Introduction
Thesis Statement:
The fundamental problem of global inequality lies not in the
existence of global wealth itself, but its misalignment with
sustainable and equitable development goals. Unequal exchange
successfully describes history of and the extent to which
exploitation, and power imbalances within the global economic system
perpetuate instances in which the interests of wealth are aligned
against that of poverty reduction. successful economic reforms in
China, for example, prove that the interests of wealth are not always
aligned.
Sources to be
used:
For Unequal
exchange: consider using Political Geography by Peter J Taylor
(3rd Edition or afterwards) as a guide, although perhaps
any guide or multiple guides will do.
For more complex
points stick to Wallerstein and political economist that cover
Unequal Exchange and World Systems theory in journals.
Branko Markovic
writes a lot about global inequality and poverty, and how global
poverty is going down, use that for the section on how the realities
of unequal exchange do not necessarily translate into poverty
increasing but rather they can also decrease within a world system in
which wealth is still accumulating in the core and from the
periphery.
Peter J Taylor
Political Economy 3rd dimension makes a certain point
about the failures of democracy in Ghana, citing Osei-Kwame and
Taylor 1984), see if you can use this to construct a model on how
ethnic tensions can drag a country down in order to find a
perspective linking the colonial exploitation of ethnic tensions into
a mechanism for post-colonial elites and corporations utilizing
ethnic tensions to keep the countries divided.
Don’t use
moneyland as a source unless there is no better source out there.
Consider citing
Ha-Joon Chang for understanding how developing countries can improve.
• Key Terms:
Global North, Global South, development goals, sustainable
development, misalignment
Body Paragraphs
1. The Paradox of
Global Wealth and Persistent Underdevelopment
• State the
problem: Acknowledge the coexistence of immense global wealth with
vast poverty and underdevelopment in many regions of the Global
South.
Explain the
history of why there are countries that are under-developed and the
-
Colonialism
as foundation: Describe how colonial powers established systems of
resource extraction and labour exploitation, setting the stage for
long-term economic inequalities. -
Legacy of
dependency: Explain how ex-colonies were left with economies
structured around exporting raw materials, lacking industrial
development and vulnerable to price fluctuations. -
The impact
on development: Contrast the industrialization and wealth
accumulation in the Global North with the stunted development
trajectories of former colonies.2. Unequal Exchange as a
Contributing Factor
• Link to
misaligned wealth: Emphasize that unequal exchange contributes to
wealth accumulating in the Global North without translating into
meaningful development in the Global South.
How Unequal
Exchange Works Today
Terms of trade:
Centre on the idea that prices of raw materials exported by the
Global South are often lower compared to the manufactured goods they
import from the North. This represents a transfer of value.
Write in detail
about how the manufactured goods, and in particular the more value
added goods such as capital goods, as are produced in the global
north, and sell for a high price whereas the raw materials are
produced in the global south. Write about how this, whenever combined
with unfair international trade agreements (cite Ha-Joon Chang,
amongst others)
International
trade agreements: Discuss how trade deals reinforce the interests of
wealthy nations, reinforcing unequal terms of exchange and limiting
policy options for developing countries.
3. Beyond Unequal
Exchange: Other Misalignment Factors
• Neocolonial
influence: Briefly describe how ex-colonial powers or powerful
nations might maintain control of resources or markets in ways that
stifle development, even without direct colonization. This can take
place through powerful companies, such as BNP Paribas, Glencore, and
other extractives giants.
Also describe in
detail how the elites of these countries themselves are heavily
involved in the process of looting these countries to enrich
themselves. Consider perspectives from David Keen, who describes in
great detail how countries can have worse and worse living standards
during conflicts that enrich the elites involved.
4. Incentives and
the China Model
• China’s
remarkable rise: Summarize China’s transformation from an
impoverished nation to a global power.
• The state’s
guiding hand: Describe how the Chinese state, despite authoritarian
methods, played a major role in directing investment, infrastructure
development, and industrial policy. Use Ha-Joon Chang’s
developmentalist framework to justify this.
• Incentivizing
the elite: Explain how the Chinese Communist Party created a system
where both state officials and segments of the business class were
incentivized to pursue long-term economic growth that benefited the
country as a whole.
• Limitations
and Caveats: Acknowledge the extent to which China Has not truly
transcended the global supply chain and may very well be stuck in the
‘middle income trap’, although only time can tell.
5. The Importance
of Incentives
• Global and
local levels: Argue that aligning global wealth with development
goals requires reshaping incentives at both the international level
(fairer trade, technology transfer) and within developing countries.
• Reforming the
system, not just aid: Emphasize that throwing money at the problem
without structural changes won’t achieve the desired results.
• Accountability
and long-term benefit: Creating incentives that reward sustainable,
equitable development over short-term profit-seeking is essential.
Conclusion
• Recap main
points: Restate how unequal exchange is part of a larger picture
where misaligned incentives and power dynamics hinder global
development.
• Thesis
connection: Global wealth is not the root problem; it’s the way it is
generated, controlled, and distributed that creates inequality and
hinders progress.
• Paths
forward: Call for a re-examination of the global economic system and
a focus on incentives that promote long-term, sustainable development
benefiting the majority.
Unequal Exchange
Background to
unequal exchange:
-
Unequal
exchange is a theory in political economy that emphasises the idea
of a rich global north accumulating at the expense of a poorer
global south -
In terms of
the methodology I would like to use, it should be noted that this is
not merely about a rich global north asserting itself onto a global
south without agency, it is rather about a global north asserting
itself onto the global south and manipulating the internal politics
there to be beneficial to its financial interests, which have led to
a situation, in terms of post-colonialism in which countries fail to
develop in any functional way. Examples of this occurring have been
cited by GE Robinson on the chapter on notables. -
And in terms
of Burma wherein it is constantly noted that the British government
used the ethnic minorities in these countries in order cement their
control over said areas, but did not help them. -
It is also
important to note that, in terms of the way in which the global
economy is set up today, that many developing countries are not able
to easily grow because they cannot develop their more infantile
industries. Intellectual Property law, for example, makes it harder
for developing countries to grow the way that South Korea and the
other Asian tigers historically did. Furthermore, pressures against
allowing for a level of protectionism in the economies of these
countries means that they cannot engage in import substitution,
meaning that they will naturally find it more difficult to move up
the value chain. -
Another key
aspect of this is the fact that, as western countries (Particularly
Britain, and the United States) have infrastructures which make
them, relatively speaking very desirable places to store you’re
ill gotten gains in, they receive large capital inflows in from
developing countries which are not developing. Note, and it is
important, that allot of developing countries have governments that
do not want the repatriation of these lost capital flows back
to their country (moneyland). Instead they welcome the exodus of
these capital ssets out of their countries as its often in the best
interests of their local elites to have money abroad in case they
get exiled or lose power. -
Meanwhile,
these large capital inflows benefit the countries in the global
north, helping them maintain their relative status above the
countries in the global south.