FINANZA E PETROLIO Flashcards
On a ideologic point of view, during 70s, US capitalism system was considereted successful?
Yes.
It seemed that US liberal system was the right choise to organize international economy:
- it gave the market more freedom to determinated international economy
- it provided deregolation of capital flow.
During the 70 US capitalism win the battle as best economic system. But the new monetary order seemed to give advantage to one particular nation over the others. Which one? How?
It was US, because it coul operated on international economy without any giuridic restriction.
In addiction, it was the coutry that hold the global corrency: the dollar.
The International Monetary Found: when was it created and what it replaced?
The IMF was created in 1978.
It replaced BW system, giving life to a new international economic order.
Why US choose to break the convertibility of the dollar with gold? (it created a crisi also for US)
The dollar credibility, among the US foreign policy, was debilitated by some events:
- US military force, that represented a great threat to any countries, was put in degerous by the oil crisis.
- The Vietnam War represented the greatest American defeat, and together with the crisis in Angola, led embarassment to US administration.
- Thanks to the detente period, Eu allies did’t fear the nuclear war and were able to criticise US political and economic choises.
Describe the petrodollars-recycling fenomena.
- Countries needed dollars to buy oil.
This helped to strenghten Us corrency, giving US stability. - Exporting countries deposited their financial surplus in US bank.
So US gained great advantages:
- it enjoied great funding to its belance of payment.
- It could recycling the dollar to other countries, expecially to the developing coutries.
The succed of US capitalism has been attributed to the market “invisible hand”: why it is not a reasonable cause?
There are some reasons that show the fallacy of this thesis:
- Exporting countries chossed to deposit their susrplus in US banks: that is opposite to the no-recognition of the dollar after the broke covertibility with gold.
- private bank star to offer loans to developing coutries that didn’t have a stable economy.
US Treasury Department operated the petrodollars-recycling. How did it work?
Us Tresury Departement
- was the terminal of petrodollars international fluss, expecially by exporting conutries.
- it became the lender that permit the circulation of this dollars as credit for buy US technological innovations, bilateral accords and general aid.
The countries had similiar and different reaction to the oil crisis: what were the general reaction and the more specific ones?
The general reaction were:
- limitis to energy consumption and open debate on renewable energy
- buildig of energy independence projects
- rise of trade deficit and inflaction, gross domestic production degrowth
The specific ones:
- US gained a position of great advantages: with the decline of BW and the emerging dollar standard US could fix its belance of payments without efferts.
three-quartes of the oil transection were put in place with dollars, US could easily fill the gap with money printing policy.
-forthemore US coul count on Venezuela and Canada for the oil.
What was the series of accords that OAPEC and developing countries took after the Declaration of the New International Economic Order in May 1974?
Opec and the development countries built a series of projects for the ex colonies economic growth.
OPEC created a Development Found that became Arab banck for Africa development. They wanted to use the oil crisis to persue justice as part of the international economic and financial system.
During the oil crisis, there where tensions between the allies: talk about that.
- Washisghton saw a threat in the commercial unification of the european countries and, particolary, the continent unifications idea that could put in dengerous the american military bases within european territories.
- Kissinger, with the Europe Year, suggested to confirm againd the Atlantic Pact with Eu allies make it clear that it would be expressed with the costant precence of American military forces in Eu and with the acceptance by Eu countries of the new monetary reality. It provoque a higher grade of hostility towards US.
- USSR did’t skere anymore and european civil movements were against American hegemony.
What was the easier solution to the oil crisis on the Eu and Japan opinion?
Was to find a solution to the arab-isdraelo crisis. During the Yam Kippur war the keep the neutrality, sometimes even showed sypathy with the arab issues.
France take Egypzian and Sirian side.
Bonn tried to supported arab cause and protested against America military intervention.
This crisis was the first occasion in which Eu countries operetated as one Nation. The CEE took palestinian side and approved the 242 UNO Resolution. The OPEC countries stopped the embargo toward CEE.
February 1974: Woshighton Conference. How’d it go?
Kissinger proposed a finantial security network to its allias, where it would be share OPEC bouch of cash.
CEE, Japan and Canada come to discuss. At the end was taken a mild accord on a safety net that was not accepted by France.
Similiarities and differences between the ‘29 crisis and the oil one.
Fear of
- the possible inability to absorbe the enormus monetary amount of OPEC Countries.
- risk of autarchy and nazionalism in the management of the flaw.
Differencies:
- national government controlled national economy.
- international institutions supportted the worl supply of oil with the oil facility 1975.
24 October 1974: Frech proposal on a collaboaration and dialogue between cunstumer and oil producers. What was the differences with the US proposal? What wanted GB for the pound? What heppend in this period beteen CEE and DC?
French proposal was oriented to comprimise and dialogue, instead of prove of force.
GB was tring to to find international space for the petropound, that in this periond was one-fifth of oil international trasiction.
In this period Cee took commercials accords with the development countries. The Lomé Convention (1975) -
provided the extention of the Common Agricultural Policy and
- a balance exchanges system
- a development found.
This period is characterised by the rediscovery of the Meditterranean space as dialogue among people.
CEE became an OPEC primary partner: how did US react?
Us was fourious. They moved for bilateral accords with Iran and Saudith Arabia.
- IRAN
US agreed to pay a higher oil price in order to convince the Scià to take a central rule in the region protection.
That means let Iran obtained vantagius tarriffs fro US wepons.
Us made this choise also for break the OPEC coalition. - SAUDI ARABIA
on July 1974 Simon met with SAMA managers to reach an agreement that implied the investiment of Arabia oil surplus in US.
in December 1974 Bennett agreed with SAMA the reservetion of privat securitie auctions for Arabia and absolute secretery in the investiments manege.
In the same month SAMA annunced that it woul accepted only dollars and not pound for the oil.
December 1974 saw petrodollars rule.
