Global Issues Exam 2

Sovereignty

"exclusive legal authority over a population and territory." However, states must confront many different state and "non-state" actors (MNCs, NGOs, ISIS, etc.) as they seek to exercise their sovereignty.

Foreign aid: military aid

Military aid includes military financing, which our allies use to buy weapons, funding intended to advance counterterrorism and anti-narcotics initiatives, and money spent on efforts related to military operations in Iraq, Afghanistan and other nations. Most military aid dollars come from either the State Department's or the Pentagon's budget. --The top five recipients of U.S. military assistance in 2015 were Afghanistan, Israel, Iraq, Egypt and Pakistan.

MDCs and LDCs

-(the more-developed countries [MDCs]) - (the less-developed countries [LDCs]),

Africa/slave trade/triangular trade/reparations

discussion video

types of globalization

political, social (cultural), economic

Iron Curtain

At the end of World War II, the Bretton Woods agreements fashioned a global arena for capitalist free trade and open competition for markets that was in direct opposition to the Soviet economic system. As a result, the Soviet government moved decisively to further extend its economic and political power into larger and larger "spheres of influence." It seized the territories that its armies had liberated at the end of World War II, moving to take economic and political control of Eastern Europe, and as Winston Churchill observed, an "iron curtain" fell between Eastern and Western Europe.

drivers of globalization

The four main areas of drivers for globalisation are market, government; cost and competition

advantages of economic globalization

Jobs, capital, more choices for consumers

Other nongovernmental actors include

businesses, often referred to as transnational corporations (TNCs). - examples Nike, Apple, Toyota,

Ethiopia Foreign Aid

discussion video

Nations

nation-state is generally used loosely to mean "country," it is technically defined as a single nation within the boundaries of a single state. It combines the concepts of state, territory, and nation (people) explained earlier.

Soft power

the ability to attract others -- The iPhone: conducts ideas that aids in soft power that aids in soft power of the U.S.-sometimes neglected

Smart Power

the ability to combine hard and soft power truly smart power: diminishes desire of other nations to align against you in coalitions smart power comes from civil society: the wide array of non-governmental and not-for-profit organizations that have a presence n public life

Globalization

the evolution of a single worldwide network for producing and exchanging money, goods, and services. --which can be defined as "the intensification of economic, political, social, and cultural relations across borders"In sum, globalization offers a multitude of advantages to people throughout the world, from greater wealth to more choices in consumer products.

States

(also referred to as a country) is a political unit that has sovereignty over a geographical area.

Human Development Index

--To get a more "holistic" picture of a state's development, in 1990 the United Nations Development Programme established the Human Development Index based on three variables: adult literacy, life expectancy, and per capita incomes. --Human Development Index (HDI), which gives equal weight to three factors of development: life expectancy at birth, educational attainment (based on the adult literacy rate and mean years of schooling), and per capita purchasing power.

Human Development

--the multidisciplinary study of how people change and how they remain the same over time --the scientific study of the changes that occur in people as they age from conception until death

Power

A simple definition of power is "the ability to get others to do what they would not have otherwise done."

International trade negotiations/WTO

But in 1995, during the last round of GATT talks, the World Trade Organization was created. The purpose of the WTO is to negotiate all global trade disputes with the goal of moving the entire global economy toward greater trade liberalization. Since the WTO now has global jurisdiction and a mandate to enforce trade liberalization on a worldwide scale, the Washington Consensus has in effect become the international law of trade.

Colonial economic policies and consequences

Colonialism is a political, economic, and social system in which one group of people, the core or dominant group, controls the political and economic lives of another group of people, the peripheral or dominated group. Colonialism usually signifies direct political control as well as economic control of another group. Colonies usually provide the core countries with cheap labor, raw materials unavailable at home, cheap commodities, and markets for goods produced in the core country. - Consequnece: Typically, vast revenues flow out of the periphery while relatively little investment flows in.

Fiscal Austerity

Controlling government spending and taxation with a preference for balanced budgets. Demands for fiscal austerity were central elements of the IMF's structural adjustment programs. --Political-economic policy aiming to reduce government budget deficits through spending cuts or tax increases

Colonialism consequence: direct rule

Core countries used both direct and indirect methods to rule the periphery. Direct rule created strong centralized bureaucratic administrations in the urban areas populated by Europeans. These bureaucracies generally followed European norms of property, individual freedom, civil rights, and justice. Indigenous peoples participated in urban colonial bureaucracies, but only at the lowest levels, with little hope of advancement. Direct rule was founded on principles that were clearly racist and was brutally enforced with advanced industrial weaponry.

disadvantages of economic globalization

Exploitative; only benefits a few; gap between rich and poor

Bretton Woods Institutions: GATT and WTO

Finally, to keep the Bretton Woods negotiations an ongoing part of international financial stability, the Allied countries resolved to keep meeting to make adjustments to the Bretton Woods agreements as needed. This resolution became known as the General Agreement on Tariffs and Trade (GATT). Twenty-three countries signed the first GATT treaty in 1947, and eventually 125 countries participated in the 1986-1994 GATT rounds of negotiations. These negotiations eventually ended with the creation of the World Trade Organization (WTO) in 1995, whose mission is to eliminate any current barriers to trade.

Colonialism consequences: indirect rule

Indirect rule ceded power in the rural areas to local indigenous chieftains and warlords. In doing so, indirect rule created deep divisions among ethnic groups, tribes, and villages, as these strong and ruthless leaders were both armed and granted almost unlimited powers by colonial governments. In rural areas, systems of brutality and corruption became a way of life, supported and reinforced by distant urban administrators. Direct and indirect rule worked more or less side by side to enable a relatively small group to exert control over a much larger population. Terror, corruption, racism, and ethnic tensions turned out to be powerful tools that the core countries used to divide, conquer, and exploit their vast holdings in the periphery. All the while, capital kept flowing back to the core

socialism

Pure socialism is an economic system in which the state owns and controls all the capital used in the production of goods and services. Almost all individuals are employed directly or indirectly by the state, and government assumes the major responsibility for employment, education, healthcare, and living conditions. -In socialism, governments can assume totalitarian powers over the individual that threaten human freedom and stifle individual innovation.

disadvantages of political globalization

Unwanted external influence difficult to keep out

Ethnic nationalism

arose in the East and the South as a response to the West. It is based on ethnicity. Ethnic nationalism draws its ideological bonds from the people and their native history. It relies on elements that are considered purely unique to a group, such as collective memory, common language and values, and shared religion, myth, and symbolism. It is dependent on blood ties, bonds to the land, and native traditions.---Ethnic nationalism is viewed as having more negative characteristics, such as being more exclusive due to its emphasis on ethnic links between people. In other words, if you don't share the common history, language, and other ethnic ties, you are not part of the nation

Actors on the World Stage

- states (countries),-International Governmental Organizations (IGOs),-Nongovernmental Organizations (NGOs),-Multinational Corporations (MNCs, also sometimes referred to as Transnational Corporations or TNCs)- individuals.

Anticolonial nationalism

---nationalism offers many people a sense of belonging and meaning. In addition, it has rallied oppressed people to demand freedom. For example, in places like Africa, nationalism led to anticolonization.-----this had a dramatic effect on the world. As colonies rejected their colonizers, countries became independent, sovereign states. As a result, the decolonization of the twentieth century led to a dramatic increase in the number of states.

portfolio investment

--Foreign portfolio investment (FPI) refers to investing in the financial assets of a foreign country, such as stocks or bonds available on an exchange. This type of investment is at times viewed less favorably than direct investment because portfolio investments can be sold off quickly and are at times seen as short-term attempts to make money, rather than a long-term investment in the economy. --Portfolio investments typically have a shorter time frame for investment return than direct investments. As with any equityinvestment, foreign portfolio investors usually expect to quickly realize a profit on their investments. --As securities are easily traded, the liquidityof portfolio investments makes them much easier to sell than direct investments. Portfolio investments are more accessible for the average investor than direct investments because they require much less investment capital and research.

comparative advantage

A more important aspect of conditionality was the World Bank's power to decide precisely what projects would receive funding. In doing this, the World Bank employed the principle of comparative advantage, which maintains that if one country has a lower relative cost in producing a certain commodity, then it is to the advantage of all trading partners that the specializing country produces that commodity. Thus LDC economies became tied to rather rigid terms of trade, where they were encouraged to specialize in agricultural products like cotton and peanuts and use the export profits (foreign exchange) to buy whatever else they needed. This made sense because agriculture tends to be laborintensive and LDCs generally have a surplus of labor.

disadvantages of cultural globalization

Cultural imperialism

Example of globalization

Technology is perhaps the most visible aspect of globalization and in many ways is its driving force. Communications technology has revolutionized our information systems.

Present globalization

in the United States, grocery stores and shops at the local mall are stocked with items produced abroad. Likewise, hats and T-shirts adorned with the logo of Nike, Adidas, and the New York yankees, for example, are easily found outside of the United States. In many countries, Taylor Swift, Rhianna, and other US music groups often dominate radio waves, the BBC and CNN dominate television screens, and the avengers and other Hollywood films dominate theaters. -globalization in the past was characterized by companies becoming more global,

Thai Bamboo School

video quiz

Trade liberalization

which can be defined as the removal or reduction of the free exchange of goods between countries, in the LDCs.

upside of globalization

"Computer, television, cable, satellite, laser, fiber-optic, and microchip technologies [along with nano- and cyber-technology are] combining to create a vast interactive communications and information network that can potentially give every person on earth access to every other person, and make every datum, every byte, available to every set of eyes" (Barber 1992: 58). Technology has also aided the increase in international trade and international capital flows and has enhanced the spread of Western, primarily US, culture.-Some skeptics caution that while interdependence and technological advancement have increased in some parts of the world, this is not true for the vast majority of third world countries

third phase of globalization:

"Globalization 3.0 is shrinking the world from a size small to a size tiny and flattening the playing field at the same time" (2005: 10). Whereas globalization in the past was characterized by companies becoming more global, this third phase is unique due to "the newfound power for individuals to collaborate and compete globally" (2005: 10). For instance, radiologists in India and Australia interpret CAT-scan images from the United States, telephone operators in India answer calls for major US corporations, and Japanese-speakers at call centers in China serve Japanese customers. Thus the playing field is being leveled and individuals and small companies from all over the world, including poor countries, can now compete in the global economy.

Grameen Bank

--"In 1976, as his impoverished country faced famine, Bangladeshi Mohammad Yunus, a university professor, came up with the idea that became the Grameen (village) Bank. Yunus lent $26 of his own money to women making bamboo furniture so that they could invest in the materials they needed to make a living. --In subsequent years, he continued to lend both his own money and money he borrowed to poor people, particularly women, who were ignored by the commercial banking system because they lacked any sort of collateral. The Grameen Bank turned traditional logic on its head, betting that those who were too poor and marginalized to get conventional loans were actually good credit risks. The goal was to empower the poorest of the poor by giving them access to capital. --The Grameen Bank is at the center of a global network of micro-lending institutions that fight poverty from Bangladesh to the United States -- One of the reasons that micro lending has proven so successful is that repayment rates are surprisingly high. The Grameen Bank's repayment rates have been around 95 percent... Micro-lending schemes are often run in small communities, and generally rely on community ties and peer pressure to ensure loan repayment. Women are targeted not just because they tend to be more marginalized within society, but also because they are seen as more community oriented, and, in turn, more likely to repay their debts.".

Export promotion

--"export promotion," or taking steps to assist exporters -- Export promotion techniques have included direct export subsidies, easy credit for exporters, and undervalued exchange rates (which make exports cheaper). --Some countries have used both export promotion and protectionism in tandem to improve national competitiveness and trade balance sheets. --Some countries have used both export promotion and protectionism in tandem to improve national competitiveness and trade balance sheets. --They may emphasize the expansion of exports through a strategy known as industrial policy. --A favorable trade balance also can be sought through an industrial policy that promotes exports, especially in products that offer the strongest growth prospects. The simplest technique is a DIRECT EXPORT SUBSIDY, in which the government pays a domestic firm for each good exported, so that it can compete with foreign firms that otherwise would have a cost advantage. --Such policies have at least three motivations. 1) First, by increasing production in the chosen industry, they reduce the unemployment rate. 2)Second, by enabling firms to gain a greater share of foreign markets, they give them greater leverage to increase prices (and profits) in the future. 3) Third, increasing exports will improve the balance of trade and avoid the problems of trade deficits.

Import Substitution

--"import substitution," or protectionism against imports to help local producers gain a larger share of the local market. -- Protectionist steps include tariffs (taxes on imported goods) and "Non-Tariff Barriers" (NTBs), which include such measures as "voluntary" export restraints, health and safety standards, and administrative requirements (for example, customs procedures for imported goods). --Some countries have used both export promotion and protectionism in tandem to improve national competitiveness and trade balance sheets. --states from Latin America to South Asia to Africa have seen extensive protectionist strategies, helping local producers control local markets. -Protectionist policies include many forms of import restriction designed to limit the purchase of goods from abroad. All allow domestic import-competing industries to capture a larger share of the market and, in the process, to earn higher profits and to employ more workers at higher wages. The most traditional barriers are taxes on imports called tariffs, or import duties, but they are no longer the main form of protectionism in most countries. --protectionism also harms the consumer by raising prices even while it benefits domestic firms that compete against imports.

down side of globalization

----------There is widespread agreement that communications, trade, and capital are moving at unprecedented speed and volume.------The same technology that connects people throughout the world for good causes, such as the transmission of valuable healthcare products and information, also enables groups like ISIS to recruit via social media

religion and nationalism

----The potential for violence often increases when the causes of nationalism and religion overlap. This is because nationality and religion are the two most powerful forms of identification in the world today.----Nationalism and religion are also the only two forces in the modern world that can legitimate social violence (as opposed to personal violence). A soldier who kills for her country is a hero. A person who dies for their religion is a martyr. Killing or dying in the name of your country or religion is not only accepted but also highly honored in most societies.

Poverty/inequality trends in the US since the Great Depression

---Poverty in the United States declined from the 1940s through the mid1970s, largely as a result of policy changes begun under Franklin D. Roosevelt's New Deal. Changes included the creation of Social Security; the GI Education Bill for World War II veterans; support for strong labor unions; Medicare; food and housing assistance programs; assurance of civil rights; minimum wages and overtime bonuses; progressive income and estate taxes; and insured, but regulated, financial institutions. Workers shared in the gains from increasing productivity. INEQUALITY: Over this period, inequality in the United States decreased dramatically. In 1928, the top 1 percent of US households garnered 23 percent of the nation's income. During the mid-1970s, their share was only 9 percent, as the income shares of every other sector had increased.

Myth #1: U.S. spends too much on foreign aid

---The United States consistently spends only about 1 percent of its budget on foreign aid - including military and economic support. The 2015 aid tab totaled $43 billion. ---Americans tend to believe that their government spends a far bigger share of its budget on foreign aid than it does. In a survey the Kaiser Family Foundation published two years ago, it found that, on average, Americans believe that foreign aid accounts for more than a quarter of the budget. Only 5 percent of those polled answered correctly that foreign aid constituted 1 percent or less of total federal spending.

Myth #3: Corrupt governments squander U.S. aid

---You may think that foreign aid consists of government-to-government transfers of money. But governments channel most aid through nonprofits, public-private partnerships, private companies like Chemonics International and John Snow Incorporated, and multilateral organizations such as the United Nations and the World Bank. ---In fact, according to the OECD's Creditor Reporting System, only 37 percent of U.S. ODA went directly to governments in 2015 - and that includes other countries distributing the assistance rather than receiving it. The rest of that funding bypassed governments altogether: NGOs received 26 percent of the money, multilateral organizations 20 percent, and other organizations, such as universities and research institutes, 18 percent. ---When Simone Dietrich at the University of Essexresearched this question, she found that the United States chooses to outsource foreign aid to NGOs especially in countries like Sudan and Sri Lanka with bad governance and more corrupt leaders who are likely to squander or swipe those funds. ---It's impossible to argue that corrupt governments never squander U.S. foreign aid. They do. But it is important to understand that most aid never enters the coffers of those corrupt governments in the first place.

Tariffs and non-tariff barriers

--A non-tariff barrier is any measure, other than a customs tariff, that acts as a barrier to international trade --These include: -----regulations: Any rules which dictate how a product can be manufactured, handled, or advertised ------rules of origin: Rules which require proof of which country goods were produced in ------quotas: Rules that limit the amount of a certain product that can be sold in a market.

LDCs in a disadvantage from particular World Bank policies

--But these particular World Bank policies put the LDCs at a global disadvantage in at least five ways. -- FIRST, land that had formerly been used for domestic food production was placed into highly specialized and more mechanized commodity crop production. In this process, many poor farmers lost their livelihoods as small plots of land were consolidated into large agricultural complexes. These displaced farmers often migrated to overcrowded cities that were unable to absorb this new influx of people into the existing industrial base, infrastructure, or education and healthcare systems. Without jobs or education, these individuals became a permanent underclass plagued by poverty, illiteracy, and disease. --SECOND, this intense industrialized agriculture demanded specialized seed, fertilizer, pesticides, herbicides, and machinery that had to be purchased from the MDCs, adding to already ballooning debt. ---THIRD, planting the same crop over and over often degraded fragile ecosystems. In some LDCs, land began to lose fertility. --FOURTH, many LDCs became net importers of food with no effective means of national food distribution. Famine claimed more and more lives in the LDCs, not necessarily because there was no food, but because displaced peasants were too poor to buy relatively expensive imported food. Ironically, both food production and hunger grew globally during this time. --FIFTH, the LDCs never fully realized enough profit from their agricultural exports, because although the World Bank required them to drop all tariffs and subsidies, many of the MDCs they wanted to trade with continued to heavily subsidize their own domestic agricultural commodities in order to protect MDC farmers from cheap imports. For example, the United States continued to subsidize its cotton farmers, making US cotton some of the cheapest cotton in the world. Most LDCs, no matter how efficiently they produce any commodity, cannot compete with heavily subsidized commodities from MDCs. And LDCs cannot enact their own subsidies without alienating the World Bank and IMF. Without sufficient foreign exchange from trade to pay their bills, debt in the LDCs kept growing throughout the 1980s and 1990s.

classic liberalism

--Classic liberalism, associated with the writings of Adam Smith and his successors, was an 18th and 19th century response to feudalism, the arbitrary rule of monarchs, and the state-focused colonialist mercantilism seen as the Westphalian state system took hold. --In politics, it centered on establishing the rule of law, constitutional procedures, and individual liberties. --In economics, the focus was on open markets, free trade, and protecting private property. --Smith believed that if individuals were allowed to pursue their own self-interest ("self-love"), then the "invisible hand" that developed through market exchanges would allocate resources much more efficiently than governments ever could, leading to "universal opulence." He rejected the zero-sum (win-lose) rationality of state-centric mercantilism and thought free markets could lead to a natural division of labor and win-win economics.

FDI

--Foreign direct investment (FDI) refers to investments made by an individual or firm in one country in a business located in another country. Investors can make foreign direct investments in a number of ways. Some common ones include establishing a subsidiary in another country, acquiring or merging with an existing foreign company, or starting a joint venture partnership with a foreign company. -Foreign direct investment (FDI) involves establishing a direct business interest in a foreign country, such as buying or establishing a manufacturing business, building warehouses, or buying buildings. --Foreign direct investment tends to involve establishing more of a substantial, long-term interest in the economy of a foreign country.1 Due to the significantly higher level of investment required, foreign direct investment is usually undertaken by multinational companies, large institutions, or venture capital firms. Foreign direct investment tends to be viewed more favorably since they are considered long-term investments, as well as investments in the well-being of the country itself. -At the same time, the nature of direct investment, such as creating or acquiring a manufacturing facility, makes it much more difficult to liquidate or pull out of the investment. For this reason, direct investment is usually undertaken with essentially the same attitude as establishing a business in one's own country—with the intention of making the business profitable and continuing its operation indefinitely. For the investor, direct investment means having control over the business invested in and being able to manage it directly. It also involves more risk, work, and commitment compared to foreign portfolio investment.

WTO disputes settlement

--Since 1946, GATT, which evolved into the World Trade Organization (WTO) in 1995, has convened eight major negotiating sessions (referred to as "rounds") in which nations exchange reductions in trade barriers. This bargaining is necessary to overcome the inclination of most nations to retain their own trade barriers while hoping other countries will lower theirs. The World Bank supports the effort by lending money to nations that might otherwise seek trade-limiting solutions to their financial problems. The IMF facilitates trade by providing a stable monetary system that permits the easy exchange of national currencies and the adjustment of trade imbalances. The result has been a dramatic increase in global trade. --Since the advent of the WTO, only one round of trade negotiations has convened at all, and since it commenced in Doha, Qatar, in 2001, it has remained hopelessly deadlocked. -WTO dispute resolution mechanism has provided a forum for diverting the inevitable skirmishes over trade into the legal arena rather than the military realm. Immediately after the controversial steel tariff introduced by President Bush in March 2002, the European Union (EU) lodged a complaint that was upheld by the WTO. This episode demonstrated that if mercantilist policies are controversial in the nations that enact them, they are met with even greater hostility by the nations with which they trade.

"Consequences of trade"

-Because trade affects such a broad range of social outcomes, conflict among alternative goals and values is inevitable. As a result, both individuals and governments must face dilemmas that involve the multiple consequences of trade, the multiple goals of national policy, and the multiple values that compete for dominance in shaping behavior --some gain material benefits from trade while others lose. Thus, to choose one trade policy and reject others is simultaneously a choice of one income distribution over another. As a result, trade is inevitably politicized: each group pressures its government to adopt a trade policy from which it expects to benefit. -Trade policy also benefits some classes at the expense of others, a point more often emphasized by those who favor greater governmental control. -Trade determines who will be employed and at what wage. It determines what natural resources will be used and at what environmental cost. It shapes opportunities and constraints in foreign policy.

neo-liberalism

-By the 1980s, many in the international community, led by U.S. President Ronald Reagan and British Prime Minister Margaret Thatcher and often called the "neo-liberals," believed that states had gone too far in trying to regulate and cushion the cycles of capitalism. Neo-liberals, through what was known as the "Washington Consensus," wanted to push more market oriented solutions in state political economic strategies, often using the IMF and World Bank as key organizations that could demand market-oriented reforms for needed loans. In essence, the pendulum between classic and contemporary liberalism had swung back toward more classic liberalism. This swing of the pendulum coincided with a dramatic rise in globalization, income inequality (see the case study in this module on the United States), and the power of MNCs on the global stage. -Since the 1980s, a key emphasis of the IMF, World Bank, and Western governments, often lumped together as the neo-liberal "Washington Consensus", has been to push states toward open markets and market efficiency. Moving past protectionist strategies, countries have been encouraged to adjust the structures of their economies (i.e., "Structural Adjustment") and embrace an open global marketplace. - Of course, no state can truly meet this free market ideal and all states at times set "rules of the game" that protect certain sectors, attempt to guide their economy, and impact the work of key actors (MNCs, NGOs, IGOs, etc.).

Colonialism consequences

-The consequences of colonialism were mixed for both the core and the periphery. For the peripheral territories (not yet countries), colonialism left a legacy of capital drain, exploitation, bureaucratic corruption, and ethnic and religious rivalries. -Colonies were most often developed to provide one particular resource, or cash crop, to the dominant country. Instead of evolving diverse and resilient economic systems, colonial economies were actually quite fragile. If a population in the periphery produced primarily cotton, and global cotton markets collapsed, the indigenous people had little else to fall back on and suffered bitter consequences.

mercantilism

-mercantilism, which originated with the trade policy of European nations, especially England, from the sixteenth century to the middle of the nineteenth. -While mercantilists do not oppose trade, they do hold that governments must regulate it in order for trade to advance various aspects of the national interest. The aspirations of mercantilists go beyond the immediate consumption gains emphasized by liberals, to include long-term growth, national self-sufficiency, the vitality of key industries, and a powerful state in foreign policy. -They are especially wary of trade patterns that offer immediate benefits but constrain long-term growth. --For example, the slow-growing African economies specialize in the export of mining and tropical agriculture products that do not require either skilled labor or high technology. Because neither the products themselves nor their production techniques have changed much in decades, such specializations are developmental dead-ends. Furthermore, many poor countries are dangerously reliant on just a few such products. Two-thirds of African countries generate more than half of their export revenues from just three or fewer products. In six African countries, one product accounts for more than 85 percent of exports. --Mercantilists also observe that the rosy evaluation of trade advanced by Smith and Ricardo was predicated on their expectation that any given nation's imports would more or less balance its exports. However, when a nation's imports are greater than its exports—meaning that it buys more from other nations than it sells to them—mercantilists warn that this trade deficit carries with it potential dangers that may not be readily apparent.

Jeffrey Sachs (2015), a key figure in developing the Sustainable Development Goals, names four elements of good governance:

1) Accountability. Regardless of the economic or political organization, both governments and businesses must be accountable for their actions. 2) Transparency. With few exceptions, decisions and policies set by both public officials and private entities must be open, to ensure accountability. 3) Participation. Regardless the system, citizens and stakeholders need access to, and must take responsibility for, participation in shaping and enforcing policies of government and business entities. 4) Responsibility. Individuals, businesses, and governments have a responsibility not to harm others, including through pollution. This might be framed as the "do no harm" or "polluter pays" principle.

MNCs

A multinational corporation (MNC) has facilities and other assets in at least one country other than its home country. A multinational company generally has offices and/or factories in different countries and a centralized head office where they coordinate global management. These companies, also known as international, stateless, or transnational corporate organizations tend to have budgets that exceed those of many small countries. -Apple Inc. is a great example of a multinational enterprise, as it tries to maximize cost advantages through foreign investments in international plants.

Myth #2: U.S. spends more than its fair share

According to the Organization for EconomicCo-operation and Development (OECD), the United States is by far the leading source of economic assistance dollars. In 2015, it contributed $31 billion in ODA, far outpacing the $18.7 billion spent by the United Kingdom, the second-biggest source of that kind of aid. --That only tells part of the story, however. The United States spends very little on foreign aid relative to the size of its economy, particularly compared with other rich countries. The U.S. spent about 0.17 percent of its GNI on ODA in 2015. By comparison, Sweden, the top contributor by this metric, gave 1.4 percent of its GNI in overseas development aid that year. The United States ranks among the bottom third of OECD countries, close to Portugal and Slovenia, in ODA spending. ---In 1970, the United Nations General Assembly agreed that "economically advanced countries" would aim to direct at least 0.7 percent of their national income to ODA. Although developed countries have repeatedly mentioned this target in agreements and at summits since then, very few countries have reached that goal. In 2015, only six countries met the 0.7 percent target. The OECD average is just 0.3 percent - almost twice the 0.17 percent the U.S. provides.

Aggregate demand

Aggregate demand is an economic measurement of the total amount of demand for all finished goods and services produced in an economy. Aggregate demand is expressed as the total amount of money exchanged for those goods and services at a specific price level and point in time. Aggregate demand over the long-term equals gross domestic product (GDP)because the two metrics are calculated in the same way. GDP represents the total amount of goods and services produced in an economy while aggregate demand is the demand or desire for those goods. As a result of the same calculation methods, the aggregate demand and GDP increase or decrease together. Factors that can affect aggregate demand: - changes in interest rates -income and wealth -change in inflation expectations - currency exchange rate changes

Keynes v. Hayek

At the onset of the Great Recession and in the midst of crisis in 2009, the ideas of John Maynard Keynes saw a comeback, as evidenced by the almost $1 trillion stimulus package in the United States. This step by the Obama administration rekindled the debate between more "contemporary liberals," who believe that states can soften the booms and busts of volatile markets by maintaining "aggregate demand," and more classic liberals (today sometimes called neo-liberals), who rely more on market forces and see government involvement in the economy as often exacerbating as opposed to alleviating economic downturns. --Keynes' approach to stimulating a depressed economy:More Government spending to increase aggregate demand ---Keynes biographer (Robert Skidelsky) sums up Keynes with three ideas, including: ------Nothing can stop a downward spiral and growing unemployment in a depressed economy unless the government steps in with public spending to replace a lack of private spending -------Markets are inherently volatile ----According to Keynes (as discussed by his biographer Robert Skidelsky), volatile markets can punish: Millions in society, for the mistakes of a few, causing social unrest HAYEK: Friedrich Hayek believed that the prosperity of society was driven by creativity, entrepreneurship and innovation, which were possible only in a society with free markets. He was a leading member of the Austrian School of Economics, whose views differed dramatically from those held by mainstream theorists.

Bretton Woods Institutions: IMF

Bretton Woods agreements was an institution called the International Monetary Fund (IMF), to advise countries and loan them money to help pay their debts and balance their budgets. Before the IMF, when countries owed money to other countries, they were tempted to devalue their currencies (usually by printing more money). This left their creditors holding nearly worthless currency. Through financial subscriptions and quotas from member countries, the IMF amassed a pool of money to be used for loans to help cover these debts and prevent devalued currencies. Though countries then became indebted to the IMF, national currencies remained stable. To aid nations in paying off their debts, the IMF would also make recommendations for cost-cutting measures that would free up money in national budgets for debt repayment. The original ten country members of the IMF were known as the Group of 10 (G-10) and still meet periodically today (now as the Group of 12). -The IMF offers loans when countries face severe downturns and budgetary crises,

Cold War and the global economy

Cold War, which dominated international politics from the end of World War II (1945) through 1991. During that period, the Cold War had as much impact on post-World War II international capital flows as did the Bretton Woods agreements. --------- So while the United States and the Soviet Union never directly fired a shot at each other, they did engage each other all over the world for control of minds and hearts certainly, but also for the markets, raw materials, and cheap labor abundant in the periphery. Alongside the very real accomplishments of Bretton Woods, the Cold War created a new, increasingly unstable global arrangement. Populations in the core generally lived secure and increasingly abundant lives. Populations in the periphery lived increasingly with civil war, corruption, and underdevelopment. ----------- -In 1949, when communism also spread to the PRC, which embarked on its own program of political domination and consolidation in Asia, the United States assumed a new global role as the defender of free trade and open capitalist markets worldwide. The official US policy from the 1950s through the 1980s would be to "contain" the spread of communism in general, and Soviet and Chinese power in particular. The West and East were locked in a new "cold" war.

Foreign Aid: economic assistance

Economic assistance includes all programs with development or humanitarian objectives. That tends to include projects related to health, disaster relief, the promotion of civil society, agriculture and the like. Most economic aid dollars come from the State Department budget, including spending allocated by USAID. --According to data from the nonprofit Security Assistance Monitor, the top five recipients of U.S. economic assistance in 2015, the most recent year for which comparative data are available, were Afghanistan, Kenya, Ethiopia, Nigeria and Tanzania. --Official development assistance (ODA) constitutes the vast majority of U.S. economic assistance. This funding must be "concessional," which means that some portion of it must consist of grants rather than loans. Military expenditures and peacekeeping expenditures don't count. O---nly countries that are considered low- and middle-income based on their gross national income (GNI) per capita are eligible. For example, Israel, the second-largest recipient of U.S. military assistance (see below), is ineligible for those overseas development funds, although it did receive $10 million in other economic aid in 2015. --While taxpayers are spending just a few bucks each on ODA, the impact is profound, saving millions of people from hunger, averting the worst of natural disasters like droughts and flooding, tackling life-threatening diseases like tuberculosis and malaria, and more.

the best approach to bringing the economic periphery into the twentieth century.

Essentially, advocates of the Washington Consensus argued that opening markets in the developing world to unrestricted free trade, initiating programs for fiscal responsibility, and encouraging privatization and foreign investment would be the best approach to bringing the economic periphery into the twentieth century.

European economic integration

European integration was launched in 1951 with the founding of the European Coal and Steel Community (ECSC), which internationalized an industry that was key not only for the economies of the six nations involved but also for their war-making potential. With production facilities scattered among different countries, each became dependent on the others to provide both demand for the final product and part of the supply capacity. This arrangement fulfilled the liberal dream of an interdependence that would prevent war by making it economically suicidal. In fact, the ECSC was an innovative form of peace treaty, designed, in the words of Robert Schuman, to "make it plain that any war between France and Germany becomes, not merely unthinkable, but materially impossible" (Pomfret 1988: 75). The most recent step to encourage European trade was the creation of a new regional currency, the euro, to replace national currencies in 2001. Freed from the complications of multiple currencies that fluctuate in value, trade and investment flourished, but the Greek debt crisis (discussed later) demonstrates that the resulting interdependence can transmit negative conditions like financial instability across national borders just as surely as it can spread prosperity.

floating v. fixed exchange rates

FLOATING - based on supply and demand; allows a more flexible economy --Essentially the United States was not holding enough gold reserves to back up every US dollar. The US and world economy had grown too large to be tied to one precious metal, and it was Nixon's hope that the US and world economy could expand almost endlessly. Taking the United States off the gold standard inaugurated a system of floating exchange rates, which remains today. When exchange rates float, world currencies, including the US dollar, can fluctuate in value. Financial markets take on an increased importance, as buying, selling, and speculating on the price of currencies becomes as much a part of everyday economic activity as buying, selling, and speculating on the price of wheat. Ensuring global financial stability—the job of the International Monetary Fund—becomes critical in such a system, and after 1971 the IMF became a more powerful force in regulating world finance. FIXED- want to maintain a country currency value

Post-WWII development strategies!

Following the destruction of World War II, the United States was able to achieve economic superiority, through such initiatives as the Marshall Plan, which was a comprehensive aid package that helped rebuild Europe and Japan. The end of World War II also saw the Union of Soviet Socialist Republics, or Soviet Union (now known as Russia), become a world power, which set the stage for the Cold War. Finally, without European armies and capital to support colonial domination, populations in the periphery saw their chance to achieve sovereignty. Through rebellion and negotiation, many colonies would eventually seek and achieve independence over the next twenty-five years.

Bush and steel tariffs

For example, in response to pleas from the US steel industry, President George W. Bush imposed a temporary 30 percent tariff on various types of imported steel in 2002. Because the import tax effectively added 30 percent to the price of steel imports, the US steel industry could benefit from this protection against foreign competition by increasing its share of the market, by raising its own prices, or by some combination of the two. A larger market share or higher prices, or both, would certainly increase the profits of US steel firms, which would benefit steel executives and stockholders, and perhaps permit higher levels of employment and wage rates, which would benefit steelworkers. Steel producers argued that the respite from foreign competition brought idled mills back online and kept teetering plants from shutting down, resulting in the resurrection of 16,000 steel jobs. ---The entire economy of steel-producing areas would be boosted by the tariff, because steel companies would purchase more goods from their suppliers, executives and workers would purchase more products, and the multiplier effect would spread the gains in jobs and profits throughout the regional economies where the steel industry is concentrated—Pennsylvania, Ohio, and West Virginia. In fact, critics contended (and White House officials only halfheartedly denied) that the main purpose of the tariff was to boost the president's reelection prospects in those key electoral states. --However, these gains represent only one side of the distributional effect, because there are losers as well as winners. For example, by making foreign-produced steel more expensive, the tariff also harmed domestic automakers, who had to pay higher prices for the steel they used. Indeed, the representatives of auto-producing states like Michigan and Tennessee denounced the tariff. The president's own economic advisers, led by Treasury secretary Paul O'Neill, also opposed the tariff, bolstered by liberal theory's contention that the total losses would outweigh the total benefits. A report by the International Trade Commission estimated the cost to industries that consume steel at more than $680 million per year (USITC 2003). This episode illustrates that most barriers to trade harm consumers because of higher prices, a point always emphasized by proponents of free trade.

Post-WWII development strategies! Bretton Woods Agreements

For the first time, the United States took a leadership role in these global negotiations, and in 1944 hosted the United Nations Monetary and Financial Conference among the Allied nations in Bretton Woods, New Hampshire. These meetings resulted in the Bretton Woods agreements. The organizers of the Bretton Woods agreements believed that liberal economics, freely flowing capital, and open markets held the keys to a more secure and peaceful world. Instead of secret alliances and trading blocs that resulted in nations fighting over raw materials and markets for finished goods, tariffs and protectionism would be minimized and all nations would have equal access to markets. -There were three basic tasks to be accomplished under the agreements: 1)stabilizing all national currencies 2), creating institutions and mechanisms for nations to manage their currency valuations, and 3) financing the reconstruction of the battered European economies. -In the Bretton Woods agreements, the first order of business was to stabilize currencies by means of fixed exchange rates. Fixed exchange rates facilitate trade by giving all nations the confidence that the currencies they hold today will continue to have a stable value tomorrow. Connecting the value of a currency to an independent commodity like gold could solve the problem. -But currencies naturally tend to fluctuate whenever countries experience severe budget imbalances. So the second creation of the Bretton Woods agreements was an institution called the International Monetary Fund (IMF), to advise countries and loan them money to help pay their debts and balance their budgets -.Third, the Bretton Woods agreements created the International Bank for Reconstruction and Development (IBRD), to aid in the reindustrialization of Europe. The IBRD would eventually become part of a group of institutions known simply as the World Bank Group, or World Bank. -Finally, to keep the Bretton Woods negotiations an ongoing part of international financial stability, the Allied countries resolved to keep meeting to make adjustments to the Bretton Woods agreements as needed. This resolution became known as the General Agreement on Tariffs and Trade (GATT). Twenty-three countries signed the first GATT treaty in 1947, and eventually 125 countries participated in the 1986-1994 GATT rounds of negotiations. These negotiations eventually ended with the creation of the World Trade Organization (WTO) in 1995, whose mission is to eliminate any current barriers to trade. -For those who participated in them, the BRETTON WOODS AGREEMENTS coupled with the ambitious MARSHALL PLAN and other development aid programs, succeeded in rebuilding war-torn economies and sustaining US levels of production.

Global political economy-historical background

For the people in any country to prosper, it is critical that they have CAPTIAL, in the form of goods, services, and money. Economic productivity and trade most often generate this capital, but some countries also receive loans and aid (official development assistance [ODA]) from other countries in order to increase the supply of capital. In addition, private corporations can invest directly into a country by building a company there (foreign direct investment [FDI]), or invest in the stock market in that country (foreign portfolio investment [FPI]). These flows of money into a country through trade, loans, aid, and investments are critical to the ability of any country to develop. Of course, capital also flows out of all countries in the form of payments for goods and services and to reduce debt. Government officials, business leaders, and citizens all want to see more capital flowing into their country than out, so as to foster growth and development. --capital that helps create the jobs that eventually support literacy, healthcare, and a higher standard of living.

Foreign Aid

Foreign aid consists of money, goods and services - like training - that official government agencies provide to other countries. Foreign aid falls into two broad categories: economic assistance and military (or security) assistance.

Pros of free trade

Free trade agreements are designed to increase trade between two or more countries. Increased international trade has the following six main advantages: - 1) Increased Economic Growth: The U.S. International Trade Commission estimated that NAFTA could increase U.S. economic growth by 0.1%-0.5% a year.2 - 2) More Dynamic Business Climate: Without free trade agreements, countries often protected their domestic industries and businesses. This protection often made them stagnant and non-competitive on the global market. With the protection removed, they became motivated to become true global competitors. - 3) Lower Government Spending: Many governments subsidize local industries. After the trade agreement removes subsidies, those funds can be put to better use.3 - 4) Foreign Direct Investment: Investors will flock to the country. This adds capital to expand local industries and boost domestic businesses. It also brings in U.S. dollars to many formerly isolated countries.4 - 5) Expertise: ​Global companies have more expertise than domestic companies to develop local resources. That's especially true in mining, oil drilling, and manufacturing. Free trade agreements allow global firms access to these business opportunities. When the multinationals partner with local firms to develop the resources, they train them on the best practices. That gives local firms access to these new methods. - 6) Technology Transfer: Local companies also receive access to the latest technologies from their multinational partners. As local economies grow, so do job opportunities. Multi-national companies provide job training to local employees.6

Mercantilism in development

From 1500 to 1800, mercantilist trade policies and the slave trade dominated trade between the core and periphery. From the point of view of the colonizer, the idea was to protect industry at home and extract as much profit from the colony as possible. -Colonizers ignored traditional native claims to property and created huge plantations for commodities like sugar, coffee, tobacco, cotton, and rice. Along with these agricultural commodities, lumber, furs, gold, and silver flowed out of the periphery and into the core. -Additionally, some 9-15 million Africans were forcibly transported to the Americas during this time as slaves— forming what has come to be known as the Triangular Trade (see Figure 1). -The slave trade was also incredibly profitable. Slaves made huge agricultural plantations possible because native populations often escaped when pressed into service. In addition, native populations had no natural defenses for diseases like smallpox and measles that the colonists brought with them. Colonies in the Americas were especially lucrative. Money flowing into Europe from these colonies financed industrial development, personal luxury, and eventually war.

Dollar Standard after WWII (fixed rates)

In 1944, delegates from 44 Allied countries met in Bretton Wood, New Hampshire, to come up with a system to manage foreign exchange that would not put any country at a disadvantage. It was decided that the world's currencies couldn't be linked to gold, but they could be linked to the U.S. dollar, which was linked to gold. The arrangement, which came to be known as the Bretton Woods Agreement, established that the central banks would maintain fixed exchange rates between their currencies and the dollar. the U.S dollar was officially crowned the world's reserve currency, backed by the world's largest gold reserves. Instead of gold reserves, other countries accumulated reserves of U.S. dollars. Needing a place to store their dollars, countries began buying U.S. Treasury securities, which they considered to be a safe store of money. ----The demand for Treasury securities coupled with the deficit spending needed to finance the Vietnam War and the Great Society domestic programs caused the United States to flood the market with paper money. With growing concerns over the stability of the dollar, the countries began to convert dollar reserves into gold. ---The demand for gold was such that President Richard Nixon was forced to intervene and de-link the dollar from gold, which led to the floating exchange rates that exist today. Although there have been periods of stagflation—high inflation and high unemployment—the U.S. dollar has remained the world's reserve currency.

MDGs

In 2000, the United Nations adopted eight Millennium Development Goals (MDGs) to guide its efforts to tackle developmental challenges around the world between 2000 and 2015. These goals were broad ranging, from addressing extreme poverty to improving maternal health to ensuring environmental stability. By the time the MDGs expired in 2015 much progress had been made across most of the goals, though many challenges remain. eight Millennium Development Goals (MDGs): 1) Eradicate extreme poverty. 2) Achieve universal primary education. 3) Promote gender equality and empower women. 4) Reduce child mortality. 5) Improve maternal health. 6) Combat HIV/AIDS, malaria, and other diseases. 7) Ensure environmental sustainability. 8) Undertake a global partnership for development.

SDGs

In September 2015, the UN adopted 17 new Sustainable Development Goals (SDGs) to guide its development efforts until 2030. This lesson introduces these broad efforts to improve lives and foster more holistic development. Examples: - no poverty - zero hunger - good health and well-being - quality education - gender equality -clean water and sanitation affordable and clean energy -decent work and economic growth - industry, innovation, and infrastructure - reduced inequalities - sustainable cities and communities - responsible consumption and production - climate action - life below water -life on land -peace justice and strong institutions -partnerships for the goals --The Sustainable Development Goals (SDGs), also known as the Global Goals, were adopted by all United Nations Member States in 2015 as a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity by 2030. --Through the pledge to Leave No One Behind, countries have committed to fast-track progress for those furthest behind first. That is why the SDGs are designed to bring the world to several life-changing 'zeros', including zero poverty, hunger, AIDS and discrimination against women and girls.

Privatization

In addition, the IMF has pushed countries toward privatization, which often means countries are encouraged to sell the development rights to their own natural resources, like oil, to private corporations. Often, these private corporations are foreign multinationals located in the MDCs. Social services, like education and healthcare, are also privatized. As a result, the privatization of common resources and community services has increasingly become a byproduct of trade liberalization. Both privatization and liberalization envision a world where private corporations have unlimited access to internal domestic economies.

Smoot Hawley Act

In fact, declining from their peak in the 1930s, tariff levels throughout the world are now generally very low. In the United States, the average tariff rate reached a modern high of 59 percent in 1932 under what has been called "a remarkably irresponsible tariff law," the Smoot-Hawley Act, which has been widely credited with triggering a spiral of restrictions by other nations that helped plunge the global economy into the Great Depression of the 1930s. The average tariff rate in the United States was reduced to 25 percent after World War II and declined to about 2 percent after the Uruguay Round of trade negotiations concluded in 1994.

Dilemmas of Free Trade

International trade is often treated purely as an economic matter that can and should be divorced from politics. This is a mistake, because trade not only shapes our economy but also determines the kind of world in which we live. The far-reaching consequences of trade pose fundamental choices for all of us. Citizens must understand those consequences before judging the inherently controversial issues that arise over trade policy. More than that, we cannot even make sound consumer decisions without weighing carefully the consequences of our own behavior.

Anti-state nationalism

It is the unifying ideology of a people who oppose what they see as an illegitimate state. This often takes the form of anticolonialism: a group of nationalists unite and organize their people in order to overthrow a foreign, colonial state.

Keynes/contemporary liberals

Keynes argued that governments had a role in softening the volatile booms and busts of unconstrained capitalism by making sure that workers received their fair share of the benefits, so that there was enough "aggregate demand" in the system to buy the products that were produced. He supported the establishment of social safety nets (through public education, health care, etc.) and sensible regulations (such as protecting clean air and water). Importantly, Keynes was a liberal, sometimes called a "contemporary liberal," who was trying to fix capitalism and save it from communism. -When depressions hit and there was downward spiraling unemployment, Keynes believed governments, as the only spender left standing to keep people on the job, should step in and start spending, even if they were already in debt. This step is exactly what occurred during the 1929 Great Depression, during the "Great Recession" which began in 2008-2009, and during the COVID-19 pandemic that emerged in 2020. In essence, Keynes believed governments should "save in good times" when the market was running smoothly, but "spend in bad times" to keep people on the job, maintain enough buying power in the economy, and start an upward spiral. At the international level, Keynes was one of the key architects of the IMF and World Bank after WWII, which he saw as establishing the needed shock absorbers in the international economy. The IMF offers loans when countries face severe downturns and budgetary crises, and the World Bank provides long term loans for development projects.

advantages of cultural globalization

Offers exposure to other cultures

Poverty/inequality trends worldwide and in U.S.

POVERTY: poverty in some LDCs led to crime and social unrest, which came to dominate local government policies. Illegal crops like poppies in Afghanistan or coca in Latin America fueled a worldwide drug trade. Some individuals in LDCs who felt their land had been taken from them unjustly, openly rebelled. Some famine-stressed countries erupted into civil war. Thus, crime and civil strife have led some governments to purchase arms and weapons for controlling the violence. At a time when education, healthcare, and jobs are desperately needed, many countries have used precious foreign exchange and even borrowed more heavily to arm themselves against rebels and criminals. All the while, the debt in the periphery has continued to mount.

What international organization did John Maynard Keynes help create in the aftermath of the Great Depression:

The IMF

Washington Consensus and "structural adjustment"--

The IMF, fearful that global economic crises might become epidemic if the less-developed countries unilaterally devalued their currencies, began an aggressive series of loans to the LDCs with even stricter conditions. These new conditions imposed by the IMF are often collectively called structural adjustment programs. -- Such programs have become very controversial in recent years, because through them the IMF has directly influenced the internal budgets of sovereign nations. -- Specifically, structural adjustment programs have required some national governments to make large budget cuts in education and healthcare programs. --Some countries have been instructed by the IMF to cut their education and social service budgets by as much as 40 percent, to enable them to balance their budgets and make greater payments on their debts. At the very least, these kinds of cuts create severe hardships for the poorest of the poor, and at worst they can exacerbate the types of social unrest many LDCs experience. --Structural adjustment programs have also called for the privatization of public services like healthcare, education, and even public utilities like water. Without financial support from the government, the cost of these services can rise beyond the reach of individuals with even moderate incomes, jeopardizing their well-being.

NAFTA

The North American Free Trade Agreement (NAFTA) is an agreement among the United States, Canada and Mexico designed to remove tariff barriers between the three countries. --Since NAFTA guarantees that imports can enter the United States without tariffs, some US businesses move to Mexico, where production costs are lower, and US workers lose their jobs in the process. --NAFTA meant gains in wealth but also greater inequality and insecurity for workers. --NAFTA became a referendum on what kind of society people wished to live in --The first trade dispute under NAFTA involved a challenge by the United States to regulations under Canada's Fisheries Act, established to promote conservation of herring and salmon stocks in Canada's Pacific Coast waters. Soon thereafter the Canadian government challenged US Environmental Protection Agency regulations that require the phasing out of asbestos, a carcinogen no longer permitted as a building material in the United States

Conditionality

The World Bank reasoned that developing exports in the less-developed countries required sizable loans for large-scale infrastructure and agricultural investments. While the LDCs were eager to obtain financial capital, the money itself was offered only if certain conditions were met—a process called conditionality.

Cons of free trade

The biggest criticism of free trade agreements is that they are responsible for job outsourcing. There are seven total disadvantages: - 1) Increased Job Outsourcing: Why does that happen? Reducing tariffs on imports allows companies to expand to other countries. Without tariffs, imports from countries with a low cost of living cost less. It makes it difficult for U.S. companies in those same industries to compete, so they may reduce their workforce. Many U.S. manufacturing industries did, in fact, lay off workers as a result of NAFTA. ​​One of the biggest criticisms of NAFTA is that it sent jobs to Mexico.7 - 2) Theft of Intellectual Property: Many developing countries don't have laws to protect patents, inventions, and new processes. The laws they do have aren't always strictly enforced. As a result, corporations often have their ideas stolen. They must then compete with lower-priced domestic knock-offs. - 3) Crowd out Domestic Industries: Many emerging markets are traditional economies that rely on farming for most employment. These small family farms can't compete with subsidized agri-businesses in the developed countries. As a result, they lose their farms and must look for work in the cities. This aggravates unemployment, crime, and poverty - 4) Poor Working Conditions: Multi-national companies may outsource jobs to emerging market countries without adequate labor protections. As a result, women and children are often subjected to grueling factory jobs in sub-standard conditions - 5) Degradation of Natural Resources: Emerging market countries often don't have many environmental protections. Free trade leads to depletion of timber, minerals, and other natural resources. Deforestationand strip-mining reduce their jungles and fields to wastelands. - 6) Destruction of Native Cultures: As development moves into isolated areas, indigenous cultures can be destroyed. Local peoples are uprooted. Many suffer disease and death when their resources are polluted. - 7) Reduced Tax Revenue: Many smaller countries struggle to replace revenue lost from import tariffs and fees

elephant chart: globalization .

The original elephant chart, reproduced in Figure 1, records the income growth of each ventile of the global income distribution over the course of 20 years. It has been used as evidence to support four stylized facts about who has benefited from globalization:The global elite, in particular the top 1 percent, have enjoyed massive income growth over the past decades. Their high income growth, coupled with a high initial share of income, implies they continue to capture a large share of global income growth. This can be seen in the elephant's raised trunk.The global upper middle class has seen its income stagnate with zero growth over two decades for the 80th This appears to corroborate data showing stagnant real wage growth and other frustrations fueling populist politics in rich countries. This can be seen in the depth of the trough at the base of the elephant's trunk.The global middle class has risen rapidly as select developing countries have begun to converge toward rich countries. Countries like China have lifted large impoverished populations into the middle class. This can be seen in the graph's peak at the elephant's torso.The global extreme poor have largely been left behind, with several countries stuck in a cycle of poverty and violence. This can be seen in the elephant's slumped tail

globalization: COVID

The virus that causes COVID-19 spread rapidly from China across the planet in 2020, given the deep social, economic, and operational connections that exist in the 21st century's globalized world.

advantages of political globalization

Weakens power of authoritarian governments

This threefold definition of sustainable development—

economic growth, environmental sustainability, and social inclusion

hard power

effective when faced with threats -a coercive approach to international political relations, especially one that involves the use of military power

Civic Nationalism

is associated with the Western experience and is based on citizenship rather than on ethnic linkages. The nation-state is seen as the core of civic nationalism. Its main role is to promote the principle that a society is united by territoriality, citizenship, and civic rights and legal codes transmitted to all members of the group. All members of this society, regardless of their ethnicity or race, are ideally equal citizens and equal before the law.----Civic nationalism is more inclusive than ethnic nationalism because anyone can potentially become a member of the nation. For example, Americans primarily experience civic nationalism, while Kurds are primarily ethnic nationalists.---Civic nationalism is typically seen as the "good" form of nationalism.

Types of power

military economic soft

Capitlism

pure capitalism is an economic system in which almost all capital is owned and controlled privately, and incentives for increasing social wealth are directly linked to the personal desire to increase one's individual fortune. Government primarily acts as a watchdog to prevent abuses, and employment, education, and healthcare are largely private concerns. -In capitalism, the private drive for individual wealth and profit can override community interests and endanger the common good. -While classic liberalism was on the rise in the 18th and 19th centuries, the Great Depression of 1929 can be seen as a turning point, with thinkers such as John Maynard Keynes arguing that the unregulated capitalism of classic liberals is prone to recessions and depressions, extreme inequality, and, often, harsh exploitation.

Nationalism

shared sense of identity based on important social distinctions that has the purpose of gaining or keeping control of the group's own destiny. it arises from many different sources including Shared ethnicity, language, religion, culture, history, and geographical proximity all generate feelings of comradeship and belonging to a certain group.-----Although the roots of nationalism began before the end of the eighteenth century, most scholars point to the French Revolution as the defining moment for nationalism.---From its origins in Europe, it has spread to every corner of the world. Nationalism is also a complicated concept that encompasses a wide range of expressions. It can be inclusive or exclusive, violent or nonviolent. It depends on the environment in which it develops, on the will of the leaders shaping it, and on how all the people involved imagine it.

Pro-state nationalism

supports the existing state. It tends to originate in, or at least be guided by, the rulers of the state and is often termed official nationalism. It acts as the link between a unified people and their legitimate government.

Bretton Woods Institutions: World Bank

the Bretton Woods agreements created the International Bank for Reconstruction and Development (IBRD), to aid in the reindustrialization of Europe. The IBRD would eventually become part of a group of institutions known simply as the World Bank Group, or World Bank. Initially, however, the IBRD was underfunded, and greater flows of capital were needed to jumpstart the economies of Europe. A plan developed by then-US secretary of state George Marshall, called the Marshall Plan, sent billions of extra dollars ($17 billion between 1948 and 1954) in grants to sixteen Western European countries. The decision to help rebuild even the economies of defeated Germany and Japan shows the degree to which US economic growth in this period depended on these rebounding markets. Without markets, economies simply cannot continue growing. --the World Bank provides long term loans for development projects.

NGO- (non-state actor)

the Red Cross, Greenpeace, Amnesty International, World Vision, and Doctors Without Borders --Nongovernmental organizations (NGOs) working on global issues are part of what is called civil society. For instance, in recent decades there has been a dramatic increase in the number of NGOs seeking to make the world a better place (NGOs are sometimes referred to as international nongovernmental organizations [INGOs]). NGOs, as their name implies, work outside the government and comprise individual citizens working together on one or more problems. There are many well-known NGOs working on global issues: the Red Cross, Greenpeace, Amnesty International, World Vision, and Doctors Without Borders are just a few of the thousands that exist. Because these NGOs are often made up of highly motivated people in the middle of a war or refugee camp, they can often achieve results that countries cannot.----Other nongovernmental actors include businesses, often referred to as transnational corporations (TNCs). Nike, Apple, Toyota, and many other TNCs have gained increasing power in recent years to affect global issues. Many critics complain that, due to their economic strength and global networks, TNCs exercise too much power.

IGO

the United Nations, the World Bank, or the UN Children's Fund (UNICEF) -Often, countries get together and form international governmental organizations (IGOs). The logic is that by cooperating through an IGO—like the United Nations, the World Bank, or the UN Children's Fund (UNICEF)— countries are better equipped to achieve a common goal, like preventing war or alleviating poverty, that they could not accomplish on their own. Goldstein (2011) argues that the UN's peacekeeping efforts have been a central factor in reducing war over the past few decades