Multilateralism and Globalization Flashcards
What is the goal of Multilateralism
increase the volume of trade between countries, thought to enriched all countries involved in the agreement
What is Multilateralism
any agreement by 3+ sovereign states that they are going to align their interests -> usually economic application
What is the problem with multilateralism
capitalist enterprise so benefits are unlikely to be shared equally
how does multilateralism fit into the 20th-century
global in application
Globalization
modern world usually applies to the economic condition of intercontinental integration - ultimate goal of multilateralism
When did Thomas Friedman argue that globalization become the dominant international system
after the end of the cold war (1990/91)
Roots of Globalization
(1) The ancient world: Macedonian, Roman Empire, Han Empire - big states
(2) age of exploration, Colombus + Maritime contact
when does globalization take off
big expansion during the Napoleonic wars to WWI (25x inc in 19th c)
What did the expansion of globalization owe to
advent of industrialization
dev of expanded transport and comms systems (railways and steamships)
advent of the gold standard
Thomas Friedman
NYT editorialist
Gold Standard
(stocks of gold to back their currencies -> meant that international exchange rates were set), came to an end during WW1
What halted the globalization boom
The great depression had to start all over again
Franklin Delano Roosevelt
New Dem admin in 1933, New Deal - launched new approach to international trade - previously favoured tariff barriers
Cordell Hull
Secretary of State in FDR admin - trade organization: start lowering tariff barriers hoping countries will do the same reciprocally (discussions to do so with CAD and BRIT)
Atlantic Charter 1941+ Lend-Lease agreements
stated Allied war aims for WWI: included a provision for lowering trade barriers
U.S State Department
FDR + Hull admin: pushing for the lowering of trade barriers, specifically countries that are in close economic contact with US
Bretton Woods Conference 1944 3 important innovations
allied countries wanted to chart out the post-war economic layout of the world
- Restore the gold standard for stable exchange rates -> now contingent on US dollar (spec in 60s) forged in Nixon
- Created big international banks
- Organization to govern world trade -> ITO
World Bank
Bretton Woods Conference by UN, funded by US capital
International Monetary Fund (IMF)
Bretton Woods Conference by the UN, funded by US capital - more important - presides over the running of stable exchange rates
- shifted to provide loans + econ assistance
International Trade Organization (ITO)
intended to govern world trade, never set up now org is the WTO in 1994 (44 yrs later)
- rules of international trade will be ironed out
- remove trade barriers
- countries had to stop providing subsidies because thought to give artificial advantage: main problem
US and ITO
interest groups wanted to carve out exceptions spec for themselves; farmers subsidies
New Deal + subsidies
FDR paid farmers not to produce so many goods -> subsidies promised in this so stunted ITO
John Maynard Keynes + Keynesianism
BRIT economist - Labour govt wanted full employment - brought into US ITO negotiations - wanted ability to opt out of ITO rules
USSR and ITO
capitalist enterprise -> pulled out so satellite states in EU pulled out too - then China no longer global participation in a global project
