1. Globalization and Economy
Lesson 8

2. Is Globalization an economic matter?
New forms of technology are the backbone of globalization… they drive social transformations
Intensification and stretching of economic interrelations
Is economy the major globalizing force?
Is Globalization an economic matter?

4. Bretton Woods New International Economic Order: Bretton Woods
Reversing protectionist policies
Expand international trade
Stabilize money exchange system (US Dollar Gold value)
Limiting political and economic agendas of single states
Bretton Woods

5. 3 pillars of the new order
Three new international economic organizations:
1) International Monetary Fund (IMF)
2) International Bank for Reconstruction and Development (later World Bank)
3) General Agreement and Tariffs and Trade (GATT) later World Trade Organization (WTO)
3 pillars of the new order

6. Neoliberal revolution
Golden age of state controlled capitalism: rising wages, social security, investments, political compromise
It breaks down in the early 1970s: USA abandon the gold based fixed rate to increase competitiveness
Neoliberal switch: political forces around the world act to globalize the liberalization of economy and leave state interventionism
Neoliberal revolution

7. Economic globalization
Collapse of the Communist system ( ): further globalization of the neoliberal model
A) Internationalization of trade and finance (New Economy, speculations and Automaton)
B) Power of transnational corporations (TNC and globalization from above and resistance)
C) Enhanced role of transnational institutions (IMF, WB, WTO and the “Washington consensus” and structural adjustment programs)
Economic globalization