2018-02-14
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Rapid changes in the world force people to think about and interpret world politics in fresh ways. Of all the many changes, perhaps none has been more profound and far-reaching than the post-World War II phenomenon known as globalization – the increasingly close international integration of markets both for goods and services, and for capital. The growth of the interdependence of states' economies can be viewed as the recent culmination of a trend that began more than a century ago, but its current level is unprecedented. As states' economies have become more closely linked, basic ideas about states, markets, trade, and currency exchange mechanisms are being reexamined. International political economy – "the study of the inequality in power and wealth between peoples and nations and the patterns of collective power and learning that change this inequality" (Isaak) – has gained prominence as an area of investigation because it is at this vortex of politics and economics that controversies in world politics often find their most heated expression. The contests between rich and poor, Global North and Global South, and supplier and producer have risen to prominence. While some might say that the high politics governing military confrontation, superpower struggle, and the quest for national security in an insecure strategic environment remain a necessary preoccupation, most would also agree that the turbulent world of low politics, where the economic game of world politics is played out, has assumed new relevance. The strong undercurrents in the latter are reshaping the former. The dramatic growth of international trade and the increasingly interlocked nature of the world's economy compel attention to economic transactions. Today, high interest rates in one country lead to high interest rates in others, and a stock market free fall starting in Asia will spread to New York and London. Depression abroad means recession at home. Inflation is shared everywhere, and it seems to be beyond the control of any single actor. The balance of fiscal power is now as pertinent to national security and quality of life as the global balance of military power. These are some of the consequences of the growing international interdependence known as "globalization."
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Globalization has led to theoretical rediscovery of political economy as an approach to understanding contemporary world affairs, and to the reexamination of such classic mid-nineteenth-century studies as John Stuart Mill’s "Principles of Political Economy" and Karl Marx's "A Contribution to the Critique of Political Economy". This reconsideration stems from the growing awareness that the conventional categories of politics and economics can no longer be separated. They do not form a meaningful dichotomy. The two realms are insuperably joined in an era of globalization that challenges states, because now "much of politics is economics, and most of economics is politics" (Lindblom).
In this transformed context politics (states) and economics (markets) are merging. The growth of world trade, which was projected to exceed $8 trillion annually by the year 2000 and is expanding at a rate that far exceeds that of world output, is the most visible symbol and cause of globalization and interdependence. World trade deserves our primary attention, as do the dynamics of the floating international monetary system through which foreign currencies and credits are calculated when capital moves across borders through trade, investments, and loans. For inquiry, we need to first step backward and understand how globalization is influencing ideas about states' trade and monetary policies, which are rooted in past thinking. As the World Bank observes, "Around the globe, the state is in the spotlight. Far-reaching developments in the global economy have us revisiting basic questions about government: what its role should be, what it can and cannot do, and how best to do it."
Exercises:
1 Answer the following questions:
1 What unfamiliar opportunity did leaders face in 1997?
2 What made possible economic growth in the world?
3 Why have people always sought for money?
3 What is globalization?
4 Why has International political economy gained prominence?
5 What is the difference between high politics and low politics?
6 What role do depression and inflation play in the world?
7 What has globalization led to?
8 What is the relationship between politics and economics?
10 What is the international monetary system?
2 Give Russian equivalents for the following word-combinations:
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to face an unfamiliar opportunity, to savour a surge in economic growth, the removal of the ideological chains, economic distortions, newly affluent people, to bask in the freedom of a promising future, to confront the awesome task, quest for wealth, ageless pursuit, globalized marketplace, interdependence of states‘ economies, currency exchange mechanisms, patterns of collective power, to gain prominence, vortex of politics and economics, heated expression, to govern military confrontation, strong undercurrents, interlocked nature of economy, high interest rates, stock market free fall, fiscal power, rediscovery of political economy, meaningful dichotomy, to exceed the rate of world output, to be rooted in past thinking, to be in the spotlight, far-reaching developments.
3 Give English equivalents for the following words and word-combinations:
соперничество великих держав, появляющийся средний класс, уменьшить разрыв между богатыми и бедными, регулировать коммерческую деятельность, глубокие и далеко идущие изменения, современный уровень, ненадежная стратегическая обстановка, беспокойный мир, быть вне контроля, подход к пониманию дел в современном мире, заслуживать первостепенного внимания, переходить границы, отступить назад.
4 Make up nouns from the following verbs and adjectives using suffixes:
to convene, to grow, to remove, to distort, to transform, to emerge, to generate, to prosper, to confront, to realize, to preserve, to evolve, to adopt, to investigate, to reside, to culminate, to produce, to preoccupy, to assume, to discover, to reconsider, to expand, to attend, to invest, to inquire, to inflate, to think, to analyze;
familiar, affluent, equal, prominent, turbulent, relevant, pertinent, aware, necessary.
5 Make up adjectives using suffixes:
ideology, awe, peace, vigour, wealth, success, centre, practice, commerce, money, finance, peril, trend, contraversy, strategy, drama, nature, theory, meaning, vision, symbol, power;
to prosper, to collect, to change, to express.
6 Give as many synonyms as possible to the following words:
to face, to transform, to bask, to concentrate, to embrace, to adopt, to evolve, to reside, to force, to gain, to shape, to compel, to discover, to merge;
freedom, prosperity, quest, border, peril, link, pattern, rate, developments;
familiar, affluent, awesome, huge, vigorous, contemporary, rapid, profound, basic, prominent, pertinent, aware.
7 Give antonyms adding negative affixes if necessary:
familiar, possible, affluent, awesome, vigorous, valuable, precedented, secure, necessary, relevant, conventional, visible;
freedom, integration, equality, awareness.
8 Explain the meaning of the following adverbs and make up sentences with them:
newly, closely, insuperably, annually, properly.
9 Insert prepositions where necessary:
1 High interest rates … one country lead … high interest rates … others, and a stock market free fall starting … Asia will spread … New York and London.
2 Much … the world was savouring a surge … economic growth made possible largely … the removal … the Cold War‘s ideological chains.
3 The growth … world trade, which was projected to exceed 8 trillion dollars annually … the year 2000 and is expending … a rate that far exceeds that … world output, is the most visible symbol and cause … globalization and interdependence.
4 International political economy – “the study … the inequality … power and wealth … peoples and nations and the patterns … collective power and learning that change this inequality“ – has gained prominence as an area … investigation.
5 Because wealth provides the means … which many other prized values can be realized, the successful management … economics lies … the centre … how governments define their national interests.
6 The dramatic growth … international trade and the increasingly interlocked nature … the world‘s … economy compel attention … economic transactions.
7 Much … the world now set its sights … generating even more prosperity, while confronting the awesome task … reducing the huge gap … the rich and the poor and … preserving the peace that allowed such vigorous economic growth.
8 The balance … fiscal power is now as pertinent … national security and quality … life as the global balance … military power.
9 Scientists analyze the ways … which the international political economy has evolved, the promise and the peril that reside … how these issues are and will be addressed … the 21st century.
10 Globalization has led … theoretical rediscovery … political economy as an approach … understanding contemporary world affairs, and … the reexamination … some classic mid-nineteenth century studies.
10 Translate from Russian into English:
1 Устранение экономических разногласий и искажений, вызванных соперничеством великих держав во время Холодной войны, привело к всплеску экономического развития и роста в мире.
2 В то время, как преуспевающие люди и появляющийся средний класс стремятся к еще большему процветанию, миру приходится решать трудную задачу сокращения разрыва между богатыми и бедными.
3 Люди всегда стремились к богатству и благополучию, так как именно это дает средства и возможности для приобретения различных материальных ценностей.
4 Ученые считают, что такое послевоенное явление, как глобализация, является самым значительным и имеет далеко идущие последствия, и ее современный уровень не имеет прецедентов.
5 Глобализация привела к тому, что ученые стали рассматривать политическую экономику как подход к пониманию дел в современном мире, так как общепринятые категории политики и экономики больше нельзя рассматривать отдельно.
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6 Первостепенного внимания заслуживает не только мировая торговля, но и развитие международной денежной системы, когда мы имеем дело с движением капитала через границы посредством инвестиций и займов.
11 Questions for discussions:
1 The economic consequences of the Cold War.
2 Globalization in the contemporary world: pro and contra.
UNIT 12
