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  1. 1. Y376 International Political Economy November 5, 2009
  2. 2. Dissenting Views <ul><li>“ Globalization at this point in time is far more about disparities between nations than the assimilation of a flat world.” Steven Roach, Chief Economist, Morgan Stanley </li></ul><ul><li>“ By any measure, the international economic landscape is not at all flat. On the contrary, our world is amazingly ‘spiky.’” Richard Florida , Professor, Carnegie Mellon University </li></ul>Source: Ronald Aronica and Mtetwa Ramdoo, The World is Flat? A Critical Analysis of Thomas L. Friedman’s NY Times Bestseller , preface.
  3. 3. Richard Florida <ul><li>Professor at Carnegie Mellon Univ. in Pittsburgh </li></ul><ul><li>Two major books: </li></ul><ul><ul><li>The Rise of the Creative Class </li></ul></ul><ul><ul><li>The Flight of the Creative Class </li></ul></ul>
  4. 4. Spikiness in Economic Activity in the United States
  5. 5. Spikiness in Economic Activity in China
  6. 6. Spikiness in Scientific Citations http://creativeclass.com/rfcgdb/articles/other-2005-The%20World%20is%20Spiky.pdf
  7. 7. Defining Globalization <ul><li>Economic globalization is a “set of processes leading to the integration of economic activity in factor, intermediate, and final goods and services markets across geographical boundaries and the increased salience of cross-border value chains in international economic flows.” </li></ul>Source: Introduction to Aseem Prakash and Jeffrey Hart, eds., Globalization and Governance (Routledge:1999)
  8. 8. Value Chain <ul><li>Concept invented by Michael Porter </li></ul><ul><li>A value chain is more comprehensive than a supply chain because it extends backward to R&D and innovation and forward to commercialization </li></ul>Michael Porter Harvard Business School
  9. 9. Other Ways of Thinking about Globalization <ul><li>Deterritorialization , e.g. of </li></ul><ul><ul><li>diasporic communities </li></ul></ul><ul><ul><li>MNCs </li></ul></ul><ul><ul><li>currencies </li></ul></ul><ul><li>Convergence </li></ul><ul><ul><li>leading toward a universal “sameness” </li></ul></ul><ul><li>Mythology or Fad </li></ul>See, for example, Arjun Appadurai , Modernity at Large.
  10. 10. Appadurai’s Cultural Landscapes <ul><li>Ethnoscapes </li></ul><ul><li>Mediascapes </li></ul><ul><li>Technoscapes </li></ul><ul><li>Finanscapes </li></ul><ul><li>Ideoscapes </li></ul>“ The suffix scape also allows us to point to the fluid, irregular shapes of these landscapes, shapes which characterize international capital as deeply as they do international clothing styles.”
  11. 11. Deterritorialization of Currencies <ul><li>Dollarization </li></ul><ul><ul><li>Russia (for a while) </li></ul></ul><ul><ul><li>Mexico (tesobonos) </li></ul></ul><ul><ul><li>Argentina </li></ul></ul><ul><ul><li>El Salvador </li></ul></ul><ul><ul><li>Panama </li></ul></ul>Blue and purple means tied to the Euro; Green, yellow, tied to US dollar
  12. 12. Diasporic Communities <ul><li>any people or ethnic population forced or induced to leave their traditional homelands , the dispersal of such people, and the ensuing developments in their culture </li></ul><ul><li>examples: Jews, Cubans, Chinese, Pakistanis, Indians, etc. </li></ul>
  13. 13. Examples of Globalized Culture <ul><li>Corporate logos </li></ul><ul><li>Who Wants to be a Millionaire </li></ul><ul><li>MTV </li></ul><ul><li>World Music , e.g. Reggae or Ska </li></ul><ul><li>Anime , Manga, Pokemon (J-pop) </li></ul><ul><li>Disneyland, Disneyworld theme parks </li></ul><ul><li>Action movies with little dialogue </li></ul>
  14. 14. Will Territorial Based Systems Become Obsolete? <ul><li>No (short answer) </li></ul><ul><li>Territorial-based systems may become less important relative to others but it is more likely that more complex relationships among governance systems at different levels of aggregation -- local, national, regional, etc. -- and nonterritorial governance systems will have to be established. </li></ul>
  15. 15. Coping Strategies: National Governments <ul><li>Many coping strategies are still possible. </li></ul><ul><li>Downsizing the state is not always desirable (e.g. the case of the formerly centrally planned economies). </li></ul><ul><li>National governments are likely to play a role in reducing inequalities accentuated by globalization. </li></ul>
  16. 16. Examples of Coping Strategies <ul><li>Promotion of inward FDI </li></ul><ul><li>Raising the skills of the workers via education and training programs </li></ul><ul><li>Scholarships and fellowships for college </li></ul><ul><li>Increased spending on research and development (R&D) </li></ul><ul><li>Regional development efforts </li></ul>
  17. 17. Races to the Bottom <ul><li>Tendency of political units to reduce regulations/taxes/standards in order to match the reductions of others as a part of competition for the location of value-added activities in their territory. </li></ul><ul><li>Seen as a negative consequence of globalization. </li></ul>
  18. 18. Examples of Possible Races to the Bottom <ul><li>Corporate taxes </li></ul><ul><li>Environmental regulations </li></ul><ul><li>Wages and other labor practices </li></ul><ul><li>Internet-related: </li></ul><ul><ul><li>pornography </li></ul></ul><ul><ul><li>gambling </li></ul></ul><ul><ul><li>hate groups </li></ul></ul>
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