By Jeffrey A. Hart
Gobalization and Governance is an neutral assortment written for researchers and scholars of political technology and diplomacy, foreign political financial system or global politics.
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Extra resources for Globalization and Governance
Example text
Constructivists assert that actors have interests or goals only in the context of social relations that produce shared meanings and values. Thus, for Sandholtz, institutions are much more than bargaining forums where utility-maximizing states with autonomous preferences construct arrangements for minimizing transaction costs. A rule-based approach views individual behavior as being driven by heuristics and orientations. The dominant mode of decision making is by analogy and not by cost-benefit calculations.
As one analyst puts it: The word…presents dangers and opportunities to anyone who would reopen the question of global governance, though the term itself lacks in precision what it offers in its novelty. It is quite certain in most people’s minds that governance is not government…. But beyond that negative A relational contracting approach 33 stance, the concept of global governance needs to be clarified, amplified and, if thought desirable, made operational. (emphasis in original; Desai 1995, 7) The Commission on Global Governance (1995, 2) defines their subject as “the sum of the many ways individuals and institutions, public and private, manage their common affairs.
Multinational firms have proliferated over the last fifty years through informal contracts with their home governments to secure their property rights abroad and often more formal contracts with host governments. Typically, agreements now cover a range of issues from ownership to export quotas and the training and promotion of local personnel. In the not too distant past, foreign direct investment often required hierarchical governance structures, especially in plantation agriculture and mineral extraction (Frieden 1994).