Transcript Ozone Depletion I

Globalization and Its Discontents
IR Theories on the EU
 Liberalism
– Institutions
– Domestic politics and intergovernmental bargains
– Functionalism – functional spillover
 Constructivism
– Norms of democratic community
 Realism?
Globalization
 Globalization: Global networks of interdependence
(Nye 2004)
 Interdependence: mutual dependence of actors
across different parts of the international system
(Keohane and Nye 1977)
 “…globalization is about connections between
different region of the world-from the cultural to
the criminal, the financial to the environmentaland the ways in which they change and increase
over time….”(Held et al. 1999)
Elements of Globalization
 Trade
– Exports: $66bn (1960) -$7,100bn (2002)
 International finance
– FDI: $68bn (1960) $7,100(2002)
 Multinational corporations
– 3,500 (1960) to 65,200 (2001)
 Regional integration
Elements of Globalization
 Cultural globalization
 Disease
 Environmental interdependence
 Population and migration
 Transnational trafficking networks
 Transnational terrorism
Trends: FDI Flows
FDI Inflows 1970-2004
1 400 000
1 200 000
World
1 000 000
Developed countries
and territories
Developing countries
and territories
800 000
600 000
400 000
200 000
Year
00
Y2
0
95
Y1
9
90
Y1
9
85
Y1
9
80
Y1
9
75
Y1
9
70
0
Y1
9
Millions of dollars
1 600 000
Trends: Trade Flows
Sources of Globalization
 Technology
 Triumph of liberalism
– Francis Fukuyama: The End of History?
– Washington Consensus
 Institutions
– WTO
– International Monetary Fund (IMF)
– World Bank
Is Globalization Good or Bad?
Benefits of Globalization
 Access to information
 Access to goods
 Access to technology
 Access to capital
The Risks of Globalization
 States lose control
 Heightened vulnerability
 Benefits distributed asymmetrically
 Economic objectives trump social, cultural,
environmental objectives
Case: From the Asian Miracle to
the Asian Financial Crisis
 The miracle:
– South Korea: 7%-8%average growth 1970s-1990s;
– Thailand: 7%-8.5% growth rate 1960-1980s
 1990s: rapid financial market liberalization
 1997 Financial Crisis
– Thailand: fear of currency devaluation->sell baht->currency devaluates>capital flight; financial instability;
– Korea: rumor that economy in trouble/bank will not renew loans ->
banks unwilling to renew loans ->economic trouble due to high
indebtedness
– Korea: GDP -7%; Thailand: GDP -11%
Case: Intellectual Property Rights
(Biopiracy)
 Mexican yellow bean
– Larry Proctor (Colorado) patent on “Enola” bean, originally
from Sonora (Mexico)
 Basmati rice
– RiceTec Inc (Texas)-Texmati Rice patent
The global banana
 Distribution of a dollar of retail
revenue:
–
–
–
–
–
–
–
–
Producer income
Export costs $0.04
Transport
Import license
Ripening process
Taxes
Distribution/retail
Profit
$0.05
$0.11
$0.09
$0.05
$0.15
$0.34
$0.17
Source: Lipschutz,2004, p. 2
The Backlash: Seattle 1999
Solutions, Solutions….
The Role of Institutions
 Keynesian welfare politics?
 Domestic institution?
 Gradual liberalization, mitigated by government
policies?
 Strengthen international institutions?
 Tackle poverty?