Wednesday, March 7, 2012
Jobs & Globalization, Nation State1 Wednesday, March 7, 2012 INTRODUCTION The Creation of a Global Village The Triumphs and Tragedies of Globalization ∙ Some anti-globalization activists suggest the globalization is a form of imperialism, the economic domination of one country by another. (Pg. 250) ∙ More over, it contributes to the homogenization of the world, the cultural domination of less powerful, by more powerful countries. (Pg. 250) GLOBALIZATION Globalization In Everyday Life ∙ When we buy a commodity, we often tap into a global commodity chain, a worldwide “network of labour and production process, whose end result is a finished commodity.” (Pg. 251) The Sources of Globalization ∙ Although most social scientists disagree on the exact causes of globalization, most stress the importance of technology, politics, and economics. (Pg. 252) Technology ∙ Technological progress has made it possible to move things and information over long distances quickly and inexpensively. (Pg. 252) Politics ∙ Politics is important in determining the level of globalization. (Pg. 252) Economics ∙ Capitalist competition has been a major spur to international integration. (Pg. 252) ∙ Transnational corporations are large businesses that rely increasingly on a foreign labour and foreign production; skills and advances in design, technology and management; world markets; and massive advertising campaigns. They are increasingly autonomous from national governments. (Pg. 252) ∙ They are different from traditional corporations in five ways: 1. Traditional corporations rely on domestic labour and domestic production. Transnational corporations depend increasingly on foreign labour and foreign production. 2. Traditional corporations extract natural resources or manufacture industrial goods. Transnational corporations increasingly emphasize skills and advances in design, technology, and management. 3. Traditional corporations sell to domestic markets. Transnational corporations depend increasingly on world markets. 4. Traditional corporations rely on established marketing and sales outlets. Transnational corporations depend increasingly on massive advertising campaigns. 5. Traditional corporations work with or under national governments. Transnational corporations are increasingly autonomous from national governments. ∙ As the case of Philip Morris illustrates, economics and politics work hand in hand to globalize the world. (Pg. 253) A World Like the Unites States? ∙ One common shorthand expression for the homogenizing effects of globalization is McDonaldization. (Pg. 254)
Week 8
Globalization, Inequality and Development Chapter 9
o McDonaldization is a form of rationalization. It refers to the spread of the principles of fast food restaurants, such as efficiency, predictability, and calculability, to all spheres of life. (Pg. 254) ∙ The idea of McDonaldization extends Weber’s concept of rationalization, the application of the most efficient means to achieve given ends. (Pg. 254) ∙ Glocalization is the simultaneous homogenization of some aspects of life and the strengthening of some local differences under the impact of globalization. (Pg. 255) ∙ Those who see globalization merely as homogenization also ignore regionalization of the world, the division of the world into different and often competing economic, political, and cultural areas. (Pg. 255) Globalization and Its Discontents: Anti-globalization and Anti-Americanism The History of Globalization ∙ Roland Robertson, note that globalization is as old as civilization itself and is in fact the cause of modernization rather than the other way around. (Pg. 257) ∙ Colonialism involves the control of developing societies by more developed, powerful societies. (Pg. 257) DEVELOPMENT AND UNDER DEVELOPMENT Levels and Trends in Global Inequality Theories of Development and Underdevelopment Modernization Theory: A Functionalist Approach ∙ Two main sociological theories claim to explain global inequality. (Pg. 261) ∙ The first, modernization theory, is a variant of functionalism. o Modernization theory holds that economic underdevelopment results from poor countries lacking Western attributes. These attributes include Western capital; lack rationale, Western-style business techniques; they lack stable, Western-style governments; finally they lack a Western mentality. Dependency theory: A Conflict Approach ∙ Argue that a theory of global inequality should not focus on internal characteristics of poor countries themselves. Instead, it ought focus on patterns of domination and submission – relationship between rich and poor countries. (Pg. 262) ∙ Dependency theory views economic underdevelopment as the result of exploitive relations between rich and poor countries. (Pg. 262) ∙ Dependency theorists say that exploitation by direct political control was soon replaced by new means of achieving the same end: o Substantial foreign investment. (Pg. 262) o Support for authoritarian governments. (Pg. 262) o Mounting debt. (Pg. 262) Effects of Foreign Investment Core, Periphery, and Semiperiphery ∙ Immanuel Wallerstein argues that capitalist development has resulted in the creation of an integrated “world system” comprising three tiers. (Pg. 264) 1. First, are the core capitalist countries, rich countries, such as the United States, Japan, and Germany that are the major sources of capital and technology in the world. (Pg. 264)
Week 8
Globalization, Inequality and Development Chapter 9
Jobs & Globalization, Nation State3 Wednesday, March 7, 2012 2. Second are the peripheral capitalist countries, former colonies that are poor and are major sources of raw materials and cheap labour such as the former colonies, such as Guatemala and Angola. (Pg. 264) 3. Thirds are the semiperipheral capitalist countries, such as South Korea, Taiwan, and Israel; consist of former colonies that are making considerable headway in their attempts to industrialize. (Pg. 264) ∙ The semiperipheral countries differ from the peripheral countries in four main ways: Type of Colonialism ∙ The semiperipheral colonies were left at an advantage after the colonizers left, as oppose to the peripheral countries. (Pg. 264) Geopolitical Position ∙ Other countries with less strategic importance to the United States received less help in their drive to industrialize. (Pg. 264) State Policy ∙ A third factor that accounts for the relative success of some countries in their effort to industrialize and become prosperous concerns state policies. (Pg. 265) Social Structures ∙ Postcolonial countries that enjoy a solid industrial infrastructure, strategic geopolitical importance, strong states with strong development policies, and socially cohesive populations are in the best position to join ranks of the rich countries in the coming decades. (Pg. 266) Canada as a Semiperipheral Country ∙ The type of colonialism that Canada experienced is sometimes called “white settler colonialism.” Europeans were determined to improve or reproduce the standard of living they enjoyed in the old country. (Pg. 266) ∙ Canada’s geopolitical position had always been highly favorable to economic development. (Pg. 266) ∙ Canada’s state policy has sometimes acted to protect and stimulate the growth of Canadian industry. ∙ Canada’s social structure has arguably had fewer positive effects on economic development. (Pg. 266) NEOLIBERAL VERSUS DEMOCRATIC GLOBALIZATION Globalization and Neoliberalism ∙ Neoliberal globalization is a policy that promotes private control of industry; minimal government interference in the running of the economy; the removal of taxes, tariffs, and restrictive regulations that discourage the international buying and selling of goods and services; and the encouragement of foreign investment. (Pg. 267) Foreign Aid, Debt Cancellation, and Tariff Reduction ∙ In order to help the poor countries foreign aid as form of improvement has been proposed. (Pg. 268) ∙ Many analysts argue that the world’s richest countries and banks should simply write off the debt owed to them by the developing countries in recognition of historical injustices. (Pg. 269)
Week 8
Globalization, Inequality and Development Chapter 9
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A third reform proposed recently is the elimination or at least lowering of tariffs by the rich countries. Democratic Globalization ∙ The final reform considered is the spreading of democracy throughout the developing world. (Pg. 268) ∙ Research shows that democracy lowers inequality and promotes economic growth because: o They make it more difficult for elites to misuse their power and enhance their wealth and income at the expense of the less well to do. (Pg. 269) o They increase political stability, thereby providing a better investment climate. (Pg. 269) o Finally because they encourage broad political participation, democracies tend to enact policies that are more responsive to people’s needs and benefit a wide range of people from social classes. (Pg. 269)
Week 8
Globalization, Inequality and Development Chapter 9
Week 8
Globalization, Inequality and Development Chapter 9
o McDonaldization is a form of rationalization. It refers to the spread of the principles of fast food restaurants, such as efficiency, predictability, and calculability, to all spheres of life. (Pg. 254) ∙ The idea of McDonaldization extends Weber’s concept of rationalization, the application of the most efficient means to achieve given ends. (Pg. 254) ∙ Glocalization is the simultaneous homogenization of some aspects of life and the strengthening of some local differences under the impact of globalization. (Pg. 255) ∙ Those who see globalization merely as homogenization also ignore regionalization of the world, the division of the world into different and often competing economic, political, and cultural areas. (Pg. 255) Globalization and Its Discontents: Anti-globalization and Anti-Americanism The History of Globalization ∙ Roland Robertson, note that globalization is as old as civilization itself and is in fact the cause of modernization rather than the other way around. (Pg. 257) ∙ Colonialism involves the control of developing societies by more developed, powerful societies. (Pg. 257) DEVELOPMENT AND UNDER DEVELOPMENT Levels and Trends in Global Inequality Theories of Development and Underdevelopment Modernization Theory: A Functionalist Approach ∙ Two main sociological theories claim to explain global inequality. (Pg. 261) ∙ The first, modernization theory, is a variant of functionalism. o Modernization theory holds that economic underdevelopment results from poor countries lacking Western attributes. These attributes include Western capital; lack rationale, Western-style business techniques; they lack stable, Western-style governments; finally they lack a Western mentality. Dependency theory: A Conflict Approach ∙ Argue that a theory of global inequality should not focus on internal characteristics of poor countries themselves. Instead, it ought focus on patterns of domination and submission – relationship between rich and poor countries. (Pg. 262) ∙ Dependency theory views economic underdevelopment as the result of exploitive relations between rich and poor countries. (Pg. 262) ∙ Dependency theorists say that exploitation by direct political control was soon replaced by new means of achieving the same end: o Substantial foreign investment. (Pg. 262) o Support for authoritarian governments. (Pg. 262) o Mounting debt. (Pg. 262) Effects of Foreign Investment Core, Periphery, and Semiperiphery ∙ Immanuel Wallerstein argues that capitalist development has resulted in the creation of an integrated “world system” comprising three tiers. (Pg. 264) 1. First, are the core capitalist countries, rich countries, such as the United States, Japan, and Germany that are the major sources of capital and technology in the world. (Pg. 264)
Week 8
Globalization, Inequality and Development Chapter 9
Jobs & Globalization, Nation State3 Wednesday, March 7, 2012 2. Second are the peripheral capitalist countries, former colonies that are poor and are major sources of raw materials and cheap labour such as the former colonies, such as Guatemala and Angola. (Pg. 264) 3. Thirds are the semiperipheral capitalist countries, such as South Korea, Taiwan, and Israel; consist of former colonies that are making considerable headway in their attempts to industrialize. (Pg. 264) ∙ The semiperipheral countries differ from the peripheral countries in four main ways: Type of Colonialism ∙ The semiperipheral colonies were left at an advantage after the colonizers left, as oppose to the peripheral countries. (Pg. 264) Geopolitical Position ∙ Other countries with less strategic importance to the United States received less help in their drive to industrialize. (Pg. 264) State Policy ∙ A third factor that accounts for the relative success of some countries in their effort to industrialize and become prosperous concerns state policies. (Pg. 265) Social Structures ∙ Postcolonial countries that enjoy a solid industrial infrastructure, strategic geopolitical importance, strong states with strong development policies, and socially cohesive populations are in the best position to join ranks of the rich countries in the coming decades. (Pg. 266) Canada as a Semiperipheral Country ∙ The type of colonialism that Canada experienced is sometimes called “white settler colonialism.” Europeans were determined to improve or reproduce the standard of living they enjoyed in the old country. (Pg. 266) ∙ Canada’s geopolitical position had always been highly favorable to economic development. (Pg. 266) ∙ Canada’s state policy has sometimes acted to protect and stimulate the growth of Canadian industry. ∙ Canada’s social structure has arguably had fewer positive effects on economic development. (Pg. 266) NEOLIBERAL VERSUS DEMOCRATIC GLOBALIZATION Globalization and Neoliberalism ∙ Neoliberal globalization is a policy that promotes private control of industry; minimal government interference in the running of the economy; the removal of taxes, tariffs, and restrictive regulations that discourage the international buying and selling of goods and services; and the encouragement of foreign investment. (Pg. 267) Foreign Aid, Debt Cancellation, and Tariff Reduction ∙ In order to help the poor countries foreign aid as form of improvement has been proposed. (Pg. 268) ∙ Many analysts argue that the world’s richest countries and banks should simply write off the debt owed to them by the developing countries in recognition of historical injustices. (Pg. 269)
Week 8
Globalization, Inequality and Development Chapter 9
∙
A third reform proposed recently is the elimination or at least lowering of tariffs by the rich countries. Democratic Globalization ∙ The final reform considered is the spreading of democracy throughout the developing world. (Pg. 268) ∙ Research shows that democracy lowers inequality and promotes economic growth because: o They make it more difficult for elites to misuse their power and enhance their wealth and income at the expense of the less well to do. (Pg. 269) o They increase political stability, thereby providing a better investment climate. (Pg. 269) o Finally because they encourage broad political participation, democracies tend to enact policies that are more responsive to people’s needs and benefit a wide range of people from social classes. (Pg. 269)
Week 8
Globalization, Inequality and Development Chapter 9
