Economic v Political Globalisation Flashcards
define economic globalisation
economic globalisation is the increasing integration of national economies to create a single global economy of cross-border movement and trade in goods and services
define political globalisation
political globalisation refers to the growing importance of international organisations through which states are making more and more decisions together rather than as independent units
differences between economic and political globalisation
the driving forces behind each type
the impacts of each type
the backlash and protests against each type
the driving forces behind each type: what is the difference?
one of the main differences between economic and political globalisation is the different driving forces behind each type of globalisation
the driving forces behind each type: economic globalisation
on one hand, economic globalisation has been driven by the establishment of the Bretton Woods system just after WW2, which was a system of fixed exchange rates and regulations that aimed to promote trade and stability in the international system
it was an attempt to prevent the conditions that led to the pre-war economic catastrophe as well as the war itself by fostering deeper economic integration
through the Bretton Woods system, a greater global commitment to free markets and free trade developed, which linked more and more economies together and encouraged greater connectivity, thus advancing economic globalisation
the driving forces behind each type: political globalisation
however, the biggest driving force behind political globalisation has been the emergence of transnational political problems like terrorism, ecological destruction and migration that require a cooperative, collective approach to solve them
states must cooperate and cannot work alone to fix these problems, so these challenges have caused states to turn to international organisations like the UN and NATO to address the common challenges and dilemmas they face together
for example, there are numerous climate change agreements to tackle the issue of global warming, including the Paris (UN Climate Change Conference) Agreement in which 174 countries agreed on a long-term goal of keeping the increase in global average temperature to well below 2°C above pre-industrial levels
the impacts of each type: what is the difference?
another difference between economic and political globalisation is the differing impacts of each type of globalisation
the impacts of each type: economic globalisation
economic globalisation has led to the establishment of numerous intergovernmental organisations, including the IMF, World Bank and World Trade Organisation, collectively known as the Bretton Woods institutions
the IMF is an IGO that aims to secure economic stability in the international system by publishing regular reports on the economic policies of national governments and warning them against any policy decisions that may threaten their economic growth
economic globalisation has also led to the rise in transnational corporations (TNCs) that design, manufacture, produce and sell products across borders
for example, Apple is a TNC that designs its products in the USA, sources the components for its products from Eastern Asia, manufactures its products in China and sells across the globe, it now has over 1.3 billion products being actively used worldwide
the impacts of each type: political globalisation
contrastingly, while political globalisation has had a similar impact in terms of leading to the establishment of organisations to deal with global issues, it is not as advanced as or had as much of an impact as economic globalisation
many political commentators have argued that political globalisation has not penetrated as deeply as economic globalisation because states still value domestic political hegemony and most international institutions are based on intergovernmentalism
while there might be emerging levels of political global governance, there is little progress towards or desire for world government due to the importance of state sovereignty — this was a reason behind the Brexit referendum result
the backlashes and protests against each type: what is the difference?
finally, one further difference is the different backlashes and protests against each type of globalisation
the backlashes and protests against each type: economic globalisation
on one hand, the backlash against economic globalisation has primarily come from anti-globalisation and anti-capitalist movements who argue that economic globalisation encourages poverty and inequality rather than resolving it
for example, the 1988 annual meetings of the IMF and World Bank were met with huge protests in West Berlin that attracted international support
these movements point to the Structural Adjustment Programmes (SAPs) given out by the IMF and the World Bank, which are loans with conditions attached
such loans require developing countries to undertake policy objectives such as privatisation, deregulation and opening up their markets to the world
however, rather than encouraging economic growth, anti-globalisation movements argue that these loans create a poverty cycle by encouraging developing economies to open up their markets to exploitation by much larger economies and TNCs, leading local businesses and infant industries to be at best side-lined and at worst completely destroyed
they also encourage developing countries to produce cash-crops such as coffee and cocoa, which leaves them vulnerable to exploitation by TNCs who control the production, manufacturing and distribution of such products
the backlashes and protests against each type: political globalisation
on the other hand, political globalisation has not faced as much backlash and criticism, but it has attracted some criticism due to the political organisations associated with it
for instance, the UN General Assembly is often criticised for being obsolete and ineffective, with many labelling it as a mere ‘talking shop’ that fails to take assertive action and achieve anything significant
Michael W Doyle, an international affairs expert at Colombia University, reinforces this viewpoint and says that the UNGA is “an important institution that has never quite sorted out its role” in terms of being a truly functional body and has “insufficient deliberation and not enough genuine discussion”
this links to a more general criticism of political globalisation, that it is rather ineffective and does not go far enough to tackle the issue in today’s world
