Skip to main content
main-content

Über dieses Buch

This book discusses the economic and geopolitical effects of globalization from historical and institutional perspectives. While it has had unintended consequences, such as displacing developed countries' dominance of production markets, the overall benefits of globalization far outweigh the costs. Moak argues that leading developed nations should not fear globalization but, instead, make concerted efforts to promote it in order to keep the cost-benefit balance weighing in favor of economic enhancement and geopolitical stability. Having incurred huge private and public debts as well as a weak monetary policy posture, many developed nations have been unable to recovery from the 2008 financial crisis. Moreover, geopolitical tensions are rising due to the power rivalry between the United States, China, and Russia over a host issues, including trade imbalances and geopolitics. This book aims to provide stakeholders with the relevant and necessary information to hold an objective debate on globalization. Ultimately, this book is about globalization— what it is, how it impacts the global economy and polity, and why it is needed now more than any other time in human history.

Inhaltsverzeichnis

Frontmatter

Chapter 1. A Summary Analysis of the Globalization’s Dynamism

Abstract
Globalization is a hot topic because proponents determine to push it forward but opponents demand de-globalization, ending international trade and immigration in particular. Unfettered international trade and investment has benefitted most but displaced some in the West, culminating in the election of Donald Trump as the U.S. President, Brexit victory in the United Kingdom, and rise of populism in Europe. The developing economies, particularly China, on the other hand, have benefitted from globalization, leading to a shift in the economic and geopolitical order.
Ken Moak

Chapter 2. Globalization: Drivers and Effects

Abstract
Globalization means different things to different people, but scholars define it in terms of economics, polity, and culture. The economics part refers to unfettered trade and investment, based on David Richard’s theory of comparative advantage. The political part is on institutional changes within and without national borders, in that of nations ceding power to a supranational organization to attain a stronger voice in the global community. The cultural aspect of globalization is the international movement of people and the arts. Its mixed results have culminated in the rise of populism and protectionism in the West.
Ken Moak

Chapter 3. History of Globalization: European Colonization and Bretton Woods

Abstract
The Ottoman’s closing of the Silk Road, China’s ban on seafaring expeditions, and the Renaissance made European colonization in the fifteenth century and Bretton Woods possible. In seeking a sea route to China, France, Portugal, Spain, England, and the Netherlands conquered unknown lands, exploiting their resources, enslaving the indigenous population, and becoming rich and powerful. After a few decades of turbulence, the Allied Powers, the United States and the United Kingdom in particular, promoted international trade and investment as necessary for economic growth.
Ken Moak

Chapter 4. Bretton Woods International Trade and Financial Organizations

Abstract
The developed nations have dominated the global economic and financial orders since World War II. They established and governed the International Monetary Fund (IMF), World Bank, and Asian Development Bank to their advantage. In addition, the U.S. dollar became the world’s reserve currency, allowing it to be the global bank of last resort. The United States also instituted the Marshall Plan to help postwar European reconstruction and economic revival, conditional on the money being used to buy American products and that the recipient countries must adhere to U.S. democratic values and ideals.
Ken Moak

Chapter 5. GATT, Rounds of Negotiations, and the World Trade Organization

Abstract
The United States rejected the British-proposed International Trade Organization (ITO), replacing it with the General Agreement on Tariff and Trade (GATT). The GATT was to settle tariff issues on tradable goods only through rounds of negotiations. The developed economies were writing the global rules and regulations that were benefitting at the expense of the developing countries. Expansion in the world trade system and the growing clout of developing economies forced the developed countries to agree on establishing the World Trade Organization Uruguay Rounds that created the World Trade Organization (WTO).
Ken Moak

Chapter 6. Selected Bilateral and Regional Trade and Investment Agreements

Abstract
The Nixon Shock and the oil crisis’s adverse impact on the global economy prompted the establishment of first the G5, then G6, and finally G7 to address the impact of the two developments in 1976. Russia was added to the club at the invitation of British Prime Minister Tony Blair and U.S. President Bill Clinton, forming the G8. With Russia on its side, the world’s developed nations effectively controlled the global economic and geopolitical orders. Having Russia in the G8 was also expected to generate a “Cold War” dividend for the United States. However, Russia was kicked out of the club, being accused by the West of annexing the Crimea and causing trouble in the eastern part of the Ukraine. The 2008 financial crisis exposed the weaknesses of the G7/8, disenabling it from addressing global economic and financial issues. The task was turned over to the G20, a club made up of the world’s 19 largest economies plus the EU.
Ken Moak

Chapter 7. The Group of Seven and Group of Twenty

Abstract
Multilateral agreements do not meet the needs of all nations with different stages of development and resources, culminating in colliding interests. The multilateral trade agreement framework came under attack with Donald Trump elected as president of the United States, Brexit, and rising protectionism and populism in the West. Trump took the United States out of the Trans Pacific Partnership and gave notice to Canada and Mexico that he would renegotiate the North American Free Trade Agreement. However, China is promoting multilateral trade relationships in reviving negotiations on the Regional Comprehensive Economic Partnership (RCEP), creating the Free Trade Area of the Asia Pacific (FTAAP) which covers all 21 Asia Pacific Economic Cooperation (APEC) members.
Ken Moak

Chapter 8. The 2008 Global Financial Crisis: Effects on the Global Economy

Abstract
The 2008 financial crisis exposed the weaknesses of Anglo-American neoliberalism and revealed the extent of globalization. The global economy, particularly that of the developed nations, has yet to make a full recovery from the “Great Recession” that the crisis created. Many theories were advanced to explain why the crisis happened, ranging from financial system over-leveraging attributed to reckless behavior, a savings glut from Asia that induced private and public consumption in the United States, unsustainable U.S. fiscal and monetary policies, and the repeal of the U.S. Glass Steagall Act allowing commercial banks to involve in investment banking.
Ken Moak

Chapter 9. The Washington Consensus Versus The Beijing Consensus

Abstract
The Beijing Consensus could become an alternative to Anglo-American neoliberalism, presented by some in the West as a “one-size-fit-all” model for all developing countries. That neoliberal model, dubbed by John Williamson as the Washington Consensus, turned out to be more harmful than helpful to the countries that received loans from the IMF and WBG. The Beijing Consensus, a term coined by Joshua Cooper Ramo, has created a Chinese economic miracle, lifting it to become the second largest economy in the world and over 700 million people out of poverty within less than 40 years. Contrary to some pundits in the West predicting an imminent economic collapse, the Chinese economy continues to grow at an annual average of 6.5% and contributes to over 30% of global economic growth since 2008.
Ken Moak

Chapter 10. BRICS and China Initiated Global Trade Initiatives and Financial Institutions: Alternatives to the US-Dominated IMF and WBG and ADB

Abstract
The BRICS nations are reshaping the global financial and trade systems. China formed the Asian Infrastructure Investment Bank (AIIB) as an alternative source of funds for infrastructure investment in Asia. To wean its reliance on the developed countries’ markets and to enhance economic growth, China initiated the “One Belt, One Road” framework, reviving the ancient Silk Road trade routes to Europe by road, railway, and sea. To improve the countries’ economic prospects that are located along the route, China set up the Silk Road Fund (SRF) to invest in these countries industries. The BRICS countries—Brazil, Russia, India, China, and South Africa—established the New Development Bank (NDB) and Currency Emergency Reserve (CER), respectively, investing in high technology industries/infrastructures and weathering temporary currency issues.
Ken Moak

Chapter 11. The Future of Globalization: Should It Be Promoted or Ended?

Abstract
The economic, geopolitical, and demographic problems require the continuation of globalization more than ever in human history, albeit the West is increasingly turning isolationist and populist. Lacking domestic demand and effective monetary policy tools, the developed nations need access to external markets to revive long-term sustainable economic growth. The world is becoming increasingly dangerous because of heightened tensions between the United States/Europe/Japan on one side and China/Russia on the other. The West needs immigrants to sustain economic growth. Economies, particularly those between the United States and China, are increasingly intertwined with the establishment of an international supply chain and interdependency. The major powers need to establish a line of communication and cooperative mechanism to address serious global issues such as climate change and nuclear weapons proliferation.
Ken Moak

Chapter 12. A Final Word on Globalization

Abstract
There is no reason for the major powers’ falling into the “Thucydides Trap,” in that China is not challenging U.S. global hegemony. Indeed, it gladly lets America be the world’s “head honcho.” Instead of spending money and resources on policing the world, China would rather use the funds to address its many problems and enhance economic growth. However, long-term global economic and geopolitical stabilities require the major nations to cooperate on addressing the issues and sharing the benefits of globalization.
Ken Moak

Backmatter

Weitere Informationen

Premium Partner

    Bildnachweise