Modernization Theory

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Modernization Theory

• Progress through development stages
• Whole world steadily modernizing
• Everyone will reach high consumption
• Some slower than others (their own fault)

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Problems with Modernization Theory

• Early starters have huge advantage
• Late starters actively kept out of Core club
• Economic structures
• Political or military pressure
• Not enough resources, waste capacity for all

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Debt as of GNP
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• 1.3 Billion people live on less than 1/day
• 3 billion people live on less than 2/day
• Richest 20 control 86 worlds wealthPoorest
  20 control 1
• Poor countries paying more to rich countries in
  interest than receiving in foreign aid

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Use of resources

• 1 American uses same energy as
• 2 Japanese
• 6 Mexicans
• 13 Chinese
• 31 Indians
• 370 Ethiopians

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What is Globalization?

• The increasing interdependence and
  interconnectedness of places globally.

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Globalization from above(top-down)

• Internationalizing of production and marketing.
• Financial markets transcend national borders.
• Telecommunications spreads ideas, cultures

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Global wages

• Joe in Wisconsin earned 50 a day.
• Joe lost his job to Maria,
• who earns 10/day in Mexico.
• Marias wages are kept low because
• Xiao works for 2 a day in China.

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Race to the bottom

• Pressure for Core industrial wages and taxes to
  drop.
• Pressure for Core regulations to be weakened
• WTO allows companies to challenge protective
  rules.

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Ironies of economic globalization

• Supposed to help everyone progress
• Rules written by and for elites
• Only benefiting some Core and Periphery citizens
• Widening gap between Core and Periphery.

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Present day Slavery

• Estimated 27 million people enslaved
• Physically confined and forced to work
• Controlled through violence
• Treated as property

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Slavery in U.S.

• Estimated 100,00-150,000 slaves in U.S. (Free the
  Slaves)
• Department of State estimates 20,000 people
  trafficked into US each year
• Slaves work as prostitutes, farm laborers, in
  nursing homes, private homes

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Slavery

• Human trafficking very profitable
• Estimated contribution by slaves to global
  economy 13 billion
• 25 countries now actively prosecute traffickers
• U.S. slave protected against deportation if
  testifies against former owner

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Pilgrims at Mecca KFC
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