TCW Topic 2 Week 2.

Topic: The Global Economy

Slides

Objectives

1. defined economic globalization;

2. identified the actors that facilitate economic globalization;
3. defined the modern world system;
4. articulated a stance on global economic integration; and

1 Hi! In the previous session we have discussed the definition of globalization, its
dimensions and arguments.
Since you have been given the idea that globalization has its dimensions
namely, economic, political and cultural. For this topic we will expound the
idea of globalization as an economic process.

With this said, we can now infer that we will also be expounding the discussion
of globalization with the remaining two dimensions which are the political and
cultural process.

These discussions will be supported by different concepts, theories, theorists and

application to the different contexts of the contemporary world.

2 Now, here is the topic outline:

 Definition of Economic Globalization

 Indicators and manifestations of Economic globalization
 Actors that facilitate economic globalization
 Theories of Economic Globalization
 Crises of Global capitalism

The discussion for this topic is divided into two video lectures. The first three
topics will be discussed in this session and the remaining will be discussed in the
succeeding video.
3
Definition of the Economic Globalization

In our previous discussion, we have defined economic globalization as a

dimension that derives partly from its historical development. Evolution of
international markets and corporations led to an intensified form of global
interdependence.

To further elaborate this definition we will determine and define each of its
indicators and manifestation
The indicators and manifestations of Economic globalization

• General analysis on globalization of the economy

• International Trade and Development
• Multilateral agreement on investment and related initiatives
• Transnational Corporations

The indicators and manifestations of Economic globalization

• Foreign Direct Investment

• World Trade Organization
• World Bank
• International Monetary Fund
• Global Taxes

The indicators and manifestations of Economic globalization

General analysis on globalization of the economy

Represents the manifestation of international trade, financial transfers, and

foreign direct investment, the increasing internationally interconnected
economy.

International Trade and Development

Trade agreements like FTAA, NAFTA, CAFTA facilitate international trade,

thereby strongly impacting people at all levels of the economy. They make
trade free for Northern exports without prohibiting the rich countries
protectionist measure that harm southern competitors. Such agreements tend
to slow development in poor countries and pull them deeper into poverty.

Multilateral agreement on investment and related initiatives

MAI is an agreement or treaty given with the terms and conditions discussed
and undertaken by three or more sovereign parties namely the participating
nations or private entities
Transnational Corporations

Transnational corporations have become some of the largest economic

entities in the world, surpassing many states. Their continuous push for
liberalization has driven globalization while challenging environmental, health,
and labor standards in many countries.

Foreign Direct Investment

An investment to a business in a given nation state in the form of controlling its

ownership. Foreign direct investment has increased tenfold over the last
decades. While many poor countries see foreign capital as a tool for growth, it
has often increased instability and inequality as well.

World Trade Organization

The intergovernmental organization sets and enforces the rules of international

trade between the nations and states. This intergovernmental organization has
become a target of civil society’s criticism over its solid, undemocratic
operating procedures and neo-liberal ideology.

World Bank

Its function is to eradicate poverty by loaning poor countries money for

economic development, but these loans often come with demands of
economic liberalization.

International Monetary Fund

IMF is also an intergovernmental organization that envisions as a lender of last

resort for countries experiencing economic crises. Aims to facilitate
international trades, assist global monetary cooperation and reduce the
poverty to the borrowing nation.

Global Taxes
To implement global taxes the need for democratic oversight and control, the
policy shaping effects, distributive effects, and the possible use of such taxes to
fund the UN, its agencies and other programs for worldwide human security
and development.

Those are the manifestations and indicators of economic globalization. Now,

we will discuss the its actors that influences the world economy

How do we define actors of economic globalization? In simpler thought, these

are the entities that influences the global economic process. In general
context, they can be classified as Public or private organization, Economic
forums and regulatory system either established by governmental or business
entities.

Most of these entities are represented by different corporations and nation

leaders. Common to these groups are the development of efficient market
transactions that contributes to international economic growth.
The groups and forums are

 International Chamber of Commerce

 Bilderberg Group
 Trilateral Commissions
 World economic Forum
 World Business Council for Sustainable Development

International Chamber of Commerce

 historically functioned as the most comprehensive business forum

committed to liberalization
 refers to itself as the World business association
 ICC institutionalize an international business perspective by providing a
forum where capitalist a deregulated professionals can assemble and
forge a common international policy framework in arenas ranging from
investment to specific technical and sectoral subjects. Some of the
related IOs are WTO, G20 summit and OECD - Organization for
economic Cooperation and Development
Bilderberg Group

 The group provided a context for more comprehensive international

capitalist coordination and Planning.
 Assembled in the spirit of corporate liberalism, representatives of Right and
Left, capital and organized labor.
 Conferences furnished a confidential platform for corporate, political,
intellectual, military and even trade-union elites from the North-Atlantic
heartland for mutual understanding. Some of the related IOs are CFR
(council on foreign relations), IMF, World Bank, Trilateral Commission, EU and
NAFTA (North American Free Trade Agreement).

Trilateral Commission
 Its goal is to foster effective collaborative leadership in the international
system and closer cooperation among the core capitalist regions of
Northern Europe, North America and Japan – the triad.
 Institutionalize elite economic, political and intellectual/cultural bonds
between the North-Atlantic heartland and the Asia-Pacific and to
expand the regulatory sphere of capitalist discipline to incorporate
metropolitan labor and peripheral states. Some of the related IOs are
CFR (council on Foreign Relations), Bilderberg Group, G7 summit and G8
summit.
World Economic Forum
 Meetings were intended to secure the patronage of the Commission of
the European Communities, as well as the encouragement of Europe’s
Industry associations.
 Moves to establish global initiatives that distinguish it as the most
paradigmatic example of neo-liberal structionalism
 Described as the most comprehensive transnational planning body and
a quintessential example of a truly global network binding together the
Transnational Capitalist class (TCC) in a transnational Civil Society. Its
related IOs are World Bank, IMF and GATT
World Business Council for Sustainable Development (1995)
 Characterized in neo-liberal regulationist typology.
 Formed in a merger of the Geneva-based Business Council for
Sustainable Development and the Paris-based World Industry Council for
the Environment (ICC branch).
 A child of UN’s Conference on Environment and Development (UNCED)
1992 Rio Earth Summit
 Global policy is anchored on its efforts to surpass the prevailing dualism
of business versus the environment by forwarding a more
 comprehensive vision of capitalist social and moral progress, anchored
by its central axiom of eco-efficiency. Related IOs are UNEP(UN
Environmental Program), UNCTAD (UN conference on Trade and
Development), UNCED and (UN conference on Environment and
development)

Now we have covered the discussion of globalization as an economic process

through its definition, indicators and manifestations and its actors.

Through the presented topics we were able to define the economic process
and recognize its applications through the existent of its indicators.

With the actors that facilitates the economic globalization, we were able to
determine the existing international organization participated by public and
private entities and identified their functions, related international organizations
and their influences to the global economic process that connects the
international market transactions.

For the next session, we will be discussing the continuation of this topics which
includes theories and crises of economic globalization. Thank you and see you
next session