1. Global power blocs Dr Maurice Mullard Lecture 4

2. Globalisation Markets and Blocs • TRADE – OPEN MARKET LEADS TO OVERALL FALLS IN PRICES BECAUSE OF OVERALL INCREASES IN SUPPLY • OVERALL WAGE REDUCTIONS IN THE MORE COMPETITIVE SECTORS ESPECIALLY EXPORT SECTORS • TECHNOLOGY – SKILLED AND UNSKILLED WORKERS

3. Seeking to Influence Markets • Globalisation and geographical spaces • Blocs and Power • Who Gives shape and defines globalisation • Financial crisis Argentina Asia Brazil the Washington Consensus • The Emergence of China • The New Recession 2007

4. Fragile structure of global finance • Recession started in USA sub prime mortgages but this was a trigger need to explore structural causes • Fragile finance markets • Capital Requirements • Liquidity • London and New Yorkat hub of global finance • 14 banks control 90 per cent of global assets • US 6 banks control 50 per cent • High concentration and interconnected

5. The Making of Groups of Common Interests • Oil OPEC Cartel decide oil output and prices control supply – oil and political leverage 1973 74 inflation crisis • Primary commodities coffee cocoa coal iron less political leverage poor countries • Theory of coupling and De coupling • Relationship Developed Economies and Emerging Economies

6. The EU • Most influential economic bloc – economy stronger than US – enlargement to 27 member states second largest GDP • EU diverse and plural less cohesive • Ideology – European tradition of welfare and US Market approach Euro and the dollar as future global currencies • Subsidies for agriculture environment regulations • Responding to Global Recession 2009 • Germany dominance strait jacket of the euro • Austerity in ascendance

7. The EU response to recession • The European Central Bank priority of monetary policy low inflation • Recession safeguarding the banks • Criticisms of the Anglo US liberal model as failed model • Willingness to provide subsidies

8. The USA • Military power – History of Corporate America – military Industrial Complex • History of US protectionist policies • Irony of American democracy – political elite • Weakness of US Economy 2010 • Consumer of last resort • Decline in net worth

9. US Economy 2009 • GINI INCREASED SINCE 1990S- BLAMED ON GLOBALISATION – JOBS LOSSES Unemployment 15 million in June 2009 • US Bailout of Banking Sector Obama Stimulus Package • Health Reforms • From Falling of a Cliff to Green Shoots • Decline of the US Consumer

10. The Ascendance of China • China Growth in 2009 8.9 per cent EU and US contracted Forecast that China would overtake US 2040 china now second largest economy • Chasing primary commodities Oil food iron ore • Danger of global imbalances • Savings and Exports

11. Pan Africa Arab League • Pan Africa dream of independence – to military rule – fragmented and the lost continent • Arab League • Islam • Oil and Politics

12. Where the uk • Economy 1.4 trillion about 5th largest economy • In and out of eurozone • Austerity • Forecast w recession • Where the growth