ANTH 102 1nd Edition Lecture 16 Outline of Last Lecture Film Notes: Life and DebtI. Tourists’ experiencea. Ease of travelb. Contrasts with locals’ experience going the other wayII. Jamaican Currencya. Devalued by international policyIII. Post-independence, lacked economic strengthIV. Lack of public servicesV. Need importsVI. Global food economyVII. Reduced trade barriersVIII. Economic policya. IMF and World Bank provide loansIX. Milk in JamaicaX. BananasOutline of Current Lecture Globalization and Economic Structural AdjustmentI. Stages of Globalizationa. Imperialismb. Colonialismc. International OrganizationsII. History of Globalizationa. 1870-1913b. 1945-1973c. 1975 to presentIII. Facilitators of Globalizationa. Institutionsi. World Bank1. Policiesii. International Monetary Fund1. Overall mission2. Work of the IMF is of 3 typesThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.iii. World Trade Organization (formerly GATT)iv. Transnational/multinational corporationsIV. Policies of IMF and WB in the Caribbeana. Conditionalitiesb. Impact of Policiesi. Free trade zones Current LectureBrief recap of Life and Debt:- Jamaica being controlled by foreign banks like the IMF- Michael Manley: former Prime Minister Jamaica, 1976 campaign anti IMF platform- “No one is going to come into our home and tell us how to be”- 1977 forced to accept structural adjustment package because Jamaica in a very difficult economic time- Video documenting the negative impacts of ESAPs in JamaicaGlobalization and Economic Structural AdjustmentI. Stages of Globalizationa. Imperialismi. A policy of extending control or authority over foreign territories by means of acquisition or maintenance of empires either through direct conquest or indirect methods of exerting control on the politics and/or economics of other countriesii. Age of Imperialism began when the Europeans conquered and partitioned the Caribbean, Latin America, Africa, Asia, Australia and the Pacific. Modern imperialism driven by multinational corporations.b. Colonialismi. Extension of a nation’s sovereignty over territories outside its boundaries,often to facilitate economic control over their resources, labor and marketsii. The territories conquered by the imperialist powers were eventually settled, during colonialism the European culture was promoted as superior to native cultureiii. Agricultural works in indigo, cocoa, etc.iv. French colonized a place and the people became citizens of Francec. International OrganizationsII. History of Globalizationa. 1870-1913i. First modern wave of globalization, cut short by WWI. League of Nations started during this time by Woodrow Wilson.b. 1945-1973i. Renewed vigor towards the adoption of international organizations such as the UN, IMF and the World Bankc. 1975 to presenti. The third phase of globalizationIII. Facilitators of Globalizationa. Institutionsi. World Bank1. International Bank for Reconstruction and Development2. Established 1947, sister organization to the IMF3. WB provides finance for projects to promote development and in recent times the emphasis has been on poverty reduction4. Policiesa. Encouraging of free market reform policiesb. Liberalization of trade and capital marketsii. International Monetary Fund1. Created in 1945 for the purpose of providing loans to mainly Western European states facing balance of payment (bop) problems2. Overall mission: to oversee international monetary system; ensureexchange rate stability; to foster global monetary cooperation3. Work of the IMF is of 3 typesa. Surveillance-monitoring of economic and financial developments and provides policy advice aimed at crisis reductionb. Provides temporary financing to countries with bop problems and loans to support poverty reduction programsc. Provides countries with technical assistance and training inits areas of expertiseiii. World Trade Organization (formerly GATT)1. Established 1995 as a replacement for the General Agreement on Tariffs and Trade (GATT)2. Objectives: liberalize world trade and create an open global system; to supervise the settlement of commercial conflictsiv. Transnational/multinational corporationsb. Not just seeking to control economics but to reshape governments of the nationsthey give loans toIV. Policies of IMF and WB in the Caribbeana. Jamaica first country to embark on economic structural adjustment programi. Others: Barbados, Guyana, Dominica (1980s, 1990s)b. PM Michael Manley ran on an anti-IMF platform but was forced into an agreement with the IMF in 1977 due to a lack of other optionsc. Currently, Jamaica owes $4.5 billion to the IMF, WB, and IADBd. Conditionalitiesi. Lower taxes on businessesii. Reduce public spending on services – health care, education, social welfare – to citizens1. Introduction of user fees for these services2. Government subsidiesiii. Reduce the number of government employees – this would take the form of public sector retrenchment as a means of increasing efficiency and reducing public spendingiv. Privatize and or divest of public and state-owned corporationse. Impact of Policiesi. Increase in poverty and unemploymentii. Poor infra-structural developmentiii. Marginalization of local businessesiv. Increase in government debtv. Free trade zones – Foreign high security factories (often with substandardworking conditions)1. Work 5-6 days a week for $30/week2. No unionization permitted3. Women who speak out get fired and/or blacklisted4. Many FTZ projects financed by USAID to persuade US companies to relocate offshore to