Term 2: Lecture 1

Essay Topics & Frame works

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.

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 # 50-55, Developing World 2012-2013,). 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: 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.

Topic: 4: NAFTA & US hegemony: Canada and Mexico

Framework: Formulate a framework using WST concepts, the trade and subsidy arguments in lectures, in the articles from #10-13 in the Developing World as well as those in articles 17-20 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. 

Theoretical arguments to be applied to all topics:

• WST

Please review Term 1 Lectures on WST, if you do not have a clear and comprehensive understanding.

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

http://wn.com/unequal_exchange_video

http://www.beyondblackwhite.com/capuchin-monkeys-reject-unequal-pay-proof-treated/

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

•States compete for global 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?

• Modern world economy as a system: Market expands under U.S. hegemony since 1950s

The Decline of the Dollar and US Hegemony http://www.youtube.com/watch?v=g9AP5Id-GW0

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

• Neoliberalism (ideology)• Commodity chain (structure)

THE CORPORATION [2/23] Birth http://www.youtube.com/watch?v=8SuUzmqBewg

Rise of the modern world economy as a system:

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

WST explains the global production & trade:

Corporatization of world production and trade:

•Core’s MNCs expand under US hegemony over peripheries:

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

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

http://www.youtube.com/watch?v=yC5R9WPId0s (7.39min)

3. Outsourcing or offshoring - to avoid accountability Business of offshoring and outsourcing

http://www.youtube.com/watch?v=dZlcbGNC_3g (5.26min)Stephen Orlins Discusses the Impact of Outsourcing on U.S.-China Relations http://www.youtube.com/watch?v=WyYqM81ys3I (3.33min)

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

• 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 DWs’ disadvantaged position vis-à-vis AICs:

All countries (DWs) 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

WST & Global Commodity Chain (GCC):Commodity Chain Research HD http://www.youtube.com/watch?v=bs65dIcRKXE

Core: Capital richHead Office:

R&DProduct designCustomization

Market distributionProducts RetailAds

GCC (contd.)Peripheries: Labour surplus

Production process:Vertically integrated

GCC

Firms call commodity chain as value chain:

Global Value Chain: Garments and flowers (English subtitles) Woman Working World Wide, South Africahttp://www.youtube.com/watch?v=jUNxj0MOoqk

Global Value Chains in East Asia WTO http://www.youtube.com/watch?v=9-1ht2OrG2Y

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,

Starbuck's Coffee: Commodity Chain http://www.youtube.com/watch?v=osW9dfueb_4