Issue 21 Does Hugo Chavez threaten Hemispheric Stability and Democracy? Colombia Guyana Brazil Hugo Chavez biography Chavez was born in 1954 He is the son of middle- class school teachers Graduated in 1975 as an engineer Hugo Chavez’s family Committed a failed coup in 1992 Spent two years in prison right after the attempt to overthrow the government Won the presidency in 1998 and was reelected twice: 2000 (referendum) and 2006(elections) 1992 Chavez calls for the surrender of all forces on national TV. Simón Bolívar, the Liberator of Spanish South America, tried to keep an area composed of what is now Colombia, Ecuador, Venezuela, and Panama together as a large single country, known as La Gran Colombia. Chavez echoes Bolivar’s ideals After becoming President, Chavez changed: the name of the country: from Venezuela to Bolivarian Republic of Venezuela The name of the currency was changed: from Bolivar to Bolivar Fuerte The constitution was amended (giving more power to the executive) The flag 7 -star Flag of Venezuela, in use 1930–2006. Prior to 2006, the horse was running to its left with its head turned to its right. Domestically, Chavez portrays himself as the protector of the masses. Oil, is the country biggest resource. Venezuelan President Hugo Chavez, Iranian president Mahmoud ahmadinejad, Saudi Arabia King Abdullah, and Iraq’s Prsident Jalal talabani. Openning session of the third OPEC Summit in Riyadh, Saudi Arabia. Iranian President Mahmud Ahmadinejad presented Chavez with the Islamic Republic Medal in a ceremony at Tehran University President Chavez criticizes the US for its imperialism and has joined: *Iran *Cuba *Russia *China *Bolivia *Ecuador *Nicaragua ISSUE # 10 IS MILITARY INTERVENTION IN DARFUR JUSTIFIED? VIDEO Chapter 5 The Global South in a World of Powers The Global North and the Global South p. 127 Australia New Zealand During the Cold War the world was divided into… 1st world: composed by industrialized great powers: Europe, North America, Japan 2nd world: composed by Soviet Union and its Allies Former Soviet Union units (except Russia) have become part of the Global South; i.e. Uzbekistan, Turkmenistan, Tajikistan. 3rd world: composed by former colonies, less developed states Today, we talk about the Global North and the Global South Major Dimensions that Differentiate the Global North from the Global South Politics Technology Wealth Demography Some States of the Global South may share some of the characteristics of the GN but not all. King Abdullah …but not democratic Wealthy… Population: 27 m. Population today: 1.3 billion Big exporter, but overpopulated and non-democratic Chinese Communist Party Flag “The Global South is home to more than 85% of the world’s people, but commands less than 20% of its wealth.” pg 129 China: 1.3 billion people India: 1.1 billion USA: 300 million Indonesia: 241 million Brazil: 186 million World population 6.7 bn 20% 17% 5% 3.4% 2.8% Within the Global South, distinguish between Developing Countries and LLDC countries p. 129 Examples: Most Sub-Saharan countries such as Zambia, Uganda, Mozambique, Lesotho, Mali. Also: *Haiti *Afghanistan *Nepal * Bangladesh *Myanmar LLDC’s: Least Developed of Less Developed Countries Sahara desert Diversity in the Global South Global South Developing countries: Turkey, Egypt, South Africa, Singapore, China. LLDCs Diversity in the Global South Politics Democratic: Costa Rica, Chile Autocratic, dictatorships: Myanmar, North Korea, Sudan Technology Demography Global North Peace Global South vs. North and South Today: World’s Apart p. 137 Skip pgs 130 - 136 Violence: - Intra-State Conflict (Civil War: Sudan, Rwanda, Congo) - Inter-State Conflict Wealth Poverty Low income countries (LLDC): Cambodia, Haiti Middle income countries: Brazil, Malaysia: great producers of manufactured goods. Kuwait, Qatar: great petroleum exporting countries. Global North Democracy Technologically Innovative Market economy Technologically dependent Protectionism w/ expansion of market economies Democratic / Non-Democratic Governments Run by dictatorships, single political parties: Kim Jong. North Korea leader Raul Castro. Leader of Cuba Hu Jintao Leader of China vs. Global South Costa Rica, Chile (D) Measuring Disparities between Global North and Global South pg 137 GNI – “total value produced w/in the state & income received regardless of where the production occurs” GDP – total production that takes place within the state GDP + income received from other countries = GNI U.S. GNI State stocks Country A Country B Country C $ $ $ $ MNC MNC MNC GNI - 2007 GNI per capita: the gross national income divided by the population p. 138 Developed Countries: a category used by the World Bank to identify Global North countries, with a GNI per capita of 11,116 or more annually GNI per capita – 2008 World Development Indicators database, World Bank, 1 July 2009 Norway 76,450 United States 47,580 South Korea 21,530 China $2,270 India $1,070 Theoretical Explanations of Underdevelopment pg 141 Classical Economic Development Theory: The GS lacks components that the GN could supply, such as.. - Capital - Education - Skilled labor - Technology All these in the context of a market economy Theoretical Explanations Cont… 2. Structural Theories 2.1 Dependency Theory Tools used by the core to perpetuate disparities between GN and GS: MNC IO’s like the IMF, WTO (agricultural subsidies, lack of environmental and labor regulations) Consequence: “a dual society emerges” Definition of dualism pg. 142 2.2 World System Theory Export manufactured goods Examples of Countries that belong to the semi-periphery: - South Africa - Mexico - Brazil - China - India - Malaysia - Philippines - Thailand - Turkey Asian Tigers: def. pg. 144 - South Korea - Singapore - Taiwan - Hong Kong OPEC Members (i.e. Saudi Arabia, Venezuela, Iran, Iraq, Kuwait, Indonesia, Qatar) Non-OPEC Members (i.e. Mexico, Kazakhstan, Azerbaijan) New Industrialized Countries (def. pg. 143) Characteristics of New Industrialized Economies (pg 144) Value of Currency is stable & Inflation is under control Protection of Infant Industries from foreign competition Openness to foreign investment Focus on exporting to GN Free market economies (neo-liberalism) The Global South’s Foreign Policy Response to a World Ruled by the Great Powers (pg. 146) Non-Aligned movement: created in 1961 by leaders from 25 countries that met in Yugoslavia. currently 116 members plays a political role The founding leaders of the NAM met in New York in October 1960. From left: President Nehru (India), Nkrumah (Ghana) , Nasser (Egypt), Sukarno (Indonesia) and Tito (Yugoslavia) Fourteenth Conference - Havana, September 15-16, 2006 Member states of the Non-Aligned Movement (2007). Light blue states have observer status China Kazakhstan Croatia Bosnia - Herzegovina Serbia Armenia Paraguay Uruguay Examples of Statements issued by the Non-Aligned Movement: Opposed imperialism Opposed racist regimes (ex apartheid gov) Opposed all types of aggression towards and occupation of the Global South: Criticized President Bush’s foreign policy in regard to Iraq Condemned Israel/US for its policy against Palestine criticized the US overt control over the United Nations and other international structures Opposed proposal to make Germany / Japan permanent members of the UNSC Challenge of the N.A.M.: its members are heterogeneous (ex: Iran, Iraq, North Korea, Venezuela) National Security (pg. 146) “More than 90% of the inter-and intrastate conflicts and 90% of the casualties in the past half-century occurred within the Global South…” Cause of Intrastate conflict: Poverty Multi-ethnic societies Corruption The Global South is populated by “failed states” Examples of Failed States Sudan (Darfur) Congo Gov. fights against 2 rebel groups: SLA (the biggest one) Arab population to the north Black Africans to the south. Conflict between tribal groups: Hema (minority) Lendu (majority) Hutus Tutsis Sudan Zimbabwe Chad Iraq Afghanistan Pakistan Burma Haiti Nigeria Kenya Ethiopia North Korea Arms Acquisition “In the Global South, military spending typically exceeds expenditures on health and education.” “The Global North sells most of its arms to the unstable Global South.” Top Arms Exporters: USA 45.4 bn Russia 40.5 bn France 11.1 bn UK 6.9 bn Netherlands 3.6 bn ARMS SALE Russia also sells to: Venezuela S. Arabia RUSSIA North Korea China Iran Syria US Sells to: Taiwan India Colombia Indonesia Turkey Guided Missiles New International Economic Order p. 148 Set of proposals made by the Group of 77 (1974) to revise principles governing the International Economic System. The Group of 77 is a “loose coalition of developing nations, designed to promote its members' collective economic interests.” (p.148) Creates enhanced joint negotiating capacity in the United Nations Supports the creation of the New Economic International Order G-77 Map* *Composed by 132 states Main Postulates of NIEO International Trade should be based on the need to ensure fair prices for raw materials Revision of WTO/GATT Rules (including subsidies on agricultural products) Creation of mechanisms to transfer technology to developing countries separate from direct capital investment Low tariffs for exports of goods from developing countries, especially LLDC countries During the 2003 WTO ministerial conference held in Cancun, Mexico, Global south countries lead by China, India and Brazil called for an end to agricultural subsidies. Trade, Aid, Investment, Relief. page 150 Foreign Aid. Def. Levels of foreign aid to the Global South have declined Aid can be: Bilateral – known as ODA Multilateral (IMF, World Bank, Inter-American Development Bank) Goal of Foreign Aid Reduction of poverty Environmental protection Assistance to refugees Humanitarian disasters Security issues Pg 153 Who is the most generous donor? The United States – $27.5 bn in ODA Who is the most generous donor with regard to their GDP? Norway Q: Who gets more ODA – Developing Countries or LLDC’s? Global remittances for 2007 – $318 bn Global ODA for 2007 -$104 bn A: Developing Countries Q: Which is higher – the total amount of remittances sent by immigrants to the Global South or the total amount sent in ODA? A: Remittances: Pg 152 The US announced that in 2006, it would increase its ODA budget to $5 billion annually over the next 3 years in aid to 17 eligible countries. This is known as the Millennium Challenge Account Initiative. Foreign Direct Investment FDI.- definition pg. 154 branches plants offices main office Branches, subsidiaries and offices are subject to the law of receiving state Foreign Direct Investment Q: Where does most FDI go? (pg 162) Europe Asia Pacific Latin America Africa/Middle East LLDC’s receive only 0.2% of all foreign investment Ford Automobile Co. facility in China Asia Pacific 42.7% Europe 39.9% Africa/Middle East 8.3% Latin America 9.1% Regional FDI share 2005 Debt Relief (pg 158) 28 countries have been identified as heavily indebted poor countries (HIPC’s) DEBT RELIEF In 2005, IMF agreed to forgive $40 bn worth in debt for 18 of the poorest countries of the world WB Enhanced HIPC initiative Debt Relief (pg 163) Q: Why is it important for the Global North to grant debt relief to HIPC’s? Q: Should the Global North forgive the debt of LLDC’s? Nicaragua enters the Highly Indebted Poor Country (HIPC) initiative along with 22 other countries. Providing that Nicaragua complies with IMF/World Bank structural adjustment conditionality, the country’s debts will be reduced from $6.4bn to $1.9bn over the next few years.