TIU Tishk International University Faculty of

Transcript:TIU Tishk International University Faculty of:
TIU Tishk International University Faculty of Admin. Sciences & Economics Dept. IRD International Political Economy Code: IRD 306 HE Educator Dr Neville D’Cunha Professor of IRD Introduction to International Political Economy (IPE) I Local economic developments reflect global forces. In this “era of globalization,” the factors that shape our economic lives are as likely to originate in far away places as they are to stem from local events. Understanding the global economy requires knowledge of politics as well as economics. For globalization is not a spontaneous economic process; it is built on a political foundation. Studying the political and economic dimensions of the global economy requires us to develop theory that simplifies an inherently complex world. Dynamics of IPE Governments share a broad consensus on core principles; core principles inform the elaboration of specific rules. Specific rules establish international institutions --- the World Trade Organization (WTO), the World Bank, and the International Monetary Fund (IMF). These international institutions in turn facilitate a political process through which governments reduce barriers to global exchange and create common rule to regulate other elements of the global economy. This political system --- the foundation and the process --- has enabled businesses to construct the network of international economic linkages that constitute the economic dimension of globalization. Theoretical Framework – Part I This course is based on a theoretical framework in which politics in the global economy revolve around enduring competition between the winners and the losers generated by global economic exchange. Political economists speculate that global exchange raises aggregate social welfare. Yet, global exchange also creates winners and losers. For some, global exchange brings greater wealth and rising incomes; for others, however, the international economy brings job losses and lower incomes. These winners and losers compete to influence government policy. Theoretical Framework – Part II Those who profit from global exchange encourage governments to adopt policies that facilitate such exchange; those harmed by globalization encourage governments to adopt policies that restrict it. This competition is played out through domestic politics, where it is mediated by domestic political institutions, and it is played out through international politics, often within the major international institutions such as the G20 and the WTO. Living in a Global Economy - 1 We live in a global economy. Living in a global economy also means that global economic forces play a large role in determining many of our career opportunities.