​ TWO TYPES OF ECONOMIES:

EXTRA INFO PRE-MODULE ➔​ Protectionism - policy of

State/Nation-State systematic government
HAS 4 ELEMENTS: intervention in foreign trade
1.​ Government ◆​ Aims to encourage global
production
2.​ Population
◆​ Invoices giving
3.​ Territory - land, water, air
preferential treatment to
4.​ Sovereignty - freedom from internal domestic producers and
and external threats—interference discriminating against
★​ A government can exist without foreign competitors
a state, but a state can not exist ◆​ Comes in the form of
quotas and tariffs
without a government
●​ Tariffs - required
★​ Non-state actors: NGO, Media,
fees on imports
IGA, MNC, WB, IMF and exports
★​ Singapore is one of the greenest cities ➔​ Trade liberalization -
in the world removal/reduction of
○​ After 6 decades of greening restrictions/barriers on the free
efforts, they have a thriving exchange of goods between
nations
network of green spaces where
◆​ Also called free trade
nature is restored into their
◆​ Goods and services move
urban environment and brought around the world more
closer to their everyday lives easily
◆​ These barriers include
ECONOMIC GLOBALIZATION AND
tariffs, such as duties and
GLOBAL TRADE
surcharges, and non
Economic Globalization - widespread tariffs, such as licensing
international movement of goods, capital, rules and quotas
services, technology, and information
❖​ The increasing economic integration FAIR TRADE
and interdependence of economies ★​ Concern for the social, economic, and
across the world through an environmental well-being of
intensification of the cross-border marginalized producers
movement of goods, services, ★​ Fair trade aims for a more moral and
technologies, and capital equitable global economic system
❖​ Primarily comprises the globalization that is concerned with:
of production, finance, markets, ○​ Protection of workers and
technology, organizational regimes, producers
institutions, corporations, and labor ○​ Establishment of just prices
 ○​ Engagement in environmentally
EFFICIENCY
sound practices and
sustainable production Efficiency - the quickest possible way of
○​ Creation of relationships producing large amounts of a particular
between producers in the south product
and consumers in the North ❖​ Made buying goods easier
○​ Promotion of safe working ❖​ Increased demand
environment ★​ Increase in demand yields higher
​ EXAMPLE: efficiency, which can harm the planet
❖​ When American coffee chains ○​ The Earth’s atmosphere is
source their coffee from the damaged by more carbon
South emissions from factories around
the world
ECONOMIC GLOBALIZATION AND ○​ Coral reefs and marine
SUSTAINABLE DEVELOPMENT biodiversity are destroyed the
more wastes are thrown into the
★​ Globalization creates new
ocean
opportunities for cooperation, but it
★​ Neoliberals and environmentalists
also creates tensions and problems
debate the impact of free trade on the
○​ Free trade can generate environment
economic growth, but on the ○​ Environmentalists argue that
other hand, increases pollution environmental issues should be
and unsustainable consumption given priority over economic
issues
of natural resources
○​ Neoliberals see
★​ The strongest argument against
environmentalist efforts as
economic globalization is serious impediments to trade
sustainability—the degree to which ★​ Some seek to integrate in other
the Earth’s resources can be used for approaches like ecological
our needs, even in the future modernization theory—globalization is
Sustainable Development - development of a process that can both protect and
enhance the environment
our world today using the Earth’s resources
Kyoto Protocol - aimed at a reduction of
and the preservation of such resources for
global carbon emissions, but failed to take off
the future largely because it was not ratified by the
❖​ Environmental degradation became United States
blatant during the Industrial ★​ There are measures like “carbon tax”
Revolution when the concept of and “carbon neutrality” to deal with
environmental problems
efficiency was introduced
Carbon Tax - a fee on the carbon content of
fossil fuels intended to make visible the
hidden social costs of carbon emissions
Carbon Neutrality - net-zero emissions; government, civil society, and the
balancing greenhouse gas emissions with private sectors
removals, aiming to have no net impact on
the climate system ECONOMIC GLOBALIZATION, POVERTY,
AND INEQUALITY
GLOBAL FOOD SECURITY
★​ Some claim that globalization
Global Food Security - delivering sufficient increases the poverty rate and some
food to the entire world population
claim it reduces poverty
★​ Should be a global priority
★​ Most big companies search for
★​ Means the sustainability of society
(population growth, climate change, cheapest sources of raw materials and
water scarcity, agriculture) labor because of economic and trade
★​ Challenges can be traced to the globalization
protection of the environment—the ○​ Results in labor-intensive
destruction of natural habitats, such as products to be produced in
deforestation
countries with the lowest wages
★​ Other challenges are industrial fishing,
and the weakest regulations
declining usable farmland, and the
availability of freshwater
★​ Other challenges are the destruction of Multiplier Effect - an increase in one
the water ecosystem, pollution through economic activity can lead to an increase in
toxic chemicals, and greenhouse other economic activities
gases, melting of glacial ice, flooding,
❖​ Investing in local businesses will lead
reduction of alkalinity of the oceans,
to more jobs and more income
and other destructions of existing
ecosystems ★​ Economic globalization has helped
★​ Global warming poses a threat to the millions of people get out of extreme
global supply of food as well as to poverty but the challenge of the future
human health is to lift up the poor while at the same
★​ Population growth contributes to time keep the planet livable
increase consumption that intensify
★​ Those who oppose economic
ecological problem
globalization call the outsourcing of
ROLE OF THE UNITED NATIONS jobs exploitation and oppression, that

★​ Promotes sustainable agriculture as it is a form of economic colonialism

the 2nd of its 17 SDGs for 2030 that puts profit before people
★​ The World Economic Forum (2010)
addressed the issue through New ECONOMIC INEQUALITY
Vision for Agriculture (NVA) where TWO TYPES:
public-private partnerships were 1.​ Wealth Inequality
established ●​ Wealth is the net worth of a
★​ Encourages the exchange of country—all its assets, may it be
knowledge among farmers, natural, physical, and human
 ●​ Speaks about the distribution of ○​ First World = rich, industrialized
assets countries
●​ To measure global economic ○​ North-South - a classification
inequality, economists look at that arose when the “Second
income using Gross Domestic World” joined either the First or
Product (GDP) Third
2.​ Income Inequality ■​ Global North = US,
Canada, Western Europe,
★​ This “explosion” of industry and developed parts of Asia
modern technology causes economic ■​ Global South -
differences among nations, which Caribbean, Latin America,
results in economic gap South America, Africa,
★​ Economic globalization and parts of Asia
international trade are responsible for ■​ These distinctions point
global inequality largely to racial
○​ Access to technology for inequality, specifically
income inequality between the Black and
Skill-based Technological Change - how the White
jobs are more technology-based in ■​ At the global level, whites
modernized economies, requiring new skills are disproportionately in
the dominant North, while
DIVISION OF THE WORLD blacks are primarily in the
★​ “First, Second and Third World” date south; although this is
back to the Cold War changing with
○​ When Western policymakers South-to-North migration
began talking about the world
as three distinct political and
THE GLOBAL CITY
economical blocs ★​ Also called power city, world city, alpha
○​ First World = Western capitalist city, or world center
countries ★​ A city which is a primary node in the
○​ Second World = Soviet Union
global economic network
and its allies
★​ Rural-urban = North-South
○​ Third World = everyone else
★​ After the Cold War, the category of ○​ Relations of agricultural
Second World countries became null production have been altered
and void; “First World” and “Third due to the rise of global
World” stuck around agribusiness and factory farms
○​ Are outdated and inaccurate
○​ The South produces
because of different levels of
non-traditional products for
economic stability
○​ Third World = impoverished export and becomes
states increasingly dependent on
 industrialized food exports from education, and diseases
the North between Americas and Europe
○​ Leads to a replacement of the after Columbus so-called
“discovery of Americas”
staple diet as well as the
○​ In the Industrial Revolution, when
displacement of local farmers
new technologies allowed
countries to replace human
★​ Global cities: New York, London, labor with machines and
Tokyo—economic centers that excerpt increase productivity
control over the world’s political ★​ Rests on the ideas that affluence could
be attained by anyone
economy
★​ Argues that if you invest capital in
★​ World Cities are categorized as such
better technologies, they will
based on the global reach of
eventually raise production enough
organizations found in them that there will be more wealth to go
○​ Important nodes in a variety of around and overall well-being will go
global networks up
○​ There are inequalities between ○​ Essentially, a win-win,
return-on-investment
cities and within each city
★​ Rich countries can help other countries
★​ Although cities are major beneficiaries
that are still growing by exporting their
of globalization, they are also most technologies
severely affected by global problems WALT ROSTOW’S 4 STAGES OF MODERNIZATION:
○​ They face peculiar political — describes the modernization process in the
problems, wherein they West
fruitlessly seek to deal locally 1.​ Traditional Stage
2.​ Take-off Stage
with global problems
3.​ Technological Maturity
○​ “Local politics has become
4.​ High Mass Consumption
hopelessly overloaded”
DEPENDENCY THEORY
THEORIES OF GLOBAL STRATIFICATION
★​ A condition in which the development
★​ Explains reasons why some parts of the of the nation-states of the South
world develop faster economically contributed to a decline in their
compared to others independence and to an increase in
the economic development of the
MODERNIZATION THEORY countries in the North
★​ A product of colonial experiences
★​ Frames global stratification as a
★​ Argues that liberal trade causes
function of technological and cultural
greater impoverishment in less
differences between nations
developed countries
○​ i.e. the history of Western Europe,
★​ Focuses on how poor countries have
the Columbian Exchange— the
been wronged by richer nations
spread of goods, technology,
 because global stratification starts and labor support the wealthier
with colonialism countries
★​ Assumes that even after ○​ They remain economically
de-colonization, there are still dependent on the core—also
important ties between the developed called neocolonialism
and less developed countries, which ★​ Model created by Americal sociologist
mainly consist of the exploitation of Immanuel Wallerstein
peripheral natural resources and ★​ Critics of the theory argue that the
workforce by the center world economy is not a zero-sum
★​ Dependency theorists saw the game—one country getting richer does
development of peripheral nations as not mean other countries are getting
stagnant because of the exploitative poorer
nature of the core nations ○​ Innovation and technological
○​ Less developed periphery growth can spill over to other
countries are said to primarily countries, improving all nations’
serve the interests of the well-being and not just the rich
wealthier countries
★​ Cardoso & Felato (1979) believed that NEOCOLONIALISM AND HEGEMONY
Latin American economies were the Neocolonialism - the control of
results of capitalist expansion in the less-developed countries by developed
United States and Europe
countries through indirect means
Dependence - conditions under which alone
❖​ First used after WWII; refers to the
the economic and political system can exist
and function in its connections with the continuing dependence of former
world's productive structure colonies on foreign countries
❖​ It was used to underscore the extent to ➢​ Its meaning soon broadened to
which the economic and political apply to places where the power
development of poor countries was of developed countries was
conditioned by the global economy,
used to produce colonial-like
whose center of gravity was located in
exploitation—for instance, in
the developed countries
Latin America, where direct
MODERN WORLD SYSTEM foreign rule had ended in the
★​ High-income nations are the core of early 19th century
the world economy ❖​ Unambiguously negative term used to
○​ It is the manufacturing base of refer to a form of global power in which
the planet where resources
transnational corporations and global
funnel in to become the
and multinational corporations
technology and wealth enjoyed
by the Western world combine to perpetuate colonial forms
★​ Low-income countries are called the of exploitation of developing countries
periphery, whose natural resources ❖​ The further development of capitalism
that enables capitalist powers to
 dominate subject nations through the Neocolonialism
operations of international capitalism ●​ A specific type of hegemony where
rather than by means of direct rule former colonial powers continue to
exert indirect control over formerly
Hegemony - dominance of one group over
colonized nations, often through
another
economic, political, and cultural
❖​ Often supported by legitimating norms means
and ideas ●​ Maintains the dominance of the former
❖​ Used as shorthand to describe the colonial power through economic
relatively dominant position of a dependence, debt, and cultural
influence, rather than direct military
particular set of ideas and their
occupation or political control
associated tendency to become
commonsensical and intuitive, thereby
inhibiting the dissemination or even
the articulation of alternative ideas

CLARIFICATION
★​ While both hegemony (dominance
through influence and consent) and
neocolonialism (indirect control of a
former colony) involve power
dynamics, hegemony is a broader
concept encompassing various forms
of dominance, whereas
neocolonialism specifically refers to
the continued influence of former
colonial powers on newly independent
nations

Hegemony
●​ The dominance of one state or group
over others, often through cultural,
economic, or ideological means rather
than direct military force
●​ Involves influencing the beliefs, values,
and behaviors of other states or
groups, leading them to accept the
dominant power's worldview and
interests

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