Intro to Globalization Midterm

Capitalism

An economic system where private capital or wealth is used in the production or distribution of goods, and prices are determined mainly in a free market. It relies on waged and/or coerced labor and widespread competition for profits.

Early Globalization (1450-1914/1945)

A historical period characterized by the development of capitalism and European colonialism/imperialism.

Imperialism

The extension of the power of one state beyond its borders to control other peoples, places, and cultures.

Colonialism

One form of imperialism that involves formal control over one territory and its people by another state.

Industrial Revolution

The economic change whose reliance on industrial inputs and capitalist expansion drove the search for new markets and resources during imperialism.

Methodological nationalism

A conceptual approach that takes the nation-state as the natural, unquestioned unit of analysis, which tends to obscure the effects of capitalism and imperialism.

Relational analysis

An approach that focuses on the relationships and interconnections between places (e.g., how the wealth of some places depends on the poverty of others) to explain global patterns.

"West and the Rest"

An influential discourse (a set of shared ideas, concepts, and beliefs) that helped produce imperial domination and racialized social and labor hierarchies.

Discourse/discursive practice

A discourse is a set of shared ideas, concepts, and beliefs. Discursive practices are the use of language or statements that perform a function, such as creating distinctions.

Globalization (little g)

The process of increasing, but uneven, interconnection and interdependence globally.

"G'lobalization"

An influential political discourse intended to describe and produce a particular form of global interdependence, characterized by "neoliberal" economic and political views.

Liberal International Economic Order (LIEO)

Also known as the "rules-based order." An international set of rules, norms, and institutions based on a commitment to Political liberalism, Economic liberalism, and Liberal internationalism.

Key Phases of the LIEO

Embedded liberalism/developmentalism (1945-1971) and Neoliberalism (1970s-2010s?).

Neoliberalism

The dominant ideology of the LIEO (starting in the 1970s) characterized by policies like privatization, deregulation, cuts to public spending, and trade/financial liberalization.

Washington Consensus

A set of neoliberal policies strongly associated with "G'lobalization Policies" pushed by the IMF, World Bank, and US Treasury.

"The World is Flat"

A view (associated with Thomas Friedman) that technology is "leveling the playing field" and connecting the world into a single global network, leading to prosperity and innovation.

World Trade Organization (WTO)

The successor to the GATT, it functions to bring states together to cooperate in lowering tariffs and other trade barriers.

Tariffs

Taxes or fees on imports or exports.

Non-tariff barriers (NTBs)

Any other policies that might affect trade, such as labeling/origin requirements, consumer protection laws, environmental regulations, or subsidies.

International Monetary Fund (IMF)

One of the two most powerful development institutions, still largely governed by neoliberal policy beliefs.

World Bank

One of the two most powerful development institutions, still largely governed by neoliberal policy beliefs.

Structural adjustment programs (SAPs)

Neoliberal economic policies for developing nations embraced by the IMF and World Bank, typically involving devaluing currency, cutting subsidies/public spending, and liberalizing trade.

"Uneven development"

A process where (global) capitalism/markets use and reproduce differences between people and places (e.g., in wages, regulations) to ensure profit.

Global commodity chains (GCCs)

Complex, multi-stage production networks that are truly global in scope, often reproducing differences between places.

International (spatial) division of labor / NIDL

The concept that stages of economic production are distributed across space (offshoring/outsourcing), with specialization often organized by the type of laborer (nationality, class, race, gender).

Offshoring/outsourcing

The process where multinational corporations (MNCs) move production overseas (offshoring) and outsource to local producers, driven by the search for cheap labor.

Special economic zones (SEZs)

Areas created by countries competing to attract multinational corporations by deliberately keeping wages, taxes, and regulations low.

Differential mobility

A key dynamic that increases uneven development, where it is easier for goods and money than for people to cross borders.

Migration: relational explanations

The argument that migration is fueled by uneven development, as the global economy and employers profit from differences in people and places (e.g., wage levels, legal status).

NAFTA

The North American Free Trade Agreement, a trade policy that made it easier for capital to cross the US/Mexico border than for workers.

Maquiladora

A term referring to assembly plants in Mexico that became numerous following the passing of NAFTA.

"State-capitalist geopolitics"

A potential new phase of the LIEO/global order, following the period of Neoliberalism.

Classic Age of Empire

A historical period, specifically 1885 - 1914(/1945), characterized by the intense extension of European and US imperial power, often involving the search for resources (like rubber, oil, and copper) to fuel the Industrial Revolution.

Age of informal empire

A form of imperialism where control is exerted primarily through economic and political influence rather than formal military occupation or complete governmental control (i.e., without formal colonialism).

Scramble for Africa

The rapid process during the 2nd Age of Empire where European powers divided up the African continent to secure resources and territory, driven by capitalist expansion and the need for industrial inputs.

Blank slate v. historical analysis

The contrast between the harmful idea that post-colonial countries are a "blank slate" (meaning their struggles are due only to internal or recent factors) and the necessary historical analysis that recognizes the lasting impact of imperialism (e.g., in creating uneven economic integration, political conflicts, and demographic patterns).

Imperial legacies (economic, demographic, political, etc.)

The long-term, lasting effects of capitalism and imperialism that shaped the contemporary world. Examples include: Global but very unequal economic integration, Demographic and migration patterns, National borders and political conflicts, Uneven environmental effects, and Race and racism.

Political liberalism

A core commitment of the Liberal International Economic Order (LIEO), referring to ideals like Western-style democracy and the protection of human rights.

Economic liberalism

A core commitment of the LIEO, referring to the promotion of free trade and open markets.

Liberal internationalism

A core commitment of the LIEO, referring to the respect for international law, treaties, and institutions to govern global affairs.

United Nations (UN)

A key international institution established after WWII, meant to uphold the rules of the LIEO and facilitate Liberal internationalism through collective security and international cooperation.

UN Security Council

The most powerful body within the UN, responsible for maintaining international peace and security.

UN General Assembly

The main deliberative body of the UN, where all member nations have a voice.

US hegemony

Refers to the dominant global position of the United States in the post-WWII era, acting as a crucial "pillar" or enforcer of the LIEO's rules, often through promoting its economic and political interests.

Embedded liberalism

The first phase of the LIEO (1945-1971), characterized by a compromise between free markets (economic liberalism) and domestic welfare policies (allowing states to manage their economies and protect workers).

New International Economic Order (NIEO)

An alternative model of globalization proposed by developing nations in the 1970s, which called for a reform of the LIEO to include "fair trade" (rather than pure "free trade"), global labor/environmental standards, and stronger international institutions to address historical economic inequalities.

"Myth of the free market"

A concept associated with economist Ha-Joon Chang (mentioned in the slides), arguing that no truly free market exists, as all markets are shaped by political decisions, rules, subsidies, and regulations.

Poverty v. inequality

Poverty is an absolute measure (lacking a basic minimum standard of living), while Inequality is a relative measure (differences between people's or places' incomes/wealth). Development plans, often guided by the IMF/World Bank, aim to reduce both.

Poverty (various explanations for)

The slides suggest that the explanation for the causes of poverty dictates how it is addressed. The neoliberal explanation (favored by IMF/World Bank) led to Structural Adjustment Programs (SAPs), which were intended to fix internal economic problems but often worsened poverty by cutting public spending and liberalizing trade.

Migration (key trends)

Key characteristics of modern migration include its relationship to uneven development and the simultaneous processes of trade liberalization and increasing border walls/securitization globally (especially since 1989 and 2001).

Migrant classifications

The different categories of people moving across borders, such as labor migrants (workers moving for jobs) and those seeking resettlement/refugee status.

Migration: push/pull v. relational explanations

A contrast between the simpler push/pull model (which focuses on individual factors) and the relational explanation, which argues that migration is fueled by uneven development, where the global economy and employers profit from differences in people and places (e.g., wage levels and legal status).

"Prevention through deterrence"

A specific US border policy (discussed in the context of the US/Mexico border) designed to funnel migrants into dangerous, remote areas rather than actively blocking them, making the journey difficult and discouraging them from attempting to cross.

Challenges to LIEO

The various factors contributing to the order's erosion, including growing geopolitical conflict, the rise of the BRICs, the 2008 financial crisis, growing protectionism, and the disregard for international institutions by major powers.

Decline of the WTO

The organization (successor to GATT) is experiencing a decline in its effectiveness and influence, marked by a deadlock in its functions and a rise in trade protectionism among member states.