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Acronyms: EOP: The End of Poverty?... NIS: Nectar in a Sieve WST: World System Theory ODL/NDL: Old and New Division of - PowerPoint PPT Presentation

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Acronyms: EOP: The End of Poverty?... NIS: Nectar in a Sieve WST: World System Theory ODL/NDL: Old and New Division of Labour WMB: White Man’s Burden TWCs: Third World Countries SV: Structural Violence SAP: Structural Adjustment Programme WC: Washington Consensus

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EOP: The End of Poverty?...

NIS: Nectar in a Sieve

WST: World System Theory

ODL/NDL: Old and New Division of Labour

WMB: White Man’s Burden

TWCs: Third World Countries

SV: Structural Violence

SAP: Structural Adjustment Programme

WC: Washington Consensus

MNC: Multinational Corporation

Essay topic: Applying the World Systems Theory, compare the causes of Rukmani’s poverty in Nectar in a Sieve with the causes of poverty of those in the Third World countries as presented in the DVD: The End of Poverty?Think Again.

Build a comparative framework using all of the following themes and concepts. Illustrate each concept with examples from the book and the DVD:

Power: Colonialism vs. Neoliberalism

Technology of Control: Factory vs. Structural Violence

Labour & Unequal exchange: Subsistence vs. Export production

‘White Man’s Burden’ (WMB) & religion: Missionary vs. the Bible/ Church

  • Integration into the world system: Power; Technology; Labour: (cont’d):

  • Power: (two periods: colonial, neoliberal)

    • Colonial: Core’s imperialism (total political control)

    • Neoliberal: Core’s market control of capital

  • Technology of Control: Factory vs. WC & SV

  • Colonial extraction for mother countries’ industrialization

  • Corporate global oligopoly for capital accumulation/investment

  • Labour: ODL (colonial) and NDL (neoliberal)

    • A single division of labor within one world market: Core controls capital and Peripheries supply cheap labour and raw materials

  • North-South global Integration Labour: (cont’d): into the world system as Core-periphery: Power; Technology; Labour; WMB.

  • Core countries:

    • P: Hegemony by military power

    • T: Industrial mass production

    • U: Appropriate much of the surplus of the whole

      • world-economy

    • DL: Concentrate on higher-skill, capital-intensive

    • production

  • Peripheral countries:

    • P: powerless & poor economies

    • U: market-imposed low trading value & cheap labour

    • DL: focus on low-skill, labor-intensive production

      • and extraction of raw materials

  • Thesis: (1 Labour: (cont’d): st example)

  • WST explains that from colonial times, Core’s imperialism and neoliberalism have globally integrated their colonies as peripheries.

  • The Core did this through the world market strategies of ODL/NDL, superior technologies and unequal exchange. In this context, Core’s missionary and the church attribute TWC’s lack of development to their attitudes that reject capitalist self-interest.

  • This view reinforces the Core’s cultural domination through the ideology of ‘the White Man’s Burden’ (WMB).

  • (WST: PUT-NDL)

  • 8.5 min WST explained (see it later)

  • Thesis Labour: (cont’d): : (2nd example)

  • WST argues that colonialism and neoliberalism intrude into the economies of the TWCs, maintain the core countries’ power over the peripheries.

  • The core countries integrate the TWCs into the world-system through their control over the world market using DL, unequal exchange and superior technology.

  • The core countries justify this process espousing the ideologies of WMB.

  • 2.3 min EOP trailer and WST explanation of poverty

  • 36 sec have we made it? EOP

  • NIS: Colonial Labour: (cont’d): power imposes capitalism on a subsistence economy. 6.5min capitalism –Brendan Mcoony

  • Intrusion of a factory commodifies the land and turns unemployed tenant farmers as cheap labour. The factory is imposed on Rukmani’svillage as a superior technology symbolizing the superiority of the Western values.

  • EOP: Neoliberalist policies of WB & IMF: SAP & WC, advance the Cores’ political and corporate interests. These policies advance core’s control of TWCs’ resources for export production. They ensure their profit accumulation by resorting to strategies of structural violence and religious manipulation to control the poor from rising against economic and social inequities in the post-colonial era.

  • Hypothesis 1: Labour: (cont’d): Power: Impact of the Core’s world market hegemony on India & TWCs

  • Hypothesis 2: Technology: Cr controls the political and economic power & superior technologies to make decisions on Peri.’s land and resources. In Peri., control of resources shifts from the community to the market.

  • Hypothesis 3: Labour: Through ODL & NDL, Cr’scapital indebts and exploits Peri’s cheap labour to enhance its capital accumulation.

  • Hypothesis 4: The Ideology of the “Whiteman’s Burden” (a blend of colonial/neoliberal power & religious ideology) discredits TWC’s local values as reasons for their poverty.

  • Hypothesis 1: Labour: (cont’d): Power:

  • NIS: Impact of the Core’s world market hegemony on India was under colonialism.

  • EOP: During post-colonial period, Core’s neoliberal policies enforces its market dominance through its monopolistic or oligopolistic corporations.

  • monopoly-overview 8 min

  • (See this yourself)

  • monopoly Flasheconomics 2.33 min

  • oligopoly 2min

  • monopolies: economics video 1.5min

  • 2.3 min

  • Caller: Why Does Thom Think Wal-Mart is a Monopoly?

  • Comparison using the concept of power: Labour: (cont’d):

    • 1. Power: Colonial vs. Neoliberal

    • NIS – colonial power’s total control – capitalist firm- investment in leather –raw material extraction- industrializing a feudal subsistence economy – dismantled the existing land system- tenants who work grow crops lose their land - the poor lose access to village common land and water.

    • EOP: Post-colonial shape of power- Core’s neoliberal policies- Corporate capitalism- MNC’s oligopolistic exploitation of TWC’s resources – unequal trade.

Hypothesis Labour: (cont’d): 1

  • The Core (AICs) dominates the Labour: (cont’d): development and transactions of the world market :

  • World Market transactions:

    • Commodity & financial instruments traded globally

    • International trade based on power bargaining

    • Global financial crisis since 1990s

  • Core’s (AICs’) Labour: (cont’d): power advances from colonial capitalism to corporate capitalism through the development of the world market :

  • 0.47 sec Toussaint on begin.- colonialism

    • 16th –mid 20th C: Colonial capitalism in Nectar in a sieve

    • Mid-20th C on: Corporate capitalism in End of Poverty?... (EOP)

    • 8min hulahoop how monop is created

    • welfare 7 min tax evasion

  • What is Corporate Labour: (cont’d): capital: MNCs

  • Economic power and ownership of capital is concentrated in the hands of a small number of powerful corporations.

  • Concentration of capital into large monopolistic or oligopolistic firms or as investment capital in banks and financial institutions

  • EOP (DVD): Neoliberal policies: SAP & WC facilitate the power of Core countries’ corporate capital/MNCs

  • MNCs are Direct Foreign Investments (DFI)

  • Neoliberal policies: IMF asks the poor to pay for educ, health, common resources, e.g., land, water (54-55)

  • Capital market liberalization & tax evasion (54

  • Two stages of capitalist power of Core countries’ corporate capital/MNCs market integration & control:

  • Colonial: (16th C -20th C): Imperial power of the colonizing states profit from selling colonial countries’ commodities in the world Market, e.g.:

    • Rukmani’s village becomes a target

  • for raw materials for the world market

  • 2. Post-colonial corporate control in EOP: Neoliberal policies: SAP (BLeeDS) & WC (LAPDog),


    • Liberalization

    • Austerity

    • Privatization

    • De-regulation

    • LAPDog

    • How does Structural Adjustment Program (SAP) affect the Developing countries?

    • Impact:

    • Balancing the government budget

    • Weakening the Labour

    • Deregulating the economy

    • Reducing the State

    • BLeeDS

    • NeoLib: An approach to economics and social studies in which control of economic factors is shifted from the public sector to the private sector. Drawing upon principles of neoclassical economics, neoliberalism suggests that governments reduce deficit spending, limit subsidies, reform tax law to broaden the tax base, remove fixed exchange rates, open up markets to trade by limiting protectionism, privatize state-run businesses, allow private property and back deregulation.

    • Power of Colonial capital & power of Core countries’ corporate capital/MNCs beginning of market integration: ( “Nectar …”).

      • Colonial trade & capital (Mercantile)

      • (Merchantile capital)

      • mercantilism 8 min

      • Peri.’sLabour moves to Cr’s capital

      • Atlantic Slave Trade: Crash Course World History #24: 11min

      • 3 - A Historical Class Analysis of Guyanese Society - Dr. Walter Rodney 9.5 min - first 5 min

      • Rise of Industrial capital & factory system

    • Power of the corporate capital & power of Core countries’ corporate capital/MNCs TWC’s (DVD):

      • Cr’sMultinational Corporations (MNCs)

      • Cr’sMNCs’ capital moves to peri.s’ labour 2009 Jobs move to Mexico From a Chrysler Plant in Missouri 4.5 min

      • Rise of Monopoly capital in the Cr – oligopolistic MNCs

    • Monopoly capital: the product of the concentration and centralization of production

    • Illustrations of Impact power of Core countries’ corporate capital/MNCs of the Core’s world market hegemony on colonial India in comparison to TWCs in EOP.

    • India: Colonial control

      • British colonial capital: market (factory: tannery) power intrudes into Rukmani’s village (26)

      • Disintegrates the community (46-47)

      • First stage of integration into the world system.

    • EOP: Colonial control:

      • Colonial land tax, appropriation of common land belonging to the rural poor

      • Resource mining (Bolivia), Dutch in Asia.

    India: colonial core’s power (Britain’s) and accumulation of colonial capital

    1. Colonial trade in raw materials accumulates


    2. Industrialization process

    Mechanical production replaces human energy

    Emergence of the factory system

    • EOP: accumulation of colonial capitalColonial capitalaccumulation& total control over colonies:

      • ) (EOP Toussaint clip on conquest) (36)

    • Land confiscated & appropriated by colonizers – tax imposed on heads and huts – people could not pay , Massai forced out of land- livelihood lost- dislocated & land never returned to them .

    • Brit- people as property- male labor registration at 16- really slaves – in 21 C they are called captives/ retained - debts generational – work for food- 60-80 mil in the world work as slaves

    • Brazil’s gold mines – Bolivian silver mines – Spanish debts to northern Europe did not go to Spain’s coffers. – sugarcane accumulated wealth in UK and the Netherlands

    • Dutch barbaric exploitation of Asia – Amsterdam then London became World’s fin centre

    • Post-colonial accumulation of colonial capitalcorporate capital accumulation & market control (in EOP )

    • The policies of IMF, WB, WTO, etc.,facilitateMNCs oligopolistic or monopolistic corporate capital to acquire TWCs’ resources for Core’s capital accumulation e.g., debt susangeorge 1 min

      • Core transfers surplus from unequal exchange of trade and thus create TWC’s debt; Core supports MNCs monopolistic control over, and extraction of subterranean resources of TWCs

    • EOP: Corporate capital- accumulation of colonial capitalcapitalism operates through the world market:

    • Brazil sugarcane ‘slave’ lab is registered – easier to use this labour by not having to take care of them - prostitution or informal work when not hired.

    • Newer resources demand in AICs & extraction of subterranean resources – Angolan war, Congo, Sudan, (conflicts over power of extraction )

    • TWCs: accumulation of colonial capital Neoliberal policies: SAP & WC:

      • MNC’s corporate capital:

    • Export production, e.g., Bolivia’s drinkable water (Bechtel) (52-53

    • The Cochabamba Water Wars: Marcela Olivera Reflects on the Tenth Anniversary of the Popular Uprising Against Bechtel and the Privatization of the City’s Water Supply 2010 - 46 min- with transcript

      • Kenya's subsistence land & the Yala dam (Dominion) 56-57; Subsistence land lost due to Venezuelan govts’(replace what was grown with imports)43, & Brazilian govts’ (South produces cheaper goods for the North) export policies 43:

      • Trade (subsidy to AIC), debt & MNCs’ monopoly over resources tightens the TWCs’ integration into the global market subsidy and lower income for farmers ( 56)

        • Debt: sheen on debt etc

    Corp.Capital accumulation of colonial capital: MNCs business of infrastructure building, power plants, industrial parks, ports, spiraled the TWCs into huge unplayable debts – debtor syndrome - you owe us - in return unequal power bargaining of oil etc., to benefit their MNCs – (SusGeorge) S is financing the N - $25,000 a minute – $200 bil/yr.-

    Bolivia’s water WB decision and order – rail roads, airlines, Telecoms, … and water – Pablo Fernandez to pay daily $7.50 for water while his pay is $4.50 – (p.56-57)

    Kenya’s farmers’ land – appropriated by Dominion gp of grow vegetables and legumes – river dam – flooding – no crop for farmers

    Yala land grab 2011- PP slides

    Yala& Dominion industries: The End of Poverty? Yala Swamp 3.50min

    Tightening accumulation of colonial capitalintegration into the global market:

    Tr, debt & monop.pow .- bring countries that were once colonies, under control – SAP, WC – Neolib (in LAm- means restructuring of manufacturing - going back to resource export -state assets sold off - this made WB consultants rich while little went to the countries – MNCs bought the privatized companies - Boli. mine

    • H. 2 accumulation of colonial capital:

  • Through its superior Technology,Crcontrols the political and economic power to make decisions on Peri.’s land use; In Peri., control of land shifts from the community to the market.

  • India:

    • Cr’s industrial technology (factory) produces raw materials on village land that becomes a market commodity (47)

    • Rukmani loses her tenancy ( a customary right) to cultivate the land (75-76)

    • law of value: technology 8.5 min socially necessary labour– jobs &wages reduced by technology

    • brendancooney

  • Hypothesis 2 accumulation of colonial capital

    T accumulation of colonial capitalechnology (metaphors): Factory vs. Structural Violence

    NIS: Factory technology- changing economic value of land (p.31;p72)- loss of cultivable land p47- disintegration of the village community pp.75-76

    EOP: MNCs’ expulsion of the poor from the land through forced acquisitions – SV to control TWC’s politics and for the accumulation of capital as MNCs profits

    • NIS: accumulation of colonial capitalIndia:

    • Impact of the technology – the factory - on village land and subsistence farming:

    • India: Village Life in Southern India 14 min The film is from the collection of the West Virginia State Archives. See it yourself – village life as a contrast to NIS village

    • What happened to Rukmani’s land?

    • Colonial factory’s intrusion turns Rukmani’s land into a commodity for sale (p. 10, 13, 47, 48)

    • What happened to local food production?

    • Famine as a result of loss of arable land & common land rights, disintegration of village loyalties and mutual reliance & support (p. 31,72)

    • What happened to community’s survival?

    • Rent exacting middle-man, Loss of village networks & informal supports (p. 73, 75, 76)

    • NIS: New technology of control through taxation- Poverty accumulation of colonial capitalinevitable due to loss of subsistence land to factory

    • 8 min EIC- zamin-peasants plight (show 4 min)

    • 6.5min land rev system-East India Co. (unacademy) upto 2.26min & 4.40 on

    • Colonialismchanged the ownership of all landed property in India to private hands and eliminates the communal land in villages

    • These changes released a mass of landless workers (serfs) for international labour market

    • Throughout the 19th C, the poor lost their subsistence due to loss of land.

    • Millions faced famine every two years.

    • Desperate, starving, land-less Indian peasants - British rule bankrupted the Indian economy.

    • NIS: colonial technology of control: accumulation of colonial capitalRukmani views the factory as power that intrudes:

    • crops-ploughing-well-constructed.-today’s Indian village 7 min 2012 (see it yourself)

      • Overseer ordering villagers (26)

      • Leather worker’s plight (26)

      • Land was lost to the tannery (47)

      • Increasing officials with power (47)

      • New workers brought from outside (47)

      • Trouble: strike for better wages (64)

      • Firing of workers (65)

      • Son killed in factory (88-89)

    • NIS: Colonial period- Owners accumulation of colonial capital’ and investors’ concept of factory production for the market :

      • Land is more valuable as a commodity (31, 72)

      • Moneylender: profit from pawn shop ( 73)

      • Foreigners: invest capital for extracting raw

      • material (26-28)

      • Zamindar: profits from increase in land value

    • EOP: Colonial period: theft of technology and destruction of local industries in TWCs :

    • The colonial Dutch destroyed the Indonesian textile & (Java) ceramics industry to eliminate competition

    • The British destroyed the industry and trading of Indian textiles to build up their own industrialization. Led to famine & death - undermined the weavers social structure as they lost their livelihoods; destruction of craftsmen structures; peasant’s land tenure replaced by the British land tax

    • EOP corporate period: local industries in

    • Technology that controls the politics of TWC and profits of core’s MNCs : SV 1min johnperkins on mncand AIC’s hit men

    • Hitmen

    • Of An Economic Hitman (1 of 3)

    • debt–CIA-john perkins-9.5min

    • In TWCs, importance of SV for the core and their MNCs:

    • Stages of SV:

    • Economic hit-men

    • CIA’s assassination team

    • CIA Jackals’ Direct intervention

    • Military

      • SV protects Cores’ flows of profit & MNCs :e.g., assassination of countries’ Presidents, CIA overthrow of govt in Iran to protect BP; direct intervention to execute of Iraq’s Qasim; assassination of Chile’s Allende for IT&T and copper MNCs; military war against Saddam H

      • MNC makes profit/capital from resource for exports produced on TWCs’ land

    • EOP: local industries in

    • Impact of the SV as technology of control over the poor and those deprived of their land in TWCs:

      • What happened to the land once owned by the natives and the poor?

      • (refer: in the colonial period, 50 hectare of land for 1 head of cattle (Bolivia); land tax forced acquisition (Africa, L.Am, Asia); land for colonial mining)

      • In the corporate period. Agri MNCs ( superior business, tech) appropriate land (with support of Kenya’s govt) in Kenya.

      • What was the corporate interest in TWCs? Unequal trade; monopoly control over resources; profitable exports (water, minerals, agri crops)

      • Why did food producing land become a commodity?

      • Privatization of land, profit motive & export production.

    • EOP: Impact of superior technology(corporate): local industries in

    • Poverty a result of arable land taken over for export

    • producing industries using SV methods to suppress the

    • natives & country’s leaders who are against MNCs’ land

    • appropriation

    • Land ownership: concentrated in the hands of the richer classes & MNCs

    • Corporations resist land distribution as it would reduce their land that is used for export production & cut down their profit

    • United Fruit Co. in Central America & people’s demand for land reform led to overthrow of Guatemala’s govt. (1954), civil war, police repression and 200,000 civilian deaths

    EOP: local industries in

    How do MNCs’ that export products view the needs of the poor in a subsistence economy?

    • EOP: How did technology affect TWCs’ Peasants/small farmers/tribes?

      • MNCs take the best land

      • Deprives the poor of land that produces food for subsistence

      • Land distribution to peasants is thwarted by the eviction of the poor. Tribal Massai were deprived of their traditional rights to the land for grazing livestock. Now, the land belongs to the ‘powerful people’ in the govt.

    • EOP: farmers/tribes?

    • Poor people do not get any help from their governments but find that they:

    • Support & protect MNCs (dictators of Chile, Central America, the Congo, Sudan)

    • Arrests farmers/ peasants for taking their own countries’ land back (Venezuela)

    • H. 3: farmers/tribes? Labour: Through ODL & NDL, Cr’scapital indebts and exploits Peri’s cheap labour to improve its capital accumulation. Unequal exchange between Cr’scapital and Peripheries’ Labour, produces profit for Core’s capital accumulation.

      • (p2) 4 min what is capitalism –labor and uneqexch of value (wages)

    Hypothesis farmers/tribes? 3

    • WST argument on farmers/tribes? Labour:

    • Integrated World Market according to WST:

    • A single division of labor within a single world market

    • Core states - higher-skill, capital-intensive production and appropriate much of the economic surplus of the whole world-economy.

    • Peripheral areas focus on low-skill, labor-intensive production and extraction of raw materials farmers/tribes? HDvnSgJF4SE 9.3 min

    May 2008 capital-value-profit

    • NIS farmers/tribes?

    • India

    • Labour on land to produce food for subsistence could not compete with market demands for land as a commodity.

    • Colonial : India’s colonial labour (wages) is unequal in value to British capital (factory as fixed capital & profit).

    • EOP: farmers/tribes? TWCs:

    • law of value: labour 8 min

  • Cheap, slave or forced labour for mining (colonial La Mita (Bolivia), worker as property (colonial Kenya’s Kipande system and plantations (e.g., today’s Brazil’s sugarcane)- the Core to accumulate corporate capital cane cutters 34 sec

  • 1 min clip on sugar cane labour

  • Corporate (NDL): Poor wages for labour, contribute to greater corporate profits - (unequal exchange bet. cap and lab = profit)

  • L farmers/tribes? abour & Unequal exchange: Subsistence vs. Export production

    NIC: subsistence tenants were expelled - peasants were drawn into factory as wage workers – their labour produces more exchange value than the wages they get – the industry owner’s profit arises from this – India’s unemployed labour shipped as global colonial labour

    • NIC: farmers/tribes?

    • Labour gets poor wages (64)

    • Colonial : India’s colonial ‘captive’ labour (67)

    • Profit from export goes to British factory owners

    • Profit from land goes to the landlord

    • Rukmani’s farmers/tribes? subsistence manual labour is a way of life:

      • Grows pumpkin (10, 13)

      • She predicts market relations (28)

      • Tenancy & land ownership: (31, 132)

      • Seed (75)

      • Drought & water (76)

      • Working the land (48)

      • Labour supply to Ceylon (67)

    • EOP: farmers/tribes?

    • Machines of mass production deskill the workers.

    • Cheap wages for surplus labour

    • Core’s consumers get goods at lower cost. MNCs accumulate corporate profit/capital from cheaper cost of production

    Crises of Capitalism farmers/tribes?

    Prof. David Harvey

    • H. 4: The Ideology of the “Whiteman’s Burden” (a blend of colonial/corporate power & religious ideology) discredits the local values to promote westernization

    • Superiority of the West and disintegration of the community

    • Commodification of peripheral countries’ land and resources lead to poverty & destitution.

    Hypothesis blend of colonial/corporate power & religious ideology) discredits the local values to promote westernization 4

    • Religion conceals the exploitive power of the West’s self interest:

    • Colonial extraction:

    • Market for raw materials (leather)

    • Import of technology (factory)

    • Instant urbanization (town)

    • Impoverishment of rural people

    • Corporate extraction:

    • Monopoly in the world market (e.g., raw materials)

    • Capital investment in poor countries (MNCs)

    • SV operations justified as fight against terrorism or socialism (against leaders who promote country’s economic interests against foreign domination

    • Impoverishment of the poor (peasants & tribes)

    Why do we use an ideological metaphor for understanding world problems?

    White Man’s burden: Eurocentric view of the world and global economy

    Missionary (Nectar …p111)

    The Bible and Church (DVD: Colonization of the mind – the worst of colonial control)

    • What are the solutions? world problems?

    • Reject the historical White Man’s Burden

    • Reject the cultural superiority of the West

    • Acknowledge the uniqueness of each

    • country’s social and political culture

    • Foster a development path suitable to each

    • country (Easterly).

    • Conclusion: world problems?

    • Integration of markets, technology, and labour into the world system through the ideology of the West’s superiority :

      • Core countries: (see, WST: PUT-NDL)

        • P: Militarily strong

        • U: Appropriate much of the surplus of the whole world-economy

        • DL: Concentrate on higher-skill, capital-intensive production

      • Peripheral countries:

        • P: powerlessness & poor economies

        • U: low trading value & cheap labour

        • DL: focus on low-skill, labor-intensive production and extraction of raw materials