Notes Week 2
Notes Week 2 403-2B
Popular in International Relations Seminar
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This 5 page Class Notes was uploaded by Dora Notetaker on Thursday September 3, 2015. The Class Notes belongs to 403-2B at University of Alabama at Birmingham taught by Nikolaos Zahariadis in Summer 2015. Since its upload, it has received 42 views. For similar materials see International Relations Seminar in Public Relations at University of Alabama at Birmingham.
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Date Created: 09/03/15
PSC 403 Seminar in International Studies Dr Zahariadis Notes Set 2 Week of Aug 31 Tue Se t1 Great Depression 0 Stock market crash of 1929 0 Depression a sustained period of economic contraction vs recession which is an economic contraction that last 2 successive quarters 0 During a depression people don t buy which means people don t sell and that leads to people getting laid off 0 Periods of high unemployment o This leads to frustration which leads to polarized politics and a perfect condition for radical leaders Hitler to come to power Protectionism 0 During this time ideologies emerged that wanted to close the borders and limit imports o This way you pay less to other countries and increase your exports to generate wealth 0 People put blame of economic downturn on foreigners 0 80 ways to protect your economy 1 Tariffs tax on imports 0 Percentage can be placed on the value or volume of a foreign good 2 Quotas 0 But if everybody practices protectionism nobody is selling exports so really there are no imports 0 80 trade comes to a halt 0 Which leads to a deeper depression 0 Each country was isolated in its own bubble economically and politically 0 So Hitler could enjoy popularity and do whatever he wanted World War II 0 Europe was completely destroyed a second time Lessons of WWquot 1 Protectionism is bad a It is a cause of prolonged economic contraction b There is a need for a new European order that will encourage trade 2 Nationalism need to be controlled a Isolated countries in bubble are dangerous because they allow for individuals Hitler to come to power and create problems for everyone else b Hitler used nationalism to expand Germany s borders to allow ethnic Germans to be a part of the nation again 3 USSR a Western European powers realized they couldn t contain an expansionist USSR b They didn t have the sheer manpower to rival Russia c The US hated Communists and because the US was the victorious ally that dictated the rules they had to oppose the USSR 4 US aid a the US was originally not keen on helping Europe recover from the War b But they realize that political instability is what Communists benefit from Communists actually almost came to power in Western Europe Why 0 The Communist message 0 They promise a better life and guarantee that people will have jobs which is not what Capitalism promises Capitalism says that the market will dictate things and the better man will get the job 0 Communists created political stability by dictating the rules 0 They had the guns they won in WWII and they liberated Eastern Europe US realized they must intervene 0 They had defeated the Nazis to now have to fight the Communists 0 They did not want war 0 So they came up with the Marshall Plan to help Europe Marshall Plan o It was a plan to reconstruct Europe 0 Not because they felt sorry for Europe but for the US s security reasons to check the USSR 0 They poured money into European infrastructure 0 US encouraged trade each other and encourage trade with the US German Problem 0 Countries noticed in hindsight that there is something aggressive in that country s political culture 0 They were responsible for 2 world wars 0 They have this inherent policy for expansion and we must contain it French Problem 0 The French have had a continuous problem with the Germans 0 They share a border and have been fighting over territory for decades 0 The French insisted on imposing war reparations in the Germans after WWI which was a cause of WWII and the US knew this Solution 0 They knew they wanted NO MORE WAR and to solve the above problems 0 2 ideas were proposed 0 1 A united states of Europe I This idea involved dissolving national borders and creating a central national government I This idea was too revolutionary and people still thought in national terms with different ideologies political systems history etc I And there was still political animosity between countries they couldn t unite with people who they fought against I Also would have had to divide who gets what and they could not trust other countries to play fair and give up their power 0 2 A European Community I Proposed by Schuman a French diplomat of German descent in the Schuman Declaration I He says 0 1 No more war 0 2 Economic cooperation so reduced tariffs o 3 Committees will be created to make decisions collectively o 4 Collaboration with NATO to solve security problems so EU will be the government and NATO will be the guns I And they got the Germans to pay for it since their economy was starting to do very well and they guilt tripped them after causing 2 world wars I Germans wanted nothing more than to be part of Europe 0 This was the 1st time an intergovernmental organization was created that continually gained power 0 And it didn tjust deal with governments o It actually has citizens Thurs Sept 3 2015 A European Community in Coal and Steel was created in the Schuman Declaration lt served to drop the borders between Germany and France Its goal was to facilitate trade by reducing tariffs The idea was to create an interlocked or interdependent economy 0 The more interlocked their economies became the less mistrust or misunderstanding would exist between them 0 And if it works others will want to join too Other countries became interested and wanted to join the ESCC o Other coal and steel producers 0 Members who joined next Italy and Belarus 0 Great Britain was invited because it was a major power but it declined 0 GB didn t want to be part of the continent because it saw itself as special and as a bridge between the Europe and the new superpower US 0 The British only wanted a FTA Free Trade Area in Europe 0 GB didn t want to give up any sovereignty Europe was willing to give up some But Germany and France wanted more an integrated Europe 0 They wanted the free movement of people goods services etc 0 And the free movement of people necessitates more no passports Why coal and steel 0 Coal 0 WII showed that oil was the new energy source but they didn t have oil they had coal 0 Until then economies were based on coal 0 Steel o It was the primary ingredient for anything being built at the time 0 Weapons They used steel to make weapons 1955 Exploratory Commission 0 Created to see if free trade would be successful in other areas 0 Cultivated in 2 committees o 1 EEC European Economic Community I integrated economies I free trade 0 2 Euratom I atomic energy I they started harnessing nuclear energy for civilian and military purposes I atomic weapons have strategic potential meaning that they are far more effective when you only threaten to use them vs actually using them which is far too destructive Next step in integration CU Customs Union 0 A region with free trade and a common customs policy 0 Before this free trade meant they could discuss whatever they wanted with 3rd parties 0 But a CU puts constraints on that o It meant giving up more of their sovereignty Next EMU Economic and Monetary Union 0 First a single market 0 Then a single currency Single Market 0 Meant abolishing internal controls and harmonizing economies 0 Can t have great differences in economic policies varying between countries 0 This reduced the significance of borders 0 But harmonizing is hard btw countries with so many differences and baggage Single Currency 0 An economy can t work without this 0 Benefits 0 1 You won t have translation risks 0 2 You won t have transaction costs banks usually get a cut of the money you try to convert o Stronger countries latched onto this idea because they benefit from exposure and control of the market o Weaker countries supported it because in order for their economies to grow they must borrow o Drawbacks o 1 Exchange risk I Meant that countries could borrow at a cheaper rate but if that does not generate income than they have to keep borrowing Greece EMU did 2 things for integration 1 Pooling sovereignty 2 Symbolic lt created a new identity with a new currency And the slow integration of economic power You need a central bank to set interest rates and regulate monetary flow but whose economy do you use for it The Eurozone 0 But this also means that if your country is doing poorly you can t pull yourself out of a recession
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