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Understanding Globalisation ECON 255
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LECTURE 1Globalization
–MNCs (capitalism- private individuals own the factor of production private holders on
capital are able to earn rent from capital and private property holders being able to engage
in markets, private holders of capital are the key actors in capitalism)
-Trade
-Migration- people – diaspora communities (people living outside of their or their parent’s
country of birth) intersect with trade, globalization, and capital flows, good and services
flows, and people flows
-Cultural exchange and political exchange (UN, World Bank, Second World War)
-Defining development
Within a country- within high income countries/ low-income countries – affected by
globalization
Credit globalization with largest reductions in poverty
Amartya Sen- Development
As expanding human freedoms (in context of migration, income inequality, measure of
welfare etc.)
LECTURE 2
Brad DeLong: The Long 20th Century
1870-2016
Principal axis of history was economic
Before 1870, economic change was very slow
Material well-being of the people
End of the long 20th century: Donald Trump, 8th November, 2016 (end of American
hegemonic era in the world)
Harari: global governance;
End of civil war in the US, real focus on tech improvements, increases in global wealth,
material well-being etc.
Technological improvements numerically; so much of tech didn’t exist before (complexity)
(so it is like dividing by a 0)
Beginning of the agrarian era: global knowledge value 1 in year 8000 BCE.
Change in world population over time. Malthusian ideal -human population is kept low
because of the limit on the physical resources.
,Spills over to a lot of modern models now too like how Land is a fixed resource and how to
deal with finite resources. Ecological (animals- capped resources depending on where they
are located in the world)
Increase in population over different time periods – 1750-1850 doubling world population
The beginning of the IR , we jump out of a world where the population is heavily restricted
but the period in which actual material well-being is improved isn’t until recently
Life in the pre-1870 Agrarian Age
2.05 children per mother
Worse diet
Stunted growth and height
Half of the children die (high infant mortality)
Malthus: human fecundity outruns human discovery
Income per person over all of human history up to the UK IR in the 1700s, until the Great
Divergence where the income per person grows dramatically
Material obscurity for a very long time then it changed – during the IR or later period
What changed?
Tech innovation – industrial research labs
Globalizations in goods transport
Globalization in communication -expanding to trade via the access of talking to buyers and
sellers, link global supply chains together, has implication son total global output
The openness of the world – migration – globalization in labor (in people)
1914- lots of borders closed, beginning of the world wars, closing off of nationalist interests
Post 2016 ear – similar kind of closing off of globalization and trade and communication
John Stuart Mill
First part of the IR
Classical liberalism – free markets, liberties, utilitarianism (mathematical structure to moral
imperative to maximize happiness to individuals and get well-being, welfare measures from
it, hedonism), scientific method – data collection etc.
The world today: We have specialized into other fields
“escalator to modernity”
Why aren’t we happy?
Why hasn’t this increase in material well-being been associated with the end of human
problems?
1. A. Map shows
2. 2 and 3. Income categories
3. Food – 90%, water – 90%, electricity - 80%
, Income divergence between the 1800 and 1975
Then income convergence between the 1975 and 2015
Moving out of poverty now
Improvements in maternal mortality rates (it has gone down)
Harari: Nationalism v/s Globalism
Climate change is a global issue which cannot be solved by nation states
Two solutions:
deglobalize the economy (closely related to backlash populist movements – they don’t have
a utopian vision of the future – going back to some prior period
or
globalize the political system – going forward
LECTURE 3
Introduction recap:
1870-2016- transformed entire societies
Vast majority-improvement in material well-being
Tech innovation and ability to share the tech
Nation state paradigm – impossible to address global problems with national governance
Global catastrophe is going to be necessary
Inequity we observe global
Access to vaccines replicating the other distribution, of GDP, wages, other services etc.
One thing that is globalized is information- widely available
Total number of doses administered – Nigeria relatively few v/s countries that are vaccine
averse
Geographic space – some places have higher access
The map of global GDP will end up looking pretty similar
COVAX is the global entity for covid
Another way to look at it: per total doses administered – are people that are rich in
vaccines are using that to spread vaccine access to the world, argue that nation state first
policy for most countries
The Nation and the World Economy
Measuring Globalization
Common measure:
- Imports and exports – total trade as a share of GDP
Smaller countries have higher rates of trade v/s larger countries
Clear upward trend in amount of trade worldwide (except 1914-1945), with sharp
acceleration from 1990s onwards
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