State, business and society in the global south

Question 1

Definition of Global South

Answer 1

“countries concentrated around equator and in the southern hemisphere with relatively low levels of both geopolitical power and development” (Lange, p. 674) à one group, but very diverse countries (populations, cultures, economies and geopolitical power or development)

Question 2

Extractivism

Answer 2

• Extractivism is the idea, that countries can leverage their resource for as an essential part in the development process. Even though, the socio-environmental impact of extractive has been questioned since half a century, the activities within this sector continues to expand.
• Natural recourse extraction is historically linked to European colonialism. Important to look at things historically.
• Many initiative for recourse extraction took of in the 90’s as a part of neoliberalism, and linked to stimuli, packages by international organizations and national governments.
• The resource curse or paradox of plenty: dependency of other countries. Countries with wealth of natural recourses, but they are trapped and do not develop

Question 3

Extractivism and development theory

Answer 3

Enabled by high commodity prices, high resource demand e.g. by the Chinese economy, and a post neo-liberal policy framework (renationalization). Although these factors enabled the imperative, they are not required in order to sustain it.
Starting point in dependency theory, increasing focus on state interventions. Inspired by strands within modernization theory (Rosto). Modernize society by capitalizing on extractive and redistribute and combat poverty invest in health and education. Problematic due to environmental implications. Post developmental influenced critique of the extractive sector, highlighting the destruction of indigenous people, land, and epistemology.

Question 4

CSR - oil companies in Nigeria

Answer 4

Positive affirmative duties: doing good e.g. building schools, infrastructure, employment, health
Negative injunction duties: counteracting negative externalities and preventing them in happening
• Motivation of the companies and what they aim at doing is not aligned with the wish of people. E.g. business building schools while local people focus on spill clean up
• Auguring that no amount of positive affirmative duties can make up for the negative externalities, because the companies in the Nigeria delta region are so profoundly damaging
• Negative injunction is expensive, companies are not forced to do so