IR 210 1st Edition Lecture 5 Current LectureThe 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-KeynesDomestic Policy- Quality of lifers, egalitarians- Private enterprisersState of the Union- Lots of political statements masked as economic statements- Reveals our political structure- Saying things Republicans like to hearo Shows where American political culture is- Statements are bi-partisan- Obama is up for reelection- Machiavellio Tone of speech starts out this wayo Talks about soldiers in Iraqo American military officials in the front rowo “America is strong”, don’t question military strengths, or any strengthso Patriotism- Grotistso Unhappy, not a lot of cooperation in the speecho Speech was about America - Kantianso Outside with Occupy movemento What about human interest? Social justice, economic well being, ecological balance, peaceo Like the stress on clean energy movement, less dependency on outside oilo Establish Trade Enforcement Unit unilaterally, do it with the UNo If we do it on our own, we can use it and abuse itHow do we deal with three critical international system constraints?- No common power- Linkages create constraints- Search for orderAll 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 worldo Avoid vulnerabilityo Want to keep linkages in sensitivity categoryo Search for order: be the most powerfulo Concert system: coalition of small group of powerful countries-Grotian and Kantian response?Why is globalization different today from the globalization of the 16th century?-More linkages, more complex interdependence-Technology makes process faster-Boundaries are more permeable-More actorsHow does globalization affect a state’s independence and flexibility?- Makes independence impossible and limits flexibilityIn 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 borderso Lot more movement of people, global networks, criminal networkso Means of exchange is harder if currency is based on another currency, currency isbased on success of euro or dollar- Accumulation of wealth: help people get jobs, manufacturing- Redistribution activities: educationo State of Union: funding legislation to fund higher education and better quality teachers (redistribution policy)o GI Bill: job corps for people who leave militaryo Globalization  lot less money to provide for these programso 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 presidentGlobalization is an uneven process. Globalization is predatory.- Search for lowest common denominator (Kantians, Marxists)o Some states benefit most, some least, some regions within stateso Silicon Valley, film industries, brand names are benefittingo Cleveland, Buffalo, Pittsburgh are suffering, manufacturing areas are not doing well- States are interveningWould 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 downAll 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 evilsGlobalization  more global public goods and global public evils- Clean air in USo But there is bad air in China being produced and blowing overGlobal 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, NAFTAo Organizations to work togethero If we start being protectionist is that going to haunt us? Punishing China  Chinacan decide not to invest in American debto Christmas without ChinaGlobalization smashes all of our four worlds together. Is it possible to manage?Post WW2 Rule Makers- US and Europe  Bretton Woods Systemo IMF: financial stability, monetary policy, exchange rates, values of currency, debt issues, short term reliefo World Bank Group Loan for infrastructure NIEO (New International Economic Order)- Attempt to change system because system wasn’t working, rebuildareaso Bretton Woods System Political goals: alternative to communist system, our system is better Economic goals: stabilityo 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 ten-year 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 BankPAX AMERICANAThe 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 intoour system-People are questioning whether to stay on this team-System is slower now, other teams are challenging us-Washington consensusWhy 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