Irs Foreign Exchange Rates 2009
The role of developing countries in world trade: the realistic view
The state plays an important role in the international political economy and is considered the manufacturer to decide ultimately, both economic and political decisions. International Political Economy (IPE) is in the interaction between state and market. power based on tangible and intangible, or economic and military power, the world can be divided into two blocs: the North and South. The north, which contains are very powerful and strong militarily, economically and politically, while the South is characterized the weakest, least developed countries and poor countries in the world whose economy is weak, governments and the military. IPE and international relations (IR) researchers also characterized the North as "Center" and South, the "periphery." In the era of contemporary globalization, states (With special reference to powerful states) are the main actors in the IPE. There are many institutional arrangements, such as the International Monitoring Fund (IMF), World Bank, World Trade Organization (WTO), and some other global, regional and bilateral IR serve as a platform for states to meet and work for the proper functioning of the IPE. It can be argued that although the North has the largest economy in the world and master the most important economic institutions, but the South is composed of a majority of the population and can not be ignored in the ICE, because of certain emerging power in northern China, Brazil and India. However, in this anarchic world where each state is sovereign and there is no authority sovereign over State agents as hegemonic and powerful United States of America (USA), never give up its dominant position in the world and uses economic means and politicians to pursue and achieve their goals in the world. Different theoretical perspectives such as the use GO liberal, constructivist and realistic structural analysis economic and political. But the realistic approach used in the following analysis of the IPE disadvantaged South and North-South terms are carefully analyzed. This state is assigned a world domination despite the increasing globalization of anarchy, where the main international organizations are made up Northern and Southern States. However, it is also pertinent to note that developing states have been unable to exercise their sovereignty and self determination.
The importance of IPE
In international politics, the state is the main actor plays a crucial role in the ICE. Arguably, in the current era of globalization with many institutions and international agreements such as WTO, IMF, regional agreements such as the European Union (EU), multinational corporations (MNCs) such as Nokia, Gazpom, General Motors (GM), Internet, media, pressure groups, etc. have reduced the power of the state. But the state still plays an important role in IR political and economic spheres that States are responsible for the final decision in international organizations (IOs) to be members of their creators y. It should be noted developing countries are the main shareholders, therefore, exert considerable influence in major decisions of the institutions (IFIs). Anderson et al. claim there are no American political interests often undermine the effects of foreign loans and aid distribution policies of international financial institutions as the World Bank in general. Its for the fight against poverty and development in developing countries in the South have been compromised over the interests of the United States (Anderson, Barnebeck Thomas Hansen, Henrik & Markussen, Thomas (2005). As such, there are clear cases of the decisions of the World Bank loan that provides loans to Pakistan under the influence of U.S. interests policy. As such, official development assistance from the World Bank to Pakistan tripled from $ 226 million in 2001 860 million in 2002, after 9 / 11 terrorist attacks on U.S. soil and its military commitment in Afghanistan (Anderson et al.: 3). The reason for this aid is that Pakistan has been identified as the first line "by the Bush administration's global war on terror" (GWOT) and the neighboring state of Afghanistan.
States have foreign policies and economic security. But it is clear that substantive competence of the states depend heavily on the skills intangibles as an economic lever. Nationally, states have policies to protect the rights of private property and the provision of infrastructure such as communications and transport, which governs the interactions of efficient market. While States are foreign policy and to the IFI and international organizations (IOs) to pursue and protect its interests abroad. Therefore, H. Cohn Theodore (2008: 4) argues that "the wealth of a state and market size are often closely linked to its military and political. "In PEI, DC competition with each other for international influence and promoting their interests, and therefore exploit LDCs with carrots and sticks.
Realistic representations of IR and IPE
According to statements realistic, there has no central authority over the state due to the anarchic nature of international system in which each state (the combination of lowest to highest y) must protect its interests and ensure their survival "self-help is the standard IR. Thus, the" realists examine the state to be the principal actor in IR, and focus on the preservation of national sovereignty. "(Theodore H. Cohn, 2008:52). If the state has a monopoly and control of internal violence and power, said to be sovereign of the house while it was, which is sovereign is not occupied by another outside the state. There may be controversial in this statement because the world is the anarchic state in which each must maximize its military power and economic and, in this scenario, the most powerful states of North and Central will not let the other southern states to exercise their will and sovereignty. The former tend to interfere the sovereignty of the latter with different strategies, both economic and military. Furthermore, powerful states are also affected by weaker states through economic incentives offered by international economic institutions such as WTO, IMF, World Bank, etc. Therefore, the "realistic policy study foreign economic discussed from national and transnational actors in explaining the policies of a state. "(Theodore H. Cohn 2008:52)
Although realism can be criticized by liberals and Marxists to be occupied by the security problem, but there are factors that have contributed to the renewal of real interest international trade and the economy. First, "the decline of the Cold War and the growing disorder in the world economy forced many realistic to expand their vision beyond security issues. "(Theodore H. Cohn, 2008: 56). You could say that Western economic relations were boom in U.S. leadership in the 1950s and 1960s but major changes in 1970 and 1980 (great power of the Organization of Petroleum Exporting Countries (OPEC) the relative decline of U.S. hegemony, and the external debt crisis) has had destabilizing consequences for the global economy. These new developments have highlighted complex realistic to recognize the inevitability and importance of the economic issue that once was considered the issues of "low politics." Second ECI realistic factor of interest was his argument liberal and Marxist studies to be an economist, as "have exaggerated the importance of the economy and underestimated the need of IPE realistic studies stressed the role of the state. "(Theodore H. Cohn, 2008: 57).
However, it should be noted that states are "actors rational "IR, regardless of membership in the North or South. For assurances of survival and maximization of power, wealth is inevitable. Therefore, the States in the periphery are aware of the complexity and importance of international economic institutions, without which there can flourish. As such, China has decided to be become WTO members during the 1990s, given the time required and the maximization of their economic power.
International Economic Relations
International economic relations between the North-South and South-South marks a climate of distrust and competition. Due to the security dilemma ", earnings on are given more importance. Political leaders pay special attention to policies to fight against other States; competitors through various strategies the provision of financial assistance for developing countries, tariffs and other barriers to trade. Realists argue that "even if two states are absolutely more wealth, in political terms, is the effect of these increases in positions of relative power is of paramount importance. "(Theodore H. Cohn, 2008:52). Royalist analysis of international economic relations in terms of zero-sum game where winning a state is considered as the loss of others. As an example, U.S. presence in Afghanistan and Pakistan because it is considered the front-line state in the global war on terrorism (GWOT) can be regarded as containing China. China poses an open challenge to U.S. dominance in the global economy. Pakistan is a less developed South Asia, which is strategically very important for the economic development of China. Grace in Gwadar port (a deepwater port in the Pakistani province of Baluchistan), China is a neighbor Pakistan can reach the Gulf region, which can serve a very important energy corridor for China. And interestingly, China is fully aware of its importance and there was a joint project of Gwadar port in progress but because of the insurgency in Baluchistan, progress can be made and therefore a setback for China and Pakistan. It is alleged that the United States and North Atlantic (NATO) are causing problems in Baluchistan. Shah, Anup (2009) argues that the security dilemma is common fears of states competing for limited resources and competitors are many. Therefore, the states to build weapons of self defense and for this purpose the least developed countries to look out for backup.
With regard to international economic regimes or institutions referred to "Liberals assume that the IMF, the World Bank and WTO are politically neutral and will benefit all states adhering to liberal economic development. "(Theodore H. Cohn, 2008:52). Whereas realists agree with them on the basis that the most powerful states as rules of these organizations according to their own national interests IO serve as "arenas for acting on power relations." (Theodore H. Cohn, 2008: 52). As such, a simple majority is required in most of the IMF, but majorities of 75 and 85 percent are required for some important decisions such special majority vote gives a veto to the U.S., the EU and the LDCs. However, LDCs are also important, the unorganized group of states with few resources can hardly unite to block a decision by the IMF. Thus, the system of voting power in the IMF promotes the interests and objectives of the North (Theodore H. Cohn, 2008:132).
Developing countries in international trade
In the current era of globalization, this can not be denied that the South can not be ignored by the powerful North as a country that belongs south as China, India and Brazil are the major players in the IM. United Nations (UN) Conference on Trade and Development (2004: 2) argues that models of international trade law is changing at an increasing part of the South in international trade and development. of the South in world trade of 20 percent mid 1980 to 30 percent. The share of manufacturing in developing countries has also increased by 20 percent of its exports ($ 115 million dollars) in 1980 to almost 70 percent (1,300 billion) in 2000. In addition, U.S. has imported more goods from developing countries one percentage point in 2003 with an increase of 40 percent of its share in exports to developing countries. Nearly half of Japanese exports and one third of EU (excluding intra-EU) are delivered in the South.
Similarly, Mohammad Razzaque (2007) argues that from 1985-2005, imports between developing countries increased from 97 billion to over $ 1,000. However, you must be careful to note that, in fact, East Asia is the most active, representing 72% of all trade in manufactured goods SSC. Top ten economies of the South accounts for 90% of manufactured goods and 72% of products agricultural. However, with the exception of Asia and some other trade categories than South-South is dominated by primary products. For many countries, natural resource products with high intensity were the most dynamic sectors such as minerals and precious metals, synthetic rubber, nickel, coal, petroleum products. Developing countries also face tariff and nontariff barriers that affect their performance in international trade.
Realists see the problems of PMA caused not only by poverty but also their weak position in IR. The position of weakness in the south compared to the vulnerability of the North is always to them in this anarchic world. As such, the post World War II was designed for more powerful and victorious countries in the world and international institutions still dominated by these powerful actors in IR. This is evident in the United States most powerful and influential Nations Security Council is fully in control of the states powerful in the world like the United States, United Kingdom (UK) France, Russia and China. Same is the case of international financial institutions could not be run without the financial support Political and West or North, dominated (Gruffydd Jones, Branwen: 1). However, there are certain strategies that are used by the South to minimize their vulnerability, including
- LDCs are dependent on their larger numbers to participate in collective action in relation with respect to the North because they have little individual power.
- LDCs are dependent on the participation of government to promote its development. The least developed countries have opted for policies such as import substitution and export-led growth as the government completes the market.
- WFP attempt to alter plans and international economic organizations. In the end World War II, the United States as a hegemonic power has helped establish international plans for the defense of liberal principles, norms, rules and procedures decision. (Theodore H. Cohn, 2008:65)
China in the global economy and the implications for the South "
Owing to their increased participation in trade Internationally, China entered the WTO to become a full member of the latter on December 11, 2009. China's accession to the WTO is not independent, but has some consequences for the rest of the South. China is the fourth largest industrial economy the world, but as a country "in development and according to official statements, delivered before or since joining the WTO, China is in favor of countries developing. As an example, "during the Third Ministerial Meeting on China's accession to WTO has become imminent, the Chinese Minister of Foreign Trade and Cooperation Economic, Shi Guangsheng made five proposals for the integration of development objectives of developing countries in trade negotiations. "(Tanzimuddin Muhammad Khan, 2004: 13)
After China's accession to the WTO, its official newspaper, China Daily says that "China's participation in a new round of trade negotiations, as the largest developing countries, strengthen the capacity of developing countries to collective bargaining, so it is possible to change the balance of power between North and South. He says he also will "accelerate the cure for these problems as a multilateral trading system uneven, and ineffective implementation of the Uruguay Round Agreements. "(Khan Mohammad Tanzimuddin, 2004: 14). This demonstrates the possibility of changing the balance of power in favor developing countries with the help of the Chinese leadership, which is also a developing country. Realists claim that "a state emerging hegemonic international system prefer an opening, as it can contribute to economic growth, national income, and political power. "(Theodore H. Cohn, 2008: 59).
Without But if we analyze the position of China in terms of competition or a zero-sum game realistic, you may become visible as the fear that the country exports Developing countries face greater competition from China could be displaced by the latter due to similar comparative advantages and export destinations, including (Mohammad Khan Tanzimuddin, 2004:14), which also represent realistic hegemonic and coercive power. Therefore, neo-realist claims that creates a hegemonic state "regimes to preserve its international economic and political interests "and" international regimes are based on the anarchic structure of international relations, which reflects the distribution of capabilities in the international system. "(Khan Mohammad Tanzimuddin, 2004: 15)
The U.S. reaction Rising Chinese Trade
U.S. is well aware of China's growing economic power is first taken as a threat to the hegemony of the United States. The royalists, in hegemonic stability theory to protect against the hegemony of "coercive" (Theodore H. Cohn, 2008: 59) you can use certain coercive measures as threats, sanctions, cutting off trade, and creating other obstacles to trade to the challenger. The United States is the largest overseas market for China and second largest source of FDI investment. According to the Department Congressional Research (CRS) Report (Thomas Lum, Dick K. Nanto, 2007) prepared for the States Congress United, U.S. imports from China have increased dramatically, not only in the workplace but also in some sectors such as technology desktop computers and data processing, telecommunications and sound equipment and electrical machinery. All these developments show an explicit threat of Southern countries to the United States hegemony. In return, Congress believes that access to Chinese markets, property rights Organization (IPO) protection, also focuses on the U.S. trade deficit meeting with China, there are also allegations of China dumping policy by selling products at prices low at the international level, commitment to currency manipulation, and exploitation of its workers for economic purposes. Therefore, the 109th U.S. Congress introduced bills to impose trade sanctions on China, the anti-dumping and safeguards against Chinese products and that forced him to remove non-tariff trade barriers (Thomas Lum, Dick K. Nanto, 2007). This analysis shows a state competition and economic confrontation between the powerful state in the north and the emerging power of the South.
The disparity between North and South and the challenges of the "South"
However, some developing countries (China, Singapore, South Korea) made unprecedented progress in the OT, but most developing countries face lower living standards and marginal participation in the international trade markets. The latest Human Development Report 2005 UNDP (Grffydd Jones, Branwen) said that one in five people in the world, more than one billion people survive on less than $ 1 per day. These people live in abject poverty that threatens their survival. Another 1.5 billion people living on $ 1 – $ 2 per day. Over 40% of the world's population lives in extreme poverty are under privileged. More than 850 million people, including a three preschool children are malnourished and severely affected. More than 1 billion people lack access to safe water and 2.6 billion lack access to sanitation improved (Grffydd Jones, Branwen: 3). Most of the poor belong to the South and non-living are the Europeans in former European colonies concentrated in Asia and Africa.
The North is dominant and powerful to resist attempts by the South in international trade. According to the United Nations Conference on Trade and Development "of the primacy North in international economic relations will be maintained. "(13 to 18 June 2004: 3) Paul Prebisch, one of the main advocates of the new economic order International (NIEO), states that "the institutions in the heart of the world economy have more influence in the world economy in the institutions of the periphery. "(Paul F. Diehl, 2001: 265). Therefore, it is difficult for the South to review the international economic relations. The South will continue to influence developments of the world economy and trade. There are major differences between the economies and living standards of the North and South and will take time to examine these trends. There Several attempts by the South struggle against the influence of the North in world trade and economy in an attempt NIEO, non-aligned, the oil cartel OPEC 1970s, and the creation other regional organizations and economic. There are many indicators of the disparity of income levels in North-South participation in world trade, including the value added in trade, the size of economic operators, the pattern of specialization, and other structural and institutional factors.
We can see that the average GDP per capita of developed countries set about 27,000, or 20 times higher than that of developing countries. Less than five members of the WTO, provided developing countries to developed countries $ 10,000 per capita income (UNCTAD period 2004:3 June 11). It also notes that the difference economic indicators in developed countries and developing countries expressed when looking at cross companies (TNC). In terms of value added services to multinational corporations from developed countries are larger than the size of economies of most developing countries: for example, value of Exxon Mobil is bigger than the size of the economy of Pakistan and Chile, and its total external assets are approximately equal to total foreign assets transnational corporations from developing countries as a whole top 50 (11th session of UNCTAD, June 2004:3). In addition, foreign sales of Daimler-Chrysler AG 40 percent greater than the total African exports as a whole, while those of Honda Motor Corporation are greater than the total value of exports from India (11th session of UNCTAD, June 3004: 3). These statistics clearly indicate a marked difference between the North and South in terms of economy and world trade, which not easily removed or modified.
International Financial Institutions (IFIs) and the South
After War of the international financial institutions have been designed by powerful Northern states and are considered very influenced by them due to their economic power and influence. Developing countries have the primary responsibility of these institutions, making it easy for them to shape their decisions in their favor. These international financial institutions as WTO, IMF, World Bank, said the regulation and harmonization of international finance and commerce. They also provide international standards, laws, regulations Institutions, principles, guidelines and thus play an important role in the process of globalization. Thus, realists argue that "globalization (As it occurs) increased only because the States to be more. "(Theodore H. Cohn, 2008: 53). In the post World War II it was possible for West to open international markets where their finished products and technologies to find buyers who are less able and could not compete due to lack of sophisticated technology. As realists say that "the biggest state can open or close world markets and globalization can use to improve their positions of power in relation to the most vis low. "(Theodore H. Cohn, 2008: 53).
In theory, international financial institutions are said to be in place to alleviate States by assisting low, and based on standards and norms of equality and self determination. But in reality, things are very different and these international financial institutions are regarded as obstacles in the way of development of developing countries. As such, due to the considerable complexity of the rules of the WTO and its institutional structure, a delegate from a developing country may not follow all the events of the WTO. According to one estimate, more than seventy WTO councils, committees, groups of work, and other groups involving more than 2,800 meetings every year. (Tanzimudin Mohammad, 2004: 4). It is believed that most developing countries can not afford attend meetings of the WTO in the metropolitan capitals of North and little support is received by the delegates of the South. Realistic analysis shows that multilateral regimes WTO trade, interest only on the wagon ", which includes developed countries are the North and the United States, European Union, Japan and Canada, to the detriment of developing countries (Khan Mohammad Tanzimuddin, 2004: 16), while Sideling that the interests of least developed countries and exploit their weaknesses. Gregory Shaffer (2006: 1) argues that although developing countries vary considerably, depending on their size, geography, population, economy, etc, but the challenges they face in the WTO can be classified into three categories:
(I), relative lack of legal expertise in law WTO and the ability to organize information on trade barriers and the possibility of fighting;
(Ii) limited financial resources, including hiring an external law consultant to effectively use the WTO legal system, which has become increasingly expensive;
(Iii) The fear of political pressure economic and members of the exercise of market power, particularly the U.S. and the EC, which undermines their ability to lodge claims in the WTO. We can classify the major challenges that the limitations of legal knowledge, the financial and political power, or, more simply, the law, money and politics.
Del Similarly, also criticized the IMF for developing countries and some non-governmental organizations (NGOs) to be influenced by the North in its decisions and policies. Graham Bird (Paul F. Diehl, 2001: 277) criticizes the IMF for its impartial decisions and avoid discussing the progress of developing countries. He argues that "in its creation, the IMF has been not considered any specific role in developing countries, but now has become exclusive to those countries that are part of their clientele. "One of allegations against the IMF is that "wrong by becoming the Redevelopment Agency." (Paul F. Diehl, 2001: 277). The NGOs also argue that the IMF has been inappropriate development agency because "the IMF has supported the policies were more harm than good and that the Dess development, especially the poorest, better off without her. "(Paul F. Diehl, 2001: 277-278).
The IMF also has an influence on the design of economic policy of recipient countries financial assistance. Therefore, the IMF makes its voice heard in the powerful "exchange rate, domestic credit creation, interest rates and imbalances tax. "(Paul F. Diehl, 2001: 283). It also exerts its influence and interference in the" structural conditionality covering pricing policies, liberalization trade and privatization, the structure of taxes and public expenditure and financial sector reform "(Paul F. Diehl, 2001:283)" The performance over seems to be weak monetary rigor. Results are also discouraging policy indicating a worse performance in economic growth. Eduardo Sebastian saves an average failure rate Economic growth 72%, and the disappointing results, even as PS said Heller et al. Nsouli Zulu and SM in the case of Africa. "(Paul F. Diehl, 2001: 301). These results demonstrate that not only the progress of developing countries is hampered by Northern institutions, dominated, but it is also undermine its sovereignty and its right to self-determination for which collective action is needed in developing countries In addition to supporting economic policies.
Conclusion
International political and economic relations are based on self-help system marked by mistrust and competition between states, especially the "North" and "South." This does not mean that there is no cooperation in the IPE and IR, but interest underlying policy objectives are in the back of one such cooperation. Instead of helping and assisting the most poor South, the Fund has created the North rich hinder the development of developing countries hegemonic states and powerful interfere with its sovereignty and, often, to destabilize its interests. ECI is very important in politics where the actions of Member States and the intentions are marked by self-interest and survival. Although there are states like China that have meaningful participation in international trade, but most countries and "South" have only a small part in international trade general and trade in natural or rare Resour.
References
Anderson, Barnebeck Henrik Hansen & Thomas Markussen, Thomas (2005) " United States policy and the World Bank IDA credit " Institute of Economics, University of Copenhagen, May 2005:8
Cohn, H. Theodore (2008) comprehensive theory of political economy and 4 Ed (New York: Pearson)
F. Diehl Paul (2001) The Politics of Global Governance 2nd edition (Colorado: Lynne Rienner Publishers, Inc.)
Jones, Branwen Gruffydd 'Race in Ontology of North-South = http://www.allacademic.com//meta/p_mla_apa_research_citation/0/9/8/7/4/pages98742/p98742-2.php , From December 4, 2009.
Khan, Mohammad Tanzimuddin (2004) "China, WTO and developing countries: a constructivist analysis"
"New Geography of International Trade: South-South cooperation in an increasingly interdependent world" United Nations Trade and Development 11 session, Sao Paulo, 13-18 June 2004, http://www.unctad.org/en/docs/td404_en.pdf
Shah, Anup (April 13, 2009) "United States Aid and Assistance URL = Foreign http://www.globalissues.org/article/35/us-and-foreign-aid-assistance , From November 24, 2009)
About the Author
My name is Shahzad Ahmad Raja and i am a masters student at Linkoping Univeristy, Linkoping, Sweden. I am doing my masters in International European Relations.
The New World Order Financial Agenda!
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