Topic 3: Causes and Condition of Aboriginal or
Child/Youth Poverty: Comparing Canada and India or a
country in Latin America (or Child/youth in Latin
America in general, as some articles draw upon examples
from a few countries)
Framework: Formulate a framework using WST concepts and the arguments
in lectures, and in the articles related to children (Articles 11-16) in your
Term 2 course kit. For a better grade, it is important that you integrate as
many of the kit articles as sources on Child/youth. Also, you will be wise to
use the following excellent report posted on course webpage: Canadian
Council on Social Development (CCSD) (2006). The Impact of North
American Economic Integration on Children,
http://www.ccsd.ca/pubs/2006/cina/econ_integration.pdf (accessed 1 July,
2007) free publication.
Global Value Chains in East Asia WTO 6.03min jun 2011
http://www.youtube.com/watch?v=9-1ht2OrG2Y
Starbuck's Coffee: Commodity Chain 10 min 2011
http://www.youtube.com/watch?v=osW9dfueb_4
http://www.irows.ucr.edu/papers/irows13/irows13.htm (accessed jan11,07)
Production and consumption interlinks
Core & Peripheries:
Global Commodity Chain
(NIKE)
Integration of Households
Children/youth
Women
* Nike's Globalization and Commodity Chain
http://maps.google.com/maps/ms?ie=UTF8&t=m&vpsrc=6&oe=UTF8&msa=0&msid=211065077841377470192
.0004b3088ffc9f6ceb280
Household in the Global Commodity Chain
(World System Theory):
•Core or Peripheral states:
• Households (non indigenous)
• Classes: Upper & middle income
Low income & the Poor
• Indigenous households: (Canada and
L Am)
Fourth World status
* Child labour 2006 BBC
http://www.youtube.com/watch?v=ruh0O_mj1v0 5.20 min
Nepal child labour 3min
http://www.youtube.com/watch?v=6zSLVhHEXtM
The road to 2016: towards the end of child labour: 2010
http://wn.com/you_tube_exploitation_of_global_division_of_labor_child_labour
8.44 min
Value Chain: Geographically Dispersed Interlinks
* Walmart Fire in Bangladesh 2012 (21.26min): http://www.youtube.com/watch?v=oLoW5Z9vhhg
(2 min)
Globally pervasive child labour:
Child labour uncovered in Apple's supply chain
Internal audit reveals 106 children employed at 11
factories making Apple products in past year
Juliette Garside, telecoms correspondent
The Guardian, Friday 25 January 2013 19.22 GMT
Apple store
Canada and the Developing World -A comparative
framework
Thesis on children/youth:
• Increasing global corporatization has integrated
children/ youth in the Core and Peripheral countries
into a global commodity chain.
• Child/youth in the Core have been transformed
into conspicuous consumers or service sector
commodities and those in the Periphery, into
comprador consumers or labour commodities.
Thesis (cont’d)
Most children/youth in the Core help extract a
major share of surpluses (corporate profits) for
their consumption within a stable political
economy.
In contrast, children/youth labour in the
Peripheries is exploited for the surplus
extraction transferred to the Core. The surplus is
extracted through poorly paid or unpaid
household labour
Child poverty is defined in the 2011 Society report
as “The proportion of children 17 years and under
living in households where disposable income is less
than half of the median in a given country.”
Ref: 2011 Society report (2011). The Conference Board of Canada, Ottawa
Child poverty in BC 2011 http://www.youtube.com/watch?v=xVXzsxc4ikY 1.37min 2011
.
Concepts Comparing on Children & poverty
Core: Canada &
children in poverty
• Affluent country
• Child benefits
• Social institutions &
financial support for
children
Periphery: Mexico &
India: Child Poverty
• Poorer countries
• Child poverty leads
to child labour
• Basic needs not met
The Global Situation of Children in Poverty 3.10 min
2008
http://www.youtube.com/watch?v=jCXXgrL0Znk
Total Global/ Regional Children/Youth in ’000 (March 2012)
Countries
<18
<5
Africa
Middle East and
North Africa
Asia
Latin America and
Caribbean
Industrialized
countries
Developing
countries
Least developed
countries
World
477,383
155,135
156,444
1,151,806
47,524
316,151
195,713
53,461
203,008
57,212
1,953,940
563,545
389,258
2,201,180
122,520
633,933
http://www.unicef.org/sowc2012/ accessed jan26,2013
Contrasts between Canada & DW
Children’s poverty
Children’s poverty
in DW: 2004
in Canada: 2005
•1.2 million
• Relative poverty
• Generational welfare trap
• Poverty cycle
• Social Security
• Publicly funded schools
• Universal medical care
• 250 million
•Absolute poverty
• Lack basic needs
• Hunger and death
• AIDS & blindness
• Severe disabilities
•Violence and orphans
Affluent Canada (2005):
Child poverty
• 1.2 million children, or (1 in
6) children live in poverty.
• # in poverty- 20% rise
(1989-2004)
• 18% increase in (rate of)
poverty 2002- 2005
• 41% users of food banks, are
children
Child Poverty in Canada: Why are 10 percent
of kids poor? 1hr April 2010
http://www.youtube.com/watch?v=qt6s1maEM
tw
Peripheries or DW (2004)
Child poverty :
• 674 million in poverty
(2005)
• 70% poor in rural
(agriculture) Gordon, D, et al (2003) "Child
poverty in the developing world"
Child labour (2004)
• 250 million working
• 120 million work full time
• 61% in Asia, 32 % in Africa,
7% in Latin Am
http://www.hrw.org/children/labor.htm accessed oct 2010
Canada: http://www.campaign2000.ca/rc/rc04/04NationalReportCard.pdf
accessed Jan 2010
Income Inequality and Child Poverty in Canada: from
Poor No More, a Canadian fe 2.53min oct 2009
http://www.youtube.com/watch?v=GIWroI1wymg
Canada (cont’d) (groups that
are in worse situation)
• Child poverty rates for
Aboriginal, immigrant &
visible minority groups
are more than double the
average of that of all
children
First Nation Children are Living in Poverty 5.16 min 2012
http://www.youtube.com/watch?v=zI1D9k4Adwo
Support for First Nations' Children 2010 3 min 2010
http://www.youtube.com/watch?v=p2AqunAgY2A
• child poverty rate among
children with disabilities
is 28%
Developing countries
(cont’d) (work)
• work as domestics
• work in trade & services
• work in manufacturing &
construction
Canada: 2009
Child Poverty:
• 639,000 children live in
poverty
• Poverty rate: 9.5%
• Youth unemployment
• 14.1% unemployment rate
• Aged 15-24: 408,000 youth
unemployed in Oct. 2011.
• weekly wage $398.74 $525.90 less than those aged
25 and over
• 30% of these youth find
themselves in precarious jobs
REVISITING FAMILY SECURITY IN INSECURE TIMES
2011 Report Card on Child and Family Poverty in Canada
Peripheries or DW (2011)
Child poverty :
• 1 out of 6 infants are born
with a low birth weight in
developing countries.
• A third of all childhood death
in sub-Saharan Africa is
caused by hunger.
• Every five seconds, a child
dies from hunger-related
diseases.
• 22,000 children die each day
due to conditions of poverty
http://www.thp.org/learn_more/issues/know_your_world_facts_a
bout_hunger_and_poverty
Know Your World: Facts About Hunger and Poverty 2011
Child Poverty in Canada
LIC: Low income cut-off LIM: low income measure
http://www.statcan.gc.ca/pub/75f0002m/2012002/lico-sfr-eng.htm
2011 Report Card on Child and Family Poverty in Canada
Source: Statistics Canada, 2006, 2001 & 1996 Censuses through the Toronto Social Research and Community Data Consortium
(2006) and the Community Social Data Strategy (1996-2001). LICO Before-Tax.
Canada:
Source: http://dsp-psd.tpsgc.gc.ca/Collection-R/LoPBdP/CIR/824-e.htm 2003 data
Neoliberalism & its result: GCC in Core:
Declining role of the State
Financial Deregulation
Dismantling of Social Welfare
Privatization of child care
Youth integration into GCC
• Weakening of social policy towards children
• State is unable to compensate the impact on
child poverty generated by the shocks
• Declining funding for youth programs & educ.
• Youth unemployment
Topic 2: Women and Globalized Labour: Comparing Canada
and India or a country in Latin America (or women in Latin
America in general, as some articles draw upon examples from a
few countries)
Framework: Formulate a framework using WST concepts and the arguments
presented in lectures, Kit articles # 7-10, and in one or more of the articles in the
Developing World (Articles from Developing World # 50-55). Also, you may find the
following articles (to be accessed through York U electronic data base), useful:
Gideon, J (2006). Accessing Economic and Social Rights under Neoliberalism: Gender
and Rights in Chile, Third World Quarterly, 27, 7: 1269 – 1283; Agarwala, Rina
(2007). Resistance and Compliance in the Age of Globalization: Indian Women and
Labor Organizations, The ANNALS of the American Academy of Political and Social
Science, 610: 143-159.
Topic 2: Framework on Women and development :
WST & Commodity Chain:
• Financial Crisis: Neoliberal deregulation policies
(Canadian Women)
• Global Commodity chain (GCC)
(Third World Women)
http://becauseiamagirl.ca/page.aspx?pid=3865 2.33 min
Thesis:
Globally, most of the poor are in the DW, of which women
constitute a considerable majority. In contrast, only a minority
of the Canadian women live below the poverty line. While
feminization of poverty affects the women in the DW,
feminization of labour shapes those in Canada.
A result of NDL, poor women in DW, are tied to the
commodity chain that extracts surplus/profit through nominal
or no wage work. ( Hidden Face of Globalization 9.49 min
http://www.youtube.com/watch?v=8Bhodyt4fmU 2007)
On the other hand, in Canada, neoliberal policies encourage
extraction of profits through feminized job market. Low wage,
gender inequity and declining social programmes impoverish
the women.
Why & how Canadian women workers are disadvantaged?
Canadian neoliberal policies/practices legitimize the extraction of
surplus from temps & low waged women workers
Canada: Feminization of labour
DW: Feminization of Poverty
Concepts & arguments from:
•Caragata (2003) : gendered and differential benefits;
labour force changes; marginalization; retrenching welfare
state; commodification of social roles.
DW:
•Quintero-Ramirez (2002): capital mobility; flexible work
& vulnerable for firing; feminization of poverty
Maquiladora women - spots from the film MAQUILAPOLIS
http://www.youtube.com/watch?v=yK2KzIGb44I 4min
Canadian Women: Neoliberal policies
•Liberalization: Free trade
•Austerity: Financial cutbacks
•Privatization: For profit services replace public
services and dismantling of unions
•Deregulation of: Financial procedures and
securities of lending, borrowing and insurance;
Flow of foreign investment
• Globalization of production & expansion of
market
Canada:
1. 7 out of 10 part-time workers in 2009 were women, a
proportion that has changed little over the past three decades.
2.In 2009, 2.2 million women worked part time, that is, fewer
than 30 hours a week at their main job.
3.The share of women working part time rose from 23.6%
in 1976 to 26.9% in 2009.
4.In comparison, the rate for men in 2009 was 11.9%, less than
half that of women, although it more than doubled from 1976.
Stat Can: Latest release from the Labour Force Survey Friday, January 6, 2012
http://www.statcan.gc.ca/pub/89-503-x/2010001/article/11387-eng.htm
Women are more likely to work part time than men
Canada:
5. The majority of employed women continue to work in
occupations in which they have been traditionally
concentrated, although the proportion has declined slowly
over the past two decades.
6. In 2009, 67.0% of employed women worked in teaching,
nursing and related health occupations, clerical or other
administrative positions, or sales and service occupations. In
contrast, 31.0% of employed men worked in these fields.
Stat Can: Latest release from the Labour Force Survey Friday, January 6, 2012
What is Feminization (Canadian Women workers)
• Women’s high labour force participation and
employment rates
• Gendered rise of insecure or temp jobs
Capital extracts surplus:
From:
Canada: lower cost of production
Mexico: cheap labour - Export Promoting
Zones (EPZ) or border industrialization,
e.g., maquiladora
Women in the ‘Core’:
In Low-Paid Employment (% Labour Force)
(Caragata: 2003)
Country (year)
Total Men
Women
Australia (1995)
Canada (1994)
France (1994)
Sweden (N/A)
UK (1995)
US (1994)
13.8
23.7
13.3
5.2
19.6
25.0
11.8
16.1
10.6
3.0
12.8
19.6
17.7
34.3
17.4
8.4
31.2
32.5
Women in OECD (the ‘Core’) countries:1995 to 2005
In Low-Paid Employment (% Labour Force)
low-wage work for men and women: selected OECD
countries, 1995 to 2005
www.ilo.org/wcmsp5/groups/.../---ed.../wcms_157253.pdf accessed jan 2013
Canada
Canada: Average total income of women and men, 1976 to 2008
Source: Statistics Canada, CANSIM table 202-0407.
Canada: Employment rates (% of working age pop.)women and men,
1976 to 2011
Source: Statistics Canada, Human Resources and Skills Development Canada www.hrsdc.gc.ca
http://www4.hrsdc.gc.ca/.3ndic.1t.4r@-eng.jsp?iid=13 acc jan 2013
Canada: Percentage of employed women and men with temporary
work, by age group, 2009
Source: Statistics Canada, Labour Force Survey. Date Modified: 2011-07-26
Unemployment rate for women and men in Canada, 1976 to 2011
Source: Statistics Canada, http://www4.hrsdc.gc.ca/.3ndic.1t.4r@-eng.jsp?iid=16 acc.jan
2013
% persons living in low-income after tax, by sex of major income earner,
select years, 1976 to 2010
Note: Based on after-tax LICOs.
Source: Statistics Canada. Persons in low income families, annual (CANSIM Table 202-0802).
Ottawa: Statistics Canada, 2012.
[ Show Data Table ]
gender pay gap
Comparing the average hourly wages of women and men,
the ratio was 83.3% in 2008 – up from 75.7% in 1988
Sources: Statistics Canada, Labour Market Activity Survey 1988, Survey of Labour and Income Dynamics 1993 and
Labour Force Survey, 2003 and 2008. Date Modified: 2011-07-26
Why we should still mind the wage gap
Leah Eichler
Special to The Globe and Mail
Published Friday, Aug. 17 2012, 7:00 PM EDT
the average amount for damages issued at the human rights
tribunal level range from $25,000 to $75,000 in Canada. In the
United States, damages for the same issue might amount to
millions of dollars for individuals.
Canada:
women’s problems are not related to basic needs
(as in poorer countries)
• 61 percent of single parents cannot
afford a computer (1998) source: Caragata (2003)
• among single parents, % women are
90% (1998) 80% (2011) Stat Can (released 2012 sept.)
2012:
http://www.canada.com/Census+More+single+dads+heading+lone+parent+families/7265375/story.html
acc. Jan 2013
•Single parent mothers in poverty: 21% (2011)
http://www.canadianwomen.org/facts-about-poverty (Jan 2013)
Core countries:
Indigenous women:
•education and life expectancy
world's lowest rates
•illiteracy, infant and maternal mortality and
death from preventable disease
world’s highest rates
Framework on Women and development :
WST & Global Commodity Chain:
• Financial Crisis: Neoliberal deregulation
policies
(Canadian Women)
• Global Commodity chain
(Third World Women)
Arguments (DW# 50-55)
Impacts of GCC on female workers in the Periphery
Wilma A. Dunaway (2001). journal of world-systems research, vii, 1, spring 2001, 2-29
Impacts of GCC (contd.)
http://www.youtube.com/user/WorldBank 3min Haiti
http://www.youtube.com/watch?v=V86DfIwlDmY 2.19 min WDR on wmn 2012
Unpaid work: http://www.youtube.com/watch?v=UaCwOdNeA7k
1.20min Think EQUAL
Wilma A. Dunaway (2001). journal of world-systems research, vii, 1, spring 2001, 2-29
Peripheral countries:
GCC: Reasons why women are marginalized:
Women are treated as commodities/property by:
1.
2.
3.
4.
5.
6.
Traditions (gendercide) (DW # 53)
Religious fundamentalism (DW # 53)
Socio-political Status (DW #51, 53)
Wars and conflicts (DW #52)
Inequality and denial of rights (DW #50,51,54 )
Market (Women in GCC) (DW #55)
Topic 1: Global Impact of the 2008 Financial Crisis: Comparing
Canada and the Third World Countries (One county or the Developing
World in general, with examples on countries)
Framework: Formulate a framework using the arguments and concepts
from one or more Kit Articles 1-5 and from Term 1 lecture 5 on
Financial Crisis.
DW #1: Human development, civil & political rights, safety against
abuse and economic security.
DW # 2: Political participation and equity for the poor
DW #3: Reproduction of labour in DW and decline of workers in AIC
DW #4. Development is local and participatory not imposed by IMF
&WB
DW #5. Declining West vs. DW as the hub of the changing world orde
#6. MNCs of the DW (as those in AICs) are compradors who exploit
the poor as cheap labour
Thesis: While the 2008 financial crisis had severe economic and
financial repercussions on the core countries such as US and
Europe, the regulatory regimes of the Canadian financial institutions
limited Canada’s exposure to the crisis that minimized its adverse
impact to the economy and employment. In contrast, the Third
world countries where most people are already poor, faced
worsening of poverty due to declining GDP, loss of export trade and
growing unemployment that led to greater poverty.
Impact of the 2008 Financial Crisis (FC): Canada
I. Economy and Finance
II.Employment and Economic security
III.Human Development and Poverty
Canada: FC
I. Economy and Finance
1. FC: less impact than in other AICs. Credit has solid growth as
Canada’s financial institutions are better capitalized and less
leveraged than their international counterparts. Canadian financial
institutions continue to be the healthiest in the world. World Economic
Forum has ranked Canada’s banking system as the soundest
in the world for the past 3 years.
2. Strong growth in world prices of most commodities produced in
Canada since mid-2010
3. Canada’s sound fundamentals have made Canadian financial assets
attractive to international investors
http://www.bankofcanada.ca/2011/03/spee
ches/great-recession-canada-perceptionreality/
http://www.budget.gc.ca/2011/plan/chap2eng.html
http://www.budget.gc.ca/2011/plan/chap2eng.html
The six largest domestic banks hold > 90% of banking industry
assets adds to the banking industry’s stability
In 2006, sub-prime loans accounted for less than 5% of new
mortgages in Canada, compared to 22% in the United States.
While >50% of all mortgage debts outstanding in the US were
sold to investors through securitization, >75% of Canadian
mortgages were held by financial institutions on their balance
sheet as traditional mortgages
However: Stock markets registered their greatest drops in more than
75 years. If the contagion spreads, it directly affects our exports to
the US. Three-quarters of our exports go to US markets.
Capital investments decline due to uncertainty in a weakening
financial markets with shaken consumer and business confidence. a
22 % downturn in business investments in 2010
Sharp decline in exports - decrease by >16 % in 2010.
Impact of the 2008 Financial Crisis (FC): Canada
I. Economy and Finance
II.Employment and Economic security
III.Human Development and Poverty
Employment losses were much less serious than during
earlier recessions - jobs regained sooner
But, only partial recovery of business investment (45%)
and exports (67%) from the losses due to the recession.
Jobs linked to these sectors have not come back .
http://www.budget.gc.ca/2011/plan/chap2eng.html
http://www.budget.gc.ca/2011/plan/chap2eng.html
Impact of the 2008 Financial Crisis (FC): Canada
I. Economy and Finance
II.Employment and Economic security
III.Human Development and Poverty
III. Human Development and Poverty
In US, 2 of the Detroit-based auto companies receive
loan guarantees of $17 billion and $4 billion from the
Canadian Federal and Ontario provincial governments.
Ford is to receive a line of credit. Without them, millions of
workers will lose their jobs in Canada.
Women workers: investment in ‘infrastructure’ is repairing
And constructing roads, bridges and buildings, and bailing out
the Detroit Three is job creation amounts to ‘jobs for boys,’
as
far fewer women work in such industries.
Human Development and Poverty (cont’d)
Instead of assisting the unemployed, the poor on welfare
and income supplement:
a.Canadian government is helping Canada’s banks. –
swapped hundreds of billions of dollars for questionable
assets held by banks
b.$85-billion cumulative deficit over five years for the
bail out - “Insured Mortgage Purchase Program” lists
the $75-billion CMHC buyout
c.$ 45-billion is being provided to further backstop
mortgage lending
Impact of the 2008 Financial Crisis (FC): DW
I. Economy and Finance
II.Employment and Economic security
III.Human Development and Poverty
Economy: (OXFAM study)
Asia and the Pacific, especially in Central and South-East Asia
GDP growth dropped in 2008 and 2009. India, Indonesia, Thailand,
Viet Nam, the Philippines, Pakistan, and Sri Lanka where the poor
populations predominate.
China: state control and high foreign exchange reserves have given
greater flexibility to control the crisis).
Newly industrialized countries: South Korea, Malaysia, Singapore,
Taiwan, Hong Kong and Macau: high per capita incomes, high
degrees of trade and investment integration with the world, highly
export dependent. But, they have fiscal and social policies to deal
with declining exports & unemployment.
Less developed countries :Bangladesh, Cambodia, Bhutan, Lao
PDR, Mongolia, and Nepal: increasingly integrated with the global
and regional economy through trade. Worsening economies
2010 GDP in sub-Saharan Africa : Fell 7% ($84 billion).
(International Monetary Fund (IMF) data and forecasts, 2011 http://www.imf.org/external/pubs/ft/weo/2010/update/01/index.htm)
Financial stability:
The region’s financial sector had no complex new financial
instruments (such as in US: Collateralized Debt Obligation
(CDO) Credit Default Swap (CDS))
Effective financial supervision and prudent risk management
Foreign exchange reserves have been built up in Asia based on
export surpluses (e.g. China), and on capital inflows or
remittances (e.g. in the cases of Bangladesh, India, Indonesia,
and Viet Nam).
However:
FDI fell significantly. Banking stresses in low income countries
e.g., non-performing loans (NPLs) to total assets ratio doubled
in Zambia (7% to 13% during 2009.
Impact of the 2008 Financial Crisis (FC): DW
I. Economy and Finance
II.Employment and Economic security
III.Human Development and Poverty
Employment:
The greatest impact on employment was in the garment and
mining industries.
Jobs lost:
In 2009. 25,000 to 30,000 garments workers in Bangladesh.
In 2009, Cambodia lost a third of garment workers (102,527 jobs)
A third of Zambia ‘s mining jobs:10,000
Three quarters of miners in DRC (18,000 people)
Cambodia has been hit hard through garments, tourism, and
construction.
Philippines: most lay-offs in export processing zones (EPZs) - 75
% are women workers
Thailand: 125,700 women (I in 4 export industries) laid off or lost
regular work and became temporary.
In Indonesia and Thailand: (Oxfam evidence)
Using crisis as an excuse: Factories dismissed workers in order
to hire younger, cheaper workers.
In Serang, Indonesia, in one factory, 79 employees with 8 to 14
years seniority were dismissed Then, hired younger workers
with flexible, lower paid short-term contracts, apprenticeships,
and for outsourcing.
Impact of the 2008 Financial Crisis (FC): DW
I. Economy and Finance
II.Employment and Economic security
III.Human Development and Poverty
Human Development:
Families : In Indonesia: If with jobs, give up meat or fish.
Women now unemployed - only food twice a day instead of three
times - eat less at each meal.
Forego food to give food to their children or husbands
Watered down the milk to babies and feeding children less
No money for school meals
For the first three months my kids found it very difficult to give up
rice, tempe, and tofu and just eat soup and the cheapest thing.
– (Dismissed worker in a focus group discussion, Indonesia)
My husband and I skip meals to make sure our baby has milk.
– (Woman in focus group discussion, the Philippines)
Men deserve to eat more food because they are physically stronger,
do hard work on the farm, and earn income for the family.
– (Focus group discussion, Viet Nam)
Human Development:
In Cambodia, 70% taken out loans from relatives or friends, or
bought food on credit.
Parents in urban areas in Indonesia report eating less and
selling assets to keep their children in school. It is better for us
not to eat than for our kids not to go to school.
– (Woman in a focus group discussion, Indonesia)
Topic: 4: NAFTA & US hegemony: Canada and
Mexico (DW # 8 -13; Kit: Ciccantel; QuinteroRamírez
WST
Trade liberalization and Neoliberalism
Global Commodification
NAFTA: Comparison
US hegemony
• Advanced industries,
technology & market
(P)
• Mergers and expansion
of MNCs (NDL)
• Financial stability (P)
• Largest & desirable
market for capital and
for export (P)
Weaker Peripheries
• Raw material based
industrialization/
agriculture
(Mexico)(UT)
• Development model US enforced (lack P)
• Export dependence
(UT)
• Smaller markets & less
globally powerful (lack
P)
What is hegemony:
Arrighi (1994: 27):
When a state uses its economic, political,
military and cultural power to control a group
of sovereign states.
Core: NAFTA & US :
1. Problems of U.S. & its MNCs:
How did they solve insecure supplies of the
raw materials ?
Canada’s & Mexico’s oil, natural gas, and
other natural resources
2. Why was US interested in these supplies?
To reduce for U.S. MNCs’ cost of
production to advance their competitiveness.
Core: NAFTA & US (cont’d):
3. What are to be monopolized in the world?
• Cheap access to heaviest, bulkiest, and
largest volume raw materials
• Hegemony to extract from peripheries
raw materials at low costs.
WST, Core’s Globalization agenda & its
consequences on peripheries
Expansion of US Hegemony:
•Enforced uniformity in development
•Hegemonic control over technologies
•Unsuitable, costly & centralized solutions
•Lack of locally effective problem solving
Peripheries: NAFTA: Mexico & Canada
Ciccantell (2001)
• Continental integration of raw materials
industries to reconstruct U.S.
hegemony
Cormier & Targ (2001)
• Globalization led to workers’ poverty &
global income inequality
Quintero Ramirez (2002)
• NAFTA deindustrialized & depressed
labour conditions in Canada and
exploits workers in Mexico
Peripheries
Carol Wise: Regional market integration of US, Canada and Mexico has been
superseded by China’s use of NAFTA to facilitate its entry into US through
Mexico
Labor Studies Journal, Spring 2001 v26 i1 p42
GLOBALIZATION AND THE NORTH AMERICAN WORKER. (Statistical Data Included)
David Cormier; Harry Targ.
NAFTA and the Reconstruction of U.S. Hegemony: The Raw Materials Foundations of
Economic Competitiveness. (Statistical Data Included) Paul Ciccantell. Canadian Journal of
Sociology, Wntr 2001 v26 i1 p57
Carol Wise (2009) The North American Free Trade
Agreement, New Political Economy, Vol. 14, No. 1, March 2009
Why a nation-state is ineffective in
controlling its branch plants?
(Why Canada cannot control its own
sovereignty, taxation and borrowing?)
•U.S. hegemony
It ensures that its huge sunk capital in
raw materials overpowers Canada’s
claims to sovereignty
How does NAFTA de-industrialize & depress
labour conditions in Canada and exploit
workers in Mexico?
By:
• Reducing the number of full-time jobs
• Subcontracting work outside the plant
increase of part-time workers as
piecework outsourced to home work
Topic 5: Climate change and Economic development: Why
and how does/would the Kyoto Protocol and the consensus
arrived at the Bali conference of 2007 affect economic
development in the Emerging Economies differently from
that in the Advanced Industrial Countries?
Causes:
WST explains:
• MNCs & Global exploitation of resources:
• Core’s advanced capitalism
• Core’s endless consumption
Peripheral countries:
• MNCs integrate them into global market
• Need post-colonial economic development
• Resource rich
• Labour surplus
Why do peripheral countries adapt to Core’s
(American) style of capitalism?
Structural Adjustment Program (SAP)
•Balancing the government budget
•Weakening the Labour
•Deregulating the economy
•Reducing the State
BLeeDS
• Examine the impact of foreign investment
dependence (of 66 LDCs) on carbon dioxide
emissions in 1980-1996
• 1980-1996: foreign capital penetration in 1980
has a significant effect on growth of CO2
emissions (analysis of 66 LDCs)
• Domestic investment has no systematic effect.
Possible reasons:
• Foreign investment is more
concentrated in those industries that
require more energy.
• MNCs relocate highly polluting
industries to countries with fewer
environmental controls.
.
Possible reasons Cont’d.):
•Movement of inputs and outputs resulting
from the global dispersion of production
over the past 30 years is likely to be more
energy-expensive in countries with poorer
infrastructure.
• Power generation in the countries receiving
foreign investment is considerably less
efficient than in Core countries
Impact:
Developing World vs. AICs
•Water resources
•Agriculture
•Industrialization
•Poverty and poorer people
•Diseases
•Global weather and disasters