Fraying Latin Essay

The concept of a New International Division of Labor has a significant role in the changes stated in the 'Fraying Latin' article. In the past few years, globalization has played a major role in economic activity throughout the world. The core regions are being decentralized to peripheral and semi-peripheral countries. A lot of this has to do with wages and keeping production costs as low as possible. Many countries are unable to keep up with global trade due in part to a slow-down in overall production. El Salvador's garment industry crumbled mainly because it wouldn't compete with China's lower wages. The United States and other core economies changed their trade and agreed to work with the cheaper wages.

Since the developmentalists believe that every country controls their own fate, then El Salvador must have put themselves in this economic situation. The developmentalists would argue that El Salvador and the garment industries could have prevented the loss of jobs by competing with the lower wages of China and Mexico. They would also say that El Salvador should have followed what the United States and Europe were doing, and they would be successful and in less poverty. Simply put, it is their own fault for the economic crisis they are facing.

On the other hand, the World Systems Theory is on the opposite end of the spectrum. They feel that not all places can compete equally and that the world is interconnected instead of working independently. The Central American Free Trade Agreement would fall under the world systems theory. This agreement was not created by El Salvador; however, it does affect them. So in this instance, they can't control their own fate like the developmentalists say. Another example is the new technologies throughout the world. El Salvador can't seem to compete with China and Mexico in the technologies that they have. The World Systems view shows this as being part of the pattern and trend that go along with the semi-peripheral and peripheral economies. We all have a part of what goes on in the world today.

These views are definitely different between the two groups mentioned. I believe that the World Systems Theory is more accurate with the self-reinforcing hierarchal views and that uneven competition makes not all places have the same development rates. El Salvador didn't solely contribute to their own economic downfall and the United States along with other economies had a factor in the loss of many jobs.