PPT ni Maam - The Structures of Globalization Flashcards
In July 1944, 44 countries assembled the _______, and countersigned a framework for the international economic cooperation after WW II.
Bretton Woods Conference
Two international economic organizations resulted from the Bretton Woods Conference—
the International Monetary Fund (IMF) and International Bank for Reconstruction and Development (IBRD) or what is known today as the World Bank
In 1947 the __________, became the primary global trade organization. The mentioned organizations became a part of a complex institutional structure to help manage the post war global economy
General Agreement on Tariffs and Trade (GATT),
The Bretton Woods institutions were known as _______________ due to their central role in trade, development and monetary relations (Cohn, 2011
keystone international economic organizations (KIEOs)
Formerly known as International Bank for Reconstruction and Development (IBRD), Its initial goal was to help rebuild countries in Europe devastated by the WW II.
World Bank
World Bank first loan was to _______ for post-war reconstruction ($250 million). Then, later shifted its support and attention to other member countries in Asia, Africa, and Latin America
France in 1947
In the __________, the funding of large infrastructure projects, such as roads, dams, irrigation systems, and electrical grids was World Bank’s primary focus
1950s and 1960s
In ____, the agriculture sector became the bank’s major focus. In the same period, World Bank shifted its attention to poverty eradication. Projects related to health and nutrition, food production, population, and rural and urban development were intended to reach the poor directly.
1970s
What are the missions of the world bank?
- To end extreme poverty. Considering the more than 1 billion people that still living today in deep poverty, the Bank’s first goal is to end extreme poverty by decreasing the percentage of people living with less than $1.90 a day to no more than 3 percent by 2030
- Promote shared prosperity. World Bank see that rising equality and social inclusion seems to accompany rising prosperity in many countries. Thus, the Bank’s second goal is to promote shared prosperity by improving the income of the bottom 40 percent of the population in each country (World Bank, 2013).
What are the organizations of the world bank
- International Bank for Reconstruction and Development (IBRD)
- International Development Association (IDA)
- International Finance Corporation (IFC)
- Multilateral Investment Guarantee (MIGA)
- International Centre for Settlement of Investment Disputes (ICSID)
it lends to governments of middle-income and creditworthy low-income countries. It is the world’s largest development bank. It provides financial products and policy advice to help countries reduce poverty and extend the benefits of sustainable growth to all of their people.
International Bank for Reconstruction and Development (IBRD)
it provides interest-free loans — called credits — and grants to governments of the poorest countries. It is one of the largest sources of assistance for the world’s 74 poorest countries and is the single largest source of donor funds for basic social services in these countries.
International Development Association (IDA)
Eligibility for IDA support depends primarily on a country’ s relative poverty, defined as
Gross National Income or GNI per capita below, an established threshold and updated annually ($1,185 in fiscal year 2021). The IDA’s lending operations are financed by the contributions of developed countries.
is the largest global development institution focused on helping the private sector. It helps developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments
International Finance Corporation (IFC)
was created in 1988 to provide loan guarantees and insurance to foreign investors against loss caused by non-commercial risks in developing countries.
Multilateral Investment Guarantee (MIGA)
operates independently of the IBRD, is responsible for the settlement by conciliation or arbitration of investment disputes between foreign investors and their host developing countries.
International Centre for Settlement of Investment Disputes (ICSID)
are both partnering with governments of developing countries
IBRD and IDA
focus on strengthening the private sector in developing countries
IFC, MIGA and ICSID
Who are the world’s biggest bank debtor
India, Indonesia, Bangladesh, Pakistan
An organization of 189 countries working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world
International Monetary Fund (IMF)
IMF is also regarded as the
guardians of good conduct in the area of balance of payments
IMF’s source of fund
The IMF’s primary source of fund is from the quotas paid by its member states. The size of each quota is determined by how much each government can pay according to the size of its economy. Hence, the quota of states reflects their relative position in the global economy and determines the voting power of states in IMF decisions.
The IMF’s primary purpose is to
promote global monetary cooperation and international financial stability.
Core Functions of the IMF
- Surveillance
- Lending
- Capacity Development
This organization’s mission is to manage the rules of international trade and ensure the fair and equitable treatment of all members through negotiations and trade dispute settlements
World Trade Organization
“The _____ was born out of negotiations; everything the _____ does is the result of negotiations”
WTO
Functions of the WTO
- To implement trade agreements
- To provide forum for trade negotiations
- To handle trade disputes
- To monitor national trade policies
- To provide technical assistance and training for developing countries
- To cooperate with other international organizations
Principles of trading under WTO
Trading should be:
1. Without discrimination
2. Most-favoured-nation or MFN treatment.
3. National treatment.
4. Free
5. Predictable
6. More Competitive
7. More beneficial for less developed countries
- any enterprise that undertakes foreign direct investment, owns or controls income-gathering assets in more than one country, produces goods or services outside its country of origin, or engages in international production
- formal business organizations that have spatially dispersed operations in at least two countries.
Transnational companies
Tnc’S TWO BASIC CHARACTERISTICS
- it engages in enough business activities which includes sales, distribution, extraction, manufacturing, and research and development outside the country of origin which leads to being dependent financially on operations in two or more countries
- its management decisions are made based on regional or global alternatives.
What are Tnc’S that resemble small countries
the sales of both Microsoft and Nike are larger than the GDP of all but a few nations in the world including part of African nations
What are the reasons for being a TNC
- Access to lower production costs
- Proximity to target international markets
- Avoidance of tariffs
is the practice of obtaining goods and services from foreign suppliers
Outsourcing
- networks—consisting of individual producers, companies, transportation, information, and more—that extract raw materials, transform them into finished products, and deliver those products to consumers.
- supply chains are the steps it takes to turn an item (like aluminum) into a finished product (like that new iPhone in your pocket).
Global Supply Chain
Supply Chain Ecosystem Cycle
Supplier -> Procurement -> Inventory/Logistics -> Manufacturing -> Distribution -> Customer
World Politics has four key attributes:
- There are states/countries that govern themselves and are independent
- Second, these states or countries connect with each other via diplomacy.
- Third, international organizations, such as the United Nations (UN), facilitate these interactions.
- Fourth, beyond simply facilitating meetings between states, international organizations also take on lives of their own.
system of organization in which people with a common identity live inside a country with firm borders and a single government
Nation-State
govern a territory with boundaries. It has its own government that enforce laws, impose taxes, officials, own currencies, postal services, police and (usually) armies etc. They claim “sovereignty” within their territory. They wage war, negotiate treaties, put people in prison and regulate life in thousands of ways
State
groups of people claiming common bonds like language, culture and historical identity.
Nation
termed nation as an “imagined community” - nation allows one to feel a connection with a community of people even if he/she will never meet all of them
Benedict Anderson
States connect with one another in an environment known as the ____________.
system of competing and allying states
Interstate System
Significant Events that Marked the Milestones in the Development of the Interstate System
- The Peace of Westphalia (1648)
- SHIFTING BALANCES OF POWER (1600 – 1800)
- Emergence of Nationalism (1800–1945)
- New world orders (1945 – present)
- finished the 30 year war between the Catholic states and the Protestant states in Central and Western Europe, establishing the modern international system.
- each nation’s sovereign could do what she or he wished in its borders and recognized the state as the main actor in the global politics
- The Peace of Westphalia (1648)
- nation-state emanated as the commanding political unit of the international system.
- BALANCE OF POWER: Strong states controlled Europe and the weaker states joined forces to prevent the dominant states from being powerful
- Wars and economic competition were prominent.
- England and France became powerful while Ottoman Empire and Spain shrank in power over the time.
SHIFTING BALANCES OF POWER (1600 – 1800)
The 19th century leads two significant changes in the international system:
- First: nationalism appeared as a strong force –authorizing the nation-states to grow more powerful.
- Second: Germany and Italy became unified countries – which amended the balance of economic in military power in Europe
Emergence of NationaliSm (1800–1945)
- After the war, there are only two great worlds that survived: the Soviet Union and the United States.
- Even though some other dominant states existed, almost all states were understood within because of their relations with the two countries.
New world orders (1945 – present)
Power is centered to two countries.
Bipolar
One super country
Unipolar
Increased power of some Asian and European states.
Multipolar
____ is redefining the role of the nation-state as an effective manager of the national economy.
globalization
Governments may not be the one to conceive globalization, but they are the means towards its facilitation. - State as _______ of globalization.
midwife
- From latin word and means between or among nations
- ________ refers to the increasing importance of international trade, international relations, treaties, alliances, etc.
- people do not relate directly to each other as individuals but usually interact with each other as citizens of different nations and in formal settings by means of national representatives.
- Nation remains the basic unit.
Internationalization
global economic integration of many formerly national economies into one global economy, mainly by free trade and free capital mobility, but also by easy or uncontrolled migration.
Globalization
Views the world as made up of a collection of nation-states
Internationalization
Views world a single planet where national boundaries are relatively insignificant.
Globalization
- the formal and informal arrangements that produce a degree of order and collective action above the state in the absence of a global government.
- will be possible by the coordination of the state and non-state actors.
Global Governance
Globalization is the ____; internationalization is the ____.
end; means
- Formed by states
- States come together to form an organization, and they establish a structure based on a formal instrument of agreement.
- For instance, ASEAN was basically formed when the ten nations in Southeast Asia joined.
- Other examples are: World Trade Organization (WTO), World Bank, International Monetary Fund (IMF) and the most prominent of all is the United Nations (UN).
International Governmental Organizations (IGOs)
- Generally private, voluntary organizations whose members are individuals or a group of people.
- Usually, NGOs are created to solve specific issue.
- Examples are: Greenpeace (environmental group), World Wild Fund (wild animal protection group, Amnesty International (human rights group).
International Non- Governmental Organizations (INGOs)
Goal of Global Governance
provide global public goods, particularly peace and security, justice and mediation systems for conflict, functioning markets and unified standards for trade and industry
- said to be the primary venue and formal arrangement for global governance involving states and non-state actors.
- International organization found in 1945 a way to prevent future conflicts.
- The destruction caused by the Second World War compelled the people to establish an international organization for keeping the world away from war and in favor of friendship and cooperation among all the nations. It is currently made up of 193 Member
The United Nations
