O slideshow foi denunciado.
Seu SlideShare está sendo baixado. ×

208 - Geopolitics & World Economic Systems UNIT 1

Anúncio
Anúncio
Anúncio
Anúncio
Anúncio
Anúncio
Anúncio
Anúncio
Anúncio
Anúncio
Anúncio
Anúncio
Carregando em…3
×

Confira estes a seguir

1 de 34 Anúncio

208 - Geopolitics & World Economic Systems UNIT 1

Baixar para ler offline

Introduction to Global Economic & political Systems: Meaning of Global Economy and its History Structure and
Components of Global Economy, Theory of Hegemonic Stability, Differences among National Economies, Market
Oriented Capitalism, Developmental Capitalism, Social Market Capitalism, Comparative Analysis, Effects of
Globalization on Indian Economy.

Introduction to Global Economic & political Systems: Meaning of Global Economy and its History Structure and
Components of Global Economy, Theory of Hegemonic Stability, Differences among National Economies, Market
Oriented Capitalism, Developmental Capitalism, Social Market Capitalism, Comparative Analysis, Effects of
Globalization on Indian Economy.

Anúncio
Anúncio

Mais Conteúdo rRelacionado

Diapositivos para si (20)

Semelhante a 208 - Geopolitics & World Economic Systems UNIT 1 (20)

Anúncio

Mais de Rakesh Bhati (20)

Mais recentes (20)

Anúncio

208 - Geopolitics & World Economic Systems UNIT 1

  1. 1. 208-Geopolitics & World Economic Systems UNIT1: 1. Introduction to Global Economic & political Systems: Meaning of Global Economy and its History Structure and Components of Global Economy, Theory of Hegemonic Stability, Differences among National Economies, Market Oriented Capitalism, Developmental Capitalism, Social Market Capitalism, Comparative Analysis, Effects of Globalization on Indian Economy
  2. 2. Geopolitics is a term which was first used in 1899 by Rudolf Kjellen. It`s first meaning was a combination of geography and political interests. At that time, people believed there was a strong connection between physical land and politics. The first people who worked on geopolitics were from nations who had build empires. Therefore, their understanding was based on the relationship between the center of the empire and colonies. The empire was based on international trade, production of goods and taxes and other resources brought from the imperial colonies Introduction to Global Economic & political Systems:
  3. 3. Kjellen (Swedish citizen, 1864-1922) was the first who coined the concept of Geopolitics in 1899 (Cohen, 2003), defining it as: “the theory of the state as a geographical organism or phenomenon in space” In 1993, Peter Taylor wrote that the revival of Geopolitics had taken shape in three ways: “…geopolitics has become a popular term for describing global rivalries in world politics.” “…the second form…is an academic one, a new more critical geopolitics. Critical historiographical studies of past geopolitics have been a necessary component of this ‘geographer’s geopolitics’.” “…the third form…is associated with the neo-conservative, pro-military lobby which have added geopolitical arguments to their ‘Cold War rhetoric’. Such studies talk of ‘geopolitical imperatives’ and treat geography as ‘the permanent factor’ that all strategic thinking must revolve around.”
  4. 4. Gottman defines geopolitics as “the influence of geographical factors on political action” • Physical geography: relates to the surface of the earth • Cultural geography: relates to human interaction w/h the land (language, religion, economics) There is a relationship between the two • Theories: abstractions that are systematically developed and convincing • Geopolitical actors: international organisations and nation- states • Deterritorialisation: doing away with territory • Reterritoralisation: creation of new territory – redefining
  5. 5. Politics and Markets ○ Role of the state in liberal democracies: to induce economic performance ○ Pluralist Approach ▸ The state is a neutral arena ▸ Actors have varying particular interests ▸ State has no intrinsic interests ▸ The study of politics is about government processes ○ Class Approach ▸ There are common class interests ▸ The ruling class controls the agenda ▸ It implements policy ▸ Thereby reducing popular influence
  6. 6. Silk roads (1st century BC-5th century AD, and 13th-14th centuries AD) For the first time in history, luxury products from China started to appear on the other edge of the Eurasian continent – in Rome. Spice routes (7th-15th centuries) Islamic trade in those Middle Ages were spices. Age of Discovery (15th-18th centuries) Aided by the discoveries of the so-called “Scientific Revolution” in the fields of astronomy, mechanics, physics and shipping, the Portuguese, Spanish and later the Dutch and the English first “discovered”, then subjugated, and finally integrated new lands in their economies. Introduction to Global Economic & political Systems:
  7. 7. First wave of globalization (19th century-1914) By the end of the 18th century, Great Britain had started to dominate the world both geographically, through the establishment of the British Empire, and technologically, with innovations like the steam engine, the industrial weaving machine and more. The world wars In the years between the world wars, the financial markets, which were still connected in a global web, caused a further breakdown of the global economy and its links. The Great Depression in the US led to the end of the boom in South America, and a run on the banks in many other parts of the world. Another world war followed in 1939-1945. By the end of World War II, trade as a percentage of world GDP had fallen to 5% – a level not seen in more than a hundred years. Introduction to Global Economic & political Systems:
  8. 8. Second and third wave of globalization The end of the World War II marked a new beginning for the global economy. Under the leadership of a new hegemon, the United States of America, and aided by the technologies of the Second Industrial Revolution, like the car and the plane, global trade started to rise once again. At first, this happened in two separate tracks, as the Iron Curtain divided the world into two spheres of influence. But as of 1989, when the Iron Curtain fell, globalization became a truly global phenomenon. Introduction to Global Economic & political Systems:
  9. 9. Globalization 4.0 In a world increasingly dominated by two global powers, the US and China, the new frontier of globalization is the cyber world. The digital economy, in its infancy during the third wave of globalization, is now becoming a force to reckon with through e-commerce, digital services, 3D printing. It is further enabled by artificial intelligence, but threatened by cross-border hacking and cyberattacks. Introduction to Global Economic & political Systems:
  10. 10. UUUU
  11. 11. Meaning of Global Economy and its History Structure and Components of Global Economy
  12. 12. Meaning of Global Economy and its History Structure and Components of Global Economy
  13. 13. Those who organize & sustain it –States & governments –International organizations & associations •Those who play a role in it –Capitalists & investors –Int’l financial institutions (IFIs) –Production managers –Consumers –Labor •Those marginal but connected to it –The global poor, small farmers –Grey & black marketeers •Transborder flows of goods, information, money, people & other things What is included in the “global economy”
  14. 14. Theory of Hegemonic Stability
  15. 15. Hegemonic Stability Theory • Central Idea: The stability of the International System requires a single dominant state to articulate and enforce the rules of interaction among the most important members of the system. • To be a Hegemon, a state must have three attributes: – The Capability to enforce the rules of the system; – The Will to do so; – A Commitment to a system which is perceived as mutually beneficial to the major states. • Capability rests upon three attributes: – A large, growing economy; – Dominance in a leading technological or economic sector; – Political power backed up by projective military power.
  16. 16. The Historical Record • Portugal 1494 to 1580 (end of Italian Wars to Spanish invasion of Portugal) Based on Portugal's dominance in navigation – Hegemonic pretender: Spain • Holland 1580 to 1688 (1579 Treaty of Utrecht marks the foundation of the Dutch Republic to William of Orange's arrival in England) Based on Dutch control of credit and money – Hegemonic pretender: England • Britain 1688 to 1792 (Glorious Revolution to Napoleonic Wars) Based on British textiles and command of the High Seas – Hegemonic pretender: France • Britain 1815 to 1914 (Congress of Vienna to World War I) Based on British industrial supremacy and railroads – Hegemonic pretender: Germany • United States 1945 to 1971 Based on Petroleum and the Internal Combustion Engine – Hegemonic pretender: the USSR
  17. 17. What does the Hegemon Do? The system is a collective good which means that it is plagued by a "free rider" syndrome. Thus, the hegemon must induce or coerce other states to support the system The US system tries to produce democracy and capitalism, thus it champions human rights and free trade. Other nations will try to enjoy the benefits of these institutions, but will try to avoid paying the costs of producing them. Thus, the US must remain committed to free trade even if its major trading partners erect barriers to trade. The US can erect its own barriers, but then the system will collapse.
  18. 18. What does the Hegemon Do? • Over time, there is an uneven growth of power within the system as new technologies and methods are developed. An unstable system will result if economic, technological, and other changes erode the international hierarchy and undermine the position of the dominant state. Pretenders to hegemonic control will emerge if the benefits of the system are viewed as unacceptably unfair.
  19. 19. study of the different types of national economies or “national systems of political economy” and their significance for the global economy has become an important aspect of the study of international political economy While national systems of political economy differ from one another in many important respects, differences in the following areas are worthy of particular attention: (1) the primary purposes of the economic activity of the nation, (2) the role of the state in the economy, and (3) the structure of the corporate sector and private business practices. Differences among National Economies
  20. 20. The purpose of economic activity in a particular country largely determines the role of the state in that economy. In those liberal societies where the welfare of the consumer and the autonomy of the market are emphasized, the role of the state tends to be minimal. Although liberal societies obviously differ in the extent to which they do pursue socialwelfare goals, the predominant responsibility of the state in these societies is to correct market failures and provide public goods. Differences among National Economies
  21. 21. On the other hand, in those societies where more communal or collective purposes prevail, the role of the state is much more intrusive and interventionist in the economy. Thus, the role of such states can range from providing what the Japanese call “administrative guidance” to maintaining a command economy like that of the former Soviet Union. Differences among National Economies
  22. 22. Capitalism, as I define the term, is an indirect system of governance based on a complex and continually evolving political bargain in which private actors are empowered by a political authority to own and control the use of property for private gain subject to a set of laws and regulations. Workers are free to work for wages, capital is free to earn a return, and both labor and capital are free to enter and exit from various lines of business. Capitalism relies upon the pricing mechanism to balance supply and demand in markets; it relies on the profit motive to allocate opportunities and resources among competing suppliers; and it relies upon a political authority (government) to establish the rules and regulations so that they include all appropriate societal costs and benefits. Market Oriented Capitalism
  23. 23. The key institutions that form the foundation of a market-oriented economy are: 1. Private Property: Private individuals, rather than governments, are the primary owners of resources, goods, and other assets. 2. Individual Freedom: Those who own resources, goods, and other assets have the freedom to use their property as they see fit. 3. Competitive Markets: Market are used to exchange privately owned commodities and to answer the three questions of allocation. Market Oriented Capitalism
  24. 24. ○ Consumer sovereignty exists in the economy i.e. producers produce those goods only that are ○ wanted by the customers. ○ Extreme competition exists in the market between firms which uses tools like advertisement and ○ discounts to call customer attention. ○ The profit motive is the key component; that encourages people to work hard and earn wealth.
  25. 25. ,, Differences among National Economies, Market Oriented Capitalism, Developmental Capitalism, Social Market Capitalism,

×