Question 3

Kupchan

- crisis of governability: widening gap between electorate expectations and government's capabilities, impacts institutional efficiency (polarization, traditional tools are blunt) - China has been good at retaining control over policy instruments to reap benefits of globalization: illiberal states are keeping tighter grip on their societies - Pursue 3 Broad Strategies to meet challenges: (1) engage in economic planning on huge scale (2) leaders should channel electorate discontent to benefit mass public rather than special interests of party faithful (3) lead electorates from turning inward

Cassidy

-95% of income growth in the economy between 2010 and 2012 occurred to the 1%. -Central contradiction of capitalism: inequality grows when the rate of return on capital is higher than the economy's rate of growth. -Some people would argue that wage stagnation/rising inequality in developed world are acceptable price to pay for the benefits of globalization experienced by the worst off. -A possible worldwide solution of global tax on wealth combined with higher rates of tax on largest incomes.

Rodrik

-Capital and business are free to move across national borders while labor is not. -Advantage capital and disadvantage labor -Ex: threat of outsourcing forces labor to take pay cut -Labor must be given an equal say in setting rules of globalization and capital and labor mobility must go hand in hand. -Root of world economy failures are domestic governance failures: the best fix for the global economy is better domestic governance. -Should not reject globalization, unstick the labor market

Lund and Tyson

-Globalization is not retreat, but is changing in nature. -1986-2008: Global trade in goods and service rose dramatically, with wealth creation primarily centered in the developed world. -2008-Present: Continued rapid growth in digital information flows, the rise of micro-multinationals (Amazon sellers, Etsy, etc.), trade is growing between developing countries, GDP growth is increasing in developing countries, China is increasingly upholding the global trading order

Hu and Spence

-Globalization is under assault from populist backlash (free trade, growing calls of privacy rights and protection, cybersecurity, and an anti immigrant sentiment.) -developed countries have failed to mitigate negative side effects of international trade and rapid technological change -Internet optimism and the free flow of information has faded as fake news, Russian cyberattacks, and terrorist organizations using digital communication for recruiting has show that information technology can also be used to subvert the global liberal economic order. -Absence of a meaningful policy response in the US and UK and lack of concern among elite have aroused deep anger among those most affected by changes. -Predictions that globalization will soon end are too pessimistic -Protectionism and nationalism may attract temporary popular support but may threaten global peace.

Spence

-Labor saving technology means manufacturing jobs moving overseas has effected job growth --US employment is still growing in finance, engineering, and top management (high education jobs). -In the US, income and employment are high and rising for the highly educated, but diminishing for others leading to increasing inequality. -Advanced economies require less labor and labor intensive jobs, so these jobs will move to emerging economies. US will need to make tradeoffs between promoting employment and reducing income disparities (countries like Germany do this)

Dollar and Kraay

-Main claims of anti globalization movement is that the wealth gap is widening, however the current wave of globalization has actually promoted economic equality and reduced poverty. (India and China) -Inequality has gone up in some countries (China) and down in others (Philippines) -Policy makers must address 3 challenges: (1) stop growing protectionist movement in rich countries that aims to limit integration with poor ones, (2) developing countries need institutions and policies that allow them to prosper under globalization, which may be different from place to place, (3) more migration-- domestic and international-- must be permitted when geography limits potential for development. -The real growing inequality is a gap between countries in the developing world that have taken advantage of globalization and those that have not. -Shifts in income equality from within countries not globalization

Delong

-Past years have been seen as disappointing for working/middle classes of Global North -Plausible argument linking disappointing outcomes for blue collar workers to ongoing globalization. (expanded trade and eliminated high paying blue collar jobs, this had already been happening pre globalization) -Politicians have incentive to pin it on people other than themselves/those that voted for them, so they blame foreigners and politicize the debate. -Another retreat from globalization is likely because anti globalization forces have expanded to include populist right and left. -convenient buck passing for politicians. -Sensible public policy could solve our problems, specifically with more aggressive social insurance (unemployment, moving allowances, retraining, redistribution of government resources to create jobs where they have been loss).

Stiglitz

-Riots and protests against policies/actions of institutions of globalization isn't new, they are just new in developed countries. Benefits: sped up growth and economic development, longer life span and higher standards of living, and a reduced sense of isolation in the developing world where there is increasing access to technology and knowledge. Controversy: benefits it provides have drawbacks: ex) opening up Jamaican milk market to US imports hurt local farmers but allowed poor children to get milk quickly. -Vilification by being associated with American capitalism and the growing wealth gap. -Transition from communism to globalization markets has not been successful in all cases, in Russia poverty increased but it decreased in China. -Western countries of hypocrisy (ensured they have a disproportionate share of benefits at expense of developing world) -Possible the benefits of are less than the costs of environmental destruction, political corruption, and rapid change of pace that has not allowed for cultural adaptation. -Not all good or all bad

Abdelal and Segal

Discuss whether globalization has passed it's peak. - tech revolution will continue driving current wave of globalization (because communication is cheap and easy so corporations can spread across the globe) - barriers will start to rise (institutional foundations of globalization have weakened) -US, Europe, China are nervous about letting capital, goods, people move freely across borders. -growth of public skepticism/dissatisfaction with uneven distribution of globalization's benefits. -While Institutional foundations have weakened, globalization is unlikely to unravel completely.

Naim

Globalization is not a casualty of the economic crisis. Globalization is new. Globalization has never meant Americanization. Great Power politics have always been relevant. Globalization has not only benefitted the rich- it has benefitted India, China, and the emerging middle classes in Brazil, Turkey, Vietnam, and countless other countries. Globalization has not really made the world safer (increased forms of violent terrorism).

Keohane and Nye

Interdependence: refers to reciprocal effects among countries or among actors in different (usually two) countries. Globalism: is a form of interdependence that consists of a network of states connected through multiple relationships across continent. Economic Globalism: involves long-distance flows of goods, services, capital, and information. Social and Cultural Globalism: involves the movement of ideas, information, images and people over continental distances. Military Globalism: refers to long-distance networks of interdependence in which force or the threat of force is employed. (MAD is an example of high military globalism.) Environmental Globalism: refers to the long-distance transport of materials in the atmosphere or oceans, or of biological substances that affect human health and well-being. Globalization: refers to increasing (thick) levels of globalism. Modern Globalization: is characterized by increasing density of networks. States and domestic actors are being interdependence at multiple levels and in multiple ways. Is characterized by increasing levels of institutional velocity. The decreasing costs of communications is speeding up political, business, and cultural interaction. Decision-making and institutional or cultural change is taking place increasingly faster pace. Is characterized by increasing complex interdependence where economic, cultural, and environmental globalism is growing while military globalism is decreasing.

Frankel

The Benefits of Free Trade and Globalization: increases average economic growth rates, closes the gap between the income of rich states and that of poor states, economic growth will eventually result in better environmental policies, as previously poor countries will increasingly be able to afford pollution reducing technologies.