PO 102 PDF: Global Economic Development Concepts

1. War Capitalism (Beckert) Definition: War capitalism refers to the early phase of global capitalism characterized by violent conquest, forced labor, slavery, and colonial expansion. It relied on military power and coercion rather than free markets to accumulate wealth.​ Context: Introduced by Sve...

1. War Capitalism (Beckert) Definition: War capitalism refers to the early phase of global capitalism characterized by violent conquest, forced labor, slavery, and colonial expansion. It relied on military power and coercion rather than free markets to accumulate wealth.​ Context: Introduced by Sven Beckert in Empire of Cotton, war capitalism explains how European nations used force to integrate non-European regions into the global economy.​ Example: The British Empire’s use of slavery in the Americas and military force in India to secure cotton supplies exemplifies war capitalism. 2. Sovereignty (FLS p. 8) Definition: Sovereignty is the principle that a state has supreme authority over its territory and domestic affairs, free from external interference.​ Context: Discussed in Frieden, Lake, and Schultz (FLS), Week 2, sovereignty is foundational to international relations and statehood.​ Example: The Treaty of Westphalia (1648) established modern sovereignty by recognizing the authority of states over their own territories. 3. The Great Divergence (Beckert p. xiv, Milanovic p. 80) Definition: The Great Divergence refers to the growing economic gap between Western Europe (and later North America) and the rest of the world after 1750, driven by industrialization and colonial exploitation.​ Context: Discussed by Beckert and Milanovic, it explains why some regions became wealthy while others remained underdeveloped.​ Example: Britain’s Industrial Revolution fueled its economic rise, while India and China, once economic powerhouses, lagged due to colonial policies. 4. Late Development (Lecture Week 2) Definition: Late development refers to the challenges faced by countries industrializing later than early industrial powers like Britain. These nations often rely on state intervention and protectionism.​ Context: Discussed in Week 2, it contrasts early industrialization with state-driven models (e.g., Japan and South Korea).​ Example: South Korea’s government-supported industrialization in the 20th century helped companies like Samsung compete globally. 5. Mercantilism (FLS p. 5) Definition: Mercantilism is an economic policy where states seek to maximize exports and accumulate wealth (gold/silver) while minimizing imports through protectionism.​ Context: Discussed in FLS, mercantilism dominated European economic policies from the 16th to 18th centuries.​ Example: Britain’s Navigation Acts restricted colonial trade to benefit the British economy. 6. Economic Openness (Lecture Week 3) Definition: Economic openness refers to policies that promote free trade, investment, and reduced barriers to economic exchange between nations.​ Context: Discussed in Week 3, economic openness contrasts with protectionism.​ Example: The post-World War II Bretton Woods system encouraged global economic openness through institutions like the IMF and GATT (now WTO). 7. Tariff (Lecture Week 3) Definition: A tariff is a tax imposed on imported goods to protect domestic industries or generate government revenue.​ Context: Discussed in Week 3, tariffs are a key tool in trade policy.​ Example: The U.S.-China trade war saw increased tariffs on Chinese goods to protect American industries. 8. Economic Globalization (Lecture Week 3) Definition: Economic globalization is the increasing integration of national economies through trade, investment, and financial markets.​ Context: Discussed in Week 3, globalization has been driven by technological advances and trade liberalization.​ Example: Companies like Apple rely on global supply chains, sourcing parts from multiple countries. 9. Structural Power (Haggart) Definition: Structural power refers to the ability of powerful actors (e.g., states, corporations) to shape the rules and institutions that govern the global economy.​ Context: Discussed in Haggart’s work on global economic governance.​ Example: The U.S. dollar’s dominance in global finance gives the U.S. significant structural power. 10. Visions or Regulatory Models for Governing the Digital Economy (Bradford pp. 6-7 & 11) Definition: Different regulatory models define how digital platforms and data should be governed globally, including U.S., EU, and Chinese approaches.​ Context: Discussed by Bradford, who identifies competing models of digital governance.​ Example: The EU’s General Data Protection Regulation (GDPR) prioritizes privacy, contrasting with the U.S.’s market-driven model. 11. Multistakeholder Initiatives (Lecture Week 4) Definition: Multistakeholder initiatives (MSIs) involve governments, businesses, and civil society working together to create global standards and policies.​ Context: Discussed in Week 4 as an alternative to state-led governance.​ Example: The Internet Governance Forum (IGF) brings together different actors to discuss internet regulation. 12. Inequality of Wealth and Income (Including the Gini Coefficient) (Lecture Week 5, Milanovic) Definition: Wealth and income inequality refer to disparities in financial resources among individuals or groups, often measured by the Gini coefficient (0 = perfect equality, 1 = maximum inequality).​ Context: Discussed in Milanovic’s work on economic inequality in Week 5.​ Example: The U.S. has a Gini coefficient of around 0.41, indicating significant income inequality. 13. Global Inequality (Milanovic p. 79) Definition: Global inequality refers to economic disparities between countries and regions, often driven by historical and structural factors.​ Context: Discussed by Milanovic in relation to global economic development.​ Example: The income gap between developed nations (e.g., U.S.) and developing countries (e.g., Nigeria) remains large. 14. Global Value Chain (Phillips p. 430 and Lecture Week 5) Definition: A global value chain (GVC) refers to the international production process where different stages of production occur in different countries.​ Context: Discussed in Week 5 and Phillips’ work on global trade.​ Example: A Nike shoe is designed in the U.S., manufactured in Vietnam, and sold worldwide, illustrating a GVC. what are the constituent crises of the polycrisis of economic globalization describes by Hellenes? Global inequality, development, GVCs What kinds of power do companies have in politics beyond borders? Where did modern capitalism come from Key themes from tutorial reading 1. Constituent Crises of the Polycrisis of Economic Globalization (Helleiner) Eric Helleiner describes the polycrisis of economic globalization as the convergence of multiple, interconnected crises that challenge the global economic order. The main constituent crises include: ​ Financial instability: Repeated financial crises, such as the 2008 global financial crisis, expose weaknesses in deregulated global finance. ​ Trade tensions and protectionism: Rising nationalism and trade wars (e.g., U.S.-China tensions) disrupt global trade networks. ​ Inequality and social backlash: Economic globalization has contributed to rising income inequality, fueling political discontent and populism. ​ Environmental crisis: Climate change and unsustainable production challenge the long-term viability of the global economy. ​ Geopolitical shifts: The decline of U.S. dominance and the rise of China create uncertainty in global governance. These crises reinforce each other, leading to instability in the world economy. 2. Global Inequality, Development, and Global Value Chains (GVCs)  ​ Global Inequality: Refers to the economic disparities between countries and within societies. It has been driven by colonial history, technological gaps, and global trade structures. Scholars like Branko Milanovic distinguish between "within-country inequality" and "between-country inequality." ​ Development: The process by which economies grow, industrialize, and improve living standards. Development theories range from modernization theory (economic progress through industrialization) to dependency theory (developing nations remain exploited by the global system). ​ Global Value Chains (GVCs): The system where different stages of production take place across multiple countries. Developed economies often control high-value segments (e.g., design, branding), while lower-income countries engage in labor-intensive production, reinforcing global economic hierarchies. For example, in the apparel industry, Western brands design and market products, while countries like Bangladesh handle labor-intensive manufacturing at low wages. 3. Corporate Power in Politics Beyond Borders Corporations exert influence in global politics through: ​ Structural Power: The ability to shape global markets, investment flows, and economic rules (e.g., Big Tech platforms shaping digital policies). ​ Regulatory Influence: Lobbying international organizations (WTO, IMF) to create favorable trade and financial regulations. ​ Soft Power: Branding, public relations, and partnerships with global institutions to shape norms and policies. ​ Legal Power: Using investor-state dispute settlement (ISDS) mechanisms to challenge national regulations. ​ Supply Chain Control: Companies set labor and environmental standards by controlling production networks in developing countries. For example, Apple’s influence on supply chain regulations in China and Foxconn demonstrates corporate power in shaping labor policies. 4. Origins of Modern Capitalism Modern capitalism emerged from: ​ Mercantilism (16th-18th centuries): Early European states pursued wealth accumulation through colonialism, trade monopolies, and protectionism.  ​ War Capitalism (Beckert): Colonial conquest, slavery, and forced labor helped European powers control global production and trade. ​ Industrial Revolution (18th-19th centuries): Mechanization and factory production led to mass production, urbanization, and wage labor. ​ Financial and Corporate Capitalism (19th-20th centuries): The rise of stock markets, banking systems, and multinational corporations expanded capitalism globally. ​ Neoliberalism (late 20th century): Deregulation, free trade, and privatization further globalized capitalism. Capitalism evolved from violent origins into a system driven by technological innovation, financial expansion, and global trade.