1 / 22

Global Governance or World Order

Global Governance or World Order. Global Governance : ways to manage common affairs. The Commission of Global Governance’s definition :

teneil
Download Presentation

Global Governance or World Order

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. Global GovernanceorWorldOrder

  2. Global Governance: waystomanagecommonaffairs • TheCommission of Global Governance’sdefinition: • “Golobalgovernance is thesum of themanywaysindividualsandinstitutions, publicandprivate, managetheircommonaffairs. It is a continuingprocessthroughwhichconflictingordiverseinterestsmay be accomodatedandcooperativeactionmay be taken. Itincludesformal as well as informalarrangementsthatpeopleandindividualshaveagreedtoorperceiveto be in theirinterest”

  3. Global governance is not a global government; it is not a singleworldorder; it is not a top-down, hierarchicalstructure of authorities, rulesandmechanisms, formalandinformal, existing at a variety of levels in theworldtoday. • Pieces of GG: arrangementsandactivitiestodealwithissuesandproblems. • Theyincludeinternationalrules of law, normsor “softlaw”, andstructuressuch as formalinternationalintergovernmentalorganizations (IGO’s) andarrangements.

  4. Global governance: cooperative problem-solvingarrangements • Since the 1990’s popularity of thisconcept • Liberalsclaimthat global governance has become a prominentfeature of global politics since the 1990’s as a responceand an attempttoshapetheprocess of globalization • An importantaspect of global governance has beenthegrowth in thenumberandimportance of IO’s • Liberalsclaimthat since the WWII statesdemonstrated a capacitytosolvetheircommonproblemsthroughdifferentarrangements, such as IO’s, normsandrules. Tosupportthisclaimusuallytheexamples of the EU andthe Washington Consensusinstitutionsarebeingused

  5. Liberal claim • Liberalsclaimsthattheinternationalsystem has developedinto an internationalsociety • HedleyBull: frominternationalanarchyto an anarchicalsociety • Althoughanarchical, it has certainrulesandbased on certainnorms

  6. TheBrettonWoodsSystem • IMF, 1947 • TheInternational Bank forReconstructionandDevelopment (IBRD), betterknown as theWorld Bank, 1946 • General Agreement on TariffsandTrade (GATT), 1948 • WorldTradeOrganization (WTO) in 1995

  7. IMF • Toprovide global economicstability • Topromotefreetrade • Tooverseetheinternationalmonetarysystem • Tomaintainstableexchange rate • Toprovidefinance in times of instabilitytocountries in crisis • Allcurrencieswerefixedtothevalue of the US dollar • The US dollarwasconvertibletogold at a rate of 35 dollarperounce

  8. World Bank • Provideloansforcountries in need of reconstructionanddevelopment • The Marshall Plan wasmoreeffective in the post-warreconstruction • TheWorldBank’smainarea of activity is aidingandassistingdevelopment

  9. GATT • Topromotefreetrade • bybringingdowntarrifbarriers • andnon-tarrifbarriers • bypromotingrules of freetradeamongnations

  10. FromclassicalliberalismtoKeynesianism • TheBrettonWoodssystemwasconstructedtopromote an openandcompetativeinternationaleconomy • However, since wehaveIO’s at thecenter of thissystem, whichaims is not onlytopromote, but alsotooverseethissystemand stabilize it in times of crisis, • it meansthatcreatorsdidn’tbelieve in classical liberal economictheory • accordingtowhichmarketsareperfectandthere is no need of regulation

  11. Keynesianism: regulated market economy • Marketsare not perfect • Intimes of fluctuationsthere is a need of governmentalinvolvement in economy • Governmentsintervenebyexpandingspending, regulatingtaxationandloweringinterestrates • Thusgovernmentspromotegrowthandkeepunemploymentlow • Not Keynes, but the USA wasconstructor of theBrettonWoods • Don’tforgetthat in the final analysisKeynesianism is an economictheorywhichbacksfree market economy (but withsomeportion of regulation)

  12. The USA as a constructor of theBrettonWoods • Afterthewarthe US neededtosustaindomesticgrowthlevels • Highwelfarestandardscouldonly be providedbyinternationaltrade • Therewas a needtopromoteopentrade, stability in internationaleconomicsystem, reconstructionanddevelopment • EuropeandAsia had to be open=freefrominfluence of theSovietUnion • SecurityStrategy: topreventanysinglepower’sdomination in EuropeandAsia • Justliketherewas a needtopromoteinternationalfreetradefor a growingBritisheconomy in the 18th century • Theoriesfollowpractices

  13. “Structuralpower of the US” (Robert Cox) • Dollar as theworldcurrency • The global predominance of Americanfinancialmarkets • US control of the IMF • The US is predominant in theotherinternationaleconomicinstitutions, theWorld Bank andtheWorldTradeOrganization

  14. “Golden Age” of theworldeconomy: 1950’s, 1960’s • OECD memberstatesgrowthrates: 4-5% a year • Whatwasthecontribution of theBrettonWoodstothisgrowth is not clear • NationalKeynesianism’scontribution, stimulation of domesticgrowth • Thegrowthwasstimulatedbyhighandpermanentmilitaryexpenditure • TheinternationaleconomicstabilitywasprovidedbyAmericanhegemony

  15. Turmoil in the 1970’s • “Stagflation”: economicstagnationandrisingunemployment • In 1971 the US abandonedthesystem of fixedexchangerates • Inthiscontextleaders of themajorindustrializedcountriesstartedtomeet on a regularbasis • By 1975, theGroup of 7 wasformed (G-7) • An attempt of creation of a “New InternationalEconomicOrder” failed (alternativeworldorder in favor of developingcountries)

  16. FromKeynesianismto market fundamentalism • Change of IMF andWorld Bank rolesandpolicies • Liberalization of financialcapital: most Western countriesremovedcontroloverthemovement of currency in andout of theirborders. • Theresult: a vastand ever-growingsupply of capitalthatcouldmovefreely • The 1980’s: emergence of market fundamentalism • The 1990’s: the Washington Consensus

  17. Changing role of the IMF • Itwascreatedtooverseetheinternationalmonetarysystembygrantingloanstocountriesexperiencingtemporarybalance-of-paymentsdeficit • Inthecase of severe balance-of-paymentsinstabilitycurrenciescould be devalued • But generallythe background of stabilityshould be fixedexchangerates • The 1970’s: fromfixedexchangedratestofloatingexchangedrates • The IMF focused on lendingtothedevelopingworld

  18. DevelopmentandIO’s • Thechange in theWorld Bank’ role • SubordinatepositiontotheIMF’sleading role • From an alliance-basedsystemto an integratedsystem • Promotion of borrowing in theThirdWorld , debtcrisis • G-7 decidedtoensuretherepayment • From an import-substitution model to an export-oriented model • Fromregulationto de-regulation • Not development, but growth

  19. Structuraladjustment • A reduction in governmentexpendituresthroughtheremoval of subsidies • Theprivatization of government-ownedindustriesandservices • Theremoval of restrictions on theway of freetrade • Thederegulation of economy • Thepromotion of foreigninvestment • Thedevaluation of exchange rate in ordertoencourageexportsandreduceimports

  20. Liberalization • Privatization • Deregulationandfiscaldiscipline

  21. Structuralpower of the IMF • Conditionality • Reviewer of macroeconomicsituation • At stakeare WB moneyandothercreditors’ money

  22. The Washington Consensusand an expansion of liberal internationaleconomy • 1989 • 1991 • Transformationandtransition • Managing of crises • 2008 crisis • Therise of the rest

More Related