Feb. 13, 1998
Lairson and Skidmore
Chapters 3 and 8 In Chapters 3 and 8 of the
Lairson and Skidmore text an emphasis is placed on the
explanation of the evolution of the world economy, as well
as the dependency that has arisen between the northern and
southern states in this economy. With a few exceptions, such
as the discussion on the hegemonic role in the world
economy, we felt that Lairson and Skidmore presented a
thorough explanation for their readers. Important issues
that were discussed in these chapters include a descriptive
background of the actors involved in the development of the
world economy. Also mentioned was the impact of both
political and economic influences in the system. Finally,
the 8th chapter primarily concentrated on comparing and
contrasting two differing theories: dependency and
modernization. Both of these chapters simplify concepts,
such as interdependence in the world economy, that initially
seem extremely complex and provide the reader with a
thorough understanding. Chapter 3 begins with an
explanation of the origin of the world economy as we know it
today. Britain acted as a forerunner in the creation of the
modern world economics. Although it was inevitable that a
world economy would eventually surface with the rapid growth
of industrialization, technology and communications the role
that Britain played was critical. Britain's first steps were
the repeal of the Corn Laws in the 1840's, followed by the
signing of the Cobden-Chevalier Treaty with France.
Repealing the Corn Laws allowed Britain to escape from the
tariffs that had previously bound them, and enabled them to
move toward a system of free trade. This promoted foreign
interaction which would eventually lead to specialization
and increased interdependence. On a smaller scale, this fact
is evident in daily life. A dependency develops naturally in
instances where two people increasingly rely on eachother.
Similarly, the relations between states grow as both begin
to reap the benefits of eachother's resources through trade.
This also presents the possibility of what Lairson and
Skidmore refer to as "structural dynamism," which refers to
the possibility of one actor gaining an advantage over the
other. This concept arises from the high level of
competition that exists between states. For instance,
Britain, as previously mentioned, initiated this world
economy only to eventually lose their hegemonic control in
1914. It must be noted that the effects of both World Wars
advanced the break-up of the existing state of power. Two
political world powers emerged after World War II, based
sheerly on their economic superiority and stability. The
United States and the Soviet Union produced a system of
bipolarity. Chapter 8 elaborates on the
ideas of Chapter 3. Previous discussion was based on the
history and evolution of the world economy, whereas, now
Lairson and Skidmore try and explain the present state of
circumstances. Their main focus is around two theories,
those being modernization and dependency. Modernization, is
a bit of an idealistic explanation of the relationship that
exists between North and South. One must keep in mind that
the theory is one developed from a Northern perspective. It
would like to have the reader believe that it is in the best
interest of the Southern economies to be involved with their
superiors to the north. We tend to side more with the
dependency theory based on its realistic point of view.
Although certain flaws exist, such as its inability to
explain how some Third World countries manage to develop
into strong, industrialized states, it does offer a
convincing argument. The theory reveals the exploitation of
Third World nations by Northern States. Capitalism, which is
the central motivation behind the theory, can be ruthless.
In order for one state to prosper, it must have a suppressed
counterpart. The relationship maintained by the North and
South embodies this ideal. The two chapters by Lairson and
Skidmore introduce some new concepts for us to ponder. They
give us the history of the World Economy and name Britain
responsible for its establishment. Their failure to
hypothesize alternative ways in which the World Economy was
begun inspired us to question whether the process of
evolution would have resulted differently. We feel that
Britain's influence should not be underestimated. They were
viewed as a powerful society, one worthy of forming an
alliance with. It would be interesting to investigate what
effect their regime type, military capacity, and culture
contributed. In addition, Chapter 8 provoked us to ponder
whether alternative theories exist that make up for the
deficiencies of modernization and dependency. To reiterate,
we feel that modernization is too idealistic, and dependency
offers no answer to the questions about Third World success.
This leaves us unfulfilled and searching for a medium
inbetween.