Ahmad Hussein Annan

There are reciprocal Influences in the relation between Culture, Politics and economics. Strong politics requires strength in the economics and Culture. a strong economics without certain cultural and political standard may not exist, and vice versa.

For example, the economic power of the United States made its policy and culture influential in all over the world. On cultural Level; the American music (Jazz , Pop, Rock, blues etc) became internationally accepted and culturally adopted. European Bars and Restaurants don't function well without US Music. Jazz Bars, Rock Bars, pop Bars etc have become a local Tradition in almost every liberal Society. American Films made the style of the US-action Stars internationally demanded. Young people wear their jeans, Leather Suits, smoke their Cigarettes, and imitate them in vehicles and motorcycles, and are committed to the Values they bear.

So the cultural expansion is simultaneously linked to economic and political Values.

Countries with rich History like Greek, Italy, China or the Arabic World and even some other western and northern countries are alarmed because of the Huge cultural influences loaded in the new era. Every Nation wish to be the country of initiatives, and some regret the lost past.

Liberal Countries accept the fact that the better Models prevail, and some believe in survival of the fattiest, while dictators and authoritarians try helplessly some different Courses. Some Illiberal Streams profit from the internationally victorious Models, but condemn the Fact that the leadership is not theirs. i.e. some wear American Jeans, watch holy wood Movies, play American Music in even red Bars , eat in Mc Donald's Restaurants , attend English and computer Courses, and although believe that their Euro-cheese should be better. At this point the politics deliver such Cases to psycho-analysis to interpret such Phenomenon.

Globalization of economic Values goes hand in hand with relevant cultural Courses, and (although Americans are taking the leadership ) it can not be limited to merely American development, for it is  an international Demand and Life Struggle. Globalization of economic policy consists of economic rights supported by politics in general. When economics play different Music than Politics, we may conclude (through a logical inference) a dictatorship or corrupt Governmental Structures at least.

The Capitalistic System split politically in right, left and middle Streams. The background are economic Schools, with different Methods and Concepts of how to increase Health of economics.

Historic Development of the schools:

The first founder of liberal Capitalism is the Greek Philosopher Aristotle. But the first Use of the Term goes back to Alfred Marshal (1870), when the contemporary Capitalism was at its earliest development Stages, and was heavily challenged by Socialism.

Because of lack for international security System, the countries practiced Liberalism in the local markets, but had to implement some protective Measures. So the Chance for international Trade Prosperity were low.

Globalization had to access the immune spaces through Spread and export of economic thought represented by several Schools of economics, like:

1.The English School of Economics(Adam Smith 1723-1790); who advocated the liberal Market condemning monopoly .This School was developed later by David Ricardo(1772-1823) who championed the Method of Comparative Advantage in international and local economics.

The Offsprings of the english economic School;

The School of Untilitarianism (Jeremy Bentham 1748-32): Bentham defended the classical economics through utilitarian Ethics being the counter Philosophical arguments of Marxism, but allowed some limited Taxes.

The Marginalistic Theory: this view low Prices as the result of increase in Production to the behalf of poor classes. Satisfying the rich classes though production increase reduce the demand and lead to lower Prices, which makes it possible for the poor to profit from the production little later.

2.The French School of Thought (1789) : a Group of French intellectuals (Ideologue) led a liberal Movement in France, but little later became persecuted and almost disappeared in the Napoleonian France. The French preached Liberalism just in War Diplomacy preventing the over see Industries from accessing the Continental Markets, which angered England and led little later to several Wars .

Later, a Group named "Laissez-Faire Ultras"  appeared and was more effective in liberalizing the French economic System .

3. Liberalization Outbreak in all over Europe and the United States, whose Revolution was originally a rise of wrath against the English Barriers imposed upon the US Imports and Exports.

In France and Germany , a shared School of Marginalism  Ancestors  developed  and became popular in the second half of the 19-th Century.

Founders are " Heinrich Gossen(1810) and Jules Depuit (1804). Although, the historical School was ruling Germany(due to a long History of being Torn by the Neighbors, which made the national Thought haunt the minds there.)

German and Austrian Classicists were the earliest Front against Socialism and Nazism.

The First Globalization Era of Liberalism was led by the Smith-ricardian economic School.


Focused on development and economic Growth. The Ties of the raise in the living Standard to the raise in the individual revenue are seen as the reason of differences in the living Standard.

The classical Call for Liberalization of the Market didn't achieve that much at the international Stage. So the Countries which called for had to implement some counter protecting Measures. reducing the living standard to the revenue is no neglect of the production and consume standard of course, but treated as a matter of relativity. This made Colonialism more and more Attractive.

Neolclassical Schools:

1.Lausanne School (Founded by Leon Walras of France and Vilfredo Pareto of Italy).

Both are descendents from the marginal Revolution that happened in the seventies, with more focus on Equilibrium .

Decision Making and its relation to the production and individual Incentives, and the Evaluation of production were the device.

2. The Austrian School :

Famous School Names are; Karl Menger, Hayek, Miles, Bawerek. Wiesner etc. The School Philosophy with less Interest about Biologcal Incentives of Individuals drew Attention to subjective Desires. Praxeology was the Device. It became later influential in Europe and the United States. The School differs from other Neoclassical streams, for it denies the possibility of demarcating the  Consumers in general or detect their utilitarian relation to the Good. Mises denies the Possibility of Measuring the Quality and Strength Demand, but assume that general Estimation of its quantity is possible.

The School tends to be classical, but the revolution of the University Teachers and Students against the monarch is a clear distinction between the Austrian School of the Thought and the  Austrian politics in General, wherefore the last has never been mirrored in the Austrian policy.

The biggest Challenge of the School was Marxism. After the Market Collapse (1929), the School Followers developed the subjective Theory of macroeconomic Fluctuations. The London School opened doors to the new Austrian Ideas. After the Nazis seized power in Germany and invaded Austria, the School leaders immigrated mostly to the United States, whereby an so called American- Austrian School was born. So the American Marginalism was in a state of Flirt with the European Marginalism.

Declining form the marshalian and institutional Schools, its Focus on mathematical Analysis put it in a direct relation to the Austrian and lausanian Schools.

American Apologists School:

A conservative School defending liberalism against Populism and Socialism through Christianizing the liberal economic Values.

Cambridge Marshalians:

The School integrated Ricardo , Mill, Jevons, up to lausanian and Austrian economic Systems.

Its main Device was Intuition. This remind us of john Locke, who added the evaluative taste to his empirical concept of human knowledge.

The Marshalian Market:

1. Market Level ( The prices anchor in according to the nature of the market)

2. Short extent level (the level of fiscal out and in)

3.  Long extent Level (Industry)

4. Other long extent Level ( Technology; tendency and tradition be taken in same way it be given)

Chicago School: This has been considered as the leading brain in the new Globalization Era. It focus on the balance in Prices and libertarianism in the market. The School is the result of the world wide long run of liberalism, and is the most influential in contemporary international economics. The university of Chicago was founded by an Oil man ( John D. Rockfeller) and led by the apologist laurence Laughin.

The Austrian influences were brought by Frank H.Knight,and the marshalian influences by Viner. In the twenties the school called for Imperialism, because of protectionism in the world market Systems. in The sixties, a second Chicago School emerged and became led by the famous Milton Friedman (died this year) and  George j.Stigler  who decline from the marshalian School. It opposes the Keynesianism, adopts variety of classical and neoliberal Ideas, and has won many noble Prices. The Classical Globalization began in the second half of the 19-th Century ( based on the Thought of Smith-Ricardo School) and ended by world war one. In the thirties it gave the lead to the neoclassical Schools.

Keynesianism: (Founder John Maynrand Keyns 1883-1946)

The Keynesian School use to be that kind of left Capitalism. It was a step taken toward finding a Solution for a failed thirties capitalism. It urged the Governments to support Demand, for the last motivate the production and creates job for the unemployed Workers. Taxing is the recipe for every economic Evil. International Bank and Common Currency are the solution for the international Stability. Macroeconomics was proposed to increase Growth, in so far the big economic Branches swallow the small Businesses. In each of the Keynesian proposals governmental intervention is needed. production Levels are subjected to general Demand, which means; governments should support the Demand. Since the Fall of the Communism, the school became unattractive. Its positive and progressive Concept has been unwelcome by the new international economic turn. Some of The classical alternative for bringing unemployment under Control: Two possible  Costs;

1.If unemployment  is higher than demand , the income fall down.

2. If the saving is big and the Consume is insufficient, the interest rate goes down, so that either deposits be cut or credits be needed. In both Cases  price regulation is decisive and the economics anchors on the right level.

The Neoclassicism led to what is today known as the Neoliberalism. The Method is an International System. The international bank and monetary Fund (Britton Woods Institutions) were the first Steps to achieve such a goal.

Contemporarily, the world Trade Organization manage the new Globalization Era, and has expanded the membership to almost 150. The rest of the 191 United Nations Members are either applying or mobilizing their economic Systems in order to fulfill the entrance Conditions. Many economic experts believe that the WTO offers an alternative for protectionism, which has been historically causing political tension and had already led to two world Wars.

1.Trade and economic Freedom lead to Prosperity  Pè q

2.Authoritarianism or dictatorship attract Colonialism rès

3.Colonialism strengthen Dictatorship (through propaganda of defense and protection of a holy Home Land) sèr

4. Dictatorship and colonial Streams restrict economic Freedom s^rè¬P.

So \¬ r ^¬s èsèq

Which means; that economic freedom is an underlying and necessary condition, but can not be sufficient alone . In other words; Believing that economic freedom  leads to innovation and prosperity pèq^r

dictatorship prevents innovation  sè¬ q

So\Dictatorship kills Prosperity  sè¬r " is undisputable fact in the social sciences.

Important to note that prosperity is relative to the competition. which Means ; free people are convinced of what they do, and have the incentive to, which makes them more sincere to achieve the best possible success, and in comparison to a state of becoming dictated or forced to perform, they become insincere and tend to corruption, which lower Prosperity and related Innovation Mechanism. This is about atmospheric Hygiene in the Production Fields. Overcoming the restraints in Production and economic Choice leads to the fact; that restraining demand restrains Production as well. Logically; it lowers Competition in production diversity and release the pressure put upon combatants in protected Market, which makes Boundaries and Barriers the most Enemies of Innovation and Prosperity.

Trade Barriers are either Taxing or Non-Taxing. Non-taxing are either prohibiting or standard and technical Barriers.

Taxing Barriers  have been violating the economic rights in the Sense of the liberal and renaissance Philosophy.



In September and October (2008) , abig economic Crisis emerged resulting from the imbalance in the US Stocks and financial market. Fluctuation has been marking the Year 2008. The Oil Price has been up and down, and the US Dollar became instable currency because of the War and the out of Control growing Market.

Anti-Capitalism and Oppositions to Globalization celebrate their propagandas against America and the western Market. Islamists propose their Islamic financial System, while Communists believe that Capitalism will ( in according to Lenin) invent a new War to exploit new resources and escape the interior economic Dilemma.

The western Economies have called for reforms and announced few Meetings between great Industries to find a solution to, and mute the yelling Voices.


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Ahmad hussein annan
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