by laura t. raynolds presented by jessica hendrix
Post on 19-Dec-2015
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TRANSCRIPT
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By Laura T. RaynoldsPresented by Jessica Hendrix
Restructuring the Third World Agro-Exports:
Changing Production Relations in the Dominican Republic
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The importance of 3rd world governments’ involvement in restructuring the local economy to accommodate the changing world economic and political conditions
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1970sThe active breakdown of traditional colonial
based export systemCaused by politics and the strong backing of
international institutions
Expansion of Nontraditional Agriculture
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The new division of labor in the 3rd world agriculture export sectors were transformed, not eliminated
Improved transportation, preservation and communication systems
Made geographic separation of production and markets possible
Other reasonsDebt crisisTNCsState governments
Sanderson
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Traditionally very colonialProduced low value, undifferentiated,
agriculture exportsSugar, coffee, cocoa, tobacco1980s severe decrease in these exports
Dominican Republic
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Decreased world demandHealth concernsCorn substitute
Increased 1st World protection policies to protect domestic
producersDecreased world sugar prices
Excess production Increased world competition
Unlikely could ever resume production in the DR
Sugar Decrease
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All agriculture exports except coffee, tobacco, cocoa, and sugar
All agro-industrial commoditiesDomestic or foreign marketsIncludes bananas, oranges, and yucca
DR Nontraditional Agriculture
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International debt crisisIncreased protectionismIncreased influence of TNCs, bilateral donors,
and major trading partners over policiesDecreased US sugar quotas
Global and Domestic Forces in the DR
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Caribbean Basin InitiativeDebt strategiesExport Promotion LawAgro-Industrial Law
Policies and Initiatives
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In the DR from 1979-1986 export earnings of nontraditional agriculture exports increased from
$58 million to $103 million.
Success
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Stagnated growth after 1986Fresh agriculture export decreased from $45
million to $34 million State unable to guarantee conditions for
accumulation in the sectorEconomic chaosStop paying incentives
Failure
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Out-growers systemOriental vegetables Showed that small growers do not understand
and are unable to meet international restrictions
Often concerned with short term profits, not sustainability
Agriculture Export Commodities Systems
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Plantation System Workers hired to
work on company managed farms
In the DR companies use state land
PineapplesCorporations able to
have diverse locations so they can move easily
Force countries to negotiate for lowest price
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The instability of the firms leads to instability in the sector
The importance of the state should not be overlooked
3rd world states are responsible for securing a place in the international marketMust have the social and economic conditions
to do so
Conclusion