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Sociology for
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Sociology for a New Century brings the best scholarship in key areas to
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An Invitation to Environmental Sociolo�), Second Edition, Michael M. Bell Global Inequalities, York Bradshaw and Michael Wallace EcoHomy/Society: Markets, Meanings, al1d Social Structure, Bruce G. Carruthers and Sarah 1. Babb How Societies Change, Daniel Chirat £thnicih) and Race: Makillg Identities in a Changing World, Stephen Cornell and Douglas Hartmann The Sociology oj Childhood, William Corsaro Cultures and Societies in a Changing World, Second Edition, Wendy Griswold Crime and Disrepute, John Hagan Gods ill the Global Village: T71e World's Religiol1s in Sociological Perspeclive, Lester R. Kurtz Waves oj DemocraCJI Social Movemenls and Political Change, John Markoff Develcypment and Sociol Change: A Globol Perspective, Third Edition, Philip McMichael Women and Men at Work, Second Edition, Irene Padavic and Barbara F. Reskin Aging, Social Inequality, alld Public Policy, Fred C. Pampel Constructing Social Research: The Unity and Diversify oj Metlwd, Charles C. Ragin Making Societies: The Histaricol COllstructian oj 0111' World, William G. Roy Cities in


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World Economy, Second EditiorJ, Saskia Sassen

Gender, Family and Social Movemen.ts, Suzanne Staggenborg Low!Society: Origins, Interaclions, and Change, John R. Sutton

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Congress Cataloging-in-Publication


McMichael, Philip. 3nl ed . Development and social change:

global perspective


by Philip McMichael.-

p. em. - (Sociology for a new century)

Includes bibliographical references and index. ISBN 0-7619-8810-6 (Paper) 1. Economic development projects-History. 2. Economic development­ History. 3. Competition, International-History. L Title. n. Series. HC79.E44 M25 2004 306.3'09-<1c22 2003018184

This book is printed on acid-free paper.
05 06 07 10 98 7 6 5 4 3

Acquisitions Editor: Editorial Assistant: Prodllcfion Editor: Copy Editor: Typ�dter: Cover D�signer:

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Instituting the Development Project Colonialism Decolonization CASE STUDY: The Tensions and Lessons of the Indian Natio�alist Revolt xii xiii xv xX xxii xxiii xxiii xxvii xxx xxxiii xxxv xxxvi xxxviii 2 4 14 16 19 20 24 25 28 Decolonization and Development Postwar Decolonization and the Rise of the Third World Ingredients of the Development Project CASE STUDY: Blaming the Victim? Colonial Legacies and State Deformation in Africa CASE STUDY: Development as Internal Colonialism. and Imperial Projects PART I: THE DEVELOPMENT PROJECT (LATE 1940s TO EARLY 1970s) 1. Globalization.Contents About the Author Foreword Preface to Third Edition A Tuneline of DevelopmentaUsm and Globalism Acl<nowledgments Introduction: Development and Globalization What Is the World Coming To' The Global Marketplace Global Networks The Social Web of the Global Market CASE STUDY: The Hamburger Connection Dimensions of Social Change in the Global Marketplace Development. in Ladakh .

74 75 78 79 81 84 86 91 94 98 100 103 103 109 110 112 114 Implementing Globalization as a Project The Globalization Project CASE STUDY: Incorporating the Second World into the Globalization Project CASE STUDY: Chile-The Original Model of Economic Liberalization CASE STUDY: Mini-Dragon Singapore Constructs Comparative Advantage Global Governance CASE STUDY: Mexican Sovereignty Exposed: From Above and Below CASE STUDY: Global Comparative Disadvantage: The End of Farming as We Know It? CASE STUDY: Corporate Property Rights in India CASE sTuDY: Unequal Construction of Knowledges and the Question of Biodiversity Protection CASE STUDY: Leasing the Rain: Privatizing the Social Contract in Bolivia CASE STUDY: NAFTA: Regional Economic Success. Demise of the Third World The Empire of Containment and the Political Decline of the Third Wor ld Financial Globalization CASE STUDY: Containment and Corruption The Debt Regime Development? CASE STUDY: The IMF Food Riots: Citizens versuS Structural Adjustment Global Governance CASE STUDY: Turning the Dominican Republic Inside Out? CASE STUDY: Tanzanian Civil Society Absorbs Structural Adjustment Summa ry tion as CASE STUDY: Debt Regime Politics: Debt Coilec 116 117 123 128 129 133 137 139 142 147 149 31 32 36 39 40 45 51 52 54 60 61 67 69 2. Social FailUIe? The Globalization Project as a Utopia S ummary 3.The Development Project Framed CASE STUDY: National Development and the Building Blocs of the Global Economy Economic Nationalism Summary 30 4. The Development Project: International Dimensions The International Framework CASE STUDY: Banking on the Development Project Remaking the International Division of Labor CASE STUDY: South Korea in the Changing International Division of Labor The Postwar Food Order Remaking Third World Agricultures CASE STUDY: Food and Class Relations CASE STUDY: What Produces a Development Mentality? Summary PART 11: fROM NATIONAL DEVELOPMENT TO GLOBALIZATION PART III: THE GLOBALIZATION PROJECT (1980s-) 5. The Global Economy Reborn Divergent Developments CASE STUDY: The NICs: An Exception that Disproved the Rules? Third World Industrialization in Context CASE STUDY: The World Factory in China The Global Production System CASE STUDY: The World Car: From Ford and Mitsubishi CASE STUDY: Gendering the Global Labor Force CASE STUDY: Global Subcontracting in Saipan CASE STUDY: High Heels and High Tech in Global Barbados CASE STUDY: The Corperatization of World Markets Global Agribusiness CASE STUDY: Agribusiness Brings You the World Steer CASE STUDY: The Global Labor Force and the Link between food Security and Food Insecurity Global Sourcing and Regionalism CASE STUDY: Regional Strategy of a Southern Transnational Corporation Summary 152 154 155 158 161 165 167 175 178 183 186 191 193 198 .

Brazilian Environmentalist by Default CASE STUDY: Local Environmental Managers in Ghana Feminism CASE STUDY: Human Rights versus Cultural Rights: The Ritual of Female Genital Mutilation Cosmopolitan Activism CASE STUDY: Andean Counterdevelopment. The Globalization Project: Disharmonies Displacement CASE STUDY: Neoliberalism and Food Insewrity CASE STUDY: Trafficking in Women: The Global Sex Trade versuS Human Rights CASE STUDY: Multiculturalism and Its Contradictions Informal Activi ty CASE STUDY: Informalization versus the African State: The Other Side of "Globalization" CASE STUDY: The Global AIDS Crisis Legitimacy Crisis and Neoliberalism CASE STUDY: Identity Politics and the Fracturing and Underdevelopment of Nigeria Finanoal Crisis CASE STUDY: Financial Crisis Releases Indonesian Democratic Forces CASE STUDY: South Korea in Crisis: Running Down the Showcase Summary 201 203 203 209 212 213 218 221 225 Food Sovereignty Movements CASE STUDY: The Case for Fair Trade Summary 8.6. Global Development and Its Countermovements Fundamentalism CASE STUDY: Modernity's Fundamentalisms Environmentalism CASE STUDY: Deforestation under the Globalization Project. Water. or "Cultural Affirmation" CASE STUDY: The New Labor Cosmopolitanism: Social Movement Unionism 275 271 265 270 257 261 262 255 252 238 239 242 246 . Post-Earth Summit CASE STUDY: Managing the Global Commons: The GEF and Nicaraguan Biosphere Reserves CASE STUDY: Chico Mendes. RETHINKING DEVELOPMENT 7. Everywhere-Unless It Becomes a Commodity Rethinking Development CASE STUDY: Global Meets Local: The Microcredit Business CASE STUDY: Argentina's Tum to Cry Toward an Imperial Project? Conclusion Notes 277 280 281 284 285 290 292 297 300 303 307 309 317 342 357 228 231 232 234 References Glossary Ilndex Supplementary Web Site Guide 235 PART IV. Whither Development? Legacies of the Development Project CASE STUDY: Water.

S ociology for a New Century offers the best of current sociological thinking to today's students. students need to grasp phenomena that transcend national boundaries-trends and processes that are supranational (e. the women's movement. Finally. historical.g. and Afgh · anistan and working in a cornrnuruty m Papua New Guinea. or transnational in ori­ entation. and as President of the Research Committee on Agricultur e and Food for the International Soclologrcal Association. Each book in this series offers in scme way a comparative. Recognition of global processes stimulates student awareness of causal forces that transcend national boundaries. This goal reflects important changes that have taken place in SOCiology. Rachel and Jonathan. His book. historical. racial conflict.. sociologists were so obsessed with con­ structing a science of society that they saw impenetrability as a sign of success. have two children. Awareness of com­ monalities Wldercuts the tendency to view social issues and questions in narrowly Amencan terms and encourages students to seek out the expe­ riences of others for the lessons they offer. Today. In the 1970s and 1980s. etc. transnational. students need to understand that issues that may seem specifically "American" � (e. as chair of the American Sociological Association's Polillcal Economy of the World-Sys tem Section. Swarthmore College. environmental degradation). with an ever growing interest in research that is comparative. Aft � traveling m India. Students need to comprehend the diversity in today's world and to understand the sources of diversity. Karen Schachere. The disCipline has become broader in orientation. and politics. and he completed his undergraduate studies at the University of Adelaide. He has taught at the Uruverslty of New England (New Sout h Wales).g. This knowledge can challenge the limitations of conventional ways of thinking about soeialIife. he pursu ed his doctorate in scciology at the State Umverslty of New York at Binghamton. won the SoCial SCience History Asso ciation's Allan Sharlin Memorial Award (1985). South Australia. At the same time. there is a greater effort to connect sociology to the ongoing concerns and experiences of the infOmted public. He curntly re selVes on the Executive Board f the Global Studies Association and on a Scientific AdVisory Committee the Food and Nutrition Division of the United Nation's Food and AgnculturaJ Organization (FAO).) are shared by many other countries. He is the editor of The Global Restructuring of Agro-Food Systems (1994) and Food and Agrarian Orders in the World Economy (1995). Sociologists are less focused on "American" society as the pin­ nacle of human achievement and more sensitive to global processes and trends. They also have become less insula ted from surrounding social forces. The goal of the series is to prepare students and-in the long run---the informed public for a world that has changed dra­ matically in the past three decades and one that continues to astonish.About the Author Foreword Philip McMichael grew up in Adel aide. and the Uruverslty of Georgia and is presently Professor and Chair of Development Sociology at Cornell Univ ersity. an aging population bringing a strained Social Security and health care system. Pakistan. He has seIVed as director of Cornell University's International Political Economy Program. xiii . economies.. He and his wife. national chauvinism. Settlers and Ihe Agrnnlln QuesllOn: FOl/ndnlions of Capit alism in Colonial Australia (1984). or global perspective to help broaden students' vision.

" McMichael's portrait of global mterconnections spotlights the long reach of international markets and commodity chams and the many. marked the consolidation of a political bloc in the global South. Coals of integration with the world economy and openness to its forces supplante d goals of national devel­ opment and "catching up with the West. including its ability to finance its xv T .mterplay between nch and poor countries over the post-World War /1 era. The promise of the so-called "Develop­ ment Round. development thinking. namely. whic h McMichael calls the develop­ ment proJect. The World Trade Organization (WTO) Ministerial in Cancun. This thinkng joined intern i ational organizations and l1urd World governments in a comm on ideology of state-managed econonuc and SOCIal change and champione d the idea that. Reality. remained unfulfilled and perhaps served to focus attention on the need to change the balance of forces in the WIO to move the global development agenda fonvard. in which the world's remaining superpower state. This is in part because of the intransigence of the global North on its agricultural protection and on WIO procedures. connections between producers and consumers worldwide. of course. the Croup of 21. pullin g themselves up by their ow bootstraps. The world in the twenty-first century is an alarming one. Its 5 tarting POUlt IS the view of internation al inequaJity predominant in the 1950s and 19605. and has gained coherence ever since. Bilateralism is also a product of the unipolarity of the twenty -first century. lhis organizational current began during the 1990s. moves to secure its power in the world. September 2003. gave way to globalism. feU far short of the vision that insPire . the United States.lt remains to be seen how international relations in the develop­ ment field wjll unfold since one consequence of the failed Cancun Ministerial is likely to be consolidation of bilateral and regional economic agreements based in more direct geopolitical relationships. The original perspec­ tive of the text remains since it appears that the argument of the previous editions has been essentially confirmed. poor countries could become developed countries." arising from the WTO Ministerial in Doha (2001). with a little help from nch COWltries and internation al organizations. given the rising use of terror (both stateless and state based) as a tactic of intim­ idation of populations and given the evident compromise and/ or break­ down in multilateral negotiations among states. as well as its attempt to institutionalize a regime sanctioning foreign investment and privatized services in a trade organization. " YI Developmenl and Social Change: A ClaIm ! P<'YSpeclive explores the complex Reflecting the � ramatic acceleration of the global econom Preface to Third Edition � he third edition of this text updates the material in a world of fast-breaking news on the international front. ener­ gized by a weU-organized nongovernmental organization (NCO) move­ ment. and this view. often invis ible. emerged at the WIO Ministerial in Seattle in 1999. that the attempt to orga­ nize development as a global enterprise is fraught with instability and conflict. to render multilateral negotiations more democratic and more realistic and just in an increasingly unequal global economy.

and it helps them to see how this project is currre ntly undergoing dramatic revision via poUtical and economic globalization. marxist perspectives. and chronicling of the rise of a food sovereignty countermovement to the global food security regime centered on the dumping of agricultural surpluses and attempts to introduce transgenic foods through aid programs. Other modifications to this third edition include a more conscious charting of the changing fortunes of the Third World as a political bloc. dependency vs. Students find themselves thrown into the task of evaluatlng abstract perspectives without proper grounding in knowledge of the post-World War II developmentalist era. liberal perspectives vs. Rising tetror attacks. until students go beyond simple evolutionary views. inclusion of new developments in global labor migration and the role of remittance income. they will be better prepared for the many challenges that lie ahead. and international inequal­ ity. respectively. in addition to the inclusion of new case shldies. although their experiences will be different. including privatization of services and knowledge. Living in relatively affluent surroundings. structuralism vs. But there is no doubt that cross-cutting tensions between multilateralism and bilateralism. greater attention to political tensions within Third World states. It also advances a provisional sketch of the emergence of a new.g. all case shldies end with a question.. In my experience. attempts to identify the discord in the project of global development to better understand the limits and possibilities of development. often posed as a paradox. compounded with the occupation of Iraq in 2003. students understandably situate their society on the "high end" of a development continuum-at the pinnacle of human �tives is a fundamental part of teaching social change and . The post-<old war world that students live in today is very different from the world that gave rise to development theories. (This is likely to be the case also for students from the so-called Third World. focus on the gendering of the global labor force. my narrative retraces the story of development as an increasingly global enterprise. between Europe and the United States.lOn xvii growing deficits. to introduce students to the question of whether and to what extent development is a process often realized through the intensification of inequalities. Many of the available texts approach development through the lens of theory. more coherent treatment of the protocols of the WTO. The narrative that follows presents an overview of social change and development as the twenty-first century takes hold.) It is difficult to put one's world in historical perspective from this vantage point. students need a basic understanding of the context within which these competing theories arOse and then collided . With these understandings in place. development. When they do go beyond the evolutionary perspective. And they often perceive both the development continuum and their favorable position on it as "natural"-a well-deserved reward for embracing the values of moder­ nity." in the sense that they represent a cosmopolitan alternative to the singular view of economic and technological achievement.t'retace to the l'hud �t. then. they are better able to evaluate their own culture sociolOgically and to think reflexively about social change. Rather. While presenting competing the­ oretical pers development. as well as fundamentalism and terrorism. Part of this discussion includes a recognition of the growing presence and discursive power of the global justice movements (some­ times referred to as the "anti-globalization" movement). nus third edition addresses aspects of this new world disorder through discus­ sions of the relationship between fundamentalism and modernity. modernization vs. The interaction between these two forces reveals a struggle to (re)define devel­ opment in a world defined by two powerful dynamics. all-encompassing perspective. Whether and to what extent such an imperial project will displace and/ or subsume the globalization project remains to be seen. as well as by some powerful countermovements within this process. The subject of development is difficult to teach. they have difficulty valuing other cultures that do not potentially mirror their own. profile of the global AlDS crisis. etc. It is harder still to help students grasp a world perspective that goes beyond framing their history as a simple series of developmental or evolutionary stages­ the inevitable march of progress. imperial project.). world systems theory. This book introduces students to the global roots and dimensions of recent social changes and to the special role filled by the development project. and between the global North and the global South will shape the first decade of the twenty-first century. Finally. This is the challenge. alongside of the globalization project. This text chooses to characterize these movements as "globaJ countermovements. The third edition. elevate military expenditures and other costs of empire. neouberal­ ism. nor does it adhere to a single. It encourages them to think about development as a transnational project designed to integrate the world. despite its stated intentions. Texts are usually organized around competing theories or per­ spectives (e. The rapid pace of corporate globalization-as expressed in the annual juxtaposition of the World Social Forum and the World Economic Forum. integration/ disintegration and inclUSion/exclusion. It is not organized around competing theories of social change and development.

This book has been designed with these new challenges in mind. �sefu� as short­ world that is simultaneously integrating and disintegrating and grappling with envi­ ronmental problems on a global scale. a new project of globalization began. which in turn conditions their domestic experiences and possibilities. such as the feminist and the environmental movements. expressive poli­ tics. The text lays out the main features of this trend. and rain forest protection will find these issues here in the context of the shifting debates and challenges to the development project. gradually supplanting the development project. and so on. From the early 1970s. the problem of intemational inequ tidy view of development and students an mtegrated perspectIve The goal of this presentation is to offer "development" is understood at the on the forces that have changed how ury. outlining the condi­ tions under which the post-World War II managers of states and multi­ lateral agencies institionalized development as a key organizing principle in the cold war era.social change makes the task of understanding this world akin to shooting at a moving target. These trends involve the shape of the with a deep-rooted contention over developments." Finally. which helps to both situate current limits to nationally managed development and show how even nahonal devel­ opment strategies had intrinsic global dimensions. srrate that nation-states belong to and shape a transnahonal order. Although they certainly violate a heterogeneous reality as Olnnibus termsl they are : hand and certainly recognizable to most people. My aim is to situate current changes historically. grassroots activism. A series of case studies concentrates on the Third World countries' experience of the development project. dramatized by the debt crisis of the 1980s.g. All of these issues complicate our once . in some instances. and ideas. It is even questionable whether development theory. when new global trends began to override the 1940s Bretton Woods development institutions. J have interwo­ ven global and national issues. national societies and citizens. feminism.ile situating those individual experiences in a common process. Students who are already familiar with such social movements as consumerism. students By understanding the constru of to make sense of current trends have a basis from which to begm urses and new institutional new disco restructuring. Similarly. individual rational actors. I stick WIth FlYst World for no other reason than convenience. The scale and style of politics are changing. The established units of sociological analysis (e. The common process of development itself has changed substantially. including some of the major countermobilizations. stateless refugees and terrorists. New questions arise in a ality. I a ttempt to demon­ . first presenting an overview of the development era (including its theoretical discourses) and then addressing its declining salience as a new global era emerges. emerging world order. electronic impulses. etlmic and cultural entities. etc. will sur­ vive the dramatic social changes of the post-<old war world. and new issues of human rights have emerged in a world that is experiencing an increasingly rapid circulation of money. : Organization and Language 1n examining the experiences of the development project. It has become corrunonplace to note that the Third World and the Second World have ended as coherent enti­ ties and I have tried to record this change during the narrative by adding th epithet "the former" to each of these terms. The text traces the steps in the gradual evolution of the development enterprise into an emerging globalization project. individualizing this experience and showing how it differed aCTOSS Third World countries and regions wh.. turn of the twenty-first cent tion of the development era. and possi­ bly an imperial. I have used the terms North and South where these categories have a certain currency as political subdivisions of the contemporary world. people. tripolar (three worlds). transnational webs of exchange and transnational conunwtities. as it is now known and debated. as the ground is shifhng-even degrading-under the globalization. project. a word about language. This includes charting the relative consequences of a bipolar. and now unipolar world and how the changmg balance of geopolitical forces informs our understanding of "development.) are now surrounded by competing organizing principles-subnational com­ munities and supranational regions. goods.

.----.-) Self-Regulating Markets (Monetarism) Public Downs izing DEVELOPMENT [Model) MOBILIZING TOO L MECHANISM S Industrial Replication National Economic Sector Com plementarity [Brazil. 1980 GATT Uruguay Round (1986) 1990 NAFrA (1994) WTO (1995) 2000 Group of 20 (G-20 (2003) (1944) (1964) US$as Reserve PL-48Q ( 1954) Currency Eurodollar / Offshore $ Market (G-77) Offshore Banking Structural Adjustment Loans Glasnost! Perestroika IMF / World Bank "Governance" Loans COMECON (1947) .A TimeIine of DevelopmentaIism and Globalism WORLD FRAME WORK POLmCAL ECONOMY Deveiopmentalism (1940s. Mexico.ile.--. India) Nationalism (Post�olonialisrn ) Import-Substitution Industria li.ip SOClALGOAL S Welfare ] II II t- Globalism 11980.19705) State-Regulated Markets Keynesian PubUc Spending SociaJ Entitlement and Unifonn Citizensh. Energy) Education Land Reform JI Private Initiative and Global Consumerism Identity PoUtics and Multilayered Citizensh. IMF/GATT 1960 1970 Group oE77 1970 Group of7 (G-7) (1975) . 1979) (1989) (2001-) Debt Regime World Economic Forum (1970) New international Economic Order Initiative ( 1974) (1961) (1943) UNCTAD WTO Regime Earth Summit (1992) WTO Ministerials Seattle (1999) Cancun (2003) (1964) (1955 ) FlR5T DEVELOPMENT DECADE SECOND DEVELOPMENT DECADE Chiapas Revolt (1994) World Social Forum (2001) ---.ip Participation in the World Market Comparative Advantage [Ch. South Korea.zation (151) Public Investment (InfraStr ucture. VARIANTS First World (Freedom of Enterprise) Second World (Central Planning) Third World (Moderniza tion via Development Alli ance) Korean War (1950-53) MARKERS Cold War Begins (1946) Bretton Woods Vietnam War � Regional Free Tr a de Ag reements Global Economic Ma nagement (Good Governance) (1964--7 5) Oil Crises Cold War Ends "New World Order" Begins Imperial Wars (1944) United Nations Marshall Plan (1946) NonAligned Movement Alliance for Progress (1973. DEBT CRISISI "LOST DECADE" "GLOBALIZATION" DECADE 1940 IN STITUTIONAL DEVELOPMENTS 1950 World Bank. NAFTA) Market Forces Debt and Credit-Worthiness ExportOrientation Privatization Entrepreneurialism Public and Majority-Class Austenty National Structural Adjustment (Opening Economies) .

which include acknowledgment of the various people who were so helpful. Sen Crow. We know that the 20 percent of the world s eople who do have corISurner cash or credit cOrISurne 86 percent of all OOdS and services. . and Robert Mazur-their collective good advice has certainly aided the revi­ sion.. and fantasy. and Dana Perls was invaluable in producing a creative and diverse set of graphics to enhance this edition. Harriet Friedmann. for his remarkable vision and his enthusiasm and faith in this project. I have received continual encouragment and valuable suggestions concerning presentation of the text from editor-in­ chief. is not necessarily a uruversal aspu�hon. then. It is almost as if there is no alternative to this 1ll1a ge of globalization. Vanessa Vondera. Amish. beginning with my graduate school mentor. We may See television commercials depicting the world's peoples con­ suming global commodities. Terence Hopkins. Richard Williams. For What Is the World Coming To? These days. Michell Adato. • if not always followed completely. special mention still goes to Original editor­ in-chief. only 20 percent of the world's population has access to consumer cash or credit. as well as friends who contributed various insights­ Fred Suttel. xxii While the world's peoples and continents ha ve a lways been connected through exchanges of goods. the term globalization is on practically everyone's lips. is. I him and to the produc­ tion crew: my fastidious copyeditor. and the text. Gillian Dickens. Kristen Gibson. there so much talk of "globalization"? There IS no SImple answer. other cultures (e. xxiii . assisted with background research.g. Cultural meaning is not universally defined through the market and so globalIZa­ : tion as it is currently understood. while the poorest 20 percent consume just 1. I can only do so much. DeOllos. For this third edition. . Jerry Westby. who made the reproduction of the revised text pOSSible. Ed Crenshaw. graphics specialist. very special thanks are due to two very special people: Dia Mohan-a coUeague and former graduate student who has worked with me. Islamic. even � The distribution of the world's material wealth is extraordinarily uneven. but some of the explanations would be the followmg. Whose thoughtful classroom Challenge during the military OCcupation of Iraq encouraged me to include the emergence of the "imperial project" as a complicating factor in the project of globalization. ideas. One of the distinguishing features of this new century IS the powerful apparatus of communication that presents an image of a world unified by global technologies and products and thel[ wuversal appeal. and my professional production editor. Dale TOmich. And yet we know that while 75 percent of the world's population has access to daily televiSion reception. Ann Saker Cottrell. and Raj Patel-and my undergraduate and graduate students (particularly my teaching assistants) at Cornell. lone Y. Jack Goldstone.Acknowledgments Introduction: Development and Globalization the hIst two editions. �y. Cornell Presidential Scholar Sara Lee. I received thoughtful and provocative suggestions to improve this text from Doug Constance. the recent communica tions revolution makes it possible to connect the world more intensively than ever before. I extend my sincere thanks to I wish to express my thanks to the people who have helped me along the way. We also know that while we may be accustomed to a conunerclal culture. over the past two editions and whose extraordinary intellectual insights have helped me develop a more nuanced under­ standing and presentation of the subject-and my daughter Rachel. Finally. Or so it would seem. Steve Rutter. peasant. but it is not as If everyone actually shar s � either this reality or this image. literature.3 percent. forest dweller) are eIther not commercial or not comfortable with commeroal definition.

. including all its limitations and imperfections. r attended a village meeting. in New Guinea. especial ly cultural tOurism. i t is worth trying to imagine what global­ rrugh That we are backwardness That our head needs changing for a better one They say that some learned men are saying this about us These academics who reproduce themselves In our lives t mean to people who do not consume the material benefits or the images of globaliza tion. Here I offer two such perspectives: . as hard as it might be. There are some who aspire to consume. nus ki. or maybe they won't let uS cross at aU. Simultaneously reducing it to a Single. there are alterna­ tive currents of meaning and social organization. " The increasingly finite world has become the object of powerfu l cOW1tries and corporations concemed with improving their competitive advantag e by " capturing" world resources. clothing. in which "otherness" is packaged as a cultural export to earn foreign currency. Ladakhis did not realize that money played a completely different role for the foreigners. The NAFfA treaty isn't meant to rescue people like us. it is obvious that despite powerful images • Some years ago. On the other hand. • Tourism is currently the world's largest industry. that back home they needed it to survive. Introduction xxv • In the late twentieth century. an invidious comparison with Western culture occurs through quite artificial contact. such as children. . or . Let me illustrate these types. In Judith Hellman's bOOk." Cargo cutts construct mil­ lennial fantasies about seen or W1seen foreign goods or gUts being bestowed on non·Western peoples. subsisten ce dweUers. global entity. respectively : What is there on the banks of these rivers. a street vendor named Rosario anticipates the impact of globalization (via the North American Free Trade Agreement INAFfAD on those MeXicans who sun. thousands of people at the border live hom coUectiJ'lg bribes. we gai access to and n share knowledge of other cultures. in " A Call to Certain Academics. some who f ind meaning in their own culture but nevertheless feel somehow diminished by the comparison. The author remarks that Ladakhis "c�ot so readily see the social or psychological dimensions-the stress.. Mexican Lives. whose economy is not governed by money. the fear of growing old. The increasingly finite world has made itself known to us through the rising degradation of the environment. indigenous people. writes. armed with cameras and seemmgly infinite amoW1ts of money.ive by smuggling goods across the Texan border to sell in Mexico City: "You have to W1derstand. media images prompt us to imagine its diversity as a source of wealth. that food. Five hundred flowers From five hundred different types of potato Grow on the terraces Above abysses That your eyes don't reach These five hundred flowers AIe my brain My flesh In juxtaposU'lg these images. ··0. perceive W� tem �ul � _ through contact with tourists.'" � • Jose Maria Arguedas. some who view "globalization" as privileging exishng conswners. homosexuals. describes how Ladakhi people. globaliU1l"ion replaced developm ent as a serious discourse and project of politicaJ and business elites. A'Jc1enl Futures. • • Through the cOmD1W1ications revolution. a South American Andean poet. for which they evidently do not have to work: "In One day a tourist would spend the same amOW1t that a Ladakhi family might in a year." Here. and so forth. to these strangers they sud· demy felt poor. women.. they'll find another way to shake us down. at whidl a well-k nown "cargo cult" member was instructing his feUow villagers to pre­ pare for a shipment of goods hom "the outside. • As the world and its natural and cultural resources are subjecte d to com­ mercial speculation.---- -··. it's meant for the rich. • Helena Norberg�Hodge's book. If free trade comes. prisoners. How the differences will be resolved is.. and shelter all cost money-a lot of money. of course.. they know their own culture ulSlde out. one of the key issues that frames the twenty-first century.r treatment of subgroups. . There are many perspectives and voices expressing these tensions.nd of perception is evident in the New Guinean Pidgin· English tenn for heli­ copfer-mix-master belonginl Jesus-which suggests that divine providence is • somehow cOMected to the artifacts of industrial civilization. Doctor? Take out your binoculars And your spectacles Look if you can. " ? of a world converging on a common consumer culture. in the absence of being able to conceive of reorga­ nizing their Own culrore to actually produce such items.. the loneliness. lZation Now. and some who Simply reject consumerism and affirm their culture. Nor can they see environmental decay. and we evaluate different po!jhcal cultures and thei. flation. W1eroployment. Compared." the following:' They say tha t we do not know anything .

This denia l fuels our thirst fo r d is traction gl orifi es the sustainability of ecological and social systems at the points of produc­ sands of low-income dwellings and the lives of many of their inhabitants. its journey to markel . tropical hurricanes wrought exports to the world market. However.� . people find ways and means to respond. a cons u l tan t to business on alternative futures' remarks m . the twen ty-f IrSt century appears to be sha lflg up as an elementa l confljct between profits and P meanin . that pflvilege the commercial P success of the global Disney corporation and dunuush the d Igruty and · · compleXIty of the historical cultu . lt 15 a bou t how relations amon g countries and peoples a re to be s truc red . .' When people read about these disasters and their Taking Our cue from these state ments. the designer labels. and conswne today has globaJ origins. to use consumer power to arrest social and ecological harm aris­ � :� � between profits and meaning finds expression. It � involves questions of political and eco­ nom._ "1 . . accelerate bean growth. " label. The world was shocked when. In an article addressed to North American "Where were yOUI beans grown?" and bylined the observation that coffee farming in Central America is reducing the songbird population. and the S iv�l of ea lfIcreaslflgly depends on limitin g the au tonomy (or power) of the other. . dated January of the glObal ma. rests on maintaining an . commercial cropland. It works out to m e or than $100 for every person on the planet ' m t of whom wiU never have the means to acquire the BM W5. The pOint of business is to provide profit.cs charge that the char acterswhether Aladdin. As rain forests have disa ppeared. Central America was losing about 180 acres . a scientist from the Smithsonian Institute. but via Westemi2:ed cu Itura I unages.l. . the former Organiza�on (WTO). He was emulating other consumer-led movements. . For example. . · na I S the conflIct between the mark et culture that would unify the world and the popular cultures that differentiate the world as a mos aic of local ­ Ized lifestyles. as awareness of the connections culture. ? Not en tirely. . and we are doing our best to overlook the fact. Even when a product has a domestic "Made In . countries accelerate their d evelopment . Of course.. use. by . and pastures to sustain lucrative 1998.' farmers remove the shade trees and substitute sunlight and chemicals to This kind of environmental impact is widespread and indicates the • Rlch�rd Neville. mean. 1999. . . .Jc sec un ty. It eterm. . has documented boom in coffee drinking. in the u. . In these ways.ntroduction • xxvii Renato R uggie ro.l."shade-grown coffee" beans under a "Cafe Audubon" brand." respectively.6 . res depicted. What is at stake as we contempla te the future of the multi lateral system is much mo than ade �d econornics.gly and endangers the ecosystem . It sIg· . thereby reducing bird habitats. The point of culture is to provide . making tt the boldest psycholog j ical prO ect ever undertaken by the human race..ines whet her we foster international solid arity or descend mto a splra1 of global friction and conflict. The Washillglon Posl headlined Greenberg. Being Human. that the decline of bird life in Central America is related partly to the migratory songbirds have relocated to the traditional shade trees that pro­ � 150 species of � � tect young coffee plants on the plantations. . . A n xample of this tensIOn is th e cont roversy regu larly generated b y animated 15ney films that attempt to appe al to consumers' multicultural unpuIses · . . honzons are "glo bal" and "loca l. Can the ho o be reconciled . globalizahon when he rema director-general of the World T d the view of the proponents of econ i rked in the late 1990s �� � colfee drinkers.s More 5. the tension Pakistan. On the other hand. . The Global Marketplace Much of what we wear. Each year. Russell huge. these two cultural types intermin Ie but th . open rntemahonal economy based on c ommonly agreed " es . While this scenano may be too simplified." conflict between rising market demand for globally produced goods and tion. U1g th elr econonues . the microwaves. Look at the queues outside Planet HoUy -wood . . . such as the dolphin-safe tuna Greenberg involved himself in the Smithsonian-sanctioned promotion of campaign and consumer boycotts of soccer balls sti tched by children in ing from unregula ted market practices. widespread disaster in Central America as mudslides destroyed thou­ Vulnerability to mudslides was a consequence of overlogging of the rain forests for timber. the world's prosper i ty . Pocahont as Or Mulan-reprod uce ethn ic stereo ty es . " In parh · cuIar. transnational dilemmas. expressed .rket culture. �ora te ex en�lture on advertiSing an d marketing is mare than $US6 � 20 bil­ hon. it does seem to captu re one f the key sources of lension attac hed to "globalization . As coffee drinking intensifies. Russell Another related tension concerns the social and environmental impact than ev er before. the totaJ cor­ . �n aruc Ie htled . inevitably they feel a sense of powerlessness in the face of such link to the market ·.. � of trees an ho u r And global wamling was blamed for the torrential rains that feU that year in Central America as well as in China and Bangladesh. it's kind of fun. � grows.J1g.'The Business of " . Cnh.

reaching beyond regional and national boundanes. and therefore cultural meaning. It IS a fundamentally social (and environmental) act. Chains link each input stage. Nations (UN) Human Drodopmenl Report noted.! elites across the world. the marriage of development and globalization is spawning quite uneven offspring. and a watch made in Hong Kong. Sneakers. and cocoa from Ghana finds its way into Swiss chocolate. aboul 60 pe rcen t .JUI. sustainable forms of development. On the margins. the euro. The global marketplace binds us all. providing the United States with a huge open market as a home base.'Jopmenl ana �Ial Lhange tntroduCtion xxix probably combines components and labor from production and assembly SItes aroWld the world. a transistor radio or compact disk player put together in Singapore. such as the World Bank. located in a number of countries at sites that provide inputs of labor and materials contributing to the fabncation of a final product. we partiCIpate III a global process that links us to a variety of places. and yet aU could be produced within a 50-mile radius. In many cases. we understood development to be a process of economic growth organized nationally. Most governments across the world are participating in an opening of their economies to global competition or. people and resources. might be produced in China or Indonesia. This is a powerful idea that informs development policies made by national governments and international development agencies. For one thing. Consumers everywhere are surrounded and often identified by world products. We may not be global citizens. as an indispensable part of the development process. And it allows us to understand that when we consume a final product in a commodity cham. but today. thaI of the 4. Or Alrica. \llll �vt. there are new currents of grassroots activity seeking to formulate and implement alternative. Not everything we consume has such global origins. as Rosario the street vendor observed. was quoted above as saying. as a local combin ation of commodities. yet. However. and together these phases form a fInished good sold in the global marketplace. development assumes a different meaning. using chopsticks made with wood from lndonesian or Chilean forests. synchronizing their macroeconomic policies by adopt­ ing a conunon currency. . global economic integration is transform­ ing development into a process of globally organized economic growth. In the past. Consumers on both sides of the Atlantic wear clothes assembled in Saipan with Chinese labor. these forms of development have different goals: (1) They focus on basic needs rather than the rising material expectations that we associate with the consumer culture. Some researchers. and it is important to understand that they are very much related to one another. drink orange ju. The chain metaphor illuminates the interconnections among producing communities dispersed across the world.4 billion people in developing countries. The fast food eaten by North Americans may Illclude chicken diced in Mexico or hamburger beef from cattle raised in Costa Rica. It is transfonning the scale of econoffilC development. have noted that the Illgredlents of a container of yogurt-from the strawb erries and milk to the cardboand and ink for the carton-travel more than 6. The point is that droelopment and globalization have become synonymous for business and politica. there 15 a sequence of production stages. depending on taste. These are the two major currents of "development" today. and Mexico signed NAFTA in 1994. The Japanese eat poultry fattened . or parts thereof. In any one network. Sociologists call the networ ks com­ modity chains.000 miles to the market in Germany. Renato Ruggiero. Commodity Chains and Deve/opment The global marketplace is a tapestry of networks of commodity exchanges that bllld producers and consumers across the world. for exam­ ple. The British and French eat green beans from Kenya.9 As more and more goods and services are produced on this transnational scale.]0 • The 1998 United.ice from concentrate made with Brazilian oranges. MeXIco with fertilizer from the United States. and decorate their homes with flowers from Colombia. While we may experience consum ption individu­ : ally. our coffee is from Southeast Asia the Americas. And. III ThaIland with American com. globalization is now perceived as indispensable to development. the global marketplace is quite uneven in its consequences: • With the cq1Japse of Soviet communism in 1989. for example. but the trend toward these worldwide supply networks is powerful. and (2) they view participation. As the former WTO director. blue jeans assembled in the Philippines. to streamline the European economy and give it a global competitive edge. but we an: global consumers. Canada. in the case of the European Union. as some regions and populations survive and prosper and others decline. Russia joined the global capitalist dub only to experience a dramatic compression of living standards for most Russians. as their gross domestic product declined 52 percent in the 1990s. This initiative gathered steam when the United States. Canadians eat strawberries grown in .

quality control than some other countries. which. As fashion and design change.wan Global Networks In today'S world.000 Indonesian contract workers eanning less than commodity chains (see Figure 1). But a shoe that costs Nike $20 $15 if made in Indonesia or links of these China. nevertheless. T iwanese.-based athletic shoe industry. Europe. so may the location of production. Depending on political and/or eco­ nomic conditions. South Korea and T aiwan are among the more reliable Sites. the interdependencies among people. cutting.LntToouctlon lack access to sale sewers. Any shopper at The Gap. communities. many marginalized communities are responding by developing their own sur­ vival stra tegies. say) as well as materials and labor from many places in the global marketplace. for example. This step remains primarily in the United States. Chinese. Then there is the labor of producing the synthetic materials. the initial labor is related to ille symbolic side of the shoe design-and marketing. These forms of labor are all relatively unskilled and often performed by women. of dyeing. and Filipinos. In this sense. were assembled by some 120. Some say that the World Bank is merely trying to stabilize communities that have experienced marginalization from the global marketplace. "The Story of a Shoe. and of assembling. development expresses relations of power. In the U.12 Relocating production is a routine part of any competitive firm's operations today. Marchi April 1998.h and nutrition for everyone in the world!'1 In the context of globalization and rising global inequalities. Just as all humans eventually breathe the same air and drink the same water. packing. met the legal minimum that applies to more than half of Indonesia's SO-million labor force. and 20 percent have no access to modern health services of any kind. Etc. • XXXI DISTRIBUTION North America. generally having greater capacity and greater . TI1e average African household today consumes 20 a percen t less than it did SHOE BOX United Simes quarter of a century ago. espe­ cially South Koreans. although a starvation wage. and with them labor costs and management patterns. • Th e I BOXED SHOES Indonesia $17 billion spent annually in the United States and Europe on pet food TISSUE PAPER Indonesia exceeds by $4 billion the estimated annual additional cost of providing basic healt. consumers enjoy the fruits of others' labor. knows that this clothing retailer competes by subcontract with such labor forces through local firms in the regional production sites. Nike's expensive trainers. SHOES II/dol/esia I RAINFOREST TREES TAN NED � POL YURETHANE AIR SAC United SIQfeS ETHYLENE VINYL ACETATE FOAM South Korea � � PETROLEUM Saudi Arabia Indonesia SYNTHETIC RUBBER T aiwan LEATHER South Korea I COWHIDE United States / ""BENZENE T a. The global labor force is dispersed among the production Figure 1 I A Commodity Cham for Athletic Shoes on export from South Korea may cost only COAL T aiwan � Source: Bill Ryan and Alan During. such as micro-credit distribution. a Companies such as Nike $3 a day. Development agencies such as the World Bank are noticing this and channeling funds to nongovern­ mental organizations (NCOs) that are involved in these grass-roots endeavors. both material and cultural. in the 1990s." World WaJdl. 67 peocent have no access to dean water. Firms reroute the production chains to stay competHive. Indonesians. worth $150 dollars in the United States and Europe. we consume an image (of aesthetic Or athletic dimensions. 25 percent have inadequate housing. and trarlSporting. and stitching. When we consume. and nations are ever present.s. the initiative of marginalized peoples is forcing the development establishment to alter the way it does business. a company such as Nike will shift a substantial part of its production t6 these lower-wage sites. In fact.

Employers presume that women are mOre suited • • costs. cherries. and cantaloupes. brOCCOli. education. pears. but the scale and ing the winter months. Women are considered more reliable as workers than growth and to handle frujt and can be trained to monitor plant health and to the work efficiently. among and within nations (even the affluent ones)? Second. and frozen vegetables. and chilies to Europe. cessing. In an era when much of this produc­ tion is organized by huge food companies that subcontract with growers and seU in consumer markets across the world. The key to this kind of flexible organization is to use far-flung subcontractors who can be brought on line or let go as the market changes. In short. The people who work for these subcontractors often have little security. insurance. are are . and Kenya exports strawberries. harvestin . mangoes. a transformation that is redefining the parameters and meaning of development.g. The on our lives. our complex We canno understand the consequences of disturbances in and biosphere without taking account of world·scale sodal transformations s. are these only temporary competitive strategies by firms to reduce g. and industry. Growers find that their work is defined by le supply of products firm to maintain its market image and a predictab rs across the world.. the global fruit and salad bowl is bottomless. First. or is the world being J'eStratiJied into low. marketing)? • across the world mto Nat only does this need for flexibility bring growers down. and Mexico supplies American supenmarkets with vegetables are being grown under corporate contract by peasan ts and agricultural laborers around the world. Caribbean nations produce bananas. The topic raises questions. proseasonal and intermittent employment practices (e. peaches. desirable to consume requirements. and packing) necessary to mount a f] eXl s of work Increasingly. So not only is the job insecure. Firms must remain flexible to compete in . It is difficult to imagine of social networks across the world that produce our mar­ changing web product we ket culture. retailing. seems almost natural. apricots. As discussed in Chapter 1. and Japan to the "developing countries" is a short-term or a long-term trend. world reflects the uncertainties of an increasingly competitive global market. for example. stress on natural resource t Along many of the commodity chains that sustain our lifestyle Many people who experience globalization in quite different ways. finance. apples. firm. iJ · b le operation. citrus fruits. bell peppers.and high-wage regions. as weU as its far-reaching effects But we disregard these connections at our peril for several reasons: • tomatoes. these growers face new conditions of work. do those jobs that shift "south" descend a wage ladder toward the cheapest Jabor. Job security varies by commodity. most contract men. b ut It a Iso competition with one another as firms seek to keep costs s of quality and means that the produce itself must meet high standard the needs of the consistency. but rising employment insecurity across the ed greatly in recent profitability of export food production have expand world consumers have decades as the nwnber and concentration of the global marketplace. or state­ We are likely to misinterpret social upheavals (including stateless the world if we ignore the contributions of global based terrorism) ac ih u • ross • processes to political and economic instability. We do not think about the global dimensions of the or store.lntroduction xxxiii changing its styles on a six-week cycle..g. in China? Third. Chile exports grapes. the needs of the global market shape the condition and livelihoods in cmrunwtities across the world. We hear a lot of discussion about whether the relocation of jobs from the United States. ket. Thailand grows pineapples and asparagus for the Japanese market. Europe. And we do not think about the power purchase at a supermarket mar­ of transnational firms that shape the global market and Its rules. grown. but its very performance is also shaped by global market growing of fruits and vegetables IS done by Again. and avocados to the United States dur­ situating We can no longer understand the changes in our society w t o t them globally. cucumbers. being one of the srnaU links in this global commodity chain. they women. tribution of jobs on a global scale is an indicator of a profound transfor­ mation under way in the world. More and more fruits and We examine such questions in the following chapters because the redis­ The Social Web of the Global Market the Globalization is ultimately experienced locally. Another example from the global marketplace concerns conditions of ill ustrated in the global food industry. work. non-Europeans have been producing spe­ cialized agricultural products for export for some time. are "mature" economies shedding their manufacturing jobs and becoming global centers of service industries (e.

And this connection is obscured by our customary view of development as a national process. if not mOre so. may have considerable effects on producers and producing regions where they are made. although the cOlUlections are not always direct. Not only are producers and consumers linked across space by commodity chains.not consumers of commodities: Four-fifths of the roughly 6 billion people in the world do not have access to consumer cash or credit. sant cornrnuruty. even withi" the unequal relations between "developed" and "developing" societies. Less obvious. local. food crops and live stoc . Brazilian peasants have been displaced as their land has been taken for rugh-tech production of soybeans for export to feed Japanese livestock. but a loca disp lace not only a pea also may g. Their dramatic encroachment on U. We seldom remember this. It forced the industrialized world to see a link between poverty and environmental destruction. New IntematiOJlalist. more than 25 percent of America. During this time . the more interdependent become the fortunes of laborers. A brief examination of footwear and hamburgers demonsrrates how products that may be everyday items of consump tion. A footloose firm seeking lower wages can do the same thing. for example. they are often the producers of what we consume. is linked to the expanding global market. to human physiological health as a consequence of two forms of malnu trition: (1) processed food and sedentary lifestyle mal­ nutrition and (2) mainulTition from lack of adequate. is the precipitating cOlUlection between rising Figure 2 Source: demand for aninlal protein in the Northern Hemisphere and rain forest destruction. A new food preference in one part of the world will intenSify export agriculture somewhere else. and con­ sumers across the world. however. 353 Overweight case study of the "hamburger connection" opposite outlines one such instance of world-scale social transformation with distinct local effects.. l culture of /led . b ut I. A change in fashion can throw a whole pro­ ducing community out of work. and their societies are shaped as profoundly by the global marketplace as ours. particularly in the wealthier segments of the global market. we see that they are often tenuous and Wlsustainahle. . Since the 1970s. As we begin to examine the social links. In economy.ilcation maY ted to agri-exporting) agrarian cultures conver Y for a nme. healthy food choices eve .+ CASE BTUDY The Hamburger Connection ming rates in CenlTal forests disappeared at alar Between 1960 and 1990. there are costs on both sides­ in this case. The intensification of I. nutritious food supplies. Intensl. the CenlTal Amencan . the security of a contrac to a more compen tive munity'S vulnerability also increase that com fertility and wages n the variability of land producer elsewhere. . but these links also have profound social implications. Figure 2 suggests that. lending inlpetus to the 1992 Earth Sllnlmit. of fresh. Affluent consumer . give beef exportmg may s.'e k. and plies reduces the sup ply access to global food sup ermarket cultures or Ul · rywhere (w hether Ul sup . ff r .e forest captured the world's attention in the 1980s. The shed and Percentage of Population Malnouri (2003): 20. making i t even more difficult for us to view this episode as a global dynamic with particular local effects. Rain forest destruction. terwoven with th econOffilC steers.H Even SQ. and t he mob·lit y of firm liX . The more links that are made. These people have migrated en masse from the Brazilian southeast to the Amazon region to settle on rain forest land. t t to a grower commumty . producers. It also may affect s ecia lized pasturing of wa to the world s) resource well as that nation's (and pri ritie of a nation as :: � : � base.

And ? compensate for the declining local food supply and although money makes this world go around. the.nto and connect physicaUy separate communities. once communities are integrated in the new time and space of the global market. �e integration of producers and consumers across space as Se-cond. turning footwear into fashion. the effect is felt by a variety of groups in the global economy. Thailand. . Dimensions of Social Change in the Global Marketplace The changing composition and rhythms of the global marketplace con­ nect people and development conditions across the world. and the Inter-Amencan Development Bank (IADB).Introduction xxxvii mto hamburgers. psychological. Consider again the dynamics of the beef chain. whole countries (e. About one-tenth of American burgers use imported beef. is the cost of a hamburger? SOl/rees: Myers 2001) can plumme t into material. If oil prices spike. • �orest was converted to pasture for cattle that were. product deSign. o r rather our sense of it. Not only does rising hamburger consumption incorporate new grazing regions into the global marketplace. the burning of forests and grazing of livestock intensify the threat to future generations of global warming. The Central American beef industry has had powerful institutional support through government loans assisted by the World Bank. Few people realized that consuming a hamburger might also involve consunung forest resources or that Central America's new beef industry would h ve vast enVlfonmental and social consequences. they are increasingly subject to decisions made by powerful market agencies such as governments. firms. and political crisis overnight. beef consumption developed and grew throughout the century-long process of settling the American (rural and urban) frontier. Today. generates new and evolving employment opportunities in the United States (specialty shoe stores. however. the Agency for International Development (AID). forcing them to adapt in a single generation. We are seeing the actions of humankind endangering the habitability of the planet.. Capturing market shares by designing fashion and finding cheap labor sites is the name of the game. for example. converting their habitats to pasture. The Costa Rican government had to use beef export earnings to purchase basic grains on the world market t to feed the country s people. The current fast-food demard. this valuable export The global market's continual reorganization dramaticaUy affects the livelihoods of people and their life trajectories. Rijlrin 11992:192-93}. and South Korea. Argentina in What. from farmers to petro­ chemical firms to travelers. But ually reshuffles the employment deck and � this game contin­ people's futures. Place (1985:290-95).f there is a run on national currencies. its accelerated circulation compresses people's lives into a unilied social space (the global market­ place) and time (the rhythms and cycles of the global economy). Third. to an expanding fast-food industry in the United States. much of it produced under contract for transnational food companies by Central American meat-packing plants. Such intercon­ nections have three dimensions: First. and currency or commodity speculators. Here the long run. and marketing) and in East and Southeast Asia (produc­ tion and assembly).g. but this new space itself also has its own time. On the broader scale. I. compresses the mod­ ernization process for forest dweUers and Indian peasants. in tum. the production of peasant staple foods declined. a firm that establishes an export site in a community brings new work disciplines in the production of goods for the global market. 11981:7}. this spatial integration introduces new dimensions of time as world market rhythms enter i. and displacing many of them to urban fringes. The plan was to tie the development of Central American societies to earner. converted For instance. is comp romised by the finiteness of biospheric resources: perhaps the most dramatic effect of the compression of space and time. Deforestation was linked. These conse­ quences mclude the displacement of peasants from their land and forest dwellers from their habitat because more than half of Central American land was committed to grazing cattle. is � • commodlhes cnsSCross political boundaries. In the United States. as in the 1997 Asian financial crisis. As financial markets are deregulated. then. the athletic shoe industry. whole populations can suffer as they have in indonesia. by way of the global market­ place. As less land was available for farm­ ing.

globally organized economic growth. failure of many countries to fulfill this promise of development and . Development and economic growth are active goals. state bureaucrats pursued economic growth to finance their militaey and administrative needs. The development debate is re-fOnning around a conflict between priv­ . but less and less does it resemble the conventional definition of develop­ ment as natumally orgamzed economic grlJWth. interest­ ingly. allowing two overlapping eras. But "develop­ ment" as such was not yet a universal strategy. ties. � �OICes to m�ke development more democratic and participatory. the world is confronted with a new formulation: an imperial project. at whatever scale necessary to sustain sOdal life. The world-historical framework is important because it allows us to link the changing trajectories of development across the world and those within particular countries. The major thrust of this book is to make these ten­ sions intelligible by situating them within a world-historical framework. who fashion their lives according to natural cycles. educahon and health. ruty declSl0ns and to enjoy human. healthy environments. partly because the latter failed and partly because the former became a new exercise of (market) power acrOss the world (as transnational firms and banks grew and as neol.l:. The globalization of this model. the global nature of economic activity. Each . given the evident development enterprise. and mechanisms. forcing a reevaluation of th We are now in an era of rethinking development. especiall y where non-Western cullUIes are affected. through examples of commodJty chains and their SOCIal and envirorunental impacts. with quite vaeying success. economic and political freedoms. and sustainable material prac­ tices? Both visions are confronting a changing world-possibly a declin­ ing world-of which each is increasingly well aware. rather than narural processes. as the sole militaey superpower. and Imperial Projects This introduction illustrates. In this book. The dilemma resides. inequality and tension are growing within both North and South as globalization intensifies. Or do we find a way . Japan. spiritual coherence. In this context sustainability has become a popular issue. practices.X XXVIII Uevelopment and Social Change lntToduction xxxix Development. the shortcomings of wruch have prod uced two responses One is to advocate a thoroughly global market to expand trade. The b sic o jective of human development is to enJarge the range of � hese people s � chol�es should mclude access to income and employment opportun. As the twenty-first century takes hold. partly. Globalization. This inequali ty is often expressed in the tension between the "haves" and the "have-nots. T that end.ical shift in tile foreign policy of the United States. Latin America." or between the North (Western Europe. These visions echo the elemental conflict between profits and meaning stemming from the rise of Western rationalism. Development may still be pursued by indJvidual nation-states. in the unequal power between W estern states and firms and non-Western states. This is the legacy of the late twentieth centucy. �divid�a� should also have the opportunity to participate fully in commu. restructuring states and societies everywhere). to be jux­ taposed with one another to evaluate their different goals. and spread the wealth. and communities. and political-economic and discursive ways of ordering the world. and a clean and safe physical environment. But. therefore. Each concept is an organizing concept. With the nse of modem European capitalism. The 1991 UN Human Development Report states. this account is organized by two o major concepts: the development project and the globalizntion project. firms. based in technology and market behavior.iberal ideology took hold. We this briefly in Chapter 8.i. under th � examine aeS's of powerful corporations. W know e that human communities (however defined) can recover social intimacy. The globalization project succeeds the development project. It became so only in the mId-twentieth centucy. is likely to generate cullUIaI tensions. and Asia). and North America) and the South (Africa. This book traces the changing fortunes of develop­ ment efforts. The other is to reevaluate the economic emphasis and growing global inequalities and � to recover democrahc and sustainable communities. ilegmg the global market and privileging human communities: Do we contmue expanding industry and wealth indefinitely. we examine the ways the world has moved from nationally organized growth toward this from observing still-existing communities of for­ est dwellers. as newly independent states joined the world com­ muruty and the rush toward development. arising out of a rad. the world s growmg awareness of environmental limits.

PART I The Development Project (Late 1940s to Early 1970s) .

creating undesirables such as menacing paupers. railways. schooling. as the Improv� ent 0: humankind. where.' Across the colonial divide. political leaders had to operate in an international framework that was not of their mak­ ing but through which they acquired political legitimacy. development was under­ � In the nineteenth century. As we shall see. But first we must address the historica l context of colonialism. rational order. develop". Practi cally. and rising British. It meant formulating govern ment policy to manage the social transformanons wrought by the rise of capitalism and industrial tech­ nologies.ent was understood. While it may have been experienced by ineteenth-centu ry Europeans as something � . industrial and market expansIOn and regulating its disruptive social effects. the Egyptian state (under suzerainty of the declining Ottoman. as . and the postcolOnial context was founded on inequality-embedded in modem ideals of sovereign nation-states. I Development meant balan cing the apparent Ulevltabdlty of technological change with soda I intervention­ understood idealistically as aSSisting human society in its development and perhaps realiSticaDy as mana ging citizen-subjects experiencing wrenching SOCial transformations. this social engineering impulse framed European col­ OnIzatIOn 01 the non-European world .lnstituting the Development Project 3 Here. For example. Non-European cultures were irrevocably changed through colonial­ ism. industrialism was transforming English and Egyptian society alike. These effects began With the displacement of rural popu la tions by land enclosures for cash CroppUlg. and unple ant factory towns. in 1843. breaking down social customs and producing individual subjects who confronted a new. Development became. But what is development? D Unsurprisingly. including forced labor schemes. How that framework emerged is the subject of this chapter. telegraphs. producing new forms of social discipline among laboring populations and middle-class citizen-subjects. So development was identified with boU. empire) introduced the English "Lancaster school" factory model to the city of Cairo to consolidate the authority of its emerging civil service. The proverbial "white man's burden" was an interpretation of this apparently natural relation of superiority and an invitation to intervene. When newly independent states emerged. . while industrialism produced new class inequalities within each society. Egyptian students learned the new diSciplines required of a developing society that was busy displacing peasant culture with plantations of cotton for export to English textile mills and manag­ ing an army of migrant labor building an infrastructure of roads. Subject populations were exposed to a variety of new disciplines. Forms of colonial subordination differed across time and space. in the name of I Instituting the Development Project development. and ports. 2 stood by polmcal ehtes as social engin eering of emerging national societies. compared to Europeans. colonial development produced a racial­ ized fonm of international inequality. canals. some of which were more equal than others. . but also colOnial administrators assumed the task 01 developing. their subject popula tions . Punctuality. but the overriding object was either to adapt or marginalize colo­ nial subjects to the European presence. and in the domestic social inequalities introduced by colonialism. Not only did colonial plunder underwrIte European industrialization . philosophically. or controlling. then. development served a legitimating (unction. restless prole­ tarIans. specIfically European. over hme It carne to be viewed as a universal neces­ sity. This draws attention to the relations of power in development. and regularity were the hallmarks of the new diSCipline of adap ta tion. evelopment emerged during the colon ial era. and segregation in native quarters. which they reproduced and/or resisted. an extension of modem social engineer­ ing to the colonies as they were incorporated into the European orbit. task specialization. native peoples appeared backward.

and public museums. in its mis­ This comparison was inter­ preted. gender. (Conlin ued) envirorunent. Ihe cultural genocide or margi nalizalion of indigenous people. and their location in a long process of settlement and migration through the lands south of the equator. the land. depriving WOme or n o Iheir cuslomary f resources. ranging from death to submission and jday j f f eriority to a varieh o resistances: from even internalization o inf orms to sporadic uprisings to mass political mobilization. and casle lhat continue to disrupl postcolonial societies. Ihe con fiscalion o personal and Com­ f mon land f cash cropping. ils private interests. which makes us eminently entitled to protect and lead the races lagging behind us. French colonial historian Albert Sarraut claimed in . and the elevation o elhnoracial dif f nces (such as priVileg­ fere ing certain casles Or Iribes in Ihe exercise of colonial rule). as European and non­ European cultures compared one another within a relationship in which Europe had a powerful social-psychological advantage rooted sionary and military-industrial apparatus. the Europeans perceived the Indians and aborigines as people who did not "work" the land they inhabited. a concept in which Europe viewed itself as the bearer of civilization to the darker races. static and only occupying. It concerns the social psychology of European colOnialism. The out­ comes are. meditahon and intellectual progress aided by the very influence of our temperate clima te---a magnificent heritage of science. AfrIcan commuruhes changed their composition. Colonialism has two forms: colonies o settlement.� . cultural treasures. they developed methods for survival. and colonies of rule. as well as backwardness versus modernity. In precolonial Africa.l J l t: L/t"\'ClUpmCm nOJect lLate 1940s to Early 1970s) Instituting the Development Project 5 Colonialism (Continued) Our appeal to history begins with a powerful simplification. : 1923. first. the elab­ nial power. long centuries during which-slowly and painfully. where coloni al administrators reor­ ganize existing cultures bt imposing new inequ j alities to f acilitate their exploitation. Examples o Ihis are Ihe Brilis f h use of local landlords. rathel than improving. they had no right of "property"-a European What Is Colonialism? concept in which property is private and alienable. built largely around stereotypes that have shaped perceptions and conflict for five centuries. or misinterpreted. the f ertraction o labor. second. European colonists in Africa. invention. through a lengthy effort of research. It predates the era of European expansion (fi fteenth to twentieth centu ries) and ertends to Japanese colonialism in the twentieth century and. which o f ften eliminate indigenous people (such as the Spanish destruction of the Aztec and Inca civilizations in the Americas). It was easy to take the next step and view the difference as "progress. and the European colonial empires are depicted in Figure 1. over time. Their removal from their ancestral lands is a bloody reminder of the combined military power and moral fervor with which European colonization was pursued. The experi­ ence of colonial rule encouraged this image. Such a powerful misinterpretation-and devaluing--<>f other cultures appears frequently in historical accounts. It is reflected in assumptions made by settlers in the Americas and AustralaSia about the mdigenous people they encountered. 10 rule parts of India. These methods were at once conservative and adaptive because. It should not be forgotten that we are centuries ahead of them. most recently. and fi th.1. and resources to ennch Ihe colo­ ourth. as European cultural superiority." trapped in their tradition. various f j responses bt colonial subjects. Chinese colon ization o f Tibet. however. f f f oratioll o ideologies just(fying colOnial rule. the idea of the "white man's burden" emerged. their scale. In each case. In other words.) One such percep­ tion was the idea among Europeans that non-European native people Or colonial subjects were "backward. as communities achieved stability within their Colonialism is Ihe SUbjugation by phYSical and psychological f orce o f one culture by another-a colonizing power -through military con­ quest o territory and carica turing the relatio f n between the two cul­ tures. relymg on kinship patterns and supernatural belief systems. Under these mcurn­ stances. experience and moral superiority has taken shape." something the colOnizers could impart to their subjects. saw these superstitious cultures as . zamindars. Ihe inlroduclion o new lensio f ns around class. race. Ihird. This percep­ tion ignored the complex social systems adapted f st to African ecology and then to European occupation of that ecology. mc/udmg notrons o racism. f (Colonialism is defined and explained in the foUowing insert.

lacked leadership hierar­ f chies and were more easily wiped out by settlers. corresponded to divisions o f (Continued) 6 . "When the white man came he had the Bible and we had the land. however. orga­ nized by kin relations. their spirihlal life was compromised insofar as it was cormected to thei. By contrast. Unlike North American Indians. when non-Europeans lost control of their land. Cu/tures varied by the diff rentiation among their e members or households according to their particular ecological endow­ ments and social contact with other cultures.lnStltuting the Uevelopment PrOject 7 The ensuing colonial exchange. The variety ranged from small communities o subsistence producers (living o the land or the f ff f orest! to extensive kingdoms or states. and crafts.r landscapes. Caste distinctions." Village and urban artisans produced a range o metal goods. including sophisticated muslins and silks. and they organized cooperatively-n practice that o ften made them vulnerable to intruders because they were not prepared f sel -defense. linked to previous invasions. was captured in the postcolonial African saying. f pottery. These cultures were highly skilled in resource management and production to satisfy their material needs. They gen­ erally did not produce a surplus beyond what was required fat their immediate needs. harvested wild frllits and nuts. the Mogul empire ill seventeenth-century India had a complex hierarchical organization based on local chief doms in which the chief presided over the village community and ensured that su rpluses (mone tary taxes and produce) were delivered to a prosperous central court and "high cutture. who CII lti­ vated and processed crops. When the white man left we had the Bible and he had the land. Subsistence producers. What Are Some Characteristics of Precolonial Cultures? All precolonial cultures had their own ways o satis Jing their material f ft and spiritual needs. such as those o Australia and the Amazon. some aboriginal cultures. and women. whose social organ i­ or f zation provided leadership for resistance. usually subdivided social tasks between men. It was difficult to sustain material and cultural integrity under these degrading extractive processes and conditions. and per­ f ormed household tasks. who hunted and cleared land for cultivation." Under colonialism.

. �a. Bujr. potatoes. who assumed that non-Europeans would and should emulate European social organization. ". cacao... precious metals. this specialization between European economies and their colonies came to be termed the colonial division of labor. The non-European world appeared ancestral to the colonizers. illustrated in Figure 1. The sys tematic handicapping of non-Europeans in this appar­ ently natural and fulfilling endeavor remained largely unacknowledged... u . Perhaps the best-known destruction of native crafts occurred through Britain's conquest of India. The problem was that the ruling Europeans either misunderstood or denied the integrity of non-European cultures. for export. where local farmers produced a single crop. Not only did non-European cultures surrender their own handicraft industries The Colonial Division of Labor From the sixteenth century. IV c.. On a world scale. OJ ..2... Until China seas seeking fur. cultivating. sllch as trading.':tV!. And then there was the paradox of bringing progress to colo­ nized peoples denied their sovereignty-a paradox experienced daily by the non-Europeans.. and missionary efforts accompanied colonial rule to stimulate progress along the European path. . it forced non-Europeans into primary commodity production. such as peanuts or cotton... sugar. This paradox fueUed the anticolonial movements seeking independence from Western occupation. Development came to be identified as the destiny of humankind. typically undermin­ ing local crafts and mixed-farming systems and alienating their lands and forests for commercial explOitation. weaving. In tum.. The European colonial powers-Spain...v. exchanged manufactured goods such as cloth. and Britain-and their merchant companies ihe nineteenth century.2 The "Colonial Division Their Co lonial Empires of labor" between European Stales and guns.� . Being left holding the Bible was an apt metaphor for the condition of non-Europeans who were encouraged to pursue the European way. they reorganized the world. tobacco.. and performing unskilled labor. Colonial subjects pow­ erfully appropriated European discourse of the "rights of man. European colonists and traders traveled along African coasts to the New W orld and across the Indian Ocean and the in this exchange. education.. Figure 1. The basic pattern was to establish in the colonies specialized extraction and production of raw materials and primary products that were unavailable in Europe. often without the resources to accomplish this. but also their agriculture was often reduced to a specialized export monoc ulture. and cotton.. HoUand.. In the process. . . Colonizers typically adapted sllch social and political hierarchies to their own ends-alienating indigenous political systems from their customary social functions and inClibating tensions inherited by postcolonial states.t:I U: 1. ruling. Sources: Rowley (1974). W estern secular and religious crusades in the forms of administration. (1992). 'UJC:\." raising it as a mirror to their colonial masters and adopting it as a mobilizing tool for their independence struggle. these products fueled European manufac­ turing as industrial inputs and foodstuffs for its industrial labor force. Indian muslins and . Portugal. While the colonial division of labor stimulated European industrializa­ tion.. Specialization disorganized non-European cultures. just as non-European scientific and moral achievements and legacies in European culture were generally ignored. and implements for these products and for Africans taken into slavery and transported to the Americas.allY l�/VS) Instituting the Development Project 9 (Continued) labor.. slave labor. spices. Handicraft destruction was often deliberate and widespread. France..

the Manchester of India. Indian and Chinese peasants and handicraftsmen. as British-built railway systems moved Indian raw cotton to coastal ports for shipment to Liverpool and returned to the Indian countryside with machine-made products that undermined a time-ho nored craf!. and recruitment In the third quarter of the nineteenth century alone. more and more subjects to work in cash cropping.000. By that time.'" The compan y had con­ vinced the British government to use tariffs of 70 to 80 percent against Indian finished goods and to permit virtually free entry of raw cotton into England. coffee. Dacca.lnstitunng the Development Project 11 for the British crown until 1858) undermined this Indian craft and. jute. opium. the technologies of the global market under­ mined the customary system of grain reserves organized at the village level as protection against drought and famine ' . tea. populous. labor. tobacco Cocoa Wool Rubber. ."6 While native industries declined under colonial systems. local food crop production declined by 7 percent while the population gnew by 40 percent. ' . scattered to sugar plantations in the Caribbean. As European industrial society ma tured. and the jungle and malaria are fast encroaching upon the town . tobacco. production of commercial crops such as cotton. depending on local agri-ecologies (see Table 1 . calicos were luxury imports into Europe (as were Chinese silks and satins). With the telegraph coordinating speculative price hikes. more than one million indentured Indians went overseas. . peanuts. local farming cultures lost their best lands to commercial agriculture supplying European consumers and industries. and to British East Africa to build the railways that intensified the two­ way extraction of African resources and the introduction of cheap manu­ factured goods. tion (with food and raw materials) at the same time that it disrupted non­ European cultures. rubber. Sir Charles Trevelyan testified before a British parliamentary com­ mittee that the population of Dacca "has fallen from 150. T oday. wheat Sugar. 1 ) . In India. or indentured." By 1840. As the African slave trade subsided. British traders flooded India with cheap doth manufac­ tured in Manchester. impoverished by colonial intervention or market compe­ tition from cheap textiles. exploding urban populations demanded ever-UlcreaslOg Imports of sugar. producing specialized tropical exports ranging from bananas to peanuts.1 Colony Australi a Selected Colonial Export Crops Colonial power Britain Export Crop Braz. the East India Company (which ruled India Table 1. Industrial technology (textile machinery and steam engine) combined with political power to impose U. rubber Indonesia IvOry Coast Kenya Malaya Holland France Britain Britain France Britain Social Reorganization under Colonialism The colonial division of labor devastated producing communities and their craft.iI Portugal Belgium Bri tain Congo Egypt Ghana Haiti [ndia Indochina Britain France Britain France Wool. d iamonds movements along a network of railways responded to London prices rather than local need. employing a for indentured labor contracts. "succeeded in converting India from a manufacturing country into a country exporting raw produce. Indians Sbll .000 to 30.and agriculture-based systems. land grabbing. . and sugar cane grew by 8S percent between the 1890s and the 1940s. in that same period. the . has fallen off from a very flourishing town to a very poor and small town. In contrast. taxation. Worse than the fact that "Londoners were in fact eating India's bread" was the destruction of Indian food security by modem technolo­ gies. however. timber. The colonial division of labor developed European capitalist Civiliza­ . palm oil Peanuts Gold.e colonial division of labor. Fiji. ivory Cotton Cocoa Sugar Cotton. Plantations and other kinds of cash­ cropping arrangements sprang up across the colonial world. and Natal. coffee Rubber. Britain came to depend on India for almost 20 percent of its wheat consumption by 1900. cocoa. In tum. in the mid-eighteenth century Robert Clive described the textile . and the expanding factory system demanded ever-increasing inp�ts of raw materials such as cotton. Thus. and jute. grain Senegal South Africa Rubber. in its own words. a shift that spread hunger and social unres t ' Using revenue and irrigation policies to force farmers into export agriculture. tea Rice. to rubber plantatiOns in Malaya and Sumatra. city of Dacca as "extensive. colorusts forced variety of methods such as enslavement. When the British first carne to India. and rich as the city of London. tea. the Europeans created new schemes of forced. and vegetable oils from the colonies. Mauritius. .

" And just as the concentration of industrial labor in European factory towns produced labor organiza tion. Was the domin ant concep tion in the mld-twentlelh centuf}...t . wealth. . Tllis means thaI development is an intema tiOMI and unequal relatwnshlp (j ounded on somef orm o colonization). and Ollr task is to consid l er why this was so thell-and why now. and southern Africa. . reducing women's control over reSOurces and lowering their status.v . and plantations to produce exports sustaining distant European factories. and laborers Ln the colonies with European proletarians-provisioned with cheap colonial products such as sugar. they make up SO percent of the Guyanese 40 percent of the residents of Trinidad. traditionaUy women's responsibility. then developmenl was more than a national process. . legal. Globally... and authorityu Elements of the modem state were deployed in the colonies.. Male entry mto cash cropping disrupted patriarchal gender divisions. convict. This was In other words. W were often elisplaced by new systems of private property. non-E uropean regJon. and contemporary fiction. circ umscribing food production.. connecting slaves. where. i t is important to summarize the unequal soaal structures of colOnialism related to the colonial division of labor: Development and Underdevelopment.. \ . fields. ff We f ocus here on the cotunial division of labor because it isolates a key issue In the development puzzle. then the conventional. In the same period.. Colonial systems of rule secured supplies of colonial labor.. indus­ f.. a landed oligarChy (the harenda­ Colonialism was f ar-reaching and multidimensional in its e ects.000 went to California to work in the fruit industry.. universities.. Non-European societies were funda­ mentaUy transformed through the loss of reSOurces and craft traditions as colonial subjects were forced to labor in mines. in a rapidly integrating world. and on the railways ' 90.. But by vlewmg world inequality as relatio nal (interdependent) rather than as sequential (catch-up). . tea.s queslwnable to think o develop f ment as an isolated natlOnat a�tlvlhJ· This. and urban surveillance. Before moving to that task.. muse­ ums. in the . .5 percent of the melian population) " Native rulers were bribed with titles." While the Europeans cons tructed a caricatured knowledge of their subjects ("Orientalism"). one after the other. the British presence never exceeded 0. modern understandmg o "development" comes into questio f n.. development is Increasmgly linked to globalization-in additi on to · examining the unequal f oundations o each. .1 7'*V!> IV . population and outnum�er native Fijians.. to supervise public health... colonial admin­ istrations were self-financing.• . so these methods of rule produced . Settler colonialism also spread to North America. . it is easy to take f ollr unequal world at f ace value and view it as a natural cantinllllln. or tax-farming privileges to rec ruit male peasants to the military and to force them into cash cropping to pay the taxes supporting the colonial state. with an advanced European region showing the way f or a backward.... . trml growth m Europe depended On agricultural manOCl/ltllre in the non-Euro!!ean wartd. As the industrial era emerged. ccsny l':J/US) Instituting the Development Project 13 gold fields. f dos) ruled South America before the nineteenth century in the name of the Spanish and Portuguese monarchies. peasantries.. for instance. instihltionalized in administration. Thus. British colo­ nialism in Kenya fragmented the Kikuyu culture as peasant land was con­ fiscated and men migrated to work on European farms.000 Chinese mdentured laborers went to work in the Peruvian guano fields.. where settlers used military. tribes.. By the end of the nineteenth century. ."l Imearf ashion. Unless we see the interde pendence created through this division o world labor. however. and 200. land. . development was realized through a racialized process of colonia l "underdevelopment. a global process. . . Australasia. I however. and so forth. vt". . labor forces. colonial rule (in Asia and Africa) grew more bureaucratic. Whichever way we f look at . For example." Colonialism Uri/ocks • Development Puzzle f Colonial Rule (New Syslems o Inequality). to regu late sexual relations. using an institution called encomienda to create a form of native serfdom. omen's customary land-user rights creating new gender inequalities.. and economic force to wrest land from the natives for commercial purposes and to access slave. colonial rule revealed the hard edge of power in the modem state . depending on military force and the loyalty of local princes and chiefs. The conven­ tIOnal underst�nding is that individual societies experience or pursue d�/opment.� .. their exercise of power in the colonies refined methods of rule at home and abroad.a . and tropical oils and cotton clothing .. to attach rural villages to commercial estates.. and indentured labor. using industrial and/or military techniques to organize schooling...1. and castes (especially important.

On the immense scale of humanity. ASia. independence struggles b y quoting Eleanor Roosevelt: "We are fighting a wax today so that individuals all over the world may have freedom. or civil servants. and Africa explored the paradox EUIopean colonialism-the juxtaposition 01 The Colonizer and the Colonized. the late eighteenth-century "Black lacobin" revolt power­ fully exposed the double standaxd of European civilization. In the French sugar colony of Haiti. soldiers. And it took the form of the nation-state. a history which will have regard to the sometimes prodigious theses which Europe has put forwal-d. Dutch. and Belgian states to withstand anticolonial struggles. Not only does it establish a fun­ damental discrimination between colonizer and colonized. The racist legacy of colonialism deeply penetrated the psyche of colonist and colonized and remains with us today.. and Chinese diasporas. sending tremors tluoughout the slaveholding the early nineteenth-century independence of the Latin American republics (from Spain and Portugal) to the dismantling Frantz Fanon. but it also lays the foundation for the immutability of this life. In 1957. the rebellious slaves 01 the Haitian sugar plantations became the first to lands of the New World " Resistance to colonialism evolved across the next two centuries. whose sovereign capacity to deliver development was shaped precisely by those relations (e. ery. responded with 01 South African 2002 and the The Wretched of the Earth (published 1967). . therefore. nationalist movements striving for independence. whether laborers. from gain their independence. Although decolonization has continued into the present day (with the independence of East Timor in Palestinians still struggling for a homeland). . is the highest expression of the colonial system and one of the most significant features of the colonialist. Veteran Nigerian anticolonialist and later president Nnamdi Azikiwe characterized African Humanity is waiting . understood as a product of struggle within these world-historical relations and. It was a seaxing indict­ ment of European colonialism and a call to people of the former colonies (the Third World) to transcend the mentality of enslavement and forge a To overcome this apparent immutability West Indian psychiatrist .14 1he Ueveloprnent Project (Late 19405 t o Early 197. of which the most horrible was committed in the heart of man. .. In this work (published in 1967). he claimed. slav­ . . These tensions fed the politics of decoloniza­ lion. there were racial hatreds. colonial division of labor. Colonial Liberation Freedom also involved overcoming the social-psychological scars of colonialism.If' rights and sovereignty against their own subjugation. rules of the postwar international order)-as this cha pter suggests. TUIning the rhetoric 01 the French Revolution successfully against French colonialism. ethnicity. at the height of African independence struggles. a sine qua not! of coJonial lile. . n sapped the power of the French.os) Instituting the Development Project 15 resistances among subject populations. It is a question of the lhird World starting a new history of Man. and nationality-generating ethnopolitical tensions that shape national politics across the world today-and questioned the modernist ideal of the secular state. After millions of colonial subjects were deployed in the Allied wax effort for self-determination against fascist expansiOnism from EUIope to Southeast Asia. Racism . apaxtheid in the early 1990s. colonial subjects across the Americas. the returning colonial soldiers turned this ideal on their colonial masters in their final bid for independence. and consisted of the pathological tearing apart of his functions and the crumbling away of his unity .a manifesto of liberation. peasants. the worldwide decoloniza­ tion movement peaked as European colonialism collapsed in the mid­ twentieth century. This cultural mosaic has reconstituted the relations and meaning of race. British. when World War new path for humanity. This means an equal chance for every man to have food and shelter and a min­ imum of such things as spell happiness."" Freedom was linked to overcoming the deprivations of colo­ nialism. He wrote. exploitation and above aU the bloodless genocide which consisted in the setting aside of fifteen thousand millions of men. writing from Algeria. Indian. but which will also not forget Europe's crimes. . The displacement 01 colonial subjects from their societies and their dispersion to resolve labor shortages elsewhere in the colonial world has had a lasting global effect-most notably real value. dedicating the American edition to 01 the EUIOpean discoUIse of the (colonized) American Negro.g. Tunisian philosopher Albert Memrni wrote Decolonization As Europeans were attempting to "civilize" their colonies. dedicated to molding inchoate resistance to colonial abuses into coherent. . Otherwise we fight for nothing of Diasporas. in the African.

Thus. Infusing the national movement with calls for land reform and agrarian modernization to complement indu strial development. Pakistan. The bloody partition of India in 1947 is another story that continues to reverberate have managed with the same kind of plough as existed thousands of years ago. Gandhi's approach flowed from his philosophy of transcendental (as opposed to scientific or historical) truth... the more it gets the more it wants. in return for his support of the British war effort. foreswearing use of the English language. Jawaharlal Nehru. and resonates today in al Qaeda terrorism against symbols of The Tensions and Lessons of the Indian Nationalist Revolt Perhaps responding to Fanon's plea for a new departure. Our ancestors. every villa ge will be a repub­ advocated the decentralization of social power. con­ tained.. Gandhi and Nehru are revered as fathers of independence and the Indian national state. An unexpected third strand appeared at the moment of decolonization as Mohammed Ali Jinnah (switching allegiance from the Congress to the MusUm League in the 1930s) led a middle-class movement to secure a new fragment state. Mahatma Gandhi's model of nonviolent resistance to British colonialism affirmed the simplicity and virtue in the ideal-typical premodern solidarities of Indian village life. They saw that happiness is largely a mental condition . we would become slaves and lose ow moral fibres. but our forefathers knew that if we set our hearts system of life-corroding competition . He notions of self-reUance. after due deliberation decided that we should only do what we could with our hands and feet. It follows. appeaUng to grassroots Algiers) Battle of lic or panchnyat having full powers. therefore. therefore. that every village has to be sell-sustained and capable of managing its affairs even to the extent of defending itself against the whole world. viewing Gandhian philosophy as inappropriate to the modem world but recognizing its importance in mobilizing the indepen­ dence struggle. therefore. Rather than embrace the emerging world of nation­ states. Independe nce must begin at the bottom. Gandhi viewed self­ Decolonization waS rooted in a liberatory upsUIge. anchored in a potentially reactionary Hindu reu­ gious imagery. how to invent machinery. He regarded machinery as the source of India's impoverishment. interest as undermining community-based ethics in the service of a mod­ ern state dominated by powerful economic and political interests. n o country can b e politically and economically independe nt. even within the framework of interna tional interdependence. galvanized rural India.. Together. set a lirrtit to Our restless bird. and celebrated in the form of a modem state. didactically.. that Indians became a subject popula­ uon not because of colonial force but through the seduction of modernity.mjtation. . the independence movement incubated within and struck at the French occupation from the native quarter. It was not that we did not know and our indigenous education remains the same as before. corporate and state military power and Western affluence. respectively. The use of terror against civilian populations symbolized the bitter divide between colo­ nizer and colonized (portrayed in Pontecorvo's classic film. as well as a realist strand looking struggle against empire was woven out of two strands: an idealist strand Sideways a n d �sserting that Indian civilization could be rescued. not only in destroying handicrafts but in compromising humanity: We notice that the mind is a CASE STIJDY While Gandhi's politics.We and still remains unsatisfied.. Gandhi argued. Nehru declared. Indian nationalism actually rode to power via the longstanding lneUan National Congress and one of its pro­ gressive leaders. unless it is highly industrial­ ized and has developed its power resources to the utmost. They. We have retained the same kind of cottages that we had in former times indulgences.. guided by a social morality deriving from human experience. proclaiming. and mistrusting the European philosophy of self-interest. Nehru represented the formative national state. I? of machin e-made goods. which would be almost Gandhi's method of resistance included wearing homespun cloth instead an obscene caricature..16 The Development Project (Late 1940s to Early 19705) Instihlting the Development Project 17 for something other from uS than such an i. in the context of the modem world. It can hardly be chall en ged that. expressed in maSs political movements of resistance-some dedicated to driving out the colonists and others to forming an alternative colonial government to asswne power as decolonization occurred. Gandhi disdained the violent methods of the modem state and the institutional rationauty of the industrial age. In Algeria (much as in Palestine today). What is interesting for uS is that the looking back and looking forward to a transcendental Hinduism anchored in Village-level seli-reuance. We have had no after such things..

144. family planning. personality. Already independent Latin American states adopted similar goals and. sex. 91. polillcal OPIJ1ion. The extension of political sovereig nty to millions of non-Europeans (more than half of humanity) ushered in the era of development. French Indo-China) and widespread colonial labor unrest. revolutionary ideologies of liberal­ nationalism."" In these terms. Latin American political systems came to be dominated by powerful coalitions of landowners and urban merchants. and modem armies and voting citizens.. ­ The UN declaration represented a new world paractigm of fundamen liberty and seCurIty to aU. the United States led an international project..I" lUJ�U' lLiite 1.Vl-' UICI. which informed nineteenth-century European natiOn bUlld­ ing via national education systems. These ideologIes also mformed the twenheth�century movements in Asia and Africa for decolonization. development was understood as a pragma tic effort to improve material conctitions in the colonies to preserv e the colonies-and there was no doubt that colonial subjects understood this and turned the promise of development back on the colonizers.. in fact. The decla­ ration also included citizenship rights. British colonialism faced widespr ead labor strikes in its West Indian and African colonies in the 1930s. as governments and people from the First and the Third Worlds joined together in a coordinated effort to stimulate economic growth. demanding freedom. and promote political citizenship in the new nations. of the economic. tol human rights of freedom. 105 new states joined the United Nations (UN) as the colonial empires crumble d. Eager to reconstTUct the post-World War n world to expand markets and the flow of raw materials. informed by the roclaimed equality as a domestic Universal Declaration of Human Rights (1948).4US to l:arly 19705) Instituting the Development Project 19 today in periodic violence between Hindus and Muslims.spensable for his dignity and the free development of his �N • . through national effort. Ali 12002:169-70). From 1945 to 1981. national language� and c� rrencies.. A new world order was in the making. and this pattern continued over the next two decades in Africa as British and French colonial subjects protested conditions in cities. offered a new model for national industrial development. Just as colonized subjects appropriated the democratic discour se of the colonizers in fueling their independence movements. public health. Other forms of resistance included militarized national liberatio n struggles (e. Portuguese African colonies. and something which helps them to get proper social services we shall deserve to lose the colonies and it will r only be a matter of time �efore we get what we deserve..g. social and cultural rights ind. The Latin American republics clothed theu oligarchic regimes with the French and U. Because of the profitability of export agriculture. 87. diversity. and transport and commw1ication systems to urban and rural populations. linking it to the ideal of sovereignty. During the nineteenth century.. color. national or social origin. Latin American commercial development centered on the pros­ perity gained through agricultural and raw material exports to Europe.. mines. which occurred as the United States reached the height of its global power and prosperity. "If we are not now going to do somethi ng fairly good for the Colonial Empire. and rising Islamic fundamentalism in the militadzed state of Pakistan. ports. that is. the possibility of converting subjects into citizens. 151). . and the pursuit of economic development for social justice. is it possible to see that a similar choice faces the world's peoples: between a path of centralized power. birth. 97. life. without distinction by race. As British Colonial Secretary Malcolm MacDonald observed in 1940. Even though the world is different now than it was in the time of Indian independence. language. nuclear tensions between the two states. citizens' rights to the social contract: Everyone "is entitled to realization.s. and property rights versus a path of multilayered powers.. eloquent appeals to justice in the language of rights and freedom in inter­ national fora by the representatives of colonized peoples held a mirror up to the colomal powers. and international co-operation and in accordance with the organi­ zation and resources of each State. In this context. monoculture. so leaders of the era and neW nation�states appropriated the idealism of the devel�pment and international goal. property."" Decolonization and Development Decolonization gave development new meaning. bring social improvements through education." This era waS marked by a sense of almost bound­ less idealism. swelling UN ranks from 51 to 156. equality. and citizen rights? Sources: Chalterjce 1200H6.• • •'- . and the railways.'e. Latin American political independence occurred in the 1820s as the older Spanish and Portuguese empires declined.. or other status. religIon. inspired by a vision of development as a nahonal enterprise to be repeated acrOSS a world of sovereign states. viewing development as an entitlement...

foUowed by a "civil war" against the last vestige of colorualism III the slave plantation system of the Old South. anticolonial lineage was compellin g: the revolt of the North American colonies against British colonialis m in the late eighteenth century. f de-veloping countries. The subdivision of the world is further explained in the foUowing insert. built on the lllterdependence of agricultural and industria l sectors. Other groupings include the Group of 7 (G-7. India. The Third World included the militarily.3 Distinguishing between an International and a National Division or Labor How We Divide Up the World's Nations Division of the nations of the world is quite complex and extensive. A relational inter­ pretation sees a division be/ween the dl!lJeloped and the underdl!lJeloped worlds. In this era. and ideologicaUy.�porting Countries (OPEC). the United States was the most powerful state economically.s. or G-8) states (the core Ilations of the First World) and the Group of 77 (G-77) states (the col­ lective membership of the Third World tlwt formed in the mid-1960s). in tum selling machinery and goods to those farmers. The core of the Third World was the group of nonaligned countries steering an independent path between the First and Second Worlds. for instance. The New South w s incorpor ted into a new national model of economic development. the oil-producing countries formed a producer cartel. The basic division made in the early postwar era was into Three Worlds: The First was essentially the capitalist world (the West plus 'apan). Vietnam. a group of rapidly industrializing Third World countries became known officially as newly industrializing countries (NICs). as weU as within their national units. the world subdivided . specializing in agro-industrial exports. and its commitment to liberal domestic and international relations lent it the legitimacy of a world leader. and least developed countries. being "inner directed" as � � Postwar Decolonization and the Rise of the Third World into three geopolitical segments. Egypt. At the same time. The division of labor between industry and agriculture.3. which had defined the global exchange between colonial powers and their colonies. division of labor between national economic sectors "Inlernar division of labOr. especially China. Indonesia. development modeled this vision. the Second was basically the socialist world (the Soviet bloc). pur­ chased nudwestem farm products for processing. u. there was considerable inequality across and within these subdivisions. dividing the capitalist Western (First World) from the In the era of decolonization. The U. and Yugoslavia. Figure }. The United Nations and the develop­ ment establishment use a diferent nomenclature: developed countries. The Organization for Economic Cooperation and Development (OECD) represents the industrial states. its anticolo­ nial heritage. and it was the model of a Colonies Agric ullure developed society. becoming the Organization of Petrolellm E.s. City (industry) and countrys ide (agriculture) prospered together. a Fourth World was named to describe marginalized regwns. Colonial. These subdivisions emerged after World War n (1939-1944) dur­ lllg the cold war. Ghana. or intarnatlonal. was now llltemalized within the United States. products (Second World) blocs. Of course. and it depends on the purpose of the dividing. In the 1970s. opposed to the "outer-<lirected" British imperial model (based on its role as "workshop of the world"). The difference between the colonial and the national division between industry and agriculture is illustrated in Figure 1. Alongside thi. and the Third was the rest-mostly former European colonies.20 The Development Project (Lare 1940s to Eariy 19705) Instituting the Develo pment Project 21 communist Soviet European States Industry Manufactured goods Primary products Manufactured goods Primary Nation State postcolOnial bloc of nations. In the 1980s. Chicago traders. Its superior standard of living (with a per capita income three times the average for Western Europe). group and overlapping it are the new agricultural countries (NACs).

Underdevelopment began. autonomous. industrial production. initiated in European states. Thirfl World states could not repeat the European experience of developing by exploiting the resources and labor of other societies.22 TIle following year. Development/modernity became the standard by which other societies were judged. "vas regarded as impoverished in standard comparative econo mic terms. a new paradigm.. modernity was there for the taking by the underdeveloped world. the bureaucratic state. Development was simultaneously the restoration of a capitalist world market to sustain First World wealth. rified into an inverted mirror of others' reality: a mirror that defines their identity . in all their diversity. Presi�ent Truman's proclamation confirmed this understanding in suggestmg a new paradigm for the postwar era: the division of humanity between developed and undeveloped regions.I�"�IUpUl�nr . simply in the terms of Ja nuary 20.n a real sense.g. and were transmog­ a homogenizing and narrow minority. In a post­ colonial era. profeSSionalism. marked the postcolonial experience. we shaJJ call this enterprise the development project. 'What we envisage is a program of development based on the concepts of democratic fair dealing. then.. . This was a way of looking at the world. with all the humiliation and explOitation which that implies.rst World civilization and living standards. price-based value) that. It was a new and specific ideal of order (e. rather than an evolutionary outcome. Gilbert Rist observed of postcolonial states. Truman included in a key speech on January 20." W hereas the First World had 65 percent of world income with only 20 percent of the world's population.Z3 Despite the power differential between the United States and the African countries. But it will have ended the rule of one race over another. "Their right to self-determination had been .1IW)ect lLate l�qUS to t::arly l�/US) Instituting the Development Project 23 Ranged against the United States were the Soviet Union and an assortment of other communist states in Eastern Europe. dependence in independence. . . given the concentration of w eal th and power in the First World. The naturalization of development ignores the role of colonialism. the proclamation by President Truman divided the world behveen those who were modem and those who were not. This new paradigm offered a strategy for improving the material con­ dition of the Third World.lll� L. the shared sentiments affirmed the connection between decolonization and development." This economic disparity between the First and Third Worlds generated the vision of development that would energize political and business elites in each world. the following proclamation: We must embark on a bold new program for making the benefits of our scientific advances and industrial progress available for the improvement and growth of underdeveloped areas. the remaining half of humanity and most of whom were still food-growing rural dwellers. on biUjon people became underdeveloped. teclmical irutovation. The epithet project emphaSizes that development is something pursued and incom­ plete. President Harry S. This division of the world In other words. the Third World accounted for 67 percent of world population but only 18 percent of its income. The power of the new development paradigm arose in part from its abil­ ity to present itself as universal. Seizing the moment as leader of the First World. from that time on. I. where sovereign states could pursue national economic growth with First World assistance.e Third World. 1949. Mexican intellectual Gustavo Esteva commented. TI. On that day. Manv observers believe that much of the gap in living standards between th� First and Third Worlds was a result of colonialism. Its aura of inevitability devalued non-European cultures and dis­ colmted what the West learned from the non-European world. and the opportunity for Third World countries to emulate Fi. It was also a strategy for reimposing order in the world. rational law. came to seem like order itself. specialization. Because development was both blueprint for the world of nation-states and a strategy for world order. The old imperiaLism-exploitation for projected a singular destiny for all nations. 1949. It can also pave the way for the inter­ naJ social revolution that is required within each country.. It assumed that with the end of the division of the world between the colonizers and the colonized. tv>'O they ceased being what they were. a Nigerian nationalist echoed these sentiments: Self-govemment will not necessarily lead to a paradise overnight. The program of development pursued by new nations.. assuming the starns of a master concept. FrantZ Fanon added p olitic al and cultural climensions to the notion of impoverishment when he termed these people the "wretched of the earth. The Second World was considered the alternative to First World capitalism. inscribing First World power and privilege in the new institu­ tional structure of the postwar international economy. and therefore uncontentious. through access to strategic natural resources in the ex­ colonial world. Development was modeled as a national process.2� foreign profit-has no place in Our plans.

a British Committee on Colonial Policy advised the prime minister in itary shell). of course. DJibouti. certain leading African anticolonialists doubted the to postcolonial Africa. and Fulam peoples. terrilt>ria. we created the usual artifiCIal states. future for the world and fwther legitimized (or naturalized) it ..24 The Development Project (l. insisted on the nation-state as the only appropriate political outcome of decolonization. But l :African federal' preremia an in r rritorla .000 hectares each. Or the instabili (Continued) impoverishment tY a of African states and societies. Chad. each state imparted its own particular style to this common agenda.lis 1950s. states with a landmass of fewer than 50. During the appropriateness of the nation-state form colonialism. or Confucianism in East Asia. even where national boundaries made little sense. Sudan. Geopolitical decisions about postcolOnial political arrangements were made in London and Paris where colonial powers.proje.. Of splitting the great Masai nation between Kenya and Tanzania.universaJized asamarket culture mmontoalii. Indeed. we drew a line through Somalia. Elsewhere. separating of part of the Somali people and placing them withi" Kenya. Its two universal ingredients were the nation-state and economic growth. pan transcend th ibitrary-borders-drawn aeross Amea Il eol<>­ the pan-African movement did not carry the day.y lbat w0uld . of course. and 1989 that African underde­ 1957. Latin American bureaucratic authoritarianism .lI. to blame? Is Africa's consequence of the political framework bequeathed by . Nlgerm con � sists of four principal nations: /i/£ Hallsa.ct. Burundi and. defiQ political y terns � the ove�ent-dliZen re. . Under these conditions. 23 states with a population below 5 million.. looking to sustain spheres of influence. dri­ ving frontiers slraight Ihrough tlte anceslral territories of nations. ni a. "During the period when we can still exercise control in any territory. They knew that sophisticated systems of rule had evolved in Africa before The Nation-State Nalion-lllil :w: the fram work-of the d ve1opment."" Some Africans who stood to gain from decoloniza­ han formed an indigenous elite ready to collaborate and assume power in the newly independent states. Yoruba. GOolo exported this-modd f UficaLpow r (With Its mil­ e. many other states that are riven by conflict. For example. including 14 lanclJocked states." The fol­ lowing insert illustrates the effects of these arbitrarily drawn boundaries. It has already sufered a terrible war which killed hundreds of f thousands of people and which settled nothing. which continue to reverberate in world affairs of the present. Ingredients of the Develo pment Project The development project was a political and intellectual response to the condition of the world at the historic moment of decolonization. We did Ihe same IJy CASE STUDY Blaming the Victim? Colonial Leg aci es and State Deformation in Africa Debates rage over Africa's global marginalization. framing the politics of the decolonization movement. Emen!oould be.t. 19bo. it is most important to take every step open to us to ensure. development assumed a specific meaning. 19405 to Early 19705) instituting the Development Project 25 acquired in exchange for the right to self-definition." centered) 4S chose the fork in the road that proceeded toward a common (but Westem­ suggesting that they (Continued) cow'se. For f example. that British stan­ dards and methods of business and administration permeate the whole life of the territory. . as far as we can. It imposed an essentially economic understanding of social change.lations p hal" emerged in eteenth-centwy <Europe. 13 How Was Africa Divided under Colonialism? The colonial powers inflicted profound damage on IIUlI continent. Mali. Is the colonial legacy. In this wayJil el the Senegal. such as African SOCialism. Rwanda are among the Source: Quoted from Goldsmith (1994:57).nation-state �t . the UN Economic Commission for Africa argued in velopment derived from its arbitrary postcolonial geography.

can we say that African societies are simply at an earlier stage of sequenUal development.. etc.tate organization resonate today in tFie growing macno-region&groupings around the world." The consequences were often debilitating-nurtur­ ing despotism and/or ethnic conflict. fin to national developmenLOThe UN Charter of 1945 proclaimed "a rising standard of Irving" as the glebal objective. indirect rule was used. given their secondary role in servicing colonial exploitation of African resources. nor the limits of separate ethnic groups. Like most frootiers in Airica today. it did bear witness to an alternative political and territorial logic. The pan-Africanists proposed regional political systems in which colonial states would be subsumed within larger territorial groupings-such as an East African federation of Uganda. Fanoll Abidjan in the Ivory Coast. those inherited by Guinea from the colonial partition are completely arbitrary. Planning for develop-ment focused on economic transformation. and the export­ ing of conunodities. These eruptions aU included ethnic dimensions. where African elites reproduced arbitrary forms of authority. In retrospect. or is this more of a relational question that addresses Africa's world-historical positioning? Sources: Ake (1996:2-7).s. MtHlldalli (2003). If such direct rule failed. nus coercive and fractious context shaped forms of postcolonial nule. do not have simple answers. states such as Somalia and Rwanda collapsed in the early 19905. Pan-Africanism was WlSuccessful. The solution was to introduce a jnarket system based on private property and wealth accu­ mulation. stock markets and legal systems. If modem Africa is characterized by fractious civil societies." Fierce civil wars broke out in Nigeria in the 1960s and in Ethiopia in the 1970s. . It man­ aged land distribution. In national accounting terms. While per capita income was not deemed the sole measure of ris­ ing living standards (health. and Tanganyika (Tanzania)..28 In addition. relying on their position in the state to accumulate wealth (not unique to Africa but pronounced) and sometimes cultivating ethnically driven conflict. such as banking and accounting systems. conflict in the Congo among armies of six different nations threatened a mOre generaJ repartition of Africa. Considerable cross-border smuggling today is continuing testimony to these relationships. presidential adviser Walt Rostow's idea of the advanced stage of "high mass consumption. based on the fracturing of "native" into several ethnicized minority identities called "tribes. posed in history. A range of modem practices and institutions designed to sus­ tain economic growth."" In the minds of Western economists. the key criterion was measur­ able progress toward the goal of the ':g00<ksodety/ popularized by economist and U. Fanon represents the African eco­ nomic elites as a caricature of their Western cOW1terparts. nevertheless. Collaboration with colonial rule by indigenous elites was inevitable follow­ ing the colonists' practice of cultivating local elites as go-betweens to facili­ tate rule over subject populations. limiting possibilities. such as Dakar in Senegal and The second ingredient of the development project was economic growth. centralized apparatus of power. The colonial state in Africa was an alien. taxation relationships. they suggest that the pan-African movement had considerable foresight. rooted in social disparities and cross-border realities.<v Instituting the Development Project 27 colonialism or the inability of Africans to embrace development? Was the nation-state an inappropriate political unit for Africa? Questions. ideas about the limits to the nation. power sources). Cultural practices of wealth sharing within communities-which dissipated individual wealth-were per­ ceived as a traditional obstacle to making the transition. They were shaped in their detail by the chances of conquest or of compromise betvveen colonial powers. literacy. some of Guinea's rural areas were in fact attached as hinterlands to urban centers in other states. and publiC infrastructure (transport. As historian Jean Suret-Canale wrote in 1970. Kenya. labor supply. Economic Growth (1967). The emphasis on econ mic growth allowed the application of a unroersnl qua"tl bfe stand. was required. or the national average of per capita income. Rostow coined the term take­ off for this transition. where con­ structive recycling of social wealth is hampered by colonial legacies. this "material well·being" indicator is mea­ suned in the-commen:ial output of goods and services within a country: capita gross national product (GNP).). education. What we can do is consider how colonial rule may have shaped the ways in which postcolonial states emerged. They do not reflect the limits of natural regions. often organizing political authority along tribal identity lines. development required a kind of jump-start in the Third World. Eurthermore. and at the birth of the twenty-first century.

Food pnces. Ancient Futllres: Leaming from Ladakh. and so forth. Under these circumstances. where they embraced the culture of consumerism with its media images of machismo for men and submission for women. people growlng their own food. where .lll­ inati'Rc(frolILstate violence to education ffiQ!!9l ogues to devel9pment discourses thatill''l'!ose defiriilion and direction on'l:u1tural activi\y). 'Via economic force (land expro�riatio n. currency d measurabJe (and P3!� \ cal i den tities and unequal opportunities to subject-citizens. are not accurate records of improvement in quality of life. physical and spiritual health. which Once defined Ladakhi social life. Work was perfomled collectively as Ladakhis built their annual and daily cultural ntuals around the harvest cycle and viewed personal fulfillment as possible only through community life and reveren ce for the natural universe. high on the unforgiving steppes of the Himalayas. Ladakhis now experienced transformations through formaJ education and commer­ cial pressures associating money with fulfillment. men/women. in and of themselves. Average1ndires suCh as per capita In<:ome obscure inequa lities among As we learn from the case of Ladakh. and forestland-may compromise the quality of life elsewhere or in the future.sociaIstffiClw'es-and on historical circumstan£esrrathef than the QI\S Of developm ent theory and/ or natural processes 0 deveJop­ men �oIe is accomplisl1ea in a variety of ways-via ctirectpolititatdo.ealized through inequality. via gender and ethnic relations that assign hierarchi­ taxable) cash · relations discoWlts th"-social. Buddhist/Muslim. development is . romanticiZed but telling descrip of development. Learning. the capital city. by Helena Norberg-Hodge. is a .. This they spent on cultural artifacts. �forming unpaid household labor and community service). creating sharp divisions among people. The accumulation of money by individuals became the new rationality. market competition. but public health may suffer. the use of the economic yards tick social classes: Aggregate indices such as rising consumption levels.. ctis­ counting the custom of barter and sharing of skills and wealth. young/old. Extended kin relations and social cooperation ordered the lives of individuals and according to Norberg-Hodge. and one universal form of inequality is the patriarchal state. Hamburger consumption may improve national growth measures. or what we call education. but it also releases harmful hydrocarbons into the warming atmosphere. grain.Instituting the Development Project 29 CASE STUDY Development as Internal Colonialism. price manipu ation). and so forth. iIhe emphasis on converting human interactions into grou� an � The nature of human relations changed dramaticallv when the Indian state built a road into this remote territory in the 1980s. produced a sense of joy in the satisfactio of essential needs through the community. worker/professional. Material items that were once simply exchanged for each other via community patterns of reCIproCIty now commanded a price in the new marketplace. was integral to cultural rit­ uals and the work of manipulating a harsh environ ment. The new education system schooled Ladakhi children in Western rationality.r. Young people drifted off the farms mto Leh. This parable returns us to the ques­ tion in the Introduction about business versus culture: Must modernity involve the subordination of meaning to profit? SOllree: Norberg-Hodge (1992). have endless amounts of money without having to work for it. W tiallY for military pur­ poses. implicitly denigrating local culture and teaching them skills inappropriate for returning to that culture and often unrealizable in the emerging but unstable urban job market. and intensive resource consumption-of water. Rwming air conditioners measures as increased consumption. is fraught with problems. in Ladakh invidious distinctions emerged. via institu­ tional rationality that devalues customary knowledges and practices . the new infrastructure introduced the market culture.wealth of nOlUl!9netaJ'Y activities l!l �I rocesses. Bina Agarwal describes the MalaYSian state in these terms. Tourists appeared to . New and unequal social diviSions emerged: urban/rural. tion of how a traclitional society (Buddhist 111 this representation) is transformed by the introduction of money. Modernity fundamentally altered the rationality of Ladakhi behavior: from collectivist to inclividualist. were now governed by invisible mar ket forces. The prinCipal shortcoming of the economism of developmen t theory is its irulbili!T tcrBcknowledge that states are firs t and foremost instruments of rule: Whethel" they can successfuly " dev elop" their societies�ds l � the. however. for example. This was a society in which human relation s were ordered by the rhythms of nature. starting with Ladahki sell-denigration when exposed to Western paraphernalia and the embrace of the market at the expense of customary practices. and so forth. Economic criteria for development have normative assump­ tions that often marginalize other criteria for evaluating living standards relating to the quality of human interactions.

governmental elites. the . Each system promoted its preferred mdustnal National Industrialization: Ideal and Rea lity "Na tional indu s trialization" had two key assu mptions. they shared the same mod­ ernist paradigm. is observed to be used increasingly "as il SOUIce of moral educiltion. it is a method of rule. the Soviet system of seU-reliant industrialization and coUectivized agriCulture was extended to East Central Europe. Industrl�l growth would ideally feed back and technify agricul ture. proclaiming. indeed. each bloc shared the goals of the development project. The goal of backward societies. on the other hand. it assume<! that development invo lved the displacement of agrarian civi­ lization by an urban-industrial SOCiety. even if their respective paths of development were different. We m�st make good this distance in . Either we do it or they crush us. These competLng spheres of influence were. . ImeaT arrectzon cetch-up with the West. In the Second World. Both cold war blocs understood develop­ ment in these tenus. this meant a deliberate shrinking of the size and share of the agric ultural sector as the manufacturing and service sectors grew. and citizens alike that development was destiny. they would subscribe to the prevailing philosophy delivering the goods and support their governments. The Commun ist variant. It also mea nt the model. . Joseph Stalin.Instituting the Development Project Islamisation is backed by an 31 au tocra tic "modem" State and . " It is noteworthy that although the two political blocs subscribe d to opposing representations of hum an destiny. the reasoning was that as livmg standards grew and people consumed more goods and services. "We are fifty or a hundred The Development Project Framed Perhaps the most compelling aspec t of the development project was a powerful perception by planners. raw materi�l�. 32 Sta lin s resoIve came from . as r U1 ��e U. patriarchal states. and to each according to their needs . encourage them to forgo employment (where traditional culture emphasized work ethics for both sexes).:.s. articu­ years behind the advanced countries. their increaSing absorption in urban industry since the early 1970s):�1 This "national mother" syndrome is deeply embedded in modem. ten years. The industrial priority dominated the <!Ievelopment VlSlOn. was to play and curb their sexual independence (which hilS gro\-vo witl. Each bloc took its Cue from key nineteenth-century thinkers. . leaders III lated this doctrine in the 1930s. CASE STUDY Na tiona l Development and the Building Blocs of the Global Economy The cold war compelled leaders of each bloc to accelerate economic growth to secure their rule. iden tified the abolition of private property and central planning as the goal of social development. Across the cold war divide. . tailor their reproductive choices to State di rectives. industrialization was the symbol of success in each sOClal system. "squeezmg the peasantry to finance urban-industrial development . each bloc pursued IIldustnal development to legitimize their power. First. In 1947. supported by economic aid and access to markets or resources In : the United States and the Sov iet Union. the idea of national industrializa tion assumed a for development. and redundant �abor from the agrarian sector as agricultural produchvlty grew. These two national ecomic sectors would therefore condition each other's development. The SOurce for this was Karl Marx's colleclivist dictu m: "from each according to their abili ty. the pressures of military (and therefore econonuc) survlVal Ln a hOstil� world." Here Tslilmic movements are Jed exclusively by male religious specialists. The goal was to reduce Eastern Europe's traditional agricultural exports to Western Europe and to encourage industrial self-reltance. and there "is a dlive to emphasize the roles of women as wives and mothers. Second. respectively. . The Western variant identified free enter prise capitalism as the high poin t of individual and societal developm ent and was based in Jeremy Benth am's utilitarian philosophy of conunon good arising out of the purs uit of indi­ vidu al self-interest. divid­ ing the world.i� cheap food. therefore. The Soviet Union's premier. in effect. political and economic empires. . / tmnsfer a resources such as food. case discussed earlier in this chapter and illustrated in Figu e 1. Development is not just a goal. and beyond the ideological rivalry. National induslriali :zaliolZ would be the veliicle of devel­ opment in each. For national developm ent policy. The Soviet Union industrialized in one generation.3.

economic integration "internationalized" domestic economies. "We in Ghana will do in ten years what it took others One hundred years to do. the powe development states­ governments strove to build national \oVorld ratist like Brazil. exchanging primary goods for manufactured goods. either through patterns of foreign ownership or through the interdepen­ the empire of a Superpower be reconciled with the ideals of a system of sovereign nation-states? Is both the development and the globalization eras is the following: How can it because of inequality among states. and the Far East. Third r of devel system. The timate goal was to achieve W estern levels of affluence. along with other government rev­ it uses individual and corpo taxes. The game was still the same­ catch-up. and it also planned infrastructural energy projects for the bloc at large. state elites and influence in the state-whether opment ideal to accumulate wealth ces to cronies or capluring foreign through selling rights to public resour of the postcolonial Indian state. economic growth by mobilizing rate taxes. The devel traliz money and people. or both? SOllrCfS: Chomsky (1981). the former British empire. well and good. or decen­ .vhether centralized like South Korea opment slale organizes ed and popu list like Tanzania. Third World governments were interes ved as underdevelopment in their economic correcting what they percei to industrialize with tar­ systems. If Some states chose to mix and match elements from either side of the cold war divide. . In the First World. much of the postwar economic boom depended on inte­ 33 gration among market economies. aid distribution channels."" Import-Substitution Industrialization Economic Nationalism Decolonization' involved a universal nationalist upsurge across theJ. Knldor (1990:62. where some are more equal than others. so eronomic nationalism sough ted in . dence of commodity chains. or because an imperial power gets to define the rules of an unequal international order.Such nationalism assumed different forms in different countries. corpo ." including the entire Western Hemisphere. Nevertheless. On the people have used their power and the devel­ its policies. lite colon. The question that lies just below the surface in cal n of social forces in each national politi depend ing on the configuratio opment was universal. Documents from the U. technology) and by encourag­ lIlg foreIgn lIlvestment as (multinational) firms outgrew national borders . involv­ n ing an investment sphere "strategically necessary for world control. "Instead of the state e an instrument of the state's of development. Sometimes. lt coordinated trade among the members of the East European bloc. In his study being used as an instrument Sugata Bose remarked. The competitive-and legitimizing-<lynamic of industrialization framed the development project across the cold war divide and propelled member states n the same general direction.1 division of labor.. State Department and the Council for Foreign Relations reveal World War II plans for organizing the world accordi g to Grand Area Planning."" sovereignty for Third Just as political nationalism sought to regain t to reverse the effects of World populations. Ghanaian President Kwame Nkrumah claimed.S. On the money end.S. In this way. The United States opened these areas via export credits (reconstruction loans tied to imports of U. 67). to finance public building of enues such as export taxes and sales enterprises such as steel works transport systems and to finance state end. Third World states climbed i on the bandwagon.Instituting the Development Project Council for Mutual Economic Assistance (COMECON) was established. development becam legitimacy.hird World_. it forms coalitions to supp�rt and energy exploration. encouraging and protecting local efforts ing dependence on primary exports iffs and public subsidies and reduc (increasingly viewed as "resource bondage").

aluminum. merchants. f oreign (chiefly U. servICe stations. as well as natural resource. Standard Oil produc ed 50 percenl o the f oil. l'"'�. In Latin America. politicnl patronnge. Brazilian imporl substitution catered largely to the demand of relatively affluent wban conswners as well as the growing but less affluent industrial workforce. and food subsidies to complement ind ustriaJization.. For example a do estic auto industry would generate parts manufacturing. Evans's model o development became f Ihal o Soulh Korea.1705) Instituting the Development Project 35 Import-substitution industrialization (lSI) largely framed initia economic d�velopm�nt strategies in the Third World.. development states aimed at shifting TItird World economic resources away from specialization in primary product exports. and 100 percml o oil and gasoline distrib f ution. f where Ihe slale used lis financial controls and busines s lies 10 nurlure stralegic domestic inveslmenls. several decades later. Shell anolher 25 percent.. whereby governments could manipulate electoral support. As local manufacturing of consumer products grew. In what Peter Evans has called the "triple aliiance. When the domestic market was 1995). 72 percenl o eleclnc power production. In contrast. Development Alliance constru cted political coalitions among different social groups to support rapid induSlTialization. a subSidIary o Siandard Oil o New Jersey owned the f f oil Ihat represented 80 percenl o nalional production." While promoting econo ic nationaIism in form. Manufacturers' aSSOCiations. Evans (1979.:" d included commercial farmers.. and workers dependent on industria. labor unions. and Gul one-sev f enlh. 50 percent o the meat Industry.. Mexico's Institutional Revolutionary Party (PRl)." The idea was to establish a cumulative process of domestic industrialization . 98 percenl f o Ihe aulomobile f Industry....) capital controlled 50 percen t o the iron and rolled-melal industr f y. policymakers used price subsidies and public services slIch as health and education programs. and Bell T f elephone conlrolled tele­ phone services. Third World governments o . In this way.. this coalition building formed a d�velopment alliance. a local industrial base would emerge. the Confederation of Mexican Workers. The development alliance was also a vehicle of lSI became the new economic orthodoxy in the postwar era.'*VS to J:!arly 1'. 80 percenl o pharmaceutlcal produclion.. and some sta tes used mechanisms such as a development alliance to redistribute wealth at the same time. . In Peru.. mullinalional corporatIOns hopped over and invested in local.. for example..1 �Ltlll! J. industries.. created corpo· ratist institutions such as the Confederation of Popular Organizations." Employing these kinds of political patronage networks. encouraged dJIect Investment by foreign firms. rubber... Governm ents pur­ . For Brazil.rban than for rural dwellers. cheap transport.. sued lSI poliCIes of discouraging imports through exchange rate manipu­ latlon and tanffs and by subsidizing "infant industries. where the state fostered private investment without much redistribution of wealth. public employees. In Venezuela. Sources: de C"lTo (1969:241-42). and the National Confederation of Peasants to channel pa tronage "downward" to massage loyalty "upward." Its social constituency T secure an expanding industrial base. .lization. ." states such as Brazil actively bro­ kered relatIOnships between foreign and local finus in an attempt to Spur II1duslrIaI developmmt.• • •� .. Providing nese social services was a way of keeping the social peace through ensuring affordable food and legitimizing the plan.. in 1956. cement. • • '-')"'. . il1 a dif­ f ermi world. the earnings of urban dwellers and attract them to the cause of national the development alliance was a centralized and urban pOlitical ini­ tiative because governments could more easily organize social benefits for u. and paint. in substance it eventually � . and so on. in additio n to indusbies such as steel. roa bul1dmg. Brazil is often cited as a model of the former strategy. Brazil had to import manufacturing technologies.S. which conlTolled the state for much of the twentieth century. They redistributed private investment from export sectors to domestic production. 80 percenl O Cigarett f f e manuf acluring. Brazil established a development ban!< to make loans to investors and state corporations in such central ind ustries as petroleum and electric power generation. Fo reign Inveshnent and the Paradox of Protection.ism When states erected tariffs in the mid-twenlieth cenlury . 56 percen t o Ihe texlile induslr f f y. urban industriausts. and neighborhood organiza bons signed on.

The poUtical independence of the colonial world gave birth to the development project. eIUj-'lHelU r1UJ�t. It has had quite mixed success. It was also the measure of their success as political elites. Political elites embraced the developme nt project. SOuth orea relied less on foreign investment than Brazil and more on export markets for the country's growing range of manufacture d goodslJComIJrehensi. and South Korean development depended on strateg ic investment decisions by the state tha t produced a development pattern in which venly distrib ul . an daases and between )\'eaIth: w8 mo e urban and .."" . gives greatest attention to the Western bloc.. the U K! n st t centralized control of nationa] development and the distributio n industrial ' . of the Third V:0rld was fully exposed to the Western developmen t project. and there is a growing reaction to its homogenizing thrust. Ethnic or cultural identity move­ ments have begun to reassert their political claims in some parts of the world.:t �Late 1'::'4US to J:::a rly 1970s) lnstituting the Development Project 37 suffl� iently large. once in power."" . The development project came under increasing scrutiny during the 199Os. the power of "deve lopment" was universal. Third World states may have become individually independent. both in the direction of nurd World development and in an international development community emerging through aid and trade ties between First and Third World peoples.. There is also a growing movement to develop alternative liveli­ hood strategies beyond formal economic relations-to explore new ways . had little choice but to industrialize. In accounting or and evaluating the development project. multinational corporations investe d directly in the . • �estem dev�lop��nt is vjew� in the post�old war era as the only game III World. losing considerable credibility among members of Third World (now southern) states.JlI By contrast. But part of this impact included exposure of non-European intellectuals. Those tenns included acceptance of the discursive and institutional relationships that reproduced international inequalities. town that IS eligtble for muJnlateral financial assistance. fueling anticolonial movements for political independence." within an imperial world. In tum political ehtes expec (l economic growt h to legitimize them> in the eyes f thelL emer .. The Idea of development e merged durin g the colOnial era. Our brief examination showed that colortialism had a profo undly disorganizing impact on . qualifying the sovereignty and diversity that often ani­ mated the movements for decolonization. . economic. penod. Wes Newly independent nations responded by playing the catch-up game--<>n an individual basis but. Latm Amenca charactenshcally had relative ly urbanized popula­ hons wIth expanding conswner markets. Both of these ideas have reemerged recently. There are several reasons for this focus: Western affluence was the universal standard. Third World elites. and cultural terms as the non-European world emulated the European enterprise... It contradicted the practlce of colonialism. This was the measure of independence from the colonial division of labor. g ptizenry. land _form � wealth -among rural Ii n. Summary The development project arose in a specif ic historical context in which the West represented itself as a model for the future of economic growth. Finding that place meant (1) accepting the terms of the development project and (2) finding ways to reaJize those tenns in specific national contexts. and soldiers to the European liberal discourse on rights. rural Whatever the form. It also rejected the pan·African insight into alternative political organization. as the next chapter shows. this book • • t�rn history proposed and realized the concept of "modernity" and • Mu?. within an international framework. and today this extends to the countries of the lIow"efunct Second theones of development. but they also were defmed collectively as "underdeveloped. even though . . mobilizing their nahonal popula?ons around an expectation of rising living standards. and they have a growing audience. The influential terms of the development project undercut Frantz Fanon's call for a non­ European way. l t also had a disorganizing social-psychological effect on colonial subjects.."". workers. The pursuit of rising living standards inevitably promoted Westernization in poUtical. The mir­ rored image of the West was materializing. onstituenci among (Ion-European societies through the reorganization of their labor systems aroUIld specialized export production. Colonialism was increasingly condemned as individual countries sought their own place in the sun. BrazIlian economy :-as they did elsewhere in Latin America during this .

. Whether this dependence was a new lorm question raised in Third World circles. they joined the international relations of the development project. trading classes of landowners and merchants.". the First World still needed to 39 . We now focus on its international dimen­ sions. Third World resource needs were met. during which time the world economy experienced a steady upswing. And of course.. How could a national strategy be simultaneously international? First. and how a new project has emerged out 01 these changes. characterized as an industrial civilization. . this historic relationship.• •• •u" . There. When countries became independent nation-states.. to universalize the Euro-American understanding of 01 development. the colonial division of labor left a legacy of "resource bondage" • embedded in Third World social structures. The remainder 01 this book explores how these ideals have worked out Ul practIce. . V::J) of life that preceded the speCIalizing t st of modem commercial systems. The next chapter examines the development project ill action.. since the model was an idealized version ceed. how they have been reform ulated.. not through colonization (like the West) but through dependence on First World finance and tech­ nology. of comm unity living or simply to recover older ways � 2 The Development Project: International Dimensions T he development project was introduced as a postcolonial initiative. These movementS . "} . favored import raw materials and agricultural goods and to market their industrial products... framed in national terms. enriched by prima ry goods exports. The development project spanned roughly a quarter The project sought 01 a century. it was unlikely to suc­ modernity. express a loss of faIth In the ideals of the development project. However. and it draws attention to 01 colonialism is a the inter­ national relationships embedded in the development project.

If anything to pieces. We then look closely at the ways the development project and political weakness. nation tates formed arutth" B r:eflon thOL IIQ""atve. where but also in the Far East. We just haven't got enough happens in Western Europe the whole business goes that. then. uJ. bilateral policy overrode the proposal tural 0 niulio iii[. "3 ra!. The UN declared the 1960s Nalional economic growlh depended.lhe_ Westem woOd an. the United Nations had organized a .1 ment strategies. labor.u. The United States is faced with a world-wide The International Framework 'Thl! pursuit of national economic growth b� all countries Ie<) • ter­ n 'ffffi'Ia l suPP(U!� oth material and political-lcg�1 . Aid and trade relationships often followed well-worn paths between ex-colonial states and their postcolonial regions. . . Bilateralism: The Marshall Plan the national level and to mitigate the effects of the colonial division of part of the globe.relationships of the newc capitaJist superpo.s. In the context of reviving and stabilizing the world economy after a severe 1930s depression and a devastating second world war (1939-1945). directed by Moscow. the peak economy: the bilateral 'Mal'Shall q.....s.A.ren ru n: l ctio a the key to sta!>ilizin in 1946 were expected to " u f :::o = "'n " e �=:c OJt"sa:'! .:r:." European grain harvests i of labor skills and certain Scarcity reach only 60 percent of prewar levels. . the United g . we examine the construction of the Bretton Woods and 1970s "Development Decades. we shall briefly examine the Marshall Plan. The other side of this strategy was tra!!!gic -parts -of" growUUn the SovIet Uruon to contain communism-primarily in Europe..lhe ueveJopmem I"ro)ect: IDrernaaonru uunenslOns • Second.. where had laid claim to territories east of Berlin. When these agencies proposed a World Food Board in 1946 President organize reserves and regulate international trade in food. It did not become a full-fledged operation until the 195Os.hall States.s. communism had gained ground first in China and then The.jn iid Agricul agencies established in 1943: ehabilitation Administration (PAl') -ancfthe United. and i W . ' Indeed. Conun unist movements are threatening estabUshed governments in every u. In this chapter.lla J trade.nlo urn . for which they paid with loans or foreign newly independent states sought to industrialize.promoting tfieir economic growth through financial 1950.) in vari ous development initiatives designed to strengthen development at system and how its multilateral arrangements shaped national develop­ affected and reshaped the international division of labor. the United States spearheaded two initiatives to reconstruct the world States sought 10 gain nations' allegiance to die Westel'lk rpj��"lem by.rnQ'\e of assistance given direcUy by the United States ilself. . To understand the inter­ national origins of the development project. instiluti ood • ractices. . on re turrung from Europe ill 1947. • sed Finn Worlcl teChnology. .. There was also a . "" whichintegJ'iltiSl slates i. as u exchange eamed from primary exports. military.". in North Korea. social reform . Secretary of State Dean Acheson stressed the urgency istance. ations Re\ie an to RA (UNR). 'll{l d Superimposed On these historic relationships were the new relations embodied in the Bretton Wood. and oods g popular growin �fugees posed enormOUS problems. . ted intematiQ. to use finaftIn these political circumstances. they Third. feed on economic chaUenge to human freedom.s IIlduded foreign aid. to scatter our solidation of Eastern Europe under Soviet rule: "We cannot shots to do shots equally all over the world. bilateral these multi­ the cold war-<:omplemented and sometimes conflicted with s of two UN lateral initiatives. Plan and became formalized under the multilateral Bretton Woods pro­ gram. These movements.n and the"llfu ltilateral Bretton Woods PrQgram. stable currency exchange. and economiC'. desire for Will Clayton stated in a Assistan t Secretary of State for Economic Affairs memorandum. on the stimulus of these States focused on EurOj><!ah In the post-World War II years. the . as it sought to contain the rival Soviet empire.".pitalism. polihal-econDmicp within an international framewo in rkJ auding �ipsDUb niled aHOIIs (UN) lInancialnl.ti ns. U.Unit decade of Third World political independence. the United States h nled populations and rekindle economic cial aid 10 tabilize dlSCOnt orld. plOgram Meanwhile. countless depleted transport and communication networks. The only way to meet Utis challenge is by a vast new progra. institutions and the political.er. cOWlter the con­ of concentrating such assistance in Western Europe. U.tilate initiatives-increasingly important in of intemanon re er. The development project emerged within the bilateral Mar." to mobilize international cooperation new international economic arrangements. technology transier.S. Material suppoq.

s. This is the indispensable cornerstone of freedom and security. U.s. It chose instead to pursue East. chasing First World exports (industrial technolog . . First World infrastruct'ura earn foreign currency for pur­ to expand Third World prima ry exports to y and consumer goods).i.:viewing natura of political development. but the U. . Military and will be able to realize their poten tia lities in peace . using bilateral aid to facilitate international trade and encourage U. government wanted an open world economy. The Europeans desired social peace and full employment. Treasury steered the conference towar and the International Monetary of the "twin sisters": the World Bank Fund (lMF). European states could finance imports from the United States. to stabilize national finances and revitalize • ines. Here. Post-World War II global economic reconstruction meant contain­ ment of communism first. funds would famous July 1944 conference of The to stimulate new production. to be achieved through closely regu­ lated national economies. New l banking system. closely integrated these cOWltries' economies with that of the United States. The triangle was complete. typically recor 'ed togethe-.S. the ministers approved fonnation of these Bretto foresaw the conference president. and Laos. Once the crectit where needed to stabilize nation n Woods institutions.S. Henry Morgenthau. the Marshall Plan replaced UNRRA aid ' The Marshall Plan was a vast. Dollar credits. some of which contributed land for militarY bases: Greece Iran Turkey.s. Korea.S. Through a credi t to revitalize region be redistributed to these reglons . And in Europe.s. iptions. Vietnam. and a liberal tional wuversalism . solidifying their political loyalty to the tlree t world" -the Western bloc of the cold war wotld. In tum. the opportunity to create such an internationa d chartering the foundahon U. and enjoy. the fruits of material progress on an earth infinitely blessed with na tural for all other freedoms.7 riches. bilateral strategy aimed to consolidate this Western bloc under American leadership. eby complex mulnlateral arrangement wher would be accomplished by economy. freedom of opportunity as the basis standards... Philipp e�onomic aiD complemented each otheJ and. The World Bank Each institution was based on member subscr wing money in internal. belie . further reconstmction portugal .� . provided the 44 financial ministers at Bretton Woods. Formosa (Taiwan). investments in colonial and postcolonial territories stimulated demand for European manufactured goods.l Plan solved this dilemma. Thailand. This arrangement also provided the United States access to raw materials from European colonial territories. From these accounts.' By 1953. in place. and expanded production It Multilateralism: The Bretton Woods System was part of the plan to reconstruct The idea for an international bank 1940s. price stability. creation of a dynamic world economy in which the peop les of every nation <aimed at securing private enterprise in these regions to undercut socialist movements and labor militanct. . allowing recipients to pur­ chase American goods.onal would match these subscriptions by borro t. lI .. y war or col niaJis!J).6 With containment . geopolitical goals in th!L col� war The plan restored trade.U..3 billion to the First World economies and had sent $3 billion in bilateral aid to the Third World.5. increasingly. were. the international trade (IMF). spearheaded by the United States. The Marshal. paying m dollars deposited in European accounts in London banks. Trade was to be r torcd bi! disburSing the world economy in the slatedJ2. in fact. AU else must be built upon this. State Department considerea the economic integra tion gained through dollar credits a way to stem the West�rn European trend toward economic self-reliance. the Marshall Plan had transferred $41. During the two decades following World War II. global banking operation. Since Europe ran a serious trade deficit with the United States (which imported little from Europe).fusions of Amorcan dollars Truman's adminish'ation declined support. direct investment in European national economies. U. an ingenious triangular trade was estab­ lishea to cnabl� Europe to finance imported American technology and consumer goods. bilateral transfer of billions of dollars to European states and Japan. . TI . For freedom of opportunity is the foundation pment project: multina­ These were the key sentiments of the develo l bounty as unlimited. In the Far Kai-shek's anticommunist forces in China. Human satisfaction was linked to rising living ies were as follows: The functions of the Bretton Woods agenc • United States regarded the following countries as key to its containment policy. Spain: • funding Third World imports of to underwrite nation"l econorn.ic growth by l technologies. serving U. food aid replaced UNRRA aid in an effort to bolster Chiang biJateral aid programs where the United States was in control. Hampshire. U. Jhe lME was to disbu se capital markets to raise money for developmeo al currency exchanges. . stimulated the world ri ".

Not only has the Bank sponsored Western facilities. as the case study shows. but it has also established an mstlilltlOnal presence m Third World countries u When the Bank finances infrastructural proJects.e. In addition. 27 were from the Third World. the Bank found it Capital-Intensive versus Labor-Intensive Production The diff V'ence between capital. health services. in the 1990s.riSin Ii atte 44 natio ns in attendance at Bretton Woods. rubber. Third World governm ents expected to industri­ alize rapidly with multilat�ral loans and so reduce their specialization in primary goods exporting. however effective in its own terms.. such as energy and export agriculture. The latter lighten labor's load. thlt!/ become capital intensive. In this way. In . early Bank lending pnonhes estab­ lished large-scale technologies as the basis for borrower COllIltry partiCipa­ technohl"glciil tran.l'i!r. whose rep ntabves � appointed their own executive directors to the board. and power plants. and 45 African f as th managing din?ct Ihe IMF= is-customarily • Europe'Yl. The rema�g seven .!'loving ds to regions tbat -needed p urcha:sing -pow . ving_ standards a mp to promote. of the World Bank was dominated by the five bigges (Fl!St World) . highw ays.. In providing loans and expertise. Of the g..and labar-intensive activities has to do with the ratio o labor to capital. these agencies disseminated the technolOgies of the development project. IIlclud­ ing overwhelming male representation. deepening the international division of labor' The Bretton Woods institutions lubricated the world economy by . com­ plementing smaller scale private and public invesbnents.between the Pirst and. At the same time. capital-intensive projects that might. the IMF adopted: nomic -policies tha countries controlled just 4 percent of the votes Seto d the World BanJris cu tom. as this international division of labor was already slTUctu red into the very social and economic organization of states across this divide and shaped how they participated in international trade. The Bretton Woods system was unveiled as a universal and multilateral sharehold�eginning with the United States. . portion o slaves to tools was high. these are often administered through agencies with semi-autonomous financial and political power within host countries. tempting Third World states to adopt the capital­ intensive methods of the West. In its first 20 years. 'I'Iilia. nurd World development priorities were tailored toward outside (I. �.. that is."'.The Development Project: lntemational Dimensions 45 In effect. e=aging:iro � dependEnce (1Il capital-intensive lechnologies) <Iru!eveloRment . Expan ded trade stimulated economic growth across the First World/Third World divide." At the same time. water and sanitation more convenient to invest in large-scale. the Bretton Woods system manag ed an �atioQ!l.j)ntrol . then.<. ity as their own criterion for loans to Third World countries.Third Worlds that resem bled the col<mi!>l d' ision of labor ' lore intensive w y. although large amounts o labor may ) f f general. ) be used f certain parts o the project-such as V'ecting scaff or f olding.only Jon!ign excnange cos ol approvl!ll. the World Bank's Eleventh Annllal Report stated. • CASE STUDY B anking on the Development Project The World Bank has always been the premier development inshtution. Industrialization often substituted capital­ intensive for labor-in tensive prod uction techno logies (the difference is explained in the follOWing insert). rather than social investments. Indeed. have common tecl1Oological inputs and similar appraisal mechanisms. and livestock.rily an Amerkan. . the 10 nch­ est industrial states controlled 52 percent of the votes. Whereas Europe had taken several centuries to industriali2e. direCtors represented the 37 other member states. loans. Fl!St World) evaluation ' Thus. tion in the development project. such as cacao. ju I ident 0 the "conditioruility" require� !"qwnn g -"ppUcants to �ve ew­ me cerlain criteria for them t International banks and other lenders inevitably adopted JMF conditional­ OOla1O . The World Bank's mandate was to make large-s cale loans to states for national inlraslTUctural projects such as dams. Nevertheless. the system had a predictable First World bias. p.efleeted t Woffil p onlies. and housing. for example. World Bank lending. This was not swprising. or tools.!'non� Inall . The Bank emphasized what were considered to be pro­ ductive invesbnents. Modern dam building tends to be f capital intensive because it IISes explosives and earth-moving machin­ en rathV' than armies o diggers. which are an essential condition for the growth of private enterprise." In this way. it has exerted considerable influence over .l'Ojeds. f Ancient pyramid building was a labor-intensive activih as the pro­ ). such as education. I. This £Symmetry. the Bank invested in large-scale cash crop agriculture. .1 change . "Most of the Bank's loans are for basic utilities . . two-thirds of the Bank's loans purcha sed inputs to build trans­ portation and electric power systems. e oba! e. still exists. national strategies had international dirnensiO . th(!l substitute capital for labor. as a global agency. These projects undergirded national economic integration and growth. . as production processes are mechanized.


nc ucveJopment l"ro)ect (Late 1I)4Us to Early 1970s)

The Development Project: Intemfltionru Dimensions


domestic development policy. For example, in the late 1950s, as a condition for further power loans, the Bank insisted that the Thai govern­ ment establish the Electrical Generating Authority of Thailand (EGAT). EGAT then supervised a series of loans for large-scale dams, from 1964 (the Bhumibol hydroelectricity project) through the 1970s and 1980s. Thousands of Thai peasants were displaced and resettled under the terms of the dam project, often on poorer lands and at considerable cost to their livelihood. Given EGAT's semi-autonomous status, however, the agency was immune to demands by these displaced peasants for compensation. Such semi-autonomous agencies (paras/alals) often override domestic political process in the name of technical effiCiency. lo Malaysia, a similar parastatal agency, called the Federal Land Development Authority (FELDA), was created by the Sank to administer three loans between 1968 and 1973. The purpose of the loans was to finance the dearing of sections of tropical rain forest and the resettling of 9,600 families who would grow oil palms and rubber trees. By 1982, by the Bank's own account, FELDA had developed 1.3 million acres (6.5 percent of Malaysian forest cover in the 1970s) and resettled 72,600 families. And in Colombia, between 1949 and 1972, more than 70 percent of Bank loans supported such autonomous development agencies. Despite the likeli­ hood that World Bank projects wouId short-circuit the political process, TIlird World elites embraced them in the interest of development. lodia's first prime minister, Iawarharlal Nehru, referred to the Rihand dam pro­ ject as one of "the temples of modem lodia," especially in generating power for the Singrauli region, India's "Switzerland." The Bank was a leading donor in this project, funding the National Thermal Power Corporation (NTPC) as an alternative to India's infamously inefficient public bureaucracy. l1,e question is whether the embrace of Western-style large-scale infra­ structural projects was development, an instrument of legitimacy for ruling elites, or a trojan horse for foreign interests.
SOl/ree: Rich (] 99407S).

develo pment priorities through its on-site project agencies and its encouragement of large-scale power generation and transport projects, Such projects stimulated industrialization on a Western scale, often financed by private invesbnents, increasingly made by foreign corpora­ tions and complemented by Bank funds. The Bank also channeled lo:,",s UltO intensive agriculture, requlring fossil fuel, energy-dependent techni­ cal inputs such as fertilizers, pesticides, and hybrid seeds. In addition, the Bank catalyzed the central ideas of the development project. For example, it created the Economic Development institute in 1956, which trained Third World officialS (soon to be prime ministers or ministers of planning or finance in their own countries) ilUhe theory a(ld practice of deve op­ ment as understood in the First Worfd. " Finan , llank- Iending became- 1l X etermined model for other multilateral banks -and aid agencies, J!,S priorities for assistance. In short, multilateratism, Bank style, characterized the Bretton Woods system-Bank policy set the parameters of development. 1l1ird World elites by and large embraced these parameters since they were not in a pOSition to present an alternative. When individual governments clid try socialist alternatives, loan funds rapidly dried up. Multilateral funding was committed to extending the realm of free enterprise.

Politics of the Postwar World Order
As the realm of free enterprise expanded, the political dynamJcs of the cold war deepenei:l. These dynamicsJ1ad two aspects: (1) the competition between the U.S.-lea (First World bloc and the Soviet (Second World) bloc for spheres of influence and (2) Third World attempts to avoid becoming pawns in this geopolitical game. While the United States and the Soviet Union were busy dividing the world, the countries of the 1l1ird World came together to assert their own presence in the international sys­ tem. We explore the interplay of all these forces in the following sections. Foreign Aid. An examination of the patterns of Western foreign aid in the postwar era shows that patterns of development- assistance contradieted the universalism of the development project. All states could not be equal, as some were more Significant players than others in the maintenance of order in the world market system. Western aid concentrated on under­ cuthng competition from states or political movements that espouscll rival (i.c., socialist) ideologies of developmen!. Its priority was to use eco­ nomic and military aid and trade to stabilize geopolitical regions through

In examining how the development project issued from the Bretton Woods institutions, we have focused on the World Bank as the key multi­ lateral agency responsible for underwriting TIlird World development. In addition to its influence through the parastatals, the Bank framed


_ .


. • .�

.. . . .... ...... , \<-t.lll:. l-'�U:' J

IU .cltny l'l/US)


Development Project: International Dimensions


regionally powerful states such as South Korea, Israel, Turkey, and iran. These states functioned as military outposts ill securing the perimeters of the so-<alled free world and in preventing a "domino effect" of defections to the Soviet bloc. Cold war rivalry governed much of the political geography of the development project. In the 1950s, the Soviet Union appeared to be chal­ lenging the United States in military and space technology. When the Soviet satellite Sputnik was first to fly into outer space in 1957, followed by manned Soviet space llights, Second World industrial rivalry gained credibility in both the First and Third Worlds. The Soviet Union was expanding economic and political relations with Third World states, espe­ CIally newly mdependent states in Asia and Africa. POlitical rivalry inten­ sified in 1956, when the Soviet Union financed and built the Aswan Dam in Egypt. This Soviet initiative followed U.S. pressure on the World Bank not to fund the project, in opposition to the " Arab socialism" of Egypt's new leader, Gamal Abdel Nasser. By 1964, the SOviet Union had extended export credits to about 30 states, even though 8 received most aid. Under the Soviet aid system, loans could be repaid in local currencies or in the form of traditional exports, a program that benefited states short of foreign currency. Not only was the Soviet Union offering highly visible aid projects to key states such as Indonesia and India, but aid policies also clearly favored states pursuing policies of central planning and public ownership in their development strategies ." . For the United States and its First World allies, then, the development . . P�oJect was mor t tr beJt or Western t hnology and economic institutions to the-Thlt<l WorlC!. So long as the Third World, a vital SOurce of strategic raw materials and mineralsl was Wlder threat from an alternative political-economic vision such as socialism, First World survival was at stake. In 1956, this view was articulated clearly by Walt Rostow, an influential development economist:
The location, natural resources, and p op ulations of the underdeveloped areas are such that, should they become effective ly attached to the
determine the fate of Western Europe and Japan, and therefore, the effec­

The United States' foreign aid patterns between 1945 and 1967 confirm thjs view of the world. Yugoslavia, for instance, received considerable aid as the regional counterweight to the Soviet Union on the western peri­ meter of Eastern Europe. Elsewhere, aid to geopolitically strategic states (including iran, Turkey, Israel, India, Pakistan, South Vietnam, Taiwan, South Korea, the Philippines, Thailand, and Laos) matched the total aid disbursement to all other Third World countries.'; this cold war world order was an The Non-Aligned Movemellt. Parallel with ted a more· independent emerging Third World erspective that advoca composition of the United vision. As decolon.izatiori procee ea, the n member states. In Nations shifted toward a majority of non-Europea international politics pro­ 1955, the growing weight of the Third World in of "nonaligned " Asian and African states at duced the first conference (NAMr. Key Bandung, Indonesia, forming the Non-Aligned Movement (Sukamo), India (Nehru), Ghana players were the leaders of Indonesia and China �ou (Nkrurnah), Vietnam (Ho Chi Minh), Egyp t (Nasser), ional fora to forge a t AM used" its collective voice In interna Enlai). phy of noninterference in interna tional relations. l\t a subsequent philoso ia articulated this position meeting of NAM, President Nyrere of Tanzan in terms of economic self-reliance:
By non-aJignment we are saying to the Big Powers that we also belong to

this planet. We are asserting the rig h t of smail, or rniUtarUy weaker, nations

to determine their own policies in their own interests, and to have an influ­ make economic, social and poli tical choices is being jeopardised by our need

ence on world affa i rs. . . . At every point . . . we find o ur real freedom to

for economic develop ment. 16

world. . . . Indirectly, the evo l u tion of Ihe underdeveloped areas is likely to

Conununist bloc, the United States would become the second power in the


committed to lead. . . . In short, the underdeveloped areas.l�

o( those industrialized regions in


free world alliance we are

well as the (a te of Western Europe and Japan are at stake in the evolution of

military security and OUI way of life as

The subtext of this statement, and indeed of the final Bandung commurtique, was a questioning of the legitimacy of the economic model of development embedded in the multilateral institutional order. The first bone of contention was the paucity of multilateral loans. By 1959, the World Bank had lent more to the First World ($1.6 billion) than to the Third World ($1.3 billion). Also, loan terms were tough. Thind World members of the UN pressed for expanded loans, with concessions built in, proposing that a UN facility perform these multilateral development functions. Third World members expected to exert some control over a Special United Nations Fund for Economic Development (SUNFED). The First World's response was to channel this demand away from the United

. . ...;. UC� CJU""Ult!HI rlUJ�I,.'t �L-ar� l��US to carly 1 �:lUs)

The Development Project: International Di.mensions


Nations and toward the World Bank. Here a new subsidiary, the lntemational Development Association (IDA), was established to make loans at highly discounted rates (called "soft loans") to low-income countries. Between 1961 and 1971, the IDA lent $3.4 billion, representing about one-quarter of total Bank lending. In addition, several regional banks modeled on the World Bank were established-including the lnter­ American Development Bank (lDB) in 1959, the African Development Bank (AiDB) in 1964, and Ihe Asian Development Bank (ADB) in 1966."

Tire Group of 77. The next contentious issue was the organization of international trade. The General Agreement on Tariffs and "Jrade (GATT), fpunded in 1947, enabled states to negotiate reciprocal trade c6n­ cessions. Because the GAIT assumed a level playing field, rather than one marked by histories of inequality and colonialism, speakers for the Third World regarded it as discriminatory, as many Third World states were unable to make such reciprocal concessions. IS In fact, during the 19505, the Third World's share of world trade fell from one-third to almost one-filth, with declining rates of export growth associated with declining terms of trade. I' Third World pressure, led by Latin America, founded the United Nations Conference on Trade and DeVelopment (UNCTA:D) in 1964. UNCTAD was the first international forum at which Third World countries, formed into a caucus group called the Group 0£77 (G-77), coUectively demanded economic refonn in the world economy. They declared that refonn should include stabilizing and improving primary commodity prices, opening First World markets for Third World manu­ factures, and expanding financial flows from First World to Third World. Once UNCTAD was instih.ltionalized, it served as a vehicle for Third World demands. While UNCTAD had a limited effeet on world economic relations, its membership of scholars and planners from the Third World infused inter­ national agencies with a Third World perspective. Perhaps its most con­ crete influence was on the World Bank under its president, Robert McNamara (1961>-1981), who linked economic growth to the redistribution of wealth. "Growth with equity" was the new catch-cry, and for a while, planners embraced the idea of investing in "basic needs." Infrastructural lending continued, but new Bank funds were directed into poverty allevi­ ation projects, with rural development and agricultural expenditure rising from 18.5 percent of Bank lending in 1968 to 33.1 percent in 1981.20 As we shall see in Chapter 4, the solidarity of the G-77 lasted until the mid-1970s. At this pOint, the organi2ation of the world economy changed

system into drastically, unraveling the tidy subdivision of the international Third World as of the its Three Worlds. This was the beginnin g of the end e term for a region of the world sharing common historical condi­ a credibl n First World and tions. It was also a time when the isolation oetwcc the development Second Worlds began breaking down. But until then, in a close project framed national economic growth in the Third World . tional instih.lhons and national poliCies. relationship between interna We now take leave of the instih.ltional side of the development project and examine its impact on the international division of labor.
Remaking the International Division of Labor

however, industrirtlization, then it certainly had some success. The result, . industrialization was quite incom­ was uneven, and in some respects been plete. Nevertheless, by 1980, the international division of labor had exportS_ included more manu­ r remade, if not reversed. l):leJhid World's g fa.\Wed goods than raw materials, ana the First World was ""portin Third World." In the 36. per�ent more primary commodities than the tional remainder of LItis chapter, we examine the shift in the interna division of labor, as well as its impact on the lOor/ilfood system. pOSition In world manufacturing, the Europea" First World lost its core in !hi period. Japan and a middle-income group of Third World states " In improved their share of world manufacturing, from 19 to 37 percent we examine the implications of this rising group of the next chapter, on of the middle-income Third World states. Here we focus on the redivisi world's labor. tural exports fell In agriculture, the Third World's share of world agricul 1_980, while the American "bread­ from 53 to 31 percent between 1950 and " By basket" consolidated its role as the pivot of world agricultural trade of the world's wheat, the 1980s, the United States produced 17 percent s; the U.S. share of 63 percent of its com, and 63 percent of its soybean percent world exports was 36 percent in wheat, 70 percent in com, and 59 1961 and 1975, in soybeans " On the other side of the globe, between except Third World agricultural self-sufficiency declined everywhere ). in centrally planned Asian countries (China, North Korea, and Vietnam d below In all regions except Latin America, self-sufficiency droppe self-sufficiency, for instance, declined from 98 percent 100 percent . Africa's in 1961 to 79 percent in 1978."

World lf the development project was an initiative to promote Third

J II� LI�VelOpmem l�r'OJeCr

lLate l'i4Us to t:.arly


I he


nOJect: .LluemaUOnal


Two guestions arise:

cons umer goods such as textiles and garments.

manufacturing dispersed to the TItird World? Is there a relation between these trends?

Why did commercial agriculture concentrate in the first World, while

manufactured goods accounted for 17 percent of exports. This figure rose

In the early 1960s,

goods were added to the basket 01 exports and as Korean manufacturers gained access to foreign markets (especially their products. South Korea exemplifies a development state whose industrial success

to 91 percent by the early 1 980s as increasingly sophisticated electronics

the massive U.s. market) lor

food a central part of understanding (be orderin g of the world by the development prQject.'Pood a so provides a unique lens as it is such .an important ehide 10r the transf ormation of social systems, diets d health, and power relations internal to nations and internationally. CASE STUDY South Kore. i n the Changing International Division of labor South Korea is arguably the most successlul of the middle-income newly industrializing countries (NICs), transfo rming its economy and society m the space of one generation. In 1 953, agricul ture accounted lor 47 percent of its gross nationa l product (GNP), whereas manulacturing accounted lor less than 9 percent. By 1981, these proportions had SWitched to 16 percent and 30 percent, respect ively. At the same time, the contrib utIOn 01 heavy and chemical industries to total industr ial out­ put matured from 23 percent in 1 953--1955 to 42 percent in 1974-1976. How did this happen? Sou th Korea was heavily dependent on injectio ns 01 American dollars followmg the Korean War in the early 1950s, during which it pursued the ISI strategy. By 1973, the Korean government's Heavy Industry and Chemlcals Plan encomaged industrial maturi ty in shipbuilding, steel, machinery, and petrochemicals . The government complemented 151 with export-oriented indus trializa tion, beginn ing with labor-intensive

The answer lies in the P.2li al slructures of the develop ment project. . For one thing, Thud World import-substitution industrialization (151) protected "infant" industries. In addition, First World agriculture was pro­ tected by farm subsidies, sanctioned by the GATT. These policies comple­ mented one another, substantially reshaping the internat ional division of labor. In conSidering the impact of these intersecting poliCies on the remak­ mg 01 the mternational division 01 labor, we focus on the shaping of the world food order. Our focus on the food order offers one view 01 the global conditions promoting mdustrialization and agro-in dustrialization, making


depended on a rare flexibility in policy combined with the unusually repressive political system of military ruler Park Chung Hee (1961-1979). xed Koreans worked extremely long hours only to lind their savings ta away to support government investment policies. Industrial labor had no rights. Confucianism was a social cement. As an ethic promoting consen.,. sus and the au thority 01 educa tion and the bureaucratic elite, it provided a powerful mobilizing cultural myth. Being situated on the front line of the cold war helped, as the United States opened its markets for Korean exports. Meanwhile, cheap food imports from the United States played a key role. rice is cherished, and at that time, the country was self-sufficient Before 1960, virtually no Western-style bread was consumed in Korea­ By 1 975, however, South Korea was only 60 percent food self-sufficient,

in load.

and by 1978, it belonged to what the U.S. Department of Agriculture calls "the bUllon dollar club." That is, South Korea was purchasing $2.5 bUllons worth of farm commodities from the United States, much of which was wheat.

In addition, the government was providing free lunch bread to

sandwich-making classes, financed by U.s. aid counterpart funds.

schoolchildren, and thousands 01 Korean housewives were attending

Considering South Korea's history, this was indeed a dramatic transfor­ mation, not only in the country's diet and economic organization but also in its international relations, as South Korea began to import food and export manufactured goods. Under Japanese occupation, Korea had been turned into an industrial colony-and rice bowl-for the Japanese

empire (191()-1945). The South Korean larming population diminished by 50 percent as industrial expansion attracted nus shift, however, was not because rice farming modernized-it remained extremely small scale, retaining an average farm size of 1 hectare (2.471 acres) during Utis time, because the government closely husbanded a small-scale farming system with farm crectit and price supports.

rural migrants to the cities.

more than 12 million people migrated from the nlral sector to work in industrial cities such as Seoul and Pusan. al most half of U. It had three component su rpl uses. wheat imporls in that country quadrupled between 1966 and 1977.. • • . "One of the major objecti ves and an unportant measure of the success of foreign policy goals is the trans i tion of countries from food aid to comme rcia l trade: v TItle [ sales under the U. depended . ."" At this point. as well as on access 10 U. such as discounted prices in local currency (TItle i). and for other purposes. export sales opportunities. By the mid-I960s. the U.•_ . Low wages subsidized the industrial export stra tegy.. V�) l he uevelopmenl J"roJect: Intemahonal Uunenslons 55 Since the South Korean "miracle" depended signifi cantly on the subsidy to liS mdustnab2alion stralegy provided by chea p American food. by setting pnces for farm goods above their price on the world market. sugar. . Return. to unprove the foreign relations of the U. share of world food aid was more than 90 percent. urban profesSionals and middle classes). The stated goa l of PLA80 was "to increase the consumption of U. . accoun h ng for 70 pe rcent of world food aid (most ly wheat) between 1954 and 1977. � . In 1967...S.. .farmers spe­ aalized m one Or two comm odities (such as com.. American farm.. wheat imports su pplied bu rgeoning Third World urban popu la tions.'" . Depa rtment of Agricultu re reported. PL-480 progr am anchored the food regime. and thi s. Meanwhile.. In this modeI.. . . It was a massive transfer of agricu ltural resources to the Third World urban-industrial seclors. Food Importing Under the aid program.S. but with a difference: il operated on a global. rather than a nation al... wheat exports were in the form of food aid. The 1966 annual report on PL-480 to the U.. Evans (1995).S. aid had become increasingly lIIult1lateml." By 1956. labor unions. Through market expansion. and. heavil).l2 Thus.S. was its developmenl u ltima lely a domestic or an intern ational process? SOllrces: Hnrris (1987:31-36). the United States set up a food aid prograTII !hat charmeled food surpluses to Third World countries. The resulting surpluses subsidized Third World ind ustrial labor forces with - . with technological support from the public purse. the U.S.pmic CoopeJ'ltion and Development (OECD) and administered by the Uniled Nation's Food and Agricultural Organization (FAO). During the I%Os. in tum. . famine relief (TItle II). . . government instituted the To dispose of farm Public form of 0 a d. each came to depend on Ihe other.. Surpluses arose OU I:) the farm mOdel pursued in the United States ..ing enlered an era of overproduction. establishing distribution programs to pass on the international subsidies to urban consumers (recall the d iscussion in Chap ter 1 of the "development alliance. scale.. rapid industrialization in Sou th Korea. beginning with labor­ intensive manufactures of clothing items. ma rkels for its manuf actured exporls. stabilized two key parts of the dev Topment pro­ jecl: (1) the American economy and its breadbasket and (2) llurd World government industrial plans. fueled by labor transfers from the countrySide.. from 1957 to 1982.S. stabilizing urban politics and improving the Third World environment for industria l investments. (TJhe economic development built into food aid programs m easurably improves U.S." w hile rice consumption began a gradual but steady decline. Congress noted its positive impact on the U. nus postwar food order" se t in motion the rural-urban prescrip tions of developmen t economists. . rice. this food aid accounted for one-quarte ' s: Com­ mercial sales on conceSSionary terms. building on a supplementary system of food aid to needy countries that was established in the 1960s at the initiative of the United States. The managemenl of these food surpluses stabilized The Postwar Food Order In the post World War n era.s. . a quantity sufficient to stabilize the prices of traded food prices.iJlg to the South Korean case. Third World governments intervened in the pricing and marketing of food. . Farm subsidies encouraged this . Chea p food thus supported consumer pu rchasing power d subsidized the cost of labor. food goods. Cheap imported food allowed the govern­ ment to maintain low grain prices to hold down industrial wages. and food bartered for strategic raw ma terials (TItle ill). It was funded with financial pledges from the Organization for �o.29 By then.. world wheat exports. the U. a1thou h this feU to 59 percent by 1973. protectea by tariffs and subsidies (institutiona lized in the GAIT ). and dairy products). agricultural commodi ties in foreign countries.s.s. cheap food. The Public Law 480 Program law 480 Prognun (Pl?I80) in 1954. Wes�1 11983:172-73). economic aid was in the r of ." com­ posed of manufacturers. . 80 �rcent of U S.S.. . balance of payments: "This increase in commercial sales is attributable in si gnifican l part to increased familiarity with our products through the concessional sales and dona­ lions programs . At the same time.

. supplies for military bases. o . As U.§-� . imports of wheat grew tenfold between the early 1950s and 1971. Virtually disappeared. Cheap food imports cut by half the prices obtained by Colombian farmers. ." 1: � " .56 The Development Project (Late 19405 to Early 19705) on a cheap food policy underwritten by food aid. food aid were India.. .E " . � -5 N � � .(Jj ..S. Displaced peas­ ants entered the casual labor force. India can achieve even half the productivity of Canada... contributing to the characteristic urban underemployment and low-wage economy of Third World countries. . o E . Israel." .� -- t c 0 ro c . and the supply of labor to the industrial centers..: b'" � 57 . such as potatoes and barley. Indonesi a.S.. Egypt.I � � J'l 'c. Tunisia. locally produced goods and services. accounts in local banks by the recipient government.l! In this way. . Pakistan. that is. companies (especially local agribusiness operations).S. The great food markets of the future are the very areas where vast numbers The people we assist tOday will become ow customers tomorrow. � "" '. South Vietnam. . These funds could be spent only by U. local cur­ rency placed in U. C 0 "'d C 0 . and distribution of local foods.'" Between 1954 and 1974. They reduced their wheat production by about two'thirds. Usually. agencies within the recipient country. "v � '" oS '" "" '" " < .E . Shipments of food were paid for in counterpart funds. � 0 " � 1: �� . Counterpart funds were also used to promote new " '" '" � � " '" 0. the postwar food order sponsored economic development in one of the "showcase" countries of the cold war.. The Colombian government did not protect its farmers.. major recipients of U.Food aid allowed goverrunents to purchase food without deplet­ ing their scarce foreign currency.:J �] -.lb of people are l ea rning through Food for Peace to eat American produce. Yugoslavia.8 '5 * g o � '" () i.. urbanization i n Colombia followed the collapse of Significant parts o f i ts agriculture under the impact of food aid and commercial imports of wheat. Stimulated by the food aid pro­ gram.2 "'d V> 0 0 '" "'d c � -< � � � � "" � � 0 '0 '00 '.c ci {g "- I � �� � "' � .. and other food crops. depending on the resources of particular countries and their aevelopment policies South Korea waS a success story largely because the government centralized management of its rice culture. By contrast. � � ]i I 0" " ..s... D � � CT o '5 0 "... such as infra­ structural projects.1). . South Korea. e iml'act of food aid varied elsewhere in the world. and the Philippines (see Figure 2. '� 0 O CT ".. Brazil. T aiwan. transportation. it was cheaper and easier for governments to import wheat to feed their growing urban populations than to bankroll long-term improvements in the production. :. Senator George McGovern predicted in 1964. diets among Third World consumers in the form of school lunch pro­ grams and the promotion of bread substitu tes.. Morocco.c 0 Vl -d '8 )2 0 '" '" � "" '" 0 '" '0 c o 'co � 'O � == o -l!! '" Q. . its industrial development (balancing establishment of an industrial base with export manufacturing)... loans to U. They financed a range of development activities.ll An enonnous market for American produce of all kinds will come into being if �O • • fA .s. and trade fair.

when governments can no longer afford such food dependency and food supplies dwindle. giving rise to a gioliiilfooil regime based in ITade rules that pri\liJege corporate power in the. SubsicUz ed grain Imports also undercut the prices of traditional starches (potatoes. Thus. with the Soviet bloc joining the Third World (includ­ ing China) as the major importing regions and the European Community becoming a major grain exporter. ThIrd World per capita consumption of wheat rose b y almost two-thirds. By 1980. their urban populations may riot."" The strategy was recommended to President Nixon in 1971 for resolving America's growing balance of payments difficulties-as the United States began losing its industrial edge in world markets. In reality. As we shall see below." e green power slTategy envisioned a reOtga­ nized world ag riCulture. Between 1975 and 1989. By 1978. WIth no change in Firs t World wheat consumption patterns . share of world trade in g rains (peaking at 60 percent) through the 19705. commercI al sales of American farm commodities continued. Here. the structure of the grain trade had significantly altered. vegetables. 'f!tird World reliance on imports for modernized diets was considerable. govern­ ment strategy of green power. as the food aid program wound down in the early 19705. as govemment­ • growmg alies.organization of the world food economy'" The centerpiece of this new commercial phase was the U. yams. which would pay with exports of labor-intensive crops such as fruit. commercial exports of food replace concessional exports of food aid. In Colombia. these social trends occu r w ithin a national framework. Wheat (and nce) lffiports displaced maize in Central America and parts of the Middle East and millet and sorghum in West Africa. And Third World per capita consumption of all cerea ls except wheat mcreased 20 percent while per capita consumption of traditio nal root crops declined by more than 20 percent." In Asian and Latin American urban diets. imported wheat became the substi­ tute staple food. Third World cereal imports more than tripled during the 19705.ird World consumers had become dependent on such foods rn the conventional economic development model. The food aid program subsided in the early 19705 in part because Third World com­ mercial imports were swelling.The I)evelopment J:'roJect: lnternabonaJ UlDlensions 59 production of local staples collapsed. rice consumption per capita continues its annual decline as Koreans continue to shift to flour-based products and animal Thus. protein. The Williams Commission nue.as "breadbasket of the.S. as small producer s (outside the agro-export sector) telt the land and sought low-wage jobs in the rapidly organized urban food markets enabled subsidized wage foods to outcom­ pete peasant foods. And so the goverrunent removed Food Dep endency Across the Third World in general (with the exception of Argentin a).world. traditional "peasant foods" were replaced by the new "wage foods" of grains and processed foods consumed by urban workers. . In fact. rivaling the American breadbaskel'" This phase in the. where corrunerc ial sales were prominent earlier and bu t also because they were mostly newly urbanized consumers. they assumed international dimensi ons liS first WorlcL farmers suppl ied Third World industrial labor (remaking the international cUvi­ si an of labor).37 A t the same time.. In the case of South Korea. based in a Simple global division of agricultural labor: The Uni�d States would expand sales of cheap grain to the 1ltird World. computers. and sugar" The green power strategy doubled the U. PL-480 contracts offered incentives to governments receiving food aid to eventually expand their commercial imports of food. armaments) and agricul­ The rising consumption of imported wheat in 1ltird World countries was linked to two far-reaching changes in this period: • the in�ingly tenuous conctition of peasant agriculture. and taro).strategy of aggressive agro-exporting to consolidate America's role. wheat progressively replaced rice and corn. via the development project.international food order (1973 to the present) has involved cut­ throat com petition for 1ltird W {)rld markets among the grain-exporting countries. . not only because n.s. constraints on the use of American farmland and encouraged export agriculture under the slogan of planting "hedgerow to hedgerow. Green Power By the 1 9705. the Third World was recei v � g mor than three-quarters of American wheat exports.J9 � recommended that the United States should specialize in high-technology manufactured goods (machinery. cas­ sava.. wheat Importing rose from a base of practically zero in the mid-195 0s to almost half of world food imports in 1971. the expansion of an industrial labor force.

The European ommon AgriCIIltural Policy (CAP) allo. The intent of the U. agribusiness products. rna affluent Thi World consumers shifted up the food chain. CASE STUDY Food and Class Relations The growing feed grains trade traces changing social diets and. ner shifting to a wheat-based aiet. food aid turned out to be quite fortuitous.' as meat came to account for one-quarter of the American food bill by 1965. and the Japanese livestock mdustry became almost co1l1pletely dependent on feed grain:lmpQ. focused on estabtistting new rules for agricultural trade (see Chapter 5). suggests that "dietary modernization" is as much the result of policy as it is the consequence of rising incomes. Bettind this stood the massive state-sponsored expansion in Ame rican agricultural productivity. they will substanhally expand the market for feedgrain and other feed ingreclients. the transformation of sodal structures. As these facilities become fully operational. from grain to fresh vegetables to animal protein (beef.k ancL poultr]Lindustri Loans were made to more than 400 agrl usmess firms to establt h sub­ b s sidiary operations in 31 countries as well as to finance trade fairs � nd edu­ cational programs introducing livestock feeds and feeding techniques. by keep ing food prices low. grains as Third World consumers shifte d to whea t-based diets. wruch began i n 1986. Animal protem consumption . Consumption of final products.tutes).. d beef consumption roughly doubled between the turn of the century d 1976 " Under the auspices of MarshaU Plan export credits for U. agribUSiness comparlies (including Ralston-Purma and Cargill) to acquire technical and marketing expertise. leavJng.S. waS only part of the strategy. barley. grain-processing industries foUowed the movement of cattle from open-range feeding to grain feeding (75 percent by the early 1970s). It is not Sur­ prising that the GATT Uruguay Round. PL-480 program was also to create futur e markets for c mmercial sales of U. U. poultry. for example. Poultry consumption more than tripled between the 1930s and 1970. it subsidized 'Hurd World industrial strategies.s... we need first to examine how green power affected fanning in the Tttird World. these enterprises would use counterpart funds "to finance construction and operation of modern livestock feed mixing and livestock and poultry production and processing facilities. : The Global Livestock Complex Surplus grain was sufficiently cheap and plentiful to feed livestock rather than people.. Feed Grains Council routinely channeled coun er­ part funds into the development of local Hvestoc. ". Under the food aid program.. The management of agricultural over­ production made disposal of surpluses a matter of government policy. Consumption of animal protein became identified with "the Remaking Third World Agricultures Given the development project's emphasis on industrialization. Such food dumping intensified 1hlrd World food dependency and destabilized international trade. and pork ).rts. Export of these products followed a logic similar to that of the food aid program: finding outlets for surplus products. sold and processed wheat dIVers ea �to the mass production of processed feedt (com. According to the PL-480 annual report of 1970.urban consumers more income to spend on products of the new industries springing up behind state prote ction. therefore. four South Korean firms entered Jomt ventures with U.. reducing world agricultural prices by 39 percent . In this section. soybeans. such as feed grain s and agricultural technology.. wruch more than doubled that of manu facturing during the period of the postwar food regime (19505-1970s). Ifalfa oats.s. and sorghum) for cattle and hog feedlots as well as poultry �otel�. The .The Development Project: International Dimensions 61 the United States and the European Community used ever-increasing export subsidies to try to corner world grain markets. By \966. To put this in perspective.bsti. e orts of feed grains also ilourished as animal protein-consumption took hold among urban middle classes in !he nlird World�e 11.S. Chea p food fed urban populations. this agri-food model spread to Europe and Japan. ' ain companies that had fonnerl).5. we consider how expanding supplies of feed grains stimulated the growth of commodity chains linking spe­ cialized feed producerS with speCialize d livestock producers across the world.s. feed grains were the biggest single earner of export dollars for food comparlies:' In 1969. But what rustorical forces have brought this about? An examination of the dynamics of the food regime American way of life.:ed free entry to feedstuff im rts lcereal su. however. The other thrust of the food aid program was to expand consumption of other agricultural goods.

was six times that of the world wheat 1980s. age when the "global epidemic of malnutrition" refers to the ma tch­ ing of the 1. The new hybrid ctions in heavily dependent on ctisease. the livestock co mplex was as bile complex. specialized feed grain supply zones (primar of maize and soybeans) ily . soy p roducts and more vegetarian options. World Bank bureaucrats decided to promote a Westernization of China's diet. face an increasingly tenuous low end of the food chain. d ispla ced by cat1le pastures. On the global level. This was a " package" loped under the auspices of the agricultu ra l technologies originally d eve a combined Rockefeller Founda tion (in Mexico in the 1940s) and then in ines in the 1960s). primarily wheat) diets promoted directly through food aid. the difference in diets reflects who holds the power to produce certain foods and how patterns of consumption are d istri bu ted among social cla sses. Engel's law may be in effect. McMichael (2001). Costa Rica. observed. world prod uc tion r. in 1999. In the late revolutioni zed as a specialized. In other words. sp eci a lized form of c omm erci al modem farming are exp laine d in the ferences between traditional and following insert. Or how. " 'Nh.)ev��upmem yroJect (Late LY4Us to Early 19705) The Development Project: International Dimensions 63 rising affluence in the Third World as the people of these countries embraced First World diets beyond those staple (grain. What "Traditional" and "Modern" Farming Look Like The major diff rence behveen customary and modern agriculture is e specialization. a Central American An and in "midctie-income" countries such as oncentrated in the First World 1940s and 1988. consu mption patterns as the automo The Green Revolution other major contribution to the remaking of Third World agricul­ of plan t-breed ing ture was the green revolution. with crop farming elsewhe by chains oL co�odities organized in global agricultures were linked to both agriculture and manufactunng. we might wonder why. complexes-a pattern common central to postwar development and Indeed. as dilferent classes of people dine on different parts of the food chain. As wealthy (often foreign) consumers dine "up" on animal protein. fa rming . The dif­ encouraging a modem. and tallow. Between 1963 and 1973. re in the world. maize prod uction was of soybeans increa capi tal-intensive agro-ind us try. reflects � example of such intervention in shaping the food chain comes from state with a his tory of government and multilateral support of beef production. At the same time.5 million loan to China for 130 centers for its nascent beef industry.. but i t is a managed effect. such as f milk." On with a c onsid erable package of chemical and infrastructural inputs. preSident of the PhYSician's Comm i ttee for Responsible Medicine.J lie l. Inte nsive irrigation and fer weeds. hides. HYVs which then had to be The came feedlots and five processin g the occasion of the World Bank's $93. develop ment has come to be identified with affluent diets centered On animal protein. But i nstead of just reflecting individual choice and mobility. typically depending on low-protein sta rc hy ctiets. local peasants. in Guanacaste province.2 billion overfed. in an Sources: Place 11 985:293-95).2 billion underfed by the 1. Declining food security for the poorer segments of Costa Rica forced its government to use foreign exchange earnings from exported beef to purchase basic grains on the world market to feed its citizens.zil and Argentina . venture with the Ford Foundation (in the Phi li pp ies (I-/YVs) of seeds Scientists focused on producing high-yielding variet seeds were that allowed intensified cropping patterns. In (Continued) With livestock production expanding throughout the Third World. specialized companies. Customary f arming is mixed f arming that complements crops with liv�stock that is used as a source o animal pawer. through the grain trade . and various items o subsistence. Thus. Neal Barnard.and pest-resisting che mical prote tiliza ­ the form of fungicides and pesticides. the value of the maize trade livestocking came to be linked. the. Gardner and HalllJeil (2000). dungfuel. cattle herds increased by 65 percent while peasant bean production fell 41 percent.iJe smart Americans recognize the need to 'Easternize' their own diets with rice. a practice that promoted killed with herbicides. tion were requ ired to optimize yields. Family or village /abor is usually the norm. The German statistician Ernst Engel formulated a law correlating the die ta ry move from starch to grain to animal protein and fresh vegetables with rising incom es ." In other words. f posthllrvest stubble grazing. Between the late sed sixfold.

the green revolution was realized through the increase of rural income inequalities. They also prospered from rugher grain yields. Argentina. Burma.. . "While Africa has charted few gains. women typicaUy have less commercial opportunity. c. . six Asian countries-India. and Venezuela. In parts of Latin America.raised-bed agriculture. loans from institutions such as the United States Agency for International Development (USAlD) and the World Bank. but they have been highly concentrated in a few ecologically advantaged re&ons of the Worlil. Turkey."'lIt o land than industrial agricultur f e. has also enltanced . In Muslim cultures where the trad"ition of purdah keeps women confined. "' . The major wheat-pro ducing countries in the Third World­ Inelia.ly. Bangladesh. to a much lesr degre se . and chemical inputs. emphasized early. "male agents do not have easy access to the women farmers. In an important trend.. A resurgence of customary ag/"lcultural prachces."ASia and. transportation and other necessary industries. Brazil. and rice to urban center::. and Vietnam-were cultivating more than 87 percent of the rice acreage attrib­ uted to the green revolution by the 1980s. indonesia. accounting for 86 percent of the total green revolution wheat area by the 1980s. �c1uded provisions for "self-help" measures in the contract for food aid. avail able technical know-how. this was an import­ subs/l/ul/On strategy. to buy them. as producers add mechanical. in 1966. Meanwhile. Maize... �. The rising incomes and rugher yields of the wealthier households gave them a competitive i\iivantage over their poorer neighbors.. Within households. read green revolution technology A reformulation of PL-480. usually found !h� m­ selves "out of the loop"--{\ot only becausefinancing but also because of institutional barriers in agricultural extim­ sion traelitions of transferring technology to male heads of households.jo c�ntrast. as well as in irrigated regions of India. As it increased crop yields. Some poor households were forced to rent their land to their richer neighbors or lost it through foreclosure to creditors. . the mechanical and chemical technologies associated with the green revolution either reduced farm­ hand employment opportunities for poor or landless peasants (where jobs f the diffi"Culty of obtaining ment. . .. governments sought to improve agricultural productivity and the delive ry of maize. "' . participants needed a regular supply of money or creelit. Argentina. a growing numb er o f f anners around the world are rede fining modern agric ulture along organ ic and diverse lines (still uSing some modern technology ) because it is a more sus­ tainable f orm o f f anning and can produce much more (varie ty o f f! ood per .." These agencies aimed to weave First World agricultural technologies into Third World commercial fanning. Earticularly poor women. farming households. . The green revolution package of hybrid seeds and supporting inputs had to be purchased.. wheat. where sugar plantations or coffee f anns would replace traditional agri­ cullure. lUJt:'L1 \Ldl� l�':iUS ro t:. and Brazil-planted the bulk of their wheat acreage in the new hybrid varieties. such as Mexico. The green revolution produced dramatic yields. [and use of] . this high-input agriculture nurtured a process of eco­ nornic differentiation among. and often within. . ." COWlterpart funds routinely promoted agribusiness and green revolution technologies. From a national perspective . Mexi co. Pakistan.". these provisions al ays included "creating a favorable environment for private enterpnse and uwest­ equipment. This practice was very pronounced in colon ies.� . Because little commercial whea t or rice is grown in much of Africa. the Philip pines. farm machinery and The expansion of green revolution agricu lture in the Third World emb0d­ ied the two sides of the development projec t: the national and the interna­ tional. was not a very successful green revolution crop. complemented with . development of the agricultural chelIUcal. Women. difficult to recruit. the wealthier ones were more able to afford the package--and the risk-<>f introducing the new seed varieties.. Stagnant food production in Africa stimulated soaring imports of wheat destined largely for the grow ing urban classes " . In the context of the internationa l food regime. J. '''' ."" Among farming households. . such as crop rotati on and South American . tile green revolution largely bypassed that contment. Final. often with easier access to government services than their poorer neighbors who lacked the potitical and economic resources to take full advantage of these technologies. Agnwlture becomes industrialized and may depend On hired labor to complement f ann machinery. .ustai nability. and female agents are . biotec hnical. modern f arms specalize in one or two particular i crops or IlVeslock activities. Although varying by reCipient. . With specialiZJItion and increasing scale comes capital inten­ sity. Latin Am�ca e have captured the benefits from the new grain varieties. Rising land values often hurt tenant farmers by inflating their rent payments.arly lY'/Us) The Development Project: International Dimensions 6S (Continued) From an intemational perspective> the food aid program helped.

[we planted) ductive variety. . repro duces m his production practices and in his self-understanrling the essential mgredl­ ents of the conception 01 development advocated by the National . Growi ng rural poverty. vidual negotiation of dominant systems 01 mearung and representatIOn IS fundamental to how the experience 01 power contnbutes to the perpetu­ ation and/or transformation of power relations. Third World gov­ ernments wanted to feed growing urban populations Cheaply. yield disparities increase between irrigat ed and nonirri­ gated d. One cultivated PQ}Qflto �n� � e m used . Indeed.S. I • CASE STUDY What Produces a Development Mentality? Antirural Biases of the Development Project Within the framework 01 the development project. gender and household differentiatio n have occurred. ." "class. Chile. rtid not go unnoticed in the countryside. This is perhaps because 01 the ingrained rationalism of the categories through which we conce� tuahz: . Most studies. ." "peasant. deepening inequities that began with the privatization of formerly CO!ll­ munal lands under colonialism. Ecuador. devaluing farming with the tradi­ tional collee variety. Santiago Mejia.' and urban that sociologize individuals and their relationships As Dia Mohan shows : in a perceptively provocative study of West Bengali cultural politics. inclurling this one. .is­ advantage 01 poorer and therefore more vulnerable households. Ibe sprearJ. part 0 f a Strategy to undercut Iartical insurgents and stabilize rural . London's archetype grower. What else . lrom health and education services through employment schemes to the delivery of lood aid " This bias was central to the con­ struction of development political coalitions in the postwar �ra. � In examining the adoption of green revolution technology in the Colombian coffee industry. . mdl­ . . agribusiness' exacerbation 01 inequal­ ities is qualitative because the social protections within precap italist inequalities are systematically eroded with the promotion of the agribUSi­ ness market culture and the exporting of load. and Venezuela all enacted land reforms. now that he has adopted the sCientific practices of FEDECAFE-style technification: Before . leaving changes m systems 01 oLlght and identity in U'e background . Thec Alliance for Progress (1961)-a program of nationally planned agrarian reform coordinated across Latin America­ provided an opportunity for the United States to suppo rt land reforms as One of the underexplored dimensions of development is the way people Ihink and act in or on the world.istricts. . Brazil. At the village level. Between 1960 and 1964. I could a coffee grower sow? so indispu tably it had to be the pojorito because there wasn't any other more pro · ru d lmentar y with whatever resources one happened to have because he . Ln tema tionaJ Dimensions 67 were mechanized) or degraded working conditions where farmhands were exposed to toxic chemicals. the term urban bias has been coined to refeL to the system atic privileging qf 4Iban interests. . fore­ round the social-structural changes. '1 popul a�s and reforms attempted to reproduce the Amencan farru y ' u m model. and root crops that provide all-important staple peasant foods. which was neither silent nor passive.gfagribusiness lypiclllly e. however. Mejia expresses the shift in his beliefs.Ynct'Tbales social inequal­ ities in Third World countries. land reforms swept Latin America. which was al far that time under occupation by U. such as herbicides. fi st introduced in the late 1940s in East Asia. didn't have anyone who could say "we have a mu ch beI Ier sys tem. When the Cuban Revolution rerlistributed land to poor and landless peasants in 1959.J lie uevelopment . " or that "it's alIeady been tested and proved" like the extension agents do . So. the Dominican Republic. Peru. a rushc manner. rural dissatisfaction with urban bias. At the regional level. Costa Rica. Such coalitions were firmly based in the cities of the Third World . Such disparities and the emphasis on marke ting wage foods for urban consumers discriminate against the produc tion of rain­ led grains. as a method 01 reducing tenancy and promotmg owner tancyan occupancy on a smallholding basis " � . the world.53 Generalizing. Christopher London shows how coffee growers rethink their identity in the process of technification of coffee produc­ . both to maintain their political support and to keep wages down." Perhaps most significantly. These Iand refor�: ' were a model m two senses' first as intervenllons to quell peasant rrulid . pajnrilo. Panam a. whereas commercial agricu Jture exposes peasants to competitive and unpredictable market forces. and persistent peasan t activism over the question of land distribution put land reform on the political agenda . Federation of Coffee Growers of Colombia (FEDECAFE). hon. military forces. In an mtervlew. Attention to the urban areas.l. Nicaragua. beans.roJect (Late 19405 to Ea rl y 1970s) The Development Project. second . in Asia and Latin America. categories such as "'market. . Private property distrib ution often favors males at the expense of women. often to the d. These inequa lities take a number of forms. Guatemala.

The result is of ing stream of peasants mi ating to overcrowded metropolitan centers Latin America. the market. especially in Indonesia. the long-term decline of Third colonial era. Indeed." In Brazil. considerable '(I'e"peasantization" agrarian to stabilize rural populations where p reviou purportedly ledged that or been insufficient. and private property that shape the possibilities and understandings of development. bunning the forest to clear new and often infertile land. Instead. the modem men­ t ality. Malaysia. At this point. . begun in the tand­ resettlement programs (mainly in Latin America and Asia) notwiths done Iittle --to ha lt. Resettlement schemes on frontiers. Brazil. President McNamara. having been left behind.• • •� ... and the World . alongside the strengtherung of the agribusiness sector. notably soy products." ers were displaced from the land by the government 's sponsorship of agro­ mduslnalizallon to enhance foreign eXchange earnings from agricultural resembled "a war against the earth's rapidly dwindling tropical forests. under what conditions do people either accept official versions of development or reject them as forms of rule and proceed While there are powerful institutions such as the state.cultures alway ons of the es.. The exports. These stra tegies sometimes Simply relocated rural poverty and grew by 92 percent. imbalances. and Africa. Land reforms and land culture. between 1 960 and 1980. including forests. The assumpti their surrounding environment themselv peas­ pment project heavily d.Uplll�11l " 'UJt!t:t lLate l'PIVS to t:.mauonal U1. the grower is also embracing. these interventions typically have under­ y of the peasant econom 'O The commercialization of agriculture on as a livelihood stra tegy mines the viability of household food producti The for peasant popula tions and a subsistence base for the rural poor.. the reforms exempted farmland undergoing moderniza tion and dea l t with what was left. ant culture. In Latin America. The Bank itse ll acknow reforms had failed 1982 were 01 its 82 agricul tura l projects between 1 975 and almost hall d dis­ in alleviating poverty.. is seen as being primitive and better for agencies.arly l!1/Os) C 1 ne uevelOpmem l'fOJecl: Ime. focused on redistributing only the land that had not already been absorbed into the agrib usiness complex. c:. Arable land overall increased by as much as 1 09 percent In Latin Amenca and 30 percent in Asia but pOSSibly declined in AiTica. But as all things evolve so one has to be in agreement with development. devised a new l'0verty alleviation program." occurred during this period. roughly 28 million small farm­ a multilayered enterprise. The key was ind ustrialization. dovetai with international assistance. development to explore alternative p ractices of development? Sources: London (1997). Asia. were typically financed by the World Bank. via credit." Third W ments embraced national induslnal growtb as the key to rais ing living or standards. In eifect. Through World peasant ag·n and world markets.menSIOns (or that reason we and OUI grandfathers had 10 do it that way because it was the first thing that appeared. the World Bank.iscrinUnated against the survival of develo it may have seemed. where "his own past . extending all the way down to farming technology. into commer­ incorpora tio n of survivin basic food fanning " cial cropping at the expense of is that neither the The lesson we may draw from this episode of reform on into monetary relations is integrati resettlement of peasants nor their to adapt to s a sustainable substitute fot leaving peasant. . . two-thirds of the additional food production between 1 950 and 1 980 came from frontier colOniza tion. however. The displaced larmers spilled into the Amazon region. to a greater or lesser extent. under . National strategies of economic led growth.the deterioration ing. for example.. leakage of credit funds to more g peasant smallholders." L ondon observes that. Mohall (2003). It was m ul tilateral scheme to channel relton Woods institutions compJe­ mented bilateral'aid progtams in providing the conditions for Third World orld govern­ countries to pursue a universal goal of "catch-up. of the colonial division of labor. and land con­ environmental stress associated with population growth poor as centration steadily downgrades survival possibilities for the rural a grow­ commOn lands and forest timbers for fuel disappear. Summary The development project was are delineated in the following insert. as materially impoverished as a combination of state _ neglect and competition in national . The land reform movement. credit to smallholding peasants and . Juts accelerated. the outcomes include unsuccessful ds of millions of peasants throughout the Third of hundre placemen t powerful rural operators. Third Worldism came to mean correcting the distortions. and the number of small farmers with an average of two hectares of land including frontier lands. in embracing the new agricultural technology. its components a Persistent rural poverty through the 1 9605 highlighted the urban bias of the development project. and India. One has to be in agreement with develop ment.

an agrarian r f e orm strategy encouraging agro-industrialization. As development economists had predicted.mension is is the variety of processes during the postwar era as the development y here.ting countries mto the Western orbit. and ethnic f inequalities. But on closer examination. They also shaped patterns of. Some ingredients were the f ollOWing: • resources and ideologies. This is the subject of Chapter 3.t World to changes in the Third process. As colonialism collapsed. a natlOllal framework f economic growth. further depressing in the countrySide commoruy migrated to the lated a massive relocation of wages. But this transfer was not confined to national arenas. Military and economic aid programs shaped the geopolitical contours of the "free world" by integr. development as nsmg liVing standards. and capitalist farmers. Aid programs bound Third World development to the overall enter­ prise of global reconstruction. the economic growt Third World countries had their own local true. protected by cold war military relations. race. realization o development through gender. Not surprisingly. • • • • • • . and revenlle generation.develop_ ment through technological transfer ana subsidies to industrialization programs.I ne uevelopmem I [n this way. In this way. exports of First World food and agricultural technology revealed a global rural-urban exchange. and that is not the t detail such variet nati onal forms. We have reviewed here the significance of food aid in seCuring geopolitical alliances as weU as in reshaping the international division of ization depended on the transfer ot rural resources. Third World.rd expansion was linked with the rise of new revolution technology to World. example of these transfers. or an international framework o aid Imilitary and economic) bindf ing the dEveloping world to the developed world. Tlte Western or } experience provided the model. sodal classes in the TIti. and we have seen how they condit supplying working-class con­ Transfers included basic grains directly ing more affluent consumers sumers and feed grains indirectly supply Fin. labor. Social changes within of the stimulus derived from a common global face. politi­ cal elites o newly independent states embraced dEvelopment as an f The dEvelopment project was an organized strategy f pursuing or enterprisef growth. is In th chapter.g. and an international institutional com­ . plex provided financial and technical assistance f national dEvelopor ment across the world. embedded in states and spread through markets. Rather. the export of green ntiation among men and Third World regions stimulated social differe cers. the Third World as a whole was incorporated into a singular project. laborers. despite national and regional variations in available resources' starting point. which linked changes e under these circumstances was con­ World. This reverse was also h policies. legitimaCl .t World agricultural through the livestock complex.a.Third World industrial­ as critical to our understanding of The international di. We caMo in understanding how the this story. nevertheless. this scenario stimu the international division of industrial tasks to the.. rationality alld scientific progress). One could say that all chang . a growth strategy f avoring industrialization. especially transfers of economic ditioned by international relationships � What Are the Ingredients of the Development Project? . we have examined one such ion the rise of new social structures. nallonally managed economic growth. reshaping labor. we are interested oint of in motion a globa l dynamic that embedded e\'elopment project set gical n an international institutional and ideolo national policies withi e of national framework was theoretically in the servic framework. At the same time. an organizing concept with universal claims le. Indeed. and ideological orientation. much in the Fin. women and among rural produ the combined competition of Those peasants who were unable to survive consumers) and high-tech famting cheap foods (priced to subsidize urban cities. development-state initiatives to stimulate and manage investment and mobilIZe mufticlass political coalitions into a development alllllnce supporting industrial growth.

• PART II From National Development to Globalization .

the deveJop­ ment project settled on the twin foundations of 'f reedom o ellterprise and f the U. However. Countries differed in their resource endowments and in the character of their polit­ ical regimes-ranging from military dictatorship to one-party states to parliamentary rule.S. However. expressed in substantial military and financial aid packages. they do express the unequal global distribution of income as purchasing power. The development state would partner private enterprise. or timatcs may overstate poverty because per capita income Thes<! calculati. gap belween First and Third World tro: erentiation among. up" appears to have been somewh. about 650 rnilIion people were estimated to be living in absolute poverty around the world. bilateral disbursements of dollars wove together the principal national economies of the West and Japan. Common Crisis: North.S. As the source of these dollars. 10 this chapter. South & Cooperation f World Recovery. accord­ ing to calculations from the 1983 Brandt Commission's report.e dJ velopment project held out the promise of parallel natiQll .191 in 1950 to $4.diff as the "ewly industrializing cOWl. These·in1:luded a growing. However. remained steady-about 7 percent to 8 percent-but the difference in gross national product (GNP) per capita between First and Third Worlds widened from $2. Third World political elites partici ated in • a development project [fa ed by geopolitical security concerns.' '"T"'\J.Thi illg stalldards and a substantial.tries shot ahead. 10 this arrangement.839 in 1975 (in constant 1974 dollars) ' 1o the mid-1970s. lhan. divergent forces soon appeared. 4alhec." where international unity would be expressed politically in the United Nations and organized economically through the Bretton Woods institutions. the numbers of the world' 5 absolute poor had increased to 1 billion. and.-centered world economy in which American governments deployed cnilitary and economic largesse to secure and expand an informal empire as colonialism receded. with another 300 million living in relative poverty-with annual incomes between $50 and $75. Roosevelt invoked an image of "one worldism.. dollar as tire international currency. as a pro­ portion of that of the First Wodd. the per capita income of the Third Wodd. Roosevelt's "one worldism" yjelded to President Truman's "free world­ ism.1 programs of industrial development.S. Nevertheless. President Franklin O. because purchasing 74 . 10 the postwar era. By 1980. assisted by programs of multilateral and bilateral aid.. the motive to "catch. the rate of Third World economic growth exceeded that of the First World. U. World we consider how these divergent forces came about-suggesting that they signaled a dramatic reorganization of the world as an emerging global production system spun a giant web across nation-states.. The development project also involved reconstructing the world econ­ omy. when we take into aCcoWlt population growth rates and per capita income.S. With the West's focus now on cOTltaining Soviet and Chinese power. Rising standards of living Divergent Developments Between 1950 and 1980. At the time. It also exceeded the rate of growth of European countries during their early.lhe Glob l Economy Rebom .national manufacturing and agricultural sectors. comparable phases of development. Federal ReselVe System led those countries' central banks in regulating an international monetary system. diminishiog.at illusory. ns cannot account for cultural practicelt that generate alternative liveJil\oOd possibilities. the U.stntes within the. 75 3 The Global Economy Reborn Under cold war conditions. would depend on producing "national products" in an economy in which industrialization linked. as the cold war intensified in the late 1940s. the expressed goal was of a convergent world of independent states at different points along a single path of development." This marked the rise of a u. Nonetheless. the official multilateral definition of the absolute poverty line was an annual income of $50.

?pment reveal the growing inequalities of income and access to resources within these countries. Argentina. NICs fuJfillea -:ffie �!iOI\ of Jising i ' sliiildi r egitimlzing the devel'= and upward mobilityin the international 5Y!te ." By 1972. Singapore. as well as those of the First World (6. Moreover. the figures cited earlier do not f wealth gap oetween First and Third Worlds was evidently enlar ng.: · leetwlly of the forces released . tured exports..• . and Chile-expected to follow the same path.s becom nbt been if that measu more and mOle. Indonesia. respectively) ' The other middle-income countries-especially Malaysia. Thailand. and a growing number of people living at or below the poverty line. The severity of this pattern often depended on the character of the particular country's political regime. market for manufac­ through inequalities.l Thus. Taiwan. six Third designed to help developing countries as a group have trve for (thel least-developed countri They face dif icul­ ties of a special k ind and intensity. with the economy expanding at an annual rate of around 10 percent during the decade of military rule after 1964 ' But there was also a net loss of industrial jobs. ..' however.tratea:..6 percent the 1960s and 6. more than 50 percent of the increase in value of Third World manufacturing occurred in oniy four countries.. variously estimated at 50 percent to 80 percent of the population ' Despite. The South Korean regime enlarged consumer purchasing power by control­ ling the differentiation of income between rich and poor. six countries were Hong Kong. 16 percent in Asia. V � \' II::IUt'JHt::. the NI also d I1L. Argentina. too.3 percent.. "It ha. with per capita growth rates of 1 percent or less. Cs reveated two siClili oL the r of th On one hand. countries and regions differed in levels of industrialization (the measure of development): The manufacturing portion of the gross domestic product (GOP) in 1975 was 5 percent in Caribbean. South Korea.. Taiwan."" The notion of a universal blueprint was .ll. the share of manufactured exports from the NICs controlled by transnational corporations (TNCs) was 20 percent in Taiwan. India." The distribution of industrial growth in the 'Third World was also highly concentrated.." Between 1967 and 1978. a rising share of the total income gained by the top 10 percent of the population. They cornered the bulk of pri­ export production facilities in textiles and electronics in South Konea. such international inequality is cumulative. while development itself is realized developm�lf!. and Singapone. as a select few played the catch-up game more successfully than others and sprinted ahead. The average growth rate for the 'Third World in the 1960s was 4." Across the Third World. and Indonesia. Iran. most of the foreIgn investment in electronic assembly centened on the Asian NICs-Hong Kong. cI r The Newly Industrializing Countries (NICs) Differentiation among Third World countries increased.6 percent and 4.. In other words. and Brazil.. with per capita growth rates of 3 to 7. South Korea.by::the'aevelopmenfproj f.ldtiUtl The Global Economy Reborn 77 power commands resources. 43 percent in Brazil. grew at rates of 7 to 10 percent. Industrial growth fueled by intemabonal assistance often relied on imported capital-intensive techniques and neglect of food production.. . respectively). Between 1966 and 1975. for instance.5 percent ' These aiwan. and preferential access to the U. despite the gi World newly industrializing countries (NICs). Mexico. its "miracle" growth depended also on vast resource endowments.." Much of this was concentrated in developing Dn the othei hand. Mexico. their extent and Significance depend on government economic and social policy. . they need help specificaUy designe clearly.6 percent. or perhaps because of. South Korea. the evidence in the late 1960s to early 1970s suggested that most Third World countries were running to stay incneasingly behind. with a much smaller population (it had two-thirds fewer people than Brazil). � �� � _ �en 111 project They belonged to the group of middle-income 'Third World countries whose annual manufactunng growth rates (7. By contrast.JIUUd. stabilizing rural incomes..2 percent and 3. which was roughly one-quarter of the distributional spread of income in Brazil ' As authoritarian as the South Korean state was/ its pattern of indushial­ ization depended on a comprehensive land reform program.L H lU \. The typical social consequence of these patterns was that growing numbers of rural and urban poor were deprived of the benefits of economic growth. vate foreign investment. In 1969. IH • " . The promise o tire development project . and 25 percent in Latin America and the Development (OECD) reported. . South Korea.2 percent.fading to deal with their problems. the.S. the Organization for Economic Cooperation and Africa.. followed a different course.. The so-called Brazilian economic miracle followed the pattern described above. Turkey. T and Mexico.8 percent in the 1970s) exceeded those of their low-income 'Third World associates (6. and 90 percent in Singapore . BraZIl. Brazil's well-known extremes of wealth and poverty. while about two-thirds of the increase was accounted for by only eight countries: Brazil.

. ..llons not predicted in the development model? 50llrces: Cumings (2 987). workers demanding higher wages. South Korea. finanCial. to the Third Wo ld. . Latin NICs adopted the export-onented Widespread EOI signaled a Significant change in strategies of industri­ alization. troops. toys) �o liigl:ier::.. Third World Industrialization in Context The rise of the N1Cs appeared to confirm that the colonial legacy was in retIea t and that industrialization would inevitably spread from the First and Second Worlds into the Third World. all state s may have been equal.industries steel. ' req uesting subsidies-ruling elites have less fIeXl 'A'hat does i t mean to consider the NICs as showcases of development The N1Cs demonstrated success at the same time as they dem onstrated departures from the model of national developmen t. In the Bretton Woods system. petrochemicals. market helped sust ain authoritarian regim es that stabilized economic growth cond itions through such measures as invest­ ment c ordination and the political control of labor.an NICs financed their import-substitution industrialization (lSI) v. with some variation.. respectively. The Economisf (August 27.a the export of labor-intensive products because they lacked the resource base and domestic markets of the Latin N1Cs. u··v·· The Global Economy Reba". .. the other four sta tes-Taiw an.. depended on the size of a coun try s domestic market as well as access to for­ � industrialization (EOl) model of the Asian N1Cs to earn foreign exchange. machinery). 79 CASE STUDY The NICs: A n Exception that Disproved the Rules? prop itious business conditions. Each of the NICs.. justified the BAIR regime in his paternatist way : "1 do not beheve that democracy nece ssarily leads to development.S.... Military aid and prefer­ ential access to the U. Neither were they an arbitrary grouping of midd le­ Income states. During the period of maximu m growth. they coor­ dinate the regional entrepreneuria l networks of the Chinese diasp ora.. but the N1Cs appeared to compm­ nuse this expectation. and Braz were distinguished by one-party or military rule.l geopolitic al positions. In the East Asian expansion of the last quarter of the twentieth century. rarmers 'billty. ove<! through the low-value dustries (processed foods. First World consumption patterns were rntensified w. The former prime minister of Sing apore. South Konea and T aiwan gar­ nsoned U.. and producer services. Singapore. EOI became the means of relocatmg the manufacturina of consumer goods. Theil" higher rates of economic growth were fueled by enormou s transfers of economic assistance from the Western powers. disorganized labor.. South Korea.. Hong Kong and Singapore have functioned histOrically as entre p<>ts (port c. they serve d as vital centers of marketing. autos.. but SOme states were more equal than othe rs in their global position. . The term bure aucratic­ auth oritarian industrializing regimes (HAIRs) was coined to describe this type of government. clothing. Mexico. In addition. Third World states welcomed the new investment with corporate concessions and a ready supply of cheap. Whereas the the early phase in the 1930s and graduated to the more mature phase m Latin American NICs (MexiCO and Brazil) began the 1950s. Mexico. .. Lee Kua n Yew.th � . The South Korean state virtually dictated national investment ' � pattemsY Industrialization il eign exchange for purchasing First World capital equipment techno o8'es. whe ther through repressIve forms In East ASia Or corporatist forms in Latin America.. Within the context of the cold war." With the exception of Hong Kong. and T aiwan. and Brazil-h eld strategic regiona. networks.. given their proximity to North Korea and China respectively. Economic growth was supposed to stimulate dem ocracy. most of the N1Cs had strong develop­ ment states that guided public investment into infrastructure development and industrial ventures with private enterprise.ties) m South China and the MaJa ccan Straits.. orgaroized increasingly by TNC investment and marketing firms.s....va lue. and then machinery and compu ters. _ . The exuberance of democracy lead s to indiscipline and disorder ly conduct which are rnurucal to developm ent. strong geo olitical force p s contributed to their industrial success. . For First World As their technological rents rose." He may have meant that when dif­ ferent classes put cOnflicting demands on the state-indust rialists seeking whe n their industrial success and leadership depended on cond. I believe that what a country needs to deve lop is discipline more than dem ocracy... 1995:15). At the same time.. The other regional variation was that the As. the Asian NICs (Taiwan and South Korea) began manufactur­ ing basic goods in the 1950s and did not move to higher value manufac­ turing until the 1970s. .

the stimulus came from the relocation of the Japanese industrial model of hierarchical subcontracting sites across the region. corporations. electronics. ister of commerce stated. often of goods assembled for U. This heralds the rise of the Ul{)rld f actory: invol ving the prolifer­ ation of export platfonns producing Ul{)rld." The phenomenal growth of export manufacturing using labor-intensive methods in the East Asian region. Thus. shirts. There was a new "fast track" in manufacturing exports."u The maquiladoras earn about one-third of Mexico's scarce foneign currency income. South Korea. and toys. as depicted in the athletic shoe commodity chain China has become perhaps the prime location for low-wage production in the global economy. a pair of jeans. rather than national. cost. a cell phone. RCA. Argentina. cally dispersed sites in assembly-line fashion.• 'V'" l �aUUII<U ut::vt!lUpment ro vloballzatJon The Global Economy Reborn in the 81 easy credit and a mushrooming of shopping malls and fast food 1970s. . Brazil. signaled the this period. tions were in electronics. were part of a competitive world factory strategy. sewing swimsuits. Singapore and South Korea . Taiwan. by the 1970s. Hong Kong. wage and paying minimal taxes and import duties to the Mexican government. Fairchild. and National Semiconductor. Malaysia. finns establishing assembly plants in the BlP concentrated on ganments. the Asian litical reasons. which was superseding the traditional track of exporting processed resources . The global consumer and the global /abor f orce reproduced each other.s. In the Wall Street Journal of May 25. In Asia. accounted (or over 55% of all Third World industrial production but only about rise of a global production system and a arrangements lfJOrld labor f orce. • CASE STUDY The World Factory in Often. Second. and undergarments. the Mexican min­ "Our idea is to offer an alternative to Hong Kong. Bendix. In 1965. Texas Instruments. The Mexican Border Industrialization Program ished components would come to (HlP) to paralleled this "decentralization" of industrial production. and function. Japan's historic trade and investment links with this region have deepened as Japanese firms have invested in low-wage assembly production offshore.S. provides a clue to a broader transfonnation occurring within the world at large. follOWing a global trend of U. markets to exports. employing Mexican labor at a fraction of the U. the Mexican gov­ ernment implemented the BlP to allow entirely foreign-<>wned corporations to establish labor-intensive assembly plants (known as within a 12-mile strip south of the border. Motorola. First.'" maquiladoras) 10% of Third World produc­ finns. were responsible for less than tion but 35% of all Third World manufactured exports (natTowly defined). The Asian NICs were exceptional in their export orientation for geopo- Ocean was a strategic zone in the U. as well as machinery and transport equipment (Third World bound). The NICs accounted for the bulk of this export growth.S. There were also 108 ganment shops. sweatshops (unregulated workplaces) subcontracted by the Jarge r etailers " some subsidiaries of large companies such as Levi Strauss. World products (an automobile. In each case. Japan and Puerto Rico for free enterprise. led by the NICs. . 1%7.s." 'Third World manufacturing exports outpaced the growth in world manufacturing trade during a miniature computer. golf bags.s. and other small The World Factory The expanding belt of export industries in the 'Third World. or an electronic toy) emerge from a single site or a global assembly line of multiple sites organizing disparate labor forces of varying skill. and its composition broadened from tex­ tiles. Concessions to 25% o f all Third World manu­ factured exports (narrowly defined). The 168 electronics plants estab­ lished by 1 973 on the Mexican border belonged to firms such as General Electric. toys. military alliances opened U. the East Asian perimeter of the Pacific NICs have reaped the benefits of access to the near-insatiable markets of the United States and Japan. 70 percent of the opera­ electronic assembly operations to southern Europe. increasing their share of world trade from 6 to 10 percent between 1960 and 1979. seeking low-cost labor in response to Japanese penetration of the transistor radio and television market. cold war security system. Mexico. fums relocating and Mexico. and clothing in the 1960s to more sophisticated exports of electronics and electrical goods (First World bound). As noted in the previ­ ous case study. The government anticipated establishing "special economic zones" in coastal r egions in the 1980s to . Global and regional context has been as influential in their growth as domestic policy measures and economic cultures. Litton Industries. footwear. and lnilia . products. . as well as regions such as Mexico's border-industrial zone. U. producing and assembling diagram in the Introduction. ." Asian NlC development was achieved by rooting their industrial base in the world economy. Zenith.s. whereby unfin­ this new industrial enclave for assembly to be sold on the world market as a world product. By the early 1970s. the production steps are separated and distributed among geographi­ China this development by a completed product.

or buttonholes. As these companies seek to reduce Uleu produc­ . among others) in Dongguan City. when the East Asian NICs had emerged as "midd le-income countries" with relatively high-skilled labor forces. Semiconductors-notably (in addition ID cards). As China attracts global 45 percent of direct foreign investment in Asia. instructing them in retooling their production to accommo n methods in their offsho e changing fashion or reorganize productio s plants. and garments for the global economy. the portion of Chinese exports from foreign-owned plants grew from 1 to 40 percent. is it possible that China's 1. electronic products such as computers and digital telecommwucahOns mobiles. industrial exporting. In her investigations of shoe factories (producing Reebok and Nike prod­ ucts." What appears to be an expanslOn of . While this may appear to be an impressive "industrial revolution" in China. China took that computer chip-are the key to the new informahon technologies undergird the accelerating globalization of economic relanons. toys. Silicon Valley or Scotland' s Silicon Glen to � conductors. it is steadily dismantling the belief and expectation that all nations develop through stages: from labor-intensive industries. with Korean or Taiwanese managers using mili­ to requiring a deposit of two to four weeks' wages and confiscation of migrant taristic methods to break in and control the migrant labor force The global proliferation of low-wage assembly marked the strategic use of export pla tforms chiefly In the Thtrd World by competing Third World countries. from banking to textiles to auto­ and services. or Sri Lanka. In tum. Ireland. the ratio of factory wages in China to South Korea/Taiwan to Japan was approximately 1:30:80. headquartered m New York. tasks and shifted offshore to export-processing zones. or shoe soles. reconstituted as world factory jobs. such as clothing priced at $1. And during the 19905. or Tokyo. Between 1985 and 1996. T welve-hour shifts (with enforced overtime) and seven-day workv. and Japan and. global in telecommunication technologies enable firms. in fact it is of absolute global Significance.2 billion educated but impressively cheap and well-regimented labor force threatens to puncture national development illusions--especially those of prominent economists. nationally located production loses pennanence. Malaysia. TNCs from the United States. information technology globalizes the production of goods . now over­ array of electronic items. and the The Strategic Role of Information Technologies The world factory system is nourished by the technologies of the " information age. from a national (accounting) perspective. Morocco. Myerso>t (1997). And. China became the preferred site for foreign investors--especially Korean and Taiwanese investors. and semi­ II both stages of production are fragmented into low-skill China). Thus. while tens of thou­ sands of migrants from China's poorer hinterland swell the low-wage workforce. given the low skill in much electronic assembly and its dispersion to export platforms across the world. IS mcreas­ global ingly a globaUy organized production system. attract­ ing foreign investment. a huge migrant labor force has gravitated toward coastal industrial regions. As world factory jobs. As the cash economy has expanded in China. to coordinate production tasks cities such as distributed across sites in several cOUI\tries.reeks are common. Angeles to subcontractors in Bangladesh. Thus. . As partiClpants m assembly lines. Greider (200J). to capital-intensive industries.OL roorn l\lanOnal UE!VelOpment to Globalization The Global Economy Rl!born 83 attract foreign investment. nations may specialize in producing just airplane wmgs. London. who were experiencing rising labor costs at home. In 1995. such as steel. . to the extent that the export platforms are substitutable. Information tedmologies allow rapid circulation of production design blueprints among sub­ date sidiaries. This was a Jeadmg mdus­ try in establishjng the world factory. later from some tion costs to enhance their global competitiveness. are relocating to the 25 cents an hour jobs in Singapore. Thus. Fnison 11997:D4). Local farmers now live off the rents from the factories. the NICs' strategy of export-oriented mdustnahza­ lion sparked the world factory phenomenon: from sweatshops m Los Caribbean. technology enable the global dispersion and coordination of production and circulation in other industries. Advances r China now produces about half of the world's shoes and a proWerating ('\ assembly-line jobs away from other countries (Mexican jobs. or automobile dashboards. autos. we find global assembly lines stretching from Cahforrua assembly Sites m Talwan. so export platforms have spread. they are already and toys. By the mid-I990s. Europe. sociologist Anita Chan observes that vast concrete industrial estates have mushroomed on former rice paddies. How has this come about? Microelectronics. who consider today's sweatshops as just the first steps for developing countries? sOllrees: Clmn (1 996:20)." Especially important in the latest of these r�volutions the mtegrated is the semiconductor industry.50 an hour.

lobbyists in Washington. there was a marked sites in several countries.:les " American Pontiac" Where the . a fa�ade.. and consumer goods (cameras. among specialized processes locate export mdus try (manufac"":"'g or instead of collnt ries specializing in an specialize as part of a cham linking agriculture).750 to Japan for advanced components (engines. . Renault exchanged firm after General Motors. Parent firms tend to monopolize high tech­ nologies. TVs. These may be used to gain oved its computer memory chIp pro­ finance-for example. lawyers and bap . 11. or countries . insur." His example is the $10. $750 to West Germany for styling and design engineering. TIlt Work (Vintltge Press. . engines." He views the corporation as "no It is. and auto parts). and video recorders) moved offshore for production in cheaper sites. component goods (pharmaceutical stock. /lsm f o Nu/ions: Preparing Oursclvts for 21st Ctnfury Capltn number of \.000 Money Goes and electronics).000 array of decentralized groups continuously subcontracting with similarly diffuse working groups Pontiac: Of which about $3000 goes to South Korea for routine labor a nd assembl y Ireland! Barbados Taiwan! Singapore Figure 3. in 1999. and. $1. The global network features in Robert Reich's portrayal of a U. General Motors drastically cut costs in 1999 by subcontracting with South Korean and Japanese tool makers. world production sites of the 1960s.. TNCs often organize production hierarchies and aWances based on jOint ventures with access to technology.13 shareholders-most of whom live in the United States. Barbados for data processing. but an increasing ance and heaJth care workers all over the country. electronic games. and Japan for small components.IJ'9 nuUl ''IaUOnal J..JeveJopment to <. transnational assembly of a "world car. Such "decentralization" of tments in the First World. The rest. 1992).kers in New York.1 Global Sourcing: A $10.mSlOn o labor The global production system depe d in different world Sttes. .S. From the end t from the First World to the Third relocation of rn. f nds on a technical d.in Source: Robert Reich. and General Motors With the opportunity for global coordination (and mobility) embedded in Wormational technologies. increasingly. with component processes (assembling.lobalization The Glob The Global Production System The consolidation of the world factory system has SpWl a giant web of exchanges across the world. some . Here.. operations. and about $50 to Ireland and Detroit.. Thus. Or sweatshop districts. less than $4000 goes to strategists . TNCs subdivide production sequences according to technological or labor skill levels and shift labor-intensive activities to offshore export platforms or processing zones. p. as well result of declining profitability on inves p to attract foreign uwestmen t mto as Third World state entrepreneurshi of which involved sponsorship of local industrialization programs. to form the world's fourth largest auto oyota '· and T firms in other ..n'ifaeturing investmen manufacturing was the combmed World. export processing zones. Relations across and among these plants are vertically and/or horizontally ordered. But the web lacks the synunetry of the spider's creation. Global production systems consist of multilayered divisions of labor among plants sited in global or regional networks. Ford. $250 to Britain for advertising and ma rketi ng services. $400 to Taiwan. Economic globalization is neither unifonn nor stable. behind which teems an all over the world. and testing computer chips). etching. transa>. Singapore. Hyundaj impr re with Texas Instruments ill the duction capacity through a joint ventu its finance for NtSsan technology 1980s. markets. depending on the relative hierarchies of skill involved in producing the commodity.hom are foreign nationais. corporation that coordina tes multinational inputs in an integrated longer even American.

'I he Global I:.conomy Hebom industrial (and agricultural) export zone s. In the 1 9705, 50 percent of all manufactured exports from U.S.-based TNCs were from Brazil, Mexi co Singapore, and Hong Kong " And there was a shift from prod ucing national product to producing a world product, as illustra ted in the case study of the world car."


activities. Led by Honda, huge car plants are being dismantled and their

��lume vehicles and a growing requjrement for low-cost, flexible manu­
facturing for low-volume production closer to their markets. Ho� da, having installed a single global manufacturing system, can now SWItch models overnight by changing software in its robots.

erations further decentralized to handle variation in demand for high­


The World Car. From Ford and Mitsubisru
In the postwar era, the Ford Moto r Company invested directly in a United Kingdom affiliate that produced the British Ford Cortina for local Con­ sumers; it had a British design and was assembled locally with British parts and components. At that time, no matter where the capit al came from, supply linkages and mark eting services were generated locally through Import-subshtution industrialization. Governments actually encollIaged foreign investment in the domestic product. However, this pattern has since changed. The Ford Cortina has now become the Ford Escort, the "wor ld car" version of the original British "national car." Assembled in mult iple national sites (including Brita in), the Escort is geared to production for the world market. It uses parts and com ponents from 14 other countries, includi ng Germany, Switzerland, Spain , the United States, and Japan. Give n the larger production run of a world car, Ford claimed a saving of 25 percent over the earlier method of build­ ing new cars separately for the North American and European markets.

With the rise of global production systems that seem to "denationalize" development, how should we understand development: as a strategy of capturing value added by attracting higher skill nodes of a glo al commodity chain to a country or SImply as a global corporate activIty.
Sources: Jenkins (1992:23-25); Stevenson (1 993:01); Borthwick (l992:S11J; Sivanandan

(1989:2); The Economist (FebnUJry 23, 2002:71-73).

The Export Processing Zone
Export processing zones (EPZs) (otherwise known as free tr de zones � [fTZs]) are specialized manufacturing export estates WIth nurumal cus­

toms controls, and they are usually exempt from labor regulations and domestic taxes. EPZs serve firms seeking lower wages and Third World

governments seeking capital investment and foreign currency to be earned from exports. The first EPZ appeared at Sharmon, Ireland, m 1958; India established the first Third World EPZ in 1965, and as early as the mid-1980s, roughly 1.8 million workers were employed in a total of 173 EPZs around the world. By the century's end, more than 800 EPZs employed millions of workers "

Japan, has subsidiaries producing components in South Korea, Indonesia, Thailand, Malaysia, the Philippines, Australia, and even the United Sta tes (as joint ventures with the Chrysler Corporation and the Ford Motor Company). M i tsubishi cars, assembled in Thailand or Japan, are sold i n the United States, Canada, the United Kingdom, New Zealand, and Papua New Guinea as Dodge or Plymouth Colts

Similarly, the Mitsubishi Motor Corporation, which is headquartered in

ing zones typically serve as enclaves--in social as well as economic terms. , Often physically separate from the rest of the country, EPZs are bUIlt to receive imported raw materials or components and to export the output diJectly by sea Dr air. Workers are either bused in and out daily Or inhabit the EPZ under a short-term labor contract. Inside the EPZ, whatever ovil rights and working conditions that hold in the society at large are usually denied the workforce. It is a workforce assembled under cond.ltlOns anal­ ogous to those of early European industrial history to enhance the profitability of modem, global corporations.

tic markets (local production capacity and consumption). Export process­

ami · counter to the develo ment project smce th y favor exporf marRet considerations over the develo men! of do�­



In the twenty·first century, worl d car factories are smaller and cleaner and involve networks of suppliers coordinated by car firms (reta ining only core tasks of design, engineerin g, and marketing) that are beco ming known as "vehicle brand owners." In cont ext of the 25 to 30 percent overcapa city 10 the global auto mdustry, car firms are intensifyi ng their outsourcing

The Global Economy Reborn


Much o f the world's 27 million

women." Between 1975 and 1995, garment production spawned 1 ,200,000 iInpa ct on Islarrtic culture). agile, and reliable

strong EPZ labor force is composed of

jobS in Bangladesh, with women taking 80 percent (with considerable 85 percent of the workforce of

In Mexico, young women account for roughly the maquiladoras, supposedly more docile,


cheaper. When Motorola shifted its electronics Phoenix to Nogales, <n Q) <:

men in routine

assembly work-and certainly plant 200 miles south from

$1,060 . The following description of a worker at an electronics maquilndora near Tijuana captures the conditions of this kind of labor:
Her job was to wind copper wire onto a spindle by hand. It was very small and there couldn't be any overlap, so she would get these terrible headaches. After a year some of the companies gave a bonus, but most of the girls didn't last that long, and those that did had to get glasses to help their failing eyes. It's so bad that there is constant turnover.)1

its annual wage for assembly work fell from $5,350 to

::3 � (I) � -- Q) .t::: � .� (/) <I) <n .,

t OO :::!!
)( w


e -a �
c: ::>

<I) -




ing zones

transnational corporations that employ workers in export process­ obtain other concessions, such as free trade for imports and

exports, infrastructural support, tax exemption, and locational conve­ nience for reexport. For example, for maqtlila investment in Sonora, one
of the poorest border states, the Mexican govenunent's most favorable offer was 100 percent tax exemption for the first 10 years and 50 percent

for the next 10,32

In short, the EPZ is an island in the country within which

host economy, other across

than foreign currency earned via export taxes levied by host states. It belongs instead to an archipelago of production sites

it is located, separated from domestic laws

and contrib u ting little to


the world (concentrating

Asia), serving world markets.

in Latin America, the Caribbean, and

The Rise of the New International Division of Labor (NIDL)
The fonnation of a global labor force began during project. The eff� ts of urban peasants tion

the development bias, agrarian class pola.rization accelerated


from the land. From 1950 to 1997, the world's rural population decreased by some 25 percent, and roughly half of the world's popula­

the green revolution, and cheap food imports combined to expel


in and on the margins of sprawling cities." European

depeasantization was spread over several centuries. Even then, the 88

The Global Economy Reborn


or computer dlip industry are typically located in cheap labor regions. At ilie same time, the technologies to coord mate those tasks generate needs for new skiUed labor, such as managerial, engineering, or design labor, often retained in the First World. That is, tile global labor force IS actually bifurcated, where skilled labor tends to concentrate m the Forst World, a nd . nskilled labor concentra tes m the Third World . INCs started coord mat­ this bifurcation via their "internal" labor hierarchies as early as


� 19�OS, as detailed in the foUowing description:
process, teclmicians in the Santa Clara


Intel Corporation is located in the heart of CaWomia's "Silicon Valley." . . . When Intel's engineers develop a design for a new electronic circuit or test, and redesign the product. When aU
'" 15

. . item, however, it doesn't go to a California factory. Instead, It IS alr freighted

�alley, California, pl�t will build, ready for produ��on of the new

to Intel's plant in Penang, Malaysia. There, Intel's Malaysian workers, almost all young women, assemble the components in a tedious process involving hand soldering of fiber-thin wire leads. Once asse�bled, the

SoLJrce: World Economic Processing Zones Association (www.wepza.org) and the International Labor Organization (1997, www.ilo.org).

Figure 3.3

Nwnber of Free Trade Zones across the World

in tegra tion into a larger end product. And, finally they're off to market. , either in the United States, Europe, or back across the Pacific to Japan.�

components are flown back to California, this time for final testmg and lor

pressure on the cities was relieved as people immigrated to settler colonies in North America and Australasia. But for Third World societies, this process has been compressed into a few generations, a little longer for Latin America. Rural migrants in many places over­ whelm the cities. swells the ranks 01 displaced people lacking means of subsistence and needing wage work. Wage work for a global labor force stems from the
simplificntiol! of First World manufacturing work and relocation of these

sion of labor (NIDL) was coined to describe this development. NIDL referred to an apparent decentralization of industrial production from the First to the Third World. The conditions for this movement were defined as endless supplies of cheap Thi.rd World labor, the new technical possi­
bility of separating and relocating deskilled manufacturing tasks offshore,

the world was so prevalent that the concept of a n ew international divi­

In the 1970s, the relocation of deskilled tasks to lower-wage regions of

Depeasantization does not by itself create a global labor force; it simply

and the rise of transport and informational technolOgies to allow coordma­ tion of global production systems 'S

routine tasks as low-cost jobs to form a global assembly line linking sites across the worJd.
Initially, First World ma ss production developed around large produc­ tion runs using assembly lines of work subdivided into specialized tasks.

CASE STUDY Gendering the Global Labor Force
"Endless supplies of cheap Third World labor" needs definition. In fact, form industries pre fer young, urunarried, and relatively educated women. Women comprise more than 80% of the EPZ labor forces

Each worker on the line performed a routine task contributing to a final product. Such Simplification deskills work on the a ssembly line. T oday, such tasks as cutting, sewing, and stitching in the garment or footwear indus­

the labor is often gendered, and the endless supply depends on complex patriarchal and subcontracting hierarchies. Labor-intensive export plat­

try or assembly, machine tending, or etching in the electrical, automobile,

Taiwan, the Philippines, Sri Lanka, Mexico, and Malaysia. While employers

rrom l\labonai uevelopl.nent to l"lobailZahon argue that women are suited to the jobs because of their dexterity and patience, the qualities assumed of female employees are required as much by the construction of the jobs as by patriarchal and repressive cultural practices reproduced within the factories, sweatshops, and homework units. Job construction also depends on changing conditions; as Laura Raynolds has shown in research on Dominican Republic plantations,

The Global Economy Reborn


What kind of development is realized through the manipulations of ( in ternational and national) gender inequalities?

OU S TCes: Agarwal (1988); Fernandez-Kelly (1983:129); Kernagilall (1995); Ollg (1997);
Raynold, (2001); Pyle (2001). Skilled labor concentrates in the north and also where enterprising sta tes such as the NICs of East Asia (South Korea, Taiwan, Singapore, and Hong Kong) have used public investment to upgrade workforce skills. The upgrading was necessary as their wage levels were rising in relation to other countries that were embracing export production, such as Malaysia, Indonesia, and the Philippines. In 1975, if the hourly wage for electronics work in the United States was measured at


times of economic downturn, displaced men may in turn displace women via the use of local patronage networks, with work being regendered to reward masculine competition. Women are typically subjected to long work days and lower wages COm­ pared to men. High turnover, lack of union rights, sexual harassment, and poor health characterize the female workforce that has mushroomed across the Asian, Central American, and Middle Eastern regions. Under these conditions, pa triarchal states, competing for foreign investment, encourage women to enter the workforce at the same time as the new female workforce may be under official (especially Islamic) scrutiny for loose morals, and governments wi thhold matemity benefits, child care, and edu­ cation opportunities on the grounds that they are "secondary workers" in a male-dominated labor market. Rural families propel, sometimes sell, their teenage girls into labor contracts, viewing their employment as a daughterly duty or a much-needed source of income. Where young women and children work in family production units "(pro­ liferating in China today), subcontractors rely on patriarchal pressures to discipline the workers.

100, the relative

value for equivalent work was 1 2 in Hong Kong and Singapore, 9 in Malaysia, 7 in T aiwan and South Korea, 6 in the Philippines, and 5 in Indonesia and Thailand."

11tis wage differentiation made the East Asian

NICs' labor-intensive production less competitive, forcing them to upgrade their segment of the global labor force. These Asian countries improved their competitiveness by specializing using skilled labor rather than semiskilled and unskilled labor. After upgrading their labor force, the NICs attracted skilled labor inputs as a regional growth strate In more sophisticated export manufacturing for First World markets,




In the workplace, teenage girls are often forced to if they get pregnant. Labor contractors and

aa qua rodu til

, r o cores o�

take birth control pills to eliminate matemity leave and payments or are forced to have abortions agers routinely demand sexual favors from young women for awarding jobs, giving rise to a "factory harem mentality." The endless nature of the supply of female labor comes from their short working life in many of these jobs-because of the eye-hand coordination of girls that peaks at age 16; the physical deterioration from low wages, poor health, and nutri­ tion; the high turnover due to harassment; the steady experience of having the life sucked out of them by long working hours and no advancement in skills; and the steady stream of new cohorts of younger women to follow, whether from the countryside, the children of the working poor, or inter­ national traffickers in labor. These are SOme of the compelling conditions that enable a particular kind and scale of casual labor to form around the world to supply the brand owners the brands to seU to the global consumer.

bo An East Asian division of labor in the semiconductor industry for U. s.
firms formed by 1985 through the upgrading of the production hierarchy.



Japan IU1


dlYlsIOOS' lIS

becam . " em.!U on thWi d Southeast.. Asian

Final testing of semiconductors (capital-intensive labor involving com­ puters with lasers) and circuit design centers were located in Hong Kong, Singapore, and Taiwan; wafer fabrication in Malaysia; and assembly in Malaysia, Thailand, the Philippines, and Indonesia. In the 1970s, semi­ cond uctors were assembled in Southeast Asia and then flown back to the United States for testing and distribution, but by the 1980s, Hong Kong imported semicpnductors from South Korea and Malaysia to test them for assembly industry." reexport to the First World and for input in Hong Kong's fabled watch Patterns of global and regional sourcing have mushroomed across the world, particularly under the stimulus of informatics. Firms estab­ lish subsidia ries offshore or extensive subcontracting arrangements-in

who expect to work in the United States but find themselves in Saipan barracks surrounded by barbed wire and patrolled by uniformed guards.s.S. new federal rules for the garment industry allowed duty-free (and virtually quota-free) imports from Saipan into the united States as well as liberal foreign investment conditions. footwear.cftu. • � :� : .. and finns can move on to the next cheap labor si te. The common­ wealth government has maintained a minimum wage of $2. ""d Sellae " lf (1993:10). more than half the labor force contributing to these exports is foreign-predominantly Chinese recruits. Department of Provisions. Crew) settled with 50. and J.. CASE STUDY Global Subcontracting in Saipan union organization is often disallowed. Cutter and Buck.000 current and former workers.ilo. •• Saipan has been a us. retailers of every size also routinely use global subcontracting arrange­ labor-intensive consumer goods industries such as garments. Geoffrey Beene. of since 1984 (compared with the federal minimum of $4.org) and the International Confederation of Free T rade Unions (1995. The Nike Corporation Labor and the Occupational Safety and Health Administration. Other lawsuits followed. product design and sales promotion are reserved for its U... at the drop of a hat? SOl/rees: Shenol1 One of the production sites used over the past two decades as a supplier in global subcon tracting is the tiny island of Saipan. and they have recently attracted the attention of American labor unions and investigators from the U. to be implemented also in other sites in Myanmar and China. filed a class-action suit against their employers (including firms from the region) in 1999."38 U. retailers (Nordstrom.org). 1995:58).�"'�::::: :: . Saipan (like American Samoa) has a "comparative advantage": Although MlIlllyslli SCI�nIlfC . Four US. as illustrated in the case study on Saipan.s.. the "Made in USA" label can legitimately be used here. and Levi Strauss. Workers. Indonesia . ments in the Asia-Pacific and the Caribbean regions to organize their supplies and reduce their costs. Inspectors found Chinese workers whose passports had been confiscated and who were working 84-hour weeks at subminimum wages. China. headquarters. committing to monitor improvements in wages and working conditions. Liz Claiborne. . with legal assistance. toys. Udesky (1994). of corporate conduct be enforced in sweatshops when host govem. Levi Strauss. Companies involved in garment production on Saipan include The Gap. in the western Pacific. agreeing to new codes requiring improved conditions.4 Percentage Countries. and Services Exported from Selected EPZ Host 1994 (1995. territory since 1945.me�ts are compLicit. Gymboree.: Jsmalca Madagascar Mexico Republic '. household goods. Figure 3. In the early 1980s. the island was exempted from the federal minimum wage in 1976. Saipan has strategic importance. 120 miles to the south).. Source: Interna tional Labor Organizati on produces most of its athletic shoes through subcontracting arrange­ ments in South Korea... . Despite the label. While its exports make up only about 1 percent of all clothing imports into the United States. with one of the companies. For some. www. Dickinson (2001:212).. How can codes.25 on Guam.15 an hour Workforce Involved in M aking Products. employers are often subcontractors. Fickling (2003).. and the islanders are American citizens. The Economist (june 3.d .94 From National Development to Globalization The Global Economy Reborn 95 Bangladesh (ChlttagO" g ) • . and Thailand. they account for roughly 20 percent of sales for some large American companies. _. and consumer electronics. where the firm "promotes the symbolic nature of the shoe and appro­ priates the greater share of the value resulting from its sales. Eddie Bauer. The clothing factories resemble sweatshops. www.

and utili­ was located in manufacturing.. By 1 995.2 percent by 1996). fishing. labor market represents a model o lean production. and metals. It derives from the Toyota model of a part-time. manufacturing employment fell 50 percent in Britain. 1 percent in the United Kingdom. ogies. Meanwhile. the low-wage workforce. European governments are relaXing labor laws and f generating new part-time jobs. workforce as a whole. and as soldiers. From 1970 to 1994. and 17 percent in Germany. sex work. it bifurcates laborfor f ries o 'fleXIble.3 percent in Gennany. to improve the flexibility of European fi'rms competing in the world market. ommonly experienced by unprotected labor throughout What Is Lean Production? the world. Many of these children work 14-hour days in crowded and WlSafe workplaces. n "aratimroht c 0 occurring in tertiary education. and from 13. automo­ bile sector outsourced so much of its components production from the late 1970s that the percentage of its workforce belonging to unions feU from two-thirds to one-quarter by the mid-1990s. into a bifurcation of labor every­ where. As firms resrructure and embrace lean production (see insert). construc f ties. apparel industry lost 10 percent . the United Nations estimated about 20 million bonded laborers worldwide. or tempora labor­ f subcontracting pyramid. the U. union density feU from 25 to 14.S. the U.6 percent ill France.from 1 1 . including sel/­ orms and archaic or repressive f Responding to employment. stone quarrying. often overseas. 1 8 percent in France. where teaching is divided between tenUJ'ed professors and part-time lecturers. ces betl�en stabl� "just-in -time" suppl!l patterns. the largest employe United States was no longer General Motors but Manpower. f cores o full-time employment and unstable periphe ry workers. The hierarchy o ers f intens ive jobs supports a stable core o employe core workers f production flexibility and the possibility o disciplining From the NIDL to a Truly Global Labor Force The rise of global subcontTacting transformed the tidy bifurcation of labor between the First World (skilled) and the Third World (WlSkilled labor). the Inter­ national Labor Organization estimates about 80 million children younger than age 14 working across the world in conditions hazardous to their health-in farming. at the rate o 10 percent a year.5 percent workforce grew by 142 percent. The U." such as footwear.S. By a European Union requirement. but the expansion of this nonunion work­ force also eroded wages.from 8. The proportion of part-time workers in the workforce grew between 1979 and 1 995 from 16. In 1995 alone. carpet weaving. The U. Not only did outsourcing bifurcate auto indusrry labor. wherever W see it . captured in the NIDL concept. such that between 1975 and 1990. mainly because of the recursive effect of global subcon­ tTacling bringing pressure to bear on organized workforces in the First World. with many of these jobs being "low-tech. 8 percent in the United States. and ff es.S. Similarly. textiles. from 17 to 40 percent of the automobile reduced real average weekly earnings by 18 percent from the mid-1970s across 1980 to 1995 (and." Thirh percent o the tempora ry workfor tion. manufac­ turing. That is. Moody (1999:97-99). brick making. fireworks. although its most dramatic division remains a north-south one.4 to 16. in the private sector. domestic labor. low-paid. craft work.IJb '-:rom National Development to Globalization The Global Economy Reborn 97 The Saipan case study illustTates the dark side of subcontTacting-a pattern 0(. e ·v.8 to 18. f Lean production is a mixed bag o information technol f o work organization. drug trafficking." f with the threat o outsourcing.S. At the turn of the twenty-first century. But temporan and part-time labor is a defining feature o r in the twenty-first-century labor market. Women compris World.. Sources: Cooper and Kuhn (1998:A1). where companies can hire part-time employees without traditional full bene­ e f fits.s. transportation. across and within instihlrtons. and piece-rate work.1 to 15. In 1999.4 to 24. the division is no longer simply a geographical division (north-south). where a base o insecure. industrial resrructuring to the mid-1990s.ely sta • well"'J'* This relationship has no particular geography. a ce f ) finn coordinating "temps. with half that number in India. ork Iroin • per:ip r. . And for the U. to 10. the rise of global subcontracting eliminates and/or undermines regulation of employment conditions. economic boom was "-pressed in expanding high-end manageri1l1 and computer s!lstems f the ) jobS.6 percent in Canada. they may tTim less skilled jobs and fulfiU them through subcontracting arrangements that rely on casual labor. creating millions o second-class jobs (most workers preferfull-tim e 70 to 90 percent of the temps in the First work)." Regardless of whether transnational corporations offer better conditions than local firms. subcontracting. Inc.

usually female. with a literacy rate of 98 percent and a reputation for order and polite service. Carla Freeman decenters modernity by exploring how an Afro-Caribbean workforce has embraced the international division of labor in the informatics industry. consumer warranty cards. where " the staff are well educated at English-speaking universities yet cost only a fraction of what their counterparts are paid in the North.ation from National DE:velopm ent to Clob. Eastern Europe has become an increasingly competitive site (with India) for labor­ intensive computer programming. Alter a c!'ecade of conservative government restructuring of the British labor force (weakening union rights." The relocation of revenue accounts prepara­ tion saved 8 million francs and 120 jobs in Zurich. and gendered. between about fifty and one hundred Barbadian women sit in partitioned computer cubicles of a given production floor fro m 7:30 in the morning until 3:30 in the afternoon.S. globally. and Lufthansa relo­ cated much of their reservations to Indian subcontractors in Bangalore. restaurants) has filled the gap left by industrial manufacturing across the First World.S. and the implemen­ integra l to the companies' guarantee o f 99 percent accuracy rates. for example. More than 50 percent of the U.s. British Airways. health industry. "We can hire three Indians for the price of one Swiss. Here we glimpse a portion of the feminized global labor force identifying. "Third World" lower wages than would be paid in Europe " T .5e. with jobs lost in the fabrics industry. finance. respectively): On a typical shift . In each CJ.i.S.94 per hour. ai rlines. the export-oriented countries of Barbados. telecommunication corporations. prOfeSSionally. turned itself into a haven for offshore infor­ mation-based data-processing work. apparel. such as maternity and sick leave and three weeks of paid vacation. . for example. conswner credit. Jamaica. clerical tasks) undertaken by women at considerably ypically.300 U. tation of double-keying techniques are all aspects of the production process While such work is deskilled. Britain in the 1990s became a new site for off­ shore investment from Europe-mostly in part-time jobs (electronic assembly. ." According to a spokesperson for Swissair. accounted for 40 percent of manufacturing jobs lost that year. with work that is devalued and tightly disciplined-is this about informatics being an exception to the rule or whether these are the conditions in a tourist haven. Many new jobs in the Caribbean. eliminating minimum wages. demoted. the watchful eye of supervisors. are data'processing jobs that large U. Around 65. The Global Economy Rebom 99 of its jobs and. reducing jobless benefits). insurance.n CASE STUDY High Heels and High Tech in Global Barbados In an innovative study of "pink-collar" work and identities in the Caribbean. In the early 1990s. in the footwear industry in Indonesia eamed $1. And since 1990. a worker.liz. taking a half-hour break for lunch and sometimes a fifteen-minute stretch in between. Their key­ strokes per hour are monitored electronica Uy as they enter data from airline ticket stubs. Swissair. security. and retailing firms have shifted offshore at a lower cost. Barbados. Manufacturing labor has lost considerable organizational as well as numerical power to corporate strategies of restructuring. footwear jobs disappeared in the 1980s­ associated with. they identify with office work and informatics technology (and with the firms' imported female Indian computer engineers) and because the Barbados Development Plan (1988-1993) and its vision of development via information-based exports guarantees basic employment benefits." Even as postindustrial work (retailing. Disadvantaged by Mexico's strangle­ hold on trade preferences with North America. the women themselves are attracted to these pink-collar jobs because. given their English-speaking tradition and tourist orientation. Freeman finds that even though they could earn more in the canefields. especially when local participants project their own meaning onto what they do? Source: FrunulIJ (2000:23-48).ng market is accounted for by cheap imports from Asia and Latin America. or does it tell us that we cannot expect to find homogeneous conditions in the global economy. globally sourced by Multitext and Data Air (subsidiaries of British and U. health care. Nike's decision to stop making athletic shoes in the United States and relocating most of its production to South Korea and Indonesia. and Trinidad offer a "comparative advan­ tage" in the service industry.03 per day compared to an average wage in the U. footwear industry of $6.S.. through them. magazine subscription renewal. or the text of a potboiler novel for lOp U.s. the surveil­ lance of the computer. appliance houses and pub lishers . cJoth. leading to the quaUtative restructuring of work discussed in the insert on lean produc­ tion. employment in the proliferating service sector is not inunune to relocation.

mineral extraction and pro­ cessing. Ellwood (1993:5.overall trade in final products. the United Kingdom. forcing governments to shift tax burdens to personal income and sales. Garment sweatshops are a recurring phe­ nomenon. South Korea. claims. their suppliers-and their workers-guessing. firms that once organized "company towns. South Africa. or Greece. Export. medicines. Kortell (1996:323). Japan. 1 994). The majority of these firms are head­ quartered in France. At the same tiIne. From 1970 to 1995.' UN data reveal that transnational corporations account for two-thirds of world trade. as jobs are automated. Norway. M. including sub­ sidiaries of allied finns and parent corporations in the construction of a f inal product. formal arrangements with any of the suppliers which manufacture its products. or world. 5 are Waltons from the Wal-Mart empiIe. which divides its sources mainly among the United States. therefore. accounting for 70 percent of all transnational investment and about • CASE STUDY The Corporatization 50 percent of all the companies themselves.mstances of globalization. and Brazil. Export markets concentrate in the First World. and more. and grains) typically account for between 40 and 70 pexcent rind Schumann (1997:1 2).nd Logan (1989:67). "The Company does not own any manufacturing facilities: aU of its products are manu­ factured through arrangements with independent suppliers . shed. Brown 11 993:47). 2001 :55·63). wha t kind of development (and globalization) do we have? Sources: Baird and McCaughan (J979:135·36). and the United States. Under these ciIcu. If the consumer-citizen represents only one-fifth of the world's population. the framework and content of development appears to have been redefined: not in terms of governments purSuing social equity in the national citizen-state but in terms of the cor­ porate pUISuit of efficiency and choice for the global consumer-citizen. Daly . � Company does not have any long-term. General Motors is larger than Thailand. At century's end. with the 10 largest corporations in their field controlling 86 percent of telecommunications and 70 percent of the computer indus­ TNCs. for example. coaL gas. The Economist (july 16. corporate tax rates have declined significantly in most First World states (a decline from 30 to 7 percent of government funds in the United States since the early 1950s). hydIoelectric and nuclear power plants. have shed that responsibility as they have reached out to the more abstract (flexible and expendable) global labor force. or relocated by corporations under global competitive pressures. Furthermore. 1. By 1991. and a range of "Third World" jobs has spread in First World cities over the past two decades. Wal-Mart has more than 1 million un-unionized employees (three times that of General Motors). not countries: For instance. as components move withln corporate networks. The com­ bined sales of the largest 350 INCs in the world total almost one-thiId of the combined GNPs of all industrialized countries and exceed the individ­ ual GNPs of nil ThiId World countries. Beams (1999). where markets are a great deal denser than Third World markets and consumer culture is well entrenched.100 From National Development to Globalization The Global Economy Reborn 101 working conditions are just as likely to appear in the global centers via the practice of lean production. . wood harvesting and processing."" As the world market has been corporatized.000 to 40. The top 5 INCs in each major market (such as jet aU-craft. the combined annual revenues of the 200 largest corporations exceeded those of the 182 states with 80 percent of the world's population. In other words. Taiwan.inimaI benefits). about 50 percent of world trade takes place inside the � people and their communi­ ties. the number of INCs rose from 7. Global integration habitually marginal of all world sales. China. 10 richest people in the world. the global laborforce is well entrenched across the world. INCs control most of the world's financial transactions. the Philippines. including services. The women's wear retailer Liz Claiborne. Knrliner (1997:5). $7 billion in profits. markets are typically organized by INCs. MArtin (2002). conference on Trade and Development (UNCTAD).H with considerable paternalism toward their workers. . sales internal to transnationals exceeded theu. chemicals. in New York City. or Saudi Arabia.' Higlttower . a large proportion of whom are employed part-time (with m. automobiles. and industrial capacity-including oil and its refining.000. . according to estimates from the United Nations try. Fifty of the largest 100 economies are run by INCs. Wal-Mart is now the largest corporation in the world and the largest importer of Chinese-made prod­ of World Markets ucts. Competition compels firms not only to go global but also to keep their sourcing flexible and. (bio) technologies. home electronics. Alperovitz (2003:15). microprocessors. Germany. Hong Kong. with an annual revenue of $220 billion. Robson Walton now topping Bill Gates as No. . and Mitsubishi is larger than Poland. Of the with S.

. so do agribusiness firms. found that often ineffectual.5 Corporate versus Country Economic Graph ments of the food industry to internationalize. Like the world car.i r � :.: tes. A 1995 study.. � �� ��UJe gIObat emplJ ent deck. . produce a mOre pest-resistant. increa sed family stnlss and social !tisOrder. more heat-resistant.. Brahman bulls (or their semen) imported from tJi COS ."'I. the nited lates � �� """... as con­ African and South American pasture. chemical fertilizers. and in com­ munities can disappear overnight when the winds of the market are m�l�----� GDf' Of 10'-1 "t. Those who have work find they are often working longer hours to make ends meet.� �------� and the erosion of social institutions that stabilize the conditions of employment and habitat associated with those jobs.. the world steer is the logical extension of the mass production system. rising public §.or no-benefit service work.'" prerogative to regulate investment and labor markets to global market forces. c_·en a eclines ' real \Vii&!!.((iiY CASE STUDY Agribusiness Brings You the World Steer The "world steer" resembles the "world car. From conception to slaughter. Animal health and the fattening process depend on medicines. (a trend stnce 1 972).. producing what has been caUed the "world steer.100ailZatlOn The Global Economy Reborn 103 .. 2002). Food companies stTetch across the world. the livestock complex was one of the first seg­ Sowces: Sales: Forlune Guly 22.. crossed with native criollo and fed on imported replacement jobs are low paid and low.. As we have seen. allowed to blow across uneven national boundaries. RetTaining is likely to be ineffectual when governments surrender the In the global marketplace. The loss of jobs is . the production of the steer is geared entirely to the demands of a global market. it represents the "hollowing out" of a nation's economic base sumer fashions and sourcing sites change relentlessly." Proposed retraining schemes to help workers adjust to a shifting employment scene are . titled Families in Focus. (US " bflllOn. ' " Global Agribusiness just as the manufacturing transnational corporations use global sourcing strategies. In Central America. Gross domestic product: Hllmnn Development Report (United Nations. 'niinlt � �! ?!. product cycles are unstable. especially in processed foods such as meat and flour products and in fresh and processed fruits and vegeta­ bles. despite remarkable technological advances. and beefier breed of steer. 2(02). The food trade is one of the fastest growing industries in the world today." markets." It is prod uced in a variety of locations with global inputs (standardized genetic lines and growth patterns) for global sale (standardized packaging). supplying an exploding fast-food industry. The beef industry is subdivided into two branches: intensive lot feeding for high-value specialty cuts and extensive cattle grazing for low-value lean meat. These jobs are usually inferior. an d . as mos t Florida and T e""s. antibiotics.. and herbicides supplied from around the not Simply an economic transfer from one nation to another. organizing producers on plantations and farms to deliver products for sale in the higher value Figure 3. a I family decay is worldwide-attributed largely to the trend of women assuming a greater role as income earners. in corporate/lillion relations.1tI0nal uevelopmenr to l. more funda­ mentally.. A century of institu­ tion buiJding in labor markets. requiring longer hours of work than men's work and leading to new stTesses in households.lUL rroUt 1\l.

processed meats. the Far East. in addition to grazing on and consuming crop stubble. which accounted for 80 percent of Thailand's exports in 1980. and the Inter-American Development Bank (IADB) to fund the expansion of pasture and transport facilities.g. runs a joint venture with the Japanese agribusiness firm C." They are analogous to the NICs insofar as their governments promote agrD-industrialization for urban and export markets. Australia. using the breast meat for the fast-food industry and ship­ ping leg quarters to Mexico for further processing (at one-tenth the cost of preparing them in this country) for the Japanese market.S. called Sun Valley Thailand. which produces poultry in Mexico for both local consumption and export to Japan. In many ways.OOO employees. and Latin America. headquartened in Minnesota. Former exports. deprivation? Sou"es: exports because they either replace or supplement the traditional tropical exports of the colonial era. In other words. the Agency for International Development (AID). Central American states complem ented their traditional exports (coffee and bananas) with beef.. headquartered in Arkansas. v• • ' I " a uv" al LJ't:'V�lUpUI�llt to " . Hungary." . Cargill. headquartered in Nebraska. J. agribusiness investments have generally concentrated in select Third World countries (e. rather than eliminating. Elimination of woodlands reduces hunting possibilities. operating in 70 countries with more than 800 offices or plants and more than 70. fuel. Domesti cated ani­ mals traditionally have provided food. including beef. Foreign investors in this industry include TNCs such as International Foods. com and sorghum. are Global sourcing also sustains the intensive form of livestock raising that requires feedlots. Also. T yson Foods. to carry the analogy further. com-fed poultry products 10 the Japanese market. And. Peasants have always used mixed fanning as a sus­ tainable form of social economy. World steer production not only reinforces inequality in the producing regions but also threatens craftwork and food security. WilliQms (1986:93-95). and clothing. development policies favoring other cattle breeds over the traditional criollo undermine traditio nal cattle rais­ ing and hence peasant seU-provisioning. and destroys watershed ecologies. and Thailand). transport. and poultry on feedstuffs supplied by their own grain marketing subsidiaries elsewhere in the world. known as the new agricultural countries (NACs). What kind of development rewards such specialization at the expense of sustainable peasant cultures. owns 56 companies and operates Ul 26 COuntrIes WIth S8.tuna. . and rubber is now complemented with an expanding array of nontraditional primary exports: cassava (feed grain). canned . World steer production has redistrib­ uted cattle holdings and open-range woodland from peasants to the ranch­ ers supplying the export packers. The promise of globalization is a cornucopia of commo dities. Rifkin (1992:1 92-93). Itoh. from which it exports U. United Brands. Mexico. Development strategies favored agro-exporting for foreign exchange to purchase industrial technolOgies. hunting on common land. now represent 30 percent. Europe. shrinks wood supplie s for fuel. More than half the rural population of Central America (35 million) has been unable to survive as a peasantr y. processed food makes up 30 percent of SQllderson (1986b). livestock have been the centerpiece of rural commu nity survival over the centuries.000 employees. Argentina.• . Peasants forfeit their original cattle. But this promise works for some. and fresh and now mostly consumed domestically in the intensive livestock sector. Nontraditional exports tend to be high-value foods such as animal protein products and fruits and vegetables. raising manufactured exports. generating. pigs. pineapples. "TYson also cuts up chickens in the United Stales. Brazil. is the largest grain trader in the world. processed fruits and vegetables. and R. Thailand's traditional role in the international division of labor as an exporter of rice. the term new inlemnliollill division o labor has f been extended to these agro-exports because they supersede the exports associated with the colonial division of labor. not those whose disappearing cultures and agro-ecologies subsidize affluent food produc tion. Reynolds. Agrodina mica Holding Company. ConAgra. to supple­ ment their local diels with additional protein. Canada. It processes feed and animal protein products in the United Stales. Raw agricultural exports. It has established a jOint venture with Nippon Meat Packers of Japan. shrimp. sugar. poultry. l'lODall:t:al1on The Global Economy Reborn 105 world by transnational firms. Chile. fertilizer." The New Agricultural Countries (NACs) Despite the far-flung activities of these food companies. Thailand has become an NAC. obtainin g loans from the World Bank. Three agribusiness firms headquartered in the United States operate meat-packing operations across the world. These agro-exports have been called rwntraJiiliotull meat and milk supplies and lose access to side products such as tallow for cooking oil and leather for clothing and footwear.

Since then. farmers.s. their U. com gluten feed. genetically modified plants. South Korea. wherever they are located. such as feedstuffs.0 reuolution. and so forth.21 0. high-input agriculture servicing high-value markets. c � '" . and duction. and citrus pellets. to horticultural crops. Thailand expanded ils food processing � '" � �' N ind ustry on a foundation of rural smallholders under contract to food pro­ cessing fums. coupled with low-cost labor. T aiwan. agribUSiness has created feed-grain substitutes such as cas­ sava.s � .§ The Second Green Revolution As we saw in Chapter 2. such as fresh fruits and vegetables. animal til ..s '0 � . the green revolution encouraged agribUSiness in the production of wage foods for urban consumers in the Third World.� . and bioteciUlology is creating plant-derived "feedstocks" for the chernical industry. Q .Sl . Japanese firms form joint ventures with Thai agribusinesses to expand feed (soybeans and com) and aquaculture sup­ ply zones for Japanese markets. Thailand'S foreign exchange in the 19905.. in addition to food processors and agro­ chemical firms. helped Thai poultry producers compete with China. agribUSiness has spread from basic grains to other grains. To facilitate this.. the latest competitor being and Taiwan). distributing land to landless farmers for con­ tract growing and livestock farming. For example. .. . speCialty feeds. Thailand's agro-exports are linked to the affluent markets in the Pacific Rim (especiaUy those of Japan. Food companies from Japan. the Thai government organized a complex of agribusinesses.g . Thai poultry production is orga­ nized around small growers who contract with large. More recently.'" Thailand's mature feed industry. � 0.. 106 00 til !' F iii <: � j . counterparts in the Japanese market. antibiotics and growth-inducing chernicals. .. $ .. It is a specialized.I!l .� 8 '0 t '8 . cherrlical fertilizers. and financial instihltions with state ministries to promote export contracts.. Thailand is the world's largest producer of farmed shriJnp'l­ symbolizing the symbiosis whereby consumer affluence and the NAC phenomenon reproduce one another in what has been called the second green revolution.. pesticides. ] 1 '" ] . verticaUy integrated firms.. It extends green revolution technology from basic to lux­ ury foods and agro-industrial inputs and has been termed the second green The second green revolution is a reliable indicator of high-income Consumers adopting affluent First World diets.. and these markets accounted for more than 60 percent of Europe use Thailand as a base for regjonal and global export-oriented pro­ � :<! � ·9 J Ii! 1i .§ G � J! -:: . 0 (J be � . This kind of agri­ culture depends on hybrid seeds. the United States.The Global Economy Reborn 107 Viewed as Asia's supermarket.! a � \:) � § - � �� .

Sayula employs more than 2. which has forced migrant workers to move to even more scattered on their own plo ts in their home communities .S. transnational corpora­ in 1995. fava beans. . and even bean production began a long d!!cline." In . Then. Naming it "T omasita. for example. U. for a year-round supply of fresh produce. Santa Anita Packers. most notably. joined by British firms Albert Fisher and Polly Peck. these firms are able to reduce the seasonality of fresh fruits and vegetables and thus create a global supermarket. wheat. Such seeds need heavy doses of pesticides. sumption rose among wealthier Mexicans. and passionfruit. their food security. firms such as Dole. By coordinating producers scattered across different climatic zones.S. chenmoya (custard of the see ds. ." to foreground its labor orig. she describes the Sayula plant of one of Mexico's largest agro·exporters. varieties originate in Mexico but are developed and patented in Israel or the United States. maize. juicing. the Mexico. and Pacific-Asia. The South has been the SOlUCe grown by Third World farmers to supermarket outlets across the world. U. . They now travel most of the year-with little time to grow food knowledge of seeds.ese global commodity chains disconnect producers and consumers with mteresti. freezing. but the company did not provide any health and safety education or the protective gear. and a Joss of ers and a work sites. employing hundreds of young women whom the company moved by season from one site to another as a kind of "mobile maquiladora. and that of their families. n. 35 percent in poultry. "cool chains" for high-value'foods such as off-season fresh fruits and vegetables. feijoa (pineapple guava). lychee. gassing. . chicory. Coordination of multiple production sites." . . while the North has the biotechnology to alter them . it impinges on women's livelihoods. cassava. At the same time. where. of organic fertiliz· pestiddes. in 1965.108 From National Development to Globalization The Global Economy Reborn 109 It involves. As sorghum produc­ tion doubled (supplying 74 percent of Mexican feedstuffs). the only Mexican inputs are the land. and plan­ tain.e global fruit and vegetable industry depends on flexible contract labor arrangements. in the peak season. However. no The second green revolution contributes to the globalization of markets market IS one of the most profitable for agribusinesses. and baby vegetables. and 32 percent in beef. agribUSiness firms promoted the use of hybrid CASE STUDY The Global Labor Force and the Link between Food Security and Food Insecurity n. boxing. and the workers. As global markets maintain chilled temperatures for transporting fresh fruit and vegeta!>les have deepened and transport technologies have matured. the workers who produce the s tomatoes do not benefit. substituting feed crops for food crops and the exacerbation of social inequalities (in access to land and basic foods). Perhaps a more visually striking indicator of monocultural production was the packing plant. especially since the peso crisis n tions typically subcontract with or hire peasants to produce specialt y horticultural crops and off-season fruits and vegetables for export pro­ cessing (canning. of sustainable practices such as crop rotation or leaving the land fallow for a year-practices that had maintained the land for millennia. kiwi.000 pickers and 700 packers. meat con­ pork. and 75 percent in Sub-Saharan Africa. Women's lack of security and righlS in land means that commercialization easily erodes women's role in and control of food production. is achieved through information technologies. the sun. and salad greens such as arugula. . carambola (star fruit). North America. In the 19705. and Del Monte have moved beyond their traditional commodities such as bananas and pineapples into other fresh fruits and vegetables. In sorghum seeds among Mexican farmers in the late 1950s. willi this loss of control comes a spirihW loss. Y ear-rOlU1d produce availability is apple). Deborah Barnd t's research retraces the journey of the tomato from Mexico to the ubiquitous fast-food and retailing outlets of North America. The improved seed . . as well as producer experience of growing food (or Mexican government established a support price favoring sorghum over wheat and maize (produclS of the green revolution). with increases of 65 percent in kind of meat w other words.ng consequences: consumer ignorance of conditions Wlder which uleir goods are produced. . vegetables such as bok choy.ins in ethnic and gen­ dered terms. and dicing) to supply expanding consumer markets located primarily in E�rope. 65 percent in Asia. . In this new division of world agricultural labor. as the commodification of agncul­ ture for global markets proceeds. Most food consumed acrOSS the world is produced by women: accounting for 45 percent in LabJI America. Chiquita.It pmen (firms for) distant consumers rather than for their own communities. This ailable for about one-third of the population. What is instructive about this agribusiness strategy is that the food security of northern consumers (via the global supermarket) is obtained through the fOOd insecurity of Mexic�onverted from a food self-sufficient nation (relinquished in 1982 with the dismantling of the national food system) to ." complemented with exotic fruits such as breadfruit. Their role in agro-export production also denle them participation i subsistence agriculture.

110 From National Development to Gl obalization The Global Economy Reborn 111 one that imports one-third of its food needs (staple grains).s. changes its inventory and "look" every six weeks. In the garments trade. Vietnam. Displaced maize farmers (especially indigenous women) move to the new agro-­ sequencing o f mass production-the "just-in-case" system in which ized consumer markets. using smaller and less specialized (multitasking) labor forces. tomatoes? volatile consumer markets. tions to suit individual needs-the sneaker industTy with its endless variations in style. we have seen a considerable stratification of consumption-in the broad quality range of caIS and clothing items. or lean. Thus. Even if the commodity lUe cycle has quickened. Car and light truck production in Mexico was prOjected to trIple between 1989 and 2000. The size of market segments depends on social class incomes. a new Chrysler assembly plant."" With Jrr (premised on informatics). where strategic countries act as nodes for trade and investment circuits. Whether flexible production is actually replacing mass production is not entirely clear. a global market. production is reorganizing mass production to aUow the segmenta­ strategies to allow them to segment conswner markets. and in selling strategies. which used to manufac­ ture appliances and sinks. firms tend to invest in regional sites so they can respond quickly to local/regional market signals as fashions changeS. This means sub­ tion or differentiation of consumer markets. With t1Je Asia-Pacific Economic Conference (APEC). Recently.' countries such as Mexico and Malaysia become important investment sites precisely because 01 the new regional complexes of the North American Free Trade Agreement (NAFTA) and Recent concentration of investment flows in the denser First World stituting flexible for standardized mass production. "The best retaUers will be the ones who respond the quickest.$l0 to $20 million a year to "sell" these products. Marketing now drives pro­ duction. One . In U. use of inventory. and Japanese auto companies ". where the time between cash register and factory shipment is shorter. Because of the formation of an infinitely available global labor force. What are the long-term consequence of a global food system that destabi­ lizes peasant communities and exacerbates southern food dependency. are currently expanding their operations there. regions of the world market reflects this corporate strategy. and severat parts facilities. built one of North America's larger auto-making system of "destandardized or flexible mass production. where an integrated production com­ firms to mass produce essentially simUar products with multiple varia­ . where automated technologies are less transferable. for example. firms have been able to reorganize marketing arrangements in the "field. These are the plex based on the JIT principle has the greatest chance to succeed. U. The city of Saltillo. Shifting consumer tastes require greater flexibility in fums' production runs. The Gap.S. So firms locate near the big markets.S.e clothing industry. as well as in the segmentation of the beef market into high-value beefsteak and low·value hamburger. As the company's Far East vice president for offshore sourcing remarked. the Toyota Company introduced the just-in-time am COmplexes. demanding greater production flexibility. flexible. is a clear case in point. while corporate celebrities are paid U. shoes and garments commodity chains can be dispersed globally and centrally coordinated by the parent fum. Global Sourcing and Regionalism Global sourcing is a strategy used by transnational corporations and host goverrunents alike to improve their world market position and secure sells the shirt in the European market at 5 to 10 times its price. a Chrysler engine plant. the best . Vietnamese workers make about U. and a system of "mass customization" has developed to allow regions with the largest markets. where what they earn in a week in Mexico is what they eam in a day in the United States. simultaneous engineering replaces the In the 1980s.$400 a year stitching sneakers. firms are increaSingly under pressure to respond 10 changing consumer preferences as the lUe span of commodities declineS (with rapidly changing fashion and/or technologies). use of inputs." where flexible labor costs are so cheap. . Changing fashions favors flexible subcontracting predictable supplies of inputs."" The ]IT system promotes both global and regional corporate strategies. In more capHal-intensive sectors.-arket in mind.s. with the North American The new industrial corridor in Mexico (from Mexico City north to Monterey) demonstrates this effect. so firms can respond to qu m. In the shoe trade. including two General Motors plants. . or Thailand and for no good reason other than profit and a year-round supply of tasteless SOllrce: BnmdI 1l997:S9·62).terials are produced on inflexible assembly lines to supply standard­ maquilas or to North American orchards or plantations.$3 to $4 in Bangladesh. By contrast. a global fashion designer typically purchases a Paris­ designed shirt for U. simultaneous engineering allows icker changes in design and production. mass consumption of such commodities still occurs. In facl.

providing inputs (chicks. crop farming and processing. retailing. the �ajority of foreign investment concentrated in regionally � :. where is this kind of development going. As that decade began. Campbell's. Meanwhile. When we see the extent of a TNe's concentration of power over regional production. Indonesia." 19905."" Meanwhile. and Toyota and Honda continue their interest in this regional market. cement. General through a public joint venture. U.S. Mexico retains the advantage in automobile p� jesus Gonzales Reyes. Burch. pesticides and agro-chemicals.112 From National Development to Globalization The Globa l Economy Reborn 113 consequence of this process is a stratification of Mexican industrial workers. CP has used joint ventures • CASE STUDY Regional Strategy of a Southern Transnational Corporation Or global economic activity. and its poultry operations accounted for 10 percent of China's broilers. !toh.. including seeds. as wages for some auto work on the border drift up with rising skill levels-<>n the order of a 40 percent increase in the first haU of the 19905. Kellogg's. as well as in telecom­ munications. Vietnam. cheap indigenous labor'J ti ese states are SIgnificant because they have large and growing domes­ cant states such as China. and India. In the 19605. Industrial corndor hnkrng the south of Mexico to Panama to mobilize the pool of displaced. which are likely to replace Thailand as the regional SOurce of shrimp since they are cheaper sites for an industry that is beset by ecolOgical stress. C. producing 235 million day-old chicks per annum . 4 in South Korea. dairy products. there is a new vision of nomiC regionalism under way in the Plan Pueblo d Panama complex: e . medicines. aquaculture.000 employees in 20 countries. 3 in Malaysia. Mexico. in tum. General duction since cars are costly to transport. By the mid- (CP) Group was formed in Bangkok in 1921 by two Chinese brothers to vices) to farmers and. vehicles. and jute-backed carpets. and wheat milling to supply regional markets " invest in food-processing operations in Mexico. and Uoilever are investing in fruits and vegetables. controlled the KFC franchise rights for China. including 715 Seven-Eleven convenience stores. and European firms rush to an NAC supplying the North American market-sirnilar to Thailand's Foods. CP has investments in fertilizers. In the 19805. We tend to think of TNCs as northern in origin. Pepsico. CP was operating 75 feedmills in 26 of China's 30 provinces. Firms such as Coca-Cola.50 to $2 an hour vs. By now. Kraft. japanese. Indonesia. and petrochemicals. acquiring a Kentucky Fried Chicken (KFC) franchise for Thailand. declared. mil. from which it began to vertically integrate poultry production. " In the context of NAFTA. supermarkets. in Southeast Asia. the world's largest producer of farmed shrimp. China. as well as animal feed in Indonesia. CP was Thailand's largest TNC and Asia's largest agri-industria! c markets andlor they are located near other large. meat. tractors. CP pro­ duces poultry in Turkey. CP's current initiative is in shrimp farming. It was an its poultry. consolidating its status as new regional supermarket role. extension ser­ cally and then regionally in East Asia. selling the TIjuana-San Diego region. CP expanded into ani­ mal feed production. Green Giant. feed." While some investor in China. Jose de Motors opened 23 faclories in the Southeast Asian region in the mid19905-15 in China. As Tijuana's mayor. where i t controls 65 percent of the Thai market and is to expand shrimp farming to Indonesia. Ford expects to match this by capturing 10 percent of the Asian market by the end of the first decade of the twenty-first century. seed maquila jobs have already moved to China (an entry­ level factory worker in Tijuana earns $1. affluent markets in East AsIa and North America. and South Korea. and the United States. The Glamen Pokphand trade in farm inputs. with 100. real estate. operating in 13 cities. processing and marketing poultry domesti­ New strategies of regional investment partly explain the repatterning of Investment flows in the 19905. and Rickson (2000). Tyson Foods. and whose future does it serve? Source: Goss. Bird's Eye. credit. establishing a feed mill in Shenzhen in 1979. Nestle. 25 cents an hour in parts of China). and 1 in Indonesia. even though the pay differential acroSS the border is still more than 6 to 1.'" Just as in the 19705. in a joint venture with Continental Grain. In 1995. CP entered retailing. and no'" CP controls about one-quarter of the Thai fast-food market as an outlet conglomerate. . baby foods. foreign direct Inves tment (FOI) in the Third World increase d as global FDI declined . when the NICs were the locus of world economic expansion. Vietnam. Malaysia.k processing. livestock operations in poultry and swine. "This is our new strategy. India. CP is involved in China's fourth and sixth largest motorcycle manufacturing operations and in the development of an industrial park and satellite town in Shanghai . Cambodia. and Vietnam.

two trends were becoming clear: (I) The First World was not waitin for the Third World to catch up­ a possibility of upward mobility for individual states in the world ec0- one strategy emerging among some Third World states was to attemp t to reduce that gap by aggreSSive exporting of manufactured goods. The rise of the NICs did not simply represent nomic hierarchy. emerged as the criterion pa rlicipation in the world marke!. operation." Export expansion in the Third World can now be understood from two angles. in Jakarta. But within those macroregions. Singapore. centered on the United States. development was understood as primarily a national process of ec0nomic and social transformation. and he global brand. ing differentiation among Third World countries. It also altered the conditions for "development. they subordinate their political and social futures to the global economy. Global sourcing merged with the export-oriented strategy. "With trade barriers coming down. deploys flexible menus to retain local market share. But bv then. the segments in mind. while Wal-Mart sees the consumer world as its oyster. the transnational corporations were building global production systems-in manufacturing. the global economy is sub­ Germany /Westem Europ. On the other hand. Taiwan. especiaUy as a result of the debt regime (see Chapter 4). beyond trade among national economies. Development has begun to shed its national identity and to Change into a global enterprise in which individual states must particip ate-but quite ten uously as we shall see. global. respectively. However. Japan. rice 'supplements French fries on the menu. low-skill essary to accommodate cultural preferences. but in Vienna. How the future will unfold-with Summary This chapter has examined the rise of the NICs critical to the emergence of a global production system. the firm with the ment into a recipe for whal some term upward mobility. rather than replication of of "development. depending on the need for proximity (e." Until the 1970s. export expansion was part of a global strategy used by transnational corporations to "source" their far-flung activities. a new global economy was emerging. the real exponents of this strategy. Successful gov­ ernments have converted liberalized policies regarding foreign invest­ also may reflect a defensive strategy by firms and states that distrust the divided into three macroregions. and pOSSibly Malaysia). and services.. often based on greater economic affinity among the members in global or regional integration as the dominant tendency-is not yet clear. for instance. improving their export composition. It is organized chiefly by transnational corporate webs of economic activity. Spedalization in ' the world economy. the gap between these two world regions was expanding-and (2) g As states absorb global economic activity into their social fabric.-.114 From National Development to Globalization The Global Economy Reborn 115 or fresh vegetables) or on sourcing from cheap labor zones (e. and South "McCafes". McDonald's. World capitalism has tendencies toward both global and regional who gets there first does the best. Sut it integration. agricultur e. whether regional or cou ntries was to adopt the NICs' strategy of export-oriented industrial­ izati on.g. They attracted foreign capital with promises of stable political conditions and anticipated world-economic technological upgrading. In the service industry. The result was a grow­ development terms. with one spokesperson remarking. the cOrporate-based global economic system is unstable and beyond its ability to control or regulate. regional strategies may be nec­ may seU Big Macs and Happy Meals in Vienna. On one hand. and in low. Meanwhile. have displayed an unusual capacity for a flexible form of state capitalism.g. Southeast Asia.ach with hinterlands in Central and Latin promotes trade and investment flows among neighboring countries. it caters to local tastes in blended coffee by selling Seoul.. Indeed." The prescription for Third World By 1980. and securing the benefits of riding the world economic curve. developing growth in both manufacturing and agricultural products. it was part of a governmental strategy of export economic activities within a national framework. domestic markets matured. and America. For any one state.to mid-value retailer Wal-Mart has broad. In effect. including labor repression. McDonald's seUs roast pork with soy sauce on a bun. Indonesia. standardized consumer Different firms have different production strategies. Regional integration may anticipate global integration since it workforce skills. the world is going to be one great big marketplace. indeed. the World Sank redefined developmen t as "successful Korea. automated technologies labor processing). accompanied by consid­ erable political authoritarianism. the Southeast Asian NICs (South Korea. in conventional terms of their GNPs and wage levels. .. and Eastern Europe/North Africa. Some middle-income Third World states such as Srazil and South Korea con­ verted domestic production into export production on their own as . The global economy was embedded in those parts of national societies producing or consuming world commodities."'" Thus. McDonald's. there are smaller free trade agreements in intentions of other firm/state clusters.. linking sites of labor differentiated along skill and gender/ethnic lines. At present.

perhaps.'" 1980 as "partiQp. defeat of a • final effort at Third World Econom. as the foundations of · than a matter of economic integration. � Developmetlt Report na tionalism came in the form of a CIA-led coup in 1953 against Iranian .e rise of a global money market. tions bringing extensive austerity and Third World charges of a "lost . In the 1970s. 1980s.-led Western interven oor policy opmen remised on an open-d duced a the Third World. Third World states borrowed from global banks as if there were no tomorrow. ·s was made possible by the rise of a global banking sys­ .ic Order initiative). so it died as a polit­ Ica l entity. when. decade. compelling them to look outward. and financial disciplining of indebted countries by the Bretton Woods institu­ tion intro­ General Suharto in Indonesia in 1965. MOn! political entity. First World sponsorship of profligate borrowing by often co rrup t Third World elites. crisis. U. with the a s elaboration through military and economic aid of a cold war empire of containment." economic World unity.Demise of the Third World 117 The redefinition prepared the way for superseding economic nationalism d and embracing globalization.s. The resulting debt crisis drastically reframed the development agenda: The World Bank and the International Monetary Fund (IMP) imposed new loan-rescheduling conditions on indebted states. spurred on by a process of financial liberalization that eased the cross-border movement of money. It is essen­ tially about the transition between projects and suggests that this transition had several related political and economic strands. even U\ Its formative years. Demise of the Third World this mountain of debt crumbled as interest rates were hiked to relieve an oversubscribed dollar. including the following: • T globalization World as a he consolidation of a global economy undid the Third a condition for the project of globalization.Jn. for their development stimulus.Uion:. But his passage traversed four decades. In the 1980s. This chapter surveys these various ways in which the debt crisis trans­ formed the development project into a globalization project. the more than two decades of military foreign an financial disciplining of Third World initiatives that restricted and threatened corporate access to Third World resources and markets installation of default on First World loans. Banks lent money as if there were no risks in bankrolling Thind World goverrunents. Beginning. beginning in the 1950s. was redefin rld market. the first symbolic blow to Third World economic ly which had been defined as national orld ed in the World Bank's W managed economic growth. this was represented as the The Empire of Containment and the Pol�tical Decline of the Third World Just as the Third World was born as a political entity. rather than inward. Money became increasingly stateless and easy to borrow.the. • • unity (the New International finanda! deregulation and U. The t. culminating in the debt in the 1980s. symbolizing the rise and fall of the development project. tem in the 1970s.

' In 1965. a CIA memo recorded an agreement between the British ident Sukarno. sponsored a 1967 meeting in Geneva between General Suharto. following regime change.S.and military-sponsored form of development. T une-Life. Another key figure in the Non-Aligned Movement we . ·onalist movements a e model of the Soviet Union. and lraq.'" Sukarno's regime had mobilized mOre than 15 million citizens to join parties and mass organizations that challenged Western influence in the region. General Motors. the non- . The great need in one country is for raw materials. indud­ ing a pogrom claiming between 500.'" o (NAM). "In tenms of the numbers killed. securing and prying open the Third World to an emerg­ m g project of global development orchestrated by the United States as the dominant power. concerned that the Chinese experiment would overshadow the Indian model of state-guided (nevertheless capitalist) development. The two regions complement each other markedly.-led coalition during the next two decades confirmed this policy. British Leyland. ventions in Chile.. used the pretext of an internecine struggle between the Indonesian army and the PI<l to unleash a violent "year of living danger­ ously. This world of international enterpr ise is more than governments. President Kennedy to "liquidate pres­ rebuild lraq in 2003. Inc. critical of the bureaucratic-industrial foreign investment. General Suharto reformulated a development partnership with the between foreign high-tech and peasant armies. British­ American T obacco. ." the conference nevertheless invited the Corporations to identify the terms of their involvement in the Indonesian economy. and communist parties. By the time of Indian Prime Minister lawaharlal Nehru's death in 1964. depending on the situation and available opportunities.s.s. moved to strengthen its alliance with India to anchor the Western development project. President Sukamo was overthrown in a bloody coup. and highly indus­ tTialized Japan to the benefi t of both. . The region produces nearly 85 percent of the world's natural rubber. The United States. as Prime Minister Macmillan and U. for the greater profit of the free world. Nicaragua. Such interven- region by U. . SOvereIgn ty.S. Military power was thus part of the mix. Inc. In a tion. lrnperial Chemical Industries. Not unlike the U." And twO years earlier." General Suharto." With Ford Foundation help. reversing urban bias and "modernizing" the peasantry via the Great Leap Forward in the 1950s. . Muslim. of the twenty-first century is ohen identi fied The' Vietnam War ( early 1 96tJS=t 1975) (Jill a mboltze=gi6tra1' . over 45 percent of the tin. Siemens. Goodyear.'" Declassified documents reveal that a British Foreign Office file in 1964 called for the defense of Western interests in Southeast Asia because it is "a major producer of essential commodi ties. American Express. his economic advisers. forming what he called a "Guided Democracy. expressed the birth o this /lew global f order when he observed in his opening remarks. leader of the coup. By strengthening of Vietnam and helping insure the safety of the develop the great trade potential between this region . Granada. . in the other country for manufactured goods.tegun SIoI ali t strategy of Third Worldism was weakening. tion was quite consistent with the containment policy articula ted for that g tl'a. u 1'OmHn Indonesian President Sukarno. Panama. as well as betwe en the ide­ ologies of free enterprise and socialism. President Eisenhower in 1959: One of Japan's greatest opportunities for increased trade lies in a deveJopiJ'lg Southeast Asia . as a confrontation The New lnt�mational Economic Order . . . China. president of T une-Life. Just as terronsm . Billed "To Aid in the Rebuilding of a Nation. . offered a different model. and it was followed up with strategic inter­ well as disbursements of military and economic aid to secure the perime­ ter of the "free world" and its resource empire.'" members of Indonesia's huge and popular communist party (the PKI). 65 percent of the copra and 23 percent of the chromium ore. government's awarding of private contracts to and corporate leaders representing "the major oil companies and banks.000 to a million lives-mostly The CIA reported. EI Salvador. . which has been shaping the global environment at revolutionary speed. International Paper Corporation. 'We are here to create a new climate in which private enterprise and developing countries work togethe r . It is the seamless web of enterprise. 1ftEEfUeditf The world was deeply divided Over the war.ee WOlle pmen "'Kparln til . we gradually Pacilic will be grea tly strengthened? The war w aged in Vietnam by a U. one of the worst mass murders in the 20th century. supported by a complex coali­ tion of nationalist. James Linen. the massacres rank a. and US Steel. In this way freedom in the Western free and South Pacific and Southeast Asia.118 From NationaJ Development to Globalization Demise of the TItird World 119 Prime MIDister Mossadegh after he nationalized British oil holdings. and as an issue of empire versus . nurtured a state.

a1 . as oppo�d to the impoverished "least developed countries" relian opening northern markets to southern industrial exports. the Urnted Nations Conference on Trade and Development (UNCTAD) put pressure on the First World to reduce tariffs on Third World manufactured exports. Mexico..: on 0 eirg urn thrives by virtue of a process which continually impoverishes the poor and control over strategic commodities such as oil. This was the formation of What would become the . both sets of relationships were responsible and mutually conditiOning. and West Germany-met in the White House Library in 1973..rese�. and Venezuela-all oil­ p roducing nations distinguished by their very recently acquired huge oil rents. on basic needs via the elevation of rural development COWltries were (LDCs) and the NICs. Algerian preSident Honari Boumedienne told the UN General Assembly in 1974. countries has been of little or no benefit to perhaps a third of their population.tedc globa1iuequa � lldl! � � � � � Il.l) representing the possibility of Third iiOIi liIIil tIiIl : iiii iiii: . In addition. It is now clear that more than 8 decade of rapid growth in underdeve10ped .i. The NIEO included the following program: • The NIEO was a charter of economic rights and duties of states. The NIEO initiative was perceived as "the revolt of the Third World. The finance minis­ 11 eve p -o ters of the original members-the United States. which had . d Second World." It was indeed the culntination of collectivist politics growing out of the NAM.. It demanded reform of international trade. so commwtism and/or national liberation struggles were linked to Wlderdevelopment. and Canada were included in the G-7.Qiilitr. iiil Ei iiiii . and facilitating more technology transfers.ni. and. the Soviet Union declined involvement on the groWlds that the colornal legacy was a Western issue. in tum. a confirmation of dependency insofar as the proposal depended on northern concessions that would. and technological assistance. claimed the · hU. the 1974 pro­ posal to the Urn ted Nations (UN) General Assembly by the G-77 for a enriches the rich. tructu. it pro. Inasmuch as [the old order] is maintained and consolidated and therefore growth as a social objective has increasingly been called into question. perhaps inspired by the Vietnamese resis­ tance. But it was arguably a movement for reform at best and. the very idea of aggregate � h-tl���re�p'.. which reduced protection only on goods originating in transnational corporation (TNC) production sites.ng products.rna�LfOCUSing olLinequ. II this decade: first. increase external revenues available to Third World elites. and increased financial aid). the World Bank reported. " ing in tile way of any hope of development and progress for all the countries /NJEIl). Italy.al::pow n develop­ For example.:. national liberation forces came to power in 14 different Third World states..tO • • improving the terms of trade for tropicaJ agricultural and m.J�ii!Jiaei:lOl!EC.120 From National Development to GLobalization Demise of the Third World 121 as a product of poverty. the Urnted Kingdom. :DIJ . Japan. tho m . eco­ not achieving the rising living standards promised by the development project." displaying a more radical.ill'ties . but the interpretive stakes were high. debt relief.W t:a. Despite exceeding the growth target of 5 percent per annum set by the nomic and social indices showed that most Third World Urnted Nations for the second development decade of the 1960s. Interestingly enough.. France. second. the formation of the I!iipm_".ti". at worst. while growth poliCies have succeeded beyond the expectations of the first development decade. � Of course.wIle<. the international mone­ tary system (to liberalize development financing.. its prime movers were the presidents of Algeria. social­ ist Third Worldism than the first-generation regimes that pioneered the NAM at BandWlg in 1955 and informing a radical dependency theory that sought to explain the evident crisis of Third World development in terms of the continued exploitation by the informal relationships of First World empire ' Between 1974 and 1980. moo S ·3 Although the NIEO included the • The NIEO initiative was consistent with the dependency perspective. Iran. This was the time of the "second-generation BandWlg regimes. this economic order constitutes the major obstacle stand­ of the Third World . designed to codify global reform along Keynesian lines (public irntia­ lives). RefOCUSing funding for 700 million smallholders. namely. in 1974. The possibility of a united South presented itself in two forms in Paradoxically.. This proposal demanded reform of the world economic system to improve the position of Third World states in international trade and their access to technological and finandal resources." Coinciding with the G-77's proposal for global reform was a new development in the core of the First World. g1lX. providing better access to international financing. By 1975.

S.in plac urn . In short. .OJl uJato o. lth.S. The idea 01 encouraging a country's participation in the world mari<els W<lS a m ive so/ulilms among tlte to rom.� ta s.1S to organize a "lender of last resort" func­ the organization of the world economy: the demise of the Bretton Woods stagnated and the world was awash in stateless money and petrodollars. as i t passed. the excess �. frnctlll:fll Pi!!!. with the multilateral financial institutions (the World Bank and the IMP) and the ret on bet". redistributive goals A-Tntnsnati". stabilization of the condi­ trying to institutionalize the dialogue within lorums such as the French­ initiated Conference on International Economic Cooperation (1975-1977). : � a�N I � ft j 6 . At the same time. stemming from (BIS) tion scenes While the G-7 only went public in 1986.of tud World . 16 :. the Bahamas.iffiea stable exc anges 01 .S. it nevertheless met the demands 01 Third World elites for devel­ market as the new development strategy was already strongly rooted.:".: . . Also. in 1974..0'lNC this response. But the master theme was really pme. Although much of the wealth was oil money. usually in tax havens. . Th." T learn why this financial global­ o ization occurred.. """ regime. then leU to $50 billion in 1985 as a debt crisis followed the orgy of overextended or undersecured loans.. There were several parts to w � 1t tren�thl!.lty-grew-wttll i i c lSun gtRee rrrudtll e-incE>me -an<i-poorer I!m!s. the First World managed to sidetrack the Third World's collective political initiative and assert the market solution to development problems. :. which accounted lor one-fifth 01 Third marked differentiation in growth patterns of cOllOtries in tensilied in the ensuing debt crisis of the 19805. the unity of the Third World frag­ in . TNBs used these deposits to make mas­ sive loans to Third World governments throughout the 1970s. lntemational bank lending.�y e 01 this story is tha aftemp poUtl��lillity h tleWOrld Just as economl a.. National Security Council articulated the expectation government. w'!Zerl d. Third World unruliness. fixed currency exchang es stabilized cOW"ltries' domestic interest the American dollar served as the internat ional reserve currency." l � "". peaked in 1981 at $90 bil­ lion. and a U... Its origins coincided with a profound shift in liquidity during the mid-1970s when the First World ensuring that the NITO and its symbolic politics would not amOlmt to i. at $2 billion in 1972. where national economic growth depended on the international cixculation of Am�rican dolla rs. oods lTadin g EOUntril>S. we need to look at the duality 01 the Bretton Woods sys­ tem. as e><parlSion representatives 01 the global production system was necessary First World economic he. therefore. social spending by governments. Netherlands. ������:����� : . including the World borrOWing).. the International Settlements the deregulation of international finance. INBs were l Ull w..ifl'i :hey.is included stabilization of rural pop­ ..122 From National Development to Globalization Demise of the Third World 123 alld economic policy for the seven states (which. and Belgium) responded to a financial crisis. 'fItrr. _ � _ � i: dtim � � Which met severa1 '.. by agreeing to use the Bank for . d : respe�mbined mo ra! themes iIti govern ceo the NIEO initiative. the 01 the NITO would be overridden by the new doc­ restrictions in credit and. or the Cayman Islands. in turn. the goal of the NIEO in redistributing wealth from First to Third Worlds in some ways actually came to pass. central bankers of the G-10 (G-7 plus Sweden. ·elI't ma nF. In the long term. which amplified global power relations. recycled through bank lending to the Third World. The CI�ts outsid�the jlj!isdiction or control aLan from their poorer neighbors. In the meantime..1 ba (TNBs) formed in the 19705 with the help of a bur� geoom .-"Worl 0 . {finn:>ooperati � to d ulations and extension of commerc ial cropping. An that the differentiation among Third World states would promote a form 01 the U.OR81 0 er. . uJ i4 111l1 iJJ. . so did the energy of interest in II! trine of official of mented as the prospering OPEC states and the NICs assumed a greate r rd mobili netuism that ushered in the 1980s debt crisis thro ugh drastic in the short term. l!>s. .. it played a key role behind the in the event of future crises. The G-7 provided First World backbone. Much 01 this money was concentrated in the middle­ income states and considerably undercut Third World political unity The tions of private foreign investmen t by improved coordination of economic policy across the North-South divide.. and anything.17 The moral embourgeoisement as prospering states sought to distance themselves . To accomplish this stabili ty. Federal Reserve Bank making disburs ements in dollars.'t7snJ /aeUt financing vr# U. es bu t reached no a g eement . strategy 01 buying time by Financial Globalization ' � � r:. . W opment financing (in addition to financing rising costs of imported fuel as well as rising military expenditure. an UlT eres to OS ering private solutions. The First World's mqiJility to World Bank's basic needs strategy. se t the northern annual secret meetings in which the first five finance ministers shaped agenda).

Federal Reserve system. the mid-I990s saw massive speculation in the Mexican peso. This was the so-caUed Euroc:urrer. liability if cashed in for gold. In 1992.be. for .s.. rather than trade. Eurodollar deposits ballooned with the expansion of U.S"'� -of-llie development proJeC . a move that severely destabilized the Mexican economy and was so threatening to world financial markets that the United States stepped in to support the Mexican currency with bil­ lions of dollars of new loans. when investors expected the North American Free Trade Agreement (NAFfA) to strengthen the Mexican economy. e cils a the blood! lting of -tl! y ". through the superiority o!.. M. world financial markets traded roughly $1 trillion in various currencies daily." said rates and. this stable monetary framework."22 The loss of currency control by governments threatens nations' eco­ nomic and political sovereignty.S. Between 1960 mounting pressure on the doUar. compromising planning. This was the end of the dollar standard by which all currencies were fixed to a gold value thI·OUgh the U. dwarfing U. contrary to the wishes of Western Europe and Japan. Governments could thus implement co erent neoliberal coolition nil multinaii9naJ corporate interests favored financial ." He found this system to be "far more draconian than any previous arrangement.S. began to determine currency powetJn.'" Domes I ally.. As overseas dollar holdings mushroomed.000 trading room monitors across the world. because there is no way for a nation to opt OUt.: Irtrematl'i1fliiI� e balance a .s. trade in foreign exchange was more than 11 times the value of world commod ity trade. The seven largest U. (as a currency-stabilizing mechanism). traders sold their peso holdings. military market. rising to more than $1 tril­ Bretton Woods system of fixed currency exchanges was the beginning Just as the rise of the development project was politically m'ma. When it did not. as conducting "a kind of global plebiscite on the mone­ tary and fiscal policies of the governments issuing currency.ralization-viewed S-� ernarusm to reassert U. such as the gold standard or the Bretton Woods system. Banking on Development Fueled by the dollars earned on the 1973 spike in oil prices engineered by OPEC. By depositiiJ\f (accessed also by the Soviet Union). ·at at conservlllill and mounting financial and. tion the international financial system signaled .managed. their economies. In th .055 billion in 1982. the dollar as the dominant (reserve) currency. The termination of the end of the development project. Keynes.S." Within sue development programs with some predictability. doUar. � .s. policy. breeding a growing offshore dollar market Foreign a.cy ern ments " For example.�.. United States unilateraUy liberalized international financial relah''''''' Removal of exchange controls was designed to protect the autonomy ciated with its large deficits onto other states and investors as they U. The bailout deal required Mexican oil rev­ values.n. as a quid pro quo in the event Mexico defaulted on its repayments.!!:!e United States and its development described the currency traders. The instability of cur­ rencies. assets and doUars needed for participation in global m'lCk. the post-Bretton Woods era. politic orees includin an increasin The Offshore Money Market during the 1950s and 196Os.rd World 125 macroeconomic policy "without interference from the ebb and flow J. By the early 1990s. Third World countries were able to pur­ of international capital movements or flights of hot money. and therefore of profitability conditions.el!l.s. they became a U.li.id and investment underwrote national economic growth earnings in this foreign currency market. Deregulation ushered in an era of uncontroUed-and heightened­ pital mobility as currency speculators bought and sold national curren­ ca cies. Speculation destabilizes currency values. the offshore capital market grew from $315 billion in 1973 to $2. From now on. aUowing the United States to shift the adjustment burden early 1970s. facing 200. initially centered in London's financial district.124 From National Development to Globalization Demise of the Thi. lion by 1984. therefore. Financial markets. the architect of the postwar world economic order .S. the former chairman of Citicorp enues to be deposited in the U.tiC>I1!I evaded Bretton Woods controls on the cross-border movement of "". they grew from $3 billion to $75 billion. 1970. transnational corp01<. banks saw their overseas pro fits climb from 22 to 60 percent of their total profits in the same time Fenod " By the end 01 the 1970s. politicallc. and speculation on floating currencies destabilized national finances. President Nixon burst the balloon declaring the dollar nonconvertible in 1971..s.es intemallonauy and aning· I the emergence of .multinational <XIIRQrate investments. lorced TNCs to diversify chased U. gold reserves. aU beyond the control of national gov­ economic spending abroad during the Vietnam War. currencies wouldj7oo/ in relative value.

lor earnings. .f . petro­ chemicals. I as. private loreign direct investment leU from 34 to 16 percent. and loreign bank and bond financing rose from 7 to 65 percent . banks were lending more than 100 percent 01 their wlUle L10yds of London lent a staggering 165 percent 01 its capital to these Loans typically served several functions. along with currency speClilalion." money borrowed from the global banks came not only with no strings attached but also with easy repayment terms because there was so much money to lend.rom . ftll1111cial deregulation challenged national 'sovereignty I1y open ing national Inarkets to cross-border capital flows. glass. into a major producer and exporter of a mul· tiplicity of industrial goods-including steel.JOarlS. eager to borrow and considered unlikely to default. the average share of gross domestic mVestment lltird World states to exercise some autonomy from the official financial The presence 01 willing private lenders was a golden opportunity expansion of public enterprise." capita l to banks in New York. Between 1970 and 1982. railroads have been built to take ore cities ue linked by a modem teleconununications network. they had been beholden to powerful First W � to the nvestor presence ' OfIe . lite discourse accepted the idea o world market participation f irrc recogniti0/7 o the shortcontings of the two develop". aU nine 01 the largest U. With debt financing. combined with a flood of petro-dollars. bllt this kind o debt financing was Fould not go banknlpt. armaments. LAtin American nationalist model. markets. but by as IIle key to development. pulp.30 Much of this expan sion was organized by public. and V countries.. which. 1980s.e was len. between 1976 and 1984. legitimize the enezuela. destabilized macroeconomic pla n ning." By the end of the decade. and major Of the 21 Latin American nations. with banks model are summarized in the following insert. Brazil. from $8 billion to $45 billion. while multilateral loans made up more than 33 percent and composition of these figures had re�ersed.126 From National Development to Globalization Demise of the Th. partic­ ularly in the energy sector. The departures from the original de'velopment . rather than domestic. WIth grand public dev I ugh to. under TNC factured goods and agricultural prod­ leadership. unregulated private bank lending fficial. accelerated the their global operations to reduce their risk. Second. The composition 01 Latin American borrowing shifted dramati­ developmen t discourse in the early 1970s targeted poverty alleviation.in natiooali4t the holding about d to-enrich tlieir patrO'n. With the First World in an oil price-induced recession. By encouraging massive bOlrro'wir\2. Until now. By 1984. and other financial ca lly between the 1960s and the late 1970s.rge net­ o trengthen their militaries. which functioned now as the engine of growth of W world economy_ mation of a global production system. 18 were ruled by military regimes in De partu res from the Developmen t Model in the 1970s f The 1970s was a decade o transition. mllitilat­ displaced o f eral /ending to Third World states. energy. export credits accounted for 25 percent. Even though official lending continued to rise through the 1970s. between 1964 and 1985.S. redistributing econorrUc growth sta tes lor foreign aid and to multilateral agencies for funding of their development programs.28 from huge mines deep in the interior to new ports on the coast. and aircraft-and processed loodstuffs such orange juice and soybean meal. the rise in public loreign debt roughly matched a parallel outflow of private havens. f the.done to establish a coun- these economi"§. Rio de Janeiro and Sao Paulo have new subway systems. the Cayman Islands.ent eras. committed to investing in huge infrastructural projects. the financial the Third World. State managers borrowed heavily to finance the foreign in the public sector 01 12 Latin American countries rose orld cornmWlity. using loans to build the public sector in steel. the global banks turned to Third World governments. a string of military generals pursued the characteristic 60 percent of the debt. aluminum. Brazil translormed itsell from a country earning 70 percent of its export revenue from one commodity. Fourth. wruch .t on the assttmption that countries the 1970s.·th lucraIJ've contracts resultllfg. In Brazil. Argentina. bank loans accounted lor only 13 percent 01 Third World debt.i!d World 127 revolution. from 32 to 50 percent.. At the same time. cement. austerity measures f f undid many o the ga ins o the development project." In this way. as the development project unwound. as official loans feU from 40 to 12 percent. opment projects--represented.for world. When the debt crisis hit. '"-··�WI-.11 In the early 19705. shAreholders' equity in loans to Mexico. more and more manu ucts were y unsound-too much mon.or state-owned enterprises (like a nationa l postal service). Third. and raw material production. and much of it was designed to generate export rOOui:ed. ' the banks brokered the 1970s expansion in the middle-income Third orld countries. irst. coifee.

From the spoils.atell.tec! and complemented foreign and local private investment and even dized basic goods and services for the largely urban poor. and Chile's Augusto Pinochet. owed mostly to the World Bank. or sim 1)' make up lost ground. Zaire gained 500 British double-decker buses. . why citizen-subjects of Third World states? SOllrees: should the burden of debt repayment be borne disproportionately by the CASE STUDY Containment and Corruption Assigning blame for the debt crisis is complicated...!lebt regime. even when it enabled states to insist on joint ventures with the transnationa}s."" "at least 20 to 30 percent" of the Bank's loans "are diverted through infor­ mal payments to GOI [Government of Indonesia) staff and politicians. (2) gl<!baLgov­ ""I&. 27). 31-year rule. the CIA helped bring President Mobutu to power in for a rapacious. but he traded Zaire's vast natural resources. In 1997. By 1978. state enterprises expanded TwO years later.. mining. when General Suharto was forced to reSign. the military was the rule rather than the exception in the llUrd World.rms o L the. public foreign debt grew twice as fast as private foreign debt in latin America.mor.ough militariza­ ticating his rule in the name of African nationalism. such as Ferdinand Marcos of Pilger (2002:19-20). slate enterprises across the Thir World enlarged theu share of the gross domestic product (GOP) by almost 50 percent Because it was so uncon­ publiC foreign debt grew in the Third World. During Suharto's dictatorship of 30 years. Powerful military leaders. including a quarter of the world's roooS and half its cobalt.velopment project� borrowing to enrich ttleir pati:onage networks. In the Congo. Certainly. All acrOSS latin America. who appeared on the scene in the 198Os. where dictators were bankrolled as client regimes of the West in the cold war context. public largesse sUIPpllelllen. even a whore house. debt financi"g inflated the faundalio"s o Iile development state.t heir hold-on power thr. 13 percent of Indonesia's debt. aulm. _ tion or grand projects. a secret World Bank memo­ indu ding massacres in East T um from Jakarta disclosed a monumental development scandal: that rand the Argentine military's holding company. while more than $630 million underwrote the regime's infamous "transmigration" program to colonize the archipelago. everything. Roodman (2001:5-6. the Worl d Bank loaned more than $30 billion. The breakup of the Third World enabled global elites in the Bretton Woods . Regarding structive literacy programs.� in whic h individual national policies were subjected to coor . his severance p ay was estimated at $15 billion. regimes reached ond _the te. f Borrowing was an effective counterweight to corporate foreign invest­ ment. We shall call this b latter process the. Saddam Hussein of Iraq. .. they are in. Mobutu renamed his country Zaire.'IU� family holds his fortune..128 From National Development to Globalization Demise of the Third World 129 accounted for about 50 percent of the Brazilian and 28 percent of the Mexican manufacturing sectors in 1970 " During the 19705. de. and the country holds his $12 billion debt. It was estun. aru1. Fabricaciones an Argentine banker claimed. through fear and squandered the national patrimony. that 20 percent of loans by non-oil-exporting countries went to imports military hardware. • rule-based procedures that strengthened the grip of the globa P hhcal economy.. troU .S. Under ���� �d�ebIJ !> ted' The Debt Regime criSis consolidated two distinct trends that had b -rg ing in the 1970s: (1) the undoing of the Third orla as a coUectiJ rule.'" But it also deepened the vulnerabi lity of the develop­ ment state to the banks and the multilateral managers. and an unwanted steelworks. M'Jb. some of which went into con­ between 1970 and 1982 from 39 to 677 under the rule of the Institutional Revolutionary Party (PRJ}. Steel. munitions. "No one really knows what businesse. Deposed in 1996. Philippines. in addition to a dozen estates to which he traveled on chartered Concorde flights. the world's supermarket. stashed $4 billion by the mid-1980s. chemicals." If containment encouraged military rule and corruption was rife. foreign loans financed 43 percent of the Mexican government's budget deficit and 87 percent of companies. During the 19705. the old co� nial tactic of surrogate rule died hard-for much of the development era. aid to sub-Saharan African in the late 1970s. �en. In Mexico. as economic growth rates diverged among states. for bank loans totalling billions of dollars and U.

. The difference now was the combination in the 1970s of inflated oil prices and unsecured lending by the banks. partly because oil prices had risen sharply in 1979. Cred it raising interest rates as banks competed for dwindling funds.:"""isory status that individual banks did not have i financial system at large. jute. Thus it is vital that an they increase their share of world markets.S. Ghana. and shorter terms were the day of reckoning on conSiderably higher cost loans.s. Lending Third World countries slowed. and synthetic alternatives to ru bber. rather than declining export prices. a biotechnological substitute. account for Africa's poor export revenues.in the driver's seat. They claimed that the experience of the Asian NlCs was this pudding. Higher oil prices actually accounted for more than 25 percent the total debt of the Third World. several countries (including Argentina." moved to stem the The debt crisis began in 1980 when the U." The. ration in the poorer zones of the world..h around. The prospects for most primary 8. Some borro·WIns: continued. 60 _ e IMF took charge re 0 Third World d 51"'as with rivate banks. the NICs. debt stress and economic deteno. beca use its original task was to evaluate a country's financial condition fo r borrowing (even though this function broke down in the 1970s). . Indonesia.sta� to copy the NICs' strategy of export diversification in the world m'trk� informed the 1989 Declining export volumes. First World recession reduced consumption of Third World products. virtue (to justify the emerging neoliberal project). stemmed from a failure As we know.rkets to First World substitutes.3 percent in Tanzania. were in fact . 14. Ii once agam were . And debt servicing (paying off the interest) was consuming mOre than two-thirds of new lending in Latin America and Africa by the mid-1960s. To repay the interest (at least). national debt in that year. and more than 10 percent in the Philippines " Third World countries were suddenly m ired in a debt commodities are POOT. Debt ManageIJlent The chosen course of action was debt management. Third World countries were not in a position to continue this debt servicing-their dollar reserves lost value as rea l interest rates spiked.3 percent in Brazil. nevertheless. soy oils for tropical oils. they must earn foreign exchange to pay for essential imports. they would have to drastica lly curtail imports and drastically raise exports.market could not ese problems.38 The World Bank estimated the combined average annual negative effect of these "external" shocks in 1981-1982 to be 19. Previous debt had to be paid off. cushioned by the dollar sta ndard (the de facto international reserve currency preferred by countries and traders). But reducing imports of technology jeopardized growth. The IMF now had P.alan . it was a significant problem because COWl tries were devoting new loans entirely to servic­ ing previous loans.. aggressive export Debt was of course not new to these regions of the world. and Third World export revenues collapsed as primary export prices dived 17 percen t relative to First World manufactured exports. Even though this amount wa s only half the U. diversification into new commodities and drive into the rapidly growing Asian markets." Unlike the United States. . n other words. 29 percent in Jamaica. they said. Perll.:l4 tmp: Debt was choking their economies. and cocoa. Expanding exports was problematic. 18. we now know that the debt crisis was visited upon East and Southeast Asia a decade later. If Africa's economies are to grow. however. as commodity prices were at their lowest in 40 years and slid further with the glut of exports. Some com­ modities lost ma. Between 1955 and 1970. so higher export earnings must come from increased output. Venezuela. coffee. The United States reduced money supply with an aggresSive monetarist policy.1 percent of GDP in Kenya. Since the mid-1970s sugar price boom. cotton.130 From National Development to Globalization Demise of the Third World institutions and the First World to argue that the international economic order was not responsible for the crisis centered in Latin American proof of and especially the greater debt assumed by overconfident oil-producing states such as Nigeria. Federal Reserve Board sol faU in the value of the dollar resulting from its over­ circulation in the 1970s lending binge. timber. even thouj. Bretton Wood ' .9 percent in the Ivory Coast. Chile. Brazil. Furthermore. Other substi­ tutes included glass fiber for copper in the new fiber-optic telecommu­ nications technOlogy. African states. although held up as examples of market managed economies.l6 Third World debt totaled $1 trillion by 1986. . and T urkey) had the terms of their debt rescheduled­ sometimes several times-to ease the conditions of payment. the soft drink industry had steadily replaced sugar with fructose com syrup. in the 1997 regional financial collapse. and Mexico. intensifying debt..

with an $80 billion debt in 1982. owed to pnvare banks (U. ative successor. It is hardly an Mexico was the first "ticking bom b" in the global financial structure. Miguel ·De La Madrid. including austerity measures. IIIuI tila teral ks.policies of" the debtor countries rather than on the organizauon of globil financial system. Initial stabilization measures . vo1.g. loan conditions demanded restructuring. forcing Portillo to back down and . I 1 IS scourgmg country after · · . led and advised and supported by the private banks who have taken mOre money out of the country than the empires . on the unemployed who are Debt management took sa"eral fcnns. S. In 1986' f eXlCQ was rew M arded for refusing to pa rticipa te e ftort to orm a debto rs' club.JUlRm!: prehensive restructuring of production priorities and ance of payments) programs in a debtor country-basically reorganizing the ec')n<)m? Along with the World Bank and its structural adjustment loan (SAL). collectively debtors were in a weak brucgai cnill . indus­ t al b�pl:y and spec n :c ulative enrichment.S. Second.. � Ist coall!JOn rooted m the labor and . on the women who do not have enough food to maintain their health. the (febt managers placed the blame on .measures follo. government and the Bank of . As in Med. that explOIted us smce the begu .3 lion. Today. bankruptcy law..te . CASE STUDY Debt Regime Politics: Deb t Collection as Development? economic reforms. More than threeo quarters of th IS amount was . and those who survive bear witness t� theU' vU'�e before . recommending controls on "a group of MeXICans . . By the mid-1980s. " A glob a1 condonumu . � � . m-mduding the ban . an individual solution for debt resch" dldirlg Portill0's conserv . in a recrional 0- . . Inl hated by the U. campai ed on anteemg a reversal. I defined as a liquidity proolem (5 ortage of foreign currency) rather bOrrowers." uru k . to stimulate ec<)nc)mic seeing the erosion of aU that they have worked for. The oot . lMF levied restructuring conditions on borrowers in return for rescheduling. James P. out.s.the doctors of obsolete and prep otent dogma and of blind hegemonl3cai egoISm. foreign gov bil. peasant classes. He shocked the International financial com munity when he declare . despite alt. on the infants whose minds and bodies are not growing prop­ erly because of untreated illnesses and malnutritiOn. overSimplification to say that the rich got the loans and the poor got the debts:" Under . conce to an accord. MeXican poli tical forces were divided between a "banke ' alll ance" and the "Ca rdenas alliance"-repres enting a national. It is trans� lted by rats and its consequences are unemployment and pOverty. Jose Lopez Portillo. Why? flits!. . dent. Grant. d in his ou tgomg speech. nle financing plague is wre aking greater and greater havoc throughout the world. · 'J and the F· ' Irst World governments-p togeth . . T effect the bail � •0 . The debt managers drew on Chilean model of the 19705. and debt Furthermore. the financial co".empts l debt strikes (e. slashing social expendi tures to reduce debt. observed. by Peru). and the banks $5 billion in "in Untary loans. and on the children too brutal who are being denied their only opportunity 10 go to school. · uung of time. not the lenders-unlike U. ut er th e ballout packag e. a systemic problem. country. but on the poor who are having to do without necessities. the IMF bad the power to debt n!SCheduling (including further official loans) was possible only countries submilted to IMF evaluation and stabilization measures._ u m ational Settl . the responsibility for irredeemable debt fell on poe!tiolV given . the lMF put up $1. whereby debtor states received prescriptions for pouti"ll­ growth and regular debt service. linked the huge capItal flight from his COWltry ($30 billion between 1978 and 1982) to the Intemallonal financial order. F� pres� " . where a mili tary junta experimented monetarist policies.ieval lim . es. ing World Bank structural adjustment loans. ban k loans were more than 50 percent exp osed m MeXICO)..'". .i: . Debt this regime.. the dif eren tion among Third W orld states in often preferred by indebted governments to the uncertainty of a debtors' strike. . " P0rtil0 · l opposed debt management proposals by nati onalizing the Mexican banking system and Installing exchange control s against capital flight. allie d with the lalter group. ernments $2 billion.n.ve.who protest must be purged. The remed y of the witch doctors 15 to deprive the patient of food and subject him to compulsory rest Th �e .]32 From National Development to Globalization Demise of the Third World 133 focused on financial management (lowering imports to reduce imbal­ tructural adjustmenL.ments . In the executive director of the United Nations Children's Fund (UNlCIlF). the heaviest burden of a decade of frenzied borrowing is falling not on the military Or on those with foreign bank accounts or on those who con­ ceived the years of waste.

p Most of these measures fell hardest o the poorest and least powerful n larly ruling elites and middle classes who benefited from the original ing poor via austerity cuts in social se!Vices. cotton for 45 percent of Sudan' s and 54 percent of Chad's export earnings. matching the absolute increase in population size during fied. farm roducts. In grains and oil seeds. in other middle-income nations (e.9 in 1980--1982 to 0. mey institutionalized the new definition development as participation in the world market. privatization of state enterprises. thereby improving the balance of trade in the favor).g" Brazil. Adjustment measures included the following: • adjustments overrode the original development goal of managed nationa l and social priorities within indebted countries.r loans. and purchasing power fell to two­ thirds of the 1970 leveL The number of Mexicans in poverty rOSe from 32. the basic needs of 41 million Mexicans were unsatis­ is it that its prescriptions served as a new model of development under the (1996:177). "Most of the burden has been borne by wage earners in the debtor countries.1 Minimwn wages fell to 41. bur i t came at a heavy cost.3 million. These rules had two key effects. largely basic stape fOOds mgs to service debt in 1983. As World Bank chief econo­ mist. 63 percent of Ghana's total eXports. Malnourishment grew.. SUdan.t. and rehy­ 50 percent between 1983 and 1989. manufactur­ leading to a considerable decline in formal employment opportunities. vegetables. By 1987. Stanley Fischer. with extensive state-sponsored agro­ mdustria lization. as part of the IMF loan rescheduling conditions in 1986. Rescheduling bought time for debt repayment. Governments saw their Jjusinesses prospered. 49). the ratio of ou tstan ding debt to grOss national pr uct (GNP) increased from 16 to 56 percent in 1985. Roodman (1988:41. it has been documented that development alliance constituencies. the <>? drastic reduction of public spending including food subsidies). Coupled with drastic cuts in socia! services. the rescheduling conditions brought dnunatic adJU6t­ 01 In particular. from 1. Mexico was exporting to the United States importing from that country $1. they reversed the path of the development project. prices. food subsidies for basic foods such as tortillas. primarily because the Mexican government effectively implemented the austere measures the lMF demanded in return for debt rescheduling.134 Prom National Development to Globalization Demise of the Third World 135 The Mexican bailout became a model for other bailout programs. In Zambia. 'Fil!. coffee for 89 percent of Burundi's eXport earnings and 64 percent of Ethiopia's. In Mexico.5 billion in more than $2 billion worth of fresh fruits. Thailand. 10 million people could not gain access to the health system. These more expensive and red uced the government's role in subsidizing food �laples . currency (especially on social programsl • export devaluation (to inflate prices of imports and reduce indebted country'. and Zambia were using more than 100 percent of their export eam­ Africa. and beef but also strictures made dependency on urban areas and lower and upper classes:'" Mexico assumed the role of a 1981-1987. the severity of the debt burden meant that Tanzania. and cocoa for . an African coffee exporter had to produce 30 percent more coffee to pay for African economies were particularly vulnerable to the fall in commodity pnces during the 1980s: Copper accounted for 83 percent of Zambia's export earnings and 43 percent of Zaire's. beans. By 1990. bread.1 in 1985-1988. and reduction of wages to attra ct foreign investors and reduce export prtces. As in Mexico.n. particu­ broad development alliances crumble as they could no longer afford to subsidize urban constihJencies." But if the debt regime was a politicized method of debt collection. While some overty rates clim�. used their political power to shift repayment costs onto the work­ drated milk were eliminated. George (2000). Reversing the Development Project As countries adopted the debt regime rules and restructured their economies." ing growth rates pl ummeted. as well as between those of rural and new agricultural country (NAC). the debt Africa economic growth. ments in economic ond. With falling commodity prices. the red uction in manufactur­ ing led to further deteriora tion of living standards. managers pushed for export intensification via "comparative advan· orld Bank's 1989 report on sub-Saharan tage"-as we saw in the W above. how emerging project of globalization? Sources: Helle. noted in 1989. a situa tion that COn­ tributed to the "epidemiological polarization" among social classes and regions-such as the difference between the infant mortaJity rates of northern and southern Mexico. Turkey). (2001:34-35). and 17 million lived in extreme poverty. social classes-those dependent on wages and _ ubsidies." Meanwhile. By 1986.

which are animated by grievances over sta te policies of economic liberalization implemented in response to the debt crisis and market reforms urged by international agencies. urban uprisings protested the auster­ ity measures of their governments. UNICEF and the lission for Africa reported that adjustment programs were for UN C. as skilled Africans migrated in droves. School enrollments declined." In effect. Poland. in Tanzania. and riots. targeting poliCies that eroded urban dwellers' social contract with the development state." CASE STUDY The IMF Food Riots: Citizens versus Structural Adjustment The so-called "IMF riots" swept across the former Second and Third Worlds. and Attica. Ghana. all the "development" indicators. Latin America. Morocco. And since com is a crop controlled by men. some 146 riots occurred in 39 of the approximately 80 debtor countries. In Zambia.. In e Iitte 1980s. average per capita income declined by 10 percent. and Sudan." one imported tractor and then produce more coffee to pay for the oil to IMF/World Bank adjustment policies in Africa reduced food subsidies leading to urban demonstrahons and riots and public services. the price of cornmeal-a staple-rose 120 percent in the mid-1980s foBowing adjustment. Between 1980 and 1986. nutritional. for example. These large-scale. including infant mortality.. and Hungary. Yugoslayja. Zambia. with the rioters often breaking into food banks to help themselves. Egypt. and educational level tens oLmillions of children in Asia. often coordinated.Bank d�t ptograms m sui)-saMfan Africa were Iirgely am . Walton and Seddon define these austerity protests as "large-scale collective actions including political demonstra­ tions. general s es. took a downturn under the impact of adjustment policies. a cash crop grown by women. largely the cause of reduced health. that World . and unemployment almost tripled." trilj n.Demise of the Third World 137 run it. Tunisia. including Romania.reported Jn 1993 lot fi!Cluctions in public ealffi spenaing s nsib 10 �t ccline in primary SC 001 eruollment. Collapsing social entitlements included a range of subsidized services necessary to members of hyper-urbanized .ese riots contested the unequal distribution of the means of livelihood. Between 1976 and 1992. expressing with them the demise of the development project. they expanded cultivation of com at the expense of peanuts.

is estI­ terms of trade and debt rescheduling. The Asian states were rela tively immune was half that of decade' because the ratio of their debt service to exports Global governance embraces the whole world. in allowing foreign investment to shift resources into export production. [f we combine per capita GOP figures WIth changes � • � econcapita income rose. The welfarist conception of the public arose in the First World as states replaced communities. World of the public household. Kflgarlitsky (1995:217). and goods. which signaled the destabilization of traditional the Latin American countries during the 19705. At the same time. the debt crisis expanded the reach sovereignty. Beckman (1992:97). From 1978 to 1992. n fact. especially countries in sub-Saharan Africa.collective political ground as debt management eroded nation. to which we now turn. several zones. This policy may affect the flow of money. including what some efer to as the "Fourth World"-impoverished regions. The society. it appears to be putting Its national financial house in order. average per capita income and 30 percent in Africa mated to have fallen 15 percent in Latin America per during the 1980s. and it fractured into Global Governance Global governance involves the adoption by nation-states of policies and rules that favor global circuits of money capital. Structural adjustment austerity reverses this pol­ economic developm icy. back considerably. more than 70 countries of the former Third World undertook 566 stabilization and structural adjustment programs imposed by the IMF and the World Bank to control their debt. The project. occurring across a world experiencing the hollowing house­ national economic project.. by contrast. and global bankers. not just the formerly colonial countries. Bjorn Beckman observed that the logic adjustment program "is to further weaken the motivation of the structural into the the state to respond to the popular demands that have been built ial state formation. in some cases: iden­ tify the project of globalization as the driving force behind the shrinkIng !MF riots symboli2ed the link made by protestors between !MF of conditions and state shrinking. It continued nineteenth centuries. G-7 political elites.'" . leadlng to the collapse of the Soviet bloc in the late 19805." All this restructuring did not necessarily resolve the debt crisis. At the same time. executives of transnational corporations. it shapes nahonal strategies for repositioning producers in the global market. for the most part. t world economic order: nlon to lose. The debt crisis exacerbated the demise of the Third World. Indebted states. Bank). food markets during the transition from customary to market in the eighteenth and occurred during the era of European state building classical food riot. benefiting. Poland's massive d�bt and subsequent austerity programs had much to do with destabilizing it and the perimete r of the Second World. These states were more in step with the global the most rapld omy. But in South and East Asian countries. Indeed. beginning with Britain in the 19705. wheo a state gives priority to export production Over production of domestic goods to repay debt. Austerity protests seek to restore lost social rights within the national food riot signals a new of global governance. IMF debt-rescheduling measures were com­ mon in the First and Second W orlds. adopted by countries (with variation).138 From National Development to Globalization Demise of 0. the contemporary out of the transition. By contrast. implemented certain policy changes and restructuring of economic Sources: Wnlton atld Seddotl (1994). the policies and rules stem from the global managers-officials of the multilateral institutions (IMF.from the oil boom in the Middle E�st.'" Besides their geopolitical ad\!3ntage. renut . For example. g. they bear witness to and. The conditions laid down during the debt regime initiated this form of surrogate global government. housing. education. including food. the Much has been written about the "lost decade" of the 1980s for meaning that the debt crisis set them poorer regions of the world economy. While . should we understan material protests about the withdrawal of resources or them simply as also as cultural protests about "voice" in state--society relations? priOrities to reestablish creditworthiness in the eyes of the global financial community. health care. but it also attaches that country's future to the global economy­ for example. and others." process of postcolon d When citizens organize such large-scale riots. the debtor countries collectively entered the 1 9905 with 61 percent more debt than they had held in 1982. environments.owing market. Third World 139 transportation. they were less vulnerable to credit contraction in the new . to which they exported labor recelvmg lucrative � to the tances in tum. Global governance is not simply an external force. This con­ hold of national ception also shaped Second and Third World state policies ent.

the proportion of Wo rld Bank SALs demanding privatization rose from 13 to 59 percent. Debt managers dem anded a shrinking of stat es 01 the former Third World. private capital and an export boom in manufactured goo ds and processed fOods Was under way. especi y their m pome-public rl mHo 0 loan and investment capital Into the Iormer If laced by an outfluw in the lorm of debt repayment (see Figure 4.ur . hina. the repayment 0f which now fell on the shoulders Of ater amounts of their wealth to global agencies.".ugh red uction in soclal"Spending-. Under the new monet arist dOctrine in the 1980s. the direction 01 ca�ital flowS reve t . As a result. p. As a consequence of groWIn g debt. Hliman Figure 4. Public expenditure fell.. 1980s exceeded $400 billi on. . the average number of privatizatio ns in this region of the world expanded tenfold across the dec ade. . . --. privatization revived the principle of freedom of .140 From National Development to Globalization Positive transfers to Third World I :s � -" 2- 8 � -10 +----="-/"'stt -20 t.�� �:�e � . . Keyneslan (state interventionist) poliCies had stea J � . this trend wa s extended south. d . . . l with theU' otizens..» f same time. the social contract that development states . ::.vlIS . the debt regime transfo Conditions of rmed the development Auste rity measures JOwere d wages to encour­ age foreign inv estment..on accomplished two fa 'cal changes: • Demise o f the Third W orld 141 . . unung point w. Argentina. banks earn profits on the ed vast order of 40 percen t per annum on Third World investments alone " For eign investment in the Third World resumed a nd 1992. more than 80 cou ntries had privatized almost 7. governments sold If Elie uhlic companies that had baUooned in the 1970s. (net) extraction 01 financial resources from the Third World d urmg .2 Net Transfers of long-Tenn . and Thailand) " The restruc South was tured global apparently now qui te profitable lor pri vate investment: Wages were low. ' ��� : • . T reschedule their deb o t. many countries lound themselves . 64. electricity or telephones . in addition to surrend ering ruLUI 1997. = c The banks wrote off some debt. From 1986 to 199 2.. the stock 01 interna tional bank lending rose from 4 to 44 per cent of the GDP 01 the countries of the Organiz ation for Economic Cooper ation and Developm ent .3<I. and i t extended the reach l of foreign o'WT\ership of assets in the former Third W orld -precisely thecondition that governments ha tried a to overcome .u the In that year.-t: -E2I : 1980 1981 1982 1983 1984 1983 1986 1987 1988 1989 1990 Source: UN.000 public e nte ? prises-mostly public services such as water . ' was . � Challenging the Development State me d bY extension.t0 Third World States 1 a . as lenders of last resort. Ibereby pIivileging the COrp Ofllf<!"Sector.2 ) The the rep .'" '7 Although there is no dou bt that development stat e elites had pursueQ excessive pUblic fina ncing ril1lltizat. maSSIve ban k debt-had debt. and by 1992. The deb t regime directly chaUen ged the development state..:. eroded through the 197 0s in the First World as the ideology of econom ic liberalism spread its messag e of giving the marke t a free rein. but ey were p I debt loss by the First World govemments' wh:�:':! bankers had n d nts) to sta I a reed in 1974 (with the Bank of Internation b!hind conunercial bank loans. " the goyemments themselves.. ' rocedures .!.obotbJlv. it reduced public capacity in dey lopmental plan ning and impJ mentati on.in the 1970s. under greater SC "-y by global managers. of the debt regime eroded national econonuc Between 1980 and 199 2. between 1989 increaSing from $29 bill ion to $40 billion (esp ecially in Mexico." Rather than lOS ing the money they had loaned in such excessi ve amounts. Through a case-by-c ase adjustment. so did wage levels as organized labor lost ground when firms moved offshore and /or cheaper imports from the NICs flooded domestic markets..:... governments we re not competing in the It!arkets.anct otJuough the�va­ tiza on 0 tate enterprise s. Development Report �4. Ma C laysia.

export expansion often d." Regardin g gov­ ernment concessions to attract the TNCs. Finally. restriction of imports.. of the global forces strengthened at the expense of nation al eCOnOmies. The case study of the Dominican Republic offers a the . . Under pressure from the lMF. In addition. it has been a "sugar republic. Lowered wages reduced local pur· chasing power. Laura Raynolds observes that "most of the roughly 2. social programs that redis­ mismanagement from the North to the South. . . in the case study about t�e world parallel example of the dlallenge to state developmentalism under conditions of the debt regime. These workers. Beef products were the most agro-industrial export. have no job security and are paid less than even the subminimum wage. vegetables and horticultural crops such as peppers... and avocados. undermining a national crop and creating greater reliance on rice imports. but the mecha­ nisms of the debt regime insti tutionalized the power and authority of . can this new form of neoliberal develop­ ment � a policy to continue colonial trade and economic patterns developed dunng post-co!onial period. but wltich the Northern powers want to continue in the Each measure either undennined the coherence or commercialized the sovereignty of national economies. Nontraditional exports included tropical root crops such be equitabl � and sustainable? Sourees: Rnynolds (1994: 218. 3. she adds that "these conces­ sions increase the likelihood that production will relocate if the state does not maintain a satisfactory level of subsidization . and from the Soulhem eli tes tributed some wealth were undermined in the rush to subsidize firms in the nontraditional agricultural sector.. Privatization of pubhc enterprISeS joint ventures with private firms and lay plans for production pnonties.142 From National Development to Globalization Demise of the Third World The adoption of 143 enterprise. director of the Third World Network. Rice. the goverrunent leased old sugar plantation lands to transnational corporations.splaced local steer" in Chapter reduced state capacity. and tropical fruits such as melons. green beans. 231-32). Credit for these social programs dried up fol­ lowing structural adjustment. Rnynolds . Wage earners had to tighten their belts. views structural adjustment as . these primary conunodity exports to total export earnmgs feU from 58 In the 1980s. domestic food production depended on state support./ 01. many of whom are women. the read.. mic activity was embedded more deep ly in global enterprise. exports. the contn'b ution of to 33 percent..59 the colonial period. Structural adjustment is al this broad agricultural restructuring involved policy reversals that removed government supports for basic food production. CASE STUDY T urning the Dominican Republic Inside Out? Ever since the Dominican Republic achieved independence from Spain in the nineteenth century. With plantations elsewhere-in Hawaii.000 workers in the new pineapple plantations are casual day laborers who are unprotected by national labor legislation.s. They were no longer in a pOSition to en er .a mechanism to shift the burden of economic mismanagemen t and financial to the Southern couununities and people. for the produc­ tion of pineapples.�to � rather. for example. As in most countries. and export expansion sustained the flow of products to the wealthier zones of the global economy. Thailand. was "liberalized" in 1988. were profitable). as a result. Guatemala. and tobacco." If governments expand agro-ind ustrial production to improve their par­ tiCipation in the world market. This strategy fit with the 1980s with an export-substitution sfrateg1 to generate new export revenues to ) u. (1993:1111) .. Malaysia. the goverrunent responded service its substantial foreign debt.. This ou tcome was not unique to the 1980s As econo pineapples. heavily subsidized for low prices. the Philippines." with secondary exports of coffee. subsidized credit and technical assistance for small producers. cocoa.. Caribbean Basin Initiative (CBI) to promote foreign investment m agro­ yams and taro. such as Chiquita and Dole. the market for local goods contracted. private firms appropriated foanerly public funct10ns (those that ��oduc­ tion systems-as we saw. Martin Khor. and eggplants.. and Honduras-these transnationals are able to negotiate favorable conditions from host governments. and stabilization of prices for the poorer classes. Meanwhile. with the result that more than 50 percent of the Dominican household rood basket was now imported. toma­ toes. The Dominican state has forfeited direct control over critical national land resources and rural labor forces. . . Labor unions have either been crushed outright or co-opted by the combined forces of the state and the transnational corporations.

.-• a SocIII s.:eII agriculture. The state doned its husbanding of the national agricultural secto r. banks. Mexico experienced a deca de of uberal refonns man­ dated by the glob al managers and pursued by the government to' maintam its cred' Itw orthiness-a dress rehearsal for NAFTA. Thinua a fllm" (g point in the story o deuelupmeJI'.r-. I . and for whom.. and cutbacks in the agric. education). � . and community services. Throughout the Bretton Woods era. Note: Social Services includes health. World Droelopmenl Reporl. especially the poorer classes These res. it made to adjust the short-term balance of payments. applying conditions to the m n.. of states and societies. In 1991.'" But this in!JUlenc:e dj tl8ll�� =. During the debt regime.:sented in the World Bank's 1981 g) report. shilting nCtal support from camp esinos to agro·export production.u Restructuring States and Societies changes in power relations: ..7 . Perhaps most dramatic example of state restructuring in recent years is that Between 1980 and 1991. the goal . Giving the market free rein is arguably a euphemism determining what should be produced.• financial signals rather than citizen scrutiny. Jnj ' �alIy� as p. t e majority of the citizenry. education. housing. often decide how states should agendes to adntinister its projects. and reorganization is unrepresentative. priva tized state­ oWned monopolies.." This power shift removes resources from a� that support and regulate economic and sodal sectors affectlnt are shifted to the agencies more direcUy connected to global enteI]prilllll Global economic criteria override national social criteria.c.. "soWld" public investment. 1998-1999. . asures.. ���: . � . ". " . and elim inated price guarantees on com -a drastic step.rvi.3 Government Spending on Foreign (Selected Countries.6J Structur al adjustment �a. involved merely financial stabilization m. Mexico negotiated 13 SALs with the Bank and 6 agreements with the IMF The Bank proposed an agl'icuJtun . These were the cond itions of the loan. LI1Ii .OU� Mexico. tization of rural parastatal agencies.ultun ministry. responding to t!! . Internalizing global gove�ance involves two significant (and related) 'U • Oeot tlU<eorI P«)'n** . . structural adjustment policies purs ued by rnultilateral agencies 11\ Afnca reveal a telling rethinkin g of the state s m development." theln another part of the world. firms) a stronger hand Chapter 2 reported that the World Bank routinely establishes local � In Figure 4. this practice blossomed Wlder the pretext of shaking markets loose from government regulation. 1995) Deb t and Social Services IMF shaped national fiscal management. conduct their economic affairs. f . Global governance is typically institutionalized through the ad � tration of adjustment programs. liberalization of trade and domeS1l food prices.� � debt rescheduling conditions actively reorganize the structure and priorities . Rural social serv ices were subordinated to agro-indu strial priOrities. Sow'ce: World Bank.tlili\. !" -' ::I " by contrast. of shrinking the state was justified as a way to Irrtprove effic iency and redu ce urban bias. as global bureaucrats. J"es ructure natiofilil economies and redistabute �e latter involves privileging th� central b� and d finance ministries over j>rogram-onented muustrles (SOCIal <p.the sta . a follo w-up sectoral adjustment loan further liberalized food importing. SAL in 1986 to assist in the elimina tion of tariffs on imported food.. social security. where. offering finan dal assistance to poor rural producer s. allowing global actors (bureaucrats.144 From National Development to Globalization Demise of the Third World 145 global governance within nation-states' very organization and policy repertoire.. welfare. Deterior ating social conctitions forced the Bank to subSidize national Pronasol and Proc ampo programs.

and "hollow" development financing-such as Zaire President Mobutu's lavish global-set lifestyle and Ivory Coast President the Vatican. Felix Houphouet-Boigny's construction in his Julions propose home village of a larger-than-the-original replica of St. Of course. within the report revealed a shift in Bank lending practices from providing assis­ tance for development concerns to tying aid to "comprehensive policy reform."65 The W orld Bank's premise for the policy shift was that development states were overbureaucratic and inefficient. In the World Bank's major report of 1989 on sub-Saharan Africa. which deepened economic d. � . T anzanians intensified their income-gen erating activities off the books"-involvin g crop sales on parallel m arkets in the agricul­ tural sector. 'concerned with planning. By providing alternatives to the state's dunlrush U\g resource base. primarily operated by women. th d im osed by the Growth: A Long Tenn Perspective Study. The n other words. ."" ' \Sb This strategy is actually a way of remaking states. This new phase of Bank . Peter's basilica in Bank substitute growing external control of these countries in the name 01 financial orthodoxy. r :e. administration of Bank projects gives greatest weight to the input of nica l experts in national planning. power moved from the development coalitions (urban the financial group.mewhat softened by the fact that more than 90 perc nt of household inco me was coming from informal businesses.rces. and a social ethic derived from the traditional African family. and the World One observer Jtowards those who expect to gain from the policy reforms encouraged by the institutions and/or those who are in any case more towards such changes. carpen­ try.'" In its 1989 report titled Sub-Sa/wran A frica from Crisis to Sustainabl. . and wuespon­ sive to their citizenry. the Bank advanced the idea of "political conditionality. ." nus is a sophisticated way of con­ structing political coalitions within the recipient state that embrace ec0nomic reforms proposed by the multilateral agencies " noted. corruption. . Between 1974 and 1988.146 From National Development to Globalization Demise of the Third World 147 programs directly challenged the political coalitions and goals of the national development state. At the same time. it reinterpreted "shrinking" the state to mean a reorganization of state administration to encourage populist initiatives. some of these observations are credible. or tailoring. child ren and the elderly. ht have overwhelmed the state In the end. so that the state. SAPs strengthened finance ministries in the policymaking process. schoo lchildren absenteeism so that children could work for fanu\y U\co. Resistance takes both fOffi\al and infOffi \al paths. .. collective labor. -1<Ie. As Tripp remaIks auster ity "was :". The state accountability to its citizens. as illustrated in the Tanzanian case study." "'frican countries. whereby .. supplementary tutorials by school teachers." It proposed "policy dialogue" with recipient states. While public-sector mana gers and the mass party organizations �pposed structural adjustment. leading to "consensus forming. on the other. who lose input into their own ensls at the tum of the 1980s. with an already weakened capacity to extract resou. moonIghting physicians. its inlple­ mentation varies from country to countr y. a country founded in President Nyrere's vision of a benevolent state anchored in rural villages practicing an Africa n socialism of shared prop­ erty. whid\ was most CASE STUDY Tanzanian Gvil Society Absorbs Structural Adjustment While structural adjustment involves standa rd prescriptions. sideline incom es for wage workers such as baking. depending on government capacity and the level of social and political resista nce from the citizenry.v less. . there are many exam.stress. Mari Tripp shows that Tanzania experienced deepening economic �3 . and so forth. Political democratiza­ tion may pe one outcome of urban grassroots resistance to their govern­ ment's betrayal of the development allianc e's social pact in inlplementing austenty measures. urban dwellers in general were surpris­ mgly quiescent. on one hand. through "u ituttiOl1 Bank in particular. Another outcome may involve retreating to the " informal economy" as a survival strategy. agriculture. TItis is the case in Tanzania. initiated a policy of economic liberaliza­ hon prior to a 1986 agreement with the IMF. deepens by organizing coalitions in the state that are committed to redefinition of the government's economic priorities. pIes of authoritarian government. "It has become an explicit target of the institutions. education) One response is to withdraw into a "shadow" economy and society. country's ability to obtain international credit. ' these strategies diverted demands that otherw lse nug ' .. to shift the balance of power within building " It continues the practice discussed in Chapter 2. little was demanded of a state that had placed itself at the cente r of the nation's A�i. with real wages falling b y percent.

Lng a pDwerful trusteeship role in the debtor natiDns in the 1980s.! World regrouped to pressure the First W orld to reform the architecture of the internatiDnal economy. The defeat of this politic al initiative dovetailed with the economic differentiation amon g ThIrd World countries. especially Latin America and sub-S aharan Airica. the debt burde n is borne disproportionately (1997:130-32). When creelit dried up in the 19805.lI�t'!. One was the further polarization of wealth and grDwth rates within the Third World . the debt regime refDrmulated the terms of economic manage­ ment. polincs of contauunent. sustainable cDnceptiDn . whereby Weste rn intervention and military .of an alternative. U. as Third Worl d states SDUght to equal the success of the Cs.for-develop ment programs and investment by the . debt repay ment schemes versed both aid. PDlitically.'" Furthermore. Public investments comp lemented and underwrote private enter .of the . The rising tide was lifting some regtons and swampmg others.offer us a glimpse .S. ""snanonals." cDnditions for reform and financial assistance. Governments and business elites in the former Thud World countries collaborated in this enterprise. Offshore money markets distributed pnv te capital to gove rnments as IDans. the East Asian share of ThIrd World real incomes rose from 22 to 33 percent while all other regions had lower shares. used for patronage. some of which The demise of the Third World as a political bloc had political and economic . AccordLng to the World Bank." except that trustees are accountable to the bankruptcy CDurt.of global regulatDry mecha­ . with the lending institutions adopt. Under these conditions. and transnational � corporations inves ted in export production." As the NAM lost influence. lending support to the idea that global rule without law is In sum." c. The countries of the ThIrd World. These conditions imposed standard rather than locally tailored remedies on indebted states.sue common mterests because some were experiencing a level of pros­ r penty so much greater than that of others. The other trend was the consolidation of the organIza­ honai features of the global econo my. often for the same reasons they had promoted development financing in previous decades: They lin power within states and from states in the former Third WOlla to glooaI agena World Bank and IMF programs .n Two trends were emerging. were no longer able to identify and pu . reI substituted for a true multilateral management of the debt crisis. Divergence of grDwth patterns in the Third World intensified through the 1980s." ODes this kind . now the principal multilateral agency invDlved in global the WDrld develDpment financing. its subordination came about thrDugh the .origins. 13). after a loan is approved.of develDpment? SOl/rees: Rist by the poor.71 Despite the new emphasis on human rights and democratization as lMF and the Bank stabilize and make long-term loans to a debtDr. Global financial organization match ed global production systems mergmg via ThIrd World expor t strategies. erful underwriters.of society's weliare. CDrpora­ bvious. 11tis procedure cDmprDmises pisms that may override national pDlicymaking. which had stood together as the Group of 77. ne political aSI'mlneltrr1L insti tu tionalized. And when the assume "a governance role that may best be likened to that of a trustee in The lMF and the Bank remain accDuntable to nD one other than their pDW­ tions and citizens are given access to economic-and politicaJ­ 1 intelligence reports prepared by the Bank. has played a definite gDverning role41t:' legal and institutiDnal cfiange through its lending process. national sDvereignty and illustrates the reach .original sDcial cDntract in the develDpment state and . ­ pnse.of self-Drganizing activity represent the realizatiDn . A frenzy of devel opment pro­ ts ensued.of the debt regime has been an expanding "trustee­ ship" role fDr the multilateral agencies. the World Bank remains unaccountable to the citizenry in developing countries.148 From National Development to Globalization Demise of the Third World 149 develDpment agenda and had established itself as the guarantDr . alliances secured client reganes Ln strategic world regions.t� 1989 report. the Thin. where income share fell by 6 and 5 percentage points. Meanwhile. they bankruptcy. respec tively. Tripp (1997:3-6. One cDnsequence . The defeat of the New International Economic Onder initia tive was a turning point in Third World pohtlCs. Democracy was less unportant than showcasing develDpment favori ng a free enterprise model and "economic openness.of adjustment well placed to benefit from infusions of foreign capital. Debt reschedulmg was conditioned on the privatization of : � � . it now assertS that evaluating governance in debtDr countries is within its jurisdiction.

Development states twned inside out. And the rescheduling process concentrated financial power in the hands of the multilateral agencies. PART III The Globalization Project (I 980s. New institutional mechanisms of global governance emerged as the multilateral agencies initiated the restructuring of policy priorities and administrations in these states. which we discuss in Chapter 5. as weU as erosion of the social contract. In short.150 From National Development to Globalization state agencies and projects. the debt crisis was a rehearsal for the globalization project. and they gathered ideological force in the growing faith in the authority of the market.) .

. Why not just "globalization" (without the project)? Isn't globalization obvious and here to stay? It is tempting to think of global­ ization as inevitable. ers. Without the WTO. ethnic) responsible for an array of social exclusion and conflict. Ruggiero went on to say. money. progress in resolving T Development. . accepted as real. such l Trade Organization (WTO). This sec­ tion of the book seeks to understand these contradictory happenings. the devel­ opment manUe has been assumed by powerful corporate players in the as world market. the director-general of the WIO articulated the vision of the globalization project: the implementation of the rule of the market via the restructuring of poliCies and standards across the nation-state system. and conflict.Implementing Globalization as a Project 153 rank with the indushial revolution in historical significance. Markets are nO more natural than nations-they have to be constructed. . . As we saw in the previous chapter. The Cold War is over. Renato Ruggie expressed this when he observed in 2000. . AlongSide of them are the multilateral institutions. . and reproduced. To call it a project emphasizes its political dimensions. being com­ promised by a combination of colonial legacies in dependence on cash cropping. once a public project. And so. the world order is marked by War. de velopmenta l. We hear a lot about the free market. protectionism. health. As we have seen. Even more significant is the rise 5 Implementing Globalization as a Project taking place against the backd rop of globalization-th� linking together of countri�s at different levels of development by technology. we will go back to a world of national barri­ coherent global architecture. unequal relationships in the i ternational economy. The founding director·general of the WTO. to overcome the limits of the development project. Here globalization is considered as a political interven­ tion. . and firms in the service of efficient allocation global resources. More than ever before. . that seek to govern this new globa the World ro. and idt!as. . Btlt does this axiom hold. and it must be driven by elected leaders . . but to build a poli tical cons tituency for global­ ability not just to build a Thus. Trade (two-thirds of which is controlled by transnational corporations [TNes]) was to be privileged as the motor of development. then coordination has to come from the cha Uenge of the new century wiU hinge on OUI the top. global project. . until we notice that it only includes he globalization project succeeded the development project-not because development is dead but because its coordinates changed. terror. project. information. as well as by economics. and labor stan­ and iss ues-from investment and com­ comprehensive international agenda . The gentline ideals of internationallsm stem from the view that trade brings peace. All tltis is a res ul t of the shift to freer markets and open tTade----an event that could of the developing world as a major power in the international economy as II is a new world . the blueprint had mixed success. The development project had offered a blueprint for aU nations. [f we want rea l coherence in global pol icy m a ki ng and a pelition policy to with a broad array of other policies environmenta l. economic nationalism came to be l viewed as limiting development because it obstructed the transnationa of mobility of goods. corruption of the development state by military aid and despotic rule. and various forms of fundamentalism (economic. but this is because "freeing" markets is a political act. has been redefined as a private. or as destiny. linking foreign aid and lechnology transfer to state-managed industrialization programs. economic na tionalism. and n debt and structural adjustment that punctured the illusion of upward mObility for much of the Third World. After two decades of trade liberalization. . To be more explicit. and what kind of trade relationships do we mean? one-fifth of the world's population as beneficiaries. religiOUS.' ization . trade and the rules of the trading system in tersect dards. the future of development lay with the world market. with national sovereignty in decline. linked by the rules of neoclassical economic discourse.

the definition of development was extended to include a policy of broad liberaliwtioll-in particular. But through free markets they've soared ahead of centralized economies. this means SIICCess/. parallel attempt to build a free market global consensus-focusing on orld) to breaking down the resistance of the Soviet empire (the Second W market capitalism. govern­ ments restructured around the goals of debt rescheduling. fair the Globalization Project Incorp orating the Second World into : The restructuring of the Second World marked its demise. . bioregions.g. and trade. 111e globalization project did not begin on any particular date. It was backed with the financial coercion institutionalized during the management of the debt crisis by the International Monetary Fund (IMF) and the World Bank. Officially. . and to institutions of global governance such as the WTO. Meanwhile. the Reagan administration the Asian NICs to open their markets. a consensus emerged. Global man­ omy."' While this was historically inaccurate (the newly industrialized countries [NICs] com­ bined strong states with protectionism). Among these political and economic elites.g. with the cold ar ending in 1989. en­ they manage their portion of the world market accordmg to effieency in citizenship and teria. can be repeated a hundred times in a hundred nations. as it could only be ahzed tn a unilateral. ) implementing Globalization as a Project 155 The debt regime imposed new disciplines on 11tird World states­ disciplines representing a fundamental shift in the world order.�d mo . the globalization project was born. trade netlNorks. As we shall see. nevertheless this ideal served to guide the structural adjustment measures imposed on debtor nations by the debt managers in the 1980s. During the 1980s. Thus. of development is now yielding to alternative arenas: communities.. European Union [EU]. whose interest in privileging corporate rights inform the restructuring of national institu­ tions to facilitate market rule). Many countries in East Asia and the Pacific have few resources other than the enterprise of their own people. expressed in a growing array of alternatives and articulated by mush­ rooming resistance movements and by disaffected members of the se­ al called Washington Consensus. more . In fact. North American Free Trade Agreement [NAFTA]. rather than a bipolar. Here we focus on the institution new dimensions and tensions of the globalization project to illustrate the global politics of development. National governments are less and less development manage s. This arena nial world. Oxfam. This set the stage for globalization. And the initiative is passing from national governments to nongovernmental organizations (NGOs) committed to special development concerns at community or international levels (e. Public Citizen. redefining development in the new terms of tile world market.. President agement of capitalism emerged privately in the 1970s (in the form of the G-7) and publicly in the 1980s when the Bretton Woods institutions made expLicit claims about managing a global economy. . world order. privatization of public functions and the application of market Reagan reiterated this theme in his 1985 State of the Union address: "America's economic success . Friends of the Earth. to free trade agreements (e. The global managers include the Bretton Woods institutions. the globalization project rests on unstable foundations. The shift was sufficiently pro­ found to spawn a new discourse of "globalization" from the mid-1980s on. the United States led a turned the free market ideal against the economic nationalism of Japan and principles to the administration of wages. Modemity is less a national property expressed : r: nnd flexible international corporate coalitions.. prices. global commodity chams. but it signifies a new way of thinking about development (represented in the timeline introducing this book). macroreglOns. Grameen Bank). This was central to the emerging globalization project. CASE STUpy The Globalization Project postcolo­ 111e development project dovetailed with nation building in the political arena: the national territory. The export orientation of tile East Asian NICs thus was idealized to legitimize market rule across the world. which coordinated a framework for nationally managed programs of capitalist development. Freedom has come be identified less with membership in the national polity and mone with participation in the global marketplace.. and transna­ tional corporate elites (arguably a global ruling class. globalization is considered a global development strategy­ to mone a global property expressed in consumption. Global governance has its roots in the Bretton Woods and cold war institutions. It had a definite cities. The newly industrializing countries were held up as exemplars of the in World Bank terms.1 participation in the world econ­ new strategy of export-led growth..154 The Globalization Project (1980. Free Trade Agreement for the Americas [FTAAj).

meetings of the World Economic Forum (representing officialdom: state call forth different inter­ populations have higher levels of education and stable population growth South Korean companies outsource garment production to beat quotas on rates. heating fuel. with an explosion of organized crime and AIDS. resource explOitation or ecological sustainability. rather. Eastern European per capita income levels resembled those of the former Third same." Deregulation throughout these once centrally regulated social systems general population at the rising prices." By the early 19905. as were those of Hungary and Brazil. The per capita incomes of Poland and Mexico were about the care. not a natural. often to pay for basic consumer iterns demanded by their increasingly restive civilian populations.ngary. 23). Global elites have reframed development as glob­ nomic rights of the socialist systems. Vladivostock labor cost only 56 cents an hour-and some of and 2 days off a month. Joyce Kolko remarked. corporate or social welfare. and IMF had tendered an austerity plan in Hungary on disappeared. Soviet President Mikhail for membership in the Bretton Woods institutions. transportation. During the 1980s. In far-eastern Russia. to (re)define the bearings and future of states and their civic responsibili­ countries are riven by protectionist coalitions opposing powerful forces led to what is called "Third Worldization. The choices implicit in the globalization project pretations of the purpose of development-whether it is governed by eco­ nomic efficiency or social justice. portend development under globaJization? Sources: Ko/lro !l988:278-96). the former Yugoslavia. We are witnessing a massive tug-of-war across the world between proponents of these various positions. Earlier. No longer identified as a universally national project. Many of these states had started borrowing from Western financial institutions during the 19705. Just 440 miles from Seoul. and Poland were subject to IMF supervision of their economies. in 1982. These subsidies were the foundation of the well-established basic eco­ is a much ally managed growth. Most favoring liberalization. enriching themselves and their relatives as public property was priva­ tized. Romania. symbolized by the annual $2. health phenomenon. apparel imports into the United States under the Multi-Fiber Agreement. and the fined along Western lines as the equality of private opportunity. and workers were now earning piece rates determined not by the work performed (as with a normal union contract) hOUSing. Because Eastern European World. and education. Working (1999:D1. the Gorbachev was formulating. small-scale state enterprises were privatized.156 The Globalization Project (19BOs-) Implementing Globalization as a Project 157 In 1986. where average hourly apparel labor costs were that labor The tug-of-war has Simplified into two camps. The globalization project involves political choices ties. Social equality was being rede­ Governments are on the twin homs of a dilemma: balanCing the needs of citizens affected differentially by exposure to world market competition and their own legitimacy needs--expressed public officials in the Second World had the lock on opportunity. working conditions. "There was growing resentment in the new rich. development has not the condition that centrally planned production be replaced by "market­ responsive" and "financially disciplined" enterprises. If competing in the world market requires policies reducing public expenditure that may lower national standards of employment. they differ from former Third World societies. faUing living standards. Korean employers use Chinese labor to pressure desperate Russian seamstresses and cutters into accepting sweatshop is Chinese! Because Chinese workers are used to 12-hour days resenting a host of alternative movements of resistance against the domi­ nant corporate model). By 1986. Former in the national accounts for corporate investment and export markets (foreign exchange). centered on (world) market principles as the most caught eificient allocation of resources. or centralized political-economic power or participatory economic democracy. Hu. along with reduc­ tions in subsidies of food. twenty-firSI-<:entury development more contested notion. then globalization is a political. of the development project and provide the ingredients of an intensifying .69 in 1998. National governments are necessarily between the pressures of globalization and protection. Does the precipitous decline in Russian living standards. plans for perestroiki1 (restructuring) in exchange The incorporation of Eastern Europe into the project of globalization reveals a deep compromise of citizens' basic needs in the name of the mar­ ket. With the advent of the globalization project. We return to These new frames of reference express the demise of the singular vision managers and the global corporate elite) and the World Social Forum (rep­ this tug-of-war in Chapters 7 and 8. but by the profit rate of the enterprise. Kagnrlitsky !l995). its meaning has changed.

then. With privatization. followed by detention." masterminded by economists trained at the University of Chicago. without the consultation of public opinion or accountability to a congress.. retiring some of the debt and earning the Chilean experiment a reputa­ tion as a miracle.tion Project (19805-) lmplementing Globalization as a Project 159 debate over the approp. General Augusto Pinochet pursued a radical free market reform. involved the dlIWngradillg of the social goals of national development. Social spending continued to fall. Together. torture. A military coup in 1973 eliminated the democratically elected socialist president Salvador Allende. Cathy Schneider observed. Since then.8 percent. and execution of thousands of Chileans as part of an eight-year period of debilitating authoritarian rule. domestic polley. it is important to identify the organizing concept of the globalization project.4 percent to 16. and the peso was seriously devalued.S. perhaps heralding the glob­ alization project. Dismantling of the Development Project The globalization project arose via the dismantling of the development project. and the dependence of the Chilean gross domestic product 19705. and social content of development. goals. liberalization also involved new forms of social inequality.It has trartS­ formed Chile. while that of the poorest half of the population declined from Liberalization and the . and real wages suf­ fered a 20 percent reduction.. to a land of disconnected. TI. foreign investment expanded into strategic sec� tors such as steel. about 40 percent of the 13 million Chilean people were impover­ a world market constructed by transnational banks and firms. U. "You deserve your reputation as an economic mode1 for other countries in the region and in the world. Liberalization. a center of neoclas­ sical economics. President Bush declared in Chile in 1990. a sustained grassroots Chile is perhaps the model case of economic liberalization. CASE STUDY Chile-The Original Model of Economic Liberalization ished in a country once known for its substantial middle class. The share of national income of the richest 10 percent of the people rose from about 3S percent to 46. unemployment levels rose to 20 to 30 percent.e pur­ suit of global efficiency had weakened the domestic fabric of social movement." Chile was known as the most democratic of Latin American nations prior to the assault on its parliamentary and civil institutions by the Pinochet military junta and its economic reforms.. combined with the upgrading of participation in the world market (tariff reduction. the working poor . remarked that privatization was "the greatest diversion of public funds that has occurred in our history. telecommunications. Debt restructuring in the 19805 increased social polarization.8 percent. and multilateral institutions dedicated to a vision of corporate global­ ization. export promotion. both culturally and politically.4 percent in 1990.158 The Globaliz. Your commitment to market-based solutions inspires the hemisphere.iate scale. relaxation of foreign investment rules). As suggested in the following case study of Chile. otherwise known as "shock treatment. centered in the poblaciones (slums) and active from the mid- security and local production. trade protection dwindled. Debtor governments that shrunk the state and implemented other austerity measures were rewarded by the debt man­ agers with credit released in tranches (staggered portions) to ensure their continuing compliance with loan conditions. Chilean pOlitical parties have become centrist and disconnected from the grassroots movement. "The transformation of the economic and political system has had a pro­ found impact On the world view of the typical Chilean. succeeded-through painstaking organization and bloody upris­ ings in the 1980s-in regaining elections in 1988. Deindustrialization set in. 600 of the country's state enterprises were sold.S. At this point. Over the next two decades. apoliti­ cal individuals. informat­ ics." By 1990. Meanwhile. In other words. an export boom occurred. wages were frozen. from a country of active participatory grassroots communities. these policies reformulated development as a global project-implemented through liberalized states incorporated into 20. when Pinochet was defeated. and airlines. Chile was structurally adjusted before structural adjustment became fashionable. Its key strategy of liberalization was first applied to indebted states via the debt regime. Chile recently privatized its health and social security system-again modeling the new "market state. In consequence. (GDP) on lrade grew from 35 percent in 1970 to 57. Allende's minister of mining. Sergio Bitar." In this context. financial deregulation." now informing U.

most dramatically played our in the former Second World countries. where public resources have sold at rock-bottom prices to well-placed new capitalists (usually . as the world market becomes the Wlit of development. a governm ent economic cOnunittee recom­ mended a new strategy to liberalize the economy. the MalaySIan federation. . value and "dirt " por k prod uction Y f or the Singapore consumer to agroexport platforms in nearby indon esia and MalaYSia. Why is it that military rule. Ruled by a paternalistic P«ople's Action Party (PAP) since gainin independence in 1959 from Britain and its 1965 expulSion fro .. to continue its tradit ion of low unem­ ploy ment levels �d social cohesion. The evidence is all a.201). Beging with nin Singapore Airlines. quoted in Chomsky (1994:184). which today. Theoretical justification for the strategy of market opening derives from nineteenth'century English political economist David Ricardo's concept of comparative advantage-that prosperity derives from maximizing advantage in international trade through speciali2ed production reflect­ ing a nation's relative resource endowments.-) Implementing Globalization as a Project 161 disproportionately subsidize the health needs of the 2 million poonest Chileans. Until the 1970s. It is a Wliversal process. in wage erosion. it is known as one of the Pacific Asian" . this represented the new global reach of ne<olil. � eanwhile the PAP's str tegy of using social investments-in nearly Wli­ : � ersaI pubhc housmg.194. In 1985. the Pacific ASian reSlon. Smgapore s pl aruung and skilled labor force must be counted' but hOw should foreign investment feature in the calculus? Sources: Deyo (1991).--_. the rundown of public goods." Its bureaucracies. When countries exchange their most competitive products on the world market. George 0988:131-32). highly dependent on foreign invest­ ment. national and inter­ national economic efficiency results. uruve rsal public health services and educa tion. This was mainly because it was out of step with sodal history since movements of organized labor and an engaged Citizenry demanded social entitlements and protections from the free market. and new forms of social polarization all conditioned the Chilean embrace of the project of globali2ation? $ollrces: Bello (1994:42. Liberali2ation combines domestic restructuring with opening markets. The globaliza­ tion project has foregrounded liberalization's promise of greater economic efficiency.er. . at the height of a local recess ion and the r«organizations under � ' o�parativ advan age" is an attribute of a country's endowments. relegating Keynesian ideas of state economic intervention and public investment to the background. the government began a gradual process to privatize Its substantial publi c sector and to foster local enterprise and high-tech f relgn mvestment. and in pri­ vatization schemes. especially after the Great Depression of the 19305.) This theorem obviously contradicts the development project's ideal of a series of integrated national economies. way in the global economy. most important.round uS ill various guises-in welfare reform/reversal.. Schneider. 44-45. "comparative advantage" represented a minority strand of economic thought. TIle globaJization project came to maturity in the wake of collapse of Soviet communism and the ending of the cold 1990. disregard for human rights. and vocab nal retram mg-allows it to coordinate wage levels � with economic strategtes and. CASE STUDY Mini-Dragon Si ngapore Constru cts Comparative AdvilJltage Singapore is an exceptional city-state. Symbolically. constructs comparative advantage for countries. state officials) and markets have been released from government reltulJa­ tion. arguably.160 The Globalization Project (1980. The recent technologi � cal upgrading in financial ser­ VICes and manufacturing is part of a strate gy to position Singapore as the source of speaali2ed exports (including producer services such as COm­ puter technolOgies) to the fastest growing region of the world economy. Restru cturing also involves relocating lower . ublic e� erprjse� and TNCs� as well as On a corporatist � (developmentalist) pohtical system that silenced political opposition . e NlC status depended on centrali2ed planning between= � disci: _ turned labor unions into agents of the state. Collins and Lear (1996:157. Schneider (1995:3.aJ capitalism or corporate globali2ation. dragons. and pensions have declined (sharpened by the iniormalization of the workforce). as well as developing hlgh-val e and "clean" agrotechnology parks within Singapore. And the theorem did not allow for capital mobility. 59). ��� : � Ufk" (1995). and elaborated a social pline based on Confucian ethics of loyalty. 162).

Seventy-five per cent of Ghanaians depend on wild game to supplement their diet. 20 million households produce coifee. threatens household and nationaJ food security now and in the future. the World Bank's African model of structural adjustment. converting aspen stands into chopsticks at the rate of 7 to 8 million pairs a day' .. :. the world coffee industr y doubled in value to $60 billion-but farmers received half as much as in 1990. timber exports doubled in the 1980s..."'· Between 1990 and 2000.. between 1986 and 1989.i: � 0 m . Stripping the f orest has led to sharp increases in malnutrition and disease.3 cents. habitats. the Mitsubishi Corporation has the largest chopstick factory in the world. reducing Ghana's tropical forest to 25 percent of l! § " its ! � original size' The NGO.-) Beyond liberalization's downward pressure on social righis. timber exports increased from $16 million to $99 million. For example.' c After 70 countries underwent structural adjustment.. Commercial extraction of natural resources has intensified across the world under these conditions.j 0 . home to 10 percent of the world's forests..} '" exports of mining... In the province of British Columbia. cocoa producers expanded their exports by 25 percent. consistent with the doctrine of comparative advantage. in West Africa. the resulling glut of exports produced the lowest commodity prices seen on the world market since the 1930. lower wages. "E . it intensifies exporling. but the overproduction has brought the price of beans to a 3D-year low.. especially in the face of decreased food production.33 on average.." lii 1) 0 -... For a $2. about 1 million hectares of woodland disappear annually to logging.. Chile. while the transna­ tionals (such as Proctor & Gamble.162 The Globalization Project (1980. Oxiam. and resource regeneration. .. reported that deforestation :" . and timber products were accelerated to close the widening gap between cocoa exports and severely declining world prices of cocoa.: 1! J'! :. farmers receive on average 2." � .70 cup of coffee. the food. The NGO. . Philip Morris. • u E '" 3 i. .: . and high rates of deforestation is well known" In Canada. and medicines that they harvest from the forest pro­ vide critical resources. :l. reaching beyond industrial plantations to the logging of natural forests' Chile's export boom overex­ ploited the country's natural reSOurces beyond their ability 10 regenerate! In Ghana..0 v � m � . today.!! � security. named this syndrome the "export-led collapse. fishing. From 1983 to 1988. Across the world. For womet'l. � C t: 0 . -' ' In . only to suffer" 33 percent price fall on the world market... The close correlation between debt.'" '" .. threatening environments..11 "' m 0 0 � .. . export liberalization. � � e . fuel. and Nestle) neceive $1.. Development GAP. and other economic shocks that threaten food 1 .

and reduction of social entitlements-are repeated everywhere. to cOlnn.If>\! The Glob. the contract to build a new port terminal in the Amazon delta. and several African and ing demanded increased exports. therefore. in the case of foresls. Indeed. privatization. as planet. (2) "resource bondage. export reliance often puts regions in the global South at a comparative disadvantage. under comparative advantage.tainal. Short-term efficiencies are sought at the long-term expense of the social contract. sawmill operators. This role is by no means absolute. The flow of credit to debt-stressed nations usuaUy Consensus is achieved to the and efficient. and beans. The question of compliance is cen­ tral. Liberalization substitutes reliance on the world market for self-reliance as the organizing principle of development. It is not surprising. Depletion of the Brazilian Amazon forest has intensified. environments. and catch up with. which entered the twenty-first century the world's largest importer of soy oil. Director-General Renato Ruggiero remarked that . labor forces. ity of natural resources that provide subsistence security to the poor commons") and. All of these norms are viewed as impediments to the market.) Implementing Globalization as a Project 165 domestic resources to finns supplying global markets and delivering revenues to multilateral lenders as debt repayment.. Cargill.lizahon Project (19805.ralization is questioned or resisted. many prepared foods and drinks now substi­ tute high-fructose com syrup for sugar. a $40 billion state-supported project to open Amazon for its timber and farmland." Global Governance In the shifting tensions between development and globalization. impoverishment.ll As a development strategy. extent that governments and citizens accept the legitimacy of neoclassical economic theory: that market rule is neutral • depends on renunciation of national development norms. Exporting to eam foreign exchange involves three dynamics: (1) dllfing the 1990s. the Philippines." The globalization project includes an explicit vision of global order. In theory. the most effective way of guaranteeing compliance is to institutionalize market rule. including pr o­ tection of local producers. private foreign investment became the main source of supp ly of capital to the global South.: govenunent has introduced a deforestation licensing system in the Grosso state. and it requires compliance from the states themselves. For example. As a result. export reliance is problematic. states face a world order in which global institutions have assumed a more pow­ erful governing role. foreign investment concessions. • world sugar market as sugar imports decline." While the development project held out replication as the key to national development.!Ct the huge Mato Grosso soy fields with the insatiable appetite of the looning middle class of China. Ultimately. quite distinct from that of the era of the development project: • In the development project era. this may produce greater productivity but at the cost of considerable and irreversible economic and social marginalization.il. The Br:. intensifying market competition. and speculators expecting to profit from the continuation of Brazil's export boom. the slogan was "Learn from. Thailand. resulting in a collapse of the Brazil. rec:entJy. threaten the well-being of under the Avanca Brasil. the West.re libe. communities. where individual govenunental functions are recomposed as global governance f unctions and enforced through the WTO. cattle ranchers. which is why the globalization project begins with market liber­ alization as the touchstone of effiCiency. especially where primary commodity prices remain low (especially compared to higher value manufactured goods and services)-and The Economw declared in 1999 that commodity prices were at an all-time low for the past century and a half. Scaling back public capacity transformed nation-states into market states concerned wHh improving globally driven economic activity . the slogan is "Find your niche in the global marketplace. but neighboring states of Para and Rondonia remain even more frontier-like in yielding the forest to loggers. at the first ministerial meeting of the WTO in December 1996. producers in Caribbean countries lost markets just at the time when their debt servic­ Contrary to neoclassical theory. environmental stress. meal." Now." and (3) depleting and undermining the sw. does not alter the reality that the mechanisms of specialization-wage cutting. : • the path But specialization in monoculture. as there are two ways of guaranteeing compliance: consensus and coercion. India. growing by more than five times. Export reliance is compounded by bioteclmicaJ substitution. and social entitlements. or the global assembly line. the global agribusiness. and displacement.zili". that Coercio n is n�cessary whe. the project of globalization presents specitlJization to economiC prosperity.

While adjustment is pressed on not hesitate in betraying the soil and sky in which they prospered with Mexican blood. generating a negative "tequila effect" throughout Latin American financial markets. CASE STUDY Mexican Sovereignty Exposed: From Above and Below Mexico's admission into the Organization for Economic Cooperation and Development (OECD) via its participation in NAFTA precipitated Ule January 1. but in the 1980s. owned by the European Central Banks. and free to follow policies that deepen the South's difficulties. which makes all decisions in Mexico. Finally."!5 The priority had shifted to stabilizing global financial relations and open­ ing up southern econom.. Project loans continue into the present. Ongoing management of global The Mexican peso responded by lOSing 30 percent of its value in Decembe r 1994. the uprising unsettled regional financial markets. pro­ vided $5 billion. The economic crisis awoke Mexicans from the sweet and stupifying dream of entry into the first world. and a dozen global ban ks. protecting their interests and imposing their will on the South. as weU as in Europe. The nation of money called the grand gentlemen of power and arrogance to dinner. Germany. Traditionally. the World Bank/lMF partnership in structuraUy adjusting partiCular states is a method of governing and an attempt to resolve the instabitity in a deregulated global money market. "Mexico is sort of a bellweU. the Bank shifted its emphasis from project to policy loans. In reality we were up against great financial capital. rather than funding national projects. and Japan).S. global debt management was firmly institutionalized in the World Bank and the IMF. of their own people. perhaps narrowly. The most powerful counmes in the N orth have become a de/acto board of management for the world economy." Confidence in NAFTA was also at stake. Africa.." Having exposed the question of Mexican sovereignty. In 1983. Presidenl Clinton remarked in 1995. 'Canada also contributed $1 billion. claimed it was a "death sentence for indigenous peoples. Asia. Britain. By the 1990s. Here we examine how global " governance has evolved. the Bank focused on project loans for public infrastructure in 'Third World states. the newly formed South Commission (an organ of U. including Citibank.. As these institutions were ultimately beholden to the so·called Group of 7 (G-7) "northern" powers (the United States.166 The Globalization Project (19805-) Implementing Globalization as a Project 167 f preparing a global investment treaty was similar to "writing the constitution of a single global economy.. added a $3 billion line of credit. especially the structural adjustment loan (SAL). the South Commission's declaration draWS attention to a new dimension in development discourse: the priority given to managing the world economy as a sillgular elltity.e global South) made a provocative declaration in 1990: What is abundantly clear is that the North has used the plight of develop­ ing countries financial relations has become a practical necessity to stabitize economies and open Or "denationalize" them in the process. against speculation and investment. with the North-South power relation.and to have an export orientation. while the Bank for lntemational Settlements in Switzerland. countries in the North with massive payments imbalances are immune from any pressure to adjust. 1994. even the violence.The governments of the South are then left t o face the wrath. and they did to stren gthen its dominance and its influence over the devel­ them. It linked loans to policies that pursued market-oriented economic growth strategies. Italy." The Zapatistas declared. lnternational financiers hastily assembled a finanCial loan package of $18 billion to stabilize the peso.er for the resl of Latin America and developing countries throughout the world. U. "The fundamental philosophy of our institution is to help cOW1tries diversify their exports . the Americas-every where. The Zapatistas suggested that NAFfA was a confidence trick of the global­ ization project: At the end or 1994 the economic farce with which Salinas had deceived the Nation and the intemational economy exploded.ies to accelerated resource extraction. for the sake of preserving the present patterns of operation of the world economy. whose standards of living are being depressed. the IMF was called in to lend both money alld its stamp of approval to restore lI\vestor confidence in the Mexican economy. The United Slates committed $9 billion (and more). Subcomandante Marcos. Zapatista uprising in Chiapas. Canada. . we found that it did not exist. In other wonds. "When we rose up against a national government.16 opment paths of the South. World Bank President Clausen remarked. France. While identifying global governance. Zapatista spokesperson. Oceania. In protest of President Salinas's decision.. The governance mechanisms of today were anticipated in World Bank loan policy changes in the midst of the debt crisis.

Fiji. In fact. they do not favor liberalization. and supply-management policies that restrict the demand for farm inputs such as fertilizer and chemicals. which exposes them directly to volatile world prices. declined 39 ped:ent between 1975 and 1989. working conditions. at a time ip. and social se<:urity) 1948 through 1980. Such regulations constrain the ability of transnationals to profit from expanded trade and access to low-cost pro­ ducers through global sourcing and use of cheap products as a competi­ tive market weapon against high-priced producers. domestic price supports for farm products. Third World countries cheaper exports of steel products. During 1986 to 1994. Corporations produce and sell farm products across the world-they take advantage of seasonal variation and dietary variation and engage in redundant food swaps (see Figure 5. the Philippines. became the target of the Uruguay Round of the General Agreement Trade and Tariffs (GATT).000 firmS-including General Motors. The Uruguay Round was to establish a set new and binding rules concerning free trade." . IndoneSia. U.168 The Globalization Project (1980.s. won the day. in which the First World were skeptical. footwear. and pension funds) are so embedded in national economies (and vice versa) that stabilizing these destabilizing financial relations now dominates national policymaking. and American Express-formed a multinational trade negotiations coalition to lobby GATT member nations. Once fonnulated. General Mills.2). targeting theTIUrd World." The liberalization movement was supported by an activist lobby of "free trader" agro-exporting states. which Global circuits (of debt. electronic products. Continental Grain. Agribusinesses such as CargilL Ralston-Purina. e to national ture because it was central to the Uruguay Round's challeng developmentalism. the question the occupied by the Mexican federal army ever since? What is it about nt over nunonty globalization project that it values foreign investme rights? Sotlrces: Bradsher (1995:D6). Canada. with the rum of liberalizing agriculture and held (banking. as competitive advantage.-) Implementing Globalization as a Project 169 e If the Mexican bailout was to stabilize the global economy and legitimiz remains why Chiapas has been the globalization project. The United States engineered the creation of the GATT in 1948 as alternative to the International Trade Organization (which included sions from the United Nations [UN] Declaration of Hwnan Rights . It was expected that free trade would enhance the fann commodity exports of the Cairns Group and of the United States. 14.. RJR Nabisco. In this way. and cultural products were limited by First World protections. GATT reduced tariff rates on trade in goods by more than 75 percent. Chile. telecommunications). New Zealand. money. and import controls-for their economic viability. Jed the resistance to broadening GATT. Australia. In the 1980s."" The absence of trade rules during the closing y ears of the development project showed in the widespread use of export subsidies. Unless they are corporate farmers. Not surprisingly. Colombia. India and Through GATT. which devalued their agro­ exports and deepened food import dependency. Malaysia. but First World pressure and the promise of open markets. Slarr (2000). the new forms of global governance seek. Brazil. Alternatively. Accordingly. protection of intellectual property rights. especially in sub­ Saharan Africa. and Uruguay. we focus on . In this section. insurance. a GATT ministerial meeting recognized an "urgent need to bring more discipline and predictability to world agricultural trade. Thailand. generating ever larger surpluses to be dwnped On the world market and depressing world agricultural prices. farmers are spatially fixed and depend on national farm policy-input and price subsidies. these "iClJIi­ formed the framework of the WTO. for example. IBM. fann credit. GATT: The Making of a Free Trade Reg ime The debt regime elevated the Bretton Woods institutions to a govel'" nance role. com dwnping forced that country 's grain marketing board to cut domestic producer prices almost in half in 1986 and to reduce its purchase quota from these prOducers. transnational corporations supported liberalization. Hungary. at one and the same time. including agricultural markets. the United States initiated sion and declining industrial leadersh Uruguay Round. risk insur­ ance.' cerning full employment. and ConAgra supported GATT's chal­ lenge to trade barriers. In Zimbabwe. to ensunt open economies and the institutional mechanisms to manage the volatile side effect5-<'videnced in domino-like financial crises. Farm subsi­ dies quadrupled in the United States and doubled in the European Com­ munity in the early 1980s." Agriculture had been excluded from of GATT on the insistence of the United States. called the Cairns Group: Argentina." Many Third World farm sectors were adversely affected by dwnping. trade expansion was del inked from the socinl contract. freedom of investment.

org/lTade/). The push by some developing countries to become more self-sufficient in food may be remin.:t9 In 2()()1. Department of Agriculture. the United States exported 16.720. the United States exported XJ. market liberalization would simply transfer authority from governments to corporate leaders whose activity is guided by the profit m oti v e. 16: far as making the dismantling of farmer support programs a condition for loans.org). Food and Agricultural Organization of the UN (2000 .. a 19705 green power strategy. At its inception. Foreign Agricultural Services (2000.usemb. agro. In that same time period.s.2 The Global Food Swap The u. The goal of food security food secu­ is to provide populations with s ufficient and predictable food supplies. has used the World Bank to back up this policy. www'/.000 whole salmons to the United States and imported 70.) Implementing Globalization as a Project 171 GATT-style liberalization of agricultural trade claims to stabilize commodity markets.ng f90d from the United States.08 million worth of those same products to the United Kingdom. #3: In 2002.. mate.4(}() tons of poultry meat from the Netherlands..04] from Canada. leaders of the trade in primary commodities.687. but it does not guarantee survival of farmers in the global South':) Global firms control roughly three. Lucas (2001). the EU exported agro-exporting vi a the postwar international food regime.375 kg of these same tomatoes to Canada and imported 68. the United St at es this provis ion on the grounds of the superior effiCiency of free www.000 tons of live bovine animals and meat from Argentina.itc. . U. as is the case for Morocco's SUpport for their domestic cereal producers.828.541 kg of shelled walnuts to Turkey and imported 35.000 whole salmons from the United States. #2: In 2002." In the world markets in food: Figure 5. U1e European Union (EU) imported 44. tea. In the food security context.. "With four grain corpor a tions co ntr olling over 80% of world cereals trade ." d ep end s on three political conditi ons : GlobaUy managed food security. m emb er nations to prohibit food exporting in the event of critical short­ ch allenged Uruguay Round.o. complicate how individual states pursue food security.899. Agricultural Secretary John Block remarked. Identifying the governance implications.60 million worth of coffee.l' superiority of U.In 1986. the People's Republic of ChiJ1. . based on the idea of "compar ative (1) trade lib er alization ." enabling price manipulation to secure European &ownenical O r ganization for Development claimed.s. The U. we have also proposed that the permission to restrict or inhibit exports of agricultural food products to relieve critical food shortage be removed from Article Sources: U.042 kg of fresh or chilled tomatoes from Mexico. India exported $51. and spices from the United Kingdom.These countries could save money by importi. Food secwity-the ability to acquire the food you need when you need it-is best provided through a smooth-functiOning world market. Natural endowments and colonial history GATT's Article Xl includ ed food security provisions that permitted ages of foodstuffs. The United Slates also exported 112.S. International Trade Commission (2000.S. #7: In 2002. imported 435. India imported $56. Thai same year.qu arters of all global markets.100 tons of poultry meat to the Netherlands and imported 61.iscent of a bygone era.471 kg of shelled walnuts from Turkey.usis. Note: #1: In 1998.exports. "" Such transfer of authority was implicit in the redefinition of rity. www.s.170 The Globalization Project (] 980s.033 kg of fresh or chilled tomatoes to Mexico and imported 143.000 metric tons of broiler poultry to the United States. however. ad v antage.211 tons of live bovine animals and meat to other countries across the world.se/Agriculture/). has always maintained that self-sufficiency and food security are not one and the same. 31. .s.. #4: In 1999. and a 1985 Farm Bill that drastically cheap­ ened U. Denmark exported 51. going so This global conception of food security st emmed from the institutionalized 874.000 melTic tons of broiler poultry to the United States and exported 438. #5: Between 200 1 and 2002. Britain exported 33.

placing noncorporate farmers at a comparative disadvantage. assumes unprece­ as below."" The WTO has an integrated dispute settlement mecharusm. respectively. "The creation of the World T The singular achievement of the GAlT Uruguay Round was the distorting" measures. The investment. using an of diluting national laws protecting human and environmental health. rather In short. lic health laws. This case "inspired a to nontransparent tribunals located in Geneva.S. labor. like some of its manufactured exports. That is.. complaints through the WTO. The WTO is dedicated to privileging corporate rights to compete internationally. money. health. the WTO has independent juris­ diction like the United Nations. "Governments should interfere in the Conduct of trade as little as possible."" This implies a general challenge historic site of the social contract and democracy. and these include rulings going beyond simply cross-border trade into the realm of "trade-related" issues. suggests. and (3) corporate-managed food circuits. Even so. Member states can lodge every member of the WTO votes to reverse it. efficiency) of an unequal global market anchored in northern agricultural protectiorusm and managed by transnational agribusiness corporations. 1995. the making of a free trade regime reconstructed "food secu­ rity" as a global market function. in 1996. (2) subsidized "breadbaskeY' regions. it has the power to enforce its rul­ ings on member states.g. deny­ domestic laws to bring them in line with its provisions. wound fatally the major unit of community capable of carrying out any policies for the common good.) Implementing Globalization as a Project 173 measures. whose decision holds automatically unless investments in timber cutting to protect a forest. subordinates the sovereignty of the nation-state. This means e setting rules regarding the movement of goods. this is perceived as promoting "recol­ onization""-despite the membership of some southern states such as Malaysia. From the global South."" of the Third World Network.172 The Globalization Projec t (1980s. removing decision making abstract market logic to override individual government policy. the WTO staff are unelected bureaucrats who answer to no constituency other than those corporate entities that benefit from "free trade.g. the WTO can authorize the plaintiff to take unilateral action. establishing such rules to override national governments' capacity to regulale commerce "is to perceived to be distorting trade obligatiOns in one area. framed by the discourse of economic theory. privileging corporate agriculture and ply. and rice exports. the WTO sponsors the diluting of WTO. in combination. they represent a challenge to national democratic governance. petroleum-refining corporations against domestic oil refiners. with 146 voting members (and 26 claimants). If a state is economist Herman Daly warned in 1994. Food secu­ rity would now be "governed" through the market by corporate. such global governance. the WTO is arguably less about trade rule consistency than about weakening member state sovereignty via liberalization. such as curbing through the application of sanctions against another area of economic activity. Peter Sutherland. their domestic staple grain producers are threatened by liberalization. and productiv s that restrict countries from enacting legiS­ facilities across borders-rule ing citizen partiCipation in making and evaluating policy. services. run of successful challenges against hard-won environmental and pub­ . in enforcing market freedoms. Martin Khor. Furthermore. that the WTO becomes "development-distorting. in its confiden­ national regulatory powers. in claiming to reduce "trade­ national sovereignty in economic and social policy. tial bureaucratic' guise." WTO proceedings are secret. Clean Air Act regula tions by Venezuela and Brazil on behaU of their The WTO's first trade complaint. In this way. unprolected southern farmers are sub­ jected to the "disciplines" (e. It is unprecedented because. in seeking to The World Trade Organization rade Organization (WTO) on January 1. As World Bank The WTO. declared in 1994. 11liS ed means ensuring that TNCs receive treabIlent equal to that receiv restrictions (e. which favor free trade because of their palm oil. or faCing trade sanctions totaling $150 million a year. coconut oil. seeks to depoliticize economic activity. it can be diSciplined than social. Should states refuse to com­ ambit of the dispute settlement mechanism is wide: covering trade. involved a challenge to the Environmental Protection Agency had the choice of rep lacing the regula­ a misnomer for the reach of WTO rules. The tion with a WTO'consistent rule that weakened environmental protection U. director "harmonize" trade relationships. criteria. by domestic firms and removing local environmental laws) on trade and invesbIlent that might interfere corporate competitiveness in the global marketplace. " The very threat of such challenges has had the effect also Unlike the GAlT (a trade treaty only). As the outgoing director general of GAlT. the . That is. Switzerland. and Thailand in the Cairns Group of agro­ exportern. Free trade is dented power to enforce GAlT prOV isions . and intellectual property.. . the Philippines. overriding The WTO's dispute mecharusm thus can require nations to alter such lation or poliCies diSCriminating against such movement.

In this sense. farmers are also faced with an intensi­ fication of competitive imports from Mex. Half of the rural population eams less than $1. 80 percent of farm subsidies in the OECD countries concentrated on the largest 20 percent of (corporate) farms. replacing crops grown in the United States such as fruit. 50 percent of U. ren­ dering small farmers increasingly vulnerable to a dereguIated (and increasingly privately managed) global market for agricultural products. 1 . The Agreement on Agriculture IAoA) The 1995 Agreement on Agriculture advocated universal reductions in trade protection. and this explains in large part the mushrooming global social justice movement. and so on. vegetables.000 farmers out of business. although implementation is uneven. . in the project.) Implementing GlobaliUltion as a Project 175 to national laws and regulations regarding the environment. \'\!hat is so remarkable is that the reach of economic globalization is so limited in terms of the populations it includes.S. Since 1994.ican cnmpesinos have lost their maize farms to cheap and heavily subsidized COrn exports from the North. and the General Agreement on Trade in Services (GATS). Trade-Related Intellectual Property Rights (TRIPs). the wro expresses the essence of the globalization project. Deregulation of farm price supports compromises the ability of many countries to meet their commitments to the AoA. a massive demographic shift occurred in Mexico­ overall population growth was 20 percent. farmers everywhere are under pressure to compete by selling cheap. conservative estimates are that between 20 and 30 millio n people have lost their land from the impact of AoA trade liberalization. . preferential trade relations. During the 1990s. While the challenge does not eliminate all laws.icans. farm income declined by almost 50 percent between 1996 and 1999. it seeks to harmonize reg­ ulation internationally. the goal of depoliticizing the economy can back­ fire. to the despair of countries with Significant farm populations. poliCY. In the global South. U. Their farmers have been unable to recover the cost of their production in the face of coUapsing prices since world prices for farm goods fell 30 percent or more in the first half decade since the AoA was instituted " Hypocritically. Corporate farmers sun'ive by subsidized "scale and responsive to market forces. so restruc­ tured states convey the globalization project to their populations. fann subsidies. lowering the ceiling on democratic initiatives within the national polity. farm income feU by about 75 percent. social subsidies. The impact is extensive precisely because states collaborate. especially those involving subnational jurisdic­ tions. but urban population grew 44 percent and rural only 6 percent. including 1.000 rural Mex.s. and only 9 percent came hom 73 percent of the farms. While millions of Mex. global managers assume extraordinary powers to govern the web of global economic relations lying acroSS nation-states.s." CASE STUDY Global Com parative Disadvantage: The End Farming a5 We Know It? of A recent report hom the Public Citizen's Global Trade Walch documents a common process of elimination of small farmers acrOSS the whole North American region as the legacy of NAFTA.40 a day (insufficient to feed themselves). often at the expense of the national and/or democratic process.S. labor legislation. . POliCY changes such as these express and enhance agribusiness power.s. countries with economy." As we shall see.174 The Globalization Project (19805. With liberalization. We now turn to a summary examination of the four principal and mutually reinforcing protocols of the WTO: the Agreement on Agriculture (AoA). That is. health. 33.ico and Canada. and government intervention. and U.000 U. U. threatened daily with the dumping of cheap farm commodities." Between 1998 and 1999. in reality it agribUSiness . As Public Citizen observes with respect to U. Declining world prices for agricultural commodities is symptomatic of the growing power of agribusiness to enhance profitability through global sourcing. Just as nation-states were the ideal vehicle of the development project. or have nO choice but to collaborate. and so about 500 people leave the countryside daily. essen tiall y handed effi· the Congress has had to appropriate . The ethos of liberalization is that exporting makes agricultural protections unnecessary because of expanding global food flows. Proponents of the legislation contended it would make farming more production of food to dent the capacity to pay (U. farm products came hom 2 percent of the farms. .000 annual income have disappeared (six times the decline for 1988-1993).750.s. driving 20. Trade-Related Investment Measures (TRlMs). ln 1994. and European states) retained subsidies.K. and yet its impact is so extensive. and other labor­ intensive foodstuffs." In the mid-1990s. farms with under $100.

large-scale displacement of people. However." In Kenya.176 The Globalization Project (198Os. Public Citizen When liberal policy and northern government subsidies enable corpora­ tions to construct their own comparative advantages. emergency taxpayer assislance went to largest 10 percent of the farms. how can "market­ based resource allocation" retain credibility in the lace of a social cata­ strophe involving destabilization of rural communities. "Whereas for small farmers the subsidies have been withdrawn. is not food self-reliance but food import depen­ dency for a large minority of southern states-those adversely aliected by world market dumping of northern food surpluses. Liberalization is less about freeing trade than about facilitating ag ribusiness: consolidating corporate agriculture and cheapening farm products to enhance agro-exports. and by thus . sufficiency as a national strategy. 16. slaughtering. Brazil. 40 percent of the nation's children (6. The result is we'll have to import staple food.s. Jordan ami Sullivan (2003:33). Argentina." . fertilizers. on aver­ age. is dominated by between two and ten mllln ·' . 19·21). tea. states no longer have the right to full se1l­ food security. Multinational agribusinesses were positioned uniquely 10 take advantage of trade rules that force countries to accept agricultural imports regardless of export platforms to sell imported agriculture goods in the U. and food insecurity? Sourcts: Public Citizen (2001:ii�iv. The companies utilized their foreign holdings as ern commoclities are cheapened by export subsidies and economies of mechanized scale.S. which export pineapple. by rendering family/peasant farming "inefficient" and redundant. ."" While 90 percent of agricultural that the good area under staple foods is now shifting to export crops. and zero tariffs on reexport to the United States. despite record-low prices in the late 1990s. . Central America. Meanwhile. . and Wal-Mart is in Argentina and Brazil. 80 percent focused on export crops during the 1990s.) Implementing Globalization as a Project 177 emergency farm supports-in massive farm bailout bills-every year since the legislation went into effect. Devinder Sharma observes. there is a lot of support now for agribUSiness industry. including the United States and the European Union. Anticipating continent-wide liberalization. ConAgra processes oilseed in Argentina. with input industries and output indushies consolidating alliances 10 "encirde farmers and consumers in a web . and sugar. By the mid-I99Os. coffee. research expenclitures in Latin America went to food crop research in the 1980s. increasing supply put negative pressures on U. and Venezuela.• guarantees the "right to export" (therefore the requirement to import).to 16-year-olds) work on planta­ tions. 13. The AoA normalized export subsidies for 25 of J30-0dd WTO members.s." FOOd-dependent states' food bills grew. Rather. northern states continue fann support. processing and packaging the final 'product. Oxiam asked.'" The Canadian National Farmers Union testified that "almost every link in lhe multinational corporations.."" Through the AoA. Southern states signed the AoA expecting to improve their foreign currency earnings from expanded agro-exports so that they could retire foreign debt. 10. unprotected fanners are at a com­ South America. from selling seeds and bioengineering animal varieties to producing the pesticides. Pillsbury's Green Giant subsidiary relocated its frozen food processing from California to Mexico 10 access cheap wages. . nearly every sector. so absence of public capacity in the South. minimal food safety standards. and bioengineers feeds in Mexico. half of the foreign exchange of the 88 low-income food deficit countries went to food imports. beef and chicken plant in Saltillo. mills com and flour. agribusiness restructured. In the parative disadvantage. 20 percent between 1994 and 1999. Tyson Foods has operations in Mexico. . While these foodstuffs supply European markets. Archer Daniels Midland crushes and refines oilseed. and remarks. trade liberalization favors agro-exports from the global North. even under conditions of subsidized exports. Cargill purchased a Food security. and Cargill de Mexico invested nearly $200 million in vegetable oil refining and soybean processing in Tula. agriculture prices. since north­ billion-dollar Mexico's door to 100 percent foreign investor rights. the minimum market access rule chain. In 2000. and since 70 percent of the global food trade is internal to TNC transactions. "How can a farmer earning U5$230 a year (average per capita income in LDCs [least developed countries)) compete with a fanner who enjoys a subsidy of U5$20. veterinary phannaceuticals and feed to grow them to transporting. the WTO institutionalized the global meaning of Under the AoA. 4 million Kenyans face starvation. Meanwhile." Once NAFTA opened beef exporls. which intensified export dumping such that "just 3 (members) are responSible for 93% of all subsidized wheat exports and just 2 of them are responsible for subsiclizing 94% of buller and 80% of Fifty-six percenl of U. then.000 a year (average subSidy in OECD countries)?"'" In India. their domestic supplies.

Theodore H. already 50 percent over capacity. food security. the role of TRIMs is to enhance conditions for transnational investment by reducing the friction of local regulations. rather than foreign investors integrating into a program of domestic industrialization. observed. In 2001. The conflict is essentially Source: Drornj (2001:1l!. Ford."'.1 trillion total for world trade in goods and services in 1995 was trade within companies-for example between subsidiaries in different c"untries or between a subsidiary and its head­ quarters. General lfII\S Motors. and rural cultures are dismantled in the name of free trade. and Alfa Romeo followed. India opened its auto sector in 1996 to joint ventw"es with investors such as Fiat. and transfer technology as a quid pro quo for investment access " The WTO uses TRIMs to manage the eross-border movement of goods and services production.ation as a Project 179 The substitution of export crops for domestic crops is only an approximate measure of the dismantling of national farm sectors. or of the "commons": The foundation of rural life. penalize com­ petitive investment. argues. Jaguar. raise costs. Honda. why would the WTO threaten that policy and invite instability? 2. Greater freedom for investors under TRIMs is justified by evidence of "higher-than-average wages and benefits. The tensions in this case raise the following question: If a country has a policy to stabilize its domestic economy and its trade balance. As one proponent. marginalized by the privileging of export cropping. Complaints from these f of local content restrictions and export requirements to generate foreign exchange preCipitated the WTO challenge. as championed by the WTO. Such requirements might include expecting a TNC to invest locally. and cost considerations in place of the political dictates that nOw disrupt their operations. in the Malaysian semiconductor industry. with 84 orders already in hand. The TRIMs protocol includes reducing the escalating cost and beggar-thy-neighbor practice of "Ioeational incentive packages"-where . "The multinational corporate community would then be able to rationalize their regional and global sourcing strategies on the basis of pro­ ductivity. BMW. India's industry minister." In other words. hire locally. and sophisticated managerial and marketing techniques. in addition to slowing tech­ nological adoption. Trade-Related Investmmt Measures (TRIMs) TRIMs arose within the context of the GATT Uruguay Round. Daimler-Benz. reducing quality. Also.000. as the WTO Web site explains." But the "integra­ tion effect" favors integration the other way: of local producers into the world market. an indigenous machine tool firm matured from supplying parts to foreign investors to supplying high-'precision computer-numeric tools and factory automa­ tion equipment to international and domestic markets. and the planning and/or transibonal needs of individual cOWltries. Murasoli Maran. resulting in the creation of globally competitive Mexican auto part sup­ pliers.) Implementing GlobaJi2. the United States (followed by the European Union) deployed the WTO disputes mechanism against India on the grounds that its auto industry violates the TRIMs protocol. and foreign auto firms eager to captw"e one of the world's largest potential markets. and Hyundai. quality. especially. rural populations are displaced into casual labor. in an attempt to reduce "performance requirements" imposed on foreign invest­ ment by host governments. The TRIMs initiative illustrates the tension between the urgency of corporate property rights. Moran.178 The Globalizahon Project (19805. and burden consumers. between an Indian industrial policy using export requirements to stem a glutted car market. and swamped by artificially cheapened food imports." The point of TRIMs is to secure investor rights at the expense of domestic development measures. As local producers and markets are scuttled by the removal of public protections. and retarding management prachces." as well as a stronger "integration effect" with the local economy. "Third World countries are worried that what they keep out of the front door may find its way into the WTO through the back door. it nevertheless symbolizes the conversion of agriculture to a market good and the privatization of a pub­ lic good. wealthy Indians use the side door: Mercedes Benz launched its S320-L model in 2000 at $150. buy locally. It is exemplified in the Mexican auto industry. Toyota. where parent firms invested in local supply firms for self-interest and not because of local content requirements." Meanwhile. CASE STUDY Corporate Property llights in India In June 2000. The argwnent in favor of TRIMs is that they reduce domestic content requirements that misallocate local resources. advanced technology. since trade is closely linked with investment via "the fact that one-third of the $6.

. Ireland. cheap. was the site of the first export processing zone (EPZ) in 1958." The TRIPs protocol was defined by a coalition of 1 2 major U. the agency for European business and industry. . Based on a synthesis of European and U. Remember. and then charged a fee for use of the genetic resource in local production or Charged high prices for the commodity-<!ven to the country where the material was originally in use. In many cases. TRIMs encourage EPZs. biotechnological products and processes. such as the frog secretion. This model was copied by Mexico and Brazil vis-a-vis the North American and global markets. They usually give the creator an exclusive right over the use of his/her creation for a certain period corporations. existing plants. Trade-Related Intellectual PrOperh Rights (TRIPs) The WTO Web site defines intellectual property rights as "rights given to persons over the creations of their minds. But critics contest this corporate defini­ tion of intellectual rights. ActionAid.000 TNCs. and scien tists and corporations of the North account for 97 percent of all patents. Ireland emerged as a prosperous export platfonm for the European market (build­ ing on a period of labor disorganization via deindustriaUzation). and of time.S. This privatisation of living organisms often involves companies taking indigenous plan t varieties from developing countries and using these species for tHe extraction of genes."" Laboratories isolated a frog secretion to develop a p ainkiller. a Japanese federation of business organizations. generating nearly 100. and pharmaceuticals. But the greater the attention. .s. Attempts have been made to acquire human and other animal gene tic material. a corporation has patented genetic material obtained from a southern country without pay­ ment or obligation. given their rich biolOgical variety. or genetically modifying . This is why so much attention is being paid to preserving the tropical rain forests. the At the tum of the twenty-first century. patent laws. resources. At issue is the question of control of resources.) Implementing Globalization as a Project 181 countries compete for business through concessions. as well as nonplant microbiological . the "Irish model" emerged as a paradigmatic case­ where Ireland used incentives (grants of 60 percent of fixed assets. Shannon. A London­ based organization. 100 percent of training costs. such as computer software. disorganized labor is the one "comparative advantage" many governments in the global South have to offer. in challenging domestic requirements on foreign investment. when a scientist from Abbott the granting of patents on plant varieties or individual genes. j 3. who use the chemical as poison on their hunting arrows." In the 1990s. As we have seen. And it often comes down to the relationship between the lifestyle of the global North and the rights of indigenous peoples in the developing na tions.50 I t seems rational that the world's biodiversity should service humankind. biopesticides from the Indian neem tree. Brazzein. It did so under the terms of the 1992 Convention on Biological Diversity. turned it into a commodity such as a medicine. In a commissioned. Our lifestyle is directly connected to the extraction of these sorts of resources. as biopiracy. for example. arguing that bioi diverse and generic knowl­ edges should remain available to human kind as a global "commons." Many commercial drugs these days derive from chemicals found in tropical flora and fauna. which confirms national sovereignty over genetic In this sense. While TRIMs may attempt to regu­ late export platfonm concessions to preserve the principle of comparative advantage. such as drugs from the rosy periwinkle of Madagascar to fight chil dhood leukemia and testicular cancer. Critics view this appropriation of genetic material by foreigner.51 Ecuadorian government demanded compensation on behalf of Ecuador and the Amazonian Indians. perhaps for centuries. defines biopiracy as OECD study (1994). Advocates claim that it simplifies the pra­ tection of property rights across national borders and protects and pro­ motes innovation for everyone by guaranteeing profits from technological developments. the more controversy that erupts. a powerful sweetener from a West African berry. TRIPs are yet another weapon in the WTO corporate property rights ("comparative advantage") arsenal. Biopiracy need not be limited to plant varieties. and human cell 1ines to identify genes causing illnesses such as Huntington's disease and cystic fibrosis. proteins and gene sequences from plants in the South by commercial and industrial inter· ests. and extremely low tax rates) to attract more than 1. intellectual property rights protection is to be administered by the WTO. free building sites and rent subsidies in industrial parks. Patents on biological wealth give patent holders exclusive control over use of the genetic materials. whose sole domestic link is labor minus its civil rights.180 The Globalization Project (19805. affirming the principle that nations are entitled to "fair and equitable sharing of the benefits. The global South contains 90 percent of global biological wealth.000 jobs: more than 50 percent of Irish indus­ trial output and 75 percent of manufactured exports. mostly in the global South.

portionate scale. which states interpret to mean plant variety pro­ (CBD). Internationally. who are the alternative sui generis system of plant variety protection to achieve food security and enhance the genetic base that would include the follOWing principles: legal recognition and protection of farming communities' agri­ cultural know ledges. How is that in protecting corporate science through the TRIPs protocols.55 national laws to protect biodiversity. and plant varieties. corporate plant breeder who produces new seed varieties. Foundation International As the Rural Advancement plant breeding of new seed varieties. which confirmed national sovereignty over genetic resources and affirmed that nations are entitled to "fair and equitable sharing of the ben­ efits. how states interpret that (RAFI) asked. Kalpavriksh-recommends an When the Indian government introd uced the Protection of Plant Varieties saved seeds and on crop genetic diversity as the basis of cultural and eco­ logical sustainability. appropriate and equitable benefit-sharing arrangements with farmers and communities whose varieties and knowledges are used (or commercial and scientific purposes.182 The Globalization Project (19805. microbiological processes and products. modernity. "The question is.C. When inserted into crops such as com and soybeans. Gene patenting ultimately relies on an lPR regime that privileges governments and corporations as legal entities and disem­ powers conununities and farmers by disavowing their indigenous knowledge rights. can ctiscount the intricate tection. Ashish Kothari-<:oordinator of a group formulating the Indian National Biocliversity Strategy and Action Plan and the founder-member of the environmental action organization. rather than commodity. Farmers. as well as in WTO protocols. The latter stems from the 1992 Convention on Biolog.4 billion people in the global South depend primarily on fann­ Unequal Construction of Knowledges and the Question of Biodiversity Protection and Farmers' Rights Bill in December 1999. who informally employ centuries-old plant­ breeding methods. systems of reg. threatening livelihood. with all of its scientific resources. modeled on the 1978 International Convention for the Protection of New Plant Varieties (UPOV)-which secured green revolution plant breeding-priviJege the formal. ntis devalues the existence. are excluded from the bill's provisions and viewed as potential "bioserfs" to grow the new varieties bred by the corporate sec­ tor. integrity. ironically. and local communities over centuries of cultural experi­ mentation. now appears to sanction a reverse biological form of piracy on a dispcl). the key question was whether the bill would promote India's food security by improving conclitions for sions.cal Diversity . The Inclian case demonstrates the tension embedded in states between Western modernity and indigenous know ledges.stration at subnational and national levels to ensure protection from piracy. Industries and Pioneer Hi-bred sought licensing rights to use a gene from an African cowpea. which must be either patentable or subject to an effec­ tive sui generis system. etc. Critics claim that the bill's provi­ inventors? [The scientists I who isolated the gene? Or West African fann­ ers who identified the value of the plant holding the gene and then developed and protected it?"" In valuing techno-scientific over indige­ nous knowledge. The TRlPs concept of intellectual property rights represents and enlorces an idea of diversity for immedi­ ate benefit because of the unequal value placed on techno-scientific versus indigenous knowledge. and via­ bility of non-Western knowledge and values. for intel­ lectual property rights protection. TRIPs grew out of an attempt to stem intellectual property pirating of Western products (watches. The entire living world is very much up for grabs in this particular vision of commodjfying natural endowments and resources. rights.) CASE STUDY Implementing Globalization as a Project 183 material. However. Western legal-scientific arrangements are deemed to be the optimal framework. representation of farm communi­ ties on agricultural planning and implementation boclies. channeling benefits to pri­ vate investors ratHer than communities. allowing exclusion of plants and ani­ mals from patent laws but insisting on intellectual property rights for "inventors" of micro-orgarusms. and so forth. it empowers states to enact right and obligation is part of the controversy. forest dwellers." This concern arises because firms such as I. About 1. an intellectual property regime (lPR) regime creates an unequal relation-endangering farmers' rights to plant their crops and threatening to expropriate genetic resources developed by peasants.) in the global South but." The TRIPs protocol establishes uniform standards. globally. recog­ nizing traditional know ledges and obliging member states to conserve knowledge for biological wealth. In addition. planting of traditional crops may be liable for patent infringement." The CBD is a commitment to conserve biological diversity. Farmers express concern that ii firms can patent traditional seed stock. CDs. the gene increases pest resistance.

u. energy and n. K·12 education. induding a wide range of public services in sectors that affect the environment. Bank o America. Using wro "national treatment" protocols on government procurement and subsidies. libraries and a variety of municipal services. P. investment houses such f as Goldman Sachs and General Electric Financial. health insur­ ance corporations such as the Chubb Group. under popular pressure. "GATS 2000" is a fundamentaUy more far-reaching protocol to compel governments to pro­ vide unlimited market access to foreign service providers. we see the elimination of all vestiges of the development state and its replacement by corporate services globally. management and con­ su/tant corporations such as KPMG and Price-Waterhouse Coopers. AT&T. Morgan Chase. garbage disposal. slli generis system resources. consumer pro­ tection." parallel with wro rules on trade in goods. and water services) would yield to the private capacities of the consurner­ citizen." agricultural and medicinal plant biodiversity. telecommunications.s. access provisions are more profound. and water. without regard for social and environmental impacts of the service activities. is the product of centuries of indigenous breeding and cultivation. General Agreement on Trade in Services (GATS) Services. Coalition o Service Industries (uSCSI)---am!posed o elec­ f f tronic entertainment and telecommunication giants AOL Time­ Warner. The sui generis principle was recently affirmed in the case of the Texas-based company RiceTee. and social security. education. licensing standards and qualifications. applying to most government measures affecting "trade-in-services. In other words.ng Globalization as a Project 185 and historical connections between cultural and ecological ctiversity on which our planet's sustainability may well depend? Source: Kothari (2000>. and Deutsche T elekomAG.) lmplemenri. publishing and entertainment: Bertelsmann."57 They include public and financial services. GATS 2000 involves the following: • The GATS 2000 agenda was drawt! up by a power ful transnational coalition o corporate service providers. and Who Stands to Gain? defined as "anything you can not drop on you r fool. GATS threatens to replace the social contract between state and citizen with a private contract between corporati on and con­ sumer.58 As Tony Clarke notes. municipal services. is accelerated by pennitting commercial presence in GATS member countries. are Who Is behind GATS 2000. subsidies. consumer. post-secondary education. turnl 1 2. In this proposal. making them equaUy available to foreign-based private service corporations. Inc. and express delivery services slIch as United Parcel and Federal Express • • • Imposing severe constraints on the government's ability to protect environ­ mentaJ. The guaranteed access of private service corporations to domestic markets in aU sectors. The democratic claims of the citizen-state (expressed in muniCipal contracts for construction. • The significance of the slli generis system for plants lies in its potential for alternative formulations. including the f f ollowing: 1. including health. In June 2000. and IBM. and J." such as labor laws.financial empires such as Citigroup. including f financial giants Barclays PLC altd Commerzbank AG. health insurance: the AXA Group and CGU plus Norwich Union. "Every service imaginable is on the table. postal delivery prisons. The 1994 GATS regime opened markets for trade in services by establishing the rights to corporate "presence" in member countries for the delivery of a service in the areas of finance. 4.184 The Globalization Project (19805. health. recognizing and securing collective rights for premised on collective rights to biodiversity would recogn ize diverse cul­ tural knowledges and practices. culture. sanitation."st . plus drinking water. sewage. and sociaJ programs. as well as the seeds and plants producing the grain. the Inctian government successfully challenged 4 of the 20 claims for this patent on the grounds that the grain. Finally. market access restrictions. unlike goods. it would impede the role of government funds for public services. T elefimica. economic needs tests. Restricting government funding of publiC works. energy and water enterprises such as Enron and Vivendi Universal. water: Suez-Lyonnaise des Eaux. health care. and transport. and other public interest standards. European Services Forn m---composed o 47 corporations. grants. and local content provisions.. along with transportation services. A. which sells "Kasmati" rice and "Texmati" rice and claimed rights to basmati rice. financial consultants: Arthur Andersen Consulting. at the «pense of the public interest and its development «pres­ sions. A "necessity test" requires government proof that regulations on service provision are the "Jeast trade restrictive. telecommu­ nications: British T elecom. tourism. and 11rand-name empires such as Daimler-Chrysler Services and Marks and Spencer PLC (Contil/tled) .

2001 this is a replay of the Uruguay Round."61 GATS advocates argue that the conversion of public entities into privately owned. Bechtel. where affordable financial services and low-cost loans disappeared. the World Bank informed the Bolivian president that the condition for $600 million in debt relief was a comminnent to privatizing Victor Hugo Da za. Sources: Clarke $ Billions (2001). and others named La Coordinadora (the Coalition for the Defense of W ater and Life) formed and organized a city­ sta te violence that resulted in the murder of an unarmed 17-year-old boy. and communicated globally by Internet (although . the heels o debt regime-mandated privatiZA­ f tion. farmers. and sug­ gests that while the game has changed. and agricultural products 'O Oxfam's Kevin Watkins offered to open its markets in return for protection of mc patents (which Figure 5. A World Development Monitor report cautions against foreign control of services---<:iting the l. profit-making concerns eliminates bureaucratic inefficiency and government debt. under the leadership o the CEO f o Mitsubishi f Since the late-1 980s. 2001. Japan Services Network. by a plainclothes army captain trained at the U.8 Aala 20. Bolivian officals leased Cochabamba's water to a subsidiary of the California engineering giant. finns. on. the People's Bank '2 its third largest city's water system. textiles. the rules are the same: "The West buys your bananas and shirts if you give its banks and insurance compa­ nies unrestricted access to your markets. of services (by TNCs) as a condition for opening EU and U. the global North dominates international trade in services. The depth and courage of public outcry-fueled by CASE STUDY Leasing the Rain: the Social Contract Privatizing in Bolivia In 1997. Phillips (2002). envirorunental groups. The Bush administration predicted in 2002 that the elimination o barriers f to services would create $1. Bolivia was touted widely by the multilateral agencies as a model for other low-income cOlrntries.8 trillion in new global commerce annually. Aguas del Tunari quickly doubled the city's water rates and charged citizens for rainwater collected on rooftops. T anya Paredes. with $450 billion earned by U. for 40 years. remarked. Watkins (2002:21). and the other things We need to buy our children. Until then. trade in services tripled to 25 percent o world trade. to tenn it appeal­ ingly a trade agreement and demands opeIUless to "cross-border" provision . when the global North Source: Intemational Trade Statistics. clothes. 46.186 The Globalization Project (1980.5 North America latin America Africa in gannents.S. providing superior services on a user-pays basis. Wide general strike. "What we pay for water COmes out of what we have to pay for food.5 The strategy used by the proponents of GATS 2000 is. leading the government to propose the public establishment of a new bank. Two years later. WTO. Poor families found that food was now cheaper than water.3 f shows. As Figure 5.S." A resistance coalition of factory workers. School of the Americas.iberalization of financial banking services in Aotearoa/New Zealand.s.3 World Exports of Commercial Services by Region. which was costing workers 25 percent of their wages.) Implementing Globalization as a Project 187 " (Continued) 3. cost the global South $40 billion in increased technology costs). a mother of four. markets notes that % Westem Europe 20..

Namibia."b) resented by the "triad" cOWltries belonging to these three megaregions � "0 � '" '" c 0 N '" � u. Regional Free Trade Agreements (FrAs) The WID regime is anticipated in the spread of free trade agreements (FfAs).r undemocratic origins. However.. medial-forced the city to resume control of the water system. centered on the United States> the European Union (EV). Swaziland." ::. '" ui � � . ) not reported by the U. and aspirations are quite similar. 2003. centered on Japan. Bechtel filed a $25 million legal action against the Bolivian government for cost recovery at the World Bank's International Center for the Settlement of Investment Disputes. South Africa. life-style. the secretive tribunal prohibited public and media participation in the legal proceedings. and Paraguay participate in the Mercosur Treaty) to the South African Development Community (including Angola.. Free trade agreements range from the North American FfA (known as NAFfA and including originally Canada. Malawi. In fact. LesothO. such a reversal would have been practically impossible. Argentina. use of leisure time. the United States. Silencing the civic voice. A year later. also. In this instance." it does apply to ser­ vices with a conunercial dimension or that compete with the private sector. and / or power relations? Source" Cootes (2001:28). The megaregions are NAFTA. It is irreversible. and Zimbabwe). � B . centered on Germany.186 The Glob. On February 25. if GATS 2000 had been in place. citizen action succeeded in deconunodifying a public good. Botswana. SIII/Itz (2003:35·36). While GATS may exclude services pm­ vided "under the exercise of government authority.nzation Project (1980.s. the market rep­ consists of more than 600 million middle-class consumers "whose acade­ mic backgrounds. Uruguay. and the Asian Pacific Economic Community (APEC). farthing ond KolII (2001 :9). income levels both discretionary and nondiscretionary. What is it about the WID protocols that they must be irreversible-does it have something to do with economic logic. They are considered megaregions because they produce about two-thirds of world manufae­ turing output and three-quarters of world exports. Mozambique. Zambia. thei. and Mexico) to the southern cone of Latin America (where Brazil. These are agreements among neighboring countries to reform ' trade and investment rules governing their economic intercourse.

providing a model for WTO-style governance "as a treaty­ based regime which would then trump the municipal law of states adher­ ing to the WTO-lockIng them in. Thus. and Mexico) according to the open-door provisions of the WTO. in coauthoring or authoring market rul. labor.. regulates flows of goods. lawyers for the European COlUlcil of Ministers responded. National and local regulations regarding health. . When the secrecy of the technocrats was challenged in the European Court of justice. generated fur­ ther tensions. respectively outside their regions. The strength of the Europea n Parliament and the [European) Commission is in inverse proportion to that of the national democratic institutions.. which conduct 70 percent of their trade with the United States " As regional integration occurs. monopoly rents on intel­ lectual property rights. . are econolllic not polit­ ical units. in j j f act. aJism is a defensive strategy. Thet are. etc. services. compared with only .e (1990:80." where the region-state f ignores legitimacy issues f aced by states. CASE STUDY NAFfA: Regional Economic Success. fOlUlded in 1994. Hong Kong."66 A monetary union to create a single currency.e. especially arolUld the relocation of monetary policy from states to the European Central Bank (Frankfurt).e.65 Regionalism embodies the tensions acolUld sovereignty that define the globalization project. and environmental standards thus. termed Fortress Europe. the f predictable f ocus o nation states is on mechanisms f propping up f or troubled industries. lahore o southem Malaysia. the United States. The European CommlUlity revealed these tensions in its movement toward a common governance in the 19805. its most reliable ports o entn f . the growth triangle o f Singapore. to the open door provisions of the WTO on services as well as trade issues. ."" The monetary union has been used to defer the question of a social charter (labor protections) by focusing on financial disciplines and dismantling the "social market" "to build Europe i\ l'americaine. for Canada and Mexico. linking T aiwan." james Goldsmith argued. Maastricht. individually or collectively in free trade agreements. the San DiegofTijuana wn. 89. NAFTA was 10gicaJ. "The Treaty of Maastricht seeks to create a supranational.g. a single currency and common market. protesting the prime minister's austerity plan to meet the budgetary conditions of the European Monetary Union (EMU). centralized. and the Chinese prcroince o Guandong) is the natural economic wne it! f a borderless world: "Because o the pressures operating on them. and capital between the three member nations (Canada. deepened integration movements in the Asia-Pacific region and the Americas-even though the United States and japan conduct 74 percent and 64 percent of their trade." Regionalist groupings subscribe to the principles of global free trade but implement them among neighboring states." rendering states "pCJWerless. . But in practice. "There is no principle of community law which gives citizens the right to EU documents." He argues that the "region-stale" (e. the euro. which has no democratic oversight. NAFTA forbade the United States to restrict imports based on In this sense. in the Borderle•• World Free Trade Association.190 The Globalization Project (1980s. anticipating the possible exclusion of their exports from other trading blocs. . the three mega regions formed in are subordinated to market rule and managed by unelected bureaucrats­ ." One consequence of this was the highly publicized and effective str ike of 5 million French public servants in 1995. bureaucratic state-a homogenized union. states else­ where respond with local regional groupings. ecO­ nomically. so to speak." In theory. and thet are anything but local il1 f j ocus. Source: Ohm. Ohmae's perspective describes the purest f orm o 'jlow gcroemance. 99). and the South China region. EU legal arrangements privilege international treaties over national laws. region­ defensive relation to one another where the European Union's creation of . and the Rinu Islands o f f Indonesia. Social Failure? NAFTA.) Implementing Globalization as a Project 191 30 percent for the European Community members and their European The Region-State versus the Nation-State. but they are slleh pCJWerjul f engines o development because their priman orientation is toward­ f j and their priman linknge is with-the global economy. states do coordinate such zones and manage the populations and social conditions included in and exploited by the zones. culminating in the fOlUlding of the European Union (EU) in the 1991 Treaty of lapanese economist Kenichi Ohmae depicts the global economy as a "borderless wO/'ld. It would destroy the pillars on which Europe was built-its nations. They may lie within the borders o an established nation state." whereas "region states .

it is clear that the development project was a process wherein states allempled to manage national economic integra­ regarding points of departure. Moody (1999:133). been a huge success..' and Hal<y (1992:54-55). west­ )t sought to integrate the upper echelons. disciptine the Zapatista rebels. Resourc. formerly Mexico's shining achievement. the The Globalization Project as a Utopia The development project was an ideal that some say was a confidence exploited base or periphery. is under construction. Fidl".. is a desperate effort to maquiladora industry to southern Mexico. planta­ tions. In run-up debates.. unequal. and Branst"" (1995). one-. Frn/ey (1991:41). and commercial farms for export revenues." Whatever the case. expand mines. of NAflA. decline. where wages are half fringes. sew and stitch for 40 cents an hour. 71wmpson (2002a).. and raW materials. How can this "race to the bottom. technological dependency. States often exploited weaker communities in their hinter­ lands (forest dwellers. a "region-state" called the Plan Puebla de Panama (PPP). energy. and undemocratic-what­ eVer its successes and however inclusive its ideals..i. even though the population grew the world's ninth largest.69 others say it was a success because it was never intended to be absolute: trick or an illusion because the world economy has always rested on an 60 percent dectine since 1976) in retum for the end of U.z. but the integration was often incomplete. The professional and bw. The globalizatior : . From the Mexican em. where." embedded in the market logic of extracting resources and profits from casualized labor. of a given third world population into the international. degrees of corruption." trueatening living standards South America. "Relocating the r. ernta Bulletin (1993:2).nrleCl which to work. protectionism. Mexico's 50 percent rate of poverty has Some critics make the mistake of proclaiming that development has failed. In fact. Mexico is now considered a paradox Brazil. In 1995. Hnyd"" (2003). say ten to wealth. Development as historically conceived and offidally practised has 70 to 100 million from 1980 to 2000. peasants) to build dams. and lax environmental protection should be the premises upon which Mexico establishes links with the ment.ctct'. It hasn't.. there is such a polarization hemispheric-wide Free Trade Area for the Americas (FTAA)-a $13 lion market of 34 countries and nearly 800 million people-which regard as "NAFTA on sterOids. As Tom Hayden argues. is unstable and .) Implementing Globalization as a Proje<t 193 methods of production (e. 85 percent of which crossed the northern border. or relocate rural communities and popUlations.i. be considered at one and the same time a success and a failure? Sources: Schwed.192 The Globalization Project (1980s-. large social segments of the Third World remained on the words of the Los Angeles Times. a Mexico to Central America. While trade volume has nearly tripled and the Mexican economy is now changed since the early 19805. justifying this action in the name of national developmen t.ixth of the Mexican wage. development has been quite limited. "Exploitation of cheap labor.g. propelling them into urban Overall.irn!S8' middle class. child labor practices such as drift netting for tuna).. and cash cropping and/or cheap food imports deepened their redundancy. consuming classes and the global market economy_ This it has accomplished briUiantly. Canada and the world economy. but also capitatist development is inherently uneven and infrastructure and cheap labor zone linking the Puebla state in SO'UW_ emmen!'s point of view." As exports shifted from oil govemment secured this export relation by depressing wages further (a manufactured goods. the PPP is an attempt to colonize its soUW. and revive the failed prc)mlll Oth er displaced peasants. the fixation on industrialization marginalized tion. the Mexican maquiJas on the US border. Jordan and 5./li""'1 (2003). where 'nimble Chinese hands: in P<Uticlpa te in the cash or COnsumer credit economy. opposition presidential candidate Cuauhtemoc States. margins or experienced dislocation as the development project took hOld.. in addition..ed. Not only did states differ lorty per cent. Mexico is now the model state for a p".." the hemorrhage of jobs to China. in many ways. while the richest 10 percent control 50 percent of financial and real estate assets.-ri. only about one-fifth of the world's almost 6 billion people Shantytowns. NAflA formatized a decade-long process of Mexican structural adjust­ Cardenas argued. and resources with unequal.s. Meanwhile. with so many resources. Perversely enough. Mexican hourly labor costs were 9 percent of those in the United States.

and ethnidty give texture to the power relationships wlthil' which (global) development operates."n ruptcy.. job This trend has subsided recently as industrial restructuring. which left these markets exposed to destabilizing withdrawals of short-term money.les a1. and risin g unemployment have swept across the global North. casual female and male labor. the globalization project is an unrealizable ideAl If this is in fact the dominant scenario under the globalization project. Some of these investment. stabilizing market expectations. deepening the crisis and its widespread social impact. as a project privileging corporate property rights. The growing fractiousness of the Washington Consen$uIt This was prescient. expressed in the resistance movements. ating an emergency fund to bail out states on the verge of national bank­ global approach to coordinating policy. expanding citizenship rights. In short. the cost of market-induced crisis. The formation of Western welfare states involved demands for project intensifies these outcomes. Like the hauling the world monetary system to tame its unstable and speculative from two angles: • ing global discipline to weaker states in a global currency hierarchy n Although the G-7 countries have attempted to stabilize the system. this severely erodes legitimacy of the The United States is the most indebted state in the world. but because those debts are not denominated in other currencies (since trade part­ nerS accept dollars). While financial deregulation exerts discipline over participating countries and routinely compels some to shoulder work. settling on Argentina at century's end with ." working classes of those nations. a group called the Bretton Woods Commission. interstate rivalries in the WTO.1 reveal a deeply contradictory and conflictual state of affairs.nquila workers. In 1994. Neither nation-states nor the world community are singu-­ lady composed of market-oriented individuals: The social divisions of d. given the massive 1997 financial crisis in East Asia. public works downSizing. system. But global integration is neither homoge­ neous nor stable. race. and even slave labor constitute a global sourcing and states trimming their national workforces. offshore in part because it has not had to confront its contradictory effects-in that it manages and controls the role and demise of the nation-state in realizing its v ision but cannot or does not admit to it. cre­ fMF discipline. it appears to of a global integrating trend. fueled by lMF monetary fundamentalism. quite heterogeneous mix of labor in the global economy. if there is be a national disintegrating trend under the globalization project becaUSe the paralysis of the WTO's 1999 Seattle Ministerial (via combination of offense taken by the Afrkan group and the Latin/Caribbean states to the global North's exclusionary tactics and new alliances among labor and envi­ ronmenlaJ justice movements) and its 2003 Cancun Ministerial (because of northern protectionism and the successful mobilization of 21 southern states). On the other side 01 this process. And with TNC ment insecurity rises across the world. homework. but it tends to fragment production and. globalizatiOd generates its own tensions.. Peasant contractors. we have seen the incorporation of new labor forces across effects a re spelled out in the chapters to come. The financial virus spread to Russia and Latin America. But One effect alarms the inner circles of global management: the fragility of a deregulated world monetary system. Globalization has two faces. and preventing extreme volatility and misalignments among the key cur rencies. expectations do not square with the reality in which either project hal been pursued. As our case studies suggest. may standardize consumption. the commission stated. ) Implementing Globalization as a Project 195 a national integrating trend under the development project. disorganize producing communities. and the worldwide suspicion of neoliberal ru. as well as power to its growing co\ll1'" termovement. gender.a:sI. headed by belt under the kinds of debt management conditions laid down by the former Federal Reserve Board Chairman Paul Voleker. plantation labor. labor demobilization. including political mobilization by the and employment protections. then development project. and intra-elite disputes that flnimate corporate project. insofar as these new political identities compound itl demands.. suggested over­ which is likely to become more tenuous and socially disorganized.. the world market in the process. child labor.194 The Globlilization Project (1980. the globalization project looks more and more like a utopia itself. to date it has avoided having to tighten its financial IMF. the demand for adequate wages. and the right to organize into unions. sweatshop the global South into global commodity chains. This is not likely since the IMF is a mechanism of export­ dynamic by bringing all countries (including the United States) under First. "There has been no reliable long�term 'i Second. The globalization project is the most powerful ordering force so far. employ­ ".

and • opinions afe seriously divided on the degree of market rule necessary. Global financiers such as George Soros have for reform of the global economy along the lines of establishing develop a democratic form of governance respecting multiscale needs in sustaining humane social organization. in instituting modest currency and lor capital controls to stabilize their national economies.. Already strategists in China are suggesting that the yuan should replace the in ternational credit insurance corporation. forces other nations to seek to resist it. Hong Kong.) Implementing Globalization as a Project 197 arrangements. dominance of world trade."" But there are other countries-like Malaysia. and there is relatively little foreign ownership of equities.. which has been expanding while the rest of East Asia has been collapsing or shrinking. ticn project) Or embedded in social institutions. Other proposals are an international central bank to coordinate international private borrow­ ing.75 In other words. The ultimate issues are the follOwing: Meanwhile. The exist..S. British journalist George Monbiot observes. the greatest severity and revealing the bankruptcy of global financial Whereas the United States may be in the driver's seat in the global_ ization project in general. is all that perrruts the US Treasury to sustain the nation's massive deficit. which constitutes an effective and sufficient control on the northern states are unwilling to have global agencies regulating their finan­ cial markets. problems: • capital reflux.! While the United States runs a persistent trade deficit in addition to its debtor status."" Monbiot adds. The twenty-first century has seen signifi­ cant reversals under way.S. poses a potential threat to dollar (depending on European unity. establishing the possibility of sul)St euros for dollars and obliging the United States to stop assuming that deficits will continue to be financed because of the dollar's interIlatjorllli reserve currency status to date. There are three unresolved..* of an alternative world currency. These issues.ad� " mechanism rather than by the Bretton Woods institutions. weakened by the Iraq conflictl). depending in part on one's position in the global political and currency hierardties. how the project of disembedding markets provokes resistance and visions of how to embed markets in ways that address questions of social J usticeI ' and • J . particularly the oil market. the G-7 came up with a reservoir of cheap labor. have shown the way toward strengthening national economic sovereignty."" attacks on currencies or markets that are spillovers from economic elsewhere. "This admission.. And It does not have to take orders from the IMF. tum. hether the system of states or some other cosmopolitan arrangernenf8 can posed line of credit. It is also much more autonomous: "Its currency IS not freely convertible. including the unhealthy fallout from the globalization Project.. the euro. unilateralism in Iraq wuavels the legiti­ macy gained through participation in multilateral institution building and forces the United States to admit to its imperial relation to the world. .v. or the Chilean model of imposing a one-year moratorium on probJem of capital flight.76 Following the East Asian financial crisis. the United States would experience the austerity cia ted with structural adjustment. U. its seat­ ing arrangement is only as good as the willingness of the world to use the dollar and finance its deficits-or the U.. has exemplified an aItemative to market rule. the result that the US economy will begin to totter. making billions of dollars available to p". China is perhaps exceptional in its resource base and its :h ethe� markets should be disembedded (as in the vision of the globaUza . China. Chile. The dollar's dollar as East Asia's reserve currency. are the subjects of the fol lowing chapters. as it was in the development project. its financial system is owned and controlled by the state. The euro has started to challenge the vaJue of the currency will fall with it and speculators will shilt their assets.196 The Globalization Project (1980s-. unwillingness to assert its military superiority globally. and Colombia-that. the w ith dollar's position as the international means of payment for oil..yb. Effective resistance would create the political space in which their citizens could begin to press for a more equitable multilateralism. Europe runs a trade surplus with the rest of the itultini which owes it about $1 trillion. as it can print inflation­ free money for global circulation. a "Tobin tax" (named after Nobel laureate James Tobin) on interna­ tion al flows of capital as friction and revenue to reduce financial collapses.. and perhaps wuesolvable. imposed through a market "blo. • there is an estimated $500 billion in offshore bank accounts in the Cayman Islands alone--beyond any institutional regulation. U the global demand for dollars falls.

• oney and labor. food prices. and pawer of the transnation. a countennovement at all levels. They require certain kinds I>f social regulatory mechanisms to work. and so f orth.eu. . the components of which are s umm arized in the above insert.on'" ' conomic. debt load. The imposition of austerity measures by indebted governments deep­ ened inequalities within their societies. race. national banking. an alternative way of organizing economic growth corresponding to the growing �ale volume of economic exchanges and the greater mobility of money and What Are the Elements of the Globalization Project? Tile globalization project combines several s/"rands: • a (Washington-based) consensus among global managers/ poliCl ­ j makers f avoring milrket-based ratller than state-managed develop­ ment strategies. These tendencies are replicated in free trade agreements.greeing to restructure their institutions and their pfI. Overall. The increasing firms required forms of regulation beyond the reach of the nation-state but embedded within the system of nation-states. f labor).. which express goals similar to those of the glob­ alization project by locking in the open-door provisions of the neoJiberai doctrine. Many of these mushrooming export SItes suffer the instability of flexible strategies of "footloose" firms. with variation according to capacity indebtedness. • eel.W uti. Structural adjustment programs required the reduction of ial infrastructure. f • implementation o these rules through /Ilulti/ateral agencies f (World Bank. consolidating Third • realization o global development via new gender. and WTO). states bec. The slandardized prescriptions for liberalization reorganize regions and locales: fro rp the removal of Mexican compesinos from long-held public lands to the rapid dismantling of public ownership of the economies of Eastern Europe to the proliferation of export processing >ones and agro-export platforms. Similarly. producer and other social services and upgraded their financial and co. central banks and state bureaucracies stepped in to regulate and protect the value and rights of these flows '.1 banl<s and corporalions. which hatched during the 1980s debt crisis."(""'. and trade policy. health.\j export ministrie ."u�=. currency.mrne. f subjection o all states to eamomic disciplines (trade. IMF.Uberalization and (unency devaluation heightened coml". eCiine as communities lose their resource bases (os forests windle) or their employment bases (as firms aownsize or move offshore ). and deregula­ tion of protective laws regarding foreign investment. And so were laid the foundations for the new global­ ization project. from marginalized communities to state managers to f actions even within multilateral institu­ tions. privatization of public enterprise. when global money markets became inant in the 1970s and then the flows of credit needed to be protected in the 1980s. financial. van jing by position in the state system (North/South/ East). respectively. heir surrender of public ity �ielded power to global corporate and financial in. Markets in money and labor could work automatically. This new balance of power marked the transition from the development project to the globalization projecL Indebted states remained viable regulators of market exchanges only through .ono ' ties.) Implementing Globalization as a Proj ec t 199 Summary This chapter has recounted how the development project incubated a new direction in the world capitalist order. Social protectians disunity. contesting and second-guessing unbridled market rule. that is. as they PICk and choose their way among global sourcing sites. global currency hierarchy. he new global regulatory system subordinated states' social protec­ ions to financial ere I t protection.rcll!. resource endowments. When monetary exchanges began to govern European productive activity in the nineteenth centu and industrial labor markets emerged. All markets are political institutions. they downgraded their functions of subsidizing education. The WTO represents one such form of regulation. • concentration o market power in the hands o TNCs and finan­ f f cial power in the hands o TNBs.198 The Globalization Projec t (19805. They were turned inside out. the IMF stepped in to regulate the value of u".me surroga te managers of the global (or "market states"). new direction was the globalization proje<:t. and ethnic f inequalities.t� �tion among states for credit and investment.. centralized management o global market rules by the G-7 states.

This will be the subject of this Chapter.. and a widen­ ing band of informal activity as people make do in lieu of stable jobs. and sustainable habitats. through IU!tional welfare. Nations (UN) reports that the richest 20 percent of the world's population enjoyed 30 times the income of the poorest 20 percent in 1960.lme are based in global institutions such as the World Trade Organization or national institutions managing the global marketplace within their ing to a social contract between government and citizeruy.) . Nor is it straightfor­ ward.. a fonn of crisis management stemming ries. It assigns communities. Whether these forms of authority and di. The attempt to construct a liberal economic order as the new blueprint for global development generates its own tensions in the accumulating instabilities and resistances that define the twenty-firsHentury world. but by 1997. gov­ ernment supports. It is.200 The Globa �za tion Project (1980. rdirlR 6 The Globalization Project: Disharmonies G lobal integration is not a harmonious process. Under these conditions. The development project proposed social integration tnIOUjUl national economic growth under individual state supervision and ao:ord­ globalization project offers new forms of authority and discipline aoco to the laws of the market. pOlitical legitimacy crises. The ingredients of destabilization include the casualization of labor. regions. perhaps the most striking being the intensification of inequalities and the destabilization of social and political institutions (from the family. There are many conse­ quences of the crisis of national developmentalism.. financial market volatility. they perform the governance functions of the globalization project. the difference was on the order of inequitable foundations. displacement of populations. in some ways.ciI. there is a profound debate among the global managers .tat. The United 74 ' The globalization project has AIDS. globalization is everything but universalist . its consequences. Because of this. from the demise of the development project. food insecurity and health crises such as to multilateral organizations such as the United Nations). Alternatively. new niches or specialized roles (induding marginalization) in the economy. and nation-s .

sllstaillable development. It is impossible to predict the social. The future is uncertain. change impact on forest fire cycles. (IMF) is busy fighting financial fires around the world. stimulated by the contagion of financial crisis as much as by organized opposition to. both 01 wh ich discriminate systematically against small producers. POpulations d ispossessed as a result of their implementation. is one cOnsequence of neoliberal poliCies of food security via the market. half of the foreign exchange of the Food and Agriculture Organization's (FAO's) 88 low-income food deficit countries went to food imports. corporatization of agricultu re. and Zimbabwe. Structural adjustment policies con­ tr ibute to this condition through the promotion of export agriculture and the replacement of sta te marketing boards with private buyers. and it is unlikely that current bureaucratic forms of global governance will suffice to "manage" the extraordinary social and ecological changes afoot. What happens if 3 billion peas­ market' Where do they go. and political impact of transformations induced or sped up by consumers. Food­ dependent states' food bills grew. social cnpila/. feeding back on climate).202 The Globalization Project (19805. the official "famine" threshold has been crossed. funda­ mentally alter our material environment? And what new social arrange­ human and plant genetic makeup? ments and health issues might emerge via new techniques of bioengineering Proponents of globauzation focus on the material prosperity of global long term and/or if the global consumers will expand beyond being a ecological. and the destabilization of rural communities by market forces (dumping of cheap food. elites are busy fighting to control the discursive agenda associated with the global izati on prOject-including such terms as comparntive advalltage. and best practice. Not only is it unstable. Malawi. the gross national product (GNP) grew by 80 percent between 1973 and 1993. wholesale liberalization of the global economic and political order. poverty line. These provide the stimulus to the oppositional social movements examined in Chapter 7.. in France..g. two-thirds of the population live below the gration. 20 percent between 1994 and 1999. where 15 million lace starvation currently. but also it has some of the qualities of the sorcerer's apprentice about it. whose purchasing decisions are gove rned by p rofi t and speculation. By the mid-I990s.j ood security. orgallic farmillg. (4) AIDS. and decline of farm subsidies). and with what consequence? How will the ants leave the land because they cannot compete in the global grain "nemesis effect. market rule. as such. (2) food insecurity. Across Lesotho. where automation and/or offshore relocation of work sheds stable jobs and where redundant workers cease rotating into new jobs.g. Mozambique.) The Globalization Project: Disharmonies 203 . intensification does not just promises to intensify the transformation of social structures that we The existence of these tensions suggests that the global iz ation project. food security involves grow ing dependence on food importing for a large minority of southern states. These are (1) the problem of displacement. In Lesotho. corporate mean a quantitative increase. we consider some of the disharmonies of global inte­ In southern Africa. but unemployment grew from 420. (3) informalization and marginaliza ti on. Swaziland. I t is matched across the world by other forms of displace­ ment. and silent rejection of. does not have a lock on the future. In Zambia. climate CASE STUDY Neoliberalism and Food Insecurity In the neoliberal project. whereby "free" markets exclude and/or starve Zambia. despite record-low prices in the late 1990s. it also means qualitative changes that we associate with the development project. Fund Displacement In the sha dow of globalization lurks a rising dilemma: the casualization of labor and the redundancy of people. including forced resettlement by infrastructuraJ projects (e.' civil wars. In this chapter. 51 percent of the population live below national poverty lines. While the International Monetary tree trade. For example. . those living below the poverty line rose from 69 to 86 percent between 1996 and 2001. on average.' This is the dilemma of structural unemployment." whereby eroding ecosystems interact (e. It is already clear that tile globalization project includ es alternative voices in the countermovements (see Chap te r 7) that contest and seek to shape its discourse and direction-how effectively is an ybody's guess. 1.1 million. This tension. It can only speculate about at this point.000 to 5. and (5) problems of governance (political and financial). but it is by no means clear if this trend is sustainable over the mino rity of the world's pop ula tion.9 million peasants will be resettled in China's Three Gorges Dam project). themselves as to the speed and direction of globalization.

the inflated market has intensi­ fied corruption. Moroccans in Madrid. and are often paid late. Jacques Attali. destitution." global market have to depend on a fOWldation of starvation. only the scale will grow: Turks in Berlin. With provocative imagery. national borders. currently stockpiling 53 million metric tons of surplus wheat. And yet 350 million farmers (green revolution beneficiaries) by pwdlasing their grain at increasingly inIIated prices. "The growth in agriculture has slackened during the 1990s. The quickened movement of the global economy stratifies populations across. which turns the idea of enragement from deprivation into enragement from hwniliation by the West (a theme in Osama bin Laden's post-September 11 speech). the home of tens of millions of small farmers and a source of livelihood of 75 percent of the population. Turkey. which hastens rather than slows the march of famine-induced death. Central America. the hopeless masses of the periphery wiU witness the spectacle of another hemisphere's growth. An Indian Ministry of Agriculture booklet stated in 2000." Corporate seed prices have inflated tenfold. and their behavior depends on the policies and forces constructing them.14). often manifested in outbreaks of racist violence toward "guest 1V0rkers. and meat in the name of food security increase human insecurities. . lltis has been compoWlded by invoking the ter­ rorist threat. and Francophone West Africa) work in restaurants. flowers. Agriculture has become a reJatively unre­ warding profession due to an unfavourable price regime and low value addition. Mexicans in Los Angeles. . and the cycles of attraction and expulsion mirror economic cyc l�s Sources: LeQuesl1e Palel (2002.) The Globalization Project: Disharmonjes 205 " Markets are political institutions. does food security for affluent consumers via the Asia. has a national food sell­ sufficiency program with a government-managed food supply.. former president of the European Bank for Reconstruction and Development. for instance. Lnppe. . Meanwhile. Every dollar of foreign exchange earned on meat exports destroys 15 dollars' worth of ecological capital stemming from the use of farm animals in sustainable agriculture. . the terminally impoverished will look for one in the North. Central global North. rather than simply within. is steadily being Wldemtined by the neoliberal poliCies introduced in 1991. and destruction of social and ecological sustainability? Advocates argue that legalizing the status of the "sans papiers" is the most effective way of reducing xeno­ phobia ' The guest worker phenomenon is not unique to the twenty-first century. or North Africa-millions of people will be temp ted. ." lltis attitude has been particularly manifest in Europe.� seeds.in8""' (200N). lltis practice has inflated Indians starve. With no future of their own in an age of air travel shops"-a public distribution system that is gradually deteriorating. nnd Rosse t (1 998:8·11). are paid less than the legal wage. Why? The Indian government has privileged large Punjabi Global economic integration intensifies displacement as governments and corporations seek to position themselves in a highly competitive marketplace. Siliun (2000. and cheap imports (notably of rice and vegetable oils) have Wldercut local farmers and Such fears. Collins. Indians in London.. villagers WlabJe to purchase wheat are forced to eat boiled leaves or discs of bread made from grass and lelecorrununications. just as intemational lenders have pressured the govern­ ment to reduce food subsidies. Murphy (1 999:3). India.3). In the PWljab's neighboring state of Rajasthan. and enraged by the constant stimulation of wants that can't be satisfied . Under these conditions.204 The Globalization Project (1980s. The movement of peoples has already begUI1. P.2). causing abandOning of farming and migration from rural areas. The high domestic price of grain is maintained by government exporting of cheap surplus grains. poor nomads ("boat wheat prices 30 percent since 1997. construc­ tion. processors. pushing cOnsumer prices beyond the reach of the poor. with no legal recourse. Puerto Ricans and Hajtians in New Y Vietnamese in Hong Kong. China. policies promoting agro-exports of affluent com­ modities such as farmed shrimp. Particula rly in those regions of the South that are geographically contiguous and culturally linked to the North-places such as Mexico. and famting-they "enjoy none of the workers' rights and protections or social benefits of the state . stimulating informal marketing of at least a third of the grain that should be available to the poor through the hali-million "ration . fOWlded in latent stereotypes. Consequences range from the spread of "gated communities" and the H wruner to a rollback of civil rights in the A cursory glance at the newspapers in the global North confirms a broad anxiety about the ethnic composition of the WldergroWld global labor force. . where as many as 3 million "illegal" migrants (from Eastern Europe. Meanwhile. . . distinguishes rich nomads ("consumer-citizens of the privileged regions") from people on a planetary scale"): In restless despair. ork. (1 997). Indian agriculture. Wlderlie the concern of the global managers and many northern consumer-citizens to stem the tide of global labor migration. We know that 78 percent of all mal­ nourished children YOWlger than five years of age in the global South live in food surplus coWltries. Waldman (2002.

For example. the intake is or fugees in Britain accounted f just lJVer 0. • • Sources : Montalbano (199LF1). o whom 42 million are o are environmental migrants. continuing immigration is in the interests of firms needing cheap labor and of privileged people needing servants. and floods. 50 million people in f amine-vulnerable areas subject to climate change." In 2002. facing an economic downturn. Likely SOurces inc/ude the f oli(JWing: • • 135 million people whose land is being desertified. droughts. re f frica receive 80 percent o f o the total population.000 each year. Boyd (1998:17). where 40 million remain unemployed. 900 million o the world's poorest. as many as 150 million people were estimated to be living as expatriate laborers around the world.' In the global North.1 percent puny. existing on less than a dollar f a day and living in areas vulnerable to soil erosion. Migrant Labor in the Global Economy: Economic and Environment. with T anzania's 500. Vanessa Baird notes that "in countries where some o f the biggest fuss is being made about the influx o refugees.The Globalization Project: Disharmonies 207 in host countries. even though it has become the focus of cultural backlash and political fear campaigns. in 2002. and 25 mill on f migrants. desertification. re y It is predicted 1/101 environmental migration will double b the year 2010. There are 20 million refugees and 100 million i fficial guest workers. • 200 mill�on people who may f ace rising sea levels due to climate change.l Refugees In the early twenty-first century.000 in 2002 eclipsing the fugees entering the United States. increasing by women are the f 800. and ff 550 million people already su eringfrom chronic water shortage. who migrate from their homelands gulated eco­ because their natural resources have been destroyed by unre f nomic gr(JWth. whereas Asia and A the world's refugees. .000 Indonesian workers. who returned home. Baird (2002010). Asian f astest growing group o forrign workers. the Malaysian government expelled 400.

Now we want to channel part of that money for nroduC' CASE STUDY Sex Trade Trafficldng currency earner: Filipino overseas earnings are estimated to amount ��man in Women: The Global venus Human Rights in today's g bal market and the leadmg h uman rights violatio n. In the 1990s. and housing in lieu of public funding. contributes to curnent levels of global migration from overburdened cities to metropolitan negions as migrants seek to earn money for families back home. carpenters. 1999 o Sources: International Monetary Fund (2001). and President Fox commented..) The Globalization Project: Disharmonies 209 Labor: The New Ex p ort Just as money circulates the globe. where contractors organize the ebb and flow of for­ ��n . spurred by debt regime restructurings. Mexico.. along with foreign direct investment. receIves 5. Thus. then. mechanics. increasingly rural. thene was an today. a nation of 100 million. and parks receive the money use it to buy shoes or beans. modem world. Migrants recently invested Zacatecas.""" . this covers the costs of a medical check. Bangladeshi workers in Southeast Asia or the Middle East sent home $2 billion.7 billion. ColonialiSm propelled migrations of free and unfree people across the world. or maids). . or books tion for projects that generate jobs. "The families million in new roads. in 130 cOWltries as contract workers (seamen. is in the feminization of global migration: 75 percent of 400 million people ' nus pool of labor.'O Spurred by debt.2 T p 12 Developin g Country Receivers of Remittances. in addition to products. are now more important the masons.. peso for peso. Between 1810 and 1921. Mexico. schools. the I billion. and government clea rance fees. mainly to the One cont actor.. which has a population of America and the Caribbean received $25 billion in 2002 from remittances. part of an export·led deveJopment strat.' internal migration in the fonner nurd World of between 300 and Ouring the 1980s.. sources of finance than private lending there ' The Significance of the remittance stream has not been lost on Figure 6. I 2001. And Latin which. churches. two-thirds of Turkey's trade deficit was n u financed by remittances from T rks working abroad. labor export has become a significant home governments.." work overseas $5. clothes. visas. their children.. for example. The ing separation of people from the land is etched into the making of . there are plenty of unlicensed agencies operating also. Iabor. roads. perhaps. mainly Europeans. It is estimated that trafficking is the fastest growing form of bonde d labor . Not surprisi ngly.. . in Indonesian villages. The influx of foreign exchange not only supplies oil-nch Middle East. About 6 million FilipinOS. labor is exported. seeking investment opportunities." The government of the Philippines has a de facto labor export pOlicy. remittances finance schools. inunigrated to the United States alone. for example. nemitted by migrant workers for public works projects in their communities. a privately run � lUlling agency. egy. water systems. seeking employment opportunities." matching. remittance money supplements or subsidizes public ven­ tures. but in an era of structural adjustment and privatization. so labor increasingly circulates.208 The GlobaUzation Project (1980s. 34 million people. Estimates suggest that roughly 100 million kinfolk depend on remittances of the global labor force. much-needed hard currency.. Northwest Placement. Migration is of course not new to the twenty·first cen tury. I ' That is. The difference refugees and displaced persons ane women and children."'" unrelent­ the S III'f""" . World Bani< (20000). second largest source of foreign exchange after gannent exports. earns mone than $9 billion a year in remittances­ almost as much as India.000 pesos ($181)-the maximum allowed by the Labor Departmen t-from Filipino applicants on assurance of a Job. .

labor comes from Southeast Asia. about 30 million women and children have been trafficked for prostitu­ Human rights exploitation of trafficked people.000 in Berlin alone. Some des­ tinations are farming. a number that has tripled since 1970. are indentured. Pyle (200l!. are reportedly resigned to the explOitation of their nationals. open to uneducated women). and Africa (2. South Airica. for example. and often by parents seU their daughters to agents lor a cash advance to be paid off sex industry. and no recourse against poor employment conditions and low wages-which are determined by the income levels of the country of origin.3 percent). women are devoid 01 human tions inside their countries. fishing. the United States. each of whose ingredients maintains a singular tas te. 103). Karen Booth's use of the contradictory gender ideology in the nation-state system between "national mother" (women's political and "global whore" (women's value as constructed in the international market) is relevant to this impasse. with no civic rights. market staH labor shop work. because of the underground lifestyle 01 the women. or the Arabian Gull in the burgeoning sex industry by deceit or by choice (being a rela­ overseas. South America (5. human trafficking is the third largest illegal trade (annual profit of about $6 billion). domestic servitude.210 The Globali. mail­ . rights: They work as bonded labor are subject to arrest for illicit work medical or social services overseas. Research in northern tively high-income trad. Europe (7. Child trafficking already dwarfs the trans-Atlantic slave trade at its peak. maintaining a certain distance from the local culture. Governments in the migrant workers' home cOWltries in Asia. principally 60 percent in 1990). j" ) "Slaven in Ihe 21st Centun (200n8). Young women flooded into Bangkok from the Thai countrySide.3 percent). no choice of alternative jobs.ation Project (19805.i. are illegal residence.000 to 2 million women and children are trafficked annually and that there are about 10 million trafficked people working a t risk. trapped mg a variegated stew.000 Thai women working in the Japanese sex industry and 5. Many of these women would end up in Europe. this lucrative source tion and sweatshop labor. A common motive is relieving poverty and debt (especially now in the wake of the Asian financial crisis). In Thailand. "Latinos. inclividual women pay an work in the global agent's fee of around $500. is easy and widespread. by a magnitude of 10. Inte rnational labor circulation combines formal policies with decidedly informal working conditions. Booth (1998). About 33 percent of the population of Los Angeles County is foreign born. Workers in the Gull states.) The Globalization Project: DisharmOnies 211 ! I 700. International labor union organiza­ tions have been ineffectual." " The scale is large enough that immigrants Robert Reich comments that "the old American 'melting pot' is now cook­ retain their cultural and linguistic traditions rather than assimilate­ all over the world. The rise in trafficking is directly related to the global femin. seven days a week. 68. minority cultures are forming identifiable communities in their new labor sites. as the East Asian boom clisrupted cultural traditions and family livelihoods.6 percent). Asia (22. dependent on foreign currency earnings. especially as MidcUe Eastern states have united to suppress discussion in international forums of working condi­ In the United States.1 percent). given the scale of labor migration. Worden (2001). and because national governments have an interest in suppressing information about the sex trade to avoid adverse publicity. order brides. there were almost 100. Action against trafficking is difficult because of the coUusion between of the families who benelit materially from absent daughters and agents trad�. and are nation and public humiliation if arrested.14 Mexico (around and . cultural value as constructed wilhin the nation and community) and who constitute the majority of migrant labor from Asia today: Since 1990. From then on."" Increasingly. Migrant workers routinely lack human rights. By 1993. Australia. and the sex trade. Aiter drug smuggling and underground employers. restaurant labor. How can glObal human rights agencies address the trafficking tragedy when governments are reluctant to intervene against of foreign exchange into their national economies? SOllrces: mId gun running. Alternatively. SkrobQnek. lema Ie emigration took off in the 1980s. 800llpokdi. will likely be the majority by 2040. have no rights to ' forced to sell sex with no power to choose their customers or servia: targets of racial discriJJU­ remain at high risk of contracting HIV. who lack legal status and language skills. The inhabitants of tl1ese . This is particularly so for women. now 28 percent of CallJornia's population.za tion of poverty and the use 01 the Internet as a sex forum. looking lor income to remit to their villages. Evidence suggests that sex tourism to Thailand contributed to the demand for Thai women Thailand has shown that about 28 percent of household income was remitted by absent daughters. JallllUlkeero (1997:13-31. they reportedly work 12 to 16 hours a day. Migrant workers must surrender their passports on arrival.

Labor export arrangements deny rights and representation to the migrant workforce. The United States took a tum in this direction in 1965. it was 'vive la diff�rence' much of the time. after which families were aUowed to join the men. rooted in broad-based class movements and political coalitions more committed to assirnilation and the redistribution of resources. Their presence stems from a French policy to import large numbers of North African men for factory and con­ struction work from the 1960s through 1974. We had a day of couscous.u/ticul/ural effect. In the days of the development project. "In the 1970s and 1980s. drink committed. not individuals. Not AIgerian. down ghettos-built originally in the 1960s and 1970s to house imITli"raltl workers.. people aren't citizens. The race to the bottom is not just about wage erosion. the polled percentage of Americans objecting to immigration has almost doubled-from 33 percent to 60 percent I. commented.. J Informal Activity The globalization project is Janus-faced.. or Moroccan or West African. rather than revealing the cultural tensions . A principal of a Parisian school with a large immigrant population remarked. Now the pendulum is going the other way. Originally targeted at Muslim neighborhoods. and unrepresented. Why is it that representations of globalization use images of a homo­ geneous global market culture." France has more than 1. the propor­ tions were sharply reversed. The juxtaposing of distinct cultures in countries to which labor migrates creates this ". "During the 19509 there were nine times as many European irncnigrants as there were Asians.. However. when the Immigration and Nationality Act amend­ ments abolished the previous policy of organizing immigration according to the already established patterns of cultural origin. of one of the largest council estates. French origin. a new soft drink capitalizing on antipathy toward America's Middle-Eastern foreign policy. a heightened "nativism" is appearing­ a backlash response to rising economic uncertainties. It exaggerates the market culture at the same time as it intensifies its opposite-a growing culture of informal. Rampant street crime fans French fears. The label. . inclusion is threatened by separatist politics. Deteriorating economies and communities in the centers of the global economy spark exclusionist politics that scapegoat cultural minorities. CASE STUDY Multiculturalism and Its Contradictions arising from the inequalities through which the project of globalization is realized? 50Ilre. They're unrec ognised. ."17 However. But here. Jean-Mane Pen. No wonder they rebeL" Meanwhile. compared with 10 percent for youthS .. They don't know what they are. Yasser Amri. "Don't drink stupid.: Riding In France. in the 2002 presidential elections. FoUowing the passage of the new Immigration Act.) The Globalization Project: Dishannonies 213 . The circulation of cultures of labor binds the world through multi­ culturalism.000 banlieues sensibles ("sink estates") in which immigrants from a variety of cultures are crowded into high-rise. ) "transnational communities" have regular contact with their sending countries and other migrant communities through modem electrOnic communication and recnit part of their income to families left behind. Tunisian-born French entrepreneur Tawfik Mathlouthi has sold more than 2 million Mecca-Colas." refers to the 10 percent of the profits earmarked for a Palestinian children's char­ ity.5 million Muslims living in that country.. Henley (2003:3). in the context of economic: restructuring in the United States.212 The Globalization Project (19805. Unemployment among 20. It is also about growing intolerance for difference. In the pre­ sent context. but not French citizens either. a more inclusive attitude prevailed. the question of multiculturalism has been tested recently with the growing presence of the more than 3.. Mecca is now stocked by a major hypermarket chain in the northern suburbs of Paris. Arab and African imcnigrants and their French­ born children form an increasingly distinct suburban underclass in French society..to 29-year-olds of North African gin runs at about 40 percent. Muslims comprise a quarter of the total immigrant population (mostly from European countries). "It's the end of the republican ideal. a day of paella. a successful (1993). generatu:'g million votes for the arch-conservative National Front leader. we promoted multiculturalism. Since 1965. uruemembered. especiaUy among Muslims. the conditions in which labor circulation has intensified have made multiculturalism a fragile ideal. The French republic deals with citizens. Henley and V nsaRar (2oo3:3).

and 65 percent in Asia. on the one hand. which in turn is • Quite simply. that the system WilS not prepared to accept them. . the law began to lose social relevilI1ce. An army of servants and housecleaners. The scale of marginalized populations grows as peasants lose their land to commercial/export agriculture and as workers lose jobs through struc­ tural unemployment. For the United States. who "now inhabit a differ­ ent economy from other Ameri cans. as long as land is available. money." Casual labor has always accompanied small-scale enterprise and even large-scale harvesting operations where labor use is cyclical. the implicit legal di$Crlmination was not apparent. then. There is. electronic communication s. a question as to whether this informal culture is a real alternative issue of scale. the boundaries of the formal economy were identified and regulated by the state for tax purposes. 50 percent in Latin America. rural laborer or existing on the urban fringe. but it is not particularly connected to the �st of the nation. As long as this system worked. " 21 And there are those whom these circuits bypass or Indeed displace. street vending.secure rural In effect. development and marginalization go together. Economists make the distinction because their profession is defined by the measurement of monetary transactions con­ sidered to be the foundation of national accounting. the lines are drawn even more dearly. actiVity. convenient tool of state power (even if such measurement ignores and indeed marginalizes a substantial part of social activity). jobs and amenities �re available. Of course. or i t may depend on the context. on the other. Once the peasants settled in the cities. to clistinguish between a formal econ­ omy with its legal/moral connotations and an informal sector with its illegal Or immora l connotations. these peri-urban communities. Thus it was. so that informal­ economic activity or the formal concentration of resources in fewer corporate hands. routinely works "off the books. Agricultural modernization rOl1tinely expels peasants and n1ral labor from . often by design and certainly by cus­ tom. Between 1990 and 1995. as they are known . fax. riers were b eing erected a gain st them. however. or pursuing what are livelihoods. i of course.19 . they migrate to urban centers where. They are often intimately connected and mutually conclitioning.es. We continue to make the clistinction here because it helps to illuminate the limits of offi­ cial. With the rise of market societies. high-5peed transport) linking enclaves of producers /consumers across state borders. that more and more bar. with increases of 109 percent in Africa.'" With global integration. it will exceed 50 percen t. These are the redundant labor forces. on a larger scale. This culture did not just appear. Also. The migrants discovered that their numbers were considerable. they discovered that they must compete not only against people but al so against the system. modem. but they have always been incomplete and fluid. Many of these people increasingly live and work within corporate domains. Fasl World elite is linked by Jet. and possibly more rapidly . and to identify alter­ native. One source of the quite dramatic expansion of the informal sector has been the hyperurbanization in the global South. or smply an impoverished margin of the formal culture. R bert Reich termed this the secession o lite successful. U)at in order to survive. For example. a libertarian critic of development: deemed illegal economic activities. Who live in shantytowns and urban ghettos or . have been expaneling throughout the twentieth century: The urban South grew from 90 million in 1900 to 2 billion in 2000.) The Globalization Project: Disharmonies 215 ) or marginal. the marginals. formal development strategy. withdrawal This may be an from the formal economy in the countrySide may revive subsistence farm­ ing that represents an improvement in living standards over working as a . that they had to fight to extrac t every right from an unwilling establislunent. as thev hear on the radio and through migrant networks. One account of this trend is given by Hernando de Soto. performing casual and unregul ated labor. howeve r. for example. Peru's legal institutions had been developed over the years to meet the needs and bolster the privi leges of certain dominant groups in the cities and to isolate the peasants geographically in rural areas. The new. a substantial portion of labor performed across the world every day is unpaid labor-Buch as housework and family farm labor. working in coop­ erative arrangements. the migrants became informaJs. It is somewhat artificial. satellit e and fiber-<>ptic cable to the great commercial and recreational centers of the world. This culture involves people working on the fringes of the market. and in 2006. . that they were excluded from the facilities and benefits offered by the law. The global South's share of world urban population increased from 39 to 63 percent between 1950 and 1990. There are professional and man­ agerial classes who participate within global circuits (involved with prod­ ucts. southern urban populations grew by 263 million-the equivalent of a Shanghai or a Los Angeles every month. These trends ization stems from expanded are often connected.214 The Globalization Project (19805. informal livelihood strateg. where more than 50 percent of the population is involved in informal activity. mean­ � f Ing the top fifth of mcome earner s in America. the struct urally unemployed. Our point is that those who are bypassed or marginalized by develop­ ment often form a culture parallel to the market culture. In short.

m cost. W will e destabilized the world's population. If GAIT manages to impose worldwide the sort of productivity achieved by the intensive agriculture of nations such as Australia. One lacet is the industrial decay or downsizing that ." noting that living ) standards were lower now than they were 30 years ago " And former European Member of Parliament James Goldsmith reported the following to a 1994 U. World Developmen t Indica tors. Informalization Economic and environmental refugees enlarge the social weight of informal activities across the world. occurs as the global labor market comes into play The labor expelled in this process is quite distinct from first-generation peasants lorced to leave ic. . According to Arturo Escobar. and to import more than they export. but under the project of globalization.. the "current form of globalisation is ti'igl1. Middle-class people are now entering the ranks of the struc­ turally unemployed daily across the global North.'" This perception : underlay the assumpt s of the development project. by . . much of the global market depends on informal. many of these people are part of processes: the casualization of labor via corporate restructuring and the development of new forms of individual and collective livelihood strate­ governmental organization (NGO)-driven schemes. Some of these GATT refugees will move to urban slums. then it is easy to ca l cula te ConlWlllpUOI'! ("41 the mini. "Perhaps aside from usly China." Wormal activity has been viewed as an alternative society or set of social . from the trend toward open markets world-wide is the United mote where a huge inflow of capital has helped allow Americans to spend �e'Ved UN than they save. The latter have recently become the target of World Bank and non­ the global labor force. Senate inquiry. political participation infrastructure. (WIn) regime: The application of GAIT IGeneral Agreement on Trade and T ariffs) wi ll also cause a great tragedy in the third world. or l . Such negative descnption parallels common First W orld perceptions of lhird World people. women performing unwaged work-are per­ by plaMers as beyond the formal real �f official statistics and. o lnmm. Instituti ons rather than simply an invisible economic reality that is nega­ : hve or anbs!ate. .1 billion p eopl e in the world wl10 live from the land . where marginalization is a stru ­ Kahn reported from a G-7 meeting in Mexico in 2002.) The Globalization Project: Disharmonies 217 rather than loosening the international poverty trap.Ie.mu. education. The stale view of informals is negative by definition. and it continues to IOn . Given our definition. even if unaccounted for by government measu res­ in fact. I nformals-for �xample. But a large nu. . . rather than publ poverty. entrepreneurship. Another is the sheer c exclusivity of the globalization project.S. the only country that appears to have benefited unambiguo StateS. Modem economists believe that an efficient agricu lture is one that produces the maximwn amount of food for there are still 3.� have profoundly and tragically Figure 6. organization and political conscience.un5 capl t�. 2002. It is estimated that o that about 2 billion of these peop le will become red undant. non-European people often tend to be perceived by what they lack­ . it has some different lacets. unproductive. Informalization involves two related circulate the world. . 2002.216 The Globalization P roj ec t (198Os. tural outcome of the shift toward privileging private.mber of them will be forced into mass migration . 1994-1999 Bank."" Soon after.. a trend that grew Out of successive development failures. gies. and rationality. the lor issued the Least Develop ment Coulltries Report. Joseph investment. which view such informal networking as social capital to be "developed. anticipating the mass displacement of peas­ ants under a W orld Trade Organization • ShI." Informalization (understood as a social movement of sorts) reputedly first defined the con solidation of informal activity in Africa in the 1970s. using th e least number of people. unregulated labor. Informalization is not new.3 Source: World lncome of Poorest 20 Percent of Populations of Seleded Countri es. claiming that poorest 49 countries. � efuunon. which seeks profitable outlets and shuns the land.

000 tons of household garbage daily. depriving the state of the revenue that traditionaUy financed its anti-people and anti-peasant development policies. such that 68 percent of families in Dar In addition to the marginalizing dynamiC.) The GlobaUzation Project: Disharmonies 2J9 prejudice understanding of this exploding other world. For Fantu Cheru. the cultural weight of informalization led to the description of the informal economy transcends the notion that informal­ ization represents simply an antistate movement." where conunWl. Hbraries. Meanwhile. Resolvmg And wifery and craftwork are revived. O'Meara (1999:34). and prawn farming). traditional resources such as . are instead enabled to buy it. g. The discov­ ery of survival strategies among the poor and dispossessed has become an academic industry. pastry selling. the Egyptian government. roads. .g. to establish projects to conserve the environ­ ment. outside of official corruption.'ducers and workers consistently bypassed by state policies. whose microenter­ prise recycles 3. The phenomenon of informalization combines individualistic market economy behavior as well as "moral economy. donors. a major economic significance. " He finds that "development castaways" constitute a proliferating culture of alterna­ tives. as a set of civil rela­ tionships? And is this a new form of developmeIlt? Sellrces: Tripp (I 997:l3. ethnically based weUare and burial societies that fonned in Dar es Salaam in the early 1900s to help new migrants adjust to city life. In Tanzania. which acknowledged the legitimacy and social necessity of informal activities.."" 1991 Zanzibar Declaration. define the values shaping economic activity. and to raise funds for flood relief and other such causes. The sphere o( the informal has. informalization as more than a passive outcome of state or corporate restructuring. to disburse soft loans 10 women's groups engaged in business. and clinics. .. she focuses on the creative ways in which Africans have responded to the failure of development states. to new activities-hom street vending. often undertaken by women. Viewing Is it possible to argue that informalization not only shapes some aspects of the formal economy but also reshapes the state. . It is charac­ terised hy a neo-artis. These new associations resembJe the early. [van Ulich. the withdrawal of African peasants from a failing formal economy. incontestably. The positive . now grow their own vegetables and raise livestock. rather than markets. an NGO. to provide solar electricity and water. comprehensive strategies of response to the challenges that tife poses for displaced and uprooted populations in peri-urban areas. . Urban farming has proliferated in the es Salaam. In some cases. dry cleaning. 1 27. in flour milling. economic development has always meant that people.ity inter­ ests. instead of doing something. 188). works in Cairo with informal-sector operators. creating jobs for 40.-mal activity Ihat generates a Jol of employment and produces incomes comparable to those of the modem sector. and hairbraidin mid· In addition to these new resources.' exporting seaweed-have sprung up. catering services and other activities that had once fallen into disuse. These are people tom belw�en lost tradJtion and impossible modernity. informaliution has gained prominence because people are disenchanted with the economic models associated with the development and globalization projects. represents a "silent revolution. orphanages. traditional caravan trade across borders.000 people-the goal being to construct partnerships among poor com­ munities. notes that "up to now. They used these associations to build schools. Noncompliance with the state has generated new institutional resources in Tanzania: Hometown development associations became visible in the late 19805 as urban dwellers sought to provide assistance to the rural towns from which they originated. including paving taxes. (00).29 Serge LaTouche views the informal as . for example.218 nle Globalization Project (1980s. and aJter­ nati ve trading organizaUons as a tool for development. Self-<lefense "has required the resuscitation of rural co-operatives. exacerbated by more than absence of food subsidies. Activists are finding these communities to be SOurces of hope rather than despair. except that their focus today is to assist people in their rwal towns and villages. informal businesses have become so successful in monetary terms that they have moved into the formal sector (e. the private sector. CASE STUOY lniormaliution versuS the African State: The Other Side of "Globalization" Aili Mari Tripp views the elaboration of new rules of the game in the bur­ geoning informal sector acrOss Africa as a form of resistance." Exiting was the choice for p '. Tanzania. Community and Institutional Development a decade of structural adjustment.

and Japan (the "triad' )-more than one-third of such investment worldWIde. There are only 18 mainline tele­ phones per 1000 people in Africa. The process poses great challenges and tensions for everyone.041 to 4."" Many different strategies contribute to the culture o the new co"""ons.) The Globalization Proj ect: DisharmOnies 221 < I practical problems of living spaces and daily life has all sorts of economic ramifications. W day care. and . WI th borrowed funds earmarked to promote exports to service ." where the daily caloric intake is below that of Mexico or China by a third or more. Second. million people. one way or another. and almost infected. re unable to subsidize sectors and communities On the margms. a f church. In a society only two decades away from military rule. . . amount spent on health and education. Poorer states. informal jobs rose at more than twice that rate. 11. 35 are sub-Saharan African. and "340 social inventiveness arising on the fringes of ind ustrial society and draw­ ing on traditional collective interaction to allow people to make ends meet. and every day.000. and in 2003. so much so that the practical importance of the "informal economy" is no longer a matter of debate.000. more deaths than those in recent wars. compared to a world average of 89 in 1. total debt servicing amounts to four times the . Now the margins are coping with the difficult task of relocating these people. Mexican intellectual Gustavo Esteva observes. tuberculosis." Of the 45 countnes at the : bottom of the Human Development Index. Cross­ border investment continues to concentrate in the markets of the three superregions-the United States. .000 more cases are diagnosed. ." Among the poor in urban Mexico. Only 58 percent of the population have access to safe water. or half the population." And in Brazil. Europe. The rate of illiteracy for people over 15 is 41 percent.l(J 5 read as more and more regions across the world decay from neglect.220 The Globalization Project (1980. strategies in already overburdened cities. volunteer organizations increased from 1. mal employment rose by 3. In South Africa. "We understand that we have a role to play as citizens. Nrica has been described as a "lost continent.e neglect has two SOurces. addressing adult literacy child shelters. and the sur­ epidemic that is devastating lives and the continent's financial resources. 16 percent in South and Southeast Asia. Some 50-80% of the popuJation in the lUban areas of these countries live in and from the infonnaJ. The "lost decade" intensified pressunes to consolidate new livelihood making tati on. the pre&­ ident of the V olunteer Centre of Silo Paulo remarked. proliferates: Between 1988 and 1998.3-t whole and 567 for high-income countries. working poor volunteerism. or to refunction­ alize and reformulate modern technology. 36 million people are infected with . 50 iniormalization and the culture of the new co mmons may 3 percent in latin America .000. 20 percent of adults are has lost 12 million people from AIDS. debt.)8 CASE STUDY The Global AIDS Crisis . . The "crisis" of the 19805 removed from the payroll people already educated in dependency on incomes and the market people lacking the social setting enabling them to survh'e by themselves. live on less than US$1 per day. networks among friends and neighbors to build their own cheap hous­ ing. whereas for. there were approximately 15 million orphans. compared with 146 for the world as a Peasants and grassroots groups in the cities are now sharing with people forced to leave the economic centre the ten thousand tricks they have learned to limit the economy. vivors confront pneumonia. and that's a new thing for Brazilians. but it also offers a creative opportunity for regeneration. In :ub-Saharan Africa." However the global North immune to this fiscal stress-the United States continues to is not confront its rising debt burden by cutting social services. often organized by the collective pooling of resources to acquire land. Africa Growth and Marginalization The globalization project involves a growth/ma rginalization dynamic. Presently about a third of urban jobs in . In Latin America. shelter. electricity) was one widespread strategy for establishing Asia and Latin America and more than half in Africa are estimated to be infonmaL And it is estimated that 90 percent of Eastern European COm­ puter software is illegally produced. HIV 70 percent of them in sub-Saharan Africa. . First is the incapacity of debt-stressed gov­ ernments to support communities that do not contrIbute to the global eaker regions of the world have no real channels of represen­ project. malaria.. and basic publk services (water. the hallmark of a liberal market regune IS polanzation."" Child mortality below age 5 is 174 in 1. and the Elliopean states have diminished their social contract in preparation for monetary union. to mock the economic creed. and an exploding AIDS Worldwide. And they attract attention from investors only by Ihemselves weaker through further structural adjustment. !t.2 percent annually in the 1980s.

Ayittey (2002). Ethiopia. while profitable health problems (e. should intellectual prop­ erty rights be used to subordinate public rights to corporate rights? SOli ret$. Conditionality included demonstrating six years of prudent fiscal management.). the Treatment Action Campaign (TAC). 5tllnrl (2003:21). reducing adult life expectancy and its role in generational cycles of caregivers and producers within families. but Africa. considering them to be safer. citing infringements of the WTO Trade-Related Intellectual Property Rights (TRIPs) protocol. 2000:14). . and lndian males buy sex with younger girls. to act with courage. GlaxoSmithKJine. . Large countries. Elliott (2001:12). At the national level. political. De Wnnl (2002:23).e Carre (2001:1 2-13). This "global whore" syndrome is the double stan­ dard by which patriarchal states (fostering a paternalistic "national mother" syndrome) ignore the needs of women who (are forced to) work in the sex trade." After a three-year struggle. and HIV/ AIDS. obesity is the new El Dorado for the pharmaceuti­ cal industry) gains most attention. A loophole. only 10 percent of the annual global health research budget targets diseases such as malaria. and lndia). which account for 90 percent of global health problems. and AIDS impoverishes many of its victims. l. In Calcutta. MMecin. At the tum of the twenty-first century. and 6 percenl in Zimbabwe.. In times of health crises. and military structures. Thailand.g. Argentina. 7 percent in Zambia. comprises just 1 percent of the market for the big four: Merck. Guardian Weekly (November 21-27. Drug company average profit margins. or indeed at any time. failure of this injtiative to spur growth or relieve poverty led to the Bank admit­ ting failure to make Africa's foreign debt "sllstainable" and to the G-8 .OOO-beyond the reach of a large proportion of HlV carriers in the global South. Doctors Without Borders noted that U. targeted 40-odd countries. condi­ tions that countries first prove public health needs would severely limit the utility of the agreement because of the daunting bureaucratic proce­ dures. Not only were commercial drugs largely developed with public funding and then patented by firms that spend twice as much on market­ ing as on research and development. B.$10. Egypt. Bootli (1998). allowing countries to manufacture or import generic drugs for national health emergencies." In five of the world's most populous nations (Russia. The Heavily Indebted Poor Countries (HlPC) debt relief package.s. are one of the highest in the world. Governments individualize the problem to homosexuals or to female promiscuity and focus on preventing men from being infected. Nigeria. instituted by the IMF and the World Bank in 1996. tuberculosis. accused the Mbeki government in 2001 of "failure .S... Allman (2oo2:AI2). Sans Frontieres Web site (www.msforg). and Brazil. However. which has 80 percent of the world's AIDS patients.cker (2003:14). 32 01 which are African. social. South African men believe AIDS is curable through sex with virgins. as follows: 14 percent in Kenya. projected negative impacts of HlV / AIDS on the gross dQmestic product (GOP) of selected countries a. was ratified by the WTO in August 2003. Perfez (2001:Al!. Brazil has a model public health infrastructure geared to delivery of medicines and educating people how to practice the triple therapy involved. China. such as India. which guarantees patent protection for at least 20 years. with comparatively little financial aid. humility and urgency.000 to $IS. The typical antiretroviral AIDS drug cocktail costs U. Pfizer. Groisser (200l:5-{. manufacture cheap generic drugs (around $600) to make med­ icines affordable. the rapid spread of the HN virus has been declared by the United States a security threat as it could harm national economic. perhaps instnunentally. Meanwhile. But these practices are challenged by pharmaceutical TNCs. more than 30 percent. and Eli Lilly.222 TIle Globalization Project (19805. 39 pharmaceutical transnational corporations (INCs) were shamed (largely by the mobilizing efforts of TAC) into set­ tling a suit they brought against the South African government to prevent it from purchasing brand-name drugs from third parties at cheapest possible rates. 19 percent in Tanzania.. African co�tries have submitted to structural adjustment programs Over the past two decades. In South Africa.) The Globalization Project: Disharmonies 223 i ) The AIDS/ poverty cycle is vicious: The erosion of subsistence agricultull! removes protections against hunger. UN Secretary-General Kofi Annan calls. Cmlrol lntelligence Agency (2000). poverty renders the body more Sus­ ceptible. challenged for several years by the companies and the United States. the state absolves itself from responsibility for infected girls sold to trafficking networks. for corporate donations: "As AIDS creates more poverty and deepens inequalities. Responses to AIDS are instructive. which spear­ heads the campaign for affordable medicine for HN-related illnesses U0ined by Medecins Sans Frontieres and Oxfarn). it fuels the growing public back­ lash against globalization.

" By 1997.. . . nations. . The globalization project intensifies a political leg. ."" Capital policy. [while simultaneouslyl instituting trans­ parent legal and regulatory frameworks for financial markets.. .l s tability." from Iiberaliza­ lion to peer review of human rights abuses and corruption. requiring that aid be spent on education and health (although without the ability to ensure compliance) " Meanwhile. fore­ . the social exclusion of the vast majority of its peoples constitute a serious thre.� +-------��'� +------7--� shadowing the formation of the African Union in 2002.t to glob .. 0e<C7. Muna Ndulo argues that since Africa will be not able to deliver on the governance or peer review issues. Citing the failure of African COUIltries shorterung the six-year demonstration.. Global governance erodes national sovereignty via foreign ownership of essential public resources.itimacy crisis as citizens lose faith in their government or its policies.. 1990-2002 ­ w .) The G lobalization Project: Disharmonies 225 p ..' ) endemic. with regular appeals to UIlknown non-Africans (including this author. offering Africa to the global elite in a poverty allevia­ tion strategy: The continued marginaUsation of Africa from the globalisanon process and . We readily admit th. they compromise their sovereignty and their representative role in transferring national powers upwards to the multi­ laterals. the World Bank's Development Report was highlighting large multilateral aid flowed quickly into Asia following the 1997 finan­ states to condemn the excesses of the Mugabe government of Zimbabwe.. in response to complaints by African politicians that cial crisis.224 The Globalization Project (1980s. £MIton . . www. the IMF and World Bank admitted that their assistance to Asia reflected that region's greater Significance to the global financial sys­ tem.avert. who rejects the money) to participate in multimillion dollar capital flight schemes. The locomotive for these major advances is the highly indus tri alised.unicef. not of insufficient globalisation. continues this in their respective cOUIltries .so. erosion of infrastructure and institutional capacity." ofl Nevertheless. and rising unemployment " initiative agreed to by the Washington Consensus in 2002. NEPAD continues to promote neoliberal economic policies.. an African outcome through policies to shrink states that lead to neglect of educa­ rights flight from every African country to open up its financial markets is . � . AU these trends erode the social contract. � t-----�----��-I Micl* hII " Nor1I> _ Ea . despite the Bank's contribution to this tion. NEPAD commits African states to "good governance. .. '''Western cOWltties have a perfect excuse now for not delivering on NEPAD. because of the drain from ever declining prices of raw malerials (Africa's main exports). crippling debt repayments and profit repatria tion to transnational corporations.t globalisation is a product of scientific and technological advances.4 Sources: w w Numbe( of People with HlY / AlDS. Patrick Bond notes."" Legitimacy Crisis and Neoliberalism As governments incorporate mechanisms of global governance into their administrative practices. urging African leaders to promote "democ<acy and human The New Partnership for African Development (NEPAD).htm (2002). wough the undoing of political coalitions formed around national development projects. whereby governments commit to protect civil rights the decay of the African state.-t.. ."" Figure 6. � Mn:. So/t>.m .org. many of which have been market­ driven . as a condition for financial support from the global No(th. .org/sowc02/g32. chaired by South African President Thabo Mbeki. to the dismantling of social services pro­ vided by governments to their needier populations. "Africa's continued poverty ('marginalization') is a direct outcome of excess globalisation..

given the Asian experience. independence abolis hed racial discrimination and aifirmed civil freedoms. but it also divid ed power within th� new nation-states according to the artificial tribal con­ structs (ethnic.. the capital of Zaire. European colonization combined forms of urban power dlCectIy excluding natives from civil freedoms on racial grounds. spending in the Tltird World rose almost three times as fast as in the World. Of course. so to speak." But spending decisions reflect far more than the diverSIOn ?f resources. the World Bank discovered the importance of the strong development state as the secret of the East Asian "miracle" and titled its 1997 World Develo Sub-Saharan Africa: . They have profound ltistorical roots in the disorganizing states struggled to develop coherent societies and economies U1 and intimid ation of their subject populations. welfare). urban bias channeled wealth away from the rural sector." Such bifurcated power. In 1992. for example.. And there will be more of this in the so-called "age of terrorism. compromising government legitimacy. Of course." a global order dependent on sustaining natural resource exports to. between the centralized modem state and a "tribal authority wltich dis­ pensed customary law to those living within the territory of the tribe: conditioned the current failure of African states. Kinshasa. Meanwhile. TItis is the pOlitical side of the globalization project. the First World. acted as an 'overwhelming suction absorbing all attainable rural resources as well as whatever might milked from foreign donors and investors.. enriched by foreign investment in resource extrale­ tion. Africa is not Asia. When Africa� goverrunents were compelled to shrink the state via global governance. through aid packages from the cold war superpowers through choices made by military or authoritarian regimes."'" Mililariznlwl1. inflating public works in the cities at the expense of the agricultural sector." Citizens disengage from illegitimate political systems.nc e in the 1990s. education. i t was amplified in Africa by state patronage systems constructed during colo­ nialism on the basis of artificial tribal hierarclties. a "giant spider at the hub of a subcontinental web. as well as a "tribaliza­ lion" of politicswltich reasserted itself wilh a vengea." This structure of power has facilitated the exploitation of areas by urban elites. smuggling.) The Globalization Project: Disharmonies 227 . diverted funds from developmental programs. miJlitaJf'/. East Asian development states. militarization of societies has vast consequences. unemployment protection. Governance Reforms Governance reform is a key consequence of structural adjustment. that sus­ tained capitalist development in litis strateg ic region. matured under the conditions of the debt regime . . and bartering. and gov­ ernments embracing the development project privileged urban-industrial sectors. caUed by Gharuan p".226 The Globalization Project (1980. Legitimacy is always compromised in states that rule through coercion rather than consent. and emerging markets for. regional) established during colonial rule. African slates inherited complex power structures from the colonial experience. While urban bias was common across the Third World. and 8 of these were among the world's poorest nations. Subsequently. religio us. the growing scawity of resources became the pivo t on pment Report "The State in a Changing World. the decaying From Crisis 10 Slistainoble Growth: "Africa needs not just less government by better governrnent-governm ent that concentrates its efforts less on direct [economic] interventions and more on enabling others to be productive. embedded in the norms of Confucianism. BasIC human and potential civil rights suffer in states whose regimes exercise African state was identified as a problem. African geopolitics and ltistorical cultures differ mark edly. Military aid protected this order. the Tltird World's share global income stayed below 5 percent. rested on a recip­ rocal authoritarianism. of course. Between 1960 and 1987. then coercion (and military aid) was more readily justified. For example. This prescription was articulated in the World Bank' s influential report in 1989. where neoliberalism overlays and enlarges often despotic (and ethnically based) rural social control. pursuing informal activities such as rency exchanging. for one thing. as the Tltird World more than doubled its share of global spending-from 7 to 15 percent. If governments were balancing their developmental needs with secur ity legacy of colonialism."'" The goal is to use liberal ization to eliminate the one-party state. With decolonization. releasing entrepreneurial forces at aU levels of society. In Africa. as well as forms of rule in the count ryside via a reconstruction of tribal autho rity to rule natives indirectly. legitimacy problems are not the creation solely of the glob­ alization project."" In that report." The VUlnerability of African politics stems from inheriting a centralized state and its patronage networks (common to aU states). 18 Third World devoted more to military spending than to their education and health gets. carried into the postcolonial era when independent needs in a hostile world. and development discourse routinely forgets that cultural and historical circumstances make a world of difference.irlentj Rawlings the "culture of silence.) and social entitlements (health. This view.

and the lbo. In this way. early power in and administering nationeStates with artificial political bound­ The African one-party state arose out of the difficulties in securing of chiefs. and roads. 6 Mobil. He argued that a multiparty one-party state by another name.zed locally to bring local concerns into the national arena-was viewed by critics as a . who took power at the end of decades of bloody underestimated the corrosive individualism of agricultural moderniza­ tion. been segmented in ethnicized tenns. each of which have Nigeria. leading to ethnic conflict. because power hierarchies and political identities are structured in mines a politics of inclusion that is associated with Western liberal terms. Per capita income is now one-quarter of what it was government and foreign oil interests and demanding compensation the region and his Ogoni people.rook (1995:93-94). In Delta (population of 7 million) on the grounds that a developing civil war in 1986. 1999:28-29). and hierarchical precolonial stateS. Chevron's worldwide revenues of $30.. Texaco.titiOl. nation-state lies a primordial tribalism. a In short. as the following case study suggests. Nyrere (Tanzania) argued that the Western multiparty system would be Nyrere's attempt to base the village level Tanzanian socialism on a collectivist ethic of self-reliant development at Related to these historically constructed fracture lines is an elelmeJ"W bated by the exploitation of the south's oil resources by the north."" Reportedly.228 The Globalization Project (1980>. A6. the Yocuba aries drawn up in the Berlin Conierence of 1885 and then reaffirmed in "African socialist" Presidents Leopold Senghor (Senegal) and Julius 1963 by the Organization of African Unity (OAU). but the political values brought to the table are often irreconcilable. development. which lacked Western class divisions. and other Western oil companies extract oil govenunent role in the absence of state inveshnent. It is to say that historically . any different? exacerba ted by the impact of globalization. with mOre than 250 ethnic groups. has three dominant distinct political practices. while African societies are divided vertically. And these generals have not reinvested profits in the pendence in 1960. nus is not to say that beneath the veneer of the erodes and resources disappear ensuing conflict takes ethnic . electricity hospitals. . Mobil. Nigerian writer Ken could attempt to secede. Shell. like the then-Republic of Biafra did in 1967. managed to defy international pressure for many years that made "aid' contingent on democratization efforts. When political billion in 1998 matched Nigeria's GNP of $30. at least. ex"eel': oil rents have financed a string of corrupt generals since Nigeria's and ruled by force ') W estern-oriented states that had no such rural community-based vision Uganda's Museveni.. divide along tribal lines. ties: the Hausa-Fulani. Chevron. and shared power with.7 billion in 1997 (one of Africa's biggest). the Yocuba. along fixed tribal lines. Why should African states be and historical layering of race and ethnic political relations. doms where monarchs were elected by. extent that a politics of ethnic identity governs negotiations. Shell. industrial societies with fluid class divisions. The fate of this one-party state was different from that of the (lijaama) overreached itself in cural resettlement and the 1980s. linking it to exploitation by the Wiwa was executed by the regime when he protested southern internationally condemned incident in 1995. and Chevron. Onishi (J998:Al. At that time. turned. bureaucratic. now play a de facto frOm the Delta. which is how the tragedy states have African politics is often presented. he also rejected multiparty systems. ethnic identity organizes political conflict and racy. to forms of social organization. therefore.) The Globalization Project: Dishannonies 229 t ) which political conflict. and the lbo in the south practiced decentralized and eg"litarill! unity within the nation-state compromised by interethnic cOlmp"." organi.'" Museveni's solution-"national resistance councils. The Hausa-Fulani in the north have roots the west have a tradition of loose coniederation among centralized autocratic. CASE STUDY Identity Politics and the All modem states embody historic tensions between formal secularism . division of Nigeria into a Muslim north and a Christian south. for example. not only is cultural and polliticaJ ethnically divisive and inappropriate to the consensual African context. Loea1 movements demanding compensation from these fums have managed to involve them in financing basic forms of community development such as ntnning water. viewing them as products of Western system may. represented in racialized and/or tenns. Cohen (J998:Al). which are Fracturing and Underdevelopment of Nigeria Sources: Sand..

Sub-Saharan Africa struggles with enonnous dilemmas. consisting of "interna­ tional refugees" and "internally displaced persons. Conflicts between the Tuts.s. These Jines often become the pretext for and the vehicle of civil wars and ethnicized struggles for control over national resources-as evidenced in the implosion of Rwanda and Somalia and the breakup of Ethiopia in the mid-1990s. From withill. ) In fact. Here. some states to maintain any internal authority especially in a world where global forces are nOw considerably more selective.s. democratizing trends are complicated by internal conflict a10"8 protective ethnic Jines. the total value of finan­ ciaJ transactions is double that of production. cuJminating in the massive "ethnic cleans­ ing" of Kosovian Albanians. Angola participated in a civil war in the Republic: of Congo." Loss of cohesion is not confined to Africa. In 1993.$2 trillion circulates dailv. the one-party state with its rule through patronage degenerated in the lost decade of the 1980s into what is termed predatory rule. and Hutu groups in Rwanda escalated with the intervention of Uganda on the side of the former ethnic group In 1994. cnS1S has become part of the landscape. Namibia. The United Nations is assuming an expanding role in policing the world.5 percent 01 foreign exc�ange transactions is speculative.rting economic oppor­ tunity. was the arche­ typal predatory ruler. Spreading civil war signals the inability of . critics argued that the Kosovian conflict was a threshold in constructing the discourse and military actions underlying a new world order. Although economic and pOlitical power has been centralizing in the hands of transnational institutions. Angola. with President Kabila allied with Zimbabwe. drawing inspiration and example from the collapse of the Eastern European one-party states and respond­ ing to governance pressures from the global managers. saw the North Atlantic Treaty Organization (NATO) take matters into its own hands (without consulting the UN Security Council) and organize a bombing intervention against the Serbian leader. say. sub-Saharan African states experi­ enced destabilizing forces from within and without.230 The Globalization Project (1980s. Fin ancial Crisis In a world in which 0.rtifestation of the loss of political cohesion of some African states is an exploding refugee population. supported by the surrounding states of Rwanda. President Mobutu. they were uninvited. From wilholll.5. Rwanda. As the twenty-first century arrived." There are indications that African boundaries are no longer sacred that intervention in states such as Congo. which became Congo.56 Mobutu was over­ thrown in 1996 by a Zairian Tutsi rebellion led by Laurent Kabila. Since the same interventionist logic has not been used on behalf. Uganda. and Chad against eastern rebels supported by Uganda and Rwanda. of Z<line (now the Congo). and Ethiopia. In the absence of a functioning government. of the Kurds in Turkey and the Tibetans in China. Congo was again the site of intervention from six neighboring states at the turn of the century. where the state becomes infonnalized and power personalized in a dictatorship built On systematic extraction of resources from the society for enrichment of the ruler. democratizing trends spread. as economic conditions deteriorated with little relief from structural adjust­ ment. With these destabilizing movements. The export dependency of African states handicaps their ability to maneuver in a technologically dynamic global market. But with the demise of one-party rule and in the context of decli. and Angola. among others. on the grounds of protecting human rights. further global governance mechanisms have come into play. "human rights imperialism" is used to bring rogue states under control and/or to assert geopolitical power" The United States used this pretext to invade uaq in 2003. Uganda. the Balkans conflict. as economies stagnate and political refoalll destabilize one-party states. President Milosevic. One dramatic ma. however. in 1997. in which tural adjustment fans social and geopolitical divisions over d"'indliJ'li resources. ar: d 97. and Uganda have assisted rebels in the Sudan fighting a civil war against the Islamic regime. but the UN Security Council approved the action on humanitarian grounds to stem the destruction of civil war. also claiming the right of preemptive strike against a state deemed threatening to U. national security (broadly defined given its depen­ dence on global resources such as oil and global markets). military power has remained at the state level-whether held as a monopoly of the state itself or subdivided between warring factions within the state. i t is not surprising that financial . and Angola intervened in Zaire. U. may draw into an extended military contest over boundaries. In 1999. amassing $4 billion (the equivalent of Zaire's foreign debt at the time) in foreign bank accounts.) The Globalization Project: Disharmonies 231 . The divisions often express themselves in ethnic conflict is externally supported.59 Management of financial crisis . marines landed in Somalia. with its wealth of na""'" resources and its implications for geopolitical security. State legitimacy crises have deep roots. African states broke with their initial (OAll) noninteria­ ence agreement and entered into a pattern of intervention in neighboring states. In 1996. Eritrea.

where currency traders continuaUy evaluate financial implications of national policies. as the lMF actually admitted. And they do this in real time. Arguably.ti. The structural adjustment of scores of states was to be proving ground for crisis management on a broad scale. pension. leapfrog the normally long arduous course to advanced country 10 the 19905. 10 the 1990s." of "fasHTack capitalism. this episode also revealed that the instability of global (finan­ cial) integration is triggered by politics. but mainly by huge infu­ sions 01 foreign capital.60 The could . speculative mergers. First.232 The Globalization Project (19805. • CASE STUDY Financial Crisis Releases Indonesian Democratic Forces Globalization can unmask patronage in development states.rk'!180 The Mexican (1994) and Asian (1997) crises revealed the instability short-term lending from portfolio investors looking to profit from ebullience associated with NAFfA and the East Asian miracle. But. a bad th ing (in destabilizing/polarizing societies). achieving very considerable interaction between the domestic financial market and global financial markets. It may be that the IMF gained more power to shape 1odonesian economic policy through debt restruc­ turing over time. real estate schemes. states allowed their currencies to float with the dol lar as a device to attract foreign capital but exercised no control over the clisposition of the capital inflow. lively. so the possibility of financial crisis is ever present where financial institutions are deregulated. mutual. Second. tourism. . and intensified natural resource extraction. Again." Walden BeUo observes. bringing down the military regime. At the turn of the twenty-first century. crises were triggered by private borr<1Wing via capital account Hh"ul. or both? So'''ces: Erlanger (1998:A9).esi- By integrating money markets. the attraction of fundsf oll<1Wed financial lib. reI. This presents a puzzle: Is the subordination of national sovereignty to global financial markets a good thing (in flushing out corrupt rule). illusion that propelled the advocates of this model was that countries status Simply by maximizing their access to foreign capital inflows.eraliz. . but its gravity outweighs its frequency. the 1ocior. A democratic opposition mushroomed.) The Globalization Project: Disharmonies 233 II ) has become routine. and COt-poralli funds that they managed. firulllCi� liberalization. As soon as currencies tumbled late in 1997.'OSIIIIi democratic forces. The recent Asian crisis "marks the unraveli. which encouraged doser financial integration of money ma."L lion. as in the case of T aiwan and Korea. the 1997 Asian regional financial crisis brought IMF reforms. as an estimated 80 percent of privatiu­ tion contracts went to the president's children or friends. as a mass movement successfully challenged the military regime and its neoliberal project. with massive currency sales stimulating capital . domestic savings and investment. economic integration) encouraged institutional investors target the Southeast Asian markets and their high interest rates as SOL'lCESd quick yields on huge savings.. The regime of the 1980s was a series of multilateraUy organized bailouts banks as a result of a crisis of government borr<1Wing in the then Second Third Worlds. as weU as a drastic reduction in living stan­ dards. This episode suggests that the negotiation between states and global man­ agers may have unintended consequences. Sanger (1998:AJ. chaUenging General Suharlo's patronage networks. because it privately financed. the crisis was managed to recover the the banks and institutional investors. The mechanism to achieve this was to Liberalize the­ capital account as fully as possible. who maintain the "information standard" on states' financial health for global IIwestors-in this case. The deeper reality is that vullr"""bI states (with weakened currencies) end up absorbing the crisis. This model was one of high-speed growth fueUed. The tolerance shown by the BreHon Woods tutions toward the accelerating foreign debt was. its negotiating posi­ tion may have worsened the financial crisis because speculator fears (of the IMF withholding funds and of domestic social instability) under­ mined the value of the rupiah." The increasing fragility of Southeast Asian debt eventually unnerved the currency traders.. as in Mexico. golf courses. the classical NICs or newly industrializing countries. 10 the AsijlO case. 10 each case. which found its way into property devel­ Opment.ng of a model of devell_ ment. financial liberalization rendered the global financial system more vulnerable to financial/currency specula­ tion . the stepped in.ents olf tli G-7 citizenry's savings. Changing balances of political forces affect stability and perceptions of stability. because the crisis implicated broad s"l':m. OW. not principally by state experienced a seismic shift. as the rupiah (national currency) lost three-quarters of its value. government. arguably. structural adjustment intensified cronyism. structural changes in global markets (privatization.

said the fol­ lowing about the IMF's Asian bailout: "The IMF deepened the sense of panic not only because of its dire public pronouncements. imposed through the financial markets via structural adjustment conditions. the notion of national responsibility for sound currencies is contradicted by unregulated currency speculation and then invoked in crisis management. there is no more need for a showcase of develop­ ment. but also because its proposed meclicine-high interest rates. budget cuts.1 The globalization project. By the 1990s. who experienced a dramatic reversal of living standards---as a Con� sequence of financial transactions and speculations against their national currency for which they were not responsible. They are linked. the legitimacy crisis of state organizations. About 18 percent of the GOP of these countries vanished. None of these is unique to the global project. dollar) are more equal than otherS." In the development era. . Jeffrey Sachs. These governments rarely move without consulting the IMF staff. Gros oguc. But in 1995. in the name of financial orthodoxy. Market rule." Jeffrey Sachs observed. . through structural adjustment. the institution of wage labor is undergoing substantial Change across the world. Was South Korea. the rMF is insinuated 1. but wage labor is also displaying a casunlizing trend." where some currencies (e.e. the U.S. Washington consensus rhetoric about its origins in "crony capitalism" exploded the Korean model once and for all. during the 1980s. The technological shedding of labor and the downsizing and stagnation produced by structural adjustment programs expand the infor­ mal sector. they risk their lifelines to capital markets. requires management of national macroeconomic policy under IMF "trusteeship. being four dimensions of a single proce�s of global restructuring affecting all countries. South Korea was the subject of World Bank shifts of perspective On the question of managed capitalism verSus free market poliCies. Not only is wage employment contracting. . and financial instability. a proponent of free market "shock treatment" in post-<old war Eastem Europe. which conferred on them First World status. even establishment voices acknowledge the risks. Mexico's admission in 1994.g. id.62 The lJv1F-supervised devaluation of Asian currencies. some states must pay for the casino-like movement of short-tenn funds among national markets in search of quick profits.l (1996). the Bank was presenting Korea as a successful case of managed capitalism. We have examined just four phe­ nomena: displacement. South Korea entered into a "Faustian bargain" with the United States when it accepted wholesale liberalization of its financial institu­ tions in exchange for membership in the Organization for Economic Cooperation and Development (OECD). obscures power relations in the "currency pyramid.. When the crisis hit Korea in 1997. The larger point is that while all states surrender power to uruegulated global financial markets. although with local variation. to preserve global finance or global power relations' Sources: Eoons (1995). The severe adjustment of South Korea left the Koreans stunned­ particularly given their recent admission to the OECD (d. prior to the peso collapse). in the post-<old war IThird World era.4 billion. Amsden and Euh (J997). crisis management) appears to take no prisonerS. via financial liber­ alization. foreign a and international respectability. 11.234 The Globalization Project (19805."6. Indeed. shifted the burden onto the citizens of the adjusted states. Thus. Instead of dousing the fire.) The Globalization Project: Disharmonies 235 flight elsewhere in the world.. the IMF in effect screamed fire in the theatre. informalization/marginaUzation. This global "protection racket" is not foolproof.e moral of the story is that market rule (I. South Korea was the .6S CASE STUDY South Korea in Crisis: Running Down the Showcase The crisis of the South Korean "miracle" is perhaps the marker ' the " new world order. made an example of. they are mutually conclitioning processes. and when they do." Furthennore. Not unlike the days when the British Empire placed senior officials directly into the Egyptian and Ottoman finance into the inner sanctumS of nearly 75 developing-<ountry govenunents around the world-countries with a combined population of sOme showcase of successful development. Then. once an example of successful development. where jobs become ministries. In fact. indeed. and immediate bank dosures-<:onvinced the markets that Asia indeed was about to enter a severe contraction. They have all appeared in previous eras but not on the qualitatively different scale found today. j Summary The globalization project has many social and political consequences and implications for the future of the world.

from Mexico to Asia to Brazil. State legitimacy crisis is substantial under the globalization project because of the relative incapacity of states in a market regime to resolve the breakdown of social institutions. populations severed from their land and livelihood. there are signs of a renewal.) .) part-time and impermanent. Russia. there is no doubt that it is the site of a diverse array of livelihood strategies. Movements for democracy have emerged in the moment at which already overextended states." Whether Or not informalization is the source of future alternatives to the formal market economy. sometimes riddled with unproductive cronyism. This demand coincides with the reorganization of states as vehicles of global govemance and fuels the global countermovements discussed in the following chapter. Some observers see PART lY Rethinking Development . This is exacerbated by the recent recurrence of financial crisis. and neglected rural communities have demanded the opening of their political systems.236 The Globalization Project (19805. But in such breakdown. and disillusioned citizens. The breakdown marks the crossing of a threshold from the national development era to a new era in which international competition and global effiCiency increasingly govern and privatize national policy and growth strategies. some of which are embedded in community or personal relations. repressed work­ ers. and Argentina. are under pressure to end the pretense of devel­ opment and repay the debts built up over two decades of development financing. The emperor really doesn't have on any dothes. The strategies of flexibility embraced by !inns contribute to this informalization as much as does the growing surplus of informalization as a countermovement to the official economy and to state regulation-the "new commons. as people across the world push for demo­ cratic participation.

who decides what is traditional? There may be sacred lexts. working on its behalf. citizens have fresh opportunities to renew the political process. porale goa ls do nol simply view globalizat ion as the path 10 . But es. Most govenunents feel the pressure to play by the new and emerging global rules. 2001. and food sovereignty. And concept of "comparative advantage" is presented as enabling an in the allocation of global resources and benefits based on ecological and tural endowments. but they are open 10 interpretation. But i t is never quile so Simple. first reactions of some fundamentalist 1V evangel isis 10 Ihe September 11. of and financial institutions. and politically diverse world-here. but their citizens do nol always share their outlook. We con­ sider the following countermovements and assess their impact in the development debate: fundamentalism. In othe r words. And 7 Global Development and Its Countermovements T he globalization project has been a relatively coherent perspective and has had a powerful set of states.S. agencies. the nuclear family is not exactly traditional. The values associated with patriarchy are deployed steadily to reshape the U. there is a sense in which they converge (as "global justice movements"). biotechnology corporatio a culturally. the globalization project is an attempt 10 fashion the world around a central principle through powerful political Firsl. property. uncerlainty for most. cos­ alization project. but according to labor and environmenlal il is a corpora Ie. they Countermovements resist various features of globaliza tion. were represented as "God's punishmenl" for the loler­ ation of homosexuality and abortion.C. D. Nevertheless. Fundamentalism Fundamenlalism usually expresses a desire to recover the simplici ty and security of Iraclitional codes of behavior. and reduc­ ing Slate p atron age sys tems). This chapter surveys some of Ihese countermove­ ments. seed patenting reduces bio face of countennovements of farmers and peasant communities. For example. and corpo ra tions in where global restructuring weakens nation-slates (by eroding their public welfare function. Although the various countermovements have emerged mopolitan activism. Even then. contention bealuse this project is realized through various Like the develop ment project. And fundamentalist movements are usually split by factional differences and power struggles. the extended family is the more traditional structure. Second. feminism. its discourse and rules are . environmentalism. exploring their origins and goals. ralher Ihan a geographical. producer and consumer rights. what are the conditions in which fundamentalism comes to the fore? These conditions are likely to shape the leadersrup and the interpretation of tradition..Global Development and Its Countermovement'S 239 ) they also deny cultural diversity. Examining each movement offers a particular angle on the reformulation of development in the glob­ in different ways and places and at different overlapping times. sociopolitical landscape as Christian fundamentalism reasserts itself in an age of excess for SOme and economic di­ cally. the broad-based fundamentalism espOusing family values can be understood only in the context of a sig­ nificant decline in the proportion of the population that is actually a part of the traditional nuclear family structure. Indeed. What may be "traditional" is the age-old and unquestioned power of the family patriarch. and biodiversity as allemative forms of suslainable develop ment. ecologi­ impose a singular discursive and material logic on versity to corporate monoculture in the name of world hunger and In the twenty-first-century United States. its and effect of these ideals. increasing social and regional polarization. a!tacks on New York and W ashinglon. Since the principle is framed as a discourse power ultimately depends on the interpretation rights and freedom. They shape globalization by rep­ are not simply coincidental alternativ resenting the material and discursive conditions targeted by gl obal ns tutions for appropriation.

The current challenge to affirmative action in the United States represents one reaction. In a post-200l world. this "clash" did not prevent the United in pursuing a form of imperial fundamentalism itself.pntatwn and modernity. equality. circumstances. northerners equate fundamentalism with ties by people of the Islamic faith. then the military came in.Iso validates it by referring to an imagined past which the justice system (which is harsh. and. such easy depictiOi appeared via public intellectuaJs. the Jamaat-e-Islarni against Pakistan president Bhutto. Which was expl�itative. partic ularly on women-but .mist! none of the rulers of existing Muslim states today are 'true' Muslims.� An Angtican bishop noted. Ch rstianity i . We had anah.-notably Samuel Huntington's Clash Civiliw/ions.islm gressive/secular nationalism during the cold war: the Muslim hood against Egyptian president Nasser.'" During the 1990s."1 secular versus religiOUS states. "For Isl. Hence the struggle to change the existing regimes replace them with holy emirates. This in itself is a response as. its dear roles for men and women. and materialist tunism versus absolute values. free markets") and the Rest (epitomized by the most menacing: Islam Confucianism). Nothing is absolute or definite about the content of funda­ mentalism or about the elevation of ethnic identity as a way of drawing boundaries between people. the relationship between h"od. As Tariq Ali points Ollt. president Sukamo. Muslims argue. Nigeria's largest Muslim city. often producing sham elections. . it makes more sense to reject America and Europe's secular values.240 Rethinking Development Global Development and Its COlUltermovements 241 ) In uncertain times. by embracing Islam '" Under these . a more constructive approach is to understand the appeal of fundamen­ talist constructions (by leaders and politicians) for people. Nevertheless. The New York Times reported the rise of Islam as a political force in Africa and "the stunning spread of hard-line Islamic law from one small Nigerian state in 1999 to a third of the country's 36 states today. Some orthodox Jews regard the existence of Israel as a disgrace. "For many Africans. was alien to mosl Africans. from suppu"oo: the most hard-line Islamic fundamentalisms against cOlmn. human rights. Other Western values like democracy have been a disappoint­ ment here. a single one. COmmon assumption made about fundamentalism being antithetical modernity is evident in easy depictions of a world divided into versus McWorld. We had a brief period of ha ppiness after indepen­ d . We have seen a variant of this in the rising use of ethnic politics as competition for jobs grows while the econ­ omy shrinks.' The point is that fundamentalism and modernity are inextricably tied. . But before aU this. the Sarekat-i-Isl. . The interpretation of ethnicity is quite plas­ tic and depends very much on the historical and social context in which people reconstruct ethnic divisions. fundamentalist politics has become a power­ ful weapon for mobilizing people as the stable political and class coali­ tions of the development era crumble.. which depicted a world divided into eight cultures of glon but riven between the West (valuing "individualism. We have had colonialism. the rule of law. And resisting the essentialism of fundamentalism with further essentialism (as dominant states tend to do) is inappropriate. liberty.ence. and easy dichotOmies misrepresent the complex relationship between them. People gravitate to fun­ damentalism for protection and security and to make sense of the wodel around them and their places in it. the presumed essentialism of ethnic identity either comforts people or allows them to identify scapegoats. Muslims supported the Hisb� organization's imposit ion of Shariali (Islamic law) in Kano. we had a system U"lat worked.am. in an increasingly con­ fused and unstable world. it the variety of Islamic orders.m Indonesian . and the fact that other religiOUS fundamentalisms Christian and Hindu) have displayed an equal capadty for violence. a culture of selfishness and half-naked women. liberalism. its toler­ ance of polygamy.'" Rather than confirming the topical ques­ tion asked by Americans in the post-September 11 era.w. In whatever form. stitutionalism. later. At this time. Osama bin Laden and the Taliban against the secular-commWlist president Najibull� of Afghanistan. and everything has been going downward ��c� then. In the shadow of September 11. The president of the liisbah Justified this assertion of potitical Islam in terms that depend on a profound encounter with modernity and its contra dictions: It � the failure of every system we have known. in portraying Islam in monolithic and alien terms. Why don't e we return to ourselves?!' lI\ We should note how this leader not only constructs an absolute sense of the Muslim identity but . continued misrule and deep poverty.' However. 2001. constructing the fundamentals of what holds people together often moves to the front burner. "Why do they hate us? "-which projects some deep-seated envy of the West onto the Muslim world-the report detailed the limits of Western modernity in Africa: Islamic values have much in common with traditional African We: its em ph asis on communai living. W are Muslims.

where polygamy is practiced and female revival challenging Kemalism. a legitimacy crisis stemming emboldened Islamic fundamentalism. who own a large share of argue that secularization has suppressed Egypt's deep Islamic and Arab Istanbul's population has doubled every 15 years. A woman regime without asking for perm ission." In 2002. . Development. not political. In from economic stagnation and political corruption in the government has The twentieth centurY is almost over. 2001. The AKP has transfonned this once modem and appeals to the European Union (as a source of investment and trade)--{)ffering economic hope and a counterweight to fundamentalism. particular from Christianity'S American. His quarrel was with society. Bermon (2003:26·29). nothing like the death penalty in the West) is believed to have worked. the Western press has focused on likely correlations between economic deprivation and reli­ gious fundamentalism in the Middle East. Turkish Republic was created in 1923. "stemming ancient division of the sacred and the secular. consider the cases of the following two Arab intellectuals. Exiled Saudi Arabian novelist. modernity and hmdarnentalisrn are intertwined. Why? Because they fear education. although fundamentalist. Such a situation produces a desperate citizenry. the AKP. partly because Islam offers community and basic services in the midst of the disorder of huge. not because the United States failed to be a liberal society. CASE STUDY Modernity's Fundamentalisms As an illustration of the inextricable links between fundamentalism and modernity. Abdelrahrnan Munif. All our rules do 1S increase their own wealth while investing as little as possible in the intellectual developmen t of our people. "Islamism is the sharia plus electricity. The blame for stagnating Arab on Paul Berman suggests that Qutb's philosophy drew on twentieth-eenturY and themes about Ihe division between mind and body. and economies is placed authoritarian regimes with top-heavy public . Its ranks have expanded among the urban poor." the principles. the � veil on girls and revise schoolbooks to emphaSize Islamic teachings. came to power. As Olivier Roy has noted. They people are deprived of all elementary rights. Now. When the modem 13 million was urban." illiteracy is high and from where ymll1g men with conservative values disenchantment into a political mandate for an !slarnist revival that is at Come to swell the ranks of the urban poor. roots in the pmsuit of a communion with Western culture. Egyptian philosopher and inspirer of al Qaeda Islami President Nasser's nationalist terrorism. viewed the truly dangerous element in Western. drawing on religious fervor in the heartland.IO In Turkey.r change. whether based in oil wealth or not. without a sense of . ment associated with the founder of the Turkish republic (1923). Kemal Ataturk. . even the ri ght to support the private wealth in the country are treated like third-class ci tizens . The construction of Shnrinlz as a repository of previous traditions and justice. But which fundamentalism is the more authentic: the one that blends with the modem world or the one that uses or reacts to certain experiences in the modern world to justify its appeal to a seemingly unblemished tradition? SOl/rces: Ali (2002). sprawling cities such as Cairo. These city dwellers offer fertile ground for an Islamic 60 million people live dignity or belonging. Women. He opposed the United States because it was a liberal thinking person can recognize. . secular politics of develop­ c Alternatively. cannot be nature and modem life are somehow at odds . two-thirds of Turkey's isnot allowed to leave the country without a wriHen permit from a male rel­ ative.242 Rethinking Development Global Development and Its Countermovements 243 ) to defenders of Islamic justice. and creating a 'hideoUS was schizophrenia' in modem life where life without reference to God unfulfilling . only 15 percent of its population of in urban areas. if only vaguely-the feeling that human understood outside of its encounter with modernity. all they southern Egypt's public schools. between sensual he "put his finger on something that every spiritual experiences. fundamentalist teachers reimpose the see is oil and petrod llars. His deepest quarrel was not with America's failure to uphold its principles. Saudi Arabia is still without a constitution. but when the West looks at us. the Islamic party. " In the wake of the attacks on September 11. In Egypt. the ruthless.' In other words. remarked in an inter­ view with Tariq Ali. They fea. Sayyid Qutb (executed under ly regime). life as theological." This is particularly so since the return to democratic elections in Nigeria in 1999 (after years of mili­ tary rule) allowed Islamic law to be reintroduced through the ballot box. fuels fundamentalist opposition via overcrowded cities.

Wlemploymenl averages 15 percent. The reporter notes that most yOWlg men are not rioting: Thelr anger is only loosely articulated. has arguably revived recently as much as a consequence of the project of globalization. by implication. then organized a "Buy Indian" campaign against imports and borrowing conditions set out by the IMF. While campaigning. and India joined the "structural the efforts to "globalize" the Indian economy on the part of Prime Minister P. privatizing public goods. . . The Swadeshl Jagran Manch (SlM). . the chlef minister of Gujarat Narendra Modi. S. Hindu fundamentalism. but in the end they cannot manage. shaving cream. T. aggressive platform of Hindutva (chauvinist Hindu supremacism). Thls kind of neafascist politics. drawing on cultural hlstory. terrorisms and fundamentalist positioning on both sides. especially among the relatively well educated (from whose ranks came some of the and "the lack of opportunities for the yOWlg and educated transJales into deeply frustrated aspirations. where yOWlg men crowd the streets.. or . and patenting plant varieties is just as real and threatening to the stability of their communities and their sense of world order. . wore homespWl cotton clothes. .D political cultures in an Wlequal world do not resolve themselves in such simplistic fashlon. that America-Qr their pro+American govenunent. invoking the economic nationalism of India's beloved anticolonial leader Mahatma Gandhi. The integration of India with the rest of the world will be restricted to just one percent of our population. Right-wing Hindu groups.. cosmetics.. Modi used the incident to indte a new. The South Asian conflict between India and Pakistan is driven by a blend of informal and formal (state-sponsored) fundamentalism.000 of their Muslim neighbors. illustrates the way fundamentalism can be deployed to achieve powerful ends. An offidally unre­ strained Hindu. IS The shortCOmings of thls kind of representation of a close relation between fundamentalism and terrorism are that the tensions betwe<. after Muslims killed 59 Hindu pilgrims. withdrawing subsidies. The conflict between Israel and the Palestinians rna tches formal and informal More recently. V. ."" tion to the demographlc profile of Peshawar (as with all cities in the A report filed from Pakistan touches a Western nerve by drawing atten­ men involved in the attacks on the World Trade Center and the Pentagon). the fundamentalism of neoliberal economics in structurally adjusting political economies. A nation should largely live within its means and produce for its own market with trans-country commerce restricted to its needs. The COnvenor of the SJM. Gurmurthy. or can be led to believe. and even crayons. They live where globalization is not working or not working well enough.here are Significant examples in the twenty-first century of interc'On"""! nected fWldamentalisms and their use of forms of terror. often because they are struggling to survive. The unilateral "imperial fundamentalism" governing Ihe invasion of Iraq in 2003 was premised on a questionable representation of Saddam Hussein's regime as blending slate and stateless al Qaeda-type terrorism. soaps. campaigning against ''Muslim terrorism" in neigh­ boring Pakistan but. room and board. where Muslims accOWlt for just 9 percent of the population. cutting wages. Hindu fyndamentalism has gathered steam via the nationalist Bharatiya Janata Party (BIP). the Indian Finance Ministry accepted the adjustment" club. with 63 percent of the population YOWlger than age 25. . While poverty is not widespread. an organization promoted by a Hindu revivalist group (Rashtriya Swayamsewak Sangh). The SOn wiH get a backbreaking job of some sort. most of which offer free tuit ion. as of geopolitical tensions with Pakistan. They believe. was perhaps the last Significant holdout among for­ mer Third World states against International Monetary FWld (1MF). soft drinks. targeting a minority as the basis for an electoral mobilization. We want to create a nationalist feeling that every nation has to evolve a mind of its own in econontics. whlch won an overwhelming majority in the Indian parliament in 2002. Poor families do their best to send a son to school. Ultimately. resulted in the massacre of more than 2. From the global South. canned food.244 Rethinking Development Globa1 Development and Its COWltermovements 245 I ) sectors that discourage private investment and entrepreneurshlp. if they live under on�is to blame for their misery." . In ract. India. detergents. drew some disturbing lessons from <In earlier experience of a religious riot in hls home state. the identification of whlch fundamentalisms lead to whlch kind of terror (stateless or state based) is a question of power relations.tyle Middle East). a leader of the Non­ Aligned Movement. once advocates of economic liberalism. Gurmurthy declared. paint. within Gujarat. power lies in representation-whether it is the power of an imam to interpret the Koran or the power of powerful states and their publiCist-journalists to identify those fundamentalisms they regard as threatening to their sense of world order. .rampage. And that's where they Jearn that il is honorable to blow yourself up amid a crowd of infidels and that the greatest glory in life is to die in a jihad. Narasimha Rao. urged Indians to boycott foreign-made goods such as toothpaste. (enrol) at a madrassah.U economic IiberalizatiofL In 1991.

the empha enhancing sis being on preserving human health. Trees may be renewable Is and practices of unbridled economic growth. or gold. it seems. which attempts to regulate the environmental implications of This is especially true where states and fums seek to "monetize" and harvest natural resources on which human communities depend. rn contrast to First World envi­ ronmentalism. This perception encourages the belief that nature an infinitely exploitable domain. I ts title refclS to the absence of birdsongs in the spring. . One derives from growing environmental awareness among citi­ zens in the West. who resisted the takeover of their lands and the elimination of the buffalo. The combination may involve contesting and offering alternative ways of organizing social life-whether in de "fundamentalisms" of globalization (financial. reversing the environmental stress associated with capital. on the one hand. It is the renewables-the ones we thought would last forever-that are being destroyed at an accelerating rate.17 A range of "green" movements has mushroomed throughout the First World as the simple truths revealed by Carson's study have gained an aud ience. institutional. Such movements are therefore often distinguished by their attempts to protect existing cultural practices.n desertification. First. that sustain modem economies. nineteenth-century Native Americans. and Indians. As Paul Harrison implies. Demands for northern-style envirorunental regulation gathered momentum to address environmental stresses from resou. and chemical contamination Silent Spring in 1962. this rather linear perspective has yielded to a mOre dynamic one that sees a serious threat to essential natural elements such as the atmosphere. The point is that what gets represented as fun­ damentalism is usually one-sided. One of their foci is agricul­ tural sustainability-that is. where rural populations produce 60 percent of their food. Yet these. This path-breaking book documented the associated with the green revolution. Environmentalism Envirorunentalism as a countermovement involves questioning modem assumptions that nature and its bounty are infinite. and biodiversity. the fundamentatist movements abroad in the world have two main features. Local communities have always challenged envirorunentally damaging practices where natural conservation is integral to local culture. such as fossil fuels and timber. from the neo-Malthusian specter of population growth overwhelming land supplies "nd the food grown on it to anxiety about the dwindling supplies of raw materials. however. they the often take the form of ethnonationalist resurgence against perceived threats to cultural integrity. They are aU living things. but the atmospheric conditions that nurture out of non-renewable resources­ things like oil. who struggled against British colonial forestry practices. Carson's metaphor dramatized the dependence of We on sustainable ecological systems. It also empha­ sized the shortcomings of Western rationalism's perception of nature as "external" to society.IS protect particular bioregions from envirorunentally damaging practices­ Across the world. on the other. or dynamic parts of living ecosystems . the world has moved to a new threshold of risk to its sustainability: It used to be feared that we would run through replanting schemes. forest dwellers across the tropics grabbed the world's attention as they attempted to preserve tropical rain forests from the extensive timber cutting associated with commercial logging. excessive water salinity. they articulate the uncertainties and legitimacy deficit that populations experience as a resul t of the limits of develop­ mentalism and the increasing selectivity of globalization. It has two main strands. First World "greens" typically challenge the assumptions 19805.rce mining and river damm ing to the overuse of natural resources resulting i. The second strand of environmentalism appears in active movements to them may not 'be so easily replenished. arguing for scaling back to a renewable economic system of resource use. Opposition has come from eighteenth-century English peasants.246 Rethinking Development Global Development and Its Countermovements 247 ) In sum.and chemical-intensive agriculture. amplifying southern envi­ ronmentalism. In the late twentieth century. The common denominator of most environmental movements is a belief that natural resources are not infinitely renewable. or imperial) sive or aggressive tenns. southern envirorunentatism questions market forces. A key goal is maintain­ ­ ing a natural aesthetic to complement the consumer Westyle. obscuring its pOlitical roots in modernity. are the ones we need worry least about. most recently inspired by the publication of Rachel Carson's disruption in the earth's ecosystems that was being caused by modem economic practices such as the use of agricultural chemicals. and leisure activities. The finiteness of nature has been a global preoccupation. climates. Lately. Second. T Lmbering and the pasturing of beef cattle in degraded forest areas inten­ sified with the agro-export boom of the the market economy. who protested the enclosure of the commons. human communities depend greatly on the viability of regional ecologies for their livelihood.

Sources: Butlel its mineral resources. These include lead poisoning. it was recently esti­ mated that the economic value of the world's ecosystem services is cur­ rently around $33 trillion a year.ng is a growing awa. In the first place. Robert Repetto. a country could exhaust its soils. and extraction of genetic resources. Whether or not it is appropriate to value nature in this way. Where developmentalism advo­ global economic mallagement. participatory action research. [The] differ­ ence in the trea tmen t of natural resources and other confuse the depletion of valuable assets income. and where developmen­ ' talism ciUlmpions state and market institutions. Thelf appearance on the historical stage reflects the demise of developmental­ ism and the search for new directions of social and political action.red . it cannot perform the regenera­ tive function that natural systems perform because it is a monoculture and lacks natural diversity. . cataracts from ozone destruction. These reserves are relatively large areas of forestland set aside. the new social movements are distin­ guished by an expressive politics and their chal/enge to the economis".-" social move­ f ments seek autonomy and the embedding o markets in cooperative social arrangements. (Cantin !led) The second indication of a change in t." In 1997. which invisibilizes environmenta. this trend is an antidote to traditional economics rea­ soning. of the World Resources Institute.22 What Are the New Social Movements? The new social movements. global justice. Where developmentalism emphasizes industrialism and material abundance. The result can be losses in wealth." From the late 1960s. space photographs of rlanet Earth dramatized the biophysical finiteness of our world. .2� . new strains of cancer. Thel have are state have receded. One response by the Brazilian government to this kind of demand was the creation of self-managing extractive reserves for native tribes and rubber tappers to protect them from encroaching ranchers and colonists. Lelunan (1990). . cut down its forests. As a consequence of the appreciation of "nature's services.'r2:3 Third. cattle pasturing.reness of the limits of "spaceship earth. inunune suppression by ultraviolet radiation. . articulated the shortcomings of conventional economic notions of value: Under the current aquifers.2J The change in thinking has been stimulated from several quarters. .248 Rethinking Development Global Development and Its Countermovements 249 Furthennore. and they f grown as the institutions o the welf f express the declining legitimacy o development in its national and global incarnations. the Kayapo Indians of the Amazon strengthened their demands by appealing to the global community regarding defense of their forest hab itat from logging. and loss of genetic and biological resources for producing food and medicines. with government p rotection. For example. erode system of national accounting. and grassroots or basismo politics. . We all depend on one bios­ phere for sustaining our lives.hink. such as the greens." Destruction of renewable resources increaSingly is understood as undermining the sustainability of fonnal economic activity. or accountable. In shnrt. and (Continued) f share criticism o developmentalism. for extractive activities by forest dwellers. f social organization instead.20 with the generation of illusory gains in income and pennanent (1992). some of which are the subject of this chapter. The dangerous synergies arising from global economic intercourse and ecol­ ogy were driven home by the Brundtland Commission's declaration in 1987: "The Earth is one but the world is not. the new movements emphasize appropriate technology and ecological balance. various grassroots movements focus attention on the growing conflict on the margins between local cultures and the global market. ) f and instrumental politics o the "developed society" model.i. While a tree plantation may provide timber products. pol lute its hWlt its wildlife and fisheries to extinction. the Environmental Defense Fund warned that the burning of the Amazon forests would have "potentially enormous global consequences. there are the new social movements (conceptualized in the following insert). the very survival of the hwnan species is increasingly at risk as pollution and environmental degradation lead to public health epi­ demics. the "'. exceeding the global gross national product (GNP) of $25 trillion. but measured tangible assets income would not be affected as these assets disappea.l impact." a form of ecological accounting is emerging-for example.j eminism. the new movements tend cates national/ f orms o to reject centralism and stress decentralized.

21 The report did not resolve the interpretive debate over the root cause of environmen tal deterioration-whether the threat to our common future stems from poverty or from affluence: • Since the 1980s. the Indian govenunent has been implementing a huge dam project in the Narmada River valley. . at the time of the Earth Summit. . The Brundtland in reducing carbon dioxide emissions and preserving biodiversity and the The South. resources. Members tence e-conomies of U1ese areas."l9 this project. known as Agenda 21.up compromising the ability of future generations to meet their own "meet(ing] the needs of the present without Our Common Future. detailing a global pro gram for the twenty-first century and addreSSing all sides of the ineffectual deba te. the Narmada Bachao Andolan (Movement to Save the Narmada).­ style high-resource consum ption standard for a world of 4 billion people is impossible.S. • tify affluence as the problem believe that the gravest stress on the environment comes from global inequality and Ole cons umption of resources to support affluent lifestyles. "26 How to achieve this remains a puzzle. encouraging grassroots involvement in development. the review claimed "gross delinquency" on the part of the both the engineering and the forcible resettlement of displaced peasants. citizen conlributes 60 times more to global warming than each Mexican and that a Canadian's contTibution equals that of 190 Indonesians. had considerable suc­ cess in forcing the Bank to withdraw its support for of the grassroots opposition to the dam argue that the resistance articulates . for instance. ConIerence prepara­ Sustainable Development The concept of sustainable development gained currency as a result of sustainable development the 1987 Brundtland report. needs. Commissioned by the Bank president. Environmental degradation. The report defined 2002 World Summit on Su stain ability in Johannesburg.l5 econonUc process-a process which not only erodes and destroys the subsis­ and authoritarianism of the s ta te and the extractive character of the dominant over the country the critical legacy of Mahatma Gandhi . . recognizes that the Firs t World has an interest . . devoted to export production in the 19805. but also the diversity of their systems. there was an embarraSSing simultaneous release of an independent review (the first ever) of the Bank's Sardar Sarovar darn pro­ ject in India.000 medium and small dams on the Nannada River." This perspective has generated former World Bank economist Herman E. millions of rural poor well! pushed into occupying marginal tropical forest ecosystems. resulted. titled as tions resulted in a document. . from the 1970s on. including deforeslation. which continued through the decade." it was the largest diplomatic gathering ever held. Population 3. Daly's "impossibility theorem": that "a U.s. This pressure stems from the long-tenn impov_ erishment of Commission suggested steps such as conserving and enhancing natural adopting appropriate technolOgies (smaller scale. In 1992. The United Nations Environment Program (UNEP) organized the conIer­ ence to review progress on the Brundtland report." the commission neverthe­ less reconunended continued emphasis on economic growth to reduce the presswe of the poor on the environment. Those who iden environment to be impoverished masses pressing on resources. with finandal assistance from the World Bank. to the rather low-key and fo ll ow. Bank and the Indian govenunent in Measures of this latter effect abound. one of the more provocative being the claim that each U. energy conserving). Popularized as the Rio de Janeiro "Earth Summit. The movement is therefore representative of growing assertions of marginal populations for greater economic and political control over thei r lives. As land and forest were increasingl y rural populations forced to overwork their land and fuol While acknowledging that "an additional person in an industrial country conswnes far more and places far greater pressure on natural resources than an additional person in the Third World. . Resistance to the Narmada Dam is a case in point.250 Rethinking Development Global Development and Its Countennovements 251 J Finally. the pressure on natural resOurces from the rural poor has intensified . and . These revelations and the growing resistance movement. This massive development project involves 30 large and more than Those who argue the poverty cause consider the gravest stress on the control and economic grow th are the sugges ted solutions. . of the struggles all that continue to challenge both the growing centralization The Earth Summit The terms of this debate infused the 1992 United Nations ConIerence on Environment and Development (UNCED). ment"-including the idea of seU-organizing development versus the sources to eke out a subsistence. expected eventually to displace more than 2 million people. Environmental movements have proposed both solutions under the mantle of "sustainable develop­ dominant centTalizing version.

the World Trade Organization management of the environment over local/national concerns and (2) mamtainmg the viability of the global economy rather than addressing deteriorating economic conditions in the South. and conservation. on the one hand. it is not difficult to see that states.JO However. soil. it has called for massive investment by the First World in sustainable development mea­ the IMF bailout of Indonesia in the 1997 crisis. The United States has suspended national forest laws to facilitate logging. A new Forest Reform Law legalized private industrial tree plantations in the indigenous reserves and sures in the South. but there is no reso­ lution as yet as to what end. the rate of Amazonian deforestation Managing Global Commons Environmental management is as old as the need for human commu­ nities to ensure material and cultural survival. Globalization under the Project. the Since the Rio de Janiero Earth Summit. which threatens to institutionalize "cut-and-run" logging arotmd the world. although government studies estimate that 60 to 70 percent of licensees operate illegally."JI The outcome was a shift in emphasis from the Brundtland report: (1) privileging global ejido lands. deforestation has continued tmabated and. It has agreed to participate in the global program m return for financial assistance. and South Korea moved on to Amazonia. including health. regard global environ­ mental managers and their powerful state allies as focused on managing the global environment to ensure the profitability of global economic .ican forests are located. UNCED detoured from the question of global inequities. where they received the blessing of the Brazilian government (having submitted an environmental impact study (NGO) supporters. And in Mexico.ts national forests to attract foreign loggers. The globalization project was alive and well.. the Siberian and Eastern Russian boreal forests have been pltmdered. strapped for foreign exchange and sometimes required to tmdergo reform to earn foreign exchange. and water quality and gainmg gen­ erous federal subsidies. where 80 percent of Mex. sanitation. has intensified. Within the terms of the globalization project. and private interests. the North American Free Trade Agreement (NAFTA) has no provision for protecting forests. that cotmtry's forests are open to foreign ownership.252 Rethinking Development Global Development and Its Countennovements 253 tropical ram forests for planetary survival. are beholden to wealthy corporations that want to exploit natural resources and/or secure control over their supply in the future. in particular. the International Paper Corporation leveraged reform of Mexican laws regarding forest exploitation. arguing that "poverty is the greatest polluter. Brazil moved expeditiously to situate Amazonia as the logging frontier of the twenty-first century-allowing private interests to legally chal­ lenge indigenous land titles. education. Following the peso crash in 1994. and burnmg has tripled. and global institu­ tions. stressing environmental protection to be a development priority." a phrase once used by the now deceased Indian president Indira Gandhi. Southern grassroots movements. Malaysia. Global envirorunental management seeks to preserve planetary resources. logging companies from Burma. and. impJe-­ menting plans to resettle thousands of Brazilians tmder pressure fro. Accordmgly. Meanwhile. How can we have long-term global environmentalism when states them­ . (WTO) prepares a national treatment code requiring foreign mvestors to claim the same rights as domestic ones. remov­ ing protections for biodiversity. Deforestation CASE STUDY selve facilitate the exploitation of natural resources for short-term profit and foreign exchange needs' Sal""": T autz Post-Earth Summit (1997). to question the commercialization and degradation of environments to which they are historically and spiritually attached. technical assis­ tance. the Philippines. tmder the terms of has risen by one-third. sta tes. on the other. but "without distorting international trade and investment. In many cases. Meanwhile. Indonesia. International Paper plans a 100. This question is posed and resolved on a continuing basis by struggles between communities and cotmtermove­ ments. in fact. New Guinea. and privatizing 39 of . building a huge transport infrastructure as a subsidy to private investm�nt in Brazilian natural resources. it is left up to local inhabHants.m the Sem Terra landless workers' movement.OOD-hectare eucalyptus and pine plantation in Chiapas. as well as their nongoverrunental organization and become licensed). after destroying more than 50 percent of Southeast Asian forests. 1999:181). Mmolli 11998:352-62.

33 .254 Rethinking Development Global Development and Its Countermovements 255 activity." The logic of this scenario is that of managing the "global commons· and viewing surplus populations and their relation to scarce natural resources as the immediate problem. the Global Environmental Facility developed a strategy for pro­ tecting the Bosawas rainforest region in Nicaragua on the grounds that it is globally significant biodiversity under threat of campesino colonization and unregulated logging by transnational firms attracted to the abundant timber. These were contested through physical demonstrations. and bodies of water. as well as challenge in the courts (incl uding the Inter-American Commission on Human Rights). constituting a cheap labor force for wealthy . A Global Environmental Facility (GEF) was installed. In Brazil. was promised the Nicaraguan government in return for brokering this strategy of biospheric reserve management on behalf of the indigenous communi­ ties of the Mayangna Indians. landowners. Under this facility. Structural adjustment policies. In addition. subsis­ tence farming would be allowed only where "natural resource limita­ tions" or "environmental or socioeconomic constraints" prevent intensification. The GEF views the Indians as guards and guardians of the high biodiversity areas: "By strengthening and reinforc­ ing land and natural resource rights of indigenous communities . the inhabitants would be forced into transmigration or reset­ tlement programs. combined with European aid of $12. This includes regulating the use of planetary resources and global waste sinks such as forests." The GEF pledged money for demarcation and titling of indigenous lands. . UNCED. protecting biodiversity. via the Food and Agricultural Organization (FAO). and expansion of soy export production have dispossessed small peasants. cheap labor. And where governments deem marginal land to be over­ populated. planned to zone southern land for cash cropping with the assistance of national governments.8 million. less than I percent of the population owns about 44 percent of the fertile agricul­ tural land. The World Bank initiated the establishment of the GEF to channel monies into global environ­ mental projects. and relatively lawless conditions. In 1997. mainly in tropical forests. when indigenous communities have fairly secure tenure of their land." A GEF grant of $7. How does this episode help us understand the contradictory interests between a global agency responsible for planetary biodiversity (and there­ fore responsive to indigenous guardianship) and states managed by pow­ erful patronage networks and driven by the need to cam foreign exchange? Source: Weinberg (1998). and areas of spiritual Significance. geared to funding global ecology initiatives. they can represent formidable barriers to the expansion of the agricultural frontier. curbing ozone-layer depletion. rather than situating the problem of s"'plus population in a broader framework that recognizes extreme inequality of access to resources. primarily from automobiles and burning forests. The GEF strategy proposed "institutional strengthening" for the "participation of local stakeholders" and "decentralized management of protected areas. Instituting this plan ran into formidable obstacles since the Nicaraguan government was juggling the GEF "sustainable development" program and a program of broad logging concessions. and 32 million people are officially considered destitute. reducing pollution in international waters. The state is caught between its embracing "sustainable development" and its revenue-enhancing relationship to the logging firms. • • • The institutional fallout from UNCED strengthened global economic management. wetlands.1 million. The sticking point is that indigenas are not inclined to accept land parcels that fragment col­ lectively used forests to complement private logging concessions. especially in the four areas identified above. burial Sites. for example. 50 percent of the projects approved in the GEF's first tranche were for biodiversity protection.. by the Indians. They claim use of two-thirds of the land conceded by the state to a subSidiary of a Korean clothing transnational corporation (TNC) for hunting. the new "global ecology" has converged on four priorities: • CASE STUDY Managing the Global Commons: The GEF and Nicaraguan Biosphere Reserves reducing greenhouse gas emissions. Instead of linking environmental concerns to issues of social justice and resource distribution. . Under conditions where Brazilian social ministeries have been g utted those landless peas. ants who do not join the Sem Terra (see below) or the mass migration to the towns or the frontier are incorporated into NGO-organized "poverty management" programs. grain imports.

. Nevertheless. Cameroon. between tribal. The World Bank. and promote social forestry. "y" CASE STUDY Chico Mendes." of the Tropical Forest Action Plan The focus on poverty as the destroyer of forests guided the establislunent 1988. The minorities affected were not consulted. Nepal. it often subordinates minorities to national d� opqten initiatives. attracted requests for aid from 200 to 300 million forest dwellers in South and Southeast Asia. As the leader of Brazil's National COWlcil of Rubber Tappers. Some of these people have been given official group names assigning them a special-and usu­ ally second-class-status in their national society: India's "scheduled tribes" (adivas-is).lly common bonds. observing." sources of fWlds for extraction of for­ est products for export. extractive reserves for the rubber tappers (so they could supplement their tapping wages with sales of other forest products). they are routinely viewed from afar as marginal. More often than not. conserve protected areas and watersheds. TFAP projects were completed in Peru. stated in wide rain f orest movement mobilized sufficient criticism (including that of Britain's Prince Charles) that the TFAP initiative ended. Tanzania. This has been the case recently on the Indonesian island of Kalimantan. ." the Philippines's "cultural minorities." and Malaysia's "aborigines. "The tenn indigenous covers indigenous. they often have a limited capacity to participate . largely by ranchers' hired guns. Papua New Guinea. low caste and etlmic minority groups. where the state has been actively encouraging commercial logging at the expense of a sophisticated and centuries-old rattan culture practiced by the Dayak Indians. Ghana. alternative fuel-wood sources.. .in the national development process because of cultural barriers or low social and political status. What will be created will not be extractive reserves. such as commercial logging or government foresl!'Y projects involving tree plantations. . himself with the safety of his tappers as ranchers tried to force 1964 and clisputes in the Amazon occurred. Guyana. ance. even though Mendes lobbied the World Bank in W ashington on behalf of the rubber tappers in On the other hand." Indonesia's "isolated and alien peoples. the United Nations Development Program. distinct from lowland cotnmWlities dependent on irrigated agriculture. In other words. the Brazilian government obtained a 1988." Taiwan's "aboriginal tribes. Under these circumstances. It is estimated that there are Global ecology. Brazilian Envirorunentalist by Default 1990. and the World Resources Institute. documenting their ownership of cultivars in the fores!. Seeing their effects."34 Indigenous and tribal people aroWld the world have had their rights to land and self-determination enshrined in the International Labor Organization Convention. these groups have recently redefined themselves "indigenous.. and charging that the TFAP projects furthered deforestation through intervention and zoning. when Rondonia was occupied by impoverished settlers who burned the Amazonian jWlgle in vain hopes of farming. and protected Inclian reserves in adclition to national parks.. Forestry loans. They have formed their own resistance. geared to environmental management on a large scale. Colombia. the Food and Agricultural Organization. He feared a repetition of the mistakes made in the 1980s. seemingly "green. Despite their historical and cultural differences.J7 . and the Philippines. in adopting the term indigenous in its documents. We think that the extractive reserves included in to lend the Government's project proposal to the World Bank tone-which has been very fashionable lately-in order to tion settlements with the same Polonoroeste n only serve an ecological secure this huge (TFAP) in the 1980s by a global manage­ loan . By the Catholic Church's reckoning. however."" Viewed through the development lens. .256 Rethinking Development Global Development and Its Countermovements 257 has priorities for sustainability that often differ from those of the remain­ ing local environmental manage'. Chico Mendes concerned them off their land. as such. it perpetuates the in the Brazilian Polonoroeste area of Rondonia and Mato Grosso to set aside often Wlexamined assumption that these cultural minorities need guid­ land for farmers. forest reserves. and it carries a significant implication. this is a preclictable perspective. a lot of money 'Nill be spent on infrastructures which do not mean anything to the peoples of the forest and the ment group consisting of the World Bank. Thailand's 62 southern states looking for new. TFAP was designed to pool fWlds to provide maintenance of which will not be su stainable." Challenging their national status and elevating their internationa. strengthen forestry and envirorunental institutions. but coloniza­ mistakes that have led to the present disas­ ter of Polonoroeste. 982 murders over land forestry loan from the World Bank for "agro-ecological zoning" On the one hand. It became the "most ambitious environmental aid program ever conceived" and. and other protected forest areas. a world­ "hill tribes/' China's "minority nationalities. such incligenous peoples find themselves on the receiving end of large-scale resettlement programs justified by the belief that forest destruction is a consequence of their poverty. however. continued through the World Bank.

. Similar protests spread across northern Inclia in a move to protect forest habitats for tribal peoples. Tl>e¥ Iake. They want individual land rights. from the inner to the outer islands. nurseries. there has been ­ ' an explosion of rural activism . . arra/lging strategy meetings with other villagers. the !NCRA. . Their message is simple. which . it eliminated roughly 4 percent of the Indonesian forests. At the very moment that the Rond6nian Natural Resources Management Project loan was approved in 1992. chopping down eucalyptus trees. a similar resettlement project was under way in Indonesia. planting fruit. the World Bank assisted a further resettlement of 3. coffee. march. ripping out seedlinss. such as cacao. by the Bank's accounting. Irian Jaya. there is a discernible pattern of collaboration between the multilateral financiers and governments concerned with securing territory and foreign exchange. Its members uprooted eucalyptus seedlings-the tree of choice in official social forestry.seeks to curb.000 new colonists a year in areas that were supposed to be set aside as protected forests and extractive reserves for rubber tappers under the Bank project. sometimes called "user groups. with that many again moving to the outer islands as private colonizers. "In Indonesia. In the latter practice lie some answers to cunent prob lems. In this transmigration project. The project. Building on the Indonesian government's initial resettlement of more than half a million people since 1950.chvisnLlike this is paralleled across the South. While he was a forest worker. to the outer islands of Kalimantan. "was proceeding with plans to settle some 50. the Brazilian land agency. They want a reconsideration of burning strate their blocking roads. on the other hand." Environmental Resistance Movements In all these cases. notably Java.258 Rethin. grassroots environmental movements prolifer­ ate. Critics saw this project as both a money spinner for the Indonesian gov­ ernment and a security project against non-Javanese people who desired autonomy from the military government. simply redistributed poverty spatially. and (2) adaptation. petitioning c?lbinet offio<lls.iJ1g. millions of poor peasants were moved from densely populated inner islands of Indonesia.i. .klng Development Global Development and Its Countermovements 259 Mendes was later murdered by a hired gun for his part in championing the rubber tappers cause to secure their land. . nation threats. Indonesia's Forestry Department controls 74 percent of the national territory. They want community rights to local forests which they will conserve themselves. SmaU farmers are standing up to assassi­ weathering the contempt of b u reau cra ts." that are democratic and dedicated to reclaiming lands and redefining grassroots development. which ex:emplifies the centuries-old practice of renewing ha bita ts in the face of environmental deterioration. Sch"mo 11998:A3). in addition. ." Under these conditions. symbolized in tree-hugging protests led primarily by women against commercial logging." Environmental . he left an environmentalist's legacy in the idea of the extractive reserve. and Sumatra to settle and cultivate cash crops for export. Perhaps the most dramatic form of resistance was W1dertaken by the Chipko movement in the central Himalaya region of Inclia. and palm oil. and the minister for forestry claimed in 1989. . Emulating the Chipko practice of tree planting to restore forests and soils. the forest belongs to the state and not to the people. .. Indigenous cultures. raUying. the movement developed a "pluck-and-plant" tactic. Success of these movements has been mea­ sured primarily in two ways: (1) by withdrawal of Bank involvement and the redefinition of forestry management by the government and (2) by the flowering of new political associahons. . even though it does not provide shade and does ravish aquifers-and replaced them with indigenous species of trees that yield prod ucts useful to the locals. nva I of habitats by states and markets. which is still taking root. They have no right of compensation" when their habitats fall to logging concessions. ." ' Was the legacy of Chico Mendes the idea of extractive reserves or of the power of resisting the violence of development? Sources: Ridl (1994:J67-69). In Thailand. the Chipko adopted a Gandhian strategy of nonviolence.5 million people between 1974 and 1990. are typically marginalized. The outer islands were inhabited by non-Javanese indigenous tribes and contained 10 percent of the world's remaining rain forests. calling on reserves of political experience going hack decades. Renewing an ancient traclition of peasant resistance in 1973. twC! forms� ) "ctiv n:sistance. On the other side of the world. rubber and fOfl'St trees in order to demon­ own conservationist awareness. where the state has promoted eucalyptus plantations that threaten massive clisplacement of forest dwellers.


Rethinking Development

Global Development and Its CoW\tennovements


aU existing eucalyptus projects. And they want the right to veto any commercial plantation scheme in their locality.�'


Local Environmental Managers in Ghana

In the Philippines, a successful reforestation program undertaken by the lkalahan of the eastern Cordillera followed the decentralization of resource control from the Department of Energy and Natural Resources to management by the local community in the 1980s. The state in effect transferred ancestral land back to the community. On the island of Mindanao, indigenous communities have reclaimed state and pastoral lands for subsistence farming, organizing themselves democratically along Chipko lines " As grassroots environmentalism mushrooms acrOSS the South, com­ munity control gains credibility by example. At the same time, the insti­ tutional aspects of technology transfer associated with the development project come w,der question. An ex-director of forestry at the Food and Agricultural Organization commented in 1987,
Only very much later did it dawn on the development estabUshment that the very act of establishing new institutions often meant the weakening. even the destruction of existing indigenous institutions which o u ght to have served as the basis ror sane and durable development: the family, the clans, the tribe, the vilJage, sundry murnal aid organizations, peasant associations, rural trade unions, marketing and distribution systems and 5000. H

HWlCireds of local communities have evolved new reSOurce management practices as livelihood strategies, often with the aid of nongovernmental organizations (NGOs). A case in point is the revival of local environmen­ tal management in the Manya Krobo area of southeastern Ghana, in the wake of environmental deterioration visited on the foresUand by cash cropping. British colonialism promoted the production of palm oil, fol­ lowed by cocoa cultivation, for export. The displacement of forest cover by monocuitural cocoa crops led to severe degradation of the soils. With cocoa prices falling in the second half of the twentieth century, local farm­ ers shifted to growing cassava and com for local food markets; they also cultivated oil palms and activated a local crafts industry (distillin g) used for subsistence rather than for export. Forest restoration technologies" combined with food crops, have emerged as a viable adaptation. These restoration methods are based. on the preservation of pioneer forest species rather than the fast-growing exotics (with purchasable technolog­ ical packages) promoted by development agencies as fuel-wood supplies and short-term forest cover. When a community is attempting to recover a stable livelihood, which includes developing technologies appropriate to retaining ecological balance, does that count as development?
SOl/ree: Amanor (1994:64).

Forest dwellers have always managed their environment. From the per­ spective of colonial rule and the developers, these communities did not appear to be involved in management because their practices were alien to the rational, specialized pursu.it of commercial wealth characterizing Western ways beginning under colonialism. Local practices were there­ fore either suppressed or ignored. Now, where colonial forestry practices erased local knowledge and eroded natural resources, recent grassroots mobilization, such as the Green Belt Movement in Kenya organized by women, has reestablished intercropping to replenish soils and tree planting to sustain forests. Where development agencies and planners have attempted to impose irrigated cash cropping, such as in eastern Senegal. movements such as the Senegalese Federation of Sarakolle Villages have colJectively resisted in the interests of sustainable peasant farming (sustainable in the social as well as the ecological sense)."

The chalienge for grassroots environmental movements in the former Third World is twofold: eate ruternativ.es to the capital- and energy-intens;ve -ronns of specializecr agricuJture and agro-forestry that are appropriate to the goal of restoring and sustaining local ecologies and (2) to build alternative models to the bureaucratic, top-down develop­ ment tans thaf have typically subordinated natural resource use to commercial, rather than to sustainable, social ends. Perhaps the funda­ mental challenge to southern environmental movements is the perspec­ tive stated in the Bank's world development report for 1992: "Promoting development is the best way to protect the environment."·' Whether development, understood from the Bank's perspective, is a source of sustainability is the question.


Rethinking Development

Global Development and Its Countermovements


Where southern grassroots movements entail protection of local resources

environment, and a lterna tive development (WED). The redefinition symbolizes a mov emen t from remedies to allematives,J7 There are two aspects to this shift. FillIt, the WID position emerged to redress the absence of gender issues in development theory and practice. The argu­ ments are familiar: Women's contributions were made invisible by eco­ nomic statistics that measured only the contributions to development of income-eaming W1its (waged labor and commercial enterprises). WID feminists have identified problems and formulated remedies in the following wa ys:

become almost exclusively a women's preserve. As private property in land emerged, women's work tended to sp<lCialize in use of the commons fOL l"vestock grazing, firewood collection, game hunting, and seed gath­ ering for medicinal purpqses. These activities allowed women to supple­

and commW1ity; women typically play a defining role. Thls has always been so, but one consequence of colonialism is that this acti vi ty has


ment the incomes earned by men in the commercial sector. Women assumed a role as environmental managers, often forced to adapt to dete­ riorating conditions as commercial extractions increased over t ime.
The estabUshment of individual rights to property W1der colonialism

Women have always been de facto producers, but because of their invisibil­ ity, their technological and vocational supports have been minimal. Planners should therefore recognize women's contributions, espec ially as food producers for rural households and even urban markets, where males labor when not rrtigrating to the agro-export or cash crop sector,

cialized: In national stati stics, it is routinely COW1ted as contributing to the commercial sector. Conversely, the speciaJization of women's labor as "non­ income-earning" work remains outside the ccmmercial sector. Oppositions such as waged versus nonwaged work or productive versus nonproductive

typically privileged men. The result was to fragment social systems built on the complementarity of male and female work. Men's work became spe­

Women also bear children, and a more robust unders tanding of develop­ ment would include education, health care, family planning, and nutrition as SOCia l supports.

Fi.nally, because of patriarchal expectations that women perform Wlpaid
household/farm labor in addition to any paid labor, development plaruters should pursue ameliorative measures. Findings reveal thai where women can be incorporated into income-eaming activities, a net benefit accrues to com­ munity welfare since male income is often dSSipated in consumer/urban i markets.

work emerged. In modem national accoW1ting systems, only prod uctive work is COW1ted or valued, leaving much of women's work invisible. The domain of invisible work includes maintaining the commons. When we trace the develop ment of feminism, we find that it has circled back toward recovery of this sense of the commons. The journey has been both practical and theoretical-moving from bringing women into devel­ opment to an alte rnative conception of the relationship of women to development. It began with the movement to integrate women into devel­

By contrast, the WED feminist position includes critiques and remedies
as follows:
Conventiona l economics is hierarchical and male oriented in its assump­ tions about development strategy. It excludes the contributions of women and nature from its models.

opment in the early 19705. The first UN world conference on women was held in Mexico City in 1975 and concentrated on extending existing devel­ opment programs to include women. This movement was known as women in developmen (WID). Since then, the movement has changed

system of thought with a feminist perspective.46 Th e goal includes involV­ ing women as decision makers concemed with empowering all women in
their va.rious life si tua tions.

gears, shifting from what ROW1aq jahan tenns an "integrationist" to an "agenda-setting" approach, which challenges the existing development

tory rela tionship in

Developmen t practices, when informed by economic theory, reveal a preda­

which women

are exploited and SOCially and econom.i­

In developiQg an aJternative Wlderstanding o f the world and its need for
renewal, "the task is not simply to add women into the known equation but to establish a new development paradlgm."4lI Economic theory is incapable of reform because its rationalist (Eurocentric) approach abstracts knowledge from practice and history and presumes its universal application.

caUy marginilfued, and nature is plundered .

Feminist Formulations
The shift from integration to transformation of the development model has involved a re d e fini tion of feminism from WID to women,

native form

Scholar-activists have formed the Association of Feminist Economics. W stern traditions of rational science have devalued and displacc...>d practi­ e cal knowledge through colonialism and development.�9 That is, locaJ

of knowled ge is practicaJ and rooted in cultural tradJtions.

An alter­


ReUUnking Development

Global Development and Its Countermovements


cultures in both the European and the non-European worlds have been subordina ted to market rationality. CraIt traditions have been mechanized; rated, specialize<t and

empowerment of women in Third World settings should refer to those circumstances, not to abstract ideals of individual emancipation.

multiple cropping and animal h usbandry combinations have been sepa­

In other

i.n.fused with chem.ical

inputs; and Western mecfjcal

words, women's role in sustaining cuJtural and ecological relations
is complex, place specific, and incapable of being reduced to universal

science overrides traditional health practices. Finally, "the work of caring for the environment, and women's role


nurturers, are also undervalued in the logic of development."so CASE STUDY The difference between WID and WED feminism is further explored in the following insert. Human Rights versus Cultural Rights: The Ritual of Female Genital Mutilation Genital cutting, formerly known as female circumcision, retains promi­ What Is the Difference between WID and WED Feminism? nence in some cultures today as a rite of passage for young females. Global opposition to the ritual, in the name of human rights, is met by defense of it as a valued cultural ritual.

The diff rence in the two perspectives is not just one o emphasis. It e f involves how we look al the world, including what we take account o f WID f eminism tends to accept Ihe droelopmentalist framework and look f ways within droelopmenl programs to improve the position o or f women. For example, pushing f new jobsfor women in tire paid work­ or force occurs because women's unpaid work was implicitly devalued and removed from consideratum as an activity contribu ting to livelihoods. The movement from WiD to WED f ol/ows a conceptual shift from a universalist (rational) toward a diverse (expressive) understanding o f the world. It is a shift from a linear to an interrelational view o social f change. Thus, WED f eminists question the separation in W estern thought between nature and cultIlre, where nature is viewed as separate from and acted on by culture rather than each shaping the other. In the WED view, stewardship o natllre is understood as integral to the f renewal o culture rather than being constructed as a program per se. f

In Sudan, where 89 percent of

women are circumcised, justifications for the ritual include a custom orig­ inating in religious practice (sanc tioned, if not required, by Islamic law), the clitoris' evil properties, and the fertility-enhancing and male pleasure-enhancing consequences of circumcision. But subtler cultural functions associated with the patriarchal valuation of women, including the necessity of vi rginity at marriage, contribute to this ritual. Human rights activists view female genital mutilation as a violation of the rights of women and children across the globe, claiming that its pain and harm to women's sexual pleasure and physical and psychological health are cruel and UIUlecessary. The UN and NGOs pressure governments to stop the ritual, but often such pressure, including advocating education (which has been shown to change women's attitudes to circumcision), is experi­ enced as cultural inrperialism. Alternative ceremonies have evolved-such as in Kenya, where the ritual is changed into a rite of passage through a weeklong program of counseling-tha t still validate the cultures and their practitioners. In eastern Uganda, the Sabiny people use a symbolic ritual pioneered by the Elders Association, who also counsel parents about the

The WED position argues that, within the WID paradigm, omen presumed to be universally subordinate 10 men. Furthermore, develop­

medical risks of cutting in terms of exposing females to compromising childbirth later on.

HlV I AIDS and

position against the ideal of the emancipated (economically independent) woman of the First World."

ment is redefined as a mechanism of emancipation of women. But thls perspective is flawed insofar as it tends to judge nurd World women's

When conlronted with a conflict between human and cultural rights, who has the power to decide what is good for the people involved, and what

is a relative, not a universal, process, and we should be aware of how out ideals shape our assumptions about other societies. Concerns for the

t In making this comparison, WED feminism stresses that developmen

is a solution that is sensitive to the needs of a healthy cultural practice?

SOllrer:;: CrosscUt! (J 998b:A8J; Kohli and Webste.r (1999); Sob;esuzyk (wJ Williams (1997).


Rethinking Development

Global Development and Its Countermovements



Women and the Environment
At the practical level. women engage in multifaceted activity. Across the world, women's organizations have mobilized to manage local

rights to land, they are less able to engage in sustainable resowre extraction'. Environmental deterioration may follow. When we see women stripping forests and overworking fragile land, we are often seeing just the tip of the iceberg. Many of these women have been displaced from lands converted for export cropping, or they have lost common land on which to subsist. Environmental damage stemming from poverty has fueled the debate surrounding population growth in the former Third World. Population control has typically been directed at women-ranging from female infanticide to forced sterilization (as in India) to family planning inter­ ventions by development agencies. In Peru, government agencies seized the initiative from women and founding NGOs, deploying a women's ization campaign that has cut Peru's fertility rate almost in half since ulation of their social and biological contributions. health program to perform 80 percent of sterilizations in a broad steril­

Countless activities of resource management undertaken by women form the basis of these practices. Perhaps most basic is the preservation of bio­

resources, empower poor women and corrunwlities, and pressure gOY· ernments and international agencies on behalf of women's rights.

diversity in market and kitchen gardens. In Peru, the Aguarunu livaTO women nurture more than 100 varieties of manioc, the local staple root crop. Women have devised ingenious ways of household provisioning beside and within the cash-cropping systems managed by men. Hedgerows and wastelands become sites of local food crops." Forest

products are collected chiefly by women for home use or sale. Women in Ghana process, distribute, and market game. Indian women anchor

products (game, medicinal plants, condiments) are cultivated and har­ vested routinely by women. In rural Laos, more than 100 different forest

1961." Feminists entered this debate to protect women from such manip­ Feminists demand the enabling of women to take control of their fer­

imber forest products amount­ household income-with an array of non t ing to 40 percent of total Forest Deparbnent revenues-as do Brazilian

women in Acre, working by the side of the male rubber tappers " In Kenya, the Kikuyu women in Laikipia have formed 354 women's

On a global scale, the current world population of almost 6 billion is
expected to double by 2050, according to UN projections, unless more aggressive intervention occurs. Studies suggest that female education and health services reduce birthrates. The 1992 World Bank report pointed out that women without secondary education, on average, have seven children; if almost half these women receive secondary education, the average declines to three children per woman.56 In addition, recent evidence based on the results of contraceptive use in Bangladesh has been cited as superseding conventional theories of "demo­ graphic transition." Demographic theory extrapolates from the Western experience a pattern of demographic transition whereby birthrates decline Significantly as economic growth proceeds. The threshold is the shift from nologies spread. This is expected to cause families to view children increaSingly as an economic liability rather than as necessary hands in the household economy or as a response to high childhood mortality rates. Evidence from Bangladesh, one of the 20 poorest countries of the preindustrial to industrial society, in which education and health tech­

tility without targeting women as the source of the population problem.

ters and peasants; members contribute cash, products, andlor labor to the group, which in tum distributes resources equally among them. The groups have been able to pool funds to purchase land and establish small

groups to help them coordinate community decisions about access to and use of resources. Groups vary in size from 20 to 100 neighbors, both squat­

enterprises for the members. One such group, the Mwenda-Nure, formed among landless squatters on the margins of a large commemal estate.

Twenty years later, through saving funds, by growing maize and potatoes among the owner's crops, and through political negotiation, the group

purchased the 567-hectare farm, allowing 130 landless families to become farmers. Group dynamics continue thro.ugh labor-sharmg schemes, col­ lective infrastructu.re projects, and collective marketing. Collective move­ ments such as this go beyond remedying development failures. They

restore women's access to resources removed from them under colonial and postcolonial developments."

world, shows a 21 percent decllne in fertility ra tes during the decade and

Women, Poverty, and Fertility
Women's resource management is often ingenious, b·ut often poverty subverts their ingenuity, For example, where women have no secure

that 'development is the best contraceptive,'" adding that "contraceptives are the best contraceptive:'!i7

a half (1975-199 1 ) in which a national family planning program was in effect. The study's authors claimed that these findings "dispute the notion


Rethinking Development

Global Development and Its Countermovements



Feminist groups argue that family planning and contraception need to be rooted in the broader context of women's rights. Presently, almost twice as many women as men are illiterate, and that difference is grow· ing. Poor women with no education often do not understand their rights or contraceptive choices. The International W men's Health Coalition o identified the Bangladesh Women's Health Coalition, serving 110,000 women at 1 0 clinics around the country, as a model for future United Nations planning.

Women's Rights
Feminism has clearly made an impact on the development agenda since the days of WID's inception. However, the improvement of women's material condition and social status across the world has not fol­ lowed in step, even

if the statistical reporting of women's work in subsis­

tence production has improved." In 1989, at the end of a decade o f structural adjustment, the United Nations made the following report in its World Survey on the Role of Women in Development:
The bottom line shows that despite economic progress measUIed in growth rates, at least for the majority of developing cOWitries, economic progress for women has virtually stopped, social progress has slowed, and social well·being in many cases has deteriorated, and because of the importance of women's social and economic roles, the aspirations for them in current development strategies will not be met

This group began in 1980, offering abortions. With sug­

gestions from the women it served, the coalition has expanded into family planning, basic health care services, child immunizations, legal aid, and training in literacy and employment skills." The correlation between women's rights and low fertility rates has ample confirmation. In Tunisia, the 1956 Code of Individual Rights guar­ anteed women political equality, backed with family planning and other social programs that included

free, legal abortions. Tunisia is a leader in

Airica, with a population growth rate of only 1.9 percent. The director-gen­ eral of T unisia's National Office of Family and Population, Nebiha Gueddana, claims that successful family planning can occur in a Muslim society: "We have thirty years of experience with the equality of women and . . . none of it has come at the expense of family values."" And in Kerala, where the literacy rate for women is two and a half times the aver­ age for I ndia and where th� status of women has been high throughout the twentieth century relative to the rest of the country, land reforms and com­ prehensive social welfare programs were instrumental in achieving a 40 percent red uction in the fertility rate between 1960 and 1985, reducing the population growth rate to 1.8 percent in the 1980s.'" With supportive social conditions, fertility decisions by women can have both individual and social benefits. Fertility decisions by individual women usually occur within patriarchal settings-households or societies-as well as within definite livelihood situations. It is these conditions that the femi­ nist movements and women's groups have identified as necessary to the
ca.lcuJus in fertility decisions. Over the past decade, the population issue


Five years later, the United Nation's

Human Development Report


found that "despite advances in labor-force participation, education and health, women still constitute about two-thirds of the world's illiterates, hold fewer than half of the jobs on the market and are paid half as much as men for work of equal val ue. "M Even so, feminism has pu t its stamp on the reformulations of development; the UN 1994 rep ort declared the following in response to the crisis in the former Third World:
It requires a long, quiet process of sustainable human development . . . tal
development that not only generates economic growth but distributes its benefits equitably. that regenerates the environment rather than destroying it; that empowers people rather than ma rginalizillg them. It is development th at gives priority to the poor, enlarging their choices and opportunities and providing for their participation in decisions that affect their lives. rt is development that is pro-people, pro-nature, prcrjobs and pro--women."

has incorporated elements of the feminist perspective, which emphasizeS women's reproductive rights and health, in the context of their need for secure livelihoods and political participation." This view was embedded in the document from the 1994

In Muslim PIltures.. with considerable variation women's rights remain subordinated to Islamic law or, as Muslim feminists claim, to male interpretation of the Koran. I Morocco, for example, women require per­ n mission of male relatives to marry name their children, or work. Sisters .. inherit half that of brothers, and male coercion in marriage is customary. what they term Mlls/im apartheid, especially since the UN Fourth World ome n in Beijing, 1995. In the Mediterranean region, Conference on W Islamic women's groups across the Muslim world are mobilizing against

UN Conference on Population and

Development. Although contested by the V atican and some Muslim nations (particularly Iran), the document states that women have the right to repro­ ductive and sexual health, defined as "a state of complete physical, mental and social well-being" in all matters relating to reproduction."


Rethinking Development

Global Development and Its Countermovements


rapid urbanization has produced more educated and professional women who focus on changing secular laws to make an end run around Islamic law.67 Women within more traditional communities who resist custom also resist the neat adoption/imitation of modem practices and betiefs. Finally, in an evaluation of the Beijing conference, titled "Mapping Progress: Assessing Implementation of the Beijing Platform 1998," the Women's Environment and Development Organization reported that 70 percent of 187 national governments had laid plans to improve women's rights, 66 countries have offices for women's affairs, and 34 of these have legislative input. Pressure from local and international women's organi� zations since the Beijing conference, in countries as different as Mexico, Cermany, New Zealand, and Cltina, has made some gains, such as insti­ tuting laws against domestic violence.68

enthusiasm of the onlookers is flagging. imagined as a

. . . The globe is not any longer homogeneous space where contrasts ought to be levelled out, but as a discontinuous space where differences flourish in a multiplicity of


Cosmopolitan activisms question the assumption of uniformity in the global development project and assert the need to respect alternative cul­ tural traditions as a matter of global survival. They represent different ini­ tiatives to preserve or assert human and democratic rights within broader settings, whether a world comnumity or individual national or subna­ tional arenas. This is the spirit beltind the concept of "cosmopolitan democracy."n

Cosmopolitan Activism
Perhaps the litmus test of the globalization project is that as glob.1 integra­ tion intensifies, the currents of cosmopolitan activism deepen. Class or eth­ nic-based communities, regions, and networks mobilize to challenge and provide alternatives to the global order. Such challenges occur at or across different scales. Cosmopolitan activism recognizes that environmental issues are simultaneously labor issues and that women's issues are not just confined to fertility, reproduction, and women's work but also indude hous­ ing, credit, and health-where each of these climensions of development is gendened in a project realized through multiscale patriarchal structures. (Cosmopolitan activism includes cooperatives that reorganize a conunu­ nity acoW'ld democratic values and restoring local ecological balance. Indigenous movements may assert their cultural rights to regional territo­ ries. The fair trade movements may organize transnational networks to revalue producers and what is produced in relation to social justice con­ cerns shared with distant consumers. These multilayered initiatives con­ tribute to new thinking about governance: from hhe ide. of "subsidiacity" (locating decision making at the appropriate level, whether global or mW'licipal) to David Held's related call for a "cosmopolitan project"" to Wolfgang Sachs's notion of "cosmopolitan localism," 'based in the valuing of diversity as a universal right:
T Oday, more than ever,

Andean Counterdevelopment, or "Cultural Affirmation"

ous march




universalism is under Siege. To be sure, the victori­ and market has not come to a stop, but the

Cosmopolitan localism takes a variety of forms. One form is a dialogical method of privileging the local worldview, including an evaluation of modem Western knowledge from the local standpOint. This means learn­ ing to value local culture and developing a contextualized understanding of foreign knowledges, so that they do not assume some universal truth and inevitability, as claimed by Western knowledge and its officialdom. In this sense, modernity is understood as a peculiarly Western cosmology arising from European culture and history, which includes universalist claims legitimizing imperial expansion aCrOss the world. In the Peruvian Andes, indigenous writers and activists formed an NCO in 1987 called PRATEC (Proyecto Andino de Teenologias Campesinas), which is con­ cerned with recovering and implementing traditional Andean peasant culture and technologies via education of would-be rural developers. PRATEC links the Andean cosmology to its particular history and local ecology. It does not see itself as a political movement but rather as a form of cultural poljtics dedicated to nevaluing Andean culture and affirming local diversity over abstract homogenizing know ledges associated with modernity. One PRATEC peasant explained, "We have great faith in what nature transmits to us. These indicators are neither the result of the Science of humans, nor the invention of people with great experience. Rather, i t is the voice of nature itselJ which announces to us the manner in which we must plant our crops." Andean peasants grow and know some 1,500 varieties of quinoa, 330 of karowa, 228 of tarwi, 3,500 of potatoes,


Rethinking Development

Global Development and Its COWltermovements


610 of oca (another tuber), and so on. In situating

this cultural affirm ation,

context. That is, the Zapa/is/as (as the rebels call themselves, after Mexican revolutionary Emilio Zapata) perceive the Mexican state as the chief agent of exploitation of the region's cultural and natural wealth. In one of many communiques aimed at the global community, Suocomandante Marcos,

a core founding member of PRATEC explained that "to decolonize our­ selves is to break with the global enterprise of development." In the con­ text of the collapse of Peru's formal economy, the delegitimization of govenunent development initiatives, and envirorunental deterioration, PRATEC is the vehicle of a dynamiC alternative, roo ted in indigenous ecology, and a participatory culture that puts the particularity of the Wes tern project in perspective. When local cultures or communities are revalued like this, how can their romanticization (including privileging customary hierarchies of class, gender, or ethnicity) be avoided?
Sou"e: Apff el-Marglill

the Zapa/is/a spokesperson, characterized the Chiapas condition as
Oil, electrlc energy, cattle, money, coffee, bananas, honey, corn, cocoa,
tobacco, sugar, soy, melons, sorghum, mamey mangos, tamarind, avoca­ . dos. and Chiapan blood flow out through a thousand and one fangs sunk into the neck of Southeastern Mexico. Billions of tons of natural resources go through Mexican ports, railway stations, airports, and road systems to various destinations: the United States, Canada, Holland, Gennany, Italy , Japan-but all with the same destiny: to feed the empire. . . . The jungle is opened with machetes, wielded by the same campesinos whose land has been taken away by the insatiable beast. . . . Poor people cannot cut down trees, but the oil company, more and more in the hands of foreigners, can. . . . Why does the federal government take the question of national politics off the proposed. agenda of the dialogue for peace? Are the indige­ nous not Chiapan Mexican people only Mexican enough enough to be allowed an to be exploited, but opinion on national


The most potent example of cosmopolitan activism was the peasant revolt in Mexico's southern state of Chiapas, a region in which small peas­ ant farms are swrounded by huge cattle ranches and coffee plantations. About a third of the unresolved land reforms in the Mexican agrarian reform department, going back more than half a century, are in Chiapas. The government's solution over the years has been to allow landless

politics? . . . What kind of citizens are the indigenous people of Chiapas? "Citizens i fonnation?" n n

ClJmpesinos to colonize the Lacandon jungle and produce subsistence crops,
coffee, and cattle. During the 1980s, coffee, cattle, and com prices all fell, and

campesinos were prohibited from logging-even though timber

In these communiques, the Ejercito Zapatista de Liberaci6n Nacional (EZLN) movement addresses processes of both decline and renewal in Mexican civil society. The process of decline refers to the dismantling of the communal tradition of the Mexican national state symbolized

companies continued the practice n The revolt had these deepening class inequalities as its foundation. But the SOurce of the inequalities transcended the region.

in the

On New Year's Day, 1994, hundreds of impoverished peasants rose up
against what they perceived to be the Mexican state's continued violation of local rights. Not coincidentally, the revolt feU on the day NAFTA was implemented . T the Chiapas rebels, NAFTA symbOlized the undermin­ o ing of the revolutionary heritage in the Mexican Constitution of 1917, b y which communal lands were protected from alienation. In 1992, under the pretext of structural adjusbnent policies and the promise of NAFTA, the Mexican government opened these lands for sale to Mexican and foreign agribusinesses. In addition, NAFTA included a provision to dereg­ ulate commodity markets-especially the market for com, the staple peasant food. The Chiapas revolt illustrates cosmopolitan localism well because it linked the struggle for local rights to

infamous reform of Article 27 of the Constitution. The article now privi­ leges private (foreign) investment in land over the traditional rights of

C1Impesinos to petition for land redistribution

within the

ejido (IneUan com­

munity land held in common) framework . The

Zapa/i,/as argue that this

reform, in conjunction with NAFf A liberalization, undermines the Mexican smallholder and the basic grains sector. The stand that the

Zapa/is/as under­ u.s. "comparative advantage" in corn production (6.9 U.s.

tons versus 1.7 Mexican tons per hectare, including infrastructural dis­

parities) seriously threatens Mexican maize producers, especially because under NAFTA, the Mexican government has agreed to phase out guaran­ teed prices for staples such as maize and beans?' With an estimated 200 percent rise in corn imports under NAFTA's full implementation by 2008, it is expected that more than two-thirds of Mexican maize production

political and historical


Rethinking Development

Global Development and Its Countermovements


will not survive the competition." The NGO, Global Food Watch, estimates that 1.8 million Mexican maize farmers have been undermined recently by heavily subsidized com imports from the United Sta tes.'· Renewal involves the "citizens hip" demands by the Cruapas movement-meaning the need for free and fair elections in Cruapas (and elsewhere in Mexico), adequate political representation of campesino interests (as against those of Cruapas planters and ranchers), and the el_imination of violence and a u thoritarianism in local government. The EZLN's demands included a formal chaUenge to a centuries-old pattern of caciquis/llo (local strongman tra dition) in which federal government initiatives have been routinely thwarted by local political and economic interests.Tl The renewal side also includes the demonstration effect of the Cluapas revolt because communities throughout Mexico have since mobilized around similar demand s-<>speciaUy because local communities face common pressures, such as market reforms. Tn challenging local patron­ age politics, the ZApatistas elevated demands nationally for inclusion of campesino organizations in political decisions regarding rural reforms, including equity demands for small farmers as well as farm workers. They also advanced the cause of local and/or indigenous development projects that sustain regional ecologies and cultures." What is distinctive about the Chiapas rebellion is the texture of its political action. Timed to coincide with the implementation of NAFfA, it wove together a powerful and symboHc critique of the politics of glob­ alization. This critique had two goals. First, it opposed the involvement of national elites and governments in implementing neoliberal eco­ nomic reforms on a global or regional scale, reforms that undo the insti­ tutionalized social entitlements associated with political liberalism. Second, it asserted a new agenda of renewal involving a politics of rights that goes beyond individual or property rights to human, and therefore community, rights. The push for regional autonomy chal­ lenged local class inequalities and demanded the empowerment of cnmpes ino communities. It also asserted the associative political style of the EZLN, composed of a coalition of campes ino and women's organiza­ tions. Within the Zapatista movement, women have questioned the premise of official indigenous state policies that dichotomizes moder­ nity and tradition, insisting on "the right to hold to distinct cultural traditions wrule a t the same time changing aspects of those traditions demand for territorial and resource autonomy with the substantiv e that opp ress or exclude them."" Trus involves blending the formal

demand for women's rights to political, physical, economic, social, and cultural a u tonomy. The Zapatista program rejects integration into outside development projects, outlining a plan for land restoration, abolition of peasant debts, and reparations to be paid to the Indians of Cruapas by those who have explOited their hwnan and natural resou",es. Self-determination involves the de,'elop ment of new organizational forms of cooperation among dif­ ferent groups in the region. These have evolved over time into a "fabric of cooperation" woven among the various threads of local groupings. They substitute fluid organizational patterns for the bureaucratic organiza­ tional forms associated with modemist politics-such as political parties, trade unions, and hierarchical state structures.so In these senses, whether the ZApatistas survive the Mexican army's continuing siege of Chiapas and the current move to undercut the rebels with a regional investment and trade corridor (the Plan Pueblo de Panama-tapping into a low-cost pool of displaced labor that can compete in the "race-to-the-bottom" dynamic spearheaded by China), the movement they have quickened will intensify the tmresolved tension between global governance and political representation.

CI\SE STUDY The New Labor Cosmopolitanism:
Social Movement Unionism

One consequence of the globalization project is labor union decline, as well as the casualization of labor associated with the restructuring of work and corporate downsizing, as firms and states pursue effiCiency i n the global economy. Another is the relocation of union activities from the global North to the newly industrialized countries (NICs). A new labor internationalism is emerging to present a solid front to footloose firms that divide national labor forces and to states that sign the free trade agreement's (FTA's) weakening labor benefits.

The ,new labor internationalism was a key part of the political debate surrounding NAFfA. Led by the rank and file, organized labor joined

national political coalition of consumers, environmentalists, and others

in opposing the implementation of NAFTA, arguing that, since Mexican unions were organs of the state, which maintained a low minimum wage, N A FTA could not protect





Europe. Food Sovereignty Movements At the tum On International Women's Day (March 8) in 2002. Such social movement wtionism is spread· ing in middle-income states such as Brazil. this northern model (inclUding risks associated with lactory their daily energy requirements. and just working conditions? Sources: Silver (2003). sought alliances with independent Mexican unions. This development mirrors movements elsewhere in the global South. linking chocolate factories to the cacao bean fields.S."" Resistances to the global conception ing-framed by the alternative conception 01 the "world 01 labor car. as lanning people. sovereignty This Asian and Latin American plantation workers and peasants. asserts that "lanners' rights are eminently collective" and "should therefore 01 labor. what cosmopolitan institutional mechanisms. biocliversity is not only flora. connecting casualized: labor acrosspnational boundaries. water and ecosystems. and lour other U. Meanwhile six corporations handle larming and food scares) is exported as the solution to lood insecurity. earth. Seidman (1994). and that every people and each individual has the freedom to think and to . agreed to the lormation lollowing a long snuggle. and adressing issues be racism and immigrant workers. whereby 01 the twenty-first century. Calvo (1997). the Korean-owned Han Young plant in TIjuana (2001:24). is that we are rooted in the places where we live and grow our load. systems of production. 1997. including calling lor independent labor organizing in the IIInqlliindores. T and Canadian unions in the early 19905. linking economic rights (working 01 the social conITact and responsiveness to social jus­ conelitions) with political rights (independent' organization) and social rights (restoration tice concerns). which lonned an alliance with the U. 01 political systems. the International Conlederation 01 Free Trade Unions launched a three-year campaign. the Authentic Labor Front. forms of govenunent. targeting the production moelity chain. South Africa."Sl . For instance. means not just protecting local larming but revitalizing democratic. and indigenous communities across Airica. The sITanglehold 01 the Mexican government on union organization frayed.S." and lormed the Cocoa-Chocolate Network. T aiwan. United Electrical Workers. a/ld Costello (1994:153-54). Benerla (1995:48). where independent unions respond to global integration. It evolved a flexible.hi. TIE practiced organizing regionalized networks . has taken II labor organizes transnationaUy.276 Ret. the T ransnationals Inionnation Exchange (TIE) lorged networks organization across the world. realizing that in the latter is a growing segment ol luture membership. cultural. Ross and T racht. evidenced by the lonnation 01 an independent union. does it need to protect and sustain its rights to secure employment. formed in 1992. rural women. the corporate world. based on the global com­ TIE linked European industrial workers with social move­ 01 01 food security are mushroom­ 01 food. tar­ geting lemale workers in export processing zones (EPZs) as well in the informal sector. Via Campesina. Rawling all. CenITal. fair wages. 1998). clisplacing northern and southern larmers. The other side. and reinstatement 01 fired activists. 01 an independent union among its mnquil1l lac­ tory workers. Moody (1999:255-62). 815 million people (777 million in the global South) remain lood insecure. lamily larmers. The several million·strong fanners' transnational movement. Canaclian lanner Nettie Wiebe remarks. ASia. where unions spearhead broad coalitions demanding democratization considered as a different legal framework from those of private property. decenITalized struc­ ture that mirrors the age of lean production. The American Federation Labor and Congress 01 01 Industrial Organizations (AFL-CIO) has since On December 12.mmt unionism. unites local and regional chapters 01 land­ less peasants. and ecological processes at the subnational level. and South America. empowering labor and its activists across the networks. human and ec� nomic relations. centralized conlTol 85 01 the load chain (from gene to supermarket shell) intensifies. that is." Via Cam pesina. (1990). B"ch". in essence it is freedom. Dillon 11997. a 30 percent pay raise.nking Development Global Development and Its Countennovements 277 �) Subsequently cross-border unionism to protect labor on either side . is globally mobile. In the name 01 globalization. eamsters. Seen in this way. it is also cultures. be. Steel Workers. It claims that "biodiversity has as a lundamental base the recognition of human diversity the acceptance that we are different . unable to meet percent 01 the world grain trade. Their employment in globally competitive induslTies olten lends them a sITa tegic power through the sITike. and South Korea. beyond the nation-state. and integra ted. and North. "The cliIficulty for us. agricultural workers. launa.

g.8 million families landless . precisely because it this world. in this vision. Wi . labour. "Producing quality products for our own people has also become a political act .��� �f "1995 to 1999. Brazil imported rough) .S. i t also includes unemployed workers and disillu­ sioned civil servants. apples. in a context where 1 percent of landowners own (but do not necessarily cultivate) 50 percent of the land. and democratize access to know·how. hOUSing.000 families on 15 million acres of land seized by takeovers of unworked land. in Brazil. leaving 4.rganize agriculture on a Perhaps the most Significant chapter of Via Campesina is the Brazilian landless workers' movement.illion worth of wheat."&! Access this social project is the Freirian dictum that "a settle­ is a production unit .200 public . Under the objective economic conditions. The movement would pations from the Brazilian constitution's sanctioning of the confiscation of Wlcultivated private property: "It is incumbent upon the Republic to expropriate for social interest."" Via Cam pesina argues that food should not come under the WTO regime: Food production plays a unique social role and should not be subordinated to market dictates. Participatory bud­ geting allocates funds for repairs. Access to the land by peasants has to be Wlderstood as a guarantee for sur­ vival and the valorisanon of their culture. f ollowed land occu­ by trade. that is. president of the MST. which subordinate trade relations to the question of access to land. observes. "From 1985 to 1996. with active participation of farmers in building democratic definitions of agri­ cultural and food policies. and products not produced in Br importation of many products cultivable . the 60. and cannot be. While the consumer movement (e.. our proposal for land reform has to avoid the overSimplification of classical capitalist land reform. this annua1 average leapt to 6. of 4 mill . [and seizures-Wlder the slogan of "OCCUP}'! Resist! Produce!"-lead to the formation of cooperatives. building on the leamer's direct experience and communicating the inher­ ent value of rural life. including its disregard for nual well-being. democratize the agroindustrial process (something just as important as landownership). Fundamental to ment. economically and culturally appropriate to their unique circumstances. is "the right of peoples. the Movimento dos T rabalhadores Rurais Sem Terra (MST). 400 thousand establishments went bankrupt in the first two years of the Cardoso government. according to the agrarian census.$360 billion a year."" Education starts from children's daily perspective. which merely divides up large landholdings and encourages their productive use." Via Carnpesina adds. From that total. This differs from the production focus of the cor­ porate economic model. for purposes of agrarian reform. and Via Campesina declares. 96% of which were smaller than one hundred hectares. chHd care. soil improvement. teachers' salaries. the MST has settled more than 400. As the MST Web site notes. to formal education. In the past 17 years. this touches our very identities as citizens of to land is a first step. the Organization for Econom_ic Cooperation and Development (OECD) member states' agricultural subsidies have contin­ ued at U.91 The MST's 1.as is not perionning its social function. While Brazil's extensive system of agricultural subsidies was withdrawn. cattle feeding. a marketable good that can be obtained in whatever quantity by those that have the ManciaJ means. should also be a whole pedagogic unit.278 Rethinking Development Global Development and Its Countermovem ents 279 Food sovereignty. and between 1995 and 1999. credit. socially.000 towns and villages of the European slow food movement) has discovered that "eating has become a political act. rural unemployment rose different social base. and so on.8 billion dollars. by 5. . . financed by socializing a portion of settlement income. . Land is a good of n ature that needs to be used for the welfare of all. We are convrnced that nowadays itis necessary to reo." Between 1985 and 1996. and fair prices. set politically via the rules of fair trade to be negotiated in the United Nations Conference on Trade and Development (UNCTAD). The stimulus has been a Brazilian development model of structural adjuSbnent."" Democratic decision making is practiced to develop coopera­ tive relations among workers and alternative patterns of land use. farmer knowledges.000 farms disappeared. While in the 1980s. a rural exodus m. computers. and while dispossessed farmers comprise 60 petten! of its membership. and farmer rights. . 1995-96. which involve social mobilization "transforming the economic struggle into a political and ideological struggle. Food self-reliance comes first. food and land policies which are ecologica lly. fishing.h�: Brazilians occurred."" The landless workers' movement draws legitimacy for its U. . rural prop­ erty. democratize access to capital.. communities and COWltries to define their own agricultural.90 loao Pedro Stedile. mobilization. . Land is not.600 government-recognized settlements include medical clinics and training centers for health care workers and 1.5 million. the autonomy of their communi­ ties and a new vision of the preservation of natural resources for humanity and future generations. 942."" The MST is organized in 23 states of Brazil.

honey.g. with aid agencies sponsoring links between craftspeople from the global South and northern consumers with a taste for "ethnic" products. cocoa. The priority given to producing staple foods for low-income consumers (rather than foods for affluent consumers in cities and abroad) led to a 2003 agreement with the da Silva government for the direct purchase of settlement produce for the national Zero Hunger campaign. Responses range from withdrawal into alternative projects-(e. and the market for fair trade products (organic products such as coffee.000 children at any one time. All these responses express the uncertainties of social arrangements under globalizing tendencies. putting communi ty values and environmental stewardship before profit· making. and right-wing fundamentalism). workable alternative to corporate globalization. and rights to safe and healthy work conclitions). The movement market (in the absence of national regulations). bananas. and Fairtrade Mark-broke into European markets in the late 19805 and are now united under the Fairtrade Labelling Organizations international (FW). 306). and the MST sponsors technical classes and teacher training. But will fair trade remain a parallel movement only. social environmentalism.000. as one commentator notes. attempts to reframe development as a question of rights and social protections (such as the feminist movement. or can it mobilize public education and consumer purchaSing power to democratize the global market and lTansforrn its corporate management? Sources: Rayno/ds (2000:298. women's cooperatives. Smith (2002:40-41). and orange juice-representing about 60 percent of the fair trade market. pro­ hibition of child and forced labor. freedom from discrimination. alongside organic cotton jeans and an array of handi­ crafts) expands at between 10 and 25 percent· a year. . reducing chemical fertilizers. These collective enterprises show why the MST is considered a leader in the international fair trade movement. Fair trade has now blossomed as a method of transcending abuses in the free trade system and rendering more visible the conditions of production of globally traded commodities to establish just prices. . national. electrification. They produce not only jobs for thousands of members but also (increasingly organic) foodstuffs and clothing for local. [and] labor conditions . and direct understanding between producers and consumers of their respective needs. 30]. an umbrella NCO that harrnonizes c1ifferent standards and organizes a single fair trade Summary We have toured some of the world's hot spots in this chapter. The idea of fair trade paralleled the intensification of global integration. recovery of noncapitaUst agro-ecological practices) to . . FLO aims to "raise awareness among consumers of the negative effects on producers of inter­ national trade so that they exercise their purchasing power positively. eliminating herbicide use.280 Rethinking Development Global Development and Its Countermovements 281 schools employing an estimated 3. . MST co-ops offer a glimpse of what environmentally sustainable and sociaUy just commerce would look like. healthy consumption. Ransom (20010). And. A UNESCO grant enables adult literacy classes for 25. MST cooperative enterprises generate $SO million annually. and environ­ mental monitoring. Max Havelaar. environmentally sound practices. rninirnum social conclitions." Above world market prices are guaranteed. raising wages. encouraging TNCs such as Starbucks to offer a fair trade variety at the most and primarily is supplying a real.800 teachers serving about 150." Laura Raynolds notes that certification of fair trade practices requires "democratically organized associations of small growers or plantations where workers are fully represented by independent democratic unions or other groups . in Costa Rica. a cooperabve. f. achieved Fairtrade registration to supply bananas. tea. Three fair trade labels-Transfair. building democratic union procedures.. local rebellions. . noting the particular forms in which social movements respond to the failures of developmentalism and the further disorganizing impact of globalism. Many express a fundamental desire to break out of the homogenizing an disempowering dynamics of the globalization project and to establish a sustainable form of socia l life based on new forms of associative politics. Coopetrabasur. and global consumption. uphold basic lLO conven­ tions (including rights to association. and establishing a "social premium" set aside for commu­ nity projects such as housing improvement. for instance." • CASE STUDY The Case for Fair Trade offering a fair outlet for dependent 1T0pical producers. Fair trade exchanges have an annual market value of $400 million.

Overriding questions include how new political movements will zation at diiferent scales.000 global corporations that meets annuaUy in Davos. Wisconsin. those who come out on top win big. Stanford. the road to the political future has several forks. Georgetown. as well as the extension of the meaning of civil articulate with states and whether they will replenish or replace nation­ states. Indeed. the World Economic Forum." which states that "a ruptive impact on the economic activity and social stability in many countries" and that globalization "leads to winner-take-all situations. ecological campaigns by women's groups in West Bengal.93 Taking the Backlash to Globalization Seriously. In sum. to represent them and meet their needs. univers ities and offshore sweatshops producing logo-emblazoned cloth­ ing. In the following and conduding chapter. formed in 1998 after several years of campus organizing against the link between U. and the defense of forest dwellers throughout the tropics."'" the global managers recognize this. produced an article titled "Start mounting backlash to economic globalization is threatening a very dis­ While "a very disruptive impact" can be taken both ways. food safety campaigns in Europe. In sum. One broad consumer movement has been the United Students Against Sweatshops (USAS).h.inking Development Global Development and Its Countermovements 283 Other forms of resistance to the globalization project include mushrooming consumer advocacy. the emergence of solidarity networks among labor forces. How effectively these movements will interconnect politically-at the national. although monitoring remains incomplete. we are currently in a phase of "NGOization. Even ." in that national govern­ ments and international institutions have lost much of their legitimacy. Another question is how these movements will negotiate with existing states over the terms of local and/or cultural sustenance. They tran­ scend the centralizing thrust of the development states of the postwar era and present models for the recovery of democratic forms of social organi­ society. as the global market is revealed to be social invention with decidedly an tisocial tendencies. countermovements form in regional cereal banks in Zimbabwe.. regional. consumer movements have suc­ cessfully focused attention on child labor sti tching soccer balls in Pakistan. rather than to states or interna tional agencies. we examine how our future and the future of development are shaping up. an organization of executives from the top 1 . Potentially. and global levels-is an open question. the new movements breathe new We into politics. Continuing contention about the sbingency of the code has led to building occupations and mass meetings at a number of campuses. there is no doubt that the battle lines regarding the assumptions and content of the global development pnoject are being drawn and redrawn daily. Switzerland. and the losers lose even bigger. Nike responded by raising wages for its workers in Indonesia. which purchases apparel from the manufacturers.282 Re t. induding Duke. campesino credit unions in Mexico. Approximately 160 colleges support an anti-sweatshop code pro­ posed by the Collegiate Licensing Company. In 1996. Many of the people and communities left behind by the develop­ ment and globalization projects look to NGOs. Across the world. In related human rights areas. and NGOs take considerable initiative in guiding grassroots development activities. the opportunity presented by the globaliza tion project is pre­ isely the more complete disrobing of the emperor.S. even though the financial crisis has undermined their real purchasing power. and Cornell.

which speaks a sim­ ilar economic language but at a different scale with diflerent rules. which proved to be an unrealizable ideal. Countries may be equal in theory. even if multilateralism appears to be and the limits of the globalization project-induding the movement toward an imperial project. The nineteenth-century European socia l thinkers. • This does not mean that there has been no positive movement in basic development indicators (literacy. Development discourse may represent change in such a way as to serve powerful inter­ ests. (t is old wine superpower. the European colonies were expected to make the same journey. there is no doubt that the com­ mitment to liberalization on the part of the United States and other G7 states is less than absolute. saw social development evolving along rational industrial lines. biodiver­ sity. but some are more equal than others in practice. Where does this leave development? Development has always been a handmaiden to power. and development itself is in • serious question. Some say development as an ideal has lost its credibility. Still others believe that transnational corporations (TNCs) are suffic iently powerful that global integration through the market will remain a strong force. As a result. Some say we are in transition to a new. habitat. In this chapter. Privileging monetary measures discounts a range of other relations that matler: unpaid labor. losing salience. iIiformal knowledges. with uni­ versal expectation. Historical Choices Historical choices were made in the 19405. Still others say 8 Whither Development? I that development (culminating in an "age of high mass consumption") can no longer be realized because of "planetary overload" or because of the rapid polarization of wealth/poverty Or power /marginalization in a global market system. Eventually. as well as the ability 01 populations to find their niche in this process. It was replaced with another unrealizable ideal.' Others say • es It took the fork in the historical road favoring the W tern modeL over pos­ sible alternatives. This fork p rivUeges economic power and rationality over other ecological conception� of social organi zation. Others say this has been a pattern in a new bottle. it is not yet dear what may happen to the project of global development. Political mechanisms to sustain and redistribute resour<:es and equalize power relations appear to be ineffectu al and/or crjsis ridden. the world faces an uncertain future. . given recent reports from the United Nations that more than 100 countries have expe­ rienced declining living standards over the past two decades. but they grew out of global power relations. imperial project. Developmen t is a longstanding European idea combining. and so forth. innova­ tion). pursued by the remaining world project. Whatever the case. local markets. where the United States will uSe its military supremacy and bilateral trade deals to manage its rivals and its access to resources and markets. the globalization project. we reflect on the legacies of the development project all along.Whither Development? 285 development has been redefined in the age of globalization and that the "trickle down" of wealth now depends not on individual national policies but on the dynamism and prosperity of the global economy. Development spoke to the human condition. health. family/ community care. Legacies of the Develo pment Project Three observations can be made about the development project and its underlying message. standard of living. TlUs expectation was formalized in the development n an age of unila teralism. who gave us our theories of development. What it does mean is that the identification of development with measures that record cash transactions has privileged monetary relations and therefore those who manage monetary relations and those who tum money into capital.

' Reductionism links people's fortunes (and determines their futures) to the logic of a seemingly independent force: the economy. two elements of Enlightenment thought: the belief in unlimited progress and the promise of self-organization. "6 Erosion of the historic benefits of citizenship in the global North is matched by violations of human rights across the world as the competi­ tive dynamics of the global market forces a lowering of standards every­ where. We do have a corrunon future in that we all face growing environ­ mental limits. membership of the United Nations came with a system of national accounting that standardized the meaning of development across the world of states. to let go. In 2002. Ever-enlarging portions of the labor force assume part-time. the one of self-definition. workplace casualties are endemic in frenetic Chinese export industries. only measurable (monetized) human activity would be counted as economic or productive. The inevitable and unreflective comparison Europeans made between their civilization and the apparently backward culture of their colonial subjects produced a particular conception of modernity IIniverSl1lized as human destiny. assigned to the household. Reductionism includes the homoge­ niza tion of diets-symbolized in the explOSion of fast food (Beijing already has 80 McDonald's outlets) and the associated physiological problems of obesity and heart disease.000 spoken languages will exist by 2]00.286 Rethinking Development Whither Development? 287 uneasily. us from ourselves in time lies in having as many and as diverse languages and cultures as possible. the world is rendered increasingly vulnerable with Ihe onsel of monoculture: "The potential for the new laleral thinking thai mighl save Fouling Our Nest for an Uncertain Future The third observation has to do with global environmental degrada­ tion. One-third of U. Reductionism Henceforth. Women. defined by the Western experience and bundled up in the dis­ course of national economic growth. nomads." The way was clear to impose the Western model of political economy on the world that counted . India. From the West's perspective. As we have seen. and indigenous peasants. would not be counted. Certainly. it is cropping up all Over in alternative guises.' Progressivism legitimized Europe's emergence as the world capitalist power. and Latin America. low-skill. the West was also too tempting a source of aid and legitimacy to let go. But this plethora of development alter­ natives does not seek a singular. which was committed to an endless accumulation of wealUl as a rational economic activity and premised on subjugation of the non-European world. and forest dwellers could be marginalized or displaced as unproductive. It also includes linguistic genocide: Only 50 percent of the world's 6." where farmers become simply a new market for genetically altered seeds. Reductionism does not just discriminate. Employment security has declined as firms have either downsized to remain competitive in a global market or relocated produc­ tion to lower rungs on the global wage ladder. There are two angles here.'" In the same vein. The development project took the fork that led toward unJirnited progress. Under these circumstances.000 people died in work-related accidents. This conception governed the choice to institutionalize development on a world scale. It rejected the other fork. and low-paying jobs as lean pro­ duction generates a labor force with diminishing guarantees of benefits. the colonial world was too valuable. and patented by glObal companies and kept in the form of inteUectual property. paradigmatic status like the development project. hundreds of millions of farmers across the world controUed their seed stocks and their reproduction. in economic terms.' Meanwhile. Mexico. and because linguistic diversity is highly correlated with bio­ diverSity. from many newly independent political elites' perspective. The pressing issue now is whether the social and physical world can sustain current economic growth trends 'with current forms of energy. substituting monopoly for diversity." or "undeveloped" or "backward. and hundreds of thousands more were injured "as the price of economic progress. Just a century ago. All other activity was defined as "dependent. These changes have been in part responsible for the declining living standards and growing racial/ethnic tensions in the global North. where the future is unpredictable. it is also a flimsy paradigm on which to depend for our survival. the project of globalization has subordinated the social contract to market forces.000 to 7. jobs are estimated to be a t risk to the growing produc­ tivity of low-wage labor in China. Nation-states have managed this process of developmen t in the name of modernity.s. As postcolonial nations achieved independence. . 140. whereas today "much of the seed stock has been bought up. the embrace of transgenic technology threa tens sustainability in general. engineered. development is becoming an IIncertain paradigm.

we find a veritable economic revolution under way that has serious long-term implications. and companies such as Volkswagen and Ford Motor Company invest in expectations of huge automobile markets H Despite China's remarkable gains in industrial efficiency since the early 1980s. China could pass the United Stales in carbon dioxide emissions by 2025.s. By some predictions. the World Bank has estimated that 200 million more people were living in abject poverty at the end of the 1990s than at the beginning of that decade. etc. Maldistriblltion o Wealth f The other angle on the sustainability question is a 'reiatioruJl one. intensive agriculture has accelerated. About 80 percent of the world's income is produced and consumed by 15 percent of the world's popula­ tion. . for example. it ranks third in carbon dioxide emissions. in rich populations. T oday we face the health conse­ quences of disruption of the world's natural systems. various "lifestyle" diseases of affluence (heart disease. He observes. Another cumulative scenario is the unpredictability associated with global envirorunental changes. causing four main types of health hazard. McMichael suggests that these changes foretell threats 10 global public health arising from "planetary overload.rorunentaJ stTess. Then Came diseases of industrialisa­ tion and envirorunental pollution by toxic chemicals. grains fed to U. Chinese soils are deteriorating from reduced crop rotation. erosion. First came infectious diseases. and by 2025. More than 2.000 square kilometers of land turn to desert annually. and analysts predict a resul­ tant global grain crisis. localised probleen of envirorunental pollution"­ threats such as immune suppression from ultraviolet radiation.) emerged.' Meanwhile. which consumes groundwater 160 percent faster than it can be replenished. Meanwhile. in soils. Meanwhile. . But industrial development hastened these changes. the world's population has consumed as many goods and services. I. and in relationships among these. the world has crossed the tlu-eshold 10 declining rates of agricultural productivity. The rate of change is outstripping the ability of scientific diSCiplines and our capa­ bilities to assess and advise. among plants and animals. but it emphasizes that human cultural evolu tion has produced distortions of ecological relationships. and Ole loss of organic content of soils once nourished by manure-based farming. . more than 1 bil­ lion people lack adequate access to clean water. Since 1950. and the U. 80 countries already experience serious water shortages. 1 million acres disappear annually to urban-industrial development. Until the sudden acute respiratory syn­ drome (SARS) outbreak in 2003.288 Rethinking Development Whither Development? 289 Cllmlllative Deterioration We face aSlounding problems in the depletion of our physical envirorunent." In short. livestock equal as much food con­ sumed by the combined populations of India and China. and the average citizen now earns almost twice as much a year than the average [nelian ' Factories spring up overnight in the roughly 3. as those con­ sumed by all previous generations of people." Northern nations account for 75 percent of the world's energy use and have pro­ duced TWo-thirds of the greenhouse gases altering the earth's climate." Global resources are disproportionately controlled and consumed by a sman minority of the world's population. J. residing mainly in the First World. indirect health consequences of climate change on food production and the spread of infections.to $4-a-day wage rates for literate. Foreign investors have been taking advantage of the $2. and flooding or soil saturation by intensive agriculture. and the development project acted as midwife to their universalization. elisplacing rice paddies and farmlands.000 development zones. population has used as many mineral resources. For example. In the United States. two-thirds of the world's people will face water stress ' In China. con­ ceming the distribution of global wealth. The United Nations (UN) World Commission on Environment and Development has noted that "major. they have had a longer cultural gestation slemming from a long­ held belief in the West that the natural world should be subordinated to human progress." Millions of Chinese farmers have aban­ doned farming for higher paying urban jobs. the practice of development has brought us up sharply against growing environmental. ." Epidemiologist A. and 2 million acres of farm­ land are lost annually to erosion. behind the United States and the former Soviet Union. diabetes. Chinese demand for resources will have major impacts on serious global envi. Simultaneously. despite positive inelices of economic growth.H We cannot pin these cumulative trends on the d evelopment project itseU. soil salinization.s." As a powerhouse in the twenty-first century. assorted cancers. healthy employees. and loss of biological and genetic resources for producing medicines. in waters. unintended changes are occurring in the atmosphere. entailing circumstances that are qualitatively differenl from the familiar. China had been growing for two decades by 8 to 10 percent annually. This is not to deny the health gains associated with agrarian and industrial settlement. overfertilization.

. export processing zones [EPZs] vs. Only 5 percent of water services are in private hands. World Resources 1998-99 (1998).290 Rethinking Development 'Whither Development? 291 (ill tells o /loIIS) rLLL. A case in point is Ghana. resource. neither does it fall only on the roofs of the World Bank and the IMP. and Saur of France and Biwater of Britain use this kind of edict to cherry-pick lucrative con­ tracts.:Z� 123 � _ "' _ �""". the International Monetary Fund (IMP) and the World Bank demand privatization of water services as a fund­ ing condition." CASE STUDY Water. it falls on everyone's roof. including water. a public service disappears. emiss i ons from fossi l fuel use per capita 1!!!!! • • 186 mines water from surrounding borewells. citizen needs. Aside from the fact that 90 percent of wastewater in the global South is still dis­ charged into rivers and streams. urban flush toi­ lets vs. India. One conununity member exclaimed. small farmers.' 1 84 • United States • Gennany • China Phili ppines (il/ luoulrw o albic f Annual freshwater withdrawals per capita decimeters) � Venezuela o Elhiopia Annual fertilizer use per heetare (in kilograms) � �'7. Why are they so greed y? " Commercial eneTID' consumpLJon per capita (in giga joules) ��22. and a market-induced water shortage threatens. Everywhere-Unless It Becomes a Commodity of When a resource is commodilied. the looming global water crisis has two sources: (1) the skewing of water use priorities (agribusiness vs. It is too early to know whether humans are the ultimate "endangered spedes. Its availability on the market for nt constructs scarcity for others. water wars will define the twenty-first century.1 Resource Use in Selected Countries Source: World Resource Institute. Coca-Cola's bottling pla . urban poor. and General Electric. Enron.000 people residing within 1. afld rural water provision for local authorities and communities. Other TNes involved include Bechtel. it inevitably becomes the property some only those who can afford to buy it. equitable distribution of safe drinking water) and (2) pressures to privatize water. and implementation is anticipated by a provision In the North American Free Trade Agreement (NAFTA) that forbids a country from discriminating in favor of its own firms in the commercial use of its water resources. Globalize this. Jf oil wars marked the end of the twentieth century.2 miles of the plant and contaminat­ ing the remaining water. where an IMP loan tranche in 2002 was only released on condition that the government aimed for "full cost recovery" in all public utilities. Vivendi.d '� co. Suez. according to a member of the European Bank for Reconstruction and Development. and water prices go through the roof. sanitation. While the national budget is down­ sized to save money for loan repayment. � Comparative resource use Figure 8. and health limits. Water is understood to be the last infrastructure frontier for private investors. Water privatization is dominated by two French TNCs: Vivendi SA and Suez Lyonnaise des Eaux. Meanwhile. parching the lands of more than 2.. Suez. according to a World Bank vice president. "The rain does not fall only on the roofs of Vivendi. forcing women to walk much further to obtain it. Saur and Biwater. The General Agreement on Trade in Services (GATS) protocol (see Chapter 5) favors privatization of this public good. Water. In Vellor. and expansion opportunities are estimated at a trillion dollars. leaving sewerage.

Godrej (2003:12). 14. designed to promote equity and per­ sonal dignity. It was a powerful idea." She suggests that "with current technologies and meth­ ods available today a conservative estimate is that agriculture could cut . 38).g.org/iss lIes!PID. the UN leases its prestigious image and invaluable networks to the TNCs. sustainable and equitable solutions to water problems in water­ scarce countries. water privateers are plarming mass exports of bulk water.jsp?articleid =1603. The Alternative Forum: The Other V Public disillusionment with global development echoes across the y . The UN has established a "global compact" with the corpo­ rate world to give "a human face to the global market. privatization). edu­ cation. Importing water for only those who could afford it would reduce the urgency and political pressure to find real.. social. In tum. Global Water Corporation. a Canadian export trade rules. But as state sovereignty has been weakened by the mechanisms of global governance (e. which unsurprisingly but consistently favor market forces. Barlow (1999:2." then? Its status as an organizing Rethinking Development Development is at an important crossroads as the twenty-first century gets under way. industry by 50 to 90 percent. Amenga-Elego (2003:20-21). and arguably. and cultural rights through the mutual relations of its member states. Morocco. especially those that systematically compromise human rights (e. Global development looks increasingly like a rerun of the . it has been subject to these mechanisms itself (either because of dwindling revenues or because of dwindling mul­ tilateralism). and the Middle East. in retrospect. trade rules) instead of the UN protecting sovereign rights." consulting with !inns about universal labor and environmental and human rights princi­ ples in return for UN support of liberalization. But liberalization turns back the clock and intensifies the exploitation of southern resources (including labor) to feed the insatiable appetites of a global consumer class. it is clearer to more and more people who either participate or cannot participate in the con­ sumer econom . the UN Declaration of Human Rights offered the world a paradigm of fundamental human rights. signed an agreement with Sitka. IS Where does this leave "development. food insecurity. including the social COn­ tract between state and citizenry. whether TNCs or consumer purchasing power. Alaska. and food is a reasonable question posed by human rights and environmental groups who are concerned that UN-sanctioned corpora­ tions will only improve their ability to "greenwash" their global activities. its water demands by close to 50 percent. Certainly the top decile of the population of the global South has joined the world's affluent segment. and Canada banned the export of water. What is missing is political will and vision. As an organizing myth. . with some tangible benefits across the world. and cities by one-third without sacrificing economic output or quality of life. to 18 billion gallons of glacier water per year to China for bottling in a cheap-labor EPZ. Whether global !inns such as Dow Chemical. structural adjustment. Royal Dutch/Shell. This is capitalist develop­ ment. Massive population displacements are accompanied by the elimination of staple foods for near-S1. Maude Barlow distinguished between water trading and water shilring: "In a commercially traded water exchange.g." Should the availability and distribution of a basic and precious resource such as water or food be governed by market forces. . and British mining colossus Rio T mto can address the needs of the poor for basic health. 18. but is it human development? As noted earlier. development mobilized all societies via appeals to universalistic economic rationality anchored in . 7. buoyed by easy credit from a deregulated financial system.1bsistence dwellers who constitute the majority of the world's pop­ ulation. 27. those who really need the water would be least likely to receive it. development has been realized through inequalities.292 Rethinking Development Whither Development? 293 Meanwhile. colonial era. To encourage cor­ porate investment in impoverished areas of the world.corpwatchil1dia. patri­ archy. the ideal of national self-determination.. 33. The role of the United Nations has always been to safeguard economic. Resource access and resOurce use are governed by financial and myth has perhaps become clearer to us. it seems progressive compared to the globalization project. oices of the Planet is a group world. finn. which tend to favor only those with purchasing power and compromise human rights? Sources: www. which will be possible should the GATS protocol be implemented. While this revolutionary paradigm informed development ideals. class. . Scottish citizens resisted a plan to sell water to Spain. the UN Development Program (UNDP) sells corporate sponsorship for a new program: the Global Sustainable Development Facili ty.

and the subliminal insecurities people feel across a world marked by instability and upheaval. tribalism with mega-arms. which is. greater prominence in the wake of September 11. i t allows us to see that the history of development wove together the fate of people on opposite sides of the world."" Programmatically. the production of goods and services in the South has to increase and must be directed primarily towards meeting the enor­ mous number of basic needs th at are not being covered. explained the rationale for con­ tinuing aid: "We have a good argument now.rresponsible and unsustainable models of the North. does not imply perpetua ting the status quo between the supposedly developed No rth and the supposedly underdevel­ oped. in often the end it will work for none. concerned with "state effectiveness. this has led to a blend­ ing of two forms of global governance: liberalization and new forms of loan conditionality-assistance on the condition that governments attend 10 stabilizing th�ir populations. UN Secretary-General Kofi Annan has articulated. as general indicators. . the Bank stated in world development report of It is intere9ting to observe that the members of the Alternative Forum perceive Westerners as being at a comparative disadvantage becc luse they are mud\ more thoroughly incorporated into and therefore more thor­ oughly affected by the reversals of the development myth. Immigration. if you don't help northern Africa. as practiced by the Movimento dos Trabalhadores Rurais Sem T erra (MST) and Proyecto Andino de T ecnologias Campesinas (pRA TEC) (see Chapter 7). the better we can respond to it." This is pari of a broad strategy of stabilization to sustain the idea of "glob­ alization" as the path to economic well-being. on several occasions.294 Rethinking Development Whither Development? 295 representing networks of nongovernmental organizations now challenge the project of global development. out of pure seU interest they should try to adapt their productive systems as far as possible to local ecological conditions. ." As Wolfgang Sachs warned in the early fuU because of how it is framed: 1990s." or strengthening local commwtities.'9 For the first tim� the Northern countries themselves are exposed to the bit­ ter results of Westernizing the world. This factor has been included in the the site of patriarchy and authoritarianism undiluted by individual rights. elevation of the need to sustain community and ecology. has assumed . W orld Bank's new lending criteria. Thus. Poul Nyrup Rasmussen. Decentralization may mean embracing the idea of "subsidiarity. then you will have these poor peeple in our society. This. local systems do not have a monopoly on virtue-they are if you don't help the third world. This has been referred to as "blowback. The sentiments expressed here speak to several issues in the process by which development is being reconceived: rejection of market rule (where social organization is subordinated to economic laws). the countries of the South have to use up the world natural resources needed for this increase in production. 2001." situating decision-making power at the lowest appropriate levels/loci. . Strengthening them means engaging in reflexive learning to overcome historic inequities. rather than copying the i."ll The notion of security with its underlying racism. One reversal that is currently redefining the politics of the global North is the perceived its 1997 the following: The cost of not opening up will be a widening gap in living standards between those countries that have integrated and those that remain outside. population pressure. . the prime minis­ ter of Derunark. to develop more locaUy seJ(­ o sufficient economic systems and to disassociate from traditional techno-­ cralk and economic indicators. means generating and using as much of productio n locally as possible because this is the level al which real human needs are most clea rly expressed . With or wi tho u t U1e permission of the North. a very concrete one. and the substantive democracy of decenttalized social systems. and above aU. the view that "if we cannot make globalization work for all. for ordinary people. However. Governance and Security In an era when foreign aid faces growing skepticism. but it is necessary to remember that the first rule in responding to gloomy predictions is to recognize that the more we can understand the process. It is as if the cycle which had been opened by Columbus is about to be closed at the end of this cenrury. above aU. the North is probably already starting to expeIience this procesS. T overcome the myth of development.20 Of course. In fact. The end of the Development Era wiu be harder for the North than for the South. if we take the level of social conmet. transforming sovereignty into a "relative rather than an absolute authority. the env ironmentaL consequences of worldwide industrialization threaten to destabilize the Northern way of life. Its worth quoting in (NGOs) that 1994 proclamation is threat of formerly colonized peoples-whether through global migration or terrorism. if you don't help eastern and centtal Europe with a little part of your wellare. Most important. Obviously. the fear of the future and the social ful� fillmen t of people. South.21 These are admittedly alarming notions.

under the guise of responding to the voice of poverty (see the World Bank's [2000b] Voices of the Poor). If! thai sense. with liberal assistance from intenational donor agenCies such as the Ford Foundation. NGOs are allowed to lend to self-help groups (SHGs) at rates up to 15 percent." And the business is shared around. UNDP. Bangladesh. Bllt gives the benefits from them­ mu/ti/nteral institutions SlIeI.2. empha­ sis on governance includes decentralization to partner private entrepre­ neursrup and the release of social capital. and their NGO supporters. responsibility devolves "downward" to muniCipal authorities. "" • CASE STUDY Global Meets Local: The Microcredit Business Figure B. the development establishment seeks to preserve its hegemony. but. Microcredit has mushroomed. The Bank became more circwnspect in light of Malaysia's relative success in implementing capital controls in defiance of the Washington consensus (see Chapter 5) and. so multilateral development banks embrace microcredit as an opportunity to replace capital-intensive • "development as charity" with the more profitable "development as business.14 The leap may be a leap of faith: faith in institutions created to sponsor liberalization. Field Guide to the Global Economy For lagging countries the route to higher incomes will lie in p ursuing sound domestic polkies and building the powerful support to such policies-and increases capability of the stale. Interest rates for microcredit range between 20 and 100 percent. The Asian financial crisis of the late 1990s weakened faith in liberalization---<emphasizing that financial deregulation promotes destabilizing speculation rather than social investment. the loans are often used to meet daily consumption needs. as lite World Trade Organization have an important role to play in providing countries with the incentive to l1uzke lite lenp.296 Rethinking Development Whither Development? 297 J '060 1070 "eo "" for development and should encompass partnerships among aU elements of civil SOCiety. In so doing. to assist impoverished villagers. each of whom receives a loan and guarantees that all members of the cell will repay their own loans at an interest rate of about 20 percent. It extends small amounts of commercial credit for microenterprise to cells of five women. it disconnnects deteriorating local conditions from their global political-economic context and depoliticizes poverty. banks lend to NGOs at 9 percent. the Source: Sarah Anderson and John Cavanagh. This may be a new development strategy. acknowledged that privatization had done little to improve the fiscal position of Latin American governments " Meanwhile. but it displaces responsibility from the development establishment to the poor. begun b y Muhammad Yunus i n 1976 in a village near Cruttagong. Share of Global Income over (2000). this bank has rapidly become known as the champion of poor women across the South. With a rugh rate of payback of 90 percent or more and a loan volume of $500 million in 1995. and the Swiss Agency for Development and Cooperation. Its pop­ ularity stems from the model of the Grameen Bank. Grameen has been so successful that it no longer requires sub­ sidies from donor governments or the International Fund for Agricultural Development." The World Bank's world development report of 1999-2000 urges participatory policymaking. integration but it cannot substitute for them . communi­ ties." The Bank's reflex is to stabilize populations impoverished by structural adjustment and continuing debt service. T une Microcredit is one of the fastest growing world industries today. as Gayatri Menon has shown. in 2002. Through this redefi­ nition of the problem and the governance solution. In India. globalization begins a/ home. observing that "institutions of good governance that embody such processes are critical . Nonetheless. and SHGs in tum charge up to 30 percent to individual borrowers. The expectation is that the poor will use the credit for commercial purposes. for example. In a context of state shrinking via structural adjustment ($900 billion public assets sold in the 1990s).

development theory was formalized as pa. countermovements have emerged with alternatives that propose reembedding markets in society. Initially.298 Rethinking Development Whither Development? 299 development community is riding the microcredit bandwagon. Wallerstein critiqued developmental­ ism as an organizing myth. new socialist/dependency interpretations of underdevelopment as a historical condition. nialism. prov sion of health CaIe. The level playing field that is supposed to drive this operation is a fiction at best and an assertion of power at worst. b y invitation only." and because it has displaced other. there are other microcredit operations such as the Self-Employed Women's Association (SEWA) of Ahmedabad. this progressivism in tum shaped and formalized development theory in the mid-twentieth century. Like the midclle classes of industrial society. the world has been a hierarchical system organized into unequal the WEF theme was the fragility (and therefore the growing illegitimacy) of the global system. The World Bank established a microlending arm. A powerful theoretical critique of developmentalism came in Immanuel Wallerstein's formulation of world-system analysis in the made was twofold. the southern European states. at the World Economic Forum (WEF). and the Soviet bloc countries. New Zealand. destabi­ lizing capital flight as wealthy nationals shift their-and sometimes the publi c's-money to more inviting regions of the global economy. India. since the rise of the sixteenth-century European capita lis t world economy under colo­ early 1970s. project institutionalized rules drawn ITom neoliberal This economics emphasizing openness and downgrading of the development state. given that it is consistent with the dominant paradigm of sell-help. Neoliberal globalizers meet annually. The countermovement challenges the belief and outcomes of neoliber­ alism. and Canada. that focus on empowering women with practical support programs such as labor advo­ cacy. notions of social organization. such as countries privatizing their microlending institutions and strengthening their debt collection laws. training." In 2001. and so forth. Such globalists deploy free trade argwnents to "open" national economies to privileged investors and transnational corporations. then? Let us retrace its steps. In the postwar world. When the 1980s debt crisis punctured illusions of development. both because of its misapplication as a notional strategy in a bierarchical world. It took its cues from nineteenth­ century European social thought. the newly industrializing countries joined other semiperiphera! states such as Australia. Menon (2001). European social theory has recen tly been criticized for its Eurocentric "gTand narra­ tive" of history and social progress. Growing Third World poverty pro­ voked the 1970s "basic needs" approach. debt management became the new orthodoxy. . of course. they propose deregulated money marke� that encourage financial speculation and huge." And while the CGAP program comes with conditions gov­ erned by profitability considerations. i How is it possible that a well-intentioned idea of empowering poor women with credit could become a method of incorporating "informa!s" into the formal economy and exposing them to its financial disciplines and mechanisms of governance and surveillance? Scurees: T yler (1 995:Al).IIQm (1 997). Switzerland. comprising the middle-income states.2? As the development project proceeded. zones of specialization-with Europe in the center and the colonial and postcolonial world in the periphery. decentralization. The debt regime was a dress rehearsal for a reformulation of the development enterprise as a global project. the Consultative Group to Assist the Poorest (CGAP). which was concerned primarily with different aspects of the rise of capitalism and industrialism. known colloquially as club. and. with the goal of "systematically increasing resources in microfinance. First. reducing the intensity of resource use. there is also a buffer zone between the poles: the semiperiphery. and democratizing politi­ cal and social decisions at all scales.rt of the foun­ dation of the development project. Neolibera! globalists believe in the rationality of an open world economy. Accompanying and shaping these developments. development was redefined in response to changing conditions. more equitable. where only some states can "succeed. and rede­ finitions by the UNDP of human development indexes " The rise of the newly industrializing countries produced the World Bank's notion of development as participation in the world maIket in 1980. Singll alld Wy. Kone (1 996). the "rich man's Development in Contention Where does this leave the concept of development. giving rise to the development project. Second. at the Fourth World Conierence on Women in Beijing in 1995. The argument he in Davos. and stimula ting "social capital" at the local level to promote community­ based entrepreneurship and given that structural adjustment programs have forced the poor into sell-employment.

who noted the universal implications of this crisis: There is a wUversal perplexHy because people don't understand how such a thing could happen in a white. out). Latin American globalisation into a country imploding economically. Aviles (2002). Direct forms of democra cy have mushroomed. Argentina is still a big "They are developing tactics that allow some of the most marginal people on earth to meet their own needs without using terror-by blockading roads. the civic response to this market-enforced crisis has demon ­ strated citizen action that is outside of regular institutional frameworks for poli tica l involvement. sma ll businesses and merchants. producing for the populace. (2002). they discover the self-organizing principles that anchor the Enlightenment and yet have been submerged in the historic project to develop the wo. workers. NGOs estimated that 8. The economy minister declared a cO/Talito on bank deposits. the W rld Bank. but Argentina could not). the "bl ue-eyed boy" refer­ ence resonates with an observation of the Urug u ayan-born. unlike their leaders. and what was once caUed the world's breadbasket was awash day from the surroWlding provinces and that there were graphic explOSion. for example. have nothing to lose. BretlJarl. regions condeJlUled by destiny to suffer poverty because of the color of their scientists] who. and socially. and the Wlemployed (piqueteros) who appropriate public spaces and maintain factory operations. and organize community kitchens.000 pesos a month. They set up barter arrangements. contrasting Argentina with Enron: ElU'On has had its debt payments suspended. 2001 Nobel laureate and former chief economist of the W orld Bank. the IMF after years of "second­ . In 2001. The new direct democracy movement comprises a mix of neigh­ borhoods. official Wlemployment was 22 percent and rising." Is it not ironic that when citizens are disdplined with grinding austerity in the name of financial security and maintaining global development. maintained by the ruling elite (and in a world where the United States could finance its deficits. 3. as a result of miscegenation that did not bear good fruit.1 0). c elebrated .300 Reth. brainstorm new forms of civic organization to address the health crisis. 28). schooling. manage provincial bud­ gets. libraries. in hWlger. The share­ holders had a process. exchanging everything from old video games to homemade food or skilled services. and its own credibility. in London.01). Nogueim. " Lewis (1997. Meanwhile.000 homeless. Larry Elliott. EWolt (2002.000 nupos (new poor) entered Buenos Aires every Staple foods doubled in price. What is so instructive about Argentina's financial crisis is that it was the lMF's model Latin student in the 19905. occupying land and resisting displacement. and 43 percent of the population was impoverished (20 percent officiaUy destitute). Enron is (orced t open o o whole of US business is having to dean up its act fast. Legrand (2ooBO). and so forth. put it in 2002. The global system 's legitimacy problem only intensified when Joseph Stiglitz. by which time it was necessary to bail Argentina. As T oronto-based journalist Naomi Klein remarked. finally coUapsed. declared that Argentina needed Ann Pettifor.in. turned off the cash spigots (Wltil September 2003. Argentina's economy shrunk by 20 percent between 1998 and 2002. identify underdevelopment and poverty with skin. Y ung and Clltrgnin. and Spain. Klein (2003:10). At Enron the advisors to the company are in shit street. aml o Strohm (2003). Compare that to Argentina. born of hWlger by people who. The IMF is still caUing the shots. The event itself calls into question the theories of [social social explosions-things they say occur in obscure regiOns of the planet." Interestingly enough. AJ-gentina has to pay the lMF . The fiction of parity of the peso with the doUar. generation shuctura! adjustment" (linking a line of credit to "good governance"-designed to thoroughly privatize the economy). as one journalist.kiJ1g Development Whither Development? 301 • CASE STUDY author. Frasca (2002. and the middle-dass (casero­ lazos). Eduardo Galeano. and the secret. of Jubilee Plus an international bankruptcy court to provide justice for debtors and creditors.ld? up its books. politically. In 2002. squatting i n buildings. gardens.26. weU-nourished country without a demo­ Argentina's Turn to Cry Argentina experienced financial crises in 1995 (part of the tequila effect related to the Mexican peso crisis) and 1995-1999 (contagion from the 1997 Asian financial crisis). the COWltry "has been transformed from the blue-eyed boy of Sources. whereby Argentinians could with­ draw only 1.

chaUenges project of development and are Toward an Imperial Project? The op e n-world rhetoric of the globaliza tion project has always been hon­ ored in its breach. and Ecuador. and the breaking down of artificial bar­ riers to the flows of goods. But the human spirit refuses to be subjugated by a world-view based on the dispensability of our humanity. in which cit­ half of the municipal b udge t.000 delegates in 2003). knowledge. It is the more narrowly defined economic aspecls of globaL­ ization that have been tl'le subject of controversy. . . . The IMF has made mistakes in aU the areitS it has been involved in: development. it is a plura l. not an organization. forging an alternative orga­ nizational and discursive space to that occupied by corporate globaliza­ tion. This is not to say tha t the global j ustice movement should not work to reform or trans­ form existing institutions. it has privileged W1derlined by. Each January.mm. services. labor movements. and (to a lesser extent) people across borders. women in development [WID]) worked an indispensable part of to reform or institutionalize cOW1terveiling power within institutions or societies. . Pa rty izens and famous for its now the target of a new sensibility that the Singular. A spokesperson for the Living Democracy Movement. choice facing the world as between a path of exclusion. diversity.)() a path of inclusion. . Markets and consumerism expanded. and the international insti� tutions that have written the rules. and the World Health Organization [WHO]) to work across borders. and the policies of the institutions naturally reflect this . capital. our identity as members of communities. synchronized with the WEF meeting. all of their lending). " It is not a "locus of power. . Many. . The WTO has been deployed as a weapon to shrink . of the World Social Forum (WSF) as other trends. rather.302 Rethinking Development Wh. for example) and the emergence. . Its Charter of Princip les declares that it is a bod y "rep resen ting world civil soc iety.. While almost all of the activities of the IMF and the World Bank today are in the developing world (certainly. . reductionist vision of development. . critiques globaliza tion thus: The phllosophical and ethical bankruptcy of globalization was based on red ucing every aspect of our lives to commodities and reducing Our identi­ ties to that of mere consumers in the global marketplace. . as well as the expansion of international civil society (to join organiza tions such as the International Red Cross). [and] encourages its participant organizations and transportation and communication. monoculture. in 2001. He went On to say." as s uch. b u t it also has the historic opportunity to do this by drawing On and supporting alternative models that are not para­ lyzed b y the logic of economic reductionism and political ra tionality.it in Porto Alegre-stronghold of the Brazilian Workers' The legitimacy problem Stigli tz identified is the universalist themes of modernity-which of course crystalliZed in the practice of partic ipa tory budgeting. diversified context that." he celebrated the creation of new institu­ movements to siruate their actions as issues of planetary citizenship. and corporate rights and tions (the WTO) to join with existing ones (such as the UN. The result for many people has been poverty and for many countries social and political chaos. Our capacity to give and share was to shrink. among growing dissatisfaction with necliberalism across Latin America (significant regime shifts in Brazil. . ." it celebrates decide On the allocation of difference. Our role as custodians of Our natural and cultural heritage were aU to disappear or be destroyed. The institutions are not repre­ sentative of the countries they serve. they are led by represen­ tatives from the industrialized nations. which mandate or push things like liberalization of capital markets.)"2 Perhaps the distinguishing mark of this world countermovement is its commitment to building SOlidarity out of a respect for diverSity. . Voodooa Shiva.g. interrelates organizations and movements engaged in concrete globalization as "the closer world which has integration of the coW1tries and peoples of the been brought abou t by the enormous reduction to costs of action at levels from the local to the international to build another world . crisis management. a a countersu. of these aspects of globalization have been welcomed everywhere. While the WSF slogan is "another world is possible. and in countries making the transition from communism to capitalism . Underlying the problems o( the JMF and the other interna­ tional economic institutions is the problem of governance: who decides what they do. Our capacities as producers. and citizen rights. the International Labor Organization.ither Development? 303 published a book titled GlobaliZillion and Its Disconlellls " Defining "in a decentralized fashion. The institutions are dominated not just by the wealthiest industria! countries but by commercial and financial interests in those countries. The WSF is a springboard for constructing enduring networks of relationships among diverse civic and cultural initia tives. hW1dreds of global civil society organizations meet at the WSF (more than 100. perhaps most."Jl The WSF is a broad movement to reembed markets SOCially viewing the . While this has been giving substance to modernity. viewing itseU as a process. . Venezuela. Previous antisystemic social movements (e. . .

the builder of the F-15. Chile and Singapore Signed a bilat­ eral trade deal with the United States. unrestricted by international treaty. The incoming director-genera.S. Supachai Strategy of the United States of America (NSSUSA). "At no time in history has the international security order been as conducive to American interests and ideals. market access. D." and " our long-term objective should be a world in which aU countries have investment-grade credit ratings that allow them access to international capital markets and to invest in their future. After the September 11. Whatever happens. the wro is also accountable ity among states regularly asserts itself (particularly as the wro makes to them or at least their competitive relations.s. This asymmetry of power has brought the WTO to a virtual standstill over agri­ culture. military presence beyond the 130 nations already in deployment. if the U. in Cancun. it wiu be highly appreciated. And the hidden fist that keeps the wortd safe for Silicon Valley'S tech­ nologies is called the United Stales Army. there has been North continued its use of threats to obtain free trade and investment con­ much talk about the threat to globalization of rising bilateralism and uni­ Panitchpakdi."" During the 1990s. in August 2003. with a plan for permanent U. put it. and North Korea as key short­ term targets. insisting that the World Bank's development assistance is tied to "measurable goals and concrete benchmarks. Mexico. and free enterprise. defeated in 1998 (largely by countermobilization of citizens and NGOs concerned about unregulated financial flows). free markets and free trade to every comer of the world. President B elaborated the elements of this imperial project in the National 305 h property rights."" As managing director of the world's largest bond investment firm can feel the sense of trepidation. not by vote). states and social protections.. named Project for the New American Century (PNAC). will main­ tain the way we use multi. and secure intellectual decisions by consensus." The moral of this story is that the United States entered the new century with a new project to strengthen its position in the globalization . minus the liberal internationalism. "American imperialism is. Because of this the inequal­ . in which those states agreed to surrender capital controls in return for more favorable U. and the White House. national security. The most glaring contradiction con­ cerns agricultural trade rules." values to be protected "across the global and iICro6s the ages. attacks on New York and Washington. signaling a movement to revive the Multilateral Agreement on Investment (MAI).. Iraq. A PNAC report issued in 2000 stated.1If At that time. Air Force and Marine Corps." The United States "enjoys a position of unparalleled military moment of opportunity to extend the benefits of freedom across the globe." The NSSUSA document argues that the twentieth century produced a s. and northeast Asia). The men who (PIMCO) remarked at the time. international law. sustainable model for national success: freedom.S. expand trade. strength and great economic and political influence" and "will use this We will actively work to bring the hope of democracy. democracy. the Defense Department.:ty lra� "single. or the sensibilities of the United Nations.C. Thomas Friedman.latera'! solutions. military and economic dom­ ination of every region of the world (within and beyond Western Europe created the project joined the Bush administration. A think tank. with little or no regard for world opinion. with its new milita doctrine of preemptive (or preventive) war. subsequently used ag. a retreat away from global capitalism. running the Pentagon. a unilateralist strain emerged within the higher reaches of the American state. "I lateralism." The report advocated an expan­ sion of the U."" Meanwhile.! of the WTO. deve/opmen'. remarked delicately about impending war in Iraq in 2003.c. where the global North continues to protect its farms with huge subsidies while pressuring the global South to open its agricultural markets to food surplus dumping (see Chapters 5 and 6).s. Since then.304 Rethinking Development Whither Devet"Plllen t? 2001. It's a retreat from the invisible hand of markets in favor of a more dominant role for the visible fist of govern­ ments. well before President Bush referred to them as the "axis of ev il" in 200l. by definition. is this simply a shift in emphasis in the hand-fist relationship? As The hidden' hand of the market will never work without a hidden fist­ McDonald's cannot flourish without McDonnell Douglas. The challenge of this coming century is to preserve and enhance this 'American peace. Made up of member states." But the pro-free market journalist. national security is foreign policy. At the Doha Ministerial of the WTO in 2001.S. evident in the breakdown of the WTO Ministerial in September 2003. was founded in 1997 by conservative inter­ ventionists concerned to consolidate a global empire. this bastardized twenty-first-century Pax Americana would require "constabulary duties" (the United States as policeman of the world). the global cessions from countries in the global South. Multilateralism may be shared in principle but not in practice. Not wilike the ordering of the world in the 19405. and such actions "demand American political leadership rather than that of the United Nations. PNAC identified Iran.ins l in 2003."" Here. The document went on to identify multilateral institutions as explicit instruments of U.

Development was a power­ Given the circumstances of such a W1ilateralist move. A ment is increasingly beholden to global developments as public goods and degrees. security. The fallout from the failed Ministerial is that the U. It requires preservation of community (at all levels. govenunents. a rivals in the European Union. bilateralism along regional lines will substitute for an impaired rnultilateralism. new cosmopolitan practices. and social legacies of lines and internal relations via information management. overreach is often highly correlated with - distinguishing feature of this incipient imperial project is its concern with markets to sustain a dominant consumer state.n./European Union agenda will require future negotiations are less likely to reproduce an asynunetrical agenda modification in context of a revitalized segment of the global South.S. This gathering of peoples contract. Middle East. New partnerships between the Group of 20 (G-20).306 Rethinking Development Whither Development? 307 instability. That is. These forces-a renewed solidarity within the global South and a parallel soli­ sively at Cancu.S. gained through the September 11 attacks (even though the PNAC vision and Iraq was a first step in the reordering of the power balance in the ance. and. from micropolitics to macropolitics) in inclusive Human sustainability will depend on more than environmental terms rather than the exclusive or specialized terms of economic global­ ization . These legacies con­ development. many of whom also identify with tury wears on. China. Neoliberalism. shore up the social protective global countermovement also pursues development. In fact. its consolidated forces from the previous Seattle Ministerial (1999). . a more powerful U. India. give substance to human rights. and trends. This concept manages foreign relations to maintain the supply As with all imperial ventures. their public capacities-those geared to mounting resistances." are mushroom­ ing in relation and as alternatives to the narrowing. loss of edge in electronics. or indeed bankruptcy. "regime change" in Afghanistan ordering the world was bound to appear-accelerated by the legitimacy across North-South lines. from the develop­ focuses on the changing asswnptions. it is unlikely that a crystallization of its core power relation: that of securing resources and the universalist appeal of development has shrunk progressively toward ment project to the globalization project to an emerging imperial project. The globalization project is not just a successor to the development . as we have seen. and rising resis­ tance movements across the world. and a reunited Korea (with bomb) Conclusion This concluding chapter brings some closure to the story of the ongoing ful organizing ideal that was institutionalized on a world scale. but that develop­ infrastructures (education. practices. It is not surprising that the as instances of global dynamics. biotechnology. while the goals of the globalization project remain. and pharmaceuticals. health care. February 2003 saw millions of people demonstrating continue to pursue development at the national scale. as the United States seeks to neutralize (via control of oil) potential was already in motion). see king to reinvigorate democratic traditions." to develop). This text development as a world-historical project-<iting individual case histories tinue. brings mechanisms may asswne a more explicit use of bilateral agreements and project. Many international agencies. Quite pOSSibly. tensions. and China. skepticism. led darity among civil society and global justice groups-<onverged deci­ (2001) to make credible progress on the so-called "Development Round" international hegemonic status as a universalist ideology (like develop­ vent states from backsliding-as in the strong clauses of NAFfA and the ket reforms to pre­ by Brazil. [t has therefore always sought to "lock in" mar military and other imperial force. even as global development displaces the historic project of national transformation of the development paradigm. The lailure of the previous Doha Ministerial These currents came together dramatically to forestall the WlD's conservation and less on economic growth. NGOs. unemployment security) erode. and a panoply of NGOs effectively called into ranging from agricultural trade rules to the GATS and Trade-Related question undemocratic northern-managed WTO proceedings and issues Area of the Americas (FTAA) '" In an era of flawed multiJateralism. Alongside various strands of the global countermovement. new conception of development wiU emerge. 01 global and now imperial forms of development. technolOgies and methods of social organization geared to revaluing social ent kind. and outright disaffection. It has never achieved ment). and experiment with new scale life and ecology ra ther than the omnipresent conunodity. approach to current attempt to extend it to the whole hemisphere as the Free Trade Intellectual Property Rights (TRIPs) agreements. as a precondltion for a reordering of the world power bal­ and maintain a revenue stream to service its rising imbalance of payments. and people comprehensive citizenship-are under threat across the world in varying of strategic diversi ty and "self-organization from below. in the meantime. of a differ­ Cancun Ministerial (2003). While states endure. This is likely to be the case as the twenty first cen­ across the world against war in Iraq. perhaps characterized in terms of this instant antiwar movement (that of the Vietnam War era took years has been referred to already as the world's other superpower.

"A Call 10 Certain Academics. Quoled in Davidson (1992:203). Jos/! Maria Arguedes. The Was/lington Post Uanuary 5. 36. Esteva (1992:7). Davidson (1992:83. Barnet and Cavanagh (1994:383). Quoted in Estev. Fanon (1967:254-55). 24. Cooper (1997:61Hi7). world debate pivots on the adequacy of the market as a guardian of social and environmental sustainability. Quoled in Rist (1997:58). Ake (1996:36). Rostow (1960). ClUrot (1977:124). Ali (2002:168). 96).308 Rethinking Development project. 6. 13." translated from the Quechua by William Rowe. 9'1-101). Norberg-Hodge (1994-1995:2). 97-98). 11. Risl (1997:79). Its prescriptions are double-edged because its conception of the future erases the past-a past created by movements for social protection. Agarwal (1988:18). 18. Korzeruewicz (]994). 7. F. Wolf (1982:369. Memmi (1967:74). 8. it is increasingly the hostage of the future. 14. Quoled in Dube (1988:16). Da vidson (1992:183-84). Quoted in Clarke and Sarlow (1997:9). 9. 30. Crossette (l997). Norberg-Hodge (1992:95. Notes Introduction: Development and Globaliza tion 1 . Rosenberg (1998:A38). historical set of questions conceming the scale of human community and governance. 9. 6. 35. Cowan and Shenton (1996). Cooper and Stoler (1997). ]998). 2. But this is a prelude to a broader. Chapter 1: Instituting the Development Project \. 25. Quoted in Stavrianos (1981:247). lehman (1990:�). as well as the growing tension between material affluence and survival of the human species. 12. Crossette (1997). 29. Collins (1995). 6-7). 13. Ci ted in F. 22. 299). 37. 11. UNOP Human Developmen t Report. 32. Stavrianos (1981:624). 377). 23. q uoted in Rist (1997:9). Quoted in Davidson (1992:164). Those who define the future will frame the debate about development. 27. 17. lehman (1990:�). At present. Cooper (1997:79). Mitchell (1991:175). Neville (1997:48-49). 28. James (1963). Wacker (1993:132-34). 19. Quoted in D. The present is no longer the logical development of the past. 4. 7. 2\' Adams (1993:2-3. 16. Cardoso and Falelto (1979: 129-31 ). 309 . 1999:3B). As the development project has subsided. 15. 3. rather. 34. (1992:6). 10. 3. Hedland and Sundstrom (1996: 889). 14. 26. Hellman (1994:157). 10.vidson (1992:167). 5. 20. 2. 12. Davis (2001:26. Sujra (1992:146). 8. 5. Bose (1997:153). Kemp (1989:162-65). 38. 33. 3\. 4. Mitchell (1991:63-75. 15. a general reversal of thinking has emerged. Ruggiero (]996. Quoted in He ttne (1990:3).

George (1977:171). Williams (1981: 56-57). Revel and Riboud (1986:43-44). For an extended account of the gendered restructuring of the world labor force. Dhanaga. 1995:59). 23. 49. 33. 21. Brett (1985:209). Friedmann (1990:20). 44. O'Keefe. H. McMichael and Raynolds (1994:322). and Moyo (1993:129). 42. 27. Knox and Agnew (1994:340). Quoted in Magdoff (1%9:54). 113). 37. Baird and McCaughan (1979: 135). 39. 17. 39. McMichael and Kim (1994). and Taiwan. 55. Cunningham. Tilt Notian (November 8. Wood (1986:73). 41.rged to include China. See also Gerelfi (1994) for an alternative formu­ lation of the world product as a series of corrunodity chains. Feder (1983:222). Quoted in Bonacich and WaUer (1994:90). see also Dixon (2002). BeUo. Notes 311 Chapter 2: The Development Project: International Dimensions 1 . the composition of imports mainly from the First W orld moved from manufactured consu. Grigg (1993:243-44). 12. To be sure. Araghi (1995). 188). R. Th. 5. 155). 10. 45. Sivanandan (1989:2. The terms peasantfoods and wag' foods are from de Janvry (1981). Yugoslavia. 42. Friedmann (1992:373). Korzeniewicz (1994:261). Morgan (1980:301). Quoted in George (1977: 171-72). A. Cited in Lewin (1995:A5).. 15. 40. Burbach and Flynn (1980:66). 48. 34. 46. Rich (1994:95. Knox and Agnew (1994:347). Cf. 56). H. The fconomist aune 3. Quoted in G. 8). and (3) an increase in real gross domestic product per capita relative to the First World (Hoogvelt 1987:25). Magdoff (1969:124). Henderson (1991:54). Quoted in George (1977:170). 56. Portugal. E. Adams (1993:68-69). 22. Ellwood (2001:68). Revel and Riboud (1986:62). as a country-for example. George and Sabelli (1994:15). 24. Quoted in Kolka (1988:17). Djurfeld t. 19. 7. 35. 178). 10. 8. 25. Lipton (1977). Andrae and Beckman (1985). 22. 20. 3. Reich (1992:81. Llambi (1990). 43. Japan-may ha ve a low self-sufficiency because its population eats an affluent diet. Athreya. M. Wessel (1983:158). and Greece. Ma rtin aod Schumann (1997:100-1). Frobel. 34. Hoogvelt (1987:26-31). 36. E. 29. Grigg (1993:251). B. \7. 14. Rich (1994:75). R. See Gereffi (1994). Naghi (1995). Sanderson (1986a). Holusha (1996). Baird aod McCaughan (1979: 135-36). 40. which depends on imports. Dicken (1998:131). 53. 1993:3). 5. H. Berlan (1991:126-27). as a consequence of import­ substirution industrialization and the buoyancy of the export�riented indus­ trialization strategy in the 197Os. 185). Rich (1994:58). HoogveJt (1987:43-45).310 Development and Social Change 31. Adams (1993:73). George (1977:174-75). 13. 39. 38. HoogveJt (1987:64). 58. Heffernan and Constance (1994. Raikes (1988). A6). E. Dudley and Sandilands (1975). 57. 6. Hoogvelt (1987:40). 32. Friedmann (1992:373). Lang and Hines (1993:24). 16. Knox and Agnew (1994:331). H. 29. Quoted in Brett (1985:188). 7. The tenn IIcwfy induslriafizillg countries (N1Cs) was coined. 59. Quoted in Brett (1985:106-7). Quoted in Baird and McCaughan (1979:130). Wood (1986:73). 4. 11. Block (1977:76-77). HarriS (1987:28). 1995:59}. The examples in the next four paragraphs are from Rich (1994:10-13. 130-32). 2. Dalrymple (1985:1069). 43. 18. 30. ldeas and quotes from Rich (1994:55. H. 26. Bernard ( 1 996). "Sla v ery in the 21st Century" (2001:8). and Rau (1994:7). Barnet and Cavanagh (1994: 300). 37. 28. 47.mer goods to capital goods. 24. 11. A t the same time. 38. R. Gereffi (1989). 27. 33. 60. fconomis/ aune 3. 8. but this policy ran out of steam as rice consumption continued to decline with the changing Korean diet (McMichael and Kim 1994). 9. 3. Middleton. Araghi (1999). See Harris (1987). H. 2. and in the 1970s the stale modernized rice-farming regions to raise rural incomes. de Janvry (1981:179). H. 13. Quoted in George (1977:170). Raikes (1988:175. Bradley and Carter (1989:1C»). Rich (1994:84). 9. Naghi (1995). Raikes (1988). 28. Rist (1997:88). 19. 32. 31. Evans (1995). 97). Moody (1999:183. Fri edmann (1992:373). 41 . 51. Stimson (1999:Al). 36. Wood (1986:38-61). 21. 48. Henderson (1991). Rich (1994:91. 26. Martin and Schumann (1997: 100-1). Baird and McCaughan (1979. Heinrichs. Chung (1990:143). Hobsbawm (1992:56). Friedmann (1982). (Behveen 1975 and 1989.e (1988). 30.rrighi (1994:68). Chirot (1977:1�). 44. 25. 54. 45. . Thailand. 46. Rich (1994:72). Henderson (1991:3). Brett (1985:188). 52. Byres (1981). McMichael (2003). Strom (1999:A3). and Lindberg (1990). Self-sufficiency measures do not necessarily reveal the state of nu triti on in a country or region. South Africa. Cf. Brett (1985:185-86). Milbank (1994:Al. 4. 54). Harris (1987:102). Rich (1994:73). Grigg (1993:103-4. Brett (1985:209). 18. Agarwal (1994:312). The common attributes of NICs were (1) rapid penetration of the world market with manufactured exports. Friedmann (1990:20). Magdoff (1969:124). P. 41. 94). Brown (1993:46). this group enla. 12. 20. (2) a rising share of industrial employment. de Janvry (1981). Chapter 3: The Global Economy Reborn I. 23. For an excellent and detailed study of the maquiladora industry. Barndt (2002). Woodall (1994:24). Korean fanners protested. and Kreye (1979:34-36). 35. 6. see Mies (1991) and Beneda and Feldman (1992). Cleaver (1977:16). by the Organiza tion for Economic Co­ operation and Development in 1979 and induded four southern European COW1tries: Spain. Harris (1987:75). Griffin (1974). Pearse (1980). Hoogvelt (1987:28). Hathaway (1987:13). Quoted in Magdoff (1969:135). Friedmann (1992:377). Pacific Basin Reports (August 1973:171). Griffin (1974). Argentina dropped out) 14. 47. Landsberg (1979:52. 16. see Sklair (1989). 15. SO.

Ritchie (1999). Baer (1991:1 46). 35. Adams (1993:127). 49. McMichael (1 993b). 65. Hoogvelt (1987:58). 23. Quoted in Adams (1993:123). Gorelick (2000:21>-30). Lissakers (1993:66). a 60. 7. Crook (1992:10). Rohler (2002:A9). 13. 28. Cox (1987:301). Schoenberger (1994:59-61). Lissakers (1993:67). Bemstein (1990:17). Rich 36. 9.-39). Watts (1994:52-53). . Helleiner 58. Economic Corrunission for Latin Chapter 4: Demise of the Third World 2. See. 4. Juhasz (2002). Lissa kers (1993:59). Rueschemeyer. 63. Clarke and Barlow (1997:21). Gibbon (1992:137). 53. 42. Karen Dawkins (1999). 60. Bangura and Gibbon (199219). in Appelbaum Logan and dovsky (1997:87-88). Herbert (1996). Roodman (2001:26). 57. Calculated from Crook (1993: 16). Wallerstein 20. DeWalt (1985). George (1992:97). 41-42). 50. Sing h (1992: 138-39. 50. (1993). 46. 51. 56. Rich (1994: 188). 62. Heffernan (1999:4). Beckman (1992:99). Quoted in Brecher and Costello (1994:30). Ruggiero (2oo0:xiii. 54. Cahn 34. 56. 12. Quoted in Watkins (1991:44). 143). 163). Berger (2004). quoted (1993: 1 6 1 . 3. 68. 64. Jordan and Sullivan (2003:33). 45. Stephens. BlUch. 45. Tabb (2000 :9). World Bank (1981). 51. 24. (1983). 5. Bailey (2000). 16. Gill (1992). 52. George (1988:28-29). 67. 19. de la Rocha (1994:27�71). 59. Quoted in R E. Wood (1986:247. 9. Herbert (1996). Cheru (1 989:24. 6. 61. 15. 20. I. Moran (2000:231-32). Hoogvelt (1987:80-87). 30. 57. Arrighi (1990). Walton and Seddon (1994:13-14). 33. A. 24. Denny (2002:6). Baer (1991:132). 29. 48. George (1992:11). Schoenberger (1994:59). Madden and Madeley (1993:17). Watkins (2002:21). 52. Carlsen (2003). Meredith 62. Bello el al. George (1988:97). 30. Pilger (2002:25). Gowan (2003:23-24). Quoted in BeUo et al. 39. World 14. Canak (1989). 22. WaUach and Sforza (1999:x). Slephany Griffith-Jones. 31. 1. Pollack (1999). 16. Quoted in Magdoff (1969:53). Benjamin Cohen (1998). Kolko (1988:24). Sanderson (1 986b). A. (1994:63). 22. 144). 17. 26. !<hor. 55. 43. Quoted in Roodman (2001:30). Singh (1992:144). 69. 23. 54. 59. 68. 18. GRAIN (1998). 52. Crook (1992:9). . 38. (1999). Lehman and Krebs (1996). P. Greenfield (1 999). Cheru (1989:24. World Bank (1990:1�11). Arrtin (1997:28). 8. 35. Friedland (1994). Goldsmith (1994:66. P McMichael (1993a).312 Development and Social Change Notes 313 42-45). 25. 10. Quoted in Madeley (2000:79). E. i 26. Middlelon et al. 18. George (1988:6). 27. 77). 71. George (1988:60). Hayden (2003). 72. a (1996:171-75). Rich (1994: 188). 44. 11. 28. Nash (1994:C4). Berger (2004). Pilger (2002:2(. George (1988:139. in Crook (1991: 19). Madeley (2000:75). 67. 69. Salinger and Delhier (1 989). Chapter 5: Implementing Globalization as a Project 2. Barry (1995:36. 27. Kolko (1988:26). Hathaway (1987:4�1). and (1989:13). 19. 49. Salmon (2001:22). Moran (2000:224-26) (1997). Corbridge (1993:127). 63. 72. 37. Pilger (2002:29). Moody (1999:125-26. 53. Quoted 57. Acharya (1995:22). 42. 12. Hoogvelt (1997: 138). 53. W llach (2003). George and Sabelli (1994:147). 59. Daly 63. Redding (2000). Quoted in Ransom (200la:27). Singh (1992:141). 43-44. 15. 147-48). 3. Clarke and Barlow (1 997:12-13). Kristin Dawkins (2000). Schaeffer (1997:49). R. Quoted in BeUo et aI. 47. George (1988:6). 60. 34. See P McMichael (2003). 43. 44. 4 1 . Madeley (2000:54-55).-97). W tkins (1991:43). Hoogvelt (1987:87-95). Harper ( 1 994). 14. Evans (1979). Murphy ( 1 999:3). Crook (1993:16). Avery (1994:95). 64. Cahn (1993:168. Quoted in Schaeffer (1995:268). Strange (1994:107). 70. 67. and Stephens (1992). 17. 37. Chossu­ 58. Quoted in Schotl (2000:237). Kolko (1988:215). Gereffi (1994:54). 172). Helleiner (1994:111-19). . (1993:127-29) . Quoted in Ritchie (1993:11). 25). 61. Quoted in WaUach and Sforza 31. 27-28. 58. Ricardo ([18211 1951). 56. 39. Ohmae (1985:xvi-xvii). (1994:72). Quoted in Weissman (1991 :337). 38. 32. McMichael and Myhre (1991). A. 181). 41-42). 10. Rist (1997:152-53). Quoted in Ritchie (1994). Strange (1994:112). for example. 5. Goss. 7. W ood (1986:197). Quoted in Ritchie (1993. de la Rocha (1994:27�71). 6. 41. Arrighi (1990). (1999:21). 1993:18). n. George (1988:33). The South Centre (1993:13). 46. AcHonAid (2000:2). Kneen (1990:10). 66. Payer (1974). See Raghavan (1990). Templin (1994:AIO). Schoenberger (1994:59-61). Crook (1993:16). Bello et al. Kolko (1988:271-72). LeQuesne (1997). 62. Raynolds et aI. 55. 48. 49. Lissakers (1993:56). Rich (1994: 186-87). Debt Criss Network (1986:25). 54. xv). Clarke (2001). Adams (1993:19(. America and the Caribbean (1989:123). Bank (2000 : 14. 65. Gibbon (1992:141). Myhre (1994). Lissakers (1993:69-73). 66. Black (2002 :62). Chossu­ dovsky (1997:87-88). and Rickson (2000). 64. 33. (1994:59). 40. 255). Tuxill (1999). Juhasz (2002). Quoted in Wallach and Sforza (1999:x). 103). 13. (1994). 29. 21. 27-28. Moran (2000:235). Clarke (2001). 4. 36. Vidal (2001:20). 47. 25. (1994). Barkin (1990:101. 70. Barboza 40. George (1992:xvi). 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19 development. 259 Chopsticks. 105-106. Fantu.m-274 networks.61·62 Annan. respecth'ely. Australia.ng of biological processes associated. 225 Agribus iness concessions 10. 65 Agriculture Chinese.and other economic resources into rapid industrialization. 211 Boumoudienne.47-49 blocs.243 Athletit shoes. 41 Clinton.288 debt crisis. Rachel. 76-n. 293-294 BeUo.78 Chipko movement. 122 Barlow. 20 Class politics. President Honari. Canada.47-49 Colombia coffee culture. 145.S.2»231 StTucturaJ adjustment. 11. IO�II» Africa agricultural self-sufficiency. 162 Agro-industriaJ. 63-66 intensive. 158-160. especially land. 7. South KOre<l. New Zealand. 180-181. 181 intemational economic system established in 1944 to disperse long-term World Bank development project loans and shoft-term lnlemational Monetary Fun d monies to correct national imbalances of payments. 5. 216 NICs. Maude.39 . 96·98 Central America deforestation.187-188 Beef Central American.Glossary/Index 343 Bangladesh. 67-68 teed-grain supply zones. 229 precolonial. 56-58 Colonial division of labor sp«ialization between a colony and its metropolitan. 104-108 Chinese. 162 CiVil war Africa. 164. and the six ASEAN countries (Thailand. Paul 242-243 Bilateralism. 227-U9 Congo.67-68 food dependency. 41-43.103-104 ranChing. obtaining a monopoly over the use of that geneti c resource through genetic modification. 27. l model.274 Cairns Group. 20-21. colOnizing country exchanging primary products for manufactured goods.225 Booth. 13 marginalization. 292 Barodt. xxxi. Tariq. 240.'Z76 extractive reserves. 60-62 M ala ys ian. 105-107 Aguarunu Jivaro women. 295 Anticolonial movements. 109 Bechtel. KemOlI. 169 gene patenting. 46 Asia foreign lnvestment. 97 Brundtland Commission.192 Caribbean Basin Initiative (COl). 187. 107-108.288. 130-131. Malaysia. Patrick. comprises the United States. 128. labor. 143 global spreOld of.78 Caciquismo.275-277 Clayton. 249 feed-g>"ain supply lone.47-49 free enterprise stralegy.54 green power strategy. 60 traditional .27 Nigeria.6 1 .112-113 nontraditional. xxxiv-xxxvti. support designed to redistribute resources. 7-14.76-80 Asia-Pacific Economic Bi opiracy a representation of the patenli. 167 Coffee. 59-60 states with U. III Bolivia. 241 labor. Chinese entrepreneurial AJrican Union formed in 2003 as the politicaleconomic counterpoint to other regional unions in Europe. 14 Pan-Africanism. 218-225 food regime. Karen. 67-68 Cold War and Asian NICs. 33.. 81-82 Aswan Dam.289. modem. Colombian. for development.222. 10�104 complex. xxxv-xxxvi. 43-45 role. protection of. and Singapore). 66 Alternative Forum.254.�301 Agro-eKpOrt coalition. 249 Ausentina. 242 Ali. 35. Indonesia.186-188 Bond.297 Bank for lntemational Settlements (6IS). nd human resources as an alternative to allocation through the marke't. 105 Canada. 30.41 Biodiversity. President Bill. 220-225 one-party states. 142 Carson. 252 Bretton Woods the founding site of the exports.43 First World bias. 30 con tainme nt strategy of U. xxxiv resettlement scheme. IOHOS. 89. Walden.63.266 AIDS crisis..107 pla t fonns. 1Q3. 218 C hiapas rebeWon.287. with the extraction and insertion of genes in existing organisms. xxxv-xxxvi. 63·64 Animal protein diets. 169 CnlllptSil1o."s .188 Assembly plants. 135-137 food dependency.74 peUilnts. 63 lSI in.27 United States.76 as NIC. 48 Ataturk. 27 crisis of state. Hong Kong. as a strategy of regional coherence within the global system.3O Cheru.S. Debor ah. 272·275 Chile. 124 conJerence. 40. 20. 74 and development projec� 30.S 1.250-251 growth through the planned nllocation of public .4J-'l5 Bretton Woods Commission.81-82. 35-36. 158-159 Alliance for Progress counter-insurgency organization formed by Latin American inequality. Colombian.51 civil war.104 Central planning a device by which socialist states guide economic geopolitics of.81 bloc rivalry. President Salvador.30-32. 66 nontraditional Conference (APEC) conJerence founded in 1989 on the initiative of Australiil.Japan.xv. 217-218. 225-227 P'ubUc-Law 480 program.121 Brazil citizens.277 Islamic stales.242-242 Allende. 195 Britain. 127 de vel opment and democracy. the Philippines. 162 Cltina. Glossary/Index 267-268. Ill.7. 162 Cardenas. 10-13 CasualiZation of labor.227. xxviii.Jacq ues. 232 Berman. 220 d eb t-financed development. 288 T hai.27 SomaUa.. Cuauht�moc.2.24-27 Appropriate technology. 221-223 AI Qaeda. 113. 181-182 informaJization. 145-146 green revolution.27 Ethiopia.5 refugees. 112. Me xico. 249. Attali.86 Bureaucratic·authorilvian i n d ustrializing regimes (BAIRs) a term describing Third World states playing a central and disciplinary role in mobilizing human. 43-47 breakdown.lQ$.Southeast Asia and Latin America. Latin American. 205 97·98.Will. 80.iza!'ion. 27 Rwanda.63-64 TIUrd World. 76 nation. 246 Cilsh crops. 54-60 globilllociltion..Koh.

60. 131-132 public sector expansion.78-79. 66 Development state centralized bureaucratic state.61-62.56 Consequence of World Bank project. 7. 61. 76. 69 NIDL.47.xvii. 193 reversal. 56. 113. 164. Diets xxviii. 116-117.273 Cond itionality.260 in CrumB. 139. 166 D ecolonization a broad with animal protein.162 hollowing·out.SO.16 systems of rule in. 130-131. 117. 122-123. 162·164." 267 cultural alternative 10. 22�221 Latin American economies. 125.110-111 technica� 85 Dollar standard.2CT1 vision of.JMF. 19. 252-253 Democracy. 19-20 and eco nomic timing of. 295. 7. 248 Economic Commission for Latin America (EClA) regional Third World. 89 in communities that ex.30 geopolitical dynamics.20>-207. excluded) environmental costs (including amortization of unemployment. 2(). 85. 13. 43-45 national.94-98.53. 137-138 shrinlOng of.270 Costa Rica.90 glo bal livestock global assembly lines. levels of authority) would involve people participating democratically in 'multiple citizenships' sites involved in producing pari of an overall product for sale o n the market.35.77 north/south.27·28 decolonization. 6-7 fro ntier. 12. 294 i llusion. indebted nations (or rescheduling. 298 Oeskilling. 129-149 Eastem Europe.137 Commons. 39-40. 108. 65 militarized terms of Cuban revolution.1gement. limits of. 27 Contract labor. 121 paradUgnn.n.ist both within and across nationaJ borders (via regional and global multiclass coalition created by states through provision of patronage and socjal services to support rapid industrialization. 160. 131. 130 assumptions. 70. 66 Daly. 2-3.149 Displacement Colonia\' 7-14 Con sequence of food adi.7. 175-176.12 Columbus.84.xxviii-x:xix. 64 Differen tia tion new.103.98 as entitlement..98 loon composi tion to further loa ns and debt 'natu raJ capital') in accountin g for Western likstyle.84. 107 107-108 organ izati on of the United Nations that gathers data and Commodity prices. 267 Egypt.xvi. 42 intra-industry specialization. 66-67 of India.128 ma.p. 23.2 12 economic transactions.251 Dilyak Indians. 37. 131 Debt regime a sel of rules esta blished by the Eastern Europe.75 the Cold War.91 bring colonial ruJe to Third World. 217-218 Bretton Woods agencies. 80 complex.14.8 1 labor upgrade. 20-23 and development. 31-32 doUar exports. 4-14 of Africa.202. 20-22.109 � Cotton.xxxvi beef industry.344 Development and Social Change G lossary !Index 345 Colonialism.TUp.275-277 Development GAP. 13 sodaJ psychology of. political.161 Congo. 24.33 Economic growth. 4.270. 1(). 152 British.233. 7.7-]4 . 66. 234 funds.90 n�tion�lism. 20. ]2].7.36. 271 Cronyism. 91.12-14 and gender roles. committed to managing national economic growth.xxxix.32 COWlte rpart Counterdevelopment.93 regionaJ int egrat ion . 19-20 NIDL. 11] . 32 the American Revolution through to the presen t .2.7 defined.45. 127-12B regime. questions of cosmopolitan governance (human Earth Summit.. 261 iUld migration. 56. 79-80. 294 cronooUC growth. 98. 270-271 and decolonization.70.]34. 275-280. Division among nations.134.whereby colOnized pe ople an end.I40-142 Diaspora. 130-131 tr. 140 Third World. 18. it is headquartered in Rio de Jane i ro.27 Education. 137. 251·252 East Asia export manufacturing. networks). 15'>'157 e xport-led collapse. 13. and social context in forming its political perspective and strategy.131 in biologic al a crisis. Herman.11-1. 129-134 De-peasantization.24 prepares reports on among NICs. 301·303 DemographiC transition. 13.43. beginning food d ependency.147·148 ConJudanisOl. 30-32 Economic measures. xxx-x. 135.65 in ternation al. 90 De SolO.27 Economic integtation cross-national. IMF riolS. inherited from colonial rute.299 Cosmopolitan project since social and environmental relations operate at a variety of scal es. hie rarchical. 262 Comparative advantage a theorem about how countries specialize in producing and trading what they relatively excel in by virhle of their human and natural resources.30B urban bias.1. 295 Commodity chain of a series regional. 119-123. 130-134. 19 Deforestation. 15-16 settler.35 10 L'AF and Ihe World Bank as conditions be implemented by models. 22 and democracy.137.>.286 framing of. 90-91. B1. 180 Com S). 35-36 debt-financed. 3 1 ·33 late starters. 162-164 financed development. 60 intra-firm transfers. 24.119 legacy. 133. 137 Ecol ogical accoun ting inclusion of formerly externalized (ie.47 green revolution.230.63-66 ingredients. 9-11 East lndia Company 10 .62 movement. 267 and Third World. development standard. 10-11 Coundl for Mutual Economic Assistance (COMECONI COWlCU formed in 1947 to organize trade among the members of the Eastern Euro�an bloc.144 servicing.xxiv.2B9 redefinition. 214. l3l·132..89-9] gender.4-5 in Africa. 215 Development.90.22. 173.33 a rescheduling.22 as "contraceptive. 4-56.202. 13 Colonization.xviii-xix.70 economism. 155-157 democratization. 243 Electronics assembly. 4-5.. 14-15. xx-xxi.125-128 defined. forms of. 144-146. 134-137. 181 indus tria l. 23-24.127-12B. 61.129-131.77 geopolitics. 55 O e v e lopmU\t alliance a linkages between and legal rights.. 23. 24-26 Convention diversity. 27.124. 131l-l39 and deforestation. 142-143 Cosmopolitan localism concept describing social action at the local le vel that takes into aCCOWlt its world-historical. including an international system of alliances and assistance established competi ti ve and within the I 208. 3). Christopher.285 record. 256 Debt xviii.254 Dependency. 301-303 Democratization. 19-20. l1-U. 14 racist le g acy of. 131 Dominican Republic. 220. Hernando.47 Division of labor colonia!l 7·14 African.141.. 18. ]62 D eve lopment project an organized strategy of national economic growth.

26.. 217 regime.51. Frantz. 7] Global elite.111 Gender roles. 71 Global production system. 58 regime.21-22 (EC). 168 Uruguay ROWld. SO Export processing zones (EPZs) specialized zones established by slates to attract 155. 192 Free trade 87.249 in Brazil. 262 Fertility debate. 61 chain. 195·197 FirstWorld theWeslern capitalist nations of the post-World War n leaders hi p. (FTA). excluciing Norway and Switzerland. under and the culhJra).174 Fast food. the Euro.l1o-111 Food aid. and the bureaucratic elite executives In the a group cycles). 191 Export debt service.4748. 22.ion.mental protection.rptuses. as global assembly lines. 52·54 supply zones. established in 1992 as 205.255 Global marketplace.. 212-213 Free trade agreement 139·140 Global managers of powerful bureaucrats and officials in the Bretton Woods institutions and theWTO. SO.261 Escobar. 256 displ acement of. 251 Environmental movements.5'166.j9 soci. Free world . 21.289 Globa l infrastruc ture. 188 ' Free Tr�de Area for the 162.8. 139. adequately compensate producers and their habitats. 137-138 security. 254 reorg anization. 89.nd Agricu1tunl Organization (fAO) special ist agency of the United Nations. allowing rapid response to changing market needs (e .84 China. 253-254 G lobal ecology. Eduardo. 168-172 Cairns GrouP.ation established by the Global process.261 GlobaL assembly Lines.I 88 community or COW1try pol.139 France.59 dependency. 75.240·242. 239 American. 94-95 Extractive reserves lands set tax through stable markets. Glossary I Index 347 Empire colonial. 112-113 and structural adjustment. European Union (EU) to determine its o"\'n food securi ty reg a rd ing 209·211 16. 190 FourthWorld. 171-172. Arturo. 207. 217 Esteva. for forest dwellers who extract resources part of their as and colonialism.19.. 141 Forest dwellers.174. 221 Foreign investment state protection. private. xxvii-xxx.245.a1 movement that seeks to empower women and thereby change eXisting social structures and behaviors that oppress or W1dervalue women. 58 Food <l. 298 Europeatl Community 11. 144.168. 54-66 spec ializatio n in production of single crops for export.17S-176 subsidies. 107-108 food regiDte. 255 Global governance. 80-83. 242·243.37 Fanrung. 239 Hindu.162 subsidies. 80 Global banking. food grains.177 Food sovereignty the social right of a 231·235 Financialization. 97. 89 a union of fifteen Western European states.alion (EOn the strategy in which stales shifted resources--pubUc. tn. 301 Gap. 60-63 riots.265 Ghana. 195-197. 252 Galeano.288 causes. 11 Export-oriented i ndustrial. 124-127. decay of. 81-82 Sajpan. 81-82 Global livestock complex. 114 Feed grains vs. t3.171·1n.110 circulation. 275-277 skill differentiatio n in.. 188 Social Charier.100. xxx. 13 General Agreement on Tariffs and Trade (GAm agreemenl signed in 1944 in Havana by the United Nations and implemented in 1947 to moru tor and reduce obstacles to free trade among member natio ns. 254.. 277·178. 260 'Fortress Europe.154. 47 Global commons.58. 105-107 platforms. 169 refugees. 119 trade. 212-213. 173-174. 208-212 conditions. Mahatma. 55. 23. 32.94-95. Peter.47 reg im e.346 Development and Social Change foreign-into export manufacturing. and relation to consumerS. 63 Feminism a ruultifaceted World BanX under the auspices of UNCED to fund and manage global enviJon. 8 HU 96. 247-248.105·107 Global managerialism. 259. 65-66 a bu se. and to render more transparent the conditions of producers and their 10 c oncentration in NICs. 16. 254 management of. 83 and world f actory.160 working conditions. responsible for coordinating reports and developing agricultural production and trade in the developing Food s ecurity world.p . 220 Ethnic conflict.ed. infrastructural subsidies. IIS GlobaJ labor force. 52-54 strategy.n concentration in super-regions. to establish a common CUrT'ency. xxxvi-x'xxvii G lobal perspective. the EU seeks to integra te their economies. Prime M inister Indira. rt'SOUKe.10-11 Evans. 168 Freedom of enterprise. 292 su. 18. 171 tropicaJ. 93-94 and wage decline. 59·61 insecUJ'ity. 277·278 Forei gn aid.10. 54-58. '150 ethnic composition. 80-83. 109·110. 168 Genetic patents.54 wage. multi­ t as king work forces. livelihood. and breaks. g. or foreign investment in export production with concessions such as cheap W10rganized labor. and NICs. 62 Environmenlal degradation. Gandhi. 22 world. Gustavo. 34 Export mODoculture c he. fash.74 Friedman. 245 Muslim.203-204 lens. 161 manufacturing. 267-268 Financi al crisis. headquartered in Americas (FTAA) extension of NAFTA to the western heDlisphere. 9. SOCial and ecol o gical conditions under which it is sustained. transnational corporations and banks. '158-260. 84-86 . 193. 180-184 Genital mutilation.102 Fanon. Includes social and envirorunental costs In the prices of traded comm odities. 254 provision and almost SOD million people . xxxi. 28(}-281 Family. 41.295·297 Global ine quality. promoting cooperatio n and poli cy coordination. 229. integrating North. 58 dumping.4142. 63 Rome. 1 8 Engel's La\. xxxii oli-season. 243· 246 Gandhi. and attempting (adequate supply and appropriate cuisine) forest Flexible production organization of production systems based on smalJ and relatively unspecializ. 62 84-89 nontraditional. 79-80 in South Korea. 305 Fruits and veget ables global fruit and salad bowl. 220. 108 of sufficient and prediclable food plann ed supplies through reserves 246-250. 205. 162. 227 Eutocentrism.ic es i Fundamentalism.211·212 origin.i2.xxxvii. Central and South Amerko into a common market including 34 states a dministering other FTAs and globaJ environmental conservation. demand aside. The. 52 peasant. 144. 102. 13. Thomas.'157. 84·89. 215-216 Global EnvuonmentaJ Facility (GEf) organi2.208. 221 and regionalism. .257 Fair trade a practice that 60-61..

98-99. 219 Imperial project unilaleratist tum in lood . 1�14 conditions.241 and specialization. in Third World industriali2ation.265 ImpOrl-Su. 112·113 Jubilee Plus.2. 16:. 193 an emerging vision of the Grameen Bank. 260 Green power.249 Kemalism. 5. 217·219 limits.63-66 development project. Cermany. James. including access to reso urces and markets.25 6 xxxii-xxxv.293 Global warming. more recently an agent of structural adjustment.ation. 96 Group of 7 (G-7) the core group of developed states thal meet regularly and eflective1y set the agenda for global economic management (United States. 165-166.75 deve l opment vehicle.-56.87. 86.20.168 Green revolution a technical package of bio-e ngineered hybrid seeds requiril\g chemical and mechanical inputs.231. 154 Global sex industry.9. emergi.144 riots. usually undertaken by corporate bodies. 83. 85.255 Dayak3. 144 privatization.32 Uruguay Round. Third World states formed.89. 223-225.80-81 regional trade patterns. 165. 146 Human rights. 160 Khor.245 gene patenting. President Governance.76-77 Indus tr iaJi. 52.76 nationalism.led. 27. 10-14.83 and relocation. Intra-firm transfer. 9-12 Identity poUtic.265 Hyper-urbanization.or 10w-skiUed.307 Group of 77 (G·71) a solidarity grouping of from stales and firms seeking 10 monopolize economic advantage in the world economy through the deployment of GlossaryIIndex Industrial revolution.I1-12 intemationalism.210-211 indentured.n weaker.297-298 economic nationalism. 123 and informal.86 South Korean.T70 Hong Kong. 147. 148. 183-184 green revolution. 65 and rural inequality. India and China (as weU as Mexico. 158. 165 GJoba. national security interests.180 overcome 288-289 Held.59 payments difficulties.or economic investment i.the United.43 conditionality. 27. 71. Rouna<J.63 the specializing effects of the colonial division of labor.248. 295 regionalism. Ivan. 63 internal colonialism.95.14 Hamburger cOTVlection. and Canada). 210 Global sowcing.76-79 phases. xxxv-xxxvi Handicrafts. 54-68 Intemationa1 Labor Organization International Mon�t.83.bstitution indu9trialiution (151) a strategy of protecting domestic industry through tariff and other barriers pursued initially to Haiti. lmp�riali.79 Informal activity. Joint Jahan.and rice. ]25 Gl obal ruling class. 107-108 Greenwash.247 Health epidemics. 124 Keynesianism. Dav id. 132-137 leverage .l.vy Fund flMF) fund established under the Bretton Woods agreement of 1944 correct balance of 10 Indigenous peoples. 27:. power ind us try 46 : 16-18 Kikuyu cooperative.265.109 Int�lJectuaJ property rights rights to monopolize (in 20-ye ar patents) inventions stemming from scientific discovery. 77-80. cash cropping. 50 International division of labor specialization Kayapo Lndians.268 Internationalization.160.140. President Felix. 5.293-295 finandal.266 in producing commodities for the world market lhat divides regions into 20nes of industrial Or agricu ltural production or high.nsecwity. 28-29 micnrcredit.93 HouphouiH-Boigny. 86.203-204 fundamentalism. 218.21.121 Cuest workers.IW-111 Global Sustainable Development FaciUty.Dl Labo.300 JuSI·in-time (Jln system. 45. 266 K eynes.13.30-36. 245 military (orce.34 as reg10nal power. 96-98 legitimacy c:risis. 205-207 Gulf states. 194. x. 262 Japan 349 and currency SpKUlation.218 civil dimension. and economic primary. 64-66 PL-480 program. 10hn Maynard.190-193 marginaliza tion. 87.211 as new e xpo rt. involving a new military doctrine of preemptive war.172 Goldsrruth.43-45 challer. physical and psychological colonization. 234 loans.238 institutionalized. 139.287 female. 65-67 5K'Qnd.xxxiii. labor.-167 liberalizatio n strategy.107 v en ture.199.260 Indonesia.ng through challetlges to the trade restrictions of the global North at the 2003 WTO U. 217 Gorbachev. 52 International food regime. 13 forms. 107-108.xxx.94.232-233 tri'lnsmigrat1on scheme.z.266 121-122..348 Develop ment and Social Change Ministerial in CanCWl.171. 90-93.213 and lflbor rtdundancy.100-110 u-land.76-77 97. Martin.9 Harrison. Kingdom. 34 107.France.11. 303-307 a in the Philippines. by Brazil.84. foreign policy.297-298 Green Belt Movement.160-165 macro-regionaJ dimensions ai.s.249 (ILO).21.270-271 lllich. 103. South Africa. 78-81. 214 HYVs (high-yielding varieties).ati on comparative trajectories.133-134.S.iution project wotld and its resources as a globally otganize<l and managed free trade/free enterprise economy pursued by a largely unaccountable political and e(onornic elite. 120. 35-36. overlapping with the Non-Aligned Movement and now numbering more than 120 stales. 10·11 colonial.29-30 International Development Association (IDA). 188.195.213-217 InformaJization.1% Group of 20 (G-20l resource-rich and economica Ily­ dynamic southern stales.19.xxi. 32. 65 regions. 154-157. Indonesia and Thailand). 287-289 and Northem security.217. phases of. xvi.293 Cross National PrOduct (GNP). xviii.35-36 NICs.173 Kikuyu culture.243 Kenya. 137A138 International Women's Health Coalition. peripheral regions of the world.36. 110-111 lndia colonization of. xxvii.218 Information technology.Italy. in the mid1960s.51..256 WTO. 5:.44. in Chiapas. designed to improve agricultural productivity in basic grains such as wheat maize.295 211.121. 50. 142. 188 vision. 35-36 European.69 development alliance.188.Nigeria.165.-277.Paul.83.202. 89.30·32. 232-233 debt management. 208-20? 285. 7-14. 160 Internal colonialism.i. Argentina. 25 8 Mikhail 156 relationship of exploitation resulting .2n-275 Kayapo. 13.288 Globalization Africa. 20&-209 Curmurthy. 7-8. 209-210.. and a global projection of American military power to protect U. 76 secondary.Japan. 190 supply :GOnes.

76-110 as model. 94. Helena.90. 137-138.229 Muslim culture. 43 Morocco.30 Brazil. 19 independence.24 Natural resources global. 22-23.288-289 nO-ill instability. empowennent.%-97 retraining. Abdelrahman. 142-143 Eastern Europe. 30�306 MuniI. 102 subcontract.190. 167-168. 133-134 debt-financed development.ation Program. al.28-29 North American Free Trade rationalization of Econom ic Order (NfEO) a failed initiative pursu ed by the C-77 countries in 1974 to reform the org anization and management of the world economy along more equal and representative lines. 15.91 location of. 188-191 Mexico. 275-277 politics.ntries (NACs) those middJ�income Third World countries p�uing agro­ industrialization and 105. 19 �onnalization. Menon.226 Military rule. 133 Maize.3>36 Latin America. 40-43. 87.76--77 Madrid.48 National industrialization. 117 and freedom of in tervention.144-145 Microelectronics.46 industrialization.158-160 geopolitical aspects of.78-80 a grouping of Third World states with radical leadership that steered an independent course beto\'een the two Cold War blocs from the mid-1950s. 250 Nehru. 77-80 offshore platform. 67-68 Lost decade. and sweatshop labor to supplement stab Ie cores of workers . 19 Lberation sbuggles.76-80. 255. 145. and Mexico. 133-134. 248 Newly industrlaluing countries (MCs) Agreemen t (NAFTA) agreement signed in establish highly flexible arrangements for changing inventory needs.76 . Cruco. 35 debt crisis. 222. 105.61 Miux. 76-79 McNamara.27 framework for dev elopment. Cayatri. 62-03. 109.271 Nontraditional exports. 17. 168-175 Mexico.168-172 (NAM) in Latin America. 49.64 development. 32. 224 New agricultural cou.93-94.230 Modernity.282 rise of.286 Monetarism a macroeconomic policy that privileges private market forces in economic development by MnquUQdorQ a production zone established on the U. 21.192 Marshall Plan a project of middle-income TItird World countries that industrialized rapidly beglnning in the late the financial aid and fraying of relations of loyalty between governments or states export credits organized by the United Stat� to management. 91..Karl.214-215 a citizenry o\ving allegiance to the nation as an imagined community. 225-7.Christopher. 66-67.President.Jean Marie. 33.n. 89-91 New International the borrowing.289 Macro-region. global the lIIaquiladoras. IQ5-107 Norberg-Hodge.ican bord er to assemble iO'lported component'S with Mexkan labor for export.254 and grassroots 119-123 globaJ Keynesianism. 24. 182.93-94 Nike.197 New social movements. skill provision. Miguel de la.19 Sou th Korea.220 New international division of labor (NlDL) growing specialization of some regions of the Third World in manufacturing for export.284 Morgenthau.205-207 Militarization. Albert.220 [SI . 247 NEPAD.68 Border lndustriali2. 43. 82. and development training assistance.49. 168 Mexico agribusiness. 89 Chiapas province.. 250. 124 relative conswnption of. xxv. 105 New commons. Thabo. 66 NICs.135 Thailand. 167-168.Serge. President Kwame.155. 94-96.. 212-213 Multilateralism.190 erasion of.29 Land retonn policy to distribute o r redistribute land for social or commercial reasons.192 maize seclor. 86.350 Development and Social Change Glossary /Index 351 organization. 68 Mbeki. Prime Minister Jawaharlal. 290-292 and rural poor.288-289. President Gama. )22 Monetary regime Bre tton Wood s system. 30 Mass production. ). Henry. 19-20.89 NAFTA. educational. 219 Lean production production orrangements. IBS. 81.94-96 udakh.220 land reforms. to financial. xxix. 162 rmancial.92.118 Neoclassical economic thought.261 and substanrially 1960s.!Mex. 39.175-176 regional. President Richard.120 Nongovernmental organization (NCO) private dev elopment Liberal-nationalism. craft work.272-275 corporatism.269 Narmada Dam project. 51 Manufacturing. 228 98.114.261. ith temporary labor outsowcing fa 151 strategy. 14-15.141 Utbor force bifurcation. 174 GAIT. Subcomandante.242-243. 275-2n Chiapas. 49 Non-Aligned Movement enterprise.1I0-1ll legitimacy crisis 1993 between Canada. 146. 111-112. 155-157 and export expansion.212 liberalization. 77 N igeria. 286-287 Neo-Malthusirnism.217-220.ze military power and centralize governing power over and labor strategy. 195-197 Monetization. structural adjustment. 125. 76-80 Latouche. 133-134. i 18-19 Living standards. 188. ASian. 76. 225-227 reconstruct postwar Europe and Japan.158-160 Dominican Republic. 246 257-258.xxx-xxxi. 194.167.64 Malaysia agro-export industry.118. 111..46.107 'SJ1>"'xporting. 19-20 Nation-state a political wtit defined territorially in which state organizations monopoli. 225 Memmi. n.200 unemployment 89-90. 138. 167-168 Nixon. 160 Chile..275-277 repression. as feed grain.35. 27.127. nv. 128 �onnalization.278-280 MulticulturAlism. 168-1n.29-30. combining information technologies.269 MST. xxx-xxxiii. 241. 97.64 Nkrumah. 123 destabilizarion of. 127-]28 commercial green rev-olution. 250 Nasser. 81. 297-288 Mercosur Treaty. SO. 257 McMkhael. 242 Musevini.193 trade..26-. Latin Americ a 66-67. m Marginalization. 15 Mendes. 226. %-98.195 stabili zation plan. V. lOS bailout.167 regionalism. 21.214.161 authoritarian regime-s. the United States.220. 155.S. 175 agency usuOllly geared. 271 dress rehearsal for. A.I11-112 as NIC. limits of. 161 Mobutu. 81 peso crisis. 30-31 National model.27.228 ��-[hagon. 89.l Abdel.I9I-193. xxiv.8J Migration. 36 United States. 27 London. restricting state Le Pen. 68 East Asian. 275-2n Marcos.Presid ent Yoweri. Robert.67 and their citizenry.21.

190 Oil crisis. President 12� 128 Organization for Economic 217. 25. 144-145 S ALs.75.56 Plan Puebla de Pana ma. 107.&3.266. 60 Ricardo. 229 Organization of Petroleum Exporting Countries (OPEC) a cartel of Third World oil­ prodUCing coWltries from the Middle East and North Africa. 132. Ann.125 denial of. 172 wheat imports. 27. 61. 139·146 Sterilization. Ewope. 139. 156 Peri-urban communities.36. 270 Saipan. 164. Vandana.64 protection. 304 Parastatals "gianal and local organi. Gay.54-55. 188 South China �on. 55-58 and green revolution. a of government through the systematic e xtraction of resources from the society for the enrichment of the reflexive social movement that seeks to mobilize and empower communities on a grassroots basis.i. where states (within co-operative iJlternaljonal relations) are responsible for ustaining a just distribution of material and non­ material needs. 31 Soy. 161 Slavery. typicaUy Wlder conditions l aid Woods institutions. Australasia. 14+147. 55-56.53 Participatory action research (PAR) Eastem Europe. 123. at improving the local quality of life by drawing on and pooling local talents. 76.15�157 migration. 190 South Commission. Wolfgang. 36 agro-ind ustry. in global labor force. 52.z. 143 mid-1950s to manage the international disposal of agricultural swp1uses.xxxiv. 257-258 Ruggiero. 231 South African Development Community.93-94 rice protectionism. 135. 104.197 Ohmae.46. 76 76-80 Hee. 52·53. priviJeging local knowledge and needs. 303 113 91 Silicon Valley. 61 authoritarian rule. 98 Poverty. 190 Regionalism. 304 Franldin Delano.144-147 enterprise.64-<>6 counterpart funds. 34.6S Racism as colortial legacy. 145-148 Chile.254 Stal. 1 47. 208-209 �pe�ntization. Repe"o. 152. 155 Recolonization.257-258 Peasant foods. 275-'271 Semicond udors.229 Offshore money market. 21. Soviet Union foreign aid. 1 62.and state-owned energy companies.80 118-119 development.77 Organization of African Unity confederal structure formed in ruler /dictator.254 respecting the dignity of each human being. 110-114. At.2 12 Rain forest destruction.48 Rubber tappers. Ec uador.II8-119 one-party.14+145 Mexico. 14 lSI in. 27.234 of Third World agriculture. 229-230 restructuring.260 Rattan cui""".Devinder.6S major recipien ts. Kettich. Laura. 134. 133 215 class effects of. 267 Stiglitz.275-277 Social protections. 78. Joseph.public services. 134.185. 33. 168.removing barriers to investment and trade. 160 Rice and ctietary shHts. 260 and GATT. and now Mexico. as well as Indonesia. 9()-91. Japan. responsible for gathering data and organizing conferences. 165 Rural Advancement Foundation 1963 by tIUrty independent African stales dedicated to proteding the integrity and sovereignly of African statehood and to resisting neocolonialism. President Chung PostindustTiaiism.46.93 Senegal. 188-193 Reich.Robert. 11. 256 Rawlings. 76-78. 137.78-79 EOJ in. 230 Petti/or. 137.26.Supachai. 52-54.74 ROSIOw. 84. 58 Perestroika.186-188 Social movement unionism a democratic form of unionism that rejects government unionism and includes community rights and resources in its demands for improvement of the condition of labor (in the market and workplace).295 Seidman. North America. Penu. 182 Rwanda. 142·143 Sodal capital the "miracle. 300 Petro-dollars. 15S-160 PanitchpakdJ. Lieutenant Jeery.120 Oxfam. 83. 135. Sachs. 226 Raynolds. 166 South Korea. such na tional transport syslems. 60. 68. Shrimp.Joseph. 147·148 Shiva. 11-13. David. 7. Gilbert. 171-172 Refugees.352 Development and Social Change Glossary IIndex 353 North Atlantic Treaty Organization (NATO). American Century. administering central state policies. 19. 31 State capitalis m. 267. 15S-159 Plr480 Program a program instituted by the US. Wall. 192 Project for the New Protectionism." as NIC.296 Social conb"act 7 47-48 Coop�ration and Development (DECO) organization of industrialized countries of Western Europe.148 . 94 Schneider.6S Reagan.15S-160 Dominican Republic.10 pursue efficiency in the global economy by shrinl<ing down by the Bretton the 7 resetllement schemes. 209 reforestation. global. 301-302 SLructural adjustment reallocation of economic resources by a state. 289 Prebisch.ation of community resources via individual and coUective activity and entrepreneurship aimed.�6 Mexico.272 15 · 16 lntemationaJ (RAFI).203. 139 Singapore. 118-119. government in the govenunent expenditure. 13. 155 Purdah.156 Ghana. Jeffrey.207. 1 92 49.135. 13 9 Portillo. 192 Poland. 172 Rist.248 Re-settlement schemes.155-157 demise. 55-5 6 So\'ereignty citizenship. In Pan-Africanism. Singapore.RauL 33 Precolortial cultures. 234 Sachs. 8-9 Pred�lory rule Chile. 225-226 Somalia. 68.121.257·258 Restructuring African states. 141 Eastern industrialization. Robert.294 Peasant displacement. 123-125.68. and devaluing the national C\l11t'ncy.231 Region-s tate.Jo� LOpez.55.ations implementing and green revolution. 248. tor those countries belonging to the socialist bloc led by the Soviet Union in the postwar period. national model. 55 geopoli tics.63.31.257·258 renewal. and Venezuela. 212-213 and nativism.30. corruption offshore platform. 77 Third World. 19 currency speculation vs. Ronald.n. 162 Mexican state. 234-235 realiz. President Julius. 98 Sharma.i. 230 Privatization as selling off redistributive ethic for securing: a rights­ based society public property.234-235 democratization.. 155-157 Mexico. reducing wages. 231 Nyrere. 160 Security. 110.144. 125 Philippines labor export. 53. President 21·22. 252·253. 46. 59. 52·54. Rfmato. 260 Service induslTy. Second World 159 172 designation Pinochet. 161 of states. 23 Roosevelt. Cathy. 177 141-142 Eastem Europe. xxxiv­ xxxvii.141-143 Africa. General Augusto. '25-17 215 215. 46 Park. 93.

104. 191 United Nations Environmenl Program (UNEP). 91. 139. 27 Three Gorges Dam. 110-112 Treaty of Maastricht. 188. visibility. Immanuel. ]47-148 e T ch no logical transfer the transfer of modem technologies to developing regions. 145-146 Structural unemploymen t. 250. 289 290 United States Agency (or · lnternational Development (USAlD). 194 Wealth. 42. 68-U). 90-91. 87-89. 269·270 Sustainable development development practices that meet present needs without compromising the needs of future generations through e. 262 WED.354 Development and Social Change Glossary Ilndex 355 Structurnl adjustment loans (SALs). 96-98. 123-124 T ansnational communities. 2()'27 agricu. 141-142 growth indicators. 188. 256 governance. 180·182 Wage foods. 203 T une market. SO. and aJtemative Development). including inhastructural and ene�y loans. 191. 231 relief organizations. 262·265 Women and education.ng. 58-59 foreign investment. 60 T rade-Related instrument Measures (TRIMs). 243 Uganda.266 Welfare state. 110 Trade feed-grain. 139. In managers. in Green Belt movement. 216-217 poverty alleviation. 60-66 agricultural seU-suffidency. 98 Subcontracting. 120 food dependency. 96·98. 195 deindustrialization. 18 policing. T aiwan lSI in. 45-46 T errorism. 10:>-104 in China. 55-56.. 46 sex trade. oserve projects. r United Nations Conference on Environment and Development (UNCED). 211-212 Conference: on Trade and Devel opment origins. Urban bias the stereotyping of rural 41-42 Property Rights (TRJPs). 137 forestry loans. 26 agribusiness. 65 Tanzania. 84. 80-82. 11. 85. 10. 257 GEF. 10. 131 Surel-Canale. 87·89 exports. 262·265 representatives of the U. 195 and fertility. 45 T echnology infonnation. 289 Sweatshops. 156. President Harry S. 68-69 and WTO. 207·209 Tunisia. 271·278 Vokker. 117. 266 . 256-257 debt. 43-47 Berg Report. 266-268 programs (SAPs). 120-121. 268. xxxiii. 262 65-66 98-99. 210·211 regional trade patterns. 262 status of. at which a country begins to ny into the modem age. 120. 43-44 lending paHerns. 205. 178-180 T de-Related lntellectual ra discourse of. 266 as enviJonment<ll 55·56 lending policy. global. 141 differentiation. 85-86. 145-146 charter. 127 grain. 127-128. 198 land rights. 96. 103. 144 Structural adjustment Thailand as an Transnational corporation (TNC). 22-2) United Nations Cha rter 27 . 168·172 power industry. 83 and substitutionism. 166. 109. 81 regionalism. 75-76 Triad. 267 and environment. 1�101 suocontracri. 258 WID (Women in Development). 21 fundamentalism. Paul. 282 Tropical Forest Action Plan. 110 T oyotism. 12. 58 Soulh Korean imports. 51 debt. and more recently extractive rt. key debt mrul<lger via structural adjustment and governance conditions. 108 and nonwaged work. 221 Tripp. 289 restructuring. 125 joint ventures. involving a certain threshold of investment. 256 countries that enable corporate globalizati on. 11(). 112·114. 139·140. tionai Bank for . corporatization. 156. 46 Transnational banks. 47·51. n(). cash cropping. 81-83. 265 Ujaama. 229 Underdevelopment. 147·148. 130-131. 45. 83. 251·252 popuJations as backward and unproductive. 2SO and parastatals. 118-120 T exWe ndusb'y. 290-292 193. 161 and lelrcommunications. 81 United Nations xviii. 40 new states. HZ-I13 and GAIT. 27-28 export platforms. 79 as NIC n Take-off a stage of developmen t. President. 169 and genetic patents. 135 in the United States. 87. 77. 83.120 United Nations Development Progr� (UNDP) for that set of countries belonging to the Non-Aligned Movement and/or the and beef. 259. 218 elite conception. 107·108. 233 Sugar. 23. 102. l l O Suharto. 122. 61.n. 264. 66. 116. privatization. s tate and associated G-7 Truma. manufacturing export growth.111 social. 96 Water.I80 T(imsmigration scheme. 230.rosion of the natural resoUJ'(e base. as markets. 254. 295 infrastructural projects. 96. 143. 60-63 288. 289·290 WED (Women. 1�101 in Mex. i 80. 288 as First World leader. 107 envi ronmental activism. 262 lack of severity. 23.5-47. Reconstruction and Development (ISRD). 208-209 22. 54. xxxvi-xxxvii T oyota Company. 190-193 resource consumption. 83. 56. 148 i mmigration. and macro--stability of the world economy) uniting multilateral inst itutions. 74 Trusteeship. 84. 256 ex-colonies. Aili Mari. 60 unequal outcome. 129·131 development and Mexican BII'.114 s<aleof. 4.262·265 WID. 58 green revolution. 210 Third World a designation established in 1964. 239 Wallerstein.ltu. 94-96. 265. leading to the priviJe ng of p the urban classes and manufacturing sector over rural society in development st rategies. 34. 104. 66 Wage levels in Chile. 260 in green revolution. 287 environmental deterioration. 43-47 fallure. 226 Uruguay Round. 131. World Bank official title is Intern. 265. 207.ral global diversification. 64 importing. 209. formed in 1944 to channel public funds into large development projects. 194 Wheat Colombian i mports. 112·113 NAC. 262·265. 293 Development Decades. 91. 251 U nited States conditions. 68-69. maldistribution of. as labor. internal migration. as Third World izalion. 100·101. 259 (UNCT AD) the arm and voice of the Third World in matters of international trade. Jean. 298 Washington Consensus a set of neo-Uberal economic policies (trade and f inancial liberalization.ico.295 and Narmada Dam. 134. 159 dedine of.s. organi:tation of the United Nations thDt enters into joint ventures with Third World governments to (Wld training and other development programs. 92·96. 84-86. 105. 154. 266 Via Ca mpesina. 9:>-95. 168 Environment. Varican. 268 Turkey.

132 SAPs.org Fair T rade Federation (ITF" USA holistic approach to modern social change governed by. org Genetic Resources Action International (GRAIN) www. and www.theecologist. T echnology & Concentration (formerly Rural Advancement Foundation International.org Fairlrade labelling Organizations International (FlOl." 157. 103-104 World system analysis understanding as Yew.sOyears.org www.org Zimbabwe.art·us. 50 SALs.fairtrade. 297 Zapala. 46 World Social Forum diverse forum of NGOs and global states and firms exploit peripheral states and peoples for economic advantage. org .S.com Erosion. focus. B0-81. USA (watchdog group' www. to monitor and manage the global econorn� 157. xvii.rww. Thailand www.org/dgap www. fairtra d resow globally dispe<>ed sites serviced by <I 'ltlpoJ.org/front/index:cJm etcgroup. as (younger) COW'llerparl to the World Economic Forum. 299 global labor force. 2n-275 e ce. USA www. 302 resettlement schemes. Network for Global Economic Justice. ErniIano. 116. 49 Yunus. USA www.brettonwoodsproject.302 Supplementary Web Site Guide una«OW'lt. Prime Minister Lee KUaJ'l. USA www.org Yugoslavia. USA www.299 World fActory the Alliance for Responsible Trade. UN. USA W"WW. Italy Ejercito Zapatista de liberacion Nacional (EZlN" Mexico www.behindlhelabor.net World steer. Switzerland.igc.ezln. USA www. 86-87 World Economic Fonun organilation representing poUtical. UK v. Muhammed. based in an unequal (FTRN). Netherlands www' £oei .fairtradefederation.equalexchange. Germany www.a tiOll (WTO) organization established in 1995 to regulate global lTade and investment tlccorcting to the principles of freedom of trade and investment. Brazil.web The Ecologist.org Food and Agriculture Organization (FAD). 146 technological transfers. 167-168. World War D. financial and corporate eUtes of the global North.78 Behind the label. Friends of the Earth International (FOE).foodJirst. 172.org Fair T rade Resource Network constituting. USA Development Group for Alternative Policies (Development GAP'. to progressively realize the slogan: "another world is possible. USA www.grain. 44-45 social justice movements that meets annually.corpwatch. 46 regional banks. a historical world economic system.utiz. usually in Porto Alegre.fao.org Focus on the Global South. that meets atvIually in Daves.org Food First (Institute for Food and Development Policy). Canada' www. BHI2. 115.org Equal Exchange. xv. 293-295. 273 production as a set of organization oC me links among various Bretton Woods Project. 169 Corporate Watch. 84 world division of labor wherein core World Food Board.356 Development and Social Change redefinition of development.org Fifty Years Is Enough: U.abilil)� 148 World car.SltU. 14 a 152·153. 298 World Trade Org.

org Institute for Agriculture and Trade Policy (IATP). USA '\vww.isec.or Multinational Monitor.grarneen-info. USA www.html International CoaHtion for Development Action. USA www.who.americas.hrw. USA www.org Transnationa1 Institute. Canada www.twnside.org Research Foundation for Science.VW"\-\·.net TransFair USA \.saprin. v w. UK www.org/main. Canada www.net International Labor Organization..org Third World Network (TWN)..uk . ..gefweb. Brasil Ylrww.org Structural Adjustment Policy Review Intemationa1 Network.viacampesina. USA www.org/ publique/ index02l. Nicaragua. www.org Maquila Solidarity Network.org International Society for Ecology and Culture.org World Bank.wto.survival·international.he International Forum on Globalization (IFG).oxiam. Philippines.org Rainforest Action Network (RAN).htIn Jubilee +. UK " . UK (debt issues) www.org Women Working Worldwide.transfairusa.portoalegre2003. Bangladesh wv\rw.transafricaforum..htm Public Citizen Global Trade Watch. USA www. Malaysia www.org/ World T rade Organization (WTO) www.tradejusticemovement. undp. UK www. UK www.org OneWorld.uk g www.newint.org.org TransAfrica Forum.ilo.org United Nations Development Program.globalexchange.org.org.citizen. UK www. Belgium www.ran.int/en/ Independent Media Center. greenpeace. USA www. Honduras (transnational farmers' organization) w\vw.org. T echnology and Ecology India .org International Labor Rights Fund.org International Monetary Fund ([MF).wdm.weforum.org Grameen Bank.sawnet. Netherlands WW'W.org Resource Center of the Americas.oneworld. USA www.org/monitor World Economic Forum (WEF).iJg.indymedia.tni. USA www. UN www.org Global Exchange.org/pctrade/tradeho me.vshiva. UK www. South Africa www. Switzerland www.org United Students Against Sweatshops (US AS).org South Asian Women's Network. UK (tribal people's rights) www. USA www.poptel.jubileesouth.sg World Development Movement (WDM).org. USA www.org Human Rights Watch. USA www.jubileeplus. USA www. USA Trade Justice Movement. iatp.sweatshopwatch.org Oxfam International.org Via Campesina. UK W\vw.org Survival International.imf.uk Greenpeace Intemationat Netherlands 'W'A'W.worldbank. USA www.uk/women·ww " Jubilee South.358 Development and Social Change Supplemen tary Web Site Guide 359 Global Environment Facility.laborrights.essential.usasnet. USA www.org New Internationalist (NIl.maquilasolidarity.icda.org World Health Organization (WHO).org Sweatshop Watch.. Switzerland www. USA www.org World Social Forum. USA www.

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