1. UNIT 6 LESSON 7

2. THE STUDENT WILL BE ABLE TO DISCUSS…  Structural Loans & Dolloarization

3. GEOGRAPHICAL SITUATION & DEVELOPMENT  Context: things happen in a place as result of forces operating concurrently at multiple scales  Not just one thing, but rather world, state, and local all have influencers.  Globalization plays an important role  What happens in one place can influence what is happening locally in another.  Example: Global markets flooded with oil, Houston faces an economic downturn (Global to Local)

4. DEPENDENCY  Colonialism and Imperialism dictated the economies of some countries  Raw materials sent else where to be processed  Decolonization: Colonial power leaves and turns over government.  Post-Colonialism: Developments in a country after colony leaves  Sometimes ask; “Who are we culturally?”  Countries are given freedom, but then turn to what they know how to do, extracting raw materials to be sent elsewhere  Neo-Colonialism: Economies of poor countries are still controlled by richer countries (actually, mostly trans-national corporations)

5. NEO-COLONIALISM & DEPENDENCY THEORY  Control is exercised through:  Foreign Direct Investment: Investment by a firm in one nation-state in a firm in another nation-state with the intention of controlling it (Ritzer, 2011, p. 33).  Foreign Aid: Includes financial assistance and food subsides. Good for short-term, bad for long-term because it led to food dependency.  Dependency Theory: Various definitions, text has one, a different one is: Development of the nation-states of the South contributed to a decline in their independence; to an increase in their dependence on the North.  The more a country tries to develop; the more dependent it gets

6. STRUCTURAL ADJUSTMENT LOANS  Structural Adjustment Loans: Conditions of economic “restructuring” imposed by organizations such as the World Bank and the IMF on borrow nation-states  Countries had to engage in neo-liberalism: “liberal commitment to individual liberty, a belief in the free market and opposition to state intervention in it” (Ritzer, 2011, p. 37)  Privatization of industry  meaning it is all held by private companies  Deregulation of the economy  sometimes government puts some checks on the economy (Removing tariffs that protect producers)  Limit or eliminate social welfare programs

7. STRUCTURAL ADJUSTMENT LOANS CONTINUED…  Loans given at high interest rates  Loans were for “development”  Interest payments on loans took a large chunk out of economic prosperity of countries (Remember Latin America on the clicker check?)  Neoliberal Criticisms:  U.S. 2007; Government bailed out large banks and car producers in the U.S.

8. BRANDT LINE (IN GETIS, DIFFERENT CHAPTER) -Uses GNI and GNP per person -Northern countries traditionally wealthier than southern -A lot of criticism; it’s arguably out of date with the emerging countries in Asia -Also doesn’t take into account disparities within same country.

9. WORLD SYSTEM THEORY  Wallerstein 1974: We’ve talked about this already.  World System Theory: Sees the world divided mainly between the core and the periphery with the latter dependent on, and exploited by, the core nation-states.  Structural in that it cannot be changed  Argues that countries that have been “developing” are simply led further behind  Discusses that development is actually offensive; it assumes that Europe’s model is right  Argues that someone has to be left behind for others to succeed

11. WHAT WE DON’T TALK ABOUT IN AP HUMAN  Hooray globalization! Comes up again and again, but…criticisms exist beyond eroding local cultures  Many theories surrounding globalization, such as World Systems Theory and Structuralism Theories actually talk about how globalization is an extension of Neo-Colonialism  Ways for the dominate to continue exercising control