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What is global economic governance?
It consists of rules, processes and regulations either political or private, that support global economic activity and economic transactions by protecting property rights, enforcing contracts etc, to bring about stability and predictability. In other words, it is about the rule of the games in the global economy relating to all kinds of global economic transactions.
Why is it difficult to establish international rules? 3
Sovereignity: for global trade to work rules or ideally to be made governing the ownership of commodities and investments, standard tariffs on the one hand, but states want to maintain power over their own economies to a certain degree
Opposing interests: States may have opposing views and interest on how to regulate the global economy so there are different economic needs
Power and geopolitics: Such a global framework can be created through cooperation but has been purely powered based as well. Even cooperative assistance can be unbalanced and represent some interest more than others.
What are the four types of global economic governance?
Intergovernmental international organisations (IOs): They are created by participating states. These organisations manage specific areas of a global corporation. Their power depends on the degree of authority transferred by member states and their level of autonomy.
Supranational organizations: These are a subset of intergovernmental organisations with substantial autonomy and the ability to create binding rules for the members. Ex. EU
Traditional intergovernmental organisations: These focus on multilateral agreements with decisions made by state and implemented voluntarily. Ex. United nations and world trade organisation, International Monetary Fund
Non-permanent economic organisations:Informal groups without the permanent bureaucratic structure often powerful despite their lack of formation. Ex. G7 and G20
What are the three reasons to create international organisations?
What was Giovanni Arrighi's theory about hegemons?
Giovanni Arrighi theorized that historical hegemonic power transitions occur through cycles of capital accumulation. He posited that dominant states pursue strategies to establish global economic control, which typically results in conflicts with emerging powers. This cycle involves a phase of capital accumulation, where established hegemons leverage their economic power to influence global markets, followed by a period of decline as new emerging powers rise. This process highlights the dynamic nature of global capitalism and the inherent conflicts that arise during power transitions.
What did Britain do as the hegemon in the 19th century?
London as capital
Case of Ottoman Empire (Anglo-Turkish convention)
Public debt commissions
Gold standard
Explain three experiments in international cooperation back in the day lol
Intellectual property rights: Paris convention (1883) was the first major international agreement on intellectual property, covering n patents trademarks, industrial designs and geopolitical origins. It was done because low patent protection discouraged innovation sharing and commerce. Each member state was. Now supposed to protect foreign investors rights.
The League of Nations: Established after WW2 to prevent future wars and address economic recovery. They did however lack enforcement power and US didn’t even join.
International cartels and economic governance: Associations of producers/traders from multiple countries aiming to regulate competition and control market. There was production cartels (limit production to stabilize prices) and Sales cartels (divide sales areas among members). Ex. International Tin council.
What was the United Nations? What purpose did it serve?
The United Nations (UN) is an intergovernmental organization founded in 1945 following World War II, with the primary aim of promoting international cooperation, maintaining global peace and security, and fostering friendly relations among nations. The UN's key purposes include addressing global challenges such as conflict prevention, humanitarian emergencies, human rights advocacy, and sustainable development. It provides a platform for dialogue and negotiation among its 193 member states, assisting in conflict resolution and implementing international standards. Major bodies of the UN include the General Assembly, the Security Council, the International Court of Justice, and various specialized agencies. What was the United Nations Conference on Trade and Development (UNCTAD)? - UNCTAD, established in 1964, is a permanent intergovernmental body that aims to support developing countries in their efforts to integrate into the global economy. It focuses on trade, investment, and development policies, providing research, policy analysis, and technical assistance to help develop sustainable trade practices. Its activities include convening conferences, providing a forum for discussions, and offering resources for developing nations to enhance their economic growth and engagement in global markets.
What were the Bretton Woods agreements and IFTIs?
The Bretton Woods agreements, established in 1944, created a new international monetary system with fixed exchange rates and established key institutions such as the International Monetary Fund (IMF) and the World Bank. IFTIs (International Financial Transactions Institutions) refer to entities that govern international financial transactions and promote stability in the global economy.
What was GATT?
GATT, the General Agreement on Tariffs and Trade, was a multilateral agreement established in 1947 aimed at promoting international trade by reducing trade barriers such as tariffs and quotas. It laid the foundation for the World Trade Organization (WTO) established in 1995.
What is multilateralism?
Multilateralism is the practice of involving multiple countries in a coordinated approach to addressing global issues, fostering cooperation on matters such as trade, security, and environmental challenges, through international organizations and agreements.
What was the international center for settlement of investment disputes?
The International Center for Settlement of Investment Disputes (ICSID) is an institution that was established to provide facilities for conciliation and arbitration of investment disputes between investors and states. It aims to promote international investment by providing a neutral ground for resolving disputes.
When the USS pressure Europe to integrate after WW2?
To ensure the effect of Marshall plan aid, preventing protectionism, trade wars and rivalry that could hinder economic reconstruction.
What was the Treaty of Rome in 1957?
The Treaty of Rome, signed in 1957, established the European Economic Community (EEC) and laid the foundation for the integration of European economies through the creation of a common market and customs union among its member states.
Why was the European Union founded?
The European Union was founded to foster economic cooperation and prevent future conflicts in Europe after World War II. It aimed to create a more integrated and stable economic environment, promote peace, and encourage political collaboration among its member states.
What is the North American Free Trade Agreement (NAFTA)?
NAFTA is a trade agreement implemented in 1994 between the United States, Canada, and Mexico, aimed at eliminating trade barriers and promoting economic cooperation among the three countries.
What is the Association of Southeast Asian Nations (ASEAN)?
ASEAN is a regional intergovernmental organization comprising ten Southeast Asian countries, founded in 1967 to promote political and economic cooperation, regional stability, and cultural exchange among its member states.
