Galeano writes that the real profits from coffee went to the bourgeoise and workers in North Americans who distributed and marketed it in the core countries.
I'm struck by how much this continues to resonate today. It reminds me of the Apple Ipad, where something like $300 dollars of profit from each unit sold goes to Apple and other US corporations (that develop, distribute and market the product) while only $10 goes to the Chinese manufacturer Qualcomm (and even less to its workers who have to work in modern-day Orwellian-Dickensian conditions).
Even in an era of transnational production (and the rise of some formerly peripheral countries), core-periphery dynamics continue to define productive relations. The toilsome, low profit and value-added productive activities (which now includes manufacturing) have been relegated to the periphery while the core retains the cush high profit and high value-added activities (R&D, marketing, branding).
China has made some great strides but breaking out will still be a tough and arduous process. Fortunately, it does seem like the Chinese state knows this and that it has a plan (Made in China 2025) to move the activities of its companies and workers into a better position in these global production chains by developing its own brands (Huawei) and leadership in new technologies (5G, AI). However, US elites and capital have gotten wind of this and now are fiercely resisting China's rise (which was perfectly fine with them as long as it was based on low wage manufacturing (which they profit from - see the Apple example) and did not threaten their privileged positions in global value/production chains.
BTW: I am enjoying a cup of coffee as I write this, but doing so guild free as it is Cuban coffee!
Great commentary, Andrej. Yes, the structures of the world-economy are alive and well, creating wealth and poverty simultaneously in the different zones. And yes, the peripheral role now includes low-waged manufacturing, a phenomenon that coincided with the deindustrialization of the economies of the core.
Various countries in the semi-periphery and periphery are trying to break out of the peripheral role. Among them is China, which however is a unique case; it was never colonized nor peripheralized, nor was it one of the modern competing imperialisms. With its enormous size, it has both core-like and peripheral-like characteristics. As you explain very well, China is attempting to break from the peripheral role; and because of its core-like characteristics, it has a greater capacity to do this than other nations.
China thus is provoking the resistance of the U.S. corporate elite, as you note, which is launching a New Cold War against China, just as false in its premises and representations as the old Cold War against the Soviet Union. Part of China’s global strategy is to develop mutually-beneficial commercial relations with nations in all regions of the world, including Latin America. It’s not just rhetoric: the progressive governments of Latin America have affirmed in recent years that trade with China is fundamentally different from commerce with the United States and the European imperialist powers; they have proclaimed that China treats Latin America with respect.
In my view, not only are the Chinese ascending, but also, through their ascent, they are changing the norms of the world-system, and pointing the direction toward an alternative, more politically stable world-system characterized by cooperation and mutually-beneficial trade among nations.
I hope you enjoyed the Cuban coffee. I also drink Cuban coffee as I write.
Great stuff Charles!
Galeano writes that the real profits from coffee went to the bourgeoise and workers in North Americans who distributed and marketed it in the core countries.
I'm struck by how much this continues to resonate today. It reminds me of the Apple Ipad, where something like $300 dollars of profit from each unit sold goes to Apple and other US corporations (that develop, distribute and market the product) while only $10 goes to the Chinese manufacturer Qualcomm (and even less to its workers who have to work in modern-day Orwellian-Dickensian conditions).
Even in an era of transnational production (and the rise of some formerly peripheral countries), core-periphery dynamics continue to define productive relations. The toilsome, low profit and value-added productive activities (which now includes manufacturing) have been relegated to the periphery while the core retains the cush high profit and high value-added activities (R&D, marketing, branding).
China has made some great strides but breaking out will still be a tough and arduous process. Fortunately, it does seem like the Chinese state knows this and that it has a plan (Made in China 2025) to move the activities of its companies and workers into a better position in these global production chains by developing its own brands (Huawei) and leadership in new technologies (5G, AI). However, US elites and capital have gotten wind of this and now are fiercely resisting China's rise (which was perfectly fine with them as long as it was based on low wage manufacturing (which they profit from - see the Apple example) and did not threaten their privileged positions in global value/production chains.
BTW: I am enjoying a cup of coffee as I write this, but doing so guild free as it is Cuban coffee!
Great commentary, Andrej. Yes, the structures of the world-economy are alive and well, creating wealth and poverty simultaneously in the different zones. And yes, the peripheral role now includes low-waged manufacturing, a phenomenon that coincided with the deindustrialization of the economies of the core.
Various countries in the semi-periphery and periphery are trying to break out of the peripheral role. Among them is China, which however is a unique case; it was never colonized nor peripheralized, nor was it one of the modern competing imperialisms. With its enormous size, it has both core-like and peripheral-like characteristics. As you explain very well, China is attempting to break from the peripheral role; and because of its core-like characteristics, it has a greater capacity to do this than other nations.
China thus is provoking the resistance of the U.S. corporate elite, as you note, which is launching a New Cold War against China, just as false in its premises and representations as the old Cold War against the Soviet Union. Part of China’s global strategy is to develop mutually-beneficial commercial relations with nations in all regions of the world, including Latin America. It’s not just rhetoric: the progressive governments of Latin America have affirmed in recent years that trade with China is fundamentally different from commerce with the United States and the European imperialist powers; they have proclaimed that China treats Latin America with respect.
In my view, not only are the Chinese ascending, but also, through their ascent, they are changing the norms of the world-system, and pointing the direction toward an alternative, more politically stable world-system characterized by cooperation and mutually-beneficial trade among nations.
I hope you enjoyed the Cuban coffee. I also drink Cuban coffee as I write.
Charles