Globalisation, States and Markets Flashcards
define soverignty
principal that within its territorial boundaries the state= supreme political authority, + outside those boundaries the states recognises no higher political authority
how do governments wield sovereignty
- States recognized as sovereign in international law
* but governments speak on their behalf // governments wield sovereignty
to what extent are governments powerful
- Governments powerful only to extent that leading social groups are able to mobilize support for policies, whether through force, ideology, or economic concessions
- // state power always being reconstituted in relation to conflicts between social forces
what does opening up black box mean
- Not conceptualising state as autonomous actor that stand above and ‘does things’ to their society, = more as a set of agencies and capacities that have come about and continue to be reconfigured in response to conflicts between social groups in a country
- What is framed in national policy (what benefits who)
what two broad catagories of policy does government use to shape how markets form and function
- Macroeconomic policy (fiscal, taxing and public spending)
* Microeconomic policy (labor regulations, industrial policy)
what are the three period of differing instutional arrangements of the liberal economic order
- classical lib (1800s to early 1900s)
- embedded (45-70)
- neo (80- present)
explain classical liberalism
• Liberals advocated for equal rights, individualism, liberty, and minimal government interference in the economy
Context: decline of feudal system + push to hierarchy and opportunities focus on wealth rather than bloodline
- Urban poverty= necessary evil
what two key theories were implemented during embedded lib
protectionism : drove by great depression- government actions and policies that restrict or restrain international trade -employment a main focus
keynesianism: informing the Bretton Woods agreement
o States using fiscal
o Keynesianism: increased government expenditures to manage the business cycle
why term ‘embedded’
bc policies of open trade + finance embedded in system of global economic governance that allowed states some autonomy to safeguard domestic economic objectives, particularly unemployment
explain context of neoliberalism
Nixon shock = managing domestic policy - to target high rate of unemployment, oil crisis >
- Keynesianism was at odds with the stagflation of the 1970s recession (high unemployment and high inflation)
o as was designed to target one not both = lengthened response + depression
what did keynesianism shift to during neoliberal era
monetarism: (governments controlling the amount of money in circulation to manage the business cycle)
o through interest rate (price of borrowing money
what does neoliberalism usually refer to
typically refers to economic policies that limit state intervention e.g. private property rights, lower trade barriers,
what are the focus points of neoliberalism
o Idea= reduce efficiency by introducing competition
o Human well-being (+ individual freedom) best advanced through institutional framework characterised by strong private property rights, free markets and free trade
o Interests reflect private property owners, businesses, multinational coprportations and financial capital
o Forms of social solidarity dissolved in favor of individualism, private property
what determines how communities are effected by globalisation (why uneven)
o individuals and communities are affected differently depending on how they are enmeshed in, or marginalised from, the world economy, creating a distinct geography of inclusion and exclusion
what is neoliberalism often associated with
restoration of power of economic elimites
