GLOBAL GOVERNANCE
Ally Edwards, Kiah Thorn, Ebony
Smallman, Julienne Lam, Savannah
Haynes, Adam Klein, Shadi Bushra
Meyer, Boli, Katzenstein
        Stiglitz
                                and Keohane



     Globalization            Globalization = form of
                              international organizational
          =
                              model
mechanism of governance

                              Perpetuates
Can be used for good if       standards/policies that do
smaller powers are better     not make progress
represented
Ideals of globalization
           __

Realities of globalization
Universal
Declaration of
Human Rights
                   World Society and the
                   Nation-State

  Formal Structure as      IMF: Globalism‟s
  Myth and Ceremony          Discontent
                                  World Trade
                                  Organization
                 Democratizing
                  Globalization



                           International Organization and the
                                 Study of World Politics
Universal Declaration of Human Rights



 Ally Edwards




                           Eleanor Roosevelt, November 1949
History of the Declaration
• Born out of the atrocities of WWII
• Championed by Eleanor Roosevelt
• It was presented Dec 10, 1948
• Primarily political
• Generally, not considered legislative
  • Whether some countries define UDHR as legal document  up for
    debate
  • US not in favor of UDHR to be considered law
Praise for the UDHR
• “an international document of the first order of
 importance”
                           -- Charles Malik, Lebanese
                              diplomat

• “It may well become the international Magna Carta of all
 men everywhere.”
                                 -- Eleanor Roosevelt

• “one of the highest expressions of the human
 conscience of our time”
                                 -- Pope John Paul II
Criticisms of the UDHR
• Unenforceable
• Biased: pro-Western
• Missing minority rights,
                                                     International
  right to petition, and                                  Law
  right to resist oppression
• Can we call it
  “international law”?               Non-Political                      Political

  • Morgenthau: international law
   can be split into
   political and          Enables powers (small and large) to    Legislative; challenges
   non-political facets         pursue their interests             world superpowers

   of international law
The Document Itself: DIGNITY
• Preamble: “Whereas recognition of the inherent dignity
  and of the equal and inalienable rights of all members of
  the human family...”
• Art 1: “All human beings are born free and equal in
  dignity and rights.”
• Art 3: “Everyone has the right to life, liberty and the
  security of person.”
The Document Itself: Western Bias?
• Art 4: “No one shall be held in slavery...”
• Art 5: “No one shall be subjected to torture...”
• Art 16: “Right to marry and found a family...”
• Art 23: “Right to equal pay ... and trade unions...”
• Art 10: “Everyone is entitled to a fair and public hearing by
    an independent and impartial tribunal”
•   Art 11(1): “Right to be presumed innocent until proven guilty
    according to law in a public trial at which he has all the
    guarantees necessary for his defense.”
•   Art 21: “right to take part in the government of his country”
•   Art 24: “right to rest and leisure”
•   Article 25(2): “Motherhood and childhood are entitled to
    special care and assistance”
UDHR: An Ideal of Global Governance
• Becomes more idyllic and unrealistic as it goes on


• Article 30 assures that no person or State may engage in
 activity that may destroy any of the rights or freedoms stated
 in the Declaration – does this undermine globalization
 efforts?  Can‟t truly work, but can help guide


                                                Education
     All humans
                            All are            shall be free
       born free
                             equal               and shall
     and equal in
                           before the          promote the
      dignity and
                              law               activities of
         rights
                                                  the UN
World Society and the Nation State
                    -- John W. Meyer
                       John Boli,
                       George M. Thomas
                           and
                       Francisco Ramirez

                              Kiah Thorn
Structural Isomorphism
                  • Realist theories  One would
                    expect striking diversity in
                    political units around the
                    world and in social life
                  • Instead, isomorphic
                    developments lead to
                    surprising levels of similarity
                    between countries.
                    • Mass schooling systems organized
                        around a standard curriculum
                    •   Constitutional forms expressing both
                        power and individual rights
                    •   Rationalized economic and
                        demographic record keeping/
                        presence of a Central Bank
                    •   Expanded human rights in general
                    •   Standard definitions of disease and
                        health care
In a nutshell…
• Worldwide models define and
 legitimate agendas for local
 and national action, shaping
 the structures, policies and
 expectations of the modern
 nation-state in virtually all
 domains of social life
 • Business
 • Politics
 • Education
 • Medicine/Science
 • Family
 • Human/Gender/Child rights
Newly “Discovered” Isle of Globalization

                         We can identify the
                         range of possibilities
                         by looking at what has
                         already happened to
                         practically all of the
                         societies of the world
                         after discovery and
                         incorporation into
                         world society.
Why?
• World models are more highly codified and publicized
  than ever.
• World society organizations devoted to “educating” and
  “advising” about existing models are more numerous
  and active than ever.
• Media and other communications dominated by pre-
  existing world models are more accessible than ever.

In conclusion: Because of these
  pressures, governments are more willing to acquiesce
  to world standards and to play by pre-existing rules that
  they did not write and in which they may continue to
  have little say.
What processes in world society drive
     and shape isomorphism in
          Nation-States?
#1 Construction of nation-state identity
and purpose
 • Nation-State Identity is based on a system
   of external recognition
 • Particularly dependent on formal
   recognition from the dominant powers
 • Problem 1: Simple mimesis does not solve
   substantive problems that are unique on a
   national level.
 • Problem 2: Once recognition has been
   achieved, there is an increased emphasis
   on sovereignty at all costs. This occurs
   despite the fact that sovereignty does not
   preclude and may even increase instability
   within the government and nation.
#2 Systemic maintenance of nation-state
        actor identity
          • Occurs from above and within the nation-state
          • By mere existence, nation-states are inherently
            defined as being committed to certain self-
            evident goals (e.g. socio-economic
            development, citizen rights etc.)
          • If a nation-state does not put proper or
            expected policies in place to achieve these
            goals, world-society organizations step in.
          • Local actors can rely on legitimacy myths
            (democracy, freedom, equality) to activate the
            support of external groups to oppose the
            regime.
#3 Legitimation of sub-national actors and
practices
 • Nation-states are identity-supplying to
   their citizens.
 • Nation-state governments create
   agencies and programs that support
   domestic actors (e.g. education, public
   health, economic stimulation).
 • Citizen watchdogs serve as another force
   to ensure that the nation follows world
   standards.
    • Education
    • Media
    • External Organizations
Benefits to Nation-States Conforming to Pre-existing
Models and Measures: Why Reinvent the Wheel?
                      • Already available
                      • Morally Compelling
                      • Easy to identify and decry
                        failures
                      • Economic Incentive*
                      • Pre-determined prescriptions
                        about standardized social
                        actors/policies that should be
                        engaged to resolve these newly
                        recognized problems
Potential Problems/Disadvantages
• What does this mean for
 developing vs. developed
 countries (Global North vs.
 Global South etc.)?
  • Who is currently running the
    majority of world institutions? What
    sort of voice do those who are not
    in charge have?
  • Who wrote the rules for the current
    global standards? And who are
    they in favor of/biased towards (if
    anyone)?
  • How much individual nation
    deviation is permitted and what
    effect(s) does this have on a
    nation‟s ability to thrive?
Institutionalized organizations: Formal
Structure as Myth and Ceremony
                   -- John W. Meyer,
                      Brian Rowan (1977)

Adam Klein
Neo-institutionalism
Explains isomorphism, or why so many
  organizations have similar formal structures:
• Organizations do not act out of rationality
 • Rather, they act based on the norms of other
   organizations
   • Even if these norms are inefficient

• Institutional environments affect the way in which
 new institutions are created
 • Only institutions that incorporate preexisting practices
   gain legitimacy and survive
Organization Theory
• Attempts to explain how rationalized formal
 structures came to be.
 • The underlying assumption being that rational
  formal structure is the best form of coordinating
  activities.
   • The problem: The assumption that formal
    organizations have succeeded based on the
    coordination of activities is wrong, according to Meyer
    and Rowan.
    • Research shows that organizations do not follow the
      central, “coordinating” structure of the organization.
Main Point
• The formal structures of international
 organizations are not reflective of their day-
 to-day operations, rather they are just a
 collection of the myths of their institutional
 environment.
 • Example of rationalized myths include:
   • Universalism, contracts, and expertise
   • Econometric analyses
   • Education system
What This Means: Globalization
• The more centralized and integrated a state is,
  the stronger the extent to which these rationalized
  myths of rules and procedures become
  institutional requirements.
• In an institutional environment, organizations look
  to outside „experts‟ for validation
Problems with Institutionalized Organizations
 • Rules/myths come from different parts of
   the environment, so they may conflict
 • Demands for efficiency create tension with
   efforts to conform
  • Organizations may be sacrificing efficiency in
   exchange for legitimacy/survival
    • For example, a Nobel Prize winning professor brings
     legitimacy and respect, but not efficient on return per
     dollar
Working Within This System
• Decoupling
 • Organizations can show similarity in formal
  structures, but diversity in actual practice
• Logic of confidence
 • Avoidance, discretion, overlooking (to maintain
   face)
 • Rituals of confidence and good faith
International Monetary Fund:
Globalism’s Discontents
                -- Joseph Stiglitz
Ebony Smallman
Debate (recap from last week)
• Prosperity vs Problems
• Destroying cultures and increasing poverty?
• Distributing benefits (equitably or not?)
• Stiglitz: globalization means different things in
 different places
IMF Ideology
• Ideology from the finance world
• Concerns about special interest groups
• Tradeoff between inflation and unemployment
• Unfair Trade agenda: set by north, policies better
 for developing countries
East Asia: Before Institutional Interference
• Management of globalization
• Controlled engagement in world economy
• Grown the fastest
• Reduced poverty
• Went against the „Washington Consensus‟
• Financial markets highly regulated
IMF: top-down governance
• Top-down approach
• Idea of „market fundamentalism‟
• Stiglitz argues that globalization is not necessarily
  bad, it just depends on how the transition is
  managed
• Globalization with the help of institutions e.g. IMF
  have not fared as well
• When the IMF and pressure from US Treasury
  stripped East Asia of regulations, that is when
  they started to encounter problems
Negatives
• Increased tax burden on middle and poor classes
• Hot money problem
• Loss of jobs and creation of poverty
• Ad hoc governance
• Lack of accountability
Suggestions
• Lack of suggestions from Stiglitz
• Liberalization at a slower rate
• IMF needs a broader vision of society and the
  role of economics
• Address concerns that it is governed by and for
  special corporate and financial interests
• Differentiate recommendations/policies
• One sided view – lets look at other institutions!
Fair Trade for All: The WTO
                 -- Stiglitz, Charlton

Julienne Lam
World Trade Organization
• The WTO agreements are negotiated by the majority of
    the world‟s trading nations
•   The goal is to help producers of goods and
    services, exporters, and importers conduct their business
•   The WTO agreements cover goods, services and
    intellectual property.
•   They spell out the principles of liberalization, and the
    permitted exceptions.
•   They include individual countries‟ commitments to lower
    customs tariffs and other trade barriers.
•   They set procedures for settling disputes.
What Constitutes a “Fair Trade”


• Any agreement that differentially hurts developing
 countries more or benefits developed countries more
 should be presumptively viewed as unfair. In any case, a
 fair agreement aspires to have fair outcomes produced by
 fair, apparent procedures.

• Transparency is one of the most important factors of a fair
 trade as more voices can be heard during the negotiation
 process and it limits abuse by the most powerful.
Countries of the WTO
Least Developed Countries
• Limited human capital and productive capacity
• Weak institutions
• Geographical handicaps
• Poor Soil, Vulnerability to natural disasters, communicable
    diseases,
•   Poorly diversified industries and underdeveloped markets
•   Limited access to education, health, and other social
    services
•   Poor infrastructure
•   & Lack of access to information and communication
    technologies.
Special and Differential Treatment (SDT)


The SDT are special conditions for LDC‟s which allow
developed countries to give them special rights and treat
them more favorably than other members of the WTO.
Opposition to STD

• Abrogation to reciprocity


• Leads to ineffective protectionist trade policies


• Trade liberalization leads to a long adjustment
 period that may result in more costs than benefits
Doha Round Market Access Proposal
(MAP)




WTO members would provide free market access in all goods to developing
countries smaller and poorer than themselves.
Market Access Proposal (MAP)

• Smallest and poorest countries benefit the most
• Largest and richest countries are liberalizing the
  most
• Does not demand complete reciprocity from poor
  to rich nations
Democratizing Globalization
                  - Joseph Stiglitz

Savannah Haynes
Making Globalization Work
• Globalization itself isn‟t the   • Its current management is.
 issue.
Key Issue
• Economic globalization has outpaced
political globalization.

• Two major outcomes of this imbalance:
 • Growing inequality
 • A democratic deficit in international
  organizations
The Threat of Outsourcing
• Lessons Learned: US and other service-oriented
 economies aren‟t immune.

• “Upskilling” citizens doesn‟t seem to be enough.


• Complete integration  one global nation.
  • Average wages for unskilled labor in developed nations
    will drop.
  • Average wages overall increase, but wages at the
    bottom will decrease.
Possible Responses (3)
• Do nothing


• Resist Fair Globalization


• Reform
Cope With and
Shape
Globalization
• Developed nations –
 accept the
 depression of wages
 for unskilled labor
  • Implement
    measures to deal
    with this (more
    progressive
    income
    taxes, “upskilling”,
    research).
The Democratic Deficit
• International Organizations reflect the interests of
 large industrialized nations.
 • Local thinking
 • Declining confidence in IOs


• Response
  • Look at methods of international decision making more
    carefully.
Major Elements of Reform

• Changes in Voting Structure
• Changes in Representation
• Increased Transparency
• Conflict-of Interest Rules
• Improved Accountability
• Better Judicial Procedures
• Better Enforcement of Rule of Law
“This is not how it is supposed to
be. We can make globalization work,
not just for the rich and powerful but
also for all people, including those
in the poorest countries…The time
to begin is now.”
                   -- Joseph Stiglitz
International Organization and the
Study of World Politics
                  -- Katzenstein, Keohane,
                     and Krasner

Shadi Bushra
Academia ≠ Policy
Academia is also not uniform in its
            opinions.
Academia is also not uniform in its
            opinions.

    Especially political science.
Although policy and academia are
sometimes separated by a huge
gulf...
Although policy and academia are
sometimes separated by a huge
gulf...

  Scholars (like everyone else) are
  influenced by real-world events.
Let‟s trace some historical events
    and how they‟ve influenced
 academics studying international
            organizations
   (particularly those related to
political economy: WTO, IMF, etc.)
1940s and 1950s
1940s and 1950s
“[International organization scholars]
had the task of analyzing both the
formation of new international
organizations and the superpower
rivalry that threatened to kill or maim
them at birth”
1940s and 1950s
But scholars were sharply focused on
realist assumptions of self-interested
nations and their work did not stray
from the analysis of formal international
organizations.
1940s and 1950s
Behavioralism only entered as
statistical analysis of UN voting
patterns.
1960s and 1970s
1960s and 1970s
“European integration as an intellectual
opening”
1960s and 1970s
Rise of int‟l political economy:
   - Liberals rejoice!
1960s and 1970s
Rise of int‟l political economy:
   - Liberals rejoice!
   - Realist reaction
1960s and 1970s
Rise of statism
Post Cold War

Rationalism: Reshaping of liberalism
            and realism
Post Cold War

Constructivism: Revival of sociological
      and cultural perspectives
Author‟s Conclusion

  Despite the seemingly incompatible
 different theories, we can continue to
     respect their differences while
 borrowing and blending their specific
            research methods.
SYNTHESIS

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IR165 A Week 2 Presentation

  • 1. GLOBAL GOVERNANCE Ally Edwards, Kiah Thorn, Ebony Smallman, Julienne Lam, Savannah Haynes, Adam Klein, Shadi Bushra
  • 2. Meyer, Boli, Katzenstein Stiglitz and Keohane Globalization Globalization = form of international organizational = model mechanism of governance Perpetuates Can be used for good if standards/policies that do smaller powers are better not make progress represented
  • 3. Ideals of globalization __ Realities of globalization
  • 4. Universal Declaration of Human Rights World Society and the Nation-State Formal Structure as IMF: Globalism‟s Myth and Ceremony Discontent World Trade Organization Democratizing Globalization International Organization and the Study of World Politics
  • 5. Universal Declaration of Human Rights Ally Edwards Eleanor Roosevelt, November 1949
  • 6. History of the Declaration • Born out of the atrocities of WWII • Championed by Eleanor Roosevelt • It was presented Dec 10, 1948 • Primarily political • Generally, not considered legislative • Whether some countries define UDHR as legal document  up for debate • US not in favor of UDHR to be considered law
  • 7. Praise for the UDHR • “an international document of the first order of importance” -- Charles Malik, Lebanese diplomat • “It may well become the international Magna Carta of all men everywhere.” -- Eleanor Roosevelt • “one of the highest expressions of the human conscience of our time” -- Pope John Paul II
  • 8. Criticisms of the UDHR • Unenforceable • Biased: pro-Western • Missing minority rights, International right to petition, and Law right to resist oppression • Can we call it “international law”? Non-Political Political • Morgenthau: international law can be split into political and Enables powers (small and large) to Legislative; challenges non-political facets pursue their interests world superpowers of international law
  • 9. The Document Itself: DIGNITY • Preamble: “Whereas recognition of the inherent dignity and of the equal and inalienable rights of all members of the human family...” • Art 1: “All human beings are born free and equal in dignity and rights.” • Art 3: “Everyone has the right to life, liberty and the security of person.”
  • 10. The Document Itself: Western Bias? • Art 4: “No one shall be held in slavery...” • Art 5: “No one shall be subjected to torture...” • Art 16: “Right to marry and found a family...” • Art 23: “Right to equal pay ... and trade unions...” • Art 10: “Everyone is entitled to a fair and public hearing by an independent and impartial tribunal” • Art 11(1): “Right to be presumed innocent until proven guilty according to law in a public trial at which he has all the guarantees necessary for his defense.” • Art 21: “right to take part in the government of his country” • Art 24: “right to rest and leisure” • Article 25(2): “Motherhood and childhood are entitled to special care and assistance”
  • 11. UDHR: An Ideal of Global Governance • Becomes more idyllic and unrealistic as it goes on • Article 30 assures that no person or State may engage in activity that may destroy any of the rights or freedoms stated in the Declaration – does this undermine globalization efforts?  Can‟t truly work, but can help guide Education All humans All are shall be free born free equal and shall and equal in before the promote the dignity and law activities of rights the UN
  • 12. World Society and the Nation State -- John W. Meyer John Boli, George M. Thomas and Francisco Ramirez Kiah Thorn
  • 13. Structural Isomorphism • Realist theories  One would expect striking diversity in political units around the world and in social life • Instead, isomorphic developments lead to surprising levels of similarity between countries. • Mass schooling systems organized around a standard curriculum • Constitutional forms expressing both power and individual rights • Rationalized economic and demographic record keeping/ presence of a Central Bank • Expanded human rights in general • Standard definitions of disease and health care
  • 14. In a nutshell… • Worldwide models define and legitimate agendas for local and national action, shaping the structures, policies and expectations of the modern nation-state in virtually all domains of social life • Business • Politics • Education • Medicine/Science • Family • Human/Gender/Child rights
  • 15. Newly “Discovered” Isle of Globalization We can identify the range of possibilities by looking at what has already happened to practically all of the societies of the world after discovery and incorporation into world society.
  • 16. Why? • World models are more highly codified and publicized than ever. • World society organizations devoted to “educating” and “advising” about existing models are more numerous and active than ever. • Media and other communications dominated by pre- existing world models are more accessible than ever. In conclusion: Because of these pressures, governments are more willing to acquiesce to world standards and to play by pre-existing rules that they did not write and in which they may continue to have little say.
  • 17. What processes in world society drive and shape isomorphism in Nation-States?
  • 18. #1 Construction of nation-state identity and purpose • Nation-State Identity is based on a system of external recognition • Particularly dependent on formal recognition from the dominant powers • Problem 1: Simple mimesis does not solve substantive problems that are unique on a national level. • Problem 2: Once recognition has been achieved, there is an increased emphasis on sovereignty at all costs. This occurs despite the fact that sovereignty does not preclude and may even increase instability within the government and nation.
  • 19. #2 Systemic maintenance of nation-state actor identity • Occurs from above and within the nation-state • By mere existence, nation-states are inherently defined as being committed to certain self- evident goals (e.g. socio-economic development, citizen rights etc.) • If a nation-state does not put proper or expected policies in place to achieve these goals, world-society organizations step in. • Local actors can rely on legitimacy myths (democracy, freedom, equality) to activate the support of external groups to oppose the regime.
  • 20. #3 Legitimation of sub-national actors and practices • Nation-states are identity-supplying to their citizens. • Nation-state governments create agencies and programs that support domestic actors (e.g. education, public health, economic stimulation). • Citizen watchdogs serve as another force to ensure that the nation follows world standards. • Education • Media • External Organizations
  • 21. Benefits to Nation-States Conforming to Pre-existing Models and Measures: Why Reinvent the Wheel? • Already available • Morally Compelling • Easy to identify and decry failures • Economic Incentive* • Pre-determined prescriptions about standardized social actors/policies that should be engaged to resolve these newly recognized problems
  • 22. Potential Problems/Disadvantages • What does this mean for developing vs. developed countries (Global North vs. Global South etc.)? • Who is currently running the majority of world institutions? What sort of voice do those who are not in charge have? • Who wrote the rules for the current global standards? And who are they in favor of/biased towards (if anyone)? • How much individual nation deviation is permitted and what effect(s) does this have on a nation‟s ability to thrive?
  • 23. Institutionalized organizations: Formal Structure as Myth and Ceremony -- John W. Meyer, Brian Rowan (1977) Adam Klein
  • 24. Neo-institutionalism Explains isomorphism, or why so many organizations have similar formal structures: • Organizations do not act out of rationality • Rather, they act based on the norms of other organizations • Even if these norms are inefficient • Institutional environments affect the way in which new institutions are created • Only institutions that incorporate preexisting practices gain legitimacy and survive
  • 25. Organization Theory • Attempts to explain how rationalized formal structures came to be. • The underlying assumption being that rational formal structure is the best form of coordinating activities. • The problem: The assumption that formal organizations have succeeded based on the coordination of activities is wrong, according to Meyer and Rowan. • Research shows that organizations do not follow the central, “coordinating” structure of the organization.
  • 26. Main Point • The formal structures of international organizations are not reflective of their day- to-day operations, rather they are just a collection of the myths of their institutional environment. • Example of rationalized myths include: • Universalism, contracts, and expertise • Econometric analyses • Education system
  • 27. What This Means: Globalization • The more centralized and integrated a state is, the stronger the extent to which these rationalized myths of rules and procedures become institutional requirements. • In an institutional environment, organizations look to outside „experts‟ for validation
  • 28. Problems with Institutionalized Organizations • Rules/myths come from different parts of the environment, so they may conflict • Demands for efficiency create tension with efforts to conform • Organizations may be sacrificing efficiency in exchange for legitimacy/survival • For example, a Nobel Prize winning professor brings legitimacy and respect, but not efficient on return per dollar
  • 29. Working Within This System • Decoupling • Organizations can show similarity in formal structures, but diversity in actual practice • Logic of confidence • Avoidance, discretion, overlooking (to maintain face) • Rituals of confidence and good faith
  • 30. International Monetary Fund: Globalism’s Discontents -- Joseph Stiglitz Ebony Smallman
  • 31. Debate (recap from last week) • Prosperity vs Problems • Destroying cultures and increasing poverty? • Distributing benefits (equitably or not?) • Stiglitz: globalization means different things in different places
  • 32. IMF Ideology • Ideology from the finance world • Concerns about special interest groups • Tradeoff between inflation and unemployment • Unfair Trade agenda: set by north, policies better for developing countries
  • 33. East Asia: Before Institutional Interference • Management of globalization • Controlled engagement in world economy • Grown the fastest • Reduced poverty • Went against the „Washington Consensus‟ • Financial markets highly regulated
  • 34. IMF: top-down governance • Top-down approach • Idea of „market fundamentalism‟ • Stiglitz argues that globalization is not necessarily bad, it just depends on how the transition is managed • Globalization with the help of institutions e.g. IMF have not fared as well • When the IMF and pressure from US Treasury stripped East Asia of regulations, that is when they started to encounter problems
  • 35. Negatives • Increased tax burden on middle and poor classes • Hot money problem • Loss of jobs and creation of poverty • Ad hoc governance • Lack of accountability
  • 36. Suggestions • Lack of suggestions from Stiglitz • Liberalization at a slower rate • IMF needs a broader vision of society and the role of economics • Address concerns that it is governed by and for special corporate and financial interests • Differentiate recommendations/policies • One sided view – lets look at other institutions!
  • 37. Fair Trade for All: The WTO -- Stiglitz, Charlton Julienne Lam
  • 38. World Trade Organization • The WTO agreements are negotiated by the majority of the world‟s trading nations • The goal is to help producers of goods and services, exporters, and importers conduct their business • The WTO agreements cover goods, services and intellectual property. • They spell out the principles of liberalization, and the permitted exceptions. • They include individual countries‟ commitments to lower customs tariffs and other trade barriers. • They set procedures for settling disputes.
  • 39. What Constitutes a “Fair Trade” • Any agreement that differentially hurts developing countries more or benefits developed countries more should be presumptively viewed as unfair. In any case, a fair agreement aspires to have fair outcomes produced by fair, apparent procedures. • Transparency is one of the most important factors of a fair trade as more voices can be heard during the negotiation process and it limits abuse by the most powerful.
  • 41. Least Developed Countries • Limited human capital and productive capacity • Weak institutions • Geographical handicaps • Poor Soil, Vulnerability to natural disasters, communicable diseases, • Poorly diversified industries and underdeveloped markets • Limited access to education, health, and other social services • Poor infrastructure • & Lack of access to information and communication technologies.
  • 42. Special and Differential Treatment (SDT) The SDT are special conditions for LDC‟s which allow developed countries to give them special rights and treat them more favorably than other members of the WTO.
  • 43. Opposition to STD • Abrogation to reciprocity • Leads to ineffective protectionist trade policies • Trade liberalization leads to a long adjustment period that may result in more costs than benefits
  • 44. Doha Round Market Access Proposal (MAP) WTO members would provide free market access in all goods to developing countries smaller and poorer than themselves.
  • 45. Market Access Proposal (MAP) • Smallest and poorest countries benefit the most • Largest and richest countries are liberalizing the most • Does not demand complete reciprocity from poor to rich nations
  • 46. Democratizing Globalization - Joseph Stiglitz Savannah Haynes
  • 47. Making Globalization Work • Globalization itself isn‟t the • Its current management is. issue.
  • 48. Key Issue • Economic globalization has outpaced political globalization. • Two major outcomes of this imbalance: • Growing inequality • A democratic deficit in international organizations
  • 49. The Threat of Outsourcing • Lessons Learned: US and other service-oriented economies aren‟t immune. • “Upskilling” citizens doesn‟t seem to be enough. • Complete integration  one global nation. • Average wages for unskilled labor in developed nations will drop. • Average wages overall increase, but wages at the bottom will decrease.
  • 50. Possible Responses (3) • Do nothing • Resist Fair Globalization • Reform
  • 51. Cope With and Shape Globalization • Developed nations – accept the depression of wages for unskilled labor • Implement measures to deal with this (more progressive income taxes, “upskilling”, research).
  • 52. The Democratic Deficit • International Organizations reflect the interests of large industrialized nations. • Local thinking • Declining confidence in IOs • Response • Look at methods of international decision making more carefully.
  • 53. Major Elements of Reform • Changes in Voting Structure • Changes in Representation • Increased Transparency • Conflict-of Interest Rules • Improved Accountability • Better Judicial Procedures • Better Enforcement of Rule of Law
  • 54. “This is not how it is supposed to be. We can make globalization work, not just for the rich and powerful but also for all people, including those in the poorest countries…The time to begin is now.” -- Joseph Stiglitz
  • 55. International Organization and the Study of World Politics -- Katzenstein, Keohane, and Krasner Shadi Bushra
  • 57. Academia is also not uniform in its opinions.
  • 58. Academia is also not uniform in its opinions. Especially political science.
  • 59. Although policy and academia are sometimes separated by a huge gulf...
  • 60. Although policy and academia are sometimes separated by a huge gulf... Scholars (like everyone else) are influenced by real-world events.
  • 61. Let‟s trace some historical events and how they‟ve influenced academics studying international organizations (particularly those related to political economy: WTO, IMF, etc.)
  • 63. 1940s and 1950s “[International organization scholars] had the task of analyzing both the formation of new international organizations and the superpower rivalry that threatened to kill or maim them at birth”
  • 64. 1940s and 1950s But scholars were sharply focused on realist assumptions of self-interested nations and their work did not stray from the analysis of formal international organizations.
  • 65. 1940s and 1950s Behavioralism only entered as statistical analysis of UN voting patterns.
  • 67. 1960s and 1970s “European integration as an intellectual opening”
  • 68. 1960s and 1970s Rise of int‟l political economy: - Liberals rejoice!
  • 69. 1960s and 1970s Rise of int‟l political economy: - Liberals rejoice! - Realist reaction
  • 70. 1960s and 1970s Rise of statism
  • 71. Post Cold War Rationalism: Reshaping of liberalism and realism
  • 72. Post Cold War Constructivism: Revival of sociological and cultural perspectives
  • 73. Author‟s Conclusion Despite the seemingly incompatible different theories, we can continue to respect their differences while borrowing and blending their specific research methods.