Anthropology 170 week 11
Anthropology 170 week 11 ANT 170
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This 8 page Class Notes was uploaded by Madison Hewson on Tuesday September 27, 2016. The Class Notes belongs to ANT 170 at Central Michigan University taught by McLean, Athena in Fall 2016. Since its upload, it has received 4 views. For similar materials see Cultural Anthropology in Cultural Anthropology at Central Michigan University.
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Date Created: 09/27/16
UNIT III, LECTURE 7, wk 11b Summary outline: 1. Review of key concepts in Life and Debt ; case studies of loss of Jamaican's market for produce, milk, and bananas; the Kingston free zone as an invention of neoliberalism, unequal exchange; continued loan, dependency, despondency, poverty. 2 Tshirts Robbins; recent events in global garment Bangladesh 3. Next class: Undevelopment of a European nation: the case of Greece post 2008 Short clip; homework handout on Greek economic crisis for next class REVIEW OF Life and Debt 1. Context of Loan Jamaica, 1962, gained independence from England as a former colony 1970s global oil crisis caused imports of needed goods (for hospitals, fuel, basic goods) to kyrocket, making Jamaica unable to afford them. Very serious situation Michael Manley, Prime Minister of Jamaica sought a loan and borrowed from the IMF Because of Jamaica's poor economic situation, the IMF charged high interest and imposed Touch conditions (SAPs); every time Jamaica was unable to pay, the IMP renegotiated the terms of the loan making the austerity conditions even more austere. The conditions: devalue its currency; remove trade barriers; require drastic cuts for domestic spending for health, education and welfare; cut number and salaries of federal employees By 2000 Jamaica was paying off 52 cents of every dollar in interest to the IMF; That left only 48 cents for domestic expenses Since the loan and the conditions it imposed, Jamaica was becoming increasingly more poor. Jamacia kept having to pay out (e.g., by buying imported food, but other countries did not buy from Jamaica, so it was not getting any $ back into the country) 2. Logic of IMF lending strategy integrating Jamaica into the world economy that that would be the only way it could grow tried to make J become dependent on other nations for $, bood, products extracted wealth from Jamaica, because it wanted to get its interest and principle back 3. What happened to Jamaica's agriculture sector? 1 One condition of accepting IMF loans was that Jamaica could no longer have a protected market for its farmers. That meant that it had to allow imported products to come in without tariffs. Since many of them were subsidized by their governments, they could sell their products in Jamaica more cheaply and that destroyed Jamaica's agriculture. 1). No artificial trade barriers (meant no more tariffs) 2) must accept subsidized imports 3) could not subsidize its exports 4) proved UNFAIR not equal playing field 4. Threat to Jamaica's milk production 1. In 1995, a loan with the IMF required that Jamaica lift trade barriers, and accept subsidized milk from the Us as a condition of the loan. 2. The US government subsidized the loan at 137% making Jamaica unable to compete. It had to spill its milk, destroy its cattle, and produced only 1/6 of its former amount. 5. Threat to banana market By Lome Agreement = England have preferential tarifffree importation of its bananas Chiquita, Dole, Delmonte had 95% of market but wanted it all, Pres Clinton put a suit with the WTO against England on behalf of the multinationals for unfair trade policies.\ The WtO agreed and Jamaica lost its privileges Why could it no longer compete? 6. the Kingston Free Zone It was on land that was part of Jamaica, but technically, legally had been defined as a zone that was not really part of Jamaica, and so "free" of legal constraints, laws and regulations, and taxes to which businesses would ordinarily be subject. the infrastracture to allow for factories to be built and dismantled on the free zone, was financed by a loan the Jamaican government took with the IMF. The businesses had no loyalty to the Jamaican people, under paid them, and then brought in Asian workers to take their jobs. 18000 jobs were lost, the Jamaican government however continued to pay for the loan for the zones until 2010, 10+ years after they were dismantled. In this way, they continued to become more poor, with every negotiation with the global bakers from the west (IMF and WB and their subsidiaries). By the end of 2000, they owed 52 cents interest for every $1 the government had. I. Review on Neoliberalism A. Driving force behind globalization B. Principles 1. Hands off (deregulation) by sovereign governments 2. Free market forces at global level to get cheapest prices, by cheapest materials and cheapest (even slave) labor 2 a. Free trade removing barriers to trade (tariffs from imports) b. NAFTA (North Atlantic Free Trade Agreement) and similar trade agreements 3. Privatization of land and public resources (like water) 4. Global lenders (IMF, WB) loan debtor nations under conditions that lead to poverty. C. History of neoliberal principles applied to trade 1. Deregulation a. with US permitting of use of slaves b. continued with use of tenant farms, given use of land in exchange of labor c. Bracera program shortage of laborers during WWII, allowed deregulation of borders to allow Mexicans to come to US to work in agriculture d. removing environmental controls 2. Free trade lifting "artificial" barriers to trading Neoliberal CLAIM: winwin for everyone a. will stimulates economy and lift poverty b. not substantiated by NAFTA II. T Shirts #1: the "life of a garment" cotton A. Robbins:. He asks why tshirts made in China use American (Texasgrown) cotton\ 1. To keep costs down a. US government subsidized cotton to help farmers make a profit and so it could be sold cheaply b. Labor is cheaper abroad (outsourcing) B. A winwin situation? 1. Winners: a. The producers gain greater profits b. The consumers pay lower prices 2. The losers a. Environment (for everyone) consumption of oil to transport cotton and garments back and forth between nations environmental erosion b. Chinese women garment workers in sweat camps yet for them, they claim "beats working on the farm" Robbins p. 73 So as bad as sweat shops appear to us, it may actually be a better "out" for those who work there c. To think about: Is the experience of exploitation relative? If sweat shops are better than farming for Chinese workers, is that OK? III. Global Life of a Garment T Shirts #2 Cotton/ Polyester 1. Cotton from El Salvador workers $2/day 2. Polyester from Dupont begins with oil from oil riggers in Venezuela, working for $6/day used in a petro chemical mill in New Jersey 3 3. Burlington Mills in South Carolina workers weave polyester (that began in Venezuela) and Cotton (from El Salvador) into a cotton/ polyester fabric for $10/ hour 4. Fabric is shipped to Haiti women make tshirts and tops for $3/day. 5. Garments shipped bakc to US Sears, Wallmart, Penney's for $20/ garment IV. Triangle Shirtwaist Factory Fire in NY 1911 A. 146 garment workers died 1. Mainly immigrant women, mostly Jewish and Italian 2. Tried to escape down stairs but doors had been locked a. owners had locked the doors feared they would try to sneak out with stolen goods feared union organizers would sneak in 3. many leapt to their deaths from 9th floor 4. those who managed to get down, found flood of bodies blocking their path out 5. Fire escapes, in ill repair, broke B. A year earlier, workers lobbied for betters conditions 1. better pay 2. better safety 3. to unionize Led to 11week strike largest in history C. Management response 1. better pay (up from 13 cents/hr) and shorter hours 2. refused to improve safety ventilation, locked doors, fire drills 3. refused a union D. Major event in US labor history leading to major reforms for US workers V. Bangladesh Nov 2012: the new Triangle Tragedy A. Bangladesh is 2nd largest producer of garments globally 1. after China 2. because of cheap labor costs, following its colonial history leading to poverty B. Factory Fire killed 118 garment workers 1. a supplier of WalMart 2. Poor safety record and hazardous conditions 3. oppression of labor advocates a. Aminul Islam, who exposed horrific conditions, had been brutally murdered 4. Walmart in 2011 reported violations, but took no action C. Globalization and outsourcing labor 1. US companies using outsourced labor perpetuate practices that were outlawed in US over 100 years ago. 2. a way to legally circumvent laws that apply to US laborers a. U.S. laws allowed outsourcing beginning later 1970s and early 1980s to keep labor costs down 4 b. As in Jamaica, companies often do not even pay taxes 3. Abuses continue invisible until another tragedy reaches the news 4. the "hidden cost" of a garment Again, who pays? VI. Dhaka, Bangladesh April 24, 2013 new Triangle Tragedy AGAIN1 A. Worst deadliest garmentfactory accident in history 1129 died; over 2500 injured 1. deadliest structural failure in modern human history 2. Building not constructed for factory, but offices 3. Hundreds other buildings await similar disaster B. Warnings the day before of structural cracks ignored 1. Workers ordered back to work the next morning, when building collapsed 2. Workers told a month's pay would be withheld if they did not show up $51/ month standard wages C. Competing pressures from western corporationgs 1. To comply with international safety standards 2. Pressures to meet production deadlines to satisfy orders pressured management to keep workers on job despite unsafe conditions 3. Keep reducing costs inhibiting ability to address safety issues and break even 4. In 2011, Walmart rejected proposals to pay more for products to allow manufacturers to improve safety of workers The Greek economic Crisis: We've discussed development through loans by global institutions of WB, WTO and IMF on a postcolonial (third world society (Jamaica). Now we will see how some of these same institutions (this time the IMF and European Central Bank) have led to the undevelopment of an already 1st world European nation Greece. Hand out assignment for next class on Greek crisis. Short clip on the crisis (if time permits) 5 Unit III, LECTURE 6, WK 11a Global Economic Structures post WWII: the making of Underdevelopment Overview of case studies from movies: 1. Life and Debt impact of globalization and global institutions on the postcolonial nation of Jamaica I. The New Free Market Global Order Globalization under neoliberal practices A. Decentralized global market integrated all nations, rich and poor Loss of sovereignty of nations over their affairs control by new global financial institutions, like World Bank B. World is dominated by transnational corporations lacking national loyalties 1. world market under "free" trade 2. fewer controls by national governments 3. International laws like NAFTA (North Atlantic Free Trade Agreement), e.g., permits free movement of commodities across borders C. The Financialization process 1. global finance capital controls wealth through (e.g., stocks and bonds) rather than actual products and services and responsible for current economic problems (For more, See Robbins pp. 7381) 2. This increases wealth of financial elites who promote their financial interests 3. most of the world's people can no longer control their own lives and are in extreme poverty II. Control of Developing postcolonial nations (like Jamaica) by remote experts A. Experts (bankers and specialists) from a few elite organizations make decisions that affect the lives of poor people throughout the world. 1. on the basis of projected economic growth. 2. Little consideration to the culture or preferences of the people. B. Kinds of assistance to developing nations 1. Multilateral development assistance a. financed by many nations (such as the World Bank and IMF) 2. Bilateral development assistance a. gifts, grants or low rate loans given by one country to another b. political and trade conditions usually attached by donor nation e.g., anitcommunism by the U.S. major basis of assistance programs . about 1/3 of all aid is military 1 often to already developed nations like Israel (which receives 1/4 of all aid) over 1/2 of all funds are sent to strengthen countries whose instability might threaten interests of American elite (like Haiti) 4. U. S. Food aid a. designed to help U.S. farmers find a market for overproduction b. only a small portion is given as free emergency aid c. subsidized food aid actually makes it hard for local farmers to sell products IV. Influence of International Agencies on Poverty: The World Bank and International Monetary Fund (IMF) (some material from Richard Robbins' Global Problems and the Culture of Capitalism, Allyn & Bacon) A. History: 1. In 1944, leaders of 44 nations met in Bretton Woods, NH to develop strategies to rebuild economies after the WW II. B. The organizations 1. The World Bank for longterm development and reconstruction aid; 2. IMF regulates currency exchange between countries; also helps nations receiving aid pay off other debts in short term 3. GATT (General Agreement of Tariffs and Trade, established in 1948), led to World Trade Organization (WTO) in 1995 C. Problems in the World Bank 1. It was originally established to reconstruct Europe but because European economies didn't need much help, it looked elsewhere to survive to Third World nations. 2. It ran out of money to lend, so again risked going out of business. Its solution was to multiply its budget 13 times and lend out even more to poor countries. 3. During the 1970s, as wealth nations entered a recession, the World Bank increased its interest rates. Third World nations that had borrowed money on adjustable interest rates faced huge increases on interest payments 4. Consequences for Third World nations: staggering debt D. Third World Debt Crisis 1. Third World nations were finding it impossible to pay off increasing debts 2. The IMF and World Bank responded during the mid 1980s by rescheduling or extending their debt payments under specific conditions. a. Conditions were intended to have Third World countries bring in more money and spend less so they could pay back loans. E. Structural Adjustments (SAPs: Austere Conditions of repayment to "Solve" the debt crisis 2 1. devalued monetary value of the country currency a. This made goods more expensive for the people of poor countries, but cheaper for consumers of other countries 2. Radical reduction of Third World Government's domestic spending for social, health and welfare programs 3. Cutting wages and firing government staff 4. increased pressure to produce for export a. This was seen as more profitable than production for domestic markets 5. Removing restrictions on foreign investments and trade a. This was to make local production more efficient and competitive b. This has enabled multinational corporations to gain control of Third World countries'raw materials for very little money 6. Controls poor countries through the mechanism of debt 7. This has intensified poverty in the Third World only further V. Case Study of Jamaica: Impact of WB and IMF (through SAPS) through the 1990s their agriculture and industry the movie Life and Debt Will be shown and discussed both this and next class.). 3
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