Bottom Billion and Reading Quiz

The Bottom Billion by Paul Collier

-5 billion are well off or rapidly getting there and 1 billion falling behind -change must come from the bottom or primarily from within -development biz- big aid agencies who don't find it safe and productive to live and work in the most difficult countries -development buzz- generated by rock stars and celebrities with simple messages, slogans, images, and anger, sometimes characterized as "heart with no head" -4 big traps of poverty: 1. conflict 2. natural resources 3. landlocked with bad neighbors 4. bad governance -70% of the bottom billion are in Africa -life expectancy= 50 years -infant mortality= 14% -long-term malnutrition= 36% -China and India who were poorer than the bottom billion broke free in time to penetrate global markets -73% of the bottom billion are in a civil war or have recently been through one -when the economy is weak, the state is weak and rebellion is easier -sometimes rebel movements get finances from resource exporters in return for future deals - civil war causes: economic losses, disease, deterioration in political rights -95% of global production of hard drugs comes from conflict countries- conflict provides territory outside government control for illegal activities to operate -3 economic characteristics make a country prone to civil war: 1. low income 2. slow growth 3. dependency upon primary commodity exports -the discovery of natural resources in the the context of poverty results in misuse of its opportunities in ways that make it fail to grow and results in stagnation -resource rents make democracy malfunction -autocracies produce much more growth than democracies when there is natural resources because when there is plenty of money, leader tend to embezzle funds, spend on pet projects, and buy votes through contracts -resources reduce the need to: 1. tax 2. undercut public scrutiny 3. erode checks and balances 4. leave electoral competition unconstrained -landlocked countries must export to neighboring countries or through infrastructures to the coast; Uganda=poor, Switzerland=rich -30% of Africa is resource-scarce and depends on neighbors for growth -governance matters, conditional on opportunities: Robert Mugabe -countries who have done better since 1980 have generally exported labor-intensive manufacturers and services -exporters need an environment of: 1. moderate taxation 2. macroeconomic stability 3. a few transport facilities -Why is bad governance so persistent? some benefit; the leaders of many of the poorest countries are super-rich -3 characteristics to encourage a turnaround: 1. large populations 2. higher proportion of people with secondary education 3. recent emergence from a civil war -probability for a turnaround in any given year: 1.6% -Outside interventions: 1. characteristics to help: 1) higher income 2) larger population 3) greater proportion of population with education 2. characteristics to hurt: 1) leader has been in office for a long time 2) country experiences a favorable shift in trade 3) country recently emerged from a civil war -globalization is hurting bottom billion because of global trade (to others), flow of capital (out), and migration of people (out) -aid is subject to diminishing returns- as you keep on increasing aid, you get less bang for your buck--at about 16% of GDP, aid ceases to be effective -oil is a huge injection of budget support for the bottom billion -3 important roles of the military: 1. restoration of order 2. maintaining post conflict peace 3. preventing coups -Western banks provide safe havens for the criminals of the bottom billion -voluntary norms enforced by peer pressure -trade policy for reversing marginalization: we waste own money subsidizing the production of crops that then close off the opportunities for people with few alternatives -4 instruments for action 1. aid 2. security 3. laws and charters 4. trade -use the first quite badly and the others scarcely at all

Waltz's Globalization Governance

-Many globalizers underestimate the extent to which the new looks like the old. In any competitive system, the winners are imitated by the losers, or they continue to lose -What I found to be true today: The world is less interdependent than is usually supposed -Because technological innovation is rapid, and because economic conditions at home and abroad change often, states that adapt easily have considerable advantages -In real terms, America's 1995 military budget approximately equaled the 1980 budget, and in 1980 the Cold War reached it peak -system of balanced states: states of Europe for 300 hundred years of the modern state system; US and the Soviet Union; since the end of the Cold War, the US has been alone -Implications for international politics: the more interdependent the system, the more a surrogate government is needed: benign hegemony is somewhat a contradiction in terms -Americas pulling power as the locomotive at the head of mankind is at its peak and cannot be sustained for 2 main reasons: 1. population vs. world's population--cannot sustain present world burdens indefinitely 2. the other countries may not enjoy being placed at the back of the train -Hopefully, the predominance of American and the militarization of international affairs will diminish with time -The main difference among states is their growing inequality -politics prevails over economics

Nye and Keohane's "Realism and Complex Interdependence"

-complex interdependence=the opposite of realism -3 assumptions are integral to the realist view: 1. states are the dominant actors in world politics 2. realists assume that force is a usable and effective instrument of policy 3. realists assume a hierarchy of issues in world politics--prioritize military security over economic and social affairs -The characteristics of complex interdependence: 1. multiple channels connect societies 2. the agenda of interstate relationships consist of multiple issues that are not arranged in a clear or consistent hierarchy- difference between domestic and foreign issues becomes blurred 3. military force is not used by governments toward other governments within the region or on issues Agenda setting -we expect states and actors to "shop among forums"-maximize their advantage by broadening or narrowing the agenda -interpretation that states act in their own interest: 1. which self? 2. which interest? -international organizations are frequently congenial institutions for weak states: one-state-one-vote norm of the UN system favors coalitions of the small and powerless

Serneau's "Class: A World of Rich and Poor"

-emerging markets= third-world stocks -International comparisons in income and well-being: highest=Norway, lowest=Sierra Leone -the double divide: a big gap between rich and poor nations and a big gap between rich and poor within nations -the richest 5 percent of the world's people receive more than 100 times the income of the poorest 5 percent -the closing of the worldwide gap is due to gains in Asia and in China and India -the wealth of nations: Adam Smith -utilitarianism: the essence of morality is gaining the greatest good for the greatest number -Smith believed in the right of life, liberty, and the pursuit of happiness and that these freedoms would lead to greater wealth (liberal, neoclassical view); encouraged privitization and Reagonomics -laissz-faire capitalism- the "invisible hand" of the market would ultimately turn this selfish ambition into the greatest good for the greatest number -conservatives- distrusted commerce and believed society needed the heavy hand of the king and the church -neo-liberal- free trade/free market supporters opposite in the US -libertarians- believe in a hands-off approach to governance -Karl Marx: -believed capitalism would turn into pure communism (a system of common ownership for the common good) -deep contradictions in the system of capitalism, causing it to unravel 1. growing divide between owners and workers 2. continual crisis of profit for owners 3. workers driven to the level of subsistence 4. greater solidarity and class consciousness among workers Seeking a Third Way: An optimal hybrid? -free market capitalism is based on 1) the benefits of competition but owners have been tempted to use their growing powers to limit competition 2) relative equality yet overtime tends to produce great inequality Why are poor nations poor? 1. modernization- developing nations need modern ideas, institutions, governments, and technology 2. dependency- World Systems Theory- wealthy core supported by a poor periphery since the 1500s -poverty came at the end of the neolithic revolution- the transition to farming -culture feared fatalism- living for the day rather than planning for the future and a distrust of outside institutions market conundrum- markets work but under conditions of relative equality, but over time, they tend to produce conditions of extreme inequality -logic of "one dollar, one vote"- some have no voice at all -tragedy of the commons by Hardin- a space that belonged to all would eventually be neglected and abused by all

World Society Theory

-emphasizes culture, not economy -"world polity theory" -response to modernization theory -Key observation: While countries differ a lot in their level of development, many aspects of their governments look quite similar -argues that this conformity reflects the existence of common global culture (how to set up governments, how to organize school systems, how to raise children) -world society=organizations, associations, and culture in the international sphere -there is no strong world "state" rather there are associations (IGOs, NGOs) -Observation

Karl Marx

-influence was based on one key principle: the way humans produce the things they need to live is the essential foundation of any society -human history best understood through history of different economic systems -wrote The Communist Manifesto with Friedrich Engels; divides all history into three modes of production 1. Ancient societies: based on slavery 2. Fuedalism: characterized by largely agrarian societies with a tiny group of landowners 3. Capitalism: economies organized around market-based exchange -each mode of production has 2 equal parts: 1. forces of production: technological and productive capacity of a society at a point in time 2. social relations of production: relationships and inequalities between different kinds of people within economy -Das Kapital: anticipated that capitalism would become the dominant global economic system; believed the conflict between members of bourgeoisie and proletariat at heart of capitalist societies -Marx: When mode of production becomes stagnant, social revolution likely; just as capitalists overthrew feudalism, proletariat would overthrow capitalism; would bring out the rise of socialism; productive forces owned by everyone -Marx's relevance today---was an early theorist of globalization, claimed socialist revolution most effective after long period of capitalist growth in development

Schofer's "Sociological Institutionalism and World Society"

-institutionalism- shift attention away from individual social actors and toward the social context or environment in which actors are embedded World society and World Culture -education systems in sub-Saharan Africa are surprisingly like those of Western societies -isomorphism- similarities among societies -cultural models- conventional ideas about governance and education -top-down process: how global models and discourses diffuse to nation-states The content of World Culture -world society scholars view global culture as a product of history -Christendom and the Enlightenment formed the basis for emergent European culture -European dominance and colonial expansion propagated Western ideas -Allied victory in WWII and the emergence of the US as a dominant power shifted global culture in a more liberal, individualistic, and "American" culture Disorganization and loose coupling -neo-realist perspective= states are coherent and unitary actors -world society sees= individuals, states, and organizations as loose structures with internal inconsistencies Related traditions -constructivism= accepts the idea that culture matters- most often conceptualized as "norms" Myths and misperceptions 1. WST ignores actors, interests, and power 2. WST cannot explain the origins of cultural forms or cultural change 3. WST is equivalent to the INGO effect 4. WST is equal to ceremony without substance 5. WST predicts that everything will diffuse 6. WST is a normative and/or teleological perspective similar to modernization theory 7. WST fails to attend to mechanisms New Directions in World Social Theory -role of individual actors -institutional change as a "learning" process, in which organizations or states copy newly successful actors -theorize the substantive outcomes rather than focus solely on formal policies or laws Conclusion -world society shift from functionalism and Marxism to institutionalism -cultural/phenomenological institutionalism vs. actor-centric

Brawley's "Theoretical Lenses for Viewing Globalization"

-mercantilism- aimed at maintaining a positive balance of payments internationally; attractive to governments as a source of taxes--tended to favor certain groups; classical liberalism fought this- pushed for trading with whomever you wish and the role of voluntary action (Smith's "invisible hand") -arguments against globalization: 1. trade is an unfulfilled promise 2. loss of jobs and investments to Mexico 3. benefits countries as a whole, hurts individuals 4. makes labor appear as no longer scarce- wages will fall 5. larger volumes of trade makes it harder to monitor flows of illegal substances Keynesian view: markets and globalization as sources of instability -markets can never be separated from societies -came under attack in the 1970s with the mismanagement of the US dollar -Canadians argue that the benefits of government outweigh those costs- national healthcare is more effective and cheaper -government expenditures do not contribute to investment but enhance the quality of what is produced Marxist view: globalization as "creative destruction" -manufactured goods imported from Britain threw large numbers of Indian laborers out of work -believed the reshaping of Indian society was necessary for future economic/social developments The Realist View -state is the key actor in international relations -anarchic- respects no authority over itself -ample ties between states- gold standard Globalization as so-operation and interdependence: institutionalism -similar but different from realism -realism= states rank security as their highest goal -institutionalism= states pursue a mix of goals and seek interstate connections that would benefit all Globalization and a green perspective -positive view: globalization caused the expansion of the scale of social life -advocacy of localism: distance blinds one to the side-effects produced by these actions, such as abuse of labor or destruction of the environment The Consequences of Globalization for Democracy -distance in decision-making between policy-creators and those truly accountable to the voters -legislative "log-roll"- when every group lobbies for its own narrow interests but legislators roll all these demands together -tensions between democracy and high levels of interdependence Globalization as a new social context: constructivism -emphasizes the need to consider how social relations construct the identity of relevant actors

The Bible and the Gun

-the arrival of Europeans in the 16th century -racism was born out of slavery -explorers exploited regions of Africa for gold and ivory -David Livingstone- best loved European explorer by Africans; founder of Victoria Falls; missionary -Most missionaries believed only they could raise Africans out of spiritual degradation -Missionaries wanted Africans to renounce their beliefs,, ancestors, and culture -"the Bible and the Gun"- the relationship between the administrators, soldiers, and miners -Mission schools: benefits--children have freedoms and opportunities their parents didn't; losses--distortion of culture -Livingstone thought black people could be made equal with white people through: 1. Christianity 2. Commerce -South African town of Kimberley contains rich deposits of diamonds -Cecil Rhodes- power-hungry for this diamond industry; chose resting place at World's View in the center of Africa; lies in the heart of the country he conquered; robber and pirate -Metabele ruled until maxim gun took over

World-System Theory

-tried to explain the failure of many countries to develop -scholars: Gunder Frank, Wallerstein -claim: underdeveloped/peripheral countries are not just like Europe, but at an earlier stage of development---they have a very different history: colonization AND they must compete with highly developed countries; Europe was undeveloped and became developed---other countries were undeveloped and now trapped in a state of "underdevelopment" -Argument: Europe was able to prosper by exploiting resources from other places 1. Europe became wealthy by maintaining economic and military dominance over nations 2. exploited nations will never "modernize" as long as they are oppressed by Western nations -Latin America traded a lot with Europe and remained underdeveloped -Japan avoided contact with Europe and did better -We need to study the entire global economy as a world system -Countries are poor because of their position relative to others in the global capitalist system Key concepts: 1. Core: the rich, developed countries; also: west, metropolitan countries, developed world 2. Periphery: poor, dependent nations; also: underdeveloped, satellites, dependencies 3. Semi-periphery: semi-industrialized countries 4. Dependency: the vulnerable state of being exploited by core countries; they depend on the core for trade, investment, loans, technology, etc. -Classical economic theory (Ricardo) predicts that specialization and trade is beneficial for all -countries that can produce high-tech goods most efficiently should concentrate on that -specialization leads to a "win/win" situation...everyone is more efficient; countries become more wealthy -World-system theorists CRITICIZE this view: 1. specialization in low-tech production may produce profits in the short term but there is a cost: countries fail to develop industry and sophisticated technology that could lead to greater profits in the future **argue: in the long run, countries would be better off developing high-tech industry, rather than just producing coffee 2. trade is asymmetrical: rich countries don't need coffee/bananas badly and they can buy them from many sources but poor countries critically depend on trade to get technology/machinery to develop their economies -Thus: poor countries are dependent on rich countries---they need manufactured goods and are forced to pay high prices and they must sell their raw materials and agricultural products very cheaply -Economists argue that foreign investment is good for peripheral countries...world system theorists criticize this, too: 1. "Core capitalist countries tend to extract profits from the periphery...this outweighs benefits of foreign investment 2. Foreign investment doesn't really help a society industrialize...foreigners build plantations and mines to extract resources and they build roads and ports to extract; not to benefit the country -In sum: they don't build useful industrial infrastructure -trade concentration: when a peripheral country trades with just a few core countries (or only one) -investment concentration- when investment comes from just a few core countries (or one) -high concentration may make peripheral countries vulnerable--if the core country decides to halt trade or investment, economic disaster would follow; peripheral countries must please core trading partners; they lose political autonomy to do what is best for its people -scholars such as A.G. Frank found evidence in studies of Latin America -Key observation: Latin American economies and trade was unusual: 1. They mainly produced "cash crops" and raw materials 2. Trade was almost entirely with the US--high "trade concentration" 3. Foreign investment resulted in foreign-owned plantations, not expanded industry and "development" -Interpretation of Latin American situation: -Global capitalism forced countries into a state of under-development: 1. They can't compete with industries from high-tech economies--they do not produce high-profit industries: cars, etc. 2. Instead, they trade commodities (coffee)---they must compete with other poor countries for sales so they don't make much profit and remain underdevelopment -Honduras and Chile with the US -Research literature examines: Do countries with more trade, investment, and concentration fare worse in terms of: 1. economic growth 2. poverty 3. health and environmental well being 4. democracy -Results: mixed...more on this later -Issue: Why don't all peripheral countries band together and overthrow the core? -In the 1970s, oil-producing countries created "OPEC," and restricted the flow of oil to the core -Result: high gas prices; OPEC countries got rich---though eventually the West made friends with Saudi Arabia and others...who lowered prices -Wallerstein's explanation for stability of the world system: 1. military dominance of the West--US overthrew any Latin American governments that tried to oppose the US 2. ideological commitment to the system--people believe capitalism is "fair," similar to Marx: false consciousness 3. the existence of the semi-periphery--most important/prevents everyone from ganging up on the core -How does WST differ from other analysis of economic globalization? -both agree that economics=important but economists often view the world economy positively or neutrally -Ricardo thought trade was overall beneficial -Many economists think globalization reduces poverty compared to a world without trade -WST argues that globalization perpetuates inequality -economic power of core countries and MNCs is so great that the periphery will always be exploited -the idea that governments and international institutions can make the system "fair" is an illusion -governments and international institutions like the WTO will always reflect interests of capitalists---therefore, WST scholars are pessimistic about the role of global governance in solving social problems -According to WST scholars, what should peripheral nations do? 1. peripheral countries must avoid exploitative 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 core for high-tech, try to develop advanced industries locally, concept: "import substitution"- developing local industries to avoid importing products 3. Band together with other poor nations to fight against the power of the core--trade with each other/create cartels to bargain with the core/start a global anti-capitalist revolution -How does WST view international organizations? -Answer: they do not affect the fundamental economic positions of the core and periphery -Claim: most IGOs and INGOs are created by core countries and will never fundamentally undermine the dominance of the core -The only thing that could help would be organizations representing the peripheral countries against the core -Is world-system theory "right?" 1. analysis of Latin America is generally thought to be compelling 2. rapid industrialization of South Korea, Taiwan, etc=major exceptions to WST 3. evidence on foreign/trade investments=mixed, but often contradict WST (some studies find effects consistent with WST, but many do not -Criticisms of WST: 1. research findings are mixed at best--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 2. WST doesn't make clear predictions--after the fact, almost any action can be interpreted as "serving the interests of global capitalists" -Ex: the Montreal Protocol on CFC emissions 1. the core didn't sign it..WST said: "see, the core is using its power to avoid the treaty!" 2. Later, when the core signed it, WST said: "see, the core has ensnared the peripheral countries in a treaty that will keep them in povery" 3. Reverse causality -WST argues: countries that are dependent on the core of the world capitalist system will be trapped into a state of underdevelopment 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; but this doesn't necessarily mean that trading bananas made those countries poorer or "trapped" them into poverty -WST is a useful theory that has some predictive power but don't become a conspiracy theorist -don't assume that the entire global economy is conspiring to "keep the little guy down" -the real answer, as always, is that the world is complex...some aspects of the global economy have been beneficial, others not; don't judge without evidence

Three common themes of social theory

1. What is the nature of the individual? 2. What is the basis for social order? 3. What are the circumstances or conditions under which societies change?

Chirico's World Systems, Global Systems, World Society

WORLD SYSTEMS: -individual countries develop as part of a global system -the economies of societies are shaped more by the relations among societies than by internal dynamics -Wallerstein and Gunder Frank ***main ideas: -adhere to Karl Marx's view that economic relations determine others- cultural, political, social -conflict among stronger and weaker societies drives the world system -the world system is the basic unit of analysis -hegemony-- dominance is unstable -Wallerstein sees 2 threats to the current world economy: 1. a transition in hegemonic stability 2. a challenge within capitalism itself -thinks capitalism will reach its limit by 2050 -state-centrist GLOBAL SYSTEMS: -World systems and global systems both stress that conflict and capitalism shape the global order -non-statist -transnational capitalist class (TCC) is the dominant force in the global system, rather than states ***main ideas: -three spheres of transnational practices--cultural, economic, and political--span state borders yet do not originate in states -the three spheres are interdependent but distinct processes that develop at different rates -globalization is a new transnational phenomenon (since the 1960s) -Two trends gave rise to the global economy: 1. the division of labor and financial investment disperse around the world, releasing production from the constraints of any one country 2. mass media and transnational corporations spread consumerist culture across the globe, developing the global market -TCC are: 1. those who own and control the TNCs (corporate fraction) 2. globalizing bureaucrats and politicians (state fraction) 3. globalizing professionals (technical fraction) 4. merchants and media (consumerist fraction) -believe socialist global economy will emerge because of 1. the polarization of classes 2. environmental sustainability WORLD SOCIETY THEORY: -stresses culture over economics -countries, despite their differences, have very similar state and institutional structures -non-statist theory: individuals and the associations they form are the central actors--presented with a moral dilemma: world society gains responsibility for them and they gain responsibility as well -states, educational systems, businesses, economies, families, and religions follow world culture models -"worldwide waves of copying"

Late nineteenth and early twentieth centuries

a period of enormous change with 4 key transitions: 1. economy changed from agricultural to industrial 2. movement of people from rural areas to cities 3. predominant form of government changed from monarchies to democracies 4. role of religion declined in public life as nonreligious ideas became important

modernization theory

an evolutionary theory about how societies develop; all societies naturally pass through certain stages of development -traditional to industrial revolution to modern high-tech societies -Rostow's 5 stages -modernization involved multiple shifts: 1. economy: greater levels of industrialization 2. people: emergence of "modern" persons---shift away from "traditional values": belief in traditional religion, local culture and shift toward: belief in rationality/science, focus on achievement/competition 3. institutions: greater complexity---rise of modern government, legal systems, education systems -scholars believed that the process of modernization could be accelerated 1. economy: transfer of new technology and economic aid to poor countries 2. people: efforts to make people "modern"---foreign aid to expand education; inculcate "modern" values, instead of local culture 3. institutions: efforts to encourage poor countries to establish "modern government institutions---foreign aid to expand legal system or education -modernization theory believes global inequality will ultimately decline; predict all countries will become more similar, economically -based on study of European societies; it was assumed that non-European societies would have the same experience or modernize faster with aid and technology from the West -problem: non-western countries weren't modernizing as predicted 1. Argentina was as rich as many European countries in 1890 but hardly improved by 1960 2. Many former colonies in Africa were stagnant or becoming more impoverished over time -Criticisms: 1. modernization theory ignores globalization: focuses on individual countries and assumes that success/failure is due to internal factors; overlooks competition and conflict between countries 2. very "Eurocentric"/Western-centric: assumes that the West represents the ideal or "peak" of an evolutionary process; devalues other societies, cultural traditions 3. can't easily explain the persistent poverty found in many developing countries

social theory

systematic ideas about the relationship between individuals and societies or simply the general imageries about how the world works