Inside This Unit: The Full Breakdown
This unit analyzes how globalization, economic liberalization, privatization, and development strategies drive political change and affect sovereignty, inequality, and governance.
Why it matters
Economic change is a major engine of political change and a frequent argument-essay theme, especially contrasting China’s and Russia’s reform paths.
Key concepts
- Globalization increases interconnection and pressures state sovereignty and policy.
- Economic liberalization and privatization shift control from state to markets (China post-1978; Russia’s 1990s privatization).
- Rentier states funded by resource revenue (Iran, Nigeria oil) face the resource curse.
- Supranational organizations (the EU) involve ceding sovereignty — central to Brexit.
Liberalization and Privatization
Economic liberalization reduces state control in favor of markets; China liberalized economically after 1978 while keeping one-party rule. Privatization transfers state assets to private owners; Russia’s rapid 1990s privatization concentrated wealth among oligarchs who gained political influence.
Resource Dependence and Development
Rentier states fund themselves through resource exports rather than taxation (Iran, Nigeria). Heavy oil dependence can produce the resource curse — corruption, volatility, and weak development. Structural-adjustment conditions on loans push austerity and liberalization, often with social costs.
Globalization and Sovereignty
Globalization links economies through trade and foreign direct investment (key to China’s growth) but pressures sovereignty. Supranational bodies like the EU require ceding some authority; the UK’s Brexit reasserted national control. Rapid growth can also widen inequality.
AP exam tip
For argument essays on development, marshal evidence from at least two countries (e.g., China vs. Russia) and explain the political consequences of reform, not just the economics.
Connections to other units
- Unit 1: Globalization tests the sovereignty defined earlier.
- Unit 3: Economic change reshapes political culture and participation.
- Unit 6: Development strategy is itself a domain of public policy.
