XXX° SUMMER
UNIVERSITY OF THE NEW ECONOMICS
Aix en Provence, August 26-29, 2007
THE INSTITUTIONAL CHALLENGES
OF GLOBALIZATION
Sunday, August 26th
Foreign Trade and French reforms: meeting the
expectations of French entrepreneurs : Hervé Novelli, State Secretary,
Ministry of the Economy
Globalization and growth, globalization
and development
The Tyranny of the Status Quo : William NISKANEN, Chairman of the CATO Institute
The logic of public decision-making,
the burden of bureaucracy and lobbies
Monday,
August 27th
Globalization and Institutions
Globalization as the Outcome of Institutional
Changes:
Globalization is neither the
result of chance nor the sole effect of technical progress.
Defined as the free circulation
of goods and persons, the absence of discrimination and free competition, globalization
was made possible thanks to the fall of the communist block, the discovery of
the benefits of the market and the possibility of territorial delocalization (outsourcing)
The Institutional Challenges Required by Globalization
Spontaneous or designed
institutions? Do we need specific institutions to institute an economic world order ?
An assessment of the
WTO, IMF, UNO, UNESCO and other attempts of world government or international
coordination.
Coordination through
the market and spontaneous order. Can there exist universal institutions,
despite cultural differences ?
A picture of the institutional
state of various nations and their integration within the world game: the Index
of Economic Freedom. The role of private property rights, the right to economic
initiative, to monetary stability, and to free trade.
The emergence of new political institutions
Constitutions in the Service of Globalization?
Globalization is said to imply
the rule of law and democracy?
The Resistance of States
Globalization entails a competition
among states. They want to “control” it. They implement regulations and protections
and organize cartels. After the welfare state here comes the “shield” state. The
temptation of a Fortress Europe is great. It enables statesmen to retain all their
powers, to circumscribe the large wave of privatizations and to worsen structural
blockings.
Bastiat thought free trade
was the sole means to reduce the state by the breaking of vested interests.
Can the myth of “public
goods” and its extreme version of the public services “à la française” hold out against the indisputable
successes of privatizations? Is a society with a smaller government doomed to
anarchy and social injustice?
Tuesday, August 28th
On the sovereignty
of a world or supranational legislator. The alibis of the “Obstructors”: the preservation of the planet, sustainable
development, harmful competition. The example of European law.
The birth of the legal rule through
merchant practice: a brief history and contemporary aspects.
The foundations of
contract, recognition and protection of property rights. The
free choice among jurisdictions. The problem of “enforcement”.
Harmful
harmonization. Reduction of taxation and the
redefinition of the role of the state. Perspectives
on the public debt. Wealth taxation against the spirit
of initiative and private property.
Money
and International Finance. A « financialization »
of the economy ? Stock market speculation,
public debt and interest rates. The management of
central banks. The privatization of money instruments.
Discussion : Public Debt and Budget Management
Public debt cripples
budgets and threatens the world monetary equilibrium. It is caused
by excessive public spending. Are tax
cuts thinkable in those conditions ? Taxes, growth and
debt.
Labor market flexibility
is limited by some obstacles: the economic and cultural cost of migration flows,
the differences in the level of “social protection” of workers. Is the concept
of “social model” relevant or is it just a corporative and union protectionism,
justified by “social dumping”?
In most countries, “social protection”
is organized today by public authorities. Will it hold out against globalization?
It is threatened to collapse because of the pay-as-you-go system and the importance
of the social debt, but also because of the lack of competitiveness due to social
security contributions. Will globalization level “social protection” and in which
direction? Is there an alternative in privatization and capitalization?
Globalization is a chance to
constitute a network of men and cultures, to erase a history of misunderstandings
and wars. Institutional changes implied by globalization relate to the recognition
of individual rights true to the human person’s dignity and nature. The
example of property. Globalization gives everyone a chance to flourishing
in the service of others. An anthropology of globalization: towards a “homo globalis”?
If institutions place men in
a situation of liberty and responsibility, individual behaviors
are still crucial. Whatever the merits of the market order, they cannot eclipse
the necessity of a “community order”. Globalization gives voluntary “solidarity”
an opportunity of expression through the aid to those still looking for development.
“Solidarity” follows the principle of subsidiarity. A new world can be built, closer to the aspirations
of human beings.
Does the education
system give youngsters the right preparation to build a new world? The traditions of universities, of international meetings.
Family life, the spirit of service, mutual understanding among the
peoples.
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