GO131:International Relations

Professor Walter HatchColby College

Globalization

What the heck is it?

Something to do with …Technology?

Something to do with …Trade?

Something to do with …Money?

Something scary?

Or just alien?

My first encounter

Seattle, 1999

What Environmentalists Said

What Labor Said

Common Theme: Corporate Power

From McDonald’s to Monsanto

What Globalization Is

The cross-border movement of commodites and services, as well as factors of production (capital, labor, technology), that increasingly integrates disparate communitiesA set of neo-liberal institutions and norms fostering and shaping such flows

What Globalization Isn’t

Globalization …

“has swallowed most consumers and corporations, made traditional borders almost disappear, and pushed bureaucrats, politicians, and the military toward the status of declining industries.”-- Ohmae Kenichi

“Globaloney”

Distinctive political, social, and economic institutions remain

States still matter

“Globalization” is not brand new

The First Wave

1870 – 1914 (Pax Brittanica)Free flow of gold

High levels of trade

UK as hegemon• financial power and free trade policy

Two New Waves

1945 – 1980 (Pax Americana I)“Embedded Liberalism”

New institutions (GATT, IMF)

1980 – Present (Pax Americana II)“Washington Consensus”

Unleashing markets

Global Flows

Commodities and Services (Trade)

Labor

Technology

Capital

Trade

Almost everything today has an exchange value in global markets

Weapons

Drugs

Even human body parts (Harrison)

Volume is up ($34 trillion a year in exports)10% growth between 2000 and 2005

Labor

Migration (from global south to global north)

volumes may not be so much higher

But methods used are increasingly costlyin economic and human terms

Migrant Smuggling

Human Trafficking

Technology

International strategic alliancesFairchild Semiconductor and Phillips

Technology transferPatents and licenses

Often from parent company to subsidiary

Capital

1980s and 90s:Relaxed controls on capital mobility

Moved to floating exchange rates

VolatilityEspecially hard for developing countries

Other Complaints

Increased Inequality?

Between rich and poor states

Within each state

A Race to the Bottom?

Lower and lower wages

Less and less public spending

Deregulation

Competition policy

Intellectual property rights

Cultural Homogeneity?

Fast food

Hollywood

Beauty queens

In Defense of Globalization

Yes, states must wear “Golden Straitjacket”

But what’s the alternative?