Global Issues in the 20th Century
Global Issues in the 20th Century POLI 210
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August 30 2010 INTS 210 Defining Globalization J an Aart Scholte five broad definitions of 39globalization39 can be found in the literature Globalization as internationalization Globalization as liberalization Globalization as universaliz ation Globalization as westernization or modernization especially in an 39Americanized form 7 Americanization 7 Globalization as deterritorialization or as the spread of supraterritoriality Earlier Periods of Globalization 1 Greek City States 7 Ancient Times 2 Silk Road 7 trade links between city states and Han Dynasty 3 Trading systern centered around Athens Idea of a cosmopolitan culture 4 Islamic Golden Age 7 811113111 century a Spread of trade technology agricultural practices wide adoption of Arabic for completing Haj to Mecca 5 Great Age of Discovery 7 151111739h century a Emergence of Portuguese and Spanish later British and Dutch Empires Growing global migration spread of disease trade in manufactured goods banking and globalization of slavery 6 Industrialization and Modern Imperialism 7 1939112039h century 7 Emergence of modern global capitalism Keynes Marx quotes 8 Postwar 7 1945present 7 Emergence of global financial and political architecture 7 United Nations IMF World Bank World Trade Organization European Union and more Some Data International trade in manufactured goods increased more than 100 times from 95 billion to 12 trillion between 1955 and 2005 by some estimates more than 2 trillion per day in global currency trading nearly a billion tourist arrivals each year A search of more than 40 major Englishlanguage newspapers and magazines found 158 stories that used the word quotglobalizationquot in 199139 2035 in 1995 17638 in 2000 1975 7 7000 multinational corporations by early 2000s an estimated 60000 Quotes Marx The bourgeoisie has through its exploitation of the world market given a cosmopolitan character to production and consumption in every country To the great chagrin of Reactionists it has drawn from under the feet of industry the national ground on which it stood All oldestablished national industries have been destroyed or are daily being destroyed They are dislodged by new industries whose introduction becomes a life and death question for all civilized nations by industries that no longer work up indigenous raw material but raw material drawn from the remotest zones industries whose products are consumed not only at home but in every quarter of the globe In place of the old wants satis ed by the production of the country we nd new wants requiring for their satisfaction the products of distant lands and climes In place of the old local and national seclusion and selfsufficiency we have intercourse in every direction universal interdependence of nations And as in material so also in intellectual production The intellectual creations of individual nations become common property National onesidedness and narrowmindedness become more and more impossible and from the numerous national and local literatures there arises a world literature Keyn es The inhabitant of London could order by telephone sipping his morning tea the various products of the whole earth and reasonably expect their early delivery upon his doorstep Militarism and imperialism of racial and cultural rivalries were little more than the amusements of his daily newspaper What an extraordinary episode in the economic progress of man was that age which came to an end in August 1914 Keynesianism Neoliberalism Some of Keynes key insights 1 Markets are not automatically selfcorrecting What might be individually rational can be profoundly collectively irrational Given these realities capitalism must be managed Macroeconomics emerges as a field aggregate demand demand management countercyclical policies apitalism must be saved from itself LIwa VVVV This yielded a broad polig consensus after WWII 6 Capitalism as managed and redistributive 7 Nationalize declining or strategic industries 8 Class compromise 9 Welfarestate capitalism 10 Global economic architecture 7 IMF World Bank GATT Neo liberalism Markets produce outcomes that are better than any alternative Government intervention results in unintended consequences that are likely to leave society worse off The less role for the state in the economy the better both in terms of economic efficiency and human freedom privatization liberalization including promotion of free trade reduced state regulation labor exibility Adam Smith91t is not from the benevolence 0f the butcher the brewer or the baker that we expect our dinner but from their regard to their selflove and never talk to them of our own necessities but of their advantages quot Frederich Hayek To act on the belief that we possess the knowledge and the power which enable us to shape the processes of society entirely to our liking knowledge which in fact we do not possess is likely to make us do much harm John Maynard Keynes Most probably of our decisions to do something positive the full consequences of which will be drawn out over many days to come cun only be tuken us the result of unimul spiritsia spontaneous urge to action rather than inaction and not us the outcome of u weighted uveruge of quuntitutive benefits multiplied by quuntitutiveprobubilities The long run is a misleading guide to current affairs In the long run we are all dead Economists set themselves too easy too useless a task if in tempestuous seasons they can only tell us that when the storm is past the ocean is at again Margaret Thatcher quotI think we39ve been through a period where too many people have been given to understand that ifthey have a problem it39s the government39s job to cope with it 39I have a problem I39ll get a grant 39I39m homeless the government must house me They39re casting their problem on society And you know there is no such thing as society There are individual men and women and there are families And no government can do anything except through people and people must look to themselves rst Ronald Reagan Government39s view ofthe economy could be summed up in a few short phrases If it moves tax it If it keeps moving regulate it And ifit stops moving subsidize it Market Liberalism that market actors were best left to their own devices market forces are selfcorrecting returning the economy to a healthy equilibrium within some reasonable period of time government interference should be kept to a minimum individuals acting rationally and in their selfinterest would in the aggregate create the most prosperity and the best of all worlds Homo Economicus one thing I should have stressed more fully last time 7 the degree to which this is ull suid to be consistent with humun nuture PolanyiKey Concepts 1 Embedded Markets 2 Fictitious commodities alabor bland cmoney 3 double movements 4 LaisseZfaire was planned planning was not What makes the ctitious commodities signi cant for Polanyi is thisp 75 to include them in the market mechanism is to subordinate the substance of society itself to the laws of the marke And the consequences for society are catastrophicp 76 7 To allow the market mechanism to be sole director of the fate of human beings and their natural environment indeed would result in the demolition of society Counter m oves V food and water inspection acts to regulate child labor including one that made it penal to employ boys under twelve not attending schools and unable to read or write in coal mines Vaccination enforcement Contagious disease act Public libraries act Irrigation and other agricultural policies N V C kIIJAW VVVV John Gray The free market created a new type of economy in which all prices 7 for goods labour etc changed without regard to their effects on society Previously economic life had been constrained by the need to maintain social cohesion Conservative criticisms ofmarkets that human motivation cannot and should not be reduced to material acquisitiveness 2 that there is a place for a community or society to regulate and police moral behavior personal gain de emphasized 3 related to number one that humans are more than their supposedly animalistic impulses 4 that there is something hollow and empty about a secular individualist account of the world 7 with no place in it for a larger purpose no loyalty to place WalMart V LII Nation States Some Key Features of Modern States 0 defined physical territory more or less permanent population 0 since Treaty of Westphalia 1648 sovereignty basic principle of noninterference in internal affairs 0 diplomatic recognition prerogatives of state authority 0 monopoly on the legitimate use of force and coercion 0 state is both a legal and political concept autonomous institutions and legal structures But according to Hobsbawm two key problems that needed to be addressed in the 19 h century Political Problem with downfall of divine rights of kings and the absolute state as well as enlightenment attacks on religious authority how to maintain political legitimacy Answer some form of popular sovereignty Liberal Democracy Economic Problem markets were poorly integrated even within given statebased territories People spoke different languages had vastly different tastes and cultures practices used different currencies standards and measures were hostile to state officials like tax collectors Answer integrated markets maintained and regulated by a competent central authority Capitalism Nationbuilding in the 19th century meant quotthe logical necessary and desirable transformation of nations39 into sovereign nationstates with a coherent territory defined by the area settled by the members of a nation39which was in turn defined by its past history which had to be creatively reconstructed in some cases its common culture it ethnic composition and increasingly its languagequot For the champions of the nationstate assumed not only that it must be national but also that it must be progressive39 ie capable of developing a viable economy technology state organization and military force ie that must be at least moderately large It was to be in fact the natural39 unit ofthe development ofthe modern liberal progressive and de facto bourgeois society Uni cation as much as independence39 was it principle quot The nationstate is not a llspontaneous growthquot llIt had to be actually constructed Hence the crucial importance of the institutions which could impose national uniformity which meant primarily the state especially state education state employmentmiitary servicequot EX at the time of Italian unification in 1860 less than 3 of Italians spoke the Italian language llWe have made Italy now we must make the Italiansquot Schooling was especially important in this regard I1 purpose was by general consent not only to teach the rudiments of literacy and arithmetic but perhaps even more to impose the values of society on their inmates Civics textbook characteristic of French efforts at nationbuilding in the late 19 11 century Society 1 French society is ruled by just laws because it is a democratic society 2 All the French are equal in their rights but there are inequalities between us that stem from nature or from wealth 3 These inequalities cannot disappear 4 Man works to become rich if he lacked this hope work would cease and France would decline It is therefore necessary that each of us should be able to keep the money he has earned Marshall Plan Europe and Japan after WWII 1 Between 1939 and 1946 7 France Belgium the Netherlands and USSR lost more than 20 of their GDP 2 Germany in 1946 was at onethird of its 1938 production levels 3 Italy and Japan in 1946 were equivalent to their 1910 levels Germany 7 1890 Austria 7 1870 4 Another way of saying this Germany had equivalent of 80 of US living standards in 1939 7 and 25 in 1946 Marshall Plan 7 Scope and Goals 1 135 billion in Marshall Aid after WWII another half billion to Japan According to Frieden as a of US GDP in 2000 dollars this would be the equivalent of half a trillion dollars In in ation adjusted terms over 100 billion 2 In exchange for aid countries adopt policies generally consistent with liberal economic principles 7 relative openness to trade primacy of market forces Goals include rebuild infrastructure stimulating investment allow European governments to provide basic W V standard of living for citizens to ensure social peace fend off communism and socialist left 4 V Reconciling belief in capitalism markets and global integration on the one hand with social reform and welfare state on the other 7Keynesianism Other key policies in the 1950s and 1960s and their effects a high tariffs on US imports to Europe which gives a competitive legup to European industries b The high European tariffs also encourage many American industries to locate operations in Europe in order to sell in Europe more easily Example General Electric quadrupled the number of factories it operated in Europe between 1949 and 1969 c Fixed exchange rates d Basing of hundreds of thousands of US soldiers in Europe and tens of thousands more in Japan also had economic bene ts What was the consequence of all this 1 2 UI 4amp0 VVV 0 V a massive shift in production Western Europe s per capita output more than doubled between 1948 and 1964 Japan sees eightfold increase in production in 25 years In ation adjusted production in all the advanced industrial economies combined tripled between 1948 and 1973 selective globalization 1948 7 The US produced 57 of the world s manufactured goods 1973 ithis gure had dropped to 22 Triad s share increased from 15 to 30 By 1970s Europe had become food selfsufficient whereas in 1940s US had produced much of the food consumed by Japan and Europe US wages doubled in real terms between 1950 and 1970 Triad wages by more Challenges facing Third World or Developing Areas after W W11 1 Low income countries or areas 2 Largely agrarian 3 began modern history as a colony of one of the former imperial powers of Europe or Asia Modernization TheorV Some Kev Modern Societies 1 LIme VVVV Affective neutralit Selforientation 7 individualism selfinterest Universalism Achievement orientation Functional speci city These were contrasted with what were seen as the main attributes of so called traditional society 1 2 3 4 Lack of ambition Fatalism Conservatism Oriented to immediate needs not futureoriented Rostow Stages of Economic Growth V khwa VVVV traditional stage Preconditions for takeoff Takeoff Drive to Maturity Age of Mass consumption Truman More than half the people of the world are living in conditions approaching misery Their food is inadequate They are victims of disease Their economic life is primitive and stagnant Their poverty is a handicap and a threat both to them and to more prosperous areas For the rst time in history humanity possesses the knowledge and the skill to relieve the suffering of these people The United States is preeminent among nations in the development of industrial and scienti c techniques The material resources which we can afford to use for the assistance of other peoples are limited But our imponderable resources in technical knowledge are constantly growing and are inexhaustible Our aim should be to help the free peoples of the world through their own efforts to produce more food more clothing more materials for housing and more mechanical power to lighten their burdens Escobar The Truman doctrine initiated a new era in the understanding and management of world affairs particularly those concerning the less economically accomplished countries of the world The intent was quite ambitious to bring about the conditions necessary to replicating the world over the features that characterized the advanced societies of the time high levels of industrialization and urbanization technicalization of agriculture rapid growth ofmaterial production and living standards and the widespread adoption of modern education and cultural values Modernization TheorV Two problems for Third World 1 lack of capital 2 wrong cultural habits 7 no pro t motive to make them entrepreneurial American some observers argue drives the 39 quot and non conflict based quot ofthis theory 1 everyone is headed in the same direction it s a good direction that everyone should be encouraged to follow 2 development is easy 7 all good things 7 economic growth and democracy go together 3 extremism and revolution are unnecessary 7 pursuit of selfinterest leads to greater good no social con ict 4 One size ts all Dependency Theory critigue of modernization theory 1 ethnocentrism west equated with modernity prosperity progress desirable social organization 7 rest with tradition barbarism etc V 2 na39r39ve optimism 7 based on relatively smooth development of US 7 also ignored less smooth features of US development 7 slavery civil war 3 failure to recognize economic dependence especially colonial legacies More Key Concepts 1 Declining Terms of Trade 2 Stateled Development 3 CenterPeriphery Relations 4 Comprador Classes Criticisms of Dependeng Theory 1 failure to distinguish between peripheral countries 7 neglect of politics na39139ve about the possibilities and limits of social transformation accepted key assumptions of modernization theory JAWN VVV Ivan Ilich Rich nations now benevolently impose a straightjacket of traffic jams hospital confrnements and classrooms on the poor nations and by international agreement call this quotdevelopmentquot The rich and schooled and old of the world try to share their dubious blessings by foisting their prepackaged solutions on to the Third World Traffic jams develop in Sao Paolo while almost a million northeastern Brazilians ee the drought by walking 500 miles Latin American doctors get training at the New York Hospital for Special Surgery which they apply to only a few while amoebic dysentery remains endemic in slums where 90 percent of the population live A tiny minority gets advanced education in basic science in North Americainot infrequently paid for by their own governments If they return at all to Bolivia they become secondrate teachers of pretentious subjects at La Paz or Cochibamba The rich export outdated versions of their standard models Each car which Brazil puts on the road denies fty people good transportation by bus Each merchandised refrigerator reduces the chance of building a community freezer Every dollar spent in Latin America on doctors and hospitals costs a hundred lives to adopt a phrase of Jorge de Ahumada the brilliant Chilean economist Had each dollar been spent on providing safe drinking water a hundred lives could have been saved Buses are alternatives to a multitude of private cars Vehicles designed for slow transportation on rough terrain are alternatives to standard trucks Safe water is an alternative to highpriced surgery Medical workers are an alternative to doctors and nurses Community food storage is an alternative to expensive kitchen equipment Other alternatives could be discussed by the dozen Why not for example consider walking as a longrange alternative for locomotion by machine and explore the demands which this would impose on the city planner And why can39t the building of shelters be standardized elements be precast and each citizen be obliged to learn in a year of public service how to construct his own sanitary housing Vandana Shiva The poor are not those who have been left behind they are the ones who have been robbed The wealth accumulated by Europe and North America are largely based on riches taken from Asia Africa and Latin America Without the destruction of India s rich textile industry without the takeover of the spice trade without the genocide of the native American tribes without African slavery the Industrial Revolution would not have resulted in new riches for Europe or North America It was this violent takeover of Third World resources and markets that created wealth in the North and poverty in the South William Easterly The West rst setup the M to prevent large trade imbalances and unstable currencies in the West In this initial phase of its work the IMF was very successful It then shifted toward bailing out countries in the rest of the world On balance the IMF has done useful shortterm bailouts of poor countries experiencing nancial crises but it has done worse at promoting longterm development Moreover things have gotten worse over the past two decades as the IMF s mission statement has grown more and more bloated its conditions more and more numerous and its interventions more and more intrusive According to World Development Movement Report 7 Common Policies in PRSPs l Strict scal policy 7 austerity Trade libemlization Privatization including water privatization Investment deregulation and nancial libemlization Agricultural liberalization west still heavily protects and subsidizes this sector Labor market exibility William Easterly 33388 The West rst setup the IMF to prevent large trade imbalances and unstable currencies in the West In this initial phase of its work the IMF was very successful It then shi ed toward bailing out countries in the rest of the world On balance the IMF has done use Jl shortterm bailouts of poor countries experiencing nancial crises but it has done worse at promoting longterm development Moreover things have gotten worse over the past two decades as the IMF s mission statement has grown more and more bloated its conditions more and more numerous and its interventions more and more intrusive Conditionalitjes Jose h Sti itz Nobel Prize winner in Economics and former chief economist of the World Bank on Ethio ia went to visit with President Meles in 1997 IMF had just suspended its loan program this would have consequences for World Bank lending for reasons we ve discussed Ethiopia had good results iMeles had come to power a er a seventeen year civil war a drought that had killed millions and a country whose per capita income was about 100 a year at the time in ation was low output was growing was receiving aid and balancing its budget Should have gotten an Aplus IMF instead cut off aid Why Because the budget was only balanced ifit continued receiving foreign aid IMF felt that the govemment needed to act as if it had no aid In other words the aid even if the donors gave it for things like building schools and hospitals should instead be held in reserve and the government should act as if it didn t exist This would require cutting spending or raising taxes a terrible remedy for a despemtely poor country IMF also didn t like the fact that the Meles government repaid aloan to a US bank early It made good sense for Ethiopia to do this as it was paying a high interest mte US and IMF objected They felt that that Ethiopia should have consulted with them rst This is another criticism of the IMF and World Bank 7 the degree to which they 39 39 e on national sovereignty particularly in a matter not directly related to the business the IMF had with Ethiopia of course with conditions becoming evermore detailed and obtrusive it was hard to know where the line was between what was a country s business and the IMF s business Also didn t like Meles resistance to nancial deregulation since the IMF was during this period preaching the gospel of nancial deregulation aron the world Kuznem Curve InnqunH39Y m m 5va Bhagwati 9 Increased global integration should reduce poverty Growth boosts tax revenues In poor countries like India redistribution by itself will not work Growth promotes democracy and other key rights over time Two important caveats Shortterm effects of transition may well exacerbate poverty there is a difference between free trade in widgets and free trade in dollars 0 O I should note that this tendency is sometimes used by economists to argue totally withoatjasti cation that economic growth will eventually take care of social and poverty concerns and that we therefore do not need to address them directly n The Debate on Trade Economic Integration Growth and Well Being According to a key World Bank study cited by lVIartin Wolf 24 globalizers grew by an average of 3 l per year between 1980 and 1997 49 nonglobalizers managed only 05 annual growth By the l990s the globalizers were growing at 5 per year led by China s astounding growth According to Wolf China grew by 400 during the period 1980 to 2000 Problems with this approach 7 Robert Hunter Wade and others Newly Globalizing and More Globalized are used synonymously in that key World Bank report Likewise nonglobalizing and less globalized are used interchangeably This is a semantic mistake with signi cant meaning Newly Globalizing countries may at the end of the period in question still be less globalized than the socalled nonglobalizers EX CHINA If Country A begins with average tariff barriers of 70 and reduces them over time to 36 would you call it more open than country B which began at 35 and reduced to 24 Wade calls this is an audacious use of language Weisbrot Baker Rosnick Between 1980 and 2005 a sharp falloff in the growth of GDP per capita for all groups except the bottom quintile compared to the period 19601980 The fourth quintile shows a dramatic drop 7 from 24 growth per year to 07 growth per year The meaning of this is stark at 24 annual growth the country s income per person will double in 29 years At 07 it will double in 99 years Similar slowdowns in progress for life expectancy child mortality and education enrollment I Class 2 Global Issues Intro August 30 2010 a 57 Micklethwait and Wooldridge The Hidden Promise Liberty Renewed o Argument Globalization is delivering enough of the quotliberal dreamquotto make it worth pressing forward and to make it worth defending on more than just narrow economic grounds 2Karl Marx 0 He would be sad to know that capitalism prevailed over communism 0 But he would not be surprised to find out that the world has begun a merge into a single world market know as globalization 3The Defense of Globalization pg 13 o It does increase inequality9but it does not create a winner take all society I Also quotthe winners hugely outnumber the losersquot o It leaves some people behind but it helps millions more to get ahead 0 It makes bad government worse but bad governments cannot be blamed on globalization o It takes power away from nationstates9 However nationstates still remain the fundamental political authority 0 Globalization does not destroy geography it enhances it 0 Most proarguments are economic based I Producers gives them greater choice over their raw materials production techniques human talent and the markets where they sell their goods I Consumers provides them with better goods at better prices 0 AntiGlobalization Argument ZeroSum Game I Means that success of some people means the losses or inability of other to have that same amount of success 4The Balance of Globalization 0 Puts limits on the power of government I Businesses can escape from interfering governments by moving their money and operations abroad I Ultimately nations would rather have your money than power over your business 0 quotFree trade allows ordinary people to buy products from companies who make the best of their kind rather than from those that enjoy relations with governments Globalization 1Globalization as Internationalization 0 Relationships between countries International Relations 0 Interactions between nations on topics like cultural exchange trade global warming 2Globalization as Liberalization 0 There is a progressive decline in state government propose restriction on things like trade to make a more open borderless world 0 Liberalization is different in a global view it is a call for removing government restrictions on global topics especially when pertaining to the economy 3Globalization as Universalization o Is the process of spreading various objects and experiences to all corners of the earth 0 The spread of a single global culture rather than each nation having their own cultural norms human rights millennium development goals 4Globalization as Westernization or Modernization Americanization o Sen9quotHow to Judge Globalism I Westernization is seen as quotWestern Dominance and compared to imperialism Squot 0 quotEstablished rules of trade and business relations that do not serve the interests of the poorer people in the world 19 o Argues that it is not a quotWestern Curse though because quotOver thousands of years globalization has contributed to the progress of the world through travel trade migration spread of cultural influences and dissemination of knowledge and understanding 19 The challenge lies with inequality 0 The sharing of potential gains from globalization o quotThe inequality in the overall balance of institutional arrangements which produces very unequal sharing of the benefits of globalization 0 Poor need more than just to make gains from globalization but a fair share and a fair opportunity 0 The idea that the structures of modernity capitalism industrialization rationalism are spread all over the world and leads to the threat of existing cultures 0 The process of western ideas spreading to all over the world A process of imposition o The spread of McDonalds Coke Hollywood more practical political practices US Military 0 The Washington Consensus 5Globalization as Deterritorialization o Albrow quotTraveling Beyond Local Cultures I McDonalds in Hong Kong Society 0 Introduction of sanitation standards in public restrooms and orderly lines 0 Popular destination for all ages of people for snacks dinners business transactions breaks etc 0 Does the spread of McDonalds from western society to abroad still make it quotourquot culture or does it bring us one step closer to a merge in cultures 0 Spread of Supraterritoriality 0 Geography is reconfigured so that physical space becomes less relevant to understanding our place in the community 0 Social Movements The World Wide Web Facebook I don t think it necessarily has to be through technology I Coming in contact with more people from different areas of the world that has made global social change more practical 6 Early Periods of Globalization 0 Greek City States Silk Road established trade between Greeks and Chinese 0 Islamic Golden Age Spread of trade technology and agricultural practices wide adoption of Arabic for completing Hajj to Mecca 0 Great Age of Discovery 0 Industrialization and Modern Imperialism I Emergence of modern global capitalism Keynes Marx Quotes 0 Post WWII Present Emergence of global financial and political architecture UN IMF World Bank WTO EU etc Economics 1Adam Smith His ideas have shaped the classical view of economics principles and economic markets 0 Market actors are best left to their own devices 0 Market forces are self correcting The economy can always be expected to return to a reasonable equilibrium Government interference in the market and in the economic behavior of individuals should be kept to a minimum S3 Homo Economicus Individuals act rationally and in their self interest and the consequence of individuals acting this way is that society as a whole will benefit and prosper more than it could under any other system llIt is not from the benevolence of the butcher the brewer or the baker that we expect our dinner but from their regard to their selflove and never talk to them of our own necessities 2Some of John Maynard Keynes Key Insights Markets are not automatically selfcorrecting9 markets can fail and be unable to recover without help What might be individually rational can be profoundly collectively irrational 9 during difficult economic times there will be a shift of peoples spending from more to less so they can save more I This thought seems rational for people to do since they have lost their jobs but the economy cannot recover without stimulation from people throwing money back into the system Given these realities capitalism must be managed llAggregate demand lldemand management llcountercyclical policies Capitalism must be saved from itself 3 Broad Policy Consensus After WWII 0 Capitalism as managed and redistributive o Nationalize declining or strategic industries 0 Class compromise o Welfarestate capitalism Global Economic ArchitectureIM F World Bank GATT NeoLiberalism 1 Markets produce outcomes that are better than any alternative 2Government intervention results in unintended consequences that are likely to leave society worse off 3The fewer roles for the state in the economy the better both in terms of economic efficiency human freedom 4 Privatization liberalization including promotion of free trade reduced state regulation labor quotflexibilityquot 539 r r I and I 6A marked expansion in those areas deemed suitable for marketshealth care is a good example 7 Margaret Thatcher and Ronald Regan were the front runners in promoting neoliberal ideas on global level 0 Thatcher Quote Regan Quote llGovernment s view of the economy could be summed up in a few short phrases If it moves tax it If it keeps moving regulate it And if it stops moving subsidize itquot Society and Individuals become morally degraded when they cry poor mouth to the government every time they run into a problem they lose their notion of responsibility 8 Neo liberalism is a broader belief of market efficiency than the moral ideas of Regan and Thatcher portray Market Liberalism 1 Market actors are best left to their own devices 2 Market forces are selfcorrecting returning the economy to a healthy equilibrium within some reasonable period of time 3Government interference should be kept to a minimum 4 Individuals acting rationally and in their selfinterest world in the aggregate create the most prosperity and the best of all worlds Polanyi Key Concepts 1Embedded Markets 0 There have always been markets they are not a new feature of modern capitalism What differentiates the self regulated markets is that in all previous markets they were a subordinate of society market exchange reflected the broader values of the society in which those markets were embedded 2 Fictitious commodities Commodities are goods that were produced for exchange within markets Labor People were not originally created to be exchanged with markets Land The world and environment was not created by god to be bought and sold Money Currency is merely a tool of governments to give goods a common value What makes the fictitious commodity so significant to Polanyi is that quotto include them in the market mechanism is to subordinate the substance of society itself to the laws of the market pg 75 I The consequences for society are catastrophic 3 Double Movements Refers to them also as quotcounter movements They are spontaneous reactions from all corners of society advocates politicians citizens etc The movement of markets is destroying society and so they must be controlled and regulated In the 19 h c when liberal markets were emerging a double movement came about where I Food and water inspection Public health policies I Regulation of child labor labor policies Vaccination enforcement Public health policies Contagious diseases acts Public health policies Public library act education policies Irrigation and other agriculture policies 4 Laissezfair was planned planning was notquot 5Comparison of Polyani and Gray Self regulating Markets Both talk about how liberal markets can destroy the social standards of society income gap increased incarceration g John GrayCh 39 quotFrom the Great Transformation to the Global Free Market 1The free market created a new type of economy in which all prices for goods labor etc quotchanged wo regard to their effects on society Previously economic life had been constrained by the need to maintain social cohesion 2Conservative Criticisms of Markets That human motivations cannot and should not be reduced to material acquisitiveness That there is a place for a community or society to regulate and police moral behavior personal gain de emphasized Related to number onethat humans are more than their supposedly animalistic impulses That there is something hollow and empty about a secular individualist account of the world with no place in it for a larger purpose No loyalty to place Modern States a Key features of Modern States 1 Defined Physical Territory 2 More or less permanent population 3Since Treaty of Westphalia 1648 sovereignty basic principle of noninterference in internal affairs 4 Diplomatic recognitionprerogatives of state authority 5 Monopoly on the legitimate use of force and coercion b Hobsbawn Main Ideas 1Two key problems that needed to be addressed in the 19 h c 0 Political problem with downfall of divine rights of kings and the absolute state as well as enlightenment attacks on religious authority Kings needed some way to keep citizens loyal to their state How do they maintain political legitimacy I Some form of popular sovereignty Liberal Democracy Economic Problem markets were poorly integrated even within given statebased territories People spoke different languages had vastly different tastes and culture practices used different currencies standards and measures were hostile to state officials like tax collectors I Integrated markets maintained and regulated by a competent central authority Capitalism Schooling is going to play an integral role in bringing a nation state together I You need people to be on the same page educationally if they are going to interact economically and politically The political form should not be accredited to unintentional and random ideas that people throw together but because of a collective group of ideas that people combine in order to purposefully form an effective form of government All globalization reader articles this week address the decline of the nation states 10hmae Ch 25 The nation states have outlived its time the world is emerging into a time where nation states are increasingly irrelevant because the lines that define separate states are becoming blurred 2StrangeCh 26 In the contemporary world partly because of globalization that more than ever before people demand that the government step in and insure that citizens have a level of security This state protection makes them more dependent on the state government Globalization is making people more dependent as well as making the state weaker and weaker Globalization is creating a paradox that is increasingly undermining the power and abilities of the nation state Some countries and people are going to prosper tremendously but in this increasly global world we will see increasing inequality gaps in both as Squot well 3RodrikCh 28 In this era of globalization we need What has allowed globalization to come about is global trade states relying on Keynesian economics and the ability of states to provide internal stability between corporations and workers so that laborers will subtly accept integration into the global economy But once you undermine social peace at home you will III Emergence of the PostWar System a Jeffry Frieden Global Capitalism Reconstruction East and West 1The United States Leads the Way 0 llThe most important task for those who wanted to lead the postwar world toward greater economic integration was to ensure that the United States was engaged 254 0 quotthree principle evils leconomic nationalism trade barriers and war quot 254 I Economic nationalism hinders trading globally o The Marshall Plan I Europe and Japan after WWII 0 Between 1939 and 1946 France Belgium the Netherlands and USSR lost more than 20 of their GDP 0 Germany in 1946 was at onethird of its 1938 production levels 0 Italy and Japan in 1946 were equivalent to their 1910 levels Germany 1890 Austria1870 0 Another way of saying this Germany had equivalent of 80 of US living standards in 1939 and 25 in 1946 I Scope and Goals 0 135 Billion in Marshall Aid after WWII another half billion to Japan Equivalent ofa half trillion dollars in terms of US dollars in the year 2000 o In exchange for aid countries adopted policies generally consistent with liberal economic principles relative openness to trade primacy of market forces 0 Goals include rebuild infrastructure stimulating investment allow European governments to provide basic standard of living for citizens to ensure social peace fend off communism and socialist left 0 Reconciling belief in capitalism markets and global integration on the one hand with social reform and welfare state on the other Keynesianism America had instilled protectionism for over a century I Enthusiasm for trade liberalization had grown because American industries quothad used their technological edge to become exporters and foreign investors 255 American businesses hoped that the US siding with the ally powers would open up there borders to European international trades March 1941 quotCongress agreed to a lendlease agreement with Britainquot this allowed British forces to use American military equipment in an arrangement that the US would one day get it all back IMF GoldDollar Standard Keynes and White pg 2567 I Bretton Woods finalized which created quotan international agency like the IMF to which member governments agreed to subject their decisions on important economic policies Nor had a multilateral organization such as the World Bank existed with billions of dollars to lend to governments around the world 259 As well as the GATT which became the WTO o All three systems helped to regulate global trade I quotThe major significance of Bretton Woods was the death blow it represented in victory over the economic isolationism of the prewar period 2The Immediate Task Rebuilding the economies of former warring nations I GDP per capita in ally nations after the war was less than 80 of what it was before the war I quotThe war on the continent had thrown back the winners economies 25 years while those of the losers had lost 40 50 even 75 year 261 3Dean Acheson Present at the Creation 4The US and European Reconstruction Key Policies in the 50s and 60s and their effects High tariffs on US imports to Europe which gives a competitive leg up to European industries The high European tariffs also encourage many American industries to locate operations in Europe in order to sell in Europe more easily Example GE quadrupled the number of factories it operated in Europe between 1949 and 1969 Off shoring Fixed Exchange Rates as opposed to now where currency fluctuates on global trade markets currency exchange rates were fixed through policy between 194171 it took the same amount of yen to exchange for a dollar I The Dollar became overvalued and it became more difficult for people outside of the US to buy US goods and for foreigners to sell their goods in the US Basing of hundreds of thousands of US soldiers in Europe and tens of thousands more in Japan also had economic benefits 5Consequences of US Aid E 57 Squot A massive shift in production Western Europe s per capita output more than doubled between 194864 Japanese sees 8fold increase in production in 25 years Inflation adjusted production in all the advanced industrial economies combined tripled between 1948 73 Selective Globalization The Washington Consensus9 Forced countries to adapt to a capitalist economic system in order to receive money to rebuild their economies Capitalism was viewed in a negative light in Europe though 0 6The Soviet Union Builds a Bloc 7Two Syntheses o Liberalism American leaders were intent on proving that global capitalism could be good for growth and equity 0 Fascism Soviet leaders wanted to prove that development and equity could best be achieved by rejecting global capitalism Developing Areas Challenges facing third world or lldeveloping areas after WWII 1 Low Income Countries or Areas 0 High Birth ratesinfant mortality 0 Per capita incomes are low 0 Shorter life expectancies 0 Lower levels of educational attainment 2 Largely Agrarian 0 Their manufacturing sector is secondary o The things they export come mainly from the primary sector mining of minerals exporting of primary agricultural goods and very little export from finished manufactured goods 3 Began modern history as a colony of one of the former imperial powers of Europe or Asia 4 President Truman was concerned that these countries lack of development would lead to political chaos o Truman Doctrine 5The emergence of social and political chaos leads to the rise of totalitarian and socialist governments that promise a way out of poverty for those in the third world countries but threaten the freedom and future success of 151 and 2nd rate countries Nomenclature 11st World Highly Industrialized 0 Canada is a rich country but is relatively under industrialized relying on primary exports for their wealth 22quotd World Communist countries that were also highly industrialized and educated but were not open market economies 33rd World See Above Modernization Theory Key Assumptions 1The idea that all countries can achieve technological and success to all of its citizens 2 Modern Societies o Affective Neutrality I Reason and rationality not emotion or superstition is the dominant mode of thinking I Is associated with delayed gratification and selfdiscipline I Max Weber religion plays a key role in politics 0 Selforientation 53 5 I Individualism selfinterest are key modes of identity 0 Universalism I One set of rules should apply in all relevant circumstances I The rule of law is based on this notion I General norms not personal relationships should determine outcomes in given circumstances 0 AchievementOrientation I The typical person in a modern society is ambitious goaloriented and future oriented people are to be judged on their merits not on what family they were born into 0 Functional Specificity I In society there exists a clear division of labor and society s role and tasks are specific and clear cut particularly in terms of a societies 3These were contrasted with what were seen as the main attributes of socalled traditional society 0 Lack of Ambition o Fatalism9 A contrast to a scientific understanding of the world around us I Society is a noble place and we have control over our own fates but the opposite is true of peoples mind sets in a traditional society 0 Conservatism I These societies are not progress or future oriented they are not open to change or adaptation I The only option is to hunker down and go with the flow 0 Oriented to immediate needs not future oriented I They don t delay gratification they don t save or plan so they never progress Rostow s Stages of Economic Growth 1Traditional Stage Societies are scientifically primitive agrarian and little social mobility 2 Preconditions for Takeoff9 Scientific changes and introduction of science and technology believe that growth and progress are possible 3Takeoff9 Britain entered first 18 h c US and France late 19 h c rapid industrial expansion and investment 4 Drive to Maturity9Couple generations after take off the scientific progress first in a few key industries is now spreading throughout society 5Age of Mass Consumption Consumption moves beyond basic needs to a much wider set of consumer goods Rapley quotUnderstanding Development 1With the allies WWII victory imminent Bretton Woods conference was organized o quotconcerned primarily with establishing a favorable international environment for economic growth 0 IMF9quotset up to provide shortterm loans to governments facing balanceofpayments difficultiesquot 5 I To prevent protectionist spirals because a country would import more than it would export I Could not pressure balance of payment surplus countries to opening up their trade only on deficit countries 0 GA I39I399 quotTreaty organization that aimed over time to reduce tariffs or taxes on imports thereby lowering the barriers to trade among member states 5 I Had no enforcement powers to make sure countries were practicing good trading techniques 0 The USSR did not show up to the Bretton Woods conference which signaled there would be a Western capitalism and Eastern Socialism Bloc divide 2 As long as Third World economies were linked to the First World they could never break free of their dependence and poverty 20 0 Third World countries need to depend on themselves and one another for exports and imports f V Become more selfsufficient 0 Introduction of Import Substitution Industrialization Ivan Illich Outwitting the Developed Countries 1The rich nations impose the social norms of their societies on select societies within poor nations This does not in turn further poor nations or aid them any closer in becoming a developed nation It caters to a small portion of their population while the majority of poor country populations outside of the metropolises still deal with third world difficulties of natural disasters epidemics and lack of real education to make them beneficial additions to society I Good Quotes in first full paragraph on page 3 2 Education gives people with the ability to provide aid a sense of withdrawal from the part of society that needs the aid 0 Education counteracts its true purpose which is to give those who receive it the ability to help those who need it 3 UnderDevelopment o quotThe adoption of international standards of schooling forever condemns most Latin Americans to marginality or exclusion from social life in a word underdevelopmentquot pg 5 llChronic educational underdevelopment occurs when the demand for schooling becomes so widespread that the total concentration of education resources on the school system becomes a unanimous political demand pg 6 4Solution Return to basics for third world countries I They do not need the complex structures that allow rich nations to be successful before they can be successful they must be developed which is the step that all forms of aid have so far tried to skip They want to make a million dollar man out of nothing and expect him to be just the same as a man with much more in America Every dollar saved on buying doctors and hospitals could be used to save 100 lives by providing safe drinking water Every dollar used to produce a luxury car for Latin American countries could be used for a public transportation bus to transport 100s more people everyday g Birdsall and Rodrik How to Help Poor Countries Trade Growth and Poverty 1A recent call for the end of the IMF and World Bank Countries were not paying off their debts to these institutions after they had benefited from their loans An increasing build up of debt on the IMF and World Bank side IMF and World Bank becoming irrelevant because they had increasingly invasive procedures and regulations that needed to be met in order receive loans Ethiopian government paid back a loan early because of high interest rates I Banks do not like this because they get fewer profits and are less likely to give you more money than if you would have paid it back on time I The IMF did not accept the early loan payment because the Ethiopian government did not consult the IMF before paying it all back early 2 Major economic powers have renewed their support to the IMF to help bailout failing economies o IMF leadership has promised to relax its conditionalities and to become less intrusive and less micromanaging to the countries it is lending its money b Conditionalities 1Term used to note conditions that the IMF and World Bank impose on their loans in order to protect their investments in bailing out economies of failing countries 2Wiliam Easterly quotThe West first setup the IMF to prevent large trade imbalances and unstable currencies in the Westquot If the IMF is lending money to a country it makes sense that the IMF would then have advice for that country on the value of that country s currencies because the currency directly effects how much that country imports and exports The IMF should put conditionalities on loans that increasing pertains to the IMFs mandate but no more than that The IMF needs to put conditionalites that make countries more competitive in the world market 3Word Development Movement Report Common Policies in PRSPs Strict fiscal policyausterity Trade liberalization Privatization including water privatization Investment deregulation and financial liberalization Agricultural liberalization west still heavily protects and subsidizes this sector I Labor market flexibility c Joseph Steiglitz s Key Points 1 Visit to President Meles of Ethiopia in 1997 Ethiopia paid loan back to US bank early Ethiopia should have acted as if they were not receiving aid from the IMF because the aid was a crutch in keeping their budget balanced IMF wanted Ethiopia to raise taxes for citizens but couldn t because per capita income was 100year Resistance to financial deregulation d Trade and Growth 1Kuznet s Curve Parabola Shape Y axis Inequality X axis Income Per Capita As societies begin to grow and prosper per capita income also increases but the inequality between the richest of the rich and poorest of the poor becomes more distinct You cannot attain social goals until society can efficiently create meaningful and productive output When societies attain this social wealth the government must intervene to catch the increasing inequality by protecting it through education health labor and economic policy that promote protectionism of their citizens 2 Bhagwati Proponent of free trade I Increased global integration should reduce poverty 0 Think back to Kuznet s curve as countries get wealthier they improve on human welfare 0 Growth is the foundation that makes human life more sustainable Growth boosts tax revenues In poor countries like India redistribution by itself will not work 0 Until India starts to grow and increase productivity it can not become successful 0 The first pass has to encourage growth or willingness to compete on a global scale I Growth promotes democracy and other key rights over time o Fundamental argument that no middle classno democracy o Create a middle class that has sufficient resources so that the class can become broad based and start to make significant political demands such as rights voting etc o In order for democracy to occur wealth must be distributed across all classes of society 0 Furthermore the economy needs to liberalized in order for the middle class to become broad based 0 Two important caveats I Shortterm effects of transition quotmay well exacerbate poverty 0 Transitions from state run 39 to up I 39 quot 39 39239 Lots of instability and poverty Russia and former USSR 0 Encouraging more trade and openness during these transitions could exacerbate problems 0 Poverty needs to be addressed directly 0 Civic organizations need to play more ofa role in ensuring well being of people in poverty I There is a difference between quotfree trade in widgets manufactured goods and quotfree trade in dollars capital 0 Globalization Debate I The debate is not whether a country should open and integrate its economy into the global market I It lies more with the degree and timing that a country integrates I Being antiglobalization is like being antiindustrial revolution 3Martin Wolf World Bank Economist on Asia 0 24 quotglobalizers grew by an average of 31 per year between 1980 and 1997 o 49 quotnonglobalizaersquot managed only 05 annual growth By the 1990s the globalizers were growing at 5 per year led by China s astounding growth According to Wolf China grew by 400 during the period 1980 to 2000 He acknowledges that not all globalizers adopted all liberal policy but what matter is that they all moved in the direction of the market which means they made significant economic gains Wolf argues that sometimes critics of globalization make a mistake of taking a group of countries where less benefited from globalization than did then concluding that if the majority did not benefit then globalization is bad I But it is not how well a country benefits from globalization but how well people benefit from it I The main goal is to make sure global citizens are benefiting not countries I If we focus on individuals and acknowledge the success of China and India then we have to count these sorts of policies as major successes I Population weighted averages are necessary for evaluating policy effectiveness 4RobertWade9 problems with approach 0 quotNewly globalizing and quotmore Globalized are used synonymously in that key World Bank report I Newly globalizing countries may at the end of the period in question still be less globalized than the socalled nonglobalizers CHINA 0 China s currency is not free labor markets are regulated etc 0 But China has integrated into the Global Market at a remarkable rate and opened itself to trade since 1980 but remains more closed off and regulated than many developing countries I If Country A begins with average tariff barriers of 70 and reduces them over tie to 36 would you call it more open than Country B which began at 36 and reduced to 24 0 Country A reduced barriers by 50 and Country B reduced only by 33 0 Country A reduced larger amount of barriers but Country B is already more globalized o The two types of countries have to be distinguished o Wade calls this quotan audacious use of language 5Weisbrot Baker Rosnick Scored Card Between 1980 and 2005 a sharp falloff in the growth of GDP per capita for all groups except the bottom quintile compared to the period 19601980 The fourth quintile shows a dramatic drop from 24 growth per year to 7 growth per year The meaning of this is stark at 24 annual growth the country s income per person will double in 29 year At 07 it will double in 99 years I Similar slow downs in progress for life expectancy child mortality and education enrollment They argue that countries matter a lot because they dictate which liberal policies work in globalizing developing countries I The IMF and World Bank need to be able to tell countries what policies will work best for them should they follow policy that has a 33 success rate or 50 success rate in countries I A county with 5 million people is weighted the same as a 50 million person country when evaluating policy effectiveness China and India adopted much more of a heterodox than the IMF and World Bank would mandate for smaller developing countries If neoliberal policy is so great then why is that the period associated with neo liberal policy sees weaker performance success than the period associated with Keynesian economics and policy I They are not saying that neoliberal policy caused weaker performance but they are strongly correlated 5395 Joseph Stiglit Globallsm s Discontent John Williamson9Washington Consensus 1 Key Elements Market Economy Macroeconomic discipline Openness to the world 2 More specifically Fiscal discipline but you still need to spend money on infrastructure health and education I It is very important for countries to tighten their belts and take a closer look at how they spend their money but there are certain social needs that are not expendable Reordering public expenditure in a llpropoor wayquot I Stabilizing the economy is a necessity for growth Trade liberalization but in goods not in currencies Privatization but llit matters a lot how privatization is donequot I Transition of ownership from state to private industries I The notion that privatization is good was met with a lot of resistance I Russia s privatization was poorly executed the Soviet Union old 70 of it s economy into private hands They wanted to do it as fast as possible Loans for Shares Private groups would bid at auction for shares of huge state owned resources in exchange for these resources they would lend money to the government because the Russian government was strapped for cash in the 90s o If Russia could not return the lender money in set amount of time then the private companies could keep the resources permanently c Thomas Friedmen The Golden Straitjacket 1 Prerequisites for State Prosperity Private sector as key engine of growth Low Tariffs Shrinking state bureaucracy Balanced budget Deregulate capital accounts llToday there is only freemarket vanilla and North Koreaquot 86 There are different brands Nations can adjust the speed of it But ultimately there is only one road with multiple speeds and the truck going on the road only carries vanilla 2 Problems with argument He fails to account for China because china is not wearing the straitjacket d Naomi Klein The Shock Doctrine 1Jeffrey Sachs Shock Therapy Vll refers to the sudden release of price and currency controls withdrawal of state subsidies and immediate trade liberalization within a country usually also including large scale privatization of previously public owned assets Worked in Latin American Countries and European Countries apart of the former USSR But failed in Russia I Too much shock and not enough therapy Democracy and Democratization 1 The Myth of Democracy Elections and Stability I The transportation of 39 I Developing nations need a strong central leader to promote growth Democratization as a curse Robert Kaplan to the 39 39 r 0 world Is 0 Entrenching illiberal elites Zakaria I Elements of Constitutional Liberalism 0 Checks on the power of each branch of government 0 Equality under the law 0 Impartial courts 0 Separation of church and state We have taken for granted that when we say democracy we mean liberal democracy 0 o llToday the two strands of liberal democracy interwoven in the Western political fabric are coming apart in the rest of the worldquot 23 39239 Elections occur and then the president bypasses their parliament to declare rule by presidential decree which neglects constitutional practices 0 Constitutional liberalism quotis not about the procedures for selecting government but rather government s goalsquot 25 39239 The tradition that seeks to protect and individuals autonomy and dignity against coercion 39239 Liberal draws on philosophical strain that emphasizes individual liberty Greeks 39239 Constitutional rest on the tradition of the rule of law Romans 0 llThe tension between constitutional liberalism and democracy centers on the scope of governmental authority Constitutional liberalism is about the limitation of power democracy about it accumulation and usequot 30 0 We must assess that if the democracy we live in is not a liberal one is it a democracy that is worth fighting for b Squot 0 Elections instability and violence Collier Why democracy matters and why it is difficult 1Cannot operate in a heterogeneous state 0 Democracy is largely a two party system 0 llFree institutions are next to impossible in a country made up of different nationalitiesquot John Stuart Mill 0 Tribalism and ethnic divisions in Africa are the root of democracy s failure 2 Democracy operates as a system for managing and processing not conflict resolution 0 Protects the civil liberties and social welfare of the people 0 Leaders will act in the interest of citizens and can be held accountable for their actions 0 Democracy has a strong correlation with prosperity 0 Democratic Peace Democracy do not go to war with one another I When non democracies and democracies go to war it is always because the nondemocracy provoked it o The difference between democracy and all other forms of government is the institutional arrangement in which they choose their leaders 0 Why elections matter 1 Promote change 2 Forwardmoving peace process 3A census of who shares power 4 Legitimizes leadership 5Cathartic psychological movement Fall of the Berlin Wall 6 Repeatable movementsdemocracy 7 No democracy without free and fair elections no stability without democracy 0 All is dependent on legitimate elections Three Waves of Democracy 1 First Wave 18261926 0 Roots in American and French revolutions 0 New Zealand is considered the first true democracy because they promoted universal suffrage for its citizens 2 First Reversal Wave 19271942 0 Crash of the global economic system 3Second Wave 19431962 0 Postwar occupation of Germany Austria Italy Japan and Korea 0 Soviet occupation halted democracy in Czech Hungary and the Baltic nations 0 Latin American Nations 0 Postcolonial democratization in South Asia India 4Second Reverse Wavel9581975 0 Latin American Authoritarian Coups 0 Pakistan and Korea slip back 0 Coups in Greece and Turkey 0 33 African countries turn authoritarian shortly after independence 5Third Wave 1974 Present 0 Overthrow of Salazar regime in Portugal 0 Between 197489 countries in Europe Asia LA replace authoritarian regimes with democratic ones 5 r 7 7 0 Former Soviet Union 6Third Reverse Wave 0 Asia Pakistan and Malaysia 0 LA Venezuela and Colombia 0 Eastern Europe The stans Africa Zimbabwe Pacific Solomon Islands and Fiji How does democracy evolve 1The evolution of democracy in Europe was a messy bloody slow affair 2 Does democracy need a certain level of economic development 3Can poor countries have democracy 4What is most important for democracy to survive Economic development Voting Health Education 5What are the implications of democracy if imposed from the outside Why MarketCapitalism Favors Democracy Robert Dahl 1 A decentralized economy that helps to create a nation of independent citizens is highly favorable for the development and maintenance of democratic institutionsquot 171 Free Markets and Freedom Patricia Cohen 1 Managing differences through democracy Democracy s meaning to different cultures 1 Europe social democracy and triparty corporatism 2Arab World Political rights for women 3China Collective rights local participation 4Asia communal responsibility vs individual rights 5Africa Indigenous methods of decision making Democratic Choices 1 Electoral Systems Choices and Consequences 2Executive type Presidential v Parliamentary 3 Legislative type chambers and powers 4Nature of State Unitary or Federal Democracy Types 1 Majoritarian 2Winner Take All 3Westminster 4Anglo 5 Homogenous state 6Consociational 7 Power sharing 8Consensus Lessons from quotMedicine for Democratic Design 1 Management v Cure 2 Misdiagnosis 3Triage or convalescence 4 Holistic design 5A rush to surgery 6 Discharging too early 7Medical limits VIII Human Rights a International Bill of Human Rights 1Universal Declaration of Human Rights 1948 o Embodied truly universal values 0 The idea of human rights is really a western notion I But it does not mean that the idea is not fundamentally universal o Tension at the heart of declaration 0 Lee Quan Yui It is not individual rights that matter but communal rights I When you open your doors up to individuals you promote instability O 2International Covenant on Civil and Political Rights 196676 0 3International Covenant on Economic and Social Rights 196676 b Other Major Human Rights Treaties 1Convention on the Prevention and Punishment of the Crime of Genocide 1951 2International Convention on the Elimination of All Forms of Racial Discrimination 1966 3Convention on the Elimination of All forms of Discrimination against Women 1981 4Convention on the Rights of the Child 1990 o All but two countries have ratified treaty Somalia and United States 5Convention on the Elimination of All Forms of Discrimination asainst Women 1981 o All but seven countries have ratified treaty Iran Nauru Palau Somalia Sudan Tonga and US 6Convention on the Prevention and Punishment of the Crime of Genocide 1951 o Ratified by the US in 1986 7Treaty of Rome 0 Establishing International Criminal Court Signed by Clinton but reversed by Bush c Some key tensions of the modern human rights system 1 Is it possible to articulate universal principles when there is so much cultural variation about the most fundamental questions especially on the basic question of the relationship of the individual to the larger community 2 How to resolve the basic tension between the rights of individuals and minority rights and the rights of states to selfdetermination 3 Related to pt 2 is there a legitimate role for socalled humanitarian intervention to overthrow rightsabusing governments Or is humanitarian intervention just another means for the most powerful countries notably the United States to assert their will when it is in their own interests to do so d First and Second Generation Rights e Women s Rights IssuesConcerns 1Violence against Women 2Political Participation 3Trafficking 4Equal PayEducation Opportunities 5PublicPrivate Distinction Why Women s Rights Are Sometimes Dismissed 1Sex discrimination is relatively trivial 2Abuse is cultural FGC r 5339 3 Not Human Rights per se states versus private actors 4Abuse is so pervasive that it can t adequately be dealt with Global Trade Markets Key points in the movie Black Gold 1 Information o In classical economic assumption that it is crucial it exists for some players in the global market and doesn t for others 0 There is such an imbalance that causes disparities in trade between nations of the West and those of the East or Africa 2 Links in the chain For Coffee 0 Farmers 0 Buyers Buy the coffee from the farmers who bring the product to larger markets 0 Exportersprocessers Sort the coffee for quality 0 Overseas buyers Buy the product on behalf of large corporations 0 Roaster Starbucks o Retailers Starbucks 3 Living Standards of Ethiopians HDI Data 0 Lack of access to improved sanitation source 88 o A Lot more from Weiler s notes 0 One of the poorest countries in the world 4 The Good Lifequot 0 How Ethiopian s defined the llgood lifequot in Black Gold I Clean water A pair of shoes Good clothes The ability to send children to school Specifically NOT a car or electricity Productive cows for milk Nutritious food A local health center 0 How would llich describe the good life of Ethiopia I The Ethiopians describe their good life in a very similar manner to the way llich perceives it for them compared to the perception of the good life to Americans 5Power Imbalances o The WTO in theory is suppose to represent the impoverished countries but in reality it represents the interests of the rich and wealthy countries 0 The EU brings over 600 delegates while African nations bring few to none for the conferences because they cannot penetrate the arguments due to little interest in what they have to offer by Western nations 0 Most agreements at WTO conventions happen behind closed doors which often leaves poor countries out to dry 0 and agriculture products are highly subsidized in western nations which makes it hard for African countries to compete in the markets 0 When it comes to certain sectors the US plays by a different set of rules than poor countries do 0 The multifaceted imbalance of power is one of the key arguments about what is wrong with world trade 6Aid vs Trade 0 There is a lot of debate about the failures of foreign aide 0 William Easterly castigates the IMF and world bank for a multitude of sins I Developing countries would be more well off if the IMF and World Bank left them alone and just encouraged them to integrate into world markets rather than force them through aid ts typically assumed that when we talk about trade vs aid is that countries choose the degree to which they want to be open to world markets 0 Black Gold negates this assumptions with its various examples that show there is no implicit choice for countries to make on how open they are to markets I If you don t have a diverse economy that can weather shocks to one sector with another sector you a re doomed to fail in free open markets 7 Fair Trade 0 phone Value chain I Transparency of where the quotrealquot Applebaum money in the phone Value chain Squot 1WalMart gained a significant advantage of information sources 2Allowed WalMart to track goods and price information up to the second 3Walmart s information advantage of what customers wanted and low pricing gave them a significant advantage in negotiations for receiving goods at low prices 4An imbalance in information is a significant point for why some people in the chain make minimal profits and others industries and corporations make a killing African Coffee Growers vs Starbucks Geraffi 1The key to developments is where industries or countries are able to place themselves along the value 53 change 2Shoes are a high value industry 0 Would have been a highly lucrative industry in the 19 h c o It now has a different character due to global trade 0 This due to the how the different parts of the supply chain have been dispersed around the world the nature of production 0 Nike The manufacturing of shoes no longer takes place in the United States or Latin America first place of outsourcing I It now takes place in Asia in very low wage economies Indonesia I Nike shoes cost anywhere of 70 to 120 dollar in US markets but Indonesia does not recognize the value of these shoes like US markets do 3The designs development manufacturing parts of the chain were captured by a particular county 4Argues that the key to development is a country s ability to move up the supply chain to the parts where the quotrealquot money is made X Millennium Development Goals and Critics a MDG Report 201039 8 Goals 1Eradicate Extreme Poverty and Hunger 0 Target Halve between 1990 and 2015 the proportion of people whose income is less than 1 a day 0 The global economic crisis has slowed progress but the world is still on track to meet the poverty reduction target of less than 920 million people living under the international poverty line 50 of 1990 levels 0 Prior to economic crisis the depth of poverty had diminished in almost every region Target achieve full and productive employment and decent work for all including women and young people I As jobs have been lost more workers have been forced into vulnerable employment I Since the crisis more workers find themselves and their families living in extreme poverty 0 Halve the 1990 level of people who suffer from hunger I Hunger spiked in 2009 I Progress to end hunger has been hindered in most regions I 1 in 4 children in the developing world are still underweight 2Achieve Universal Primary Education 0 Target Ensure that by 2015 children everywhere will be able to complete a full course of primary schooling I The target is looking less and less likely although developing countries are making significant progress SubSaharan African and South Asia are home to the majority of unschooled children Inequality thwarts progress towards universal education 3 Promote Gender Equality and Empower Women 0 Target Eliminate gender disparity in primary and secondary education by 2005 but in all levels of education by 2015 I Education remains unattainable for girls in some regions I Poverty is a major barrier to education especially among older girls I Men outnumber women in paid employment in almost every region I Women are relegated to more vulnerable forms of employment 0 Limitations of the MDGs regarding gender I Lack of adequate attention to reproductive rights I Failure to address problem of violence against women I Failure to address the impact of globalization itself socioeconomic disparities I Failure to address genderbased discrimination 4Reduce Child Mortality 0 Target Reduce by 23 the underfive mortality rate I Child deaths are falling but not at a rapid rate I Nutrition remains the main factor in mortality I Funding for vaccines is dwindling 5mprove Maternal Health 0 Target Reduce by the maternal mortality ration I Most deaths could be avoided by better quality doctors equipment and supplies I Most risky areas are again South Asia and SubSaharan Africa I Ruralurban gap in skilled care during childbirth has narrowed I Poverty and lack of education perpetuate high adolescent birth rates 6Combat HIVAIDS Malaria and Other Diseases 0 Target Halt and begin to reverse the spread of diseases I Rates have begun to stabilize in most regions I Lack of education to fully prevent spread 0 Target By 2010 provide universal access to treatment for HIVAIDS I Rate of infections still beats the expansion of treatment 7 Ensure Environmental Sustainability b Squot 53 5 0 Target Promote the principles of sustainable development into nations policies and programs and reverse the loss of resources I Deforestation rate is decreasing but still high I All nations need to make an urgent and allinclusive response to climate change 0 Montreal Protocol Reduce biodiversity loss by 2010 I FAILED I Key species are not being protected Target provide everyone with safe drinking water and basic sanitation I ON TRACK I Safe water supplies remain a challenge in most regions 8Develop a Global Partnership for Development Progress Towards Goals 1The target deadline of all the goals is 2015 o 1990 levels are the baseline against which progress is being measured 0 Commitment to building decent healthier lives for billiosn of people and in creating and environment that contributes to peace and security 0 Critical question with today s progress is not if it is possible goals have been established since 2000 and improvements have been seen in data but how to transform the pace of change from what we have seen over the past decade into dramatically faster progress 2Regional goals and averages Some individual country successes 1Bolivia and Cameroon have increased spending on health and education 2Large declines in poverty in places like china and Vietnam 3Nemerous cpuntries in Latin America and Caribbean will meet targets for child mortality and safe drinking water 4Poverty reduction in Cameroon Ghana and Uganda MDG s Setbacks 1Child Under age 5 mortality rates have increased Cambodia Kenya Malawi and Zambia 2Access to clean water has decreased in many places 3 Large increases in Poverty among Central Asian countries 4Drastic increases in HIVAIDs in East Asia and the Pacific Proponents of MDGs say 1 Global goals motivate people 0 There is something about a global campaign that motivates people and mobilizes them to support and make the MDGs a success It is important to create an umbrella project rather than doing the same things but in a more localized isolated sort of way 2Some progress is better than no progress o If we don t meet all of the goals by 2015 it does not mean that the goals were an overall failure there are still many success stories 0 Goal setting is motivating and if it motivates us to have some progress rather than none at all then it has done its job 3 It s useful to have concrete targetsaccountability 0 Concrete goals are harder to manipulate as successful endeavors when they are not met 42015 is just the first step not the end of the process o No one thinks or has been put on record as saying all the goals will be met by the target date There is entirely to much work to achieve in 15 years f Critics of MDGs say 1MDGs neglect civil and political rights 0 The goals put in place will not be stabilized if social and political society are in an unruly and chaotic uproar 2 Measures fail to capture adequately quality of life 3Goalsetting may be unrealistic especially for Africa 4 Role of developed countries aid targetsimposition of approach 0 Matter of interest status quo Jeffry Sachs llThe End of Poverty Myths and Magic Bulletsquot 0 We spend lots of money on aid 2 0 Africa has a democracy deficit 0 Lack of modern values 0 Economic freedom solves all problems 0 A rising tide lifts all boats 2Why are the children ofAfrica worth saving 0 They will just grow up to live in poverty starve as adults spread AIDS and increase the already to enormous African population 0 Sachs says NO this will not happen These assumptions have become common among the developed world but the same could have been said about every other part of the world before they reached a significant level of economic development 3Money Down the Drain o The US foreign aid office thinks that it is a waste of time to keep pouring money into Africa because they are not seeing any improvement o In reality they are not really putting very much money into the continent Aid per capita is only 30 annually for global foreign aid but on 3 per capita from the US alone I We under 1 of GDP of wealthy countries The US spend more money on foreign aid than any other wealthy country 20 Billion in 2009 o The majority of that money goes to countries of the middle east 0 That sum of money although a lot is not nearly enough compared to the amount of GDP we earn each year 0 Democracy freeness does not translate to faster economic growth 4Sachs Arguments o Cultures change with economic times and circumstances I The role of women changes as a society shifts from villages to urban centers farming to industry and illiteracy to literacy 0 Cultural interpretations are made on the basis of prejudice rather than measureable evidence 0 He resents the argument that ending poverty is impossible I But when has the world ever acted simply because it is the right thing to do I He fully supports the MDGs and believes they can be met XI The Clean Energy Revolution and the USA 1Take a look outside the US to see what we need to implement within our own borders 57 Energy Transition 1 It is necessary to go through this transition 2There is no plausible argument against global warming and climate change E 3We are at or near peak oil We need to transition our consumption of energy sources Move away from fossil fuels to renewable energy sources 0 0 Global Health Life Expectancy Data 2010 Human Development Report 1Highest in the world Japan 832 percent 2Lowest in the world Afghanistan 446 percent 323 countries score 80 or higher including Japan Hong Kong and Singapore Israel New Zealand and Australia The rest are in Europe 4 USA ranks 29th at 796 just ahead of Costa Rica Portugal and Cuba S Korea Greece UK clustered just below 80 50ther Notable Countries 0 China 735 percent 0 ndia9 644 percent Bangladesh 669 47 in 1980 Pakistan 672 6To call Singapore a developing country is simply stupid 0 Developing country characteristics are now based off of an old and outdated model 7 Economic growth needs to be the focal point of development the foundation of the good society is wealth and that means economic growth 0 Kutznets Curve 8 Rosling says that the theory that economic growth comes first and other goods will follow is incorrect 0 China invested in Health under Mao reduced child mortality and improved life expectancy The Maoist system was as far from a free market as you could possibly get Vietnam improved health way before it introduced market reforms It is possible even before market policies are introduced to Countries can make significant investments in health and see great economic performance in the future b Africa s Data 114 countries have an average life expectancy below 50 2Thirteen are in Africa 3 In fact 40 of the 41 countries in the world with the lowest life expectancy are in Africa 436 African countries have average life expectancy below 60 What is health 1World Health Organization Definition Health is a state of complete physical mental and social well being and not merely the absence of Squot disease or infirmity The key drivers of health status are not found solely in the health sector Just having quality medical facilities or doctors will not cure lack of health 20ED Definition 0 Soundness of body that condition in which its functions are duly and efficiently 3s it a state Process Goal Equilibrium 4 How do we measure health 5 How does the measure we shape Transformations 1Global transformations in human health 0 Major shift in patterns of health disease and causes of death 2Shift from infectious disease mortality to noncommunicable diseases 53 0 Cardiovascular diseases 0 Injuries 0 Cancers 3Major unprecedented shift in human health 420 h century increases in life expectancy worldwide 5Decline in infant mortality