Globalization and the Region Regions have become increasingly importanteven if globalization is the dominant narrative. Why?

Regional cooperation (above or below the state level) seems to potentially offer members advantages with which government institutions can cope with global pressures. Rationale for regional cooperation: Natural (geography, shared resources) Socio-cultural (language, religion, ethnicity) Political-economic (based on trade, free flow of citizens, military cooperation, etc) Regionalization vs Regionalism 1 Regionalization: conscious policy of states/ sub-state regions to coordinate activities and institutions in a greater region. Outcomes of the processes should, in principle, benefit all members involved. Regionalism: sense of regional awareness and identity, which are crucial features of regional processes. Identity issues are very important; simple geography and language are not enough to explain the formation of regions. All regions are socially constructed and hence politically contested (Hurrell 1995:334). Regional cohesion: essential ingredient in the success of regional projects. Why? Because it is not only the effort of political elites; it must be backed up by other social groups (including private sector) in order to work. he Context If we are to understand Latin America, it must be placed within the context of global economic expansion, beginning with the Conquest of the 16th century. Within this sytem, Latin America has occupied an essentially subordinate or dependent position, pursuing economic paths that have been largely shaped by the industrial powers of Europe and the United States. Colonial Economic Policy Mercantilism ...wealth is an absolutely essential means to power, whether for security or for aggression; power is essential or valuable as a means to the acquisition or rentention of wealth; wealth and power are each proper ultimate ends of national policy; there is long-run harmony between these ends, although in particular circumstances it may be necessary for a time to make economic sacrifices in the interest of military security and therefore also of long-run prosperity

l l l n n n

But, growing anti-U.S. Sentiment Financial crises of late 1990s generated frustration towards current elected leaders Discontent with neoliberal model (and neoimperialist implications) Globalization, Colonization and Colonialism Globalization as historical process is intertwined with the history of European Colonization. Colonization (as a process, based on historical facts and events) Migratory movements; settlements of populations in places far from where they had originated is a common feature of human history. Colonization is a term used to describe the acquisition, maintenance and expansion of territory by Europeans throughout the globe between the 15th and 20th centuries. Exclusively European phenomenon? Globalization, Colonization and Colonialism (cont) Colonialism (as admistrative system and ideology) Unification of acquired territories under the central authority of a sovereign power, export of European administrative divisions and hierarchies. Sharp power asymmetry between the colonizer and the other, based on mechanisms of exclusion, oppression and enslavement The development of colonialism is closely linked to the development of the European state system. n Plays a crucial role in European inter-state competition and conflict between 15th and 19th centuries n Essential element in the development of the European Enlightenment movement and post-enlightenment ideologies Eploitation colonies: India, Indonesia Settlement colonies: USA south Africa Decolonization and State Formation 1800s : Latin and South America Thirties/Forties: Middle East Fifties: mainly Asian States Sixties/Seventies: mainly African States Nation building in Africa Post-colonial countries: how to establish a sense of loyalty to the new state. Ethnic pluralism common source of conflict. In Africa, state boundaries do not unite people of common descent, language, religion, customs. Post Colonial leaders retained the view that colonial boundaries should remain. Why? State authority combines: Traditional elements (chieftainship: president rules and reigns) Colonial elements (bureaucratic apparatus, centralized army) Tendency to adopt presidential political systems, rather than parliamentary ones. In Africa the prevalent view is that nation-building is a determinant factor in the overall development process.

n n

l l l l l l l l l l

Malevolent Mercantilism = Imperialism The colony must import goods from the mother country only The colony must send their goods to the mother country only (unless part of trade agreements established with the mother country) Colonial trade remains strict monopoly of mother country ships and sailors Colonies must only provide raw materials, not manufactured goods Latin American Independence Launched by Creole, Simon Bolivar Influenced by Montesquieu Lead to independence of Venezuela, Colombia, Ecuador, Peru, Bolivia All of Latin American should unite under one government Spanish language, Catholic religion across continent After Independence: Economic Problems Lack of Industrialization Local industrialization discouraged by colonial powers Export of raw materials to Europe and North America did not encourage growth Late industrialization: 1930s-1960s Interpretation: Dependency Theotonio Dos Santos: by dependence we mean a situation in which the economy of certain countries is conditioned by the development and expansion of another economy to which the former is subjected. The relation of interdependence between tow or more economies, and between these and world trade, assumes the form of dependence when some countries (the dominant ones) can expand and can be self-sustaining, while other countries (the dependent ones) can do this only as a reflection of that expansion, which can have either a positive or a negative effect on their immediate development. Main mechanisms: Nature of international division of labour most important obstacle to development The extraction of surplus from periphery to core causes active underdevelopment Latin American Development Strategies Import Substitution: promoted domestic industry, 1950s, 1970s Export Industrialization: non-durable manufacturing since late 1960s, in urban centers and strategic locations Maquiladoras: Mexican assembly plants on U.S. border Foreign Direct Investment: increasing all over Latin America, both welcomed and resisted Informal Sector: no government regulation, self-employment Migration and remittances After Independence: Politics Elites born in Latin America led revolutions which led to the creation of new countries Control of the governments remained in their hands Democratic institutions not firmly established democratic government usually meant oligarchic democracy Authoritarian/military/right-wing dictatorships valued stability and social control Concessions often given to foreign investors and foreign property protected Cuba the earliest exception in confronting external control Democratic wave since 1980s with different levels of institutionalization Latin Americas Left Turn But Why? No clear shift in ideological identities to the left in public opinion polls

n n

l l l l l l l l l l l

General Legacies of Colonialism Political; Artificial borders, political system and administration, ethnic and/ religious conflicts. n Economic; little or no self-reliance. -No diversification in production: only one or two commodities available (cotton, cacao, tea etc.) -Infrastructure exclusively oriented towards interests of former colonizing power. -Many times no (or limited) investment in education of native inhabitants. n Cultural; demographic legacies, language, religion, ethnicity Explosion of population growth in late colonial period due to medical technology, hygiene and wider food security. Composition of population in some areas highly influenced by colonialism (Brazil, South Africa). n Regional inequalities. n Religion: political tool to mobilise and control masses. n Ethnicity: form of political and social identity. When it does not coincide with state boundaries, it can be a source of division. n n n n n n State Formation and Democracy: The Post Colonial Critique Categorization of African politics in terms of formal vs. informal institutions. West as teacher and beacon for development: neo-liberal discourses and neocolonial practices The African Myth Corruption, Clientelism and the Big Man presidentialism. Native essentialism used to underscore European values, morality and ethics. The nation-state in Africa: container for separate groups to engage in exercises of self-invention and self-determination. Democracy as a set of formal rules and procedures has been implemented with mixed results. May sharpen internal conflicts, or might be replaced or adjusted in the name of economic progress and public order The impact of colonialism in African economic development Different schools: Dependency School: Capitalistic system in its present form will not allow development. Core Periphery theory. Underdevelopment is not a failure: it is an active process of impoverishment. Economic subservience can lead to political subservience. Modernization: Associated with the liberal economic tradition. Achieving prosperity for both North and South. Every country has an equal chance to develop. Trickle down theory (outsourcing)

n n

n n n n n n n n n n n n

n n n n n n n n l l

Linear and rational path to development based on Western positivism and science. Capitalism and the free-market are the creative forces responsible for development. Marxist School: Economic development is characterized by continuous exploitation. The class structure in a society forms the base of production. Fundamental forces for social change are internal to developing world societies, not external. Capitalism may be capable of producing growth in economies of developing countries. Globalization and East Asia Convergence argument: Economic success of East Asian countries is introduction of market structures, convergence in and low-cost advantages. Divergence argument: Varieties of capitalism argument: seeks characteristics that make East Asian capitalism West.

l l l l l

The Big Four: Mitsui, Sumitomo, Mitsubishi and Yasuda These zaibatsu formed an alliance with power holders after 1868: the result is the speedy development and industrialization of Japans economy from the Meiji period up until the 1930s. Americans tried to dissolve the zaibatsu system after 1945with little success, despite being seen as un-democratic, un-market friendly, etc Today, the zaibatsu still exist but have been mostly replaced by the keiretsu (horizontal integration of companies that do not necessarily fall under one single holding or company). Zaibatsu: those created in Shogunate times made the exchange of capital into labour not through impersonal mechanism of market (commercial agriculture, with money economy), but through personal mechanism of kinship The case of China Paradigmatic case in divergence arguments Dos not fit models explaining causes and effects of political and economic systems (communism, totalitarianism, democracy) Convenient exception: in comparison to former socialist societies. Threat to global security because of its authoritarian political structure. Key elements of pre-modern China Centralized government Relationship landlord-bureaucrat Social mobility based on examination system Main social unit: family/ clan Position of merchants and commercial classes International relations: Tribute networks. Decay of the Empire Causes of the collapse of the Qing dynasty: Scholar-officials, system of imperial examinations, imperial bureaucracy swamped in corruption Less means to extract revenue due to foreign control of trade activities and no meaningful industrialization efforts Pressure on peasants due to the dismembering of landlord-bureaucrat link: decrease or no public works, grainaries disappear, hunger prevails.. Peasant rebellions Communist China Nationalization of all means of production, Mass-industrialization The family or clan is no longer the main social unit, but rather the Party (and its regional, municipal, local branches) Patrilineal system is replaced by what seems to be a generation and gender-neutral system Social control through the Party and Ideology Post-Communist China? How can we explain this from a historical perspective? State-based arguments Chinas development: Strong, centralized state enables the implementation of marketoriented systems. Top-down, politically closed nature of economic reforms Findings of the State Approach: Decentralization of economic decision-making Economic regionalization: creation of special areas that create privileged links to the global economy Cultural arguments Confucian brand of capitalism, wherever Chinese accumulate capital and engage in market activities (China and beyond). Exclusive cultural values (hard work, family connections, commercial talent) are transnational. The Bamboo Network approach: focuses on the economic turnaround in which overseas Chinese began to invest massively in Mainland China. Institutional Arguments State-business relations in China: 2 perspectives. Foreign enterprises/ overseas entrepreneurs vs. the Chinese state. Domestic enterprises/ entrepreneurs vs. the state Social and political role of the assertive entrepreneur vis--vis the local government official. Patron-client exchanges Use of personal influence to get the contracts/ license and eventually a political function.

explained by the consumer behavior to identify the different from the

l l l l l l l l l l l l l l

l l

Convergence Market Approach: Economic systems are aggregates of production, exchange and consumption of goods and services Universal assumptions of economic rationality Individual (firm or person) is the main rational actor, who is essentially the same everywhere. State approach: Strong state argument: all East Asian countries have a type of state capable of generating and managing development. East Asian success is the concrete effect of national state policies and goals. States, rather than markets, determine any given countrys path to development and response to globalization States set limits and opportunities for markets to flourish In East Asia, the application of the market approach has given rise to an Economic Miracle: these countries were successful because they had faith in the markets. Faith in the market would be followed by faith in democracy. Divergence Cultural Approaches: the Confucian state Monopoly of economic functions long before Western capitalist influence; Unchallenged moral and political authority; Historical capacity of East Asian political elites to intervene in the economy and determine the course of development. Institutional Approach: state-business relations Capitalist societies exhibit differences in their core institutions and organizations, despite global economic interdependence. Institutional approach seeks to explain why economic rationality is not the same across space and time. Confucian governance State is constructed as family relations written large, where the state extends parental benevolence in exchange for societys filial piety. Didactic, moralistic ideology, flowing along a top-down, rigid hierarchy. Institutional Approach: Culture, economy and the state are merged in institutional arrangements that shape development. Institutionalization is the process in which organizations become infused with values other than purely material considerations. Gives predictability and stability to economic arrangements The case of Japan Development model which challenges theoretical notions that Asia was incapable to modernize due to inappropriate cultural values. Shows that are advantages in late-development Shows that the impact of external, global forces does not inevitably lead to similar state responses. Main actor in challenging and defeating the European colonial and expansionary project in East and Southeast Asia.

l l

l l l l l l l l l l

l l l l l l l

l l l l l

Shogunate Period (circa 1600-1867) l Japanese absolutism under Tokugawa: Centralization of power to control rival groups of landlords and samurai; also to expel all foreigners and eradicate their influence in Japan. l Commercial classes (chonin) depended on landed aristocracy as much as aristocrats depended on the merchants but their social position was comparatively weak. l Peasants couldnt bear arms/ weapons l Vertical, traditional, landed hierarchy Shogun daimyo samurai peasant. l Little or no class mobility. l Meiji Restoration (1867-1912) l Loss of rights by the Samurai class l Opening of the army to peasants l Alliance with commercial interests to stimulate industrialization. Implementation of a Land Tax (1873) to extract enough revenue from the peasantry. l Meiji Constitution: seeds of a constitutional monarchy, but where power of Emperor was still supreme Militarism and Imperialism l Reforms that modernize the Japanese state give the military-commercial complex a strong impulse. l Industrialization process based on territorial expansion into Korea, Taiwan and China. l Sino-Japanese War (1894-5) forces Chinese to withdraw from Korea and Taiwan (already in 1874) l Japan defeats Russia in 1902, annexes Korea in 1910 and Manchuria in 1912. l l The Zaibatsu Large, family-controlled monopolies: holding company on top, wholly-owned banks and industrial branches.

Post-communist china development without democracy The need for global regulation l State concern about cross-border flows both good and bad Trade, migration, crime, communications, travel, arms, nuclear proliferation l Sovereignty dictates that states cannot regulate activities and behaviors of other states, even when impacted by them l Will common sets of rules help regulate behavior, reduce transaction costs, increase transparency? What is Global Governance? Rules and regulations that are transnational or global in scope Relationships of authority that manage, monitor or enforce rules Includes: hard law treaties, soft law declarations, private orders, and international governmental organizations Regionalization l Important feature of the international system: l But states have been resilient, and one of the forms to survive globalization has been precisely to join forces with their neighbours; natural ones and immagined ones (essence of geopolitics).

Points type of political system; democratic trajectory trade and security relations with neighbouring countries/ regions

papers

economic and social development; impact of ethnic diversity? policy areas that deserve special attention