WhatisGl obal i

zati
on? 2.Global i
zat i
on’s i
nevit
abi l
it
y and
• Gl obal i
zati
onhasnoset t
leddef
ini
ti
on. irr
ev ersibili
ty
• Ithasmul t
ipl
econt endingmeanings. 3.Nobodyi sinchar geofgl obalizat
ion
*Commonexampl es: - Self-r
egul atingmar ket
- I nt
er connectednessofhumanbei ngs - Does notpr omote any agenda ofany
- Shr inkingoft hewor l
d specificcl assorgr oup
- Technol ogy and economi c activ
iti
es 4.Global i
zat i
onbenef itsev eryone
acrossbor der s - Freet radeandf reemar ket
Global
i
zat i
on: Process, Condit
ionandIdeology 5.Global i
zat i
onl eadstomor edemocr acy
 PROCESS: - Politi
cal andeconomi csystem
6.Global i
zat i
on r equires a gl obalwaron
Amul tidi
mensi onalsetofsoci alpr ocessesthat
terror
generate and i ncrease “worldwide soci al
- Aggr essiv e,mili
tar
isticresponses
i
nterdependence and exchanges whi l
e att he
Gl
obal
izationMi sconceptions
same t i
me f osteri
ng in peopl e a gr owing
awarenessofdeepeni ng connect ionsbet ween 1.I
nter
nat
ional
i
zat
ion–st
atebor
der
s
thelocalandthedi st
ant.
”(Steger,2005) One Many
-Happeningov erast ret
choft i
me
-Gl
obalizat
ionhast akenalongt i
met ohappen ■ Global i
zat i
onr efers ■ Inter
national ization
-Whendi dglobalizati
onactuall
ybegi n? togl obal economi c refer
st ot hei ncreasing
i
nt egrationofmany i
mpor t
anceof
 CONDI
TION
former lynat i
onal i
nt er
national trade,
– Globali
ty economi esi ntoone i
nt er
national relations,
Scholte ( 2008) – “ a soci al condit
ion globaleconomy , treat
ies,alliances, etc.
characteri
zedby: mai nlybyf reet r
ade Inter
-national, ofcour se,
Trans-planet
ary – soci al links not as andf r
eecapi t
al meansbet weenor
geographicaluni
tsbutasasoci alspaceoran mobi l
i
ty, butalsoby amongnat i
ons.
arenaofsoci all
i
fe easyoruncont roll
ed
Supra-terr
it
ori
ali
ty – r ender
ing the nati
onal mi grati
on. ■ Includesact i
vi
tiesby
borders i r
rel
ev ; t
ant r
anscends t err
it
orial ent i
ti
essuchas
geography ■ Includesagamutof cor porations,states,
 I
DEOLOGY humanact ivi
ti
es i
nt ernational
thatdonotr equi
re organi zations,andev en
• Global
izati
on ex i
sts i n peopl e's
referencetoa i
ndi vidualswi t
h
consciousness
state’snat
ional referencet onat i
onal
• Apoliti
calbeli
efsyst
em t
hat
border . bor dersandnat ional
• A setofcoher entand compl ement
ary
gov ernment s
beli
efsandideasabouttheglobalor
der. ■ Nogover
nment
’s
per
missi
on

2.Li
ber
ali
zat
ion–i
nter
nat
ionalt
rade
 Liberalizati
oni stheremov alofbar r
iers
I
deologiesofGl obalizat
ion and r estri
cti
ons imposed by nat ional
6corecl ai
msofgl obali
sm: gov ernment ssoast ocreateanopenand
1.Gl obalizati
on i s l iberali
zati
on (l
i
fts border lessworldeconomy .
restri
ctions)andmar ketintegrat
ion
 Global i
zation isreali
zed when national
- Mar ketsov ergovernment s
gov ernment s “ r
educe or abol i
sh
- Downf allofcommuni sm
regulator ymeasur esli
ke trade bar
riers,
 foreign – exchange r est
r i
cti
ons,capi tal becomelegi
ti
mat
eanddef
inewhatt
he
cont rolsandv i
sarequirement s”( Scholte) worldi
s…
 Pr oblem wi t
hthismi sconcept i
on:
-Conf ines the study wi thi
nt he debat e Gl
obal
izat
ion:Lev
elsofDebat
e
concer ning the neoliberal Whatar
et hest art i
ngpr emi ses?
macr oeconomicpol i
cies:proandant i - Compet ingdef initi
ons
-Pol i
ticalimpli
cation– ( l
imi t
edt o):neo- - Var yingmeasur ement s
li
ber ali
sm i st he only av ai
lable pol i
cy - Cont r
ast ingchr onol ogies
framewor kforatrulyglobalwor l
d. - Di verseexpl anations
-Debat e aboutt he pr os and cons of Whatar
et hei mpl i
cati
onsf orsoci alchange?
laissez f ai
re has been happeni ng for - Geogr aphy
cent uries - ident i
ty
3.Uni
ver
sal
i
zat
ion–homogeni
zat
ion-
& - Pr oduct ion
- Gov ernance
West
erni
zat
ion-
- Knowl edge
coloni zat ion/ Amer icani zati
on Whatar
et hei mpact sont hehumancondi t
ion?
 Univ er salizat i
on denot es a pr ocess of - Secur i
ty
spreadi ngv ari
ousobj ects,pr acticesand - Equal ity
exper i
encest ot hedi fferentpar t
soft he - Democr acy
planet Whatar
et her esponses?
 Global izationi swhent hi
ngs,v al
uesand - Neol i
beral ism (
mar kets)
pract icesspr eadt ot hedi f
ferentpar t
sof - Rej ectioni sm (l
ocal i
sm/ populi
sm)
thepl anet . - Ref ormi sm ( publicpol i
ci es)
 Impl icat ion:Homogeni zati
on ofcul ture, - Tr ansf ormi sm (soci alrev ol
uti
on)
politi
cs,economy and l aws.Dest roys
i
ndi genouspr acticesandcul tures. Cont
endi
ngPer
spect
ives:
 When West ern moder nity spr eads and
1.Li
ber
alorHy
per
-gl
obalper
spect
ive
dest roy s–West ernizat i
on
1.“endofgeogr aphy”;‘endoft henat ion-
 Issuesar isingf r
om t hismi sconcept i
on:
state’;border l
esswor ldoff l
ows
a. Uni versalization i s not a new
2.Privi
legesaneconomi candt echnological
feat ureofwor ldhistory.
l
ogic
b. West ernizationi snott heonl ypath
3.Globalizati
on as mut ual
ly benef icial
,
thatcanbet akenbygl obal izat
ion
progressiveandbeni gn( gentl
e)
4.New, i
nevitable,lev
elsof f
FRAMINGGLOBALI ZATION
5.Anewmoder nizati
ont heory?
 Bey ond a pr oblem-solving approach,
6.Theendoft heCol dWarandt he‘endof
especi all
y a per specti
ve of“ promoting
hist
or y’
:‘t
her eisnoal ternat
ive’(TI
NA)
international compet iveness” ( e.g.
7.Ther eishowev era“ pessimisti
cglobal i
st”
economi candt echnological)
perspect i
ve t hat emphasi ze bot h
 Bey ond a buzzwor d: a pr ocess and
homogeni zation and i t
s negat ive
discour se
consequences
 Criti
calv iew:globali
zati
onascont ested
2.Conser
vat
ive/
Skept
icalPer
spect
ive
(opposed/ chal
lenged); understood and
const i
tut edindif
ferentway s 1.Underpl
ays gl
obalizat
ion:
 Framesofmeani ngusedt odescri
bet he i
nternat
ionali
zati
onorr egi
onal
izati
on
wor l
dar epartofapol i
ti
cal pr
ocess 2.Cert
aint ypes ofMar xism/str
uctural
ism
 Wor dsandmeani ngsmat t
er:somev i
ews adoptastronglystat
e-centr
icperspect
ive
 3.Rise of ant i
-gl
obal aut
hor
it
ari
an culturalandgeogr aphicboundaries
popul
i
sm/
nat
ivi
sm o I ntensificat
ion – expansion,
3.Cr
it
ical
/Tr
ansf
ormat
ionPer
spect
ive stretchingandaccel erat
ionoft hese
networ ks
1.Recogni zesdi ssol ut i
onofol dst ruct ures
- Rel
at est ot hewaypeopl eperceiv
et i
me
and boundar i
es ( st at es, economi es,
andspace.( bot
hobjectiveandsubjective)
communi ti
es)
- Mustbedi ffer
enti
atedwi thani deology
2.“thest at easaspaceoff lows” :power
cal
ledGLOBALI SM (
belief)
andpol it i
csar er econf i
gur ed;t heyf low
through,acr oss and ar ound t erritor i
al
boundar ies Global
izat
ion: Key Themes and
3.Speedandmagni tudeofchanges Character
ist
ics(
M.St
eger
)
4.Mobi l
ity, hy br idity,compl exi t
y 1.Gl
obal
it
y:
5.Global -
local nexus( connect i
on)
- Asocialcondit
ionchar acteri
zedbytight
6.Emphasi s on unev enness and new
economic, pol it
ical
, cul tur
al and
hierar chi es: i nclusi on and excl usi on; envi
ronmentali
nterconnectionsandfl
ows,
global izat ion of super fi
cial it
y;
making cur
rentl
y existing border
s and
global izat ionofi ndi f ference
boundar
iesi
rrel
evant
 Global i
zat ioncant husbedef i
nedast he
2.Gl
obal
izat
ion
i
nt ensi fi
cat ion of wor ldwi de soci al
relationswhi ch l inkdi st antl ocal i
ti
esi n - Asetofsoci alpr ocessest hatappearto
such a wayt hatl ocalhappeni ngs ar e tr
ansform ourpresentsoci alcondit
ionof
shapedbyev ent soccur ringmanymi l
es weakening nat i
onal i
ty i nto one of
awayandv icev ersa.( Giddens) gl
obalit
y;humanl ivesplayedouti nt he
 Internat ional izat i
on and worl
d as a si ngle place; redefini
ng
mul t
inat ional ization ar e phases t hat l
andscape of soci opoli
ti
cal processes
precedegl obal izat ionbecauset hel at ter and socialsciences t hatst udy these
her aldt heendoft hest at esy stem ast he mechanisms
nucl eus ofhuman act iv ity.( Gr upo de 3.Gl
obali
magi
nar
y
Lisboa) - A conceptr efer
ri
ngt opeopl e’
sgr owi
ng
 Global i
zat ionasaconceptr efersbot ht o consciousnessofbel ongingt oagl obal
the compr essi on oft he wor ld and t he communi ty
i
nt ensi fi
cat ion ofconsci ousness oft he - Destabil
izesandunset tl
est he
wor ldasawhol e.(Rober tson, 1992) conventional par
amet ersof
 thepr ocessofi nt er act i
onandi ntegr at i
on understandingwi thi
nwhi chpeopl e
among t he peopl e, compani es, and i
magi net hei
rcommunal exist
ence
gov ernment s of di ffer ent nat ions, a
processdr i
v enbyi nt ernat ionalt radeand THEORETICALPARADI GMSASSOCI ATEDWI TH
i
nv est ment and ai ded by i nfor mat i
on GLOBALI
ZATI ON
technol ogi es( SunnyLev inI nst it
ute) 1.Wor l
dSy stemsTheor y
 The expansi on and i nt ensi fi
cat i
on of 2.GlobalCapi t
ali
sm Paradigm
soci al r elat i
ons and consci ousness 3.TheNet wor kSociet
y
acr osst hewor ldt i
meandacr osswor ld 4.Space,TimeandGl obali
zati
on
space”( St eger ) 5.Transnationali
tyandTransnati
onal
ism
o Expansi on – t he cr eat ion of new 6.GlobalCul t
ureParadigm
soci alnet wor ksandt hemul tipli
cat i
on
of exi sting connect ions t hat cut WORLDSYSTEMSPARADI
GM
acr osst radi tionalpol itical ,economi c, I
mmanuelWal
ler
stei
n
 - View gl obali
zat
ion not as a r ecent THENETWORKSOCI ETY
phenomenonbutasv ir
tual
lysy
nony mous  Technol ogy and t echnological change
witht hebi rthandspreadofcapit
alism,c. i
nst eadofcapi tal
ism
1500.  ManuelCast ells,TheRi seoft heNet work
- Global i
zat i
onisnotatallnewprocessbut Soci et
y
somet hing thati sjustconti
nuing and  Neweconomy :
evolving. 1. Informat i
onal,knowledgebased
- Capi t
alistwor l
d syst
em is di
vided into 2. Global ,product i
onisor ganizedon
threecat egori
es: agl obalscal e
1. Cor e -power f
uland dev eloped 3. Net wor ked, pr oduct i
vit
y i
s
cent
ers( West
ern Europe,North gener atedt hroughglobalnet work
AmericaandJapan)  “ the net wor ked ent erprise makes
2. Peri
phery -those regions t
hat mat eri
althecul t
ureoft hei nformational,
havebeenforcibl
ysubordi
natedto globaleconomy :i tt r
ansforms si gnals
thecorethroughCOLONI ZATI ON i
nt o commodi ties by pr ocessing
(Lat
in Amer i
ca, Afri
ca, Asi a, knowl edge”
MiddleEastandEaster
nEur ope)
3. Semi– per ipher
y – states and SPACE,TIMEANDGLOBALI ZATI ON
regi
onsthatwer
eint
hecoreand  Giddens“ time- spacedi st anciation”
aremovingdownorthosei
nthe – The i ntensificat ion ofwor ldwi de
peri
pher
yandaremovi
ngup relati
ons whi ch l ink di stant
localit
iesi nsuchawayt hatl ocal
GLOBALCAPI TALI SM happeni ngsar eshapedbyev ents
- Global i
zati
on i s a nov elst age i nt he occur ri
ng manymi l
es awayand
ev olvingsy st em ofwor ldcapi tali
sm. vicev ersa
- Qual itati
velynewf eatur est hatdi sti
ngui sh  Dav i
dHar vey–t i
me- spacecompr essi on
i
tf rom ear lierepochs (produced by t he v er y dy nami cs of
- New gl obal pr oduct i
on and f inanci al capitali
stdev elopment ”
sy stem  Sassen’s“ TheGl obalCi ty”–pr oposesa
- Riseofpr ocessest hatcannotbef ramed new spat i
alor deri semer ging such as
wi thinthenat i
on-st ate/interstatesy stem London,New Yor kandToky o–si tesof
- Skl air
:“ t
heor yoft hegl obalsy stem”att he speciali
zed ser vices f ort ransnat ional l
y
cor eofwhi char et ransnat ionalpr actices mobi lecapi talt hati ssocent ralt ot he
(TNPs) globaleconomy
o TCC( transnat ionalcapi t
al i
stcl ass)  Rober tRober tson“ Glocal ization”–i deas
– new cl asst hatbr i
ngst oget her abouthome, localit
yandcommuni tyhav e
sev er alsoci algr oups–execut ives beenext ensi velyspr eadar oundt hewor ld
of t ransnat i
onal cor por at i
ons;
global i
zing bur eaucr ats, TRANSNATIONALI TYAND
politicians, pr ofessional s and TRANSNATIONALI SM
consumer i
stel ites int he medi a  Transnationalism –anumbr ellaconcept
andt hecommer cialsect or. encompassi ng a wi de v ari
ety of
- Robi nson:t heor y of gl obalcapi tali
sm tr
ansf or
mat ivepr ocesses,pr acti
cesand
i
nv ol
v i
ng t hree pl anks: t ransnat i
onal development s t
hat t ake place
product i
on,t ransnat i
onalcapi t
al i
stsand si
mul taneousl yatalocal andgloballevel
transnat ional state: classr elati
ons  Transnationalpr ocessesandpr acti
ces–
broadly as t he mul tipl
e t ies and
 i
nteractions– economi c,pol
iti
cal
,social MULTI
PLEGLOBALI ZATI ON
and cul tur
al – t hat l i
nk peopl e,  Schol arsf oundi tsimpl ert oav oidt alki
ng
communi ti
esandi nsti
tut
ionsacrossthe aboutgl obal izationasawhol e
bordersofnat i
on-states.  I nstead“ mul ti
plegl obal izations”i nstead
 Transnat i
onall
inks–mor eintensedueto ofonepr ocess
speed and r el
ativel
y i nexpensi
ve  Ar jun Appadur ai: Di fferent ki nds of
characteroft r
av elandcommuni cati
ons globalizat ion occur on mul ti
ple and
andt hei
rimpact s i
nt ersect i
ngdi mensi onsofi ntegration–
“SCAPES”
GLOBALCULTURE – “ ethnoscapes” – global
mov ementofpeopl e
 Emphasi ze t he r apid growt h ofmass
– “ medi ascapes”–f l
owofcul tur e
medi aandr esul t
antglobalcul turalf l
ows
– “ technoscapes”– ci r
culation of
and i mages i nr ecentdecades ( global
mechani calgoodsandsof twar e
vil
lage–Mar shall McLuhan)
– “ financescapes” – global
 Focus:gl obalizationandr el
igion,nat ions circulat i
onofmoney
andet hni ci
ty,gl obalconsumer ism,gl obal – “ i
deoscapes” – r ealm wher e
communi cationsandt hegl obal i
zationof pol it
icalideasmov ear ound
tour i
sm
 Cl audi o:di stinctwi ndowsi ntot hebr oader
 Ritzer’
s Mcdonal di
zation of soci ety phenomenonofgl obalizat i
on
(homogeni zat i
on, Weber ’
s pr ocess of
rationalizat i
on)
– Ef fi
cient , predict
abl e and
st andar dized li
nes → al i
enat ion,
wast e,l ow nutriti
onalv alue and
the r i
sk of heal t
h pr oblems;
i
nst rument alrati
onalityy etresul t
s
i
n an ev er deeper subst ant iv
e
i
r rati
onal ity
CHP2  130BCETO1453BCE

 I
nternat
ionalbutnotgl
obal– no
ECONOMI
CGLOBALI
ZATI
ON
oceanroutes
 economi cgl obali
zat ionisahi stor
icalpr
ocess,  Fl
ynnandGer
aldez
,theageofgl
obal
i
zat
ion
the r esult of human i nnovati
on and began when al l important popul ated
technol ogical pr ogr ess. Itr efers to t he conti
nents began t o exchange pr oducts
i
ncr easing integr ation ofeconomi es around conti
nuousl
y–bot hwitheachother directl
y
thewor ld,par t
icularlythrought hemov ement and dir
ectl
yv ia ot
hercontinent
s – and i n
ofgoods, ser v
ices, andcapi t
alacrossbor ders. val
uessuf f
ici
enttogeneratecruciali
mpact s
The t erm somet imes al so r eferst o the onalltr
adi
ngpar t
ners”
mov ementofpeopl e(labor)andknowl edge
(technol ogy) acr oss i nt
ernati
onal bor ders.  1571–Gal l
eont
rade( Mani
laand
(IMF, 2008) Acapulco)Amer
ica was direct
ly
connectedt
oAsi
antradingr
outes
 Di
mensi
ons:
GALLEONTRADE
(1)theglobal
i
zat
ionoft
radeofgoodsand
serv
ices  Was par toft he age ofMer cant
il
ism (I
t
advocatedthatanat ionshoul
dexpor tmore
(
2)thegl
obal
i
zat
ionoff
inanci
alandcapi
tal
thanitimportedandaccumulatebull
i
on( bul
k
mar
ket
s
befor
ecoi ning,especial
l
ygold)tomakeup
(3) t
he gl
obal
izat
ion of t
echnol
ogy and thediff
erence)
communi
cat
ion;
and
 16th t
o18th c– countri
espr i
mari
lyEur
ope
(
4)t
hegl
obal
i
zat
ionofpr
oduct
ion. compet ed wit
h one anotherto sel
lmor e
goodsasameanst oboostt hei
rcountr
y’s
 Global i
zati
on is dist
inct f
rom i
ncome( cal
l
edmonetaryreser
vesl
ater
).
i
nt ernati
onali
zati
on (extension ofeconomi c
act i
vit
iesacrossbor ders)becausei tist he  Todef endthei
rpr oduct
sf r
om compet it
ors,
“f
unct ionali
ntegrat
ionbetweeni nt
ernat
ionall
y theser egi
mesi mposedhi ghtari
ffs,for
bade
dispersedactivi
ti
es”(Dickens) colonies to t r
ade wi t
h ot her nations,
restr
icted t
rade routes and subsidi
zed it
s
 Economicgl
obali
zat
ionisratheraqualit
ati
ve exports.
tr
ansfor
mati
onthanjustaquanti
tat
ivechange.
 Mer
canti
li
sm – gl
obalt
rade wi
th mul
ti
ple
 Szentes ( 2003) “ I
n economi c t er
ms r
est
ri
cti
ons
globali
sati
oni snot
hingbutapr ocessmaki ng
thewor l
d economyan“ organi
csy stem”by
extendingtransnat
ionaleconomicpr ocesses
and economi cr el
ati
ons to more and mor e
countri
es and by deepeni ng t
he economi c
i
nt er
dependenciesamongt hem.”

 Act
ors:
Stat
eandNon–st
ate

I
NTERNATI
ONALTRADI
NGSYSTEM
 Si
l
kRoad– f
rom Chi
nat
oMi
ddl
eEastand
Eur
ope
 and acti
vel
y manage thei
reconomies by
i
ncreasi
ng or decr
easi
ng the amount of
moneyincir
cul
ati
onastheyseef
it.
PostWWI
IEconomi
cSy
stem

BRETTONWOODSSYSTEM

 Afterthe t
wo wor l
d wars,wor ldleaders
soughttocreat
eagl obaleconomi csystem
thatwould ensur
eal onger-
last
ing global
GOLDSTANDARD peace.
 UK,
USandot
herEur
opeancount
ri
es  Dol
lar
-gol
d st
andar
d or gol
d-ex
change
 1stinternati
onalmonet
arysystem;unl
imi
ted st
andard
conv erti
bil
i
ty ofcur
renci
es i
nto gol
d;non-  Theybel
iev
edthatoneoft hewaystoachieve
i
nflationary-moneyi
sdependentonastat
e’s thi
sgoalwast osetupanet wor
kofgl obal
goldr esources fi
nanci
alinsti
tut
ions that woul
d promot e
 Was sti
lla veryr estr
ict
ive sy
stem as i
t economici
nter
dependenceandprosper
it
y .
compel
ledcountr
iest obackthei
rcurr
enci
es  Wasi naugurated in1944dur i
ngtheUnited
wit
hfi
xedgoldreser
v es. Nati
onsMonet ar
yandFi nanci
alconf
erence
 Duri
ngWorldWarI ,whencountr
iesdeplet
ed to preventt he catastr
ophes oft he earl
y
thei
rgol
dreser
vestofundthei
rarmies,many decades from r eoccurr
ing and affect
ing
werefor
cedtoabandonthegoldstandar
d. i
nternat
ionalties.

 GreatDepr
essi
on ( worstand t
he l
ongest  The Bret
ton Woods syst
em was l ar
gely
r
ecessi
onexper
iencedintheWest
ernwor
ld) i
nfl
uencedbytheideasofBri
ti
sheconomist
JohnMaynardKey
nes
-Someeconomist
sarguedthati
twaslar
gely
causedbythegold(bull
ion)st
andar
dt hus  Who believed thateconomic cri
ses
reduci
ngdemandandconsumpti
on occurnotwhen a count rydoes not
haveenoughmoney ,butwhenmoney
=cr
ashofwal
lst
reet i
snotbei ng spentand,ther
eby,not
mov i
ng.
 US and ot her i
ndust
ri
ali
zed count
ri
es
abandonedt
hegoldst
andard  When economi es sl ow down,
government
s hav e to r ei
nvigorate
 Theuseoft hegol
dstandar
dlast
edaround
marketswit
hi nf
usionsofcapital.This
thel
ate1970andshi
ft
edtopapermoney
acti
ve r ol
e of gov er
nment s i n
FI
ATCURRENCY managing spending served as t he
anchorforwhatwoul d be cal l
ed a
 Thewor l
deconomyoper atesbasedonFI AT
syst
em ofglobalKeynesi
anism
CURRENCI ES– notbackedupbypr eci
ous
metalsand whose value isdetermi
ned by  Del
egatesatBret
tonwoodsagr
eedt
ocr
eat
e
thei
rcostrel
ati
vetoothercurr
encies. twofi
nanci
ali
nsti
tut
ions.

 A currencywi t
houti
ntr
insi
cv al
uethathas  Int
ernat
ionalBank f
orReconstr
ucti
on
beenest abl
ishedasmoney ,andhasv alue andDevelopment(
IBRD,
orWorldBank)
only because a gov
ernmentmai nt
ains i
ts
- r
esponsi
ble for f unding post
war
val
ue
r
econstr
uct
ionpr
ojects.
 Thi
s sy
stem al
l
ows gov
ernment
stof
reel
y
- cr
it
icali
nst
it
uti
onatat
imewhenmany
 of the wor
ld'
s ci
ties had been
dest
roy
edbyt
hewar.

- It
’sr ol
ein modern economy isto
reduce ext
reme povert
y( thi
s was
contest
ed)

 I
nter
nat
ional
Monet
aryFund(
IMF)
,

- whichwast obethegl oball

enderof
l
ast r esort to prevent indi
vidual
countr
ies from spi
ral
i
ng i nt
o credit
cri
ses.Ifeconomi
cgrowt hinacountry
KEYNESI
ANI
SM
sl
oweddown
 Thehi
ghpointofgl
obalKeynesi
ani
sm came
- becausetherewasnotenoughmoney
i
nthemid-
1940stot
heearly1990s.
to sti
mulat
et he economy,t
he I
MF
wouldstepin.  Consumerdemand ist
he pr
imar
y dr
ivi
ng
for
ceoftheeconomy
 Tothi
sday,bothi
nst
it
uti
onsremainkey
pl
ayer
sineconomi
cgl
obali
zat
ion.  Duri
ng t his peri
od, gover
nments pour ed
moneyi ntothei
reconomies,al
lowingpeople
 Shortl
y af t
er Br et
ton Woods, v ari
ous
topurchasemor egoodsand,inthepr ocess,
countri
esal socommi ttedthemselvesto
i
ncreasedemandf ortheseproducts,
andso
furt
her gl obal economi c integrat
ion,
didthepri
ces
brett
on’s3rdint
it
ies,t
hroughthe
 Western and some Asian economies l
ike
 Gener
alAgreementon Tar
if
fs and
]apanacceptedtheri
seinpricesbecauseit
Tr
ade(GATT)in1947.
was accompani ed by general economic
 main pur
pose was to reduce growthandreducedunemployment.
t
ari
ff
s and ot
herhindr
ances to
 Thetheor
ywentt hat,aspr i
cesi
ncr
eased,
f
reetr
ade.
compani
eswoul
dear nmor e,
andwoul
dhave
 Av
oidt
radewar
s moremoneyt
ohirewor ker
s.

Wassuper
sededby
:  Keynesi
aneconomist
sbeli
evedt
hatal lt
his
yt
was a necessar r
ade-
offfor economic
 Wor
ldTr
adeOr
gani
zat
ionWTO(
1995)
dev
elopment
.
 marked t he biggest r
eform of
OI
LEMBARGO
i
nternat
ionaltradesincet heend
oftheSecondWor l
dWar.  Duri
ng t he 1973 Ar ab-I
srael
i War , Arab
member s of t
he Organizat
ion
 Whereas t he GATT mai nl
ydeal t
of 
Petrol
eum  Exporti
ng Count ri
es ( OPEC)
wit
ht radei ngoods,theWTOand
i
mposedan  embar go 
(banont rade)against
i
tsagreement sal
socov ertradein
theUni t
edSt atesi nretal
i
ationfortheU. S.
ser
vicesandi nt
ell
ectualproperty
.
deci
siont ore-supplytheIsrael
imi l
it
aryand
Thebirthoft heWTOal socreated
to gainl everage int he post -
war peace
newpr oceduresforthesettl
ement
negot
iations.
ofdi
sput es.
 Asa r esul
t,t
he pr
icesofoi lr oseshar
ply
 Br
ett
onWoodsi nsti
tut
ionswer eknown
i
mposi t
ionofanembar goinresponsetothe
as keyst
one inter
national economi
c
deci
sion of t
he United Stat
es and other
or
gani
zati
ons(
KIEOs)
 countr
iestor
esuppl
ytheIsr
ael
imil
i
tar
ywit
h
theneededar
msduringt
heYom Ki
ppurWar
.

 Ar
ab countr
ies al
so'used t
he embargo t
o
st
abi
l
izethei
reconomiesandgrowth.

 Aff
ectedt
heWest
erneconomi
est
hatwer
e
rel
i
antonoi
l

CRASHOFTHESTOCKMARKET
 Thestockmar ketscrashed i
n 1973-1974
aft
ertheUni t
edSt at
esstoppedlinki
ngthe
dol
lartogold,effecti
vel
yendingtheBret
ton
Woodssystem.
 From the 1980s onwar d, neoli
beral
i
sm
 Stagf
lat
ion-adeclineineconomi cgr
owth
becamet hecodi
fi
edstr
ategyoft heUnited
and employment (
stagnat
ion) t
ook pl
ace
Stat
esTreasur
yDepar
tment,theWor l
dBank,
al
ongside a sharp i ncr
ease in pri
ces
theIMF,andt heWorl
dTr adeOrganizati
on
(i
nfl
ati
on).
(WTO)
 This chal
lenge i
nthe keynesi
an paradi
gm
 Pol
ici
escametobecal
l
edt
heWashi
ngt
on
marksthe ent r
y of l i
berali
sm t hrough
Consensus.
neol
iberal
i
sm
Whati
stheWashi
ngt
onConsensus?

 The Washington Consensus is a setof10

economicpol i
cyprescripti
onsconsi der edto
consti
tut
et he "
standard"r eform package
promoted f or cr i
sis-r
idden dev el
oping
countr
ies by Washi ngtong D. C.-based
i
nsti
tuti
ons such as t he I nternational
MonetaryBank( I
MF) ,t
heWor ldBankandt he
Unit
edStatesDepar t
mentoft heTreasur y. 

 Thet erm wasf irstusedi n1989byEngl ish

economi st John Wil
li
iamson,   The
NEOLI
BERALI
SM prescri
ptionsencompassedpol i
ciesinsuch
areas as macr oeconomic st abi
l
izat
ion,
 Around thi
st i
me,anew f orm ofeconomic economi copeningwi threspecttobot
ht r
ade
thi
nking was beginning t
o chall
enge the andi nv
est ment,andtheexpansionofmar ket
Keynesianort
hodoxy. forceswithinthedomest i
ceconomy .
 Economists such as Fri
edr i
ch Hay ek and
Milt
onFriedmanarguedthatthegover nments'
pract
ice of pour ing money i nto t heir
economieshadcausedinflati
onbyi ncreasi
ng
demand f or goods wi thout necessaril
y
i
ncreasi
ngsupply.

 Gov
ernmentint
erventi
oni
neconomiesdi
stor
t
t
heproperf
uncti
oningoft
hemarket
.

Neol
i
ber
ali
sm:
anov
erv
iew
 removalofi nvest
mentbarri
ersimpeding
entyoff
r oreign f
irms,wit
h al
lreceiv
ing
‘
nati
onaltreatment’(thesametreatment
asdomesticf i
rms);
 

6. f
inanci
all
i
ber
ali
zat
ion:
 

progr
essivel
y 
mov e t owar ds market
-
deter
mined int
erestrates withi
naless
constr
ainedfi
nanci
almar ket
-pl
ace;

7. exchanger
ates:
asi ngleexchangerat
et hati
ssetatalevel
that encour ages expansion of non-
THE TEN ECONOMI
C POLI
CY tradit
ionalexport
sandmanagedi naway
PRESCRI
PTIONS that assur es exporters of cont
inued
compet i
ti
veness;
1. f
iscaldi
sci
pli
ne:
8. t
radel
i
ber
ali
zat
ion:
 
keeping gov ernment budget s smal l
enough that
,af t
er debt servi
cing,the r
api
d conv ersi
on of quanti
tati
vet r
ade
operati
ngdef
icitisnomoret han2percent r
estr
ict
ions,suchasi mportquot as,into
ofGDP; t
ari
ff
s and the progr
essi
vereduct ion of
t
ari
ff
stobet ween10and20per cent;
2.publ
i
cexpendi
tur
epr
ior
it
ies:
 
9. pr
ivat
izat
ion:
 
redirecti
ng expendi t
ure from pol it
icall
y
sensi t
ive ar eas and ‘white elephant s’ ofst
ateent
erpr
isesandasset
s;
(moder nusageconsi der
edexpensi vebut
withoutuse orv al
ue)towar ds 
neglected 10.pr
oper
tyr
ight
s: 
fi
eldswhi char eeconomicall
ypr oductive, ensur
ingsecur i
tyofpropert
yri
ght
sunder
strengthent hecountry’
sinfrastr
ucture,or l
awwi thoutexcessi
vecosts.
hav et he pot enti
alt oimpr ovei ncome
redistri
bution,suchaspr i
mar yhealthand WASHI
NGTONCONSENSUS
educat i
on;  Int
hedev el
opingworld,r
educti
onoftari
ff
s
3. t
axr
efor
m:  andopeningupoft heireconomies,i
sthe
qui
ckestwaytoprogr
ess.
r
educi
ng marginaltax rat
es to sharpen
i
ncent
ivesforcompani esandindivi
duals  Cert
ainindustr
ieswoul dbeaff
ectedanddi e,
t
oearnmore,andbr oadeni
ngthetaxbase butt hey consider
ed t hi
s"shock therapy"
t
oimprovehori
zontalequi
ty necessaryforl
ong-ter
m economicgrowth.

4. der
egul
ati
on:  It
s adv ocat
es like US Pr esident Ronald
ReaganandBr it
ishprimeMi nisterMargaret
aboli
ti
on of r egulations whi ch impede Thatcher just
ifi
ed t hei
r r educti
on i n
entyofnew f
r i
rmsorr estri
ctcompet i
ti
on, governmentspendingbycompar ingnati
onal
whil
eensur ing thatal lot herregul
ati
ons economiestohouseholds.
canbej usti
fiedbycr iteri
asuchassaf et
y,
envi
ronmental pr otection,or pr udenti
al  Thecaseofpost
-communi
stRussi
a.
supervi
sionoffinancial i
nstit
uti
ons;  thephraseWashingtonConsensushascome
f
5. or
eigndi
recti
nvest
ment
: tobeusedf air
lywidel
yinasecond,br oader
sense,toref
ertoamor egeneralor
ientat
ion
 t
owardsastronglymar ket-
based appr
oach i
nvest
ors clamor
ed f
or mor
e i
nvest
ment
(
someti
mes descr
ibed as market oppor
tuni
ti
es.
f
undament
ali
sm orneoli
berali
sm) 
 Banksbecamel
essdi
scr
imi
nat
ing

 Theybeganextendi
ng l oanstof amil
iesand
i
ndivi
dual
swi t
hdubi ouscr edi
trecordswho
wereunli
kel
ytopaytheirloansback.

 Financi
alexper
ts-wr onglyassumedthatev en
i
fmanyoft heborrowerswer eindi
vi
dualsand
famili
eswhowoul dst r
uggletopay,amaj orit
y
would notdefault
'Mor eover
,bankst hought
thatsincether
ewer esomanymor t
gagesi n
j
ustoneMBS' afewf ai
lureswouldnotruinthe
entir
etyofthei
nvestment .

 Banks also assumed that housi

ng pr
ices
wouldconti
nuetoincr
ease.

 In2007,homepricesst
oppedincr
easi
ngas
suppl
ycaughtupwit
hdemand.

 Thi
sreali
zat
iontr
igger
edt herapi
dr esel
l
ingof
MBSs,asbanksandi nvestor
st r
iedtogetrid
oft
heirbadi
nvestments.

 Thisdangerouscycl
er eachedat i
ppi
ngpoi nt
NEOLI
BERALI
SM i
nSept ember2008,whenmaj orinv
estment
bankslikeLehmanBrotherscol
l
apsed,ther
eby
 The gr eat
est recent r epudiat
ion of t hi
s
deplet
ingmajori
nvestments.
thi
nki
ngwast herecentgl obalfi
nancialcr
isi
s
of2008-2009whent hewor l
dexperiencedthe  Thecrisi
sspreadbeyondt heUni
tedStates
great
esteconomi cdepressiondownt urnsi
nce si
nce many i nv
estor
s wer e f orei
gn
theGreatDepression. gover
nments,
corpor
ati
ons,andi
ndiv
idual
s.

 Thecrisi
scanbet racedbacktot he1980s  Thelossofthei
rmoneyspr
eadl
i
kewi
l
dfi
re
when t he Unit
ed St ates sy
stematical
l
y backtot
hei
rcount
ri
es.
removed vari
ous banki
ng and invest
ment
 Theseseriesofint
erconnecti
onsallowedfora
rest
ri
cti
ons.
global
mul ti
pli
eref
fectthatsentr
ipplesacr
oss
 Governmentauthori
ti
esf ai
l
edt or egulat
ebad theworld.
i
nvestments occurri
ng int he US housi ng
 Unti
lnowcount ri
esli
keSpai nandGr eeceare
market.Taki
ngadv antageof' cheaphousi ng
heavil
yi ndebted (al
most l ike Thi
rd Wor l
d
l
oans,"Ameri
cansbeganbui l
dinghousest hat
countries),anddebtr el
iefhascomeatahi gh
werebeyondtheirf
inanci
alcapacities'
pri
ce.Gr eece,inparti
cular,hasbeenforcedby
 Tomi ti
gatetheri
skoftheseloans,
bankst
hat Germanyandt heIMFt ocutbackoni tssocial
werel ending houseowner
s'money pooled and publ i
cspendi ng.Af fecti
ng ser
vicesli
ke
thesemor tgagePaymentsandsoldthem as pensions,heal thcare,andv ari
ousfor msof
“mortgage-
backedsecuri
ti
es"(MBSs) soci
alsecur i
ty,t
hesecut shavebeenf el
tmost
acutelybyt hepoor.
 Si
nce ther
e was so much sur
plus money
ci
rcul
ati
ng't
hedemandforMBSsincr
easedas  Mor
eov
er,t
he r
educt
ion i
n gov
ernment
 spending has sl
owed down growth and mor
ethanot
her
s.
ensuredhi
ghlev
elsofunempl
oyment
.
 The reduct
ions intar
if
fs and ot
hertrade
bar
ri
ers,butthesepr
ocesseshav
eoftenbeen
unf
air
.

PERFECTI
ONI
SM
ECONOMI
CGLOBALI
ZATI
ON
 Fir
st, dev eloped count ri
es ar e of ten
 i
nternati
onal tr
ade remai
ns essenti
al for
protecti
onists,ast heyrepeat
edlyrefusetolif
t
countri
es to devel
op i
nt he cont
emporary
poli
ciesthatsaf eguardthei
rpri
mar yproducts
worl
d.
that could ot herwi
se be ov erwhelmed by
 Exports,notj
ustthelocalselli
ngofgoodsand i
mpor t
sfrom t hedev el
opingworl
d.
servi
ces,makenat i
onaleconomi esgr ow at
 CaseofJapan’
srefusaltoall
ow ri
ceimpor
ts
present.Inthepast,thoset hatbenef
it
edt he
i
ntothecountr
ytopr ot
ectit
sf ar
mingsect
or
mostf rom free t
rade wer et he advanced
andtheUSprot
ect
ionofitssugari
ndust
ry
nati
ons t hat were pr oducing and selli
ng
i
ndustrialandagri
cul
turalgoods.  Poorer countri
escandov er
ylitt
letomake
economi c gl
obali
zati
on mor e just
. Trade
 TheUni t
edSt at
es,Japan,andt hemember -
i
mbal ances,t
heref
ore,char
acter
izeeconomic
countri
es of t he Eur opean Uni on were
rel
ati
onsbet weendev el
opedanddev elopi
ng
responsibl
ef or65per centofgl obalexports,
countri
es.
whilethedevelopingcount r
iesonlyaccounted
for29per cent.Whenmor ecountriesopened GLOBALCOMMERCE
up theireconomi es t
ot ake adv ant
age of
 Thebenefi
ciari
esofgl obalcommercehav
e
i
ncreased f r
ee t rade,t he shar es of the
beenmainl
ytransnati
onalcor
por
ati
ons(
TNCs)
percentagebegant ochange.
andnotgovernments.
 By 2011, dev el
oping count r
ies l i
ke t he
 TNCsareconcer nedmorewithprof
it
sthan
Phil
ippines,I
ndia,Chi na,Argent
ina,andBr azi
l
wit
h assi
sti
ng the soci
alpr
ograms ofthe
account ed f
or51 per centofgl obalexports
gover
nmentshostingt
hem.
whiletheshar eofadv ancednati
onsincluding
the Uni ted States-
had gone down t o 45  Hostcountr
iesi
nt urn,l
oosent axlaws,which
percent. prev
ent,wagesfrom r i
sing,whilesacri
fi
cing
soci
al and environment al programs that
 The WTO-l
ed reducti
on of tr
ade barr
iers,
prot
ecttheunder
pr i
vil
egedmember softhei
r
known as t
rade li
beral
i
zati
on,al
tered the
soci
eti
es.
dynami
csofthegl
obaleconomy.
 “r
ace tot he bot
tom"r eferst
o count
ri
es'
 Int herecentdecades,partl
yasar esul
tof
I
owering t
hei
rlaborstandardsi
ncl
udi
ng the
these i
ncreased export
s, economic
prot
ecti
onofworker
s'i
nterest
s
global
izat
ionhasusheredinanunpr
ecedent
ed
spikeinglobalgrowt
hrates.  Lur
ing f
orei
gn i
nvest
ors seeki
ng hi
gh pr
ofi
t
margi
nsatthel
owestcostpossibl
e.
 Accor dingt ot heIMF,thegl obalpercapita
GDPr oseov erf i
ve-
fol
dint hesecondhal fof  Gov ernment sweakenenv ironmentallawst o
the 20th cent ury
.I twas t his gr
owt hthat attr
acti nv
estors,creati
ngf atalconsequences
createdt helargeAsianeconomi esli
keJapan, on t heirecologicalbal ance and depl et
ing
China, Korea,HongKong, andSingapore. them oft hei
rf i
nit
er esources( li
keoil,coal
,
andmi ner
als).
 But, economic globali
zat
ion remains an
uneven pr ocess with some count r
ies,  I
nter
nat
ionaleconomi
cint
egr
ati
oni
sacent
ral
corpor
ati
ons,andindi
vidual
s benef
it
ti
ngal ot
 t
enetofgl
obal
i
zat
ion.

 Asar eminder,economi
csisjustonewindow
i
ntothephenomenonofgl obali
zat
ion;i
tisnot
theenti
rethi
ng.

 Neverthel
ess, much of gl obali
zat
ion i s
anchoredonchangesInt heeconomy .Global
cul
ture,forexample,i
sf acil
it
ated bytrade.
Fi
li
pinoswoul dnotbeasawar eofAmer ican
cul
tureifnotfort
hetr
adet hatal
lowslocal
st o
watchAmer i
canmov i
es,list
ent o American
music,andconsumeAmer icanproduct
s.

 Theglobali
zat
ionofpoliti
csisli
kewisel
argel
y
conti
ngenton t r
ade relat
ions.These days,
manyev entsofforei
gnaf f
airsar
econducted
to cement tradi
ng relati
ons between and
amongst at
es.HiKC

Resul
t:Gr
owi
ngf
oodi
nsecur
it
y

Ri
singi
mpor
tdependency(
2010)

Rice (19%),Garl
i
c( 65%),Mongo (
54%),Coff
ee
(45%),Beef(21%),Chi
cken(10%)
,Peanut
s(70%),
Onion( 8%)
,Pork(5%)