UNIT 6 LESSON 7

THE STUDENT WILL BE ABLE TO DISCUSS…

Structural Loans & Dolloarization

GEOGRAPHICAL SITUATION & DEVELOPMENT

Context: things happen in a place as result of forces operating concurrently at multiple scalesNot just one thing, but rather world, state, and local all have influencers.

Globalization plays an important role What happens in one place can influence what is happening locally in another.

Example: Global markets flooded with oil, Houston faces an economic downturn (Global to Local)

DEPENDENCY

Colonialism and Imperialism dictated the economies of some countries Raw materials sent else where to be processed

Decolonization: Colonial power leaves and turns over government.

Post-Colonialism: Developments in a country after colony leavesSometimes ask; “Who are we culturally?”

Countries are given freedom, but then turn to what they know how to do, extracting raw materials to be sent elsewhereNeo-Colonialism: Economies of poor countries are still controlled by richer countries (actually, mostly trans-national corporations)

NEO-COLONIALISM & DEPENDENCY THEORY

Control is exercised through: Foreign Direct Investment: Investment by a firm in one nation-state in a firm in another nation-state with the intention of controlling it (Ritzer, 2011, p. 33).

Foreign Aid: Includes financial assistance and food subsides. Good for short-term, bad for long-term because it led to food dependency.

Dependency Theory: Various definitions, text has one, a different one is: Development of the nation-states of the South contributed to a decline in their independence; to an increase in their dependence on the North. The more a country tries to develop; the more dependent it gets

STRUCTURAL ADJUSTMENT LOANS

Structural Adjustment Loans: Conditions of economic “restructuring” imposed by organizations such as the World Bank and the IMF on borrow nation-states Countries had to engage in neo-liberalism: “liberal commitment to individual liberty, a belief in the free market and opposition to state intervention in it” (Ritzer, 2011, p. 37)

Privatization of industry meaning it is all held by private companies

Deregulation of the economy sometimes government puts some checks on the economy (Removing tariffs that protect producers)

Limit or eliminate social welfare programs

STRUCTURAL ADJUSTMENT LOANS CONTINUED…

Loans given at high interest ratesLoans were for “development”Interest payments on loans took a large chunk out of economic prosperity of countries (Remember Latin America on the clicker check?)

Neoliberal Criticisms: U.S. 2007; Government bailed out large banks and car producers in the U.S.

BRANDT LINE (IN GETIS, DIFFERENT CHAPTER)

-Uses GNI and GNP per person-Northern countries traditionally wealthier than southern-A lot of criticism; it’s arguably out of date with the emerging countries in Asia-Also doesn’t take into account disparities within same country.

WORLD SYSTEM THEORY

Wallerstein 1974: We’ve talked about this already. World System Theory: Sees the world divided mainly between the core and the periphery with the latter dependent on, and exploited by, the core nation-states.

Structural in that it cannot be changedArgues that countries that have been “developing” are simply led further behind

Discusses that development is actually offensive; it assumes that Europe’s model is right

Argues that someone has to be left behind for others to succeed

WHAT WE DON’T TALK ABOUT IN AP HUMAN

Hooray globalization! Comes up again and again, but…criticisms exist beyond eroding local cultures

Many theories surrounding globalization, such as World Systems Theory and Structuralism Theories actually talk about how globalization is an extension of Neo-Colonialism Ways for the dominate to continue exercising control