Chapter 15 The Transitional Developed Countries Two categories PCDCs and NICs The Post communist Developed Countries states that emerged from the USSR Includes Belarus Estonia Kazakhstan Latvia Lithuania Russia Goal Prosperity Strategy Many shifted from command market economy during communist days but are now market economies and have some of the highest levels of economic freedom Performance Initial transition years saw a substantial decrease in GDP and hyperinflation However since 90s the quality of life has increased steadily Challenges They face all challenges of sustaining prosperity that developed countries do but transition has a few other challenges They have to streamline their regulatory systems Establish an appropriate level of welfare distribution They have to make sure new group politics don t undermine economic Institutionalize free market mechanisms capital markets business contracts policymaking Goal Stability Strategies While originally communist parties with governmental apparatuses rewards and political socialization Challenges economic and social inequality Social Disorder Decline in citizens obedience to laws and rules Nationality Conflicts Identity politics and ethno nationalism threaten stability Mostly because there are significant minority populations Entry into Europe and Global Society Many younger students consider themselves more European than their current nation More demands for liberalization after the fall of the iron curtain Goal Security The Soviet Union historically put a lot of emphasis on security as Japan became a market economy China was very combative and Islamist ideals came from the south Many PCDCs are now a part of NATO despite Russia s strong opposition The system is becoming increasingly multi polar which could lead to more instability Newly Industrializing Countries distinguished by its transition to a major exporter of manufactured goods and services and by its sustained high economic growth rate Have risen higher that the global south Asian NICs Malaysia S Korea Thailand Latin American NICs Argentina Brazil Chile Costa Rica Mexico Uruguay and Others Saudi Arabia Israel and Turkey Venezuela Goal Prosperity Approach Asian NICs Developmental State Approach Export oriented bit with an activist state that enables firms to be more profitable Has close firm government cooperation Government support of the agrarian sector Gov t encourages saving rather than consumerism and works to improve infrastructure Latin American NICs Chaebols large national firms Hyundai Samsung Less interventionalist than Asia Many originally had statist strategies and abandoned them for developmental in the past few years Governments are less involved in firms Performance Asian NICs Among the fastest growing economies in the world S Korea has the fastest growing with the highest PPP of the NICs Latin American NICs Not as fast as Asia but rising steadily Most of the issues are with corruption international competition and exploitation by multinationals Wealth inequality is rampant Goal Stability Asian NICs Concerned with maintaining a highly stable and orderly social system Conflicts are seen as serious impediments Or a while they were illiberal democracies for these reasons Latin American NICs Often alternate between periods of civilian government and authoritarian military regimes that come to power violently Caudillos leaders with military background Democratization Many are shifting into the direction of democracy even after years of autocratic rule Goal Security Asian NICs external threats Despite policies to promote stability many operate in a region with significant ASEAN a collective security agreement among most countries in the region including many that are adjacent to it Many NICs rely on the big three Russia Japan and China who spend obscene amounts on military Latin American NICs Borders have been stable but there are occasional arguments Most threats to security are internal or from outside actors such as the US Spain and UK The Future of the Transitional Developed Countries The Post Communist Developed Countries Attempting to make dramatic transformations after abandoning political institutions political culture and political economy from the Soviet era Simultaneous economic and gov t transformations Levels of prosperity and stability are low in countries outside of the EU The NICs More promising that PCDCs Economic growth and development The unstable growth leaves the success in the air however Next So The future is unstable Whew glad that s over with This book didn t even try with the last two titles This part isn t very important just some jumble about the questions this book raises