Political and Economic Changes and Development Cheat Sheet

The core ideas of Political and Economic Changes and Development distilled into a single, scannable reference — perfect for review or quick lookup.

PiqCue — piqcue.com/political-economic-development/cheatsheet

Quick Reference

Modernization Theory

Theory that economic development drives political democratization as rising incomes create a middle class demanding political participation.

Resource Curse

The paradox that countries rich in natural resources often have slower economic growth, more corruption, and less democracy than resource-poor countries.

Shock Therapy

Rapid, simultaneous economic reforms including privatization, price liberalization, and trade opening, as opposed to gradual reform.

State Capitalism

An economic system where the state plays a leading role in directing the economy while using market mechanisms.

Import Substitution Industrialization (ISI)

Economic strategy replacing foreign imports with domestic production through tariffs and subsidies to develop local industry.

Globalization

The increasing interconnection of economies, cultures, and political systems across national borders through trade, investment, and communication.

Key Terms at a Glance

Modernization Theory:Economic development drives democratization through middle-class growth and institutional demand.

Resource Curse:Natural resource wealth paradoxically correlating with poor governance and slower development.

Shock Therapy:Rapid simultaneous economic reforms: privatization, price liberalization, trade opening.

State Capitalism:State directs economy while using market mechanisms.

Import Substitution Industrialization:Replacing imports with domestic production through tariffs and subsidies.

Globalization:Increasing economic, cultural, and political interconnection across borders.

Special Economic Zone:Designated area with market-friendly policies to attract investment and experimentation.

Privatization:Transfer of state-owned enterprises to private ownership.

Democratic Consolidation:Process by which democracy becomes accepted as the only legitimate political system.

Structural Adjustment:Economic reforms required by international lenders: austerity, privatization, trade liberalization.

Rentier State:State deriving most revenue from external rents (oil, gas) rather than taxation.

Brexit:UK withdrawal from the European Union following the 2016 referendum.

NAFTA/USMCA:North American trade agreements linking US, Mexico, and Canada economies.

Welfare State:Government provision of social safety nets: healthcare, pensions, unemployment.

Economic Sanctions:Restrictions on trade, investment, and finance imposed to pressure policy changes.

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