Chapter 7 Steger Ideological Confrontations over Globalization Ideology

Chapter 7 Steger: Ideological Confrontations over Globalization

Ideology • a system of ideas and ideals, especially one which forms the basis of economic or political theory and policy. Examples from Stutz Chapter 1: Main Schools of Economic Thought • • • “Scientific” or Location Theory – Neo Classical Economics Behavioral Humanistic Political – Structuralists, Marxists Neo Structuralists

Economic Ideology • A blueprint for economic activity • Sort of like Hofstede’s Social Paradigm, but with narrow economic focus • Competing visions

Economic Ideologies in Steger • Market Globalization • Steger relates to Neoliberalism and Washington Consensus • This ignores more Keynesian Ideas, with more controlled market systems • Justice Globalization • This is more of a notion then strict ideology • Beijing Consensus? ? ? Missing? ? ? • How does this fit in? Discuss later

Steger • Steger provides us with a general framework of • market based • and a principle based view (but whose principles? ) • We will ignore Religious Globalization – since most people that belong to religions do not use it for global economic organization • As For Anti-Globalists – more reaction than ideology • this has so many different approaches • many times based on a charismatic leader, • there does not seem to be a central ideology, but rather just the thoughts of certain groups or leaders – so in Steger we will ignore it • Will deal with this later in class

Market Globalism

Market Globalism • Steger equates this with Neoliberalism/Washington Consensus (recall its 10 points) • The major support groups for this approach are • • • WTO, World Bank, IMF Major Western trading economies like US and Germany TNCs Groups lobby governments Media that trumpets it Some academics

Annual Conclave of likeminded individuals World Economic Forum

Re-Visiting Jagdish Bhagwati https: //www. youtube. com/watch? v=Oo. YWnp. KEB 5 E

Five Major Claims

Problems with the 5 claims • Basically, Markets Rule – Get out of the way Problems with such a statement • Markets only exist if Governments create, foster, and protect them • Governments are made up of politicians that answer to various interests, the people are only one of these groups • Hence Government Interferes with the market – it isn’t perfectly free • As Keynes asked Hayek, “where do you draw the line? ” – that is between free market and Govt. regulation and planning

Markets rule in Texas … until Watch more https: //www. youtube. com/watch? v=znsx 7 RFXDt 8

Question – is that how your internet speed works? • Companies sell you internet speed, but read the fine print – up to that speed, they can change it downwards at will

Problems with the 5 Claims • Sort of “natural force” like the weather • Must adapt because it is inevitable • Resistance is irrational and downright dangerous Problems with such a statement • If this is true, then how might one explain the Beijing Consensus?

China is smoking the world

Problems with the 5 Claims • The invisible hand the market rules • It is too complex for any individual or group to plan or control Problems with such a statement • There are powerful actors that can sway markets • Monopolies and Oligarchies can and do exist • All players are not equal, some are “more” equal

And you thought it was the little guy with Game. Stop

Problems with the 5 Claims • As Sachs would point out technology diffuses across the landscape helping all • Problems with such a statement • Sachs quotes Adam Smith as showing that technology can be denied to groups • Benefits are not equally shared • There is personal and geographic concentration of benefits

Problems with the 5 Claims • Claim made by Milton Freidman and others that “free markets and free democracies are synonymous” • You can’t have free markets without democracy • Problems with such a statement • Beijing Consensus has proven the opposite, China is currently more autocratic and richer that any time since Mao’s death in 1976

As detailed in Jacoby – growth and democracy are not as easily correlated Might North Korea grow even under Kim Jung Un? Play Clip -- https: //www. youtube. com/watch? v=q. LHNe 5 z 7 n 3 Q

Justice Globalism

Justice Globalism • Global Justice Movement Progressive Network of NGOs and activists More of a loose confederation then tight ideology Has it roots as far back as the Post WWII end of colonialism More modern rendition was in the 1990 s Agitates for the environment, fair trade, international labor, human rights, and women’s issues • In a nutshell a better global deal, especially for developing countries and under-represented people • • •

Battle for Seattle • Movement took on the Neoliberal Policies of the WTO Loose coalition • Some opposed to WTO style free trade • Others calling for Pro-Labor reforms • Others representing anti-capitalist groups • Some were environmentalists • Some favored teach-ins, some direct action & civil disobedience

Annual Conclave of like-minded individuals World Social Forum Noam Chomsky at the 2021 WSF start at minute 5: 00 https: //www. youtube. com/watch? v=Uc 6 ZTHRn-cg&t=244 s

Justice Globalization – 5 Demands

Issues with 5 Demands • Not a bad idea • But may not be realistic, for example China also now has loaned billions to developing countries, rather than forgiving Sri Lanka’s debt, it took control of its major port

Issues with the 5 Demands • Interesting idea, however not clear the full impact, so the jury is still out on this proposal

Issues with the 5 Demands • Certainly would force the wealthy to pay more taxes in their home countries • However, the tax haven country (like the Cayman Islands) would lose revenue – but this could be a worthwhile loss at the global level.

Issues of the 5 Demands • This sounds excellent, it would prevent the dumping of dangerous jobs and industries on the developing world • Benefits would be local and global. • However, based on the principles of the Treaty of Westphalia, would need a mechanism to get poor developing countries to agree, and stop being “pollution havens”. -- Would the rich countries be willing to pay poor countries to meet standards? Would China become more serious?

5 Demands • Absolutely need this • Might China lead the way? Or are they also going to strip the world of valuable resources at the lowest price? https: //www. youtube. com/watch? v=J 021 IBy 9 m. Bg

Summary • An economic ideology is like a blueprint or similar to Hofstede’s social paradigm, but only for the economy • Although Steger lists two major Ideologies of Globalization: • Market Globalization • Justice Globalization There are many variations of each, as noted early in the course and in Stutz Also, not clear where the Beijing Consensus fits • The most common form of Market Globalization is Neoliberal and it has 5 major claims – however – each of these claims have been questioned/debated • Justice Globalization is more notion than unified ideology with 5 demands, several of these have questions raised about them

Class exercise Regardless of how you personally feel you must put yourself in the position of a true believer. • Break into groups all even number groups will defend Market Globalization and explain its 5 claims and question the 5 demands of Justice Globalization • Odd number groups will do the opposite, that is explain and defend the 5 demands of Justice Globalization while questioning the 5 claims of Market Globalization