Hirst and Thompson: Globalization in Question: Globalization and the History of the International Economy

PQ Hirst and G Thompson, Globalization in question (Polity Press).

Ch. 2: Globalization and the History of the International Economy:

Common assumptions about globalization are that it began gathering steam after WWII. The authors problematize this assumption. "The key issue at stake in our assessment is the changing autonomy of national economies in the conduct of their economic activity" (19).

The authors briefly explore the relationship between growth levels in output and trade, exploring the patterns of its development from the 19th century through to the late 20th century.

The movement of labor, or migration, is the next issue taken into consideration. Figure 2.3 on page 26 clearly demonstrates that, whether migration is measures as a percentage of the population or in absolute numbers, levels of immigrants coming to the US were highest in the mid 19th century and by the end of the first decade of the 20th.

Relative economic openness is the next measure of globalization that the authors explore from a historical perspective. This is accomplished, at least initially, with a GDP to trade ratio. The 1913 period is seen as representing a higher degree of the ratio of GDP to trade than the 70s. Other issues of comparative globalization are addressed such as remittances and regionalization.

The history of monetary and exchange rate regimes is then explored. A helpful chart (Table 2.5) is produced outlining the different regimes that existed from 1879 to the late 1990s (33).

"We have striven to argue a number of points in this chapter. First, that the level of integration, interdependence, openness...of national economies in the present era is not unprecedented...The second point has been to argue that governance mechanisms for the international economy have been in place over almost the entire twentieth century, in one form or another...Thirdly, we have argued that there are some new and different issues of economic interdependence in the present era which are particular to it...Finally, we have traced the trajectory of 'national economic autonomy' through the various regimes of governance operating over the twentieth century. This has shown that such autonomy ahs oscillated between periods of strong and then weak forces, and that it has operated with various degrees of effectiveness" (60-1).