ABSTRACT:
This study continues Gernot Köhlers measurements of unequal exchange and includes data for the years 1965 and 1995. In the first part of the book, Köhler presents, among others,
(1) highlights and a summary of global trends of unequal exchange, 1965 - 1995; and
(2) the statistical tables upon which this summary is based.
The calculations are based on trade data from U.N. trade statistics and on purchasing power parity data from the World Bank (and Penn World Tables). The underlying theory and method are explained in the present book.
Losses or gains from unequal exchange are calculated as the difference between a "fair value" of exports/imports and the "actual (unfair) value" of exports/imports.
The estimation formula is:
T = d*X - X
where
d = the exchange rate deviation index (also designated as "ERD" or “ERDI” in the literature)
X = the volume of exports from a low- or middle-income country to high-income countries (valued at the actual exchange rate)
T = the unrecorded transfer of value (gain or loss) resulting from unequal exchange
The transfer of value from the peripheries to the center, according to this reasoning, is gigantic:
Unequal Exchange 1965 and 1995, by Center/Periphery
Unequal Exchange
Gain (+)
Loss (-)
CENTER PERIPHERY
(% of OECD GDP) (% of NON-OECD GDP)
1965 +1.4% - 1.8 %
1995 +8 % -24 %
(Number of countries: OECD N=19 (1965) and N=22 (1995); NON-OECD N=88 (1965) and N=97 (1995))
As the data series shows, unequal exchange especially negatively affected the countries of Eastern Europe outside the EU-25 and the countries of the Arab world.
In part B, it is shown that transnational capital penetration and unequal exchange have at best only a mixed result for the host countries concerned during the development marathon, with inequalities and social imbalances rising in the long run.
Table of Contents:
In Memoriam vAcknowledgements ixIntroduction xiPART A: WORLD SYSTEM ECONOMICS 1 (194) Gernot Kohler A Theory of World Income 3 (40) The Structure of Global Money 43 (18) Unequal Exchange; World Tables of Unequal 61 (18) Exchange 1995 Unequal Exchange: World Tables 1965 and World 79 (22) Trend 1865 - 1965 - 1995 Global Keynesianism and Beyond 101(18) A Simulation of Global Exploitation 119(18) Theory of Isomorphism, Productivity and 137(22) Growth (Globalization as a Shaikh-Pasinetti Dynamic) Surplus Value and Transfer Value 159(10) Unemployment (Center) and Unequal Exchange 169(8) (Center-Periphery) Global Utopia, Green and Red 177(18)PART B: SUBMERGING MARKETS 195(152) Arno Tausch The Development Marathon, 1960-2000 197(36) Migration and Unequal Exchange 233(44) Towards a Sustainable EU-Accession Policy. 277(36) Social Security, Mass Demand and Development The Cross National Relevance of the Debate 313(22) and EU Enlargement Unequal Exchange, Unemployment and the 335(12) Destruction of the Social Welfare StateAppendix to Part B 347(54)Literature 401(56)Index 457
