IDS 1430 Semester 2.docx

GLOBALIZATION FROM ABOVE January 3 ,2012 – Globalization and Development [MISSING] January 10 , 2012 - Neoliberalism, TNCs & the New International Division of Labour Feature 2: centralized management of global production • Efficient coordination of geographical dispersed operations • Mangers of global factors Feature 3: growing importance of TNCs 1970 – 7,000 TNCs 1998 – 44,000 TNCs with 280, 00 affiliates • 200 TNCs engine of global system • Sales == 26% of global GNP • Top 100 economic powers (countries TNCs) 51 are TNCs, 49 are countries Feature 4: global economic activity not evenly distributed N-S divide North enjoys greater share of global economic activity • 20% of world’s population • 80% of global economic activity • 65% of global foreign investment G-8 Forum • Most powerful countries in the world [Germany, Italy, UK, USA, Canada, Russia, France) • 14% of world’s population • 60% of global GNP • 72% of Global military expenditure • 96%-99% of nuclear weapons 1975 – • Chicago boys take charge of economy Economic restructuring • Privated state enterprises (500+) • Opened natural resources to unregulated private exploitations • Guaranteed right of MNCs to repriate profits • Reregulated foreign investments and freer trade • Cut back social services (health and education) • Privatized social security (parents) Outcome • Unregulated economy • Reduced state roll Liberalism • European political & social philosophy (19C Europe) • Ideology of rising bourgeoisie Demanding… • Individual freedom • Market freedoms • Minimal role of state Economic Liberalism stresses freedom • To own property • To engage in market transactions • From government interference Free market capitalism th First half of 20 Century • Liberalism crisis - Politics & economic instability - Great Depression - Labour conflicts - Russia/Mexican revolution - Unregulated markets don’t work Government must regulate economic activity • Full employment Economic growth • Welfare of citizens Response to Depression ONE: Increase government spending • Invest in public projects • Generate jobs • Put money in people’s pockets • Revitalize economy TWO: invest in social welfare • Education, healthcare, pensions, social wage Welfare State • State has major responsibility for welfare provision via services & benefits to meet people’s basic needs for housing, education, healthcare and income THREE: regulate capital labour relations • Social pact • Ensure TU rights, set standards for working conditions wage policy FOUR: direct state ownership • Economic activity/services New Deal Approach • Blend of state, market and democracy • Secured peace, well-being, stability • Expanded notion of individual rights and freedoms Liberalism stressed . . . Civil and political rights • Protect individuals from government and state power • Procedural fairness in law • Protection from discrimination • Political freedome • Freedom to participate New Deal Politics • Added new rights Social rights and social citizenship • State responsibility to guarantee - Basic standard of living - Universal programs - Basic welfare th January 17 , 2012 - Structural Adjustment and Global Institutions How much government intervention is good for economic development? - States should be as limited as possible - Markets could do it better Outcome • High rates of economic growth • Prosperity and social peace End of 1960a • Crisis of welfare state Outcome • New thinking and neoliberation NEOLIBERALISM th • Return to classical liberal ideas (19 Century) • Liberal principles applied to transnational capitalism • Free market and free trade • Free flow of capital and goods • Less emphasis on social rights Washington Consensus  Economic policies by Washington based institutions (IMF, WB, Us Treasury Dept) Neoliberalism  Free market capitalism Markets • Social institutions • Brings buyers & sellers together to exchange commodities Neo-liberalism market • Best institution to allocate resources in society • Rewards individual effort Government regulation or hands-out - Demotivate people to work hard - Constrain entrepreneurial spirit Neoliberalism • Increase frequency and reach of market transactions Outcome: Commodification • Resources • Social relations Neoliberalism “… a theory that proposes that human well-being can best be advanced by liberating individual entrepreneurial freedoms and skills within an institutional framework characterized by strong private property rights, free markets and free-trade. The role of the state is to create and preserve. Neoliberal policies for developing countries SAPs • Seek reform structures to promote free market capitalism • Open economies to international trade • Greater freedom to TN capital to operate globally Privatization State ownership • Key institutional barrier for economic growth • Sell off all state owned assets De-regulation … eliminate • State regulation of economic activity • Regulation of capital labour relations • Environment, HRs regulation Trade liberalization • Remove natural trade barriers • Equal treatment for foreign goods THUS.. • Reduce role of state • Allow market to dictate resource allocation GLOBALIZATION FROM BELOW January 24 , 2012 - The Politics of Development - Searching for Alternatives I. Introduction II. LED Development (developmental state) III. Inward orientated industrialization (LA) IV. Outward orientated industrialization (Asia) V. Conclusions Globalization & Neoliberalism Global Capitalism Requires • Free flow of capital & goods • Freedom to invest • Freedom to relocate profits • Freedom to move goods across national borders Origins • Rise of nationalism • Economic crisis in DCs Great Depression 1929-32 • World production . . . down 38% • World trade . . . down 66% Impact one TW countries • Collapse of exports Outcome • Search for new development strategy Argument  Need strong state  To direct the economy • To compensate for relative weakness of local bourgesoie th 19 Century • Powerful bourgeoisie 20 Century • Weak bourgeoisie with fewer resources Developmental state • State involved directing the economy to foster development through industrialization ** complete opposite of neoliberalism** Goals • Reduce negatives Two models • Inward • Outward LA: Outward orientated strategy Import substitution Industrialization Industrial Development through protectionism Protect national industries through .. • Tax incentives, credits and loans • Tariffs against foreign imports Promotion of internal consumer market Create internal demand through… • Public spending • Wage policy • Subsidies • Social services Set up State Owned Industries (nationalization) • Nationalization of key industries and services • Model: not foreign capital friendly MIXED RESULTS Positive • Industrial infrastructure • Diversified economies • Some redistribution Shortcomings • Few incentives to innovate • Technological dependency • Growth of bureaucracy • Not enough redistribution • Isolation from world economy • Economic crisis, debt, inflation East Asia: Outward Orientated Strategy Export Orientated Industrialization (EOI) Industrial Development through export subsidies, tax incentives for … • Export companies • Foreign investors • Selective incentives for manufacturing imports Promote international competitiveness • Wage policy: low wages • No trade unions • No democracy THUS environment…. • Foreign capital Strategy • Economic planning my strong authoritarian state • Market driven, export orientated economy Role of State? Secure capital Investment Control of lending institutions • To provide cheap credit • Discriminating lending policies Incentives • For export companies • Get manufacturers to use as increasingly more domestic inputs Set up State owned enterprises Invest in training programs and schooling • Better trained labor force • Reduced cost of training by private industry Outcome: Asian Miracle Asians NICs (1965-1995) • Unprecedented growth (6.6% yr) • Increased per capita GDP Integration globa economy • Import dependant on Japan • Export dependant on US (markets) Conclusions • State led development  key for industrial development Post-Washington Consensus SMs • Organized collective efforts seeking to change ( or resist) in some major aspect of society • Conflicted relations with clearly identified opponents • Make collective claims • Share identity and goals • Informal networks st January 31 , 2012 - Struggles for the Right to Water [MISSING] February 7 , 2012 - Building Ethical Trade Relations: Fair Trade Globalization from below • Resistance emerging from diverse points • Starting to converge • Indentifying commonalities & shared interests • Globalization of elites • Globalization human solidarity Double dimension Reactive dimension • Resistance to negative impact Proactive dimension • Alternative global agenda Features • Shift from national to global problems • Transnational links  technology • Decentralized & pluralistic networks • Seeking to protect physical essential of life • Seeking to defend common good and our shared community • Social rights • Cultural rights • Human rights • Mobilized to defend and expand democracy • Political sovereignty • New conception of citizenship • Active citizenship • Participatory citizenship • Democracy without borders Fur Trade vs Fair Trade Trade • Neither good nor bad • Who benefits? • Who is accountable? Free Trade • Promoted by WTO • Benefit  rich and powerful • Accountability - title Fair trade • Promoted by NGOs and concerned citizens • Alternative to Free Trade • Benefit  direct producers in TW Free Trade: “ the absence of gov’t restrictions upon the cross border flow of goods and services WTO • Main advocate of free trade • One of 4 Bretton Woods Institutions • 134 member countries • Operates out of Geneva • 20 trade agreements • Regulates trade among member countries • Seeks to eliminate barrier to free movement of goods and services WTO governments must • Treat all imports equally regardless of how produced • Treat eachother equally • Can’t discriminate against new products Dispute settlement • Member countries challenge national laws on behalf of corporate clients • WTO sets trade tribunals (un-elected) Tribunals • Adjudicate disputes • Handout punishment Loosing country • changes law • Face sanctions • Pay compensation Outcome • Environmental protection = barriers to trade WTO struck down … • US Marine Mammal Protection Act • Japan pesticide • European ban on US beef imports with cancer causing hormones • Precautionary principles replaced by :scientific certainty principle” Labour & human rights protections = barriers to trade • Cant ban product based on how it was produced • Can’t consider “non-commerical values” when making purchasing decisions WTO = Global Government • Enforcement and judicial powers • Power to strike down domestic laws if violate WTO articles • Weakening of national sovereignty Fair trade • Ethical considerations • Ideas of right and wrong justice, equity and fairness • Adds moral dimension o consumption • ]equitable partnerships • Make trade work for small producers • Social control over market • Consumer responsibility Alienation • Disassociation production – consumption Ignorance of … • How products are produced • Hidden costs Free Trade  hides those relations  educates consumers FT principles Trade conditions • Cover cost of production • Social premiums to collectivity • Financial and technical support Working condition • Cooperative & democratic workplaces • Recognized trade unions • No child labour • Healthy and safe working conditions Other conditions • Environemental sustainability • Accountability • Long term relationships Profits= 25%-35% go to direct producers FT Origins • Solidarity mov’t (60s-80s) • Alternative retail • Nicaraguan coffee • Informal networks Mainstreaming Fair Trade • Move to conventional retail Growth & Expansion “gross sales (2000)  $100 million in US/Canada  $400 million worldwide  Only 0.01% of total trade ISSUES IN RURAL DEVELOPMENT: POPULATION & FOOD th February 14 , 2012 - Population and Development (Guest Lecturers) Population & Development • Global population doubled since 1950s - In mostly lower incomes countries • Is the world overpopulated? • Why are the majority of people poor? • What is the nature of the population debat