The Politics of Globalization
The Politics of Globalization INTB 3352
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WEEK 2 LECTURE OUTLINES FOR Transforming Today s Students into Tomorrow s Global Citizens The article is in Week 13 Folder N 9 5 De ne global citizenship and explain the three main aspects of global citizenship p6 amp 18 Global citizenship is the recognition that individuals in the 21st century have rights ie Universal Declaration of Human Rights duties ie having commitment to civic participation and informed opinion that extends beyond selfinterest identity recognizing that citizenship can exist on multiple levels Global citizenship is not about promoting a particular ideology or political perspective It is about fostering an awareness of how our world works What is global competency and are US undergraduate students prepare to undertake the challenges of a globalized environment p7 Recent studies indicate that US students are unprepared to undertake the challenges of a globalized environment Indeed global competency the ability to understand the interconnectedness of today s world is lacking among many American undergraduates Only 1 of college students travel abroad and 92 of US undergraduates do not take any foreignlanguage classes What should be taught to students regarding global citizenship p6 amp8 In learning about global citizenship students should be introduced readings taken from as many locations as possible Knowing that intergovernmental organizations can promote global citizenship but that these organizations are not independent of the nationstates themselves knowing multinational corporations can adopt policies that can foster global citizenship but that these corporations care about the bottom line and knowing non governmental organizations can represent disadvantage groups but these organizations are not necessarily accountable to anyone What are some key methods that can be utilized in teaching globalization p9ll In understanding the experiences of others service learning at local national and international levels is an important tool for students to transform students while solving public problems and making connections between theoretical content for a course and their servicelearning experiences Study abroad can also enrich 39 n which has the potential to open the minds of participants and the host alike Technology through live chats participation in online courses video conferencing can connect students to the global 3 actors they have their roles amp drawbacks READING GUIDE FOR Click to Read Ethics Must Be global Not Local What is situation ethics And What are the consequences of situation ethics in the context of businesses going global p 1 based on exible pragmatic approaches to complex dilemmas Applying quotsituation ethicsquot in developing countries is the fastest way to destroy a global organization To sustain their success companies must follow the same standards of business conduct in Shanghai Mumbai Kiev and Riyadh as in Chicago What is the Foreign Corrupt Practices Act FPCA p 1 In the 19705 the Foreign Corrupt Practices Act FPCA sent a chill throughout the business community by criminalizing the act of making payments outside the US in pursuit of contracts Yet the practice persisted Many US executives lobbied to relax the FPCA39s provisions arguing that they were at a competitive disadvantage in bidding against nonUS companies What are some shortcomings despite that good ethics is good business p2 Managers turn a blind eye due to profits amp some businesses don t have a zero tolerance policy The bottom line is that good ethics is LINK What 1 N Equot LINK good business There is a direct correlation between behaving ethically and creating longterm shareholder value Furthermore high integrity in external business dealings goes hand in hand with creating greater transparency and increased integrity in internal relationships This necessitates choosing leaders who are not only ethical themselves but also committed to ensuring their organizations operate ethically at all times Global Ethics Beyond Local Leadership are the three methods for developing global ethics What is a shortcoming of each method Searching for Parallels The ethicist searches for parallels in the ethical traditions of East and West and develops these into a global unity Finding the appropriate global lawyers ethic will not be easy because of different legal and ethical traditions Even with the best goodwill it is hard to come to common views This has been shown in the dif culty of formulating a code of conduct for lawyers at the International Criminal Court International Bar Association undated Those responsible for formulating the Code were unable to find parallels in some areas of legal system and thus of legal ethics Seeking the Lowest Common Denominator The second method is almost a caricature of the first Here the ethicist only takes into account where there is agreement in ethical traditions already acceptable to East and West The advantage of such a search is that it gives a rapid though very limited consensus But it ignores disagreements Seeking the Best Practice Many international businesses examine their operations around the world to find which division has the best practice That best practice can then be applied internationally We can also do this in the eld of ethics Searching for the best practice is both pragmatic and respectful of the many varieties of Eastern and Western ethics Inside the KnockoffTennisShoe Factory What does the term zhanshai imply regarding counterfeiting in China and what are it s implications shanzhai a term that translates literally into mountain fortress in contemporary usage it connotes counterfeiting that you should take pride in There are shanzhai iPhones and shanzhai Porsches The distinction between shanzhai and counterfeiting Shanzhai shows the cultural creativity of the common people Liu said It fits a market need and people like it We have to guide shanzhai culture and regulate 39t WEEK 3 The Four Ps of Globalization What are the four Ps 1 The Phenomenon of Globalization Globalization is a not a novel phenomenon It has occurred in three distinct waves In the first wave the age of discovery 1450 1850 globalization was decisively shaped by European expansion and conquest The second wave evidenced a major expansion in the spread and entrenchment of European empires The contemporary globalization 1960 on is defined by the technologicalcommunication revolution so that today the microchip and the satellite are icons of a globalized order The Process of Globalization The process of globalization is driven by three engines technics technological change and social organization economics markets and capitalism and politics power interests and institutions 0 Technics is central to any account of globalization since it is a truism that without modern communications infrastructures in particular a global system or worldwide economy would not be possible Economics is crucial as technology Capitalism s insatiable requirement for new markets and profits lead inevitably to the globalization of economic activity 00 0 Politics is a shorthand for ideas interests and power If technology provides the physical infrastructure of globalization politics provides its normative infrastructure in which governments have been critical actors in nurturing the process of globalization 3 The Patterns of Globalization Globalization to varying degrees is evident in all the principal sectors of social activity 0 Economic in the economic sphere patterns of worldwide trade finance and production are creating global markets and in the process a single global capitalist economy or global informational capitalism Military the global arms trade the proliferation of weapons of mass destruction the growth of transnational terrorism and the growing significance of transnational military corporations point to the existence of global military order 0 Legal the expansion of transnational and international law from trade to human rights alongside the creation of new world legal institutions which is indicative of an emerging global legal order 0 Ecological a shared ecology involves shared environmental problems from global warming to species protection 0 Cultural involves a complex mix of homogenization and increased heterogeneity given the global diffusion of popular culture global media corporations etc simultaneously with the reassertion of nationalism ethnicity and difference 0 Social shifting patterns of migration from South to North and East to West have turned migration into a major global issue 4 The Philosophy of Globalization The philosophy of globalization entails the reality of being interconnected Peoples39 economic political and cultural expectations are converging Despite the September 11 2001 terrorist attacks and the 2008 financial crisis the world is or may be more integrated than it had ever been before 0 Postwar Juncture Timeline What is a postwar juncture And What are the three factors that allow the winning state to transform the international system In accordance with John Ikenberry s After Victory Institutions Strategic Restraint and the Rebuilding major postwar junctures are strategic moments that provide opportunities for leading states to put forward new rules and principles of international relations and by doing so reshape international order To do this the leading states must have incentives to resort to institutional strategies as means to restraint indiscriminate and arbitrary state power as well as locking in a favorable and durable postwar order The above is shaped by two factors 1 the extent of power disparities after the war in which the greater the power disparities the greater incentives for weaker and secondary states to establish institutional agreements that reduce the risks of domination or abandonment and 2 the types of states that are party to the settlement in which democratic states have greater capacities to enter into binding institutions and thereby reassure the other states in the postwar settlement than nondemocracies So that while international politics is thought to be anarchic there indeed has been a movement in the direction of institutionalized settlement and constitutional order in which international politics like domestic politics has been tamed Yet if wars between states are becoming less common wars within them are on the rise especially as terrorism is becoming the weapon of the weak Moreover the intensiveextensive global economy that has resulted in complex interdependence could at the same time produce economic crises or post economic crises that can alter the international order much like the postwar junctures 3 incentives must have incentives to want to be able to make changes necessary What are the two Views on 911 as a postwar juncture Call the September 11 2001 terrorist attacks be considered a postwar juncture While after 911 the United States with international support attempted to transform the Middle East and to a lesser extent Southeast Asia through building an order based on constitutional and democratic institutions there are high risks of transnational terrorism explosions in those regions as a result NO Clash of Globalizations by Stanley Hoffman If wars between states are becoming less common wars within them are on the rise and especially in which terrorism is becoming the weapon of the weak In particular because transnational terrorism could be seen as a product of globalization the US and its allies are being challenged in containing transnational terrorism After 911 globalization has not profoundly brought about changes in peoples citizenship and that international civil society remains embryonic YES Will US Democratization Policy Work by Lorne Craner Despite setbacks adjustments and hurdles there is cause for optimism that democracy can take root in the Middle East Before 911 changes in the region were underway and now women have the right to vote in Kuwait multiparty elections in Egypt growing government stability in Iraq and elected parliament in Afghanistan Democracy is a longterm investment and when coupled with diplomatic commitment it works What are the two Views on the 2008 nancial crisis in the context of the end of history Can the 2008 financial crash transform the end of history The international order has been underlined via intergovernmental institutions and an intensiveextensive global economy of which have facilitated complex interdependence and restrained the exercise of hard power Such transformation is likely to curb major world wars from emerging But in an international order that is ever more interdependent economic crises or post economic crises are likely to transform the international system Yes with a new center of power The Great Crasha 2008 by Roger Altman After financial crisis US and the EU will neither have the resources nor the economic credibility to lead global affairs The world s center of gravity is shifting to China which could expand its diplomatic presence or soft power in the developing world to further its model of capitalism and to secure scarce resources in order to achieve global power status Yes with erosion of dictatorships Is It 1848 All Over Again by Gustavo de las Casas The 1848 recession unlike the 1930s heralded democratic reforms in the major powers of Austria France and Prussia as well as smaller kingdoms like Bavaria Saxony Denmark and Sardinia Drawing parallels to 1848 the 2008 recession will force current authoritarian states to hasten change to prevent mass revolts or hasten change to make them stop This may foster reforms in hiiddle Easter monarch states Belarus Burma Cuba Zimbabwe and North Korea Conceptualizing Globalization governance civil than in 1890s extensive globalization 01quot 01quot on state acquiescence amp state power amp world politics Concepts of the Political Economy Liberalism Marxism Mercantilism Interpretation of Winners and Losers Table A Typ logy for Interpretations of Wi mers and Losers Winners and Losers are Natural Winners and Losers are Winners and Losers are Winners and Losers Inevitable and Evolutiona NIE Socially and Politically In uenced by Outliers Through Generated SPGL Feminist Economics Click to Read More Click to Read More Click to Read More Click to Read More Ecological Social Darwinism Political ecology NA NA interpretations Environmental determinism Economic Neoclassical economics Marxian political Seizing Singular Sexual Division of Labor interpretations economy Opportunities in the Household WEEK 4 LECTURE OUTLINES FOR Assessing Globalization Clickto Read Growth After the Crisis See Figure l on p34 Figure 4 on page 37 and Figure 5 on page 0 Who were the main growth champions from the 1950s to 2005 and explain their growth Japan China amp South Korea transition from agriculture to industrial economy thru government subsidizing o What has been shown to be correlated with high economic growth A net export of capital correlates with high economic growth creating private profitability in trade encouraging smallmedium businesses to grow 0 What are the prospects for developing countries in the current nancial slowdown There is a good opportunity for the poor to catch up with the rich but they have to reform like in the 1st question READING GUIDE FOR Assessing Globalization State ofthe World s Cities by UN s Habitat PDF in Week 4 Folder 1 How are cities de ned And why is the 21St century the century of the city p 1213 Cities contain both order and chaos they are the physical manifestation of history and culture and incubators of innovation industry technology entrepreneurship and creativity Cities drive national economies by creating wealth enhancing social development and providing employment but they can also be the breeding grounds for poverty exclusion and environmental degradation The 21st century is the Century of the City meaning half of the world s population already lives in urban areas and by the middle of this century most regions of the developing world will be predominantly urban 2 What are the main trends in cities becoming more unequal in developing countries And what are the consequences of urban inequality in developing countries p15 High levels of inequality in cities can lead to negative social economic and political consequences that have a destabilizing impact on societies Inequalities create social and political fractures within society that can develop into social unrest This is particularly true in places experiencing both high levels of inequality and endemic poverty which increase the risk of political tension and social divisions that can threaten national security and economic development Social unrest and insecurity in turn reduce incentives for investment and force governments to increase the amount of public resources devoted to internal security resources that might have otherwise been spent on more productive sectors of the economy or on social services and infrastructure The benefits of economic growth are not realized in societies experiencing extremely high levels of inequality and poverty Recent evidence shows that societies that have low levels of inequality are more effective in reducing poverty levels than those that are highly unequal Economic growth bene ts larger groups of people and is absorbed better by egalitarian societies than by those where disparities between the rich and the poor are very wide as the former tend to concentrate the bene ts of wealth creation leaving the majority behind Inequalities also have a dampening effect on economic ef ciency as they raise the cost of redistribution and affect the allocation of resources for investment 5quot Why is important for cities to be well planned and managed in regard to environmental harmony p16 Cities that are not properly planned or managed can be a burden on natural resources and can easily threaten the quality of the air and water thereby negatively impacting the natural and living environment Because of their compact form and economies of scale cities offer major opportunities to reduce energy demand and to minimize pressures on surrounding land and natural resources Well planned and wellregulated cities hold the key not only to minimizing environmental losses but to generating creative solutions to enhance the quality of the environment and to mitigate the negative consequences of climate change However if cities can harness the inherent advantages that urbanization provides they can in fact be part of the solution to global environmental challenges including the rise in greenhouse gas emissions brought about by fossil fuel consumption Although cities and urbanbased activities are usually blamed for the increase in greenhouse gas emissions globally evidence suggests that these emissions are more related to consumption patterns and gross domestic product GDP per capita than they are to urbanization levels per se PPT The Cnmnetitive quot d ofNations 0 Why is increasing competitiveness essential to a country s prosperity Slide 3 The Changing Nature of Domestic and International Competition Falling barriers to trade and investment Globalization of markets Globalization of capital investment Globalization of company value chains Rapidly increasing stock and diffusion of knowledge Increasing knowledge and skill intensity of competition Value is increasingly concentrated in service functions not manufacturing activities themselves Shift from vertical integration to relying on outside suppliers partners and institutions Rising logistical costs due to costs of energy and emissions Costs in China and India are rising rapidly Competitive upgrading is occurring in many countries Improving competitiveness is increasingly essential to a country s prosperity 0 Explain the main the features of competitiveness Slide 5 o Competitiveness depends on the productivity with which a nation uses its human capital and natural resources 0 Productivity sets the sustainable standard of living wages returns on capital returns on natural resources that a country can sustain It is not what industries a nation competes in that matters for prosperity but how productively it competes in those industries Productivity in a national economy arises from a combination of domestic and foreign rms The productivity of local or domestic industries is fundamental to competitiveness not just that of export industries Nations compete to offer the most productive environment for business The public and private sectors play different but interrelated roles in creating a productive economy 0 O 0 OO 0 What are the two determinants of competitiveness and What do they have to say about the rise of China as a superpower Slide 4 amp 6 1 39 39 C r quotquot I ultimately depends on improving the microeconomic capability of the economy and the sophistication of local competition 0 Quality of the national business environment 0 State of cluster development 0 Sophistication of company operations and strategy 2 Macroeconomic Competitiveness creates the potential for high productivity but is not sufficient 0 Social infrastructure amp political institutions 0 Macroeconomic policies China is not as competitive as the US thus making it dif cult for them to become a SuperPower LINK Top 50 Fmerging Global 39 Cities 2009 o What are the only two cities not in India that are on the Top 8 Global Sourcing Cities p22 1 Manila The Philippines 2 Dublin Ireland 0 What countries top the list of the Top 5 Offshore Nations p1118 1 India 2 The Philippines 3 China 4 Ireland 5 Brazil 0 What countries top the list of the Next 5 Offshore Nations p18 1 Canada 2 Russia 3 Mexico 4 Vietnam 5 Poland WEEK 5 LECTURE OUTLINES FOR Richard Haass The Age of Nonpolarity PDF in Week 5 Folder The Nonpolarity Order 0 Describe the principal characteristics of nonpolarity A world dominated not by one or two or even several states but rather by dozens of actors possessing and exercising various kinds of power This represents a tectonic shift from the past That is in addition to the six major world powers there are numerous regional powers Brazil and arguably Argentina Chile Mexico and Venezuela in Latin America Nigeria and South Africa in Africa Egypt Iran Israel and Saudi Arabia in the Middle East Pakistan in South Asia Australia Indonesia and South Korea in East Asia 0 Which structure system is the thought to be most stable What system is thought to be least stable The twentieth century started out distinctly multipolar But after almost 50 years two world wars and many smaller conflicts a bipolar system emerged Then with the end of the Cold War and the demise of the Soviet Union bipolarity gave way to unipolarityan international system dominated by one power in this case the United States IN CONTRAST to multipolaritywhich involves several distinct poles or concentrations of power a nonpolar international system is characterized by numerous centers with meaningful power In a multipolar system no power dominates or the system will become unipolar Nor do concentrations of power revolve around two positions or the system will become bipolar Multipolar systems can be cooperative even assuming the form of a concert of powers in which a few major powers work together on setting the rules of the game and disciplining those who violate them They can also be more competitive revolving around a balance of power or conflictual when the balance breaks down 0 Explain Why US power and in uence are less and less linked in an era of nonpolarity In this world the United States is and will long remain the largest single aggregation of power However power and in uence are less and less linked in an era of nonpolarity For example China proved to be the country best able to in uence North Korea39s nuclear program Pakistan meanwhile has repeatedly demonstrated an ability to resist US entreaties as have Iran North Korea Venezuela and Zimbabwe US calls for others to reform will tend to fall on deaf ears US assistance programs will buy less and USled sanctions will accomplish less Nonpolarity More than a Moment of Disorder Describe two fundamental ways in which globalization will continue to reinforce nonpolarity p3 Globalization has increased the volume velocity and importance of crossbar der ows of just about everything from drugs em ails greenhouse gases manufactured goods and people to television and radio signals viruses virtual and real and weapons Globalization reinforces nonpolarity in two fundamental ways First many crossborder flows take place outside the control ofgovernments and without their knowledge As a result globalization dilutes the in uence of the major powers Second these same ows o en strengthen the capacities of nonstate actors such as energy exporters who are experiencing a dramatic increase in wealth owing to transfers from importers terrorists who use the Internet to recruit and train the international banking system to move resources and the global transport system to move people rogue states who can exploit black and gray markets and Fortune 500 firms who quickly move personnel and investments Explain the threats and vulnerabilities of nonpolarity p3 Nonpolarity will also increase the number of threats and vulnerabilities facing a country such as the United States These threats can take the form of rogue states terrorist groups energy producers that choose to reduce their output or central banks whose action or inaction can create conditions that affect the role and strength of the US dollar The Federal Reserve might want to think twice before continuing to lower inter est rates lest it precipitate a further move away from the dollar There can be worse things than a recession Explain how nonpolarity complicates diplomacy p5 Nonpolarity complicates diplomacy A nonpolar world not only involves more actors but also lacks the more predictable fixed structures and relationships that tend to define worlds of unipolarity bipolarity or multipolarity Alliances in particular will lose much of their importance if only because alliances require predictable threats outlooks and obligations all of which are likely to be in short supply in a nonpolar world Relationships will instead become more selective and situational It will become harder to classify other countries as either allies or adversaries they will cooperate on some issues and resist on others There will be a premium on consultation and coalition building and on a diplomacy that encourages cooperation when possible and shields such cooperation from the fallout of inevitable disagreements The United States will no longer have the luxury of a quot You39re either with us or against usquot foreign policy In what ways can United States reduce the chances that a nonpolar world will become a cauldron of instability p45 The United States can and should take steps to reduce the chances that a nonpolar world will become a cauldron of instability This is not a call for unilateralism it is a call for the United States to get its own house in order Unipolarity is a thing of the past but the United States still retains more capacity than any other actor to improve the quality of the international system The question is whether it will continue to possess such capacity The United States needs to enhance its capacity to prevent state failure and deal with its consequences Energy usage Current levels of US consumption and imports in addition to their adverse impact on the global climate fuel nonpolarity by funneling vast financial resources to oiland gas producers Reducing consumption would lessen the pressure on world prices decrease US vulnerability to market manipulation by oil suppliers and slow the pace of climate change I Homeland securitycombating terr orism steps to make society more resilient something that requires adequate funding and training of emergency responders and more exible and durable infrastructure The goal should be to reduce the impact of even successful attacks Resisting the further spread of nuclear weapons and unguarded nuclear materials given their destructive potential may be as important as any other set of undertakings Security assurances and defensive systems can be provided to states that might otherwise feel compelled to develop nuclear programs of their own to counter those of their neighbor s Robust sanctionson occasion backed by arm ed forcecan also be introduced to in uence the behavior of wouldbe nuclear states Combating terrorism is also essential if the nonpolar era isnot to turn into a modern Dark Ages There are many ways to weaken existing terrorist organizations by using intelligence and law enforcement resources and military capabilities TradeInvestm ents It gives states a stake in avoiding con ict because instability interrupts beneficial commercial arrangements that provide greater wealth and strengthen the foundations of domestic political order Trade also facilitates development thereby decreasing the chance of state failure and alienation among citizens A similar level of effort might be needed to ensure the continued ow of investment The goal should be to create a World Investment Organization that would encourage capital ows across borders so as to minimize the chances that quotinvestment protectionismquot gets in the way of activities that like trade are economically bene cial and build political bulwarks against instability READING STUDY GUIDE FOR State Capitalism and the Crisis PDF in Week 5 Folder A N What is state capitalism and how is this playing out in the energy market p3 State capitalism is an economic system in which governments manipulate market outcomes for political purposes Governments embrace state capitalism because it serves political as well as economic purposes not because it s the most efficient means of generating prosperity It puts vast financial resources within the control of state officials allowing them access to cash that helps safeguard their domestic political capital and in many cases increases their leverage on the international stage But state capitalism also stems the rise of globalization because to varying degrees it hampers the ow of ideas information people money goods and services within countries and across international borders The world s 13 largest oil companies measured by the reserves they manage are now controlled by governments Exxon Mobil the largest of the multinationals ranks 14th in the world and collectively multinational oil companies produce just 10 of the world s oil and gas and hold about 3 of its reserves Statecontrolled companies now are in charge of more than 75 of global crude oil reserves Multinationals continue to hold competitive advantages in development and production of deepsea and other technically dif cult projects but this advantage is eroding as the better managed of the national champions learn from the industry leaders Explain the role of sovereign wealth funds and their role in nancing state capitalism And what is the effect of state capitalism in the financial markets p34 China and Russia are leading the way in the strategic deployment of stateowned enterprises and other governments have begun to follow their lead Such statecorporate activity is fueled in part by the emergence of a new class of sovereign wealth funds States with large holdings in the currencies of other countries are establishing ever larger risktaking funds meant to maximize their return on investrn ent and their political in uence With the global credit squeeze making funds harder to come by sovereign wealth funds have become even more important for the financing of state capitalism The global recession has accelerated the trend of state involvement in markets as governments around the world spend billions to stimulate growth and bail out vulnerable domestic industries and companies The need for political leaders of the G20 nations to build consensus behind the establishment of new rules for nancial institutions and more reliable international oversight will add to the trend These governments may be reluctant state capitalists forced into the role by political necessity but the effect is the same a bigger dose of politics in the financial markets 3 Who are the potential winners and losers in state capitalism p4 As the landscape shifts around 4 1439 LINK them international companies and investors will discover that the largescale injection of politics into market processes will produce its own set of winners and losers Because political factors unique to each state will determine the response to each domestic economic slowdown countries with relatively strong political fundamentals will have a better shot at a quick recovery For example the Chinese Communist Party has elite deep reserves of political capital and a surge of national pride has helped the leadership ease public fear fend off criticism and shift blame for the slowdown onto corrupt Western capitalists Given the vast sums its government can spend on fiscal stimulus China will likely emerge from the global recession before most of the developed world In Brazil the President has over the past several years forged a durable consensus in favor of disciplined macroeconomic policy His ability to maintain both high approval ratings and strong fiscal balances will help his government stimulate Brazil s economy through both state spending and openness to foreign investment In contrast in Russia a sharp economic slowdown could expose fault lines within the ruling elite which may polar ize policy debates and trigger largescale capital flight In Ukraine toxic rivalries among the president prime minister and primary opposition leader have largely paralyzed the country s parliament In Pakistan a coalition government with far more rivals and enemies than partners and friends won t have the time or space to implement needed reforms that would save an already demoralized public from still more nearterm hardship What are the secondorder effects as result of state capitalism p5 We re likely to see new restrictions on the access to certain foreign markets for some companies The politicians trying to help rescue their domestic economies aren t making choices with the global economy in mind They re primarily interested in bolstering their personal stores of political capital by serving and protecting their most powerful constituents be they local voters political benefactors or powerful industries and interest groups They will have plenty of opportunities to favor local companies at the expense of their foreign competitors As governments throw up barriers to trade and investment meant to keep local workers employed through the next election global companies doing business in those countries may find themselves at a disadvantage Some may even face the expropriation of their assets Politicians will turn incr easineg toward a familiar and reliable tool subsidies Never mind that many governments may no longer be able to afford them political officials will protect wellconnected local companies particularly while access to cash is at a premium depriving foreign companies and the lesswellconnected domestic rms with which they sometimes partner of their competitive edge The financial crisis will encourage governments around the world to reshape their regulatory environments changing the rules of the game for both foreign and domestic companies Will state capitalism reverse in the near future p 56 It s highly unlikely The global nancial crisis has not pr oven that governmentengineered growth can outstrip the expansion of wellr egulated free markets over the long term Globalization does not depend on the wisdom of political of cials for its dynam ism That s the primary reason it will almost certame withstand the state capitalist challenge corporate leaders and investors must recognize that globalization is no longer the unchallenged international economic paradigm and that politics will have a profound impact on the performance of markets for many years to come The Case for a League of T The current concert of democracies originated from Whom p 1 The idea of a concert of democracies originated not with Republicans but with US Democrats and liberal inter nationalists Madeleine AIbright former secretary of state tried to launch such an organization in the 1990s More recently it is the brainchild of Ivo Daalder a foreign policy expert and senior adviser to Barack Obama It has also been promoted by AnneMarie Slaughter dean of the Woodrow Wilson School at Princeton University and professor John Ikenberry the renowned liberal internationalist theorist It has backers in Europe too such as Anders Fogh Rasmussen the Danish prime minister who recently proposed his own vision of an alliance of democracies The fact that Mr McCain has championed the idea might tell us something about his br oadmindedness What role does the league of democracies play in relation to the UN p2 Aleague of democracies would also promote liberal ideals in international relations The democratic community supports the evolving legal principle known as the responsibility to protect which holds leaders to account for the treatment of their people The world s democracies could make common cause to act in humanitarian crises when the UN Security Council cannot reach unanimity LINK Wide Dissatisfaction with Capitalism PDF le under Week 5 Folder 0 What are the Views on free market capitalism p 1 The most common view is that free market capitalism has problems that can be addressed through regulation and reform a view held by an average of 51 of more than 29000 people polled Appx 23 feel that capitalism is fatally awed and a new economic system is needed amp appx 11 believe it works well and increased regulation will make it less efficient What are the Views on the role of government in managing the economy p3 Majorities would like their government take a more active role in owning or directly controlling their country s major industries distributing wealth more evenly and doing more to regulate business WEEK 6 LECTURE OUTLINES FOR Click to read Water Wars The Rise of a 1 39 Concept 0 Explain the main features of water wars 67 The idea of a causal link between water scarcity and war has grown over the past twenty years to the point that it could become ideologically hegemonic The idea that competition for water in waterscarce areas constitutes the greatest danger of war was growing to be taken as a given an unquestionable fact of life As the causal link between water scarcity and war remained unchallenged the relevant question appeared to be quantitative how much renewable water existed within the boundaries of every state How much constituted scar city Engineers and hydrogeologists produced numerous studies detailing the various quantities of water available to every state in arid zones especially in the Middle East Turkey Lebanon and Iraq were deemed to have adequate water supplies while Israel Jordan the West Bank and the Gaza Strip lay beyond the water barrier Such inequality was deemed highly dangerous as it was thought it could propel the water poor states to wage war on the waterrich states 0 Explain the main features of water peace p7 A second school of thought emerged throughout the 19905 denying the causality between water scarcity and international war States face water scarcity rationally and cooper ate in order to solve these problems simply because that is the most rational thing to do Calculating water stress indicators on the basis of the agricultural production capacity does not make it possible to predict the likelihood of war among states In what is probably the most ambitious survey of water crises and treaties around the world carried out so far Aaron Wolf 1998 argued that water has brought about much more interstate cooperation than con ict He analyzed 412 crises among riparian states between 1918 and 1994 and identified only seven cases where water issues contributed to the dispute Wolf 1999 Empirical evidence thus seems to corroborate this school of thought No state in its right mind would ever go to war for a stake that was worth so little said Baskin 1994 The authors promoting this second school of thought argued that states face water scarcity rationally and cooperate in order to solve these problems simply because that is the most rational thing to do 0 Who bene ts from the water war concept 1011 The social groups that benefit from hegemonic concepts are not necessarily the ones that propagate and maintain the hegemony of these concepts Identifying who bene ts from the water war concept and who propagates it is worthwhile For example few politicians have propagated the water war concept as bluntly as Raphael Eitan when he was minister of agriculture He ran a fullpage advertisement in the Jerusalem Post in the late 19805 arguing that Israel had no choice but to maintain the occupation of the West Bank in order to secure its access to water Another set of social actors in Israel has benefited from the propagation of the belief in water wars the companies that would bene t om building desalination plants Several Palestinian social actors have also benefited from the propagation of the water war concept In a careful analysis of the evolution of Palestinian social structure Glenn Robinson showed how three fundamental drives weakened the power of old Palestinian notable families a er 1967 First wage labor in Israel attracted the poorest and led to the virtual elimination of the Palestinian peasantry which decreased the rural reliance on notable patronage Second land con scations carried out by the Israelis undermined the very basis of the notables power Third Palestinian universities were set up after 1972 and started producing a new elite that began a process of political mobilization in the 1980s READING STUDY GUIDE FOR Growing Links in Energy and Geopolitics PDF of the article is posted in Week 5 folder 0 What is the consequence of China being at the center of the PanAsian Global Energy Bridge p2 China 5 extending its Central Asian land routes from Kazakhstan and Turkmenistan and then down to northern Iran is seen as a visionary Sino Arabic oil passage to the Gulf ports Similar natural gas projects are under work or consideration linking China to Central Asia and Russia These corridors could eventually position the Middle Kingdom at the centre of a quot Pan Asian Global Energy Bridgequot that will connect existing and potential suppliers to Asia ie the Gulf Central Asia and Russia with the key consumers China Japan and Korea If successfully implemented this will not only largely improve the energy security of China but also will enhance Beij ing s geopolitical in uence in this geography As the international energy sector has undergone significant changes since the beginning of this century due to the emergence of new players and the changing of dynamics am orig all players the resultant energy scene requires adjustments to make room for new players in the marketplace Energy security concerns need to be addressed from the standpoints of both consumers and pr oducer 5 Otherwise geopolitical rivalry and tough competition for scarce resources will likely intensify leading to zerosum confrontations What are the four changes in today s world energy p34 l the increased internationalpetroleum prices have together with many other factors shi ed power signi cantly to oil producing countries especially a few large ones where the majority of remaining reserves are located such as the Gulf Russia and Central Asia6 This power coupled with the huge financial assets accumulated by those producers in a high price environment has fuelled the international ambitions of these countries to seek changing or reshaping the traditional rules of the game for the bene t of their national interests7 Some of them such as Russia not only host large share ofworld petroleum reserves but also has the political will to use energy as an instrument to advance its economic and political inter ests8 Aware of their increasing power many of the resource rich countries have either renationalised their oil industries or established strategic control through further transfer of power into the hands of governments9 2 there is an increasing concern of security of energy supply at the consumer s side Due to increased demandand depletion of domestic reserves major oil consumers will have to rely more on imported oil and gas from a few politicallyinstable regions such as the Middle East Africa Russia and Central Asia through longdistance pipelines and vulnerable sea routes 0 This combined with the fact that international oil market is less stable and more prone to the disruption of natural disaster terrorist attack and isolated geopolitical acts increased the vulnerability of these consumer countries 11 although the OECD countries are still the largest oil consumers the current increase demand for oil and gas is mainly driven by fast economic development in developing countries such as India and China which account for one third of the world population but only consume 17 percent of world energy Different from OECD countries these newly emerging major oil consumers are less supportive of free market principles and are guarded by national oil companies that are controlled and supported by their governments In order to access the new and prosperous market government to government relationship is not only necessary but essential a rising security of demand concern of major oil producer countries may prevent large scale of investment from happening To meet the rising energy demand huge amount of investment is needed12 Due to environmental pressure consumer governments around the world are seeking to reduce consumption and reliance on traditional fossil fuels given that the energy sector is the main contributor of emissions of greenhouse gases This rising uncertainty of future consumption level for conventional energy increases the securityofdemand concern of major export countries and impedes much needed investment 9 zquot 0 Who is China s principal supplier of oil p13 And in what ways does this supplier bene t from China p1718 The Middle East remains the principal supplier of China s imported oil needs and will continue to be so in the foreseeable future Traditionally Beijing considered the region too distant for signi cant political engagement and investment and instead limited its efforts to convincing Arab capitals to sever their ties to Chinese Taipei and establish diplomatic relations with the People39s Republic But this era of passivity has come to an end with China realizing its growing dependency on energy supplies from the region since 1993 Beijing views the Middle East not only in terms of its value as a source of oil but also in the context of its huge potential as an oil services market Early in 1979 Chinese labour services companies entered the GCC markets By 2001 China had signed almost 3000 contracts in all six GCC states for labour services worth 27 bn The overseas construction arm of CNPC moved into the Kuwaiti market in 1983 and a major business expansion took place in 1995 when the group won an oil storage reconstruction project in Kuwait Since then China has expanded into oil services in Egypt Qatar Oman and other parts of the Arab world 0 What region offers China the best option to reduce its dependence on the Gulf and help avoid the Malacca dilemma p30 And in which ways do this region bene t from China p36 Central AsianCaspian countries offer the best available option for China to reduce its dependence on the Gulf and help avoid the Malacca dilemma as the transportation from these countries is relatively secure short and by land based pipelines Therefore it is no surprise that China has made this region a cornerstone of its energy security policy in order to diversify its import sources for avoiding the risks of over reliance on one single source of supplier The Caspian Sea with its western shore forming the eastern edge of the Caucasus and its eastern shore marking the beginning of Central Asia is now seen as a significant element of global oil and gas supplies In the early 1990s many sceptics regarded the Caspian Sea region as too backward too unstable and too commercially unattractive to warrant development compared with potential oil ventures in Russia The situation today has reversed completely LINK The business opportunity in conservation PDF of the article is posted in Week 6 folder 0 What does data say about global supply and demand of water by 2030 p3 Many countries face a growing gap between the amount of water they can supply reliably to their economies and the amount they need Assuming continued economic and population growth by 2030 water supplies will satisfy only 60 percent of global demand exhibit and less than 50 percent in many developing regions where water supply is already under str ess including China India and South Africa Clos ing the gap by increasing supply through desalination the drilling of deep wells or transporting surface water will be extremely dif th and expensive More likely governments will need to manage demand either by raising the price of water or by capping the amount of it that users can draw 0 What have companies such as The Swedish pulpandpaper producer SCA and SABMiller started to do Companies in several sectors are improving their water productivity The Swedish pulpandpaper producer SCA for instance aims to reduce its overall water consumption by 15 percent from 2005 to 2010 SCA tracks its performance through a resourcemanagem ent system that collects and aggregates data on energy water transport and raw material use as well as waste and emission levels from both production sites and business divisions The brewing conglomerate SABMiller launched a water footprint study to compare its total water usage from crop to consumer in different countries and has used the findings to target improvements throughout the value chain By 2015 it hopes to use 25 percent less water per liter of beer produced LINK Promoting energy efficiency in developing countries PDF of the article is posted in Week 6 folder 0 Why is it important for policy makers and businesses in developing world to boost energy productivity the output they achieve from the energy they consume now p2 Big gains await developing countries if they raise their energy productivity research by the McKinsey Global Institute MGI has found they could slow the growth of their energy demand by more than half over the next 12 years to 14 percent a year from 3 4 which would leave demand some 25 percent lower in 2020 than it would otherwise have been Policy makers and businest in developing regions must not be deterred from boosting energy productivity the output they achieve from the energy they consume because of the present weakening economic environment and falling oil prices these do not affect the longterm projections in the study1 Time is of the essence developing economies will install half or more of the capital stock that will be in place in 2020 between now and then Every building or industrial plant constructed without optimal energy ef ciency represents a lost opportunity to lock in lower energy consumption for decades 0 What percent do developing regions represent regarding the positiveretum opportunities to reduce global energy demand p3 21pr 66 based on the figure in the article on pg 3 Please follow the below instructions to do the CCR exercise 9 rP 5 Go to the Extra Credit Country Report Exercise1 quotfolder under the Week4 folder Open the excel sheet titled CCR assignments for studentsquot and find the number next to your name the number under the CCR numberquot column Find the folder that corresponds to your number ie ifyour number is 17 go to folder 120 and download CCR number 17 Download the CCR and grade it using the CCR Grading Exercise Evaluation Formquot in the Extra Credit Country Report Exercise1 quot folder Once you are done upload your evaluation form to blackboard using the turnitin link in the Extra Credit Country Report Exercise1quot folder under Week 4 folder