1 / 42

Chapter 12

Chapter 12. Global Economic Competition and Cooperation. National Economic Power: Assets and Utilization. Economic Incentives. Mixed success rate Highly contentious. Economic Sanctions: Effectiveness. More effective in certain circumstances Mixed Modest goal

duscha
Download Presentation

Chapter 12

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 12 Global Economic Competition and Cooperation

  2. National Economic Power: Assets and Utilization

  3. Economic Incentives • Mixed success rate • Highly contentious

  4. Economic Sanctions: Effectiveness • More effective in certain circumstances • Mixed • Modest goal • Target politically unstable and weak • Sender and target friendly and trade with each other • Imposed quickly and decisively • Sender avoids high cost to itself

  5. Drawbacks of sanctions • Unintended victims • Hurt the country imposing sanctions • Used by EDCs to maintain dominance over LDCs • Harm relations with countries not supporting sanctions • Harm those whom you seek to assist

  6. The North and the International Political Economy

  7. The Economies of the North • High GDP • Slowing growth rate • Postindustrial economy • High technology means fewer workers • Downsizing

  8. National Economic Issues and Policies of the North • Decline in economic fortunes

  9. End of cold war • Lessened need for strategic cooperation • Trade disputes among trilateral countries

  10. Decline of central direction • Group of Seven (G-7) • Group of Eight (G-8) • Disputes in general • Free trade • NAFTA • WTO • Protectionism • Economic disputes among the EDCs • U.S.-Japan dispute

  11. The South and the International Political Economy

  12. Status • Disparity between countries • Disparity within countries • Economic class, race, ethnicity

  13. Modernization • Explosive population growth • Rapid urbanization • Industrial and environmental dangers

  14. Capital Needs: Hard Currency • Loans: Government and private • Slowing global economy means fewer exports and dropping prices • Debt crisis • Brady Plan

  15. Private investment • Foreign direct investment and foreign portfolio investment

  16. Trade: Export earnings • Product instability • Market and price weaknesses

  17. Foreign aid • Bilateral • Multilateral • Factors that reduce impact • Political considerations • Military content • Measuring recipient per capita aid, rather than gross aid • Measuring donor aid relative to wealth • The way aid is applied

  18. LDC Perspectives and Policies • Expectations rising • Nationalism • Increased moral rhetoric • Transnational ideology

  19. Development of the LDC movement • Political nonalignment • Group of 77 (G-77) • United Nations Conference on Trade and Development (UNCTAD)

  20. LDC demands • New International Economic Order (NIEO) • Trade reforms • Monetary reforms • Industrialization • Economic sovereignty • Economic aid

  21. LDC action • Cartels • Protection of domestic industries from foreign competition

  22. The Future of National Economic Policy

  23. Barriers to Merchandise Trade • Tariffs • Nontariff barriers • Quotas • Pricing limits • Technical restrictions • Subsidization • Dumping • Debate on Free Trade

  24. Global Economic Cooperation

  25. UN and Economic Development of the South • Pragmatic factors • Decreased international violence • Increased economic prosperity

  26. Response of North • Programs • UN Development Programme (UNDP) • UN Industrial Development Organization (UNIDO) • UN Conference on Trade and Development (UNCTAD) • Group of 77 (G-77)

  27. General Economic Cooperation: Other IGOs and Processes • Organization for Economic Cooperation and Development (OECD) • Group of 7 (G-7) • Some CITs

  28. Trade Cooperation • GATT/WTO • Uruguay Round • Arguments for and against • Tariff reductions

  29. Structure of WTO • Power to enforce provisions of GATT • Assess trade penalties • Countries can withdraw • Three-judge panel hears trade violation complaints • Sanctions • Each country has one vote • Imposed by 2/3 vote

  30. The future of GATT and WTO • What if a country rejects WTO rules? • Strengthening of movement against globalization

  31. Monetary Cooperation • Early monetary regulation • Bretton Woods

  32. IMF • Helps maintain exchange-rate stability • Special Drawing Rights • Efforts in the 1990s • Stabilize economies of LDCs • Aid CIT reorientation to market economy • Asian financial crisis • Russian financial crisis

  33. Controversy: IMF • Voting based on member contribution • Conditionality • Interferes with sovereignty • Destabilizes countries • Maintains dependency of LDCs • Capitalism and social justice

  34. Development cooperation: The World Bank Group • International Bank for Reconstruction and Development (similar to commercial bank) • International Development Association (focuses on loans to poorest countries) • International Finance Cooperation (loans to LDCs and guarantees private investment promoting private-sector development • Multilateral Investment Guarantee Agency (promotes flow of private development capital to LDCs through guarantees)

  35. Controversy: World Bank • Dominated by North • Too little funding • No understanding of the needs of South • Terms of loans violate sovereignty, damage economies • Not enough attention to human and environmental impacts of projects • Promote market economies, foreign direct investment, and other aspects of capitalism

  36. Regional Economic Integration • Bilateral or Multilateral Economic Cooperation

  37. Economic Integration: Surrender Some Sovereignty • Levels • Free trade area • Customs union • Economic union • Monetary union

  38. The Western Hemisphere

  39. The North American Free Trade Agreement • The evolution of NAFTA • The impact of NAFTA • Economic and nationalistic problems of NAFTA

  40. The Free Trade Area of the Americas • The origins of FTAA • The Summit of the Americas • The future of FTAA • The Southern Common Market (Mercosur)

  41. Asia, the Pacific, and Elsewhere • Association of Southeast Asian Nations (ASEAN) • Asia-Pacific Economic Cooperation (APEC) • Slow progress

  42. The Future of Regionalism • Integration versus revival of regionalism

More Related