Week 13: The globalization and IPE, think again - summary

Question 1

What is globalization?

Answer 1

• Process of increased interconnectedness and interdependence among countries driven by the exchange of goods, services, information and cultural elements
• Integration of the world economies into the global economy through trade, investment, technology and migration

Question 2

What was the Polányi double movement?

Answer 2

• A central idea in his seminal work, “The Great Transformation”
• Describes the dynamic between the expansion of free markets and the subsequent social reactions against their negative effects

Question 3

Key points of the Polanyi’s double movement:

Answer 3

1. Self-Regulating Market:
   - 19th century saw the rise of self-regulating markets driven by liberal policies, promoting free trade and minimal state intervention
2. Double Movement:
   - First Movement: Push for market liberalization, characterized by policies like the gold standard and a focus on free trade
   - Second Movement: Social response to protect against market excesses, leading to the introduction of welfare programs, labor protections, and regulations to mitigate negative impacts

Question 4

NOT A QUESTION
Dica pra aprender sobre o Polanyi’s double movement:

Answer 4

1.The First Movement: The Market Expansion:
- This is the push for a free, self-regulating market where goods, labor, and money are treated as commodities to be bought and sold.
- The idea is that markets should operate without interference, driven by the belief that they will naturally create efficiency and prosperity.

2. The Second Movement: The Social Response:
   - As markets expand, they often cause harm to communities, workers, and the environment (e.g., low wages, poor working conditions, social inequalities, environmental degradation).
   - In response, society pushes back, demanding protections like labor laws, social safety nets, and environmental regulations.

Why does this happen?
Polanyi argued that treating labor, land, and money as if they are regular “commodities” is unnatural because they are deeply tied to people’s lives and the social fabric.
For example:
Labor = people’s livelihoods.
Land = the environment people depend on.
Money = the stability of economies.
When these “commodities” are bought and sold with no limits, it can destabilize society. People, communities, and governments often react to protect themselves from the negative impacts.

Question 5

Describe the deterioration of the economy regarding globalization:

Answer 5

1. The decreasing importance of national borders in economic activities due to globalization and transnationalization
2. Impacts the sovereignty of the state:
   - Internal Sovereignty - the state’s monopoly over legitimate power within its borders
   - External Sovereignty- the state’s ability to regulate and influence international activities

Question 6

What is transnationalization?

Answer 6

• Transnationalization refers to the process where economic, political, cultural, or social activities extend beyond national borders, creating interconnected networks and relationships between countries, organizations, and people. It highlights how globalization fosters cross-border interactions while bypassing the traditional focus on nation-states.
• Increasing levels of transnational activities in production and financial markets mean these markets are less tied to specific nation-states

Question 7

What are the forms of Economic Interdependence?

Answer 7

• Trade: countries rely on each other for goods and services, creating a global supply chain
• Cross-border investments and multinational corporations integrate economies
• Global financial markets and institutions connect national economies

Question 8

What are the forms of Political interdependence?

Answer 8

• Entities like the UN, WTO, and IMF facilitate cooperation and establish regulations
• Bilateral and multilateral agreements on trade, environment, and security bind nations together
• Countries often align policies on issues like climate change, economic crises, and terrorism

Question 9

What are the forms of cultural interdependence?

Answer 9

• Global media and the internet spread cultural products and ideas worldwide
• Movement of people across borders promotes cultural exchange and diversity
• International collaboration in education and scientific research fosters cultural and intellectual exchange

Question 10

What are the global governance models of institutionalism, club model and neomedievalism?

Answer 10

1. Institutionalism: Relies on formal international organizations and institutions (e.g., UN, WTO) to create and enforce global rules and norms
2. Club Model: Involves small, exclusive groups of powerful countries (e.g., G7, G20) making decisions and implementing policies quickly and flexibly
3. Neomedievalism: A complex system of overlapping authorities with multiple actors, including states, supranational organizations, and non-state entities (e.g., EU, NGOs)

Question 11

What is transgovernmentalism?

Answer 11

Collaborative interactions and partnerships between governmental agencies of different countries, bypassing traditional state-to-state diplomacy