Reaction Paper Chapters 3.1 & 3.2
Chapter 3.1 of the Introduction Globalization: Analysis and Readings edited by Edited by Richard W. Mansbach and by Edward J. Rhodes is entitled Neoliberalism as Creative Destruction and was written by David Harvey. It sees neoliberalism as having realized dismal results in stimulating economic growth. It cites the growth rates of 3.5% in the 1960s and 2.4% in the 1970s. Then compares that to the 1.1% growth seen in the 1980 & 1990s, and the even worse performance in the twentieth century that is less than 1% growth. Among the causes, it sees privatization, financialization, state redistributions and the management and manipulation of crises as chief problems.
As an alternative, it supports the shift away from party politics and towards a dynamic of social action. The solution proposed is confront the class power created by the neoliberals, challenge the power of institutions such as the Federal Reserve, the IMF, the WTO and the World Bank and restore democracy.
Chapter 3.2 lists the Top 10 Reasons to Oppose the WTO and comes from the National Post. Although the title implies that is in opposition to the World Trade Organization in actuality, it refutes each of the stated reasons to oppose this organization. In this, it stands as the polar opposite to David Harvey. It points out that the institutions are as democratic as their member states and that the organization itself requires full consensus in order to act.
Although, this article provides powerful, logical reasons to support the World Trade Organization, it remains unconvincing for one reason alone; whatever its intentions, it has not effectively raised the standard for living in the member states. The more power it exerts the greater th gap that grows between the richest and the poorest citizens of the world. Many believe the institutions such as the Federal Reserve, the IMF, the WTO and the World Bank to be part of a global conspiracy. That may be correct, or they might just be incredibly incompetent. Whatever the cause it seems obvious that they created more problems than they resolved. Therefore, they should be deconstructed and replaced with a more socially oriented form of financial and trade governance.
Works Cited
Mansbach, Richard W and Edward J Rhodes, Introducing Globalization: Analysis and Readings. Washington, D.C., USA: Sage Publications, 2013.
