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Historically , why did developing countries fail to advance in their economic development while AICs advanced? World System Theory explains: Power structure: Colonialism/Imperialism Unequal Trade relations: Core vs. periphery Technology: Manual/Industrial ODL/NDL based on:
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Historically, why did developing countries fail to advance in their economic development while AICs advanced? • World System Theory explains: • Power structure: Colonialism/Imperialism • Unequal Trade relations: Core vs. periphery • Technology: Manual/Industrial • ODL/NDL based on: • Racist ideology: Subjection/Dominance • Investment: Labour/Capital
Pre-industrial political power system: • C 9th -15th A.D. : Feudalism: • http://www.youtube.com/watch?v=qVklEUhSfIc • A system of political organization • Elite called a "lord" controlled the land • Common peasants, called "vassals" tilled the • lord’s land • These peasants were serfs and served as • warriors in the lord’s army
18th C: Two major forces • Colonialism • Industrial revolution • 19th C– mid 20th C: • Colonial capitalism • Later 20th C : • Neo-liberalism • Communication Revolution • Global Corporate capitalism
18th C Industrial revolution affected: • one-third of the world's population. • 21st C Communication Revolution affects: • much of the global population
Imperialism gave rise to global colonialism: • Colonial exploitation increased the colonizers’ • wealth through industrial revolution followed by: • Rise of the Nation State • Separation of the state from church • Rule of Law (http://www.youtube.com/watch?v=XAJVu9LK7WE) • Controlling Power: Taxes and Military replaced feudal serfdom • Capital accumulation (from 19 C)
Imperialists: • Established their colonies • Military & political control • Economic exploitation of colonial land and • labour
http://users.erols.com/mwhite28/1907powr.htm Imperialism and the Balance of Power
Imperialism led to : • Colonialism • Industrial revolution : • Rise of the Nation State: • Separation of the state from church • Rule of Law • Taxes and military replaced feudal serfdom • Capital accumulation (from 19 C)
Colonialism (15th – 20thC) • A system in which a state claims • sovereignty over territory and • people outside its own boundaries.
1939 http://www.mcps.k12.md.us/departments/isa/ninvest/imperial/impandworld.htm#bargraphs
1939 http://www.mcps.k12.md.us/departments/isa/ninvest/imperial/impandworld.htm#bargraphs
What was the colonialist ideology? • Ideology of “White Man’s Burden” • “Cultural superiority of the West” • Rejection of the uniqueness of each country’s social and political culture
The White Man's Burden (R. Kipling’s poem) Take up the White Man's burden--Send forth the best ye breed--Go bind your sons to exileTo serve your captives' need;To wait in heavy harness,On fluttered folk and wild--Your new-caught, sullen peoples,Half-devil and half-child. (7 stanzas) http://www.kipling.org.uk/rg_burden1.htm
Colonialist ideology of Racial Superiority • What is White Man’s Burden? • It suggests that White people have a duty to rule over other ethnic/ cultural groups for advancing their cultural development by adopting the superior western values.
White Man’s Burden (cont’d) • A racist view of non-European people as childlike and demonic • a metaphor for a condescending view of non-Western cultures & economic traditions • Emphasizes European ascendancy and dominance known as "cultural imperialism".
The white man's burden - a satirical view http://en.wikipedia.org/wiki/The_White_Man's_Burden
Imperialism led to : • Colonialism • Industrial revolution : • Rise of the Nation State: • Separation of the state from church • Rule of Law • Taxes and military replaced feudal serfdom • Capital accumulation (from 19 C)
Industrial revolution • Begins in 18th C • Establishment of the capitalist economy • Colonialism: • http://www.public.iastate.edu/~cfford/342WorldHistoryModern.html • Industrial revolution dates and inventions: http://www.victorianweb.org/technology/ir/irchron.html
Imperialism led to : • Colonialism • Industrial revolution : • Rise of the Nation State: • Separation of the state from church • Rule of Law • Taxes and military replaced feudal serfdom • Capital accumulation (from 19 C)
What is a nation state? • A state with a single national identity, • e.g.: In Switzerland and U.S.A: national identity despite religious, ethnic, or linguistic differences
Imperialism led to : • Colonialism • Industrial revolution : • Rise of the Nation State: • Separation of the state from church • Rule of Law • Taxes and military replaced feudal serfdom • Capital accumulation (from 19 C)
Separation of church and state: The spheres of power of organized religion and the nation state are distinctly separated by conventions and judicial decisions: Thomas Jefferson (A Founding Father of the US) wrote in his letter to the Danbury Baptists Association in 1802: "wall of separation between church and state,"
Separation of church and state around the world. • States with no state religions • States with state religions • States with ambiguous data or no data http://en.wikipedia.org/wiki/Separation_of_church_and_state#Ancient_history
Imperialism led to : • Colonialism • Industrial revolution : • Rise of the Nation State: • Separation of the state from church • Rule of Law • Taxes and military replaced feudal serfdom • Capital accumulation (from 19 C)
Rule of law: (as a term, used since the 17th C) • No one is above the law
Imperialism led to : • Colonialism • Industrial revolution : • Rise of the Nation State: • Separation of the state from church • Rule of Law • Taxes and military replaced feudal serfdom • Capital accumulation (from 19 C)
Governments’ Revenues in the Early 20th C from colonies (see, Map)
Government Revenues in the Early 20th Century: The size of the flag shows the relative size of the government's income http://users.erols.com/mwhite28/frnc-emp.htm
Africa in the Early Twentieth Century http://users.erols.com/mwhite28/afri1914.htm
Imperialism led to : • Colonialism • Industrial revolution : • Rise of the Nation State: • Separation of the state from church • Rule of Law • Taxes and military replaced feudal serfdom • Capital accumulation (from 19 C)
Emerging Countries, e.g., India & China: • For 18 centuries until 1820, they produced 80% of world GDP • 18th C: Colonialism and Europe’s hegemony - In 1950 their share fell to 40%. • Past 10 yrs: Rapid growth of their share of capital flows and trade in world market
China and India: • Re-Emerging economies • 2013: EM share of global GDP 56.5% (estimate). • From the 21stC: the world's two biggest economies. http://www.imf.org/external/np/speeches/2011/020711.htm
http://www.imf.org/external/pubs/ft/fandd/2011/06/straight.htmhttp://www.imf.org/external/pubs/ft/fandd/2011/06/straight.htm
Purchasing power parity (PPP) • A formula for comparing the purchasing power of different currencies • How?: It estimates the extent to which the exchange rate between countries have to be adjusted according to its currency’s purchasing power. • Why?: To measure the equivalence (parity) of currencies in terms of their purchasing power, i.e. • How much money would be needed to purchase the same goods and services in different countries? • When PPP rate is used, the amount of a country’s money thus has the same purchasing power in that country compared to that in other countries.
GDP and GDP growth rate 2010 http://www.tradingeconomics.com/Billing/Analytics.aspx?Source=RankButtonInChart
Market economy: • primarily relies on interactions between buyers and sellers to allocate resources • World Market : • Commodity traded globally • Trade based on supply and demand • Bid for buying
Unequal trade relations • Tariff barriers • Non Tariff barriers
Burkina Faso Cotton Production: Shares of Farmers Unions, French Holding company & the State
Burkina Faso cotton growers protest low prices, Apr 28, 2011 http://af.reuters.com/article/topNews/idAFJOE73R06L20110428