Professor Francisco

Adi Ili
MIDTERM EXAM STUDT GUIDE

Nov 3rd 2015

1. Describe dependency theory:

Dependency theory is the concept that resources and raw materials (such as oil, sugar cane,

Tabaco, bananas, and labor) flow and being produced by a periphery of poor and

underdeveloped states to a center of wealthy states, enriching the latter at the expense of the

former. The colonized countries supplied raw materials in exchanged the “masters” created

finished products and sent it back to the periphery, where they were not allowed to produce on

their own. The periphery economies couldn’t develop beyond raw materials, the center was

dependent on them. It had created this obscure reality when the periphery had to pay for the

manufacture goods produced but were exploited for the raw materials and labor – since they

were not educated. They could have make it themselves but were prohibited.

2. Describe modernization theory:

Modernization refers to a model of a progressive transition from a 'pre-modern' or 'traditional' to

a 'modern' society. The theory says that the best way to create democracy is starting with

capitalism. Economic opportunity is created, which consequently creates wealth and this leads to

the willing to control the government, especially when taxes are involved. It is supported by the

fact that even the U.S was established the same way, in provoking an American revolution (“no

taxation without representation”).

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This theory says that Capitalism is the best economic system in the world, since it create

democracy. The moment you have money and want to become richer, you care about politics and

thus people choose democratically a party that apply to their taxes.

3. What was the Monroe Doctrine?

The Monroe Doctrine was a U.S. foreign policy regarding domination of the American

continent in 1823. It stated that further efforts by European nations to colonize land or

interfere with states in North or South America would be viewed as acts of aggression,

requiring U.S. intervention.

(European governments, businesses, cannot do anything in the western atmosphere

without the U.S permission).

The Doctrine was issued in 1823 at a time when nearly all Latin American colonies of Spain

and Portugal had achieved or were at the point of gaining independence from

the Portuguese and Spanish Empires. The United States, working in agreement with Great

Britain, wanted to guarantee that no European power would move in.

1904 Roosevelt corollary: Military intervention authorized to block European

intervention – Basically stating all colonies belong to America now and no one else can

deny. ‫אחר כך נסמך על זה‬

4. What is the difference between political liberalization and economic

liberalization?

Political liberalization is the process of making progress in political atmosphere and

providing more rights, while creating a political freedom for the citizen of the state – can
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lead them toward democracy. Economic and industrial liberation refers to open markets:

Economic increase and capitalism decreasing government control, increasing

privilegedaction.

5. What is import – substitution, what was the goal, and why did it fail?

It was the intent for a solution to end dependency of developing countries- attempt to build

their own industries so they could create their finish goods, and no longer have to import. By

doing so, local communities can put their (hard-earned) money to work within their

boundaries. This strategy to promote economic independence and development in

developing countries (Bruton 1998).

This initial effort failed due in fact these countries didn’t have the “know how” or enough

resource place to do it, moreover the result was poor quality goods and it was a failure due to

the relative inefficiency of 3rd world production facilities. 

6. What are the IMF’s structural adjustment programs, and what are the results?

The International Monetary Fund – are loans provided to help develop countries’ growth. In

reality, the loans were given to foreign competition, countries were forced to cut interior

economic programs that turned corrupted by the IMF (it was only giving to create outside

competition) opportunities to open the market to only foreign companies which now could

take advantage and exploit by changing its policy whenever it was comfortable. It only

allowed market penetration by external corporations which leads to cut important health

programs. It was established in order to help shape society better but in really it only

increased the poverty circle.

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7. What is marianismo, and what is its theoretical contradiction?

Pioneered in Mexico as an attempt to promote women’s right opportunity, education,

freedom, but, because of the heritage of virgin Marry the movement also expected women to

be traditional in motherhood, wifely, and household rolls while being modern- progressive

on one level and on the other primitive.

8. Who are the caudillos, and what problems have they caused?

Caudillos were political opportunists who claimed to be fighting for indigenous, and rural

people while Mexico is the most famous for them, but these groups exists all over Latin

America. Started as militias to fight for their rights, but actually didn’t do any substantial

effort to provide opportunities for the people. Only gained wars and made the poor become

even poorer.

9. What was La reforma, and what was its long-term impact on Indian-rights?

La reforma was the attempt by the Mexican Government to take land away from the church

and re-distribute the capital to the rural or indigenous population. however, it was operated

was by putting the land on sale – complete failure, the church bought all back. The long term

impact is that the indigenous are still very poor, since they never had gotten the opportunity.

10. What is indigenismo?

Indian rights movement – to gain better economic opportunities, social rights for indigenous

and rebuilt what was lost during the colonial time. A success story (chiapas in Mexico-

Mayans who took control of the state, failed to do it but managed to have a region that is

controlled by them).
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11. What is NAFTA, and what was it designed to do? What was the result?

North American Free Trade agreement, was established to open trade between Canada, US,

and Mexico, to economize our diplomatic relationship. The result was that exploitation of

Mexican workers. Mexico is no longer self-sufficient after NAFTA, can’t produce Maize,

US penetrated the Mexican Market.

12. What was the platt amendment?

The Platt amendment – the protocol issued by the US, that says that the US recognizes

Cuba’s independence, yet, the US has the right to interfere with their business, economics,

society, and politics any time they wish to.

13. Why did Fidel Castro become Marxist and soviet ally?

After the Cuban revolution, Castro intended to rebuild the economic relationship with the

US but wanted Cuba to be Socialist and have the benefit. The US refused and rejected him,

which forced him into becoming a Soviet Union ally. (The enemy of my enemy is my friend)

14. What is the difference between socialism and communism?

Both are economic systems design theoretically to create wealth and re-distribution of

resources. However, in communism, there is no property rights, no money, no banking

systems, no one have power. In Socialism there is private ownership, and it aims for a much

more equitable –food wise, education wise, free wealth care (money is used as a medium of

exchange).

15. What was the El Salvador-Honduras “soccer war” really over?

Soccer war lasted very short, between Honduras and El Salvador, over a soccer match. But,

in reality, it was because El Salvador’s citizens were running and feeling into Honduras as

refugees, and allegedly taking over their jobs.