Study Guides (248,411)
Canada (121,516)
York University (10,209)
SOSC 1430 (48)

IDS 1430 Semester 2.docx

32 Pages
Unlock Document

Social Science
SOSC 1430
Eduardo Canel

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
More Less

Related notes for SOSC 1430

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.