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Lecture 2 - Uneven Development
Lecture 2 - Uneven Development
Development
COPYRIGHT © 2013 BY JOHN WILEY & SONS, INC. ALL RIGHTS RESERVED. 1
Class outline
▪ Introduction
▪ Links to previous week
▪ Aims of this lecture
▪ Stylized facts about economic output and change
▪ How does capitalism work?
▪ Value creation and the structures of economic life
▪ Driving Capitalism: Profit, exploitation, creative destruction,
globalization
▪ The production of space and uneven development
▪ Key take home points
▪ References and material
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Last week
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Aims of this class
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Fossil fuels supplement and/or replace human and animal labor
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Data Source
▪ https://ourworldindata.org/
▪ http://glineq.blogspot.com/2019/02/global-poverty-over-
long-term.html
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KEY PERIOD
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The importance of historical
specificity
▪ Modes of Production
Factors of
▪ Forces of production (the power to production
transform nature to human ends)
▪ Nature (energy, air, water, raw materials)
▪ Labour power
▪ means of production (machines,
buildings, tools, …)
Changes over
time and
▪ Relations of production (the way the space
production process is socially organized)
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Other modes of production
is the way we organize socially the production process
▪ Feudalism
▪ Slave economies
▪ Communism
▪ Communitarianism
They are all characterized by specific
relations between dominant social classes
(slave – slave owner, landowner-serf, etc).
These different classes have different
rights and responsibilities, the dominant
class tends to control access to the
means of production, etc.
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Defining capitalism
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Value creation and structures of
economic life in capitalism
▪ Both the inputs/outputs of the production process, and the labor power
that participates in it, are bought and sold through a market
mechanism.
▪ Q: Can you think of values not produced and exchanged through the market
mechanism? How important are those “non-market” values today?
▪ While there still may be people that live under slave-like conditions
(currently estimated to be 40 million world wide) or from subsistence
agriculture, value creation through the production of commodities for
sale on a market (capitalism) is the dominant social form of organizing
value creation -> capitalist social relations have become generalized!
COPYRIGHT © 2013 BY JOHN WILEY & SONS, INC. ALL
RIGHTS RESERVED.
Pre-conditions and implications
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Institutional pre-conditions
For the Wage-Labour
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Value creation under capitalism
LP
M → C ....P....C → M + m → etc.
'
MP
M = money
C = commodity set of commodity input that is bought by capitalist
LP = labor power
MP = means of production (usually called capital such as machines,
buildings, raw materials,…)
P = Production (dots means it takes time to transform inputs into output)
C‘ = new commodity produced
m = profit
Goal is to make a profit in order to keep the wealth creation process going
Question: What possibilities do you have to increase those profits?
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Fundamental logics that drive
contemporary capitalism
1. Capitalism is profit-oriented.
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The need to be innovative
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Scale of technological progress
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NEXT: The role of geography
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Globalization and the
production of space
Profit making: Globalization and
production of space
▪ SPACE IS PRODUCED!!!!
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-> Key processes discussed in class
▪ Globalization
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Globalization – unequal exchange
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Inherent uneven geographies of
capitalism
▪ Two meanings:
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Capital switching
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Growth and decline of cities along
main routes of „sunk capital“
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Point…
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Point….
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Scaling up the region/city…
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Spatial divisions of labor (functions of places)
▪ Example:
Location patterns
of Japanese Car
industry in the
U.S.
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Result: Some regions decline, others grow …. Spatial shift…
Displacement
Decline of
manufacturing
belt
Rise of
sunbelt
Source: Peet (1983), Figure 9. Reprinted from Economic Geography with permission of Clark
University.
COPYRIGHT © 2013 BY JOHN WILEY & SONS, INC. ALL
RIGHTS RESERVED.
COPYRIGHT © 2013 BY JOHN WILEY & SONS, INC. ALL
59
RIGHTS RESERVED.
Sometimes re-
invention of places in
situ
▪ London docklands
▪ Harbour Areas of
Hamburg and Düsseldorf
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Repurposing of existing infrastructure
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TAKE HOME POINTS
▪ Please make sure that you look at all the material for your
home work
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HOW TO READ RESEARCH
ARTICLES
Results
Think of
future
research
Consider
▪ Skim article
▪ Author(s), Journal, title, headings, subheadings, figures,
equations
▪ Read introduction
▪ What is the purpose of the paper?
▪ theoretical or empirical paper
▪ What is the topic?
▪ What is the motivation?
▪ What is new?
▪ Key concepts
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Read
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Results
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Think of
future
research
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