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74 Cards in this Set

  • Front
  • Back
Point Four
a program for economic aid to poor countries announced by United States President Harry S. Truman in his inaugural address. The program presents the U.S. as a model for poorer countries and obliges the U.S. to “help” them look more like the U.S.

1. Acknowledges poverty
2. u.S. has obligation to "help"/change
3. ****Presented as win-win situation* (for U.S. and Third World)
4. "Development" becomes transitive verb
5. Concept erases history
6. ****Development is *economistic*, only measures GDP
7. Establishes "development" as we think of it today
Temporal Fallacy
false assumption that if third world countries are given time, they will build an economy based on textiles just as the U.S. did years ago (fails to consider different global environment, lack of current mechanism for change, etc.)
Modernization Theory
attempts to identify the social variables which contribute to social progress and development of societies within a nation

*McMichael says neither Modernization or Dependency Theory makes sense if we consider LIMITED RESOURCES
Dependency Theory
notion that resources flow from a "periphery" of poor and underdeveloped nations to a "core" of wealthy nations, enriching the latter at the expense of the former. (international in scope)

i.e. Colonial Division of Labor: industrialized countries buy raw materials, make goods, sell them back to poorer nations for profit.
Hegemony
when projects/interests of elites are made to seem common-sense for everyone else; the ideas of the ruling class come to be seen as the norm; they are seen as universal ideologies, perceived to benefit everyone whilst only really benefiting the ruling class

i.e. World Bank: power creates dependent relationship, not only oppressive. Creating the knowledge that is dispersed, researchers look to World Bank for data about environmental quality of certain corporations but inaccurate--skewed to Bank's interests.
Economism
essentially reduces all social facts to economics, supply and demand become only important factors in decision-making, ignores political, cultural, social components of society
First Nature
the value of a thing is inherent in naturally occurring processes

*Cronon's Idea

Potential objection: Intellectual Creation?

We can't know nature as external because we only know it by entering relationship with it
--By studying nature, automatically alter it.

Solution:
--First and Second Nature are *FRAMEWORKS,* can think of things as one or other at different times
Second Nature
the value of a thing is a mixture of nature and human labor

what we can do is always dependent on first nature (intrinsically linked)
Political Ecology
combination of political economy and ecology, research that studies the political and economic causes of environmental change and documents alternatives; focuses on the institutions and practices of politics that create wealth

**Research that studies the dynamic relationship between first and second nature**
Neo-Malthusianism
idea that overpopulation will increase resource depletion and environmental degradation.
-Eventually some will die and equilibrium will be reached

-gov't should not intervene to help hungry because this is a means to reach equilibrium

-Debate: environmental degradation is a natural result of population growth vs. lack of sustainable technology is the problem

Some say: in certain countries, gov't uses land for imports/exports and forces people onto more fragile lands (not necessarily population growth)

*also about political actions shaping distribution of food, etc.
Sustainability
having the capacity to continue existing in one’s current state, a means of producing goods and services in a way that preserves the environment

-preservation of local identities and culture

-increase productivity, health, and well-being, while minimizing the impact on the environment

**All definitions require a FEEDBACK MECHANISM to measure if/how our actions are affecting the environment**
Embedded Economy
Idea that the economy is embedded within society, which is embedded within the environment (common thought under Feudalism); the economy is governed by the customary rules of society.

w/ Industrialism this changed: economy became separate from society, governed by different rules (supply/demand)

-Idea by Karl Polanyi (writing in context of ecological and social downfall during Great Depression)

-Polanyi's paradox: fictitious commodities--should their use be governed by market principles alone?
Fictitious Commodities
land, labor, and money: not produced to be sold, but treated like commodities on the market. This leads to exploitation of labor, harming environment, and poor working conditions.

-Karl Polanyi's idea. And his question: Should these commodities be governed by market principles alone?
Double Movement
the market expands for genuine commodities but politicians (pressured by social movements) restrict the market’s role in governing “fictitious” commodities (land, money, labor)

-Idea by karl Polanyi, writing during great depression struggles.
Market Value/Moral Value
(Adam Smith)
Market Value-the value of an object/service is the price it would bring to an open, competitive market as determined by supply and demand.
-In Neoclassical Economics: many theories equate the value of a commodity with its price. As such, *value* DEPENDS on there being a market.
Moral-an object with moral value is one that an actor is morally obligated to strive toward
Social Reproduction
usually unpaid labor to keep households/communities functioning and to allow them to send productive members out in the world to work

-activities involved in reproducing and supporting family members from day-to-day and from generation to generation.

-"healing wounds, putting everything in order, helping out in all matters..."
Human Development Index
new way to measure society’s “well-being” (vs. just using GDP); combines life expectancy at birth, knowledge and education (literacy and school enrollment), and standard of living (GDP).

Developed b/c GDP=Inaccurate
--doesn't keep up w/ changing economy, services, tech, gov't, etc.


Measures of Well-Being Should:
1. Be multi-faceted
2. Focus on income, consumption, and wealth *rather* than just production
3. Should take household as unit of analysis
4. Should measure DISTRIBUTION (top, bottom, etc.); average alone=inadequate
5. Should include non-market activities (gardening, etc.)
6. Should consider CAPABILITIES (Amartya Sen)
Amartya Sen's Capabilities Approach
Standard Approach:
Income--> Capability --> Functioning --> Happiness

SEN SAYS:

Differences in capacity to convert this $/goods to happiness is more important.

Income-->CAPABILITY-->FUNCTIONING-->happiness

prerequisites for converting money into happiness=health, education, freedom; Sen emphasizes capacity to convert income to valuable achievements.

What really matters are the extent of peoples' opportunity and their freedom to choose among these opportunities, *the life they value*

-Quality of life depends on health, education, activities, participation in politics, social and natural environment in which they live, and personal and economic security.
Commodity
something that satisfies a need, must be transferred to another person through a medium of exchange (dependent on social interaction)

"the containers of hidden social relations"
Labor Theory of Value
the value of a commodity is determined by how much labor goes into it: the improvement of labor makes the value.
Use Value
tangible enjoyment, the qualitative aspect of a thing
Exchange Value
proportion in which objects are exchanged, this value changes from time to time and place to place.

contains a mystery: corn and iron equated; both are equal to a third thing: LABOR
Commodity Fetishism
*Marx

-we tend to forget about labor going into objects, the social relations between people assumes the form of a relationship between things

-social relationships seem to be mere relationships between commodities. Belief that value inheres in the commodities *RATHER* than the fact that it is added to them through labor. This is misunderstanding.
Commodity Chain Analysis
the identification of the actors and processes that contribute to the origination of a product that is consumed by a market, such as raw materials, produces or consumption goods.
Colonialism
subjugation by force of one culture by another

-began by following trade routes, alliances b/t merchants and explorers created polities and eventually developed political sovereignty

-Military conquest began. Gave colonialists right to resources AND implemented social relationships so they got even MORE.

examples:
-set up plantations, some for goods to be imported to New World
-feudal relationships: slave labor and triangle trade
-sugar plantations: increased slavery, plantations, etc.

Effects:
-Racism
-Destroyed pre-colonial communities
-Colonial division of labor
Colonies of Settlement
colonizing power sends people to live in colony to rule, farm, set up industry, and mine
Colonies of Rule
colonizing power works through local organizations/rulers rather than actually settling in the territory and ruling themselves

-colonial power puts in place an administration that extracts resources and organizes local people to work on colonial projects

*i.e. most of Africa*
Colonial Division of Labor/Unequal Exchange
colonizing powers extract primary resources from their colonies, use it to manufacture products and then resell them to those colonies for a profit.
Destruction of Precolonial Cultures/Ecologies
colonizing powers’ extraction of resources and subjugation of their colonies resulted in depopulation, banning local religious practices, siphoning labor for colonial project, imposing private property, disrupting local governance of food, etc.
Food Aid Regime
U.S. used gov’t subsidized food crops to export to other countries

-Impacts (i.e. in columbia):
--receive a ton of U.S. wheat (instead of producing their own). The prices of their own wheat drops, their wheat production drops, and imports account for 90% of wheat consumption
PL 480 (Food for Peace)
concessionary sales of U.S. agricultural products to developing nations, donation of these products for humanitarian purposes (USAID), and donated commodities sold domestically, revenue supports econ development (USAID): this bill blatantly benefited the U.S. and powerful third world elites, local farmers lost out
Non-aligned Nations Movement
began in India, attempt to thwart Cold War politics (Third World attempt to assert rights)
Bretton Woods monetary agreement
est. stable but adjustable currency exchange rates, signatories agreed to maintain exchange rate of currency within a fixed value that was linked to the $ which was linked to gold.

-established rules for commercial and financial relations among worlds major industrial states
--Countries participated because they were just coming out of the Depression
--All currencies were convertible to the dollar, intended to *STABILIZE*
--ended in 1971

*Est. IMF and World Bank
World Bank
IGO created to undewrite growth by funding Third World imports of First World infrastructural technologies.

-provides leveraged loans to developing countries for capital programs
IMF
IGO created to stabilize int’l finance by disbursing credit where needed

Oversees global financial system

Objective: stabilizing int'l exchange rates, facilitating development

HQ in D.C.
Green Revolution
First World initiative to change the social and technological basis of Third World agriculture from mixed farming systems based on local inputs to mono-crop systems based on high-yielding varieties and intensive use of fertilizers, pesticides, and irrigation
Criticisms of Green Revolution
While Green Revolution did help Mexico become almost independent wheat producer, it also:

-Increased inequality among farmers (widened rich-poor gap)

-created dependence on chemical companies for hybrid seeds

-loss of local genetic diversity

-loss of agricultural knowledge

-intensive use of h2o
-Was a product of globalization
-extensive use of pesticides and monocropping

The increased level of mechanization on larger farms made possible by the Green Revolution removed a large source of employment from the rural economy.
-displacement of women from agriculture

-water-logging and salinization, which made land unusable over long term

-displaced small producers, reduced agricultural employment
Import Substitution Industrialization
-A strategy of protecting domestic industry through tariffs and other barriers.
-Designed to overcome the specializing effects of the colonial division of labor
-LInked to Dependency Theory

Internal division of labor between sectors
The "World Factory" or "Global Assembly Line"
a production system organized by multinational firms,
with geographically dispersed steps—
an “assembly-line” that crosses national boundaries.

growing cotton in Nicaragua, spinning thread in Honduras, weaving fabric in U.S, sewing shirt in Dominican, retailing in U.S.
Export Processing zones
Specialized zones established by states to attract foreign investment in export production, with concessions such as cheap labor, infrastructural subsidies, waiving of environmental rules, and tax breaks.

"Hey, foreign country, invest in our product. We have cheap labor, we'll give you tax breaks, and you don't even have to worry about the environment!"
“Race to the Bottom”
Competition that is structured around cost-cutting, rather than technology or labor process improvements
NICs (Newly
Industrializing
Countries
Middle income Third World
countries that industrialized
rapidly and substantially
beginning in the late 1960s

Includes Hong Kong, Singapore,
Taiwan, South Korea, Brazil,
Mexico
NACs (New Agricultural
Countries
Middle income Third World countries
pursuing agro-industrialization and
agro-exporting

Includes Brazil, Mexico, Argentina,
Chile, Hungary and Thailand.
End of Bretton Woods
monetary system
Ended the gold-dollar standard by
which all currencies were fixed to
a gold value through the U.S. dollar

Liberalization of financial rules made currency trading easier
Why did the U.S. unpeg the dollar from
The gold standard in 1971?
As offshore currency reserves grew,
the U.S. faced the risk that, in an economic downturn, investors would all try to cash in dollars for gold, destabilizing the U.S. economy. The offshore capital market topped $300 billion in 1973
The Debt Crisis
1. Nixon abandons gold-$ system, Mint prints more $s, Value of $ falls.
2. OPEC sets oil prices, and they rise. Petrodollars put in Eurodollars in EU Banks. Lots of $s in banking System.
3. Developing countries encouraged to borrow b/c:
-lots of $s incirculation to lend
-devaluation of other currencies with high global inflation. Need $ to buy foreign goods.
-Increased oil prices, need $s
-Ideological pressure from U.S.
4. Volcker Shock ends inflation and devaluation policies, stabilizes dollar, increases interest rates.

*DEBT CRISIS*
The Washington Consensus
a set of neoliberal* economic policies promoted by the U.S.
and the G-7 countries and the Bretton Woods institutions
(World Bank and IMF).

"stabilize, privatize, liberalize"

greatly harmed third world countries while benefiting U.S.

ultimately didn't work:
-no mechanism for avoiding crises
-incomplete reforms
-too ambitious

Opens labor market of underdeveloped economies to exploitation. Reduced tariffs allow free movement of goods acc. to market forces, but *LABOR* cannot do so due to visa, etc. This creates int'l market where goods are made by cheap labor in 3rd World, exported to 1st World for sale at markups, profit goes to TNCs
Structural Adjustment Policies
the IMF's and World Bank's policies that reallocated the state’s economic resources by:
-shrinking government expenditure
-reducing wages
-removing barriers to investment and trade
-devaluing the national currency

in developing countries.

Created conditions for getting loans from the IMF or World Bank.

Supposed to allow the economies of developing countries to become more market-oriented.
SAPs generally implement "free market" programs (privatization and deregulation, reduction of trade barriers)
*neoliberal
a philosophy positing market principles as the organizing
principle of society, where private interest trumps the public good
"Race to the Bottom"
-competition structured around cost-cutting rather than technology or labor process improvements
"Regime shopping"
Part of Export Processing Zones; when a company selects a location to invest in, it checks out wages, technology, taxes, etc. to decide where to produce
Volcker Shock
-Occurred during the Debt Crisis, 1980

-Increased inflation and spending led Volcker to raise interest rates on all U.S. loans world wide. His aim was to decrease dollars in circulation.

Third World countries who already had little say in economic affairs (because of First World countries' exploitation) were further hurt.

Because of the IMF conditionality, third world countries can only repay their loans if they enact free market policies. Basically, countries forced to enact these policies.
This sent the country into a recession.
Neoliberalism
The revival of classical liberal economics ideas about the free market that were popular in the 18th and 19th centuries—
bringing back these ideas about the free market, regulated by an invisible hand, working to everyone’s benefit.

Major tenets:
1) cutting public expenditures, particularly on social services
2) deregulation
3) Privatization
4) replacing the concept of “public good” with “individual responsibility”
WTO: World Trade Org
est. 1995 (to replace GATT)

-regulates trade b/t members
-provides framework for negotiating trade agreements
-dispute resolution process
-153 members, covers 97% of world trade

PROTOCOLS:
1. Agreement on Agriculture: oversees reductions in ag trade protections and subsidies

2. Trade Related Investment Measures (TRIMS)-protects transnational investors. Lets them sue thru tribunals rather than domestic courts.

3. Trade-Related Intellectual Property Rights (TRIPS): administers global intellectual property claims

4. General Agreement on Trade in Services (GATS): gov'ts must open to investment by foreign service providers
Agreement on Agriculture
WTO Protocol

Oversees reductions in agricultural trade protections and subsidies
Trade-Related Investment Measures (TRIMS)
WTO Protocol

-Protects transnational investors, gives tncs right to sue through private trade tribunals rather than domestic courts
Trade-Related Intellectual Property Rights (TRIPS)
-WTO administers global intellectual property claims
General Agreement on Trade in Services (GATS)
WTO Protocol

Requires governments
to open to investment by foreign service providers, opening public works
such as water provision, roads, postal delivery, prisons, health services,
education, transportation, libraries, electricity, phone services to private foreign investment.
McMichael's Four Processes
Outsourcing-changes in labor location
Dislocation-forced/voluntary labor migration
Informalization-changes in job availability
Recolonization-new losses of land

McMichael says: they all take new forms under globalization, but all 4 are interconnected
Michael Goldman-Imperial Nature & The World Bank

*main ideas*
-Focus on studying *institutions*

The World Bank=elite networks that have a ton of world power
-produces IDEAS
-groups that once protested World Bank now partner with it to carry out projects.

How does bank draw groups in?
-Rhetoric
-Project will go forward regardless, if not by us, there won't be an environmentally-conscious component

*example of Hegemony*
Green Neoliberalism (philosophy of the World Bank)
1. Sustainable development cannot occur without *valuation* of the environment.
---Underdeveloped areas are damaging the environment because they don't know what anything is worth. Their resources aren't on the market so they use them as though they are free.

2. This valuation requires placing formerly "unvalued" resources on the market

Implication: States should auction publicly owned natural resources to TNCs, expand land markets, commodify H2o.

The World Bank's main argument: "Promoting development is the best way to protect the environment"
Hybrid State Actors
Organizations and individuals within state government that encompass agendas and agents from the national state, U.S. agencies (such as USAID), multi-lateral agencies (such as the World Bank), NGOs and private corporations.

i.e. In Laos Dam example: Laos had to bring in U.S. consultants, etc. and by the end of the process, so many individuals/corps were involved that Laos' sovereignty was almost obsolete.
World Bank History
1944: "reluctant banker" period
--bank needed to offer $ to third world to help rebuild Europe's colonies/empire.
--Big 5 countries lent most $ for elecric power, roads and transports, BUT only to political allies.
--No lending to social service programs

1968: bank rises to power, "basic needs"
--McNamara (Sec. of Defense during Vietnam) became pres. of World Bank
--$ detached from gold standard.

1980: debt adjustment period
--Reagan Presidency
1989: "green environmentalism"
1968: "Basic Needs" Era of World Bank
--McNamara (Sec. of Defense during Vietnam) became pres. of World Bank
--increased bank lending, shifted strategy from huge infrastructure to *basic needs*
--Cold War: didn't want poor to become Communists
--$ detached from gold standard

Debt increased and Poverty did not decrease BECAUSE:
-he was trying to get farmers to adopt green revolutionary tech
-lots of programs focused on food imports
-$ went to build ministries, infrastructural projects (not schools, public health clinics, etc.)
-all $ in Eurocurrency markets, the Bank funneled $ to nations and built up debt.

*led to Debt Crisis of 1980*
1980: Debt and Adjustment Period of World Bank
-Reagan president, fired McNamara

1. No more social programs
2. Bank actually was agent of restructuring: leveraged role as lender to get nations to take down trade barriers
3. Food riots: inequality and environmental impact of Bank's actions
4. *Double Movement*--ground set for pressure on communities and peoples' livelihoods: they began to push back but did not get a redistribution of resources. Instead, *GREEN NEOLIBERALISM* (promoting development=best for enviro)
Green Neoliberalism (philosophy of the World Bank)
1. Sustainable development cannot occur without *valuation* of the environment.
---Underdeveloped areas are damaging the environment because they don't know what anything is worth. Their resources aren't on the market so they use them as though they are free.

2. This valuation requires placing formerly "unvalued" resources on the market

Implication: States should auction publicly owned natural resources to TNCs, expand land markets, commodify H2o.

The World Bank's main argument: "Promoting development is the best way to protect the environment"
Hybrid State Actors
Organizations and individuals within state government that encompass agendas and agents from the national state, U.S. agencies (such as USAID), multi-lateral agencies (such as the World Bank), NGOs and private corporations.

i.e. In Laos Dam example: Laos had to bring in U.S. consultants, etc. and by the end of the process, so many individuals/corps were involved that Laos' sovereignty was almost obsolete.
World Bank History
1944: "reluctant banker" period
--bank needed to offer $ to third world to help rebuild Europe's colonies/empire.
--Big 5 countries lent most $ for elecric power, roads and transports, BUT only to political allies.
--No lending to social service programs

1968: bank rises to power, "basic needs"
--McNamara (Sec. of Defense during Vietnam) became pres. of World Bank
--$ detached from gold standard.

1980: debt adjustment period
--Reagan Presidency
1989: "green environmentalism"
1968: "Basic Needs" Era of World Bank
--McNamara (Sec. of Defense during Vietnam) became pres. of World Bank
--increased bank lending, shifted strategy from huge infrastructure to *basic needs*
--Cold War: didn't want poor to become Communists
--$ detached from gold standard
**more $s in circulation, value of $ falls. Cost of US exports falls, cost of foreign imports TO US rises. Global economy now *STRUCTURED AROUND THE $*

Debt increased and Poverty did not decrease BECAUSE:
-he was trying to get farmers to adopt green revolutionary tech
-lots of programs focused on food imports
-$ went to build ministries, infrastructural projects (not schools, public health clinics, etc.)
-all $ in Eurocurrency markets, the Bank funneled $ to nations and built up debt.

*led to Debt Crisis of 1980*
1980: Debt and Adjustment Period of World Bank
-Reagan president, fired McNamara.

-Basically, people began to pressure the gov't to stop hurting the environment, stop the Bank's wrongful actions.

1. No more social programs
2. Bank actually was agent of restructuring: leveraged role as lender to get nations to take down trade barriers
3. Food riots: inequality and environmental impact of Bank's actions
4. *Double Movement*--ground set for pressure on communities and peoples' livelihoods: they began to push back but did not get a redistribution of resources. Instead, *GREEN NEOLIBERALISM* (promoting development=best for enviro)
Michael Goldman: "The Bank can get the science it needs."

How?
-Main obstacle in doing a thorough environmental assessment is that there is *No Incentive*

-Bank evaluated on how many loans it gives. If it slows down lending by finding REAL problems w/ corporations, it won't receive high rating.

-Bank *asks* for samples of "win-win" strategies from scientists. Frames questions to get what it wants/needs.

-Researchers use Bank's data, it is part of knowledge production. No one else has the means to do their own research on environ. quality of corps so it's forced to use the banks false evidence----PROFOUND IMPACT!!

*allows bank to protect itself from law suits
*assessments provide model for how enviro costs/risks are measured--becomes state of the art, and it's corrupt!
*links enviro, econ, and legal: provides model hard to decipher tradeoffs b/t these 3 things.
-weighs national benefits against *local* costs
Laos and Nam Theun 2 Project
Project to build a dam to create power, use the $ to help the environment.

Laos government is incredibly poor, conditions for project were negotiated by Asian Development Bank (Laos=basically no say)

-went far beyond hydroelectric power, actually divided Laos into development zones, the entire country became a development project

-flooded reservoir: one of most biologically diverse regions in the world
Alter-Globalization
a social movement that supports global cooperation and interaction, but which opposes the negative effects of economic globalization, feeling that it often works to the detriment of environmental and climate protection, economic justice, labor protection, protection of indigenous cultures and human rights.

-designed to protest neoliberalism and the World Bank because these institutions aim to "enrich the developed world" without focusing on detrimental effects of their actions on people and environments of underdeveloped countries.

Examples:
-fair trade initiatives
-public accountability
-alternative water governence
Food Sovereignty
a term coined by members of Via Campesina in 1996 [1] to refer to a policy framework advocated by a number of farmers, peasants, pastoralists, fisherfolk, indigenous peoples, women, rural youth and environmental organizations, namely the claimed "right" of peoples to define their own food, agriculture, livestock and fisheries systems, in contrast to having food largely subject to international market forces.

Seven Principles:
1. Food is a basic human right: each nation should declare it as constitutional right
2. Agragarian Reform: Must give landless and farming people control of land. Must be free of discrimination on basis of gender, race, etc.
3. Protecting Natural Resources-sustainable care and use of land and water.
4. Recognizing Food Trade: food is first an item of nutrition, SECOND an item of trade. National policies must prioritize production for domestic consumption, not $. Food imports should not displace local production.
5. End Globalization of Hunger: WTO, IMF, and World Bank have allowed for growing control of other Multinational Corporations. Need to regulate and tax these TNCs.
6. Social Peace: food mustn't be used as weapon. Increased poverty aggravates injustice.
7. Democratic Control: smallholder forms must have a say in agricultural policies.