The Geography of the World Economy offers an in-depth and stimulating introduction to the globalization of the world economy. 13 Reasserting the Local in the Age of the Global: Regions and Localities in the Global Economy 379.
STUDYING THE WORLD ECONOMY
Many important interactions also occur, for example between political and cultural change and between local factors and spatial change. To achieve this goal, we must first gain a clear perspective on the central relationship between economic organization and spatial change.
ECONOMIC ORGANIZATION AND SPATIAL CHANGE
In the first decades of the twentieth century, profitability became increasingly dependent on new labor processes. Creative destruction is at the heart of the broad structural shifts taking place in the development of technology systems (see Table 1.1).
Water (around 1785 in England)
This small initial advantage made Chicago the dominant city in the Midwest, the center of transcontinental trade. By the time it supplanted Philadelphia as the second largest city in the United States, it had developed a diverse economy with leading corporations in industries as diverse as iron and steel, apparel manufacturing, technology systems, and global economic development.
Steel and electricity (late 1870s)
The development of systems does not only affect the markets of goods, services and labor. A city like Chicago, which invested aggressively in railroads, saw its population quadruple in the span of a decade in the mid-1800s.
Fordist (around 1915 in the United States)
Today, thanks to the internal combustion engine, few earn a living in these occupations, but millions work as auto mechanics, long-haul truckers, and taxi drivers, and millions more are employed in manufacturing, sales, and production jobs. in the automotive industry.
High technology (late 1970s–present)
SPATIAL DIVISIONS OF LABOR
2 Transactions involving the exchange of two currencies at an agreed rate on the contract date for value or delivery at a time (more than two business days) in the future. In the following chapter, we define the main dimensions of contemporary economic landscapes within the world economy.
According to the World Bank (2010), the average income per capita in the 20 richest countries is 47 times that of the 20 poorest countries. Finally, in Part 4, we examine some of the reactions to the emergence of an increasingly large and powerful economy. forces that have come to characterize the world economy.
KEY SOURCES AND SUGGESTED READING
WHAT “ECONOMIC DEVELOPMENT” MEANS
Of the 31-35 million people worldwide who were estimated to be infected with HIV/AIDS at the end of 2010, approximately 23 million lived in sub-Saharan Africa (UNAIDS, 2011). The 2012 report showed that no country achieved high and sustainable welfare (see Figure 2.4); of the nine countries that came closest, eight were in Latin America and the Caribbean.
INTERNATIONAL PATTERNS OF RESOURCES AND POPULATION
OECD countries accounted for less than 18 percent of the world's population in 2009 (United Nations, 2010); however, many LDCs in the US, including many of the NIEs (Latin American countries such as Chile, as well as East Asian countries such as China, Singapore, South Korea, and Thailand) have already moved into this low growth stage (Stage III Type 5).
STAGE I I STAGE III STAGE IV Birtl
INTERNATIONAL PATTERNS OF INDUSTRY AND FINANCE
These shifts are also part of a globalization of economic activity that has emerged as the overall component of the world economy. In the late 1990s, China had one-fifth of the US trade volume (imports and exports). The structured inequality in the world economy has led to a chronic problem of international debt.
HISTORY OF THE WORLD ECONOMY
THE SINGLE WORLD MARKET
THE STATE SYSTEM
In some cases, for example in the Nordic model adopted by Norway, Sweden, Finland and Denmark, social policy is intertwined with economic and state policy. These policies promote social cohesion and transparency, minimize corruption (Denmark, Finland, Norway and Sweden rank in the top six of Transparency International's Corruption Perceptions Index; see Figure 3.2) and enable the kind of collective risk-taking and openness to change that are increasingly important for adapting to changing global economic and market conditions.
THE THREE GEOGRAPHICAL TIERS
Unequal development on a global scale is therefore not a recent phenomenon or merely a by-product of the global economy; it is one of the basic features of the global economy. But even as it expanded to include larger and larger parts of the world, the global economy did not remain unchanged. Countries have moved between levels; for example, the rise of the United States and Japan, and the decline of Spain and Portugal.
TEMPORAL PATTERNS AND HEGEMONY
INCORPORATION, SUBORDINATION, AND RESISTANCE
At the strong pole of the continuum, the exchange involved is important for core development. The pace of the transition to strong incorporation depends on the strength of the expanding state and the nature of the global economy at the time. The internationalization of the British economy in the 19th century was a crucial element in the accelerated pace and growing global clout (see Chapter 8).
- STATES AND THE WORLD ECONOMY
The first – the hierarchy of states – has historically shown considerable variation, for example in the rise and fall of Britain and the Soviet Union; the rise of the United States;. Chapters 7, 8, 10 and 11 document the impact of this global shift on the geography of the world economy. States at the core of the world economy show few signs of disappearing (see chapters 6 and 7).
3.3 “MARKET ACCESS” AND THE REGIONAL MOTORS OF THE WORLD ECONOMY
The first region of independent or "core" urbanism, from about 3000 BC, was thus in Southwest Asia, in the Mesopotamian valleys of the Tigris and Euphrates and the Nile Valley (which together constitute the Fertile Crescent). These nodes of the controlled territory acted as intermediate centers in the flow of demands from elites to producers and of goods in return. An early example of this kind of regression occurred in the Indus Valley where Arian herders displaced the urban economy in the middle of the second millennium BC.
EMERGING IMPERATIVES OF ECONOMIC ORGANIZATION
Such changes generally preceded the development of critical innovations, particularly in technology and economic organization. Insufficient absolute numbers of potential workers sometimes hindered economic development, while changes in the balance between a population and its local resources could be important in accelerating progressive or regressive economic change. It also stimulated the development of militarism, which led to important changes in spatial organization, for example by increasing the importance of defensive sites for important settlements.
EMERGENCE OF THE EUROPEAN WORLD-SYSTEM
Once Europeans began producing these products, their goods were sent to the rest of the world:. The articulation of the European world economy also produced a distinctive pattern of settlement and urbanization. Merchant capitalism was reflected in the urban landscape through a strengthening of the hierarchical system of settlements and the development of a central place system.
THE INDUSTRIAL REVOLUTION AND SPATIAL CHANGE
Today, economic geography within the core of the world economy is dominated by the physical, institutional and social legacies of industrial capitalism. In short, few elements of the economic landscape are not a product, directly or indirectly, of the industrial age. The changes imposed on economic landscapes by the first waves of the Industrial Revolution were overwritten by a succession of episodes of industrial development, restructuring and reorganization.
MACHINOFACTURE AND THE SPREAD OF INDUSTRIALIZATION IN EUROPE
As a result, the economic role of the state among the later industrializers tends to be more pronounced than in the countries of. In the first half of the twentieth century, two major wars marked the economic development of Europe. By the end of the war, France was below 50 percent of its pre-war standard of living and had lost 8 percent of its industrial assets.
FORDISM AND NORTH AMERICAN INDUSTRIALIZATION
From the end of the eighteenth century, however, the North American economy began to break away from this dependency relationship. The development of the railway system played a central role in the evolution of this new economic order. Of course, other regions have industrialized as well; however, they did not match the scale and intensity of the Manufacturing Belt.
JAPANESE INDUSTRIALIZATION: TWO ECONOMIC MIRACLES
At the top of the feudal hierarchy were the nobility (shogunate), barons (daimyos) and warriors (samurai). Similarly, the government financed the construction of the railway system (under British direction) before it was sold to private enterprise. Real wages (ie, the effective purchasing power of wages) increased significantly, while income inequality was reduced to one of the lowest levels in the world.
EMERGENCE OF “ORGANIZED” CAPITALISM
The development of the industrial core regions created a number of problems which resulted in more government intervention in several different areas. In fact, the sheer size of the public economy has come to blur the line between the public and private sectors. The net result is that the terms of trade have tended to work to the cumulative advantage of the industrial core.
PRINCIPLES OF ECONOMIC GEOGRAPHY: SUMMARIZING LESSONS FROM THE INDUSTRIAL ERA
The eclipse of the European core of the world economy by the rise of the United States and Japan. The emergence of distinctive core-periphery contrasts within the major industrial territories of the world economy. Thrift It evolved in response to the growing inflexibility of the old system of Fordist industrial capitalism.
TRANSITION TO ADVANCED CAPITALISM
With the downturn of the economic cycle (see Figure 1.2) there was a slowdown in economic growth and a steady decline in profits, especially in the industrial core countries. This in turn increased the competitive pressure on the labour-intensive sectors of the core economies. One of the most important conditions for advanced capitalism and the globalization of business activity was the restructuring of the corporate world.
PATTERNS AND PROCESSES OF GLOBALIZATION
Different stages of the production process (sometimes located in different places) can be integrated and coordinated through. In the first half of the twentieth century, the industry, like many others, began to modernize. Many large firms in the northeastern US continue to move production abroad or invest in automation.
THE CONTEXT FOR URBAN AND REGIONAL CHANGE
At the same time, we must consider the effects on key countries of wider changes in the world economy and globalized capitalism. In broader terms, three main changes can be identified: A changed relationship between capital and labour; new regional divisions of labor; The emerging state form will no longer be primarily concerned with ensuring full employment within a national economy, but with directing and promoting the structural competitiveness of the national economy by intervening on the supply side to encourage innovation; and will no longer be concerned with generalizing rates of mass consumption, but with articulating policies on the need to promote greater flexibility.
SPATIAL REORGANIZATION OF THE CORE ECONOMIES
SPATIAL DECENTRALIZATION AND EXTERNAL CONTROL