Into the New Century Global Politics and Economy

Competing in Global Economy U.S. now serves 2 roles – Promoter of global trade – Example for newly industrializing nations to emulate U.S. still looking for ways to stay ahead in global economy, and remain economic powerhouse

Free Trade America plays major role in globalization Free trade was hotly debated policy in U.S. govt. – Republicans Support interests of big business Support free trade agreements – Democrats Sympathetic to labor interests Opposed legislation that would cost workers’ jobs Goal: lower cost that free trade creates w/out losing American jobs to other countries

Free Trade Contd. Clinton challenged traditional Dem thinking – Supported free trade blocs – Increase prosperity of certain regions, while protecting economies Europe was example of free trade bloc – 1993: European Union (EU) – Coordinate monetary & economic policies – Adapted single currency (euro) Demonstrated economic efficiency – EU encouraged trade, challenged U.S. economic leadership U.S. free trade proponents believed U.S. could benefit from similar system

NAFTA North American Free Trade Agreement – Direct response to EU – Originally proposed during Bush administration Called for gradual removal of trade restriction Agreement blocked by Congress – Supporters arguments Promote economic growth Reduce prices Increase exports Encourage investments – Opponent arguments Manufacturers to relocate to MX Many American jobs lost Pollution would increase

NAFTA Contd. Clinton embraced NAFTA when he was elected – Pushed NAFTA through Congress – 1994: NAFTA went into effect – 3 member countries have since signed additional agreements Environmental protection Safety standards Workers’ rights

Global Trade Clinton signed 270 free trade agreements – 1994: General Agreement on Tariffs & Trade (GATT) Reduce tariffs & promote free trade – 1995: World Trade Organization (WTO) Replaced GATT Expanded authority to negotiate trade agreements, settle disputes, & enforce compliance – Continued support of World Bank

Global Trade Contd. Critic’s Views of WTO & World Bank – Favor business interests over environment & workers’ rights 1999: WTO meeting in Seattle – Protesters filled streets – Disrupted proceedings of meeting Most Americansagree that Globalization had positive effects – Exposure to new ideas – Technology – Communications Nations involved in free trade become more democratic Normalizing trade- free trade with countries rather than imposing sanctions based on disagreements- can strengthen economic ties

America on Global Stage Fight with communism is over U.S. needed to develop role for post-Cold War Americans seemed willing to help abroad – Fearful of military intervention abroad – Fearful of a second Vietnam War Various regional conflicts meant Clinton found it necessary to intervene – Different involvement yielded mixed success

Somalia 1980s- Civil war in Somalia Govt. disintegrated, fighting caused widespread famine U.S. & UN troops sent to bring peace (coalition) Coalition falls apart – Several countries suffer casualties – Those countries withdraw troops UN eventually withdrew troops War dragged on for years, devastating country

Haiti Jean-Bertrand Aristide elected President in 1 st free election Military coup overthrew Aristide less than 1 year later – Plunged Haiti into turmoil – Thousands left to US as political refugees – Many sent back by US officials – 1994: Clinton sent troops to Haiti to restore Aristide to power U.S. involvement helped a little – Within decade, economy plummeting – Disease & crime increasing

Fighting in Easter Europe Collapse of communism caused break up of Yugoslavia – Communist leader, Tito, contained ethnic & religious differences – Tito died – Communism collapsed – Yugoslavia left with no unifying force – 4/6 countries formed their own states – Suppressed religious & ethnic differences boiled to surface

Bosnia Bosnia enters civil war – Eastern Orthodox Serbs – Catholic Croats Ethnic/Religious rivals – Bosnian Muslims Serbs/Yugoslavia attached Bosnians & Croats – Forcibly removed from homes & eventually murdered Ethnic Cleansing: state-sanctioned mass-murder, violence, and rape UN intervened eventually – “Humanitarian aid” – Conflict went on for years before “world community” intervened to stop slaughter

Ethnic Cleansing

NATO Forces Clinton encouraged NATO to bomb Serbian strongholds – 1 st time NATO participated in combat – Use of force brought quick cease-fire December Dayton Accords establish federated, multinational Bosnia – Ethnic cleansing had stopped – Problems not solved Kosovo (Serb Province) – New violence – Involved ethnic cleansing – Spread to Macedonia & Albania – NATO forced Serbs out of Kosovo

U.S. & Middle East 1990s- fighting btwn. Palestine & Israel grew fierce Conflict caused instability in the region Clinton worked to address the issues – U.S. now becoming more of a target

Peace in Israel Palestinian & Israelis meet in secret in Oslo, Norway – Declaration of Principles Promised self-rule in Jericho & Gaza Strip Promised security for Israelis – Did Not address Israeli settlement of West Bank Major issue that led to chronic violence Did not placate extremists on either side Neither side had any interest in compromise – Israeli prime minster, Yitzhak Rabin signed declaration assassinated by Israeli religious fundamentalists

Israel Contd Clinton invited Palestinian & Israeli prime ministers to Camp David for meeting – Palestine: Yasir Arafat – Israel: Ehud Barak – Goal: Peace agreement No agreement signed – Arafat not happy with terms – Barak ousted in Israel Ariel Sharon took over Opposed any concession to Palestinians Palestinian suicide bombings increased Crackdowns by Israeli military increased

Terrorism Al Qaeda exploded bomb in World Trade Center – 6 people killed – injured Al Qaeda led by Osama bin Laden – Saudi businessman – 1980s- fought on side of Islamic fundamentalists – 1990s: formed Al Qaeda – Purpose was to end American involvement in Muslim countries – car bombs in Nairobi, Kenya, Dar es Salaam 225 killed 5,500+ injured – USS Cole attacked 17 sailors killed Attacks angered Americans; frustrated politicians