BY

Deepak
 Globalization
Increasing world integration of capital,
production and markets, driven by the logic
of corporate profitability
Profit above equity, justice, environment,
community and nation?
 The process of diminishing interdependence
and integration between nations: Trade
declines, governments create tariffs and
other protectionist measures, investment
lessens, cultural & personal links between
countries shrink or are even attacked.
Though it seems difficult to believe, there
have been long periods of history when trade
and investment between countries did
decline e.g. 1914-1950s In contrast to the
periods 18501914 and 1950s2007, when it
was globalization that increased.
Weakness of international governance
structures?
A general trend of reducing trust between
people, between people and leaders, and
between people and institutions?
The impact of the crisis?
Increasing environmental threats, & economic
and social inequalities?
 Measuring Globalisation/ Deglobalisation
The four main economic flows: Goods and
services, e.g. exports plus imports as a
proportion of national income, or per head of
population. Labour/people, e.g., net
migration rates; inward or outward migration
flows, weighted by population (and resultant
remittances in per cent of GDP) Capital,
e.g. inward or outward direct investment as
a proportion of national income or per head
of population Technology.
Average tariffs
Border restrictions on labour
Restrictions on foreign direct investment,
and/or
Restrictions on outward direct investment.
 United States of America, where the Bush
and Obama administration instituted the Buy
American Provision* of the American
Recovery and Reinvestment Act of 2009 as
part of a massive stimulus package, which
was designed to favour American-made goods
over traded goods (*any public building or
public works project funded by the new
stimulus package would use only iron, steel
and other manufactured goods produced in
the United States) But dont blame the USA
alone!
 Deglobalisation (continued)
The EU provided new subsidies to protect its own
agricultural sectors Most governments paid lip
service to a globally coordinated response for
addressing the current economic crisis, but each of
them put in place separate stimulus programs for
their own national markets Export-oriented growth
stalled and that had been the driver of economic
growth for many economies The Doha Round of
trade negotiations under the World Trade
Organization was completed under the usual slogan
of advancing trade liberalization as a means of
countering the global downturn But will we really
return to a world dependent on free-spending
American consumers, when so many there are
bankrupt, unemployed & on low wages?
 Statustoday: Policymakers generally
continue to: - emphasise free trade, - give
primacy to private enterprise, and - think
of a minimal role for the state.
Slower long-term growth
Greater gap between poorer and richer
countries
More protectionism/ less cooperation, and
Increased risk of international conflict
 The worst economic situation since the
Great Depression 70 years ago.
Global poverty and inequality increasing,
while most poor countries experience little
or no economic growth
Deglobalization has become the
transmission belt (not of prosperity but
instead) of economic crisis and collapse
 Use trade quotas and tariffs to protect local
economies from destruction by corporate
commodities subsidized by artificially low taxes,
prices, and currencies
Substitute reliance on exports, by reliance on vibrant
communities/ national markets, through equitable
income and land redistribution which produces local
financial resources for investment
Use subsidies, tariffs, and trade to influence whether
and when to introduce robots and other advanced
manufacturing/ industrial technologies
De-emphasise growth, emphasize improvement in the
quality of life
Encourage development and diffusion of
environmentally-friendly technology
 Increase the scope of democratic (as against
government or technocratic) decision-making to
cover all vital questions e.g. which industries to
develop/ phase out, what proportion of the
government budget to devote to which sector.
Institutionalize the monitoring and supervision of
the private sector and the state by civil society
Enable the development of a mixed economy,
excluding transnational corporations, but including
community cooperatives, private enterprises, and
state enterprises
Replace centralized global institutions like the IMF
and the World Bank which emphasize free trade and
capital mobility, with regional financial institutions
built on principles of cooperation.
 Are "one size fits all" models, like
neoliberalism or centralized bureaucratic
socialism, always dysfunctional and
destabilizing?
Should we rather expect and encourage
redundancy and diversity in economics, as
there is in nature?
THANK YOU