to describe a state that could successfully target specific economic sectors for promotion, driving industrialization forward?
    1. Developmentalist state
    2. Authoritarian state
    3. Classless state
    4. Night Watchman state
    5. Socialist state
18. What metric is most often cited to critique neoliberal policies?
    1. Absolute poverty
    2. Brain drain
    3. Income inequality
    4. Growth
    5. Unemployment
19. In light of the disappointing results of market reforms, which of the following does mainstream economics now consider to be a key variable for successful economic growth?
    1. Trade
    2. Currency speculation
    3. Foreign direct investment
    4. Religion
    5. Institutions
20. What does “governance” refer to?
    1. Efficient government management
    2. Government-maintained social order
    3. An autocratic style of government
    4. The maintenance of order with as little government action as possible
    5. Rule through the state rather than involving civil society in the process
21. Which term refers to the “capture” of states by private sector special interest groups, who then use their influence to lobby for policies that benefit their interests?
    1. Empowerment
    2. Electoralism
    3. Rent-seeking
    4. Nepotism
    5. Clientelism
22. In the post-2008 financial crisis world, what two critiques have challenged neoliberal hegemony?
    1. Increased global inequity and demands for labour protection in the Global South.
    2. China’s state-backed growth and the environmental externalities of capitalism.
    3. Increased security concerns and the rising refugee crisis.
    4. The challenge of the NICs and lack of American leadership.
    5. Russian militarism and Chinese regional hegemony.

23. What are public-private partnerships (PPPs)?

• 1. An attempt to marshal the best of both the private and public sectors
  2. Taking expertise and efficiency from the private sector
  3. Taking on public interest projects with funding from the public sector
  4. Both B & C
  5. All of the above

24. What is a difference between the evolution of the notion of state in Europe and the developing world?

• 1. Mercantilism
  2. Violence and abuse
  3. The development of national identity
  4. Ethnic plurality
  5. Multilingualism

25. What is clientelism?

• 1. The same as corruption
  2. A form of corporate social responsibility
  3. Favouritism for particular groups that may be legal, but is inimical to social interests
  4. The “friction” in a market
  5. A synonym for public-private partnerships (PPPs)

26. What were colonial economies based on?

• 1. Statistics
  2. Fair trade
  3. Mercantilism
  4. Free trade
  5. Strong international institutions

27. The COVID-19 pandemic has ___________________.

• 1. illustrated the unequal access to health care and medical supplies between the Global South and the Global North
  2. created a temporary reverse urban flight in the Global South
  3. caused the global recession to hit the Global South harder than the Global North
  4. revealed the weaknesses of international organizations and the severe gaps in global health capacity
  5. All of the above

28. According to John Lock, how is a state legitimized?

• 1. By strong democratic institutions
  2. When corporativism is put in place
  3. By the exercise of democracy
  4. When people come together voluntarily
  5. Via a social contract

29. How were former colonies kept dependent on central powers?

• 1. By the use of embargos
  2. Using military power
  3. Through family dynasties
  4. Through fair trade
  5. Through multinational companies

30. What patterns of the colonial era were kept even after independence processes?

• 1. The combination of force and co-optation used to control populations and extract resources.
  2. The combination of democratic institutions and force.
  3. The extraction of natural resources.
  4. The mercantilist nature of international corporations.
  5. The building of railways for resource extraction.

31. What role did the United States play in the growth of developing countries’ economies in the 1960s?

• 1. It helped shaped national borders.
  2. It benefitted from the miracle economies of Mexico and Brazil.
  3. It combatted the Soviet Union.
  4. It helped development by its expenditures and imports.
  5. It provoked a process known as brain drain.

32. What are the two main visions around the role of the state in development?

• 1. Chinese and Western
  2. Asian and American
  3. Compradorial or Weberian
  4. Locke and Rousseau’s
  5. Brazilian and Mexican

33. What does compradorial mean?

• 1. The conflict between the US and the Soviet Union after World War II
  2. Ties of the developing state to external interests
  3. Ties of the developing state to the US expenditure
  4. Whether a foreign county invests on military adventures in a developing country
  5. A Weberian perspective to the notion of state

True or False Questions

Traditional definitions of the term “state” are Eurocentric.

Many former colonial states enjoy a strong sense of legitimacy among their population.

Colonial states were often created intentionally to mix different populations together in order to control the population with a minimum of numbers.

Jean-Jacques Rousseau and John Locke both agree on the need for consent to legitimate the state.

Colonial states were tied into the commodity trade of the mercantilist system.

The Cold War rivalry between the US and USSR limited aid available to post-colonial states.

The term “compradorial” refers to a developing state where the ruling elite are linked with external interests.

“Embedded autonomy” refers to states that avoid developing any ties with foreign or domestic elites.

“State autonomy” could also be referred to as “insulation” from external forces.

In the early 1960s, the push for a return to agricultural production became the main goal of developing states seeking to “modernize.”

According to Keynesianism, governments play an important role in development.

India adopted a state planning model of industrialization.

Structuralism argues that states were needed to destroy “bottlenecks” that prevented a market-based industrialized economy from developing naturally.

During the 1960s, many of the World Bank’s projects centred on large infrastructure projects.

By the 1970s, stagflation and the debt crisis had made many policy makers and scholars optimistic about the state’s role in development.

The biggest challenge to neoliberalism comes from scholars who have tried to explain the impressive rise of Latin American industrializing states.

The implementation of neoliberal policies decreased income inequality in most of the world.

Along with their focus on governance, mainstream economists have begun to consider institutions as key variables for growth.

Clientelism refers to the “capture” of the state by special interests that use their influence to further their own interests.

The World Bank refers to the term “governance” to refer to its concern with how well states function in managing markets.

An increasing share of the world’s financial transactions take place in offshore tax havens.

Alan Greenspan was a strong advocate for market-driven solutions.

Corruption is favouritism for particular groups that may be perfectly legal but inimical to social interests.

According to radical Marxism, the post-colonial state is a continuation of the colonial state.

Weber thought that colonial states could never develop a government that is purposeful, rational, and legitimate.

Latin American states lack a strong sense of nationalism, which means their autonomy is jeopardized.

After the 1973 coup, Chile’s monetary stability and relatively high growth rates acted as a demonstration of the ability of state-led development.

Keynesian theories were not adopted after World War II.

Public-private partnerships (PPPs) are predominantly funded by private companies.

In the early 1960s, the push for industrialization became one of the central goals of developing states.

The focus of good governance has encouraged most development agencies have adopted some form of “results-based management” and a recognition of the need to “consult” stakeholders.

The “Beijing Consensus” model of development embraces state intervention in strategic sectors, including higher value-added, like technology, sectors.

The image of socialism as a benign system for the betterment of people took a hit with the Soviet repression of rebellions in the areas it controlled, and Chinese repression of internal dissent.

Short Answer Questions

How do political philosophers define “legitimacy” in reference to the state?

Why is the Eurocentric derivation of the modern state problematic?

Discuss the concepts of state “capacity” and “autonomy” in a development context.

Define and contrast the “compradorial” state and the “Weberian” state.

Briefly present the successes and failures of state-led industrialization in countries such as the Soviet Union and China.

Discuss the structuralist view of industrialization.

Explain the role of the “debt crisis” on development policy.

What factors led to the wave of conservatism that swept the world in the 1980s?

Discuss the “Chilean miracle” in the context of the state and development.

Explain Chalmers Johnson’s argument for the success of East Asian economies.

What were the challenges that almost immediately faced the rise of neoliberalism?

Describe the recent mainstream turn toward a focus on institutions as a key component of economic growth.

Compare the differences between clientelism and corruption.

What is “governance” and what is its influence on development policy?

What is “state capture” in regards to development?

Why do some analysts argue that, despite claims to the contrary, the state is more important than ever to the process of development?

How has governance been defined by non-economists?

How does the COVID-19 pandemic illustrate global inequalities between the Global North and Global South?

What elements of statehood characterized the colonial states?

What is the meaning of authority in relation to the notion of state?

What are the differences between Lock and Hobbes in relation to the notion of state?

What is the “Beijing Consensus”?

Essay Questions

1. Why is it useful to consider the state in the Global South a colonial legacy?
2. How can the state’s role in development be defined?
3. Does the 2008 financial crisis and the COVID-19 pandemic mark a shift from neoliberalism? Explain why or why not.
4. Explore the influence of globalization on the state’s role in development.
5. Describe some of the struggles faced by developing states?