Tuesday, September 10, 2013
Other meanings of globalization?
• Impacts of distribution of economic and political power.
• Globalization of Media, culture, political institutions, financial institutions
• Globalization (economic): the elimination of economic borders and the increase in international
exchange (trade, investment)
• Human rights
What changes have occurred?
1. The breakup of the Soviet Block and the Demise of Communism
i. These economies are not centrally assent, elections exist.
2. The emergence of trading blocks
i. N.Afree trade agreement, EU. Emerged throughout the world
3. Mid 1970s: Decline of U.S. Economic Power
i. Rise of Germany and Japan. (Japan has been for the last 10 years) Competitions between
4. New technology
i. Development of technology in such a way you can produce good in a variety of
geography. Company would use to manufacture items in one country, now different steps
are done in different countries, taking advantage of cheap labour.
5. Rise of the BRICs
i. Brazil, Russia, India, China, and SouthAfrica. Dynamism of the country (does not apply
to S.Africa) Economies are big and have impact on things, and have formal meetings
which started in 2009.
• Multinational Corporations: more powerful that many Global South Governments
o Make demands to industrialized countries, Private Banks are also enormous actors.
• Governments of Global North countries (U.S.)
o Also other European governments and even in Canada and have been interested in market
integration. Government of G.S have been enthusiastic about market integration and
market liberalization, adopted and formed ideas.
• Multilateral Lending Institutions
o World Bank
o International Monetary Fund
Give loans in condition to carrying out certain policy. Some overlap between the
Politics of where the idea came from and the way they insert themselves into
Global North countries.
Aprocess that was driven by power of ideas.
• World Trade Organization
o In charge of trade and investment rules on a global scale. Subject to heavy lobbying,
subject to the demand and power of developed countries. Heavily lobbied by
• Governments and Blocks of Global South Countries (e.g. BRICS, Group of 77,ALBA)
o Not all gone to market reform, many resisted.
• Civil Society, trade union organizations
o Economic globalization, didn’t take long to figure out a lot of the policy changes in the
80s/90s/2000s, many changes were coming from outside the country. Civil society Lecture 2
Tuesday, September 10, 2013
organizations don’t’have partners in developing countries. Not international
organizations, then organizations with close international ties.
o Cheap labour, lower environmental standards, companies will close down and move
south. Tension between interest of workers of the Global North and South. Many cross
border trade alliances.
o Resistant to the kind of strategies that government is pushed by multilateral corporations.
Division within the Global South
• Success ofAsian NICs (South Korea, Taiwan, Singapore, Hong Kong)
o Improve living standards, done with low inequality. Success for entering the developed
world. IMF noticed and came to the conclusion that the success was because the state not
• Less successful, second string NICs (Indonesia, Malaysia
o [Brazil and Mexico]
o Brazil was quite successful, but Mexico has slow economic growth and high poverty rate,
one disaster after another. [By early 90s, all market reform. Mexico was going to join
NAFTA, which none happened]
• China and India [the Great success stories of market reform?]
o High economic growth rate and poverty reduction
o Success was the Use of market liberalization
o Questionable argument
o Done many things that Global South were told not to do
• The “Fourth” World
o UN Classification
o Most Sub SaharanAfrican countries (also include Haiti)
Lowest gross income per capita, worst figure in literacy
Constant upheaval and civil war, high degree of physical insecurity
• Oil Producers
o The country would receive lots of revenue and be able to invest. Actual fact: opposite
happens. (Norway, Mexico, Nigeria, Middle East)
o Large countries, increase in corruption neglect of agriculture and manufacture.
o It’s possible that a strong state to manage mineral well, stabilization fund in Norway and
does not allow to do the things that happened in other countries.
Meanings of “Development”: from Growth in Income, to Sustainable Development, to the Human
• Heavily Contested
• GNP (Gross National Product) per capita: the total value of all the goods and services produced
by a country in a year, in US dollars, including income from abroad, divided by the population.
o Very acceptable, rich countries with high GNP. This concept became roundly criticized
by people; some felt GN