TCW Topic 2 Week 2.1: The Global Economy PDF

TCW Topic 2 Week 2.1 Topic: The Global Economy Slides Objectives 1. defined economic globalization; 2. identified the actors that facilitate economic globalization; 3. defined the modern world system; 4. articulated a stance on global economic...

TCW Topic 2 Week 2.1 Topic: The Global Economy Slides Objectives 1. defined economic globalization; 2. identified the actors that facilitate economic globalization; 3. defined the modern world system; 4. articulated a stance on global economic integration; and 1 Hi! In the previous session we have discussed the definition of globalization, its dimensions and arguments. Since you have been given the idea that globalization has its dimensions namely, economic, political and cultural. For this topic we will expound the idea of globalization as an economic process. With this said, we can now infer that we will also be expounding the discussion of globalization with the remaining two dimensions which are the political and cultural process. These discussions will be supported by different concepts, theories, theorists and application to the different contexts of the contemporary world. 2 Now, here is the topic outline:  Definition of Economic Globalization  Indicators and manifestations of Economic globalization  Actors that facilitate economic globalization  Theories of Economic Globalization  Crises of Global capitalism The discussion for this topic is divided into two video lectures. The first three topics will be discussed in this session and the remaining will be discussed in the succeeding video. 3 Definition of the Economic Globalization In our previous discussion, we have defined economic globalization as a dimension that derives partly from its historical development. Evolution of international markets and corporations led to an intensified form of global interdependence. To further elaborate this definition we will determine and define each of its indicators and manifestation The indicators and manifestations of Economic globalization General analysis on globalization of the economy International Trade and Development Multilateral agreement on investment and related initiatives Transnational Corporations The indicators and manifestations of Economic globalization Foreign Direct Investment World Trade Organization World Bank International Monetary Fund Global Taxes The indicators and manifestations of Economic globalization General analysis on globalization of the economy Represents the manifestation of international trade, financial transfers, and foreign direct investment, the increasing internationally interconnected economy. International Trade and Development Trade agreements like FTAA, NAFTA, CAFTA facilitate international trade, thereby strongly impacting people at all levels of the economy. They make trade free for Northern exports without prohibiting the rich countries protectionist measure that harm southern competitors. Such agreements tend to slow development in poor countries and pull them deeper into poverty. Multilateral agreement on investment and related initiatives MAI is an agreement or treaty given with the terms and conditions discussed and undertaken by three or more sovereign parties namely the participating nations or private entities Transnational Corporations Transnational corporations have become some of the largest economic entities in the world, surpassing many states. Their continuous push for liberalization has driven globalization while challenging environmental, health, and labor standards in many countries. Foreign Direct Investment An investment to a business in a given nation state in the form of controlling its ownership. Foreign direct investment has increased tenfold over the last decades. While many poor countries see foreign capital as a tool for growth, it has often increased instability and inequality as well. World Trade Organization The intergovernmental organization sets and enforces the rules of international trade between the nations and states. This intergovernmental organization has become a target of civil society’s criticism over its solid, undemocratic operating procedures and neo-liberal ideology. World Bank Its function is to eradicate poverty by loaning poor countries money for economic development, but these loans often come with demands of economic liberalization. International Monetary Fund IMF is also an intergovernmental organization that envisions as a lender of last resort for countries experiencing economic crises. Aims to facilitate international trades, assist global monetary cooperation and reduce the poverty to the borrowing nation. Global Taxes To implement global taxes the need for democratic oversight and control, the policy shaping effects, distributive effects, and the possible use of such taxes to fund the UN, its agencies and other programs for worldwide human security and development. Those are the manifestations and indicators of economic globalization. Now, we will discuss the its actors that influences the world economy How do we define actors of economic globalization? In simpler thought, these are the entities that influences the global economic process. In general context, they can be classified as Public or private organization, Economic forums and regulatory system either established by governmental or business entities. Most of these entities are represented by different corporations and nation leaders. Common to these groups are the development of efficient market transactions that contributes to international economic growth. The groups and forums are  International Chamber of Commerce  Bilderberg Group  Trilateral Commissions  World economic Forum  World Business Council for Sustainable Development International Chamber of Commerce  historically functioned as the most comprehensive business forum committed to liberalization  refers to itself as the World business association  ICC institutionalize an international business perspective by providing a forum where capitalist a deregulated professionals can assemble and forge a common international policy framework in arenas ranging from investment to specific technical and sectoral subjects. Some of the related IOs are WTO, G20 summit and OECD - Organization for economic Cooperation and Development Bilderberg Group  The group provided a context for more comprehensive international capitalist coordination and Planning.  Assembled in the spirit of corporate liberalism, representatives of Right and Left, capital and organized labor.  Conferences furnished a confidential platform for corporate, political, intellectual, military and even trade-union elites from the North-Atlantic heartland for mutual understanding. Some of the related IOs are CFR (council on foreign relations), IMF, World Bank, Trilateral Commission, EU and NAFTA (North American Free Trade Agreement). Trilateral Commission  Its goal is to foster effective collaborative leadership in the international system and closer cooperation among the core capitalist regions of Northern Europe, North America and Japan – the triad.  Institutionalize elite economic, political and intellectual/cultural bonds between the North-Atlantic heartland and the Asia-Pacific and to expand the regulatory sphere of capitalist discipline to incorporate metropolitan labor and peripheral states. Some of the related IOs are CFR (council on Foreign Relations), Bilderberg Group, G7 summit and G8 summit. World Economic Forum  Meetings were intended to secure the patronage of the Commission of the European Communities, as well as the encouragement of Europe’s Industry associations.  Moves to establish global initiatives that distinguish it as the most paradigmatic example of neo-liberal structionalism  Described as the most comprehensive transnational planning body and a quintessential example of a truly global network binding together the Transnational Capitalist class (TCC) in a transnational Civil Society. Its related IOs are World Bank, IMF and GATT World Business Council for Sustainable Development (1995)  Characterized in neo-liberal regulationist typology.  Formed in a merger of the Geneva-based Business Council for Sustainable Development and the Paris-based World Industry Council for the Environment (ICC branch).  A child of UN’s Conference on Environment and Development (UNCED) 1992 Rio Earth Summit  Global policy is anchored on its efforts to surpass the prevailing dualism of business versus the environment by forwarding a more  comprehensive vision of capitalist social and moral progress, anchored by its central axiom of eco-efficiency. Related IOs are UNEP(UN Environmental Program), UNCTAD (UN conference on Trade and Development), UNCED and (UN conference on Environment and development) Now we have covered the discussion of globalization as an economic process through its definition, indicators and manifestations and its actors. Through the presented topics we were able to define the economic process and recognize its applications through the existent of its indicators. With the actors that facilitates the economic globalization, we were able to determine the existing international organization participated by public and private entities and identified their functions, related international organizations and their influences to the global economic process that connects the international market transactions. For the next session, we will be discussing the continuation of this topics which includes theories and crises of economic globalization. Thank you and see you next session