Download From 1990s Promise to Unfair Global Trade: Economic Crises & Development and more Slides Culture and Globalization in PDF only on Docsity! Prospects for Development:
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PROMISES OF THE 90S GLOBALIZATION AND “REFORM” WOULD BRING UNPRECEDENTED PROSPERITY EUPHORIA OF EXPANDING TRADE AND CAPITAL FLOWS NEW TRADE AGREEMENTS HERALDED NEW ERA Docsity.com BIG QUESTION: WHAT ARE WE TO MAKE OF THESE FAILURES? Docsity.com END OF COLD WAR MEANT NEED FOR NEW GLOBAL ECONOMIC ORDER NEEDED A VISION INSTEAD GOT SPECIAL INTEREST POLITICS UNFAIR GLOBAL TRADING REGIME ECONOMIC AGENDA, GLOBAL INSTITUTIONS ADVOCATING “WRONG” ECONOMIC MODEL Docsity.com “WRONG ECONOMIC MODEL” BASED ON MARKET FUNDAMENTALISM SUCCESS OF SUCCESSFUL COUNTRIES— UNITED STATES, EAST ASIA—WAS BASED ON A QUITE DIFFERENT MODEL GOVERNMENT HAD LARGE ROLE E.G. INDUSTRIAL POLICIES (r & d), EDUCATION, DISTRIBUTION, EMPHASIS ON GROWTH AND EMPLOYMENT, NOT JUST PRICE STABILITY Docsity.com UNDERLYING PROBLEM: GLOBAL GOVERNANCE ECONOMIC GLOBALIZATION HAS OUTPACED POLITICAL GLOBALIZATION NOT JUST INSTITUTIONS, BUT FRAME OF MIND SOCIAL JUSTICE, SOLIDARITY STOPS AT THE BORDER WITH GLOBALIZATION, MORE NEED FOR GLOBAL COLLECTIVE ACTION SHORT SHRIFT TO PRINCIPLES OF DEMOCRACY UNILATERALISM OVER MULTILATERALISM Docsity.com GLOBAL GOVERNANCE SMOKESTACK STRUCTURE OF DECISION MAKING WITH TRADE MINISTERS MEETING WITH TRADE MINISTERS, FINANCE MINISTERS WITH FINANCE MINISTERS IMPACTS BROADER OTHER INTERESTS NOT SUFFICIENTLY PAID ATTENTION TO Docsity.com “REFORMING THE GLOBAL FINANCIAL ARCHITECTURE” SAME PEOPLE SITTING AROUND SAME TABLES NO REAL CHANGE—FUNDAMENTAL QUESTIONS NOT ADDRESSED BROAD CONSEQUENCES OF MISMANAGEMENT OF CRISES THEIR VOICES WERE NOT HEARD Docsity.com EXAMPLE 1: CAPITAL MARKET LIBERALIZATION PUSHED BY IMF—IN SPITE OF EVIDENCE THAT IT LEAD TO INSTABILITY BUT DID NOT LEAD TO GROWTH VOICES OF THOSE WHO PROFITED WERE HEARD, VOICES OF THOSE WHO PAID PRICE WERE NOT FINALLY IMF RECOGNIZED THE PROBLEM BUT THEN AGENDA SHIFTED TO WTO— SINGAPORE ISSUE SPECIAL INTERESTS OVER GLOBAL GENERAL INTEREST Docsity.com EXAMPLE 2: SOVEREIGN BANKRUPTCY PROBLEMS USED TO BE SOLVED WITH MILITARY INTERVENTIONS PRINCIPLES OF “FRESH START” WELL ACCEPTED BUT BANKRUPTCY RULES AND PROCEDURES CANNOT BE SET BY A MAJOR CREDITOR— SUCH AS THE IMF NEED FOR ALTERNATIVE APPROACH IN WHICH ALL STAKEHOLDERS ARE REPRESENTED Docsity.com EXAMPLE 3: IRAQ RECONSTRUCTION ENTAILS MOVEMENT FROM FORM OF SOCIALISM TO A MARKET ECONOMY COMBINED WITH PROBLEMS OF RECONSTUCTION—DECADE OF SANCTIONS PLUS WAR DECADE OF EXPERIENCE WITH SHOCK THERAPY— QUICK AND FULL LIBERALIZATION QUICK AND FULL PRIVATIZATION Docsity.com SECOND LESSON OF LAST DECADE: HASTE MAKES WASTE BETTER TO DELIBERATE AND GET BROAD SUPPORT BEHIND REFORMS, THAN HAVE THEM IMPOSED FROM TOP Docsity.com GLOBAL INTEREST IN A SUCCESSFUL IRAQI RECONSTRUCTION WILL NEED DEBT FORGIVENESS BUT MUST BE BASED ON “RULE OF LAW”—DEVELOPMENT OF A SET OF PRINCIPLES IRAQ NOT ONLY COUNTRY FOR WHICH THERE ARE ODIOSE DEBTS, UN NEEDS TO DEVELOP PROCEDURE FOR DEALING WITH SUCH DEBTS (DETERMINING WHEN THEY ARE “ODIOSE” Docsity.com GLOBAL INTEREST IN A SUCCESSFUL IRAQI RECONSTRUCTION NEED TO HAVE AN ECONOMIC STRATEGY THAT WILL WORK, BASED ON THE LESSONS OF THE PAST, ON ECONOMIC SCIENCE, NOT ON IDEOLOGY Docsity.com ECONOMIC POLICIES AND GOVERNANCE WITHIN EACH COUNTRY MATTER BUT UNFAIR GLOBAL TRADING REGIME PLUS FAILURE TO ADDRESS FUNDAMENTAL PROBLEMS OF GLOBAL FINANCIAL SYSTEM (GIVING RISE TO INSTABILITY) MAKE DEVELOPMENT ALL THE MORE DIFFICULT Docsity.com THERE IS A NEED FOR AN ECONOMIC SECURITY COUNCIL TO HELP PROMOTE A FAIRER, A BETTER, GLOBAL ECONOMIC ORDER Docsity.com
