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Flashcards in Globalisation, States and Markets Deck (22):

define soverignty

principal that within its territorial boundaries the state= supreme political authority, + outside those boundaries the states recognises no higher political authority


how do governments wield sovereignty

• States recognized as sovereign in international law
• but governments speak on their behalf // governments wield sovereignty


to what extent are governments powerful

• Governments powerful only to extent that leading social groups are able to mobilize support for policies, whether through force, ideology, or economic concessions
• // state power always being reconstituted in relation to conflicts between social forces


what does opening up black box mean

• Not conceptualising state as autonomous actor that stand above and 'does things' to their society, = more as a set of agencies and capacities that have come about and continue to be reconfigured in response to conflicts between social groups in a country
• What is framed in national policy (what benefits who)


what two broad catagories of policy does government use to shape how markets form and function

• Macroeconomic policy (fiscal, taxing and public spending)
• Microeconomic policy (labor regulations, industrial policy)


what are the three period of differing instutional arrangements of the liberal economic order

1. classical lib (1800s to early 1900s)
2. embedded (45-70)
3. neo (80- present)


explain classical liberalism

• Liberals advocated for equal rights, individualism, liberty, and minimal government interference in the economy
Context: decline of feudal system + push to hierarchy and opportunities focus on wealth rather than bloodline

- Urban poverty= necessary evil


what two key theories were implemented during embedded lib

protectionism : drove by great depression- government actions and policies that restrict or restrain international trade -employment a main focus

keynesianism: informing the Bretton Woods agreement
o States using fiscal
o Keynesianism: increased government expenditures to manage the business cycle


why term 'embedded'

bc policies of open trade + finance embedded in system of global economic governance that allowed states some autonomy to safeguard domestic economic objectives, particularly unemployment


explain context of neoliberalism

Nixon shock = managing domestic policy - to target high rate of unemployment, oil crisis >
- Keynesianism was at odds with the stagflation of the 1970s recession (high unemployment and high inflation)
o as was designed to target one not both = lengthened response + depression


what did keynesianism shift to during neoliberal era

monetarism: (governments controlling the amount of money in circulation to manage the business cycle)
o through interest rate (price of borrowing money


what does neoliberalism usually refer to

typically refers to economic policies that limit state intervention e.g. private property rights, lower trade barriers,


what are the focus points of neoliberalism

o Idea= reduce efficiency by introducing competition

o Human well-being (+ individual freedom) best advanced through institutional framework characterised by strong private property rights, free markets and free trade

o Interests reflect private property owners, businesses, multinational coprportations and financial capital

o Forms of social solidarity dissolved in favor of individualism, private property


what determines how communities are effected by globalisation (why uneven)

o individuals and communities are affected differently depending on how they are enmeshed in, or marginalised from, the world economy, creating a distinct geography of inclusion and exclusion


what is neoliberalism often associated with

restoration of power of economic elimites


define convergence theory

Globalisation will lead to convergence on the liberal market model
- • companies will move to where the costs of doing business are least, and states then have to compete for capital flows, leading to a decline in regulation + welfare state


what assumptions are incorrect for convergence theory

capital isn't perfect
markets not fully intergrated
welfare states impact economy competetiveness


explain dual convergence theory

Globalisation led to capitalist states managing economies = cluster around two types/models, liberal market (e.g. US) and social market models (e.g. Germany)
• Globalisation= similar demands on states, but respond in different ways


what assumptions are incorrect for dual convergence theory

suggesting regionalistion and triadisation, but hardly of globalisation
failed to produce the anticipated convergence in interest rates


what has the decline in welfare state resulted in

rise of regulatory state


why neoliberism isn't 'rolling back state'

more of a process of restructuring and re-tasking the state for new forms of intervention and regulation

- not a retreat of state but redefining of global governance


example of neoliberalism

mexico erected tariffs against import and tried to produce goods indepenfantly= debt crisis + integration in internaiotnl market