1 reading on “global commodity chains” and sweatshop labor what happens in global commodity...
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Reading on “global commodity chains” and sweatshop labor
What happens in global commodity chains? Production of shoes, clothes, toys, consumer electronics
Design Factory investment, ownership, & management Manufacturing (some call “sweatshop labor”) Marketing
Where does each function take place? Core? Semi-periphery? Periphery?
Which functions command the biggest share of the profits?
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Background to reading on “global commodity chains” and sweatshop labor
Dependency World SystemsCore CorePeriphery Semi-periphery
Periphery
World systems theory There is some potential for countries in the periphery
to develop and move into the “semi-periphery,” although they are unlikely to catch up to core countries.
Global commodity chain studies draw on the insights of dependency/world systems theory
Chinese Development in Comparative Perspective
China was extremely backward in late 19th and early 20th C
Agriculture—failed to keep up with population growth leading to extreme poverty
Little industrial development
China Faced Severe Military Threats
Repeatedly defeat in war Opium Wars 1842, 1860 Sino-Japanese War 1895
Resulted in limits on sovereignty China “carved up like a ripe
melon” treaty ports, foreign
“concessions,” extra-territoriality
Chinese Development in Comparative Perspective
China’s early failed response to the challenge of the WestContrasts w/ Japan
resistance to “Westernization” China: how to adopt Western technology without
Western values?
Internal crisis population pressure
1600s: 125 million; mid-1800s: 400 million peasant rebellions
1850-1880—est. 100 million deaths
Chinese Development in Comparative Perspective
China begins to catch up Successful
industrialization Military
implications
Origins of the Chinese Communist System
Communist Party of China founded 1921 Fights for power
People’s Republic of China founded 1949
Origins of the Chinese Communist System
Sources of support for Communist revolution in China redistribution of land to
peasants (land reform)
appeal to socio-economic interests
resistance to Japanese invasion (1937-45)
appeal to nationalism
Origins of the Chinese Communist System
China looks to Soviet Union for model of “catch-up” development Soviet-style planned economy Totalitarian regime under Mao Zedong
Chinese Development in Comparative Perspective
China attempts to adopt Soviet-style planned economyContrasts w/ Soviet Union
Compare starting points of “First Five-Year Plans” Soviet—1927 China—1953
Even more backward (Gerschenkron) China: Lower agricultural output (Soviet 5x higher) China: Lower industrial output (Soviet 4x higher)
Chinese Development in Comparative Perspective
Lenin’s innovation vanguard party leads
proletariat in establishing socialism
Mao’s innovations vanguard party leads
peasantry–not proletariat—in establishing socialism
voluntarism (where there’s a will there’s a way)
Contrast orthodox Marxist emphasis on real material conditions
mass mobilization
Chinese Development in Comparative Perspective
Mao tries to compensate for China’s relative
backwardness “Great Leap Forward” 1958-61
Chinese Development in Comparative Perspective
Mao tries to compensate for China’s relative backwardness “Great Proletarian
Cultural Revolution” 1966-76
part struggle over correct model for economic development
part struggle for power w/in CCP (Chinese Communist Party)
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Impetus for Reform in China
Crisis of political legitimacy Communist utopia? or
economic stagnation Per capita household
expenditures Increased only 2.2% 1952-75
1975 per capita consumption Grain, cooking oil, meat
lower than in 1950s
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Impetus for Reform in China Crisis of political legitimacy Nationalism (wealthy/strong China)?
Demonstration effect/challenge of East Asian “tigers”South Korea, Taiwan, Hong Kong, Singapore
Reform in China and Comparisons with Russia
Communist Party welcomes reformCultural Revolution chaos in China
made reform more welcome/more urgent to Communist Party cadres
Contrast: entrenched bureaucracy in Soviet Union
Reform in China and Comparisons with Russia
China introduces market forces Mao’s death creates political opportunity Communist Party begins economic reform 1978
Under new leader Deng Xiaoping
Reform in China and Comparisons with Russia
Economic China still a largely agricultural economy as of
1978 Huge opportunities for growth through industrialization
Contrast: Soviet Union had already completed transition from agricultural to industrial economy
Reform in China and Comparisons with Russia
Contrast: “Shock therapy” in Russia Gradualism in China
Introduce market forces into agricultural sector first
Reform in China and Comparisons with Russia
Contrast “Shock therapy” in Russia Gradualism in China
Gradual change in smaller industrial sector Froze plan obligations at 1984 levels Introduced prices “on the margin” made reform less painful in China
Reform in China and Comparisons with Russia
Russia—neo-liberal-informed policies destroy state sector China—market-oriented policies link state and market
Fundamental change in strategy From planned to market economy With active but more selective state intervention
Pre-WTO: high tariff barriers,
bank loans for state industry
tax breaks for exporters, key industries
Developmental Outcomes in China Spectacular economic growth
About 9-10 percent per year since the late 1970s Increasing incomes on average (7-fold increase in 20 years)
1985: $293 2006: $2,025
Improving literacy 1978: 37 % of adults illiterate 2005: <10 %
Improving infant survival 1978: 41 deaths per 1,000 live births 2005: 23
Major drop in absolute poverty Between 1990 and 2004 the number of people living on a dollar per
day fell by 246 million, while total population rose by over 156 million.
Growth has helped to lift several hundred million people out of absolute poverty, with the result that China alone accounted for over 75 percent of poverty reduction in the developing world over the last 20 years.
Social Implications of China’s Economic Reforms Symptoms of a “19th-Century-style” capitalism
Large and growing income inequality 1983: 0.28 (gini coefficient) 2001: 0.447
Environmental degradation China has 20 of the world's 30 most polluted cities, largely due
to high coal use and motorization. Lack of protection for vulnerable social groups
Poor Unemployed Elderly Sick