Globalization as Universalization of Capitalism

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Globalization as Universalization of Capitalism

• Karl Marx capitalism system of production for
  exchange (profit) not use
• Division between owners (of capital
• and workers (labor)
• Class Conflict
• Role of the state
• Exploitation/alienation/commodification
• Worker produces more value than what he earns
  (wages)
• Surplus-value to owner of capital

2
World-System Theory

• Immanuel Wallerstein
• World Capitalist Economy 16/17th centuries
• Integrated through trade and manufacturing
  connection
• West Europe E. Europe (NICs)
• Core Periphery Semi- Peri
• High skill Low Skill semi-skill
• High wage low wage middle range

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Core Periphery-Semi

• Linked through trade
• Low wage areas trade low rate of return
• Raw Materials/Agricultural Goods
• High wage areas high rate of return
• - Manufactured goods high rate of return
• Unequal Exchange Terms of Trade Price of Goods
• Dependency Theory- Surplus transferred from
  periphery to core surplus produced in
  periphery, valorized in core countries

4
Trade focus of Dependency and World System Theory

• Classical Marxism Realm of Production
• Labor theory of value M-C-M
• In circulation C-M-C
• Transfer of capital through trade
• Low wage areas create greater surplus
• Valorized in high wage areas (developed countries
• Globalisation free trade heightened
• Facilitate transfer of surplus

5
Property Rights and Value

• Example Neem
• Grown in India for centuries
• Medicinal properties- healing, antioxidants
• Vandana Shiva (Physics)
• Sustainable Development
• Commodification of Neem
• Property Rights by US Multinational
• Indian growers cannot benefit as much

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Hoodia Plant Bushmen South Africa

• The hoodia plant in the Kalahari Desert
• Cactus plant suppress appetitive
• CBS News (USA) test
• Patent with Phytopharm (20million on research)
• Bushmen also called San stand to lose millions
  in potential profits
• Settlement reached share of profits.

7
Free Trade

• Benefits of Global Free Trade Globalization
• Relies on theory of competition
• Heightens competition internally strong win,
  weak lose in all economic models of closed
  economy
• Open economy free trade also rests on theory of
  competition
• Strong Win, Weak lose
• But Globalists claim Opposite Win-Win scenario

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CRITIQUES

• Justin Rosenberg
• Globalisation as process cannot explain
  globalisation as condition
• Conflation between
• Explanadum globalisation as historical outcome
  
• Explanas globalisation as the process that
  explains

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• Methodological Territorialism
• Westphalia System of States
• Breakdown eradicates international
• Globalisation theory takes POLITICAL REALISM as
  starting point
• Begin with notion of international as
• System of states narrow, conservative,
  diplomacy, statesmen

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• Leaves out ECONOMY
• CLASSES, SOCIETY, NGOS, CULTURE
• Other ways to access international
• CIVILISATIONS
• RELIGION
• ECONOMY

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• World System Theory
• China and India centre of world commerce in 14
  and 15 centuries
• Discovery of Gold in the Americas
• Spread of Commerce in Europe
• Goods traded in west got from Asia
• Ship building Europe, gun powder China
• Use of Force (Colonialism 1839-42 Opium Wars
  China, East India Company -1620)

12

• SPACE
• Globalisation theory GLOBAL SPACE cause,
  explanation of social phenomena
• Space is abstract, inert, inanimate, cannot
  explain by itself space is product of other
  processes
• REIFICATION of Space (treat abstract as concrete)
• FETISHISM excessive regard or attachment to
  something

13

• Rosenberg Historical Materialism
• Marx material economic forces as basis of
  socio-political institutions
• ----------------------------------------

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GLOBALISATION AS EMPIRE

• Joseph Nye
• Globalisation Americanisation
• Spread of American Power
• 1941 American century
• 1985 Lester Thurow decline?
• Global informational revolution give USA second
  century

15

• American Power tempered by
• Nuclear Power
• Rise of Nationalism
• Decline of Warrior Ethic in Democracies
• Wars have to be justified in moral terms
• Populations psychological war
• ?

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Alternative View of Globalisation as Empire

• Antonio Negri and Michael Hardt
• New Empire de-regulated networks of political
  and economic power
• Global Capital differentiation (de-regulated
  trade competition and tech. innovation)
• New Constitutionalism networks of regulation,
  not cantered in one place many locations)
  Seattle, WTO, NGOs (Mittal, Gates)
• Foucault notion of Bio power- regulation from
  the inside, not domination

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• Foucault notion of Biopower regulate from the
  inside (do not need domination)