Globalization, cooperation, and international political economy

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Globalization, cooperation, and international
political economy

• Jonas Tallberg

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Sources of globalization

• Globalization process through which states,
  economies, institutions, and actors become
  increasingly interconnected.
• Economic specialization
• Technological development
• Political liberalization
• Cultural integration

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Consequences of globalization

• Interdependence (sensitivity vulnerability)
• Time and space compression
• Communications
• Economics
• Environment
• Security
• Politics

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Trends in international cooperation

• Dramatic increase after WW II
• More institutionalized cooperation
• Greater participation by transnational actors
• Cooperation remains problematic
• Sovereignty vs. capacity central trade-off

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Functions of international institutions

• Forum for negotiations
• Protect and strengthen norms
• Information about the actions of the parties
• Create expectations about the future
• Enable sanctioning (sometimes)

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Challenges for cooperation

• Normative debate about three concerns
• Distribution of power
• Democratic legitimacy
• Effectiveness and efficiency

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Realism

• International institutions reflect the
  distribution of power and do not affect state
  behavior
• Best preconditions for cooperation in the
  presence of a benevolent hegemon (hegemony
  school)
• Pessimistic view on the possibilities of
  cooperation, as states are motivated by relative
  gains (neorealism)

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Liberalism

• International institutions are demanded and shape
  cooperation through their functions
• Institutions affect state behavior by creating
  incentives for cooperation
• Optimistic view on the possibilities for
  cooperation, as states are motivated by absolute
  gains (neoliberalism).

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Constructivism

• Rationalism
• States come to negotiations with ready-made
  interests
• States ask what benefits us most?
• Institutions work through incentives

• Constructivism
• States interests are shaped in the process of
  cooperation
• States ask how ought we act?
• Institutions work through norms ideas

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Why IPE?

• Economics affect politics and vice versa
• Economic interdependence between states in trade,
  currency, credit and production
• Dilemma the state is territorially bound, but
  economic processes transcend borders
• Consequences for the distribution of wealth
  between states and groups

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Liberalism, mercantilism marxism

• Liberalism (1) world as global market (2)
  companies and individuals central actors (3)
  order through the invisible hand
• Mercantilism (1) world as arena of interstate
  conflict (2) states central actors (3) order
  through balance or hegemony
• Marxism (1) world as arena for center-periphery
  conflict (2) states and classes central actors
  (3) order through (undesirable) dominance

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Trade

• Cooperation through negotiation rounds
• From tariffs to non-tariff barriers (NTBs)
• Increasing institutionalization (WTO)
• Increasing regionalization trade blocks or trade
  creators?
• Regime interplay how handle conflict with
  environmental and social concerns?

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Exchange rates

• Breakdown of Bretton Woods system no new global
  exchange rate regime
• IMF has had to seek a new role
• Capital deregulation ? increasing capital flows ?
  growing exchange rate volatility
• EMU attempt at regional exchange rate cooperation

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Credit

• World Bank and IMF global institutions
• 1970s deregulation and creation of international
  credit market (Eurodollars)
• 1980s-1990s debt crisis, debt relief plans
• 2000s credit crises
• Institutions in the cross-fire (a)
  conditionality, (b) moral hazard

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Production

• Multinational corporations helping hands or
  sources of exploitation?
• Concern in developed countries about the risk for
  a race to the bottom
• Limited international rule systems (but ethical
  codes of conduct)
• EU attempts to prevent unfair competition on the
  internal market

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Contact

• jonas.tallberg_at_statsvet.su.se