IR 210 1st Edition Lecture 6 Current Lecture People who issue a general condemnation of power politics do not recognize the ubiquity of the lust for power and its evilness There is no choice between wanting and renouncing power Hans Morgenthau Pro globalization anti globalization Belief systems in the economic policy world o Why The systems shape the debates What should government do Controversies in the economic policy world Political military world Economic Belief Systems Robert Gilpin s Three Capitalism Socialism Neomercantilism Soviet Union authoritarian state capitalism not socialism in the true sense The current economic crisis as suggested by Stiglitz has caused many to question neoliberal orthodoxy Neoliberal orthodoxy used to describe the Washington consensus o Why Washington consensus Pax Americana Bretton Woods Note Why did we go to war WWI WW2 Because of neomercantilism People are adopting trade policies that enhance their own power Trade policies to restrict trade and subsidize own products to make them look more attractive Enhance economy at expense of others Economic attack war Tom Friedman s notion that there are many speeds but one highway neoliberal orthodoxy golden straight jacket Washington consensus or Beijing consensus Suggests that there many varieties of capitalism and socialism Mercantilism more a political decision Protectionist policies subsidies and tax and tariffs o Obama s state of union we are going to prevent China from piracy True capitalism government has minimal role 1 Socialism Nordic model a Social democratic states have more government control b Peristatal state owned things i Everybody had to have access to basic things c What is the purpose of a social democratic government i Make sure no one is unfairly advantaged of disadvantaged ii Safety net iii Totally against American political culture d Capitalism we give citizens an equal opportunity 2 Which form of capitalism a Great debate of 21st century i Beijing Nordic American models James Fallows Anglo American capitalism vs Asian capitalism Consider these factors in two different forms of capitalism Purpose of economic life o Anglo American enrich individual o Asian enrich state make sure state doesn t lose power Link strength as a nation state to economy Trying to avoid vulnerability View of power o Anglo American we break up power we don t like monopolies o Asian concentrate power concentrate industries state maintains industries View of surprise o Anglo American we look at a market surprise as an opportunity Major increases in the prices of oil Alternative energy companies have an opportunity o Asian do not like change all about control no market surprises Borders and the other o Anglo American no borders borders are permeable CEO perspective world is a marketplace o Asian competition in the political world success of economy is important to political act important to leadership of country state uses it resources to secure necessary markets and supplies to be strong Where are you sending money if you re an Asian leader Africa World War 4 In general basic different in what the economy is for its core purpose More for consumer vs more for the state and the producer More complicated in the Asian model because there are local regional governments military Egyptian economy controlled by military In general debates about economic systems and the role of government shaped by political culture but globalization shapes these debates as well List and Alexander Hamilton differed with Adam Smith Today Tom Friedman on US politics shaped more by globalization State is weak if they don t have a strong economy US is now very vulnerable as an economy 4 Choices 1 Integration of global economy a We aren t going to get involved in global economy produce everything domestically 2 Safety netters vs Let them eat cake minimal government a How far are politicians going to provide for citizens b Safety netter Obama s recommendation for more funding to community colleges to train people for global economy 3 Separation from global economy Both political parties have seemed to recognize the necessity of integration into global economy As a result real political debate is between safety netters and let them eat cake Nordic model safety netters Purpose of this system To enrich community Asian model safety netters Separation from global economy North Korea Controversies in the Economic Policy World Persistence of global poverty structural violence More deaths related to poverty than war How many people died due to poverty on 9 11 Look at Chapter 28 especially case studies in 28 1 and 28 2 Difference between momentary terror and long term terror Mark Twain Millennium Development Goals Pledges for 2015 Development Decades Chapter 29 Human Security Who is closest What do we do when we don t meet goals How do you get American people to pay attention to these issues o Incentives micro loans emphasize community o Social media educational strategy appeal to humanity o Make it a security issue o How would a Machiavellian Kantian Grotian appeal to poverty 2002 UNCTAD REPORT POVERTY TRAP Globalization is not good for the poor World is more unequal and poor states are left behind Chance of dying due to poverty is 33 times higher than dying in war Poverty and fragile states incubators of violence global stability terrorism Economic Crisis Rising calls for protectionism and economic nationalism Case Study on pg 455 Global and Regional Governance how to manage a global economy with competing national interest and variety of global actors Pages 298 301 Regimes Pages 248 252 Economic Institutions Key Questions 1 How do we minimize vulnerabilities in system and try to avoid defectors from LIEO 2 How do you make globalization less predatory Reform pushed by NGOs and TSMOs TANs global social justice Transnational social movements Radiohead U2 Jubilee movement What is the problem with globalization and how do we respond FINAL QUESTION 1 Liberal internationalists Maintainer a We don t want globalization to push us into vulnerability category want to benefit from globalization Globalization undermines sovereignty and power b If you re a rule maker state you re happy 2 Reform internationalists Reformer a Like a maintainer because you want to benefit from it b Promote multilateral cooperation want stability and predictability in the system c More cooperation rather than fighting d Regimes to help system work e European Union regional