Readings22Stiles20.docx

13 views3 pages

For unlimited access to Textbook Notes, a Class+ subscription is required.

READINGS WEEK 22 STILES: CHAPTER 20 GLOBAL GOVERNANCE
INTRODUCTION
United Nations cannot impose their will unilaterally on the peoples of the world
International rules have existed and been respected and enforced the formulation of
these rules has often involved a systematic process of reasoning and debate between a
wide variety of actors
States had learned that although sovereignty and freedom were desirable above all
else, they came with an often heavy price
Global governance may be defined as an approach to politics and public policy that
transcends the nation-state and its formal institutions of government
ICBL has been actively involved in pressuring more governments to sign the treaty and
monitoring compliance by those who already signed it, being quick to criticize
governments it believes are dragging their feets
A wide array of private actors to discuss and draw up solutions to the world’s most
serious economic problems
A PRIMER ON INTERNATIONAL FINANCE
Countries are in some ways like a household, with a total cash flow involving
expenditures and revenues relative to the outside world
Where the country produces a currency that is not widely respected as a means of
exchange it must compensate
One way this is done is by pegging the currency to hard currency, like the US dollar
But international bills have had to be paid in hard currency
The goal is to have an international account balance of payments that is basically zeroed
out at the endo of the year
A government may seek to attract more capital on a short-term basis by raising the core
interest rates offered by the country’s central bank
Excessive public debt can undermine confidence in the country’s overall stability and
cause investors and speculators to sell off the currency
Since many countries with pegged systems also have weak law enforcement and various
forms of cronyism elites that prosper because their friends in government protect
them
To avoid these unpopular measures, countries look to another alternative devaluation
By devaluing the currency, the government automatically raises the price of all imports
and lowers the price of all exports
Unlock document

This preview shows page 1 of the document.
Unlock all 3 pages and 3 million more documents.

Already have an account? Log in

Get access

Grade+
$10 USD/m
Billed $120 USD annually
Homework Help
Class Notes
Textbook Notes
40 Verified Answers
Study Guides
1 Booster Class
Class+
$8 USD/m
Billed $96 USD annually
Homework Help
Class Notes
Textbook Notes
30 Verified Answers
Study Guides
1 Booster Class