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Chapter 11

NS Chapter 11.doc

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Department
Sociology
Course Code
SOC101Y1
Professor
Margaret Gassanov;

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Chapter 11: Inequality Among Nations: Perspectives on Development Introduction Women in Philippines work in horrifying conditions Globalization: processes leading towards greater world integration economically, politically, socially, culturally, in government policies, communications and consciousness. Globalization of production brought working conditions like this to many areas in Southern hemisphere Export-processing zones (EPZs): zones created for transnational corporations to operate under conditions that free them from domestic laws, such as tariffs, corporate taxes, safety and environmental protections, minimum-wage laws, etc. Transnational corporations: corporations that have subsidiaries in more than one country Exploit cheap Southern labor recruited from villages Young women usually suffer from headaches, deteriorating eyesight, and often reproductive problems replaced by younger recruits International Monetary Fund (IMF): UN agency that attempts to minimize currency fluctuations among countries by providing credit to countries with balance-of-payments and international-debt problems World Bank: provides commercial and low-interest loans to less developed countries on the condition that they follow neo-liberal prescriptions Recruits are created by group of farm families forced off the land by policies known as the Washington consensus and promoted by the US, IMF and World Bank Alan Greenspan- chair of U.S. Federal Reserve: Western form of capitalism is now the consensus model of how each country should run its economy Colonialism (imperialism): formal colonialism: country A takes over country B y force of arms and rules it without the consent of the people of country B; informal colonialism: country A decides that all other countries play by its rules, which it enforces by diplomatic means, offering economic benefits or making economic threats, and in the last resort threatening or carrying out regime change by military might The Bush doctrine moves the US towards formal colonialism Washington consensus mandates every country to remove domestic control over their own economies by adopting neoliberal policies (dismantle control over foreign ownership, investing and exchange to encourage exports) Under globalism, states are oriented more to the rights of transnational corporations than to the demands of the votes, and are locked into neoliberal principles by structural adjustment programs (SAPs): programs initiated by the IMP and the World Bank involving stabilization and structural change (government deficits, inflation; encourage foreign exchange earning through exports, and saving through government spending cuts on social services and food subsidies) Why are there rich and poor countries? 2 broad approaches: Western-centric and anti-imperialist Western-centric o Dominant in Canada and other advanced capitalist countries o most countries in the world are poor because Western capitalist institutions and values have not penetrated them deeply enough o Poor countries will be better if they become like us- by adopting western values like capitalism, political democracy, strong work ethnic, adequate schooling, etc. o Poor countries fail because of ignorance, laziness, and corrupt elites Anti-imperialist o most countries are poor because Western capitalism and imperialism have penetrated them too deeply o Rich countries are rich because they have exploited poor countries o Poor countries cannot follow neoliberal capitalist path trodden earlier by rich countries because many obstacles now block that path o 97% of largest transnational are controlled in the North o Power differentials and the persistent advantages of being ahead explain the vast economic disparities among countries Rich countries and dominant corporations have an interest to keep poor countries underdeveloped (a precapitalist society), so they will remain sources of chap labor and resources Ally with large landholders and military leaders to maintain exploitation and underdevelopment Adherents of anti-imperialist approaches blame underdevelopment on external forces and internal comprador elites: state and economic elites whose rule in a country depends on alliances with external forces, such as transnationals, and who would be unable to remain in power on the basis of local popular support In their view: poor countries can develop only by weakening ties to rich countries, abandoning capitalism and developing their own economic, political, and cultural resources Unequal development and unequal benefits Gross national product (GNP): value of all goods and services produced in a country in a year, according to official statistics of market income (measures growth and living standards) GNP counts all monetary activity whether positive or destructive E.g. Turkeys earthquake in 1999 GNP growth despite 17000 died E.g. divorce contributes to growth of GNP because couple sells 1 home and buys 2 Economic growth coexists with poverty, exploitation hides economic injustices National averages hide poverty by lumping together the incomes of rich and poor (e.g. Bill Gates annual income is $4.224 billion; 711 cashier earns $12000 their average income is 2 112 006 000/year, but 711 cashier does not raise out of poverty) Human Development Reports weigh the life sustaining needs of the poorest billions against the economic freedoms of the richest few International agreements (NAFTA) protect privileges of transnational corporations, which restrict elected governments from redistributing wealth to the poorest billions Human Development: A Better Measure UN now measure well-being with the concept of human development rather than GNP Human development- raising opportunities to gain income and employment, education, health care, democracy. Disparities between rich and poor countries are enormous Life expectancy- 65 years in Third World Countries; 78 years in capitalist countries Threat to deep democracy of actual rule by ordinary people rather than by transnational corporations, as well as determination of countrys policies by the US rather than by domestic voters Class and Unequal Benefits Class differences E.g. Brazil- richest 1% control 50% of nations income; poorest half live on 10% of the countrys income 1993-1996, more than 3000 11-17 year olds died violently in Rio de Janeiro, believed to have been murdered by death squads hired by police, shopkeepers, or gangs Rural poverty is also severe- land concentrations + small landholder who cannot survive on their own land Even in the US, number of homeless, unemployed and poorly paid people is large and growing (750000 on any given night) Class inequalities have not disappeared, they exist within and among countries Women and Development Women in Third World countries are the poorest of the poor Land ownership is invested in men, but women do much of the farm work They fetch water and firewood and mill sugar for more than 8 hours/day They also bear and raise children and run households Female-to-male ratio is 1.05 in Europe and North America; ~0.94 in Asia and North Africa b/c women tend to be fed less and are less likely to receive costly medical care Health risks of pregnancy are greatest for poor women (600 times higher than women in developed nations) Inequalities are common in educational opportunities (e.g. Islamic and Black African cultures- girls get less schooling than boys) In Southern Asia 1 in 3 men are illiterate; compared to almost 3 in 5 women Greatest improvements in literacy rate for women occurred in sub-Saharan Africa (41% in 1990 54% in 2000; Arab 37% 50%) Every country women work longer hours than men and at least of womens total work is unpaid How the west created rich and poor countries Development: a societys achievement of high living standards and high productivity levels Most developed countries are the ones that are more developed now Economic development is usually portrayed as involving anonymous processes and inevitable movements Globalization- unstoppable, nonhuman processes Globalization hides major actors of past 2 centuries: corporations pursuing profits and the most powerful states Supranational (anything extending beyond national borders) institutions that support corporate rights emerged as 3 set of actors shaping world development Includes: IMF, World Bank, G-7 (organization that seeks to coordinate economic policies among the worlds seven richest countries) countries, the European Union (EU) (economic and political union of most Western Europe countries) and signatories to the North American Free Trade Agreement (NAFTA) (agreement along neoliberal principles among the US, Mexico and Canada for greater economic integration) States were less mobile, but the most powerful states extended influence over weaker states Dominate states exercised influence over supranational agencies and promoting the interests of their transnationals Coerced weaker states by diplomacy, military might and applying trade and investment sanctions In early phases of industrialization (process of technological development by which machines replace human and animal power), modern industry and infrastructure (underlying foundation for a modern, efficient economy- transportation, communication, education,
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