Presentation chapter 9 The Trilemma of the World Economy

Presentation chapter 9 The Trilemma of the World Economy -...

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Chapter 9 THE POLITICAL TRILEMMA OF THE WORLD ECONOMY
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The Inevitable Clash Between Hyperglobalisation and National Politics National democracy and deep globalization are incompatible. Hyper globalization require shrinking of domestic politics and insulation of technocrats from the demands of popular groups Globalization, by its very nature, is disruptive - it rearranges where and how work is done and where and how profits are made. Domestic politics casts a long shadow on financial markets and makes it impossible to integrate deeply with the world economy.
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Example of Negative Effect of Hyper- globalization on Democratic Choices Industrial Policies in Developing Nations WTO imposes some restrictions on industrial policies that make it harder for developing countries in Africa, Latin America and elsewhere to emulate development strategies that East Asia employed to a good effect. Examples Export Subsidies Only allowed for poorest countries denying developing countries the benefit of export-processing zones that were used by China, Mauritius… Patent and Copyright Laws Must comply with minimum international standards ruling out the kind of industrial imitation used by South Korea and Taiwan industrial strategies of 1960s and 1970s Domestic Content Requirements Policies that require firms to use more local inputs are illegal even though such policies helped China and India to develop world-class auto parts suppliers.
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