World Market

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Acronyms:
EOP: The End of Poverty?...
NIS: Nectar in a Sieve
WST: World System Theory
ODL/NDL: Old and New Division of Labour
WMB: White Man’s Burden
TWCs: Third World Countries
SV: Structural Violence
SAP: Structural Adjustment Programme
WC: Washington Consensus
MNC: Multinational Corporation
Essay topic: Applying the World Systems Theory,
compare the causes of Rukmani’s poverty in Nectar in a
Sieve with the causes of poverty of those in the Third
World countries as presented in the DVD: The End of
Poverty? Think Again.
Build a comparative framework using all of the following
themes and concepts. Illustrate each concept with
examples from the book and the DVD:
1. Power: Colonialism vs. Neoliberalism
2. Technology of Control: Factory vs. Structural
Violence
3. Labour & Unequal exchange: Subsistence vs. Export
production
4. ‘White Man’s Burden’ (WMB) & religion:
Missionary vs. the Bible/ Church
Integration into the world system: Power; Technology;
Labour: (cont’d):
Power: (two periods: colonial, neoliberal)
• Colonial: Core’s imperialism (total political control)
• Neoliberal: Core’s market control of capital
Technology of Control: Factory vs. WC & SV
• Colonial extraction for mother countries’ industrialization
• Corporate global oligopoly for capital
accumulation/investment
Labour: ODL (colonial) and NDL (neoliberal)
• A single division of labor within one world market:
Core controls capital and Peripheries supply cheap labour
and raw materials
North-South global Integration into the world system as
Core-periphery: Power; Technology; Labour; WMB.
•Core countries:
• P: Hegemony by military power
• T: Industrial mass production
• U: Appropriate much of the surplus of the whole
world-economy
• DL: Concentrate on higher-skill, capital-intensive
production
• Peripheral countries:
• P: powerless & poor economies
• U: market-imposed low trading value & cheap labour
• DL: focus on low-skill, labor-intensive production
and extraction of raw materials
Thesis: (1st example)
• WST explains that from colonial times, Core’s imperialism and
neoliberalism have globally integrated their colonies as
peripheries.
• The Core did this through the world market strategies of
ODL/NDL, superior technologies and unequal exchange. In this
context, Core’s missionary and the church attribute TWC’s lack of
development to their attitudes that reject capitalist self-interest.
• This view reinforces the Core’s cultural domination through the
ideology of ‘the White Man’s Burden’ (WMB).
(WST: PUT-NDL)
http://www.youtube.com/watch?v=KbS1VkX3CP0 8.5 min WST explained (see it later)
Thesis: (2nd example)
• WST argues that colonialism and neoliberalism intrude into
the economies of the TWCs, maintain the core countries’
power over the peripheries.
• The core countries integrate the TWCs into the world-system
through their control over the world market using DL,
unequal exchange and superior technology.
• The core countries justify this process espousing the
ideologies of WMB.
http://www.youtube.com/watch?v=LRZnEBFYNS0 2.3 min EOP trailer and WST explanation
of poverty
http://www.youtube.com/watch?v=Yl2ozDglFfg 36 sec have we made it? EOP
Thesis is further elaborated linking given concepts:
•NIS: Colonial power imposes capitalism on a subsistence economy.
http://www.youtube.com/watch?v=Duxkrv4fSe4 (p1) 6.5min
capitalism –Brendan Mcoony
Intrusion of a factory commodifies the land and turns unemployed
tenant farmers as cheap labour. The factory is imposed on Rukmani’s
village as a superior technology symbolizing the superiority of the
Western values.
• EOP: Neoliberalist policies of WB & IMF: SAP & WC,
advance the Cores’ political and corporate interests. These policies
advance core’s control of TWCs’ resources for export production.
They ensure their profit accumulation by resorting to strategies of
structural violence and religious manipulation to control the poor
from rising against economic and social inequities in the postcolonial era.
Hypothesis 1: Power: Impact of the Core’s world market
hegemony on India & TWCs
Hypothesis 2: Technology: Cr controls the political and
economic power & superior technologies to make
decisions on Peri.’s land and resources. In Peri., control
of resources shifts from the community to the market.
Hypothesis 3: Labour: Through ODL & NDL, Cr’s
capital indebts and exploits Peri’s cheap labour to
enhance its capital accumulation.
Hypothesis 4: The Ideology of the “Whiteman’s Burden”
(a blend of colonial/neoliberal power & religious
ideology) discredits TWC’s local values as reasons for
their poverty.
Core’s
Power
India under Colonial
capitalism (NIS)
Technolo
gy:
Manual
&
Machine
Power:
Total
Colonial
Control
Labour:
(ODL
& Debt)
Subsiste
nce &
Waged
Third World &
Neoliberalism (EOP)
WMB :
Missiona
ry&
Westerni
zation
path
Technol
ogy:
Advanc
ed
Industri
al
Power of
control:
Structural
Violence
Labour:(
NDL& U)
Cheap or
Slave
workers in
Export
Productio
n
WMB:
The
Bible &
Mental
Coloniz
ation
Hypothesis 1: Power:
NIS: Impact of the Core’s world market hegemony
on India was under colonialism.
EOP: During post-colonial period, Core’s neoliberal
policies enforces its market dominance through its
monopolistic or oligopolistic corporations.
http://www.youtube.com/watch?v=WwuJwLg4XLk monopoly-overview 8 min
(See this yourself)
http://www.youtube.com/watch?v=4-RfPMTk70Y monopoly Flasheconomics 2.33
min
http://www.youtube.com/watch?v=At22KFhPcQY oligopoly 2min
http://www.youtube.com/watch?v=oS2NErFQ9Rk Apple monopolies: economics
video 1.5min
http://www.youtube.com/watch?v=r6Rmy_nKEtI 2.3 min
Caller: Why Does Thom Think Wal-Mart is a Monopoly?
Comparison using the concept of power:
1. Power: Colonial vs. Neoliberal
NIS – colonial power’s total control – capitalist firminvestment in leather –raw material extractionindustrializing a feudal subsistence economy – dismantled
the existing land system- tenants who work grow crops lose
their land - the poor lose access to village common land
and water.
EOP: Post-colonial shape of power- Core’s neoliberal
policies- Corporate capitalism- MNC’s oligopolistic
exploitation of TWC’s resources – unequal trade.
Hypothesis 1
Core’s Hegemony
impact of world
market on India
Tannery
intrudes
Disintegrates
community
impact of world
market on TWCs
First stage
of
integratio
n
AICs’
corporate
capital
Tightens
market
integratio
n
Appropriatio
n of TWCs’
land &
subterranean
resources
The Core (AICs) dominates the development and
transactions of the world market :
World Market transactions:
• Commodity & financial instruments traded globally
• International trade based on power bargaining
• Global financial crisis since 1990s
Core’s (AICs’) power advances from colonial
capitalism to corporate capitalism through the
development of the world market :
http://www.youtube.com/watch?v=fFa3YfWBCrg 0.47 sec Toussaint on begin.- colonialism
16th –mid 20th C: Colonial capitalism in
Nectar in a sieve
Mid-20th C on: Corporate capitalism in End
of Poverty?... (EOP)
http://www.youtube.com/watch?v=WDIvkTIieHo 8min hulahoop how monop is created
http://www.youtube.com/watch?v=aaepg5HQGlw corp welfare 7 min tax evasion
What is Corporate capital: MNCs
• Economic power and ownership of capital is
concentrated in the hands of a small number of
powerful corporations.
• Concentration of capital into large
monopolistic or oligopolistic firms or as
investment capital in banks and financial
institutions
EOP (DVD): Neoliberal policies: SAP & WC
facilitate the power of Core countries’
corporate capital/MNCs
1. MNCs are Direct Foreign Investments (DFI)
2. Neoliberal policies: IMF asks the poor to pay
for educ, health, common resources, e.g.,
land, water (54-55)
3. Capital market liberalization & tax evasion (54
Two stages of capitalist market integration & control:
1. Colonial: (16th C -20th C): Imperial power of the colonizing states profit
from selling colonial countries’ commodities in the world Market, e.g.:
•Rukmani’s village becomes a target
for raw materials for the world market
2. Post-colonial corporate control in EOP: Neoliberal policies: SAP (BLeeDS)
& WC (LAPDog),
WASHINGTON CONSENSUS
Liberalization
Austerity
Privatization
De-regulation
LAPDog
How does Structural Adjustment Program (SAP) affect the Developing countries?
Impact:
Balancing the government budget
Weakening the Labour
Deregulating the economy
Reducing the State
BLeeDS
NeoLib: An approach to economics and social studies in which control of economic factors is shifted from the
public sector to the private sector. Drawing upon principles of neoclassical economics, neoliberalism suggests that
governments reduce deficit spending, limit subsidies, reform tax law to broaden the tax base, remove fixed
exchange rates, open up markets to trade by limiting protectionism, privatize state-run businesses, allow private
property and back deregulation.
Power of Colonial capital & beginning of
market integration: ( “Nectar …”).
• Colonial trade & capital (Mercantile)
(Merchantile capital)
http://www.youtube.com/watch?v=9W4e_rN15xA mercantilism 8 min
• Peri.’s Labour moves to Cr’s capital
http://www.youtube.com/watch?v=dnV_MTFEGIY The Atlantic Slave Trade: Crash
Course World History #24: 11min
http://www.youtube.com/watch?v=4QoXKgo_HDY 3 - A Historical Class Analysis of
Guyanese Society - Dr. Walter Rodney 9.5 min - first 5 min
• Rise of Industrial capital & factory system
Power of the corporate capital & TWC’s
(DVD):
• Cr’s Multinational Corporations
(MNCs)
• Cr’s MNCs’ capital moves to peri.s’
labour http://www.youtube.com/watch?v=_4Ge_y-x1Zw 2009 Jobs move
to Mexico From a Chrysler Plant in Missouri 4.5 min
• Rise of Monopoly capital in the Cr –
oligopolistic MNCs
Monopoly capital: the product of the concentration and centralization of production
Illustrations of Impact of the Core’s world market hegemony on
colonial India in comparison to TWCs in EOP.
India: Colonial control
1. British colonial capital: market (factory: tannery) power
intrudes into Rukmani’s village (26)
2. Disintegrates the community (46-47)
3. First stage of integration into the world system.
EOP: Colonial control:
1. Colonial land tax, appropriation of common land belonging
to the rural poor
2. Resource mining (Bolivia), Dutch in Asia.
India: colonial core’s power (Britain’s) and
accumulation of colonial capital
1. Colonial trade in raw materials accumulates
capital
2. Industrialization process
• Mechanical production replaces human
energy
• Emergence of the factory system
EOP: Colonial capital accumulation& total control over colonies:
) http://www.youtube.com/watch?v=fFa3YfWBCrg (EOP Toussaint clip on conquest) (36)
• Land confiscated & appropriated by colonizers – tax imposed on
heads and huts – people could not pay , Massai forced out of landlivelihood lost- dislocated & land never returned to them .
• Brit- people as property- male labor registration at 16- really slaves –
in 21 C they are called captives/ retained - debts generational – work
for food- 60-80 mil in the world work as slaves
• Brazil’s gold mines – Bolivian silver mines – Spanish debts to
northern Europe did not go to Spain’s coffers. – sugarcane
accumulated wealth in UK and the Netherlands
• Dutch barbaric exploitation of Asia – Amsterdam then London
became World’s fin centre
Post-colonial corporate capital accumulation & market
control (in EOP )
The policies of IMF, WB, WTO, etc.,facilitate MNCs
oligopolistic or monopolistic corporate capital to acquire
TWCs’ resources for Core’s capital accumulation e.g.,
http://www.youtube.com/watch?v=rFL3GY0RU88 debt susan george 1 min
• Core transfers surplus from unequal exchange of
trade and thus create TWC’s debt; Core supports
MNCs monopolistic control over, and extraction
of subterranean resources of TWCs
EOP: Corporate capital- capitalism operates
through the world market:
• Brazil sugarcane ‘slave’ lab is registered –
easier to use this labour by not having to take
care of them - prostitution or informal work
when not hired.
• Newer resources demand in AICs & extraction
of subterranean resources – Angolan war,
Congo, Sudan, (conflicts over power of
extraction )
TWCs: Neoliberal policies: SAP & WC:
MNC’s corporate capital:
Export production, e.g., Bolivia’s drinkable water (Bechtel) (52-53
http://www.democracynow.org/2010/4/19/the_cochabamba_water_wars_marcella_olivera
The Cochabamba Water Wars: Marcela Olivera Reflects on the Tenth Anniversary of the Popular Uprising Against Bechtel and
the Privatization of the City’s Water Supply 2010 - 46 min- with transcript
•
•
Kenya's subsistence land & the Yala dam (Dominion) 56-57;
Subsistence land lost due to Venezuelan govts’(replace what
was grown with imports) 43, & Brazilian govts’ (South
produces cheaper goods for the North) export policies 43:
Trade (subsidy to AIC), debt & MNCs’ monopoly over
resources tightens the TWCs’ integration into the global
market http://www.youtube.com/watch?v=JOVW8qVpEOU Stiglitz on subsidy and
lower income for farmers ( 56)
o
Debt: http://www.youtube.com/watch?v=_PnQdu16RAA sheen on debt etc
Corp.Capital: MNCs business of infrastructure building, power
plants, industrial parks, ports, spiraled the TWCs into huge unplayable
debts – debtor syndrome - you owe us - in return unequal power
bargaining of oil etc., to benefit their MNCs – (Sus George) S is
financing the N - $25,000 a minute – $200 bil/yr.Bolivia’s water WB decision and order – rail roads, airlines, Telecoms,
… and water – Pablo Fernandez to pay daily $7.50 for water while his
pay is $4.50 – (p.56-57)
Kenya’s farmers’ land – appropriated by Dominion gp of companies.to
grow vegetables and legumes – river dam – flooding – no crop for
farmers
http://www.fian-nederland.nl/pdf/agenda/2011_05_10%20Landgrabbing%20RtF%20V.U.G.pdf
Yala land grab 2011- PP slides
Yala& Dominion industries: The End of Poverty? Yala Swamp
http://www.youtube.com/watch?v=0Yzp2JQcBiY 3.50min
Tightening integration into the global market:
Tr, debt & monop.pow .- bring countries that were once
colonies, under control – SAP, WC – Neolib (in LAm- means
restructuring of manufacturing - going back to resource export
-state assets sold off - this made WB consultants rich while
little went to the countries – MNCs bought the privatized
companies - Boli. mine
H. 2:
Through its superior Technology, Cr controls the
political and economic power to make decisions on
Peri.’s land use; In Peri., control of land shifts from
the community to the market.
India:
• Cr’s industrial technology (factory) produces
raw materials on village land that becomes a
market commodity (47)
• Rukmani loses her tenancy ( a customary
right) to cultivate the land (75-76)
http://www.youtube.com/watch?v=hSP-crYjeoE law of value: technology 8.5
min socially necessary labour – jobs &wages reduced by technology
brendancooney
Hypothesis 2
Technology : Cr’s control of Peri.’s land
Factory: industrial technology
Loss of
customary right
to cultivate her
land
Village land as
market
commodity
Structural Violence (Hit-man, CIA,
Jackals , Military) & TNC:
SV &Military
protect flows of
profit for cores’
MNCs
MNC makes
profit/capital
from resource
export produced
on TWCs’ land
Technology (metaphors): Factory vs. Structural
Violence
NIS: Factory technology- changing economic
value of land (p.31;p72)- loss of cultivable land p47disintegration of the village community pp.75-76
EOP: MNCs’ expulsion of the poor from the land
through forced acquisitions – SV to control
TWC’s politics and for the accumulation of
capital as MNCs profits
NIS: India:
Impact of the technology – the factory - on village
land and subsistence farming:
http://www.youtube.com/watch?v=vTLcxny7YSg Inside India: Village Life in Southern
India 14 min The film is from the collection of the West Virginia State Archives. See it
yourself – village life as a contrast to NIS village
What happened to Rukmani’s land?
•Colonial factory’s intrusion turns Rukmani’s land
into a commodity for sale (p. 10, 13, 47, 48)
What happened to local food production?
• Famine as a result of loss of arable land & common
land rights, disintegration of village loyalties and
mutual reliance & support (p. 31,72)
What happened to community’s survival?
Rent exacting middle-man, Loss of village networks
& informal supports (p. 73, 75, 76)
NIS: New technology of control through taxation- Poverty
inevitable due to loss of subsistence land to factory
http://www.youtube.com/watch?v=RUUGBMFpYQY 8 min EIC- zamin-peasants plight (show 4 min)
http://www.youtube.com/watch?v=18Za0mRXe4E 6.5min land rev system-East India Co. (unacademy)
upto 2.26min & 4.40 on
Colonialism changed the ownership of all landed property in
India to private hands and eliminates the communal land
in villages
1. These changes released a mass of landless workers (serfs)
for international labour market
2. Throughout the 19th C, the poor lost their subsistence due
to loss of land.
3. Millions faced famine every two years.
4. Desperate, starving, land-less Indian peasants - British
rule bankrupted the Indian economy.
NIS: colonial technology of control: Rukmani
views the factory as power that intrudes:
http://www.youtube.com/watch?v=OrvmL-RDFtI crops-ploughing-well-constructed.-today’s
Indian village 7 min 2012 (see it yourself)
• Overseer ordering villagers (26)
• Leather worker’s plight (26)
• Land was lost to the tannery (47)
• Increasing officials with power (47)
• New workers brought from outside (47)
• Trouble: strike for better wages (64)
• Firing of workers (65)
• Son killed in factory (88-89)
NIS: Colonial period- Owners’ and investors’ concept of
factory production for the market :
• Land is more valuable as a commodity (31, 72)
• Moneylender: profit from pawn shop ( 73)
• Foreigners: invest capital for extracting raw
material (26-28)
• Zamindar: profits from increase in land value
EOP: Colonial period: theft of technology and destruction
of local industries in TWCs :
•The colonial Dutch destroyed the Indonesian textile &
(Java) ceramics industry to eliminate competition
•The British destroyed the industry and trading of Indian
textiles to build up their own industrialization. Led to
famine & death - undermined the weavers social structure
as they lost their livelihoods; destruction of craftsmen
structures; peasant’s land tenure replaced by the British
land tax
EOP corporate period:
Technology that controls the politics of TWC and profits of core’s MNCs :
SV http://www.youtube.com/watch?v=iJ5IjSPsC1Y 1min johnperkins on mnc and AIC’s hit men
http://www.youtube.com/watch?v=oqdiyY5waMM Economic Hitmen
http://www.youtube.com/watch?v=AynGBMUgdmg Confessions Of An Economic Hitman (1 of 3)
debt–CIA-john perkins-9.5min
In TWCs, importance of SV for the core and their MNCs:
Stages of SV:
1. Economic hit-men
2. CIA’s assassination team
3. CIA Jackals’ Direct intervention
4. Military
• SV protects Cores’ flows of profit & MNCs :e.g., assassination of
countries’ Presidents, CIA overthrow of govt in Iran to protect BP;
direct intervention to execute of Iraq’s Qasim; assassination of Chile’s
Allende for IT&T and copper MNCs; military war against Saddam H
•MNC makes profit/capital from resource for exports produced on
TWCs’ land
EOP:
Impact of the SV as technology of control over the poor
and those deprived of their land in TWCs:
•What happened to the land once owned by the natives
and
the
poor?
(refer: in the colonial period, 50 hectare of land for 1 head of cattle (Bolivia); land tax forced
acquisition (Africa, L.Am, Asia); land for colonial mining)
•In the corporate period. Agri MNCs ( superior business, tech)
appropriate land (with support of Kenya’s govt) in
Kenya.
•What was the corporate interest in TWCs? Unequal
trade; monopoly control over resources; profitable
exports (water, minerals, agri crops)
•Why did food producing land become a commodity?
Privatization of land, profit motive & export
production.
EOP: Impact of superior technology(corporate):
Poverty a result of arable land taken over for export
producing industries using SV methods to suppress the
natives & country’s leaders who are against MNCs’ land
appropriation
1. Land ownership: concentrated in the hands of the richer
classes & MNCs
2. Corporations resist land distribution as it would reduce
their land that is used for export production & cut down
their profit
3. United Fruit Co. in Central America & people’s demand
for land reform led to overthrow of Guatemala’s govt.
(1954), civil war, police repression and 200,000 civilian
deaths
EOP:
How do MNCs’ that export products view the
needs of the poor in a subsistence economy?
http://www.globalissues.org/TradeRelated/Development/PovertyEnv.asp
http://www.globalissues.org/TradeRelated/Development/PovertyEnv.asp
EOP: How did technology affect TWCs’
Peasants/small farmers/tribes?
• MNCs take the best land
• Deprives the poor of land that produces food
for subsistence
• Land distribution to peasants is thwarted by
the eviction of the poor. Tribal Massai were
deprived of their traditional rights to the land
for grazing livestock. Now, the land belongs
to the ‘powerful people’ in the govt.
EOP:
Poor people do not get any help from their
governments but find that they:
• Support & protect MNCs (dictators of Chile,
Central America, the Congo, Sudan)
• Arrests farmers/ peasants for taking their own
countries’ land back (Venezuela)
H. 3: Labour: Through ODL & NDL, Cr’s capital indebts
and exploits Peri’s cheap labour to improve its capital
accumulation. Unequal exchange between Cr’s capital
and Peripheries’ Labour, produces profit for Core’s
capital accumulation.
http://www.youtube.com/watch?v=3MlZEfRhTo8 (p2) 4 min what is capitalism –labor and
uneq exch of value (wages)
Hypothesis 3
Labour
ODL
Resource
extraction,
Subsistence
& Poverty
Unequal
exchange
between
capital and
labour
NDL
International
serfs/slaves
Export
production
& MNCs
Unequal
exchange
in Trade
& Debt
burden
International
cheap labour
WST argument on Labour:
Integrated World Market according to WST:
• A single division of labor within a single world market
• Core states - higher-skill, capital-intensive production and
appropriate much of the economic surplus of the whole worldeconomy.
•Peripheral areas focus on low-skill, labor-intensive production
and extraction of raw materials
http://www.youtube.com/watch?v=HDvnSgJF4SE 9.3 min
May 2008 capital-value-profit
NIS
India
• Labour on land to produce food for subsistence could not
compete with market demands for land as a commodity.
• Colonial : India’s colonial labour (wages) is unequal in
value to British capital (factory as fixed capital & profit).
EOP: TWCs:
http://www.youtube.com/watch?v=hOaMy7rO7lE law of
value: labour 8 min
•
•
•
Cheap, slave or forced labour for mining
(colonial La Mita (Bolivia), worker as property
(colonial Kenya’s Kipande system and
plantations (e.g., today’s Brazil’s sugarcane)the Core to accumulate corporate capital
http://www.youtube.com/watch?v=sz9Ip9YfuXo cane cutters 34 sec
http://www.youtube.com/watch?v=Xukyt1FKtC8 1 min clip on sugar cane
labour
Corporate (NDL): Poor wages for labour,
contribute to greater corporate profits (unequal exchange bet. cap and lab = profit)
Labour & Unequal exchange: Subsistence vs. Export
production
NIC: subsistence tenants were expelled - peasants were
drawn into factory as wage workers – their labour
produces more exchange value than the wages they get
– the industry owner’s profit arises from this – India’s
unemployed labour shipped as global colonial labour
NIC:
• Labour gets poor wages (64)
• Colonial : India’s colonial ‘captive’ labour (67)
• Profit from export goes to British factory owners
• Profit from land goes to the landlord
Rukmani’s subsistence manual labour is a way
of life:
• Grows pumpkin (10, 13)
• She predicts market relations (28)
• Tenancy & land ownership: (31, 132)
• Seed (75)
• Drought & water (76)
• Working the land (48)
• Labour supply to Ceylon (67)
EOP:
• Machines of mass production deskill the
workers.
• Cheap wages for surplus labour
• Core’s consumers get goods at lower cost.
MNCs accumulate corporate profit/capital
from cheaper cost of production
Crises of Capitalism
Prof. David Harvey
http://www.youtube.com/watch?v=qOP2V_np2c0
H. 4: The Ideology of the “Whiteman’s
Burden” (a blend of colonial/corporate power
& religious ideology) discredits the local
values to promote westernization
• Superiority of the West and disintegration of
the community
• Commodification of peripheral countries’
land and resources lead to poverty &
destitution.
Hypothesis 4
WMB
Missionary
Conceals
raw
power
Westernizat
ion of values
Church/the Bible
Imperial
superiority
of
modernism
Religion
&
disintegr
ation of
societies
Global
Comprador
elite
Superiority
of the West
What do the missionary or church think of the
poor countries and people?
•Rukmani initially consider the missionary as
helpful
• Church considers the poor people as backward
and therefore responsible for their poverty
Why do the missionary & church not continue to
help the village or the community?
• Colonial or corporate interests
• Belief in Whiteman's burden
• blame the poor for not being ‘modern’ like the
West
Religion conceals the exploitive power of the West’s self
interest:
Colonial extraction:
•Market for raw materials (leather)
•Import of technology (factory)
•Instant urbanization (town)
•Impoverishment of rural people
Corporate extraction:
•Monopoly in the world market (e.g., raw materials)
•Capital investment in poor countries (MNCs)
• SV operations justified as fight against terrorism or
socialism (against leaders who promote country’s
economic interests against foreign domination
•Impoverishment of the poor (peasants & tribes)
Why do we use an ideological metaphor for
understanding world problems?
White Man’s burden: Eurocentric view of the
world and global economy
Missionary (Nectar …p111)
The Bible and Church (DVD: Colonization
of the mind – the worst of colonial control)
What are the solutions?
• Reject the historical White Man’s Burden
• Reject the cultural superiority of the West
• Acknowledge the uniqueness of each
country’s social and political culture
• Foster a development path suitable to each
country (Easterly).
Conclusion:
Integration of markets, technology, and labour into the
world system through the ideology of the West’s
superiority :
•Core countries: (see, WST: PUT-NDL)
• P: Militarily strong
• U: Appropriate much of the surplus of the whole
world-economy
• DL: Concentrate on higher-skill, capital-intensive
production
• Peripheral countries:
• P: powerlessness & poor economies
• U: low trading value & cheap labour
• DL: focus on low-skill, labor-intensive production
and extraction of raw materials
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