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Economy View
The Three Views and WTO
Globalization as extended the opportunities available for economic growth leading to extensive lobbying amongst world financial institutions. The high influence of exchange rates as also extensively affected business transactions. The price of commodities, air fare tariffs, foreign exchange levels and export and import licenses have been affected across world markets. The World Bank, major banking institutions, World Trade Organization and UN agencies have converged to control the world markets from various levels due their extensive consultations and economic persuasions on vital financial matters. The economic control by these organizations has also lead to political and social influences amongst various nations across the world. Most countries' sovereignty has been weakened especially amongst third world countries has they depend on financial support from these organizations for their financial stability. (Gregory, 2000)
The three main economic principles, economic liberalism, nationalism and structuralism have been forwarded to analyze the global political economy. Economic liberalism, a principle that supports laissez faire economics also greatly values private property in production. It analyses the specific institution that produce a certain commodity e.g. wine production in Italy. The principle refutes the intervention of governments in market influences but it supports the intervention of governments to guard against exploitation of consumers.
It maintains the importance of the state to provide public goods and services without tapering into the running of economies. For instance, Adam Smith asserted that it's the role of the state to provide sufficient infrastructure e.g. roads, railway lines and schools in order to support private ventures. The theories that have been uplifted to support the economic principles include Wealth of nations. It argues that free markets are beneficial and more productive to their societies.
According to Bello Walden, the World Trade Organization undermines the world's poorest countries by setting policies that favor developed countries especially the USA. Most of WTO agreements do not serve the interests of developing markets as they want to develop a monopoly in conjunction with to US in order to control world trade. A clear example is the introduction of agriculture into the GATT-WTO in 1995 system. By stating that developing countries should feed themselves, it was a clear indication of the importance to create food security in the US due to reliance on US produced products. Due to the easy available of food at a low cost in the USA compared to other developing markets.
The creation of WTO dispute resolution mechanism to ensure favorable resolution of disputes especially financial, a point emphasized by C Fred Bergsten. He states that ‘' We (USA) can now use the full weight of the international machinery to go after trade barriers, reduce them, get them eliminated.'' Since they considered GATT efforts to be weak as they are unable to give favorable financial rulings to the USA.
The establishment of the WTO in 1995 was an idea formulated by the USA to serve its interests and help in its raid on monopoly of markets. By assessing the interests of its corporations and realizing that they are not served effectively, it led to the structured and highly US favoring WTO. It led to development of free markets, setting up of the Uruguay round, decision making and accountability system clearly shows its intentions, to control world markets. The fear tool used by US propagandists that staying out of WTO resulted in the isolation of a country from world trade and that rules could protect emerging markets from unilateral acts lead to consent. With time, the terms were revoked rendering the emerging markets incapable to put trade measures for their development. The use of trade as a tool for development was abandoned and industrialization principles adopted that was unfavorable to Third world countries. The development of the world trade governing bodies like WTO,IMF and World Bank have led to undermine of the liberalism economic principles due to the control the impose onto world markets. (Bello, 2000)
The second economic nationalism principle was postulated by Alexander Hamilton works on policies that aid in economic control by countries. It emphasizes on empowering the state to produce goods that were previously imported also called import substitution industrialization (ISI). This acts as a way of strengthening its economy and reducing its dependency on foreign markets.
The state controls its resources on basis of equal distribution to its citizens for growth and development. The development of export promotions policies, devaluations of exchange rates and giving subsidies to local firms are meant to encourage locals to produce surplus goods for export enables development of local industries. The uniting of people under a national identity acts as the foundation for development as it creates a sense of belonging. Presence of nationalism as a way of economic development as long as it geared towards ultimate growth of a people can also be used as a national symbol.
The principle is viewed as powerful and attractive in protecting and enhancing a state's growth in internationalized markets. The continuous growth of international economies, technology and infrastructure has shrunk the importance of countries. The formation of world trade organizations that govern major trade and financial issues in many countries have also helped to reduce dominancy of countries in their financial matters. The resurgence of economic nationalism being expressed is due to the unfulfilled expectations economically. The fear of dominance of emerging states by the developed nations as also led to development of economic resistance. Occurrence of economic nationalism bases its progress on various levels, pursuit of national interests that include power.
The continuous development of globalization poses a fear of eradication on some ethnic states due to competition hence leading to adoption of the economic nationalism in order to instill a sense of national identity. Also there's a high misuse of the principle by the political elite for their ulterior motives. The identification of economic prowess is viewed as a way of enhancing a nation's power for political manipulation. Politics and economic growth combined with a sense of national unity acts as a catalyst to a nation's growth. The mercantilist and protectionist nature of economic nationalism aims at creating a nation's financial dependence. Through the activation of independence strategies e.g. creating of trade barriers acts as a way of protecting its citizens against exploitation by foreign markets.
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In view of the poor economy, will the UK royals now start raising racing dogs instead of racing horses?
Everyone wants them to "save money" and act more like everyday people. Will they abandon the expensive hobby of horse racing...and please people more by economizing by raising racing dogs?
For economy's sake....will Royal Ascot change to racing dogs....with everyone arriving in busses? Will that please people more who are complaining about the lavish lifestyle of the UK royals?
Never that ducky, never that. We royals do not need to economize - only the commoners do that. Hence the royal wedding. The bride was a commoner, so they economized. The Royal Ascot cannot be economized.
An Irishman abroad tells it like it is !! 