For and Against Globalization
Learning outcome
Students will examine views about globalization and then using technology will display their
understanding of the impact of globalization.
In the end of this activity, you will create a short movie on movie maker demonstrating your views on the
impact of globalization.
With a partner, (or in a group of 3)
1. Brainstorm your ideas about globalization. Group the issues to decide on the key themes.
2. Research the benefits to globalization and the negative effects of globalization? What is causing
these negative effects? How have these effects impacted the world? In what ways do corporations
play a positive role globally? Keep track of sources
3. Create a Plus/Minus/Unsure chart for each theme, which should assist you in considering how
globalization affects your life. Are you in favour or against globalization?
4. Read the Background to Globalization at
http://www.globaleducation.edna.edu.au/globaled/page178.html. Does this alter your opinions
about globalization?
5. Compare your findings with your partner and discuss.
6. Decide, as a pair (group), your response to globalization. Do you believe it is a negative or do the
positives outweigh the negatives?
ASSIGNMENT
Assessment task
 Deciding on your position on globalization, create a short movie presentation (about 2 minutes) showing
your group’s interpretation of globalization and the impact (either positive or negative) on the world.
(You could look at a variety of areas such as economic growth, expansion of technology, poverty
reduction, environmental impact, or cultural imperialism, employment exploitation, widening the rich
poor gap).
 Plan out how you want your movie to look visually. (ie.. Pictures and words moving across the screen
with a vocal track in the back? Or just music in the background?
 Make sure you use relevant and recent sources.
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Globalization
Facts
 Global income is more than $31 trillion a year, but 1.2 billion people of the world's population
earn less than $1 a day.
 80% of the global population earns only 20% of global income, and within many countries there
is a large gap between rich and poor.
 The 3 billion people living in the 24 developing countries that increased their integration into the
world economy enjoyed an average 5% growth rate in income per capita, longer life expectancy
and better schooling.
 Two billion people, living in countries in sub-Saharan Africa, the Middle East, and the former
Soviet Union, have been unable to increase their integration into the world economy, and their
economies have contracted, poverty has risen, and education levels have risen less rapidly than
in the more globalised countries.
 Sea level rise, warming temperatures, uncertain effects on forest and agricultural systems, and
increased variability and volatility in weather patterns are expected to have a significant and
disproportionate impact in the developing world, where the world's poor remain most
susceptible to the potential damages and uncertainties inherent in a changing climate.
 The digital and information revolution has changed the way the world learns, communicates,
does business and treats illnesses. In 2002, there were 364 people per 1000 using the internet in
high income countries, while there were only 10 per 1000 in low income countries.
Source: The World Bank, 2004, http://www.worldbank.org/
United Nations Development Programme, 2004 http://www.undp.org/
Background
What is globalization?
There are many different definitions of globalization, but most acknowledge the greater movement of
people, goods, capital and ideas due to increased economic integration which in turn is propelled by
increased trade and investment. It is like moving towards living in a borderless world.
There has always been a sharing of goods, services, knowledge and cultures between people and
countries, but in recent years improved technologies and a reduction of barriers means the speed of
exchange is much faster. Globalization provides opportunities and challenges. Bigger markets can mean
bigger profits which leads to greater wealth for investing in development and reducing poverty in many
countries. Weak domestic policies, institutions and infrastructure and trade barriers can restrict a
country's ability to take advantages of the changes. Each country makes decisions and policies that
position them to maximise the benefits and minimise the challenges presented by globalization.
The issues and perceived effects of globalization excite strong feelings, tempting people to regard it in
terms of black and white, when in fact globalization is an extremely complex web of many things. The
following table presents ten opposing points of view often expressed about globalization.
1.
Benefits of Globalization
Problems of Globalization
Economies of countries that engage well with the
international economy have consistently grown much
faster than those countries that try to protect
themselves. Well managed open economies have
grown at rates that are on average 2 ½ percentage
There are social and economic costs to globalization.
Trade liberalisation rewards competitive industries and
penalises uncompetitive ones, and it requires
participating countries to undertake economic
restructuring and reform. While this will bring benefits in
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2.
3.
4.
5.
6.
7.
points higher than the rate of growth in economies
closed to the forces of globalization.
the long term, there are dislocation costs to grapple with
in the immediate term, and the social costs for those
affected are high.
Countries which have had faster economic growth have then
been able to improve living standards and reduce poverty.
India has cut its poverty rate in half in the past two decades.
China has reduced the number of rural poor from 250
million in 1978 to 34 million in 1999. Cheaper imports also
make a wider range of products accessible to more people
and, through competition, can help promote efficiency and
productivity.
Some countries have been unable to take advantage of
globalization and their standards of living are dropping
further behind the richest countries. The gap in incomes
between the 20% of the richest and the poorest
countries has grown from 30 to 1 in 1960 to 82 to 1 in
1995.
Improved wealth through the economic gains of globlisation
has led to improved access to health care and clean water
which hasincreased life expectancy. More than 85 percent
of the world's population can expect to live for at least sixty
years (that's twice as long as the average life expectancy 100
years ago!)
Increased trade and travel have facilitated the spread of
human, animal and plant diseases, like HIV/AIDS, SARS
and bird flu, across borders. The AIDS crisis has reduced
life expectancy in some parts of Africa to less than 33
years and delays in addressing the problems, caused by
economic pressures, have exacerbated the situation.
Globalization has also enabled the introduction
of cigarettes and tobacco to developing countries,
with major adverse health and financial
costs associated with that.
Increased global income and reduced investment barriers
have led to an increase in foreign direct investment which
has accelerated growth in many countries. In 1975, total
foreign direct investment amounted to US$23 billion while
in 2003 it totalled US$575 billion.
The increasing interdependence of countries in a
globalised world makes them more vulnerable to
economic problemslike the Asian financial crisis of the
late 1990's.
Improved environmental awareness and accountability has
contributed to positive environmental outcomes by
encouraging the use of more efficient, less-polluting
technologies and facilitating economies' imports of
renewable substitutes for use in place of scarce domestic
natural resources.
The environment has been harmed as agricultural,
forest, mining and fishing industries exploit inadequate
environmental codes and corrupt behaviour in
developing countries. Agricultural seed companies are
destroying the biodiversity of the planet, and depriving
subsistence farmers of their livelihood.
Increasing interdependence and global institutions like WTO
and World Bank, that manage the settlement of
government-to-government disputes, have enabled
international political and economic tensions to be
resolved on a "rules based" approach, rather than which
country has the greatest economic or political power.
Importantly it has bolstered peace as countries are unlikely
to enter conflict with trading partners and poverty reduction
helps reduce the breeding ground for terrorism.
The major economic powers have a major influence in
the institutions of globalization, like the WTO, and this
can work against the interests of the developing world.
The level of agricultural protection by rich countries has
also been estimated to be around five times what they
provide in aid to poor countries
Improved technology has dramatically reduced
costs and prices changing the way the world
communicates, learns, does business and treats
illnesses. Between 1990 and 1999, adult illiteracy rates
in developing countries fell from 35 per cent to 29 per
cent.
Trade liberalisation and technological improvements
change the economy of a country, destroying traditional
agricultural communities and allowing cheap imports of
manufactured goods. This can lead to unemployment if
not carefully managed, as work in the traditional sectors
of the economy becomes scarce and people may not
have the appropriate skills for the jobs which may be
created.
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8.
9.
10.
Modern communications and the global spread of
information have contributed to the toppling of
undemocratic regimes and agrowth in liberal
democracies around the world.
Modern communications have spread an
awareness of the differences between countries,
and increased the demand for migration to richer
countries. Richer countries have tightened the
barriers against migrant workers, xenophobic fears
have increased and people smugglers have
exploited vulnerable people.
The voluntary adoption by global companies of workplace
standards for their internationalised production facilities in
developing countries has made an important contribution to
respect for international labour standards. Wages paid by
multinationals in middle- and low-income countries are on
average 1.8 to 2.0 times the average wages in those
countries.
Globalised competition can force a 'race to the bottom'
in wage rates and labour standards. It can also foster
a 'brain drain' of skilled workers, where highly educated
and qualified professionals, such as doctors, engineers
and IT specialists, migrate to developed countries to
benefit from the higher wages and greater career and
lifestyle prospects. This creates severe skilled labour
shortages in developing countries.
International migration has led to greater recognition of
diversity and respect for cultural identities which is
improving democracy and access to human rights.
Indigenous and national culture and
languages can be eroded by the modern
globalised culture.
Source: AusAID, 2004, http://www.ausaid.gov.au/
Source: The World Bank, 2004, http://www.worldbank.org/
United Nations Development Programme, 2004http://www.undp.org/
Balancing the globalization scales
Globalization has costs and benefits. There have been examples of poorly managed globalization (eg when
countries opened their economic borders before they had the capacity to respond well) but there are also
examples of well managed engagement with the international community.
Like it or not, globalization is a reality. Many countries have committed themselves to reducing poverty
through the Millennium Development Goals (MDGs) and are cooperating together to work out smart ways
to manage globalization.
Australia's response
Australia is an example of a country that has benefited from globalization, both in terms of exports (wool,
wheat and minerals) and as a borrower of international capital. The standard of living Australians enjoy
now can be attributed to its 'open' and, therefore competitive, economy.
Australia lives in a region surrounded by populous developing countries and a significant proportion of our
exports either go to, or pass through, developing countries. Through its aid program, Australia provides
technical assistance, capacity building initiatives and investment, and information communication
technologies to promote active participation in the global community. Australia is working to maximise
the benefits and minimise the challenges presented to developing countries by globalization.
Virtual Colombo Plan (VCP)
The Virtual Colombo Plan, a $200 million joint initiative of the Australian Government and World Bank,
assists developing countries to access knowledge networks and improved education.
It has provided:
a high-speed broadband connection for the University of the South Pacific video-conferencing and
internet centres in China, East Timor, PNG and Vietnam an internet portal to maximise the interchange of
information about sustainable development and poverty reduction http://www.developmentgateway.com.au/
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Trade and Development
Australia is providing technical advice to developing countries to engage in trade negotiations and
improve trade facilitation through more efficient port, customs and quarantine systems. Australia is also
helping developing country economies maximise benefits from free trade opportunities, for example, by
reform of domestic policy on trade related aspects of intellectual property rights.
Australia also provides tariff and quota free access for all goods produced in the 49 Least Developed
Countries.
http://www.ausaid.gov.au/publications/pubout.cfm?ID=8919_7048_6624_3702_4235
http://www.dfat.gov.au/
Global agenda
International Monetary Fund (IMF)
URL: http://www.imf.org/external/index.htm
The official site for the International Monetary Fund (IMF). The IMF is a sister institution to the World
Bank in the United Nations system. It shares the same international membership and the same goal of
raising living standards in its member countries. It works to foster global monetary cooperation, secure
financial stability, facilitate international trade, promote high employment and sustainable economic
growth and reduce poverty. Contents of the site include a clear explanation of the role of the IMF, a FAQ,
the Annual Report 1998, member nations, current issues on world finance and a range of interesting
articles. Site relevant for Upper Secondary students studying Economics, Accounting, Politics and History.
Suitable for Secondary, Teacher Reference.
World Bank
URL: http://www.worldbank.org/
The World Bank Group's mission is to fight poverty and improve the living standards of people in the
developing world. It is a development bank which provides low-interest loans, interest-free credit, grants,
policy advice, technical assistance and knowledge sharing services to low and middle-income countries to
reduce poverty. The Bank promotes growth to create jobs, and to empower poor people to take
advantage of economic opportunities. The Bank is strongly committed to the Millennium Development
Goals which target poverty, school enrolments, child mortality, maternal health, disease, and access to
water. It is currently involved in more than 1,800 projects, in virtually every sector and developing
country.
World Social Forum (WSF)
URL: http://www.forumsocialmundial.org.br/index.php?cd_language=2&id_menu=
The World Social Forum (WSF) is an amalgamation of many political/social movements from around the
world. It was created to openly discuss alternatives to the model for globalization formulated by the
World Economic Forum, large multinational corporations, national governments, IMF, the World Bank
and the WTO. It is working to demonstrate that the path to sustainable development, social and
economic justice lies in alternative models for people-centred and self-reliant progress, rather than in
neo-liberal globalization.
World Trade Organisation
URL: http://www.wto.org/
The World Trade Organization (WTO) is a global international organisation dealing with the rules of trade
between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world's
trading nations and ratified in their parliaments. The goal is to help producers of goods and services,
exporters, and importers conduct their business.
http://www.globaleducation.edna.edu.au/globaled/page178.html
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