Geography 352

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• Geography 352
• Urbanization in the Global South
• Jim Glassman
• Lecture 14, February 26

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Questions about labor and welfare implications

• Might clusteringas opposed to decentralizationfa
  cilitate labor organization?
• Is the context of industrialization in the Global
  South inimical to either Fordist labor politics
  or flexible specialization?

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Clustering vs. decentralization

• Brazil successful labor organizing
• Mexico greater success in labor organizing near
  Mexico City (in Fordist era)
• South Korea successful labor organizing
• Thailand greater success in labor organizing
  near Bangkok

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Industrialization in the Global South and labor
politics

• Brazil Fordist industries basis for labor
  organizations
• Mexico Fordist industries basis for labor
  organizations in past
• South Korea Fordist industries basis for labor
  organizations
• Thailand Fordist industries basis for labor
  organizations, but these are weak

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Summary of complexities of issues surrounding
egalitarianism

• Hub-and-spoke districts may not always yield
  egalitarian growth
• Marshallian districts may not be egalitarian
• Satellite platforms are not egalitarian but may
  lead to regional growth
• State-anchored districts can be egalitarian or
  inegalitarian

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Summary(cont.)

• Decentralized growth may not be egalitarian
  South Korea vs. Mexico
• Centralized growth inegalitarian in short-term,
  but conducive to new opportunities (e.g., labor
  organizing)?
• Both ISI and EOI can lead to concentration
  Brazil and Thailand
• Geographical-historical conditions most important
  to pattern?

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Summary(cont.)

• Women favored most by ISI or EOI?
• ISI domestic patriarchy and domestic security?
• EOI public patriarchy and opportunities to break
  down domestic patriarchy?
• Women favored most by centralization or
  decentralization?
• Decentralization opportunities to work closer to
  home
• Centralization opportunities to develop new
  collective identities

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• Susanna Hecht and Alexander Cockburn, The Fate of
  the Forest Developers, Destroyers and Defenders
  of the Amazon (New York HarperCollins, 1990)
• Bertha K. Becker and Claudio A. G. Egler, Brazil
  a new regional power in the world-economy
  (Cambridge Cambridge University Press, 1992)

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Geopolitics and Manaus growth

• Pre-World War II Amazonian development
• The quadruple alliance
• The Brazilian military coup of 1964
• General Golbery do Couto e Silva and the grand
  strategy for the Amazon
• General Castello Branco and Operation Amazonia

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Federal incentives for investing in Manaus Free
Trade Zone (MFTZ)

• Total exemption of excise tax on industrial
  products (IPI)
• Total exemption of IPI on import of foreign
  products into the MFTZ
• Total exemption of IPI on products exported from
  abroad or the remainder of the country into MFTZ
• Credit of IPI levied on inputs and equipment
  purchased for use in the industrialization of
  products to be shipped to the MFTZ

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Federal incentives(cont.)

• Total exemption of tax on import on foreign goods
  destined to internal consumption, production in
  general, and reexport
• Deduction of tax on import on the entry of inputs
  used in products industrialized at the MFTZ when
  they leave for other parts of the country
• Total exemption of tax on import of intermediary
  products
• Exemption of export duties on MFTZ exports

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Federal incentives(cont.)

• Deduction of income taxes for companies for
  investment into priority areas
• Deduction of income taxes for companies for
  reinvestment into priority projects with
  counterpart monies from the persons own
  resources
• Partial or full exemption of income taxes for
  companies for priority projects
• Financing to production sectors

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State and municipal incentives for investing in
Manaus Free Trade Zone (MFTZ)

• Refund of tax on circulation of goods and
  services for industrial companies who manufacture
  priority products
• Total exemption of tax on circulation of goods
  and services on the export of products into the
  MFTZ
• Credit of tax on circulation of goods and
  services for products from other states
• Exemption or reduction of services-rendered tax
  for services-rendering companies

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Results of Manaus development

• Majority (60) of invested capital comes from
  Brazil (from large cities)
• MFTZ becomes import zone sending goods elsewhere
  in Brazil rather than export zone
• Industrial structure remains that of satellite
  platform
• 1990s liberalization raises questions about
  Manaus future

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Smiths world systems analysis of South Korean
decentralization

• Long-term historical legacies
• Relatively balanced urban hierarchy in 1920
• Agrarian social structure and internal
  orientation limited growth of port cities

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Smiths analysis(cont.)

• Japanese colonialism
• 1910-1930 Japan builds railroads and connects
  inland cities to ports to facilitate export of
  agricultural products
• Seoul lacked adequate port, became dependent on
  goods shipped from intermediate cities
• 1930-1937 Japan begins locating heavy industries
  in Korea as part of its industrialization and
  regionalization drive
• Korea thus developed more broad-based industrial
  experience than other East Asian nations outside
  Japan

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Smiths analysis(cont.)

• Immediate post-World War II period
• End of war brings many Koreans back from Japan to
  southeast region of Korea (from which many had
  originally emigrated)
• End of war removes Japanese domination, but
  Japanese rule eliminated landlord class in Korea
  and created more egalitarian social base upon
  Japanese departure

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Smiths analysis(cont.)

• Cold War period
• US more interested in Korea for geo-political
  than economic reasons, thus allowed economic
  policies (national protection) and encouraged
  reforms (land reforms) that it might not have
  otherwise
• US aid buttressed South Korean industry
• Division of country, war with North led to
  concentration of some activities in the southeast
  of South Korea for strategic reasons
• Easy access to US markets allowed growth of
  exports under EOI, encouraging some
  decentralization to secondary cities and raw
  materials sites
• Authoritarian Cold War state was able to
  discipline labor to effectively keep wages low
  and allow EOI strategy to work
• Disciplining labor may also have prevented the
  growth of the informal sector by allowing firms
  to profit adequately from exploitation of (weak)
  formal sector workforce

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Smiths analysis(cont.)

• Post Cold War South Korea
• Increased labor militance and democratization
  since 1987
• Economic crisis and IMF structural adjustment
  program in 1998, leading to attempts by US
  Treasury Department to open up Korean economy to
  US investors
• Uncertain longer-term impacts on urbanization
  patterns, but no large changes so far