GLOBALIZATION

1
GLOBALIZATION

• MADE IN AMERICA?
• THREATENED BY AMERICA?

2
CREATING A NEW WORLD ORDER

• CAPITALISM
• MULTINATIONAL CORPORATIONS (MNCs)
• MARKETING AND ADVERTISING
• DEMOCRACY (American style?)
• CONSUMERISM

3
U.S.-style CAPITALISM

• Capitalism generally refers to an economic system
  in which the means of production are mostly
  privately owned and operated for profit, and in
  which the distribution, production and pricing of
  goods and services are determined in a largely
  free market.
• Capitalism is a social system based on the
  principle of individual rights.

4
CIRCULATION OF CAPITAL

• Who controlled capital?

5
CIRCULATION OF CAPITAL

• Who controlled capital?
• Who could lend money for interest?

6
CIRCULATION OF CAPITAL

• Who controlled capital?
• Who could lend money for interest?
• What political limitations existed on capital
  circulation and accumulation?

7
CIRCULATION OF CAPITAL

• Who controlled capital?
• Who could lend money for interest?
• What political limitations existed on capital
  circulation and accumulation?
• Why did the Protestants develop capitalism more
  successfully than the Catholics in Europe?
• (anti-market sentiments of medieval culture)

8
CORPORATIONS

• Early corporations of the commercial sort were
  formed under frameworks set up by governments of
  states to undertake tasks which appeared too
  risky or too expensive for individuals or
  governments to embark upon (Dutch East India
  Company, e.g.)

9
CORPORATIONS

• Eventually, American state governments began to
  realize the greater corporate registration
  revenues available by providing more permissive
  corporate laws.
• Delaware pioneered corporate law (early 20th C.).

10
MARKETING AND ADVERTISING

• Rise of media
• Promotion of product or identity
• Sociology of consumerism

11
U.S.-style DEMOCRACY

• Direct Democracy
• - sovereignty is lodged in the assembly of
  all citizens who choose to participate

Countries highlighted in blue are designated
"Electoral Democracies" in Freedom House's 2006
survey Freedom in the World.
12
DEMOCRACY AND GLOBALIZATION

• Free people free markets
• Individualism creates capitalistic opportunities
• States choosing democracy are more liable to
  embrace US-style capitalism
• increasing transactions across the border of
  nation-states are eroding the efficiency of
  national governing structures, especially
  democratic ones.

13

• the nation-state system, democratic politics,
  and full economic integration are mutually
  incompatible. Of the three, at most two can be
  had together.

14
POLITICAL STRUCTURE OF THE NEW WORLD ORDER

• Bretton Woods (July 1944)
• World Bank
• IMF
• ? United Nations (April 1945, based on
• Atlantic Charter)
• ? Cold War (1946 1989/1991)

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U.S. and GLOBALIZATION

• 1945 - The U.S. held a majority of investment
  capital, manufacturing production and exports. It
  produced half the world's coal, two-thirds of the
  oil, and more than half of the electricity. The
  U.S. was able to produce great quantities of
  machinery, including ships, airplanes, vehicles,
  armaments, machine tools, and chemicals.
  Reinforcing the initial advantageand assuring
  the U.S. unmistakable leadership in the
  capitalist worldthe U.S. held 80 of gold
  reserves and had not only a powerful army but
  also the atomic bomb.

16
WILSONS 14 POINTS (1918)

• (III) The removal, so far as possible, of all
  economic barriers and the establishment of an
  equality of trade conditions among all the
  nations consenting to the peace and associating
  themselves for its maintenance.

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WILSONS 14 POINTS (1918)

• (XII) . other nationalities which are now under
  Turkish rule i.e., Kurds, Arab peoples,
  Armenians, and some Greeks should be assured an
  undoubted security of life and an absolutely
  unmolested opportunity of autonomous development.
  
• "the free self - determination of nations upon
  which all the modern world insists."

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SELF-DETERMINATION

• The principle of self - determination , according
  to Lippmann (1944), is "simply un-American." The
  American ideal, he explained, was "a state within
  which diverse peoples find justice and liberty,
  under equal laws and become a commonwealth."

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THE ATLANTIC CHARTER (1941)

• First, the US and the UK seek no aggrandizement,
  territorial or other

http//usinfo.state.gov/usa/infousa/facts/democrac
/53.htm
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THE ATLANTIC CHARTER (1941)

• ? Second, they desire to see no territorial
  changes that do not accord with the freely
  expressed wishes of the peoples concerned

21
THE ATLANTIC CHARTER (1941)

• Third, they respect the right of all peoples to
  choose the form of government under which they
  will live and they wish to see sovereign rights
  and self government restored to those who have
  been forcibly deprived of them

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THE ATLANTIC CHARTER (1941)

• Fourth, they will endeavor, with due respect for
  their existing obligations, to further the
  enjoyment by all States, great or small, victor
  or vanquished, of access, on equal terms, to the
  trade and to the raw materials of the world which
  are needed for their economic prosperity

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THE ATLANTIC CHARTER (1941)

• Fifth, they desire to bring about the fullest
  collaboration between all nations in the economic
  field with the object of securing, for all,
  improved labor standards, economic advancement
  and social security

24
THE ATLANTIC CHARTER (1941)

• Sixth, . they hope to see established a peace
  which will afford to all nations the means of
  dwelling in safety within their own boundaries,
  and which will afford assurance that all the
  people in all the lands may live out their
  lives in freedom from fear and want

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THE ATLANTIC CHARTER (1941)

• Seventh, such a peace should enable all people
  to traverse the high seas and oceans without
  hindrance

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THE ATLANTIC CHARTER (1941)

• Eighth, they believe that all of the nations of
  the world, for realistic as well as spiritual
  reasons must come to the abandonment of the use
  of force.
• Since no future peace can be maintained if
  land, sea or air armaments continue to be
  employed by nations which threaten, or may
  threaten, aggression outside of their frontiers,
  they believe, pending the establishment of a
  wider and permanent system of general security,
  that the disarmament of such nations is
  essential.
• They will likewise aid and encourage all
  other practicable measures which will lighten for
  peace-loving peoples the crushing burden of
  armaments.

27
The U.S. and Globalization21st Century Challenges

• After 1989/91 no framework for the New World
  Order
• Had the U.S. lost control of the globalization
  process?
• What does the worlds only military superpower do
  with that power?