Global Political Economy Flashcards
What is global politicak economy?
Globe-spanning system of institutions and interactions that make up and govern the global economy
Strong link and influence btwn politics and economy, not possible to consider one without the other
States, multinational cooperation, networks, organisations…
Discipline since 70’
Capitalism def and history
Eco sys characterized by:
-private ownership of means of production
- monetary profit as main objective
- wage labour/ commodification of labour
History:
-14th to 17th in Europe then spread
-16th to 17th: merchant capitalism ( with expeditions to America and Asia, new market so nl more local trade sys but global seaward trade)
-industrial capitalism: 18th to 19th: industrial revolution so modern industy emmerge
-since 1970’: finance capitalism (libéral financial control)
Steps of industrialisation of the world economy
- Breton Woods era from 50’ to 70’: about goods flew, not financial flew. created the IMF, World Bank, GATT ( général agreement on trafic and trade)
- Neoliberal era/ age of finance capitalism 70’ to now:
- “Washington concensus”: agreement that there is only one way to manage economy=
fiscal discipline
Trade liberalization
Privatization
Deregulation so drop in gov. intervention in eco, free market…
Decrease of public spending so drop in gov expenditure
-GATT became WTO in 95
-BUT INT policies though: conditionality of IMF and World Bank Ioans that are economic reforms that States have to implement for recieving financial assistance
Neoliberalism
Political theory of free market extended as far as possible with non gov intervention, deregulation, law taxation and export-orientation
Assumptions abt human being: they are rational, individualistic, compétitive actors
Def economics
The study on the production and distribution of goods and wealth
4 types of poverty
- int poverty line: by World Bank, less than 2.15 USD a day so 712M people
-Ethnical Poverty Line, P. Edward: less than 5.80 USD a day so 1/2 of the pop
-multidimentional Poverty index: OPHI and UNDP, health, éducation, standard of living so 1.2 Bilion people
-Global Hunger Index: Cw and WHH, undernourishment, child mortality so 735 M people
Biggest critique of capitalism
Marx: exploitative sys where eco power is unevenly distributed perpetrating class hierarchy
In broad way, 5 historical moments of alleviation of poverty
- CW and the “ white men’s burden” to fight communism
-1960’ and the Rostow’s modèle of dvlpmnt stages of economic growth
-70-80’ and the structural adjustments prog by IMF and World Bank
-modernisation and microfinance in south asia
-90’ to now UN sustainable dvlpmnt goals
Who did the Modèle of dvlmpnt stages of economic growth
Rostow in 1960’
What did Rostow plus explanation
The modèle of devlopment stages of economic growth: eco growth dvlpmt is linear, less developped countires need to “catch up”
Steps
A. Trade society ( Farmers…)
B. Pre condition for take off
C. Take off ( intensive growth, industrialisation)
D. Drive to maturité
E. High mass consumption
Critics of the modèle of development stages of economic growth from Rostow
Not every states has the same opportunity as the developed ones ( they had colonisation…) + different scheme
Structural Adjustment Programmes
By IMF and World Bank ( same time as Neoliberalism so same ideas)
To solve poverty and debt of countries
. Fiscal discipline: strict control of gov spending to reduce budget deficit
. Thitening of monetary policy: in ordre to prévent inflation, restriction of money supply and raise of intrest rates
. Trade liberalism ++
. Privatisation: selling states companies…
Critics of Structural Adjustment programs
. Reduce public spending on health, social services…
. Unemployment bcs of privatisation
. Economic dependecy ( loose in eco sov) on foreign aid and int financial institutions
. Eco instability bcs of the deregulation and rapid liberalization of the market
. Environmental dégradation bcs of the focus on export-led growth so natural ressource exploitation…
Modernization and microfinance
. Modernization : eco growth is based on industrialisation, techno advancements, urbanizaion
SO if fostering innovation and access to global markets to integrate the poor into global cpitalism
. Microfinance: providing loans to low-income indiv, so they can start small businesses so entrepreneurship and self-sufficency : invest and then incoms generating
UN sustainable development goals
Goals to achieve by 2030 abt living conditions such as poverty ( 1st) but lack of will of the wealthy countries
Critics of Modernization and microfinance
. Modernization :
A. benefits urban centers and elites ( promoting industrial growth =/ trditional livelihoods)
B. Take example on Western models but not same opportunities, cultural and local context
.microfinance:
a. can lead to debt traps for poor borrowers who struggle to repay high-interests loans
B. Don’t address structural pb such as unemployement, infastructure deficits… so limited impact
Which country had a success story
What did they didn’t do?
SK, Singapor, Taïwan, japan thanks to export-oriented indu, protection of infant industries such as Toyta for Japan,
BUT NOT WESTERN WAY: no deregulation, yes to state intervention, no liberalization of capital flows
“Thanks” to who is global poverty an international issue
Harry Truman, the Point Four Programm
Call for coopérative int effort Led by UN
To ensure peace and freedom worldwide
According to the World Bank, extrême poverty has derease of
42% in 1981
11% in 2015
Who wrote How is the world organised economically?
V. Spider Peterson
What did V. Spike Peterson wrote?
Howbis the world organised economically?
Most familiar approaches to explaining global ecknomy according to V. Spider Peterson + critics
A. Neoliberal/ liberal approach
Critics: overlooking at th real ‘costs of neoliberalism’: raise in informal ( irregular activity where laws are difficult to enforce ex drug dealing so =/ formal: legal, contractual)
This generate:
. Unpaid labour
. Social inequalities ( women, migrants, poor are disadvantaged)
B. Marxist approach: Peterson values this approach for its focus on power and class dynamics BUT shows how Marx neglect
.informal économies,
.gender and sex who are the axes of inequality
.social reproduction: process through which societies reproduction their cultural, social and economic structures across generations
Who wrote How can we end poverty
Pasha
What did Pasha wrote
How can we end poverty
What are the ‘poor’ according to Pasha
A. The label the poor is a social construct who comes from classification processes and not qualité of indiv
B. Poverty is defined and perpétuated 8by sociétaire perceptions, policies and economic sys who classifiy people according to their ressources
C. Critics of neoliberalism prioritizing market-driven solutions and individual respo over systemic change
D. His proposes public investment in éducation, healthcare…+ engaging with communities in décision making process to be sure that it is effective + focus on env sustainable ecologic practices+ wealth redistribution
E. Attempts to alleviate poverty in the world have mixer succeeded: improvements sp in south est asia but others…
