decolonization and sustained inequality created borders gave some people power over others and...
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Global Development In Colonial Times
•Decolonization and Sustained Inequality•Created borders•Gave some people power over others and others power over money•Renamed everything•Forced into Christianity, not allowed to speak own language, re-education of the peoples•Assimilation of indigenous; saying this is best way to do it
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Colonial IdeologiesCivilization (Civilized vs. Uncivilized)
Colonists (civilized) Natives (uncivilized)Colonists determining who is civilized and who is not
Progress (Modern vs. Primitive)Place value on how you live
Ex: We have flush toilets you do not
Those Who Set Progress AgendaHaving choice
People who have money (position of privilege)Bootstrap Mentality – you can do it if you work hard
enough
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Beginnings Within EuropeMilitary buildup in order to defend coloniesMiddle class grew by exploitations of country
in their coloniesPeasant revolts
Taxed more heavilyCreation of wage labors; go somewhere else to
work get paid by different peopleEstablishment of United States
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On to AmericaNationalism grew
What you as a nation have as an idea of yourself Define selves by flag, Thanksgiving, 4th of July What we stand for With nationalism, harder to obtain colonies for same reason
Led to World War I Lost most Latin American colonies
World War II Lost many more colonies
Post war shifts (beginning in the ‘40s) Emphasis on nation and states
Were divvied up as colonies but now considered states Conscious shift to global economy/institutions
World Bank, International Monetary Fund Trade alliance focus; multilateral
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Decolonization (1940s – 1970s)Resistance by the colonies but persistence by
the nations controlling themEmphasis on nation-making by dividing up
coloniesInternal/external disagreements
Wars and battlesMostly throughout Africa
Cold WarThe East vs. the WestSecond race for Africa; wanted their side
Really just wanted their resources
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Development ParadigmsAlign former colonies with main super powersCreated global economic standards“aid”; money in the form of loans
Competition for AfricaDictators, military, export infrastructureWhere the money was actually going
Escalated povertyCreated underdeveloped and developed nations
85% of “aid” is loans not free money Going to countries that were made poor by the rich nations
who are giving them the “aid”Very structure of “aid” has created more poverty;
supposed to level the playing field
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Wanted to establish trade alliancesColonies were not workingFostered global economy so economic flow
would be fairHad to create “independent” nations of
former coloniesNot good because they could not function on
their ownHas not really been a government to govern
themDo not have capital; all their resources
stripped by former country that colonized them
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New World OrderAllies go together without colonies
Came up with global institutionsWorld Bank and International Monetary Fund created 1944
World Bank = leading institution Only could lend to war torn countries and/or developing countries Three goals: reduce poverty, provide long-term economic growth, foster
relationships between all International Monetary Fund = monitor world’s currency
Only supposed to give out short term help when absolutely needed Insure stability of world economy
Official/Unofficial rules 184 member countries Non-elected officials; appointed If you wanted to make a change you have to have 85% support U.S. – always put in enough money to gain 15.5-18% to have sway
power in votes
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1960’s – 1970’s ShiftGetting into height of decolonization effortsShifted energies to former colonized nations1970’s; rise in oil profits – goes to western banksLending increases and large scale projects
No oversight; people not looking in the long-termNo accountability
Money coming in not going to who needs itBubble burst
Money going to developing countries goes right back to the banks
Passes over developing countriesDeveloping countries can’s pay back loans and their exports
don’t hold price; actually drops
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Who is ValuedWorld Bank gave money to bankrupting
private banks instead of developing countriesThreats:
Foreign assets of country refusing to pay its debts would be attacked by creditors throughout the world; its exports seized by creditors at each dock where they landed; its national airlines unable to operate; and its sources of desperately needed capital goods and spare parts virtually eliminated. In many countries even food imports curtailed.
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Structural Adjustment Programs Social and economic strings attached
Lended money not just lended money Privatize – suggested because it works for “us”
Healthcare Schools Water Housing Electricity
Able to make money off of these Multinational corporations step in to “help” run privatized businesses
Freeze wages Export more products Reduce tariffs, subsidies, protections (liberalize trade) Mono-industries/crops
Do one thing and do it well I.e. cash-crops
Effects Raised poverty, unemployment, malnutrition Debt not reduced
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Washington Consensus / Neo liberalism (policy)Market ideology
Market will always rule; don’t want state interventionPrivatize and deregulateUnregulated trade will increase wealth for all
Trade liberalizationRemove barriers, therein wealth will trickle downNo social programs; no government controlAll big economies used regulations to create what they
have today Didn’t abide by the deregulation; only after they secured
their wealth did they
Washington Consensus was put into action through institutions, laws, and policies
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New Production Model Industrial work force used immigration labor Post Fordism
Flexible accumulation and financing Parts made in different places; not all made in one warehouse
Outsourcing Shipment to other countries in order to pay less
Maquiladoras Beginning of outsourcing Stopped bringing Mexicans to U.S. to work; multinational corporations
went to Mexico instead Subcontracting and homework
General Electric sells off plant to subcontractors to different countries Done for deniability reasons ; E.x. “didn’t know kids working for $.25”
Finally get to end of subcontracts – homework Drop off materials to women at home Women targeted for their perceived docileness Comes about only because of debt of poor countries
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Export Processing ZonesMultinational corporations get deals with government
“incentives”No more nation to nation talks
Governments create “zone” without regulationsEnvironmental regulations downLow wagesCordoned off with fences and guards
Feminization of laborTarget young females in poor outside city limit townsWent after women because of gender association with docilenessCreated lower wages and fearIncreased dependency
Trade increased globally
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World Trade OrganizationEstablished in 1995
149 member nationsMission: “implement and oversee global trade
policies”Non-elected delegates; elected director general“industry sector advisory committee” and
“councils for trade”Make the policies
Ministerial conference at least every 2 yearsNo transparency
People don’t know what actually goes on
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Decision Making In the WTOOne vote per member nation
No votes have ever occurred, everdone by “consensus”; corporate heads/lawyers
of rich countriesNo paper trail, no formal votes, so no record
of accountabilityNo one knows how anyone votesPeople left out of the loop
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Trade Provisions By the WTOProvisions For
Corporate protectionInvestors protectionMovement of capitalNone for labor
Provisions Against“barriers” of trade
Tariffs Have been denied so poor countries cannot make profit
Environmental laws “production and processing” laws
Child labor laws patents
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When “barriers” are foundRule on disputes
Secretly No documentation
WTO can trump national law Former President Clinton did not read WTO
provisions thoroughly; screwed up Money sanctions Payments by governments to corporations
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International Labor OrganizationEstablished 191178 member nationsCreates global work standardsFocus on worker’s rightsILO System
Tripartite system Government, workers, and employers
Promotes social and moral action “promote opportunity for women and men to obtain
decent and productive work in conditions of freedom, equity, security, and human rights”.
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ILO PowersMake labor standards thorough:
Conventions and recommendationsIssue annual reportsReport on abuses
Recent Report: GenderFeminization of labor
All labor gets devalued More women in the workplace
Increase in traffickingRemittances (126 billion)
Send money back homeRecommendations for
Equal pay, protection, childcare
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Global Trade PlayersGlobal rule makers
International institutions WTO, IMF, WB
Who decided this? The institutions themselves
Developed nation’s government How do they control rule makers
Buy votes for WB and IMF WTO trumps national laws
Multinational Corporations Define field of goods how?
Control supply and demand
Local producers Can use regional organizations
Try to make change
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Visibility and Invisibility in Global SystemsVisibility = Voice = Power
Gained through money (not natural)Invisibility = Muffled voice = Lack of power
Gained by multi-corps denying countries How are people made invisible/silent?
Legal status Visas Citizenship status
Governmental regulations CAFTA gave everyone same status
Did away with social servicesInstitutional structures
WTO, IMF, WB
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FearAfraid they cant speak up out of fear from
being fired or multi-corps leavingHealth problems
WTO can sue nations because of trade “barriers”
Being dependent on medicines controlled by upper powers
PovertyWorking to survive; cant revolt because no
time/option unless you want to die
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Agency: How to Get itAbility to act WITHIN and AGAINST systems
of power to produce CHANGE“globalization from below” (grassroots
structure) Means focus on human rights; local communities
coming together for change Can use strikes and protests Regional tribunals/ legal battles (hard because no
trnsparency with multi-corps) Consumer action
Making choice on what to buy Make production visible
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Challenging Structural Roots of Trade System WTO
People who form policies for investors; multi-corps None for labor Trying to make invisible production
Refuse to engage with rule makers Poor nations banded together (22 nations) Biggest points of contest are subsidies
$350 billion in subsidies; $50 million in Aid Changing the system
Fair trade We want new mode of production New supply chain
Take out most of middle men More accountability
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Fair Trade BenchmarksLong term relationships between producers and buyersSet stable base-price
Doesn’t keep rising and fallingEliminate intermediaries
Middlemen out Subcontractors
Access to credit and infrastructureFarmers can produce more and actually compete
Democratic producer co-opsLittle businesses get to make decisions together
Environmentally and labor safe lawsPublic accountability and transparency
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Challenges Core Values of “Free Trade”Myths
Market acts alonePrivatization eventually leads to trickledown wealthTrade provides “level playing field”
Fair TradeAbility to sell own productEqual payCooperative structureCommunity buildingHuman capital; opportunities greaterDirect transfer of profits; no middlemenGender equalityTransparency: total transparency