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Modernization Theory Redux

Modernization Theory Redux. David Ricardo and Circular Flow. Households, firms, government; rest of the world Factor market (land, labor, capital, entrepreneurial ability; rent, wages, interest, profit) Product market (goods and services, revenue)

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Modernization Theory Redux

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  1. Modernization Theory Redux

  2. David Ricardo and Circular Flow • Households, firms, government; rest of the world • Factor market (land, labor, capital, entrepreneurial ability; rent, wages, interest, profit) • Product market (goods and services, revenue) • Trade as technology: Iowa car crop and creative destruction

  3. Modernization vs. Dependencia • Dependency theory: avoid dependence 1st world capital, tech, expertise import-substitution industrialization • Confirmation: Asian Contagion • “Sustainable development”: 1st world development questioned (cultural + social impacts; environmental impact: Clinton in China) • “Decoupling” (not so much)

  4. Latin American gay bars • Catholic vs. Protestant; Mexico City 2006 Societal Cohabitation Law • Leftists ambivalent on LGBT (pro-globalization; Castro’s machismo)

  5. Slumdog Millionaire • India protests: Hindu nationalists; “poverty porn;” “German silver”

  6. Russia • Import car tariff (20%) Vladivostok protests (1,000s repairmen) Dec 21 military crackdown (local police not trusted) nationwide outcry blaming Putin for downturn (see: China) • Ministry Internal Affairs forum: "We are the Attack Dogs of the Regime": "Dear colleagues, On whom do the powerful rely? Us. Who can save them from the people's wrath? Who can help them hold on to their loot? Us. Russian militia. We will disperse the protesters like we have in May and October of 1993 ... So, for everything that happened to our Motherland from 1993 on, the fault is partly ours." • "I, for one, will never shoot at my own people. Not for a kopeck, not for a million." • "Every order can be obeyed or 'obeyed.' Get it? For now, I'm not putting my ass on the line. Better wait for a clearer picture, so as not to make the wrong choice." • Forum shut down for “technical repairs”

  7. British Nationalism • Rejection Euro and Euro banking system • Blair promised referendum before change; never happened • January 30: wildcat strikes against foreign workers (2 million unemployed; 5.8%) •  April: non-EU workers MA + previous salary equivalent to 22 thousand euros

  8. China • Export growth falling • Stimulus package: $586 B • Arrests + trials over Sichuan earthquake protests

  9. Nigeria • Collapsing pension funds (invested in stock market); demands increase minimum wage

  10. Iran • Khameini: "The school of Marxism has collapsed and the sound of the West's cracking liberal democracy is now being heard" • Ayatollah Ali Janati, head Guardians Council: "These people see the outcome of their bad deeds. This problem has spread to Europe now which makes us happy. The unhappier they are the happier we become.“

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