INGS1002

ShortEssay

Worldwideeconomic,cultural,politicalandtechnologicalexchangeshavebeenaconstant
throughouthumanhistory.However,itisonlyrelativelyrecentlythattheseinteractionshavebeen
describedandconceptualisedasbeingpartofaglobalprocess.Explainwhythisisthecase,
highlightingthewaysinwhichthecurrentprocessesofglobalisationareuniqueordifferentfrom
previousglobalinteractions.

Identifyingasingleexplanationforcurrentprocessesofglobalisationisafraughtendeavour,owing
firsttothesheerframeofreferenceaswellasthedefinitionalvariancesresultingfrommultiple
perspectives.(Martinetall.2006:503)Attemptsatobjectivityarealwayshinderedbyones
experiencewithintheverysystembeinganalysed.Nonetheless,throughacritiqueofthe
popularisedneoliberalorthodoxywhichframeseconomic,cultural,politicalandtechnological
exchangesasoccurringasaresultorwithinawiderglobal,particularlyeconomicnarrativewewill
cometoseethatthecontemporaryconceptualisationoftheseprocesseshavecomeaboutasaresult
andareindicativeofinternationalpowerrelations
ExplicitlyconsideredhereareWallersteinsWorldSystemTheory(1976)andStiglitz
reconceptualisationoftheDevelopmentParadigm(2003).Commontobothistherejectionofthe
developmentexperienceasachronologicalprocessofinevitablestages,whileWallersteinimplies
thatdevelopmentisconditionallyimpossibleowingtothenatureofthecapitalistsystem,Stiglitz
suggeststhepossibilityofanewdevelopmentparadigmbasedonfairandwholeparticipationinthe
worldeconomyasavehicletodevelopmentforall.Theseclaimsinturnareevaluatedbypractical

examplesoftheirapplication,includingthedevelopmentoffurthertheoryandcounterculture
movements.

WiththeendoftheColdWarandinwakeofthefalloftheUSSRtheneoliberalpoliticaleconomic
ideologycametodominate,Fukayamafamouslydeclaredtheunabashedvictoryofeconomicand
politicalliberalism."(Fukuyama1989:2)Outofsamepoliticalmovementencouragingthemassive
influxofprivatisationandderegulationwasborntheWashingtonConsensus,thepractical
applicationofdevelopmenttheory,presupposingthatdevelopmentwasbutstagesofeconomic
growth,fromatraditionalsocietytooneofhighmassconsumption(Rostow:1959)andthat,with
theimplementationof10keypolicyinstruments(includingtradepolicyandforeigndirect
investment)developmentcouldbeachievedbyallnations.(Williamson:2002)Inthisageofmarket
dominance,otherprocessesofexchange,(economic,culturalandpolitical)wereframedwithinan
economicnarrativefittingwithneoliberalcapitalism.InthefaceofafracturedSovietUnionand
hegemonicUS,previousexplanationsofglobalprocesses,suchasLeninsaccountofMarxist
Imperialism(Lindsey1982)hadapparentlybeendebunked,whileneoliberalismslegitimacywas
affirmedanactivelypropagatedeconomicnarrative,somuchsothatthere[was]noother
alternative"(Thatcher,citedinWright2012:1)toessentiallyreinforcingandperpetuatingcurrent
powerrelations.
WallersteinandStiglitzhowever,activelycontestdevelopmenttheoryinthewakeofunabating
underdevelopmentinsomenations,aswellasthemeasuredincreaseinbothinterandintracountry
inequality.Wallerstein,inhisWorldSystemsTheoryexplainsthedifferencebetweenprevious
formsofinteractionbyidentifyingtwoincarnationsofworldsystemtheworldempireandworld
economy,differentiatedbythedisplayofaunifiedpoliticalsysteminthefirst,anditsabsencein
thethelatter.Mostcentrally,thedramaticincreaseinrelativespeedandscaleofeconomic,cultural,

politicalandtechnologicalexchangesinrecenttimesisexplainedbythestructuralimperative
presentintheworldeconomyformaximumandeverincreasingproductionasthemeansbywhich
itresolvescyclicaldownturns.Thisisincontrasttothepreviousempiresystemwheremaximum
productionwasconsideredastructuralrisk.Further,thestructuralbasisofunderdevelopmentin
selectnationsandincreasinglevelsofinequalityisaccountedforwithwhatWallersteincontendsas
theactivepoliticalrepressionpresentintheworldsystem,astructuralnecessityinastructureof
fundamentalinequity.(Wallerstein1976:3427)Coreperipherytheoryinparticulardevelopedas
anextensionofthisideaandcontendsthattherelationsbetweendevelopedandunderdeveloped
countriesarecharacterisedbyexploitationperpetuatedparticularlybyinternationalfinancial
institutions.Underdevelopmentthen,isnottheresultofafailuretoundertaketherighteconomic
pathtodevelopmentbuttheproductofsocialandhistoricalforces.(Frank1970)
Stiglitz,similarlyassertsthatglobaldevelopmentisneitherinevitablenortobefoundviaafree
marketeconomyalone.Hesimilarlyconcludesthatdevelopmentisnotonestageofwithin
chronologicaleconomics,buttheproductofsocialforces,thushisassertsthattheWashington
consensusisaninadequatevehicleforchange.Inhisterms,thefocusoneconomicshasconfused
notonlymeanswithends,butalsocausewitheffect.(Stiglitz2003:4)Borrowingfromcore
peripherytheory,Stiglitzcitestheexistenceofdualsocietiesasevidenceforthisdeficiency.The
market,heclaimsisalimitedapparatus,andpromotionofitalonewithoutanunderlying
institutionalinfrastructureandmoralbasiswillfallshortofaims,indeedwithoutsuchfoundational
measuresthetendencywillbeforwealthandassetstobemovedabroad.Empirically,theEast
AsianMiracleiscitedtocontendneoliberalismandtheprescriptionsoftheWashingtonConsensus.
EastAsiansuccesswasbasedofacombinationofselectpolicyinstrumentsandheavygovernment
involvement,promotingattimesindividualindustrialsectorsandfinancialrestraint.(Stiglitz2003:
67)Thusitisapparentthatconceptualisationofworldwideexchanges,includingpolitical,cultural,
technologicalandeconomicexchangeshavebeenframedwithinawiderneoliberaleconomic

narrativeofdevelopmentinordertoperpetuatecurrentpowerrelations,butthatthisnarrative
explanationissignificantlyflawedandfallsshortinexplainingthedevelopmentexperiencesof
manyoftheworldsnonwesternnations.

Nonetheless,despitebothauthorsconsensusincritiquingtheneoliberalideology,theycometovery
differentconclusions.Wallersteincontendsthatitremainsastructuralimperativeofthecapitalist
systemthatsomenationsremainsteepedinunderdevelopmentwhileStieglitzholdsfaiththat
developmentisachievableforallthroughashifttoanewdevelopmentparadigmwhichapproaches
developmentwithawiderconceptualisationbeyondsimplyeconomics.ForWallerstein,
underdevelopmentisenforcedandmaintainedbythecapitalistsystemitself,viastructural
inequality.First,throughtherelocationofcrisestotheprofitsoftheproducersandsecondly,by
meansofacoreperipherystructuralhierarchy.Theinteractionbetweenclassandspace
hierarchiesiscentraltothecontinuationofthesystemasmeansofabsorbingeconomicshocks,yet
thisisafinitesolution.Theexhaustionofpossibilitiesforspatialrestructuringwill,Wallerstein
posits,contributetotheeventualcollapseoftheworldeconomysystemandbeginningofsocialist
worldgovernment.(1976:351352)
Stiglitz,bycomparisontakesaconstructivistperspectivetoclaimthatfirstglobaldevelopmentis
possiblewithinacapitalistsystem,butcannotbeachievedthroughfreemarketeconomicsalone.
Hisproposalforanewdevelopmentparadigmseesareconceptualisationoftheeconomyas
embeddedinsocietyasanessentialfacet.Moreover,heassertsthatdevelopmentshouldbelocated
inthesocial,intheraisingoflivingstandards,intheproductionandsharingofknowledge,inthe
reductionofpovertyandsustainabletreatmentoftheenvironment(2003:12).Suchaholisticfocus
promotesdevelopmentofaninstitutionalandcivilsocietyframeworkessentialforaneffective
marketeconomyandwhichcannotbegeneratedbythemarketitself.Stiglitzemphasisesthe

essentialityoflocalaction(2003:16),asharpbreakfromtheonesizefitsallnatureofthe
WashingtonConsensus.Localisedmovementspromotecommitmentandinvolvementinsociety
widechange,indeedinhisview,changecannotbeenforcedbyanexternalforceandthus,a
fundamentalflawoftheWashingtonconsensus.Suchviewsareevidentinproposalssuchasimport
substitutionindustrialisation(List1997),whereinthedevelopmentofdomesticinstitutionsand
industryareseenasessentialpredecessorsoffreetrade,andthemselvesaroseasmeasuresto
counterthePrebischSingerthesis(Maneschi1983),anotherproposaloriginatingoutoftheWorld
Systemtheory.Alternativefoodnetworksaresimilarexamplesofsocially,principallylocallybased
transformationofglobalexchanges.Whileremainingsmallscalecounterculturemovements,they
holdthepotentialtobeexpandedintoatrulyglobalsystemofinclusion.Foodassiteofeconomic,
cultural,politicalandtechnologicalsignificanceisincreasinglyembracedasasiteofsocialchange
(DeVitoWilliamson2012:1).TheVegetablesUnpluggedCSAisanexampleofredefinedrelations
betweenproductionandconsumption,andinturn,coreandperiphery.Economicrelationsare
establishedoutsideofthemarketsandequalpreproductioninvestmentsseesbothconsumerand
farmershareintherisksandrewardsoftheharvest,thusdestabilisingtraditionalclassandspatial
hierarchies(Tansey2011:112).Suchcountermovements,asreactionsto"themarketbasedlogicof
anincreasinglyglobalandcorporategoodsystem"(DeVitoWilliamson2012:2)identifytheorigins
ofneoliberalconceptualisationsofglobalprocessesasbeingbasedandaimedatperpetuating
currentpowerrelationswhileseektocircumventandrestructuretheverysysteminwhichsuch
exchangesaremade.
Thusitmaybeseen,thatrecentcharacterisationofcultural,politicalandtechnologicalexchanges
asaglobal,specificallyeconomicnarrativeunderneoliberalcapitalismistheresultofexisting
powerrelations.Inlightofthefailureofneoliberalismtoexplaintheperpetuating
underdevelopmentofsomenationshowever,areconceptualisationofdevelopmenttheoryhasbeen

proposed.Centraltothisideaisarelocationofthefocusfromafreeeconomytosocietyandisseen
embodiedfirstinISI,andalternativefoodnetworkssuchasVegetablesUnpluggedCSA.

Inconclusion,currentinternationalcultural,political,economicandtechnologicalexchangeshave
beencharacterisedasoneglobalprocess,thatisneoliberalcapitalism,bothasaresultandto
perpetuatepostColdWarpowerrelations.Acriticalinvestigationofthisconceptualisation,
consideringbothWallerstein'sWorldSystemTheoryandStiglitz'NewDevelopmentParadigmhas
revealedfirstthatneoliberalismandtheWashingtonconsensuswhichroseoutofitareinadequate
explanationsfordevelopmentbut,whileWallersteincontendsthatisthenatureofthesystemthat
somenationsremainsteepedinunderdevelopmentinacoreperipheryspatialhierarchy.Stiglitz
arguesthatthroughrelocatingthefocusofchangefromtheeconomytosocietyequalglobal
developmentismorethanpossibleforall.

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