DUSP Courses 1998

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11.951 The Geography of Globalization

MIT 11.951

Fall 1998

Amy K. Glasmeier Karen R. Polenske

THE GEOGRAPHY OF GLOBALIZATION: REGIONAL DEVELOPMENT, ASSET REVALUATION, AND COMMUNITY SUSTAINABILITY

Department of Urban Studies and Planning

Massachusetts Institute of Technology

Wednesday: 2:30-5:30 p.m.

First class: Wednesday, September 9, 1998

Room: Building 1-136

Credits: 3-0-9 (H level)

The purpose of this seminar is to examine in depth the processes of globalization and how communities develop coping mechanisms and gain benefits from the processes of globalization.

Background to Seminar

Economic globalization presents profound challenges to the fundamental fabric of the world's communities for the 21st century. The most recent example of globalization's effects can be seen in the collapse of southeast Asian economies, which sent shock waves around the globe. Although most press attention has focused on the opinions and reactions of bank officials and international trade experts, in communities throughout the world, fear of the immediate and longer-term effects of globalization are evident.

Domestically, U.S. Commerce Secretary Daly suggested that Americans would benefit from lower-priced Asian imports; however, textile workers in the U.S. South felt the continuing sting of low-cost imports that are jeopardizing their jobs. In Brazil, communities anxiously awaiting investments by Ford and General Motors as part of their corporate internationalization efforts suddenly found themselves denied long sought-after jobs, as U.S. firms scuttled plans to expand further for fear of overcapacity. Workers in Southeast Asia, where the crisis began, now are faced with the prospect of escalating prices, scarce capital, rising import prices including food and energy supplies, and accelerating unemployment. Adding insult to injury, the rapid growth in the region over the last thirty years has precipitated environmental disasters such as the fires in Indonesia that impede grassroots and citizens' responses to lost relative economic security.

The political and governmental responses to the internationalization of the economy and the accompanying economic volatility are many and varied. The International Monetary Fund is imposing sanctions that will force fundamental changes in the operation of Asian economies, which many believe will cause widespread hardship in the poorest and most vulnerable groups of these countries. On the other side of the globe, the pending completion of the dissolution of European trade barriers and the formation of a single currency in the European Union bring into stark relief the effects of globalization and its potential impacts on communities. Retraction, contraction, and reorganization of the welfare state in many European countries is bringing about radical changes in the locus of political and social power and responsibility. The effect of globalization in all parts of the world raises very pragmatic issues related to political and economic access, resource utilization, institutional transitions, environmental justice, and quality of life.

Somewhat belatedly, there is a growing interest and rising activism on the part of U.S. academicians and practitioners around issues of globalization. Facilitated and, in some sense, motivated by the formation of regional trading blocks, which are explicitly putting high-wage and low-wage countries, regions, and their communities in confrontation with one another, planners are engaging in and are focusing on the formulation of theoretical understandings of the relationship between globalization and local economic outcomes and the practical means to solve the issues raised. Often, globalization is treated as a monolithic process sweeping over the world and affecting all who fall within its path; however, communities are both confronting and cooperating with the state and, in some instances, firms to contend effectively with the processes driving the global economy. Recognizing the potential for highly varied and complex outcomes, planners are increasingly investigating the links between the global and the local, building upon deeper and more sophisticated theoretical and empirical understandings of the global economy, including both the process and the institutions that underlie the transitions underway.

How can communities develop coping mechanisms and gain benefits from the processes of globalization? Conventional economic and development practice typically revolve around identifying the weaknesses in the economic and social systems of communities and then prescribing ameliorative actions to make up those perceived deficiencies. These proposed "solutions" usually are in the form of some type of state (or firm) intervention that imposes cost reductions for greater economic efficiency. On the one hand, in the more advanced countries, regions, and cities, such actions have contributed to the generation of jobs and, in many cases, have contributed to improvements in the living experiences of community residents. On the other hand, for many regions, and especially communities that remain outside the mainstream of economic development, such measures have had surprisingly little effect, even after long periods of government intervention.

In reaction to long-standing uneven development, a new perspective, falling broadly within the confines of research and practice focused on poverty alleviation and grassroots development, is emerging as a planning framework. It emphasizes community assets in all their multifold dimensions. The premise is that more vulnerable communities are separated from those more capable of, and resilient to, changing global economic conditions by their access to monetary assets. In addition, many analysts and planners also recognize the importance of social capital and other less tangible assets as bases for development.

Seminar Focus

One particular interest of this seminar is to show that the theory of asset-based development can be employed systematically to understand and inform larger scholarly debates about processes of globalization and the institutional transitions affecting markets, property relations, and formal and informal codes of behavior. To do this, we propose exploring a number of interrelated questions. For example, what are the linkages between communities' market and non-market assets and economic resiliency? Are differences in a community's physical and social capital linked to successful mainstream economic practices? Do communities have untapped resources that can be mobilized to meet the challenges of contemporary development? Do changes in property relations assist or restrict the transitions that are occurring? How are these property relations, such as ownership rights, development rights, and transfer rights delineated, assigned, administered, and enforced? How do conventional measures of progress thwart the use of more meaningful locally and individually based metrics of economic health? Can a community's natural environment be considered an asset, and can it be both utilized and sustained to secure community well-being? Are there ways for communities to understand and utilize modern economic trends and processes, such as flexible specialization, local and global supply chains, and networking and continuous innovation, as a means of participating in the global economy? Or, is the trajectory of contemporary capitalism inexorably tied to the achievement of larger-scale and greater economic integration leaving little residual influence that can be brought to bear in the everyday lives of local citizens?

In this seminar, we will explore these and related questions to see how processes of globalization are unfolding and affecting communities. We will consider alternative approaches to economic development and planning that take into account concepts such as tangible and intangible assets. A combination of guest lectures and directed readings will cover a substantial body of literature on contemporary issues of regional economic development, and through readings, lectures, and discussions, we will engage in major debates about future community development in an era of globalization.

Seminar Format

The three-hour seminar meets once a week (with up to four extra sessions at the end of the term for student presentations of their term papers). Numerous sessions will include presentations by guest speakers. The speakers will present during the first 90 minutes, and the professors (and students) will present a discussion of the issues in light of assigned readings in the second 90 minutes. Four sessions will be reserved for presentations by students on topics covered by the readings. At each of these, several students will present together; all students will be required to submit a one-page summary of a set of readings assigned for that week.

Seminar Requirements

1. Attendance at each seminar, with active participation and well-formulated oral presentation of written materials assigned for the seminar.

2. One-page summary of each of the guest speaker presentations (due two days after presentation). A handout will be provided presenting details of what is expected.

3. One- to two-page memos about the content relevance to planning of selected readings from each of the other four seminar sessions.

4. A term paper (20-page, double-spaced, typed) on a subject related to the seminar. A list of possible topics will be provided. Topics will be designed to allow students to pursue research leads in other courses or to develop thesis and other research proposals.

Timing of Submissions

Week 3. Topic to be selected, abstract written and submitted for written comments from professors. Students are required to speak with professors about abstract and paper topic prior to week 3.

Week 6. Detailed outline of paper to be presented.

Week 9. Complete paper draft (including rough bibliography) to be submitted.

Week 11. Final paper for the seminar to be submitted.

Seminar Texts

On the first day of class, a list of the readings will be provided to the students.

Manuel Castells. 1996. The Rise of the Network society. Cambridge, MA: Blackwell Publishers.

Peter Dicken. 1998. Global Shift: Transforming the World Economy. 3rd ed. New York: Guilford Press.

William Greider. 1997. One World, Ready or Not: The Manic Logic of Global

Capitalism. New York: Simon & Schuster, c1997.

Rodrik, Dani. 1997. Has Globalization Gone Too Far? Washington, DC: Institute of International Economics, 1997.

Supplementary Recommended Texts

For those wishing to review contemporary and alternative geographic perspectives on globalization and development, we recommend:

Philip Porter and Eric Sheppard. 1998. A World of Difference: Society, Nature,

Development. New York: Guilford Press.

Samir Amin. 1997. Capitalism in the Age of Globalization. London: ZED Books.

SEMINAR SESSIONS

September 9-16. Overview: the Geographic Reality of Globalization

In this section of the seminar, we will examine what happens when planners ignore economic and social sustainability as they implement localization processes. We also will explore alternative ways to measure development.

September 9. Introduction to the Seminar

Seminar Leaders: Professors Amy K. Glasmeier and Karen R. Polenske

What are the institutional and organizational opportunities and constraints facing communities in choosing their own future?

September 16. Globalization, Equity and Sustainability: An Introduction to the Issues.

Seminar Leaders: Amy K. Glasmeier and Karen R. Polenske.

In this section of the seminar, we focus on the creation of a global system of environmental regulation, identifying prospects and conflicts. Environmental degradation associated with internationalization of production presents serious challenges for communities in the early stages of development. What types of conflicts arise over the use of natural resources such as water, air, and land? What options do communities and locally-based organizations have in negotiations around the environment? How can communities and national and international organizations approach the problem and process of development to alleviate the potential of conflict between jobs and the environment?

September 23.

Guest Speaker: David Angel, Professor of Geography, Clark University

Possible Topics: Green industries, environmental policy, global communities, and international cooperation: Are major economic actors, such as corporations, seriously considering the environment in their development plans? How can communities identify and work with progressive firms? At what level of negotiations can and should communities participate when considering the relationship among the economy, equity, and the environment?

September 30

Guest Speaker: Diana Liverman, Director, Center for Latin American Studies and Associate Professor of Geography

Possible Topics: Mexican-U.S. border relations: environmental constraints and sustainable, humane development. Formulating transnational environmental policies that preserve equity, economic well-being and sustainable development trajectories.

October 7

Guest Speaker: Michael Conroy, Director, Sustainable and Natural Resource Development Program, Ford Foundation

Possible Topics: Community Sustainability and Asset Revaluation: What are the institutional and organizational opportunities and constraints facing communities in choosing their own future?

Globalization and the Creation, Governance, and Maintenance of Sustainable Communities. In this section of the seminar, we discuss at what level of political action should discussions of equity and sustainability be raised? How can community concerns about equity and fairness become part of the development dialogue, and who must be the champion of these concerns? What powers of negotiation/leverage do communities have or lack when considering these issues? Can communities form alliances to ensure themselves a place at the negotiating table? How can communities avoid conflict among themselves as they seek to achieve equitable economic development? How can the age-old conflict of jobs versus the environment be avoided in an era of heightened economic geographic mobility?

October 14

Guest Speaker: To be arranged.

Possible Topics. Creating sustainable forest communities: cases from one or more emerging countries, such as Indonesia, India, and Brazil.

October 21

Guest Speaker: Mario Pezzini, Director of Rural and Regional Development

Programs, OECD, Paris

Possible Topics: Globalization and rural development: The new structure and locus of development authority in the public sector in an era of globalization. To what degree are environmental imperatives and equity considerations being taken seriously, and to what extent are community concerns being taken into account?

October 28

Guest Speaker: To be arranged.

Possible Topics: Asset generation at the urban and community level: A view from the market.

November 4

Seminar Leaders: Amy K. Glasmeier and Karen R. Polenske

Possible Topics: Taking Stock

Effects of Technology Advances, Networks, and Global Supply Chains on Laborers and Communities

In this last section of the seminar, we will explore how the supplier, customer, labor, and other linkages are created and maintained among firms (and communities), examining how supply chains and other forms of networks help or hinder sustainability of communities. How can communities create effective places in the realm of business networks and supply chains? How can communities and firms establish and control supply chains? What is the role of organized labor in an era of economic globalization? How can labor become a more effective participant in deliberations about contemporary development? What are the institutional innovations needed to ensure labor a place in the negotiations about achievement of community sustainability? What type of collaborations are needed for communities, businesses, and labor to successfully participate in economies based around networks and supply chains?

November 13.

Guest Speaker: Mary Ellen Kelley, Director of Research, National Institute of Standards and Technology, Washington, DC

Possible Topics: The spatial pattern of technology diffusion.

November 18

Guest Speaker: Bjorn Asheim, Norwegian Science and Technology Program, Oslo, Norway.

Possible Topics: Formulation of new labor regimes in an era of networks and globalization. European Union program on community and labor.

December 2

Seminar Leaders: Amy K. Glasmeier and Karen R. Polenske

Possible Topics: Taking Stock. Future new forms of organizations and institutions.

December 9

Guest Speaker: To be arranged.

Possible Topics: When are collective agreements enforceable or unenforceable? Examples from China.

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This syllabus may have been updated. To ensure that you're looking at the most recent version, please hit "Reload."
11.951 The Geography of Globalization
MIT 11.951 Fall 1998 Amy K. Glasmeier Karen R. Polenske THE GEOGRAPHY OF GLOBALIZATION: REGIONAL DEVELOPMENT, ASSET REVALUATION, AND COMMUNITY SUSTAINABILITY Department of Urban Studies and Planning Massachusetts Institute of Technology Wednesday: 2:30-5:30 p.m. First class: Wednesday, September 9, 1998 Room: Building 1-136 Credits: 3-0-9 (H level) The purpose of this seminar is to examine in depth the processes of globalization and how communities develop coping mechanisms and gain benefits from the processes of globalization. Background to Seminar Economic globalization presents profound challenges to the fundamental fabric of the world's communities for the 21st century. The most recent example of globalization's effects can be seen in the collapse of southeast Asian economies, which sent shock waves around the globe. Although most press attention has focused on the opinions and reactions of bank officials and international trade experts, in communities throughout the world, fear of the immediate and longer-term effects of globalization are evident. Domestically, U.S. Commerce Secretary Daly suggested that Americans would benefit from lower-priced Asian imports; however, textile workers in the U.S. South felt the continuing sting of low-cost imports that are jeopardizing their jobs. In Brazil, communities anxiously awaiting investments by Ford and General Motors as part of their corporate internationalization efforts suddenly found themselves denied long sought-after jobs, as U.S. firms scuttled plans to expand further for fear of overcapacity. Workers in Southeast Asia, where the crisis began, now are faced with the prospect of escalating prices, scarce capital, rising import prices including food and energy supplies, and accelerating unemployment. Adding insult to injury, the rapid growth in the region over the last thirty years has precipitated environmental disasters such as the fires in Indonesia that impede grassroots and citizens' responses to lost relative economic security. The political and governmental responses to the internationalization of the economy and the accompanying economic volatility are many and varied. The International Monetary Fund is imposing sanctions that will force fundamental changes in the operation of Asian economies, which many believe will cause widespread hardship in the poorest and most vulnerable groups of these countries. On the other side of the globe, the pending completion of the dissolution of European trade barriers and the formation of a single currency in the European Union bring into stark relief the effects of globalization and its potential impacts on communities. Retraction, contraction, and reorganization of the welfare state in many European countries is bringing about radical changes in the locus of political and social power and responsibility. The effect of globalization in all parts of the world raises very pragmatic issues related to political and economic access, resource utilization, institutional transitions, environmental justice, and quality of life. Somewhat belatedly, there is a growing interest and rising activism on the part of U.S. academicians and practitioners around issues of globalization. Facilitated and, in some sense, motivated by the formation of regional trading blocks, which are explicitly putting high-wage and low-wage countries, regions, and their communities in confrontation with one another, planners are engaging in and are focusing on the formulation of theoretical understandings of the relationship between globalization and local economic outcomes and the practical means to solve the issues raised. Often, globalization is treated as a monolithic process sweeping over the world and affecting all who fall within its path; however, communities are both confronting and cooperating with the state and, in some instances, firms to contend effectively with the processes driving the global economy. Recognizing the potential for highly varied and complex outcomes, planners are increasingly investigating the links between the global and the local, building upon deeper and more sophisticated theoretical and empirical understandings of the global economy, including both the process and the institutions that underlie the transitions underway. How can communities develop coping mechanisms and gain benefits from the processes of globalization? Conventional economic and development practice typically revolve around identifying the weaknesses in the economic and social systems of communities and then prescribing ameliorative actions to make up those perceived deficiencies. These proposed "solutions" usually are in the form of some type of state (or firm) intervention that imposes cost reductions for greater economic efficiency. On the one hand, in the more advanced countries, regions, and cities, such actions have contributed to the generation of jobs and, in many cases, have contributed to improvements in the living experiences of community residents. On the other hand, for many regions, and especially communities that remain outside the mainstream of economic development, such measures have had surprisingly little effect, even after long periods of government intervention. In reaction to long-standing uneven development, a new perspective, falling broadly within the confines of research and practice focused on poverty alleviation and grassroots development, is emerging as a planning framework. It emphasizes community assets in all their multifold dimensions. The premise is that more vulnerable communities are separated from those more capable of, and resilient to, changing global economic conditions by their access to monetary assets. In addition, many analysts and planners also recognize the importance of social capital and other less tangible assets as bases for development. Seminar Focus One particular interest of this seminar is to show that the theory of asset-based development can be employed systematically to understand and inform larger scholarly debates about processes of globalization and the institutional transitions affecting markets, property relations, and formal and informal codes of behavior. To do this, we propose exploring a number of interrelated questions. For example, what are the linkages between communities' market and non-market assets and economic resiliency? Are differences in a community's physical and social capital linked to successful mainstream economic practices? Do communities have untapped resources that can be mobilized to meet the challenges of contemporary development? Do changes in property relations assist or restrict the transitions that are occurring? How are these property relations, such as ownership rights, development rights, and transfer rights delineated, assigned, administered, and enforced? How do conventional measures of progress thwart the use of more meaningful locally and individually based metrics of economic health? Can a community's natural environment be considered an asset, and can it be both utilized and sustained to secure community well-being? Are there ways for communities to understand and utilize modern economic trends and processes, such as flexible specialization, local and global supply chains, and networking and continuous innovation, as a means of participating in the global economy? Or, is the trajectory of contemporary capitalism inexorably tied to the achievement of larger-scale and greater economic integration leaving little residual influence that can be brought to bear in the everyday lives of local citizens? In this seminar, we will explore these and related questions to see how processes of globalization are unfolding and affecting communities. We will consider alternative approaches to economic development and planning that take into account concepts such as tangible and intangible assets. A combination of guest lectures and directed readings will cover a substantial body of literature on contemporary issues of regional economic development, and through readings, lectures, and discussions, we will engage in major debates about future community development in an era of globalization. Seminar Format The three-hour seminar meets once a week (with up to four extra sessions at the end of the term for student presentations of their term papers). Numerous sessions will include presentations by guest speakers. The speakers will present during the first 90 minutes, and the professors (and students) will present a discussion of the issues in light of assigned readings in the second 90 minutes. Four sessions will be reserved for presentations by students on topics covered by the readings. At each of these, several students will present together; all students will be required to submit a one-page summary of a set of readings assigned for that week. Seminar Requirements 1. Attendance at each seminar, with active participation and well-formulated oral presentation of written materials assigned for the seminar. 2. One-page summary of each of the guest speaker presentations (due two days after presentation). A handout will be provided presenting details of what is expected. 3. One- to two-page memos about the content relevance to planning of selected readings from each of the other four seminar sessions. 4. A term paper (20-page, double-spaced, typed) on a subject related to the seminar. A list of possible topics will be provided. Topics will be designed to allow students to pursue research leads in other courses or to develop thesis and other research proposals. Timing of Submissions Week 3. Topic to be selected, abstract written and submitted for written comments from professors. Students are required to speak with professors about abstract and paper topic prior to week 3. Week 6. Detailed outline of paper to be presented. Week 9. Complete paper draft (including rough bibliography) to be submitted. Week 11. Final paper for the seminar to be submitted. Seminar Texts On the first day of class, a list of the readings will be provided to the students. Manuel Castells. 1996. The Rise of the Network society. Cambridge, MA: Blackwell Publishers. Peter Dicken. 1998. Global Shift: Transforming the World Economy. 3rd ed. New York: Guilford Press. William Greider. 1997. One World, Ready or Not: The Manic Logic of Global Capitalism. New York: Simon & Schuster, c1997. Rodrik, Dani. 1997. Has Globalization Gone Too Far? Washington, DC: Institute of International Economics, 1997. Supplementary Recommended Texts For those wishing to review contemporary and alternative geographic perspectives on globalization and development, we recommend: Philip Porter and Eric Sheppard. 1998. A World of Difference: Society, Nature, Development. New York: Guilford Press. Samir Amin. 1997. Capitalism in the Age of Globalization. London: ZED Books. SEMINAR SESSIONS September 9-16. Overview: the Geographic Reality of Globalization In this section of the seminar, we will examine what happens when planners ignore economic and social sustainability as they implement localization processes. We also will explore alternative ways to measure development. September 9. Introduction to the Seminar Seminar Leaders: Professors Amy K. Glasmeier and Karen R. Polenske What are the institutional and organizational opportunities and constraints facing communities in choosing their own future? September 16. Globalization, Equity and Sustainability: An Introduction to the Issues. Seminar Leaders: Amy K. Glasmeier and Karen R. Polenske. In this section of the seminar, we focus on the creation of a global system of environmental regulation, identifying prospects and conflicts. Environmental degradation associated with internationalization of production presents serious challenges for communities in the early stages of development. What types of conflicts arise over the use of natural resources such as water, air, and land? What options do communities and locally-based organizations have in negotiations around the environment? How can communities and national and international organizations approach the problem and process of development to alleviate the potential of conflict between jobs and the environment? September 23. Guest Speaker: David Angel, Professor of Geography, Clark University Possible Topics: Green industries, environmental policy, global communities, and international cooperation: Are major economic actors, such as corporations, seriously considering the environment in their development plans? How can communities identify and work with progressive firms? At what level of negotiations can and should communities participate when considering the relationship among the economy, equity, and the environment? September 30 Guest Speaker: Diana Liverman, Director, Center for Latin American Studies and Associate Professor of Geography Possible Topics: Mexican-U.S. border relations: environmental constraints and sustainable, humane development. Formulating transnational environmental policies that preserve equity, economic well-being and sustainable development trajectories. October 7 Guest Speaker: Michael Conroy, Director, Sustainable and Natural Resource Development Program, Ford Foundation Possible Topics: Community Sustainability and Asset Revaluation: What are the institutional and organizational opportunities and constraints facing communities in choosing their own future? Globalization and the Creation, Governance, and Maintenance of Sustainable Communities. In this section of the seminar, we discuss at what level of political action should discussions of equity and sustainability be raised? How can community concerns about equity and fairness become part of the development dialogue, and who must be the champion of these concerns? What powers of negotiation/leverage do communities have or lack when considering these issues? Can communities form alliances to ensure themselves a place at the negotiating table? How can communities avoid conflict among themselves as they seek to achieve equitable economic development? How can the age-old conflict of jobs versus the environment be avoided in an era of heightened economic geographic mobility? October 14 Guest Speaker: To be arranged. Possible Topics. Creating sustainable forest communities: cases from one or more emerging countries, such as Indonesia, India, and Brazil. October 21 Guest Speaker: Mario Pezzini, Director of Rural and Regional Development Programs, OECD, Paris Possible Topics: Globalization and rural development: The new structure and locus of development authority in the public sector in an era of globalization. To what degree are environmental imperatives and equity considerations being taken seriously, and to what extent are community concerns being taken into account? October 28 Guest Speaker: To be arranged. Possible Topics: Asset generation at the urban and community level: A view from the market. November 4 Seminar Leaders: Amy K. Glasmeier and Karen R. Polenske Possible Topics: Taking Stock Effects of Technology Advances, Networks, and Global Supply Chains on Laborers and Communities In this last section of the seminar, we will explore how the supplier, customer, labor, and other linkages are created and maintained among firms (and communities), examining how supply chains and other forms of networks help or hinder sustainability of communities. How can communities create effective places in the realm of business networks and supply chains? How can communities and firms establish and control supply chains? What is the role of organized labor in an era of economic globalization? How can labor become a more effective participant in deliberations about contemporary development? What are the institutional innovations needed to ensure labor a place in the negotiations about achievement of community sustainability? What type of collaborations are needed for communities, businesses, and labor to successfully participate in economies based around networks and supply chains? November 13. Guest Speaker: Mary Ellen Kelley, Director of Research, National Institute of Standards and Technology, Washington, DC Possible Topics: The spatial pattern of technology diffusion. November 18 Guest Speaker: Bjorn Asheim, Norwegian Science and Technology Program, Oslo, Norway. Possible Topics: Formulation of new labor regimes in an era of networks and globalization. European Union program on community and labor. December 2 Seminar Leaders: Amy K. Glasmeier and Karen R. Polenske Possible Topics: Taking Stock. Future new forms of organizations and institutions. December 9 Guest Speaker: To be arranged. Possible Topics: When are collective agreements enforceable or unenforceable? Examples from China.