world system and revealation

8/14/2019 World System and Revealation

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Modern World EconomyModern World Economyand the book of and the book of

RevelationRevelation

Global Capitalist EconomyGlobal Capitalist Economyand Christian Criticismsand Christian Criticisms


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Introduction

The World is wide-known to be unequalEconomically

There are two types of explanations:The poorer States are less developedThere are active exploitation by the Richer

States on the Poorer States


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Modernization Theories

Theorists like S.Huntington suggest thatthere is a Modernization process

The process is Revolutionary, Complex,Systemic and GlobalModernization is Phased, Progressive andIrreversibleIt also predict on the Homogenizing effectof Modernization


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Modernization Thesis

Modernizing Institutions andEducation Modern Value Modern

Behavior Modern Society EconomicDevelopmentPoverty of 3 rd World State as a result of

being in Early phase of ModernizationThey predicted that Poor State will becomericher upon Modernization


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Widening Gap

However, These Predictions never come true:The GDP of 48 Poorest States have fewer wealth thanthe 3 Richest persons combinedIn 1960, the 20% of the world's people in the richestcountries had 30 times the income of the poorest 20%.It had rise to 74 times in 1997Growth rate in Economy, Literacy rate and LifeExpectancy, as well as Reduction rate of Infant andChild Mortality, become slower and slower


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Dependency Theory

Some Leftists argue that the World have become atwo tier system, composed of Developed and LessDeveloped CountriesActivity of World Capitalism made LDCsdependent on Industrialized Developed StatesTrue source of Underdevelopment lies in

Development of World Capitalismi.e. Development of Underdevelopment


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Dependency Theory

Some theorists propose for preferential treatmenton LDCs to aid their industrialization i.e. The NewInternational Economic Order However these proposal are ignored by the WestSome more radical theorist suggest LDCs to quitWorld Economy, which is hardly practical


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Neo-Liberalism

Liberalists believe that Free Trade and FreeMarket would eventually benefit everyone

Based on Classical theories by Smith and Ricardo

LDCs are poor because they dont have a freeMarketLiberalist suggest LDCs to Open their Market and

develop more linkage to World Economy


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Neo-liberalism

Practical Suggestions include reduction of State subsidies, Privatization and removal

of Quota and TariffsWorld Economy as a Varied-sum Game thatgain by everybody is possible

Liberalist often use the Experience of Post-War East Asia as an Example


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Flaws of Neo-Liberalism

Despite Free Trade and Market openingcould stimulate Economic growth, the

relation is not Straight forwardMost State achieved successful growth opentheir Market GRADUALLY with StateinterventionsThose States who open their Market rapidlywith deregulation have poorest Growth


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Flaws in Neo-Liberalism

Successful cases in East AsiaGovernment in East Asia Countries usually

Open their Market graduallyWhen receiving Foreign investment,Government would step-in and require them tofollow some terms, e.g. Technology transfer These enable Local Enterprises to grow and

prepare for competition in Global Market


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Unsuccessful cases in Latin AmericaLatin American States have fewer regulations onEconomic ActivitiesHowever most Foreign investment are used to set uplow-tech IndustriesR&D Department in Latin American Enterprises oftenclosed down after combined with TransnationalCorporationsIncome from Taxation markly reducedCheap Imports ruined Local Industries


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From the mentioned Example, we shouldreject the notion of Freer is Better

Regulation of market and StateInterventions are needed to strengthenLocal Enterprises, making them competitive

in Global Economy


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International Political Economy showscharacteristics of a Zero-sum game

When the Economy in East Asia developed, thesituation in Sub-Saharan Africa become worseEven within East Asia, most Economic gainsflows into the pocket of the Upper class

In some degree, the Growth in East Asia is in theexpense of Africa and East Asian Lower Classes


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Unfair Trade

The terms of International Trade are also unfair When the LDCs are requested to Open their

Market, the West remain their ProtectionismTariffs and Quotas are imposed on imports from LDCsSubsidizes are given to Western Farms and EnterprisesSome Subsidizes are given in an invisible manner

e.g. Construction and Maintenance of Infrastructuresand Transportations


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Unfair Trade

In World Bank and IMF, Those who pay moremembership fee have more vote, leaving LDCs indisadvantageThe State seeking help from World Bank and IMFhave to Open their Market unilaterallyIn WTO, every state have one vote and often leadto Multilateral change

However, many LDCs have fewer resources in joiningWTO conferences.This reduce the bargaining power of many LDCs


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Unfair Trade

In the Developed World, Most Capital flow occur between the more advanced StateThey are less reliable on other States, and couldoften strengthen their bargaining Power byRegionalism e.g. European unionThe Poor States are more depended on theAdvanced StatesRegionalism in Poor States are less likely to besuccessful


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Unfair Trade

Local Enterprises and Farms in LDCs do have thechannel to reach the Global Market, nor do theyhave market informationAs a result LDCs products are sold cheap, while

being sold in a highly rate in the West1 Pound of Coffee sold $ 0.28 in 2000

It is only 9% of the price of a can of Coffee Powder Only 1% of the money given for your coffee could goto the farmers


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Unfair Trade

Transnational Corporation benefits most when it buy service and raw material in a low priceTNCs threat to withdrawn investment so as toreduce resistanceMany framers have to suffer the low prize, andcope it it by reduce education or health expenses

Some local Factories try to maintain low prize byexploitation of the workers, result in creation of sweat factories


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Unfair Trade

Western Countries occasion use Military action toremove those do not follow the rules-of-the-game

In 1954, an Elected Leftist in Guatemala starting aLand ReformMost of these Land are left Idle for a long time, andsome of them belong to the US United Fruit CompanyIt was known that the American Foreign Policy staff have close link of UFC.Eventually the US started a coup in Guatemala, makingit suffer for 30 years of Military dictatorship


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Unfair Trade

These Example showed that Western Statehave the Military strength to maintain

International Economic Order, and try tomaintain the Capitalist mode of productionLatin American States like Chile have

become the later victims


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World System Theory

Wallerstein describe the Modern World as aunified World Economy System

A World System is a unified Economic body with Division of Labor of it variousThe Current World System originated inModern EuropeIn 19 th Century the whole World wasincorporated into the whole system


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World System Theory

Within a World System, there exist a Core whichexploit the PeripheralAncient World Systems are usually Empires, andthe Core exploit Peripheral by demanding tributesThe Modern World System do not have a Politicalunified Core, despite there are usually aHegemonic Power Exploitation usually by the means of Trade

between different regions


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Core

The Core States dominant the System andthey set the rule-of-game

In General they have Greater MilitaryCapacity and would use their Power touphold their Domination

There are also high-profit Industries withmore advanced Economy


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Periphery

The Peripheral States usually involved inlow-profit and low-tech Industries and

Production of Raw materialThe Ruling Elites are often bribed by theCore States or TNCs, working for theinterest of the CoreThey lack of bargaining Power and have tofollow the rules set by the Core


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Semi-Periphery

The Character of Wallersteins theory isthat there is an intermediate Semi-Periphery

The existence of Semi-Periphery stabilizedthe World Economy System

The Middle layer prevented the polarization of the SystemThe Middle layer reduce the possibility for unified Resistance towards the Core


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Semi-Periphery

The Semi-Periphery have lower labor costwhile compared with the Core

They also have better Infrastructure whilecompared with the PeripherySemi-skilled Industry would likely to take

place in Semi-PeripheryThis relieved the pressure demanding therise of Labor cost in the Core States


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International Competition

States in different Categories are actuallycompeting

Peripheral States compete with each andother, as well as with Semi-periphery, so asto become Semi-Periphery

Semi-Peripheral States compete with Corestates, trying to get into the Core


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International Competition

It is possible for State to change its Category, andit is often

e.g. Spain Change from Core to Semi-periphery in 16 th Century, England rise from Semi-periphery to Core atthe same time

However, the Global Power is a Zero-sum game inthe World System

When some States raised their status, the pricewould be pay by othersAnd it is more difficult to rise status, and drop instatus are relatively more easy


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Ideological Domination

For Weber, Power by bare fist is unstable,and Legitimacy are always needed

For Wallerstein, the Geo-culture providedmeans of Legitimating the World EconomicSystem

Geo-Cultural is the Cultural framework include values and Thought


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Ideological Domination

The main Ideology of Geo-culture:Liberalism: Long-term reinforcement of GlobalCapitalist SystemScientism: Instrumental Manipulation of the MaterialWorld

They aimed to determine Universal benefit andUniversal organizational ruleRacism and Sexism also provide justification onUnequal outcome of the World System


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The Roman World System

At the time when John write the Revelation ,the Roman Empire occupy most of the

known and accessible WorldThere form a World Empire System, withdivision of labor held in a manner of tributeand some degree of trade


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Rome as Naval Hegemony

In Chapter 13 of Revelation , a Sea-bornemonster where no one could fight again was

describedThis the image of the Powerful Roman Navy

It hinted that the Exploitation of the WorldSystem is a result of Force


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Rome as Economic Center

In Chapter 17, a prostitute was described inthe image of the State Goddess of Rome

This prostitute request their customer to payfor a large amount of money

The Periphery are requested to pay tribute toRome, in return for Pax Romana


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Criticism on Rome

The Roman Empire was criticized by theRevelation because:

Roman Empire pound of their force and abused the useThe Roman rule adversely affect the life of the poor and ordinaryThe Roman rule prosecute many Martyrs

Conservative Christian often concentrate on point3. It is not enough, and the point could still beelaborated further


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Criticism on Rome

The Roman Religion is not simply aReligion

It is a Political Ideology: Roma is actually aGod representing Roman EmpireThe criticism of Revelation is not only on

alien religion, but also on a HegemonicIdeology favoring the Establishment of theWorld System


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What to do?

In Chapter 18, John suggest Christians toescape form the City

The meaning would mean that Christiansshould not take part in the crime of theRoman World System

To Witness the real truth which is alien tothe system, Martyring would be theoutcome for those with conscience


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Question for discussion

What is the similarity of the Roman WorldSystem and the Modern one?

What should Christians do in our currentWorld Economy?Would it be possible for a alternative of

New International Economic Order? Howcan Christianity contribute?

world system and revealation

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