Globalization and Political Economy - Term Paper Example

Globalization and political economy Globalization is widely understood as a modern process of integration of different economies, societies and cultures. Via a network of communication, transportation and trade, globalization has shifted accents of the modern world’s society to total unification. Globalization is also generally referred to integration of different economies, investment development, migration and technologies’ development. Nevertheless it is possible to claim that a process of globalization can’t be considered separately from other factors, such as economic, technological, socio-cultural, political, and biological ones (Held and McGrew, 2002). Globalization refers to a wide scope of ideas from different spheres through acculturation. As a result, a process of global unification of different aspects of human lives and activities occurs. The world of politics is also widely considered in the process of globalization. In this context government is understood as the world regulator of governments’ actions. In the context of globalization, international governments pass on the baton of the world’s leader. For example, the Unites States of America is known as the country with a highly developed economy. Recently, China has picked up a baton of the world’s leader. Thus on the international arena survive and prevail countries with the highly developed economies. At the same time it is clearly seen that in the process of globalization rival relationships between these two countries occur. Therefore, with regard to political economy, a process of globalization should be studied in a broader context, because not only relationships on different levels are considered, but also social interactions between two interrelated countries are taken into account. Further on a consideration concerns an issue of hegemony. Such critics as Max Horkheimer and Antonio Gramsci claim that hegemony implies a consideration not only about political or economical issues, but also influences “holistic consideration” of the world, its role in establishing human and social relationships (Keohane, 2001). In accordance with the Princeton political economist Robert Gilpin, whose claims would be basic ones for our further consideration; there has always been the struggle between the states and markets on the international level. Gilpin argues with the leading neoclassical liberal economists, who underline markets’ autonomy and self-regulation, and makes an emphasis on the markets being deeply embedded in more global political and social structures. Another important claim by Gilpin, who, unlike other scientists underlining that globalization is inevitable and leads to pacifying of the nation-state, is that globalization is a positive tendency of the modern world leading to a control increase for the big states (Gilpin, 2001). It is necessary to describe a primary goal of political economy: it is concluded in societies’ abilities to transform. A necessity of consideration about political-economy in the process of globalization can be explained by the fact that this aspect can clarify challenges and opportunities which occur in dynamic and democratic modern world. We’ll consider transformative political-economy approach of Wangoola and Youngman (1996). In accordance with the claims of these scientists, the interface between politics and the economy should be considered first of all. Another important consideration concerns subjective and cultural dimensions of power and confrontation. This approach can be adapted to political economy. For example, a public opinion of a certain society or its social thinking can be transformed in accordance with changes introduced by the process of globalization. If to trace relation of Youngman’s view to political economy on the global level, it is possible to correlate considerations about “four main systems of domination in society, namely, those deriving from imperialism, class, gender, and race-ethnicity” (Wangoola, Youngman, 1996, p. 117). Further on it is possible to consider these four aspects from a perspective of political-economy and develop new insights concerning governance, globalization and different social issues. In the modern studies a concept of “globalization” is often exaggerated and misinterpreted. An exaggeration of this concept can be explained by the fact that in the beginning of the twentieth century globalization was considered to include more various issues and different aspects than today. Misinterpretation can be explained by the fact that globalization is not quite relevant to modern economy; it is more relevant to talk about formations of regional trade blocs (e.g. European Union, NAFTA) (Harvey, 2005). In these blocks each of the states reflects its ideas on propagating its national interests directed on intensifying of relative power on the international level. For example, a successful influence of globalization can be illustrated by EU existence, which is a possible thanks to European governments’ realization that it is more favorable to them to compete more effectively together than separately. In the process of globalization, international governments struggle for a control over the international economy, basing on their needs for wealth, which are an integral part of their current struggle for power (Gilpin). Unlike previous years, modern world accepts geopolitical hegemony (as in case of the United States) and not the priority of autonomous market (as in case with America) (Waltz, 2000, p. 47). Political economy in the context of globalization reflects numerous aspects of political science and international relations: starting from rational individualism to the considerations about politics; it discusses policies in an economic dimension. Therefore in the perspective of political economy, on the background of a process of globalization the changing relationships between political systems and economic forces are considered. A process of integration of national economies into a global one is a sequential process of gradual adaptation and changes of national powers into a complete successful process increasing profits of different countries. A shift of accents from ‘globalization as an interdependence’ to ‘globalization as gradual balancing of international and domestic politics’ was initiated in 40s of twentieth century (Kapstein, Mastanduno, 1999, p. 163). With the course of time, globalization turned from a forcible process of states’ oppression into liberating trades, financial markets and investments. A distribution of consequences of a process of globalization was the following: from “pressure for the reduction the welfare state in developed countries and for the liberalization of the economy in developing ones” (Langley, 2000, p. 462). It is more pleasant to consider a process of globalization in political economy in the following way: “the rush to free trade and capital market liberalization, the reforms of many welfare states, and the creation of independent central banks globally” (Wangoola, Youngman, 2006, p. 22). From this perspective a process of globalization is considered to be favorable for political economy. A meaningfulness of every state is supported by the relevance of its potential assistance and cooperation with other states. In such a way, it is relevant to support and develop a process of globalization on the international level for the countries’ benefits. Political economy should be considered on the background of globalization for the reason that interrelations of countries on micro and macro levels can regulate economic cycles (Langley, 2000, p. 470). Currently on the governmental level there is an evident intervention in the economy of every country. An interrelation of politics and economy lead to development of more general ideas, which diminish the role of the state and state’s economy for the sake of economy’s development on the international level (Strange, 1996). Economical development of any state is mainly directed on completion of global goals. It is also interesting to pay attention to the development of global economy. It may be claimed that there is a gradual restoration of global economy of the late nineteenth century. It is an intimidating factor that political conflicts reborn after post-Cold War could negatively influence world’s economy (Helleiner, 1996, p. 19). Another challenge is to decide whether current political alliances and blocs will exist or will they be transformed into new ones. Globalization is usually considered to be a modern process of integration of different economies, societies and cultures. The world of politics is also considered in the process of globalization. In this context government is understood as the world regulator of governments’ actions. In the context of globalization, international governments pass on the baton of the world’s leader (Keohane, 2001). A discussion about political economy in the context of globalization makes a consideration about development to be the secondary ones. With regard to political economy, a process of globalization should be studied in a broader context, because not only relationships on different levels are considered, but also social interactions between two interrelated countries are taken into account (Keohane, 2001). A necessity of discussing political-economy in the process of globalization is clear because this aspect can explain challenges and new chances which occur in dynamic and democratic modern world. In the perspective of political economy, on the essence of a process of globalization the altering relations between political systems and economic forces should be considered. It is obvious that a process of integration of separate economies into a global one is a sequential process of continuing adjustment and changes of national powers into a complete successful process increasing profits and improving the way of life of different states. The primary attention should be focused on relationships between the big countries and their influence on the developing countries (Keohane, 2001). A shift of consideration about developed countries and the most powerful countries from being world leaders to being strong partners is of high relevance nowadays. Unfortunately, policies and economies of the developing countries are less considered in comparison with the ones of the developed countries. Therefore it is relevant to widen a scope of issues covered by political economy in terms of the process of globalization for development of the multi-sided discipline directed on international relationship’s establishment and development. Works cited 1. Biersteker, T. J., 1998. Globalization and the Modes of Operation of Major Institutional Actors. Oxford Development Studies 26 (1), pp.15-31. 2. Blyth, M. & Spruyt, H., 2003. Our past as prologue. Review of International Political Economy 10 (4), pp. 607-620. 3. Gilpin, R. (2001). Global Political Economy: Understanding the International Economic Order Princeton. 4. Harvey, D., 2005. A Brief History of Neoliberalism. Oxford University Press. 5. Held, D. and McGrew, A., 2002. Globalization/Anti-Globalization. Polity Press 6. Helleiner, E., 1996. States and the Reemergence of Global Finance. Cornell. 7. Kapstein, E., Mastanduno, M. Eds., 1999. Unipolar Politics: Realism and State Strategies After the Cold War. Columbia. 8. Keohane, R. O., 2001. Power and Governance in a Partially Globalized World. Routledge. 9. Langley, P., 2000. Confronting Globalization: International Political Economy and its Critics. Millennium: Journal of International Studies, 29 (2), pp. 461-469. 10. Strange, S., 1996. The Retreat of the State: The Diffusion of Power in the World Economy. Cambridge. 11. Waltz, K., 2000. Globalization and American Power. National Interest (Spring 2000), pp. 46-56. 12. Wangoola, P., Youngman, F., 1996. Towards a Transformative Political Economy of Adult Education: Theoretical and Practical Challenges. International Review of Education 44 (1), pp. 117-118. Read More