Globalisation and Internationalism

1
Globalisation and Internationalism

• Revision

2
Globalisation

• Globalisation is the increase in movement between
  countries of trade, money, people and
  communication.
• Key organisations IMF, WTO, World Bank

3
Internationalism

• Involves people working together beyond national
  boundaries based on the notion of common humanity
  to solve collective problems.
• Key Organisations U.N., N.G.Os

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Free Trade/ Trade Liberalisation

• The reduction of barriers such as
• tarriffs a tax put on imports
• quotas limits put on imports
• subisidies money given to producers
• Aims to increase trade amongst countries

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Neo-liberalism

• An economic theory or political ideology that
  favours free trade, privitization, cuts to the
  public service and reducing capital controls
  between countries.
• Also known as the Washington consensus these
  policies are promoted by the IMF, World Bank and
  WTO.

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Structural Adjustment Program

• The list of budgetary and policy changes required
  by the IMF and World Bank in order for a
  developing country to qualify for a loan. SAPs
  promote free trade and neo-liberal policies.

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Multinational Corporation

• Companies that operate in more than one country
• . Multi-nationals have increased greatly in size
  and profitability due to globalisation.

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WORLD BANK

• A body that exists to provide loans to developing
  countries for development projects related to
  water supply, sanitation, education, health,
  infrastructure and the environment.
• It was set up at the Bretton Woods conference in
  1944

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World Bank Positives

• Every year the Bank lends billions to help
  poor countries. These projects have helped
  millions of people over the last 60 years
• For example in 2003 the World Bank provided
  US18.5 billion dollars in loans to developing
  countries for projects
• Click on link below to read about a World Bank
  Project from their website
• http//web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES
  /LACEXT/VENEZUELAEXTN/0,,contentMDK20214805menuP
  K451395pagePK141137piPK217854theSitePK33176
  7,00.html
• A recent poll showed that most people in the
  world see the World Bank as positive,
  particularly in developing countries who have
  received loans
• http//www.worldpublicopinion.org/pipa/articles/bt
  globalizationtradera/162.php?nididpnt162lbb
  tgl

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World Bank Negatives

• Criticisms of the World Bank include
• SUPPORT DAMAGING PROJECTS
• They focus too much on large infrastracture
  projects that damage the environment and people.
  Eg Large dams or deforestation
• http//www.whirledbank.org/environment/dams.html
  (support for dams)
• http//www.alternet.org/environment/74031/?pageen
  tire (deforestation of the amazon)
• FORCES FREE MARKET POLICIES ON POOR COUNTRIES
• The Bank forces countries to adopt free market
  policies such as privitization, public sector
  cuts and trade liberalization through putting
  conditions on its loans. To get loans the
  countries sometimes have to agree to Structural
  Adjustment Programs before they get the loans.
• http//www.chebucto.ns.ca/Current/P7/bwi/cccsap.ht
  ml

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WORLD BANK IS DOMINATED BY A FEW RICH COUNTRIES

• Decisions at the World Bank and IMF are made by a
  vote of the Board of Executive Directors, which
  represents member countries. But unlike the
  United Nations, where each member nation has an
  equal vote, voting power at the World Bank and
  IMF is determined by the level of a nation's
  financial contribution. This is why the United
  States, the world's largest economy, has roughly
  20 percent of the vote, with the Group of Seven
  holding a total of 45 percent. The U.S.A. has
  said it will not allow its voting power to go
  below 15 which gives it veto power over any
  decisions.

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THE IMF

• The IMF was also founded at the Bretton Woods
  conference in 1944.
• It aims to stabilise and grow the world economy
  and promote trade.
• It makes loans to countries who are experiencing
  financial difficulties.
• For example if they have a Balance of Payment
  problems (they owe more money to other countries
  than they can repay).
• In order to get the loans the countries usually
  have to agree to conditions called Structural
  Adjustment Programs
• The IMF also monitors and gives assessment on
  countries economies giving them advice

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IMF Positives

• The IMF has played a valuable role in helping
  nations in times of crisis through giving them
  both loans and economic advice. It helps
  countries restructure their economies to make
  them more productive and internationally
  competitive.
• 185 countries have joined the IMF up from the
  original 45 countries showing countries want the
  IMFs help.
• Visit the link below to read the IMF explain its
  positive role
• http//www.imf.org/external/np/exr/center/action/e
  ng/index.htm

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IMF Negative

• The IMF has been critisized for imposing free
  market reforms such as privitization, public
  sector cuts and cuts in tarriffs, quotas and
  subsidies on poor countries through it advice and
  Structural Adjustment Programs.
• Examples of countries where the IMF programs have
  been significantly critisized include
• Bolivia (see The Corporation and textbook p 26)
• Argentina ( see The Take)
• Jamacia ( see Life and Debt)
• Indonesia after the 1997 Financial crisis see
  textbook p 24 and http//en.wikipedia.org/wiki/199
  7_Asian_Financial_Crisis

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World Trade Organization

• Unlike the IMF and the World Bank the WTO was
  only formed in 1995, however it arose out of an
  earlier organisation (GATT) which did have its
  origins at Bretton Woods.
• The World Bank exists to promote Free Trade, make
  the rules covering trade and settle trade
  disputes between countries.
• It has 148 Member countries.
• Also unlike the World Bank and IMF major
  decisions are made by consensus at the WTO.
• The last round of WTO trade negotiations were
  called the Doha round and began in 2001 in the
  city of Doha.
• The WTO can enforce its rules through trade
  sanctions.

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WTO Positive

• The WTO helps prosperity all over the world by
  liberalizing and therefore increasing trade.
• It provides certainty for companies and countries
  by laying down the rules for international trade
• It allows for fairness in the trade system by
  allowing an independent umpire to decide on trade
  disputes
• developing have started to stand up to the
  developed countries in the recent round

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WTO Negative

• The WTO undermines laws that protect the
  environment and labour rights because it does not
  allow any barriers to trade.
• For example the U.S. had to remove a law that
  said that Tuna imports had to be from countries
  that used dolphin friendly nets.
• http//www.citizen.org/trade/wto/ENVIRONMENT/
• Rich countries use the WTO trade negotiations to
  protect their own interests and enforce trade
  polices on poor countries that they wont
  implement themselves
• ie the U.S and the E.U. give massive subsidies to
  their agriculture sectors whilst expecting other
  countries to remove their protective policies
• Some believe that promoting Free Trade only
  serves to widen the gap between the rich and the
  poor
• Multinational Corporations have too much
  influence at the WTO
• The WTO is not a transparent open organisation
• The WTO undermines the sovereignty of governments
  by restricting the rules they can make