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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
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?
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
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
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
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?
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
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)
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
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
Federal incentives…(cont.) • 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
Federal incentives…(cont.) • 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
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
Results of Manaus’ development • 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
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
Smith’s analysis…(cont.) • 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
Smith’s analysis…(cont.) • 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
Smith’s analysis…(cont.) • 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
Smith’s analysis…(cont.) • 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