Think Globally, Act
Locally
People Before Profit
Chpt. 1-4
Intro:
Referring to
the collapse of the
“[A] democratic cure for the ills of globalization is the most important challenge in the world today” (8).
Power in the globalized world
Often spoken about a given, a natural, inevitable progression with no one in charge.
He will dispute this in the book arguing that indeed transnational corporations and governments are in charge AND that
Globalization “ rather than eliminating human power, is concentrating it on a grander scale that did any revolution in history….creating the possibility of new forms of worldwide collective and democratic power by globally linked citizens” (9)
Rallying cry of this revolution: “No globalization without representation” (9)
Chpt. 1 Globalization’s Ghosts
Two earlier forms of globalization:
Colonialism
Especially the 18th and 19th Century British experience
The Gilded Age
Late 19th Century American industrial explosion
These along with
globalization are truly world systems
i.e., global in scope, premised upon tearing up the old orders that preceded them, reinstating new economic, political and cultural systems in their places
Symbol/embodiment of Colonialism
Cecil Rhodes
Deeply believed in the “white man’s burden” as articulated by Rudyard Kipling
Europeans as the superior race, a civilizing influence on the world
A people whose duty it was to improve the lives of the less developed peoples of the world
His
pet project:
Symbol/embodiment of the Gilded Age
JD Rockefeller
One of the robber barons
Presided over an industrial empire of textile factory, steel factories, railroads
Technology/means
Of colonialism: the ship
Of the Gilded Age: the railroad
Of globalization: the internet, computers
Chapter Three
The Gilded Age
Entailed institutionalizing new rules of the economic game
New interpretation of the constitution, commerce clause
Federal Supremacy
Federalization
of the
Globalization challenge, therefore, the institutionalization of the global economy
Creation of
institutions, structures that mediate the flows
of bus
What instititutions do this for the global economy so far?
1) global financial markets and transnational corporations
2) national governments
3) “global governments” WTO, IMF, World Bank
Together these operate as a system
A system Derber calls
Global Corpocracy
Why?
Is this a fair assessment of how global economy is managed?
How is the global corpocracy of today different from the relationship between corporations and governments in earlier eras?
What’s changed?
One dollar, one vote
Is this the system we have today? How do we know?
How do we move from this system to one person, one vote?
Chapter 4: The American Umpire
How is globalization perceived by the developing world?
Why?
Define Neo-colonialism
How is globalization similar to colonialism?
How is it different? (see 92-92 on umpire vs. empire systems)
1. Colonies vs. nation-states
2. Direct administration of colonies vs. “aura of world constitutionalism”
3. balance of power, relationship between corporations and states
Popeye economics (84)
Globalization like spinach to be gobbled down by poor countries in order to make them rich (and powerful)
Spinach = financial capital, foreign direct investment (FDI)
Creating new jobs and development in former colonies
Has it?
Criticizes Friedman here – shows virtually no data about growth in developing world
World Back data
Worldwide growth shrank from 3% in 1980s to 2% in 1990s
(explain, think about this)
Center for Economic and Policy Research report
“The Emperor Has No Growth” (86-87)
growth rates and standards of living fell, esp. in developing world
1960-1980
per capita growth in all countries grew 83%
1980-2000
grew 33%
What does this mean? How should we interpret these data?
1960-1980
grew 75%
1980-1998
6 percent
sub-Saharan
1960 – 1980
36% growth
1980-1998
shrank by 15% why?
Growth really
concentrated in the Asian Tigers, i.e.,
More recently,
Gap between rich and poor countries diverging
It tripled between 1960 and 1995
In 1960, per capital income in the 20 richest countries was 18 times that of the 20 poorest countries
In 1995, it was 37 times
How do proponents of globalization explain the persistent (if not growing) wealth gap between rich and poor countries?
How does Derber explain it? In other words, why aren’t more poor countries benefiting from globalization? (see 89)
Why are countries like
the Asian Tigers,
US as global umpire
Two contradictory goals
Building the global economic system, institutionalizing it
And
Building the power of
the
Why are these contradictory?
Do you see the tension between these two goals?