Abstract
Political economy of globalization has emerged to become a political economy of world society asking for global roots and mechanisms of global capitalism in recent times. In difference to clean economic models of forecasting economists, the recent Covid-19 pandemic has shown how fragile those clean models with their limited set of assumptions are. The clean world of certainty where all external variables are known and calculable does not exist. Instead, we are living in a dynamic world which comprises different degrees of complexity leading permanently to effects which are not forecasted. The chapter discusses conceptions of globalization and point to the fact that numerous studies have found a close relationship between economic globalization and trade liberalization. Trade liberalization makes the economic and social world smaller and times of interaction faster but has been increasing the global lottery of world capitalism where winners and losers emerge newly and simultaneously. Those winners and losers can be classified as citizenship premium and citizen penalty, which is the reduction in income from being a citizen of a poor country. The current mantra of free-market capitalism that is based on principles of deregulation of economy and privatization of industry must ask who takes final profit by neoliberal economic structuration processes.
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Notes
- 1.
For different models in the history of economics and econometrics, see Morgan (2012).
- 2.
The American economist Joseph E. Stiglitz was born in 1943. He was awarded the Nobel Prize for Economics in 2001 (jointly with George A. Akerlof and Michael Spence) for his work on markets and information, especially on the asymmetry of information.
- 3.
Neoliberalism as an economic theory is based on fundamental premise that free markets provide best possible economic outcome and any state intervention is detrimental for economic growth.
- 4.
However, there are also those (for detailed discussions, see Polanyi, 1944) who are highly sceptical about these neoliberal claims. Neoliberalism is often criticized for being a one-size-fits-all ideological model.
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Naz, F., Bögenhold, D. (2020). Introduction: Political Economy of Globalization. In: Unheard Voices. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-54363-1_1
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