Theories of Global Interconnections

1. Theories of Global Interconnections

2. Outline • Myth of Isolation • 4 Major Theories of Global Interconnections • Dualism • Modernization Theory • Dependency Theory • World Systems Theory

3. Myth of Isolation • Truly isolated cultures have never existed • 1000s of years, human groups have been in contact with each other (ex. West Africa traded with Northern Africa and Europe since before 1000) • Local societies have always participated in a larger system, which today is a: • “Global System”—nations are economically and politically interdependent

4. 1. DUALISM (1400-1800) TRADITIONAL societies MODERN societies • Subsistence economy Entrepreneurial • Closed circuits of exchange Export markets • Labor Intensive Capital intensive (activities that transform (resources invested in nature into things for use business to make profit) or exchange) • Static Dynamic • Hierarchical Egalitarian • Spiritual Material/Rational

5. DUALISM (cont.) Colonial Thinking: Europe attempted to build islands of “Modern” enterprise within a sea of unchanging “Tradition”

6. 2. MODERNIZATION THEORY (1930s—1960s) • US------------------------- (most modern) • Spain---------------- • Brazil----------- • India------- • Chad--- (least modern)

7. MODERNIZATION THEORY (cont.) • Goal of Game: Advance from Tradition to Modernity • Players: Nation-States • Acknowledged Rule: Advanced nations may help Backward nations by offering “Aid” • Unacknowledged Rule: Only advanced nations may win

8. 3. DEPENDENCY THEORY (1960-70s) • Modern nations created underdeveloped nations by stealing from them • O O satellites—dependent nations with resources O metropole—modern nations with capital and industry O O • Modern nations—“Why aren’t you rich yet?” • Dependent nations—“We can’t even afford to pay the interest on our structural adjustment and IMF loans!”

9. WORLD SYSTEMS THEORY(1970’s – 1980’s) • Capitalist World Economy = A single world system committed to production for sale or exchange, with the object of maximizing profits rather than supplying domestic needs (i.e. sugar and cotton plantation economies) since 15th and 16th centuries • Unit is no longer the “nation-state” but a social system based on political and economic relations—“class”

10. WORLD SYSTEMS THEORY (cont.) • More similarity in class experience across national borders, and often more divisions between the rich and poor within them • CORE—dominant position in world system, strongest/powerful nations --Produce “advanced” goods using high technology and mechanization --Exports some of these goods to semi- periphery and periphery --“free workers”

11. WORLD SYSTEMS THEORY (cont.) • SEMI-PERIPHERY & PERIPHERY = “2nd & 3rd World” nations with less power, wealth, and influence; coerced workers • SEMI = export industrial goods but lack power of core; i.e. Brazil—exports cars to NI and engines, orange juice extract, coffee to US • PERIPHERY = intensive human labor, less mechanization; produces raw materials, agricultural commodities, and labor for export to semi and core

12. WORLD SYSTEMS THEORY (cont.) • Relationship between core and periphery is fundamentally exploitative • Unequal exchange between manufactured goods for raw materials • economic relations between core and periphery tend to benefit capitalists in the core at the expense of the periphery

13. References • Dualism: 1978 J. H. Boeke Economics and Economic Policy of Dual Societies, as Exemplified by Indonesia. • Modernization Theory: 1993 Bret L. BilletModernization Theory and Economic Development : Discontent in the Developing World. 1960 W.W. Rostow The Stages of Economic Growth, a Non-Communist Manifesto.

14. References • Dependency Theory 1969 Andre Gunder Frank Capitalism and Underdevelopment in Latin America; Historical Studies of Chile and Brazil. 1974 Walter Rodney How Europe Underdeveloped Africa. • World Systems Theory 1976 Immanuel Wallerstein The Modern World-System: Capitalist Agriculture and the Origins of the European World Economy in the Sixteenth Century.