GEOLOGY 002 Lecture Notes - Lecture 20: World Trade Organization, International Monetary Fund, Economic Restructuring
Political and environmental globalisation
Political globalisation
- MNCs and banks have increased their significance in the global economy → nation state is no
longer the predominant institution controlling actions across borders
- Market-driven players are competing with national governments over rules and practices of
international trade
- States needed to be more business oriented – they have become entrepreneurial = investing, taking
risks
- Cooperation with the private sector – tax, employment, technology
Bretton Woods International Monetary System
= conventional wisdom
- 1930s depression convinced the US that the world market economy couldn’t be left to work itself –
countries needed to work together at a global level, rules were needed to make exchange rates
stable, trade barriers lowered
- 1944 - Churchill and Roosevelt – Bretton Woods –> 44 countries to agree on various policies, World
Bank and International Monetary Fund were created
- System disappeared with rise of other superpowers
- Super-national organisations promote the idea of international trade and liberalisation/free market
- EU, World Trade Organisation, G7, G20 → promote international trade, trade agreements,
economic blocks, special trade zones (very important for today’s world) BUT! Brexit, Trump, tariffs,
trade wars
New form of global governance
- Changes in governance – restructuring and reorientation of state power (public to private sector)
- The nation state - a set of institutions (legislative, executive, judicial) that operate for the whole
society with sovereign authority over a defined territory
- Private sector does things with no profit, e.g. military, welfare benefits, NHS, education (taxes)
o Changing role of the state
- Pre 20th century – limited state (government had to tax more to spend more)
- 20th century – nation states few substantially (welfare state)
- Late 20th century – reduction of the state (privatisation)
→ Functions lost from the state – outwards (to the market), upwards (to supranational
institutions), downwards (to localities)
- UK government lost some powers to the EU - result in Brexit, cities became more powerful
! There is some stuff private sector won’t do – climate change policies (there’s no profit – Severn
barrage), street lamps, welfare benefits, military. They sometimes finance education, housing, etc.
Document Summary
Mncs and banks have increased their significance in the global economy nation state is no longer the predominant institution controlling actions across borders. Market-driven players are competing with national governments over rules and practices of international trade. States needed to be more business oriented they have become entrepreneurial = investing, taking risks. Cooperation with the private sector tax, employment, technology. 1930s depression convinced the us that the world market economy couldn"t be left to work itself countries needed to work together at a global level, rules were needed to make exchange rates stable, trade barriers lowered. 1944 - churchill and roosevelt bretton woods > 44 countries to agree on various policies, world. System disappeared with rise of other superpowers. Super-national organisations promote the idea of international trade and liberalisation/free market. Eu, world trade organisation, g7, g20 promote international trade, trade agreements, economic blocks, special trade zones (very important for today"s world) but!
