Historically, why did developing countries fail to advance in their economic development while the AICs advanced?

World System Theory explains:• Power structure: Colonialism/Imperialism• Unequal Trade relations: Core vs. periphery• Technology: Manual/Industrial• ODL/NDL based on:

o Racist ideology: Subjection/Dominance o Investment: Labour/Capital

Pre-industrial political power system:

C 9th -15th A.D. : Feudalism: http://www.youtube.com/watch?v=68VfakYDxd4 5 min 2010

• A system of political organization• Elite called a "lord" controlled the land • Common peasants, called "vassals" tilled the

lord’s land• These peasants were serfs and served as

warriors in the lord’s army

16th C -Enclosure movement & cheap labour http://www.youtube.com/watch?v=l0nM5DU4ADI 9.4min

Major forces that shaped modern geopolitics:18th C: Two major forces:• Imperialism & the rise of Colonialism • Industrial revolution:

o affected one-third of the world’s population.

19th C– mid 20th C:• Colonial capitalism

Later 20th C : • Neo-liberalism• Global Corporate capitalism• Communication Revolution o affects most of the global population

http://www.youtube.com/watch?v=lO-4DkFh5ww 7min imperialism 2012

Imperialism gave rise to global colonialism:

Colonial exploitation increased the colonizers’wealth through industrial revolution

Imperialists:

• Established their colonies

• Military & political control

• Economic exploitation of colonial land and labour

Colonialism (15th – 20thC)

• A system in which a state claims sovereignty over territory and people outside its own boundaries.

Imperialism and the Balance of Power

                                                                                                                                                                                     

                                                                                                                                                  

http://users.erols.com/mwhite28/1907powr.htm

L.Am:date of independence

http://en.wikipedia.org/wiki/File:Latin_American_independence_countries.PNG

Imperialism led to :

• Colonialism• Industrial revolution : • Rise of the Nation State:• Separation of the state from church• Rule of Law• Taxes and military replaced feudal serfdom• Capital accumulation (from 19 C)

http://www.mcps.k12.md.us/departments/isa/ninvest/imperial/impandworld.htm#bargraphs

1939

http://www.mcps.k12.md.us/departments/isa/ninvest/imperial/impandworld.htm#bargraphs

1939

What was the colonialist ideology?

• Ideology of “White Man’s Burden”

o “Cultural superiority of the West”

o Rejection of the uniqueness of each country’s social and political culture

The White Man's Burden (R. Kipling’s poem)

Take up the White Man's burden--Send forth the best ye breed--Go bind your sons to exileTo serve your captives' need;To wait in heavy harness,On fluttered folk and wild--Your new-caught, sullen peoples,Half-devil and half-child.

(7 stanzas)http://www.kipling.org.uk/rg_burden1.htm

Colonialist ideology of Racial Superiority

What is White Man’s Burden? It suggests that White people have a duty to rule over other ethnic/ cultural groups for advancing their cultural development by adopting the superior western values.

White Man’s Burden (cont’d)

• A racist view of non-European people as childlike and demonic

• a metaphor for a condescending view of non-Western cultures & economic traditions

• Emphasizes European ascendancy and dominance known as "cultural imperialism".

http://en.wikipedia.org/wiki/The_White_Man's_Burden

http://en.wikipedia.org/wiki/The_White_Man's_Burden

The white man's burden - a satirical view

Imperialism led to :

• Colonialism• Industrial revolution : http://www.youtube.com/watch?v=3Efq-aNBkvc 3.3 min

2009

• Rise of the Nation State:• Separation of the state from church• Rule of Law• Taxes and military replaced feudal serfdom• Capital accumulation (from 19 C)

Industrial revolution

• Begins in 18th C • Establishment of the capitalist economy

Colonialism:

http://www.public.iastate.edu/~cfford/342WorldHistoryModern.html

Industrial revolution dates and inventions:

http://www.victorianweb.org/technology/ir/irchron.html

Imperialism led to :

• Colonialism• Industrial revolution : • Rise of the Nation State:• Separation of the state from church• Rule of Law• Taxes and military replaced feudal serfdom• Capital accumulation (from 19 C)

What is a nation state?

• A state with a single national identity,e.g.: In Switzerland and U.S.A: national identity despite religious, ethnic, or linguistic differences

Imperialism led to :

• Colonialism• Industrial revolution : • Rise of the Nation State:• Separation of the state from church• Rule of Law• Taxes and military replaced feudal serfdom• Capital accumulation (from 19 C)

Separation of church and state:

The spheres of power of organized religion and the nation state are distinctly separated by conventions and judicial decisions:

Thomas Jefferson (A Founding Father of the US) wrote in his letter to the Danbury Baptists Association in 1802: "wall of separation between church and state,"

States with no state religions States with state religions States with ambiguous data or no data

Separation of church and state around the world.

http://en.wikipedia.org/wiki/Separation_of_church_and_state#Ancient_history

Imperialism led to :

• Colonialism• Industrial revolution : • Rise of the Nation State:• Separation of the state from church• Rule of Law (http://www.youtube.com/watch?v=XAJVu9LK7WE) 4 min 2011

• Taxes and military replaced feudal serfdom• Capital accumulation (from 19 C)

Rule of law: (as a term, used since the 17th C)

• No one is above the law

Imperialism led to :

• Colonialism• Industrial revolution : • Rise of the Nation State:• Separation of the state from church• Rule of Law• Taxes and military replaced feudal serfdom• Capital accumulation (from 19 C)

Governments’ Revenues in the Early 20th C :

• Colonizers taxed their colonies (see, Map)

an important scholarly paper on how colonial non-slave labour was taxedhttp://www.cfeps.org/pubs/wp-pdf/wp25-forstater.pdf

Government Revenues in the Early 20th Century:The size of the flag shows the relative size of the government's incomehttp://users.erols.com/mwhite28/frnc-emp.htm

Africa in the Early Twentieth Century

http://users.erols.com/mwhite28/afri1914.htm

Imperialism led to :

• Colonialism• Industrial revolution : • Rise of the Nation State:• Separation of the state from church• Rule of Law• Taxes and military replaced feudal serfdom• Capital accumulation (from 19 C)

Today’s Emerging economies’ past: For 18 centuries until 1820, they produced 80% of world GDP • 18th C: Colonialism and Europe’s hegemony - In

1950 DW’s share fell to 40%. Now, economies of Emerging Countries, e.g., India, Brazil & China:• Past 10 yrs: Rapid growth of their share of capital

flows and trade in world market

China and India:

• Re-Emerging economies

• 2010: EM share of global GDP at PPP : 51%.

• From the 21st C: the world's two biggest economies.

http://www.imf.org/external/np/speeches/2011/020711.htm

http://www.economist.com/blogs/dailychart/2011/08/emerging-vs-developed-economies

2010 data

http://www.imf.org/external/pubs/ft/fandd/2011/06/straight.htm

Purchasing power parity (PPP) A formula for comparing the purchasing power of different currencies

How?: It estimates the extent to which the exchange rate between countries have to be adjusted according to its currency’s purchasing power.

Why?: To measure the equivalence (parity) of currencies in terms of their purchasing power, i.e.

• How much money would be needed to purchase the same goods and services in different countries?

• When PPP rate is used, the amount of a country’s money thus has the same purchasing power in that country compared to that in other countries.

http://www.tradingeconomics.com/Billing/Analytics.aspx?Source=RankButtonInChart

GDP and GDP growth rate 2010

Market economy:• primarily relies on interactions between buyers

and sellers to allocate resources

World Market :

• Commodity traded globally • Trade based on supply and demand• Bid for buying