The document summarizes major global economic changes since 1989, including the end of the Cold War, increased globalization, financial crises, and the rise of China and India. It discusses issues related to the future of the Eurozone, austerity measures, and growing economic volatility. Finally, it briefly profiles several thinkers who have studied topics like globalization, poverty, property rights, and international governance.

1. April 23, 2012

2. Changes in the Global Economy since
1989
 End of the Cold War
 Acceleration of Globalization
 September 11
 Rise of Neo-Liberalism
 Washington Consensus
 Welfare to Workfare
 Empowerment and personal responsibility replaced
protection of the vulnerable in rationale for government
social programs
 Financial Crisis of 2007-8
 Rise of China and India

3. The Euro Crisis
 What is the future of the Euro
Austerity protest in Italy
Zone?
 Is austerity the answer to current
difficulties?
 Is Greece just the tip of the
iceberg?
 Sarkozy defeated in the first round
of French presidential elections in
2012, may not be reelected
 G20 pledged $430 billion for IMF

4. Attention turns to Spain

5. What comes next in the study of
International Political Economy?
 How to deal with growing volatility of world financial
markets
 How to deal with the growing power of MNCs and
other transnational actors
 How to preserve and expand democratic governance
in the face of growing vulnerability of the system to
major disruptions (military, economic, and terrorist)
 How to reconcile the global interests in economic
growth and environmental protection

6. A Renewed Focus on the Local
 Globalization makes it difficult for governments to
protect local communities and regions from its
negative effects (especially under the influence of
neo-liberal ideas)
 In industrialized countries, environmental concerns
are producing a greater focus on local issues
 In developing countries, social safety nets were too
thin to begin with; increasing the burden on local
communities
 Governments everywhere have been scaling back
their efforts to help the vulnerable

7. What are the Issues that Both Sides
Have to Address?
 Inability of either globalization or localism to
overcome forces that lead to domestic violence and
war
 Redefining the role of local and national
governments, along with international governance
institutions, so that the global economy can produce
better results
 Continued poverty in the Fourth World and
elsewhere
 Threats to the environment (e.g. climate change)

8. Recent Concerns
 Global financial crisis may lead to a return to greater
regulation of financial markets
 Other types of regulation may become more
acceptable also:
 Anti-trust and competition policies
 Environmental regulations to deal with
global climate change and toxic waste
 Relaxation of intellectual property enforcement to deal
with AIDS and other global pandemics
 Renewed focus on education and infrastructure

9. Who is thinking about these
things? Just a few names…
Saskia Sassen
Suzanne Berger
William Easterly
Hernando de Soto
Joseph Stiglitz

10. Saskia Sassen
 Professor, Sociology, University of
Chicago
 Books:
 Cities in a world economy
 Deciphering the Global: Its Spaces,
Scales and Subjects
video
 The Global City: New York, London,
Tokyo
 Focuses on emerging social practices

11. Suzanne Berger
 Professor, Political Science, MIT
 Books:
 National Diversity and Global
Capitalism
 How We Compete video
 Focuses on the political economy of
globalization and particularly on
convergence

12. William Easterly
 Argues against panaceas
 Argues for proper structuring of group incentives
 Formerly employed by World Bank
 Now professor at NYU
 Video
 Bill Gates hated his books

13. Hernando de Soto
 Peruvian economist
 Head of Institute for Liberty
and Democracy in Lima
 Focuses on the role of property
rights
 Book:
 The Mystery of Capital: Why video
Capitalism Triumphs in the
West and Fails Everywhere Else

14. Joseph Stiglitz
 Former chief economist of the World Bank turned
critic of the IMF after the Asia Crisis
 Argues the IMF mismanaged globalization video
 Too focused on inflation and fiscal rectitude
 Neglected economic growth and employment