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

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 notThose Who Set Progress Agenda

Having choice People who have money (position of privilege)

Bootstrap Mentality – you can do it if you work hard enough

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

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

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

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

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

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

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

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.

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

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 theyWashington Consensus was put into action through

institutions, laws, and policies

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

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

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

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

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

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

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”.

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

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 demandLocal producers

Can use regional organizations Try to make change

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

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

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

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

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

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