Globalization, Multilateralism, Regionalism: from Dilemma to Multi-dimensionality

Abstract

Mutual relation between globalization, multilateralism and regionalism has went through profound changes in last decades. These changes are often interpreted as a way towards new world trade order. They are closely connected to parallel changes in world politics and societies. In the economic field, they however seem to be most significant and rapid. As a matter of this fact, they are often misunderstood and misinterpreted. Even though modern economic analysis suggests that the society can benefit from interaction between globalization and liberalization in a long run, general feelings are often negative. Based upon stressing the negative effects they can induce, reforms needed to face globalization often lack the public (and subsequently) political support.The aim of this article is to conceptualize three dominant tendencies of the world economy more clearly, with respect to their former development and current understandings. Using namely the International Political Economy (IPE) as a tool of analysis, the article will aim at identifying main fields of beneficial interaction of the three tendencies and ways of eliminating their negative consequences. For this purpose, the article will firstly conceptualize all three terms with respect to current knowledge in the Czech Republic and abroad. Secondly, their mutual interaction will be studied in retrospective, i.e. with respect to their former development. Even today, the interaction between these three is often seen the same as before they went through the marked changes and thus leads to misleading interpretations. The changes induced in last decades will be thus emphasized. And thirdly, current conditions and prerequisites of positive mutual interaction will be suggested namely within the overall reform of the governance of global economy. Globalization, Multilateralism, Regionalism:basic definition of the concepts Economic globalizationEven though there are various impacts and results of globalization, the substance of the process must be sought in economy or even better in political economy of trade. Subsequently, globalization can be understood (almost exclusively) as "a growth of economic activity across national and regional borders, which reflects itself in increased movement of goods, services, property rights within trade flows and in movement of people within migration flows" (Nesadurai, 2002, pp. 1-12 (Phillips, 2005, pp. 23-24). Globalization, defined by this way, is deeply embedded in the economic bases of human society and especially in the technological progress. It is thus deeply connected with current world economy and its forces are, even if their negatives are considered, seen as effects that activate and speed up economic activity.Should globalization be conceptualized precisely, it is necessary to understand that it is not a new phenomenon in the world economy. Using Oman's classification (Oman, 1996, p. 5), the first wave of globalization has occurred "during the 50 years prior the World War I." Geared by the Gold Standard, European Colon...