Globalisation

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Globalisation

Modernisation theory- The view to develop means to become modern- to adopt western cultural values and social institutions. Underdeveloped societies subscribe to traditional value systems and institutions that impede their development process. They need to divest themselves of this unhelpful baggage. Modernisations inception is inextricably linked to the ideological struggle associated with the Cold War.

Walter Rostow- development should be seen as an evolutionary process in which countries progress up a development ladder of five stages.

Cultural shift from ascribed to achieved roles and the production is agricultural.

Capital investment by Western companies and official aid

industrialisation

export of manufactured goods to the west

the age of high mass consumption, majority of citizens live in urban rather than rural areas.

Rostows focus was on economic change. Parsons and McLelland stress for a cultural change. Traditional religions such as Islam and Hinduism are seen to be a problem as they are perceived to be

anti-secular, anti-science

roles are ascribed rather than achieved

collectivist rather individualist

restrictive attitudes towards women and family structure

Criticims

ethnocentric

ignores the social and economic problems of the west (high divorce rates, crime, poverty, suicide)

fails to acknowledge the environmental impacts of all countries becoming high consumers. There are a finite amount of resources likely to see conflicts and environmental degradation

modernisation theory is seen as anachronistic

Dependency theory- The lack of development is the consequence of the policies of Western nations that constrain them in a cycle of dependency and underdevelopment.

Frank- there is a global system of capitalism in which core nations such as UK/USA exploit the peripheral nations. They are maintained in a state of dependency and underdevelopment because the developed world requires cheap raw materials and labour. Contends that

Criticisms

neo-liberals argare that colonialism did have positive benefits, provided LEDCs with basic infrastructure (transport and communications)

Marxism over simplifies things. Some countries have benefitted from adopting a capitalist, free market model. Asian Tiger economies (South Korea, Singapore) moved rapidly from poverty.

Marxist analysis is stronger on criticisms than solutions. The proposed solution of Communism has been largely discredited, has not been successful in the past usually led to corrupt and oppressive governments

Neo-liberal theory- Currently the dominant ideology in global development. Emphasis on a full-blooded advocacy of unregulated free -market capitalism. Replaced the modernisation theory which now appears anachronistic.

The rule of the market-

Deregulation- Make it easier for businesses to start up and avoid laws that make it difficult for businesses to operate profitably

Privatisation- The state shouldn't be responsible for running industries, should be left to private companies. They will be more efficient because they need to make a profit in the competitive market.

Free Trade- There should be few if any restrictions on the movement of goods between countries. Tariffs, quotas all interfere with the mechanisms of the free market.

Trickle down effect- It will create more wealthy individuals. The wealthy individuals will spend their money in a way which creates more jobs and benefit all members of a society.

Criticisms

The theory is based on the premise that the ultimate goal for all societies should be to have high levels of consumption.

The emphasis on competition, aggressive individualism, secularisation and urbanisation is bound to be damaging to cultures based on kinship and co-operation.

It is generally agreed that unregulated free markets is what caused the financial crash of 2008, it was the state that had to step in and help rescue the world economy.

Sustainable development

Development which protects the environment, development which advances social justice

Economic development shouldn't make a country overly dependent on the whims of other, more powerful countries of TNC's.

Development should not be at the expense of future environmental stability

The society that results from development must be a just and equitable one, based on democratic principles.

Post-development

Escobar and Sachs argue that existing theories of development are hopelessly outdated and no longer fit for purpose

It is not possible to define countries as developed/underdeveloped, each country presents a unique economic state that defies simple binary classification.

Resist the idea that there is only one model for development (American model) and argue that the term needs to be deconstructed, allowing each country to define their own idea of what development means to them. These poorer countries can thus take control of their own destiny and create their own criteria for success.

Criticisms

Rather more effective at criticising other theories than it is at providing any solutions.

It is naive to argue that poor countries can define their own path to progress ignoring the globalised economy which they have little control

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Globalisation

cultural effects

Cultural polarisation- the division of groups into opposing often antagonistic camps. Some groups or individuals believe their culture must remain pristine and untouched by the influence of other cultures. Any sign of purity of their own culture being diluted by the presence of another can lead to an aggressive, violent resistance to change.

Cultural Homogenisation- Consumers are now able to access goods from across the world. Some sociologists see this as a destructive process where local cultures are crowded out by brands that largely originate in the West and predominantly in America.

Cultural hybridisation- A more optimistic view of globalisations impact on culture. (hybrid = a combination of two or more original sources) In relation to culture hybridisation describes the way in which new cultural forms are created when people see the possibilities of fusing elements from their own culture with those of other cultures that they have been exposed to.

Mini cultures- ToppDogg-South Korean rapper

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Political effects

1. One view is that as more countries develop they will adopt the political systems of Western Europe and America i.e. liberal democracies. As countries grow wealthier an educated middle class develops and demand greater freedom of expression, citizen rights, fair elections and rule of law.

-Democratic shift meant that oppressive governments are no longer able to control ideas and images that their citizens are exposed to. Number of rebellions that became known as the Arab Spring - used social networking sites on the internet.

Tunisia showed people what life was really like across the world - strike change

2. There are also negative effects where groups within a society feel that their values are under attack. In particular they may feel that their traditional values are being driven out by a shift to western-orientated market capitalism. This may result in a growth in political resistance to what is perceived as cultural imperialism.

-In some cases the resistant can become violent. Radical Islamist groups are motivated by what they see as the imposition of Western values that are antithetical to their own traditional religious views such as IS. They believe a growth in western capitalist ideology creates an existential threat, which they are willing to resist with violence.

-They are fighting Globalisation yet use videos and social media platforms to spread views.

- examples: 9/11, 7/7 bombings, Paris attack

3.

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Economic effects

1. Outsourcing- TNC's seek the most cost-effective way of producing goods, finding the cheapest labour usually found in LEDC's. This means they have global spread and therefore global power.

-mutiplier effect- those with jobs in factories can spend money on goods and services which benefits small local businesses. Government gains more tax revenue allowing them to spend it on public goods.

- it (LEDC) needs money and so it will bend over backwards to accommodate the needs of the TNC even it it disadvantages itself.

- as soon as it is no longer profitable to stay in the developing country, the TNC will leave.

-Primark have shown that they maintain their famously low prices by paying starvation wages to workers in Bangladesh and India

EXAMPLE

Rana Plaza collapse in Bangladesh

cause

lack of rules

mass of people working there

bad construction- 8 stories high should have been 3

fear of loosing business meant health and safety laws were neglected- ignored cracks

exploitation of workers

Effects

11,000 died

thousands amputated limbs, people as young as 14 couldn't work anymore

no one took responsibility- no compensation

nothing has changed, Bangladesh so dependent on selling their cheap goods to places like remark

exploitation of workers still occurs

2. Just as production has been globalised, so has consumption. TNC's see developing countries as 'emerging markets' (places where they can sell their goods). Large global brands operate in more and more markets globally. Top 3 global brands Apple, Google and Microsoft: mainly American and Chinese brands.

- Some argue that TNC's use their economic muscle to dominate the markets they move into, crushing small local businesses. Allowing TNC's to increase their monopoly power. Reinforces HOMOGENISED CONSUMPTION: consumers all around the world wearing the same clothes, eating the same foods etc.

- Others argue that it incentivises local companies to develop new business models and innovate their brands. Local companies are exposed to modern business practices, technology and management styles. Allow them to create new possibilities for themselves.

3. The money markets are also heavily inter-dependent. With loans and investment international in nature, one problem that comes with this is economic contagion(where economic events in one country have a knock on country have a knock on effect in other countries)

-The global economic crash and subsequent recession in Europe was predominantly the result of the mis-selling of sub-prime mortgages in the USA. The sub-prime market failure was American. The effect of the failure was however global.

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Foreign aid and development

Bilateral aid- The government gives direct financial support to the government of a developing country.

Multilateral aid- Given by international bodies (world bank). May take the form of grants or loans, the world bank e.g gives loans to developing countries and then charge interest on those loans

Charities NGO's- Such as Oxfam and Christian aid give support advice and financial help. NGO's are financed through charitable donations

Modernisation

Argue that aid is a positive force, especially if it encourages countries to adopt norms and values similar to Western liberal democracies. Rostow believes aid can kick start the move to development, without aid it is argued that many developing nations would not get beyond the first rung of the development ladder.

Saachs-adovates aid support for the poorest countries, helping them get on the first rung of the development ladder.

Aid has never been properly resourced or targeted for a focused period to end the poverty trap

NL like Moyo campaign against the kind of aid that can keep millions of African children from dying- more than 2 million Africans have access to life saving AIDS treatment.

Purpose of aid should be to break the poverty trap, disease control, children's education, core infrastructure, good sanitation and business development.

helps fight diseases like malaria

aid hasn't been used in the right way

helps first steps to modern society

education- development need educated workforce

Dependancy

Hayter, argues that most aid comes with conditionalities, the country giving the aid expects something in return usually related to free trade or strategic defence. E.G- US has given billion dollars of aid to Pakistan in return of military aid to support Americas war on terror.

Aid doesn't always get to the people who need it most. Corruption amongst countries elite mean funds are diverted for the well being of the privileged or to support international wars of suppression.

Condition of aid is often the threat in the way the developing country develops.

Aid is another means by which wealthy powerful countries keep poorer countries in a condition of subservience.

Aid is used as a means to impose free trade agreements on countries.

Money being dooled out to Africa to fight HIV/AIDS is also a form of tied aid

money spent on aid in developing countries amounts to only 0.3% of GNP of industrialised nations.

New right/ Neo-liberal

Aid has a damaging effect, encourages LEDC's to be lazy to accept handouts without having to do anything. Argue free trade should encourage LEDC's to show initiative to develop their economies through the sale of goods and services.

Point to the success of countries like South Korea and China as Newly Industrialised Countries- success has been gained through trade not aid.

NGO's are self-perpetuating industries who are less efficient than the free market in raising standards of living in developing countries.

Moyo- believes trade is better than aid. Evidence demonstrates that aid to Africa has made the poor poorer and the growth slower.

Over the past 60 years $1 trillion of development related aid has been transferred from rich countries to Africa- yet real per-capita income today is lower than it was in the 1970's.

African Union estimated that corruption was costing the continent $150 billion a year

a lot of aid doesn't go to Africa

disincentives them to work

doesn't reach the people who need it

"makes good leaders bad and bad leaders worse"

depend on others for things they should do themselves

Fair Trade

Between Neo-marxist dependency and Neo-liberal. Argue that trade rather than aid is the best way for countries to build up sustainable businesses.

Believe its ridiculous to expect poor countries to compete on equal terms with wealthy powerful ones

Fair trade goods often cost more but those who buy them can be assured that they are helping to provide sustainable development for LEDC's.

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What are NGO's

typically value based organisations which depend on charitable donations and voluntary service.

Since the mid 1970's the NGO sector in both developed and developing countries has experienced exponential growth.

NGO's are meant to be politically independent which is difficult because they must receive funding from their government, businesses and private sources, these can have direct or indirect political weight on decisions and actions that NGO's make.

Example

MSF

known for its projects in war-torn regions and developing countries facing endemic diseases

provided medical aid in over 60 countries

doctors and nurses decided to volunteer their time to solve issues of world health

private donors provide 80%. of the organisations funding, governmental/corporate donations provide the rest

annual budget of $400 million

Strengths

perceived to be more independent from governments. Don't come with the ideological baggage.

Tend to be smaller and more flexible in their responses to situations

Governments in poor countries are often not in positions to prioritise the needs of the most marginalised, NGO's can meet the needs that the government is unwilling or unable to

Weaknesses

NGO's are sponsored and finally subsided by governments and some have religious( christian aid)/ideological agenda which may create conflicts where this is resistance to outside influence. E.g targeting of vaccination programmes in Pakistan

may provide a 'sticking plaster' solution which addresses the most obvious manifestations of a problem but fails to address the underlying structural problems with a country's economy

some believe NGO's have become a self-serving industry, depend on continuing crises for their maintenance

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IGO's

International government organisations that regulate financial exchanges between countries.

World Trade Organisation

-been regulating trade between nations since its creation in 1995. Rules are decided by WTO agreements which 151 countries negotiate and sign. Help producers of goods and services, exporters, and importers conduct their business.

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