Global Political Economy with Reference to the United Kingdom and United States - Research Proposal Example

Global Political Economy with reference to the United Kingdom and United s Thesis ment The case against the minimalist in the era ofGlobalisation - Aims and objectives - To explore the role of the state the modern state in the era of globalisation and the relevant developmental consequences of this within the global political economy. To discusses the changing conceptions of the role of the state, a trend especially dominant in the nineties particularly in relation to the institutions like IMF and the World Bank (hereafter referred to as the Bretton Wood institutions or BWI's) - Rationale - The end of cold war has brought many changes in the international politics. Not only did we see a change from bi-polar world to uni-polar political scenario but also the changing nature of war.. The periods since the end of the cold war also gave rise to new complexities. The Cold War had presented a fragmentation of the global strategic balance. Things were made worse by the bitter realities of the Post Cold War era which had a negative perspective to conflict resolutions and peacemaking. On another level this "Big Brother" impetus can be labelled as being mainly based upon the political agenda of "democratisation and globalisation" of the world through multilateral agenda. The thesis concludes that this impetus is not based mainly upon the "fear of another communist takeover" which is still a Western Nightmare but that there is a more profound political and economic agenda underlying the efforts of the UK and the US to re-establish themselves at the heart of multi-lateral action through international agencies. - Methodology - This dissertation will rely heavily on Documentation review and a critical analysis of the Post cold war propaganda through the electronic and print media. Peer reviewed journals and political views will be searched through the Athens Server, The EBSCO host and the Proquest Portal. However the necessity for interviews is still tentative based upon the suitable search for an intellectual who will add to my political research and insight. Proposal This dissertation explores the role of the state the modern state in the era of globalisation and the relevant developmental consequences of this within the global political economy. The main concept is to discusses the changing conceptions of the role of the state,a trend especially dominant in the nineties particularly in relation to the institutions like IMF and the World Bank (hereafter referred to as the Bretton Wood institutions or BWI's) Also discussed in the paper will be the role of Market-Friendly Policies (MFP's)in de-emphasizing the role the State in the interests of promoting long term and efficient economic development. MFP's typically relate to low rates of inflation ,prudent government spending, high rates of investment and a healthy trend of market liberalisation. The Post World War II approach of the BWI's was based upon a much smaller role for the state following the era of the large-scale globalisation (so characteristic of the post cold war years) This was largely a response to the state controlled economy' of the USSR which turned out to be an economic and political disaster. The post world war agenda of the US and UK based BWI's was to discourage world political economies from any interference in the Economic system, and this new policy was nicknamed as the "Washington Consensus," a term coined by John Williamson, who defined his own set of reforms he believed that the policymakers in Washington should propose for Latin America, which included trade liberalization and the privatization of inward foreign Direct Investment(FDI) .The "Washington consensus" was used to describe the commonly shared goals /themes within the policy packages endorsed by Washington-based institutions at the time, such as the International Monetary Fund, World Bank, and U.S. Treasury Department. The Washington Consensus was later dubbed as the "neoliberal" agenda and received scathing criticism ,in that it that it caused the economic downfall of the developing countries It is said that the main reason for Argentines economic suffering in the 1999-2002 crisis has been the use of the "Washington consensus" package. Williamson himself admitted the failure of his consensus, "It is difficult even for the creator of the term to deny that the phrase "Washington Consensus" is a damaged brand name (Nam 2002). Audiences the world over seem to believe that this signifies a set of neoliberal policies that have been imposed on hapless countries by the Washington-based international financial institutions and have led them to crisis and misery. There are people who cannot utter the term without foaming at the mouth. 1" However the subsequent failure of this neo-liberalism has led the International Agencies to rethink and redefine the role of the state in the modern globalised world and the following discussion does just that.In this vein my thesis then explores a definition for Globalization which in the modern political world economy has become a term which has been used to describe and explain many different phenomena like greater economic integration across national borders. The concept is supported by those who agree with its trade and economic benefits yet those who criticise it believe that those who perceive it as a threat to social cohesion and an invasion of the "capitalist evils of the west" thus undermining state welfare. As at today the term denotes a kaleidoscopic image, a great variety of tendencies and trends in the economic, social and cultural spheres. It has to be noted that the modern State plays a significant role in economic intergration and the elaboration and adoption of market-oriented policies and regulations,internationally and locally.During the 1980s this integration intensified and there was an increase in "financial sector deregulation, the removal of controls over foreign exchange and enhanced freedom of trade. Financial deregulation has resulted in the progressive elimination of capital controls, the removal of controls over interest rates, and the lifting of traditional barriers to entry into banking and other financial services"(Cable, 1995, p. 3) Much work has been done by the international developmental agencies in this regard, but it should be noted that this was only possible to do this in cooperation with the states.An example is the GATT (General Agreement on Trade and Tariffs )which ended in the establishment of a multilateral trading system - the World Trade Organization (WTO). This combined efforts of the states with the international forums has led to the reduction of economic barriers and trade liberalization without restricting the role of states under the "neo-liberal" agenda. (WTO, 1998 Annual Report)2 Many academics and development economists like Amartya Sen have pointed out that the main cause of poverty and under development is Bad governance in a country.Thus the state plays a significant role in the globalizing the world economy because it is the one responsible for providing for the growth of small businesses in its country and health ,education,information and communication infrastructure to its citizens and labour force to equip them to compete internationally. The role of the state under the "Washington Consensus"is so downplayed that it cannot really help its own people or interfere in their welfare.Vincent (1995) has pointed out that weak State institutions and inadequate social policies lead to negative effects of globalization and for this reason strengthening State institutions and social welfare is necessary in a globalised world.Globalization has increased the responsibilities of the modern State and its role in norm-setting and regulation as well as in International Developmental and Economic agencies.The role of the State now entails greater co-operation with the BWI's aswell as the UN and the international NGO's to collaborate in the War against terrorism,economic instability ,poverty and the drug mafia. Thus, "Effective States are essential for both tasks, and their capacity for both needs strengthening" (UN, 2000, Millennium Report, A/54/2000, para. 15)24. The role of the state is focal in guaranteeing the nationals , the respect of human rights and justice; national welfare and providing a heavy mandate in international negotiations. Critics of the neo liberal ideas have also pointed out that some States have more political leverage in shaping the international agenda (the superpowers)as compared to developing countries .Moreover BWI's have also been accused of promoting the agendas of the superpowers to subdue the emerging third world nations .Therefore globalization has its costs as well especially where there is a lack of an international balance of power between the nations.3The neo-liberal package's insistence upon aid and loans for developing States to "promote their growth" has led to scathing criticism for weakening the role of the states through large amounts of debt and loans which leads them to be weak in international negotiations and politics. The "hasty retreat of the State" 4 with in social and economic spheres during the 1980's and early nineties has indeed weakened the role of the modern state.And indeed in this era of gloabalisation weak states are a danger to international stability and finance in itself.There seems to be much rather a trend of too little globalization support the This is a time for reinforcing the role of the state within the globalised world.The modern State is the link between planning, and negotiation for the benefit of the diverse actors.The notions of the BWI's are predominantly influenced by the fear of communist take over like the USSR and therefore they cant seem to see any good done by a "Welfare State".In my view the strong welfare ,public health and educational systems of the US and the European countries are the main reason they have such a strong global position. The dissertation concludes that the role of the State as it was before and during the mid-nineties and as it stands today has gone through major transformations in the light of the various political developments and agendas. It has yet to be seen how the emerging strong role of the State fares with the attitudes of the International Development Agencies who have by now learnt from past lessons that a strong state promotes international stability and economic development. Tentative list of References 1. Paul Cammack,New Political Economy, What the World Bank Means by Poverty Reduction, and Why it Matters Vol. 9, No. 2, June 2004 2. Globalization and the Role of the State:Challenges and Perspectives Guido Bertucci and Adriana Alberti(2002),available at http://unpan1.un.org/intradoc/groups/public/documents/UN/UNPAN006225.pdf 3. Amoako, K.Y. (2000). Executive Secretary of ECA, "The Market, Democracy and Development in Africa", Keynote Address at the 40th Anniversary of Africa Confidential, 19 April, London. 4. Cable, Vincent (1995). "What Future for the State", in Deadalus, March 22.World Trade Organization (1998). Annual Report, Geneva. 5. World Bank, World Development Report 1997. The State in a Changing World (Oxford University Press, 1997), Ch 1 'The Evolution of the State' and Ch 2 'Refocusing on the Effectiveness of the State', pp19-38 6. Jones, Barry R.J. (2000). The World Turned Upside Down: Globalization and The Future of the State,St. Martin's Press, New York 7. P Cammack, 'What the World Bank Means by Poverty Reduction, and Why it Matters' New Political Economy, Vol 9, No 2, June 2004, pp. 189-211. 8. Rondinelli, Dennis A and G Shabbir Cheema. 'The Competent State: Governance and Administration in an Era of Globalization', in D. A. Rondinelli and G. S. Cheema (eds.): Reinventing Government for the Twenty-First Century. State Capacity in a Globalizing Society, pp. 243-260. (Kumarian Press, 2003). 9. Craig, David and Doug Porter. Development Beyond Neoliberalism Governance, Poverty Reduction and Political Economy (Routledge, 2006). , Ch 3 'The rise of governance since 1990: the capable state, poverty reduction and 'inclusive' neoliberalism', pp 63-94. 10. R. Abrahamsen, Disciplining Democracy: Development Discourse and Good Governance in Africa (Zed Books, 2000) 11. S. Burall and S. Maxwell (with A. Menocal), 'Reforming the international aid architecture: Options and ways forward' ODI Working Paper 278, 2006, pp 1-28. www.odi.org.uk/publications/working_papers/index.html, 12. Ha-Joon Chang, 'The East Asian Development Experience', in Ha-Joon Chang (ed), Rethinking Development Economics, (Anthem Press 2003), pp. 107-124 13. Ha-Joon Chang, Globalisation, Economic Development and the Role of the State (Zed Books, 2003) ______________________________________________________________________ Read More