SELECT COMMITTEE ON ECONOMIC AFFAIRS

(Clerk: Ms Salmon 020 7219 5765)
CALL FOR WRITTEN EVIDENCE

Inquiry into the Global Economy

The Economic Affairs Committee was set up on 7 March 2001, and reappointed on 28 June 2001. It has wide-ranging terms of reference: "to consider economic affairs". The first principal inquiry to be undertaken by the Committee will be an investigation into what is called the global economy. Initially, the important part of the inquiry will be to clarify what is meant by "globalisation" and therefore to consider broad questions along the following lines:

How should economic globalisation be defined?

Is it different from an open and integrated world economy? If so, what?

Is globalisation a new phenomenon or just a new label?

Should the main focus be what is called the real economy or the financial economy?

How does globalisation impact on the UK economy, and how does it impact on UK national and international policy making?

How does globalisation affect the major world economic institutions?

Does globalisation require regulation and, if so, is this possible at the national level, or will the need for international regulation be reinforced?

It is anticipated that these broad questions will give rise to a large
number of more detailed questions, spanning both issues relating to
the real economy and financial issues. These will include:

1. What are the driving forces causing globalisation? Are they chiefly
real or financial?

2. How are firms changing their business methods and the international
location of their activities? What are the implications of any change?

Firms have consistently moved to geographical areas where cheaper labour is more readily available. This has resulted in producing corporate ghetto towns.

3. Has globalisation affected goods and services differently?

4. How is globalisation affecting employment (a) in the UK,


(b) more

and (c) in the developing world?

are the implications for skill structure, job security and income
distribution?

5. Who are the gainers and who are the losers?

6. How will globalisation affect product market competition and consumer choice?


How dominant are the transnational corporations? Is their dominance growing?

7. What is the connection between globalisation and the communications revolution?

8. What is the connection between globalisation and labour mobility?

9. Does it matter to a nation who owns its companies, including UK banks and financial markets such as the London Stock Exchange?

10. How significant is global banking? What role should the government play in determining the capital adequacy of international banks present in London?

11. Are capital and money markets more interdependent than before? Are
international capital flows too volatile? Is international financial
instability increasing? Has market uncertainty increased?

12. Is it important that individuals (and companies and pension funds)
should be allowed unlimited access to international capital markets?
13. What UK government policy responses are required in areas including education and infrastructure investments, social safety nets, and the regulation of financial and other markets?

14. Bearing in mind the last of the broad questions listed above, what part should international organisations, such as the IMF, the World Bank, the WTO, play in the regulation of globalisation? Should their roles be changed in any respect?

Instructions to witnesses
Please feel free to copy this notice to anyone you think would like to see it.

Written evidence is invited in respect of any or all of the above questions. Submissions should be sent to the Clerk of the Committee, preferably with a disk (Word 97) or by e-mail, by Monday, 8 October Evidence submitted becomes the property of the Committee, and is likely to be published. Witnesses may publicise their evidence themselves, but in doing so they must indicate that it was prepared
for the Committee. Evidence must be clearly printed or typed on single sides of A4 paper, unstapled, and should be set out in numbered paragraphs. Short submissions of 6 pages or less are preferred; longer submissions should include a summary. Annexes may not be published. The submission should be signed and dated, with a note of the author's name and status, and of whether the evidence is submitted on an
individual or corporate basis. Persons who submit written evidence may be invited to give oral evidence which is usually given at Westminster; transcripts of such sessions are published.

How to contact the Economic Affairs Committee

Except during August, enquiries should be addressed to: the Clerk (Christine Salmon), Clerk to the Economic Affairs Committee, House of Lords, London SW1A OPW; telephone 020 7219 5765; facsimile 020 7219 6715; e-mail  salmonc@parliament.uk

The Committee Office will be closed during August because of relocation. All telephone inquiries during August should be addressed to the Lords Duty Clerk on 020 7219 3000. The postal, facsimile and e-mail addresses remain as above.

23 July 2001