IR 210 1st Edition Lecture 5 Current Lecture The ideas of economists and political philosophies both when they are right and when they are wrong are more powerful than is commonly understood indeed the world is ruled by little else Keynes Domestic Policy Quality of lifers egalitarians Private enterprisers State of the Union Lots of political statements masked as economic statements Reveals our political structure Saying things Republicans like to hear o Shows where American political culture is Statements are bi partisan Obama is up for reelection Machiavelli o Tone of speech starts out this way o Talks about soldiers in Iraq o American military officials in the front row o America is strong don t question military strengths or any strengths o Patriotism Grotists o Unhappy not a lot of cooperation in the speech o Speech was about America Kantians o Outside with Occupy movement o What about human interest Social justice economic well being ecological balance peace o Like the stress on clean energy movement less dependency on outside oil o Establish Trade Enforcement Unit unilaterally do it with the UN o If we do it on our own we can use it and abuse it How do we deal with three critical international system constraints No common power Linkages create constraints Search for order All state seeking to secure national interests thus we have competing priorities How do we deal with this from different world viewpoints Machiavelli goal in life is to be hegemonic power principal power in particular region of world o Avoid vulnerability o Want to keep linkages in sensitivity category o Search for order be the most powerful o Concert system coalition of small group of powerful countries Grotian and Kantian response Why is globalization different today from the globalization of the 16 th century More linkages more complex interdependence Technology makes process faster Boundaries are more permeable More actors How does globalization affect a state s independence and flexibility Makes independence impossible and limits flexibility In a global economy defined by complex interdependence what are the primary tasks facing leaders Globalization makes defining activities more difficult hard for countries to protect borders o Lot more movement of people global networks criminal networks o Means of exchange is harder if currency is based on another currency currency is based on success of euro or dollar Accumulation of wealth help people get jobs manufacturing Redistribution activities education o State of Union funding legislation to fund higher education and better quality teachers redistribution policy o GI Bill job corps for people who leave military o Globalization lot less money to provide for these programs o Millionaires should pay more taxes difficult because people can move Think about what other countries want as well people in Belgium don t vote for our president Globalization is an uneven process Globalization is predatory Search for lowest common denominator Kantians Marxists o Some states benefit most some least some regions within states o Silicon Valley film industries brand names are benefitting o Cleveland Buffalo Pittsburgh are suffering manufacturing areas are not doing well States are intervening Would you rather be a cow In EU states the average cow receives 2 20 from government subsidies In the world 2 8 billion live on less than 2 a day Keep prices of dairy products down All states further constrained and their independence to do what they want constrained Most things that politicians promise can not be done Piracy issues global effort that everybody that participates in We as citizens are impatient demand a great deal from our political leaders Politicians have micro tools and macro problems Problems are becoming global public evils Globalization more global public goods and global public evils Clean air in US o But there is bad air in China being produced and blowing over Global economy is it about national economies linked together or is it a global public good that needs protecting Clean air oceans Antarctic We all want the same thing Terrorism crime global public evil Global economy but political nationalism Regime governing arrangements in an area Create regimes to solve problems human rights regime global economy regime arms regime IMF WTO World Bank G20 NAFTA o Organizations to work together o If we start being protectionist is that going to haunt us Punishing China China can decide not to invest in American debt o Christmas without China Globalization smashes all of our four worlds together Is it possible to manage Post WW2 Rule Makers US and Europe Bretton Woods System o IMF financial stability monetary policy exchange rates values of currency debt issues short term relief o World Bank Group Loan for infrastructure NIEO New International Economic Order Attempt to change system because system wasn t working rebuild areas o Bretton Woods System Political goals alternative to communist system our system is better Economic goals stability o What is attractive about Soviet system Third world countries o Development Decades 1960 OECD we re going to give you this money to help you develop in a tenyear period World Bank response to demand for transformation spending money on basic human needs show that third world leaders are focusing only on political agendas South Bank PAX AMERICANA The design is the American version of the Western liberal dream a closely knit world system of vigorously prosperous democracies enjoying security from military aggression permitting the free movement of goods money and enterprise among themselves and promoting the rapid development and integration of those nations who liberal progress leaves behind David Calleo Many countries bought into our message and are now our competitors because the system worlds so well We provided security American troops in Germany In exchange for people working into our system People are questioning whether to stay on this team System is slower now other teams are challenging us Washington consensus Why you should care as a USC student A competitive world like ours has two possibilities for you You can lose or if you want to win you can change change includes a better understanding of the world and all its actors Lester Thurow Read Chapters 15 and 27 Know actors in world systems interests relationships governmental business non profit subnational national international Consider contributions of actors 1 Primary