March 13 Geo 188

March 13 Geo 188 - Geo188March13,2008

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Geo 188— March 13, 2008 Unit 6: reform responses to Uneven Development and the ISI model (including migration and  rising urbanization) Unit 7: Debt, structural adjustment, and neoliberal prescription   Readings: (218-238 in reader) “Underdevelopment or distorted development brings dangerous specialization in raw materials  that keep all our peoples in peril of hunger.  We, the underdeveloped, are also the countries of  monoculture, of single product, of the single market. A sing product, the uncertain sale of which  depends upon a single market that imposes and fixes conditions—that is the great formula of  imperialist economic domination”  Che Guevara in 1961 In 1914: LAC overwhelmingly rural and agrarian One of least industrialized regions in the world Export economies still based on narrow range of commodities With benefits so narrowly distributed (social/ land inequalities) o Therefore small domestic markets o Most manufactured goods imported WWI- WWII: Earliest industrializers – Argentina, Southern Brazil, Uruguay o Buenos Aires: 1 st  modern metropolis (5M population by 1950) Initial focus: substitute manufacture of basic consumer products with local production LAC population  in 1930 (in Millions) o Urban:  ~30 o Total:~ 100 Why, after 3.5 centuries linked to global trade networks were countries so un-industrialized and  poor? One prominent explanation in the 50s and 60s Dependency theory o Moderate: Raul Prebisch (1950) (UN- ECLAC)—economist o Anti-Imperial: Andre Gunder Frank—link economic critics to anti-imperial  struggles—understand within context of US o Argue: Though formal colonialism was over.  LAC was locked in “neo-colonial”  economic relations with US and Europe o In short LAC nations will not develop into modern industrialized economies when  they are dependent upon:
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Exporting  narrow range of low-priced raw materials (primary  commodities)—were value-added processing is done in Europe Importing  diverse range of manufactured goods o locus of innovation resides in rich countries o outflows of profits and interest—(many raw materials  owned by foreign countries) o Rather Relationships are very entrenched Leads to stagnation People in power attached to economic elite—do not want change.
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March 13 Geo 188 - Geo188March13,2008

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