Term 2: Lecture 1

Essay Topics & Frame works

Topic 1: Causes and Condition of Aboriginal or Child/Youth Poverty: Comparing Canada and India or Latin America (One country or the continent in general with examples on countries) Framework: Formulate a framework using WST concepts and the arguments in lectures, and in the articles related to children (Articles 11-17) 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. Topic 2: Women and Globalized Labour: Comparing Canada and India or Latin America (a country or the continent in general with examples on 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 # 44 to 52). 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 3: Global Impact of the 2008 Financial Crisis: Comparing Canada and the Third World (One county or Developing World in General with examples on countries) Framework: Formulate a framework using the arguments and concepts from one or more Kit Articles 1-6 and from Term 1 lecture 5 (Oct 31) on Financial Crisis. Topic: 4: NAFTA & US hegemony: Canada and Mexico Framework: Formulate a framework using WST concepts, the arguments in related lectures, articles from 9 &10 in the Developing World as well as those in articles 18-20 from your Course Kit for Term 2. Also, please check out the following article to be accessed through e-resources at York: Kentor, Jeffrey (2005). The Growth of Transnational Corporate Networks: 1962–1998, Journal of World-Systems Research, XI: 263-286. Topic 5: Climate change and Economic development: Why and how does/would the Kyoto Protocol and the consensus arrived at the United Nations Climate Change Conference in Durban, South Africa, affect economic development in the Emerging Economies differently from that in the Advanced Industrial Countries?  Framework: Formulate a framework using WST concepts and the arguments in related lectures and in the articles 21 & 22 in the Course Kit. 

Theoretical arguments to be applied to all topics:

• WST

Applying the World System Theory:Analytical themes: PUT-NDL

GCC FM

• Core’s hegemony and global hierarchy of power • Unequal Exchange &Trade Relations between the Core and Peripheral countries• Differential flow of surplus to the core• Old vs. new Division of Labor• Global Commodity Chain (GCC)• Global impact of Core’s Financial Meltdown

Hegemony : a historical process (#4 in course kit)

•States compete for domination•Endless capital accumulation •Market treats goods and labor alike as commodities

WST explains DW’s situation as a result of Core’s hegemony over periphery: How?

• Current global market: Market expands under U.S. hegemony

since 1950s• Corporatization of world production and trade: Core’s MNCs expand under a hegemonic power & imposed on peripheries:

• Neoliberalism (ideology)• Commodity chain (structure)

1500 A.D.: Origin of the modern world-system (world economy)Western Europe:

•Feudalism declined •Technological innovation•Rise of market institutions •Military strength •Transportation Tech

Core vs. Peripheral countries: •Capital-intensive production and R & D in the core•Low-skill labor and raw materials in the periphery.

20 C: the capitalist world-system: • Unequal exchange (bet. European core and non-

European periphery generated unequal development)

• Semi-periphery: a buffer

Role of the State: • Maintaining global hierarchical structure • Direct profits to MNCs in the core • Protect global capitalist economy by:

• Enforcing property rights • Monopoly on trade in high-value good

Global Market crisis: 20th & 21st C Boom and Bust ( #1 in

Course Kit)

•1929 - Stock market crash - the Great Depression•1944 - Bretton Woods agreement establishes fixed exchange rates•1954 – DJI average recovers from crash (took 25 years) •1971 - U.S. no longer uses the gold standard – end of fixed exchange rates•1987 - Black Monday (Oct. 16,), DJI drops to 22.6% - Highest one day crash since Depression• 1997-98: Crisis in Global currency rates – triggers recession• 2008 on Core’s Financial Meltdown – failure of financial institutions in U.S and Europe – its impact

World market system facilitated 25 years of growth in MNCs’ power

1.Rise in corporate concentration 2.Externalities: Corporations reduce uncertainty and business costs : air pollution vs.

fireproofing a house

3.“Networked” firms –Outsourcing- to avoid accountability

WST explains:

• Corporatization of world production and trade: •Core’s MNCs expand under US hegemony over peripheries:

• NL : Neoliberalism (ideology)• GCC: Global Commodity Chain (structure)

Washington Consensus: circa 1989 Neoliberal ideology: (LAP DOG)

• Globalization• Austerity • Trade Liberalization• Financial Deregulation• Financial Speculation• Privatization

DDriving force of Global market integration:• Neoliberalism (NL)

Why should Peripheries adopt NL?• Core’s enforcement: How?

• According to WTO rules accepted by all member countries

• As requirements of loans: WB, IMF (SAP)• SAP

(Balancing the government budgetWeakening the LabourDeregulating the economyReducing the StateBLeeDS )

Argument: Enforcement of NL is a cause for LDCs’ disadvantaged position vis-à-vis AICs:

All countries (LDCs) are brought under Core’s (US/AICs) hegemony & free Market regime through market integration, WTO, Global Monetary System, Stock markets and MNCs.

WST explains:

• Corporatization of world production and trade: •Core’s MNCs expand under US hegemony over peripheries:

• NL : Neoliberalism (ideology)• GCC: Global Commodity Chain (structure)

• Single division of labor: core accumulates capital as periphery supplies labour

http://www.oxfam.org.au/video-player?v=16

WST & Global Commodity Chain (GCC):Core: Capital rich

Head Office:R&DProduct designCustomization

Market distributionProducts RetailAds

GCC (contd.)Peripheries: Labour surplus

Production process:Vertically integrated

GCC

Vertically integrated Model: MNCs’ GCC

Foreign subsidiary or Subcontracting local company

Manufacturing factories or Sweatshops

Extract raw materials from resource rich areas

Extract surplus from labour

Household labour of the poor (low/no wage or slavery): Men, Women, Youth & Children

Inequitable Impacts of global Commodity Chains on workers: at the Core:

Economic Costs

Educational &cultural costs

Critical individual costs

Wealth & Capital ConcentrationLower WagesLow Remuneration for Non-Wage Laborfor Commodity Production (e.g. household)

HealthCivic freedomsDiscrimination: gender & AgeHuman rights Law & Order (prejudice against the poor)

Devaluation of Arts & HumanitiesCommodification of Youth, child, women as Logo

Inequitable Impacts of global Commodity Chains on workers: at the Periphery: Wilma A. Dunaway,