Globalization (POLI3510) Globalization: The Essentials Chapter 1: Conceptualization, Origins and History - - - - Globalization: Planetary process/es involving increasing liquidity and growing multidirectional flows, as well as the structures they encounter and create. Globalization does not necessarily entail greater integration. It can both enhance and reduce the level of integration (the latter, when structures that block flows are created). Ex: increasing global flows led to Brexit, which was a rejection of greater integration in the form of the European Union. Transnationalism vs Transnationality o Transnationalism: Processes that interconnect individuals and social groups across specific geopolitical borders. o Transnationality: The rise of new communities and formation of new social identities and relations that cannot be defined through the traditional reference point of nation-states. Transnationalism is a more delimited process than globalization. It refers to interconnections that cross geopolitical borders. But it could refer to only a few nation-states, unlike globalization. o Example of baseball to differentiate transnationalism and globalization. Baseball has not reached a sufficient number of countries to be considered global, so it is rather transnational. However, soccer could be considered a global sport. Other examples of globalization in the sports world include the Olympics. Globalization and transnationalism can occur simultaneously, they can coexist. Conceptualizing globalization - Globality: Omnipresence of the process of globalization. Metaphor: Solids as time before globalization, reality after globalization considered liquid. From Solids to Liquids - Solidity: People, things, information, and places “harden” over time and therefore have limited mobility. - Solidity was a key characteristic of people, information, places. Things remained the same. People did not go far, they had relationships with those near them. Objects were used where they were produced. Information did not travel far due to the solidity of the media in which it was contained (stone tablets, newspapers...). As people did not move far, neither did information. There were also solid natural and artificial barriers that prevented flow. - The nation-state contributed to the creation of barriers to keep things in and out of their borders. Ex: erection of the Berlin Wall. - The solid reality is nowadays melting. - Fluidity presents both opportunities and dangers. Liquidity (Bauman): The increasing ease of movement of people, things, information, and places in the global age. That which is liquid does not hold its form for a very long time. Time in a liquid world is more important than space. Liquid phenomena move easily and are difficult to stop from moving. That which is liquid melts what is in its path. Liquidity leads to reactions that involve the creation of new solid forms or barriers, which attempt to control it. Flows - Flows: The movement of people, things, information, and places due in part to the increasing porosity of global barriers. - Ex: Flows in terms of food that has become popular all over the world (like sushi). Flows in terms of migration. Flow of information, images and ideas, which is easier due to its immateriality. Heavy and Light - Food Chapter 1: Unpacking the World Food Economy Mental and physical distance between consumers and food. Fast and cheap distribution of food, global reach. But also entails ecological and social consequences. Ecological: biodiversity loss and exposure to toxins due to the use of pesticides. - Triple burden of malnutrition: chronic undernutrition, overnutrition and micronutrient deficiency. - The book aims to contribute to a fuller understanding of some of the key forces that influence and shape the current global food system. o Focus on the international political and economic dimensions of the system. - Global food markets were given a push by industrialized countries. - Middle spaces of activity. - Growing distance as food is being treated like any other commodity. Characterized by asymmetry and volatility. Going Global - S How did we get here? - Four key forces: o State-Led industrialization and Global Market Expansion o Agricultural Trade Liberalization o Corporate Concentration o Financialization - T1: DEFINITIONS Globalization Initial Definitions • • • • - - “Globalization is a planetary process or set of processes involving increasing liquidity and the growing multidirectional flows of people, objects, places and information as well as the structures they encounter and create that are barriers to, or expedite, those flows.”—Ritzer “Globalization as a concept refers both to the compression of the world and the intensification of consciousness of the world as a whole.”—Robertson “A social process in which the constraints of geography on social and cultural arrangements recede and in which people become increasingly aware that they are receding.”—Waters “Globalization is the extension, acceleration, and intensification of consequential worldwide interconnections.”—Sparke, p. 3 4 major structural components: economic, social, cultural, political. Global capitalist system: global trade, technology driving force behind that. Technologies of transportation, communication, etc. How does that interact with systems of political powers? There is only political economy, not economics. How does the global political economy of capitalism work? o Some argue that the dynamics of migrating global capitalism means that states are powerless. Other argue that is not the case. To what extent do politics affect global capitalism, and vice versa. How do the processes of globalization affect social structures and culture? Interdependency implies mutual dependency but not equality of influence. Definitions o Ritzer (book), sociologist. Flows and impediments to flows. Multidirectional flows. Set of processes, not a thing. They can change, they can be reversed. Solidity is still present. Solidity can hamper flows or facilitate them. o Robertson, sociologist. Consciousness, people are aware of it. It can lead to the acceptance of being citizens of the world or to the rejection of it, cultural backlash against it. Resurgence of nationalism. o Waters o Sparke Analytical Aspects of Definitions - Non-evaluative, descriptive. Inclusive Emphasize processes and trends Issue of consciousness Nature of Globalization These definitions of globalization may or may not be viewed as linear. That is, they do not necessarily imply that globalization is a one-directional process. They do not necessarily imply an all-encompassing process, as if everyone is affected (equally?) by globalization. Metaphors of Globalization - Solidity: def p.4 “People, things, information, and places “harden” over time and therefore have limited mobility.” o Ex: physical structures, barriers. Border regimes. o Lack of mobility, people are born in social classes and usually stay there. o The vast majority of people do not leave their country of origin. People who live outside their country of origin: 380m. - Liquidity: def p.6 “The increasing ease of movement of people, things, information, and places in the global age.” o Ex: information of the internet, transportation, food, money. o Qualities: water erodes solid structure/overcomes solid obstacles, fits any shape, they always find a way around the obstacles in their way. - Flows p.7 “The movement of people, things, information, and places due, in part, to the increasing porosity of global barriers.”- Heavy, light and weightless pp 8-9 o Heavy: factories. o The Bible can be all three (weightless through the internet). o Is the internet really weightless? Servers, huge installations. Somewhere, the Internet is heavy. - Heavy structures that expedite or block /channel flows in various ways. - Perspective and level of analysis: solidity, liquidity and flows o Some things that from one perspective or level of analysis seem solid and from other can seem liquid. o North Atlantic Ocean: pretty solid. Currents, main current goes in one direction, but smaller currents go in every direction. Interdependencies, hierarchies and subtler barriers - Socio-economic characteristics of capitalism as a system of production and distribution. o Capitalism demand growth to maintain itself in the long term. o It requires profits to survive. o It requires new markets to expand as old markets become saturated. These markets can be found overseas or marketizing new spheres of social life. o It seeks cheaper inputs to lower the cost of production, in terms of materials and labor. o The goal of capital in capitalism is to produce more capital. It is not the production of socially necessary products, the production of jobs, the preservation of the environment. - - - o Capitalism used land and labor as commodities. Real state agencies, selling of land. Work contracts, we sell our ability to work for a time period. Interdependencies of Commodities: Global Commodity Chains o Commodity: Anything produced to be bought or sold on the market. Of workers: the global division of labor (class, race and gender). Of Law: what kins of law? From trade to human rights o You can’t have global trade without law. Laws have to guide trade. o Laws in whose favor? o WTO Of Governance: States, Intergovernmental Institutions and Anarchy Of Space: Control, integration and path dependency o To what extent does globalization affect forms of special control and integration? Of technology and information: neutrality, control, knowledge, propaganda o Who controls technology and what are the implications of this? Interdependent Global Chickpeas “IMARC’s latest study “Chickpeas Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2018-2023” has segmented the market on the basis of key regions. Currently, India represents the largest producer of chickpeas accounting for around 70% of the global production. India is followed by Australia, Pakistan, Myanmar, Ethiopia, Turkey, Iran, Mexico, Canada and Russia. Among the top exporting countries, Australia represents the biggest exporter of chickpeas accounting for more than onethird of the total global export volumes. Australia is followed by Russia, India, Mexico, Canada, the United States, Ethiopia, Argentina, Tanzania and Iran. At present, India represents the biggest importer of chickpeas accounting for around one-fifth of the total global import volumes. India is followed by Bangladesh, Egypt, the United States, Algeria, Pakistan, Spain, United Kingdom and Turkey. Food Miles: Distance in the food system Globalization with a Capital G - - Globalization as an analytical term: the processes that we can see taking place, that we can analyze. (small g) what exists out there Globalization as a political term (capital G) what you want to exist For proponents/critics of neoliberalism (set of policies that are reflective of a laissez faire open economy capitalism). o Use both uses of the term globalization, the second referring to what they want to exist. Sparke definition: not just describing what is but what you think you want it to be. “A set of terms and arguments about the nature of reality that are tied together in a narrative that systematically shapes the reality it purports to describe.”— Matthew Sparke, Introducing Globalization, p. 29 Major schools of thought on globalization - Hyperglobalization Thesis: globalization is new and has a logical end point. o International trade and finance drive the process, G as a primarily economic phenomenon that has follow on effects on other areas. It will lead to a completely integrated economic system. o Neoliberal variant Pro free market, minimal interference. The consolidation of global capitalism in the free markets is good as it will allow people to develop their full potential. Concentration of resources in the hand of people not - - governments, meritocracy. People with resources will want more and between resources. o Neo-Marxist Variant The consolidation of global capitalism will generalize the inequality and division that exists in all states and will lead to the exploitation by those in powers. Skeptical Thesis: o Globalization is nothing new and will likely lead to greater fractionalization. o The world is no more interconnected now than it was in the past. The nature and extent of economic interconnections is still controlled by states, still the most important players in the international system. o Globalization will not lead to cooperation between sates and cultures but lead to more conflicts. The more pressure comes from the outside the more people will fall back on what they know. Transformationalist Thesis: o Globalization is changing the world, but the outcome is uncertain and subject to change due to the agency of states, institutions, and people. Globalization is changing the world, but it does not have a clear endpoint. It is subject to change depending on what people do. o Not everything is dependent on the economy. Separate effects on different spheres of society. o G is not uniform, complex patterns of winners and losers. - Geographic spread vs functional integration (production processes). How new is new? “ The need of a constantly expanding market for its products chases the bourgeoisie over the entire surface of the globe. It must nestle everywhere, settle everywhere, establish connections everywhere.” –Karl Marx, The Communist Manifesto, 1848 The 13th Century World System Global trade, 1914 Global food system (Clapp) - Distance: not just physical but mental as well. Power differentials in the food system Environmental impact Corporate power Nutritional consequences Food security issues - Change in the 80s, move towards neoliberalism, open markets. - What are they exporting: grain, corn, soy. Changes on diets, on what we consume. Dependence on imports/exports to feed the population. Middle spaces of the food system - o The relationship used to be more direct between producers and consumers. o Traders, processors, retailors as intermediaries. Obtain the large majority of profits. Increasing importance of global financial and speculation in the food system Evolution of the Global Food System - State-Led Industrialization and the Global Market Expansion Agricultural Trade Liberalization o Through the WTO mainly. Adoption on the agreement on agriculture. Corporate concentration. Financialization. T2: THE CHANGING GEO-ECONOMIC MAP OF THE WORLD Violent Borders Chapter 5; Maps, Hedges and Fences: Enclosing the Commons and Bounding the Seas Enclosing resources - Territoriality: attempting to influence or control people, phenomena or relationships by delimiting and asserting control over a geographical area. Private Property and the Midlands Revolt - At core, questions about access to land and the right to control it. The Peace of Westphalia Geography, Movement and Control: The Political Economy of Place State, Borders and Movement - At the beginning of 19th century, “three-quarters of all people alive were trapped in bondage against their will either in some form of slavery or serfdom.”—Jones, p. 74 - Direct slavery and servitude in West replaced by other forms of restriction of movement. - o Debt peonage: working to pay off a debt. Still the most common form of modern-day slavery. o Vagrancy Laws o Europe and the US (after Civil War) o Prisoner-based labor markets One of the state’s prime functions has always been to control territory, resources and movement. o The Law of the Sea Convention The Caspian Sea: Is it a Sea, or is it a Lake? And who cares? - 2018 agreement: It is neither a sea or a lake Surface is treated as sea Beds are treated through bilateral agreements of littoral states Oil and gas under it State, borders and movement - The State as accountant - Legibility and vision o Done through the institution of citizenship itself. New category of belonging, prior to the 19th century the concept didn’t exist. - For people: citizenship was the key mechanism. - The state as institution of surveillance. The Age of the Document - Documents are ubiquitous in our age. - Prior to 20th century the right to move was primarily based upon characteristics of either race or class. - From the beginning of the 20th century on, the right to move became increasingly based on documentary status. - Codified through legislation: o Passport o Fingerprints o Censuses o Birth certificates o Biometrics Global Border Regime - Prior to 1800, the focus of control over movement was primarily within states. - Between 1800 and approximately 1880, there was a migration window. - From 1880 onwards, the focus of control has been primarily among states. Borders and the Poor - Over the course of the modern globalization period, concentration of wealth has increased. - Wealthy states, technological change, and the right to movement. Enclosing resources - The Midlands revolt of 1607 - The establishment of territoriality - “Prior to the modern era, much of the land in the world lay outside the exclusive control of emergent states.”—Jones, p. 93 Jones on bounded spaces - Bounded spaces: o “Today, by contrast, from the moment an individual is born to the moment they die, they live in a multitude of overlapping bounded spaces that affect every aspect of their existence. These lines include international borders, state boundaries, county boundaries, city boundaries, city council districts, police precincts, fire-station districts, school districts, electricity grids, trash-collection areas, neighborhood boards, gated communities, and private properties. The list goes on. Although many of these lines are invisible and permeable, they affect quality of life in terms of the availability of public education, infrastructure, government benefits like health care of Social Security, the right to free speech, and access to economic opportunities.”-p. 93 Mapping the world - From enclosure to the realm of private property - In terms of land and water, mapping became key - Europe exported mapping - Accumulation by Dispossession: centralization of wealth and power in the hand of a few by dispossessing the private and public entities of their wealth or land. Always look for the geography behind the data - Increasing rights for women On population Growth “So much for notions that the world is ‘flat’ or ‘flattening’: these projections may prove to be faulty, but they confirm that the poor will form an ever-larger majority in an increasingly unequal world”-p. 80 European Population - Aging population: taxes issues, social infrastructure issues. Declining labor force, raise retirement age. Fertility rate 2020 Fertility rate correlates with levels of poverty. The poor will form an ever-larger majority in ... Urbanization - All continents will be over 50% urban by 2050, huge change specially for asia and Africa. - Demographic changes will lead to political and economic and geostatistical and military ones. Core and Periphery - Roulette of birth: opportunities based on where you happen to be born. “This means that geography and place still exert formidable power over the huge majority of the world’s people, whose mobility remains constrained, their cultural baggage commonly unadaptable, their resources limited, their health imperiled, their hopes dimmed. More than a billion of these people are the poorest of the world’s poor, the sickest of the sick. Another billion live on the edge of penury. At a time of reviving ideological (this time religious) extremism and dissemination of weapons of mass destruction, this is a ticket to catastrophe. Proclamations of a flat or flattening world may cheer the literati in the core, but not many beyond the barricades.”-p. 89 Population Density - Population causes environmental stress. Light pollution Global Shift in GPD, 1700-2008 Core/Periphery Production Model - - The model suggests that they represent patterns of production, noy geographical countries. Ex: India is a semi peripheral country, but in certain fields it is nearly core (pharmaceuticals, data). Most trade takes place within the core. Major exports by country Global Trade Patterns, 2021-2031 Global Trade Patterns Growth Rates, 2021-2023 estimates Industrial Production, 2019 Service Production, 2018 Cereal Production, 2018 How do TNCs establish themselves in other states? Foreign Direct investment (FDI): direct purchases of existing companies in another country, or the investment of capital to build your own industries. Main way transnational corporations expand their operations. o Purchase of existing companies: Mergers and acquisitions. o Green field investment: building your own factories in other countries, involves purchasing land. o Portfolio Investment: the purchase of shares in existing domestic firms in other countries. - Most FDI and Portfolio Investment comes from Western TNCs. o Historically, most FDI and Portfolio Investment takes place in other developed countries. o These patterns ARE changing, but slowly. Existing FDI stocks (Inward and Outward) - Increase in inward FDI flows; sectoral distribution, 1990-2017 - - - Overall volume of inward FDI stock: o Shifting sectoral concentration in the context of a massive increase overall. 1990--2 trillion dollars 2005/7 (average)—14.8 trillion dollars 2017—30.5 trillion dollars Distribution by sector (Value of cross-border M&A Sales) o 1990: Primary products: 9.88% Manufacturing: 42.2% Services: 47.9% Total (millions of dollars): 98,050 o 2017: Primary products: 10% Manufacturing: 36.6% Services: 53.4% Total (millions of dollars): 398,899 FDI is very cyclical. Concentration of FDI in 2019 Developed and Developing Countries: CIA and IMF Definitions - Developed: those with more than 15k per capita income - 34 developed countries and 126 developing • “Developed” countries are those with per capita incomes greater than $15,000 (excludes 8 OPEC countries with per capita incomes in excess of $20,000). • There are 34 “developed” countries on the CIA and IMF lists, though 4 of them are different on the two lists • Approximately 15% of the world population lives in DCs • There are 126 “developing countries” (those with incomes less than $15,000 per capita) • There are 44 “least developed countries” (those with per capita incomes less than $1000) • Approximately 85% of the world’s population lives in “developing countries”— LDCs, LLDCs, and SIDS. • On a per capita basis, in terms of FDI that means: $566/per person in the Developed Countries, and $130/per person in the Less Developed Countries Impact of FDI on economies—dependence and crisis T3: GLOBAL COMMODITY/VALUE CHAINS A simplified analytical framework of the global economy Major governance institutions in the global economy - Top: international organizations: UN, World Bank, IMF, WTO Next: regional organizations: G20, G7, EU, ASEAN, APEC; NAFTA... UN System - UN Security Council - Mandates: what is the mandate of a particular org, what do the member states allow this organizations to do. Global Value Chains - Definition p.87-88 “[Global value chains] highlight the relative value of those economic activities that are required to bring a good or service from conception, through the different phases of production (involving a combination of physical transformation and the input of various producer services), delivery to final consumers, and final disposal after use.”—pp. 87-88 - Materials, semi-finished goods and final products flow in one direction. - Information and money flow in the other direction. What is a commodity? - Something that is produced to be exchanged through the market. o Produced explicitly so it can be bought and sold for money in the market. - Commodification: turning something into a product that can be bought and sold - Commodities = both “goods” and “services” - Trade balance = exported goods minus imported goods & services - Commodity fetishism: focusing on just the product and ignoring how and where it’s made. Value in of it itself, ignoring the value of labor involved. - Examples of commodity fetichism all around us o Head of a lettuce: you don’t know where it comes from, or who great it, but we give value to it and turn it into a commodity. - Capitalism treats labor and land as commodities. The classic capitalist commodity chain - Capital buys labor and materials to engage in commodity production which are then sold and disposed of. Inside the complexity of the contemporary commodity/value chain Not New, but global commodity/value chains have changed - 19th century: Raw materials and finished goods–periphery and core - 20th century: vertical integration and national economies - 1970s onward: increasing horizontal integration: geographic extensity. - Cost of transport: drop around 1960 What are the net effects of today’s global commodity/value chains? - - The shrinkage of distance- “time-space compression” o Illusion that geography no longer exists, ability to get things and get to places in little time. Ex: Amazon Prime. o It becomes an expectation, not a luxury. Increasing demands for free trade: o More oppositions to free trade as force in favor of free trade increase Creation of increasingly global markets Creation of global networks, but o There is a triangular concentration of global trade o EU, NAFTA... o Increasing global movements of components. o Increasing amount of global trade is intra-corporate. About sourcing efficiency but also about using global interconnections to minimize taxation and maximize profit. Financialization The shareholder value revolution beginning in the 1980s shifted power in corporate governance from managers to shareholders. . . This resulted in a change in corporate strategy from the . . . concern with firm growth, through retaining profits and reinvesting them, to an emphasis on shareholder value and short-run return on investment through downsizing the firm and distributing a greater share of profits back to shareholders. . . - - Turn to a more short-term perspective on maximizing shareholder profit rather than on increasing and expanding the company. Pressure to get profit to shareholders goes up. Global Value Chains as arenas of contested relationships The nature and role of TNC in GVCs o Companies that have the power to control and coordinate processes and transaction of a company in more than one country. o Size and resources allow them to take advantage of geographical differences in production and in state policies? o Geographical flexibility, switch operations at the international and global level. o States are regulators of GVCs Capital can’t simply move all the time at the drop of a hat. TNCs can move, but only from one state to another, limitations. o CSOs, Labor, and Consumers in relation to GVCs Nature’s Evil- Commodities and Politics - Structure of the argument in the book o What becomes a natural resource is determined by humans. o What impact do the inherent characteristics of the raw material have on the particular the commodity? o The method of processing the NR is important to understand because it defines the nature of the labor process. o Institutions that organize the labor and derive the income from the raw material. o Political features of states and how... Sugar and Spice and All things nice - - - Salt - We can’t survive without salt, we can consume a limited amount of salt, our body knows when to stop. Sugar is consumed in unlimited quantities. Addictive commodity. The more it is produced, the more it is demanded. Addiction becomes societal, imitation. Salt and Sugar supply and demand. o Increasing demands of salt come with increasing population. o Sugar: supply drives demand. Commodities addictive and toxic. Tea, coffee, opium, oil. The Junkies of Empire: tobacco, sugar, opium, tea supported British power. Jevon’s Paradox: increase deficiency of resource production increases consumption of the resource. Trade: extensive and local Salt, monopolies of trade and political power. Venice. The pattern of extractive industries Heavy commodities versus Light commodities Rubbing salt in wounds Sugar - Production ecology, labor and politics o Sugar degrades land, unlike salt. o It leads to furthering of slavery. - Commodities and class structure o Consumption is driving the sugar industry. - Sugar and profit, “how sweet it was.” - Aftertaste: sugar, revolution and innovation Global Industrial Food Market (Food Chapter 2) - The globalization of the food system has fundamentally changed the nature of both what we eat and how we eat. - - Is this transformation in the food system for the better or for the worse? Post WWII global food regime Industrial model of agriculture o Mercantilist policy to benefit US agricultural interest. o Large scale agriculture production, heavy use of pesticides... o Export of this model to the rest of the world. o Characteristic: Involves heavy capital inputs, expensive. Use of hybrid seeds. Involves monocropping, growing the same thing over huge areas (fence-to-fence agriculture). Requires mechanized irrigation system and more mechanization in general. US agricultural policies, 1945-1970s o Subsidizing farmers to make sure they stayed in business. o CAP: Common Agricultural Policy (EU)? The Green Revolution - Exporting the industrial model of agriculture Required adopting the entire package of policies and methods Results are uneven. o Worked well in India, Mexico. o Provided market access to US and European transnational corporations. Crises in the Food System - - - Latest: COVID and war in Ukraine. Massive price increases for food in 1970s o Bad weather, bad harvest, rapid spikes in food prices. Oil Shock of 1973 o Shipping costs increase. o Production prices increase. Changes in US policies after 1973 o Nixon administration, free market. Ecological crisis: biodiversity and nutritional diversity Effects of monocropping: o Monocropping, fence-to-fence planting. Pest control becomes a bigger problem. o Higher use of water. o Market. Susceptibility to market conditions and demand. Market volatility and food insecurity Meatification of diets o CAFOs: concentrated animal feeding operations The Clothing Industries - Fibers, Textiles and Garments The focus here in on the Garment industry - Tensions between the developed and the developing countries over trade. o General Agreement on T and Trade: predecessor to the WTO. Nature of the labor forces. o Differs a lot. Changing rules and changing nature of the industry The clothing production circuit Characteristics of the garment industry - Highly fragmented organizationally - Relatively unsophisticated technologically o Low capital and technological requirements o Perfect for lesser developed countries o No need of a particularly skilled labor force. - Outsourcing is particularly prevalent. - Labor force is overwhelmingly female and young. - Rapidly changing market due to diverse and unpredictable consumer preferences - Buyer-driven industry (i.e. corporate buyers). - Relatively skilled and cheap force in Eastern Europe. Closer. Dynamics of the Garment Industry - The Global Shift in Clothing and the MFA - What drives the industry? - Labor force and working conditions. - Technological Change, Retailer Dominance, and their implications. - Environmental implications: T4: RISE AND FALL AND RISE (AND FALL?) OF MNES, MNCS, TNCS - Premodern Precursors to TNCs Modern MNEs took off in the 1870s o Railroads, steamships, cables. In spite of political, military and economic challenges, continued to expand until 1930s. Basic infrastructure to 1930 - Transportation was key early - Primary Production o Raw materials - Extraction: o Oil and related industries - Transport companies - Placement of cables from 1852 - o Reduced communication time from months to minutes Transnational system built by these corporations TNCs and the Culture of Empire - Export of US and European managerial styles - Export of US values of consumption and consumerism o The colonial gaze: modernity, gender and exoticism. Singer Sewing Machine corporation. Look at ads. International Harvester Heinz TNCs in the global economy today - TNCs from the 1930-1980s o WWII caused economic catastrophe. o Spread of communism, process of decolonization Imposition of regulatory control over investment in India Political and economical phenomenon o By 1970s-80s global economic systems reemerge. USSR falls, China reenters global economy. - Today: o Most remain based out of the US, Europe, Japan 92% headquartered in 6 countries. TNCs headquartered out of India. o TNCs account for 2/3 of global trade o Largest 100 control 20% of global assets. o The relative power of states and TNCs Look at chart Top 100 countries/corporations Impact of TNCs on host countries - Widely admired and widely disliked - All states want and compete for FDI - Liberalization of rules governing FDI - State policies regarding TNC operations o Export processing? - The Race to the Bottom argument - The Footloose TNC argument o Pick up and move whenever they want, not entirely true but they are very flexible. - Seen by some as highly efficient, productive, innovated, they provide jobs. - Seen by others as exploitative, environmentally rapacious, uncaring about communities they operate in. The reality is both at the same time - Pros and Cons of TNCS for Lesser developed countries o Pros: increased availability of capital, access to advanced theology, management expertise, marketing ?networks o Decrease capital for local business, what has to stay in the country and what can leave (repatriation?), environmental problems (environmental transference). Agricultural TNCs - Clapp Chapter 4 - Importance of technology historically - Replacement of ingredients: economic and political issues o Concern over concentration of power in the food system. - Importance of states o P. 102: trade rules established by states. - Importance of international institutions o Agreement of agriculture within the WTO - Concentration of power in the food system o Producers and consumers on the other end. All relationships are channeled through then hourglass of the international food system. Middle controlled by traders, processor and retailers. o Not just the fact that P and C don’t really interact, but the intermediaries are almost entirely very large very powerful TNCS Levels of concentration - ADM... Sources of corporate influence - Price-Setting o Big corporations can set prices. - Slotting Fees for retailers o Cost that companies pay to retail stores to get the product in a prime spot. - Private standard-setting o Big corporations who set their own standards for food. They have a lot of power to enforce them. - Lobbying o Big agricultural TNC yield a lot of influence. Not a good or bad thing, just something to be aware of. T5: GLOBALIZATION AND CULTURE - General arguments and questions. o Is this a case of the spreading western hegemony of pop culture and values more generally? o Is globalization leading to the homogenization of culture? Cultures are being eradicated, homogenization on western terms o Or are there countervailing forces that are leading in different direction, towards regionalism, hybridity and localism? o How strong are the forces tending toward the preservation of local and national cultures? Right-wing populism, backlash. Bolsonaro, Lepenn, radical Hindu nationalism. What is culture? - A set of discourses, traditions, behaviors, artifacts, texts and so on o Social construction and articulation and reception of meaning o We are part of many cultures. - That creates a particular identity and understanding of the world. - Particular importance of national culture in this context o States still have a lot of power to construct national identities within their borders - Culture as coercive and as empowering - Def o Language shapes how we think and what we think about. Dominance of English. It sets the terms of debate, the terrain of culture. Ex: Who has the power to define concepts like family? Globalization, Political Economy and the structures and discourses of power - Gendered nature of globalization - Class conflict and ethnicity o Difficult to disentangle class, ethnic and gender conflicts. - The culture of the market and the market as culture o Changing what is for sale. Pressure for marketization of healthcare, caring for elderly and children, death and birth, and wedding industry. T6: GLOBAL GOVERNANCE - Intergovernmental organizations - Building cooperation that goes beyond just the institution. o Help overcome the prisoners dilemma of noncooperation. - Embedded constituencies, people who have vested interest in the continuation of the institution. Political issues and governance - Multilateralism North America Free Trade Agreement Iran Nuclear Deal- IAEA North Korea, NPT, UN sanctions Russia: US and EU sanctions: SWIFT UNESCO: cultural heritage and more Paris Climate Accords Managing the global system: IMF, WTO and World Bank - The IMF’s original mandate o Modeled on the Marshall Plan Main objective: to provide emergency loans/support for countries in crisis o Keynesian economics: when an economy is in crises the state needs to step in. Record of the IMF - Controlled effectively by Financial ministries. o The decisions about loans made by people within financial institutions: serving the interest of the global capital. - Moved from Keynesian approach to neo-liberal (free market) approach in the 1980s. o Weighted voting, weight determined by the amount of money provided to the institution. Powerful countries can block any proposal they don’t like. - Joseph Stiglitz- former head of the World Bank - The case of the Soviet Union and Russia o First major moment 1990, still USSR, Gorvachov and Yeltsin. They went to IMF with a plan for reform to a market economy. The IMF said no, too socialist. Deepened the crisis. The IMF was complicit in the collapse of the Soviet Union. o 1993: conflict between Yeltsin government and Russian government. The IMF supports Yeltsin. If parliament budget for reform was adopted, loans to Russia would be cut off. Wanted Yeltsin more radical plan for privatization. o Valuate all assets and set up a system to change from state-owned to private. IMF pressures Russia to move quickly. Privatization process ripe with production and completely disorganized. T7: GLOBALIZATION AND THE STATE The State - Monopoly of the legitimate use of physical force: this doesn’t mean there are no other organizations, individuals who use violence but not in a legitimate way. Sovereignty and Autonomy - Thirty Years War and Treaty of Westphalia - States have both internal and external sovereignty. o Internal: nature of the state institutions. No one outside the state can determine what it does within its territory, interfering in internal affairs of nations. o External: interstate relations, recognition in the global o Treaties, alliances and diplomacy. Only states have the roght to be a part of this. o Juridical equality. State capabilities - Physical attributes: size, population and geographic location Economic resources, technology, productivity Military capabilities Institutional strength Social cohesion; strength of loyalty to state: elites, population France is a continental power; UK is an island. Problem of being invaded easily, England need only navy. France needed to have a large standing army plus navy. Relative Power of Actors in World Politics - - - Relative power of states vis-à-vis other states: juridical quality of states vs reality of power (resources, capabilities). Relative to other multinational vs transnational actors: states ability to tax, to conscript armies vs TNCs with global value chains. o Is it about the real power of TNCs or about the weaknesses of states? International law and human rights conventions o To what degree do they impose limitation to state power? No real imposition Subnational threats to states: interstate war has been less common that intrastate since WWII. Challenges to individual states vs challenges to the state system o The Westphalia system o After the nation state what Globalization the state system - Undermines the structures and the rationale behind the entire state. Economic globalization renders states incapable of managing economic space. Transnational corporations have more power than states in some cases States lose control, need for new systems of organization. Politics will eventually follow economics. Globalization undermines the state system by increasing the importance of supranational and subnational identities and affiliations. Globalization, the state and national identity. Globalization creates multiple forms of governance - The state system will continue, but with diminished and/or more functionally differentiated powers. Globalization creates interconnections and problems that states alone cannot address. o More efficient/convenient to have international organizations control certain aspects. - - o Individual states cannot lead with human trafficking. Example of problems that need cooperation. INTERPOL, UN office of Drugs and Crime This crates the need for international institutions and cooperation. o Consensus that non-state actors can deal with certain issues more efficiently. o Not exactly replacing the state but adding to state functionality. o Multilayered governance. Not competing but complementary. These are or should be complementary systems, not competing ones. The state system is not fundamentally affected by globalization - - Extensity and intensity of globalization is still fundamentally determined by states themselves. Globalization is determined by the will of states. States need to adopt policies that allow globalization to happen, if it doesn’t want to do so it can. SKEPTICAL Globalization is not the dominant factor in the lives of states or people- that is, the effects of globalization are overrated. People are deeply attached to national identities and does not change that, it actually can reinforce it. The more societies feel pressures from outside, the more likely they are to double down on what the know. Competing arguments: Economic side o Capital and TNC are powerful, but they can’t tax, control flow of people, can’t raise armies. o Which actor is more powerful over all, it all depends (relativistic). Multilayered governance o Most IOs function at the behest of sates. o Yes but still within the context of mostly multilayered institutions made of states States are not effective o Depends on the state. Weak, strong, fractured... Globalization and Democracy - - Globalization undermines democracy (Hyper) o Sovereignty compromised at a certain level. Who we elect means less that it once did, globalization is going to dictate politics. Globalization provides the bases for or improves the changes of democracy (Transformationalist) o Globalization about development and enrichment through trade. Increase the size and power of the middle classes. o Liberal argument (The Economist, section on global markets) o Globalization puts limits on state power, but this is a good thing. - - The effect of globalization depends on politics; there is nothing necessary about the relationship. (skeptical) o Its easy to blame or give globalization credit. If globalization spreads a form of democracy, is that necessarily a good thing. EXAM - Global value chains include not just the physical commodity but also the capital and finance that goes along with it. Functionally the same as global commodity chain. - Heavy, physically embedded in states, light - WTO: what, goal, reason important example of IOs, created in postwar era, helps maintain liquidity in the system. Globalization and the Illusion of Security The Outlaw Ocean GLOBALIZATION, SPACE AND STRUCTURAL VIOLENCE Should I Stay, or Can I Go? - Implications oof large scale urbanization in the developing world. International movement: border regimes, immigration Rise of global cities: resembles more other major cities than the rest of the country its located in. - Speculative urbanism o Global investors Planet of Slums- Introduction - Key questions raised by the book? o What is the dynamic of urbanization? Why is this occurring? o How does economic globalization drive economic urbanization in... o Revisiting the question: what, if anything is the relationship between poverty and globalization, seen through the lens of urbanization? The history and prevalence of slums - Slum: Descriptive term but also moral valuation to it. - UN definition of slum is conservative and restrictive o Overcrowding, poor or informal housing, inadequate access to water and sanitation and Slums by the numbers Dynamics of slums and their evolution - As large as the official statistics are, globally there is a systematic undercounting by states of the numbers of urban poor - Mega-slums: fairly rapid increases. Pressure/stress on the environment, on the people who live there, on states, on IOs, on NGOs. Politically very difficult to manage. - One of the central issues is housing: o Location o Versus cost o The availability of services o The fundamental question of tenure Precariousness, problematic nature of tenure. Property - Squatters: people who occupy space that are owned by others (individuals or government. OKUPAS - Pirate Urbanization o Developers coming up buying up space, land, buildings and selling/leasing/renting to the people who want to live in this areas. - Substandard Commercial Residential Subdivisions (SCRS) o Planned Layouts: o Low service levels o Suburban Locations o High Tenure Security o Non-conformity with urban development plans Slum Ecology-The environment and urban poverty - Slums begin with bad geology - The mathematics of slum ecology o Risk (possibility of death, homelessness and joblessness) Equals: o Hazard (frequency and magnitude of natural events) x o Assets (population and structures exposed to hazard) x o Fragility (physical characteristics of built environment) Natural hazards - Floods - Fires - Earthquakes: most victims poor o Cheap material get crumbled easily. Globalization, Ecology and Class - The effects of natural hazards, compounded at times by state policies... Urban development and Slum Ecology - Traffic: increasing accidents and pollution issues. Focus on private rather than public transport. Migration and Globalization - Migration is globalization in one sense. Modern globalization and its effect on migration o Economic terms o Infrastructure: solidity/liquidity, transportation infrastructure has expedited migration Communication, technology. Documentation: identification documents o Social and cultural terms o Political terms Types of migration - Settlers: colonial politics. Contract workers: legal documented contract people working in other countries for not long periods of time. Professionals: TNCs workers. For discrete periods of time (around 5 years) Undocumented workers Refugees and asylum seekers Migration in historical perspective - - Migration today is not as extensive as in the past o Peaked in the early 20th century o Increase since the 1960s, but downturn since 2001 So why Is immigration such a hot-button issue today, particularly but not solely in the US and Europe? The changed context of modern globalization - Historical Context Economic instability of core countries Problem of the dual labor market Globalization and integration Violent Borders - Tension between control and movement: o Quote p.5 History of restricted movement o Castles, enclosures, berlin wall The violence of borders - Direct Violence versus Structural Violence o Concrete persons or actors: police, armies... against people trying to move. o The violence is built into the structure and shows up as unequal power and consequently unequal life chances. o Control over resources-Law of the Sea o Eliding responsibility for action Types of violence - - The overt violence of border guards The use of force or power that increases the chances of injury, death and deprivation. o Ex: Cutting off essential services (power, water, roadways), sanctions, destruction of infrastructures, local environments. o Not targeted at individuals, but rather using mechanism to increase the risk for people. Threat of violence necessary to limit access to land or a resource. The violence that borders do to the economic well-being of people. The direct harm to the environment that border security systems inflict. Lessons of EU Borders - From Nador to Horgos: Outsourcing violence in the EU Expanding the Schengen Area and the militarization of border enforcement Who is to blame? - The policies of European states that make crossing into Europe more difficult? The smugglers who take advantage of the increasingly difficult routes and methods? Opposing rescue missions as “an unintended pull factor” GENDER AND GLOBALIZATION - - Impact of globalization on women o South and North o Urban and rural o Rich and poor o Regional particularities Spheres of social life and the impact of globalization Economic Social/cultural Political - Interrelations among these spheres Globalization and women’s employment - Increasing percentage of women worldwide joining the labor force. Gendered nature of global production and reproduction. Globalizing Capital, Globalizing Labor - Hiring women versus feminizing jobs The first is a quantitative measure of the number of women in the labor force, overall and by sector. The second is a qualitative construct on how different jobs are coded as masculine and feminine. Labor and patriarchy Globalization and the relocation of work Relocation of work continued - It is not just about low wages... Tultex and Liz Claiborne in Mexico EPZs and women’s labor - - Subcontracting, offshing Not all is unskilled low end work, but the majority is. Extra-territorial sites: the laws that apply in the rest of the countries do not apply inside them. o Companies can do what they want inside these EPZs Highly feminized labor forces. o Young women, relatively unskilled, seen as hardworking and controllable. Patriarchal structures preexist globalization. Capital and patriarchy. The path-dependency of feminized labor Versus empowerment? Video - Purchasing Power Parity Global Reproduction Network - Nature of migration and womens labor Women in the labor force, North and South o Women in the North face a care deficit o Elite women turn to migrant women, driving the feminization of migration. Women of the global south go to the global north to do the caretaking work that the women in the global north don’t want to do. Men don’t help Transfer of sentiments - Migrant women are mothers themselves: Extended families and communities care for children Migration and remittances Global Economy and Gender, Race and Class - Interface of gender, race and class relations The analysis of the double burden for women... o Bias built in to think this affects more women in the global south than in the global north. Gender Inequality in the US - The most persistent form of structural inequality remains in the workplace. - Women are overrepresented in contingent, casual and nonstandard jobs as well as the low-wage service sector. - As with women globally, more American women are active members of the labor force. - Women spend on average... Occupational segregation - Low wage job sectors Occupation and gender ideology Women’s political participation: A Global View - Why have women succeeded in gaining political power in some places and not others? - Regional differences are quite marked o Parliamentary representation o Top leadership positions o Laws regarding representation-debates over quotas Important cultural factors affecting women in politics and globally - Religion - General cultural beliefs regarding women’s status - These cultural factors affect both the supply side and the demand side of politics Gender, social structure and Politics - The extent to which women will become involved in politics - Series of factors to consider o Money o Time Women’s Representation and Political Systems - Democracy, Semi-authoritarianism and Authoritarianism - Electoral systems - Nature of political parties - Quotas Transnational advocacy networks ENVIRONMENT Climate Change numbers/scenarios - RCP2.6: if everyone gets behind environmental policies (left) RCP8.5: no significant global climate policies are put in place (right) Species survival chart Nationally determined contributions - Voluntary - No consequences, no enforcement - Problems with global governance we see in other areas Climate change and global governance (Christoff and Akerlee?) - Globalization and ecological disconnectedness - Consequences of the products we consume in other parts of the world, local environments. - The emergence of GVCs has the potential to reduce that sense of distance and alienation, we become dependent on the robustness of these GVCs and this will make us think about their impact. - Accountability crisis: at the heart of the failure of environmental global governance. Failures of Global Governance - The state system and the environment o Based on anarchy, exclusive territorial rule. International agreements bound to consent of states. - Effectiveness of existing environmental agreements: - o Not reconstructing global environmental institutions but trying to get around limitations. o There are a lot of agreements, they have made a difference but not that much. Failure to integrate economy and environment. Environmental movements: US and Global - Geographic range - Trajectory from local grievance and localism to broader linkage o From NIMBY to NOPE o NIMBY: not in my backyard (not getting rid of pollution but getting it out to someplace else) o NOPE (not on planet earth) o Increasing involvement of communities of color over time. Grassroot environmentalism today-US - Growth of the movement First the focus was on conservation, from 1960s on it becomes more activist and grassroots oriented. NIMBYism to NOPE in the US movement Race, gender and environment in US movement Specific strategies and goals Radical environmentalism Environment and MIC Global environmental movements - Environment and Development o Korea and Taiwan o Southeast Asia o China o India Origins: local conditions and material existence - Not guided by some overarching ideology of environmentalism - Origins in questions of resource control - Once begun and mobilized, connections are seen and linkages made to regional, national, and international organizations. - Different States: different POS issues Women as leaders Religion as movement catalyst - What makes religion so important in mobilizing and framing environmental issue? Unconventional Protest and Mobilization -
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