Understanding the
Global Economy

Comprensión de
la economía mundial

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Property: Ownership: possession of things that are recognized in respect to which a person or group has exclusive rights as owner. It includes real property as land, personal property (physical possessions) and intellectual property as rights over artistic creations, patents and inventions. A right of ownership is associated with property that establishes it as being one's own in relation to other individuals or groups, assuring the owner the right to dispense of the property in a manner the owner sees fit, whether to use or not use, exclude others from using, or to transfer ownership. Some philosophers assert that property rights arise from the background process of social convention; others find origins for them in morality or natural law.

Law, economics, anthropology and sociology may all approach the concept methodically, but definitions vary within and between fields. Scholars in the social sciences often conceive of property as a bundle of rights. They stress that property is not a relationship between people and things, but one between people with regard to things. Public property is any property that is controlled by a state or by a whole community. Private property is all other property, which an individual or by a group of individuals may control . Some theorists like Karl Marx use the term property to describe a social relationship between those who sell their labor power and those who buy it.

Property rights: The rule of ownership and possession as belonging to individuals and legal individuals as corporations with legal rights similar to citizens, including many constitutional rights. Property rights are protected in the current laws of states usually found in the form of a Constitution or a Bill of Rights. The 5th and the 14th Amendments to the US Constitution, e.g.:

The 5th Amendment: ... nor be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation. The 14th Amendment: No State shall make or enforce any law, which shall abridge the privileges or immunities of citizens of the United States. Nor shall any State deprive any person of life, liberty, or property, without due process of law.

Protection is also found in 1) the United Nations as the Universal Declaration of Human Rights, Article xvii, in 2) the French Declaration of the Rights of Man and of the Citizen, Article xvii and in 3) the European Convention on Human Rights (ECHR), Protocol 1. Property rights are a set of rights as defined and protected by the local sovereignty. Ownership, however, does not necessarily equate with sovereignty. If ownership gave supreme authority, it would be sovereignty and not ownership, as these are two different concepts. Traditional principles of property rights include

  • control of the use of the property
  • the right to any benefit from the property (examples: mining rights and rent)
  • a right to transfer or sell the property
  • a right to exclude others from the property.
  • traditional property rights do not include uses that unreasonably interfere with:
  • the property rights of another private party (right of quiet enjoyment)
  • public property rights, including uses that interfere with public health, safety, peace or convenience
    (public nuisance, police power).

Legal systems have formed to address the transactions and disputes that arise over the possession, use, transfer and disposal of property, most particularly those that involve contracts. Positive law defines such rights and a judiciary is used to adjudicate and to enforce those rights. In the classic text, The Common Law, Oliver Wendell Holmes describes property as having two basic aspects:

Possession of property, which can be defined as control over a resource based on the practical inability of another to contradict the ends of the possessor and title, which is the expectation that others will recognize rights to control resource, even when it is not in possession.

Holmes explains the differences between these two concepts and proposes a history of how they came to be attached to individuals, as opposed to families or entities such as the church. Adam Smith wrote that

The expectation of profit from improving one's stock of capital rests on private property rights. Central to capitalism, is the belief that property rights encourage the property holders to develop the property, generate wealth and allocate resources based on the operation of the market.

The modern concept of property as a right evolved from this, which is enforced by positive law and an ethics of morality—in the expectation that this would produce more wealth and better standards of living. Most thinkers from these traditions subscribe to the labor theory of property. They hold that you own your own life; thus, it follows that you must own the products of that life and that those products can be traded in free exchange with others. As Locke put it

Every person has a property in one's own person. This nobody has a right to, but one's self. ... The reason why people enter into society is the preservation of their property. Second Treatise on Civil Government—John Locke

Life, liberty and property do not exist because people have made laws. On the contrary, it was the fact that life, liberty and property existed before that caused people to make laws in the first place. The Law —Frédéric Bastiat

The basic doctrine of socialism, as a critique of Locke's concept of property rights, states that the cost of defending property is higher than the returns from private property ownership. Furthermore, even when property rights encourage the property-holder to develop his property, generate wealth, etc., he will only do so for his own benefit, which may not coincide with the benefit of other people or society. Libertarian socialism accepts property rights, though with a short abandonment period, i.e., a person must make some continuous use of the item or else he loses ownership rights. This is usually referred to as possession property or usufruct. Thus, in this system of usufruct, absentee ownership is illegitimate and workers own the machines they work.

Communism argues that only collective ownership of the means of production through a system of government: polity, though not necessarily a state, will assure the least inequality of outcomes and the most benefits. Therefore, private property, which in communist theory is limited to capital, should be abolished. Both communism and some kinds of socialism have upheld the notion that private property is inherently illegitimate. This argument is based on the idea that the creation of private property will always benefit one class over another, leading to its domination of the other.

Communists are naturally not opposed to personal property that is earned by work, self-acquired and self-earned by members of the proletariat.—Marx and Engels, The Communist Manifesto

Not every person or entity with an interest in a given piece of property may be able to exercise all of the rights. Thus, a lessee of a piece of property may not sell the property, because a lessee is only in provisional possession and does not have the title to transfer. Similarly, owners cannot use their right to exclude to keep the lessee off the property, since a lessee usually has the right to stop paying rent or sue to regain access.

Property may be held in a number of forms, e.g. joint ownership, community property, sole ownership, lease, etc. These different types of ownership may complicate the owner's ability to exercise their rights unilaterally. Thus, if two people own a single piece of land as joint tenants, then depending on the law in the jurisdiction, each may have limited recourse for the actions of the other. For example, one of the owners might sell his or her interest in the property to a stranger that the other owner does not particularly like.

Theories of property rights includes the most popular of the many theories, the natural rights definition as advanced by John Locke. The theory is that when labor is mixed with nature, the laborer gains ownership of that part of nature with which the labor is mixed. Natural rights is the basis for homesteading and peasant ownership as set forth in the Constitutions of some countries, though fewer with the onset of trade pacts.The one proviso is that there should be enough and as good, left in common for others.

It is surely undeniable that, when a person engages in remunerative labor, the impelling reason and motive of the person's work is to obtain property and thereafter to hold it as the person's own.—Pope Leo XIII, Rerum Novarum

Anthropology studies the diverse systems of ownership, rights of use and transfer and possession in the class of theories of property. Western legal theory is based on the owner of property being a legal individual. However, not all property systems are based on this. In every study of culture, the practice of ownership and possession is the subject of custom, regulation and law, where the term applies. Many tribal cultures balance individual ownership with the laws of the collective groups as tribes, families, associations and nations. For example, the 1839 Cherokee Constitution frames the issue in these terms:

Sec. 2. The lands of the Cherokee Nation shall remain common property. However, the improvements made thereon and in the possession of the citizens who made them, or by right, may be in possession of them. Provided that the citizens of the Nation possessing exclusive and indefeasible right to their improvements, as expressed in this article shall possess no right or power to dispose of their improvements, in any manner whatever, to the United States, individual states, or to individual citizens thereof. That whenever any citizen shall remove with his effects out of the limits of this Nation and become a citizen of any other government, all his rights and privileges as a citizen of this Nation shall cease. Provided, though, that the National Council shall have power to re-admit, by law, to all the rights of citizenship, any such person or persons who may, at any time, desire to return to the Nation, on memorializing the National Council for such readmission.

Communal property systems describe ownership as belonging to the entire social and political unit. Corporate systems describe ownership as being attached to an identifiable group with an identifiable responsible individual. The Roman law of property is the based for the corporate system. Different societies may have different theories of property for their various types of ownership. One theory argues that property systems are joined to the social structure and notions of property might not be stated as such, but instead could be framed in negative terms, for example the taboo system among Polynesian peoples.

Protectionist: the economic policy that restrains trade between nations via tariffs on imported goods, restrictive quotas and government regulations designed to discourage imports e.g., anti-dumping laws. Its aim is to protect domestic industries in a particular nation from foreign take-over or competitive defeat. It shares an alliance with anti-globalization as it opposes free trade in which no barriers to entry are instituted. The term is most often used in the context of economics where it names policies or doctrines that protect businesses and living wages by regulating trade between nations:

  • subsidies to protect existing businesses from the risk associated with change, such as costs of labor, materials, etc.
  • protective tariffs
  • quotas to prevent the dumping of cheaper foreign goods that would overwhelm the market
  • tax cuts to alleviate the burdens of social and business costs
  • intervention as state power to bolster an economic entity
  • trade restrictions and
  • controls over the exchange rate.

Protectionism is the economic policy toward the means to achieve the political goal of an independent nation. For this reason, the Tariff Act of 1789, signed by President Washington on July 4, was called the Second Declaration of Independence by newspapers at the time. The opposite of protectionism, which is free trade that forms the economic means to achieve the political goal economic means to achieve the political goal of interdependent nations in partnership (collusion) with corporations. Protectionism is often associated with economic theories such as mercantilism, which holds the premise that it is beneficial to maintain a positive trade balance and import substitution.

Recent examples of protectionism in first world countries are motivated by the desire to protect the livelihoods of individuals in politically important domestic industries. Thus, formerly blue-collar jobs are being lost to foreign competition. In recent years there has been a renewed interest in protectionism due to outsourcing and the loss of white-collar jobs.

Some economists sense that better job choices and pay are more important than lower cost goods. Whether protectionism provides such a tradeoff between jobs and prices has not yet reached a consensus among economists. Free trade has not benefited those in manufacturing and service-sector jobs, such as store clerks, which do not pay as well as manufacturing jobs once did. Studies show that free trade creates fewer jobs, which pay lower wages than the jobs that have been outsourced and lost to the global economy.

Radical empiricism: A pragmatist doctrine identified by William James in the 19th century. It asserts that the idea and fact of experience includes both the particulars (data) and the relationships between all the data. Therefore, both the data and the relationships deserve a place in our explanations. In particular, all of philosophy is imperfect if it stops at the physical level and does not explain meaning, values and intentions and how they arise. James wrote:

It is a postulate, a statement of fact and a conclusion. The postulate: the only things that shall be debatable among philosophers shall be things definable in terms drawn from experience. The fact is that our experience contains disconnected entities as well as various types of connections; it is full of meaning and values. The conclusion is that our worldview does not need extraneous trans-empirical connective support; it possesses in its own right a concatenated or continuous structure.

Rationalism: in terms of epistemology and the broadest sense, any view that uses reason as a source of knowledge or justification. In technical terms, it is a method or a theory in which the criterion of the truth is intellectual and deductive, rather than sensory. Degrees of emphasis on this method or theory lead to a range of rationalist standpoints, from the moderate position: reason has precedence over other ways of acquiring knowledge to the radical position: reason as the exclusive path to knowledge.

In western philosophy, rationalism begins with the Eleatics, Pythagoreans and Plato, whose theory of the self-sufficiency of reason became the motif of neo-Platonism and idealism. Since the Enlightenment, rationalism is usually associated with the introduction of mathematical methods into philosophy, as in Descartes, Leibniz and Spinoza, as continental rationalism predominant in the continental schools of Europe, whereas empiricism was predominate in Britain.

Proponents of some types of rationalism argue that, starting with foundational basic principles, like the axioms of geometry, one could deductively derive the rest of all possible knowledge. The philosophers who held this view most clearly were Spinoza and Leibniz, whose attempts to grapple with the epistemological and metaphysical problems raised by Descartes led to a development of the fundamental approach of rationalism. Both Spinoza and Leibniz asserted that, in principle, all knowledge, including scientific knowledge, could be gained using reason alone, though they both observed that this was not possible in practice for human beings except in specific areas such as mathematics. On the other hand, Leibniz acknowledged, "We are all mere empirics in three-fourths of our actions."

Regimes of accumulation: the processes of capital accumulation occur within a social regime of accumulation. A specific political and socio-economic environment is required for a sustained investment and economic growth. This environment is created by state policy and by technological innovations, changes in popular culture, commercial developments, the media, etc.

As the pattern of accumulation changes, the regime of accumulation changes. Market trade cannot flourish without regulation by a legal system that enforces of basic moral conduct and private property by the state. The regime of accumulation responds to the total experience of living in capitalist society, not just trade that occurs in markets.

Retained earnings: the accounting term that refers to the portion of net income which is retained by the corporation rather than distributed to its owners as dividends. This is the revenue that a company can use as R&D, profit sharing with its employees, investments, or expansion such as capital export to a low-wage production site. Similarly, if the corporation takes a loss, then that loss is a retained loss. Retained earnings and losses are cumulative from year to year with losses offsetting earnings. Retained earnings is reported in the shareholders' equity section of the balance sheet. Companies with net accumulated losses may refer to negative shareholders' equity as a shareholders' deficit. A complete report of the retained earnings or retained losses is presented in the statement of retained earnings or in a statement of retained losses.

Revealed preference: a theory conceived by the economist Paul Samuelson, as a method to discern the best possible option on the basis of consumer behavior. It means that the preferences of buyers can be revealed by their purchasing habits. As a theory, it came about because the theories of consumer demand were based on a diminishing marginal rate of substitution (MRS) as based on the assumption that consumers make consumption choices based on their intent to maximize their utility (usability). While utility maximization was not a controversial assumption, the underlying utility functions could not be measured with great certainty. Revealed preference theory was a means to reconcile demand theory by creating a means to define utility functions by observing behavior.

Ricardo, David: (1772–1823) classical political economist credited helping (with Malthus, Smith and Mill) to systematize economics as an influential classical economist, along . British MP, businessman and finance speculator of a personal fortune, his most notable contribution was the theory of comparative advantage, a basic argument in favor of free trade among countries and of specialization among individuals. Ricardo saw a mutual benefit from trade even if one party, e.g. resource-rich country with highly-skilled artisans is more productive in every possible area than its trading counterpart, e.g. a resource-poor country with unskilled laborer—as long as each concentrates on the activities where it has a relative productivity advantage. Are the abuses of advantage, free trade and speculation known today what Ricardo had in mind? ...

Like Smith, Ricardo opposed protectionism for national economies, especially for agriculture. His recognized that the British Corn Laws as a tariff on agriculture products ensured that less-productive domestic land would be produce marginal yields and rents would be driven up. Thus, the surplus would be directed more toward feudal landlords and away from the emerging industrial capitalists. Since landlords tended to squander their wealth on luxuries, rather than investments, Ricardo realized that the Corn Laws were leading to the stagnation of the British economy. Britain repealed the Corn Laws in 1846.

Ricardo extrapolated the problem of monopolistic rent on the land itself to other situations and scarce resources: the buildings that sit on the land due to the long time frame of use and large lump-sum cost of building new ones; or gold, which is a partial monopoly due to its scarcity, and which is not consumable. He then questioned whether all trade has a fundamental problem of an inequality that is hard to bridge. This is the problem of absolute competitive advantage in which one party has an unbridgeable competitive advantage due to wealth or productive advantages in every field. If this is so, can trade continue profitably? Ricardo solved this with comparative advantage.

In his book, Principles of Political Economy and Taxation he introduced the theory of comparative advantage. In this theory, even if a country could produce everything more efficiently than another country, it would reap gains from specializing in what it was best at producing and trading with other nations. Ricardo believed that wages should be left to free competition so there should be no restrictions on the importation of agricultural products from abroad.

The benefits of comparative advantage are both distributional and related to improved real income. Within Ricardo's theory, distributional effects implied that foreign trade could not directly affect profits, because profits change only in response to the level of wages. The effects on income are always beneficial because foreign trade does not affect value. Comparative advantage forms the basis of modern trade theory, reformulated as the Heckscher-Ohlin theorem in which a country has a comparative advantage in the production of a product if the country is relatively well-endowed with inputs that are used intensively in producing the product.

The theory of comparative advantage, as Ricardo described it, states that both those rich in ability and the poor alike concentrate each of their analytical powers to meet the needs and abilities of the richer, more skilful party to an otherwise unequal exchange and thereby both benefit. Ideas often extrapolated are 1) that both benefit equally and 2) that somehow in such exchange each nation (or person) is enabled to focus on its own area of real specialization in a bi-directional equal trade—but we only start with an idea of purely comparative specialization in one direction.

Ricardo's most renowned book, Principles of Political Economy and Taxation (1817) begins with a statement about the labor theory of value. He then proves that prices do not correspond to this value, though he retained the theory, however, as an approximation. LTV states that the relative price of two goods is determined by the ratio of the quantities of labor required in their production. Ricardo's LTV, however, required several assumptions: 1) both sectors have the same wage rate and the same profit rate, 2) the capital employed in production is made up of wages only and 3) that the period of production has the same length for both goods. Ricardo realized that the second and third assumptions were unrealistic, so he admitted two exceptions to his LTV: 1) production periods may differ and 2) the two production processes may employ instruments and equipment as capital, not just wages and in very different proportions.

Chapter one introduces the Principles ... which discusses in the dialog of the dialectic, a series of comparisons and contrasts of the various points of views and of Ricardo's own reasoning. Ricardo's chapter “On Value and Riches," Ricardo clarifies that exchange value is not the same as value in use. In this way one can factor two often contradictory results. Point 2, above, that the capital employed in production must be made up of wages, only for Ricardo's value theory to hold, is answered by the fact that production may be made up of capital and machinery, but that doesn't change the principle (which Ricardo attributes to Smith) which he tries to present in this chapter. Machinery may add to one measure of value beyond almost all measure, without adding one penny to the other measure of value. In this way one is able, Ricardo asserts, to factor out somewhat contradictory assumptions, which if confounded lead to equally contradictory results. By attempting to clarify, Ricardo seeks to resolve some of those ills of the democratic society in so far as reason and action could resolve them. In this pursuit, he took action in parliament by moving, with his stirring, amusing speeches, the inner policies of the British Empire.

Ricardo's key point is that the accumulation of capital may add riches without detracting from the value of things to be traded. First, he pointed out that new riches do not add as much value as one would think because it always detracts from the exchangeable value of what had been produced. A decrease in exchange occur as value-in-use increases, he extrapolates to infer that the sum the world total of value in exchange, is a fixed constant. Therefore, in the growth of the global economy, the first-world countries, he states, will begin to lose value per trade, even to the purely theoretical extent of taking from the capital base. Yet, Ricardo notes that with more value-in-use for the rich and the poor, both will likely obtain more security as the aggression of competition is mitigated by physical economic growth. Adam Smith had thought that due to its effect on value, a growing aggregate wealth of the poor beyond subsistence levels is likely to take from the overall wealth of the society. All economists (neoliberal and progressive) still worry about that and, thus, they advocate decreasing the aggregate wealth of the poor, one way or another, to maintain economic growth. Ricardo held that this is unnecessary when we measure exchange value together with the growth of value-in-riches, rather than by the monopolization value. The extreme aspects of competition then leave, for the rich and poor alike, an appearance of the growth of wealth, yet without the actual result of it. Taking a step back and noticing the growth of actual use value may allow people as corporations and laborers, both rich and poor, to realize this and see a way and means forward.

Rule of law: The maxim that no person is above the law and no one can be punished by the government except for a breach of the law. Rule of law stands in contrast to the idea that the sovereign is above the law: rex lex, a feature of Roman Law and other legal systems. The phrase has been used since the 17th century, but the concept is older as Aristotle wrote, "Law ought to govern."

One way to negate the rule of law is by denying that an enactment has the necessary attributes of law. Thus, the rule of law has been described as a notion that is too elusive giving rise to a growing divergence of understanding. Two main conceptions of the rule of law are visible: 1) a formalist: narrow and 2) a substantive: broad definition of the rule of law. Formalist definitions of the rule of law do not make a judgment about the justice of a law, but define specific procedural attributes that a legal framework must have in order to be in compliance with the rule of law. Substantive conceptions of the rule of law include certain substantive rights that are said to be based on, or derived from, the rule of law.

Sarvodaya: the universal uplift and progress of all. Gandhi conceived the term as the title of his 1908 translation of John Ruskin's tract about political economy, Unto The Last. Gandhi made it the ideal of his own political philosophy. Later followers of Gandhi, such as Indian nonviolent activist Vinoba Bhave, embraced Sarvodaya as a name for their social movement in post-independence India, which strove to ensure that self-determination and equality reached all strata of India society.

Satyagraha: a philosophy and practice of nonviolent resistance developed by Gandhi who used it during his struggles in South Africa and later in campaigns for the independence of India. Satyagraha influenced Dr. King in the campaigns he led through the civil rights movement in the United States. Satya means truth and graha means to grasp or hold. As a one word, it means to grasp and hold the truth. The term became popular during the Indian Independence Movement in many Indian languages including Hindi. In Gandhi words, "It is holding onto truth as a truth-force, which I call a love-force."

In using satyagraha, I found, in the earliest stages, that goal of truth did not require that violence be inflicted on one's foe; rather, the foe will changed from error via patience and sympathy. What appears as truth to one person may appear to be error to the other. In addition, patience means self-suffering; thus, the doctrine came to mean the vindication of truth, not by infliction of suffering onto the opponent, but onto oneself.

Say's law: the law of market: An economic proposition named after the French businessman and economist who clarified it, J. B. Say (1767–1832). In modern terms, Say's law asserts that consumption sets limits of production and expansion, so that there is never a shortfall of aggregate demand. As a result, the means to increase purchasing power is the further production of a valued resource. Say's law did not theorize that supply creates its own demand, as did the Keynesian formulation of Say's law. Neither was it based on the idea that whatever is saved will be exchanged. Rather, Say sought to refute the idea that production and employment were limited by low consumption, the rationale of supply-side economics.

Therefore, Say's law, in its original concept, was not linked, nor reliant on the neutrality of money because the key proposition of Say's law is that no matter how much people save, production is still possible as it is the prerequisite for the attainment of any additional goods of consumption. Say's law states that in a market economy, goods and services are produced for exchange with other goods and services as employment multipliers and, thus, arise from production and not exchange alone and in the process a sufficient level of real income is created to purchase the economy's entire output due to the truism that the means of consumption are limited by the level of production. With regard to the exchange of produce within a division of labor, the total supply of goods and services in a market economy will equal the total demand derived from consumption during any given time period because excesses cannot exist, although there may be local imbalances, with excesses in one market balanced by shortages in others.

Nevertheless, for some neoclassical economists, Say's law implies that economy is always at its full-employment level. This may not necessarily have been the proposal that Say asserted. Say was no more the discoverer of Say's law than Sir Thomas Gresham was of Gresham's law, as Fernand Braudel points out; but, the name seems to have adhered to those who popularized economic theories that were in circulation at the dawn of the industrial revolution.

Self-determination, ethic of: the principle as a moral and legal right that all peoples have the right to freedom, 1) to pursue their economic, social and cultural and 2) determine their political status. The right to self-determination is present in several treaties and forms part of customary international law, yet it is difficult to deduce it from the practical applications of it as a the theory. Self-determination is at odds with other principles such as territorial integrity of sovereign states. This prevents self-determination to be considered a right to authorize or encourage activities such as

Any action that would dismember or impair, all or part of, the territorial integrity or political unity of sovereign and independent States conducting themselves in compliance with the principle of equal rights and SD of peoples and thus possessed of a government representing the whole people belonging to a territory.

The ethics of self-determination rarely allows for secession, as often supposed. During the 20th century, the principle was central to the process of de-colonization and the advent of modern nationalism. Some readings of the principle in ethics see it as a translation or extension of universal rights of individuals, e.g. political freedom, religion, speech, to a group; other readings see it as a collective right, distinct from individual rights. As a disputed principle in ethics, some argue that no such right exists other than, perhaps, the right to resist or secede from tyranny.

At the ratification of the UN Charter in post-WWII 1945, the signatories introduced the right of all people to SD into the framework of international law and diplomacy. In addition, that right has the importance of being Article 1 in both the International Covenant on Civil and Political Rights and the International Covenant on Economic, Social and Cultural Rights. Its presence in the two covenants points to the complex nature and importance of the right. In the Universal Declaration of Human Rights, the UN states that everyone has the right to a nationality, that no one should be arbitrarily deprived of a nationality, or denied the right to change nationality. It is often invoked in national liberation struggles, secession of territories and constitutional disputes about how this right can be expressed to the satisfaction of opposing interest groups.

Self-interest: The individual's focus on and desire for personal power as the objective of the self, regarding others only as a means. The forms that self-interest take include: 1) Individualism: promotes the worth of individual selves, 2) Psychological egoism: the view that humans are always motivated by self-interest, 3) Ethical egoism: the ethical stance that moral agents ought to do what is in their own self-interest, 4) Hedonism and Epicureanism: the ethical dogmas holding that pleasure is the only intrinsic good, 5) Enlightened self-interest: a creed which states that acting to further the interests of others therefore serves one's own self-interest and 6) Indirect self-interest: any situation in which the interests of others match one's own, so that serving one will lead to serving the other's.

Smith, Adam: 1723–1790 moral philosopher and pioneer of political economics as a key figure of the Scottish Enlightenment, Smith wrote Theory of Moral Sentiments (TMS) and An Inquiry into the Nature and Causes of the Wealth of Nations (WON), the first modern work of economics. Smith is recognized as the father of modern economics and capitalism. Smith published his first work, TMS, in 1759 and made extensive revisions to the book, up until his death. Though WON is regarded as Smith's most influential work, Smith considered TMS as the more significant work; in it, Smith examines the moral thinking of his time and suggests that conscience arises from social relationships. His goal in writing the work was to explain the source of mankind's ability to form moral judgments—in spite of man's natural inclinations towards self-interest. Smith proposes a theory of sympathy and empathy in which the act of observing others makes people aware of self and the morality of their own behavior.

Scholars have perceived a conflict between TMS and WON. The former emphasizes sympathy for others, while the latter defines on the role of self-interest. In recent years, however, most scholars of Smith's work have argued that no contradiction exists. They claim that in TMS, Smith develops a theory of psychology in which individuals seek the approval of the impartial spectator as a result of a natural desire to have outside observers sympathize with them. Rather than viewing WON and TMS as presenting incompatible views of human nature, most Smith scholars regard the works as emphasizing different aspects of human nature that vary depending on the situation. WON points at situations in which man's morality plays a lesser role, such as the laborer involved in shoe making, whereas TMS describes situations in which man's morality plays a dominant role among more personal exchanges.

These views ignore that Smith's visit to France (1764–66) transformed his former views and that WON is an inhomogeneous convolute of his former lectures and of what the theorist Quesnay taught him. Before his voyage to France in the TMS (1759) Adam Smith refers to an invisible hand which procures that the gluttony of the rich helps the poor as the stomach of rich is so limited that they have to spend their fortune on servants. After his visit to France, Smith considers in the WON (1776) the gluttony of the rich as unproductive labor. The micro-economical and psychological view—in the tradition of Aristotle (one of Smith's teachers)—elements compatible with a neoclassical theory as an option to the macroeconomic view of the classical theory Smith learned in France.

WON, one of the earliest attempts to study the rise of industry and commercial development in Europe, was a precursor to the modern study of economics. In this and other works, Smith expounded how rational self-interest and competition can lead to economic prosperity and well-being. It provided one of the renowned rationales for free trade and capitalism, greatly influencing the writings of later economists. Smith is often cited as the father of modern economics, e.g., the basis for the theory of resource-allocation: via competition, owners will use their resources: labor, land and capital for maximum profit, which results in an equal rate of return in equilibrium for all uses, adjusted for apparent differences arising from such factors as training, trust, hardship and unemployment.

Samuelson finds in Smith's pluralist use of supply and demand as applied to wages, rents, profit a valid and valuable anticipation of the general equilibrium modeling of Walras a century later. Smith's allowance for wage increases in the short and intermediate term from capital accumulation and invention added a realism missed later by Malthus, Ricardo and Marx in their propounding a rigid subsistence-wage theory of labor supply. Schumpeter dismissed Smith's contributions as unoriginal, writing that,

His very limitation made for success. Had he been more brilliant, he would not have been taken so seriously. Had he dug more deeply, had he unearthed more recondite truth, had he used more difficult and ingenious methods, he would not have been understood. But he had no such ambitions; in fact he disliked whatever went beyond plain common sense. He never moved above the heads of even the dullest readers. He led them on gently, encouraging them by trivialities and homely observations, making them feel comfortable all along.

Classical economists presented competing theories about what Smith called the labor theory of value. Later Marxian economics descending from classical economics use Smith's labor theories, in part. The first volume of Karl Marx' major work, Das Kapital, was published in German in 1867. In it, Marx focused on the labor theory of value and what he considered to be the exploitation of labor by capital. The labor theory of value held that the value of a thing was determined by the labor that went into its production. This contrasts the modern understanding of mainstream economics in which the value of a thing is determined by what one is willing to spend for the good or service.

The body of theory, later defined by the term in neoclassical economics as marginalism, formed from about 1870 to 1910. The term economics was popularized by such neoclassical economists as Alfred Marshall as a concise synonym for economic science and a substitute for the earlier, broader term political economy used by Smith. This corresponded to the influence on the subject of mathematical methods used in the natural sciences. Neoclassical economics systematized supply and demand as joint determinants of price and quantity in market equilibrium, affecting both the allocation of output and the distribution of income. It dispensed with the labor theory of value for which Smith was most renowned in classical economics, in favor of a marginal utility theory of value on the demand side and a more general theory of costs on the supply side.

The bicentennial anniversary of the publication of WON was celebrated in 1976, resulting in increased interest for TMS and his other works throughout academia. After 1976, Smith was more likely to be known as the author of both his books and thereby as the founder of a moral philosophy and the science of economics. Smith's Homo economicus as the species that is economic man gained consideration as having attributes of a moral person. His opposition to slavery, colonialism and empire was emphasized, as were his statements about high wages for the poor and his views that a common street porter was not intellectually inferior to a philosopher.

Social democracy: a political ideology from the late 19th century through the socialist movement. It differs from socialism, which aims to end the dominance of the capitalist system, or in the Marxist sense which aims to completely replace capitalism. Social Democrats want to reform capitalism democratically through state regulation and the creation of state programs that work to improve or eliminate injustice allegedly inflicted by the capitalist market system. Some consider social democracy a moderate form of socialism. Others, who define socialism in the Marxist sense, reject that.

At first, social democratic parties advocated socialism in the strict sense that is achieved by class struggle as defined by the orthodox Marxists within or affiliated with the Social Democratic Party of Germany (Bernstein, Engels, Kautsky, et al). Splits within the party during the early 20th century led to the desertion of the revolutionary socialists and the primacy of Bernstein's evolutionary or reformist democratic path for social progress within the social democratic movement.

Throughout Europe, a number of other socialist parties rejected revolutionary socialism; the followers of these movements came to identify themselves as social democrats or democratic socialists. Social democrats share many views with the democratic socialists, yet they often differ on specific policy issues. It is now the strongest current of socialism having won many elected offices in several countries. Democratic socialism follows closely. The two movements often share the same political party, e.g., the British Labor Party in the 1980s and the current Brazilian Workers' Party.

Social justice: The creation of a society based on the principles of equality and solidarity that understands and values human rights as the recognition of the dignity of every human being. A modern concept of it was identified by a Jesuit in 1840 based on the teachings of St. Aquinas.

As a movement, it conceived the idea and advocacy of a living wage. It is a part of Catholic social teaching, the Social Gospel of Episcopalians and is one of the Four Pillars of the Green Party, worldwide. As a secular concept distinct from religious teachings, it emerged in the late 20th century.

It is based on human rights and equality via economic egalitarianism as progressive taxation, income redistribution, or even property redistribution. Its goal is what developmental economists call more equality of opportunity than may currently exist in some societies and to manufacture equality of outcome in cases where incidental inequalities appear in a just system. The Constitution of the ILO affirms that "A universal and lasting peace can be established only if it is based upon social justice." The Vienna Declaration and Program of Action includes social justice as a purpose of its human rights education.

Social product: GMP: gross material product: synonymous with social product which is the value added by the productive sectors before deduction of depreciation. GMP excludes the value of services in the nonproductive sectors such as defense, public administration, finance, education, health and housing. Source: U.S. Library of Congress

Social structure: the patterned social arrangements that form the society as a whole and determine, to a varying degree, the actions of the individuals socialized into it. The meaning of it differs between various fields of sociology. At the macro level, it is the system of socioeconomic stratum as the class structure, social institutions, et al patterns of relations between large social groups. At the mid-level, it is the structure of social network as ties between individuals and orgs. At the micro level, it is the way norms shape the behavior of actors within the social system.

These meanings are not always kept separate as recent research has theorized that certain macro-scale structures are the emergent properties of micro-scale cultural institutions, a meaning of structure similar to that held by anthropologist Lévi-Straus. Marxist sociology has a history of mixing the different meanings of the term, although it has done so by treating the cultural aspects of it as the epiphenomena of its economic ones. Since the 1930s, the term has been in general use in social science, mainly as a variable whose sub-components needed to be distinguished in relationship to other sociological variables.

It is the preexisting form of relations as the social organization of individuals in various circumstances of life. Structures apply to people in how a society is, as a system, organized by a pattern of relations. The social organization of the group is what sociologists study to see the changing structure of groups. Structure and agency are the two theories at odds about human behavior. The debate about the influence of structure and agency on human thought is a central issue in sociology. In this context, agency is the capacity of individuals to act independently and to make free choices. Structure consists of factors such as social class, religion, gender, ethnicity, customs, etc. which affect the opportunities that individuals have.

Solidarity: the common unity of a group for purposes economic security, justice and other aspects of common interest, affinity and the like. Solidarity is the integration, degree and type of integration shown by a society or group with people and their neighbors. It refers to the bonds in a society as social relations that join people to one another as a term is generally employed in sociology et al social sciences. The commonality that forms the basis of solidarity varies between societies. In simple societies the cohesion may be based mainly around kinship and shared values. In more complex societies, various theories explain what contributes to a sense of social solidarity.

Stagflation: a portmanteau of the words stagnation and inflation; in macroeconomics, it describes a period of inflation combined with stagnation: slow economic growth and rising unemployment, possibly recession. It was recognized as a central macroeconomic problem in the 1970s, when it afflicted many countries in the developed and developing world. Prior to the 1970s, the prevailing Keynesian view of macroeconomics assumed that inflation and stagnation were unlikely to occur together. Macroeconomists, at that time, believed that stagnation would stop via expansionary monetary or fiscal policies, while inflation would stop via the contraction of monetary policies. Both stagnation and inflation occurred at the same time, which cast doubt on existing macroeconomic theories. It posed a dilemma for the standard policy remedies that had been used to stabilize the economy in the past.

Economists today offer two main explanations of stagflation: 1) it occurs when an economy is slowed by an unfavorable supply shock, such as an increase in the price of oil in an oil importing country, which tends to raise prices at the same time that it slows the economy by making production less profitable and 2) both stagnation (recession) and inflation occur due to inappropriate macroeconomic policies. For example, central banks can cause inflation by permitting excessive growth of the money supply and the government can cause stagnation by excessive regulation of goods markets and labor markets. The global stagflation of the 1970s is often attributed to both causes. It was started largely by a huge rise in oil prices, but then continued as central banks reacted with a monetary policy of excessive stimulation to avoid the resulting stagnation as recession. That policy, with the anomalous price spike, caused the runaway wage-price spiral.

Stagnation: long term slow economic growth, measured in terms of GDP growth. Under some definitions, slow means much slower than potential growth as estimated by macroeconomic monitors. Under other definitions, growth less than 2-3% per year is a sign of stagnation. The term stagnation bears negative connotations, although slow economic growth is not always the fault of economic policymakers because potential growth can slow via catastrophic or demographic factors. Theories of economic stagnation flourished during the Great Depression and came to be associated with early Keynesian economics.

Structural adjustment: the policy changes implemented by the IMF and the World Bank in developing countries. as conditionalities for getting new loans or lower interest rates on existing loans. Conditionalities are placed to ensure that the loan will be spent in accordance with the overall goals of the loan. A structural adjustment program: SAP is created with the goal of reducing the borrowing country's fiscal imbalances. The bank from which a borrowing country receives its loan depends upon the type of necessity. SAP is supposed to allow the economy of a developing country to become more market oriented. It forces the debtor country to concentrate more on trade and production so it can boost their economy.

Through the conditionalities, SAP implements free market programs and policy. These programs include the internal changes such as privatization and deregulation and the externals such as the reduction of trade barriers. The debtor countries that fail to enact these programs may be subject to severe fiscal discipline. Critics charge that financial threats to poor countries is blackmail and that poor nations have no choice but to comply.

Since the late 1990s, some proponents of structural adjustment, such as the World Bank, have mentioned poverty reduction as a goal. SAP was often criticized for implementing a generic free market policy and for the lack of involvement from the country. To increase the involvement of the country that borrows, developing countries are now encouraged to draw up poverty reduction strategy papers: PRSP, which take the place of SAP. Some analysts believe that the increase of the local government's participation in creating the policy will lead to greater ownership of the loan programs and, thus, better fiscal policy. The content of PRSP, however, is nearly the same as the original content of the bank authored SAP. Therefore, critics argue that the similarities show that the banks and the countries that fund them still have too much power in the process of policy making.

Structural unemployment: caused by a mismatch between skilled workers seeking employment and demand in the labor market. Even though the number of vacancies may be equal to, or greater than, the number of the unemployed, the unemployed workers may lack the skills needed for the jobs or might not live in the part of the country or world where the jobs are available. It is a result of the dynamics of the labor market and the fact that these can never be as flexible as, e.g., financial markets. Workers are abandoned due to costs of training and moving, plus inefficiencies in the labor markets, such as discrimination or monopoly power. It is hard to separate it from frictional unemployment, except that it lasts longer. As with frictional unemployment, simple demand-side stimulus will not work to easily abolish this type of unemployment.

It may be encouraged to rise by persistent cyclical unemployment. If an economy suffers from long-lasting low aggregate demand, many of the unemployed become disheartened, while their skills atrophy and become obsolete. Problems with debt may lead to homelessness and the lapse into the cycle of poverty. These unemployed may not fit the job vacancies that are created when the economy recovers. Some economists see this scenario as occurring under Thatcher's Britain during the 1970s and 1980s. The implication is that sustained high demand may lower structural unemployment. This theory of persistence in structural unemployment has been referred to as an example of path dependence as hysteresis.

Technological unemployment: (TU) The replacement of workers by machines might be a type of SU. Alternatively, TU might refer to the way in which steady increases in labor productivity mean that fewer workers are needed to produce the same level of output every year. The fact that aggregate demand can be raised to deal with this problem suggests that this problem is, instead, one of cyclical unemployment. As indicated by Okun's Law, the demand side must grow sufficiently quickly to absorb 1) a growing labor force and 2) workers made redundant by increased labor productivity. Otherwise, we see a jobless recovery such as those seen in the United States in the early 1990s, in the early 2000s and in the two year period after the 2008 economic meltdown. Seasonal unemployment is a type of SU as a type of unemployment linked to types of jobs such as construction work, migratory farm work. The most-cited official unemployment measures erase this kind of unemployment from the statistics using seasonal adjustment techniques. SU is one of the five major categories of unemployment distinguished by economists. Structural unemployment is considered to be a permanent type of unemployment for which improvement is possible only in the long term.

Structuralism: the various theories across the humanities, social sciences and economics many of which share the assumption that structural relationships between concepts vary between cultures and their languages. These relationships are useful to the academic sciences when discovered, explored and compared.

In precise terms, as an academic approach, structuralism explores the links between basic principal elements in language, literature and other fields upon which some higher mental, linguistic, social, or cultural structures and structural networks are built. Through these networks, resulting meaning is derived from a particular person, system, or culture. This meaning then frames and motivates the actions of individuals and groups. In its recent manifestation, structuralism as a field of academic interest began around 1958 and peaked in the late 1960s and early 1970s.

Structuration: a theory of proposed by Anthony Giddens in his book, Central Problems of Social Theory, (1979) and in The Constitution of Society (1984). It attempts to reconcile theoretical dichotomies of social systems such as agency and structure, subjective and objective and micro and macro perspectives. The approach directs attention to social practices ordered across space and time, instead of the individual actor or society as a whole. Its proponents adopt this balanced position in an effort to treat influences of structure and agency equally, which inherently includes culture.

The theory of structuration holds that all human action is performed within the context of the preexisting social structure which is governed by a set of norms and/or laws which are distinct from those of other social structures. Therefore, all human action is at least partly predetermined based on the varying contextual rules under which it occurs. However, the structure and rules are not permanent and external, but sustained and modified by human action in a textbook example of reflexive feedback.

Subsidy: a form of financial assistance paid, usually by the government, to 1) keep prices below what they would be in a free market, 2) keep a business solvent that would otherwise fail, or 3) encourage activities that would otherwise not take place. Therefore, subsidies

  • are a protectionist ploy, as a trade barrier that makws domestic goods and services artificially competitive against imports
  • may distort markets and may impose large economic costs and
  • may to refer to government actions that limit competition or raise the prices at which producers could sell their products, e.g., by means of tariff protection.

Although economics holds that subsidies may distort the market and produce inefficiencies, a number of cases show that subsidies may be the best solution. In many instances, economics may even suggest that direct subsidies are preferable to other forms of support, such as hidden subsidies or trade barriers. Although subsidies may be inefficient, often they are less so than other policy tools used to benefit certain groups. Direct subsidies may also be more transparent, which may allow the political process to eliminate wasteful hidden subsidies, which are less efficient yet often favored because they are non-transparent. This is the central issue in the political economy of subsidies.

Import trade protections: These are measures that limit imports from other countries and may constitute another form of hidden subsidy. The economic case for this asserts that consumers of a given product pay higher prices for a given good than they would pay without the trade barrier. Thus, the protected industry has, in effect, received a subsidy. Such measures include import quotas, import tariffs, import bans, among others.

Export subsidies as a trade promotion: Various taxes or other measures may be used to promote exports that constitute subsidies to the industries favored. In other cases, tax measures may ensure that exports are treated fairly under the tax system. The criteria and process for what constitutes a subsidy, or the size of that subsidy, may be complex. In many cases, export subsidies are justified as a means of compensating for the subsidies or protections provided by a foreign state to its own producers. Examples of industries or sectors where subsidies are often found include: utilities, gasoline in the United States, welfare (public and corporate), farm and agribusiness subsidies and (in some countries) certain aspects of student loans.

Supply and demand: the market relationship between potential sellers and buyers of a good. The supply and demand model determines price and quantity sold in the market. Excess demand causes prices and quantity of supply to rise and excess supply causes them to fall. In a competitive market, the model predicts that price will function to equalize the quantity demanded by consumers and the quantity supplied by producers, resulting in an economic equilibrium of price and quantity. The model is basic in microeconomic analysis of buyers and sellers and of their interactions in a market. It is used as a point of departure for other economic models and theories.

The model applies to a type of market called perfect competition in which no single buyer or seller has much effect on prices, which are known. The quantity of a product supplied by the producer and the quantity demanded by the consumer are dependent on the market price of the product. The law of supply states that quantity supplied is related to price. It is often depicted as directly proportional to price: the higher the price of the product, the more the producer will supply as ceteris paribus. The law of demand is normally depicted as an inverse relation of quantity demanded and price: the higher the price of the product, the less the consumer will demand, cet par, which is added to isolate the effect of price. Everything else that could affect supply or demand, except price, is held constant. The respective relations are called the supply curve and the demand curve, or supply and demand.

The laws of it state that the equilibrium market price and quantity of a commodity is at the intersection of consumer demand and producer supply. The quantity supplied equals the quantity demanded, which is the equilibrium and implies that price and quantity will remain there if it begins there. If the price for a good is below equilibrium, then consumers demand more of the good than producers are prepared to supply. This defines a shortage of the good and a shortage results in the price being bid up. Producers will, then, increase the price until it reaches equilibrium. If the price for a product is above equilibrium, then there is a surplus of the product. Producers are motivated to eliminate the surplus by lowering the price. The price falls until it reaches equilibrium.

Surplus labor: the work performed in excess of the labor needed to produce the means of subsistence of the worker. In theory, the surplus labor as unpaid labor and practice is the ultimate source of capitalist profits. The arrival of surplus labor is related to: 1) the growth of trade, economic exchange of goods and services and 2) a society divided into social classes. As soon as a permanent surplus product can be produced, the ethical policy question that arises is how it should be distributed and for whose benefit the surplus labor is to be performed. The propertied class takes the surplus labor and surplus product of the working population. The owners of the production thrives through the work of others.

A workforce with a sufficient productivity to achieve a surplus of labor is, in a monetary economy, the material basis for the appropriation of surplus value of that labor. The means by which means this misappropriation will occur is determined by the prevailing relations of production and the balance of power between social classes. Marx wrote that the capital has its origins in the business of buy to sell with the aim of obtaining an income as a surplus value of this trade. At first, however, this does not imply any capitalist mode of production. Conversely, traders act as middlemen between non-capitalist producers. During the long historical process, the old ways of extraction of surplus labor is replaced by forms of commercial exploitation.

Surplus product: Surplus of product:, the social product of the work force takes two forms 1) the necessary product, which is the output of goods and services necessary to maintain a population in its current standard of living and 2) the surplus product , which is the product in excess of basic needs, through a company generally must have a fraction of it as a social product in the reserve at any time.

In production, people have to maintain and replace their assets and consume in productive consumption and final consumption. People can also create beyond just the needs, assuming a sufficient productivity of the workforce. The social surplus product can be 1) destroyed/ wasted, 2), held in reserve, 3) used as consumed, 4) sold, or 5) reinvested as a commodity for profit. If the product remains in surplus reserves or it is consumed or wasted, then there is no economic growth. Only the trade and/or a reinvested surplus will increase in the scale of production. For example, surplus seeds are either rotting in storage, stored safely, eaten, traded for other products, or sown in new fields. However, if 90 people own five sacks of grain and ten people own a 100 sacks of grain, it is impossible for those ten people to use all that grain. Thus, they are likely to trade the grain or employ others to farm it.

Surplus product is a concept Marx theorized in his critique of political economy, as ideas about surplus produce had been in use in economic thought and commerce for a several decades. In Das Kapital, Marx used the concept as a basic theme of his interpretation of economic history.

Surplus value: value-added: a measure of output as the direct source of it is the unpaid surplus labor performed by the worker for the capitalist owner and is the basis for capital accumulation. The extra as a surplus of value is the amount of increase in the value of a capital investment. Is the return on capital, whether taking the form of profit, interest or rent. Marx conceived the defining aspect among 1) profit income, 2) interest income and 3) rent income as a surplus of value and in turn, surplus value by way of a surplus of labor.

The huge increase in wealth and population of the 19th C onwards due to the competitive pressure to maximize the surplus of value through the sweat of labor.The push also brought about an equally huge increase of productivity and capital resources. To the extent that the economic surplus is increasingly converted into cash and is expressed in money, the amassing of wealth can occur on an increasing scale. Thus, wealth begets wealth.

In Marx' critique of political economy, capital accumulation refers to the moneymaking operation whereby a sum of money becomes a larger sum of money. Capitalism is the business of making money, although Marx often defined capitalism as the capitalist mode of production. Here, capital is defined as economic or commercial assets of value in search of additional value as a surplus of the value. This requires property relations, which enable objects of value to be appropriated and owned. Marx found that capital accumulation has a double origin: 1) in trade and 2) in expropriation, legal or not, ethical or not.

The reason is that a stock of capital can be increased through a process of exchange or trading up, but also by directly taking an asset or resource from someone else, without compensation. David Harvey calls this accumulation by dispossession. Marx does not discuss gifts and grants as a source of capital accumulation, nor does he analyze taxation in detail.

The bourgeoisie, during its rule of scarce one hundred years, has created more massive and more colossal productive forces than have all preceding generations together. Subjection of Nature's forces to man, machinery, application of chemistry to industry and agriculture, steam-navigation, railways, electric telegraphs, clearing of whole continents for cultivation, canalization of rivers, whole populations conjured out of the ground. What earlier century had even a guess that such productive forces slumbered in the lap of social labor? The Communist Manifesto—Karl Marx and Fredrick Engels

Sustainability: The planned set of vital actions taken by people living today to insure the prospects of life in the future will enjoy levels of consumption, wealth, utility or welfare comparable to those enjoyed by people living today. The goal of sustainability involves explicit applied economics through the social and ecological results of economic activity. An economics of sustainability represents a broad view of ecological economics where the variables of environment, ecology and issues are basic, yet part of a comprehensive view. Social, cultural, health-related and financial aspects have to be integrated into the analysis.

The concept of sustainability is broader than the concepts of sustained yield of welfare, resources, or profit margins. At present the average per capita consumption of people in the developing world is sustainable, but as developing populations increase, individuals aspire to the high consumption of the West. In the developed world, population increase is now slight, yet its consumption level is unsustainable. The challenge for sustainability is to curb and manage Western consumption while raising the standard of living of the developing world without increasing its resource use and environmental impact. This must be done by using strategies and technology that break the link between economic growth and the environmental damage and resource depletion that growth causes.

In response to this, key issues have been identified for economic review and reform: 1) the environmental effects of unconstrained economic growth, 2) the consequences of nature being treated as an economic externality and 3) the possibility of an economics that takes greater account of the social and environmental consequences of free market behavior.

Sustainable growth:   sustainable development: a pattern of resource use that aims to meet human needs while preserving the environment so that these needs can be met not only in the present, but also for generations to come. The term was conceived in the UN Brundtland Commission Report (1987) which has become the standard definition of it as growth that meets the needs of the present without compromising the ability of future generations to meet their own needs.

It unites the concern about the carrying capacity of natural systems with the concern about the social challenges facing humanity. As early as the 1970s the term sustainability was used to describe an economy as—in equilibrium with basic ecological support systems. Ecologists have pointed to the book, The Limits to Growth and presented the alternative that is the steady state economy in order to address environmental concerns. As a field of study, it can be conceptually broken into three constituent parts: 1) environmental sustainability, 2) economic sustainability and 3) sociopolitical sustainability. The concept has included notions of a weak sustainability, a strong sustainability and a deep ecology and its focus goes beyond environmental issues.

The United Nations 2005 World Summit Outcome Document refers to the interdependent and mutually reinforcing pillars of sustainable development as 1) economic growth, 2) social growth and 3) environmental protection. However, people of the indigenous nations have argued, through various international forums such as the United Nations Permanent Forum on Indigenous issues and the Convention on Biological Diversity, advocate a fourth pillar of sustainable development: 4) the pillar of culture. The Universal Declaration on Cultural Diversity (UNESCO, 2001) further elaborates the concept by stating that

Cultural diversity is as necessary for humankind as biodiversity is for nature. It becomes one of the roots of development understood not simply in terms of economic growth, but also as a means to achieve a more satisfactory intellectual, emotional, moral and spiritual existence.

In this vision, cultural diversity is the fourth policy area of sustainable development. Economic Sustainability: Agenda 21 clearly identified information, integration and participation as key building blocks to help countries achieve development that recognizes these interdependent pillars. It emphasizes that as a model, everyone is a user and provider of information. It stresses the need to change from the old model ways of doing business to new approaches that involve a cross-model of coordination and the integration of environmental and social concerns into all development processes. Furthermore, Agenda 21 emphasizes that broad public participation in decision making is a central prerequisite for achieving it.

According to Hasna Vancock, sustainability is a process in which the development of all aspects of human life affecting sustenance is revealed and resolved. It means resolving the conflict between the various competing goals and involves the simultaneous pursuit of economic prosperity, environmental quality and social equity renowned as three dimensions as a—triple bottom-line—with the resultant vector being technology as an evolving process. The process of achieving sustainability is vital because it is the means to reach the destination as the desired future. However, the destination of sustainability is not a fixed place in the normal sense that we understand a destination. Instead, it is a set of desirable characteristics for the future system.

Green development is differentiated from sustainable development in that green development prioritizes what its proponents consider to be environmental sustainability over economic and cultural considerations. Proponents of it argue that it provides a context in which to improve overall sustainability where cutting edge green development is unattainable. For example, a cutting edge treatment plant with extremely high maintenance costs may not be sustainable in regions of the world with scant financial resources. An ideal plant that is shut down due to bankruptcy is less sustainable than one that the community can maintain and one that is less effective from an environmental standpoint.

Some research starts from this definition to argue that the environment is a combination of nature and culture. The Network of Excellence: Sustainable Development in a Diverse World, sponsored by the European Union, integrates multidisciplinary capacities and interprets cultural diversity as a key element of a new strategy for it. Still, other researchers view environmental and social challenges as opportunities for development action. This is particularly true in the concept of sustainable enterprise that frames these global needs as opportunities for private enterprise to provide innovative and entrepreneurial solutions. This view is now being taught at many business schools including the Center for Sustainable Global Enterprise at Cornell University and the Erb Institute for Global Sustainable Enterprise at the University of Michigan. The United Nations Division for Sustainable Development lists the following areas as coming within the scope of sustainable development:

Sustainable development is an eclectic concept, as a wide array of views fall under its umbrella. The concept has included notions of a weak sustainability, a strong sustainability and a deep ecology. Different conceptions also reveal a strong tension between ecocentrism and anthropocentrism. Many definitions and images such as visualizing sustainability of it coexist. Broadly defined as a mantra it enjoins current generations to take a systems approach to growth and development and to manage natural, produced and social capital for the welfare of their own and future generations. During the last ten years, different organizations have tried to measure and monitor the proximity to what they consider sustainability by implementing what has been called the metrics and indices of sustainability.

A mandate of it is said to set limits on the developing world. While current first world countries polluted significantly during their development, the same countries encourage third world countries to reduce pollution, which often impedes economic growth. Some consider that the implementation of it would mean a reversion to pre-modern lifestyles. Others have criticized the overuse of the term sustainable as having been used in too many contexts today. Ecological sustainability is in some contexts a confusing term, as are the terms sustainable economies, sustainable societies, sustainable agriculture and so forth.

Tariffs: taxes on imported goods as they enter a country. Tax, tariff and trade rules in modern times are usually set together because of their common impact on industrial policy, investment policy and agricultural policy. A trade bloc is a group of allied countries, which agree to minimize or eliminate tariffs against trade with each other. It may impose protective tariffs on imports that are outside the trade bloc. A customs union has a common external tariff. According to an agreed formula, the participating countries share the revenues from the tariffs on goods that enter the customs union.

If the major industries of a country lose to foreign competition, the loss of jobs and tax revenue can impair parts of that country's economy. Tariffs protect against this, though they have drawbacks. The most notable drawbacks is that they increase the price of a good subject to the tariff. This hurts the consumer of that good and buyer as manufacturer who would use it to produce something else. For example, a tariff on food can increase hunger, while a tariff on steel can make auto manufacture less competitive. Tariffs can become counterproductive if a country whose trade is hurt by a tariff then imposes tariffs on the other country or countries. This can result in a trade war, which the theory of free trade claims—weakens both sides. 

Tautology: in logic, a formula which is true in every possible interpretation. (Ludwig Wittgenstein first applied the term to redundancies of propositional logic in 1921.) The term had been used previously in describing rhetorical tautologies and it continues in the capacity of that alternate sense, today. 2. true by virtue of its logical form alone. A statement that is always true, true in every instance only because it was true in one case or true theoretically.

A formula is solvable if it is true under at least one interpretation; thus, a tautology is a formula whose negation is unsolvable. Unsolvable statements are known as contradictions. A formula that is neither a tautology nor a contradiction is a logically contingent formula. Such a formula can be made either true or false based on the values assigned to its propositional variables. Search also, 1) circular reasoning and 2) begging the question.

It is a key concept in propositional logic, where a tautology is defined as a propositional formula that is true under any possible Boolean valuation of its propositional variables. A key property of tautologies in propositional logic is that an effective method exists for testing whether a given formula is always satisfied or, equivalently, whether its negation is unsolvable.The double turnstile notation \vDash Sis used to indicate that S is a tautology. The tee symbol \topis sometimes used to denote an arbitrary tautology; the dual symbol \bot: a falsum represents an arbitrary contradiction.

The definition of tautology can be extended to sentences in predicate logic, which may contain quantifiers, unlike sentences of propositional logic. In propositional logic, there is no distinction between a tautology and a valid logical formula. In the context of predicate logic, many authors define a tautology to be a sentence that can be obtained by taking a tautology of propositional logic and uniformly replacing each propositional variable by a first-order formula (one formula per propositional variable). The set of such formulas is a proper subset of the set of valid logical sentences of predicate logic, which are the sentences that are true in every model.

Technostructure: the managerial sphere of capitalism where the managers and other company lead administrators, scientists, or lawyers have more power in the decision making process than do the shareholders. It was identified in The New Industrial State by economist J. K. Galbraith (1967) who describes the term technostructure as the group of technicians within an enterprise, or like administrative body, with great influence upon its economy.

The power struggle between the technostructure and the shareholders was first evoked in The Theory of the Leisure Class by Thorstein Veblen in 1912; it asks the question — who, among the managers and the shareholders, should control the enterprise? At the time and until the end of the 1980s, the shareholders, unable to regroup and organize could not exert enough pressure to stop the managerial decision-making process. After WWII, the rapid build-up of shareholders further diluted their collective power. Galbraith perceived this as a divorce between the property of the capital and the direction of the enterprise.

The technostructure is composed of a hierarchical system of influential employees inside the enterprise.Thus, its primary goal is not to maximize their profits, but rather survival, continued growth and the maximize growth and size of the market share of the corporation. While it must maintain acceptable relations with shareholders, an unchecked growth of its company gives the technostructure an advantage.

Tobin tax: a levy on all trade of currency across borders. Named after the economist James Tobin who conceived it, the tax penalizes short-term speculation in currencies at a low rate—between 0.1% and 0.25%. In 1971, Nixon removed the US dollar from the international list of currencies that convert to gold, thus ending the Breton Woods System that made currencies uniformly stable and, thus, non-speculative. Dr. Tobin proposed a new system for international currency stability and proposed that such a system include an international charge on foreign-exchange transactions.

The idea reappeared in 1997 Ignacio Ramonet, editor of Le Monde Diplomatique, renewed the debate around the Tobin Tax with an editorial titled "Disarming the Markets". Ramonet proposed to create an association for the introduction of this tax—The Association for the Taxation of financial Transactions for the Aid of Citizens—ATTAC. Since then, the Tobin tax has become: 1) an issue tool for the anti-globalization movement and 2) a matter of discussion behind academic institutions as well as in the streets and in parliaments around the world, such as the UK and France.

Trade deficit: The consensus among economists is split on the economic impact of the trade deficit with some viewing it as a loss in a fixed volume of trade and others who claim it is a sign of economic strength. One view opposes long run trade deficits and outsourcing for the sake of labor arbitrage to obtain cheap labor as an absolute advantage, which does not produce mutual gain. Thus, deny comparative advantage, which does result in mutual gain. Some economists and the U.S. Congressional Budget Office claim that GDP and employment growth of an economy means increased demand for domestic and foreign products. This claim would promote foreign and domestic businesses seeking to capitalize on demand. Foreign credit sources have to invest in the capital of a growing nation and, thus, GDP growth can be a trade deficit.

Strong GDP growth economies, such as the UK, Australia, Hong Kong and the U.S., run consistent trade deficits. Developed nations such as Canada, Japan, China and Germany usually have a trade surplus. A higher savings rate usually corresponds with a trade surplus. Therefore, the U.S. with its steady negative savings rate has a high trade deficit. Some economists contend that the effects of trade deficits are detrimental. Since the stagflation of the 1970s, the U.S. economy has been characterized by slower growth. In 1985, the U.S. began its growing trade deficit with China. In 2010, the primary economic concerns have centered on very high factors in the U.S. as the

  • national debt: $9 trillion, high corporate debt: $9 trillion,
  • mortgage debt: $9 trillion, highly un-funded Medicare liability $30 trillion,
  • un-funded Social Security liability: $12 trillion,
  • external debt as the amount owed to foreign lenders and a serious deterioration in the U.S. net international investment position (NIIP) (-24% of GDP),
  • trade deficits and
  • the rise in illegal immigration. These issues have raised concerns among economists. Un-funded liabilities were mentioned as a serious problem facing the U.S. in the 2010 State of the Union address.

Large trade inequalities imply problems, just as the disparity of wealth does. Exchange rates have been pegged at level that prevents the correction of a trade imbalance. The trade deficit must be foreign income, transfers, or a capital account surplus. This takes into account investment and purchases of stocks, bonds, etc. Foreign liabilities have a tendency to exacerbate the already extant savings and investment issues. Therefore, those in favor of the deficit point to this as the source. Buyers in the receiving country send the money back. For example, a firm in the United States sends dollars that buy Brazilian sugarcane. The Brazilian receivers use the money to buy stock in an a company in the United States. Although this is a form of capital account reinvestment, it is no liability to anyone in the United States.

However, trade inequalities are not natural given the differences in productivity and consumption preferences. Trade deficits have often been associated with international competitiveness. Trade surpluses have been associated with policies that skew a country's activity towards externalities, resulting in lower standards. An example of an economy that has had a positive balance of payments was Japan in the 1990s. The positive balance was partly the result of protectionist measures that brought excessive profits to Japanese exporters.

The U.S. trade deficit since the 1970s, has increased rapidly since 1997. The U.S. trade deficit hit a record high of 763.6 billion dollars in 2010, up from 716.7 billion dollars in 2005. Data shows that the U.S. deficit decreased during recessions and grew during periods of expansion. Many economists calculate trade deficits and/or current account deficits as a percentage of GDP. The U.S. last had a trade surplus in 1991, a recession year.

Use value: value in use: the qualitative utility of consuming a good—the want-satisfying power of a good or service. Use bypasses the profit that the good or service might get in exchange, as the primary and lasting value of a good or service. Some examples of use values in action include: the use values that feed the hungry, that quench the parched, that shelter exposed bodies, that educate the minds to perform skills, that heal the unbalanced bodies and the use values that give the giver—the mother, father, neighbor—a purpose and meaning to life, as symbiotic, such as gardening.

Any labor-product has a value and a use value and if traded as a commodity in markets, in addition it has an exchange value, most often expressed as a price in terms of money. These four concepts of • value •  use value • exchange value • price—have a long history in economic and philosophical thought, from Aristotle through Adam Smith, their meanings evolved. Smith wrote:

In the English writers of the 17th century, we often find worth in the sense of value in use and value in the sense of exchange value. With the expansion of the market economy, however, the focus of economists has been more and more about the prices and terms, the social process of change as such is supposed to occur as a given.

With the expansion of the market economy, though, the focus of economists has been more and more on prices and price-relations, the social process of exchange as such being assumed to occur as a given fact.

Marx emphasized the use-value of a labor-product as a practical idea determined objectively. It reflects the qualities of a product, which enables it to satisfy a human need or want. Thus, the use-value of a product, exists as a material reality vis-à-vis social needs regardless of the individual need of any particular person. The use-value of a commodity is a social use-value, which means that it has an accepted use-value for others in society and not just for the producer. Marx introduced use value at the start of Capital, Volume I:
The utility of a thing makes it a use value. Yet, this utility is not a thing of air. Being limited by the physical properties of the commodity, it has no existence apart from that commodity. A commodity, such as iron, corn, or a diamond, is therefore, as far as it is a material thing, a use value as something useful. This property of a commodity is independent of the amount of labor required to create its useful qualities. When treating of use value, we always assume to be dealing with definite quantities, such as dozens of watches, yards of linen, or tons of iron. The use values of commodities furnish the material for a special study, which is that of the commercial knowledge of commodities. Use values become a reality only by use or consumption. They also constitute the substance of all wealth, whatever may be the social form of that wealth. In the form of society we are about to consider, they are, in addition, the material depositories of exchange value.
The introduction referred directly to Hegel's Elements of the Philosophy of Right. Marx added,

A thing can be [have] a use value, without having value. This is the case whenever its utility to man is not due to labor. Such are air, virgin soil, natural meadows.... A thing can be useful and the product of human labor, without being a commodity. Whoever directly satisfies his wants with the produce of his own labor, creates, indeed, use values, but not commodities. To produce the latter, he must produce use values for others as social use values, not only for those with less. The medieval peasant produced quit-rent-corn for his feudal lord and tithe-corn for his parson. However, neither the quit-rent-corn nor the tithe-corn became commodities because of the fact that they had been produced for others. To become a commodity a product must be transferred to another, whom it will serve as a use value, by means of an exchange. Lastly, nothing can have value, without being an object of utility. If the thing is useless, so is the labor contained in it. The labor does not count as labor and therefore creates no value. (Capital Vol. I, end of Section 1, Chapter 1)

The transformation of a use-value into a social use-value and a commodity, in the process known as commodification, is not a given or spontaneous fact. It has technical, social and political preconditions. Thus, a use-value as a commodity
  • must a good or service that can and will be traded,
  • transferable ownership or access rights to it from one person or group to another in a secure way and
  • have a real market demand for it.

These stipulations will depend on the nature of the use-value itself, as well as the ability to package, store, preserve and transport it. The transforming of information or communication as use-values into commodities may be a more complex, problematic process.

Thus, the objective characteristics of use-values are basic to the understanding of 1) the development and expansion of market trade and 2) the necessary technical relationships between different economic activities, e.g. supply chains. Auto production, for example, requires steel regardless of its price. Necessary relationships thus exist between different use-values, because they are related in technical, material and practical terms. Therefore, an industrial complex indicates how different tech products are linked in a system.

The category of use-value distinguishes different economic sectors according to their specific type of output. From the analysis of economic reproduction, Marx distinguished between the economic sector producing means of production and the sectors producing consumer goods and luxuries. In modern national accounts, more subtle distinctions are made, e.g., between primary, secondary and tertiary production, semi-durable and durable goods, etc.

Utilitarian: the ethical doctrine that the moral worth of an action is solely determined by its contribution to the overall utility: usefulness. Therefore, it is a form of consequentialism as the moral worth of an action is determined by its outcome that is the ends justify the means. Utility, as the good to be maximized, is defined by various thinkers as happiness or pleasure in place of suffering or pain. One branch of utilitarianism defines it, however, as the satisfaction of one's revealed preferences. The phrase: the greatest good for the greatest number may describe it, though the greatest number is a problematic as a paradox of mere addition. Utilitarianism can, thus, be categorized as a quantitative and reductionist approach to ethics.

The utilitarian contrasts with 1) deontological ethics as the focus on the action itself rather than its consequences, 2) the ethics of virtue as the focus on character and 3) other varieties of consequentialism. Adherents of these opposing views have criticized the utilitarian view, which has reciprocated in kind upon those other schools of ethical thought. Utilitarianism dates back to the Greek philosopher Epicurus. As a specific school of thought, it is credited to Jeremy Bentham, who held that pain and pleasure are the only intrinsic values in the world. From this, he derived the rule of utility, that the good is whatever brings the greatest happiness to the greatest number of people. Later, after realizing that the formulation recognized two conflicting principles, he dropped the second part and spoke only about the greatest happiness principle.

In his famous short work, Utilitarianism, J. S. Mill argued that cultural, spiritual and, intellectual pleasures have greater value than mere physical pleasure because a competent judge would have a higher value for them than the latter. A competent judge, says Mill, is anyone who has experienced both the lower and higher pleasures. Like Bentham's formulation, Mill's utilitarian form emphasizes the concept of pleasure, which is synonymous with the word happiness that Mill uses. In the general use of the term, utilitarian often refers to a somewhat narrow economic or pragmatic viewpoint. Philosophical utilitarianism is much broader than this, for example some approaches by the utilitarian that consider non-human animals in addition to people.

Wallerstein, Immanuel: historian and theorist of the global capitalist economy at the macro level. His early criticism of global capitalism and his campaign of anti-systemic movements have recently made him a resource in the anti-globalization movement within and without the academic community, along with Noam Chomsky and Pierre Bourdieu. His most important work, The Modern World-System, appeared in three volumes in 1974, 1980 and 1989. In it, Wallerstein draws mainly from four intellectual influences:
  1. Marx' emphasis on: a.) the underlying economic factors and their dominance over ideological factors in global politics b.) Marx' economic thinking he has adopted with such ideas as the dichotomy between capital and labor, c.) the staged view of world economic progress through stages such as feudalism and capitalism and d.) the belief in the accumulation of capital, dialectics et al;
  2. Fernand Braudel, who had described the expansion and political implications of extensive networks of economic exchange in the European world, AD 1400 to 1800;
  3. Dependency theory, its major concepts of core and periphery and
  4. The practical experience and impressions Wallerstein gained from work within post-colonial Africa; he cites the world revolution of 1968 as a major influence on his work. As a faculty of Columbia University at the time of the student uprising there, he participated in a faculty committee that attempted to resolve the dispute. He has argued in several works that this revolution marked the end of liberalism as a viable ideology in the modern world system.

Wallerstein sites the origin of the modern world-system in 16th century Western Europe and the Americas was backed by a slight lead in capital accumulation in Britain and France, due to political conditions at the end of the era of feudalism. The lead set in motion a process of expansion, which resulted in one global network as the system of economic exchange, today. By the 19th century, almost all of planet Earth was incorporated into the capitalist modern world-system, which is far from a homogeneous cultural, political and economic entity. Instead, it is characterized by basic differences in development, accumulation of political power and capital of the various cultures.

Contrary to affirmative theories of modernization and capitalism, Wallerstein does not conceive of the differences as mere residues or irregularities, which can be resolved as the system as a whole evolves. Much more, a lasting division of the world in core, semi-periphery and periphery is an inherent feature of the world-system. Areas that have so far remained outside the reach of the world-system enter it at the stage of periphery. There is a basic and institutional stability in the division of labor between core and periphery. The core has a high level of technological development and manufactures complex products. The role of the periphery is to supply raw materials, agricultural products and cheap labor for the expanding agents of the core.

Economic exchange between core and periphery takes place on unequal terms. The periphery is forced to sell its products at low prices, but has to buy the core's products at comparatively high prices, an unequal state, which once established, tends to stabilize itself due to inherent, quasi-deterministic constraints. The statuses of core and periphery are not, however, mutually exclusive and fixed to certain geographic areas. Instead, they are relative to each other and shifting. There is a zone called semi-periphery, which acts as a periphery to the core and a core to the periphery. At the end of the 20th century, this zone would comprise, e.g., Eastern Europe, China, Brazil or Mexico. Peripheral and core zones can co-exist closely in the same geographic area. One effect of the expansion of the world-system is the continuing commodification of things, including human labor. Natural resources, land, labor and human relationships are gradually being stripped of their intrinsic value and turned into commodities in a market, which dictates their exchange value.

In the last two decades, Wallerstein has increasingly focused on 1) the intellectual foundations of the modern world system, 2) the structures of knowledge defined by the disciplinary division between sociology, anthropology, political science, economics and 3) the humanities and the pursuit of universal theories of human behavior. Wallerstein regards the structures of knowledge as Eurocentric. In analyzing them, he has been highly influenced by the new sciences of theorists such as Ilya Prigogine. Since 1980, he has held that the United States is a hegemony in decline, although often mocked for making this claim during the 1990s. However, since the debacle of the Iraq war, this view has become more widespread. He has consistently argued that the modern world system has reached its endpoint. He believes that the next fifty years will be a period of chaotic instability, which will result in a new system, one that may be more or less egalitarian than the present one.

Wallerstein's theory has provoked harsh criticism, not only from neo-liberal or conservative circles, but even some historians who have averred that some of his assertions may be historically incorrect. Some critics suggest that Wallerstein tends to neglect the cultural dimension, reducing it to what some call official ideologies of states, which can then simply be revealed as mere activities of economic interest. Nevertheless, his analytical approach along with that of associated theorists such as Andre Gunder Frank, Terence Hopkins, Samir Amin and Giovanni Arrighi has made a significant impact and established an institutional base devoted to the general approach. It has also attracted strong interest from the anti-globalization movement. Wallerstein has both participated in and written about the World Social Forum.

The ideology of neoliberal globalization has flourished since the early 1980s. It was an extant, promoted and practiced idea in the history of the modern world-system, although its backers in the 1980s claimed that it was new, in the innovative sense. It was the old idea that governments of the world should get out of the way of large, efficient enterprises in their efforts to prevail in the world market. The first policy implication was that all governments should permit these corporations free path across any border with their goods and their capital. The second policy implication was that all governments should renounce any role as owners of these productive enterprises, privatizing whatever they own. The third policy implication was that all governments should minimize, if not eliminate, any kind of social welfare transfer payments to their populations. This old idea had always been, in the cynical sense, in fashion.

Women's rights: Entitlements as freedoms claimed for women and girls of all ages in many societies. In some societies women's rights are institutionalized or supported by law, local custom and behavior, while in others they may be ignored or suppressed. Women's rights differ from broader notions of human rights through claims of an inherent historical and traditional bias against the exercise of rights by women and girls in favor of men and boys. Basic women's rights include: the integrity and autonomy of the women's body • suffrage/ holding public office • work • fair wages as equal pay • property ownership • education • service in the military • legal contracts and • rights marriage, parenting and religion.

In recent decades women's rights issues regained center-stage worldwide and by the 1960s the movement became feminism and women's liberation. Reformers wanted the same pay as men, equal rights in law and the freedom to plan their families. The women's rights campaigns were both embraced and resisted worldwide. In the UK, a groundswell of opinion in favor of legal equality had gained pace, through the extensive employment of women in what were traditional male roles during both world wars. In 1975, Parliament passed an equal pay for equal work bill, created a Sex Discrimination Board, a gender anti-discrimination bill and an Equal Opportunities Commission came into force. With encouragement from the UK government, countries in the EEC soon followed suit with an agreement to ensure that discrimination laws would be phased out across the European Community; these sweeping reforms were soon to be echoed in the USA.

World Bank: part of the World Bank Group (WBG) as a private sector entity, has international funding that provides loans to developing countries for development programs with the stated goal of reducing poverty. The World Bank comprises only the International Bank for Reconstruction and Development and the International Development Association. The World Bank Group incorporates these entities in addition to three others.

The WB was established in 1945 following the ratification of the Breton Woods Agreement. The concept was conceived in July 1944 at the United Nations Monetary and Financial Conference. Two years later, the Bank issued its first loan: $250 million to France for post-war reconstruction, which was the focus of the Bank's work in the early post-WWII years. Over time, development became main work of the Bank and now has assumed a larger share of its lending. It still invests in post-conflict reconstruction, along with 1) reconstruction after natural disasters,2) response to humanitarian emergencies and 3) post-conflict rehabilitation needs that affect developing and transition economies.

The WB is part of a global financial monopoly, which includes the USAID (the development arm of the CIA), the IMF and a few other mergers of the moneyed giants. At times, the WB does act purely as a humanitarian; yet, that is only the view that the Bank wants the public to see. Its policy and practice of structural adjustment imposed upon developing and third world debtor nations have made life more miserable for many millions of people. The web link above has links to the critical story about the Bank's practices—the ones the Bank would conceal.

World Trade Organization: WTO: the org designed to supervise and liberalize (neoliberalize) international trade. WTO began in 1995 succeeding the General Agreement on Tariffs and Trade: GATT launched in 1948 as the de facto international organization. WTO deals with the rules of trade between nations at a near-global level. It negotiates and implements new trade pacts and is in charge of policing member countries on their adherence to all the WTO agreements, signed by most of the world's trading nations and ratified in their parliaments.

Most of the WTO current work comes from the 1986-94 negotiations: the Uruguay Round and previous talks under GATT. The WTO hosted new hearings through the Doha Development Agenda: DDA, which launched in 2001. A Ministerial Conference governs the WTO and meets every two years. The Conference consists of a General Council that implements the conference's policy decisions and daily administration and a director-general who is appointed by the Ministerial Conference.


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