Global Development In Colonial Times

1. Global Development In Colonial Times Decolonization and Sustained Inequality Created borders Gave some people power over others and others power over money Renamed everything Forced into Christianity, not allowed to speak own language, re-education of the peoples Assimilation of indigenous; saying this is best way to do it

2. Colonial Ideologies • Civilization (Civilized vs. Uncivilized) • Colonists (civilized) Natives (uncivilized) • Colonists determining who is civilized and who is not • Progress (Modern vs. Primitive) • Place value on how you live • Ex: We have flush toilets you do not • Those Who Set Progress Agenda • Having choice • People who have money (position of privilege) • Bootstrap Mentality – you can do it if you work hard enough

3. Beginnings Within Europe • Military buildup in order to defend colonies • Middle class grew by exploitations of country in their colonies • Peasant revolts • Taxed more heavily • Creation of wage labors; go somewhere else to work get paid by different people • Establishment of United States

4. On to America • Nationalism grew • What you as a nation have as an idea of yourself • Define selves by flag, Thanksgiving, 4th of July • What we stand for • With nationalism, harder to obtain colonies for same reason • Led to World War I • Lost most Latin American colonies • World War II • Lost many more colonies • Post war shifts (beginning in the ‘40s) • Emphasis on nation and states • Were divvied up as colonies but now considered states • Conscious shift to global economy/institutions • World Bank, International Monetary Fund • Trade alliance focus; multilateral

5. Decolonization (1940s – 1970s) • Resistance by the colonies but persistence by the nations controlling them • Emphasis on nation-making by dividing up colonies • Internal/external disagreements • Wars and battles • Mostly throughout Africa • Cold War • The East vs. the West • Second race for Africa; wanted their side • Really just wanted their resources

6. Development Paradigms • Align former colonies with main super powers • Created global economic standards • “aid”; money in the form of loans • Competition for Africa • Dictators, military, export infrastructure • Where the money was actually going • Escalated poverty • Created underdeveloped and developed nations • 85% of “aid” is loans not free money • Going to countries that were made poor by the rich nations who are giving them the “aid” • Very structure of “aid” has created more poverty; supposed to level the playing field

7. Wanted to establish trade alliances • Colonies were not working • Fostered global economy so economic flow would be fair • Had to create “independent” nations of former colonies • Not good because they could not function on their own • Has not really been a government to govern them • Do not have capital; all their resources stripped by former country that colonized them

8. New World Order • Allies go together without colonies • Came up with global institutions • World Bank and International Monetary Fund created 1944 • World Bank = leading institution • Only could lend to war torn countries and/or developing countries • Three goals: reduce poverty, provide long-term economic growth, foster relationships between all • International Monetary Fund = monitor world’s currency • Only supposed to give out short term help when absolutely needed • Insure stability of world economy • Official/Unofficial rules • 184 member countries • Non-elected officials; appointed • If you wanted to make a change you have to have 85% support • U.S. – always put in enough money to gain 15.5-18% to have sway power in votes

9. 1960’s – 1970’s Shift • Getting into height of decolonization efforts • Shifted energies to former colonized nations • 1970’s; rise in oil profits – goes to western banks • Lending increases and large scale projects • No oversight; people not looking in the long-term • No accountability • Money coming in not going to who needs it • Bubble burst • Money going to developing countries goes right back to the banks • Passes over developing countries • Developing countries can’s pay back loans and their exports don’t hold price; actually drops

10. Who is Valued • World Bank gave money to bankrupting private banks instead of developing countries • Threats: • Foreign assets of country refusing to pay its debts would be attacked by creditors throughout the world; its exports seized by creditors at each dock where they landed; its national airlines unable to operate; and its sources of desperately needed capital goods and spare parts virtually eliminated. In many countries even food imports curtailed.

11. Structural Adjustment Programs • Social and economic strings attached • Lended money not just lended money • Privatize – suggested because it works for “us” • Healthcare • Schools • Water • Housing • Electricity • Able to make money off of these • Multinational corporations step in to “help” run privatized businesses • Freeze wages • Export more products • Reduce tariffs, subsidies, protections (liberalize trade) • Mono-industries/crops • Do one thing and do it well • I.e. cash-crops • Effects • Raised poverty, unemployment, malnutrition • Debt not reduced

12. Washington Consensus / Neo liberalism (policy) • Market ideology • Market will always rule; don’t want state intervention • Privatize and deregulate • Unregulated trade will increase wealth for all • Trade liberalization • Remove barriers, therein wealth will trickle down • No social programs; no government control • All big economies used regulations to create what they have today • Didn’t abide by the deregulation; only after they secured their wealth did they • Washington Consensus was put into action through institutions, laws, and policies

13. New Production Model • Industrial work force used immigration labor • Post Fordism • Flexible accumulation and financing • Parts made in different places; not all made in one warehouse • Outsourcing • Shipment to other countries in order to pay less • Maquiladoras • Beginning of outsourcing • Stopped bringing Mexicans to U.S. to work; multinational corporations went to Mexico instead • Subcontracting and homework • General Electric sells off plant to subcontractors to different countries • Done for deniability reasons ; E.x. “didn’t know kids working for $.25” • Finally get to end of subcontracts – homework • Drop off materials to women at home • Women targeted for their perceived docileness • Comes about only because of debt of poor countries

14. Export Processing Zones • Multinational corporations get deals with government “incentives” • No more nation to nation talks • Governments create “zone” without regulations • Environmental regulations down • Low wages • Cordoned off with fences and guards • Feminization of labor • Target young females in poor outside city limit towns • Went after women because of gender association with docileness • Created lower wages and fear • Increased dependency • Trade increased globally

15. World Trade Organization • Established in 1995 • 149 member nations • Mission: “implement and oversee global trade policies” • Non-elected delegates; elected director general • “industry sector advisory committee” and “councils for trade” • Make the policies • Ministerial conference at least every 2 years • No transparency • People don’t know what actually goes on

16. Decision Making In the WTO • One vote per member nation • No votes have ever occurred, ever • done by “consensus”; corporate heads/lawyers of rich countries • No paper trail, no formal votes, so no record of accountability • No one knows how anyone votes • People left out of the loop

17. Trade Provisions By the WTO • Provisions For • Corporate protection • Investors protection • Movement of capital • None for labor • Provisions Against • “barriers” of trade • Tariffs • Have been denied so poor countries cannot make profit • Environmental laws • “production and processing” laws • Child labor laws • patents

18. When “barriers” are found • Rule on disputes • Secretly • No documentation • WTO can trump national law • Former President Clinton did not read WTO provisions thoroughly; screwed up • Money sanctions • Payments by governments to corporations

19. International Labor Organization • Established 191 • 178 member nations • Creates global work standards • Focus on worker’s rights • ILO System • Tripartite system • Government, workers, and employers • Promotes social and moral action • “promote opportunity for women and men to obtain decent and productive work in conditions of freedom, equity, security, and human rights”.

20. ILO Powers • Make labor standards thorough: • Conventions and recommendations • Issue annual reports • Report on abuses • Recent Report: Gender • Feminization of labor • All labor gets devalued • More women in the workplace • Increase in trafficking • Remittances (126 billion) • Send money back home • Recommendations for • Equal pay, protection, childcare

21. Global Trade Players • Global rule makers • International institutions • WTO, IMF, WB • Who decided this? • The institutions themselves • Developed nation’s government • How do they control rule makers • Buy votes for WB and IMF • WTO trumps national laws • Multinational Corporations • Define field of goods how? • Control supply and demand • Local producers • Can use regional organizations • Try to make change

22. Visibility and Invisibility in Global Systems • Visibility = Voice = Power • Gained through money (not natural) • Invisibility = Muffled voice = Lack of power • Gained by multi-corps denying countries • How are people made invisible/silent? • Legal status • Visas • Citizenship status • Governmental regulations • CAFTA gave everyone same status • Did away with social services • Institutional structures • WTO, IMF, WB

23. Fear • Afraid they cant speak up out of fear from being fired or multi-corps leaving • Health problems • WTO can sue nations because of trade “barriers” • Being dependent on medicines controlled by upper powers • Poverty • Working to survive; cant revolt because no time/option unless you want to die

24. Agency: How to Get it • Ability to act WITHIN and AGAINST systems of power to produce CHANGE • “globalization from below” (grassroots structure) • Means focus on human rights; local communities coming together for change • Can use strikes and protests • Regional tribunals/ legal battles (hard because no trnsparency with multi-corps) • Consumer action • Making choice on what to buy • Make production visible

25. Challenging Structural Roots of Trade System • WTO • People who form policies for investors; multi-corps • None for labor • Trying to make invisible production • Refuse to engage with rule makers • Poor nations banded together (22 nations) • Biggest points of contest are subsidies • $350 billion in subsidies; $50 million in Aid • Changing the system • Fair trade • We want new mode of production • New supply chain • Take out most of middle men • More accountability

26. Fair Trade Benchmarks • Long term relationships between producers and buyers • Set stable base-price • Doesn’t keep rising and falling • Eliminate intermediaries • Middlemen out • Subcontractors • Access to credit and infrastructure • Farmers can produce more and actually compete • Democratic producer co-ops • Little businesses get to make decisions together • Environmentally and labor safe laws • Public accountability and transparency

27. Challenges Core Values of “Free Trade” • Myths • Market acts alone • Privatization eventually leads to trickledown wealth • Trade provides “level playing field” • Fair Trade • Ability to sell own product • Equal pay • Cooperative structure • Community building • Human capital; opportunities greater • Direct transfer of profits; no middlemen • Gender equality • Transparency: total transparency