GEOG 130 Lecture Notes - Lecture 14: Colin Leys, World Trade Organization, Apax Partners
30 Apr 2018
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KNOW GLOBALIZATION TRIANGLE MODEL
Your book states:
- The s aked the eegee of gloalizatio as the latest stage i the eolutio
of the gloal politial eoo. p.
- Gloalizatio is a iteatioal egie i hih the eooi iteests of
multinational corporations and other nonstate actors (IMF and the WTO) are coming to
supesede the iteests ad poe of idiidual states p..
- The book states that the power has shifted from nations (empires) to multinational
institutions......
- What do you think?
- What is Globalization???
o Globalization is creating two types of people cut across national boundaries,
diided ito the fast ad the slo aodig to Riardo Petrella, a futurist for
the European Union.
o Due to the access to computer-based information and communications
technologies.
o Colin Leys defines new international regime as a world:
▪ Dominated by multinational corporations.
▪ Regulated by the International Monetary funds
▪ Enforced by the military might of the United States.
- Components of Globalization
o Capital
o Cheap Labor
o Infrastructure
o Goods
o Markets
o Technology
o Raw materials/resources
o Governmental willingness
o Transportation cost
- What is Globalization?
o Is the opening of national economies to the flow of international goods,
capital, and ideas.
o Removes obstruction of movement of goods and create conditions that are
favorable for trading in which economies can expand.
o Think about countries as fortune 500 companies.
- Post WWII:
o Import-Substitution Industrialization (ISI): This new approach led to an economic
growth from 1950- 1975. The idea was to create a national pride, discourage
imports, and encourage manufactures of goods within the country.
find more resources at oneclass.com
find more resources at oneclass.com
o Export-Oriented Industrialization (EOI):A policy designed to encourage the
manufacturing industry to produce for foreign markets.
o New Development Strategy: Latin American countries restructured their
economies and adopted policies recommended by the IMF and World Bank.
- Oil Crisis (1970s)
o In the 1970s, there was a shortage of oil and other raw materials.
o However, Latin American countries benefited Mexico, Venezuela, Colombia,
Ecuador, and Trinidad.
o In the early months of 1973 oil was $3 a barrel. By 1979 when another shortage
hit it was trading for $40 a barrel.
o Many countries took the opportunity to increase the pace of development and
found banks around the world that were willing to finance their economic
growth.
o OPEC countries emerged.
- Lost Decade (1980s)
o Oil prices increased.
o Too much borrowing money.
o High interest rates.
o Slow economic growth.
o Economy did not keep up with the population growth.
o Per capital decline.
o Less wealth distributed.
o Gap between rich and poor increased.
o Iflatio ose. E. Boliia’s iflatio as ,% ad Meio as ,%
o Government cut back on social programs.
o Poverty level rose.
- Globalization (1990s)
o 1990: The decade of the World Bank and IMF (The New Model)
o Structural Adjustment: It was the mechanism used by financial organizations to
assure loans.
o Severe spending reductions in government,
o Balance the budget (no deficit),
o Eliminating trade barriers,
o Cutting social subsidies,
o Encouraging exports,
o Devaluing currencies,
o Removing artificial barriers to foreign investment.
o Price reforms
o Wage restraints
o Institutional reforms
- Globalization: Medellin
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
The book states that the power has shifted from nations (empires) to multinational institutions Infrastructure: capital, cheap labor, goods, markets, technology, raw materials/resources, governmental willingness, transportation cost. Import-substitution industrialization (isi): this new approach led to an economic growth from 1950- 1975. In the 1970s, there was a shortage of oil and other raw materials: however, latin american countries benefited mexico, venezuela, colombia, In the early months of 1973 oil was a barrel. Exports surged in the 1990s as the united states granted temporary trade preferences to colombia, allowing many of its products to enter the world"s largest market duty- free. They really took off after 2002, when washington expanded that agreement to include. Humming assembly lines making ralph lauren socks and levi"s jeans sprang up across this picturesque andean valley, creating tens of thousands of jobs and turning medellin into a model of the curative power of liberalized trade.
