Summary
Summary International Administration - lecture 3
- Course
- Institution
summary of the lecture, readings, and knowledge clips
[Show more]
Seller
Follow
amberdebart
Reviews received
Content preview
Lecture 3Economic globalization - Interdependence (KC1)
We went from largely national economies after WW2…
● Significant state ownership and production
● Government directed investments and use of resources
● High barriers to trade
● Restricted movement of capital
● Every country had its own currency
→ Economic policies based on Keynesian ideas of how to organize the economy
To highly independent economies today
● More private ownership and production
● Resources allocated through the market
● Extensive international trade
● Global production chains
● Free movement of capital and global financial markets
● Common currencies and currency convertibility
→ Economic policies based on (neo)liberal ideas about how to organize the economy
Challenges of international economic governance
1. Generate economic growth and development
- Raise living standards and reduce poverty
2. Ensure a stable world economy
- Prevent economic crises and shocks
3. Facilitate cross-border trade and economic activity
- Stimulate economic exchange with mutual benefits
4. Loss of state sovereignty and democratic control
- Rise of illiberal movements and autocratic regimes
Economic promises of globalization
● Division of labour maximizes productivity
● Specialization maximizes gains from trade
● Global competition lowers prices and/or increases quality, and increase variety
● Goods, services, capital, and people can move more freely across borders
Political promises of globalization
● Nation-states that trade with each other are less likely to go to war?
- Interdependence rather than self-sufficiency
, Economic challenges of globalization
● Increased economic interdependence can also lead to increased economic fragility
● Greater likelihood of international crisis
- Spill-over effects and financial instability
● Race to the bottom in terms of prices and quality
- Companies exploiting people or prices
Political challenges of globalization
● Exploitation and human rights abuses along supply chains
● Global markets require global rules
- Difficult to achieve and sustain
● Increased openness may lead to an increased backlash
International actors in economic governance (KC2)
● World bank → Economic assistance & development
● International Monetary Fund → Financial assistance & market stability
- Last resort, you do not loan from them unless there is no other way.
● World Trade Organization → Trade
● Organization for Economic Co-operation and Development → Economic policy
● G7/G20 → Pressing and novel economic issues
● Global expert professions → Networks and norms
- Becoming more important, helps organizations work together through their network
IMF and World Bank: Ideas and policies
● From Keynesian ideas to the Washington Consensus
● Seen as key actors in spreading neoliberal economic policies since the 1980s
- Deregulation, privatization, and liberalization
● Conditionality: I’ll give you a loan, but …
- Loans given to states in exchange for specific economic reforms
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller amberdebart. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $3.74. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
53068 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now