International Political Economy Series Revisiting Globalization and the Rise of Global Production Networks S Javed Maswood International Political Economy Series Series editor Timothy M. Shaw Visiting Professor University of Massachusetts Boston, USA Emeritus Professor University of London, UK The global political economy is in flux as a series of cumulative crises impacts its organization and governance The IPE series has tracked its development in both analysis and structure over the last three decades It has always had a concentration on the global South Now the South increasingly challenges the North as the centre of development, also reflected in a growing number of submissions and publications on indebted Eurozone economies in Southern Europe An indispensable resource for scholars and researchers, the series examines a variety of capitalisms and connections by focusing on emerging economies, companies and sectors, debates and policies It informs diverse policy communities as the established trans-Atlantic North declines and ‘the rest’, especially the BRICS, rise More information about this series at http://www.springer.com/series/13996 S. Javed Maswood Revisiting Globalization and the Rise of Global Production Networks S. Javed Maswood Department of Political Science American University in Cairo New Cairo, Egypt International Political Economy Series ISBN 978-3-319-60293-6 ISBN 978-3-319-60294-3 (eBook) DOI 10.1007/978-3-319-60294-3 Library of Congress Control Number: 2017947771 © The Editor(s) (if applicable) and The Author(s) 2018 This work is subject to copyright All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed The use of general descriptive names, registered names, trademarks, service marks, etc in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations Cover image © Rob Friedman/iStockphoto.com Printed on acid-free paper This Palgrave Macmillan imprint is published by Springer Nature The registered company is Springer International Publishing AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland Contents 1 Introduction 1 Part I Origins of Globalization 11 2 Globalization Revisited 13 3 Protectionism and Global Production Networks 39 Part II Consequences of Globalization 79 4 Globalization and Trade Stability 81 5 Globalization and Development 113 v vi Contents 6 Globalization Under Siege: Inequality, Democracy, and Sovereignty 153 7 Conclusion 183 References 207 Index 225 List of Acronyms ACLL ADIZ AMC CCP CETA CPEC EOI EPZ EU FDI FTA GATT GDP GFC GM GPN GSP GVC G77 G20 HST ICT IMF ISI Anti Corn Law League Air Defense Identification Zone American Motors Corporation Chinese Communist Party Comprehensive Economic and Trade Agreement (Canada-EU) China-Pakistan Economic Corridor Export Oriented Industrialization Export Processing Zone European Union Foreign Direct Investment Free Trade Agreement General Agreement on Tariffs and Trade Gross Domestic Product Global Financial Crisis General Motors Global Production Network Generalized System of Preferences (UNCTAD) Global Value Chain Group of Seventy Seven (UNCTAD) Group of Twenty Hegemonic Stability Thesis Information and Communications Technology International Monetary Fund Import Substitution Industrialization vii viii LIST OF ACRONYMS ITO JIT LDC MAI METI MFN MITI MNC NAFTA NIEO OECD OMA PPP RTAA SAP SEZ SOE TNC TPM TPP TQC TTIP TVE UKIP UNCTAD UR VER WB WTO International Trade Organization Just in Time Least Developed Country Multilateral Agreement on Investments (OECD) Ministry of Economy Trade and Industry (Japan) Most Favored Nation (GATT/WTO) Ministry of International Trade and Industry (Japan) Multinational Corporation North American Free Trade Agreement New International Economic Order Organization for Economic Cooperation and Development Orderly Marketing Agreement Purchasing Power Parity Reciprocal Trade Agreement Act Structural Adjustment Program Special Economic Zone State Owned Enterprise Trans National Corporation Trigger Price Mechanism Trans Pacific Partnership Total Quality Control Trans-Atlantic Trade and Investment Partnership Township and Village Enterprise (China) UK Independence Party United Nations Conference on Trade and Development Uruguay Round (GATT) Voluntary Export Restraint World Bank World Trade Organization List of Figures Fig 2.1 Fig 6.1 A schematic representation of interdependence and globalization US and Chinese Gini coefficients Source: Calculated by author from various published sources 33 175 ix ... 2 Globalization Revisited 13 3 Protectionism and Global Production Networks 39 Part II Consequences of Globalization 79 4 Globalization and Trade Stability 81 5 Globalization and Development 113... Unlike globalization of finance and of production, globalization of labor is a project for the future This is in contrast to conditions during the nineteenth century and until the outbreak of the. .. key consequences Economic globalization in the twenty-first century includes globalization of financial transactions and of production, and the liberalization of trade The major exclusion is labor