Sanction:
A measure taken by one or more nations to apply pressure on another nation to conform to international law or opinion. Such measures usually include restrictions on or withdrawal of trade rights, diplomatic ties, and membership of international organizations or forums.
Encarta® World English Dictionary (North American Edition) © & (P) 2001 Microsoft Corporation. All rights reserved.
Seattle:
In November and December 1999 protests disrupted a meeting of the World Trade Organization (WTO) in Seattle, Washington. The scale and intensity of the protests surprised many observers and revealed a broad range of concerns about the organization and its free-trade policies.
The WTO and the Politics of Global Trade Microsoft® Encarta® Encyclopedia 2001. © 1993-2000 Microsoft Corporation. All rights reserved.
Shock Therapy:
A policy of rapid economic reform. Its objectives include: (1) liberalization, or the abolition of government control over economic activities such as production, price setting, and distribution; (2) financial stabilization, or the imposition of deep cuts in government spending and firm limits on the growth of the national money supply; (3) privatization, or the transfer of most government-owned enterprises to the ownership of individuals and private companies; and (4) internationalization, or the opening of the economy to foreign trade and investment.
Russia Microsoft® Encarta® Encyclopedia 2001. © 1993-2000 Microsoft Corporation. All rights reserved.
Slowdown:
An intentional reduction in pace or production by workers in order to win demands from their employer.
Encarta® World English Dictionary (North American Edition) © & (P) 2001 Microsoft Corporation. All rights reserved.
Social-Democracy:
A political ideology incorporating a degree of socialism but including such values as private property and representative government.
Encarta® World English Dictionary (North American Edition) © & (P) 2001 Microsoft Corporation. All rights reserved.
Socialism:
An economic and social doctrine, political movement inspired by this doctrine, and system or order established when this doctrine is organized in a society. The socialist doctrine demands state ownership and control of the fundamental means of production and distribution of wealth, to be achieved by reconstruction of the existing capitalist or other political system of a country through peaceful, democratic, and parliamentary means. The doctrine specifically advocates nationalization of natural resources, basic industries, banking and credit facilities, and public utilities. It places special emphasis on the nationalization of monopolized branches of industry and trade, viewing monopolies as inimical to the public welfare. It also advocates state ownership of corporations in which the ownership function has passed from stockholders to managerial personnel. Smaller and less vital enterprises would be left under private ownership, and privately held cooperatives would be encouraged.
Socialism Microsoft® Encarta® Encyclopedia 2001. © 1993-2000 Microsoft Corporation. All rights reserved.
Stabilization:
The act or process of invoking economic policies intended to stabilize an economy, typically one in the midst of a downturn.
Stagflation:
Where economic stagnation meets inflation. Stagflation occurs in an economy with high inflation and low growth. This phenomenon rarely occurs, because inflation is usually the product of an overheated economy, not one that is stagnating. Stagflation is a worst case scenario where inflationary pressures are so strong that even an economic downturn is unable to quell the pressure toward rising prices.
R.C. Epping, A Beginner's Guide to the World Economy, 3rd ed., New York, 2001.
State-Owned Enterprises:
Industries or companies that are owned by the government. These often include the transportation and communication industries, but may include any industry in which the government has a vested interest. See "State-Owned Companies" essay.
Stop-Go Cycle:
Alternating deliberately between discouragement and encouragement of economic demand so as to control inflation.
Encarta® World English Dictionary (North American Edition) © & (P) 2001 Microsoft Corporation. All rights reserved.
Structural Adjustment:
An effort, usually in the form of revised economic policy, to reduce state control, introduce free market reform, and establish a foundation for economic growth.
Subsidies:
Government payments intended to support a desirable enterprise or policy, usually one that is not viable or competitive under existing economic conditions.
Encarta® World English Dictionary (North American Edition) © & (P) 2001 Microsoft Corporation. All rights reserved.
Supply-Side Economics:
This theory, which became popularly known as "Reaganomics," advocated a reduction in taxes and government spending in order to leave more money in the hands of citizens. According to supply-side theory, citizens would spend the money on products or services, which would give a boost to the economy, or they would invest the money in businesses, which would cause the economy to expand.
Reagan, Ronald W(ilson) Microsoft® Encarta® Encyclopedia 2001. © 1993-2000 Microsoft Corporation. All rights reserved.