Sunday, March 3, 2013


THE CORRELATION!
Economy, Politics or Economy-Politics





There is a game; on one hand, you have an opportunity to globalize the economy (Think about Hong Kong or Swiss) and on the other hand, you implement an economic dogmatic approach like Cuba or Iran (or an old example of Soviet Union).  The question is if the globalization does help nations, and if all know that, why still some nations are deprived of that.



Dogma is the official system of belief or doctrine held by a religion; Yet it introduce in economy by Peter Gordon. (http://www-bcf.usc.edu/~pgordon/index.php)



Nowadays, almost all economists are agreed that globalization is happening; an attempt to abolish barriers, not just in economy, but also in politic.  
This term is new and in Northern America is mostly comes with WTO or NAFTA. The question is;
How globalization is getting control?
How countries control global economy?
How small economies influence the larger countries?
How cartels are involved and with what degree of influence?
And more importantly
Who control who?
Are all the nations are taking advantages of globalization or some nations hurt?
What is the turnover of current global economy?
How globalization is getting support?
WHAT IS THE ROLE OF POLITICS IN GLOBALIZATION?
What is the “Economic Backwardness” in political perspective?





Economy is the part of the politics, inevitably the main part. Nations’ economic horizons get changed by political priorities in most of the times (though, I can bring an example like China that is totally reverse. They do organize their international relationship with other countries with respect to the possibility of taking economic advantages. China does use the power of Veto on the United Nations Security Council against US or England, just for the economic reasons, not because of the difference in political point of views. They ignored many sanctions activities against Syria or Libya, since they believe that trade with the isolated countries are much more convenient (and also beneficial) than doing the same with the WTO members). In other words, economy is serving politics. The other example could be OPEC.

OPEC is the Organization of the Petroleum Exporting Countries. Probably, the most influential economic cartel in the world.

OPEC decides about the price of the 68%of world’s energy (http://www.opec.org/opec_web/en/data_graphs/330.htm). Though, most of the decisions are coming from the countries that are not producers, yet are consumers. Here, we can see how developed countries (mostly, Western countries) dominate OPEC’s decision and how politics controls economics.
Conclusion; globalization exists. No Doubt. Countries do take advantages of that, but not all of them. Since, the amount of economic resources is limited; there is no chance to have positive affects everywhere. The positive side of the globalization belongs to countries with stronger participation with Western countries (and recently China/Russia) and the negative impacts go through the countries with isolated political systems (such as North Korea, Iran, and Syria). In other words, globalization does not general more monetary resources. It just shifts available resources from a point to other point.

The law of conservation of monetary resources looks like the law of conservation of energy, first formulated in the nineteenth century, is a law of physics. It states that the total amount of energy/money in an isolated system/world remains constant over time.
                  



Endnotes:

-          Marshall, Alfred. (1890) Principles of Economics.
-          Drazen, Allan (2008). "Political business cycles," 
-           Rose, N. L. (2001). "Regulation, Political Economy of
-           McCoy, Drew R. "The Elusive Republic: Political Economy in Jeffersonian America",
-          Lohmann, Susanne (2008). "rational choice and political science,"
-          Acemoğlu, Daron, and James A. Robinson (2006). "Economic Backwardness in Political Perspective

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