SOA 1061st Edition Lecture 32Outline of Last LectureI. Movie DayOutline of Current LectureI. Globalization and Movie NotesII. Major Players in GlobalizationIII. Effects of GlobalizationCurrent LectureGlobalization and Movie Notes● Marx predicted that as capitalism grows it will invade other countries and create oppression of the citizens● IMF and World Bank loan money to third world countries but the catch is that the countries have to restructure their economy to the tenets of neoliberalism● Intersection of economics and politics○ we oppose the regimes that are not beneficial to the US○ we assassinate elected leaders or create a revolution in the countries that do not benefit the US■ Panama■ Nicaragua● Even if the regime is corrupt, we do not care as long as our companies are in their countries● SAPS-- structural adjustment programs○ what the IMF and World Bank did to Indonesia and countries like it● Debt controls people- student loans make us stray away from music and art and makes us follow majors that will make us lots of money● “Debt encumbered homeowners do not go on strike”○ we have applied the same idea to students● These same ideas are happening globallyMajor Players in Globalization● Global financial organization: IMF, World Bank, WTO○ lending to developing nations○ structural adjustment programs● Trans-National Corporations (aka Multi-National Corporations)○ companies that produce goods or market services in more than one country(Coke,GM, Mitsubishi)○ represent the foundation of economic globalization● Neoliberalism is an ideological shift during the 1970’s○ created by Reagan and Margaret Thatcher○ “There is no alternative (TINA)” - Thatcher● Its rational to pick paying someone $1 instead of $10○ but rational does not mean good● Are the people who live in third world countries lives better off because of globalization?They have awful jobs but without it, they have nothing○ the elites are better off but the poor might not necessarily be○ some are better off, some are not● States are competing against each other like companies doEffects of Globalization● Increased global inequality● Increased global poverty● Environmental degradation○ Honduras Mahogany forests● Risks to democracy○ peoples interests are always trumped by the interest of
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