Chapter 5.docx

Chapter 5- The Global South in a World of Powers Global North- Term used to refer to the world?s wealthy, industrialized countries located primarily in the Northern Hemisphere Global South- Term now often used instead of ?Third World? to designate the less-developed countries located primarily in the Southern Hemisphere The Colonial Origins of the Global South?s Current Circumstances The origins and persistence of the inequalities of states stem in part from the fact that today?s modern global system was initially, and remains, a socially constructed reality by, of, and for the most powerful states Indigenous Peoples- The native ethnic and cultural inhabitant populations within countries ruled by a government controlled by others, referred to as the ?4th World? Third World- Cold War term to describe the less-developed countries of Africa, Asia, the Caribbean, and Latin America First World- Relatively wealthy industrialized countries that share a commitment to varying forms of democratic political institutions and developed market economies, including the U.S., Japan, the European Union, Canada, Australia, and New Zealand Second World- During the Cold War, the group of countries, including the Soviet Union, its (then) Eastern European allies, and China, that embraced communism, and central planning to propel economic growth Least Developed of the Less Developed Countries (LLDCs)- The most impoverished countries in the Global South Global East- Rapidly growing economies of East and South Asia that has made those countries competitors with the traditionally dominant countries of the Global North The Global South has the most people but commands little of the world?s wealth Decolonization- Achievement of sovereign independence by countries that were once colonies of the great powers Today, few colonies exist, and the decolonization process is almost complete Nonstate Nations- National or ethnic groups struggling to obtain power and/or statehood Neocolonialism (Neoimperialism)- Economic rather than military domination of foreign countries The First Wave of European Imperialism As scientific innovations made the European explorers? adventures possible, merchants followed in their wake, ?quickly seizing upon opportunities to increase their business and profits? Mercantilism- Government trade strategy for accumulating state wealth and power by encouraging exports and discouraging imports European rulers believed that power flowed from the possession of national wealth measured in terms of gold and silver, and that cultivating mining and industry to attain a favorable balance of trade (exporting > importing) was the best way to become rich By end of 18th century, European powers had spread themselves throughout entire world Classical Liberal Economic Theory- Body of thought based on Adam Smith?s ideas about the forces of supply and demand in the marketplace, emphasizing the benefits of minimal government regulation of the economy and trade Laissez-Faire Economics- Philosophical of free markets and free trade to give people free choices with little governmental regulation Henceforth, European powers continued to seek colonies, but the rationale for their imperial policies began to lose supporters at home The Second Wave of European Imperialism From the 1870s until the outbreak of WWI, a second wave of imperialism washed over the world of Europe Spheres of Influence- An area dominated by a great power China was divided into these by the foreign great powers that carved China into separate zones of commerce Economic Explanations for the New Imperialism Communism- Radical ideology maintaining that if society is organized so that every person produces according to his or her ability and consumes according to his or her needs, a community without class distinctions will emerge, sovereign states will no longer be needed, and imperial wars of colonial conquest will vanish from history Marxist-Leninism- Communist theory as derived from the writings of Karl Marx, Vladimir Lenin, and their successors, which criticizes capitalism as a cause of class struggle, the exploitation of workers, colonialism, and war World-System Theory- Theory claiming that the perpetual and widening inequality among states is explained by capitalism?s international division of labor and production, which over time allows the wealthy core countries to become richer while the peripheral states that supply raw materials and cheap labor become poorer Political Explanations for the New Imperialism Hobson believed that imperialism through overseas expansion was simply a global extension of this inner-European competition for dominance inspired by the realpolitik theoretical premise that all states have an unquenchable thirst for more and more power By the 1800s, Britain emerged from Europe?s perpetual conflict as the world?s leading power By 1970, however, British hegemony began to decline Self-Determination and Decolonization in the Twentieth Century The climate of opinion turned decidedly against imperialism when the 1917 Versailles peace settlement that ended WWI embraced liberalism Self-Determination- Liberal doctrine that people should be able to determine the government that will manage their affairs Part of the reform program by President Woodrow Wilson Territories controlled by Germany and the Ottoman Empire were transferred under League of Nations auspices to countries that would govern them as ?mandates? until their eventual self-rule Colonies were a trust rather than simply a property to be exploited Decolonization was both extraordinarily rapid and remarkably peaceful The UN also contributed to the ?collective deligitimization? of colonialism Conflict between rich Global North and emerging states of Global South began North and South Today: Worlds Apart Most of the people in the Global South face chronic poverty amidst war, tyranny, and anarchy => sometimes described as a ?zone of turmoil? Democracy has spread rapidly and widely since the 1980s Difference in technological capabilities also separate the North and South Developing Countries- Category used by the World Bank to identify low income Global South countries with a 2008 GNI per capita below $905 and middle income countries with a GNI per capita of more than $905 but less than $11,116 Gross National Income (GNI)- Measure of the production of goods and services within a given time period which is used to delimit the geographic scope of production. GNI measures production by a state?s citizens or companies, regardless of where the production occurs Developed Countries- Category used by the World Bank (WDR 2008) to indentify Global North countries, with a GNI per capita of 11,116 or more annually Barter- Exchange of one good for another rather than the use of currency to buy and sell items More than 2.4 billion live in one of the 53 poorest countries use this for economic exchanges of agricultural goods Despite wide differences, a daunting scale of misery and marginalization is thus evident across the Global South, from which only a fraction of its countries have begun to escape Theoretical Explanations of Underdevelopment Development- Processes, economic and political, through which a country develops to increase its capacity to increase its capacity to meet its citizens? basic human needs and raise their standard of living Internal Factors: Classical Economic Developments Theory?s Interpretation Modernization- View of development popular in the Global North?s liberal democracies that wealth is created through efficient production, free enterprise, and free trade, and that countries? relative wealth depends on technological innovation and education more than on natural endowments such as climate and resources International Factors: Dependency Theory?s Interpretation Dependency Theory- Theory that less-developed countries are exploited because global capitalism makes them dependent on the rich countries that create exploitative rules for trade production Dependency theorists also argue that countries in the Global South are vulnerable to cultural penetration by MNCs and other outside forces, which saturate them with values alien to their societies Dependency- Condition of retarded economic growth believed to result from the Global South?s subordination and structural exploitation by the Global North?s advanced capitalistic market economies, making the Global South especially vulnerable to the Global North?s business cycles of expansion and contraction Dualism- Separation of a country into two sectors, the first modern and prosperous centered in major cities, and the second at the margin, neglected and poor Dual societies typically have rural, impoverished, and neglected sector operating alongside an urban, developing, or advanced sector?but with little interaction between the two Newly Industrialized Countries (NICs)- Most prosperous members of the Global south, which have become important exporters of manufactured goods as well as important markets for the major industrialized countries that export capital goods Dependent Development- Industrialization of peripheral areas within the confines of the dominance-dependence relationship between the Global North and the Global South, which enables the poor to become wealthier without ever catching up to the core Global North countries Closing the Gap? The Global South?s Prospects The ability for these rapidly developing countries to escape the syndrome that still affects the rest of the Global South suggests that others can succeed as well Fueling Growth Through Oil The 16 developing-country exporters of oil and other fuels, and especially the 12 members of the OPEC, have escaped the LLDC?s grim fate The Global East Another group of countries that inspire hope and awe are the ?middle income? and rapidly rising NICs in East and Southern Asia Semiperiphery- to world-system theorists, countries midway between the rich ?core? or center, and the poor ?periphery? in the global hierarchy, at which foreign investments are targeted when labor wages and production costs become too high in the prosperous core regions Asian Tigers- Four Asian NICs that experienced far greater rates of economic growth during the 1980s than the more advanced industrial societies of the Global North S. Korea, Singapore, Taiwan, and Hong Kong- Neomercantilism: protecting infant industries from foreign competition Outsourcing- Transfer of jobs by a corporation usually headquartered in a Global North country to a Global South country able to supply trained workers at lower wages The Global South?s Foreign Policy Response to a World Ruled by the Great Powers Remaining countries in the GS are increasingly vulnerable, insecure, and defenseless => products of both internal and international factors In Search of Power Nonalignment Nonalignment- Foreign policy posture that rejects participating in military alliances with rival blocs for fear that formal alignment will entangle the state in an unnecessary involvement in war Nonaligned States- Countries that do not form alliances with opposed great-powers and practice neutrality on issues that divide great powers Nonaligned Movement (NAM)- Group of more than 100 newly independent, mostly less-developed, states that joined together as a group of neutrals to avoid entanglement with the superpowers? competing alliances in the Cold War and to advance the Global South?s primary interests in economic cooperation and growth The challenge facing the nonaligned states today is how to promote their interests in a world where few listen to their voices National Security GS became the world?s killing fields Failed States- Countries whose governments have so mismanaged policy that their citizens, in rebellion, threaten revolution to divide the country into separate independent states Military Intervention- Overt or covert use of force by one or more countries that cross the borders of another country in order to affect the target country?s government and policies Reducing Vulnerability to Environmental Disasters Developing countries? vulnerability to natural environmental calamities is another source of turmoil In Search of Prosperity Import-Substitution Industrialization- Strategy for economic development that centers on providing investors at home incentives to produce goods so that previously imported products from abroad will decline Many countries in Latin America have pursued development through this Export-Led Industrialization- Growth strategy that concentrates on developing domestic export industries capable of competing in overseas markets Not all GS economies are positioned to survive in this highly competitive globalized market A New International Economic Order? Group of 77 (G-77)- Coalition of 3rd World countries that sponsored the 1963 Joint Declaration of Developing Countries calling for reform to allow greater equality in North-South trade Used their voting power to convene the UNCTAD Later became permanent UN organization through which GS would express its interests concerning development issues New International Economic Order (NEIO)- 1974 policy resolution in the UN that called for a N-S dialogue to open the way for the less-developed countries of the GS to participate more fully in the making of international economic policy GN rebuffed many of the South?s proposals Regional Trade Regimes To promote growth through regional economic agreements, in the 1990s the global economy began to subdivide into 3 ?trade blocs??one in Europe, with EU as hub, second in Americas with U.S. as center, and 3rd in Global East, with Japan and China dominant In America: NAFTA formalized In Asia: APEC- created free-trade zone during next 25 years In Sub-Saharan Africa: SAGC largest free-trade areas in region (of 12) Trade, Aid, Investment, and Debt Relief Developing countries have long pleaded for ?trade, not aid? to improve their global position, turning to the NIC?s and the GE experience to support the view that access to the GN?s markets is critical to GS economic growth Foreign Aid- Economic assistance in the form of loans and grants provided by a donor country to a recipient country for a variety of purposes Bilateral- Interactions between two transnational actors, such as treaties they have accepted to govern their future relationship Most foreign Aid is bilateral and termed ODA Official Development Assistance- Grants or loans to countries from donor countries, now usually channeled through multilateral aid institutions such as the World Bank for the primary purpose of promoting economic development and welfare Many aid donors have become frustrated with the slow growth rates of many GS recipients and have grown impatient and doubtful of the effectiveness of their aid programs, despite strong evidence that foreign aid has made a positive difference Donors have grown increasingly insistent on ?conditionality? or demands that aid recipients must meet to receive assistance Remittances- Money earned by immigrants working in rich countries (which almost always exceed the income they could earn working in their home country) that they send to their families in their country More than double the global total of foreign aid is primarily funneled through these Foreign Direct Investment (FDI)- Cross-border investment through which a person or corporation based in one country purchases or constructs an asset such as a factory or bank in another country so that a long-term relationship and control of an enterprise by nonresidents results Externalities- Unintended side effects of choices that reduce the true value of the original decisions, such as trade protectionism against foreign imports increasing the costs of goods to consumers and stimulating inflation Heavily Indebted Poor Countries (HIPCs)- Subset of countries indentified by the World Bank?s Debtor Reporting System whose ratios of debt to gross national product are so substantial they cannot meet their payment obligations without experiencing political instability and economic collapse Washington Consensus- View that Global South countries can best active sustained economic growth through democratic governance, fiscal discipline, free markets, a reliance on private enterprise, and trade liberalization An underqualified free-market approach to development that minimizes the role of the state may not be sufficient by itself to create rapid economic growth Other factors, such as fair, effective systems of property and regulatory law, and honest, responsive political institutions, need to augment trade openness The Global South?s Future Considerable change occurred among the newly emergent states as post-WWII decolonization proceeded, but much also remained the same Relationships between the world?s developed and developing countries will no doubt continue to change The future of GS development is certain to depend in the near term on the activities of the GN Kegley, Charles. World Politics: Trend and Transformation.