Week 11 Flashcards
(12 cards)
Equilibrium
The price at which the quantity supplied equals the quantity demanded
At this point, resources are optimally allocated and the market is considered efficient
Neoclassical Equilibrium Model (Reinert & Kvangraven, 2023)
• Rational individualism
• Self-interest
• Utility maximisation (demand side)
• Profit maximisation (supply side)
• Market efficiency
• Price mechanism
Eurocentrism (Samir Amin, 1988)
Not a concept or conscious choice, but a paradigm functioning spontaneously through “common sense”
Based on assumptions of:
1. Western civilisational foundation
2. Biased historiography
3. Development as teleological (progress-oriented)
4. Racialised binaries (West vs Rest)
5. Universalism
Samir Amin
Core Arguments:
• Unequal exchange: value flows from periphery to core
• Colonialism and imperialism are structural impediments
• “Imperialist rent” derived from extra surplus value
• Developed a framework to expose global exploitation structures
• Advocates a periphery-based analysis of global capitalism
Criticism of Eurocentrism (Hobson & Sajed, 2017):
• Reifies Western agency
• Treats West/non-West as binary
• Overlooks non-Western influence on the West
• Calls for a relational approach acknowledging non-Western agency under structural constraints
Timothy Mitchell (2005)
• Economics doesn’t just describe—it creates the global economy
• Economics as a socio-technical process
Nobel Prize Gender Bias:
Only 3 cis-women awarded in Economics since 1969:
• Elinor Ostrom (2008) – Commons
• Esther Duflo (2019) – Poverty alleviation
• Claudia Goldin (2023) – Women in labour markets
• 2019 Study (Lunnemann et al.): Gender bias in Nobel Prizes = >96% probability
Global South Representation:
Only 2 Global South nationalities have won Nobel Prize in Economics:
• Sir Arthur Lewis (St Lucia, 1979)
• Amartya Sen (India, 1998)
Journal Authorship Bias:
• Dominated by economists from rich countries
• Narrow neoclassical lens, limited agenda, lacks context and historical specificity
Global GDP Shift (2018):
• G7 share (PPP) fell to just under 30%
• Emerging markets + developing countries = 60% of global GDP
• China: ~20% | USA: 15% | EU: 16%
Shifting Global Power:
• By 2030, Asia projected to surpass North America + Europe in global power
• Driven by economic growth, population, military spending, tech investment
• China will likely surpass the US economy before 2030
E7 vs G7 (PwC):
• 1995: E7 = half the size of G7
• 2015: E7 = same size as G7
• 2040: E7 could be twice the size of G7
• E7 countries: China, India, Indonesia, Brazil, Russia, Mexico, Turkey
