outsource production of goods to the
3rd world (Marxist description) to
utlise and exploit cheap resources and
labour
These commodities are then
sold at a more profitable figure in
affluent nations
Little thought to the
inequalities that emerge within
the chain of production =
CAPITALISM COLONIALISM
by 1st world = helps to
accumulate wealth
= underpinnings of Marxism =
rich get richer, poor get poorer=
spatial division of labour = poor
Vietnamese labourer ‘ proletariat’
+ wealth American retailer
‘bourgeoise’ – spatial fix
LINK TO COMMODITY CHAINS
STARBUCKS
spatial divisions of labour
NEWCASTLE
BROWN ALE
Brand transformed from one
part of the world to another - cultural
BUT - if americans find
out the ale is produced in
US = effects marketing
commodity chain
site of production/commodity
market = low differentiation - low
price
site of consumption/branded market -
high price - high differentiation
adding value
CULTURAL PERSPECTIVE
1) IMAGINED GEOGRAPHIES
link to retail +
consumption
sell commoditiess through
adverts, labels, celebrities
commercially effective
images of other 'places'
cultures
e.g. Newcastle brown ale
demonstrates the changing forms + extents + nature
of the geographical entanglement
how it creates/sustains, adds
meaning/value IN/FROM SPACE
+ PLACE
Pervasive nature of brands -
look beyond national 'place of
origin' to LOCAL 'place'
PIKE, 2008
reinforces social/economic
inequality through competiiton =
socio-spatial realms
2) BRAND + BRANDING FOR
TERRITORIAL DEVELOPMENT
LOCAL + REGIONAL
'endogeneous assets'
anchors for economic actiivity in
PLACE/local
insitutional thickenss
strong spatial associations
LINK TO CLUSTERS
place branding
international competiion for
investment, jobs, reidents, tourist
geographical attachment
to = HIGH = provides a
divisive trading advantage
link to imagined geogs
e.g. london = theatre OR
Florence = LEATHER
link to third italy
PLACES INSITUTIONAL ACTION
safeguards production e.g. negetive influences
low cost ares
e.g. regulational theory =
protects geog entanglement
link to
insitutional/evolutionary
approach
e.g. Geographic identification
establishes, reinforces + strengthens
geographic entanglement of brands +
branding in place for territorial
development
+VE EXAMPLE -
SAFFRON IN LA
MANCHA, SPAIN
Chaning insitutional
enviornment
Poorest region in spain
2005 -
regional gov
-stmulated
economy to
act to RAISE
PROFILE OF
PLACE
quality brand of locally
grown saffron as luxury +
premium priced export
BRAND EQUITY
Differentiate from the
low cost brand of IRAN -
reduce competition
distintion through BRAND
sold in
retail
outlets =
NY/PARIS
niche market =
destablished exisitng
market = lost cost etc
work/income for 1000 families
-VE
encourages over specialisation
= vunerability = LOCK IN =
inhiniting local eocnomic
adaption + innovation
relinking production to social/cultural
environemental aspects of PLACE
Commodity chains
CONSUMPTION = SALE, PURCHASE +
USE of a COMMODITY (coe et al 2007)
LINKING SITE OF COSUMPTION
WITH SITE OF PRODUCTION
3) perspectives
1) NSITUTIONAL = global
networks of trade + impacts on
development
2) POLITICAL ECONONOMY
social divisions of labour
3) cultural - addressing the
complex movement of
knowledge around the
commodity chain
EXAMPLE = GEOBAR
global and
ethical
commodity
chains
ethical consumption -
NICHOLL, 2010
stated purchase intention of consumer +
purchae behaviour = contradictory
insitutional networks
global
spaces of producers
Ekstenskul agri cooperative- N.Cape
flooding
sites of retail -
alternative vs
mainstream
SUPPLY CHAIN/ politics of
cosumption
'FOLLOW THE THING'
N.london flat -> UK supermarket ->
Jamaican farm
Unknowingly connected to each other through
intrenational trade of papaya
COOK, 2004
wanted to stimulate debate, fit into radical
teaching agenda
interconnections of political, economic, social,
cultural and agriculture
linked to HARVEY 1993
need tp get behind the viel
of = COMMODITY FETISISM
of the market
look for disturbing onncetions between western
cosumers + distant (invisible) strangers
moral + ethical questions for exploitees = who cannot
see the finger tips of exploition
defetisise commodities
connect cosumers + produers
marxist scholar = exploitation
at the site of produciont
WATTS in cloke et al, 2005
chickens =
represents the
bundle of social
relations
= HISTORY OF US POST
WAR CAPITALISM
commodity of
capitalism
commodity
producing
commodities
explained through
marixist theory
marx = commodity = economic cell form of
capital - in society commodity is the general
form of wealth = people do not cosume what
they produce - sell for money (exchange) =
aquire other commodity
= COMMODITY CIRCULATION
2 POWERS of COMMODITIES
1) USE VALUE
satiify human want
natural form of the commodity
incommensuability of commodities
qualitiative
2) EXCHANGE VALUE '
social form'
ability to command other
commodities in exchange
commensuability of commodity
quantitative
exchange 20000
chickens for car
UNNIVERSAL
EQUALIVALENT = MONEY
link to money + finance
CULTURAL = change
in taste + health
reason = shift from red
meat -> chicken
now - low cost
us - breast meal
ASIA- leg, feet,
wings
hidden exploitation - insitutional
arrnagment?
grown under contracts of TNCS
growers - no bargaining power -
borrow heavilly to build infrasture to
meet contractual requirements
propertied labourers
lots of immigrant workers - vietmanese
e.g. TYSON FOODS (US)
'controlling the centre of
the plate for the American
people'
Money + Finance
3 FUNCTIONS OF MONEY
1) Medium of
EXCHANGE +
circulation
COMMODITY CIRCULATION
lINK TO COMMODITY CHAINS
2) store of VALUE
commodity circulation
use money to
buy another
good
DICKEN 2003 - Commodity
capital -> production capital ->
commodity capital ->
monetary capital
seperation of the
sale + the purchase
of commodities
2 contraditions
1) CONSERVATISM =
Quality of money is crucial
want - 1)stable SO
2)maintains value 3)
puchasing power between
different times + spaces
2) CIRCULATION =
Quantity of money is
crucial
1) extneded as credit
2)freely avaliable, 3) risk
takers
root of CRISIS
3) UNIT OF
ACCOUNT
money + finance role in
the economy + societ
GEOG of MONEY
End of geog?
O'Brien 1982 - indifference
to space - deregulation of
finacial systems + markets
(neo)
rise of TNC
overseas
time-space
compression
tradable finacial
products
GEOG OF
GLOBAL
FINANCE
Global finacial
centres are not the
same
reflection of
power/domination
currencies - some
have greater
spatial reach e.g.
yen, dollar, euro
monetary networks
that overlap = not just
one
FINACIAL CRISIS
FINACIAL NETWORKS
Produce
inclusion/exclusion
SECURITIZATION = mortages/loans
accumlate - sell loan - to other
insitition = get profit from
accumulation but also RISK e.g. if
cant pay mortgage
SUB-PRIME LENDING =
(prime = good) sub prime
= no job/credit history -
previously wouldnt get
loan/mortaage
INCLUSION +
EXPLOITATION
NOT NEW - but new
model - originate +
distribute
difference
space/scales
'fixes'
distributed
emanates from
the most poweful
networks of g.f.s
marx/harvey 1993
HISTORY
origin US -
house prices rising -
competition between
investment banks
sub-prime
mortages
caused
CRISIS OF DEFAULT
people couldnt afford to pay
mortgage
CRISIS OF LIQUIDITY
1) no insititutions will buy book debt
2) insititutions e.g. banks with the funds to lend money
stop lending becuase if
they require future
finacial help no one will
be able to help
only lend to relaibke cases e.g. no
entrepeneurs - do not support buisness
interests
industry grinds to a halt = MARKET STAGNATES
COLLAPSE IN
TRUST/COFIDENCE IN
FINACIAL INSITITUION
NORTHERN ROCK
LENDING 125% - when bought house could furnish
instead of putting money on multiple credit cards with
high interest rates
thought property prices would rise - but fell - meant the money they
had lent was more than the price of the asset
so a lack of liquidity
default of own positiion
bank of england -
gave debt rating
investors wanted to
secure their money
'compound it'
moved from insitution to gov gaurenteed anyone 50000
in order to maintain confidence in UK banking system
banks
secruitised debt
instiutions unclear of
what real value of
what they hold
inclusive - previously
wouldnt be able to get
loan/mortage
EXCLUSION
targetted = low income areas
geog of repossesion = correlated
with ethnic groups
Afro-Americans - 2x as
likely than white
high front loaded
fees, high penelties,
teaser rates
predatory lending
many small liquid loans =
large liquid asset
Cleveland, US
homelessness,
bankruptcy, illness
law suits against 20+ us sub-prime
lenders under nauissance law
price of finacial crisis -
effected people that did
not cause it
gendered crisis
sutherland, 2009
solution - alternative
finacial space =
islamic
G20 - REGULATE
old model =
relationship
banking
UNDERLYING THEORY = MARXISM
spatial circuits of adding meaning + value
= PRODUCTION (making goods) ->
CIRCULATION (e.g. Advertising) ->
COSUMPTION (e.g. shopping) ->
REGULATION (copy right)