Non-Governmental Organization:

• voluntary citizen's groups (citizen membership)
• private-excluded from gov membership
• particpate in areas over looked by governments
• key role-protect basic rights-make government aware of citizen's concerns
• levels of organization: local regional, national, international
• ex: Red Cross, Amnesty International
• political aspect of globalization

Intergovernmental Organization:

• set up by governments: establish common rules to regularize contracts and communications
• designed to serve governments' common interests; where their national interests overlap
• global and regional
• include international conventions, treaties, alliances

• realists doubt their autonomy because states create and control them
• -IGOs are a way to increase their hard power
• -IGOs serve the best interests of the states
• -don't transform them/create new actors
• -state is supreme over the organizations 

• IGOs are a means for cooperation & communication
• realize that they are not fully under control of national govs; become quasi-independent actors 
  

• -transform the norms & values of the institutions
• -shape new identities

• Ex: European Union; UN Security Council, WTO

Universal Declaration of Human Rights:

• UN General Assembly in 1948
• general principle: defined and stipulated what human rights were

Civil-Political Rights:

• all individuals are equal, free speech, freedom of religion equal protection under the law, freedom from arbitrary imprisonment, political participation, etc.

Economic-Social Rights:

• entitlement to good living conditions, food, healthcare, social security, education

Universalism in Human Rights:

• State Sovereignty: self-governance; international recognition

International Criminal Court (ICC):

• tries individuals for 4 types of crime: genocide, crimes against humanity, war crimes, and crimes of aggression
• important countries that are not members: China, U.S., India (reflect realist concerns arguing the ICC could not prosecute U.S. soldiers  if U.S. courts were unwilling to do so
• important aspect of liberal perspective
• does not have independent power to enforce its decisions
• ex: Nurembourg Trials (German criminals in WWII)

War Crimes:

• serious violations of human rights during war
• violations of the law governming the conduct of warfare (mistreatment of POW's or targeting civilians)

Crimes Against Humanity:

• genocide, ethnic cleansing, systematic rape, recruitment of child soldiers
• category of legal offenses created at Nurembourg trials
• considered to be worse than war crimes

• argues that expert IGOs grow in significance as they solve practical problems, such as food and health
• marginalization of political considerations
• functional areas will be removed from calculations of power politics

• identity perspective*sees IGOs (EU) as changing state loyalties and identities directly

UN Secretariat:

• headed by UN Secretary-General and assisted by staff of international civil servants worldwide
• provides studies, information, and facilities needed by UN bodies for their meetings

UN Security Council:

• charged with the maintenance of international peace and security
• its powers are outlined in the UN Charter- est. of peacekeeping operations, international sacntions, and authorization of miliarty action
• powers exercised through UN Security Council Resolutions

European Union:

• 2 functions: works as an IGO and works as a supranational organization (federalism)
• functionalist ideals: political divisions would recede
• core value: ensure security

European Commission:

• has exclusive authority to initiate legislation + pursue goals of ever-closer union
• where nationally interests, in theory, should be neglected
• non-member countries (U.S.) negotiate with commission (represents EU on outside)

European Parliament:

• principle legislative body made up of elected officials (regroup into political parties) represent member states
• only directly elected institution in EU
• calls for democratic procedures 

European Court of Justice (ICJ):

• interprets + enforces EC treaties + laws
• 1 judge from each member state but usually sits in "grand chamber" of 13 judges
• decides on constitutionality of EU laws
• deals w/ disputes among EU members, institutions, and NGOs
• recognizes individual standing-allows indivs to bring cases before court

Bretton Woods System:

• organized economic activities among western countries from 1950-1973
• goal: open trade markets; top of postwar economic agenda
• fixed exchange rates in terms of dollar: "dollar standard"
• permitted countries to change their exchange rates under specified circumstances (not as rigid as old gold standard)
• est. multilateral trade liberalization-nations negotiate reciprocal tariff reductions
• nations would apply the most-favored-nation (MFN) principle: apply same low tariff to all nations that they offered to most-favored-nation
• General Agreement on Tariffs and Trade (GATT)
• International Monetary Fund (IMF)

• easily converted
• globally traded currency-serves as reliable/stable commodity 
• (the dollar, euro, Swiss franc, British pound, Canadian dollar)
• recently US dollar has weakened as a hard currency

• act like stocks
• can be purchased by citizens, companies, international investors  

• economic philosophy-dominated trade in 16-18 centuries
• each state sought to export more than it imported
• "central objective of a state's policy is to increase state's wealth relative to that of other states + to pursue that economic development independently, in a zero-sum struggle for material advantage"

Civil Society:

• non-state actors
• grassroots movements of individuals worldwide

International Political Economy: 

• refers to the relationship between international politics and international economies
• government and market interaction
• areas: trade, international finance, MNCs, economic development

Realist theory of IPE:

• studies relationship between state power + wealth
• 3 main assumptions: 
• 1) economic strength is critical for state power 
• 2) exports over imports 
• 3) some forms of economic activity are more valuable than others
• CRITIQUES: protectionism (used to increase own state power) is inefficient b/c it protects certain industries, not entirety of state
• hegemonic stability theory: hegemonic power is necessary to ensure highly integrated world economy

If you're a realist scholar, how are you explaining the economic crises?

You would probably say that the crises is caused by free market ideology that the liberalist scholars have; without state interference within markets, there becomes downward fluxation.

• dominant theory
• emphasizes freedom + liberty
• free markets (limited state interference w/ little protectionism)
• state shouldn't have role within market but should est. rights concerning ownership of property + resources
• state should have judicial system in place to legalize transfer of ownership
• state shouldn't get involved unless there's a market failure
• CRITIQUES:
• • 1) generates inequality
  • 2) fails to pay attention to exploitation
  • 3) market failure can occur  

• If you're a liberalist scholar, how are you explaining the economic crises?

Liberalists say that the market runs on cycle and that this is nothing out of the ordinary; the state is there to fix these problems but after it's fixed, the state should back away. 

• main actor: capitalist class
• state is an instrument of the capitalists
• believes the system is exploitative
• 3 major dynamics:
• 1) concentration of capital
• 2) falling rate of profit
• 3) imbalance between the production + ability to purchase goods

World Systems Theory:

• world is regionally divided
• international trade is exploitative
• the core (capitalists)
• semi-periphery-exploits and is exploited

• What does the core get from the periphery?

• The core gets cheap labor, profit from direct capital investments, market for exports, and other goods at low prices. 

• How would a Marxist explain why the vast majority of African nations have not globalized?

• They would say that the bourgeoise exploit the workers- double exploitation.

Economic characteristics of LDCs:

• -rely on "primary sector" in low income countries and on industry in lower             middle-upper middle countries
• -poorly developed infrastructure (roads, sanitation)
• -large sector that does not pay taxes
• -international debt
• -recipients of foreign aid

• -more rural
• -less educated; higher illiteracy rates
• -low health standards; higher rate of disease; lower life expectancy
• higher population growth rates

• -former colonies; many are only recently independent
• -less democratic; more authoritarian
• -less stable political system
• -limitless rule of law

• World Bank has divided countries into 4 categories: 

• 1) low income ($995 or less)- Middle East, Northern Africa
• 2) lower middle income ($995-$3795)- China, India
• 3) upper middle income (above $11,995)- Russia
• 4) high income- U.S.

• Myths about poor countries:

• - have fewer natural resources
• -currently grow economically at slower rate than high income countries
• -have more ethnic/racial diversity
• -have greater degree of economic inequality

• Why are some countries poorer than other countries?

• Some countries are poorer than others because of bad governance (corrupt leaders), policies, and the absence of democratic institutions.

"trickle-up" approach; immediate assistance, focus on local initiatives 

Top-Down Development:

"trickle-down" approach; policies contribute to macroeconomic growth.; starts small

• interaction of supply and demand
• responsible for setting prices

Command Economy:

• socialism
• state ownership of industry
• government sets prices, production targets
• allocation of resources through bureaucratic means

Mixed Economy:

• modern capitalism
• government owns certain strategic industries
• some government intervention in price setting, production (cigarettes; farm subsidies)

Market Economy:

• capitalism
• limited or no government interference (laissez-faire)
• government's role: rule of law, protection of private property, national defense, supplying collective goods

Open Economy:

• embraces foreign trade; maximizes exports (U.S.)

Closed Economy:

• embraces self reliance

Balance of trade:

• the relationship between expors and imports in a country

Comparative Advantage:

• states should specialize in producing goods that they can produce cheaper than other countries

Protectionism:

• policy of restraining trade between states by:
• 1) tariff duties
• 2) quotas (limits quantity of good that can be imported at given time)
• 3) regulation (on sale + consumption)
• 4) subsidies (financial assistance paid to business/economic sector to support business that might fail/encourage activities that would otherwise not occur)

• Why embrace protectionism?

• Because it is a reaction to certain predatory practices. Governments are experiencing pressures from certain lobby groups and they are accomodating to these groups.

Globalization:

• process of increased scale, extent, speed, and magnitude of cross-boarder social, economic, military, technological, and cultural interactions.

• hierarchical control of exchanges through domestic bureacracies
• hegemonic stability theory

• western technology, specialization, + institutional innovations (factory, markets, international bureaucracy)-more efficient workers

• if other countries want to become modern, they have to adopt western ideas

• western development is consequence of systematic exploitation of other countries-imperialism + colonization
• imposes capitalism
• division of labor

5 Reasons why countries will reject globalization:

• 1) Washington Consensus: provide the rules + practices of globalization; "in order to be a part of globalized norm you need to have a level of westernization"
• 2) Cultural: religious-based states are less likely to give up values b/c they don't think it is good for their people
• 3) Transition from command--->capitalism: countries have seen the difficult transition Russia went through and don't want to put country through same thing
• 4) Macroeconomics: short term aspects not worth the long term gains
• 5) Inevitability: "will not join to prove that it is inevitable; our decision to not take part rejects your inevitable claim"

Fiscal Policy:

• governments decide how much money will be spent and how much will be collected (taxation)
• Keynes': it is okay for government to go into short term deficit in order to stimulate the economy; he argued that governments should solve problems in the short run rather than waiting for market forces to do it in the long run, because "in the long run we are all dead"

Monetary Policy:

• government's decision to how much should be printed and how much should be put into circulation
• role of federal reserve-responsible for making value of currency

Inflation:

• rise in general level of prices of goods and services in an economy over a period of time

• inflation that is very high or "out of control"
• prices increase rapidly as a currency loses its value

Balance of Payments (BOP):

• measures the payments that flow between any individual country and all other countries
• used to summarize all international economic transactions for that country during a specific time period, usually a year

Fixed Exchange Rate:

• currency's value is matched to the value of another single currency or to a basket of other currencies
• used to stabilize the value of a currency
• used to control inflation

Managed Exchange Rate:

• currency's value is allowed to fluctuare according to the foreign exchange market

International Debt:

• the part of the total debt in a country that is owed to creditors outside the country
• money owed to private commerical banks, other governments, or international financial institutions (IMF, World Bank)
• realists say the debt shouldn't be long term
• liberalists say the debt is negative and should be avoided

Multinational Corporations:

• business or company operating in one or more countries simultaneously

• -agent of home national government; loss of sovereignty
• -increasingly powerful-make more money than most small, poor states
• -profits leave country to go back to investors at home
• -disrupts local culture
• -exploit resources and labor
• -export pollution

Hegemonic Stability Theory:

• realist theory stating that a hegemonic power is necessary to support a highly integrated world economy
• "as long as power is evenly distributed among several great powers, no single power can influence the system as a whole"-no single power takes the lead to organize the world economy
• because no single actor exerts significant influence on other actors, each acts to maximize its own national self-interests

G-20: 

• Group of Twenty Finance Ministers and Central Bank Governors from 20 economies, plus the European Union
• forum for cooperation and consultation on matters dealing with international finance system
• seeks to address issues that go beyond responsibilities of any one organization
• together, their economies comprise 85% of global GNP, 80% of world trade; 2/3 world population

• What is the role of international law?

• The role of international law is to protect political, economic, and social rights of states and individuals by creating a common body of norms and principles to be used in the solution of diverse problems. International law is created to serve mankind and is above state law.  It is further divided into public (UN), private (conflict of laws), and supranational law (nations agree to set of common institutions).

• What are the sources of international law?

• The sources of international law are the international court of juctice,  international conventions, treaties (multilateral), customs, general principle, legal scholarship

• Protectionism can create or save jobs, can help strategic or infant industries, shows understanding for causes, and protects a way of life or culture or a nation.

• What is the government's role in fiscal policy?

• The government's role is to control spending by taxing on goods and services it purchases. Keynes believes that a government should spend more in order to stimulate the economy

• How do the different IPE theories explain why less developed countries have difficulty developing?

• Realists:
• -international conflict & struggle for resources
• -solution: security assistance and foreign aid

• Liberalists:
• -lack of integration (economic & political)
• solution: international trade/finance

What are the World Bank's four income categories? Give examples of each.

High income countries: N.America, Australia, Canada, Western Europe

Upper-middle income: Russia, Eastern Europe, South Africa

Lower-middle income: Peru, Columbia, Morocco, China, India

Low income countries: Bangladesh, Vietnam, Pakistan