Globalization

 

neoliberalism

World Bank

IMF

 

neoliberal approach  - What is the origin of the word - liberal as in free or open (not as in Democrats...)

World Bank and International Monetary Fund (IMF) are seen as pushing neoliberal reforms.

Reduced role of government (cuts in government spending, reductions in trade barriers/regulation)

increased reliance on markets

 

Neoliberals feel that growth is good and that growth occurs by reducing government regulations - factors of production must be mobile.

 

Many conflate neoliberalism and globalization

 

The article by Collins and Miller challenges the assumption that the form of globalization that is happening – which is neoliberal – is good.

They also discuss what the role of the media is in perpetuating certain ideas.  Media dismisses those who critique argument that we need to reduce government and open borders.

 

What is globalization?

More mobility of resources (mainly capital, since labor is still restricted by laws), goods (trade) and services

Why has this happened?

1. changes in technology

         a. communication

         b. transportation

2. changes government policies (neoliberalism)

 

What are seen as benefits of free trade?

Higher growth and thus GDP/income (from PPC example we did in class)

 

Downsides:

Greater inequality (winners and losers)

Pollution (because firms seek out countries with less strict regulations)

 

Why is globalization dichotomized – free trade/isolation.

Miller and Collins argue that countries need to be able to control the pace and shape of globalization.

In other words, they reject a neoliberal notion of the economy, with minimum state intervention.