War Capitalism, Sovereignty & The Great Divergence

War Capitalism

• War capitalism refers to the initial phase of capitalist development characterized by exploitation, enslavement, and violence in the pursuit of profit, primarily through colonial practices.
• The concept appeared in Sven Beckert's work, highlighting the brutal methods used to establish global capitalism.
• An example includes the forced labor and plantation systems in the Americas, where enslaved people were subjected to extreme conditions to produce commodities like cotton and sugar.

Sovereignty

• Sovereignty is the supreme authority within a territory, implying the right to rule without external interference.
• The concept is discussed in Frieden, Lake, and Schultz (FLS), emphasizing its importance in international relations and state autonomy.
• An example is a nation's ability to set its own trade policies or immigration laws without direct intervention from other countries.

The Great Divergence

• The Great Divergence describes the process by which Europe industrialized and grew much faster than other parts of the world, starting in the 18th and 19th centuries.
• It's discussed in Beckert and Milanovic, examining the factors that contributed to Europe's economic dominance.
• Examples include technological advancements, access to resources, and institutional developments that propelled Europe's industrial revolution while other regions stagnated or declined.

Late Development

• Late development refers to countries attempting to industrialize and catch up with already developed nations.
• It acknowledges the challenges faced by these countries, such as competition from established industries and the need for strategic state intervention.
• Policies adopted include protectionism, state-led investment, and technology transfer initiatives to foster domestic industries.

Mercantilism

• Mercantilism is an economic theory and practice that promotes governmental regulation of a nation's economy to increase state power at the expense of rival national powers.
• FLS discuss it as a historical system where governments controlled trade to accumulate wealth, especially gold and silver.
• Examples include the use of tariffs and subsidies to protect domestic industries and the establishment of colonies to provide raw materials and markets.

Economic Openness

• Economic openness refers to the extent to which a country allows goods, services, capital, and labor to flow freely across its borders.
• It's associated with policies such as free trade agreements, deregulation, and investment liberalization.
• Pursuing policies to encourage countries to engage in global trade to boost growth.

Tariff

• A tariff is a tax imposed on imported goods or services.
• Tariffs are often used to protect domestic industries, raise revenue, or retaliate against unfair trade practices.
• Example: A country imposes a 20% tax on imported steel to make domestic steel more competitive.

Economic Globalization

• Economic globalization is the increasing integration of national economies through trade, investment, migration, and technology.
• It leads to increased interdependence and interconnectedness among countries.
• Example: The growth of multinational corporations with operations in multiple countries.

Structural Power

• Structural power refers to the ability to shape and determine the structures of the global political economy.
• Haggart discusses how certain actors, like powerful states or corporations, can influence the rules and norms of the international system.
• Examples include the United States' influence over international financial institutions or large tech companies setting standards for the digital economy.

Visions or Regulatory Models for Governing the Digital Economy

• Visions or regulatory models refer to different approaches to governing the digital economy, reflecting varying values and priorities.
• Bradford discusses how different regions, like the EU and the US, have different visions for regulating digital platforms and data flows.
• Examples include the EU's emphasis on data privacy and consumer protection versus the US's more laissez-faire approach.

Multistakeholder Initiatives

• Multistakeholder initiatives are collaborative efforts involving representatives from various sectors, such as government, business, civil society, and academia.
• These initiatives aim to address complex global issues by fostering dialogue, building consensus, and developing shared solutions.
• Example: Initiatives to promote responsible supply chains, combat climate change, or govern internet standards.

Inequality of Wealth and Income (Including the Gini Coefficient)

• Inequality of wealth and income refers to the unequal distribution of economic resources among individuals or households in a society.
• The Gini coefficient is a statistical measure of income inequality, ranging from 0 (perfect equality) to 1 (complete inequality).
• High Gini coefficients are often associated with social unrest and economic instability.

Global Inequality

• Global inequality refers to the unequal distribution of income and wealth across the world's population.
• Milanovic discusses how global inequality has evolved over time, with some regions experiencing rapid growth while others lag behind.
• Factors contributing to global inequality include historical legacies, trade patterns, and technological disparities.

Global Value Chain

• A global value chain (GVC) refers to the full range of activities that firms and workers do to bring a product from its conception to its end use.
• Phillips and lecture materials discuss how GVCs involve the fragmentation of production processes across multiple countries.
• Example: The production of a smartphone, where different components are manufactured in various countries before being assembled in a final location.

Exploration of war capitalism's brutal origins, sovereignty in international relations, and the Great Divergence. War capitalism involves exploitation for profit via colonial practices. Sovereignty is supreme territorial authority. The Great Divergence explains Europe's economic ascent.