Who Governs the Global economy

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Governance with not just governments quote
"the conventional, state-centric image of politics and the role of thee state in society appears to account for less and less of contemporary patters of power and authority in an era of globalisation" - J.Pierre
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Define Governance
Governance is the sum of many ways individuals and institutions, public and private manage their common affairs. it is a contiuining process through which conglicting or diverse interests may be accommodated and co-operative action may be taken.
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Define Governance, it include
in includes formal institutions and regimes empowered and enforce complianceas well as informal arrangements that people and institutions either have agreed to or perceive to be in their interest.
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Transnational relation quote - definition
"Contracts, coalitions and interactions across state boundaries that are not controlled by the central foreign policy organs of governments" - keohane & Nye 1971
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Complex interdependence quote - definition
"Multiple channels connect societies including; informal ties between governmental elites; informal ties among non-governmental elites; and transnational organisation (such as multinational banks or corporations) -Keohane &Nye 1989
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Governance with governments
state still critical but its role is evolving. States breaking down into functionally distinct parts leads to networking with counterparts in other jurisdictions. Decomodifying hierachy (Shield against Markets) leads to marketing bureaucracy (
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Governance without Government
Order and control possible in the absence of formal government authority.
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Governace without government Market authority
create rules of their own
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Governance without government - Moral authority
good way of leading your life
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governance without government - Illicit authority
Mafias, gangs, have own rules applied brutally, hierachy
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Governance without governments examples
Business norms, private organisation, trade associations, lobby groups, individual firms and coordination service firms. Think tanks and research institutes, pricate regimes
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State role since 1945
Has continually evolved, private actors have re-emerged as key sources of governance for the global economy
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The 'Golden Era' of Bretton Woods
Fastest period of sustained economic growth in the 20th century, particularly industrialised countried. 1950 -70 4.8% growth, 1918-39 1.5% growth, 1980-2009 3% growth - fast in India and China
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The 'Golden Era' of Bretton Woods - Europe in relation to rest of World
Europe catches up and overtakes countries outside Bretton Woods arrangements. 1950 Germany & Italy poorer than Chile, Western Europe 10% poorer than Argentina. 1973 W. Europe 53% richer than Argentina
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Bretton Woods Ideas
Keynesianism / Embedded liberalism - Keynesianism starts at markets fail, role of state is correcting failures, heavy regulation of trade and finance - fix exchange rates & capital controls - hard to make money cross boarders
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Bretton Woods Institutions
States, Bretton Woods institutions - IMF, World Bank, GATT, UN - major international institutions in public ownership
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Bretton Woods Interest
International subordinate to national
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Bretton Woods Innovation
States as drivers of economic and social change
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Bretton Woods Policies
Trade and (especially) finance heavily regulation
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Bretton Woods Prescriptions
States to limit market impact on society
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Bretton Woods Power
US hegemony, Bretton Woods wouldnt have happened without US money. Wanted to generate economic cooperation, show capitalist superiority
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Bretton Woods People
Concerned with developed world
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Embedded Liberalism (Ruggie 1982)
Reconcile desire of states to capture the benefits of a liberal internaional order with need to retain national autonomy to appease domestic interests
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Embedded Liberalism (Ruggie 1982) explained
Compromise between liberalising economy but still allowing states some control. Main policy concern in this area - full employment. Limits on international economy. Support domestically
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Embedded Liberalism a series of compromises
Limits to liberalisation. Freer markets but more social social preotection. US leadership tempered by Western cooperation. Labour and capital cooperated to keep wages and profits high
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Bretton Woods Finance Policies
Fixed exchange rates. US dollar exchanged for gold at fixed rate. Finance is politcal. Protect and promote domestic over international interest. Capital control on short term. FDI allowed
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Bretton Woods FInance Institutions
International organisation and cooperation - US ran the system unilaterally
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Bretton Woods Finance Implications
States built extensive welfare states - cushioned people against more negative effects of liberal economy. state spending ^ taxes on wealthy and coporations ^. States stimulated the economy - step in to offset weak private demand.
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Bretton Woods Finance Implications - debt
Govt spending high, taxes were low, led to deb. Governements forced banks to buy the debt. Cut interest reates, reduces rates of investments, increase interest rates. Was seen as better to go to the IMF than implement horrendous policies.
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Bretton Woods and trade
International organisation and cooperation through GATT, policies to embed liberalism - exemptions, infant industries, LDC preferences, regional trade blocks
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The OECD Origins
Organisation for European Economic Cooperation - 1948 Marshall Plan. Peer review process - scrutinise bid for money by peers, promotes cooperation. Repaired Western Europe trade and payments - Canada and US observers
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The OECD transition from OEEC
US demanding more equitable translantic partnership. Cold war twisting from East-West to North-South axis. European disagreements over EEC/EFTA(6Vs7). Decolonisation & European growth led to end of OEEC and EU countries falling out amongst themselves
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OECD 1961
Canada and US full members. 20 original members rising to 34 by 2010
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OECD mandate (article 1)
Vague. Not connected to state security. Achieve highest sustainable economic growth, increase living standards, maintain stability and contribute to developement of World Econ. Expansion of countries in process of econ development. ^ world trade
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OECD and Global Governance number of dimensions
4 - Cognitive, Normative, Legal, Palliative
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OECD and Global Governance Cognitive
Embodiment of member values - Eg Japan joined the advanced industrialised community in both name and fact 1964. Market economies and democracies, aspire to be members
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OECD and Global Governance Normative
Developing and diffusing shared knowledge - agree to keep each other informed share information, consult on a continuing basis - shared outlook. Eg Programme for International Student Assessment (PISA)
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OECD and Global Governane Legal
Developing legal instruments and treaties - discussion not negotiation
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OECD and Global Governance Palliative
Greasing the wheels of global governance - important for what it allows to do - TRADE. Filling gaps in global governance, support services, pre-negotiation Eg assisting GATT/WTO negotiations and G7/8/20 process
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Group of 7/8
UK-USA-Canada-France-Italy-Japan-Germany -7 Russia -8 EU ghost member
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Origins of the G7/8
1973 Meeting of the G5 (library Group) - Finance ministers, looking for new to manage economy. 1975 Rambouillet (G6) head of state/govt 1977 G7 meets for the first time
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Reasons for G7 emergence
Growing interdependence, decline of US hegemony - not willing, repoliticise international politics, security - cold war background no rules, procedures, no HQ
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What does the g7/8 do?
summit once a year. Part of a wider process: Sherpas- personal representatives of HofS before meeting, Miniterial meetings, international summit cycle.
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What does the G7/8 Promote?
Cooperation amongst advanced industrialised countries and collective solutions to global economic problems - acting catalyst, deliberative, forum. Explain why cant cooperate, builds trust, doesnt solve problem in one go. keep going back, breaks deadl
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From G8 to G20
Growing criticism of the G7/8 Turning point the 1997/98 Asian financial crisis - effects on global economy were severe, non G7/8 countries could affect the world. 1999 G20 Finance Ministers and Central Bank Governers. annual meeting 1999-2008, 3
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How often does the G20 now meet?
3 times a year has become the norm since the financial crash, was 5 in 2011, used to be annual
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G20 Developments
2008 first heads of state summit, 2009 Pittsburgh G20 henceforth the 'premier forum for our international economic cooperation' 2010 Meeting of Employment and Labour ministers
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Members of the G20
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, United Kingdom, United States, European Union
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Have Critiques of G7/8 been adequately adressed
membership of both is sitll unlected and unacountable, self selecting group - unknown criteria, no mechanism for chaning membership, represent 65% of pop 85% of GDP - improvemnt of G7/8. Still a lack of compliance with pledges, no enforcement
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The origins of the G77
Decolonisation, UN development decade - 1960s 1964 - G77 founded at inaugural UNCTAD meeting (trade and Development) 1967 G77 'chapters' foundeded at UN bodies - permanent instituions, loose structure, now has 132 members
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G77 aims
To enable southern countries to aggragate and articualate their interests, Enhance their joing negotiating capacity vis - a - vis the North in UN and other international bodies, campaign for a more equitable global economic order
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Criticisms of G77
no concrete achievements, long on rhetoric, short on achievement, Fissiparous - North-South divide oiler importers Vs oil exporters, Anachronistic
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Define Governance


Governance is the sum of many ways individuals and institutions, public and private manage their common affairs. it is a contiuining process through which conglicting or diverse interests may be accommodated and co-operative action may be taken.

Card 3


Define Governance, it include


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Transnational relation quote - definition


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Complex interdependence quote - definition


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