Download Globalization: Current and Historical Perspective

Andrés Solimano
Course, University of Economics Prague,
November 2014
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Increasing interdependence across countries
and regions. Dimensions:
Trade in goods and services.
Capital Mobility.
International mobility of people. Migration.
Circulation of ideas, knowledge and
technology.
Cultural patterns.
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The end of the “great moderation”
before 2008.
The financial crash of 2008-09 in
advanced capitalism. The USA and
Europe.
Crisis followed by a sluggish recovery in
Europe and the US.
High Unemployment in Europe.
Growth deceleration in China and
Emerging Economies.
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A new Global Economic Geography?
The rise of Developing countries.
Share of Non-OECD countries in global GDP
rising from 35 % in 1990 to 50 % in 2010 to
65 % in 2030.
The growth of South-South Trade
South-South and North- South Migration.
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Entry of some 1.500 million workers to the
global marketplace through trade (750mm in
China, 450 millions in India and 150 millions
in the former Soviet Union).
High global debt to GDP ratios . They have
risen since 2008 in spite of deleveraging and
austerity.
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China and South-East Asia as a source of low
cost manufacturing.
Delocalization of branches of multinational
corporations in low –wage Asia. The practice
of outsourcing.
Large net savings surpluses in China, NICs
and oil-exporting countries.
The United States as a deficit country and a
net debtor.
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A multi-polar world.
The rise of the BRICS.
Stagnation and political economy stalemates
in mature advanced capitalism.
High and persistent inequality in the US and
UK.
Inequality in Russia, China and India.
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Global Capitalism I: First wave of
globalization : c. 1870-1914.
Global Capitalism in Crisis: the Inter-war
Period; late 1910s to late 1930s.
Managed Capitalism: the Bretton Woods
regime, 1944-1971.
Global Capitalism II: Neoliberal globalization
since the 1980s to the present .
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Gold standard (monetary regime)
Policy regime
Free trade,
Capital mobility and
Free migration (on the whole).
Geopolitics
Pax Britanica and a liberal economic order.
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Failed attempts to restore elements of the
gold standard,
Instability in the 1920s (Hyperinflation in
Austria, Germany and Hungary)
The stock exchange crash of 1929,
Banking crisis and depression in the early
1930s,
Economic and political nationalism.
Rise of fascism and Nazi movements.
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The Bretton Woods era:
Fixed exchange rates,
Keynesian policies of full employment and the
welfare state.
Resurgence of trade,
Restricted capital mobility and limited
international migration.
Pax Americana.
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Floating exchange rates,
increased trade, increased capital mobility,
rising migration,
financial deregulation,
free market fundamentalism.
Privatization and neoliberalism.
Power of capital.