ATS2624 Lecture Notes - Lecture 7: Global Governance, Keynesian Economics, Neoliberalism
25 May 2018
School
Department
Course
Professor
Global Governance – Lecture – Week 7 - The Neoliberal World Order
- emergence after bretton woods system crisis
- neoliberalism and globalisation
- emergence of global economy - need for global gov system to manage
-failure - forgetting the lessons of the inter-ward periods and failure of bretton
woods - inability to deal with crises that global capitalism produces
- neoliberalism
• based on the assumption that the free market is the best and only way to
realise natural human desires - self interest
• neoliberalism to resolve keynesianism
•
o privatisation
o
▪ involved the selling of state owned companies to private
providers for profit
o deregulation
o
▪ removing - working conditions, taxes etc
o liberalisation
o shrinking the welfare state
o removing of keynesian policies
• undoing embedded liberalism
• government is not the solution to our problems. government is the
problem
• implementation of policies to extend markets and shrink the state
• belief that unleashing of the free market to increase economic growth that
will trickle down
- globalisation - trade
• has increased significantly since WWII
•
o value of merchandise trade
o services trade
• expansion of world trade
• new international division of labour
•
o complicates north-south divide
o south - increasingly crucial for the global economy - need to be
included in systems that govern it -
• trade has increased - change in its nature
•
o trade of agriculture from south - north - manufactured goods
o developing countries now specialising in manufactured goods
o developed countries now specialising in services and specialised
goods
o growing competition from the south - cheaper
- globalisation - production
• nature of production has changed
• production has become globalised
• goods now made across border - not a single factory
find more resources at oneclass.com
find more resources at oneclass.com
• undertaken by TNCS
•
o increasingly dominate the global economy
o makes protectionism difficult
o creates pressures for governments and states to implement
neoliberal policies to encourage TNCS to come to their borders
o more difficult to regulate these corporations - based across
multiple countries
- globalisation - finance
• global financial market
•
o emerges out of the abandonment of the gold standard
• changing balance between states and markets
•
o power now lies with TNCS and investors - more than states
- global governance
• new types of actors
•
o TNCS - increased leverage over governments - can implement
government policies - governing the global economy
o NGOS
o
▪ incredibly provide services that were once provided by
international organisations or states themselves
▪
▪ development etc
• shift from public to private authority
• governance the sum of the many ways individuals and institutions,
public and private, manage their common affairs"
• apolitical?
•
o continuation of politics by other means
- washington consensus
• push for south to adopt correct developmental policies - neoliberal
policies
•
o fiscal discipline and cutting spending
o cutting taxes, regulation and subsidies
o liberalising trade and investment
o privatisation - state owned enterprises
• underdevelopment due to lack of capitalist modernity in the south
• growing consensus amongst economic institutions about the correct
policies the need to be adopted to achieve development
• based on the rejection of the idea - lack of development of the sotuh - a
result of the unequal structure of global system
•
o rather to do with the south themselves - lack of capitalist
modernity
• imposing the washington consensus
find more resources at oneclass.com
find more resources at oneclass.com
