Political Science 2211E Final: FINAL 2211E

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Political Science
Political Science 2211E
Zheger Hassan

FINAL EXAM REVIEW: BISINESS AND GOVERNMENT Terms and concepts Public policy: “Whatever governments choose to do or not to do. “ (Thomas Dye) The non-decisions can be just as important as taking action. This is essentially the government controlling aspects that shape a society e.g. health, education, infrastructure, environment, welfare, urban development, the economy and social security. Example of public policy would be taxation. The government calls for certain percent of citizens income to help contribute to our needs and demands how they chose to allocate and spend tax money is an outcome of public policy. Policy cycle (rational model): 1. Agenda Setting. Government identifies and recognizes a problem. They have to decide the seriousness if it’s a problem. How does the government prioritize these problems? 2. Policy Formulation. Policy makers propose a situation from the set agenda. This process involves research or exploring different options for addressing a problem. 3. Policy Adoption. Politicians decide on a solution. Critical stage because politicians can be held accountable for their decisions. This is when the media can comment and publicize their opinions. They need to analyze the costs and benefits, advantages and disadvantages. 4. Policy Implementation. 5. Policy Evaluation. Governments now monitor the policy to determine whether it was a success. Is it efficient? Public choice model: This relates styles of thinking to political science. Public policy is about politicians looking for votes. Decision makers are self-interested and maximize utilities. They will pass policies that will get them vote, to gain income and improve their position. This is significant because it is often criticized because people are motivated by self-interests. How do you measure a person’s values or ideologies commitment though? This model cannot explain this. Classical Liberalism: falls upon the belief that individuals who act economically out of self-interest eventually help society as a whole. Classic liberalists believe that the free market promotes prosperity and leads to well being of every body. This is ideology was developed by key theorists such as Adam smith, John Locke and Thomas Jefferson. It is significant because it is an ideology that has shaped the political economy and ultimately birthed neo-liberalism. Adam Smith: supports this theory. He believes that people are producing goods out of self-interest and are benefitting others. “It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.” He is significant because he is not only a key ideologist for classical liberalism but he also developed what is known as the invisible hand, the unobservable market force that helps the demand and supply of goods in a free market to reach equilibrium automatically is the invisible hand. Neo-liberalism and its characteristics: ▪ It uses old concept liberalism and attaches a new meaning to it. Good examples of neo- liberalists are Ronald Regan, Margret Thatcher and George Bush. It comes from the UK and Austria. ▪ It is important to neo-liberalists that individuals have freedoms and government should only provide security and education. ▪ Some associate neo-liberalism with global inequality and environmental degradation. ▪ Proponents believe that Neo-liberalism promotes democracy, freedom, free trade and global cohesion. ▪ The political tension in the 1970’s seemed to create the reemergence of neo- liberalism and caused Keynesian economics to fall. Milton Friedman and the school of economics ▪ Amongst the most prominent economists ▪ He was initially a Keynesian economists believed in some form of intervention in the 1940’s, he later rejected this discipline and promoted neo-liberalism ▪ He believed that the government should adjust policies in response to citizens economic activity ▪ He believed that a free market is best for solving social issues such as economic inequality. ▪ Friedman’s economic philosophy: when the government taxes highly it creates an incentive for individuals to not be responsible with their money. ▪ Critiqued the taxation system and believed that people who make a certain amount of money maybe less, should not be taxed at all. ▪ He argued that the social services that government provided would make individuals dependent on the government. ▪ Friedman argued that the government has a weak impact on the economy. He believed that individuals could rationalize themselves during economic hardship. Neo-liberalism and globalization: Concepts include deregulation of trade policies, removing trade barriers in other countries, Promoting capitalism, allowing flow of labour and goods into other nations. Critiques say the neo-liberalists have lost the resources to govern themselves because of free policies that they created. They also say that it’s the governments that are putting in place the new interdependence e.g. IMF, WTO and World Bank. Significance of this is that neo-liberalism is a political ideology that has a strong influence on the global market and it is often criticized for 1. Leads to one-sided free trade agreements 2. Deregulation of goods, services and labour 3. SAPS- structural adjustment programs. Keynesianism: John Maynard Keynes developed Keynesian economics and his theory basically states that during economic hardship the government must spend more and as a result people will earn more. The theory urges that the state should spend on welfare and social assistance programs. This is significant because it was an economic theory that was set to aid the great depression in the 1930’s. Globalization debate: cons of globalization ▪ Market failures ▪ Negative impact on Environment ▪ Labour exploitation ▪ Corporate greed ▪ Exploitation of resources ▪ Growing wage gap ▪ Exclusion and exploitation of the developing world ▪ Security is threatened Neo-liberal and Keynesian justification ▪ Neoliberal policies allowed for the 2008 recession to happen: deregulation of banks ▪ Keynesian economics calls for heavier regulation and protects against the off shoring of jobs, whereas, neo-liberal policies can lead to job insecurity with in a nation. ▪ Neo-liberals call for global trade and in most cases this leads to labour exploitation. Wages are lowered significantly on order to drive up profits. Format and concepts part 2 1. Planned economy: an economy that gives the government total control over the allocation of resources. This means that govt. has control over prices, distribution, production, manufacturing and regulation. China is an example of a modern day planned economy. This form of economy arose and only happens in communist regimes. 2. Crisis of welfare state: Welfare states exist to enhance the welfare of people who are (a) weak and vulnerable, largely by providing social care, (b) are poor, largely through redistributive income transfers, (c) or are neither vulnerable nor poor, by providing medical insurance and education. The Crisis of the Welfare State 3. * Role of ideology and the corporate sector in undermining the welfare state. 4. * Canada’s mixed economy and its success until 1973. 5. * Oil crisis happened when Saudi Arabia didn’t want to supply to America cause they supported Israel. 6. * Unsustainable expenditures: In 1930 average expenditure on social insurance programs had been less than 3% of GDP. By 1950 it was 5 percent, and 1900 20 percent. 7. * Stagflation: rising unemployment and inflation (simultaneously). Keynesians don’t believe in this as they feel they should be one or the other not both. They can’t provide an explanation for this. 8. * Role of Globalization – There was more integration at the international market makes it very difficult for governments to control its own economy. Companies just look for the cheapest labor and move their operations there. 9. The Emergence and role of unions 10.* Emergence of the union: Guilds and Industrial Union. Guilds are a collective of individuals who are experts in a specific trade; they formed guilds so they choose who can practice this trade. 11.* Unions: Strikes and Political Power 12.* The ultimate tool or weapon available to unions is the strike or the threat of a strike – this is when workers withhold their labor. Unions have significant political power as well. Unions will lobby or fund political parties or 13.campaigns. Unions have also taken a social role. Examples Canadian Auto Workers Union (CAW) is pushing a national child care program. 14.* Union members are like clients of the Unions. Union members pay their dues in order to get Unions benefits. Representation when negotiating contract. Lobby ON THEIR BEHALF FOR BETTER WORKING CONDITIONS. Union members are encouraged to be vocal to improve their working conditions. Unions bring individuals together so they can lay out labor concerns. 15.* The Challenge of globalization: Globalization of production has challenged and undermined the union movement in a number of ways that have been difficult to address. 16.The individual (and Social) Benefits of Union Membership 17.* Benefits of Employees: In Canada and other western countries, union membership provides better pay, benefits, and safe and clean working conditions for its members. Some Unions have better insurance rates for their members, they could also provide legal support if needed. 18.* Job Protection: One of the main benefits of union membership of course is job protection, as most unions provide legal advice and representation in labor lawsuits. Job protection also includes members, who have to take care of family members, as these people are vulnerable to dismissal, unions protect them. 19.* Variation Across Unions and Countries. Unions in countries in continental part of Europe are not as usual as governments provide most of these benefits. 20. 21.New Public Management (NPM) is an approach to running public service organizations that is used in government and public service institutions and agencies, at both sub-national and national levels. Neoliberalism and the new public management ▪ Push for austerity ▪ The central point of NPM is that public bureaucracies had to become less rule-bound ad more inclined toward participating in a competitive environment in which government employees would be given a great deal more autonomy and flexibility. Elements of new public management ▪ Autonomy and managerial flexibility ▪ Performance measurement ▪ Citizens centered delivery of services ▪ Openness to competition Criticisms on NPM ▪ Accountability: if you give managers more flexibility how can we hold them accountable? ▪ How is performance measured? ▪ Difference between public and private sectors 4. Fordism: Fordist production is a form of social and industrial organization characterized by the mass production of highly standardized products and the use of specific equipment and machines to creates similar products, alongside the organization of workers into specified and rigid work systems. There are three key elements: 1. Standardization of products; (this makes it easier to produce it in mass) 2. Intensification of the labour process; and 3. Specialized equipment and assembly lines to increase productivity Rise of Fordist Production: * Mass production: costs will cut if you can produce on mass. Over time, other sectors and industries adopted the same production style rather than just car companies. * Economic and social impact: machines were built to promote efficiency and higher quality product as well as specific tasks that were strictly defined. * Increasing volume, standardization, and rigid tasks: trace this back to the early 19th century, 1913 etc. Initially associated with the model T car. Taylor and Scientific Management * Minimizing Lost Time: studied how to become more efficient and why companies loosed so much time producing a product. He examined factory floors for this reason. Two reason for lost time: 1) blame on workers- natural tendency for them to do little work as possible 2) sometimes the work itself (task) was arranged in such a way that made it awkward and not capable to do efficiency. * Adopting Scientific Principles to Save Time: the workers realized that it was better for them to work at a slow and steady past to receive an adequate pay. Workers did not know how much could be produced in an average shift because the standards were un scientific (goals unrealistic). * Better Organizing Work: workers sometimes could not keep up with the standards of work, clear division between employees and managers. * Financial Motivation: wanted the workers to be consumers and increase pay Rise and Fall of Fordism: Fordism: emerges 1915/1913 and becomes dominant by 1940’s until 1970’s. 1. Toyota became a challenge Fordism Perspectives on Fordism: shaped social society (more than just the car industry), emphasize ideas of industries, efficiency and consumers. Some only applied it to factories or industries producing a mass media of product. Criticism of Fordism: attacked the relationship between workers and employees, division of labour took away the creativity of the workers. Post Fordism: technology has changed industry work, the way goods are produced have changed, management is more decentralized now, workers are empowered (unions. POST FORDISM AND CRISIS OF CAPITALISM End of Fordism Characteristics of Post-Fordism: 1. Products are produced on demand 2. Post Fordism like to diversify their products 3. Constant process of trying to improve the work place and product 4. We have subcontracting, outsourcing, moving production of goods off shore to other places Managerial Revolution: this was the revolution that resulted of two intertwined historical processes: a corporate revolution that radically transformed the economic and social landscape of America and the professionalization of management, including business-school training and theory building, which provided the ideological pillar for the revolution. * Process that took place from the 1800’s-1900’s and began to see changes in the way management runs a company. 1. Professionalized management 2. Separation of ownership Corporate revolution: private entities that were once government and owned dominated the economy; they both created a division between management and ownership. Critical Commentary and Future Directions: Marxist provide commentary on management, corporations etc. They viewed revolution as highly exploitative and stated that management was serving the interests of the elites only. The majority of the wealth is concentranted ina minute group of people. 4. Free trade agreements McBride and Whiteside reading • Globalization caused for domestic politicians to restructure their state economy to make path for incoming market forces • WTO and NAFTA were embedded in neoliberal rules and shifted • Under Chretien there were a lot of changes in new public management. Business and Government STATE CAPACITY TO GOVERN AND INTERNATIONAL COOPERATION How does globalization affect the states? Does it weaken the ability of governments or capacity to govern? • We often measure governments by their ability to pass economic legislation, to respond to economic crisis and provide public goods. As governments become more intertwined, they lose the ability to control their boarders and manage the economy. Especially for countries whom are already smaller and have a weak economy. Example: Europe Unions, financial crisis. Countries such as Portugal who were weaker lost the control of their monetary system. Regions such as this complain based on the lack of control at immigration. England for example complains about the Polish population that is allowed there. This loss of control worries democracies because they earn their vote from popularity vote. Not having control of factors such as immigration leads to a fail in election. What can they do? • International cooperation and international institutions may alleviate some of the issues with globalization and state capacity that can be looked at as a positive factor for globalization. Globalization has caused policy and institutional convergence amongst States. When states open their economies, and integrate with other states, it’s more likely that they will adopt similar policies and institutional. There are different reasons for this such as the world puts pressure on states to adopt these similar policies, for example: if a country wants to cooperate with the US, the US will pressure that country to adopt to certain policies. Second reason is international institutions such as the world back, UN. These institutions have the power to command different countries to adopt certain policies. Third reason is the increased integration in the world encourages countries to adopt these similar policies. An example of a policy is a neoliberal policy by trying to downsize the size of the government, removing regulation, which is referred to the “Washington Consensus”. Are these policies beneficial? Can be debated. Pro businesses would say this development is beneficial by cutting transaction prices when cooperating with other countries. On the other hand, this destroys local cultures by modernizing them. A global system is an increasingly interconnected one where problems in one country or region can spread more rapidly. This causes diseases to travel faster and become deadlier example the Zika Virus. Fast communication can spread instability increasing crisis to arise. For example, the Zika virus during the world Olympics in Brazil. Communications spread the message rapidly causing scare and a turn down to individuals travelling. Globalization and Domestic Economies: • Globalization continues to feed the capitalists and owners. Example: wealthy individuals. • Right wing political parties benefit from globalization. This is because neoliberal policies tend to be more effective for the economies. Right wing political parties argue that they will shrink control of the government, create jobs and increase private businesses. • Owners have grown to this because they can take their capital and invest it in another country, a different economic environment. These different economic environments tend to have less tax, higher growth percentage etc. • Other researchers say that globalization doesn’t have an effect on domestic economies. They say that domestic political institutions often do a good job of absorbing the effects of globalization. Can globalization be Managed? Developing countries trying to improve economic countries increasingly relies on international trade, capital movement which means they must deal with integration. To what degree will they integrate? Security is also analyzed; how do countries manage foreigners? Security threats have come from governments to governments. These threats aren’t new but are now globalized which increases the severity. Environmental issues are also considered. Role of International Institutions: Only way to manage these threats are through institutions. We see this through the environmental issues, a group of countries are needed to help this problem. Working with institutions can affect the governments and change their behaviour. They are more likely to work with an institution because there is a set of rules which apply to all members, there is transparency (governments can feel comfortable knowing what their other members will do, enforcement mechanisms (ICC, charge war criminals) and reduce costs for governments because they don’t have to manage threats on their own. Two Approaches of Globalization: Can integration
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