GBTE-C13: Dealing with, Resisting, and the Future of Globalization
Class: IS403 Created Time: January 12, 2022 3:55 PM Database: Class Notes Database Last Edited Time: January 14, 2022 3:32 PM References: GBTE-Globa Type: Lecture, Presentation Notes
Three Broad ways to respond to economic globalization
1. Protectionism: due to economic inequality between rich and poor states
- Protectionism: tariff, quota, export subsidies, increase production at home
- tariff and non-tariff barriers
- could have severe consequences, but still is popular
- Justification:
- to guarantee national security (protection of defense industries)
- to ease transition to a more liberal trading position
- to support new industries
- Disadvantage:
- Industries have less motivation for innovation: stagnant tech
- protected industries become less efficient
- still can’t compete with outside
- Protectionism reduces exports (growing production costs)
- Developing countries pay attention to manufacturing, not agriculture
- long term food security issue: always need food import
- Industries have less motivation for innovation: stagnant tech
- Factor contributing to rise of protectionism:
- Crisis can urge use of protectionism
- Domestic politics used by leaders as own nation first to win office (Trump)
- Foreign Policy Objective: of stopping global competitor from rising
- US using economic influence, protecting itself to slow down China
- Absence/decline of free trade ideology: no more Liberalization vs Communism anymore
- Capitalism isn’t as good as promised
- Karl Marx: liberalism allow human being to suffer from one another, allow exploitation, rich vs poor
- Principle of Reciprocity: if you attack me → I attack you
- China put protectionism → US protect as well
2. Fair Trade: sustainable development for development of the South
- Fair Trade: a system of direct trade between marginalized producers (mostly in the global South) and consumers (mostly in the global North) that provide workers with better working conditions, higher pay, increased community development, and more sustainable environment practices
- To make sure all relevant and involved stakeholders get the same benefits from globalization
3. Helping ‘the Bottom Billion’
- North and South is too over talked, the poorest countries who can’t even compete should be important
- The bottom don’t have capability of benefiting from globalization
-
Financial, construction assistance to vulnerable groups (doubts about effectiveness)
- Vulnerable become stagnant: rely on aid, doesn’t want to improve or they’ll lose aid
-
Military intervention: creates lots of unintended consequences (mixed results)
💡 Ex: Afghanistan, Libya, Iraq suffering due to intervention
- New installed regimes by external power: creates civil conflicts
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Approaches to dealing with globalization on politics
- to promote political cooperation
- Accountability: through global organizations with mutual monitoring
- to make sure of no free-ride
- Transparency: sharing of data
- Rely on data from Transparency International
Resistance to Globalization
- Those who choose to reject globalization who only see negative view of globalization: can be state/non-state actors
-
Ultranationalist:
💡 Ex: Khmer Rouge leader: too much nationalism that they isolate for betterment of country
-
Radicalists: environmental activist, religious fundamentalism, suicide attacks, bombing to stop processes
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Populists
-
- Those who hate globalization use benefits globalization to destroy globalization
- Airplanes transport to protest pollution issues
💡 Opponents of globalization < Supporters of globalization
Future of Globalization
- Globalization will continue to grow and expand
- WW1 & WW2 still allowed economic activities
- Coronavirus still have countries trade food and vaccines with one another
- Reforms are needed for political globalization to grow
- Accountability and transparency need improvement (WHO in 2020)
- Long term or worse case scenario: deglobalization due to nuclear war, asteroid impact, human extinction