April 23, 2012

Changes in the Global Economy since 1989End of the Cold War Acceleration of GlobalizationSeptember 11Rise of Neo-Liberalism

Washington ConsensusWelfare to WorkfareEmpowerment and personal responsibility replaced

protection of the vulnerable in rationale for government social programs

Financial Crisis of 2007-8Rise of China and India

The Euro CrisisWhat is the future of the

Euro Zone?Is austerity the answer to

current difficulties?Is Greece just the tip of the

iceberg?Sarkozy defeated in the first

round of French presidential elections in 2012, may not be reelected

G20 pledged $430 billion for IMF

Austerity protest in Italy

Attention turns to Spain

What comes next in the study of International Political Economy?How to deal with growing volatility of world

financial marketsHow to deal with the growing power of MNCs

and other transnational actorsHow to preserve and expand democratic

governance in the face of growing vulnerability of the system to major disruptions (military, economic, and terrorist)

How to reconcile the global interests in economic growth and environmental protection

A Renewed Focus on the LocalGlobalization makes it difficult for governments to

protect local communities and regions from its negative effects (especially under the influence of neo-liberal ideas)

In industrialized countries, environmental concerns are producing a greater focus on local issues

In developing countries, social safety nets were too thin to begin with; increasing the burden on local communities

Governments everywhere have been scaling back their efforts to help the vulnerable

What are the Issues that Both Sides Have to Address?Inability of either globalization or localism to

overcome forces that lead to domestic violence and war

Redefining the role of local and national governments, along with international governance institutions, so that the global economy can produce better results

Continued poverty in the Fourth World and elsewhere

Threats to the environment (e.g. climate change)

Recent ConcernsGlobal financial crisis may lead to a return to

greater regulation of financial marketsOther types of regulation may become more

acceptable also:Anti-trust and competition policiesEnvironmental regulations to deal with

global climate change and toxic wasteRelaxation of intellectual property enforcement

to deal with AIDS and other global pandemicsRenewed focus on education and infrastructure

Who is thinking about these things? Just a few names…

Saskia SassenSuzanne BergerWilliam EasterlyHernando de SotoJoseph Stiglitz

Saskia SassenProfessor, Sociology, University

of ChicagoBooks:

Cities in a world economy Deciphering the Global: Its

Spaces, Scales and SubjectsThe Global City: New York,

London, TokyoFocuses on emerging social

practices

video

Suzanne BergerProfessor, Political Science,

MITBooks:

National Diversity and Global Capitalism

How We CompeteFocuses on the political

economy of globalization and particularly on convergence

video

William EasterlyArgues against panaceasArgues for proper structuring of group

incentivesFormerly employed by World BankNow professor at NYUVideoBill Gates hated his books

Hernando de SotoPeruvian economistHead of Institute for

Liberty and Democracy in Lima

Focuses on the role of property rights

Book:The Mystery of Capital:

Why Capitalism Triumphs in the West and Fails Everywhere Else

video

Joseph StiglitzFormer chief economist of the World Bank

turned critic of the IMF after the Asia CrisisArgues the IMF mismanaged globalizationToo focused on inflation and fiscal rectitudeNeglected economic growth and employment

video