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Geography 352 Urbanization in the Global South Jim Glassman Lecture #14, February 26 Questions about labor and welfare implications Might clustering—as opposed to decentralization—facilitate labor organization?

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Geography 352 Urbanization in the Global South Jim Glassman Lecture #14, February 26

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Geography 352

Urbanization in the Global South

Jim Glassman

Lecture #14, February 26


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Questions about labor and welfare implications

  • Might clustering—as opposed to decentralization—facilitate labor organization?

  • Is the context of industrialization in the Global South inimical to either Fordist labor politics or flexible specialization?


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Clustering vs. decentralization

  • Brazil: successful labor organizing

  • Mexico: greater success in labor organizing near Mexico City (in Fordist era)

  • South Korea: successful labor organizing

  • Thailand: greater success in labor organizing near Bangkok


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Industrialization in the Global South and labor politics

  • Brazil: Fordist industries basis for labor organizations

  • Mexico: Fordist industries basis for labor organizations in past

  • South Korea: Fordist industries basis for labor organizations

  • Thailand: Fordist industries basis for labor organizations, but these are weak


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Summary of complexities of issues surrounding egalitarianism

  • Hub-and-spoke districts may not always yield egalitarian growth

  • Marshallian districts may not be egalitarian

  • Satellite platforms are not egalitarian but may lead to regional growth

  • State-anchored districts can be egalitarian or inegalitarian


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Summary…(cont.)

  • Decentralized growth may not be egalitarian: South Korea vs. Mexico

  • Centralized growth inegalitarian in short-term, but conducive to new opportunities (e.g., labor organizing)?

  • Both ISI and EOI can lead to concentration: Brazil and Thailand

  • Geographical-historical conditions most important to pattern?


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Summary…(cont.)

  • Women favored most by ISI or EOI?

    • ISI: domestic patriarchy and domestic security?

    • EOI: public patriarchy and opportunities to break down domestic patriarchy?

  • Women favored most by centralization or decentralization?

    • Decentralization: opportunities to work closer to home

    • Centralization: opportunities to develop new collective identities


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  • Susanna Hecht and Alexander Cockburn, The Fate of the Forest: Developers, Destroyers and Defenders of the Amazon (New York: HarperCollins, 1990)

  • Bertha K. Becker and Claudio A. G. Egler, Brazil: a new regional power in the world-economy (Cambridge: Cambridge University Press, 1992)


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Geopolitics and Manaus’ growth

  • Pre-World War II Amazonian development

  • The “quadruple alliance”

  • The Brazilian military coup of 1964

  • General Golbery do Couto e Silva and the ‘grand strategy’ for the Amazon

  • General Castello Branco and Operation Amazonia


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Federal incentives for investing in Manaus Free Trade Zone (MFTZ)

  • Total exemption of excise tax on industrial products (IPI)

  • Total exemption of IPI on import of foreign products into the MFTZ

  • Total exemption of IPI on products exported from abroad or the remainder of the country into MFTZ

  • Credit of IPI levied on inputs and equipment purchased for use in the industrialization of products to be shipped to the MFTZ


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Federal incentives…(cont.) (MFTZ)

  • Total exemption of tax on import on foreign goods destined to internal consumption, production in general, and reexport

  • Deduction of tax on import on the entry of inputs used in products industrialized at the MFTZ when they leave for other parts of the country

  • Total exemption of tax on import of intermediary products

  • Exemption of export duties on MFTZ exports


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Federal incentives…(cont.) (MFTZ)

  • Deduction of income taxes for companies for investment into priority areas

  • Deduction of income taxes for companies for reinvestment into priority projects with counterpart monies from the person’s own resources

  • Partial or full exemption of income taxes for companies for priority projects

  • Financing to production sectors


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State and municipal incentives for investing in Manaus Free Trade Zone (MFTZ)

  • Refund of tax on circulation of goods and services for industrial companies who manufacture priority products

  • Total exemption of tax on circulation of goods and services on the export of products into the MFTZ

  • Credit of tax on circulation of goods and services for products from other states

  • Exemption or reduction of services-rendered tax for services-rendering companies


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Results of Manaus’ development Trade Zone (MFTZ)

  • Majority (60%) of invested capital comes from Brazil (from large cities)

  • MFTZ becomes import zone sending goods elsewhere in Brazil rather than export zone

  • Industrial structure remains that of satellite platform

  • 1990s liberalization raises questions about Manaus’ future


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Smith’s world systems analysis of South Korean decentralization

  • Long-term historical legacies

    • Relatively balanced urban hierarchy in 1920

    • Agrarian social structure and ‘internal’ orientation limited growth of port cities


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Smith’s analysis…(cont.) decentralization

  • Japanese colonialism

    • 1910-1930: Japan builds railroads and connects inland cities to ports to facilitate export of agricultural products

    • Seoul lacked adequate port, became dependent on goods shipped from intermediate cities

    • 1930-1937: Japan begins locating heavy industries in Korea as part of its industrialization and regionalization drive

    • Korea thus developed more broad-based industrial experience than other East Asian nations outside Japan


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Smith’s analysis…(cont.) decentralization

  • Immediate post-World War II period

    • End of war brings many Koreans back from Japan to southeast region of Korea (from which many had originally emigrated)

    • End of war removes Japanese domination, but Japanese rule eliminated landlord class in Korea and created more egalitarian social base upon Japanese departure


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Smith’s analysis…(cont.) decentralization

  • Cold War period

    • US more interested in Korea for geo-political than economic reasons, thus allowed economic policies (national protection) and encouraged reforms (land reforms) that it might not have otherwise

    • US aid buttressed South Korean industry

    • Division of country, war with North led to concentration of some activities in the southeast of South Korea for strategic reasons

    • Easy access to US markets allowed growth of exports under EOI, encouraging some decentralization to secondary cities and raw materials sites

    • Authoritarian Cold War state was able to discipline labor to effectively keep wages low and allow EOI strategy to work

    • Disciplining labor may also have prevented the growth of the informal sector by allowing firms to profit adequately from exploitation of (weak) formal sector workforce


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Smith’s analysis…(cont.) decentralization

  • Post Cold War South Korea

    • Increased labor militance and democratization since 1987

    • Economic crisis and IMF structural adjustment program in 1998, leading to attempts by US Treasury Department to open up Korean economy to US investors

    • Uncertain longer-term impacts on urbanization patterns, but no large changes so far


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