Political Dimension Concepts - Assignment Example

Assignment, Political Science Section Define and explain the significance of the following terms. Regime of accumulation Regime of accumulation denotes how production and consumption is organized over a period of time. Further, regime of accumulation involves a reproduction that is considered to be autocentric in the sense that the circuit of capital is confined within national boundaries. As such, accumulation regime focuses on increasing productivity based on economies of scale and increasing income depending on productivity, for example. However, this leads to a virtuous circle and can create a crisis. Conversely, where mass production is influenced by a mass market, there is need to match growth in terms of output of other goods and services. Accumulation regime further emphasizes economic expansion and technological development that contributes to mass production. However, such production entails the use of unskilled labour which may later impact negatively on productivity. In accumulation regime, there are various institutions and policies that support mass consumption. Example in this sense includes the stabilization of economic policies that favor mass production and consumption (Jonsson, 1993). Flexible labor market Flexible labor market refers to a situation where firms operate under fewer regulations and are in a position to set wages or downsize their workforce at will. On the contrary, a labor market with low flexibility has more regulations to control the operations of firms. While opponents labor market flexibility reiterate that power in the hands of employers results in an insecure work force, proponents consider flexible labor market as critical in minimizing the unemployment rate and improving the GDP growth. In essence, a flexible labor market is in a position to adjust itself to a competitive equilibrium. In a flexible labor market, labor tends to be occupational and geographically mobile and the intervention by the government does not affect the market. Globally, flexible labor markets have increased due to international competition where firms minimize labor costs in order to remain competitive. In addition, technological advancement has also contributed to the increase in flexible labor markets. An example flexible labor market in this sense is the UK labor market (Vergeer & Kleinknecht, 2012). Post-Fordism Post Fordism is a term that refers to a form of economic organization that came into existence after Fordism. It mainly focuses in identifying transformative roles associated with new technologies and leading economic sectors viewed as important in the transition of mass industrial production to post industrial production. Further, Post-Fordism also denotes a focus on consolidating new economic institutions and forms of governance necessary to improve economic growth. The proponents of Post-Fordism assert that it has contributed to flexible production due to the existence of flexible systems and workforce. Post-Fordism’s significance is also evident in increased profits as a result of a focus on innovation (Jonsson, 1993). Further, Post-Fordism has also led to the emphasis on building core competencies and forming strategic alliances to improve productivity and profits. Post-Fordism is also significant in the global economy in the sense that political regimes have shifted from post war welfare states to embrace international competition and innovation, improved social governance and establishment of market-friendly economies. An example of Post-Fordism includes a focus on a flexible workforce that can adapt to changes in competitive and globalized business environment.Among the firms that have capitalized on Post-Fordist ideology includes Nike, for example (Jonsson, 1993). Late Development Late Development refers to the emergent of other economies, for instance, the Asian tigers or Celtic tiger. These economies have played a role in changing the global economy that was previously dominated by developed economies in the western world. Further, these economies have embraced industrialization and good governance as a way to fast-track their economic growth. They have also taken advantage of cheap labor and availability of raw material to attract foreign direct investment and the income derived from attracting foreign investors is used to improve public services and infrastructure development (Carrol & Jarvis, 2014). These countries no longer depend heavily on foreign aid and this has helped to minimize the strain on government expenditure. Further, these economies now have a greater control of the markets in the international realm and are leaders in the financial markets, for instance, Taiwan and South Korea. As the world economy is shifting from traditional industries to knowledge based industries, the role of the emerging economies is becoming increasingly necessary to maintain a balance between the developed and developing economies. An example of late development in this sense is the emergent of South Korea from a developing country in the mid- twentieth century to a developed country in the twenty first century (Carrol & Jarvis, 2014). What is the ‘developmental state’ and why is it important for political economy? Is the concept of the developmental state appropriate for analyzing the American case of post-war economic development? Developmental state refers to the microeconomic planning that emerged in the late twentieth century. In this model, a state is considered to be autonomous and can manage its economy. In essence, the term denotes a focus on economic development by states and has been used to describe the rapid development of countries in East Asia, for example. The term has also been used to describe countries outside the Asian continent such as, Botswana or South Africa, for instance (Naseemullah & Arnold, 2015). Why the concept is important for political economy Developmental state is important for political economy because it provides direction for economic development. Further, the concept plays a role in balancing economic and social development of a state. Developmental state is also important for political economy because it ensures state resources are used to tackle poverty and creating opportunities by expanding the economy. Promoting economic growth is possible through the use of various instruments and policies that include for instance regulatory procedures that target industries and trade, monetary policies, state control of corporations and redistribution of resources. Further, state can intervene to ensure that its economy is not compromised in a free market, for instance. Developmental state is also important for political economy because it allows countries to mobilize resources and channel them towards achieving a common good for the people. For example, resources of a state can be mobilized to help improve health care systems, education, housing and other social amenities (Naseemullah & Arnold, 2015). A developmental state is also significant in terms of ensuring that the public service operates efficiently. In addition, developmental state as a concept ensures that countries create an atmosphere that can attract foreign direct investment and supporting SMEs respectively. The state also has a role to play in terms of ensuring that the economy remains competitive and adapt to the changes in global development such as knowledge and technology advancement. The development of a state also depends on its ability to manage resources efficiently for the common good of its people. Consequently, it is necessary for the state to take a leading role in advancing a common national agenda. For instance, the state needs to be responsible for mobilizing its people to support various policies and programs meant to improve the society. On another note, developmental state plays a role in uniting the public sector with other entities that include, for instance, the civil society and private sector. Developmental state also is important in terms of ensuring that effective and efficient structures are established to deliver the desired results such as economic growth, for example. Further, developmental state also addresses issues such as job creation as a way of improving the living standards of citizens (Suh & Kwon, 2014). Is the concept of the developmental state appropriate for analyzing the American case of post-war economic development? The concept of the developmental state is appropriate for analyzing the America case of post-war economic development. Since the country was in shambles after the war, it was necessary to improve institutions that drive economic development. There was also the need to mobilize the society in general to support programs initiated by the government (Suh & Kwon, 2014). What are national financial systems and why are they important for political economy? How have political economists differentiated different types of national financial systems? National financial systems refer to the processes and procedures that countries use to manage their financial institutions (Barth, 1997). The importance of national financial systems for political economy National financial systems play a role in diversifying risks and providing liquidity. For example, a well-developed national financial system helps to acquire numerous assets thus diversifying risks and also attract investors to fund various developmental projects. Further, national financial systems also benefit the society in terms of facilitating the efficient distribution of scarce economic resources. This is possible through the provision of an efficient credit system that promotes borrowing and fast-track economic development. National financial systems also facilitate transactions by providing an efficient payment system. The financial systems in a country include, for instance, banks, central bank and securities markets. These institutions play an important role in facilitating economic transactions and monetary policy (Crockett, 2011). In addition, these institutions play a role in channeling savings into investment thus promoting economic growth. National financial institutions are also important in ensuring that there are financial shocks are minimized by establishing resilient financial systems. This is possible through the establishment of regulatory procedures locally and internationally to ensure there is financial stability. In essence, national financial system also plays an important role in minimizing the adverse effects of economic crisis, for instance. Establishing national financial systems is important in mobilizing capital that is channeled to sustain economic growth. Further, national financial systems also provide mechanisms for complying with international standards. This is important for regional integration and expansion of trade between states. National financial systems are also necessary to deal with shocks such as rise in interest rates and fluctuations in exchange rates (Merton, 2005). Further, national financial systems are important in ensuring that financial markets are not interrupted. The financial systems also play a role in ensuring integrity prevails and establishing internal controls to mitigate financial risks. From a macroeconomic perspective, the establishment of financial institutions such as the central bank plays a role in ensuring there are regulatory procedures geared at promoting financial stability. For instance, policies developed by central bank are meant to contain fluctuations and avoid economic uncertainty. These financial institutions also play a role in the implementation of tax policies and policies targeting other productive factors. Further, the financial regulations implemented by these institution plays a role in enhancing financial robustness (Merton, 2005). How have political economists differentiated different types of national financial systems? Financial systems range from banks, monetary policies and other means necessary to facilitate economic transactions. While a given country may have different financial institutions, there has to be a regulator. In this sense, central bank plays an important role domestically by ensuring that the local financial institutions are not affected by shocks in the international market. However, while countries have established their own financial institutions, globalizations has led to the need for regional and international integration of financial institutions. Globally, the Bretton Woods play an important role in supporting financial institutions (Schmidt, 1999). References Barth, J.R. (1997). Development and Evolution of National Financial Systems. biblioteca. Retrieved from http://www.biblioteca.clacso.edu.ar/ar/libros/lasa97/barthbrumbaugh.pdf Carrol, T., & Jarvis, D. (2014).Introduction: financialization and development in Asia under Late Capitalism.Asian Studies Review, 38(4), 533-543. Crockett, A. (2011). What financial system for the 21st century? Retrieved from http:// http://www.bis.org/events/agm2011/sp110626.pdf Jonsson, I. (1993). Regimes of accumulation, microeconomies and hegemonic politics. Capital & Class Summer, 17 (2), 47-97. Merton, R.C. (20005).Design of financial systems. people. Retrieved 3June 2015, from http:// www.people.hbs.edu/rmerton/designpaperfinal.pdf Naseemullah, A., & Arnold, C. (2015) .The politics of developmental state persistence: institutional origins, industrialization, and provincial challenge. Studies in Comparative International Development, 50(1), 121-142 Schmidt, R.H. (1999). Differences between Financial Systems in European Countries: Consequences for EMU2. Retrieved from http://www.researchgate.net/...financial_systems. ../02bfe512731ae297a000000. Suh, C., & Kwon, S. (2014). Whither the developmental state in South Korea? balancing welfare and neoliberalism. Asian Studies Review, 38(4), 676-692. Vergeer, R., &Kleinknecht, A. (2012). Do flexible labor markets indeed reduce unemployment? a robustness check.Review of Social Economy, 70(4), 451-467. . Read More