Presentation on theme: "Globalization and Its Discontents. IR Theories on the EU Liberalism –Institutions –Domestic politics and intergovernmental bargains –Functionalism –"— Presentation transcript:
Globalization and Its Discontents
IR Theories on the EU Liberalism –Institutions –Domestic politics and intergovernmental bargains –Functionalism – functional spillover Constructivism –Norms of democratic community Realism?
Globalization Globalization: Global networks of interdependence (Nye 2004) Interdependence: mutual dependence of actors across different parts of the international system (Keohane and Nye 1977) “…globalization is about connections between different region of the world-from the cultural to the criminal, the financial to the environmental- and the ways in which they change and increase over time….”(Held et al. 1999)
Elements of Globalization Trade –Exports: $66bn (1960) -$7,100bn (2002) International finance –FDI: $68bn (1960) $7,100(2002) Multinational corporations –3,500 (1960) to 65,200 (2001) Regional integration
Elements of Globalization Cultural globalization Disease Environmental interdependence Population and migration Transnational trafficking networks Transnational terrorism
Trends: FDI Flows
Trends: Trade Flows
Sources of Globalization Technology Triumph of liberalism –Francis Fukuyama: The End of History? –Washington Consensus Institutions –WTO –International Monetary Fund (IMF) –World Bank
Is Globalization Good or Bad?
Benefits of Globalization Access to information Access to goods Access to technology Access to capital
The Risks of Globalization States lose control Heightened vulnerability Benefits distributed asymmetrically Economic objectives trump social, cultural, environmental objectives
Case: From the Asian Miracle to the Asian Financial Crisis The miracle: –South Korea: 7%-8%average growth 1970s-1990s; –Thailand: 7%-8.5% growth rate s 1990s: rapid financial market liberalization 1997 Financial Crisis –Thailand: fear of currency devaluation->sell baht->currency devaluates- >capital flight; financial instability; –Korea: rumor that economy in trouble/bank will not renew loans -> banks unwilling to renew loans ->economic trouble due to high indebtedness –Korea: GDP -7%; Thailand: GDP -11%
Case: Intellectual Property Rights (Biopiracy) Mexican yellow bean –Larry Proctor (Colorado) patent on “Enola” bean, originally from Sonora (Mexico) Basmati rice –RiceTec Inc (Texas)-Texmati Rice patent
The global banana Distribution of a dollar of retail revenue: –Producer income $0.05 –Export costs$0.04 –Transport$0.11 –Import license$0.09 –Ripening process$0.05 –Taxes$0.15 –Distribution/retail$0.34 –Profit$0.17 Source: Lipschutz,2004, p. 2
The Backlash: Seattle 1999
Solutions, Solutions…. The Role of Institutions Keynesian welfare politics? Domestic institution? Gradual liberalization, mitigated by government policies? Strengthen international institutions? Tackle poverty?