WWII, the Rise of the US and Post-War Devt.

The Golden Age

1941-1945 - WWII - Germany/Italy/Japan versus US, Britain, and France
1945 - Restructuring of the Global Economy under US Hegemony
Primary industry in post WWII US boom - AUTOMOTIVES (GM, Ford, Chrysler,
etc) - Dominant Regime of Accumulation = FORDISM
Regime of Accumulation Vs. Mode of Regulation (C& K 93-100)
Public works projects - remove RxRs, lay down interstate Hwy. system - Very
capital intensive!
Rise of the US middle class Anchored upon a foundation laid by US
Manufacturing
Dramatic increases in real wages
Gov. programs stimulate demand
Massive increase in the globalization of media, trade, and immigration - all core
states are regulated through Keynesian mechanisms.

Post-WWII Development as a
Keynesian Alliance within and between States
Post-war Independence of former colonial territories - Seeds planted for
contemporary territorial disputes (Israel/Palestine, Kurds in
Iraq/Turkey/Iran/Syria, Pakistan and India, etc.)
Development of a superpower axis between the US-Gold Standard
regulated Keynesian regime & the USSR-led, state-owned Leninist model
- The Cold War Emerges!!
Pendulum shift toward state centralization mixed with free-market
competition.
Mixed Economies in core countries (state regulation in cycles, NOT state
protection!) State/Central planning in Soviet bolc Protection in the 3 rd World
periphery with mixed blend of state planning and pvt. enterprise
Political alliances - Labor Unions, intellectuals, progressives, small bus., farmers, food

What is Development?

US - Engine of post-war development and economic growth.

The Marshall Plan - allocates grants ($$$) to US trade partners to rebuild their
economies.
US focuses internally - interstate HWYs, suburbs, social spending, COLD WAR
Armaments
1949 - Prs. Harry Turman old imperialism - exploitation for foreign profit has no place in our plans. What we envisage is a program of development
based on the concepts of democratic fair dealing
Humanity, sub-divided into 1st and 2nd developed world and 3rd
developing world
Development = industrialization, bureaucratization, state sovereignty, liberal
democratic governance, price-based economies VS. industrialization,
bureaucratization, state sovereignty, state-managed economic growth, socialist
wealth redistribution, vanguard Bolshevik democracy, price controls

1945 - The Bretton Woods Insts. (BWIs) And the Intl. Adoption
of the Keynesian Model in the 1st World

5 Primary BWIs
1.

Modified (US-based) Gold Standard - All currencies pegged to the US

$$. US $$ pegged to Gold at a fixed rate of $35/oz. - The US $
becomes = Gold

2.

IMF - Lender of Last Resort - an intl. clearing house for national

economies - A Global Central Bank to lend $$ to states when no private
banks will lend to firms in their countries - provides a Structural
Adjustment Program

3.

Intl. Bank for Reconstruction and Devt. (World Bank) - intended to

provide loans for infrastructure projects

4.

Gen. Agreement on Tarrifs and Trade (GATT)

5.

(Yalta Conference) - The United Nations

1948 - UN Dec. on Human Rights (UNDHR)

Goals/Objectives of the Bretton Woods Institutions (BWIs):

1.

Stabilize national finances (mod. Gold Standard) and revitalize intl.

trade (GATT)

2.

Support national economic growth by funding 3rd world imports

of 1st world infrastructure and technology (WB)

3.

To facilitate the growth of GDP around the world (IMF)

1. GDP - Gross Domestic Product - Economic Indicator used to
measure the growth of a national economy (C + GS + I + (X
M) This number MUST grow, or economies stagnate

BWIs supported free enterprise and the development of free

markets but containing Soviet expansion was paramount in
Foreign Policy - Socialist tendencies and/or policies resulted in
frozen loans and/or the calling in of debt.

The Post-WWII BWs Regime and Universal Human Rights

Political Regulation Primary Body UN Security Council P5 + E10 = global

governance

1946 UN Edu, Science, & Soc. Org (UNESCO) Headed by Eleanor Roosevelt (i.e, US-led)
- Charged with the task of studying universal human rights Jacques Maritain 1947
Grounds for a UDHR (In Ishay 2-6) - Result - 1948 UNDHR, a Non-binding guide for
international law a bob-binding guarantee for human rights to all humans
The task of the UN Negotiate liberal freedoms in political and civil society versus
guaranteeing equality of living in economic society I.e., Negotiate the ideological
politics of the Cold War
The guarantee of universal human rights All humans everywhere, despite class, race,
color, religion, national origin, etc (or so the legend goes)
New universal social contract - universalization of national self-determination?
UDHR Article 27: All humans are entitled to the realization, through national effort,
and international cooperation and in accordance with the organization and resources of
each state, of economic, social, and cultural rights that are indispensable of his dignity
and the development of his personality [emphasis added].

18 original delegates, 30 Articles of the UNDHR - Four Pillars - Dignity, Liberty,

Equality, and Fraternity - Divided between civil, political, economic, social, and
cultural rights

Essential Characteristics of The Universal Regime of HRs

1.

Civil, Political, Social/Cultural/Econ Rights

2.

Positive Vs. Negative Rights

3.

Universal Entitlements - The rights of the UNDHR are universal

- apply to every human everywhere because they are human - NO
DISCRIMINATION!

4.

Anchored on Individual Rights, but on the assumption that humans

are naturally social.

5.

HRs are interdependent and indivisible! - Not a list to select from

6.

States are both the primary enforcers and protectors of

universal rights and the primary violators!

Does Development Lead to Progress?

Does Progress Lead to Human Rights?
(2 General Views and Many Alternatives)
1.

Modernization Theory (1945 1970s)

a)

Argument: Development = Modernization = Ideal Society

Political Modernization From Sovereign Monarchy to Absolutist sovereignty (with

oversight) to Authoritarian, to pseudo-democracy, to functioning and fair democracy,
individual freedoms, press freedoms, organizational freedoms (i.e., negative rights)

Economic Modernization - Industrialization, price-based economy, proletarian labor

> linear progression from a lower value-added economy (raw materials, extraction,
subsistence/non-export ag.) to high value added economy (high industry, finance,
insurance, services, mass consumption) = expansion of prosperity via the market

Social/Cultural Modernization Secularization, rule of secular law, rational-legal

bureaucratization (of everything), interest group politics, de-emphasis on tradition,
multiculturalism = expansion of social/cultural rights

End Goal? = High consumerism Middle class society anchored upon democratic
fair dealing, merit, and equal access. Economic and political modernization =
development = democracy = human rights

Detractors? are reactionary, fundamentalist > threatened by change > against

modernity itself

Modern Nationalism, Globalization, and the

Promise/Challenge of The Current World Order
Hobsbawm The Short 20th Century (1914-1991) as the Age of Extremes
There has, since 1914, been a marked regression from the standards
regarded as normal in the developed countries and in the milieus of the
middle classes and which were confidently believed to be spreading to
the more backward regions and less enlightened strata of the
population (1993: 13).
We do not quite overlook the revival of torture or even murder as a
normal part of the operations of public security in modern states, but we
probably fail to appreciate quite how dramatic a reversal this constitutes
of the long era of legal development, from the first formal abolition of
torture in a Western country in the 1780s to 1914 (1993: 14).

The Cleansing of Native America

The Forced Removal and Mass Murder of

Anatolian Armenians (1915)

"Thus for the time being I have

sent to the East only my
'Death's Head Units' with the
orders to kill without pity or
mercy all men, women, and
children of Polish race or
language. Only in such a way
will we win the vital space that
we need. Who still talks
nowadays about the
Armenians?

Adolf Hitler, 8/22/1939

The Holocaust 6 million Jews, Gypsies, Catholics, and Homosexuals

The Killing Fields in Cambodia: 1970-1980 = 3.3 million people dead in a

total population of approx. 7.5 million

Balkan Wars 1992-1995

Modern Nationalism and The Short 20 th Century 1914-1991

WWI 16 million dead (21 million wounded)
WWII approx. 60 million dead
Mass Murder perpetrated by national regimes against an ethnically or politically defined
segment of their domestic population

Armenia (1915)
Russia (1932-33)
China 1937-38
Germany 1939-1944
Indonesia (1965)
Cambodia (1970-1980)
Burundi (1972)
Bosnia-Herzegovina (1992-1995),
Rwanda (1994)
(Darfur 2004-), and on its goes
2011-2012 Syria??

Since the 1948 adoption of the UN CPPCG, approx 80 million people have died as a result of
an implemented policy of nation states (Rummell 1998)
20th Century State Administered mass murder = Total pop. of Czech Republic, Hungary,
Belgium, Portugal, Sweden, Austria, Switzerland, Denmark, Finland, and Norway
combined!

Politics of the Development Project: The Cold War!

US Vs. USSR - US sought to facilitate the devt. Of free markets and personal
liberty and democratic freedoms of election, assembly, petition, and press (negative
rights) - the USSR sought to facilitate the development of state owned/ stateplanned economies with a focus on universal equity, social welfare, nondiscrimination (positive rights)

AID was preferential! - US-dominated BWIs - allocated a disproportionate amount

of loans and aid to strategic countries in an effort to contain the spread of
communism

Client States emerged! - Backed openly by either the US or the USSR and
pumped with aid, weapons, etc. to secure that alignment.

Indirect result - the creation of national markets for goods and services coming
from the US or the USSR respectively - Variations of markets and states in
practice

1st World - US sphere of influence, 2nd World - Soviet Sphere of influence,

3rd World - contested states where each competed for influence (MENA, SE
Asia, Latin America), 4th world - isolated zones (Sub-Saharan Africa)

2nd General View of Development

2.

Dependency Theory 1970s Critiques the postulates and assumptions of Mod.

Theory

Argument: 1 Global System that is 500+ years in the making. This system has
been (and will always be, until its demise) a world system
a)
b)
c)
d)
e)
f)
g)
h)

Organized in terms of nation-states (the primary political unit in the world

system)
International
Divided between high value added core countries and low-value added
(exploited) periphery countries.
These relations are structural and almost impossible to deconstruct (i.e.,
difficult to move from periphery to core). Middle countries (exploiter and
exploited) = semi-periphery
Peripheral are dependent on core countries, for aid, investment, know-how,
etc. Source countries for extraction resources, cheap labor, dumping, etc.
Periphery is authoritarian, core is democratic
System is rationalized via the logic of comparative advantage, which is
structurally weighted in favor of core countries a reality that is 500+ years
in the making
In short We work, play, eat, vote, and consume like we do here because
they work, play, eat, dont vote, consume little there.
Focus is on inequality, embedded contradictions, and structured political and
economic power (little focus on culture)

National Development & Corporatist Strategies

Rooted in the idea that countries need to modernize (develop) - IGNORED 350 - 450
years of colonial domination!
How did the US and Europe get to their stage of development?
HINT: Mercantile pillage and plunder > Slavery > Free trade domination!
The global Development Project (1945-1971) See McMichael CH. asked states
around the world to follow in Europes footsteps, but without wearing the same
boots, so to speak.
Non-Aligned Movement 3rd world alliance of non-aligned states received aid
from both US and USSR India, Egypt, Indonesia, S.Africa, others) - Formation of
Development Alliances within countries to localize development based on notions
of Economic nationalism 1950s-1960s Egypt, Turkey, Iran, Japan, India, Brazil, etc
Corporatist Regimes (Development Alliances) - internal alliance blocks
between major sectors of a national economy (a select handful of capitalist families,
labor unions, political parties, public employees, and commercial farmers - United
under one banner in alliance with the state project - formed a corrupt elite around
the world Oligarchy is a MAJOR obstacle to human rights then and now!

 Primary Devt. Model applied throughout the Cold War in so-called 3 rd

world states - Import Substitution Industrialization (ISI)
State-planned, but free domestic economy that mixed state-owned and
private enterprise. Sought to produce goods internally rather than
import them from US or USSR - State and private business was
protected from imports by tariffs. - Domestically produced products
tended to be less competitive than what it was substituting for - Not
produced for export!!
Keynesian Model - Price controls kept prices down, tariffs kept
imports to a minimum, domestic production ensured jobs/large
manufacturing class, Economic aid kept economies primed for
growth
Led to a shift upward in what countries imported, from final
products to the machines needed to produce those products in
domestically owned (pvt. or state) factories.

Unfair terms of Trade - Aid and the development of dependency

Significant Effort by the US to shift the worlds to a diet in its image (i.e., to
wheat! And away from rice, soybeans, corn, potato, etc.)
By 1978 - underdeveloped countries received 80% of the USs wheat
exports. Why?
1950 - 1978 - underdeveloped countries consumption of what increased by
2/3 - America: The breadbasket of the world
Countries given incentives NOT to grow trad. crops, and to shift, instead to a
small number of cash crops designated for export (comparative
advantage)
The development of factory agro-business was encouraged - based on US
manufactured grains and technologies - the Industrialization of agriculture
was encouraged by national economies and by the BWIs

Impact - further dependence on seed technologies, machines, manufacturing

technologies, and FOOD IMPORTS.

Further intensified the orbit of 3rd world countries around the US sphere of
influence.

Tended to benefit semi-peripheral countries (Mexico, Brazil, Turkey, India, etc)

while Sub-Sah. Africa was left without the necessary aid or loans to get in the
game.

Losers of this so-called green revolution - traditional and subsistence farmers,

indigenous groups, etc, who lost land and opportunity to make way for capitalist
enterprise. and if you account for de-forestation, all of us!

EX - US Public Law 480 Program (1954) Food for Peace (1960) Example of
humanitarian aid directly obstructing the ability of states to feed their populations,
to secure the livelihoods of their farmers, and to invest in ag. Development Source
of Food Aid? US farming over production. Answer to US Farmers, a guranteed
buyer in Uncle Sam USAID, in turn, dumped US ag, overproduction on
countries around the world
By 1956 - 1/2 of all US aid to other countries was in the form of food - - Who
benefits?

Winners and Losers in the So-Called 3rd World

Newly industrialized Countries (NICs) - Mexico, Turkey, Argentina, Brazil,
Malaysia, Korea - seemed to exemplify the Dev. Project.
They also highlighted the fact that some countries were given preferential
treatment in the context of the Cold War - Africa was left out

Post WWII Economy - Energy shift from coal to oil. - 1960 OPEC forms
(1968 OAPEC)
Cartel for Oil Producing States
Does not flex its power Until 1973 with the first oil shock following the 1973
defeat of Arab countries in the Yom Kippur War

Oil prices in 1972 - $2/barrel - Directed at the US for its Military support of
Israel, OPEC puts an embargo on oil exports (tax on exports), which raises
the price raises the price dramatically

The political economy of Oil

All oil is bought and sold in US $$ (a big reason why all countries need to
accumulate as much $$ as possible)

The 1973 Oil shock sends BILLIONS of $$$ into Oil producing countries This money is referred to as petro dollars (US$ denominated profits made by
selling oil)
Oil producing states deposit these petro-$$ into European and US banks
(better chance for a return on their money)
These banks recycle these petro-$$ in the form of low interest loans to
developing economies around the world (Many Latin American countries)
Massively increases the amount of liquid US $$ on the global market!!!!
(inflationary pressure on the US$-Gold Standard)

 ThisPLUS a stagnating US economy, an expensive war in Vietnam,

and a global demand for Gold to be paid out to countries in exchg. For
their accumulated $$$ led Pres. Nixon in 1973 to abolish the US$
Gold Standard.
Created the conditions for floating currency Currency fluctuating
in value in that same way any other commodity fluctuates in value
according to its relative surplus or relative scarcity on the market
1970s - The dollar is devalued dramatically - floats on a newly
formed currency market where currencies are bought and sold for
other currencies.
A devalued $$ leads to cheaper US products for export, and to more
expensive oil. HUGE amounts of dollars on the global market,
MASSIVE global inflation

The Oil-Shock, the Latin American Debt Crisis and Collapse

of Bretton Woods
Throughout the 1970s, oil prices go up and down, with a 2nd major shock
happening in 1979 following the Iranian Rev.
Regional instability in the MENA swells (Israeli-Arab Wars, etc.)
By 1979, Oil is $41/barrel - Leads to new oil exploration in Mexico, North
Sea, Canada, W. Africa, etc.
1982, OPEC drops the prices of oil! - Intl. Banks call in their debts - Mexico
defaults on its loans (followed by many other countries) - The Latin American
Debt Crisis ensues!
US FED + IMF meet with Mexico to discuss $350 billion in unpaid loans initiates an IMF Structural Adjustment Package (SAP)
The new neo-liberal global economy is born!

1980: Reagan/Thatcher Revolution

Paul Volker (chairman of the US FED) - under Reagan, leads an

IMF team to meet with Mexico to discuss $350 billion in unpaid
loans - initiates an IMF Structural Adjustment Package (SAP) The new global economy is born!

Neo-Liberalism - The economic discourse that dominates the

global economy from 1980 - present - Revived sense of freemarket economics with a focus on using former Bretton Woods
Insts (IMF, WB, GATT) to facilitate the restructuring of national
economies toward integration into a free global marketplace
Anchored on the idea that fiscal austerity, privatization, and
liberalization are key to economic growth in the 21st century opposes social spending by govts., market interference, tarrifs/taxes,
and other economic boundaries imposed by govts. Over their econs.

The New Role of the BWIs - Structural Adjustment

Previous Role of the IMF and the WB:

1.
2.
3.

To facilitate the economic development of national economies toward

meeting the goals of development outlined by the WB
To see to the containment of Soviet influence through aid and preference
to strategic states in the Cold War
To increase the amount of US trading partners around the world and
consumers of US products

NEW Role:
1.

2.

To facilitate the liberalization of national economies AWAY from

regulation schemes of old, and TOWARD free markets, low tarrifs, and
fiscally austere governments (govts. That spend less on social services
and more creating the attractive conditions for Foreign Direct Investment
(FDI)
To assist countries in the re-valuing of their currencies in line with a
floating exchange rate regime (goal is to increase exports from the
country, which stimulates incentives for foreign capital to invest in that
country

IMF and WB: SAPs

Structural Adjustment Program (SAP)

Problem - A countrys GDP goes into crisis (stagnant or negative growth

annually) - There is not enough earnings to pay back existing debt incurred
by domestic firms from global banks - Private firms go bankrupt - foreign
capital leaves! - Govts. Pick up the debt burden of pvt. Industry Economies go into crisis
Enter the IMF - provides SAP loans DIRECTLY to states - works as
collateral for global banks to issue new pvt. Loans to domestic firms

SAP Conditionality - A list of conditions that must be met before the SAP
will be administered
1.
2.
3.
4.
5.
6.

Cut social spending (known as austerity) - on schools, hospitals, welfare, etc

Focus on economy on export and resource extraction
Devalue currency (makes exports cheaper for foreign buyers)
Remove price controls and state subsidies
Enhance rights of foreign investors vis--vis national laws
Improve governance, fight corruption

 Since the collapse of the Soviet Union and the end of the
Cold War in 1991, The restructuring of national economies
in favor of neo-liberal policies has been referred to as
The Washington Consensus
Coined in 1989 - refers to fiscal austerity, privatization, liberalization of
natl. econs

The Neo-Liberal revolution under Ronald Reagan in the

US and Margaret Thatcher in Britain was a CAPITALIST
REVOLUTION!
One global market, NO balance of Power, no more 1st, 2nd, and
3rd world - Only emerging markets - Everyone has a stake and
NO ONE HAS CONTROL!

From Industrial (Fordist) to Informational Society = The crisis of Fordism

as a regime of accumulation = The crisis of the Welfare state as a mode of
regulation

Manuel Castells The Network Society

Contemporary globalization is post-fordist, post-industrial, and
for many, post-modern
Defined by a process of Informationalization - shift in the Commanding Heights of
the economy from manufacturing to Info-tech.

Advantage in the global market no longer based on raw material advantage,

but on knowledge!
Silicon Valley - New Capital of the Global economy! - Stanford and Berkeley,
new intellectual elites
Cowboy culture of entrepreneurs who believe that everybody can get paid

HOW? - Information Communication Technology

(ICT) Revolution
1971 - Invention of the microprocessor!
Creates a technological opportunity for the real-time trading of goods and services
based on information networks that travel on and through integrated circuits
Lays the technological foundation for a revolution in the capitalist system of
production from FORDISM to INFORMATIONALISM
Opportunities for flexible production/labor

Defense Advanced Projects Research Agency (DARPA) - US Govt. Invents

the Internet to be used as a communication network in the event of a nuclear
war.
Its economic application leads to huge increases in the ability for economies,
production networks, and trade networks to integrate around the world.

 Micro-processors + software programs - together can calculate

exchange rates, predict weather patterns, and make general economic
predictions based on algorithmic data input - INFORMATION is the
PRIMARY Investment
HARDWARE - Memory chip - records info. In a coded system of 0s and
1s (open gate, closed gate) - can represent ALL FORMS OF
KNOWLEDGE regardless of national languages - A global currency of
knowledge
SOFTWARE - programs that use hardware to facilitate a service or
increase the production of a good - Needs constant maintenance, leads to
high quality competitive innovative world that communicates through
networks and media
Diffusion of ICT to other industries - Digitalization - Micro-ization of
everything - space of flows replaces the space of place in the global
economy

I.C.T. - Leading Firms - INTEL (Processors), Microsoft (software),

CISCO (networks), Apple (PCs, Information/Entertainment Access
Hardware), Google (Information Access interface, i.e., search engines)
Facebook, Twitter, YouTube (Social networks)
Speculation based on information - SERVICES emerge to dictate the terms
of production (lean/ flexible production - mass increases in efficiency
Futures Markets - Speculative stock markets where investors purchase
futures in a given sector (ex. Corn)
Buy a future based on a speculated price - price determined by
available information (weather, politics, technology, R&D, ec.)
Actual value at the time of maturity may be more or less than the
purchased futuregambling in the marketplace
World Economy linked a a single unit - network of networks that
links production, exchange, distribution, and consumption of natural
resources the world over (recall Hobsbawn)

Speculative Capital and Capital Flight

Such digital money is referred to as hot money b/c it can be
removed as quickly as it flowed in, if profits are viewed as
threatened.
Capital flight - the outflow of hot specualtive capital - becomes a
constant problem in developing economies around the world
Capital that flows into an economy, on digital circuits, and is then
used by local firms for investment in some development or another
(ex. Real estate)
Little regulation leads to instability and HIGH potential for capital
flight
Example of Asian Financial Crisis in 1996-1997 (See Commanding Heights
Vol. III Video)

Trends
Military application of ICT - Increased surveillance technologies
(satellites, internet monitoring, cell phone monitoring, etc.)
Network warfare (frozen assets, cyber-terrorism and defense, etc.)
lean infantry - un-manned, drone aircraft, etc
US Military expenditure is the largest in the world at ($750 billion in
2008)

Manufacturing: Factories no linger locally owned - Rise of TNCs

Subcontracting firms around the world who have few (maybe
one) client (Nike, Levis, etc.) - Many middle-distribution firms
ONLY have a cyberspace presence - get the contract from the
designer (Nike), and then sub-sub contract the production out
to a domestic producer (Thai shoe company X).

Compression of Time and Space Rise of The Information

Society/The Network Society (See Harvey, C&K Ch. 14)
Virtual Media - Virtual Reality - Virtual Cultures
1.

Living and interacting in real-time networks on line (Facebook, internet

finance, trade, etc)

2.

Virtual culture (e.g. Islamonline.net)

3.

Electronically mediated virtual cultures (2 nd Life, World of War Craft,

SimCity, online gaming, etc.)

Virtual Markets - Lead to instability, volatility, and the potential for DEEP Crisis
.

1994 Mexico, 1997-8 SE Asia, 1998 Brazil, 1998 Russia, 1999 and 2001
Turkey, 1999 Argentina, 2008 US and the World! Next?

Changing Face of Macro-Sociology - Development as an object of study versus a

inevitable process of reality
Collection of alternative theories - Development happens Vs. Devt. As a logic of domination (a
ubiquitous political, economic, and cultural discourse that reproduces global inequality

a)Global Culture Model - Interest in the contradictory rise of the local in the context of the global
(glocalization) and on new media as revolutionary aspect of human communication
b)Interest in study collective identity beyond and underneath the national identity (Global feminism,
environmentalism, anti-g-zation, Islamism, etc) - There might be 1 world system, but its cultural guise
is multiple, inconsistent, fragile, changing, etc. Capitalism can be localized (often at the annoyance
and/or frustration of core states Ex. Economic nationalism, ISI, etc)
c)Global Society Model - Focus on globality (awareness of the global) and on activists who strive to
construct a post-national world (see, Global civil society, cosmopolitanism)
d)Global Capitalism Model Focus on the transnational practices of non-state actorsprimarily on
the practices of TNCs, Trans-national Capitalist Class (TCC), and on the transnational ideology of

TNCs (C&K Ch. 7)

Economic Globalization - Reframing of the relationship between STATES and
MARKETS - "The Global Economy" - the trans-nationalization of trade and
investment based on a global logic of comparative advantage and one world
market integration. Trends are Toward Intensifying Integration.
Inter-regional Trade is largely unprecedented. MAJOR FACTOR IN
INTEGRATION - Financial Integration - Currency Markets (Determined
by Market forces, not by states, ex. Euro)
TNCs are primary actors after states - What does this mean?
More and more states are no longer able to regulate wealth creation
because national boundaries are no longer considered to be an obstacle
to the generation of wealth. NEW MODEL - Global and regional
Production networks.
7 of the top 15 Largest Companies in the world = Oil and Gas!

The Trans-national Corporation (TNC)

Globalist argument - Power of TNCs and the deregulation of national

economies (together with ICT revolution) leads to the erosion of state
sovereignty (the products (and power) of TNCs flow freely over and through
borders) inability of states to protect themselves.
For some globalists, this a good thing? - Creating a global village based
on the mutual recognition of all humans as equal (I.e., consumers or
potential consumers of the same products, same services, etc. in on global
market)
Skeptical argument - Despite the power of and the belief in the free market
the global human rights regime is designed in terms of state sovereignty - is
intended for state enforcement.
Non-state actors, such as TNCs, International NGOs, activist networks, and
insurrectionary groups, etc. operate trans-nationally in a world enforced by
national laws. - Foreseeable problem?

Whose Interests Dominate World Trade?

TNCs - 20% of world production and 70% of world trade. Global corporate
capital has largely supplanted states (save G8 States) as the decision making body
surrounding the organization, location, and distribution of economic power and
resources around the world.

Power of TNCs in states around the world who operate under privileged contract
with states

New global Division of Labor - Developing countries are being subdivided into
"winners" "losers" (East Asia vs. Africa)

KEY POINT - Unregulated! - States are losing their ability to regulate economic
activity, which leads to issues of job cuts, wage cuts, environmental degradation,
and to an overall rollback in national sovereignty.

Intl. regulatory institutions (IMF, WB, WTO) function to reproduce the conditions
of corporate capital, not to regulate its contradictions

The Race to the Bottom: Complicity and Accountability

Race to the bottom: The colloquial signifier given to the phenomenon that
describes that contest between dignitaries and officials that results in a making
countries more inviting for FDI Competition for FDI leads to a domestic
political environment fast-acting and far reaching reforms, which directly threatens
the ability of states to fulfill their duties as the bearer of human rights.

Competition for FDI leads to a condition where states compete for investment. The Race to the Bottom refers to the unwillingness of states to enforce labor laws,
environmental restrictions, gender discrimination, etc. for fear of losing contracts
and of capital flight.

Sub-Contracting makes responsibility difficult to prove.

Corporate Complicity - When a company knowingly funds, supports, or benefits

from a human rights abuse and/or when a company bears witness to abuse and does
not act. Outlined in the UN Global Compact (2000) - The Human Rights and
Sustainability Initiative Targeted Specifically at TNCs.

Human Consequences of Globalization

World of RISK!

Terrorism
Financial insecurity, labor insecurity: Oct. 2011 = DC 11%, MD 7.2%, NJ
9.1%, NY 7.9% PA 8.1% National 8.6% (Nov 2011)
Economic uncertainty/instability in general (2.5 quarters of negative growth in
the US)
Environmental collapse, global warming, loss of biodiversity, etc)
Increased poverty gap globally (top 1% has 40% of total world wealth, top 10%
has 85%) = top 1% in US earn, on average, $960,000/year (is that you?)
Unsustainable population growthhttp
://www.poodwaddle.com/clocks/worldclock/
Rise of xenophobia (e.g., border state minutemen; Islamophobia, calls in US
for an electrified fence, neo-Nazi attacks in Germany against Turks)
Increases in social instability globally (mass shootings/bombings in US/Europe,
domestic violence, femicide, etc) structured domination of women
Rise of global sex trade - human trafficking = 21st century slavery

Question Is the world becoming increasingly more connected at the expense of

national sovereignty? Should human welfare become a global concern?

Detractors and Global Social Movements

Hyper competition in a global market leads to winners and losers! - more losers! Deregulation (while the hopes are high) has led to increased inequality, and social
instability since the end of the Cold War! - But the hopes of neo-liberalism remain
strong!

Globality - The notion of ones own subjectiveness awareness of the global

PROBLEMS with G-Zation:

1. First round of liberal globalization 19 th cent. Euro Colonialism.
2. Second round of G-zation - Keyenesean regulation, the New Deal, the welfare state, the
cOld War - heavily regulated and diverse! Cold War allowed for various experiments with
mixed economic development methods
3. NOW - global markets without regulation or policies for redistribution
4. Growing cadre of young, angry, and educated groups around the developing world STATS: in the MENA - 70% pop < 30, 60% < 20 - young, educated, angry, and patriarchal
(culturally preference men) - increased swamp for the potential growth of radicalism Sub-Saharan Africa - Similar.

Is this stable, or is this risky?

Development of networks and coalitions organized against what are perceived as
negative effects of g-zation.
Old social movements - Labor (products of industrialization - late 19th and early
20th century - labor rights, unions, etc.
New social movements - Gender, race, environmentLATERsexuality,
indigenous rights, various anti-globalization movements (See CH. 18 in C&K)
New discourse framed by Human Rights (rooted in moral outrage!) - typically
framed analytically under international law - usually advocates alternatives
Produced via networks of association and are global - often common, often
competing interests! Includes all of the above
Varying groups represented at WTO in Seattle in 1998, Zapatistas, Al-Qaida (?)
- groups around the world that oppose some aspect (or all aspects) of neo-liberal
globalization - some violent, some non-violent, some large, some small - ALL
ACTIVE and ALL Adapted to ICT!!!!

Topics for Debate: Globalists Versus Skeptics

Empire Versus Global Village

Is there such a thing as the West? The Middle East, Latin

America etc? Does globalization move in one direction, from the
West to the Rest? Or is globalization produce a world society of
fluid reciprocity, localization, hybrid identities (creolization), Etc.?
Does globalization lead to the formation of a global village of
like minded, upwardly mobile, ethnically diverse consumers
connected in an equal, fair, and judicious global viallge (or could
it)?
OR do the processes of economic neo-liberal g-zation lead to to
acolonization of the consciousness in accordance with a world
capitalist empire?

OR