Changes in Global Political Economy
Many experts agree that the world is changing (Kennedy; Acemoglu; Drucker). There though exist two points of view on the nature of these changes. According to Acemoglu et al, these transformations are taking place now, “in the midst of uncertainty and turmoil” (1). Drucker in turn suggests that the world and its economy “has already changed – in its foundations and in its structure – and in all probability the change is irreversible” (1). Political economy is a dynamic organism whose development depends on a variety of factors. For many years, globalization was considered a trigger of fundamental changes taking place in political economy. The veracity of this statement is confirmed through examining the nature of globalization and identifying its place in political economy.The paper tends to agree with Drucker in the sense that changes have already occurred, and it is time to sum up results and plan development strategy. Based on this assumption, the paper sets itself two major aims. The first goal is to identify and analyze the aspects of political economy that have changed under the influence of globalization. The second objective is to review aspects that remain unchanged. While weighing changing and stable aspects, the paper concludes that globalization involves a range of means to change the nature and the face of the global political economy.
Globalization and Political Economy
To ensure a substantiate discussion, it is recommended to define globalization and political economy, and identify ways in which they are interconnected. Al-Rodhan suggests that the main problem with achievement of this objective is that globalization is neither single concept, nor process that can be defined “with a beginning and an end” (3). The ambiguity of the phenomenon gives rise to the emergence of various definitions. A simple and straightforward one is suggested by Swedish journalist Thomas Larsson noting that globalization “is the process of world shrinkage, of distance getting shorter, things moving closer. It pertains to the increasing ease with which somebody on one side of the world can interact, to mutual benefit, with somebody on the other side of the world” (9). A more formal definition stems from the study conducted by Al-Rodhan. According to the expert, “Globalization is a process that encompasses the causes, course, and consequences of transnational and transcultural integration of human and non-human activities” (Al-Rodhan 5). Given the accuracy and comprehensiveness of this definition, it will serve as a benchmark of the present discussion.In turn, political economy is defined as “the study and use of how economic theory and methods influence political ideology” (Investopedia). In his book The Theory of Political Economy, Jevons suggests that the science rests on a number of notions that have an apparently simple character – utility, wealth, commodity, land, labor, and capital. Understanding these notions involves understanding the whole science. It would be logical to assume that globalization and political economy are interrelated. The blurring of the boundaries between the countries suggests the reallocation of existing resources, which in …