Download World Market

Historically, why did developing countries fail to advance
in their economic development while the AICs advanced?
World System Theory explains:
• Power structure:
Colonialism/Imperialism
• Unequal Trade relations: Periphery/Core
• Technology:
Manual/Industrial
• ODL/NDL based on:
o Racist ideology:
Subjection/Dominance
o Investment:
Labour/Capital
Pre-industrial political power system:
C 9th -15th A.D. : Feudalism:
http://www.youtube.com/watch?v=68VfakYDxd4 5 min 2010
• A system of political organization
• Elite called a "lord" controlled the land
• Common peasants, called "vassals" tilled the
lord’s land
• These peasants were serfs and served as
warriors in the lord’s army
16th C -Enclosure movement & cheap labour
http://www.youtube.com/watch?v=l0nM5DU4ADI 9.4min
Major forces that shaped modern geopolitics:
18th C: Two major forces:
• Imperialism & the rise of Colonialism
• Industrial revolution:
o affected one-third of the world’s population.
19th C– mid 20th C:
• Colonial capitalism
Later 20th C :
• Neo-liberalism
• Global Corporate capitalism
• Communication Revolution
o affects most of the global population
http://www.youtube.com/watch?v=lO-4DkFh5ww 7min imperialism 2012
Imperialism gave rise to global colonialism:
Colonial exploitation increased the colonizers’
wealth through industrial revolution
Imperialists:
• Established their colonies
• Military & political control
• Economic exploitation of colonial land and
labour
Colonialism (15th – 20thC)
• A system in which a state claims
sovereignty over territory and
people outside its own boundaries.
http://users.erols.com/mwhite28/1907powr.htm
Imperialism and the Balance of Power
L.Am:date of independence
http://en.wikipedia.org/wiki/File:Latin_American_independence_countries.PNG
Imperialism led to :
• Colonialism
• Industrial revolution :
• Rise of the Nation State:
• Separation of the state from church
• Rule of Law
• Taxes and military replaced feudal serfdom
• Capital accumulation (from 19 C)
1939
http://www.mcps.k12.md.us/departments/isa/ninve
st/imperial/impandworld.htm#bargraphs
1939
http://www.mcps.k12.md.us/departments/i
sa/ninvest/imperial/impandworld.htm#bar
graphs
What was the colonialist ideology?
• Ideology of “White Man’s Burden”
o “Cultural superiority of the West”
o Rejection of the uniqueness of each country’s
social and political culture
The White Man's Burden (R. Kipling’s poem)
Take up the White Man's burden-Send forth the best ye breed-Go bind your sons to exile
To serve your captives' need;
To wait in heavy harness,
On fluttered folk and wild-Your new-caught, sullen peoples,
Half-devil and half-child.
(7 stanzas)
http://www.kipling.org.uk/rg_burden1.htm
Colonialist ideology of Racial Superiority
What is White Man’s Burden?
It suggests that White people have a duty to rule over
other ethnic/ cultural groups for advancing their
cultural development by adopting the superior western
values.
White Man’s Burden (cont’d)
•A racist view of non-European people as
childlike and demonic
•a metaphor for a condescending view of nonWestern cultures & economic traditions
•Emphasizes European ascendancy and
dominance known as "cultural imperialism".
http://en.wikipedia.org/wiki/Th
e_White_Man's_Burden
The white man's burden - a satirical view
http://en.wikipedia.org/wiki/The_White_Man's_Burden
Imperialism led to :
• Colonialism
• Industrial revolution : http://www.youtube.com/watch?v=3Efq-aNBkvc 3.3 min
2009
• Rise of the Nation State:
• Separation of the state from church
• Rule of Law
• Taxes and military replaced feudal serfdom
• Capital accumulation (from 19 C)
Industrial revolution
• Begins in 18th C
• Establishment of the capitalist economy
Colonialism:
http://www.public.iastate.edu/~cfford/342WorldHistoryModern.html
Industrial revolution dates and inventions:
http://www.victorianweb.org/technology/ir/irchron.html
Imperialism led to :
• Colonialism
• Industrial revolution :
• Rise of the Nation State:
• Separation of the state from church
• Rule of Law
• Taxes and military replaced feudal serfdom
• Capital accumulation (from 19 C)
What is a nation state?
• A state with a single national identity,
e.g.: In Switzerland and U.S.A: national
identity despite religious, ethnic, or
linguistic differences
Imperialism led to :
• Colonialism
• Industrial revolution :
• Rise of the Nation State:
• Separation of the state from church
• Rule of Law
• Taxes and military replaced feudal serfdom
• Capital accumulation (from 19 C)
Separation of church and state:
The spheres of power of organized religion
and the nation state are distinctly separated by
conventions and judicial decisions:
Thomas Jefferson (A Founding Father of the
US) wrote in his letter to the Danbury
Baptists Association in 1802: "wall of
separation between church and state,"
Separation of church and state around the world.
States with no state religions
States with state religions
States with ambiguous data or no data
http://en.wikipedia.org/wiki/Separation_of_church_and_state#Ancient_history
Imperialism led to :
• Colonialism
• Industrial revolution :
• Rise of the Nation State:
• Separation of the state from church
• Rule of Law (http://www.youtube.com/watch?v=XAJVu9LK7WE) 4 min 2011
• Taxes and military replaced feudal serfdom
• Capital accumulation (from 19 C)
Rule of law: (as a term, used since the 17th C)
• No one is above the law
Imperialism led to :
• Colonialism
• Industrial revolution :
• Rise of the Nation State:
• Separation of the state from church
• Rule of Law
• Taxes and military replaced feudal serfdom
• Capital accumulation (from 19 C)
Governments’ Revenues in the Early 20th C :
• Colonizers taxed their colonies (see, Map)
an important scholarly paper on how colonial non-slave labour was taxed
http://www.cfeps.org/pubs/wp-pdf/wp25-forstater.pdf
Government Revenues in the Early 20th
Century:http://users.erols.com/mwhite28/1907powr.htm
The size of the flag shows the relative size of the government's income
Africa in the Early Twentieth Century
http://users.erols.com/mwhite28/afri1914.htm
Imperialism led to :
• Colonialism
• Industrial revolution :
• Rise of the Nation State:
• Separation of the state from church
• Rule of Law
• Taxes and military replaced feudal serfdom
• Capital accumulation (from 19 C)
Today’s Emerging economies’ past: For 18 centuries
until 1820, they produced 80% of world GDP
• 18th C: Colonialism and Europe’s hegemony - In
1950 DW’s share fell to 40%.
Now, economies of Emerging Countries, e.g., India,
Brazil, Russia & China:
• Past 10 yrs: Rapid growth of their share of capital
flows and trade in world market
China and India:
• Re-Emerging economies
• 2010: EM share of global GDP at PPP : 51%.
• From the 21st C: the world's two biggest
economies.
http://www.imf.org/external/np/speeches/2011/020711.htm
Purchasing power parity (PPP)
A formula for comparing the purchasing power of different
currencies
How?: It estimates the extent to which the exchange rate
between countries have to be adjusted according to its
currency’s purchasing power.
Why?: To measure the equivalence (parity) of currencies in
terms of their purchasing power, i.e.
• How much money would be needed to purchase the
same goods and services in different countries?
• When PPP rate is used, the amount of a country’s
money thus has the same purchasing power in that
country compared to that in other countries.
2010 data
http://www.economist.com/blogs/dailychart/2011/08/emerging-vs-developed-economies
http://www.imf.org/external/pubs/ft/fandd/2011/06/straight.htm
GDP and GDP growth rate 2010
http://www.tradingeconomics.com/Billing/Analytics.aspx?Source=RankButtonInChart
Market economy:
• primarily relies on interactions between buyers
and sellers to allocate resources
World Market :
• Commodity traded globally
• Trade based on supply and demand
• Bid for buying