IR 210 1st Edition Lecture 6 Current LecturePeople 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 MorgenthauPro-globalization/anti-globalization- Belief systems in the economic policy worldo Why? The systems shape the debates. What should government do?- Controversies in the economic policy world- Political/military worldEconomic Belief SystemsRobert Gilpin’s Three:Capitalism, Socialism, Neomercantilism- Soviet Union: authoritarian, state capitalism, not socialism in the true senseThe current economic crisis—as suggested by Stiglitz has caused many to question neoliberal orthodoxy. - Neoliberal orthodoxy: used to describe the Washington consensuso Why Washington consensus? Pax Americana, Bretton WoodsNote: 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  warTom 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 tariffso Obama’s state of union, we are going to prevent China from piracy- True capitalism: government has minimal role1. Socialism: Nordic modela. Social democratic states have more government controlb. Peristatal: state owned thingsi. Everybody had to have access to basic thingsc. What is the purpose of a social democratic government?i. Make sure no one is unfairly advantaged of disadvantaged ii. Safety netiii. Totally against American political cultured. Capitalism: we give citizens an equal opportunity2. Which form of capitalism?a. Great debate of 21st centuryi. Beijing, Nordic, American modelsJames Fallows:Anglo-American capitalism vs. Asian capitalismConsider these factors in two different forms of capitalism:- Purpose of economic lifeo Anglo-American: enrich individualo Asian: enrich state, make sure state doesn’t lose power Link strength as a nation-state to economy Trying to avoid vulnerability- View of powero Anglo-American: we break up power, we don’t like monopolieso Asian: concentrate power, concentrate industries, state maintains industries- View of surpriseo Anglo-American: we look at a market surprise as an opportunity Major increases in the prices of oil  Alternative energy companies have an opportunityo Asian: do not like change, all about control, no market surprises- Borders and the othero Anglo-American: no borders, borders are permeable, CEO perspective, world is a marketplaceo 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? AfricaWorld 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 militaryIn 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 globalizationState is weak if they don’t have a strong economy. US is now very vulnerable as an economy. 4 Choices1. Integration of global economy? a. We aren’t going to get involved in global economy, produce everything domestically2. Safety-netters vs. Let them eat cake (minimal government)a. How far are politicians going to provide for citizensb. Safety netter: Obama’s recommendation for more funding to community collegesto train people for global economy3. 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-nettersPurpose of this system? To enrich community. Asian model  safety-nettersSeparation from global economy  North Korea?Controversies in the Economic Policy WorldPersistence of global poverty: structural violence- More deaths related to poverty than warHow many people died due to poverty on 9/11?Look at Chapter 28 especially case studies in 28.1 and 28.2Difference 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 communityo Social media (educational strategy, appeal to humanity)o Make it a security issueo How would a Machiavellian, Kantian, Grotian appeal to poverty2002 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  terrorismEconomic Crisis: Rising calls for protectionism and economic nationalism- Case Study on pg. 455Global 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 InstitutionsKey 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 movementWhat is the problem with globalization and how do we respond? (FINAL QUESTION)1. Liberal internationalists/Maintainera. 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 happy2. Reform