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The World-System. An interdependent system of countries linked by economic and political competition The World-System Telecommunications: Billions of.

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Presentation on theme: "The World-System. An interdependent system of countries linked by economic and political competition The World-System Telecommunications: Billions of."— Presentation transcript:

1 The World-System

2 An interdependent system of countries linked by economic and political competition The World-System Telecommunications: Billions of Minutes Globalization

3 But what is Globalization? But what is Globalization? increasing The increasing interdependence and interconnectedness of places globally.

4 Elements of Globalization The continual expansion of global connections, relations and networks:The continual expansion of global connections, relations and networks: Faster and more intenseFaster and more intense Increasing awareness about the worldIncreasing awareness about the world Driven by advancing technologiesDriven by advancing technologies

5

6 Nike: An American Company Nike HQ: Beaverton, OR ~5,000 workers

7 But where are Nikes actually made?

8 25,000 workers.25,000 workers. For 30 cents an hour.For 30 cents an hour. Is that good or bad?Is that good or bad? By hand.By hand.

9 Then to the port town of Shenzhen to be exported

10 Shenzhen, China

11 …to Long Beach, California.

12 …with Oil from the Middle East.

13 …to your local shoe outlet.

14 Interconnected. Interdependent. Shoes are produced mostly by women in China (and many other countries: 1/3 of all Nikes are made in China) for ~30 cents an hour.Shoes are produced mostly by women in China (and many other countries: 1/3 of all Nikes are made in China) for ~30 cents an hour. Materials (mostly from oil) cost about $2 per pair of shoes.Materials (mostly from oil) cost about $2 per pair of shoes. Shoes are shipped out of China (using oil from elsewhere) mostly to the USA and Europe.Shoes are shipped out of China (using oil from elsewhere) mostly to the USA and Europe. Shoes are delivered to a store near you and sold to you for $75…or more!Shoes are delivered to a store near you and sold to you for $75…or more! Without you: They wont make shoes.Without you: They wont make shoes. Without them: There are no shoes to buy.Without them: There are no shoes to buy.

15 THE BIG QUESTION: Is Globalization: A. Good? B. Bad? C. All of the above? D. None of the above? Stay Tuned…

16 Current World Divisions

17 …for example, by economics. CORECORE PERIPHERYPERIPHERY SEMI-PERIPHERYSEMI-PERIPHERY

18 COUNTRYGDPGDP pc USA$14,660,000,000,000$47,200 China$10,090,000,000,000$ 7,600 India$ 4,060,000,000,000$ 3,500 Germany$ 2,940,000,000,000$35,700 Russia$ 2,223,000,000,000$15,900 Brazil$ 2,172,000,000,000$10,800 South Korea$ 1,459,000,000,000$30,000 Nigeria$ 377,900,000,000$ 2,500 Singapore$ 291,900,000,000$62,100 Cameroon$44,330,000,000$ 2,300 Luxemburg$ 41,090,000,000$82,600 Haiti$ 11,480,000,000$ 1,200 According to the CIA Factbook USA$14,660,000,000,000$47,200 India$ 4,060,000,000,000$ 3,500 Germany$ 2,940,000,000,000$35,700 Russia$ 2,223,000,000,000$15,900 Brazil$ 2,172,000,000,000$10,800 South Korea$ 1,459,000,000,000$30,000 Nigeria$ 377,900,000,000$ 2,500 Singapore$ 291,900,000,000$62,100 Cameroon$44,330,000,000$ 2,300 Luxemburg$ 41,090,000,000$82,600 Haiti$ 11,480,000,000$ 1,200

19 Measuring Income Gross Domestic Product (GDP)Gross Domestic Product (GDP) o Total value of all materials, goods, and services produced in one year o Does not include in/outflows of money: remittances o Impacted by: relative buying power: PPP-Purchasing Power Parity relative buying power: PPP-Purchasing Power Parity -Based on hours of labor required to purchase a good Exchange Rate vs. Buying Power Exchange Rate vs. Buying Power -Euro vs. dollar vs. baht Per capitaPer capita –Used for equalizing comparisons between dissimilar populations (divide GDP by population) –GDP per capita vs. GDP

20 Big Mac Index Four most expensive Iceland - USD 7.45 Norway - USD 6.63 Finland - USD 6.11 Sweden - USD 5.33 Four most affordable India - USD 1.40 China - USD 1.41 Hong Kong - USD 1.54 Malaysia - USD 1.57 Ten fastest earned Tokyo - 10 minutes Los Angeles - 11 min Chicago - 12 min Miami - 12 min New York City - 13 min Auckland, NZ- 14 min Sydney, OZ - 14 min Toronto - 14 min Zürich, Switz - 15 min Dublin, Ireland - 15 min Ten slowest earned Bogotá, Col minutes Nairobi, Kenya - 91 min Jakarta, Indo min Lima, Peru - 86 min Caracas, Ven.- 85 min Mexico City - 82 min Manila, Phil - 81 min Mumbai, India - 70 min Sofia, Bulgaria - 69 min Bucharest, Rom min PPP

21 The Core Industrialized capitalist countries, led by former colonial powers (MDCs) So-called 1 st World or Developed World Centers of trade, technology, productivity, $$$, high GDP pc Exploit the Periphery and Semi- periphery Examples: Western Europe, North America, Japan, Australia

22 The Periphery The Periphery Poor, ex-colonial nationsPoor, ex-colonial nations So-called Third World or Developing Countries (LDCs)So-called Third World or Developing Countries (LDCs) Exploited countries and regionsExploited countries and regions –ex·ploi·ta·tion (ek sploi-tay shun): The act of employing to the greatest possible advantage:The act of employing to the greatest possible advantage: exploitation of copper deposits. Utilization of another person or group for selfish purposes:Utilization of another person or group for selfish purposes: exploitation of unwary consumers. Exploited by Core and Semi- PeripheryExploited by Core and Semi- Periphery Tend to export resources and provide labor; low GDP pcTend to export resources and provide labor; low GDP pc Examples: Kenya, Bolivia, Pakistan, etc.Examples: Kenya, Bolivia, Pakistan, etc.

23 The Semi-Periphery The Semi-Periphery Somewhere in-between core and periphery ingIndustrializing ex-colonial countries (NICs) Countries or regions with mixed processes: –Both exploited and exploiters. –Both exporters and importers of goods. South Africa, Brazil, Mexico, Taiwan, South Korea.Examples: South Africa, Brazil, Mexico, Taiwan, South Korea. What about…?

24 …CHINA?

25 CHINA Historically considered as peripheryHistorically considered as periphery But never colonizedBut never colonized With trade opening up to China over past 20 years, China has emerged into the Semi-PeripheryWith trade opening up to China over past 20 years, China has emerged into the Semi-Periphery Recent impact on international markets and HUGE demand (i.e. oil, metals, etc.)Recent impact on international markets and HUGE demand (i.e. oil, metals, etc.) Huge population will affect globalizationHuge population will affect globalization Q: Will China be considered a Core player in the not-too-distant future?

26 Gross Domestic Product (GDP) 2010, 1995 Gross Domestic Product (GDP) (2010, 1995 estimates) 2010 % RankCountryGDP Growth -4.0% 1E.U. $14,520,000,000, % $ 9,829, , % 2U.S.$14,250,000,000, % $ 7,338,400,000, % 3China $ 8,767,000,000, % $ 700,277,800, % 4Japan $ 4,141,000,000, % 6.1% 5India $ 3,548,000,000, %

27 Which of these statements do you think is true? Because of globalization, the rich have become richer, yet the poor have also become richer.Because of globalization, the rich have become richer, yet the poor have also become richer. Because of globalization the gap between rich and poor has widened.Because of globalization the gap between rich and poor has widened.

28 Gap between Rich and Poor

29 Brief History of Globalization

30 In my 1995 Human Geography textbook, the word globalization was not in the glossary, index, or text.

31 The Silk Road (evidence dates back to 1600 BC, lasted through Mongol Empire ~1400) The Early Days of Globalization

32 Western World-System (Globalization) History Nile Valley, Mesopotamia Greeks, Romans European Colonialism / Slave Trade: 1400s-1800s Industrial Revolution: Wage Labor 1800s/ early 1900s World War II / Cold War / Decolonization: mid-1900s Neocolonialism / Multinational Corporations: Late 1900s

33 However! Keep in mind… China Native civilizations: Inca, Maya, Aztecs India Assyrians Persians Mongols Ottomans And others! All engaged in some form of globalization (a.k.a. trade)

34 1400s: European Colonialism Where was he going? Why?Christopher Columbus: Where was he going? Why? $$$$$$ ChurchChurch Food and Labor =Food and Labor = Spices and Slavery

35 Hegemony Domination over a region or the worldDomination over a region or the world ColonialismColonialism Not just political or military controlNot just political or military control Most pervasive is economic and cultural controlMost pervasive is economic and cultural control The Golden RuleThe Golden Rule

36 Colonialism

37 Geographic Implications Imperialism and ColonialismImperialism and Colonialism Ethnocentrism and RacismEthnocentrism and Racism Environmental DeterminismEnvironmental Determinism

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39 Imperialism: Formal Imperialism: Formal Colonialism Colonies under direct governance and control Core controls labor, resources, land Often indirect political rule through local leaders

40 Industrial Revolution Early-1800sEarly-1800s (Hearth): –Britain (Hearth): from slave cotton –Textiles, steam power, iron, canals Mid-1800sMid-1800s –Diffusion to Germany, France, Belgium, Netherlands –Steel used for railroads, steamships, telegraph (means of globalization) Late-1800s/ early-1900sLate-1800s/ early-1900s –Spread to Europe, US, Japan –Electricity, oil, engines, roads, radio

41 Ethnocentrism and Racism Our way is best Civilizing –Natives –Non-whites

42 Environmental Determinism The belief that certain physical environments (climates) are more inclined to produce advanced civilizations than others –Torrid (tropics) –Temperate (mid-latitudes)* Mediterranean=Middle of the EarthMediterranean=Middle of the Earth –Frigid (polar regions) * Theorized that this region was most likely to produce advanced civilization

43 Environmental Determinism: Example Q: Is it true that tropical climates cause laziness and promiscuity?

44 Birth Rate Income PC Birth Rate Income PCTropics Liberia42.25$ 500 Afghanistan38.37$ 800 Haiti29.10$ 1,300 Burundi41.76$ 300 Mid-Latitudes Belgium10.15$36,600 Japan 7.64$32,600 Australia12.47$38,500 United States13.83$46,400 CIA World Factbook: Estimates for 2009

45 Is it true? The stats are accurate. Must be true then? (colonize)If so, then do we, based on the statistics, have a right to conquer (colonize) these lazy, promiscuous people to show them how to live more civilized? Lets ask the Nazis, the Spanish, the English. Maybe there are some other factors that help explain the statistics… Or the Yanks?

46

47

48 1900: Rise of Multinational Corporations (MNCs) (Transnational-TNCs) Investments, activities transcend borders Cheap labor / resources in Periphery / S-P countries supply core Intl business and government become increasingly linked Cartoon on Standard Oil, 1904

49 Industrial revolution helped create the rise of MNCs Golden Rule in full effect Rules made by core in interest of business

50 Examples of MNCs Standard OilStandard Oil NokiaNokia StarbucksStarbucks Coca-ColaCoca-Cola Ford Motor CompanyFord Motor Company McDonaldsMcDonalds MicrosoftMicrosoft ChiquitaChiquita

51 Oldest MNC: Dutch East India Trading Co.: Indonesia, SE AsiaIndonesia, SE Asia Later began the Dutch West India Company:Later began the Dutch West India Company: Traded in Caribbean, AmericasTraded in Caribbean, Americas (1621) (1602)

52 Modern Imperialism (Frequently viewed as Post-WWII)

53 1945: World War II contemporary 1945: World War II Begins contemporary globalization Sudden shifts in economic hegemony, political power Sudden technological innovations Sudden growth of transportation, communications networks

54 Late 1940s: U.S. dominant Sole possession of atomic bomb to 1949 War destroyed industries of Europe, Russia and Japan U.S. finances reconstruction Nagasaki Frankfurt

55 Neo-Imperialism (Informal Colonialism): Spheres of Influence Post-WWII (today!)Post-WWII (today!) Core-dominatedCore-dominated NOT militarily controlledNOT militarily controlled Controlled through trade and resources ($)Controlled through trade and resources ($) Dependency TheoryDependency Theory

56 Dependency Theory Low development in the periphery is a cause of their reliance / dependence upon core countriesLow development in the periphery is a cause of their reliance / dependence upon core countries But who decides dependency? –Core or Periphery? Is the Core better or worse off because of it? –Power Struggles: Food / Military Aid –Foreign Investment / Loans by Core –Imports / Exports – Price control –International issues?

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58 Anti- colonial revolts Colonial flags come down –Asia, 1940s-1950s, Africa 1960s-1970s NeocolonialismNeocolonialism begins –Periphery countries free, but… –Ex-colonial powers still dominate economies, resources, cultures, etc.

59 World divisions: Late 20th century First World (Global North)Industrialized capitalist countries of Western Europe, North America.First World (Global North) - Industrialized capitalist countries of Western Europe, North America. Second World - Centrally-planned socialist countries such as former Soviet Union.Second World - Centrally-planned socialist countries such as former Soviet Union. Third World (Global South) - Ex-colonies: India, Malaysia, Brazil, Algeria, etc. Fourth World (Global South) - Poorest nations including indigenous communities

60 North / South Divide The World Bank estimates more than 1.4 billion people (1/5 world population) live in acute poverty of < $1 (U.S.) per day. 70% women and children Global North vs. Global South

61 Regions of the World Village 333 East Asians333 East Asians 274 South Asians274 South Asians 132 Africans132 Africans 120 Europeans120 Europeans 86 Latin Americans86 Latin Americans 50 North Americans50 North Americans 5 from Oceania5 from Oceania In a world village of 1,000 people:

62 Household income Average annual income $4,890Average annual income $4, poor600 poor 300 marginal300 marginal 100 well-off100 well-off

63 Ownership / Consumption 200 richest villagers own and consume200 richest villagers own and consume 80% of goods 80% of goods Other villagers own and consume remaining 20%Other villagers own and consume remaining 20% 80 / 20 Rule

64 Fast (20%)Fast (20%) have access to telecommunications, consumer goods, arts & entertainment. Slow (80%)Slow (80%) have limited accessresentment toward the 20% with the technology. 20% of population owns 74% of all phone lines in the world. 80% of all websites are in North America. The Digital Divide Fast vs Slow worlds

65

66 So what will continue to drive globalization?

67 Globalization of the Future? Industrial growth of Asia and EuropeIndustrial growth of Asia and Europe Continued low wages in peripheryContinued low wages in periphery Cheap OilCheap Oil More Economic InternationalizationMore Economic Internationalization –Free trade agreements, international trade New Global MarketsNew Global Markets –New global technologies (Internet, cell phones, etc.) –On-line trading / commerce –Worldwide marketing (via satellite, Internet) Desire!

68 Its here to stay. Globalization…


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