ECONOMIC GEOGRAPHYPlace in Economic Geography“Fixes” to capital overaccumulation (David Harvey)Uneven locally (Poverty in Milwaukee, Chicago)Uneven regionallyUneven nationallyPowerPoint PresentationUneven globallySlide 9An interdependent system of countries linked by economic and political competitionWorld-systems processes (Immanuel Wallerstein)Results of World-SystemGlobalization is nothing new (Flows of goods, labor, capital, information)Elements of a mapIndustrial RevolutionSlide 16Direct Imperialism, 1914Imperialism: Spheres of InfluenceAnti-colonial revoltsCold War, 1949-1989World divisions during Cold WarTransnational corporationsSlide 23Shift to “North/South” divisionsRegions of the “World Village”Household incomeOwnership/consumptionMaterial World: A Global Family PortraitPockets of poverty in CoreSlide 30New International Division of LaborIndustrial growth of Europe, JapanInternationalization of economicsNew consumer marketsNew technological innovationsDigital DivideGlobal financial institutionsStructural Adjustment Policies (SAP)Debt as % of GNPResults of “austerity measures”“Debt riots”Slide 42Slide 43Slide 441. Primary activitiesSlide 46Slide 47Slide 48Slide 49Slide 50Slide 51Slide 522. Secondary activitiesSecondary activitiesSlide 55Slide 56Agglomeration (clustering of an industry)Agglomeration diseconomiesSlide 59Slide 60U.S. and Japanese Owned Motor Vehicle Parts PlantsNew International Division of LaborForeign direct investment by businessesDeindustrialization in the CoreSlide 65Slide 66Slide 67Slide 68Slide 69Slide 70Export Processing ZonesSlide 72MaquiladorasSlide 74Slide 75Slide 76Slide 77Slide 783. Tertiary activitiesSlide 804. Quaternary activitiesSilicon Valley, CaliforniaClaims of “Developmentalism”Slide 84Problems with DevelopmentalismGlobal wages“Race to the bottom”Alternative: Share skills and technologyAlternative: Protection for Periphery marketsAlternative: Consumer choicesAlternative: Consumer actionAlternative?: Microlending to poorAlternative: Keeping resource profitsAlternative: Global linking of labor unionsAlternative: Forgive Periphery’s debtsIronies of economic globalizationECONOMIC GEOGRAPHYECONOMIC GEOGRAPHY Spatial organization and distribution of economic activity–Outcome of decisions–Technology shifts advantages–Highly uneven at all scalesZoltan Grossman,Zoltan Grossman,The Evergreen State College, Olympia WAThe Evergreen State College, Olympia WA(Thanks to Tim Bawden,(Thanks to Tim Bawden,University of Wisconsin-Eau Claire)University of Wisconsin-Eau Claire)Place in Economic Geography•Where goods, labor, services come from•As economies expand …–they stitch together places –they create global interdependency•Principles of Location–Raw materials, Labor supply and cost, Processing costs, Markets, Transport costs, Government policies, Human behavior“Fixes” to capital overaccumulation (David Harvey)•“Temporal fix” (shift over time)–Debt, borrowing, investments, planning, etc.•“Spatial fix” (shift over space)–Some capital is immobile; fear of high surplus–Geographical expansion to enlarge/absorb capital, labor•“Fixes” to crisis in capitalism–“Shell game” destroys old, creates new socio-economic landscapeUneven locally(Poverty in Milwaukee, Chicago)Uneven regionallyUneven nationally U.S. poverty (red dots)““Azure Blue”Azure Blue” coastcoast““Yellow River”Yellow River”interiorinteriorUneven globally U.N. Human Development Index ( life expectancy, education, income)Per capita GNP (Gross National Product) ( Total value spread evenly in population)Uneven globallyAn interdependent system of countries linked by economic and political competitionWorld-SystemWorld-systems processes(Immanuel Wallerstein)•CORE –Industrialized capitalist countries (US, EU, Japan, Aus.) –Often former colonial powers; centers of trade, tech, productivity–Extract resources, labor from the Periphery & Semi-Periphery•PERIPHERY –Poorer countries and regions (Africa, Latin America, S./S.E. Asia)–Former colonies; export resources and labor power–Exploited by Core & Semi-Periphery•SEMI-PERIPHERY –Countries with mixed processes (S. Afr., Brazil, Mexico, Four Tigers) –“Developing”; both exporters and importers of goods, labor–Exploited by Core, but also exploits PeripheryResults of World-System•The growth and strength of the Core is made possible by the exploitation of the rest of the world.•The “poverty” in the Periphery is made possible by the exploitation by the rest of the world (How Europe Underdeveloped Africa by Walter Rodney)•Recent globalization has widened, not narrowed, the gap between Core and Periphery countries (& regions within).Globalization is nothing new(Flows of goods, labor, capital, information)Elements of a mapIndustrial Revolution•Early-1800s–Britain (Hearth) --from slave cotton–Textiles, steam power, iron, canals•Mid-1800s–Diffusion to Germany, France, Belgium–Steel, railroads, steamships, telegraph •Late-1800s/ early-1900s–Spread to much of Europe, US, Japan–Electricity, oil, engines, roads, radioDirectImperialism, 1914 •Britain•France•Spain•Portugal•Netherlands •Germany•Russia•U.S.•Japan•ItalyImperialism: Spheres of InfluenceCore dominated, butnot controlled,trade and resourcesBritish opium war in ChinaAnti-colonial revolts•Colonial flags come down–Asia, 1940s-1950s, Africa 1960s-1970s•“Neocolonialism” continues–Ex-colonial powers still dominate economies, resources, culturesCold War, 1949-1989•US-USSR “hot wars” fought in Periphery•Periphery states competed for aid•Arms race depleted global social resourcesWorld divisions during Cold War•First World - Industrialized capitalist countries of Western Europe, North America.•Second World - Centrally-planned “socialist” countries such as Soviet Union.•Third World - Ex-colonial nations such as India, Malaysia, Iran, Brazil, etc. •“Fourth World” - Poorest nations (and indigenous communities)Transnational corporations•Investments, activities transcend borders•Subsidiaries in many Periphery/S-P countries•Core domination, centralization outside state structure Cartoon on Standard Oil, 1904Shift to “North/South” divisions•Poor countries tend to be located in Global South (though some have pockets of