Theories of Global Interconnections

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

Myth of Isolation Truly isolated cultures have never existed 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) 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: Local societies have always participated in a larger system, which today is a: “Global System”—nations are economically and politically interdependent “Global System”—nations are economically and politically interdependent

1. DUALISM ( ) TRADITIONAL societies MODERN societies Subsistence economyEntrepreneurial Subsistence economyEntrepreneurial Closed circuits of exchange Export markets Closed circuits of exchange Export markets Labor Intensive Capital intensive Labor Intensive Capital intensive (activities that transform (resources invested in nature into things for use business to make profit) or exchange) StaticDynamic StaticDynamic HierarchicalEgalitarian HierarchicalEgalitarian SpiritualMaterial/Rational SpiritualMaterial/Rational

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

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

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

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

4.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 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” Unit is no longer the “nation-state” but a social system based on political and economic relations—“class”

WORLD SYSTEMS THEORY (cont.) More similarity in class experience across national borders, and often more divisions between the rich and poor within them 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 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”

WORLD SYSTEMS THEORY (cont.) SEMI-PERIPHERY & PERIPHERY = “2 nd & 3 rd World” nations with less power, wealth, and influence; coerced workers SEMI-PERIPHERY & PERIPHERY = “2 nd & 3 rd 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 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 PERIPHERY = intensive human labor, less mechanization; produces raw materials, agricultural commodities, and labor for export to semi and core

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

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

References Dependency Theory Dependency Theory1969 Andre Gunder Frank Capitalism and Underdevelopment in Latin America; Historical Studies of Chile and Brazil Walter Rodney How Europe Underdeveloped Africa. World Systems Theory World Systems Theory1976 Immanuel Wallerstein The Modern World- System: Capitalist Agriculture and the Origins of the European World Economy in the Sixteenth Century. Immanuel Wallerstein The Modern World- System: Capitalist Agriculture and the Origins of the European World Economy in the Sixteenth Century.