Sunday, May 4, 2014 - 0 comments

Modern World System Theory



           Hello Readers ! Thank you  very much for reading this blog, i hope you can get many knowledge after doing that. :D

       International Political Economy (IPE) Perspectives are very dynamic. There is one framework of analysis that only view IPE “from below”, from the perspective of the oppressed classes, the poor, and the developing “Third World” nations. In contrast to mercantilism and Liberalism, it gives a voice to the powerless, this perspective raises issues about human freedom and the application of reason in shaping national and global institutions. This perspective calls structuralism which is a root in ideas of Karl Marx.

            I will not explain about structuralism perspective because in this blog already one article who discussed about that, but I would like to discussed about the recent theory who associated and related to “structuralism perspective”. That is “The Modern World System Theory”, this theory was originated by Immanuel Wallerstein.

“The Modern World System is a world economy : it is larger than any juridically defined political unit, and the basic linkage between its parts is economic”

For Immanuel Wallerstein, the world economy provides the sole means of organization in the international system. He proposed three different categories of nations which are core, semi-periphery and periphery nations. This categories describe each region’s relative position within the world economy as well as certain internal political and economy characteristics. There is an dependency among these nation states to do an exchange.

Core
The Core regions benefited the most from the capitalist world economy. The characteristics of core nations are have strong central governments, extensive bureaucracies and large mercenary armies. International commerce is controlled by local bourgeoisie. According to Wallerstein, the core nations dominate the peripheral nations through unequal exchange for the purpose to extracting cheap raw materials.

The core nations using the periphery as a market for dumping surplus production. The core interacts with the semi-periphery and periphery nations through the global structure of capitalism, exploiting these regions and also transforming them. The core nations usually regulating and determining international market rules. And when the periphery nations try challenging or interrupting the market rules, the core nations will use force or power to faced it. The example of core nations are United States, United Kingdom and the other developed countries.

Semi-Periphery
            According to Wallerstein, the semi-periphery nations were exploited by the core but become exploiter to periphery nations too. The semi-periphery nations are less dependent to core nations. The semi-periphery nations also contribute to stabilizing the world economy system because become one of the capital intensive industries. The core nations usually make the semi-periphery nations become the basis of the production factories because semi-periphery nations have cheap labours. The semi-periphery nations sometimes seeking to be core by using mercantilism principles like collecting wealth to increase the power of that country, maximizing exports and limiting imports. The example of the semi-periphery nations is China.

Periphery
            The periphery nations are the countries that have big raw materials and  very concerned with agricultural sectors because have large land and fertile soil. The periphery nations have lacked strong central government,the periphery nations have internal problems with the Governmental officials and structure. The periphery nations were controlled by other states through imperialism and international market rules too. The periphery nations export raw materials to core nations and core nations sell the finished product to the periphery nations with a higher price. The example of the periphery nation is Brazil.

So, where is Indonesia’s position exactly? I think Indonesia’s position is still in the periphery nations, Indonesia still controlled by International market and other state, Indonesia have many natural resources but only can export raw materials to core nations not the finished products even we have to but that in a higher price….

            We can’t change the system, but we can change our positions in this modern world system. According to Immanuel Wallerstein Arguments, “ politics is constrained by the economic structures, that strong (core) nations dominate weak (peripheral) one because placement of the nation state in the world capitalist system affects its ability to influence its global roles. So, the solution is we should maximizing our influence to the global economy system, I hope one day our country can be a core nation :D ……….

Thanks
Noto Suoneto

References :
·         -  Balaam David N. and Dillman Bradford,”Introduction to International Political Economy,Fifth Edition,“Economic Determinism and Exploitation: The Structuralist Perspective”pp 107-132.Pearson Education,2011.
·       -   The Modern World System : Capitalist Agriculture and the Origins of the European World-Economy in the sixteenth Century. New York : Academic Press
·     - Modern History Sourcebook : Summary of Wallerstein on Modern World System Theory. Retrieved on http://www.fordham.edu/HALSAII/MOD/Wallerstein.asp
·         Picture “ Modern World System Map” by www.cassian.memphis.edu
·         Picture “ Wallerstein’s World System Theory Model” by www.pinterest.com
·         Picture “ Immanuel Wallerstein” by www.changetimes.org
·         Picture “ Cities in Economic Expansion and Current Crisis of the Modern World System “ by www.lboro.ac.uk
·      

Friday, May 2, 2014 - 0 comments

Confronting Neo-Imperialism in Indonesia with Neo-Mercantilism Policies

In this globalization era, relations among countries binding up very easy, it is occurred in many aspects such as telecommunication, political, mobilization, transportation, social culture and of course in economic aspects.

Nevertheless, this widen openness make countries in the world become interdependence especially in economic sector. Countries (developing and poor) that don’t have capability to produce goods like to import that goods from the developed countries. This is happened too in Indonesia, the glower of foreign products seen very easily. Imported and Branded products from foreign companies excessively use by majority of Indonesia’s society, like transportation products (Yamaha, Honda), Communication products (Samsung, Apple) , Food and Beverage    ( Danone, Coca Cola) and many more.





Those things can be said as “neo-imperialism” , this new kind of colonization did by countries that have big influence and capability in world trade sector.

Neo-imperalism can be define as a new way to exploit or control other country without have to occupy them, the core nations (Developed countries) like United States and Japan will make the periphery nations( Indonesia) depends on them through financial,production and trade structures throughout the world. Neo-imperalist state doesn’t need military tools to subjugate and dominate weaker states but using influence or policies of trade and industrial sectors.

Neo-imperalism in Indonesia can’t be justified or neglected continuously, the power of foreign’s influence and Indonesia’s dependence with foreign countries make Indonesian government can’t act properly. As a International Relations student, I think that Indonesia should make policies to increase our capability in minimizing ,limiting even removing foreign imperialism.


            Local Industries should be protected and supported, Indonesia’s government as good as using policies that appropriate with neo-mercantilism principle such as industrial & infrastructural policies (limit foreign investments, steer domestic investment into sectors of economy, encourage high rates of saving, investment in public infrastructure and spend on goods & services produced by the private sectors) also Strategic resources ( steal the advanced technology of another, encourage their national companies to diversify suppliers overseas , and by concessions in other countries).

I wish that new regime that we will decide on President Election in this year can be concern to regulate and manage this country with sovereignty and self-supportness in producing goods even can expand our investments in other countries. Suppor Indonesia !

Noto Suoneto

References :
Balaam David N. and Dillman Bradford,”Introduction to International Political Economy,Fifth Edition,“Glossary- Neo-imperalism”pp 18.Pearson Education,2011.
Picture “ Neo-imperalism by USA” by www.jimcraven10.wordpress.com
Picture “ Foreign Products” by www.google.com
Picture “ The New Imperialism” by www.aldridqeshs.eq.edu.au
Picture “ Against WTO” by www.viacampesina.org
Picture “ Who Will be The Next Indonesian President” by www.andaka.com

Sunday, April 27, 2014 - 0 comments

Are You Made in China?



Are You Made In China?




            Hello smart readers, Welcome back to our blog, it is me Ivan… How is your day? Today’s weather in Jakarta is a bit harsh, so I hope you all take care of your healthy and your safety okay… 
            So, on this opportunity,I want to discuss and write how China products invade the nowadays global economy.  Do you guys remember the film titled Armageddon? On that movie, one of the actor said that “Only God created heaven and hell, and In the middle are all made by China.” Do you all realize how China products now really invade us? If some of us state that Chinese products are imitation or unqualified, you are totally wrong. Have you  guys pry your phone, even your phone is Korean, Finlandian, or even Canadian, look at the battery, where it made in?  
We cannot avoid again that China has invaded us, even United States has to confess it. According to  IMF, World Bank 2008, China has contribute around 5800 USD to World’s GDP on 2005.
 
On the other hand, the facts that according to Harris Poll showed that the most threat that could kill european economy sectors is China on the first poll. China got 31% responded, which above South Korea and even Iran. As we can see that data, we can be really sure, How Chinese products really envolve to our  economy system. China has become the most essensial drill to energise our economy machine. But why China?
            Based on the history behind, they were the rising Era of China which pioneered by Hu Jintao, on that era, Hu Jintao pushed all the development on every sectors especially economy to make China stregthen and also make China could be a great country. On the other side, some people believe that, the some of Chinese policy such as TVe (the policy to develop the industry in small village in China), On 1960, there were only 117 thousand and since the reformation 1978, the total has increaed to around 1,52 million. TVe is Township and village enterpreneur, to develop all the villager to get enterpreuneship.
            The other reason, why China could be this great is the diplomacy system. China has become a positive respond and image for some regions in the world for the followship to solve some problem such as security and also poverty development.
            That’s all about today’s article. So are u made in China too? Have a great day, and good luck!
Ivan Gunawan
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