ZHGK Lecture Dr Nadine Reis ||| Financialization, extractivism and new dependency in Mexico and Brazil
Dienstag, 24. Oktober 2017, 16:00 Uhr bis 17:00 Uhr
This lecture tracks the structural transformation of the economies of Mexico and Brazil since the 1970s. Mexicos economic development model has focused mainly on export-led industrialization, Brazils on agro-extractivism. I argue that both the hegemony and the failure of these models are outcomes of peripheral financialization. Peripheral financialization is characterized by accumulation through wealth extraction, which is facilitated by the adaption of monetary policy to the needs of transnational finance capital and a shift in internal public debt away from the central bank to bonds issued on international financial markets. This causes a structurally increasing outflow of money from the national economies, increasing debt, and growing pressure in the balance of payments to obtain foreign exchange through more extractivism. In Mexico, extractivism is tied to the extraction of cheap labour, in Brazil its primary manifestation is natural resources extraction. The outcome of peripheral financialization is inherently contradictory, since the realization of value cannot keep pace with the extraction of (human/natural) wealth through finance capital. Finally, I discuss to which extent the findings imply a renewed relevance of theories of dependency and unequal development on a world scale.
Raum: Y 25 H 79
Geographisches Institut, UZH
Geography, Economic Geography (WGG)
Geography, Political Geography (PGG)