2 3 getting connected colonialism

Slide1: 

By the end of this unit most students should be able to: define the terms connections, disconnected, core and periphery, modernisation theory understand how today’s patterns of wealth, trade, and development have been shaped by the past explain how colonialism caused the development of a wealthy core and periphery summarise the impacts of colonialism for disconnected nations explain how American aid led to economic development through the philosophy of ‘modernisation’ 2.3 Getting Connected – Colonialsm

Is globalisation new?: 

Is globalisation new? There is evidence of connections between nations going back milennia, however the big change occurred in 1492 with the discovery of the new world

What were the effects of these early connections?: 

What were the effects of these early connections? Have a quick read of page 70 and 71 and try and summarise who were the winners and losers of these early connections.

Describe the trade pattern that was formed as a result of the colonial era: 

Describe the trade pattern that was formed as a result of the colonial era Why do you think this pattern is often referred to as core-periphery?

Core and Periphery: 

Core and Periphery What kind of evidence is there that the colonial era created a core and periphery.

Some new patterns: 

Some new patterns Although traditionally peripheral countries supplied raw materials and core countries processed it for export at extra value, there are new players on the market. Manufacturing has moved to new peripheral areas and finished and semi-finished goods with added value are being produced for the core. Why has this been done? What benefits might this have for core countries though?

The changing pattern of employment over time: 

The changing pattern of employment over time Where do you think the following countries may be USA Brazil Thailand Somalia Fischer – Clark Model

Theory of why countries remain disconnected: 

Theory of why countries remain disconnected Dependency theorists and world systems theorists see the current pattern of core and periphery as a direct result of colonial influence. Peripheral countries are locked into trading patterns that rely on exports of raw materials and crops. They also point to neo-colonial practices of trade regulation and the role of TNC’s that make it very difficult for peripheral countries to break out of this arrangement. Case Study: Guatemala’s cotton – getting disconnected Case study 2 – costa rica (see small video)

Trying to get connected: 

Trying to get connected This is where we battle between two opposing ideas in the development world The Dependency theorists and The Modernists For this I will attach another powerpoint I did earlier

Modernist vs Dependency: 

Modernist vs Dependency Although there are many different theories they can be simplified into the above. Modernist theories see development equating to economic growth and industrialisation. Dependency theorists see that countries are underdeveloped simply because others are developed.

Modernists – who’s the daddy?: 

Modernists – who’s the daddy? Walt Whitman Rostow: - Stages of Economic development model All countries can follow a linear path to development if they just copy what others did. In fact they can do it quicker by learning from mistakes If you still don’t make it then its your fault.

Rostow - Stages of Growth: 

Rostow - Stages of Growth The work of American Walt W. Rostow Rostow is an economic historian Says that development is linear Countries can be placed in one of five categories in terms of its stage of growth: A child in Sierra Leone making breakfast. Which stage would a country like Sierra Leone fit in? Copyright: Dave Dyett, http://www.sxc.hu/

Rostow - Stages of Growth: 

Rostow - Stages of Growth Traditional Society Characterised by subsistence economy – output not traded or recorded existence of barter high levels of agriculture and labour intensive agriculture Village in Losotho. 86% of the resident workforce in Lesotho is engaged in subsistence agriculture.

Rostow - Stages of Growth: 

Rostow - Stages of Growth 2. Pre-conditions: Development of mining industries Increase in capital use in agriculture Necessity of external funding Some growth in savings and investment The use of some capital equipment can help increase productivity and generate small surpluses which can be traded.

Rostow - Stages of Growth: 

Rostow - Stages of Growth 3. Take off: Increasing industrialisation Further growth in savings and investment Some regional growth Number employed in agriculture declines At this stage, industrial growth may be linked to primary industries. The level of technology required will be low. Copyright: Ramon Venne, http://www.sxc.hu

Rostow - Stages of Growth: 

Rostow - Stages of Growth 4. Drive to Maturity: Growth becomes self-sustaining – wealth generation enables further investment in value adding industry and development Industry more diversified Increase in levels of technology utilised As the economy matures, technology plays an increasing role in developing high value added products. Copyright: Joao de Freitas, http://www.sxc.hu

Rostow - Stages of Growth: 

Rostow - Stages of Growth 5. High mass consumption High output levels Mass consumption of consumer durables High proportion of employment in service sector Service industry dominates the economy – banking, insurance, finance, marketing, entertainment, leisure and so on. Copyright: Elliott Tompkins, http://www.sxc.hu

Criticisms:: 

Criticisms: Too simplistic Necessity of a financial infrastructure to channel any savings that are made into investment Will such investment yield growth? Not necessarily Need for other infrastructure – human resources (education), roads, rail, communications networks Efficiency of use of investment – in palaces or productive activities? Rostow argued economies would learn from one another and reduce the time taken to develop – has this happened?

Recap: 

Recap What is the significance of the take off phase in Rostows model. How high is the correlation between HDI rankings and GDP/capita. How might you explain any anomalies – giving examples. What is the difference between relative and absolute poverty

Dependency theory….: 

Dependency theory…. It argues that colonies were developed in relation to those of their rulers - they provided raw materials and received manufactured goods in return. While no longer colonies they must continue to sell their raw materials to pay for the manufactured goods Their own industry does not develop because it cannot compete with technologically advanced multinational companies And wages are not high enough to create a large home market. The multinationals take their profits from manufacturing out of the Third World nations, and maintain a monopoly over important technological advances

Global Core – Periphery: 

Global Core – Periphery World Systems theorists point to a global rich core and poor less developed periphery. Workers in peripheral areas receive less therefore demand for consume goods will remain small. Therefore investment in production is limited. Unequal development will therefore continue.

Slide23: 

So, modernisation theory sees capitalism as a creative force, causing growth and progress. Dependency sees international capitalism as the ruin of the Third World . Modernisation sees rich countries as helpers of poor countries; dependency sees them as the main obstacle to the well-being of the poorer countries.