Western Civilization from 1650 to the Present Dr. Edrene S. McKay (479) 855-6836 Email: EdreneMcKay@inbox.com GLOBALIZATION, THE WAR ON TERRORISM, AND THE FUTURE OF CAPITALISM UNDERSTANDING GLOBALIZATION The last quarter of the 20th century saw the development of a new phenomenon: globalization. As communism continued to decline around the world, some economists argued that capitalism had won the Cold War and that it was time for a new economic era. Giving globalization a historical context, New York Times "Foreign Affairs" columnist, Thomas L. Friedman, recently observed: "Globalization involves the …integration of markets, nation-states, and technologies to a degree never witnessed before, in a way that is enabling individuals, corporations, and nation-states to reach around the world farther, faster, deeper, and cheaper than ever before, and in a way that is also producing a powerful backlash from those brutalized or left behind by this new system…." Friedman's comparisons of globalization to the Cold War are insightful: "Globalization has its own defining technologies: computerization, miniaturization, digitization, satellite communications, fiber optics and the Internet. And these technologies helped to create the defining perspective of globalization. If the defining perspective of the Cold War world was 'division,' the defining perspective of globalization is 'integration.' The symbol of the Cold War system was a wall, which divided everyone. The symbol of the globalization system is a World Wide Web, which unites everyone. The defining document of the Cold War system was 'The Treaty.' The defining document of the globalization system is 'The Deal.'" Western nations hailed globalization of the economy as the answer to worldwide poverty, but critics argue that it has proven to be another form of Imperialism, claiming that companies from industrialized nations outsource jobs to developing countries to find the lowest possible labor costs and less environmental controls. The World Bank (WB), the World Trade Organization (WTO), and the International Monetary Fund (IMF) have developed global economic policies that largely ignore basic human rights policies. Is a global economy the solution to the world's social, economic, and political problems? During the past 10-15 years, traditionally poverty-stricken countries like Botswana, China, and Thailand have doubled their average per capita income by importing technology from other countries. However, inequalities still exist and worldwide the number of people who are forced to live in poverty actually has increased. Although most of these people live in rural areas unaffected by the global economy, do they stand to lose even more ground as jobs increasingly become centered in the large cities? For more on the critics of globalization and Third World poverty read Bauer: "Western Guilt and Third World Poverty" (http://www.valt.helsinki.fi/atk/gpe/texts/bauer.htm). To learn more about globalization, let's look as these aspects of the phenomenon: Economics ECONOMICS: Define globalization in terms of economics. Identify the economic benefits of globalization and the issues and concerns associated with globalization. Do some countries benefit more from globalization than others? What explanation can you Globalization and the War on Terrorism Page 2 provide for this? What Is Globalization? http://www.globalisationguide.org/01.html Global Policy Forum http://www.globalpolicy.org/ Yale Global Online http://yaleglobal.yale.edu/about/index.jsp Coming Together: Globalization Means Reconnecting the Human Community http://yaleglobal.yale.edu/about/essay.jsp World Bank: Globalization http://www1.worldbank.org/economicpolicy/globalization/index.html Time: Expand the Debate on Globalization http://www.time.com/time/magazine/1998/int/980202/special_report.expand_th25.html Free Markets and Poverty http://www.prospect.org/print/V13/1/weller-c.html McDonald's Corporate Site http://www.mcdonalds.com/corp.html The Biology of Globalization http://www.ratical.org/LifeWeb/Articles/globalize.html Human Rights HUMAN RIGHTS: Consider the impact that globalization has had on human rights. What does the Universal Declaration of Human Rights require of nations? Consider how global companies support or abuse human rights. What responsibility should global countries have to ensure acceptable working conditions for their employees? Is the issue of human rights limited to certain continents or is it a worldwide issue? Does globalization hinder or promote human rights? Poverty and Globalization http://news.bbc.co.uk/hi/english/static/events/reith_2000/lecture5.stm Nike Sweat Shops http://www.globalexchange.org/campaigns/sweatshops/nike/index.html Human Rights Principles for US Businesses in China http://www.globalexchange.org/campaigns/sweatshops/china/index.html Justice for Refugees http://www.prospect.org/print/V13/1/schulz-w.html Does Globalization Increase Child Labor: Evidence from Vietnam http://www.eldis.org/static/DOC10311.htm Amnesty Focuses on Globalization http://www.globalpolicy.org/globaliz/econ/2001/0530amn.htm Environment ENVIRONMENT: Consider how globalization impacts on the environment. Is globalization the sole reason for environmental concerns? How are companies and governments working together to address environmental concerns? Globalization and the War on Terrorism Page 3 What are the Environmental Aspects of Globalization? http://www.globalisationguide.org/08.html Is economic growth a cause of or cure for the environmental pollution? http://www.eldis.org/static/DOC12489.htm World Environment Foundation http://www.wef.org.uk/press_Palampur.htm Culture CULTURE: Consider the key elements of a country's culture. How does globalization affect these? What relationship exists between globalization and the decline of individual cultures? Does globalization lead to a "monoculture?" Consider this in light of the discussion on "Americanization" of the world. Does Globalization Thwart Cultural Diversity? http://www1.worldbank.org/economicpolicy/globalization/thwart.html Vanishing Cultures http://magma.nationalgeographic.com/2000/culture/lost/main.html Global Exchange http://www.globalexchange.org/ Culture, Trade, and Globalization http://www.unesco.org/culture/industries/trade/ How does globalization affect culture? Is it "Americanization?" http://www.globalisationguide.org/07.html LINKS BETWEEN GLOBALIZATION AND TERRORISM A U.S. National Intelligence Council report "Mapping the Global Future," released in 2005, warned "Globalization has ushered in an age of pervasive insecurity, eroding U.S. power while helping Asian rivals and giving extremist groups room to exploit the discontented." Just after the 9/11 attacks, Hendrik Hertzberg wrote in The New Yorker (9/24/01) that globalization "...relies increasingly on a kind of trust -- the unsentimental expectation that people, individually and collectively, will behave more or less in their rational self-interest.... The terrorists made use of that trust. They rode the flow of the world's aerial circulatory system like lethal viruses." Terrorists Use Technological Tools of Globalization The terrorist network at work today uses the technological tools of globalization, and they ignore (or attempt to transcend) the normal definitions of the nation-state. Furthermore, the extreme Muslim fundamentalists (and others) worry that unbridled globalization can exploit workers and replace ancient cultures with McDonald's and Mickey Mouse. "...leading thinkers have begun to discuss one of the ironies laid bare by the terror attack -- the same technologies that empower our lives turn into double- edged swords in the wrong hands," according to the San Francisco Chronicle...again writing in the days immediately following 9/11. Questions for Advocates of Globalization Given all this, globalization cheerleaders need to answer some questions: Is the War on Terrorism an excuse for the United States to extend globalization to the Middle East? Globalization and the War on Terrorism Page 4 How can the tools of globalization be kept out of destructive hands? Are you willing to accept more controls on the flow of goods and capital if it will prevent criminal acts? Can globalization go forward while also protecting the integrity of local cultures and communities? Italian Prime Minister Silvio Berlusconi reacted to the 9/11 attacks by drawing a direct connection between the terrorists and anti-globalization protestors. The terrorists were trying "...to stop the corrupting effect of Western civilization on the Islamic world," Berlusconi said, while "...the anti-globalization movement criticizes, from within Western civilization, the Western way of life, trying to make Western civilization feel guilty. That's why I see a singular coincidence between this action and the antiglobalization movement." Questions for Opponents of Globalization The vast majority of those who oppose globalization have denounced all forms of violence (both before and after September 11). But they still have some hard questions to answer as well: THINKING ABOUT GLOBALIZATION CRITICALLY Could the more inflammatory rhetoric of the anti-globalization movement inspire some people to violence, even terrorism? Since opponents of globalization themselves use the tools of globalization to organize, shouldn't they be more specific about what they dislike in globalization? Should opponents of globalization give up on street protests as a form of action? The 9/11 attacks changed many things, but globalization will continue, even if the pace or direction is altered. Let's just hope the debate over the pros and cons of globalization can take place in a civil atmosphere. 1. A criticism that is leveled against capitalism by socialists and communists is that warfare is a necessary part of the economic cycle of capitalism. Without warfare, they say, the capitalist system would collapse. It was military spending in Germany, with its expansionist policies, that brought about recovery in that country, but also caused World War II. And it was World War II that ultimately brought recovery to the United States and Canada. Is that overwhelming evidence that capitalism requires warfare to survive? 2. It's true that the experience of the Great Depression "changed the face of politics forever." We now still expect the federal government to create jobs and support economic development. But many of us complain when the government gets too involved in regulating business activity. Are we being hypocrites about this? Do we want our cake (laissez-faire economic policies) and eat it too (government support of economic objectives)? Are we asking the federal government to be the junior partner in a partnership between business and government? Because business plays such an important role in the economic health and welfare of the nation, are we saying that it should be calling all the shots, that it should have more power than government? 3. If we define capitalism as "an economic system in which all or most of the means of production are privately owned and operated…and where investments, production, distribution, income, and prices are determined largely through the operation of a 'free market'…," the United States does not have a capitalist economy. We have a system of "welfare capitalism" (an economic system that strives to spread the benefits of capitalism throughout society). Please review this is a short piece on the history of "welfare capitalism" in the United States: Globalization and the War on Terrorism Page 5 The historical development of welfare capitalism in the U.S.A. http://tiss.zdv.uni-tuebingen.de/webroot/sp/spsba01_W98_1/usa1.htm It was part of the Internet seminar "Reforming the Welfare State and Social Security Systems: USA, Germany, Chile - A Comparison" that took place during the winter semester 1998/99, at the Institute of Political Science, Melanchthonstr. 36, Tübingen, Germany, in cooperation with the Graduate School of International Studies, University of Denver. The article suggests that since the global Oil-Crisis (1974/75), the United States has been in the process of "deconstructing" the welfare state. If this is the case, and there is strong evidence that it is, what will take it's place? Will we go back to the unbridled capitalism of the pre-New Deal era? If so, is that likely to lead to another Great Depression? Or have we learned some lessons from the Depression Era and are not likely to repeat the same mistakes? What is the future of capitalism in the United States? 4. Are capitalism and globalization two sides of the same coin? If capitalism is evolving into something beyond the welfare state and business is gaining greater control of world markets, what does the future hold? Will government clear the path for globalization through warfare? Will it cease to consider public welfare a priority? Will it support corrupt governments around the world that are receptive to globalization? Will traditional societies be trapped in poverty even as their way of life is torn from them? Or will globalizations mean a higher standard of living for everyone? Will it remove poverty, famine, disease, and injustice from the world? Will it introduce democratic institutions and representative forms of government? Will it eliminate violence? Will traditional societies accept change and see the benefits of economic and technological progress?