Globalization: What it is and what it isn't?

Globalization: What it is and what it isn't?

Globalization: What it is and what it isnt Definition One of the most fashionable buzzwords of contemporary political and academic debate It is used as a synonym for one or more of the following phenomena: Free markets Economic liberalization Growing dominance of western (or Euro American) forms of political, economic and cultural life (Westernization or Americanization) Global integration The proliferation of new information technologies (internet revolution) What is Globalization? 4 dimensions:

Space - extensiveness of global networks Regularity - intensity of global interactions Speed - velocity of global flows Depth impact of global interconnections on quality of life Is Globalization a New Phenomenon? Portugals global expansion in the 16 th century, linked continents, economies and cultures to a massive extent. Muslim traders and the Silk Road Dutch East India Company 1st Multinational Corporation 19th century is sometimes called the First Era of Globalization Globalization: The Pro Argument

The global economy delivers markets that operate with maximum efficiency Globalization is the only way to bring prosperity to the developing world Globalization is inevitable and should be embraced Globalization: The Con Argument The global economy is an untamed juggernaut that rewards the few and impoverishes the many Globalization is neither inevitable nor desirable It diminishes the sovereignty of local and national governments and transfers the power to shape economic and political destinies to transnational corporations and global institutions It is responsible for the destruction of the environment, the widening gap between rich and poor societies, and the world-wide homogenization of local, diverse, and indigenous cultures

Globalization Summary of Key Ideas Advantages and Disadvantages of Globalization Realm of Advantages Globalization Disadvantages Political Weakens power of authoritarian governments Unwanted external

influences difficult to control Economic Jobs, capital, more choices Exploitative; benefits uneven Cultural Offers exposure to other cultures Risks cultural imperialism

Pro Ease of communication Interdependence means less probability of war Greater transparency means more oversight of bad leaders Competition leads to innovation, quality, progress Weakens independence of governments Con Easier exploitation of resources in developing world

Institutionalizes dependency Weakens independence of governments Cultural imperialism Dependency and instability Access for terrorism and organized crime Pro Advances technology Access to more crops, ideas, technology stability Political implications Better fight against transnational crime (sharing info)

Better informed about world events (genocide) increases wealth Education globalizes Medical tech and nutrition Con Human trafficking Political implications Increases gap between rich and poor Economic inequality continues Labor rights not included Environmental issues ignored More cigarettes, fatty foods

Pro Creates jobs in developing world Greater acceptance of differences; less racism bad jobs better than no jobs Drives down prices Nothing else has worked Globalization isnt a system; it is what happens when people are free Con Governments can still close off nations from trade (N. Korea, Zimbabwe) Causes job losses in developed world as

companies search for cheaper labor Can cause decrease in wages in industrialized world Spreads materialism, the notion that economic growth is the most important thing Economic Development Cultural Enrichment International Investments and Trade

Information Technology and the Internet Democracy Globalization The Opportunities Property Rights Effects of Globalization Industrial: Emergence of world-wide production markets and broader access to a range of foreign products for consumers and companies

Financial: Emergence of world-wide financial markets and better access to external financing for borrowers Economic: Pursuit of free market policieseconomic liberalizationfree movement of goods and capital Political: Some mean globalization as the creation of world government (organizations like the UN)which regulate the relationship between government Informational: Increase the information flow between geographically remote locations (Internet Revolution) Effects of Globalization (continued) Cultural: - Growth of cross-cultural contactsparticipate in a world culture reducing cultural diversity - Standardize consumer habits, values and way of thinking Ecological: The hope for a collective approach to deal with the environmental issues Social: - Greater international travel and tourism - Greater Immigration (uncontrolled) - Promote understanding and peace between peoples

Technical: Development of a global telecommunications infrastructure and greater trans-border data flow Legal/Ethical: Develop world trade agreement which include copyright laws and patents Globalization Goals Economic integration to help boost living standards Democratic policies so that public policy decisions are made by those who are directly affected by them Mutually Incompatible?

Global Markets without Global Governance Self-determination which comes in with the nation-state concept Some Facts Since 1991, international telephone traffic has more than tripled. The number of cell phone subscribers has grown to almost 2 billionmore than 30% of the world populationand internet users hit 1 billion Over the last 20 years, 200 million people left absolute poverty leveldefined as living on the equivalent of less than $1 per day.

China The first fastest growing large economy (9.9%) The 2nd largest economy in the world (U.S., China, Japan) Per capita income $2000 Implemented reform in a gradualist fashion The worlds largest labor force (791.4 million) 49% agriculture (rice, wheat, corn, tobacco, peanuts) 22% mining and other industries 29% service The second largest consumer of primary energy, after the U.S. The second largest oil consumer

75% of Chinas energy is from coal Tourism is one of the fastest growing industries Foreign Direct investment $699.5 billion Member of WTO India The second fastest growing large economy (9.4%) Population (2008) 1.132 billion Per capita income $2700 (no. 165) Third largest military force in the world The words second largest labor force (516.3 million) 60% agriculture (rice, wheat, cotton, jute, tea) 28% service

12% industry The sixth largest consumer of oil The third largest consumer of coal 27.5% of the population are living below the poverty line ($0.40 per day) Largest city is Mumbai (13.6 million) - Delhi (the Capital, 12 million) Foreign direct investment (1991-2008 $86 billion, only 8.35% of that from the U.S.) Member of WTO Corruption Terrorism Epidemics AIDS Malaria Avian Flu

Poverty Globalization Energy Issues Ocean and Water Issues Global Warming Human Rights The Challenges The Dark Side The Challenges

Interdependency of people and institutions around the world creates both opportunities and challenges Energy Environment Greenhouse gas emissions/climate change Water shortage Deforestation Socio-economic issues Public health Increasing poverty/inequality Financial instability

Culture and value Migration and the Brain Drain Terrorism Globalization and Energy World Preserve Crude Oil Reserves by Region Middle East 64.5% Saudi Arabia* Iraq* Iran* Kuwait* U. A.E.* Qatar* Oman Syria All others (including Egypt) *OPEC Member

37.8% 16.2% 14.3% 13.9% 14.0% 1.9% 0.9% 0.4% 0.6% L. America Venezuela 11.5% Africa Libya Nigeria

8.9% E. Europe Former USSR 6.2% Asia China 4% N. America US 2.8% W. Europe Norway

2.0% 61.8% 38% 36% 97.2% 54% 71.4% 62.4% Major Oil Producers and Consumers Saudi Arabia 9817 1437 Russia

8543 2503 Iran 3852 1132 Mexico 3789 1864 Norway 3260 212 Venezuela

2987 526 Canada 2986 2149 Major Oil Producers and Consumers (cont.) U.A.E. 2520 296 U.K. 2245 1666

Kuwait 266 Nigeria 2238 2185 285 Brazil Italy 1552 1817 107 1927

France 1991 Major Oil Producers and Consumers (cont.) South Korea 2203 Germany 2664 Japan 5451 China 3396 5982

U.S.A. 7454 20071 Source: BP Statistical Review 2004 (Thousands of Barrels Per Day) Production Consumption Proven Coal Resources Top 10 Countries U.S. Russia China India Australia South Africa

Germany Kazakhstan Ukraine Poland Others *Million tons oil equivalent Source: World Resources Institute 121,961.7* 68,699.3 58,900.0 55,597.3 41,546.7 33,013.3 29,666.7 21,666.7 16,809.0 14,153.3 39,157.7

Proven Natural Gas Resources Top 10 Countries Russia Iran Qatar Saudi Arabia U.A.E. U.S.A. Nigeria Algeria Venezuela Iraq Others 42,300* 24,021 23,191 6,010

5,454 4,711 4,497 4,070 3,734 2,798 35,330 *Million tons oil equivalent Source: World Resources Institute Globalization and Water Facts Agriculture is the main user/consumer of water 31 countries are facing water stress and scarcity Over one billion people lack adequate access to clean drinking water Food and Agriculture Organization (FAO) reported By 2025, 1.8 billion people will be living in countries or regions with

absolute water scarcity and 2/3 of the world population could be living under water stress conditions 1.1 billion people in developing countries have inadequate access to water and 2.6 billion dont have proper sanitation (WHO) 1.8 billion people who have access to a water source within 1km, but not in their house, or yard consume 20 liters per day, Americans consume an average of 600 liters everyday! Globalization and Water of the people in developing countries suffering at any given time from a health problem caused by water and sanitation deficits 12% of world population use 85% of the water and they dont live in developing countries 1.4 million children die of diarrhea every year because of a lack in hygiene and sanitation (WB) Water shortage is a global problem that touches the lives of people in developed and developing countries-many states

have water shortage Globalization and Water A recent report by the National Intelligence Council, a group that reports to the CIA found that: The main resource problem in 2015 will be water and that the instability created by shortages of water, will increasingly affect the national security of the U.S. The Global Water Corporation, a Canadian water company, put this way: Water has moved from being an endless commodity that may be taken for granted to a rationed necessity that maybe taken by force. Globalization and Water With all these facts, we humans are diverting, polluting and depleting our waters at an astonishing rate!

Many will argue the imperatives of economic globalization unlimited growth, a seamless global consumer market, corporate rule, deregulation, privatization and free tradeare the driving forces behind the destruction of our water system. The Bottled Water Industry $100 billion spent annually on bottled water 40% of bottled water is actually just tap water 1.5 billion barrels of oil are consumed each year to produce the plastic for water bottles, enough to fuel 100,000 cars

A water bottle in a landfill or lying around as litter will take over 1,000 years to biodegrade Source: Globalization and Risks to Health Increasing trade is certainly good for economies, it also leads to globalization of health risks. As the industrialized countries increasingly ban cigarette advertisement, sales go down. Tobacco companies intentionally target people in poor nations. 10 million died from tobacco abuse70% of these deaths are in developing countries. The increase in global food trade, and its domination by large transnational companies that have developed global brand names such as popular beverages and fast food have contributed to the global epidemic of obesity.

Globalization and Risks to Health Trade and movement of infected cattle and poultry across national borders have contributed to recent outbreaks of mad cow disease in the northern hemisphere and avian influenza in Asia. SARS (Severe Acute Respiratory Syndrome) is the best contemporary example of the rapid spread of a hitherto unknown and virulent viral pathogen through travel of infected humans. SARS was first recognized in Vietnam in Feb. 2003. By the first week of May 2003, 30 countries on six continents has reported a total of more than 7000 cases. Poverty 2.6 billion people live on less than $2 per day. 1 billion people entered the 21st century unable to read or sign their names. 640 million children live without adequate

shelter. 400 million children have no access to safe water. Poorest 40% of the world population account for 5% of global income. The richest 20% account for 75% of the world income. Different Realities People in the West may regard lowpaying jobs at Nike as exploitation, but for many people in the developing world, working in a factory is a far better option than staying down on the farm and growing rice. Joseph Stiglitz, Discontents, p. 4 Globalization and Culture Culture is the way of life to a group of people. It includes code of manners, dress, language,

religion, rituals, and norms of behavior. The drives of todays rapid globalization are improving methods and systems of international transportation, devising revolutionary and innovative information technologies and services, and dominating the international commerce in services and ideas. Some believe that globalization brings the decay of social values, culture and the environment. McDonaldization . Americas enormous cultural vitality and technological creativity, combined with hegemonic status in world politics, make her a net exporter of culture, giving her therefore no sense of threat from that direction either: it is her culture that spreads. But this spread of American culture threatens others to whom it goes.

Jagdish Bagwati, Defense, p. 120 American Culture in Numbers Number of types of packaged bread available at typical US supermarket 104 Amount of money spent by the fast food industry on television advertising per year $3 billion Number of coffee drinks available at Starbucks, whose stores accommodate a stream over 5 million customers every day 26

Number of new models of cars available to suburban residents 197 Number of hours the average American spends watching television per week 28 What could be done? Can we do it? Developed countries and international institutions Play a fair game Delivering on trade and foreign aid Deal with immigration issue Making international finance system less crisis prone Developing countries Corruption Protectionism

Education Governance A Concern and Warning In the new economy, everything is for sale, even those areas of life once considered sacred, like seeds and genes, culture and heritage, food, air and water. As never before in history, the public space, the vital commons of knowledge and our natural heritage, has been hijacked by the forces of private greed!!! However, the question isnt whether globalization is good or bad, but rather to ensure that a borderless world provides more fulfilled lives for all. What we really need is a healthy global polity! The Last Word The current process of globalization is generating unbalanced outcomes, both between and within countries. Wealth is being created, but too many countries and people are not sharing in its benefits. They also have little or no voice in shaping the process.

Seen through the eyes of the vast majority of women and men, globalization has not met their simple and legitimate aspirations for decent jobs and a better future for their children. . . . Even in economically successful countries, some workers and communities have been adversely affected by globalization. Meanwhile the revolution in global communications heightens awareness of these disparitiesthese global imbalances are morally unacceptable and politically unsustainable. Source: World Commission on the Social Dimensions of Globalization 2004

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