Midterm Review PDF

1. Marxian Methodology: Karl Marx(German philosopher and political scientist). - Peasant turned philanthropist - Believes that people are free to choose whether to be employed and who to be employed by without connections, free from means of production. Marks...

1. Marxian Methodology: Karl Marx(German philosopher and political scientist). - Peasant turned philanthropist - Believes that people are free to choose whether to be employed and who to be employed by without connections, free from means of production. Marks Research: - Researched on class struggle and the differences between what he conceived of as two main social classes in (European) society: - Bourgeois(rich, upper class, control the means of production) vs. the Proletariat(lower/middle class, who participate in the means of production). Free labour or freedom within labour/work 3 Methodologies - Materlist: Economic structure is society's dominant feature and it conditions other aspects. - Historical: Historical analysis of the mode of production over time. Evolution over time, not the dynamics of equilibrium at a set point. - Dialectical: Focused on tensions and contradictions of a system. Contradictions propel change. 2. Hundred Years of Peace(Polanyi) 1815-1914 Capitalism, Modernity, Democracy and Legitimacy, Coliseum Modernity: - Contemporary times, technology, advancements, science(the lack of religion as a state) - A concept that usually stands against tradition. - Modernity represents a radical shift from traditional societies and involves a multifaceted discontinuity in institutions and societal changes. - These changes are global in nature, originating from transformations that began in 17th century Europe. - Nature of Modern Institutions: Key institutions include the nation-state and economic systems based on fossil fuel energy. - Modernity fosters commodification of products and wage labour, bringing about industrial work, alienation, and rebellions. - Factors Fueling Modernity: Dynamics of modernity are driven by time-space separation, where geographical indicators are diminished for standardised dimensions. - Disembedding of social systems occurs as social activities and values are detached from localised contexts, involving trust-based mechanisms such as money. Democracy and Legitimacy: - Most Western Nations/nation-states have democracy as their main political unit. - Countries that do not abide by democracy defer to systems such as communism, socialism, caliphates(can be democratic), constitutional monarchy(parliament). Polanyi's Perspective on Markets Polanyi argues against the feasibility of a self-regulating market, stating it undermines society and necessitates protective measures. His analysis reflects on the interplay between market dynamics and social organisation, indicating inherent contradictions Traditional vs. Modern Society Traditional societies are characterised by traditionalism, conservatism, family-driven status, limited division of labour, and reliance on nature. Modern societies incorporate a modern state, capitalism, urbanism, and individualism, marking a significant departure from traditional societal structures  Discipline of Structure: Emile Durkheim Karl Marx Max Weber Axiom 1. Axiom 2. Axiom 3. To the extent that There exist social groups that All social groups contain sub- groups/states contain their have explicable, rational groups that are ranked in a conflicts, it is in large part structures. hierarchy, and are in conflict because lower-ranked with each other. subgroups accord legitimacy to the authority structure of the group on the grounds that this permits the group to a. Reality Of Social Facts. a. Lack Of Internal Unity. survive and the subgroups b. For Social Facts To Exist b. Hierarchy And Struggle,as see long-term advantages in There must be individual the group’s survival. interactions that result in central for social change beliefs and modes of regardless of the centrality of behaviour instituted by the class collectivity. a. Legitimacy Awarded Tento oppressive structures as they c. Science Institutions, their offer broader benefits to the origin and functioning. larger group The Concept of the State The state is defined by Max Weber as a human community that successfully claims the monopoly of the legitimate use of physical force within a specified territory. The core components of the state include territory, violence/force, and a population. Core Components of the State: Territory: The geographical area under the state's control. Violence/Force: The state's ability to use physical force legitimately. Population: The people residing within the state's territory Forms of Domination There are three ideal types of domination as per Weber: traditional, charismatic, and rational-legal. Traditional domination is characterised by patriarchal, patrimonial, or monarchical authority, where obedience is due to traditions. Charismatic domination relies on the personal appeal and direct connection of a leader to the masses, creating volatile relationships. Legal domination is founded on legality, with authority exercised through a modern bureaucratic framework, separating those who administer resources from those who hold authority State as a Social Relation Jessop describes the state as an exercise of power that reflects a changing balance of forces, influencing the forms and content of politics and policy within specific contexts. Sovereignty is relational, necessitating the consent of social groups for the state's authority to be recognized and effective. Sovereignty Functions of the State: Includes determining authority over territory and people, managing social group interactions, ensuring security, and establishing international relationships. Enclosure and Class Development Enclosure refers to the privatisation of common lands, creating a new class of wage workers. This shift marked a transition to capitalism, necessitating labour commodification Contributions of Key Economists: Adam Smith: Critiques mercantilism, wealth from labour. David Ricardo: Free trade and specialisation benefits. Marx: Class struggles, capitalism development Understanding Colonialism and Its Importance Colonisation is defined as both an economic and political process that was critical for modern society and the rise of capitalism. The idea that capitalism originated solely in Europe overlooks the impact of colonialism, slavery, and war that subordinated much of the world. Economic Impacts of Colonisation Colonial powers built industrial capacity through the extraction of commodities, facilitating the modern capitalist system. Significant wealth transfers occurred through land appropriation and exploitation of labour via enslavement and servitude Political Control and Racial Dynamics Europe exerted military control over vast areas, leading to social hierarchies constructed around race to justify colonisation and oppression. Such hierarchies established institutions that institutionalised systemic racism and white supremacy, shaping global norms Legacy of Colonialism The aftermath of colonisation has resulted in long-lasting socioeconomic disparities and racial inequalities, evident in the exploitation of labour and land. Systemic racism remains embedded in business practices, affecting marginalised communities and shaping inequalities experienced today The Role of Joint-Stock Companies Chartered companies acted as quasi-sovereign entities, influencing laws and business practices that persist in modern corporate structures. These companies enjoyed monopolistic privileges and were instrumental in institutionalising practices that have shaped the corporate landscape Implications for Modern Society Understanding colonial legacies provides insight into ongoing economic and social inequalities, framing the racialized functioning of capitalism today. The historical context of colonialism is critical in addressing contemporary issues, including systemic racism within business practices Society, Business, and State Interaction The corporation interacts intricately with society, business, and state through policies, regulations, interests, demands, and socio economic dynamics.  Small and medium enterprises and family-owned firms play significant roles alongside corporate entities. The effects of taxation and norms/laws are crucial in understanding how corporations operate within the broader economic and social contexts. Lobbying, media influence, and social mobilisation are also important mechanisms through which corporations exert powers. Legal Characteristics of Corporations Corporations possess five legal characteristics: legal personality, limited liability, transferable shares, delegated management under a board structure, and investor ownership. Entities have legal personality, allowing them to sue and be sued, enter into contracts, and maintain separate patrimony. Limited liability protects owners' personal assets from creditors, leading to diversified risks. Transferable shares exist, which may not necessarily be publicly tradables. Shareholder Primacy Model The mainstream corporate governance model prioritises shareholders as the highest risk-bearers, asserting their interests should take precedence. Shareholders are seen as 'principals' who link all business participants through contracts. This model views corporations as legal fictions that balance conflicting objectives among individual contracts. Agency Problem The separation of ownership and control in public corporations illustrates the agency problem, where directors and executives act as agents of the shareholders. Challenges arise from dispersed shareholder interests, information asymmetry, and complex operational tasks. Potential issues include excessive compensation, irrational risk-taking, and misreporting, which can distort shareholder interests. Stakeholder Primacy Model An alternative to the shareholder model, the stakeholder primacy model considers the interests of multiple parties: workers, governments, communities, clients/customers, and financial institutions. Government regulation, strong unions, and community participation are essential in this model, advocating for broader coordination among varied stakeholders. Corporate Power Monopoly is defined as control over a product or service that significantly dictates access terms for others.  Corporations may exert disproportionate political influence, control markets, and mislead the public. Power is categorised as compulsory, structural, and ideological, impacting both rules and political legitimacy.