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What is Economic Globalization? The British and the Dutch East India Companies
(1602)
-the result of human innovation and
technological progress. 19th Century
Globalization transforms the national economy -reflects economic power and interests.
into a global one.
The Gold Standards
Globalization is an effective manager of the
-UK adopted gold mono-metallism in 1821.
national economy.
-Gold is non-inflationary and stable.
Is economic Globalization a New Phenomenon?
-Gold as the only international reserve and
Gills and Thompson (2006)
turned fixed exchange rate.
- Homo sapiens
-One of the main strengths of the system was
Frank and Gills (1993) the tendency for trade balance to be in
equilibrium
- Same world system in which we live 5,000
years ago -Gold standard was abandoned in 1931
Adam Smith (Magnum Opus, An inquiry into the The Bretton Woods System and its Dissolution
nature and causes of the wealth of nations
- New international monetary regime in the
(1776) )
framework of the United Nation Monetary and
- America (Christopher Columbus) Financial Conference in Bretton Woods, New
Hampshire (US), in July 1994.
- Direct Sea Route to India (Vasco de Gama)
-Gold-exchange standard
17th and 18th Century
-The US Dollar was the only convertible
- Monopolized Trade currency to gold.
-The dollar became overvalued. • Mercantilist era was best, characterized,
therefore, as a zero-sum game on the global
European Monetary Integration
level.
-The collapse of Bretton Woods system placed
Mercantilism
the EEC (European Economic Community) under
pressure. - the economic theory that trade generates
wealth and is stimulated by the accumulation of
-European Monetary System was established in
profitable balances.
1979.
• Surge of international trade arrive only with
-Gold nor US dollar could also play a role in
European's industrial revolution
stabilization process of exchange rates.
• Consequent repeal of British Corn Law in 1846
-European Exchange Rate Mechanism
• Free trade agreement
>to reduce exchange rate variability and
achieve monetary stability in Europe. • Most- favoured nation (MFN) Principle
-Jacques Delors, President of European - equal traiding among all trading partners.
Commission proposed European Economic and
• United States adopted a highly protective
Monetary Union (EMU).
import.
-EMU abandoned their national currencies and
Protectionism
delegate monetary policy and a common
currency administered by the European Central - Policy of protecting domestic industries
Bank (ECB). against foreign competition.
>2nd most widely used reserve currency. • World War I was a dramatic blow of free
trade.
-Global financial and economic crisis for the
Europe in 2008. • US Reciprocal Trade Agreements Act 1934
eventually put a stop to any further decline in
-ECB is not a lender of last resort and cannot
international trade.
bail out the individual countries which have lost
their monetary authority. Multilateralism: From GAAT to WTO
-EU is not a fiscal union, it does not have any • United States was the largest aid donor,
specific means to fic financial difficulties on a mostly in the form of Marshall Plan.
community level.
• The new trade regime was more or less
-EMU would never be qualify for a well- liberal, multilateral rule-based system.
functioning and stable monetary zone.
•Nations committed to lowered tariffs
International Trade and Trade Policies coordinate with General Agreement on Tariffs
and Trade (GAAT).
International trade can trigger tensions not just
between nations, but also within a particular • 1964 onwards- slow but steady expansion
country.
• Kennedy Round- reduction of non-tariff
Long term economic growth and political barriers especially that of anti-dumping
power. measures.
UNILATERAL TRADE ORDER • Tokyo Round- proceed with the same
extended maandate, also adopted series of
code
• Urugay Round- most famous multilateral • Destroyed the cultural patterns of production
negotiation. and exchange in “underdeveloped” countries.
- extended multilateral rules to new issues and • A friend of Frances once said: “Precolonial
sectors, such as agriculture. village existence in subsistence agriculture was
limited life indeed, but it’s certainly not
- invited a large number of developing countries
Calcutta.”
to participate in trade negotiations
“UNDERDEVELOPED”
• Agreements on trade-related investment
measures (TRIMS), trade in service (GATS) and • Instead of being an adjective, for Frances it
trade related aspects of intellectual property becomes verb. (to “underdevelop”)
rights (TRIPs).
• “Hunger crisis” could not be described in static
• Urugay Round gave birth to a 'real' and descriptive terms. Hunger and
international trade institution, the WTO. underdevelopment must always be thought as a
process.
• Seattle demonstrated the strength of NGOs
and anti-globalization movements. To answer the question “Why hunger?” it is
counterproductive to simply describe the conditions
Developing Countries and International Trade
in an underdeveloped country.
• Developing countries did not manage to
• Degree of malnutrition
integrate into post- World War II trading system
successfully. • The levels of agricultural production
COLONIALISM
• Colonialism’s public works programs only • British designated all the vast central part of the
reinforced export crop production. island, Kandyan Kingdom (Sri Lanka) as the
crown land.
• British irrigation works built in nineteenth
century India did help increase production, but • In 1870, the Dutch declared all uncultivated
the expansion was for the export crops. land (waste land) property of the state for lease
to Dutch plantation enterprises.
• Colonial powers had to force the production of
cash crops. • The Agrarian Land Law of 1870 authorized
foreign companies to lease village-owned land.
• Strategies in order for the people to plant cash
crops • The introduction of plantation meant the
divorce of agriculture from nourishment, as the
• Use physical or economic force
notion of food value was lost to the overriding
• Direct take over of the land claim of “market value” in international trade.
• As Walter Rodney recounts in “How Europe • It refers to the food producing sector or in
Underdeveloped Africa”, cash crops were often short, farmers or laborers.
grown literally under threat of guns and whips.
COLONIAL ADMINISTRATIONS THINKED VARIETY
• The forced cultivation of cotton was a major OF TACTICS
grievance leading to: The Maji Maji War in
• Undercutting self-provisioning
Tanzania and The Nationalist Revolt in Angola
agriculture
• Taxation was the preferred colonial techniques
• Making peasant the peasant be
to force Africans to grow cash crops.
dependent on plantation wages
Cash Crops – crop produced for its commercial
• The Government Services denied infrastructure
value rather than for use by the grower.
to farming, Africans were considered cheap
• In 1830, the Dutch Administration in Java made laborers source.
the peasants an offer they could not refuse:
A crisis happened, “The Great Depression” hit the
If they would grow government-owned export cash crop economies in 1929, cotton market
crops on one fifth of their land, the Dutch would collapsed.
remit their land taxes.
• Over 80,000 young people migrated to
If they refuse and thus could not pay the taxes, Gold coast
they loss their land.
• 15,000 plantation worker died of FAMINE
• Marketing Boards emerged in Africa in the between 1780 - 1787 in Jamaica.
1930’s as another technique for getting the
Group 3 -THE MODERN-WORLD SYSTEMS AS A
profit from cash crop production.
CAPITALIST WORLD ECONOMY:
• These marketing boards of Africa were only the PRODUCTION,SURPLUS-VALUE AND
institutionalized rendition of what is the POLARIZATION - Immanuel Wallerstein
essence of colonialism – the extraction of
• The MODERN WORLD-SYSTEM,
wealth
had its origins in the sixteenth century
PLANTATIONS
WORLD ECONOMY
• A second approach was direct takeover of the
• (Braudel's economie-monde)
land either by the colonizing government or by
private foreign interest.
is a large geographic zone within which there is a and it is also true that capitalists regularly
division of labor and hence significant internal
SELLERS to MONOPOLY = Creates relatively wide
exchange of basic or essential goods as well as flows
margin between the costs of production and the sales
of capital and labor
price = high rates of profit
FEATURES
QUASI-MONOPOLIES
• the division of labor
self-liquidating. But they last long enough
• contains many cultures and groups
(say thirty years) to ensure considerable accumulation
• not bounded by a unitary political structure
of capital by those who control the quasi-monopolies.
CAPITALISM
BASIC FUNDAMENTALS
• endless accumulation of capital
• the system of patents
• it means that people and firms are
• State restrictions on imports and exports
accumulating capital in order to accumulate still
(so-called protectionist measures)
more capital,. a process that is continual and
• State subsidies and tax benefits
endless.
• The ability of strong states to use their
• Wage labor
muscle to prevent weaker states from
CAPITALIST SYSTEM creating Counter protectionist measures
• the firms that compete in the markets - the degree of profitability of the production processes.
Investment-Based Period
- Product design and innovation are placed with GDP is calculated as the sum of all the values added by
driving innovation through digital product each producer, not the sum total of all the sales of all
design producers
- Labour intensive manufacturing is replaced by
WHAT IS DIFFERENT ABOUT THIS PHASE OF GLOBAL
digitizing the factory shop floor
CORPORATE DEVELOPMENT?
- Supply chain management is replaced by
globalizing through digital supply chain China is the largest developing country outward
management investor with estimated holdings in 2009 of
- Marketing sales and service is replaced by approximately US$ 1 trillion
digital customization
only has to put on the Golden Straitjacket, it has to join The rise of the international law and universal
this Electronic Herd. principles
Trading blocs UN
- A type of intergovernmental agreement, often part of Offsets their limitations
a regional intergovernmental organization, where
barriers to trade are reduced or eliminated among the - International Criminal Court (ICC) (2002)
participating states -Responsibility to Protect (R2P) (2011)
European Union (EU) -North Atlantic Treaty Organization (NATO)
-28 member states -Horizontal Linkages
-Transgovernmental networks * Global Citizens Campaign (Global Justice Movement) -
to call for alternatives to neoliberal economic
-Globalization paradox
globalization
- Only works best when not pushed too far
WORLD SOCIAL FORUM - forum dedicated to discussion
-Slaughter (2004) and proposal of alternatives for anti-globalization and
altermundo activists working towards the construction
-Transgovernmental networks brings governments of a better world - rooted in the belief that "Another
around the world to a greater harmony with world is possible!" (Brazil)
international norms and treaties
WORLD ECONOMIC FORUM (Switzerland)
-transgovernmental networks also brings mixed effects
to citizens -intrusion by National security state Global Framing - Sidney Tarrow
-interception of e-mails Social Media Revolution - era where political elites and
citizens everywhere are using new media to navigate
-tracking of mobile devices and renegotiate their relationship in the global age.
-Biometric Authentication
STATES AS TARGETS: THE RISE OF TRANSNATIONAL COMMUNICATION NETWORKS, NEW MEDIA AND THE
ACTIVISM STATE
ACTIVISTS BEYOND BORDERS NETWORK SOCIETY - a concept by Manuel Castells
- Margaret Keck and Kathryn Sikkink (1998) (2000) where citizens and civil organizations can
increasingly use networks to gain power relative to
- Illustrated how transnational activism has deep roots states by generating alternative discourses that have
that go back to 19th century campaign against foot- the potential to overwhelm the disciplinary discursive
binding practices in China(paki-bold), slavery(bold), and capacity of the state as necessary step to neutralizing its
for women's voting rights(bold). use of violence.
"Boomerang pattern of Influence" "The Net Delusion: The Dark Side of Internet Freedom" -
"When a state recognizes the legitimacy of International book by Evgeny Morozov, describes the many uphill
Interventions and changes its domestic behavior in battles facing democracy activists in dictatorships
response to International pressure, it reconstitutes the around the world and warns that constitutional
relationship between the state, its citizens and democracies are not always careful enough to avoid
International actors." unintended outcomes when advocating for dissidents.
• established at Versailles after the first world • Class A- Arab provinces of the Middle East
war
• Class B- Central Africa
• permanent organization of Abyssinia, Siam, Iran
• Class C- "sacred trust for civilization“
and Turkey
* Barbarossa live either in the class B or class C.
Wilsonian Liberism
• Tripartite Pact (Germany, Italy and Japan) –
• the reason why the old Concert of Europe shot
down They protest that the world be given
each its own proper place.
• Came from the United States' president,
Woodrow Wilson "No nation belonging to the white race has ever before
had such conditions forced upon it."
What is the difference between IMPERIALISM and
COLONIALISM? - Eugene Erdely
• Imperialism - practice by which a country Part 3:
increases its power by gaining control over After effects of European Civilization in International
other areas in the world Law
• Colonialism - practice of establishing territorial • “The concept of “civilized society” as a
dominion over a colony by an outside political community of nations or States distinct from
power the rest of the world no longer corresponds
with the main facts of contemporary life” - Sir
The conversation that took place between Balfour and
John Fischer Williams
Lord Robert Cecil on how to dispose former German
colonies: • “The family of nations is the totality of states
(civilized and uncivilized) and other subjects of
Balfour: The French and Italian are not in the least out
international public law” – French jurist in 1930
for self-determination. They are out for getting
whatever they can. • “In practice, we no longer insist that States shall
conform to any common standards of justice,
Cecil: They are imperialist.
religious toleration and internal government.
Balfour: Exactly. Whatever atrocities may be committed in
foreign countries, we now say that they are no
Minority Rights
concern of ours... This means in effect that we
• a badge of the new states secondary status, have now abandoned the old distinction
manifesting their need for protection in the between civilized and uncivilized States” – Prof.
exercise of their own sovereignty. H.A. Smith of LU
• Arnold Toynbee – the historian who was to
• In Egypt, British imprisoned the leading teach the English-speaking world that there are
Egyptian nationalist. They didn't apply the other civilizations beside the Western
Wilsonian liberism since Egypt is outside • In 1930s, the League experience, failure though
Europe. it was, suggested a community of nations slowly
• This incident calls the Wilsonian moment which coming into being that was actually-or
other countries from North Africa to China potentially-global.
were able to protest. • European civilization has shaped modern
International Law
“But is European civilization still what it was, and if not, that Europe was on the way to establishing its
how do the changes affect international law?” own rule-bound international community in an
entirely new sense.
• “International law is seriously discredited and
on the defensive” •