The Clash of Globalizations
Essays on the Political Economy of Trade and Development Policy
About This Book
“This is a ‘big picture’ book about the world economy, rooted in a detailed study of the institutions and norms that affect cross-border transactions, especially those of developing countries. Put it on your reading list if you are interested in the governance of the world economy, and also if you are interested in reforming the teaching of economics away from the current curriculum dominated by mathematical technique and towards topics from institutional economics, political science and sociology.” —Robert H. Wade, Professor of Political Economy, London School of Economics and Political Science
Bringing together a series of essays on the political economy of trade and development policy, this book explores the following research questions: to what extent is the global trading regime reducing the ability of nation-states to pursue policies for financial stability and economic growth; and what political factors explain such changes in policy space over time, across different types of trade treaties, and across nations? Gallagher presents intriguing findings on the policy constraints on the Uruguay Round, as well as the restrictions that the USA places upon the ability of developing nations to deploy a range of development strategies for stability and growth.
Analyzing the factors which have led to twenty-first-century trade politics being characterized by a “clash of globalizations,” including the standstill of the World Trade Organization over the issue of development strategies in emerging markets, the book sheds light upon the growing opinion among developing nations that it is in their interest to build upon their current advantage in primary commodities and light manufacturing, and to expand into new, value-added intensive areas where they might, someday, have a comparative advantage.
As this collection of essays demonstrates, developing nations now have, for the first time, the economic and political power to refuse the proposals of industrialized countries and to put forward an alternative set of negotiating demands that industrialized nations have to take seriously. This volume exposes the reality that economic power isn’t the only factor in the difference between recent talks at the Doha Round and previous discussions; however, economic power is still key among a number of converging components, which, along with institutional structure, domestic politics, currency fluctuations and ideas about globalization, are effecting changes to global trade policies.
Kevin P. Gallagher is associate professor in the Department of International Relations at Boston University, where he is coordinator of the Global Development Policy Program and the Global Economic Governance Initiative.
Table of Contents
Preface and Acknowledgments; List of Tables, Figures and Boxes; Chapter 1: Introducing the Clash of Globalizations; Chapter 2: Losing Control: Policy Space to Regulate Cross-Border Financial Flows; Chapter 3: The New Vulture Culture: Sovereign Debt Restructuring and International Investment Rules; Chapter 4: Whither the Developmental State? Industrial Policy and Development Sovereignty; Chapter 5: Understanding Developing Country Resistance to the Doha Round; Chapter 6: Trading Away the Ladder? Trade Politics and Economic Development in the Americas; Chapter 7: Putting Development First: Trade Policy for the Twenty-first Century; References; Index