Global Systems: Resugence Of Nationalism

Question 1

What are sovereign wealth funds?

Answer 1

SWFs are state-owned investment funds that manage and invest a country’s wealth, typically derived from excess reserves, natural resources, or government surpluses, to promote long-term economic growth and financial stability.

The UK is the most popular world destination for SWF investment (China invests in: HS2, Canary Wharf, 9% of Thames Water, Hinkley Point C Nuclear Power Station, Manchester airport…)

Hong Kong: invested 2.5bn pounds into Northumbrian water
Abu Dhabi: invested in Manchester City FC

Question 2

What are the effects of Brexit?

Answer 2

The UK’s referendum result and the tough nationalist rhetoric of some prominent world leaders could suggest global support for international cooperation is waning

Question 3

Examples of expanding global partnerships

Answer 3

-New trade deals are being struck (e.g the EU and Canada - 2017)-
- Pacific Rim Pact (TPP) is making progress, despite USA leaving
- Russia is working closely with India, Turkey and China (China is now the leading destination for Russian exports, from $20 bn - $40 bn between 2016 - 2018)
- No sign of declining inward investment into popular outsourcing destinations like Bangladesh and India

Question 4

What is the globalist perspective?

Answer 4

Intergovernmental agreements and institutions, open borders cultural diversity, global injustices as a priority for action, global injustices as a priority for action, global citizenship. Mainstream media can see this view as an ‘elite project’

Question 5

Examples of nationalist politics

Answer 5

• Trump (2018) - Decleration of the want to build a wall between America and Mexico
• Jair Boisonaro (2018) - President of Brazil
• The UK (2020) - Brexit
• Russia (2014) - The annexation of Crimea

Question 6

What is the nationalist perspective?

Answer 6

Political sovereignity, closed borders, barriers to trade, cultural homogeneity, local injustices are the main priority, national citizenship

Question 7

Neoliberalism, deregulation and privatisation

Answer 7

• Neoliberalism is a political and economic philosophy
• Two core beliefs: Government intervention in markets = a hinderance : Trickle down
• Deregulation in London (1986) removed large amounts of red tape —> leading global centre for finance and home for billionaires
• Until 1980s, important assets such as railways and energy supplies were state owned: sold to investors: successive UK governments encouraged foreign investors to compete for a stake in privatised national services and infrastructure
• Energy company EDF owned by ELectricite de France

Question 8

Non-participation examples

Answer 8

Since 2000, Bolivia’s Evo Morales, Zimbabwe’s Robert Mugabe and North Korea’s Kim Jong-Un have all resisted globalisation. Before his death in 2013, Venezuela’s Hugo Chavez called repeatedly for Latin America and Caribbean countries to resist the ‘free market neoliberal order’:
- He rejected the IMF and World Bank offers of support for Venezuela while taking back control of oil operations inside the country which TNCs like chevron, Exxon Mobil and BP had invested in

Question 9

Is non-participation a viable alternative to more hands-on approaches to global affairs?

Answer 9

• Life expectancy in North Korea is 10 years lower than South Korea
• Zimbabwe has only just recovered from an episode of hyperinflation (interest rates reached 79 billion %)
• Falling oil prices in 2015-16 crippled Venezuela’s development model —> devaluation of the currency, hyperinflation and mass out-migration (UN estimates 3 million / 10% have left)

Question 10

What is laissez-faire economics and what are some examples?

Answer 10

• Allowing market forces to operate
• Successive British governments = relaxed attitude towards FDI = the UK is the world’s biggest market for foreign takeovers —> Cadbury acquired by US conglomerate Kraft in 2010 —> Jaguar Land Rover sold to India’s Tata Motors —> - Chinese investors = large stake in Thames water
• French and Italian governments monitor and halt unwanted foreign takeovers in strategically important sectors such as energy, defence, telecoms and food
• Commitee on Foreign Investment in US closely scrutinises foreign takeovers
• US government permits use of ‘poison pill’ strategies - when threatened by a hostile takeovers, firms can dilute the value of their shares
• India requires that TNCs work in partnership with Indian companies
• China’s government blocked Coca-Cola’s acquisition of Huiyuan Juice in 2008