Commanding Heights
The purpose of this paper is threefold, first to provide a synopsis of the third episode of the PBS video ‘Commanding Heights’, second to assess the success or failure of NAFTA and its implications for U.S. economy and in the future., and thirdly to explain the three most important issues faced by the WTO and the World Bank.
SYNOPSIS
The third episode of the Commanding Heights series is titled “The New Rules of the Game” and examines the growth of globalization from the 1990’s through today. Globalization, which moved to a grand scale in the 1990’s, has ushered in the greatest expansion of trade in world history. This unprecedented level of trade provides many opportunities for wealth, but also creates crises which had not been previously seen. The focus of this video is what will be the “new rules of the game” in this global economy, and who will control the commanding heights of the economy.
The first real test of globalization for the United States occurred with the implementation of NAFTA (North American Free Trade Agreement) in 1993. The scope of NAFTA was the North American countries of Canada, The United States and Mexico. NAFTA was drafted and well underway during the presidency of George H.W. Bush, but fully implemented under Bill Clinton. NAFTA was well received by business leaders and Wall Street, but heavily criticized by U.S. labor leaders. Labor leaders, specifically those at the AFL-CIO, viewed NAFTA as giving too much power to multi-national corporations and not enough power to the individual worker. These leaders were also afraid that NAFTA would lead to a reduction in U.S. based union jobs to Mexico. The labor leader’s fears were well founded, as thousands of foreign companies built factories directly across the U.S. border in Northern Mexico. The sole purpose of these factories was to export goods back into the United States. This transition in manufacturing from the U.S. to Mexico was dramatic, including the fact that 80%
SYNOPSIS
The third episode of the Commanding Heights series is titled “The New Rules of the Game” and examines the growth of globalization from the 1990’s through today. Globalization, which moved to a grand scale in the 1990’s, has ushered in the greatest expansion of trade in world history. This unprecedented level of trade provides many opportunities for wealth, but also creates crises which had not been previously seen. The focus of this video is what will be the “new rules of the game” in this global economy, and who will control the commanding heights of the economy.
The first real test of globalization for the United States occurred with the implementation of NAFTA (North American Free Trade Agreement) in 1993. The scope of NAFTA was the North American countries of Canada, The United States and Mexico. NAFTA was drafted and well underway during the presidency of George H.W. Bush, but fully implemented under Bill Clinton. NAFTA was well received by business leaders and Wall Street, but heavily criticized by U.S. labor leaders. Labor leaders, specifically those at the AFL-CIO, viewed NAFTA as giving too much power to multi-national corporations and not enough power to the individual worker. These leaders were also afraid that NAFTA would lead to a reduction in U.S. based union jobs to Mexico. The labor leader’s fears were well founded, as thousands of foreign companies built factories directly across the U.S. border in Northern Mexico. The sole purpose of these factories was to export goods back into the United States. This transition in manufacturing from the U.S. to Mexico was dramatic, including the fact that 80%