1. Dr Maurice Mullard Lecture 4

2.  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.  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.  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.  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.  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 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.  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.  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.  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 dream of independence – to military rule – fragmented and the lost continent  Arab League  Islam  Oil and Politics

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