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Global Inequality Study Guide

Global Inequality Study Guide - Global Inequality Study...

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Global Inequality Study Guide Edward Goldsmith, “Development as Colonialism” in Jerry Mander and Edward Goldsmith, eds.  The Case  Against the Global Economy and For a Turn Toward the Local.  Sierra Club Books, 1996, pp. 253- 266. Since WWII, the effort to develop the third wordld was to bring the third world into the orbit of the western trading system in order to create an ever-expanding market for our goods and services and a source of cheap labor and raw material for our industries. Economy is shaped to satisfy American commercial interests – free trade – only benefits the richer countries if it doesn’t work, take over countries where goods could be sold at a profit without worrying about competition from more efficient European countries. 1. What goals do post World War II development and colonialism share? a. Development is just a new word for what Marxist called imperialism and what we refer to as colonialism. b. Development and colonialism =same process – same goal: obtain raw material, exploit the cheap slave labor, a dumping ground for the surplus goods produced in our factories. c. Purpose of colonialism – to establish a legal framework in which capitalist relations could operate. d. colonialism and development are not so different, but they ended up different things colonialism sets itself up as terroritorial colonialization, you have an empire and conquers land to feed its capital, its economy. 2. What are the mechanisms Goldsmith describes by which first colonialism and then development is  secured? a. Setting up indigenous elites – set up a westernized person there who wats to romote economic development regardless of adverse effects on the fellow citizens, and US sends them weapons, arms b. Killing the domestic economy - have to kill the poor econmies first in order to have them participate – by taxing everything, and then local people have to work in mines. If they try to diversify production, they are accused of practicing important substitution, economy had to be annihilated to mae way for a new cosmopolitan middle class dependent on the TNC’s and the global economy c. lending money – lending money to the compliant elite of a nonindustrial country is the most effective method of controlling it and obtaining access to its market and natural resources. The money borrowed is spent on elites’ luxuries and infrastructural projects that do not generate a direct return so countries fall into an unrepayable debt and lok further into borrowing more money. o 1. actually impeded these countries from developing itself by importing everything it can consume. = a broken promise. the outcome is world poverty, increase of world poverty, unequal relationship between states
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*Daina Stukuls Eglitis, “The Uses of Global Poverty: How Economic Inequality Benefits the West” in John J.  Macionis and Nijole V. Benokraitis, 
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