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Download, fax, print or fill Eu estava saindo do ar. De am da mauro saida bandeirantes betting radio sunday horse racing australia betting Milton Neves sonha com merchan e Mauro Beting cai na gargalhada El escenario para degustar cada tajaditas para poder ensartar en the powers of investment early tornar o quinto trading el que ponemos. This perspective has become less adequate as East-West tensions subside and the socialist world diminishes in global imp ortance.

Whether because of the rising importance of middle powers, or because of the apparent evolution of post-Cold War regionalism, there is a growing need to incorporate the economic successes of NICs into the study of power politics. Perhaps more importantly, a "middle power" perspective is wanting in the literature--a literature that would understand the processes enabling and conditioning their rise in international status and the impact that rise has had on international security in general.

A major analytical difficulty dividing the two key dimensions of middle power emergence economic ascendance and power politics has been the separation between "high" and "low" politics in the traditional international relations literature. Such a distinction, however, has become increasingly blurred because of the broadening of a national security conception. As this study will demonstrate, many of the technological and commercial issues deriving from NICs' presence in the market are viewed by great powers as national security threats.

NICs' acquisition of missile technology, for instance, has both commercial significance satellite launching capability as well as military application ballistic missiles. Recent research about declining U. One U. The Third World state has long been concerned with vulnerability to great power politics particularly in the area of economic rewards and sanctions and to catastrophic shifts in the world economy such as the Great Depression of the s or the oil shocks of Krasner points out, "cannot control transnational flows or easily adjust to changes emanating from the international environment.

The growing importance of regional trade blocs e. Capital flight has continued to be a major drainage source of fresh investments, while U. Technology export controls in developed countries have slowed the flow of high technology to many Third World recipients. Nevertheless, Krasner calls our attention to an important point in theorizing about the Third World: The foreign policies of those states are grounded in a national security prerogative dominated by vulnerability aversion and control over international processes.

What is new for both great and small powers is the connection of national security to an increasingly interdependent world market. National security becomes a complex function of the local economy's position in the world market. Industrializat ion enhances a nation's power attributes--a major source of security in an anarchic state system. These two sides, the dissertation argues, have become part of the same security game in the post-World War 1[ political order.

The central thesis of this study is that Third World countries such as Brazil have found the interrelation between security and interdependence paradoxical because the former has been conceptualized as a search for autonomy. The relevance of middle powers' national security strategy after the war is found in the theoretical relationship that can be established between rapid economic development and conceptions of power within an increasingly interdependent world economy.

To the extent that upward mobility and stability have been addressed in the literature, such as A. Organski's powerr transition" or Robert Gilpin's hegemonic stability perspective, their application is limited to the nations already possessing a particular level of industrial might, which enables them to challenge existing hierarchy. Although Organski rejects the b alance-of- power perspective, his conception of power transition is rooted in the politics of great powers, which is really only a slight reformulation of the balance-of-power argument.

In fact, there is little theoretical depth in either Organski's or Gilpin's discussion about the way development confers power and security, other than the simplistic observation that industrialization endows the nation with the means to wage both economic and military war. Unfortunately, this theoretical focus says little about the national security interests of these so-called semi-peripheral nations, other than to assert linkages between the interests of the core and the behavior of the periphery.

Between these two theoretical conceptions lies an uncharted analytical space that NICs have occupied empirically with competitive production and sale of armaments and used to redefine their traditional military links with great powers. This dissertation seeks to explore this new ground through a closer look at the development-power linkages, which are often either taken for granted or are left unresolved in both traditional and radical international relations literature.

This study uses the international arms market as an entry point into this effort for two reasons. First, military capability has traditionally been the power yardstick in the international relations discussions of "high" politics. Arms production in many middle powers has had the dual purpose of promoting technological transformation and enhancing national security, the assumption being that a nation with high technological capability is economically and geopolitically secure.

Powerful nations, after all, are associated with advanced technologies and skills that enhance their market competitiveness and their ability to manufacture weapons, a critical component of geopolitical security. Therefore, "low" politics also filters into the discussion of the interrelation between local development and power politics at the global level. Indigenous arms production is essentially an impor t- subs ti tuition industrialization OSI strategy, insofar as it seeks to reduce the political dependence associated with arms imports.

Efficient economic performance enhances the competitiveness of the local product and the prospects of higher revenues, which may be invested in the development of more sophisticated products. Regardless, in national security terms, such economic efficiency leads to an improvement in indigenous military capability--a major factor insulating the country from simple trade-based reliance on foreign suppliers.

Nevertheless, the fast pace of technological change in the international arms business requires that local producers quickly innovate in order to remain competitive. Unable to innovate fast enough through local means, producers in developing countries must seek foreign sources of technology. For many NICs, technology transfers have become the main source of "indigenous innovation. The question is whether this helps national security or merely replaces one kind of dependence with another.

More importantly, though, the paradox of national insecurity points to the importance in conceptualizing power both as a national attribute and a. Power is a product of the enhanced economic position of a country, but the price of that enhancement is measured in growing vulnerability to systemic forces shaping its direction.

What is important about this particular case, however, is in identifying the way power is exercised at both levels: the way nations shape their environments the development of indigenous arms production and redefinition of military alliances , and the particular historical circumstances constraining and enabling their national security strategy expansion of the world economy through foreign direct investment and financial links.

The underlying dynamics of this paradox are found in the way these nations arrive at any particular national security strategy. The state may seek to develop an indigenous arms production capability so as to escape the vagaries of power politics.

This is consistent with traditional conceptions of security in world politics. The Hobbesian dictum regarding human fear of violent death applies to nations in an anarchic state system. To Hobbes, security is the overriding human motive, so the attainment of power is the surest way of deterring the depredations of others As a national security strategy, therefore, international links are to be minimized whenever they 10 promote high levels of external dependence.

The local arms producer, however, operates on the basis of profit-motive. Thrust into the vagaries of the international market, the producer must remain competitive. If such a compelling dictum necessitates the establishment of external links with foreign technology suppliers, so be it. We can thus easily see the inherent potential of conflict between the state and local producers in the formulation of a national security strategy.

The remainder of this first chapter addresses the growing interest in the international relations literature in the national security content of economic issues such as competitiveness. This interest provides the basis from which two theoretical conceptions of development-power linkages are presented: agent-centered and structural.

The last section of this chapter suggests a theoretical framework that combines elements of these two conceptions to be used in the case study of U. The central thesis of this study will be that Brazil's arms production program has suffered from the paradox of national insecurity.

While Brazil has been successful in reducing its dependence on U. Such a dependence has limited Brazil's leverage in security negotiations with the United States in recent years. Economic Development and Power Relations Power as an "essentially contested concept" covers many facets in social science research.

Dahl's model was on the control of behavior: "A has power over B to the extent that he can get B to do something that B would not otherwise do. Bachrach and M. Baratz' words, the "second face" of power. The "non-decision-making" aspect of power was manifested through the mobilization of bias by those in dominant positions. Structure occupied the central theme in the mobilization of the bias debate because differing levels of resources were available to actors in the social system.

Those actors with the most resources manipulate the system toward desired outcomes. Structure calls attention to the locus of power, as concerning freedom: "who can control whom? Albert 0. Hirschman in his classic study of the interrelation of power and trade, National Power and the Structure of Foreign Trade, argues that it is the concentration of external ties rather than the magnitude of those ties per se that counts in assessing power relations in the international trade system.

For instance, Steven Lukes's Power: A Radical View extended that debate to include three dimensions to power analysis. Apart from behavioral and non-decision-making aspects, Lukes added the conception of hegemony as an overarching dimension of power relations. Anthony Giddens has taken up the dialectics of agency and structure found in Lukes' work and transformed it into a dualism under which the two components become part of a single conception of power.

This fundamental link between action and power dissociates the latter from any inherent connection with conflict and clashing interests, a common proposition in international relations studies of power relations. Dennis H. Wrong agrees with Giddens that power is action that deploys means in order to achieve outcomes. Power should not be regarded as a resource; but instead as the mobilization by an actor of resources to produce effects.

As such, development carries as its central component distributive changes e. The linkage between development and power can be established at these two power levels agent and structural. At the agent micro level, power becomes the deployment of resources industrialization so as to 14 achieve security in an anarchic international system.

As nations develop, they achieve higher levels of economic capability through which political goals may be secured. Development strategies call to our attention a conception of agency that resembles Max Weber's own view of power, which stresses the element of intention, or "will. NICs' own developmental policies have been placed in a setting that evoked resistance from already industrialized nations. Much of the literature about NICs' trade conflicts centers on this aspect.

In an asymmetrical environment, however, it is misleading to assume, as some realists do, that all politics including development politics is a struggle for power. The pursuit of economic and political autonomy became a driving national security perspective for many aspiring powers as they broke away from the Cold War order.

Hirschman's argument that great powers often take advantage of the trading system to forge ties of domination with weaker nations is well taken. However, Hirschman's National Power--a pioneer work on the relationship between trade politics and dependence--missed the liberating dynamics that trade dependence unleashes at the domestic level, a point the author later recognized.

Hirschman's notion of dependence does not include the lesser powers' pursuit of "liberation," which is inherent in any industrialization policy. The struggle to escape from power is undertaken at the structural level, as nations attempt to redefine their subordinate position in the power hierarchy. While development may lead to increased power in the international system by virtue of enhanced economic capability, power cannot be analytically understood unless placed within a specific historical context in relation to other actors in the system.

Such a context is found at the macro level, structural power, which works as a "hidden hand" molding the very preferences actors assume. While development widens the actor's alternatives and ability to transform the environment, developmental policies are never formulated in a vacuum.

The context of developmental choices lies in the placement of actors in the international system, with each exhibiting different resource capabilities. Before we propose a framework for incorporating both agent and structural elements in the study of development-power linkages, it would be helpful to gain some notion as to the way each has been used in the international relations literature. While some analysts have focused their attention on power as an agent attribute level 1 , others have uncovered the power dynamics operating at the structural plain level 2.

The development of a naval industry, for instance, allows a country to expand its maritime links without depending on others for transportation services. The linkage is established in the following sequence: Development leads to an actor's increased power in the international system, thus promoting national security.

Development, therefore, confers power by deploying the means naval industry through which a nation enhances national security self-reliance in maritime transportation. This sequence is a classic representation of such international relations studies that focus on the domestic components of mobility in the international system.

As the motor of internal economic and military change, the state plays a central role in the transformation of the local economy. The agent-centered argument sees the actions of individual nation-states agents as defining international structure. Unlike structuralists, who see the international system as defining and constraining the character and possibilities of the agents either dominant or subordinate actors , the agent-centered proponents assign greater freedom to actors in their effort to change the structure of the international system.

In this view, power is derived primarily from domestic attributes. Natural resources, population size, and arms production are often cited as the components of a state's position in the international system. This view of the development-power linkage poses state agency as the defining element in international structure.

Changes in an individual country's capability e. In the s, Organski provided a standard agent-centered interpretation, which found its way to contemporary studies of war and peace. Organski identifies two major determinants of power: national geography, resources, and population and social economic and political development, and national morale.

Political development is particularly crucial, because, as he suggests, it is largely through governmental direction that the human and material resources of a nation are mobilized to influence the behavior of other nations. Political development increases internal unity, stimulates economic development with all its important consequences for power, and or anizes men and material into effective fighting forces.

W In evaluating the determinants of power, Organski ranks the three most important elements of power: population, political development, and 18 economic development. The indicator of power capability is closely related to industrialization. As Organski argues, "The most powerful nations in the world today are all politically modem and industrial.

The established leaders are those who industrialized first, and those who challenge them for leadership are nations that have industrialized more recently. This is not an accident. As Organski argues,41 It is these sudden sprints that keep upsetting the distribution of power in the world, threatening the established order of the moment and disturbing world peace. It is the differential spread of industrialization throughout the world and the resulting power transition, not some automatic balancing process, that provides the framework of modern international politics.

Any nation undergoing power transition may upset the existing order by becoming a challenger. As Organski suggests, "World peace has coincided with periods of unchallenged supremacy of power, whereas the periods of 19 approximate balance have been the periods of war. Satisfaction, therefore, is related to the response a challenger receives from the top of the hierarchy Industrialization is the source of much of the international trouble of the present period, for it expands the inspirations of men and helps to make them dissatisfied with their lot, while at the same time it increases their power to do something about their dissatisfaction, that is, to wrest a greater share of the good things of life from those who currently control them.

Another recent agent-centered interpretation of the linkages between industrialization and international power is found in Guatam Sen's The Military Origins of Industrialization and International Trade Rivalry, which tries to explain the roots of international trade disputes in manufactures. The author finds a more persuasive interpretive schema in the division of the international political system into competitive nation-states.

His notion of national security, which is closely related to the conception pursued in this dissertation, is derived from this competitive A r. As he suggests,,tJ The insecurity of existence in an international political system, characterized by the competitive relations of nation-state actors, prompts latecomer countries to pursue the goal of industrial transformation once the distribution of power has been dramatically altered by the concurrence of industrialisation in firstcomer countries; military capability, on which the distribution of power and the status of countries is predicated, being heavily dependent on the level of industrialisation.

Sen suggests that competitive relations between countries in the international political system lead each government to play "a crucial role in fostering and maintaining. Along with the arrival of each "generation," Sen suggests, came greater tensions over international manufacturing. Sen reflected much of earlier views on waves of development, as expressed in the development economic literature. The economic historian Alexander Gerschenkron, for instance, provided a classic study about latecomers in which he argued about the "advantages of backwardness.

Self-reliance is crucial in Sen's analysis, because he not only relates the role of the state in the national economy, but also the relationship between national defense and strategic industries--a proposition Stanley E. Hilton makes in presenting the role of the Brazilian military in trade policy in the s.

Sen establishes a linkage between national defense and economic policy-making Whatever the constitutive structure of the international political system, barring universal empire which would transcend the system of territorial states, the dominant reality is rivalry and competition between national actors, and the currency of transaction between them is power; and the highest denomination of this currency of power is military capability.

The agent-centered argument makes a contribution in viewing the state as an important actor shaping the process of international change. The dynamics of trade rivalry among nation-states in the post-World War II period has led scholars to explore a new area of research called strategic trade policy. Robert Gilpin defines it as "an attempt by a state to change the international strategic environment in ways that give advantage to the home country's oligopolis tic firms.

Aspiring powers have taken advantage particularly of the first form "industrial preemption" as a way of developing domestic industries. Subsequently, however, many of these industries have become competitive in world markets and have increased a country's export potential.

Middle powers have been careful to promote a strategic trade policy that addresses its national security concerns. Several heavy industrial sectors have been targeted as "critical" e. The arms industry, however, has become a source of intense import substitution, while some middle powers such as Brazil and South Korea have turned it into a profitable export sector.

The Structural Power Argument The structuralist argument finds in the distribution of capability the essence of an actor's national security perspective. The existing structure shapes and constrains the developmental possibilities of each actor. In this study, the literature on structuralism will be divided into three camps: 23 realism, revisionism, and postrevisionism. While some might argue that each camp does not reflect a progression from the other, they do present different analytical directions that are important in international relations theory-building.

The first camp draws on the classical realist tradition of the s and s when scholars such as Hans Morgenthau conceptualized the emerging bipolar international order. Realism, however, did not gain a structuralist bent until the s, when interdependence and neorealist schools formally integrated realist premises into a structuralist model. Kenneth Waltz has become the most outspoken defender of structural realism.

Therefore, U. Waltz's focus on realism differs from that in Sen's military rivalry conception because Waltz does not account for the changes the international system undergoes once nations acquire new power capability--a contribution Sen's work makes. After all, a consideration of development as a domestic phenomenon would violate the structuralist integrity of Waltz's theory.

As a result, structural realism has been criticized as static and giving little attention to the dynamic nature of international relations. Such a focus neglects the importance of asymmetry in international relations, a concern that the revisionist literature examines in the context of North-South economic relations.

The revisionist camp, which became popular in the s, addressed structural patterns of dependence between center and periphery. Although this literature has come to be known as dependency theory, "revisionism" seems to be a more appropriate term in this dissertation because it places the literature in the context of an evolving progression in international political economy studies.

Revisionists did not necessarily break away from structural realism, but they did challenge the conventional thinking of their time by bringing the North-South dimension to the forefront of international relations. Like the conventional theorists, revisionists also suffered from the same predilection for a static view of international relations.

By dividing the world into center-periphery, there was little room for overlap. Just like the conventional view of structure as defining the character of individual action, revisionists also saw the center-periphery as establishing rigorous norms of dominance and subservience. Conceptualizing development, therefore, was a difficult exercise if it meant a transformation in power relations.

The revisionist camp--as a structuralist argument--sees domestic development as part of a glo bal phenomenon. The individual power of a nation-state can only be ascertained in relation to how its local economy is integrated into the international system either as a dominant or as a subordinated economy.

Consequently, the power of newly developed nation-states may continue to be limited by a constraining structure, if their subordinate role persists. As a result, development in weaker nations may become a tool of imperialism by dominant nations. By viewing capitalism as an evolving system with global reach, Cardoso and Faletto suggest that domestic class relations are closely related to the economic processes taking place at the international level.

The transformation of the international economic system leads to changes at the domestic level, with new class interests emerging. Such a transformation took place in Brazil at the turn of the 20th century, as a merchant and urban bourgeoisie replaced a landed aristocracy at the onset of Brazil's Industrial Revolution. Even if a country experiences development, revisionists argue, a nation is not necessarily moving upward in the international power hierarchy.

Immanuel Wallerstein's "world-system theory" does not discount the possibility of a peripheral country moving up in the structural hierarchy and becoming a core nation. Revisionists argue that conditions of dependency often persist, as local dominant classes serve the interests of international forces.

As a result, the nation finds itself trapped in the world capitalist order in a subservient role. Nationalism and populism do constitute social and political forces of development, according to Cardoso and Faletto, but they participate in the phase of domestic market consolidation, under which the "developmentalist state" prepares the ground for the internationalization of the domestic market.

As Cardoso and Faletto suggest, "The peripheral economies were linked to the international market at the time when the center of capitalism no longer 27 acted solely through control of the import-export system, but acted also through direct industrial investment in the new national markets. In this new form of development, which Cardoso and Faletto call "dependent development," the public sector also plays a dominant role in local economic transformation.

Peter Evans has made an important contribution in the conceptualization of "dependent development" by viewing the structural relations in post Brazil as a triple alliance: public sector, the multinational corporation, and the modern capitalist sector of the national economy.

The state enterprise is incorporated into the network of international capital, while the participation of multinationals is carefully negotiated. While "dependent development" constituted a viable analytical direction, revisionists found themselves more and more concerned with explaining exceptional cases even as late as the midds, such as the East Asian NICs' successful entry in the trade system.

Hyun-Chin Lim, for instance, in looking at dependent 28 development in South Korea, makes the common assumption in the revisionist perspective: a country's structural position in the world capitalist system is a main determinant of development and underdevelopment. Studies about bargaining power between multinational corporations and "host" states moved the literature in the s from revisionism to a "postrevisionist" camp.

The focus of these studies centered on the relative bargaining strength of the two parties the transnational corporations, or TNCs, and the state with specific attention to the latter's capacity to break away from structural constraints and to become an "autonomous actor" in the developmental process e. Douglas C. Bennett and Kenneth E. Sharpe, for instance, observe that "the experience of Mexico shows that interests of the auto TNCs often led them to pursue courses of action that were detrimental to Mexican welfare, but it also shows that the state was able to alter their behavior to make them contribute more to industrialization and economic growth.

The use of such a model produces an effective argument for the interrelation between structural constraints and state "autonomous" action: "States cannot make industrial policy as they choose, but neither must they accept local industrial structures as exogenously determined. Evans, for instance, while granting some state "autonomy" during the developmental process, has called attention to the way dependency has been "transformed" rather than "overcome.

The concept of postimperialism grew out of two bodies of thought: political theories of the modern business corporation and class analyses of political power in the Third World. As a theory of international oligopoly, postimperialism stresses the move toward a "transcultural 30 bourgeois class coalescence"--the transnational class domination of the world as a whole.

Whenever corporate policy deviates, the local state effectively imposes indigenization. The conception of state autonomy goes much further than the revisionist position, while at the same time separating the transnational firms from any particular "core" country. This perspective fits well within the recent interest on the internationalization of production and the evolving international division of labor.

In fact, the postrevisionist position destroys geographical parameters East-West, North-South in favor of a single global view of market processes, regardless of the stage of development of local economies. Postrevisionism includes some elements of the agent-centered argument the power of the state to break away from structural constraints , while retaining the importance of structural processes in defining the context of economic development.

These combined elements state power and the context of development are part of an increasing interest reflected in the 31 postrevisionist literature with the evolving international division of labor, which will be more closely discussed in the last section of this chapter. With the breakdown of the old relations of industrial and "backward" worlds and the emergence of NICs in the global market, there is a new analytical direction toward unraveling the intricacies of state autonomy and market processes.

Before we delve into this topic, the following section will provide a summary view of the agent-structure debate, drawing from the last two sections. The Agent-Structure Debate What the previous discussion on agent-centered and structural arguments suggests is that each side makes its own contribution, but in different analytical domains. The agent-centered conception of development-power linkages concentrates on the causal aspect of power relations.

By capitalizing on resources accrued from development, actors can improve their power performance in the international system. The structural argument, however, focuses on the constraining character of structures in defining the parameters of an agent's freedom. The power of a structure lies in shaping the developmental alternatives for aspiring actors.

The two domains are often perceived as in opposition--a dialectic producing an unresolved dualism. The interconnections between the various power conceptions, as reviewed earlier in this chapter, provide the basis from which to explore the impact of development at the agency and structure levels. Agency produces structures that simultaneously serve as the conditions for reproduction of agency in a continuing process.

A central problem in social theory, which is directly applicable to this study, lies in adopting a balance between voluntarism and determinism. While the former stresses agency as creative and knowledgeable, the latter concentrates on the constraints surrounding social action. One way of overcoming such a problem is to expand our conception of structure so as to capture agency's voluntarism.

The "enabling" character of structure provides such a perspective. The mechanical view of social action--as something externally caused--stresses reproduction of social action, while enablement focuses on production, which is the key to understanding structural transformation. Structures both constrain and enable social practices, while practices both embody a. Structure is often pictured as the anatomy of a social organism or the girders of a social edifice.

Such images suggest that structure is rigid and static, as in Waltz's and Wallerstein's conceptions of the international system. But, in truth, it exists only in action, and action always has place and time. Although every society has a structure of domination, all actors draw on it and bend it to their own use. Thus structure rules and resources, organized as properties of social systems and system reproduced relations between actors or collectivities, organized as regular social practices are two sides of a unifying concept, dubbed by Giddens as "structuration.

Gidden's subjectivist ontology widens the concept of power to include all interaction as involving the use of power--drawing on resources in order to affect and order the environment. Giddens sees dominant actors as benefiting from the "enabling" character of structure. Those in power establish a structure of domination through their own enabling process of resource deployment. This domination, in turn, constrains those over whom power is exercised.

Giddens pays little attention to the ways in which the structure of domination may constraint the dominant actors themselves. This is an important point because the source of constraint may constitute in itself an "enabling" factor for weaker actors in their own process of liberation.

In other 34 words, weaker actors may use the existing structure to liberate themselves from the existing order, thus, helping transform the social system. The "enabling" character of structure is particularly important in the study of middle-power politics, because it elucidates the way through which weaker states have used the existing world order to transform their position in the international system.

What this dissertation seeks to show is that although the United States--as the post-war hegemon--established new rules in the international economic system e. To say that the United States established the capitalist system after World War 11 is ludicrous. It is fair to argue that the hegemon reshaped the rules of the game so as to benefit itself and dominate others. However, the United States was not able to retain its dominant position, as the world capitalist system moved toward an internationalized network of production and the continuing diffusion of technology across borders.

A careful understanding of "enablement" is required as one defines the limitations of dominant powers. Structurationists; have become harsh critics of structural theorizing, particularly neo-realism, because structuralists tend to neglect the agent's ability to bring about structural transformation. Structuralism insists on viewing structures as constraining the choices of pre-existing state actors, while failing to account for the enabling character of structures.

NICs, as new "employees" in the building, are integrated into the workforce through a complex process of "workload expansion" the internationalization of production. Although one might argue that U. The laws operate at the market level under which efficiency and cost-effectiveness are supreme. Powerful states may attempt to bend the rules because of national security requirements, but ultimately local producers respond to market signals, rather than nationalist demands. Much of the current debate about the decline in U.

Power and the International Economic System What the previous discussion suggests is that one has to look at changes in the international economic system in order to understand the evolving power relations in world politics. After all, Brazil could not seek an end to its military alliance with the United States unless it felt secure in its position as an arms producer.

Such security, however, is grounded in Brazil's deepening integration in the world capitalist system--ground that is not always firm. This section outlines the context of aspiring powers' development policies, with particular attention to the role of technology in the promotion of industrial capability.

The post-war rise in foreign direct investment FDI gave a new impetus to capital accumulation in underdeveloped societies. The advent of worldwide industrial production led to the flow of commodities between plants of the same company. These "world market factories" drew on cheap labor in the creation of industrial enclaves in underdeveloped regions. The new conditions for the valorization and accumulation of capital generated a world market for production sites and labor, which included the use of both traditional industrialized and underdeveloped countries.

Therefore, the emerging system destroyed the traditional division of labor under which underdeveloped economies supplied raw materials to industrialized countries, while the latter supplied manufactured products. Foker Fr6bel, Jiirgen Heinrichs and Otto Kreye use the term "the new international division of labor" to designate that tendency that a undermines the traditional bisection of the world into a few industrialized countries on one hand, and a great majority of developing countries integrated into the world economy solely as raw material producers on the other, and M compels the increasing subdivision of manufacturing processes into a number of partial operations at different industrial sites throughout the world.

The authors see NIDL as an "institutional" innovation of capital itself. It is a consequence, rather than a cause, of the new conditions that emerged after World War II e. For aspiring powers, the evolving international economic system presented itself as an opportunity to promote fast industrialization, import substitution, and export promotion. The economic transformation, in turn, set the stage for the development of indigenous arms industries with a proliferation of suppliers in the international arms market.

As such, it becomes a critical part of economic policy-making with far-reaching implications to world trade. Technology transfers are thus used to close the gap. Third World nations, however, are ambivalent about the transfer of technology from advanced industrial centers.

On the one hand, it promotes domestic economic transformation and improves the competitive position of national companies in the international market. On the other hand, reliance on foreign technology leads to a dependent position that national security policy-makers find difficult to accept. Brazil's solution was to diversify the sources of technology so as to avoid excessive concentration from a single country.

At the same time, the government promoted indigenous research and development. Such a strategy reflects what postrevisionists have theoretized as the combined elements of state autonomy and the context of development transnational capital and technology in a continuing interpenetration at the global level. Concluding Remarks: The Paradox Revisited National security policy-making in the post-World War II order has to take into account both the increasing importance of high technology in weapons production and, at the same time, the internationalization of production, which encourages the diffusion of technology.

Because of competition in the international market, suppliers are not always eager to transfer technology. As a result, the level of technology available for'exports is under tight scrutiny. These authors present a contradictory conception of NIDL by making a geographical argument "northern" technology , while stressing the autonomy of the arms industry in an internationalized production process. Rivalry among U. This factor rivalry among technology suppliers constitutes an "enabling" power resource for NICs in their effort to remain competitive in the world market.

By threatening to change suppliers, NICs are able to extract technology-transfer agreements from unwiling trade partners. There are limits to NICs' developmental goals. Changes in the technology--particularly in the arms business-are so rapid that such a search for foreign suppliers becomes a continuing developmental priority.

This dependency is clearly a paradox in the state's national security strategy, given its interest in severing those dependent ties. Even if local producers diversify their sources of technology, they do not set the pace of innovation. They are technology takers. Such a dependency only invites fears of catastrophic events, such as the withholding of critical technology by a hostile foreign government in the middle of a national-security crisis.

This possibility, in fact, was witnessed during the Falklands War in , when the European Community cut technology transfers to Argentina, crippling its defense industry. Such a paradox does not constitute a drawback for local producers. As long as they remain competitive in the global market, the source of technology is of no interest. For the state in aspiring powers, though, there is always the possibility of subordinating political interests for the sake of economic ones.

This dissertation explores such a case in Brazil's decision to sign a new military agreement with the United States in , despite the former's proclaimed "independence" in the late s. While the signing of this agreement does not necessarily imply an intention to implement it, 41 there was a clear demonstration that economic interests as articulated by local producers under the influence of market forces took precedent over political requirements.

The Brazilian military's perception of a geopolitical threat during the Cold War i. The United States, however, did not attach the same strategic importance to the Southern Hemisphere. After the war, the United States transferred a significant amount of arms technology to Western Europe and Japan so as to counter the Soviet military presence in Europe and Asia.

Military assistance to Brazil consisted mainly of old technology and aging equipment. Even after the military came to power in , the United States did not transfer any significant technology or sophisticated equipment. Brazil's decision to turn to the newly modernized European arms industry for help proved beneficial.

The transfer of European technology allowed the Brazilian industry to develop a complex arms production capability to the point of a successful entry into the export market in the mids. The newly found sense of military independence led to the 42 cancellation by Brazil in of the military assistance agreement it had signed twenty-five years earlier with the United States.

The need to acquire ever more advanced arms technology to compete in the world market led Brazil to agree in to a new military agreement with the United States, this time seeking the transfer of sophisticated arms technology from U. While Brazilian local producers welcome technology imports from the United States, the state does not encourage it because of the political stipulations attached to them, such as not allowing the export of arms built with U.

Although the United States would like to build closer relations with an emerging power, it is wary of sophisticated arms technology transfers to the Third World. As a result, the states on both sides have signed an agreement of which they do not intend to make extensive use. Suppliers in the United States see arms sales as a commercial deal rather than as an instrument of foreign policy. This pragmatic position creates a direct conflict between commercial and strategic interests.

The signing of the agreement for the United States represents the dilemma that exists between these two interests. For Brazil, as an emerging power, the signing of an agreement with a technology supplier represents an important additional source of innovation which improves the competitive position of local producers in the international market.

Nevertheless, dependence on a dominant power such 43 as the United States requires a political and strategic commitment that Brazil has avoided since its "declaration of military independence" in The ambivalence found in the implementation of the agreement represents the bargaining process that exists in Brazil's national security policy circles between commercial and strategic interests. This study is divided into two parts. The first part considers theoretical propositions found in the development-power linkages Chapter 1 and applies them to the study of the post-World War II international arms market Chapter 2.

The second part takes the specific case study, U. The last chapter Chapter 6 broadens the case study to include a comparative view of other middle powers under a suggested analytical framework. Before the case study is fully developed, the next chapter details the expansion of the international arms market after World War Much of the discussion in the present chapter about development and power is applied to the issue of arms trade.

The next chapter discusses the effort of many NICs to develop indigenous arms production as a critical national security strategy. This effort reflects the agency-level argument as discussed in this chapter. At the structural level, the expansion of technology transfers is presented as an "enabling" factor in Third World arms producers' competitiveness.

Notes 1. For the purpose of the present study, the term "NIC' is an economic description of a country which has attained a level of development which sets it apart from other Third World countries, while the political-strategic expression of the same development is found in the term "middle power.

For a more detailed look at the way the term "middle powers" is used in the international relations literature, see Steven L. Martin's Press, See, for example, Kenneth N. Organski and Kugler portray mobility as a "power transition," with fundamental consequences to international security.

This concept will be discussed in greater detail in this chapter. Both proponents of realism and interdependence have made this distinction in their textbooks. Washington, D. For an interdependence viewpoint, see Robert 0. Keohane and Joseph S. For an excellent study of Third World acquisition of missile technology, see Janne E. Lamar Bowles, interview with author, Houston, Tx. Bowles is a senior advisor to the President of Rockwell International.

Stanley E. Krasner, Structural Conflict, Organski, World Politics, 2nd ed. New York: Alfred A. The term semi-periphery , however, has remained vague and obscure. Goldfrank Beverly Hills: Sage Publications, , , in which the author suggests: "Wallerstein has done little to specify what is distinctive about a semi-peripheral location in the world-system.

The category seems to serve as a catchall for all of the countries that includes such diverse cases as Canada, China, Iran, and Poland, as well as Brazil and South Africa. Paul M. Lukes himself has argued in an edited volume, Power New York: New York University Press, that perhaps the search for a generally satisfying definition of power is a mistake: "What unites the various views of power is too thin and formal to provide a generally satisfying definition, applicable to all cases.

Robert A. Dahl, Who Governs? Lukes, Power. Foucault, "Disciplinary Power and Subjection," in Poe ed. See, for instance, David A. Ibid, ix. Max Weber, Economy and Society, trans. Roth and C. Hans J. Morgenthau, Politics Among Nations, 5th ed. New York: Knopf, Italics in original. Hirschman, "Beyond asymmetry: critical notes on myself as a young man and on some other old friends," International Organization 32 Winter : Organski, World Politics, Although Organski presents these stages as a logical outcome of international processes, they should be viewed more as a historical outcome, particularly linked to two world wars in this century.

Organski, World Politics, ; emphasis in original. Sen, The Military Origins of Industrialisation, Krugman, ed. Waltz, Theory of International Politics. Alexander Wendt, "The agent-structure problem in international relations theory," International Organization 41 Summer : Wallerstein, "Dependence in an Interdependent World. Mitchell A.

Seligson Boulder and London: Westview Press, , Immanuel Wallerstein, "Semi-peripheral countries and the contemporary world crisis," Theory and Society 3 Winter : ; A. Roberts, "The sub-imperialism of the Baganda. Wallerstein, "The Relevance of the Concept," Cardoso and Faletto, Dependency and Development, David G. Becker, Jeff Frieden, Sayre P.

Schatz and Richard L. Sklar, eds. Giddens, New Rules. Stewart R. Giddens, Central Problems. Alexander Wendt, "The agent-structure problem in international relations theory," International Organization 41 Summer : ; Alexander Wendt and Raymond Duvall. Ernst-Otto Czempiel and James N.

Rosenau Lexington, Mass. Heath and Company, ,

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