Grieco and Ikenberry (2002)- State Power and World Markets- The International Political Economy (Up

Grieco and Ikenberry (2002)- State Power and World Markets- The International Political Economy (Up

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State Power and World Markets: The International Political Economy Joseph M Grieco and G John Ikenberry (2002) Grieco, Joseph M., and G. John Ikenberry. 2002. “State Power and World Markets: The International Political Economy”. New York: WW Norton and Company. Chapter 1: Introduction “…the growing interconnectedness of the world economy is not automatic or irreversible. Globalization is not simply the unfolding of an iron law of economics. Politics and governmental decisions are at the heart of the process.” 2 Section 1: Two Great Eras of Globalization Stage 1: mid-nineteenth century “The UK championed free trade throughout the Victorian Era, beginning with the celebrated repeal of its protectionist Corn Laws in 1846. The free trade movement spread to other countries with the Cobden-Chevalier Treaty of 1860, which lowered French tariffs but also introduced to the world the Most-favored-nation clause , whereby each party to a treaty agrees to extend to the other party any tariff reduction it grants to a third country.” 4 “The open-world economy came crashing down in 1914, a victim of rapidly shifting power relations, escalating strategic rivalries within Europe, and war.” 4 “The two eras of globalization have been characterized by rising trade and capital flows.” 5 See Table 1.1: This is a very pretty table and a nice correlation, but what about other explanatory factors such as the rapid increase in technology and transportation, or even just the boom in world population? Core Principle 1: “ Since 1950, trade liberalization has caused exports to skyrocket. The steady increase in cross-border exchanges of goods and services has led to an increasingly integrated world economy.” 6 Core Principle 2: “Since 1950, the economies of the world’s major countries have become increasingly interconnected.” 7 Core Principle 3: “The US has become increasingly integrated into the world economy since 1900, as evidenced by the growing contribution of trade to the country’s GNP. More and more US workers and businesses depend on participation in the world economy.” 8 Section 2: State Power and Interests and Their Impact on Markets 1. “Nation states emerged in the modern world within a competitive state system that rewarded governments that had access to a thriving economy.” 9 “The power of the state has always been ultimately dependent on the wealth and productivity of the society of which it is a part. As a result, state leaders have tended to actively foster economic advancement and growth and seek ways to harness the resulting wealth for geopolitical goals.” 9 “The countries that had the most efficient tax systems and most stable banking systems tended to be more capable of raising revenue and armies for war.”
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“The US built a modern administrative state, capable of regulating and mobilizing the national economy, in the 30’s and 40’s in response to national crisis brought on by Depression and WWII.” 10 2. “Major states have also conducted foreign economic relations to advance their
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This note was uploaded on 02/03/2012 for the course POLS 5308 taught by Professor Biglaiser during the Spring '11 term at Texas Tech.

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Grieco and Ikenberry (2002)- State Power and World Markets- The International Political Economy (Up

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