GLBL 210 UNC Midterm

Ideology

A system of widely shared ideas, patterned beliefs, guiding norms and values and regulative ideals accepted as truth or fact

EX:

market globalism: the integration of markets -- everyone is involved in the market

Justice Globalism: activist centered, justice in the world

Religious Globalism: the idea that the world should not be connected, and religious purity should return.

Globalization

It describes the way countries and people of the world interact and integrate.

Globalism

the attitude or policy of placing the interests of the entire world above those of individual nations.

Project vs. Process

Project: There's a forceful element to globalization. It has a definite means or definite goal. There are certain agendas at play; an active process. (intentional)

Process: Globalization is constantly changing, there is no end game; it is not necessarily good or bad, a more passive force. (immanent development)

Race

- race was created by the colonists beginning in the 17th` century in order to justify enslavement of Africans to ensure that servants did not revolt against landowners and to gain a cheap but experienced labor force, that race should not be looked at in biological terms but rather evaluated in social and cultural terms as it is a "social phenomenon."

-argues that the history of the development of race is important to understand so people can recognize that noticing the differences between races is not innate and that the public has been conditioned into this behavior.

-race was first constructed in the sense of "whiteness" in order to distinguish poor whites from others to gain social status. The construction of race first relies on the presence of an "us" and led to the construction of the "other." This led to "scientific" racism based on cranium size which somehow correlates to mental aptitude (they fudged the numbers on cranium size too).

Racism

Belief that one race is superior to another

Racialization

assimulation-- the process of systematical racial or ethnic identities are constructed by the society

Colonialism

the establishment of a colony in one territory by a political power from another territory, and the maintenance, expansion, and exploitation of that colony. Usually results in unequal relationship between the colonial power and the colony and often between the colonists and the indigenous peoples. Def: political, social, economic, and cultural domination of a territory and its people by a foreign power for an extended period of time.

Colonialism was fueled by:

- Business (labor, resources, and markets)

- State (extension of power)

- Military (docking base and supplies)

- Church

Why understand Colonialism?

- To understand legacies and effects of

Colonialism that affect our world today

- Important as a historical occurrence, however, it -

- might not all be in the past

Neo-colonialism

the use of economic, political, cultural, or other pressures to control or influence other countries, especially former dependencies

the policy of a strong nation in seeking political and economic hegemony over an independent nation. Usually use capitalism, globalization, and cultural imperialism to influence this country in lieu of direct military control. European countries had continued economic and cultural relationships with their former African colonies. (related to Bretton Woods Institution policies like SAPs that seek economic power over post-colonial countries)

The white man's burden

The idea that colonization was intended to civilize the uncivilized, and it was the white man's duty to help these people. Westernizing people.

Magnificent African Cake

Refers to the conference in Belgium where European countries cut Africa into different pieces like a cake and decided on which country would occupy that part of Africa.

What were the similarities and differences between different forms of European colonialism?

- France saw Africa as people with the goal of assimilation

- Britain saw Africans as labor

- Both wanted Africa for its rich resources, labor,

and markets

Cultural Imperialism

The deliberate imposition of one's own cultural values on another culture; usually that of a politically powerful nation over a less powerful society.

Principle of White Supremacy

white people are superior to people of other races and they dominate over other races. They have a moral obligation to teach lesser races.

Indirect rule: governing through native political structures and leaders

Direct rule: imposing new governments upon native populations

The End of History Hypothesis

Fukuyama

the political and philosophical concept that supposes that a particular political, economic, or social system may develop that would constitute the end-point of humanity's sociocultural evolution and the final form of human government.

a belief that, after the fall of communism, free-market liberal democracy had won out and would become the world's "final form of human government

Economic Liberalism

ideological belief in organizing the economy on individual lines, meaning the greatest number of economic decisions are made by individuals or households and not by collective institutions or governments. Always a strong support for market economy and private property.

First formally recognized by Adam Smith. Result is believed to be a harmonious and more equal society of ever-increasing prosperity.

Money (as debt)

The idea that money is a fictitious commodity, and holds no true value but is put into place to hold debt. How money creates debt instead of clearing it.

Classical Economics

has to do with liberal economics (economic liberalism) and minimal government interference. (Smith)

Neoclassical Economics

An approach to economics that relates supply and demand to an individual's rationality and his or her ability to maximize utility or profit ; The economic approach provides a useful framework for understanding all human behavior"

Has idea that individuals maximize utility and firms maximize profits. Coincides with rational behavior theory. States that competition leads to efficient allocation of resources and this establishes market equilibrium between supply and demand. Neoclassical economics struggles with monopolies, value and price, and externalities (Smith as figure head, his works are skewed by Becker to "model" all human behavior)

Economo-centrism

This view sees economy as the most important indicator of society and relates to Great Transformation disembedding of economy from society (economy contains society so the economy is an indicator of society).

Adam Smith

1732-1790, economist and philosopher, he thinks • God made humans inherently good and pure, but outside influences make us become immoral

Smith thought that the amount of labor that went into creating a good created value.

He expounded upon division of labor and how rational self-interest and competition can lead to economic prosperity.

Influence of upper class:

Says that we should let upper class do whatever they want bc their wealth will trickle down to all classes (INVISIBLE HAND)

- classical economics

- free markets & trade

- liberalism

- limited role of the state

- radical belief in change & people

Invisible Hand

- Unintended benefits to society that result from individuals pursuing their own interests

Labor Theory of Value

- by adding labor to a good in order to improve that good or create a new good, we are creating & adding value

- idea that value of a commodity can be objectively measured by the average number of labor hours required to produce that commodity

is classical economics concept: argues that the economic value of a good or service is determined by the total amount of socially necessary labor required to produce it, rather than the pleasure the owner gets from it (according to marx). Smith implied that labor determined value in general. Marx expounded upon this to say that labor and laborers are commodities.

Karl Marx

- philosopher/economist

- communist manifesto

- division of labor is a war among the greedy

- The labor theory of valueSmith implied that labor determined value in general. Marx expounded upon this to say that labor and laborers are commodities.

- alienation/estranged labor

- The worker is estranged from the product

(doesn't own it)

- Estranged from labor he uses to make the

product (means of survival, not something he

necessarily wants to do)

- Estranged from his own humanity (no self

purpose or self-identity)

- Estrangement from man (regards person he's

working for as alien b/c he's taking advantage

of him)

alienation

Karl Marx theory.

It is the idea that the worker is estranged from the product he produces because the more he produces contributes to a world outside of him to which he does not belong.

Marx, Karl. "Estranged Labour"

Alienation:

Karl Marx theory. It is the idea that the worker is estranged from the product he produces because the more he produces contributes to a world outside of him to which he does not belong. The estrangement is also from the activity of production. The work that the worker performs does not belong to the worker but is a means of survival that the worker is forced to perform for someone else. There is also estrangement from the workers' own humanity.

Use Value

The usefulness of a commodity

Water has high use value but low exchange

Exchange Value

an assessment of the worth of something based on what it can be traded or sold for

Diamond has low use but high exchange value

Theories of Value

Does value come from use value or exchange value? Adam Smith is the first person to say the value of something comes from the labor that goes into it. Marx argues that the value of an item is in how it is derived/exploited. Nowadays, we view price as value, this is the neoclassical answer to the question of value.

Components of the Culture of Capitalism

Nation-State Triangle

The three points of the triangle are consumers, laborers, and capitalists, and they all work together to bring about capitalism. They work together through the flow of money because consumers buy crap from the capitalists which pay the laborers wages and so on

Nation State Triangle

The three points of the triangle are consumers, laborers, and capitalists, and they all work together to bring about capitalism. They work together through the flow of money because consumers buy crap from the capitalists which pay the laborers wages and so on

Karl Polanyi

Hungarian philosopher. Author of The Great Transformation. Talks about how humanity's economic mentalities were changed. Before market societies, people were not rational utility maximizers but after the development of modern market economies they were (I'd say that before this people were not assumed to be Homo economicus, but Great Transformation makes this assumption).

Polanyi, Karl. The Great Transformation

Disembedding of economy from society that skews man's relationship with other humans and with nature; this leads to myth of self-regulating market with social relations embedded in economy. Great Transformation occurred via the "satanic mill" that ground men into masses by liberalism (of markets), enclosure of the commons, disembedding econ. from society.

Society is reliant on the market (market society) and is embedded into the economy. Markets created within the moral fabrics of society.

- fictitious commodities are created by the govt, not the market.

- notes externalities, including on the environment

- Double movements (increasing marketization while advocating for protecting people)

Greed is the virtue → we base our value and others value on what they own

The rich are seen as valuable, smart, hard working (something we want to look up to) while the poor are seen as lazy and unwanted within society

Market Society provides new motive for human activity to barter for individual wealth

media , movies, and ads forcing us to want more things

Promotes individual wealth

Political systems are reliant on the market → large corporations controlling the government

The incentive for social interaction is for economic gain

Myth of the Self-Regulating Market

Regulations are needed to be "fair" and efficient for all

The Market will never regulate itself, because of powerful political influences

Self-regulation is based on the assumption that consumers will spend into the economy and maximize their utilities

the market should theoretically address any externalities like pollution but the system has been manipulated so that corporations can get away with things. This can tie into neoliberalism because corporations outsource their manufacturing for example to countries with little to no regulations and these are financially pressured by the IMF and World Bank to embrace the big corporations so they have no power to fix the issues like pollution. We make assumptions about the market which should make it regulate itself (think neoclassical assumptions about people/markets).

Embededdness/Disembeddedness of the Economy

"Instead of economy being embedded in social relations, social relations are embedded in the economy"

Term coined by Polanyi for process of Great Transformation. Refers to the degree to which economic activity is constrained by non-economic institutions (e.g. social norms). He argued that in non-market societies there are no pure economic institutions to which economic models can be applied, but the economic activities are simply "embedded." In market societies, economic activities are rationalized, and "disembedded" from society and able to follow its own logic.

Market Society

A society based around a market economy, especially one in which political and economic life is dominated by ideas of individual freedom and self-interest

Term by Karl Polanyi. He states that the modern market economy and modern nation state are not separate things, but are one human invention called the "market society"

Fictitious Commodities

coined by Polanyi. Refers to things treated as market commodities which are not created for the market, such as land, labor, and money.

land, labor and money; you can't actually own or control these even though they are treated as such

Homo-economicus

Homo economicus, or Economic human, is the concept in some economic theories of humans as rational and narrowly self-interested actors who have the ability to make judgments towards their subjectively defined ends.

Another term for economic man: a hypothetical person who behaves in exact accordance with their rational self-interest

John Maynard Keynes

English economist who advocated the use of government monetary and fiscal policy to maintain full employment without inflation (1883-1946)

Wants government to be involved (do stimulus systems)

• Wrote The General Theory

• Believed future was unknowable

• Cure to a deep recession is a big government "stimulus" package

• The future cannot rely on just statistics and mathematical statements

Milton Friedman

- economist, educator, policy adviser

- freedom of markets

- made economics into policy proposals

- "If you put the federal government in charge of the Sahara desert, in 5 years there'd be a shortage of sand"

Friedman is main proponent for neoliberalism.

argues that equal pay for equal work doesn't make sense: for example, says that if women's labor is valued less they should the only reason why they will be hired is because they are willing to work for less; if there is equal pay for equal work then employers have no incentive to hire women->they will just hire all men (same goes for race)

Friedrich Hayek

He is an economist that believes that a spontaneous order emerges from free markets, which are superior to centralized planning because they effectively utilize dispersed knowledge.

- Prices act as a vital information system, coordinating individual actions without central direction by conveying information about supply and demand to consumers and producers.

-minimal government intervention in the economy, believing that artificial manipulation of markets, especially during recessions, causes distortions and leads to further problems.

-strong believer in self-regulating market.

Externalities

economic side effects or by-products that affect an uninvolved third party; can be negative or positive

Corporation

They exist to make a profit. They are viewed as individuals. The only true Homo economicus.

- novel human creation moved by the search for profit

- seen as an individual who can buy/sell property, borrow money, sue/be sued; increase profits by whatever means necessary

Nation-States

states whose populations share a sense of national identity, usually including a language and culture

A nation-state is a construction/extension of a state used to justify rule after divine right to power ended. They were also formed because of a need for economic integration. Essentially, states no longer had a reason to rule over people after divine right to power ended. To fix this, states invented the concept of nations (I believe the French Revolution started this trend) by building an "imagined community" of people that believe they should be together based on political borders and any combination of language, religion, and/or culture. This was often through public education and the instilling of common social norms through rituals (like nat'l holidays, saying the Pledge of Allegiance). This creates a group of people who believe they should be together and ideally creates similar interests among people to establish a market. States want to make money via taxes and so they need to establish/promote markets.

Nationalism

A strong feeling of pride in and devotion to one's country

Imagined Communities

term borrowed from political scientist Benedict Anderson to refer to groups whose members' knowledge of one another does not come from regular face-to-face interactions but is based on shared experiences with national institutions, such as schools and government bureaucracies

Keynes & Keynesianism

theory arguing that government intervention is necessary to stabilize economies. Keynesianism is based on the idea that aggregate demand (total spending) drives economic output and that government policies can manage economic fluctuations like recessions and inflation by influencing this demand through fiscal and monetary means.

Bretton Woods & Bretton Woods Institutions

Post WWII meeting between nations to discuss financial and economic issues. As a result of the Marshall plan, these powers could move the focus from Europe and focus on the rest of the world. They in turn looked to the global south and other developing regions to invest in. This led to the creation of the World Bank and the IMF.

Brought about the IMF, World Bank, and the groundwork for the WTO. This meeting established a globally integrated economy with principles that ended up embodying the free market and enabling the corporate ideology to manifest. Originally were supposed to provide support for economic resurgence in developed countries after WW2 but eventually came to focus on the developing world.

Development

Linked to colonialism and the idea that "civilization" and advancement is related to whiteness.

Rooted in the Principal of white supremacy that you are either civilized or backward and inferior. Thus, development is heavily racialized.

western liberal democracy is viewed as the final form of human development. Thus, if a cultural or civilization doesn't meet this standard (our standard) must be "fixed."

Neoliberalism

idea that society should be shaped by free markets

market-driven approach to economic and social policy through deregulation liberalization of free trade and privatization

Building on the tradition of Liberalism, emphasis on the "liberal". Focused on globalization, more about freedom of the markets vs. freedom of the individual. Milton Friedman believes that by freeing markets you are freeing humanity.

Structural Adjustment Programs

SAPs generally require countries to devalue their currencies against the dollar; lift import and export restrictions; balance their budgets and not overspend; and remove price controls and state subsidies.

Monetary austerity: stop printing money

Fiscal austerity: stop spending

Financial liberalizationF

Due to globalization, most think democracy and neoliberalism economics are the only ways to create a successful economy and country. As a result, Western powers are basically forcing developing countries to establish these policies through Structural Adjustment Programs (SAPs) in order to be granted loans needed to develop their economy. They construct a policy "straight jacket," that does not account for the differences in society/culture/etc. among countries so these programs often lead to the deterioration of these countries' economies as the global North fails to recognize that the imposition of their policies is not always right for these regions. These countries often lack the developed infrastructure for these policies to be effective.

Washington Consensus

An array of policy recommendations generally advocated by developed-country economists and policy makers starting in the 1980s, including trade liberalization, privatization, openness to foreign investment, and restrictive monetary and fiscal policies.

When smaller countries need loans, and make requests, the consensus is that the countries in question need to go through structural adjustment programs in order to minimize risk to lenders.

Globality

a hypothetical condition in which the process of globalization is complete or nearly so, barriers have fallen, and "a new global reality" is emerging.

Theories of History (CLEEMP)

Cyclical (history repeats itself)

Linear (everything keeps going forward)

Emergent (new systems take place of old)

Episodic (history divided into chunks similar to the Mesozoic era, etc)

Multiple (depending on where you are the history is different? Multiple perspectives on events, etc)

Progressive (were constantly rising, sort of exponential like pop growth?)

Steger

Steger proposed views on Globalization that there is a dominant globalist project at the heart of all neoliberal agendas, etc. Globalization benefits all.

Is Globalization New?

Not a modern phenomenon -- depends on when you want to say it started.

- Prehistoric period: the time when all five continents are populated, begin growing own food and establishing a civilization

- Premodern period: comes with the invention of writing and the wheel, trade routes, etc...

- Early modern period: Europe catalyzes globalization through the Renaissance and the enlightenment, creation of the capitalist system

- Modern period: industrialization, capitalism spreads, world trade beings to increase, advanced technology, increased inequality, colonization then decolonization, WW2, cold war

- Contemporary period: Current acceleration of interdependencies and global exchange, follows the collapse of the soviet union which spreads capitalism further.

Raj Patel, The Value of Nothing

The first half of The Value of Nothing, showing the unreality of efficient markets and Homo economicus, continues the demolition of market fundamentalism that events have set in train.

"Nowadays people know the price of everything and the value of nothing." It's an apt summary of the problem of market culture today. We have become so acclimating to equating price with value that we have lost the capacity, even the vocabulary, for talking about value that cannot be expressed in money.

Adichie, "The Danger of A Single Story"

People develop a single story of a person, place, type of culture, etc... This created on the basis of stereotypes and people end up stigmatizing a certain place or person, misrepresenting them. (Ex: how people view Africa)

Esteva

Talks about the term "underdevelopment" and how it was coined by Truman in his inaugural address and how it creates a stereotype of all of the global south. Also notes on the fact of development being viewed differently by everybody depending on where and how you were raised (theory of positionality/// tyranny of place)

Also talks about how countries were not underdeveloped until wealthy countries made them underdeveloped (no country starts out as poor). The enclosure of lands also meant the decline of sustenance farming which took away the basic needs of most... the basic needs aid is trying to fix.

It also talked about the cultural and social traditions that imposed development gets rid of.

Friedman, Thomas. The Lexus and the Olive Tree: Understanding Globalization

Is an advocate of globalization but also recognizes the need for a country to preserve its local traditions. Argues that the importance of capitalism is that it is inherently connected with human freedom... Economic freedom is a necessary condition for political freedom.

Book written by Thomas Friedman. Says that globalization is balance between Lexus and Olive tree. Discusses the two struggles the world is undergoing: drive for prosperity and development (lexus) versus the desire to retain identities and traditions (olive tree). Talks about the spread of globalization with the integration of capital, technology, and information across national borders. He traveled to places all over the world to see how globalization is shaping the world.

Golden Straitjacket - Thomas Friedman. Says it grows economy and shrinks politics. It narrows the political and economic policy choices of those in power to relatively tight parameters. Has to do with the idea of a free-market, to wear the golden straitjacket, a company must decentralize the government, privatize industry, and eliminates tariffs/obstacles to foreign investment.

It's the idea that the tighter a country abides by the policies set by Structural Adjustment Programs (via Bretton Woods institutions like World Bank, IMF, etc.), and globalization in general, the more "gold" (economic prosperity) they will produce.

Adam Smith, "Theory of Moral Sentiments" and "An Inquiry into the Nature and Causes of the Wealth of Nations,"

Theory of Moral Sentiments

The main point that Smith makes is that our sense of morality is derived from our capacity to sympathize directly and indirectly with other people. We wish both to be praised and to be worthy of this praise, as well as to avoid both blame and blame-worthiness. On account of these interests, we must learn to temper our reactions to other people, as well as our reactions to fortune: we are naturally more interested in our own affairs than anyone else is.

Wealth of Nations

-invisible hand

- division of labor

- states play a minor role in protecting people/regulations

- liberalism

Davis, Mike: "SAPing the Third World,"

Countries are spending a lot of money in order to pay their debts, getting money as loans from IMF and getting more debt. No really good outcomes coming out of these. Developing countries have virtual democracies because IMF/WB controlling them through SAPs.