1. Sociology 2: Class 14: World System Theory & World Society Theory Copyright © 2014 by Evan Schofer Do not copy or distribute without permission

2. Announcements Announcements: Midterm grading still underway Today’s Class: More theories of globalization

3. Review: Theories of Globalization General perspectives on the economy Adam Smith Marx Keynesianism Sociological theories Modernization theory World Systems Theory / dependency theory World Society Theory / neo-institutional theory Political Science Realism Institutionalism (Political science) / Interdependence.

4. Review: Modernization Theory Argument: All societies naturally pass through certain stages of development All societies start out as “traditional” farming economies Then, they have an “industrial revolution” Eventually, they become “modern” high-tech societies Criticisms: –1. It is very “Eurocentric” / Western-centric –2. Modernization theory focuses on a single country, ignores global dynamics Assumes that success/failure is due to internal factors –3. Modernization theory is unable to explain the persistent poverty found in many countries.

5. Modernization theory & inequality What does modernization theory have to say about global inequality? –Prediction: Global inequality will eventually decline All countries will become “developed”/modern Result: Convergence… countries will become more similar, economically.

6. World-System Theory World-System theory explains the failure of many countries to develop Today’s poor countries face huge disadvantages compared to Europe –1. They have a very different history: colonization Conquered by Europe Not allowed to develop governments, schools, industry Colonial rulers stripped local resources –2. Now, they must compete with rich countries in global markets Former colonies remain at a big disadvantage –Don’t have industry to compete in global trade.

7. Review: World-System Theory Key Definitions: Core: the rich, developed countries Also: west; metropolitan countries; developed world Periphery: poor, dependent nations Also: underdeveloped countries; satellites; dependencies Semi-periphery: semi-industrialized countries Dependency: The vulnerable state of being exploited by core countries They depend on the core for trade, investment, loans, technology, etc. (related term: underdevelopment).

8. World-System Theory

9. World-System Theory: We need to study the entire global economy as a world system We can’t understand the fate of a single country, without understanding how it fits into the overall system Countries are rich or poor because of their position relative to others in the global capitalist system. Argument: Europe (the “core”) was able to prosper by exploiting resources from other places The great success of Europe and the failures in the non-West weren’t just a coincidence… Europe became wealthy by maintaining economic & military dominance over other nations Exploited nations will never “modernize” as long as they are oppressed by Western nations.

10. World-System Theory World-System theorists criticize the idea that trade is “win/win” Classical economic theory (Ricardo) predicts win/win If you grown bananas efficiently, focus on that… –Criticism #1: Specialization in low-tech production  short-term profit but long-run costs Low tech specialization  countries fail to develop industry and technology that could lead to greater profits in the future See Rodrik: “Poor Countries in a Rich World” –Argument: In the long run, countries would be better off developing high-tech industry, rather than growing bananas…

11. World-System Theory World-System theorists criticize the idea that trade is “win/win” –Criticism #2: trade relations are asymmetric Rich countries don’t need coffee badly –And, they can buy them from many sources But, poor countries critically depend on trade to get technology & machinery to develop their economies –So, poor countries are dependent on rich The rich countries have all the leverage in global trade…

12. World-System Theory World-system theorists also criticize foreign direct investment & capital flows Which free-market economists think is a good thing –1. Core countries extract profits from periphery –Profits don’t stay in poor countries –2. Foreign investment don’t benefit locals –Foreigners build plantations and mines to extract resources –Ex: roads & rail lines just connect mines & ports »Not useful to the people who actually live there! –3. Risk of currency/debt crises…

13. World-System Theory More concepts: Trade concentration: When a peripheral country trades with few (or one) country Investment concentration: When foreign investment comes from a few (or one) country High concentration may make peripheral countries “dependent” If the core country decides to halt trade or investment, economic disaster would follow –Peripheral countries must please core trading partners –They lose autonomy to do what is best for their people

14. Investment Concentration CountryConcentration (%)Partner Honduras97.7U.S. Swaziland96.6Britain Niger95.7France Chile91.3U.S. Saudi Arabia90.4U.S. Tanzania48.1Britain Iraq37.5Britain Brazil35.6U.S. Source: Kentor and Boswell 2003

15. World-System Theory How does world-system theory differ from other analysis of economic globalization? Both agree that economics = important –But, economists often view the world economy positively (or neutrally) Ex: Ricardo thought trade was overall beneficial Ex: Many economists think globalization reduces poverty –W-system scholars draw upon Marx’s criticisms of capitalism Argue that the global economy is a malign force A source of misery and exploitation.

16. World-System Theory What should peripheral nations do? –According to world-system scholars? 1. Peripheral countries must avoid exploitive economic relations with the core Beware of trade and foreign investment, which can lead to exploitation and foreign control 2. Try to nurture domestic industries Don’t sell coffee and rely on others for high-tech Try to develop advanced industries locally Concept: “Import substitution” – developing local industries to avoid importing products.

17. World-System Theory What should peripheral nations do? –According to world-system scholars? 3. Band together with other poor nations to fight against the power of the Core… Trade with each other –Perhaps create cartels to bargain with the Core And some argue: start a global anti-capitalist revolution.

18. World system theory & inequality What does world-system theory predict about global inequality: –Answer: Markets naturally produce exploitation and inequality As long as we have global capitalism, we’ll have a big gap between rich and poor countries.

19. World-System Theory How does World System Theory view international organizations (like the WTO)? Answer: They reinforce the fundamental economic positions of core and periphery Claim: Most IGOs and INGOs are created by core countries, and will never fundamentally undermine the dominance of the core –IGOs and INGOs tend to perpetuate core dominance –Example: WTO has not given big concessions to periphery The only thing that could help would be organizations representing the peripheral countries against the core!

20. World-System Theory Criticisms of World System Theory: 1. Research findings are mixed at best Some of the specific WST predictions about sources of global inequality/poverty have been wrong It is true that there is horrible poverty in the world… –But: Are people worse off than if there was no global economy? That is less clear.

21. World-System Theory 2. Reverse causality –World system theory argues: Countries that are dependent on the core of the world capitalist system will remain poor –BUT, maybe it works the other way around Poverty produced “dependent” relations in the first place Poor countries can’t produce high-tech goods, so they trade commodities (e.g., coffee) But, this doesn’t necessarily mean that trading coffee actually made those countries poorer

22. World-System Theory Question: Is world-system theory “right”? W-sys is a big-T theory. There is no simple answer 1. Analysis of Latin America is generally thought to be compelling 2. Rapid industrialization in Asia (S. Korea, Taiwan, etc) is a major exception to w-sys 3. Evidence on foreign/trade investment = mixed, often contradicts world-system theory Some studies find effects consistent with w-sys –See examples in Rodrik (“Poor Countries in a Rich World”) But, many do not.

23. World-System Theory My advice: World-system theory is a useful theory that has some predictive power Rodrik highlights some key predictions… BUT: don’t become a conspiracy theorist It is easy to spin a story of “core country power” to explain any set of events Better to make specific predictions that can be tested with evidence…

24. World Society Theory A very different theory of the global system… Emphasizes culture, not economy Also called “world polity theory”; a kind of institutional theory (NOT “Interdependence/Institutionalism”) World Society Theory was also a response to modernization theory The expectation that countries will march through stages of development… Key observation: While countries differ a lot in their level of development, many aspects of their governments look quite similar… World Society Theory argues that this conformity reflects the existence of a common global culture… –Which shapes how elites set up their governments, societies.

25. World Society and World Culture We are familiar with the idea that European/Western forms of consumption have spread around the globe: And, popular culture has spread across the world. (Short video, if time allows)

26. Globalization and World Culture Issue: Perhaps other kinds of culture and ideas are spreading around the globe: Ideas about: How to set up governments How to organize the economy How to organize school systems How to protect the environment How to raise children That could be “culture”, too…

27. Globalization and World Society World society theory argues that we now have a world society with a global culture –World Society = organizations, associations, & culture in the international sphere Observation: There is no strong world “state” Rather, there are associations (IGOs, NGOs) –Observation: Participants in the international system share a common culture IGOs and NGOs are typically run by people educated in Western-style tradition, believe in common things Example: Democracy, economic growth, education, etc.

28. World Society Theory Digression: Thinking about culture and action Question: Why do people vote? Let’s think about individuals, rather than states Conventional Answer: They want to maximize their interests… Thus, they go and vote for candidates that will enact favorable policies Is that what is going on in people’s heads? Do they really think: “Heh, heh, heh… I’ll be rich!”? In fact, a single vote rarely matters… why do people bother?

29. World Society Theory One alternative to “interest-based” action: Action is governed by culture and social norms A very different view: People vote because they are “supposed to”… We live in a society in which voting is highly valued Example: Some of the biggest predictors of voting include: whether friends or parents vote –If you are surrounded by voters (and pro-voting norms) you are more likely to vote.

30. World Society Theory How does culture affect us? 1. By providing norms Norms indicate proper behavior in a given situation You could come to class wearing scuba gear… but norms discourage it. In fact, we rarely consider actions that are against norms.

31. World Society Theory 2. By providing scripts Scripts are taken-for-granted “recipes” for behavior that we share and understand Example: If you are interested in courting someone, you ask them on a date –You do not show up at their house with a dowry gift and ask their father’s permission to marry People in a common culture generally follow similar scripts.

32. World Society Theory 3. By providing cognitive models “Cognitive models” or “maps” are mental frameworks or blueprints that people share Example: Suppose you were chosen to set up a new school… How would you design it? How many grades? What subjects? How big would classes be? When would the school year be?

33. Rational actors vs stage actors One common image in social science is that countries are rational “strategic” actors World society theory offers an alternative image More like stage actors following scripts…

34. World Society Theory Note: Most ideas are drawn from a familiar “model” of the school Would you teach by apprenticeship? Keep boys and girls separate? Teach classes on astrology? Probably not! –In the language of social psychology: We all possess a similar “cognitive model” or “map” of a school It is that which we “take for granted”.

35. School: Nigeria

36. School: Cameroon

37. School: Tajikistan

38. School: Colombia

39. School: Guatemala

40. World Society Theory What do theories predict about schools? –Modernization theory predicted that poor, agricultural societies would be different from “modern” ones Example: Agricultural societies should have schools focused on farming/agriculture –World system theory predicts that peripheral economies are subordinated by “core countries” Schools should be organized to produce workers; more efficient capitalist exploitation –World society theory predicts that schools will be similar everywhere The result of a common global culture

41. World Society Theory Key observation: Over the past 50 years societies have become more similar in terms of government and policies Called “isomorphism” Ex: Poor agricultural countries DIDN’T create different educational systems –They adopted systems similar to rich Western countries Ex: Countries also adopted similar legal systems, population and health policies, environmental laws, etc… –The kind of policies everyone is “supposed to” have

42. World Society Theory World Society Theory suggests that states govern on the basis of cognitive models Cognitive models come from world society Associations, IGOs, NGOs, and other states essentially define “appropriate” behavior for governments –IGOs and NGOs convey models of how to govern Example: World bank conveys models of economic governance; UNESCO suggests educational advice; Amnesty International suggests human rights policies.

43. World Society Theory “Worldwide models… define appropriate constitutions, goals, organization charts, ministry structures, and policies… Nation- states are imagined communities drawing on models that are lodged at the world level.” Meyer et al. 1997 Island example: What if a new territory were discovered? How would IGOs, INGOs, & global culture reshape it?

44. Trends in Environmental Protection Source: Frank et al. 2000

45. World Society Theory The (partial) success of global environmentalism is seen as evidence in support of World Society Theory Nations appear to conform to new global “norms” “Interest-based” theories (world-system theory & realism) have more difficulty explaining global environmentalism.

46. World Society Theory Question: How does World Society Theory view international organizations? They play a key role: sustaining and promulgating a common culture to nations around the world Greenpeace, UNEP, and other international organizations convey norms about what nations should do to protect the environment –Note: International organizations don’t have “power”. They can’t force states to do anything Nor does every single country obey the norms But, over time norms, scripts, cognitive models have a major effect on behavior.

47. IGOs/INGOs & Global Norms International organizations: a source of norms

48. IGOs/INGOs & Global Norms

49. Ex: World Society Theory Research Issue: Which countries have pro- environmental policies? The most developed? The ones with the worst pollution? Answer: –1. Pretty much all countries have begun to enact similar environmental laws… An example of conformity or “isomorphism” –2. Countries that are most connected to international organizations conform faster Those “linked” to the world Society are more exposed to global norms/culture…

50. World Society Theory Issue: Is World Society Theory “right”? World Society theory is a new theory, but growing –1. World Society research on isomorphism in government policy is considered compelling Convincing evidence that states are remarkably similar in many areas –Despite large differences in level of development and other factors that make similarity “surprising” World Society Theory research finds isomorphism in many areas –Evolutions of education systems around the world –Understanding the success of the environmental movement –Also, lots of work on trends regarding human rights.

51. World Society Theory Issue: Is World Society Theory “right”? –2. World Society Theorists were first to realize the importance of INGOs in driving social change Other perspectives tended to ignore them… –3. The ideas behind World Society Theory have garnered support in other areas –Called “neo-institutional theory” Especially the study of organizations This suggests potential… so people are working to apply its ideas to global issues.

52. World Society Theory Criticisms of World Society Theory 1. It doesn’t address power World Society Theory represents a “corrective”, emphasizing the influence of norms and culture –“the social sciences are reluctant to acknowledge patterns of influence and conformity that cannot be explained solely as matters of power or functional rationality.” But, colonial relations were historically important in defining Western ideas as the dominant world culture Also, current global trends reflect US hegemony –World Society Theory scholars point out that US doesn’t always benefit »e.g., when countries conform to US models of education –But, still it seems like power may be important.

53. World Society Theory Criticisms of World Society Theory 2. It doesn’t sufficiently address actors or “agency” Again, this is an intentional goal of the theory… which has come under criticism Theory implies we are all controlled by a wider culture –Builds on Durkheim’s ideas of ‘collective consciousness’ Where is room for agency? How can it explain variability in the world?

54. World Society Theory Criticisms of World Society Theory: 3. World Society Theory explains government policies… but not life “on the ground” Conformity to world culture may be strategic (e.g,. to garner foreign aid) or very “thin” Ex: China may pretend to conform to global norms… but in fact that is just a façade –Interests, rather than culture are really driving behavior World Society Theory scholars have begun responding to this criticism… but the issue is still being debated…

55. World Society Theory Bottom line: World Society Theory is a fascinating theory – offers a whole new lens to view the world A very useful lens that explains some things that other theories can’t Also very useful for understanding organizations… –May be helpful if you start working for a big company –But, people interested in power/inequality find it very frustrating –It doesn’t directly address the issues they care most about Plus, it is a newer perspective… more evidence needed to fully evaluate it.