ADAM SMITH PIN FACTORY: The orgnaization of production = the oranization of society.

Three ways to goes from before to after [The organizations of production (OP)]. : I) Division of labour: it works
because of specialization. Ii) Specialization: if the worker gets better in just one thing, it become faster. Really
really good at one step. Iii) Mechanization. Division of labour and specialization are two ways to organization
of production: cost wil decrease so pins can be cheaper. (economics of scale). why not have a lot of workers,
like really a lot (in a bad conditions), why not slavery -esclavismo-? EXTERNALITIES se vuelve un costo.
EXTERNALITIES: are involuntary cost that does not have to be carry by the producer, generated by the
production process. Negative externalities: pollution, a club -disco- next to my farm, garden production -
pesticides contain harmful chemicals-, child labour. Understand the ideological damage: how easy is to ask the
question why this is my problem?. RECOGNIZED (The cost, the damage, the harm NEEDS to be recognized.
(by society, by the State, by law)
Political economy through Organization of production. A country can be seen as a divition of labour. How can
we distribute cost and benefits. Sometimes an ORG is a repetition of past ORGs. Theres a production of
arguments of the necesary way to organice a society, a production. EXTERNALATIES: create costs and
benefits and external to the organization of the people themselves you know into another group. negative
externalities in that sense allows us to talk about everything it allows us to talk about. the organization of
production is about the allocation and distribution of costs and benefits. It is about the recognition of certain
"effects" of how production is organized as externalities. It is about the recognition of harmful effects as the
negative externalities of production. The OP is therefore a way of understanding a society as a whole, how it
distributes costs and benefits, and how it recognizes negative externalities.
IDIOLOGY: as dogma. Ex. NOBODY is gonna be against humans rights. But in the other hand, we
have idiology as COMMON SENSE (common sense as in. As a presupposition about how the world works that
does not need to be explained or justified), its never explicit. Then its replace by neoliberalism
TED TALK - THE DAWN OF EVERITHING: critized thestandar story of earliest history.
Nomands, Sedentary (agriculture then cities, city states, empires): Social, Militarization, Religion/
institutionalization.
Empires -.---- expansions, domination. Middle ages ---fendalism. Empires 2.0---- colonialism - slavery. Cities
2.0 ---- federalism (natural law, equality), science (very usefull to justify slavery -scientific slavery- ---
industrial and technological revolution. Colombia is in LIBERALISM fase -declaration of the rights of man
and citizend- nariño has the idea of the french revolution. We end in the STATE. It just no a political ideal, an
state is also an ORGANIZATION, thas what we call later a bureaucracy -form of power-. centrilaziced
THE MODERN STATE---- bureaucracy was very efficient way: Standardization: the process of
developing, promoting and possibly mandating standards-based and compatible technologies and processes
within an industry. Estándar idea of product, quality, measure. SOMETHINHG TO ALLOW CENTRALIZE.
Organization. Rationalization: allow to deal with multiple scales. Ex. How to make an exam for 100 people,
the same exam? Multiple choice, so its easier to qualify. All that nos lleva a la INDUSTRIALIZATION.
Private property was very important. People start to produce more than they need. They start to produce for the
market. MONETIZING PRODUCTION. THE CHANGE TO INDUSTRIALIZATION REQUIRES
MONEY. All the world goes industrialized, but negative externalitires starts to appear for example child labor.
The idea of state became more importat as an order of society (goverment), but it requires rationalization,
bureaucracy.
CAPITALIZATION: the ownership of the production. The transition of an artesano -artisan- and become a
worker part of a market for a labour. You are not the owner of the product, you are selling you time an effort.
Capitalization and finance: Way to organize production, translating that production into ASSESTS. Invest the
money. Where do ypu invest? You look into a future, and you calculte risk and oportunity SPECULATION.
SPECULATION ITS WHAT IS CAPITALIZATION: You assest risk, probabilit, you proyect, increse or
decrease value. Time is money.
Boom and bust: the bussines cycle. Every time you a bust you have poberty, suicide, violence. Every
bust was tragic What made boom and bust happend? Collaps of the aggregates demand. Macro economics john
maynard kaynes macro = aggregates. We need to jump stars economy by aggregates demands and supply.
Aggregate demand is a term used in macroeconomics to describe the total demand for goods produced
domestically, including consumer goods, services, and capital goods. The main plank of Keynes's theory, which
has come to bear his name, is the assertion that aggregate demand—measured as the sum of spending by
households, businesses, and the government—is the most important driving force in an economy.
The term "neoliberalism" is polemical, often used as a mere insult, sometimes even denied its existence except
as an invention of Leftists. And so, it is important to clarify how we are using it in this course. Here are some
points: Milton Friedman wrote a 1951 piece A key paragraph captures the essence: The state would police the
system, establish conditions favorable to competition and prevent monopoly, provide a stable monetary
framework, and relieve acute misery and distress. The citizens would be protected against the state by the
existence of a free private market; and against one another by the preservation of competition. Note how he
emphasizes competition as a key means and "the fundamental importance of the individual" as the end that
neoliberalism shares with Liberalism.
Now, ideological constellations produce subjectivities... Ideological constellations, the complex set of ways in
which we make sense of the world and of our place in it, generate the tools that we use for our self
understanding. Our very identities are, from this perspective, the product of ideological constellations. It is, if
you want, the software that makes our systems run. Mostly however, we don´t pay much attention to this stuff,
and we tend to run the program without thinking too much about it. We can think of subjectivity as the way we
think of our own identity, or our value as a human being, or our virtues, or sense of honor or responsibility, et
cetera. There is no fixed way to talk about this. And generally, it is something that is difficult to talk about,
because there is nothing as personal as that. Nevertheless, try to think accross generations, how different people
in different historical moments considered their lives and their selves. Think for example how class, as a
complex identity, has been important in different ways accross generations, or gender, or how we relate to
work, or religion.
Neoliberaism --- market 1980s: Inequality --- competition --- cooperation. Organized through
marketization. Statism? (future)
THE WASHINGTON CONSENSUS (practica del neoliberalismo) The Washington Consensus refers to a
set of free-market economic policies supported by prominent financial institutions such as the International
Monetary Fund, the World Bank, and the U.S. Treasury.(Its anti-statism) How to run your economy. Becomes
constitutional integrated the WC on how Colombia is integrated. Involve people on the right and left. Late 80s-
90s. Washington because there is the finantial institutions.
And instead focus on how, since the Washington consensus, how the global economy. You're better. Uh. In a
context that that is referred to as globalization.
What is global about it? Colonialism and imperialism. Imperial center and economies. In Europe and their
colonies. When i said industrialization thing cotton. Plantations, who did the work, african people who did the
slave. Thats why global. Involve everyone. The Spanish empire was a way to organice plitical economy, we
where part of that. Also the spanish empire have to compite with other empires, thats why global.
GLOBALIZATION: How the world its conected. the growing interdependence of the world’s economies,
cultures, and populations. what was happening was, you know, the development of global market. Through UE
opening up the trade. The slogan was something like. For the Global Village, Global Village becomes
fashionable. The globalization is when the states open for each others.
THE WORLD SYSTEM THEORY: happend in the globalization. Centro-periferia (core-periphery). The
core—a central region in an economy, with good communications and high population density, which conduce
to its prosperity—is contrasted with the periphery—outlying regions with poor communications and sparse
population (for examples, see unemployment). systems theory is a theory of International Relations and
Security of International Political Economy. The world has always been a global economy. It is already being
system and so the CRITIQUE OF NEOLIBERALISM. The intellectual critique is that it's methodological,
methodologically nationalist (the tendency of scholars to assume that 'the nation-state is the natural social and
political form of the modern world').
World system theory FOCUS on the RELATION. The relation of the core and periphery. We need to
know where the state is situated. In order to understand. An individual economic actor. We need to understand
where these individual economic actors situated. How do we situate? Or how do we understand an actor's
situation? We place them in a core periphery. Network or corporate grid. Keep things going the same is that our
periphery is away from understanding the world. Colombia might be at the periphery. But Colombia has inside
a core (bogota) and a periphery. Theres not one only core (a global raking) actually theres too may. Even the
core-peryphery seams to reffer a place, whe have to understand is a RELATIONAL SENSE. The formal legal
map of the world its like core and periphery. State = state = state (formal equality) theorologically nacionalist
(critique of neoliberalism).
GLOBAL VALUE CHAIN: Factory from holistic, unified, artisanal production to industrial production,
separation, division of Labor specialization. You basically develop in stages of production, every stage of
production somebody works for the. OK, all the way through Fordism. Through just in time production, you
sophisticate this process, you mechanize it wherever you can etcetera and then you globalize it. So you basically
produce a pin not just in your factory. But in 20 factories in 15 different countries. OK, every time one
particular. Step gets located in Bangladesh. Or in Vietnam. Or in Mexico. It is the place where. Most
productivity in that specific. Step of the production is highest. Globalized productivity maximization.
Productivities How can you add more value to your products? With these cost?
Every step adds value to the prodruct. Until you step in the final product. The key thing its every step adds
value, and if you are managing production you have to COMPERE the diferent places where to put the product.
ARBITRAGE ( is the simultaneous purchase and sale of the same or similar asset in different markets in order
to profit from tiny differences in the asset’s listed price. It exploits short-lived variations in the price of identical
or similar financial instruments in different markets or in different forms) ITS BUSINESS OPPORTUNITY.
Connected to the lead firms drive the chain in terms of value addition and distribution, often through
externalising low value-added activities.
ROSTOW: STAGE AND ECONOMIC DEVELOPMEN. fives steps of economic development: Traditional
Society: (subsistence agriculture), Pre-Conditions for Take-Off: manufacturing, Take-Off: growth – industries,
Drive to Maturity, Age of High Mass Consumption.
You only can get development if you hace ACCESS TO TECHNOLOGY. IMPORTANTE: If you want to get
from the first step to the second you need MACHINES – TECHNOLOGY.
INSTITUTIONS: How international organization are created? International agreements between states.
A part of institucional law its how to create a legal person that is the STATE (the state is a legal person). Now
in terms of in the national organizations, there is no law that tells you how it is. There's no procedure.
Nevertheless, we are seeing situations in which. International organizations. Actually, kind of like acquires real
legal superpowers. IMPORTANTE: International organizations are established not under any commercial
Code. I think international approach doesn't exist. But more under the type of international contract which is
international law treaties. BRICKS or G20 -thos allians are international organizations or not? NO, dont have
organs and competences. UPU - 1879 (treaty): Who's interesting in that respect because If you look at the like,
recommend that you look up the website. Set up something called. International Bureau (bureocrasi of a serie of
development state). The Bureau shall gather information. THE THING TO FOCUS IS THE GENERIC
ELEMENT. We have the double of international organizations THAN states.
Move right So you have an agreement between the United States and, for example, Colombia. They create a
food right Commission. Hand out. Scholarships. You want to study? Pulled by scholarship. That's an
international organization. And the key thing is that the Bureau has a capacity. Power has a competence. Give
it a function in the same way that. And so see that you have different. Entities. Different elements of the overall
rights and responsibilities of. Enterprise or? The legal person. IMPORTANTE: An international organization
basically does two things: creates an ORGAN (PROCEDURE, competition). That's the name that I gave you
this entity. And it gives that order COMPETENCES (scope, legal significance)Whats a international
organization? Its organs and competences.
Binding: vinculante. Where to look if is binding the resolution of general assembly? Shall establish the budget
and the internal ognanization. Its binding the resolution of the general assembly? Depends of if in the internal
organization and budget YES. IMPORTANTE: After that, you see an explosion of international organizations
in the 1950s, 60s. End of the cold war fue un entusiasmo por terminar la confrontación entre oriente y
occidente -east and west- y subio el animo de colaborar entre países y crear organizaciones. Import substitution
industrialization (ISI)
There are diferent organization: I) Theorical organization, ii) Regional organization: many regional
organizations. Colombia is a part of UNASUR example of regional organization. Iii) Commodities
organization. Iv) International tribunals ( 3 organs -procecucuion, court, secretary-. V) FTAS and DITS.
international organizations can be understood as the formalization or institutionalization of cooperation between
States. Legally speaking, they have a very straightforward structure: basically they consist of organs that have
competences. They can be simple, they can be elaborate, they can be about something as basic as gathering
information, they can be about something as important as the maintenance of international peace and security,
or prosecuting war criminals. The key question for lawyers is: what exactly is the legal power, or competence,
or authority, that the organ is exercizing?
Regional integration: the joining of individual states within a region into a larger whole. EU model:
HOMOGENOUS REGULATORY EMBIROMENT. One set of rules for everybody Commerce Clause US:
regulatory competitions.
INSTITUTIONS 2.0
The EU -european union- as legal order. Can individual legal actor, individual companies, can invoque a rule of
international law before the rule of the country -Colombia in this case-? Its is the Colombia law what decide
whats the effect is of the legal international system. -if it can be apply on a country level-. Its a treatie that
generates rights for the individuals. And this is said by the european court. Member States have created. New.
International legal order of the international law. In Sweden You can never, never ever invoke under UK
constitutional law and international treaty. Because part of the discipline. IMPORTANTE: Some countries
doesn’t accept invoque directly the international rules. Like sweden. Firts its the national constitucion law. BUT
in Colombia WE CAN.
COMMON MARKET: Two states with two organizing production, make that a common market but
permaneciendo como two states. A common market, also known as a single market, is a type of regional
integration in economics and international trade. It represents a higher level of economic integration among
member countries than a free trade area, as it not only eliminates tariffs and trade barriers but also seeks to
harmonize various aspects of economic activity within the member states.
The term "US common market" is not typically used to describe the United States in the same way it is used to
describe regional economic integration arrangements like the European Union's single market. However, the
United States can be considered a common market in a broader sense due to its characteristics as a single
country with a high degree of internal economic integration and uniformity. Commerce clause.

IN THE EUROPEAN CONTEXT:

It’s much more recent. But the question of interpretations is when its a problem for the EU or a national
problem. Not what is supreme, its which its aplicable, WHO HAS THE COMPETENCE - RITGH. Who can
legislate. Where are decition taken reggarding OP.
Negative versus positive integration: Negative Integration: Definition: Negative integration is often
described as "hands-off" or "market-driven" integration. It involves the removal of trade barriers, such as tariffs,
quotas, and discriminatory regulations, to facilitate the free flow of goods, services, capital, and labor across
borders. What you need? Treaty and some way of enforcement that treaty Example: free trade agreement (FTA)
havea little bit of both (pos an neg), The North American Free Trade Agreement (NAFTA) and its successor,
the United States-Mexico-Canada Agreement (USMCA), are examples of FTAs with a strong emphasis on
negative integration. Positive Integration: Definition: Positive integration involves harmonizing or
coordinating policies, regulations, and standards among member countries to a greater degree than what is
achieved through the removal of trade barriers alone. CREATING COMMON RULES. It could be by treaty
and creat common rules or you can create an INSTITUTION and give the competence to create the common
rules. Common institution (federal state or institutions). Example: The European Union (EU)
JURISDICTIONAL footprints- russel effect. IN US it's more. It's more, you know, regular and we've already
looked at this regulatory competition. There was dictation all and regulatory competition. So let 1000 flowers
bloom. Let there be diversity. And then we can see which one works best and the one that works best is going to
be followed by the others.
BRUSSEL EFECT: When something is regulate in the EU, every market adopt taht like the example of the
iphone 15 of the charge coz European regulation.