Announcements

1. OIL POLICIES and the FUTURE of INDIGENOUS TERRITORIES IN THE ECUADOREAN AMAZON Dr. Pablo Ortiz Andean University Thurs., Feb. 5th, 4:00 Hagey Hall 150 POSTPONED! Waterloo-Germany Exchange Open to all students. Receive UW credits-language fluency-International experience!  Info session from 12:30-1:30 p.m. Thursday, Feb. 5, 2004, ML 245 Check out the web site at:  http://germanicandslavic.uwaterloo.ca/exchange/. Announcements

2. Mid-Term Exam • short answer (paragraph) 60% • three sections – each worth equal weight • each section will present choice of two questions • Section A – Axioms of Political Science and Introduction to Globalization • Section B – Global Institutions I • WTO, NAFTA, EU • Section C – Global Institutions II • World Bank, IMF, UN

3. Globalization & Third World Development World Bank and the IMF February 3rd, 2004

4. The IMF -- Function • functions – to promote... • international monetary cooperation • expansion of trade • exchange rate ($$) stability • allow member countries to correct maladjustments in balance of payments • balance of payments=exports-imports • to allow countries to continue paying for imports without imposing import controls • provides short-term loans at market-related rate of interest • lower interest rates for poor countries (as of mid-1980s) • requires structural adjustment plan

5. The IMF -- Programs • Poverty Reduction and Growth Facility (PRGF) • Poverty Reduction Strategy Papers • concessional lending (i.e. low interest) • http://www.imf.org/external/np/exr/facts/prsp.htm • Highly Indebted Poor Countries (HPIC) Initiative • debt relief (joint IMF/World Bank) • http://worldbank.org/hipc/about/about.html • “eligible HPIC countries undertake sustained implementation of integrated poverty reduction and economic reform programs”

6. The IMF -- Structure • all loan arrangements must be approved by Executive Board • fund is based on quotas on members • based on the relative size of their economies in the world economy • votes based on size of quota contribution • IMF and the US -- http://www.nytimes.com/2004/01/08/business/08FUND.html?ex=1075525200&en=2e26ea5a76a51764&ei=5070

7. IMF, Votes by Country, 2002

8. The Washington Consensus • principles underlying the policies of World Bank and IMF • new model of neo-liberal economic development • market liberalization • privatization • economic stabilization • deregulation • World Bank and IMF structural adjustment policies (SAPs) • argument that loans were ineffective in fostering development without changes to ensure a healthy economy • countries had to be able to pay loans back • countries had “to get the basics right” • SAPs -- conditional loans issued to countries to pursue policy reforms in keeping with 4 goals above

9. The World Bank, IMF and Structural Adjustment • the critique • “In who’s interest? Just ask...who set it up?” former Jamaican President, Michael Manley • World Bank • allows rich western industrialized countries to dictate the path of development in their own interests • project their preferred model of development on the domestic policies of developing countries • wield imperialistic power over developing countries through the mechanism of debt • IMF • as above, plus... • allows rich western industrialized countries to expand their markets • ensures that debts of developing countries (to interests in developed countries) are paid

10. The World Bank, IMF and Structural Adjustment • the defense • what is the alternative? • would anyone argue that poor countries be denied IMF and World Bank loans? • capital (necessary for development) would not otherwise be available on the open market • however, cannot simply give money away... • countries must be able to show that they will be able to pay it back • best way to do so is to “get the basics right” – create conditions for economic development • to some significant degree, this is where the difference lie • basic problems of poverty and underdevelopment are not created by World Bank and IMF

11. The World Bank, IMF and Structural Adjustment • the counter-critique • international institutions (e.g. IMF, World Bank) would be more sensitive to needs of developing countries if they had stronger representation of developing countries • there are other alternatives • e.g. debt relief

12. International Relations Managing Interdependence February 3rd, 2004

13. International Political Framework • states are the main players • are sovereign • exist in international system • are interdependent • to manage interdependence, states can: • devise rules, mechanisms for peaceful co-existence • foundation for international law, institutions • international regime: regularized pattern of interaction between countries, through law, institutions, diplomacy • resort to force or threat of force

14. International Political Framework • managing interdependence is difficult • different preferences re. domestic politics, international order • international inequalities of power • domestic concerns about loss of sovereignty

15. International Political Framework – Major Changes • end of the Cold War • interdependence is increasing • “Globalization...means an ever larger and more demanding international agenda, more engagement by countries in each other’s affairs over matters farther and farther behind each other’s borders, and, even among friends, more collisions of interest.” Jessica Matthews, Estranged Partners • domestic politics are more and more affected by politics at the international level and vice versa

16. America’s War on Terrorism • Sept.11th contributed to erasing the line between foreign policy and domestic politics for the US • war on terrorism -- main US foreign policy challenge is defined as homeland security • ensuring homeland security is a project firmly embroiled in domestic politics • Office of Homeland Security • civil liberties • homeland security depends on successful foreign policy • requires maintaining an international coalition (despite having pushed US towards military unilateralism) • avoiding creating new threats in addressing existing threats

17. International Organizations Security -- The United Nations February 5th --2004

18. Managing Interdependence -- The United Nations • establishment • precursor – League of Nations (1919) • established 1945 • primary objective – peace and security • preamble of the UN Charter

19. WE THE PEOPLES OF THE UNITED NATIONS DETERMINED... • to save succeeding generations from the scourge of war, which twice in our lifetime has brought untold sorrow to mankind, and • to reaffirm faith in fundamental human rights, in the dignity and worth of the human person, in the equal rights of men and women and of nations large and small, and • to establish conditions under which justice and respect for the obligations arising from treaties and other sources of international law can be maintained, and • to promote social progress and better standards of life in larger freedom, AND FOR THESE ENDS... • to practice tolerance and live together in peace with one another as good neighbours, and • to unite our strength to maintain international peace and security, and • to ensure, by the acceptance of principles and the institution of methods, that armed force shall not be used, save in the common interest, and • to employ international machinery for the promotion of the economic and social advancement of all peoples, HAVE RESOLVED TO COMBINE OUR EFFORTS TO ACCOMPLISH THESE AIMS.

20. The United Nations – What is It? • Chpt.1, Article 2, 1: The Organization is based on the principle of the sovereign equality of all its Members. • organization of voluntary member countries • "Membership in the United Nations is open to all peace-loving states which accept the obligations of the Charter and, in the judgement of the Organization, are willing and able to carry out these obligations.” • 51 countries in 1945 • including US and Iraq! • 191 countries in 2003 • based on the “sovereign equality” of each of its member

21. The United Nations – Aims and Functions • primary objective – peace and security • recognition of the interrelated nature of various spheres of interdependence • security dependent upon other aspects (rights, social progress, etc.) • multiple areas of focus • security (UN Security Council) • economic development (UN Development Program) • health (World Health Organization) • human rights (Office of the UN High Commissioner for Human Rights) • refugees (Office of the UN High Commissioner for Refugees) • women (UN Development Fund for Women) • children (UN Children’s Fund)

22. The UN and Security • powers and functions (Security Council) • Chpt.5, Article 24, 1: ...its Members confer on the Security Council primary responsibility for the maintenance of international peace and security, and agree that in carrying out its duties under this responsibility the Security Council acts on their behalf. • Chpt.7, Article 43, 1: All Members of the United Nations...undertake to make available to the Security Council, on its call...armed forces...necessary for the purpose of maintaining international peace and security. • main difference with former League of Nations

23. The UN Security Council • organizational structure • 15 members • 5 permanent • US, Great Britain, France, Russia, China • each holds veto power • 10 rotating members elected from UN General Assembly • two year terms • Germany, Guinea, Mexico, Pakistan, Spain, Syria, Angola, Bulgaria, Cameroon, Chile • decisions on substantial matters • requires nine votes • votes of all five permanent nations

24. The United Nations – What is It? • different from “government” • no direct relationship with people of member countries • not directly elected by the people or accountable to them • link between “the people” and the UN in some cases is through non-democratic governments • has no ability to tax or raise revenues • dues on each member country based on country’s share of the world economy • 29% of countries not paying dues in full or on time • largest share (38%) of unpaid dues attributed to US (UN Wepbage) • however, US pays highest dues (22% of UN budget) • has no independent military • no way to independently enforce its decisions

25. The United Nations – What is It? • result? • can only undertake activities that its members agree to and only to the extent that they provide the resources to do so • especially dependent on those that provide the most resources • only wields influence to the degree that membership broadly or individual members of specific importance (e.g. US) accept its legitimacy

26. The UN and the Iraq Situation

27. UN Security Council & the Iraq Situation • challenge for Security Council – avoid irrelevance • balance between... • rubber-stamping US foreign policy goals • obstructing US foreign policy goals (forcing US to act unilaterally) • Resolution 687 (1991) • Iraq shall unconditionally accept removal of weapons of mass destruction, ballistic missiles, and related production facilities • provides for establishment of a system of ongoing monitoring and verification of Iraq’s compliance • Resolution 1441 (November 2002) • finds Iraq in material breach of SC Res687 • provides “final opportunity” to comply with disarmament obligations • Security Council to convene if Iraq fails to comply • warns that Iraq faces “serious consequences”

28. UN Security Council & the Iraq Situation • proposed resolution • US, UK, Spain • “...Iraq has failed to take the final opportunity afforded to it in resolution 1441.” • memorandum opposing use of force • France, Germany, Russia • conditions for using force against Iraq have not been fulfilled • calls for “reinforced inspections”

29. UN Security Council & the Iraq Situation • US, UK and Spain rescind proposed resolution on March 17th • Why? • would not pass • France vows to veto • also unclear if support sufficient to pass even in absence of French veto • if the resolution is defeated, use of force would be clearly contrary to the wishes of UN Security Council • US argues that use of force legal under Resolution 687 • 48 hour warning issued Monday, March 17th • first missiles launched March 19th

30. The UN Charter and the Iraq Situation • Chpt.1, Article 2, 4: All Members shall refrain in their international relations from the threat or use of force against the territorial integrity or political independence of any state... • Chpt.5, Article 25: The Members of the United Nations agree to accept and carry out the decisions of the Security Council in accordance with the present Charter. • Chpt.7, Article 39: The Security Council shall determine the existence of any threat to the peace, breach of the peace, or act of aggression and shall make recommendations, or decide what measures shall be taken...to maintain or restore international peace and security. • Article 51: Nothing in the present Charter shall impair the inherent right of individual or collective self-defence if an armed attack occurs against a Member of the United Nations...

31. UN Security Council & the Iraq Situation • implications for UN Security Council • US clearly signaled its belief that the Security Council has failed its responsibility • challenge for Security Council – avoid irrelevance • balance between... • rubber-stamping US foreign policy goals • obstructing US foreign policy goals (forcing US to act unilaterally) • UN Security Council will be irrelevant to future US military action unless reformed

32. UN Security Council Members (Freedom House Freedom Rating) • Angola – Not Free (6/5) • Bulgaria – Free (1/2) • Cameroon – Not Free (6/6) • Chile – Free (2/1) • China – Not Free (7/6) • France – Free (1/1) • Germany – Free (1/1) • Guinea – Not Free (6/5) • Mexico – Free (2/2) • Pakistan – Not Free (6/5) • Russia – Partly Free (5/5) • Spain – Free (1/1) • Syria – Not Free (7/7) • among top 9 worst rated countries in the world • UK – Free (1/1) • US – Free (1/1)