EXTRA READINGS
WEEK ONE DAVID HARVEY: GLOBALIZATION AND THE “SPATIAL FIX”
Krugman: ‘new economic geography’ which focuses on how self-organizing spatial principles of economic activity
play an important role in political-economic life. How comparative geographical advantage might be better
theorized in terms of regional development and international trade.
Sachs: focus on regional complexity (environmental and cultural endowments) rather than states as more
significant entities to understand how development occurs.
Harvey:
Production, reproduction and reconfiguration of space are central to understanding of political economy of
capitalism.
Globalization as another round of capitalist production and reconstruction of space – diminution of friction of
distance through tech of transport and comms.
Leading to geographical restructuring of capitalist activity, new forms of uneven geographical development,
centering of global power and shift in geographical scale of capital organization (e.g. growth of supra-state
organizational forms)
Geographical processes of production and reconfiguration of space have CREATED these conditions of
contemporary globalization.
Meanings of spatial fix:
Capital secured in particular locations/space – cannot be moved or modified.
Capital has to commit to a particular physical form for a time-period
Taking care of a problem – made secure, return to normal functioning (temporary resolution for chronic
problems)
Capitalism’s insatiable drive to resolve inner crisis tendencies by geographical expansion and
restructuring.
Capital is addicted to geographical expansion, technological change and expansion through economic
growth.
Globalization is a spatial fix for capitalism’s crisis tendencies
o Global flows guided by fixed investments and these investments are speculative developments
that depend on profitability upon expansionary pattern of global flows of commodities, capital
and people.
o Without flows, fixed capital will devalue and be lost.
Both refer to something being pinned down and secured – contrasted with the mobility of capital.
Capitalism has to fix space in order to overcome space (e.g. building infrastructure to lower transport costs)
Contradiction: capitalism has to build a fixed space only to destroy that space later on to make way for new
‘spatial fix’.
Capitalism cannot survive without being geographically expansionary + major innovations in transport and comms
tech are necessary conditions for expansion to occur + modes of geographical expansion depend on whether they
are searching for markets, fresh labour powers, resources or new investment opportunities.
Overaccumulation of capital: surplus of labour and capital with no more ways to make them (economically)
productive.
If this crisis cannot be resolved, then there will be massive devaluation of capital and labour (e.g. idle factories,
machines, unsold commodities, unemployed labourers).
Devaluation can sometimes lead to physical destruction and even war.
Devaluation is a serious problem for capitalists. Obsolescence can destroy remaining value in existing
fixed capital before its physical lifetime is up.
To prevent devaluation and destruction, must find new spaces to overcome.
WEEK ONE DAVID HARVEY: GLOBALIZATION AND THE “SPATIAL FIX”
Krugman: ‘new economic geography’ which focuses on how self-organizing spatial principles of economic activity
play an important role in political-economic life. How comparative geographical advantage might be better
theorized in terms of regional development and international trade.
Sachs: focus on regional complexity (environmental and cultural endowments) rather than states as more
significant entities to understand how development occurs.
Harvey:
Production, reproduction and reconfiguration of space are central to understanding of political economy of
capitalism.
Globalization as another round of capitalist production and reconstruction of space – diminution of friction of
distance through tech of transport and comms.
Leading to geographical restructuring of capitalist activity, new forms of uneven geographical development,
centering of global power and shift in geographical scale of capital organization (e.g. growth of supra-state
organizational forms)
Geographical processes of production and reconfiguration of space have CREATED these conditions of
contemporary globalization.
Meanings of spatial fix:
Capital secured in particular locations/space – cannot be moved or modified.
Capital has to commit to a particular physical form for a time-period
Taking care of a problem – made secure, return to normal functioning (temporary resolution for chronic
problems)
Capitalism’s insatiable drive to resolve inner crisis tendencies by geographical expansion and
restructuring.
Capital is addicted to geographical expansion, technological change and expansion through economic
growth.
Globalization is a spatial fix for capitalism’s crisis tendencies
o Global flows guided by fixed investments and these investments are speculative developments
that depend on profitability upon expansionary pattern of global flows of commodities, capital
and people.
o Without flows, fixed capital will devalue and be lost.
Both refer to something being pinned down and secured – contrasted with the mobility of capital.
Capitalism has to fix space in order to overcome space (e.g. building infrastructure to lower transport costs)
Contradiction: capitalism has to build a fixed space only to destroy that space later on to make way for new
‘spatial fix’.
Capitalism cannot survive without being geographically expansionary + major innovations in transport and comms
tech are necessary conditions for expansion to occur + modes of geographical expansion depend on whether they
are searching for markets, fresh labour powers, resources or new investment opportunities.
Overaccumulation of capital: surplus of labour and capital with no more ways to make them (economically)
productive.
If this crisis cannot be resolved, then there will be massive devaluation of capital and labour (e.g. idle factories,
machines, unsold commodities, unemployed labourers).
Devaluation can sometimes lead to physical destruction and even war.
Devaluation is a serious problem for capitalists. Obsolescence can destroy remaining value in existing
fixed capital before its physical lifetime is up.
To prevent devaluation and destruction, must find new spaces to overcome.
