Summary on 'Runaway Globalisation without Governance' by Nayan Chanda 9/9/13

Globalisation without governance has resulted in problems, risking globalisation to be going in the wrong direction. Since the beginning of human history, distinct communities have gradually become interconnected. The system of governance has evolved through time but have always lagged behind. The early form of regulation from interaction between humans from different lands sought to protect their native goods, and to earn revenue. It was not until the nineteenth century when written rules was formed but even then, was unable to prevent two world wars. The reason humans seek out other humans in distant lands has remained unchanged and that is to attain a better life. With the modern day globalised economy reaching new heights, environmental and health problems arise. The global community has to be aware of the problems of migration, terrorism, global crimes and risks of nuclear conflict. The regulation of people in a limited space constitutes governance. Yet, any form of a global structure was not formed until the twentieth century when massive trade occurred. Governance lagged behind further when it took the General Agreement on Tariffs and Trade (GATT) 50 years to set up the World Trade Organization. Yet throughout history the issues affecting the traders remained unchanged and that is to protect its industries. Determined pirates will manage to steal the products and processes. The poor showing at the International Exhibition of Inventions in Vienna in 1873 in the manifestation of that fear leading to the formation of the Paris Convention for the Protection of Industrial Property in 1883. Empires were the main players in governance and as they grew so did their control. Yet this comes at a price when the Mongols caused the bubonic plague to spread across Europe killing a third of its population. To tackle this issue, quarantine became one of the first public health policies. World Health Organization (WHO), formed in 1948, became an important player of global governance as demonstrated by the SARS pandemic in 2003. Governance lagged in sea-borne trade and religion was the primary form of governance. The colonial expansions of Europe in Asia led to the development of ‘global commons’. The use of technology also questioned the lack of proper regulations. The United States spearheaded the need for a global standard time for reference. Global governance usually neither require the surrender of sovereignty nor the compromise of any nation’s vital economic or security interests. Now as the world is rendered borderless, the lack of governance is the greatest challenge to globalization. The fear of nuclear weapons falling into the wrong hands has resulted in the Nuclear Non-Proliferation Treaty. Another issue is environmental pollution and climate change. As governance improved, things took a wrong turn and ironically, international ability and willingness to confront global issues collectively has declined. The US refusal on nuclear and climate issues puts any form of global governance on hold as it is the most powerful force in integrating the world, including promoting global rules and the establishment of the United Nations.

Summary Exercise in Class 5/9/13

The increase in oil prices caused by fear has detrimental effects on the global economy. Military conflict between Israel and Iran has driven oil prices skyward mirroring the last 3 global recessions that was caused by the Middle Eastern conflict. The increase in oil prices in 2008 aggravated the financial crisis plunging the global economy into recession.Punitive economic sanctions were taken to restrict the nuclear development of Iran, but Iran responded with world-wide attacks on Israeli embassies. As a result, the US is preparing for future military confrontation, which may cause rising oil price, global economic turmoil and instability in the Middle East.