PSC 124 Lecture Notes - Lecture 24: Neocolonialism
4 Nov 2015
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No state is purely capitalistic rather mixed economy: both private and public ownership, government regulation to prevent abuses and to redistribute wealth, college loans, welfare, social security, etc, taxation policy (such as progressive tax, progressive tax: redistributes wealth. Global south lags behind: current level of economic growth doesn"t indicate how much wealth has been accumulated in the past, for example, us vs. mexico, us has slower growth, but large base of capital, mexico has more rapid growth but much lower level of surplus capital, poorer countries don"t have large base of capital (money, standing wealth) so they lag behind. Concentration of wealth is self reinforcing: possession of wealth makes efficient investment possible, and this generates more wealth, when wealth is concentrated in some states, this gives those states power and the ability to dominate politically (i. e. establish policies and regimes that favor themselves over others, ergo global north retains its superior economic power.
