Globalization and Globalization and CapitalismCapitalism

Kimberly Martin, Ph.D.Kimberly Martin, Ph.D.

Anthropology 330Anthropology 330

CapitalismCapitalism Based on industrialism and intensive agricultureBased on industrialism and intensive agriculture Supply and Demand depends on continuous growth Supply and Demand depends on continuous growth

of production and consumer marketsof production and consumer markets Ideology of materialismIdeology of materialism Those who own capital can make increasingly large Those who own capital can make increasingly large

profits thru mechanizationprofits thru mechanization These profits depend on having consumers to buyThese profits depend on having consumers to buy Capitalists share profit by larger wages and middle Capitalists share profit by larger wages and middle

class grows, democracy developsclass grows, democracy develops Rising wages mean less profitRising wages mean less profit Capitalists seek cheaper resources and labor in other Capitalists seek cheaper resources and labor in other

countriescountries Dependent countries are drained of resourcesDependent countries are drained of resources Dependent countries want a share of the standard of Dependent countries want a share of the standard of

living, but cannot afford to get the “stuff” living, but cannot afford to get the “stuff”

World Systems TheoryWorld Systems Theory There is a single world economyThere is a single world economy

There are three types of countries in the WSYS:There are three types of countries in the WSYS:1. Core – dominant modern industrialized 1. Core – dominant modern industrialized capitalist countries with large multinational capitalist countries with large multinational corporationscorporations2. Peripheral – dependent countries that are 2. Peripheral – dependent countries that are preindustrialized and export natural resources preindustrialized and export natural resources and laborand labor3. Semi-peripheral – countries with an upper 3. Semi-peripheral – countries with an upper class that is industrialized and the remainder of class that is industrialized and the remainder of the population is preindustrializedthe population is preindustrialized

It is extremely difficult to move up in the world It is extremely difficult to move up in the world system. system.

Core CountriesCore Countries

Imperialist in one of two ways:Imperialist in one of two ways:

1. Colonialism – control of dependent 1. Colonialism – control of dependent societies by forcesocieties by force

2. Neocolonialism – control through 2. Neocolonialism – control through multinational corporations and multinational corporations and economic, economic aid and “puppet economic, economic aid and “puppet governments”governments”

HegemonyHegemony Core countries that become the dominant Core countries that become the dominant

force in the WSYS are called hegemons force in the WSYS are called hegemons and their control is called hegemonyand their control is called hegemony

Three hegemons in the history of the Three hegemons in the history of the WSYS: The Netherlands, The British and WSYS: The Netherlands, The British and the U.S.the U.S.

U.S. hegemony peaked in the 1970s and U.S. hegemony peaked in the 1970s and we are on the way downwe are on the way down

It is not clear whether there will be a new It is not clear whether there will be a new hegemon, or whether power will be shared hegemon, or whether power will be shared in the WSYS in the futurein the WSYS in the future

The End of Hegemony?The End of Hegemony?

What happens to end the reign of a What happens to end the reign of a hegemon?hegemon?

Environmental degradationEnvironmental degradation Expense of maintaining hegemony (wages, Expense of maintaining hegemony (wages,

standard of living, military)standard of living, military) Competition between Core countries for Competition between Core countries for

hegemonic superiorityhegemonic superiority Resentment on the part of dependent Resentment on the part of dependent

(peripheral and semi-peripheral) societies (peripheral and semi-peripheral) societies at their inability to attain Core lifestyleat their inability to attain Core lifestyle

The End of GrowthThe End of Growth

Resources are depletedResources are depleted We are currently using at 125% We are currently using at 125%

of the earth’s ability to of the earth’s ability to replenish resources.replenish resources.

There will be a steady decrease There will be a steady decrease in jobs over time.in jobs over time.

Steady state economy?Steady state economy? Green economy?Green economy? Socially responsible industry?Socially responsible industry?