Lecture 7 Notes

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Published on 6 Apr 2011
School
UTSC
Department
International Development Studies
Course
IDSB04H3
IDSB04- Lecture 7 Chp. 9 November 16/2010
What is globalization?
-See Table 9-1 p.424” Key
-Not new generally: an old historical process
-Migration and diffusion of people, ideas and resources, goods, capital,
technology etc.
-Increasing interconnection and interdependence via particular political-
economic relations that compress time, space and cognition
-Process of greater integration within world economy through movements of
goods and services, capital, technology and labour, which lead increasingly to
economic decisions being influenced by global conditions
The New globalization.
-Pace at which it occurs
Much faster now
-Underwritten by hegemonic ie dominant and largely unquestioned ideology:
neoliberalism
-Globalization good or bad?
depends on circumstance, generally good
Neoliberal economic model
-re-read p164-170
-1960’s serioes of global energy and financial crisis leas to recession, higher
interesst rates, higher interest rates, higher price of oil and other commodities
-Countries forced (irresponsibly?) to borrow heavily to pay for imports leading
to massive debt
-Several countries began to default on their loans
1980’s?
To stabalize these countries and to entice them to pay back loans, IFI’s step in
promoting, in effect, neoliberalism
Neoliberal economic model
- Belief in infallibility of market
-Deregulation of economy – marketself-regulated’
-Liberation and expansion of trade and global markets
-Inflation control
-Tax cuts and government downsizing
-Reductioon in spending and privatization of social services
-Stricter controls on organic labour
-Abandonment of public health and safety protections
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IDSB04- Lecture 7 Chp. 9 November 16/2010
ie health inspectors at processing plant at food manufacturing plants
-Economic growth as a primary aim as a redistribution center
The new globalization
-Global [promotion of ‘free markets\ through neoliberalism and liberalization
of trade
-Result MAY include economic growth, but also:
Reduction of subsidies for poor
Cost recovery/ user fees for essential services
Privatization of public assets
Weakened role of government
Growing dominance of western-based transnation capital
High military expenditure
Growth more or less equitably distributed? Yes in the long term
UNDP \global inequality in income and living standards have reached
grotesque proportions
Globalization: good or bad for health?
- depends on who controls it ie the flow of capital, labour, and
lkmnowledge around the world AND who benefits from it.
Global trade regime and WTO
-what is WTO?
founded in 1995 as permanent suprabody to replace GATT
Administers trade agreements and negotiations
Monitors and enforces trade policies
Resolving disputes internally; appeal panel decisions binding
Promotes \laissez-faire
Mandate to eliminate import tariffs, lower subsidies, homogenize
rules.
153 members, governs 90% global trade
overseas member countries implementation of actions to lower custom
tariffs and other trade barriers or also known as protectionism
expands GATT’s mandate by covering intellectual poverty and
services as well as goods
include trade and envirmental regulations
-In practice, do rules apply equally to all?
no they don’t it seems, b/c many countries went through this process
of protecting their industries are telling the countries that want this
kind of economic growth to open up their markets
-Dp all benefit equitably?
-Are economic growth, comnnercial rights and public interest weighed
equitably?
-How democratic is the global trade regime?
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Document Summary

Not new generally: an old historical process. Migration and diffusion of people, ideas and resources, goods, capital, technology etc. Increasing interconnection and interdependence via particular political- economic relations that compress time, space and cognition. Process of greater integration within world economy through movements of goods and services, capital, technology and labour, which lead increasingly to economic decisions being influenced by global conditions. Underwritten by hegemonic ie dominant and largely unquestioned ideology: neoliberalism. 1960"s serioes of global energy and financial crisis leas to recession, higher interesst rates, higher interest rates, higher price of oil and other commodities. Countries forced (irresponsibly?) to borrow heavily to pay for imports leading to massive debt. Several countries began to default on their loans. To stabalize these countries and to entice them to pay back loans, ifi"s step in promoting, in effect, neoliberalism. Liberation and expansion of trade and global markets. Reductioon in spending and privatization of social services. Abandonment of public health and safety protections.