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- 4 Distinct Subsystems
o Economic (Adaptive)
o Political (Mobilization for collective purposes)
o Social (Integrative function)
o Cultural
- MNCs are the main drivers
o To operate without the confines of national borders
- “Global Village” – Marshall McLuhan
- Borderless world
- CULTURAL Globalization
1. Compression of the world
2. Global consciousness
- Culture is De-territorialized (HOMOGENIZED) & Re-territorialized (HYBRIDIZED)
o No longer confined but also new cultures arise
- 21st century = Global Brand (Mcdo, Coca cola etc)
- The Global Person
o Reich’s Symbolic Analyst
 An individual whose skills are TRANSFERABLE & MOBILE
o Ohmae’s Transnational Organization man
 PREMIUM skills & BOUND up with the corporation
o Seeks to dissolve national identity & divisions
o Promotes a culture of encounter & divsersity
o Accompanied by a reaction from traditionalists
o Core
 dominant capitalist countries that exploit periphery for labor and primary
 capital intensive productin
o Semi Periphery
 core regions in decline or peripheries attempting to improve their relative
position in the world economic system.
 exploiters once but now semi exploited
o Periphery
 dependent on core
o World-empires
o World-economies
1. Global Market place/discipline
2. Flexible accumulation through global webs
3. Financial Deepening
1. Varied institutional modification
2. Conflicting goals and motivations
3. Ambiguous results
4. Differential state
5. A more social agenda


- Monetary Approach
o The solution is money generation
- Capability Approach
o Neither approach captures fundamental causes, only describes the sitch at a
point in time
o The social provision of goods, improved allocation of goods within the family and
the more efficient use of goods to achieve health, nutrition and education, as
well as money income as a means for promoting some capabilities.
- Wages as Income
o To the worker: Standard of living his wage can afford
- Wages as Cost of Production
o To the employer: wages = cost of production
- Relational approach to poverty = offer a more explanatory understanding through
history/social factors/other perspectives
o All economic relations are social relations
- Social Exclusion
o Marginalisation and deprivation that can arise even within rich countries with
comprehensive welfare provisions

Political Economy of Poverty

1. The dispossession that occurs with primitive accumulation, is the precondition for
productive investment.

2. The reproduction of pauperising petty commodity production.

3. The creation of pools of unemployment.

4. The commodification and commercialising of services to met physical and emotional needs.

5. The production of pauperising and socially harmful commodities and waste (weapons,
alcohol and tabacco).
6. The New Poor created by effects of economic crisis and devastation caused to fragile debt-
burdened economiesby volatile short term capital flows.

7. Global Environmental destruction, and poverty producing disasters, coupled with the drive
for more energy and waste in return for more productivity.

8. The determination of which types of bodies may enter the workforce. (exclusion of
migrants, disabled, “unproductive” “undeserving” poor.)

Foreign Aid

- Can only be a success if linked to sound policies in devt state

- There is no robust evidence that aid affects growth. Of course, this does not imply that
aid is necessarily ineffective. Much of the aid is not given to affect growth in the first
place. A large share is given as humanitarian aid following disasters. Parts of aid are
given to fight terror, please political allies, or influence decisions in important
international organisations. As we have discussed above, the motive can affect the
outcome. Such aid thus cannot be expected to increase growth but should instead be
evaluated with its own goals in mind.


East Asian
- Socialist policies
- A state that derives political legitimacy from economic develpoment
- Singapore
- Korea- Economic Planning Board (EPB)
- Japan – Ministry of International Trade and Industry
- Taiwan- Industrial Development Bureau

Western Devt State

- Corporatists compromise with capitalists and post-war left parties
- France
- Scandinavia – SOE & PPPs
- Highly selective industrial policies
- Welfare System

American Developmentalism
- Use of technology research into commercial use
- Military

21ST Century
- Might no longer work
- Not as reliant on steel and coal
- Human capital new source of growth

- A developmental state plays an active role in guiding economic development and using
the resources of the country to meet the needs of the people. A developmental state
tries to balance economic growth and social development. It uses state resources and
state influence to attack poverty and expand economic opportunities .

- Strategic capacity means the ability of the state to take the lead in defining a common
national agenda, to mobilise all of society to take part in the implementation of this
agenda and to direct society's resources towards this shared programme.The
developmental state must be able to unite the public sector, business, labour and civil
society in a partnership geared to implement this shared programme.The
developmental state must also play a much stronger role in establishing clear,
measurable and time-bound targets for common programmes, and for monitoring their

- Organisational and technical capacity - most effective and efficient structures and
systems to realise its goals. It has to improve systems and structures within each sphere
of government, and national government has to provide the necessary cohesion to
deliver the results needed.


1. Constructing Insecurity
- All insecurities are culturally` produced