Essay Topics & Frame Works

Term 2: Lecture 1 (if you do not follow any of the concepts in any of the lecture,spl let me know. I will discuss it in the next lecture)

Essay Topics & Frame works

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 between the Core and Peripheral countries

•Trade: Differential flow of surplusto the core

• Advanced technology vs. manual labour

• Old vs. new Division of Labor

• Global Commodity Chain (GCC)

• Global impact of Core’s Financial Meltdown

•

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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

•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

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

(7.39min)

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

(5.26min)

Stephen Orlins Discusses the Impact of Outsourcing on U.S.-China Relations

(3.33min)

Washington Consensus: circa 1989

Neoliberal ideology: (LAP DoGS)

• Globalization

•Austerity

• Trade Liberalization

• Financial Deregulation

• Financial Speculation

•Privatization

Driving 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 budget

Weakening the Labour

Deregulating the economy

Reducing the State

BLeeDS )

Argument: Enforcement of NL is a cause for DWs’ disadvantaged position vis-à-visAICs:

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.

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

WST & Global Commodity Chain (GCC):

Commodity Chain Research HD

Core:Capital rich

Head Office:

R&D

Product design

Customization

Market distribution

Products

Retail

Ads

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 Africa

Global Value Chains in East Asia WTO