Wednesday February 9
Canada US Border Agreement
Increase security AND increase trade
Security (nation-state) trade (economic integration)
- The agreement establishes a security perimeter encircling Canada and the
- Harper: “This declaration is not about sovereignty”
- he was very quick to say this, but it is about sovereignty to an extent
because converging policies of US and Canada takes away some of the
freedom that Canada has – but this happens with any agreement –
because if you find an agreement, you give up some of your rights
because you’re now bound to a contract….So Canada is losing all of its
sovereignty but both sides should lose something because of the
- Accepting these types of American policies takes away from Canadian
borders to decide on policies
- “All we’re asking for is a little democracy,” NDP MP Paul Dewar (a reaction
to the economic integration)
- This is the example of how a trilemma might work
Elsewhere: EU Leaders Meet
- For the last year or so Europe has experienced several shocks (Ireland,
Greece, etc) so EU leaders have met and discussed: How to deal with the
- France & Germany have decided on more integration! To give up more of
their sovereignty, to bound countries even tighter. And the way they do that
is by saying ---
- Euro countries will get lots of cash to help with the debt crisis. In return: all
future economic policy needs to secure EU approval before implementation.
- This means that there’s pretty much one economic government – no
government will be able to take upon itself the acceptance of economic or
fiscal approval without approval from someone else.
- So far, the initiative triggered a backlash from other EU leaders anxious to
defend their national economic, labour and welfare policies.
- Agreement is not dead yet, there’s another meeting in March.
- Situation right now is not very sustainable
- 20 countries objected
- One of the outcomes: Germany rejects the bail out plan
Last week we spoke about underdevelopment with a focus on Africa.
UN Human Development Index (2009) – map – Africa is really where we find
a greatest number of countries that suffer from underdevelopment. It`s the
most striking concentration of underdevelopment.
The J-Curve of Economic Reform
- Economic reforms (such as moving from ISI to ELI) are politically
challenging especially when political institutions are weak and their
- Example of Mozambique – reforms that should have led to growth didn’t,
because people didn’t trust the government and the institutions so therefore
the economy didn’t start growing. Institutions are important.
One way we can look at institutions is by looking at the regime type.
- Showed us a world map of Democratization from 1945-1995
- Map of military regimes
- Map of regime types
- We usually tend to assume that it’s also correlated with very
problematic institutions (high corruption, economic submission, etc) –
all of that really comes with these types of problems. So just looking at
the map tells us a story about institutions in Africa.
- Also brings up question: what’s the best way to start development?
Should we focus on democracy or economy first???? We need good
economic policies, but we also need good political institutions
Why Weak Institutions?
- Colonial legacy
- No institutional infrastructure; no modern self rule tradition
- A nation state? (Sudan for example)
- Traditional authority structures; culture; geography
- Instability weak institutions instability
- The curse of natural resources (the Dutch disease)
- some countries have natural resources but at times the fact that they
do have these resources initiate wars ( i.e. sierra leone’s blood diamonds).
These countries tend to have non-democratic institutions and suffer from
internal conflict. These governments don’t give a shit about their people when
they have their own, independent natural resources. They don’t need to
govern well, or care about social well-being.
- critique from foreign aid – when countries get aid it removes their
accountability from local governments
Wars and Atrocities (1900-1925) map.
Another implication of the weak institutions is what happens when it comes
to stability and security
Geography and the Poverty Trap
- War poverty; poverty war
- Tropical regions (poor soil, disease), remote locations (large transportation
costs), land-locked (transportation costs, border costs) . Landlocked countries
tend to do less well than countries with access to maritime trade routes.
- Given the fundamental geographic inequality, won’t the third world always
be poor? (some people question if Africa is doomed to be poor)
- The idea of the poverty trap – Jeffery Sachs discusses this. In his work, he
says in order to escape the poverty trap (when they don’t even have enough
resources to start growing anything, any economy, any agriculture) – you
need access to very simple things like water, shelter, food, education – that’s
the type of aid you need because once they have this, they’ll be able to escape
the poverty trap)
Natural Disasters (UN Global Environment outlook 2000) - Sub Saharan
Africa is number one with natural disasters in the world. Here seems to be a
correlation between natural disasters, and the locations of underdevelopment
– so it might not be a coincidence. E.g., Haiti.
- Haiti and Chile went through similar earthquakes. But the infrastructure
in Chile is much better. The issue of natural resources when it comes to
number of casualties might not be about atural diasters but also about the
human conditions, the institutions etc and that brings us back to where we
Salvaging the Modernization Theory
- The theory is valid but the countries failed to follow its prescription and
hence flopped. The ‘blame’ is with local conditions in the LDC’s.
- Economic policies
- Natural Environment
- Thy opted for ISI rather than ELI…or these countries institutions are
wrong...Or modernization theory is correct but there are too many wars...OR
modernization theory is correct but there’s way too many natural disasters,
The agreement establishes a security perimeter encircling canada and the. Harper: this declaration is not about sovereignty . Accepting these types of american policies takes away from canadian borders to decide on policies. All we"re asking for is a little democracy, ndp mp paul dewar (a reaction to the economic integration) This is the example of how a trilemma might work. For the last year or so europe has experienced several shocks (ireland, France & germany have decided on more integration! To give up more of their sovereignty, to bound countries even tighter. And the way they do that is by saying --- Euro countries will get lots of cash to help with the debt crisis. In return: all future economic policy needs to secure eu approval before implementation. This means that there"s pretty much one economic government no government will be able to take upon itself the acceptance of economic or fiscal approval without approval from someone else.