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SOCI 254 (101)
Lecture 4

SOCI 254 Lecture 4: 2-1 and 9-2017 Transitions to Globalization

10 Pages

Sociology (Arts)
Course Code
SOCI 254
Amm Quamruzzaman

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Transition to Globalization How it Occurred Old to New -Started with nationally managed development project -Process of labor casualization and labor specialization in the world economy has become a new criterion of development -New international division of labor has emerged -Labor sectors are more divided and specialized geographically -Went from public to private sector -TNCs are bringing two export platforms for -NICs (newly industrialized): world factory -NACs (newly agriculturalzed countries??): world farm, second Green revolution What is Globalization -Globalization is a process of structuring the economy, politics, societies, institutions, and cultures -Economic globalization: interdependence national economies linked to world trade for production, distribution, and consumption -The economy’s core is global is global but the labor force is not (paradox) -Workers are concentrated in some areas while companies are centered -MNCs and TNCs provide work for 200 million workers out of 3 billion workers -These 200 million, employed in 53,000 MNCs make up 40% of global GDP and 2/3 of global trade -MNC vs TNC -MNCs are centrally managed by a mother organization in a particular country -TNCs are not centrally managed From ISI to EOI -Import Substitution Industrialization -Linked to economic nationalism -Internal industrial development -Failed to create a large market internationally -Domestic markets were too small, limiting growth potential -Governments ran out of money for subsidies because they were inefficient -Industrialization caused more pollution -So people shifted methods to export oriented industrialization -EOI was facilitated by TNC and MNC networks Third World NICs Went Differently -Latin American NICs began in the 1930s (Mexico and Brazil) and matured in the 1950s (Argentina and Chile) -Financed ISI as they had resource bases and domestic markets -Asian NICs began in the 1950s (Taiwan and South Korea) and matured by the 1970s (Singapore, Hong Kong, Malaysia, China) -Financed by exporting labor-intensive products because they lacked resource bases and domestic markets -Latin NICs adopted export-oriented model of Asian NICs in the 1970s to get foreign currency for technologies -Led to a means of relocating manufacturing to the third world -Welcomed by corporate concessions and a ready supply of cheap, non-union labor -First world consumption of Third World products intensified with easy credit and mushrooming of shopping malls and fast food outlets in the 1970scultural globalization From EOI to the World Factory -NICs strategy of EOI sparked the world factory phenomenon -Sought larger markets for their products -Unlike national products, products are made globally for global consumption -Proliferation of foreign cars is one example -World consumer class can afford goods from other nations -Global commodity chain is a network of labor and production processes whose end result is a finished commodity -Products emerge from a single site with a global assembly line of multiple sites organizing disparate labor forces with varying skill, cost, and function in different locations -Each part is produced in a different place -Jeans are a good example -Cotton from Kazakhstan manufactured in to yarn in Turkey, sent to Taiwan for coloring and then to Poland for weaving and then France for buttons and then Philippines for sewing for packaging in Greece for sales in Canada or the US NICs and Global Production -In Asia, it came from the relocation of the Japanese model -Hierarchical subcontracting arrangements to sites across the region -In Latin America, the Mexican Border Industrialization Program (BIP) paralleled this decentralization -BIP (1965) allowed foreign companies to establish Maquiladoras -Concessions to firms employing Mexican labor at a fraction of US wages, with minimal taxes and import duties to Mexico -By 1973 168 electronics plants were established belonging to US firms Behind the World Factory Strategy -First world avoided stringent environmental regulations -Enforcement is lax and laws were lacking -Toxic fumes caused cancer and chronic illness -Chemical discharges led to cancer, birth defects, and brain damage in shantytowns -Dumping of pollutants affects water and fisheries -Environment and workers vs industrialization paradox -Offshore production led to an avoidance of labor unrest -Where union protections were weaker, business was cheaper -Non-union, gender discrimination, workplace dangers Role of ICTs (Information and Communication Tech) -Digital revolution led to a third global industrial revolution -Semiconductors are key to new information technology -Coordination of production tasks across geographical areas -Production blueprints can now accommodate changing fashion -Allow rapid transactions through online banking and online shopping -Things don’t exist physically, things are concepts that are even bought before being made -Microelectronics is a leading industry -We use our devices without thinking about how they were produced -We assume it’s all good -Assembly lines give workers rote tasks and dehumanized them -No need for thinking -People produce things for others but lack money and time to use their products or profit from profits Export Processing Zone (EPZ) -Free trade zones at specialized manufacturing export estates with minimal customs controls, usually exempt from labor regulations and domestic taxes -Built to receive imported raw materials or components and to export output by sea or air directly -Contradict economic nationalism of the national development project -First in Ireland in 1958 -By 2006, 3500 EPZs in 130 nations, many in China Problems With EPZs -Working conditions are analogous to early European industrialization -Free trade zones=more freedom for business, less freedom for people -Become enclaves -Walled in and isolated -Workers bused in and out or live there with short-term contracts -Most civil rights are denied -Feminization exists -70% of the labor force are young, low paid women -Women seen as best suited due to “patience” and “dexterity” -Labor intensive export platform industries prefer young unmarried and educated women, but when the assembly line is upgrade defeminization occurs New International Division of Labor -Bifurcation of the global labor force with skilled labor concentrating in first world and unskilled labor in the third world -Global labor force is the idea that labor is not confined in one area but rather around the world -No periphery anymore thanks to labor mobility -Everywhere, not just in manufacturing -ICTs and transportation technologies play a key role -Led to first world deindustrialization -Inherently unequal in foundation, outcome, and processes Agricultural Globalization W
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