#StructuralInequality

[renatoferreiradasilva]

The False Promise of Comparative Advantage: Unveiling the Flaws of Ricardo’s Theory in the Global South

The theory of comparative advantage, proposed by David Ricardo in the 19th century, has established itself as one of the cornerstones of classical economics. Its elegant logic suggested that free trade, driven by specialization in areas of comparative advantage, would lead to mutual prosperity among nations. However, the reality of growing disparities between the Global North and South exposes the failures of this theory in predicting the profound inequalities that would unfold. This essay unveils the reasons behind this failure, shedding light on the contextual factors that Ricardo’s theory failed to capture.

Disregard for Power Asymmetries

The theory of comparative advantage operates in an idealized scenario of equitable trade relations. However, the reality of international trade is permeated by significant power asymmetries between developed and developing countries. Nations in the Global North, with greater capital, technology, and political influence, often dominate markets, imposing unfavorable terms of trade on countries in the South.

Ignorance of Trade Barriers

Ricardo’s theory assumes the free circulation of goods and services between nations. In practice, countries in the Global South face a series of trade barriers, such as tariffs, quotas, and agricultural subsidies imposed by developed countries. These barriers restrict the access of Southern countries to international markets, limiting their opportunities to benefit from trade.

Underestimation of Multinational Exploitation

The theory of comparative advantage fails to consider the role of multinational corporations in perpetuating inequalities. Multinationals often exploit the natural resources and cheap labor of countries in the South, repatriating substantial profits while contributing minimally to local development. This dynamic exacerbates the disparities between nations.

Disregard for Structural Inequalities

Ricardo’s theory does not account for the deep-rooted structural inequalities that characterize many countries in the Global South. Factors such as historical colonization, limited access to education and healthcare, and poor infrastructure prevent these countries from competing on an equal footing in the international market.

Denial of Commodity Dependence

The theory of comparative advantage encourages specialization in areas of higher productivity. However, many countries in the Global South find themselves trapped in a cycle of dependence on the export of commodities, whose prices fluctuate in the international market, rendering them vulnerable to external shocks and perpetuating poverty.

Conclusion

The theory of comparative advantage, while contributing to the understanding of international trade, fails to explain the complex dynamics that have generated the growing inequalities between the Global North and South. By ignoring power asymmetries, trade barriers, multinational exploitation, structural inequalities, and commodity dependence, Ricardo’s theory presents a simplistic and inadequate vision of the realities of international trade.

To overcome global disparities, it is necessary to go beyond the simplistic logic of comparative advantage and consider policies that promote fair trade, economic diversification, institutional development, poverty reduction, and income redistribution. Only through a comprehensive and contextualized approach can we achieve a more equitable and prosperous future for all.

elaborado com inteligência artificial por um humano nativo do Sul Global

[ramyeonupdates]

{ #psychologydirectory } || source: _drsoph

[michaelgarfield]

This week on #FutureFossils @FutureFossilsPodcast we talk to Leidy Klotz about his book, #Subtract: The Untapped Science of #Less. Listen anywhere you go for podcasts! We discuss the human #cognitivebias to try and solve a problem by adding new elements rather than by subtracting pieces from the problem; how deeply-rooted and pernicious this is in both our #evolution and our #economics, and how it has contributed to the complex and compounding crises in which we find ourselves today; the implications of subtraction thinking for #civilengineering, #governance and #collectivebehavior; how to communicate a subtraction #strategy as a net positive without setting off people’s loss aversion alarms; whether it’s possible to “subtract” #systemicracism and other #structuralinequality; and in what ways the evolution of the #technosphere will make for future humans both more and less than we are… Leidy Klotz is an Associate Professor at the University of Virginia in the Schools of #Engineering, #Architecture, and #Business. His wide-ranging, prolific, and highly-awarded research is filling in unexplored overlaps between design and behavioral science. Nationally recognized as one of 40-under-40 professors who inspire, Leidy has taught thousands of students, including 21 Ph.D. advisees, whose designing and teaching shapes the world. He founded and directs the Convergent #BehavioralScience Initiative, which brings together #scholars, funders, media, and #practitioners to advance behavioral science for #design. (at Santa Fe, New Mexico) https://www.instagram.com/p/CQzbFSgMCYk/?utm_medium=tumblr

[itsonlyhype]

[thatswhyilovejoanrivers]

Best thing I've read on Miley, Race, Gender, & Power

Cyrus acts out her faux bisexual performance for the white male gaze against a backdrop of dark, fat black female bodies and not slightly more normative cafe au lait slim bodies because the juxtaposition of her sexuality with theirs is meant to highlight Cyrus, not challenge her supremacy. Consider it the racialized pop culture version of a bride insisting that all of her bridesmaids be hideously clothed as to enhance the bride’s supremacy on her wedding day.

Read the rest by tressiemc here

[thatswhyilovejoanrivers]

On the Gender of Literature

And why it matters, by Maureen Johnson

[thatswhyilovejoanrivers]

Millions More Poor in the US...

than we even estimate

[thatswhyilovejoanrivers]

A Sequester for the Poor

"Americans are fond of saying that they want to slash government spending in the abstract, but loath to point to specific programs that they actually want to cut. With sequestration, this ambivalence has come home to roost."

  read the rest here

[thatswhyilovejoanrivers]

Wikipedia removing women from their American Novelist page

I believe this is what you’d call symbolic annihilation

[thatswhyilovejoanrivers]

Queen Liz to support Equal Rights

God save 'er