Globalisation (Wikipedia)
Josph Stiglitz’s definition:
Globalization "is the closer integration of the countries and. peoples of the world
...brought about by the enormous reduction of costs of transportation and
communication, and the breaking down of artificial barriers to the flows of goods,
services, capital, knowledge, and people across borders”
Wikipedia definition: Globalization describes the process by which regional economies,
societies, and cultures have become integrated through a global network of political
ideas through communication, transportation, and trade. The term is most closely
associated with the term economic globalization: the integration of national economies
through trade, foreign direct investment, capital flows, migration, the spread of
technology, and military presence.
“Globalisation” used widely since the late 1980s. There are numerous, competing
definitions. Some argue that G not a new phenomenon; that it began with expansion of
trade and European empires across Asia and the Indian Ocean from the 15th century
on. Some say that globalisation began when humans migrated from Africa!
Economic globalisation attributed to reduction and removal of barriers between
countries to increase/encourage the flow of goods, capital, services and labour.
EFFECTS OF GLOBALISATION:
ECONOMIC
Industry and trade: world trade in manufactured goods increased enormously in past
50 years thru removal of trade barriers, improved communications and transport.
For: by manufacturing in countries with cheaper labour/environmental/safety laws,
industries are producing cheaper goods, benefiting consumers.
Against: exploitation of workers in some countries; serious environmental problems
created by massive increase in production and sale of consumer goods (water, oil,
energy, waste, dyes, plastics, fertilisers to grow cotton, machinery, transportation, etc)
Finance- emergence of worldwide financial markets and better access to financing for
borrowers.
For: easier access to more capital has financed expansion in production, trade and
consumption.
Against: financial strife in one country affects others. For example, recent global
financial crisis. Many countries still in financial trouble (Iceland, Greece). Strife began
with collapse of several American banks.
Communications and Information: technology enabling huge increase in the free flow of
information all around the world. Some argue that Wikileaks is marvellous for democracy
and making govts accountable.
Neg: enabling terror groups and pedophiles to communicate quickly, easily and globally.
Some argue that Wikileaks dangerously undermining national sovereignity and national
security.
Language: English becoming the language of globalisation. Dominant language used on
Internet.
For: can all speak to each other. Universal language.
Against: language of “power” could lead to extinction of many languages, so integral to
cultural identity.
Jobs
Globalisation generates jobs in developed and developing countries as multinationals and
smaller companies expand into new markets.
For: Australian wine industry expansion driven by expanding overseas markets. Huge
increase in jobs for people in developing or poorer countries. Clothing production in Fiji,
Toyotas made in South Africa.
Against: jobs lost to “cheaper” overseas workers.
Environment
Huge increase in global industrial production, trade, consumption and travel resulting in
increased greenhouse gas emissions (climate change), land, water and air pollution that
affects all countries, extinction of land and sea species, desertification and erosion
through land clearing.
Cultural:
For: exposure to new cultures through work, travel (aided by cheaper air fares), goods,
Internet. Helps people connect, break down barriers and predjudices. Spread and
acceptance of multiculturalism through increased job mobility and immigration.
Against: Non-Western cultures influenced/radically changed/destroyed by dominant
culture of globalisation; which basically is driven by profit and consumerism.
Transport/travel: so many humans have never before moved, or moved so quickly,
around the world due to airplanes and cheap air travel.
For: good for cross-cultural understanding, job prospects, family connections, recreation
and relaxation.
Against: rich whites damaging/disrespectful/abusive towards non-white non-Western
cultures; diseases spreading more easily (Aids, bird-flu, pandemics, etc); homogenisation
of culture (fancy hotels, Coke, hotels/cities all look the same); massive pollution and
environmental destruction generated by air travel; huge expansion in illicit drug trade
Legal/Ethical
The creation of the international criminal court and international justice movements.
Interntional cooperation in law enforcement; for example, Interpol.
Some people argue that such international courts undermine national sovereignity.
Slobodan Milosevic no doubts resent being hauled before international court for
decisions he made as Serbian leader.
Ideas/ideology
Telecommunication advances aiding the spread of democracy. Telecommunications have
informed Egyptians about alternative forms of national government, and enabled them to
unite quickly in their opposition to Hosni Mubarek.
OPPOSITION TO GLOBALISATION:
Much opposition is aimed at world trade.
In 1980s globalisation referred to in media in generally positive terms, depicting it as a
natural and benign consequence of technological advances.
Opponents of globalisation often do not acknowledge that they are the recipients of the
benefits of globalisation: cheap air travel, cheaper clothing and cars, access to a wider
range of goods, etc, access to cheap communications technology that enables them to
communicate locally and internationally.
Opposition to globalisation often correlates with growing concerns about economic
insecurity and social inequality.
Many in the Third World see globalization is a positive force that lifts countries out of
poverty. Opponents of globalisation in such countries combine environmental concerns
with fears that governments are too willing to acquiese to multinationals. In other words
they don’t stand up to multinationals to ensure they offer workers fair wages and
conditions, do not pollute and pay fair and reasonable taxes in the nation in which they
operate.
Globalisation is a highly politicised issue and often used to serve political ends.
David Held and Anthony McGrew, in an article in The Oxford Companion to Politics of
the World, have suggested that views on globalisation fall into three camps.
1) Hyperglobalists believe that economic globalisation has eclipsed the autonomy and
sovereignty of nation-states
2) Sceptics argue that the hold of globalisation is exaggerated and the primacy of
national power and sovereignty continues.
3) Transformationalists emphasize the way in which globalization has led to a reorganization and re-articulation of economic, political, military and cultural power. Peer
Fiss and Paul Hirsch divides opinions into the following groups.
1) The positive frame points to the potential gains and benefits of globalization.
2) The neutral frame portrays globalization as a natural, evolutionary, and largely
inevitable development.
3) The negative frame argues the increasing potential for economic crisis, the threat to
the livelihoods of workers, and the growing income inequality caused by globalization. Big
concerns with the negative impact of globalization in the Third World.
4) The constructive frame supports international integration but demands that
democracy, economic justice, environmental protection, and human rights be put ahead
of purely economic concerns.
In industrialized countries opposition to globalization is often linked to economic selfinterest. Opponents express concerns about the interconnectedness of international
financial markets and the potential for economic crisis, as well as threats to the
livelihood of workers.
The establishment of the WTO in 1995 led to a large-scale anti-globalization movement
that is primarily concerned with the negative impact of globalization in developing
countries. Its concerns range from environmental issues to issues such as democracy,
national sovereignty and the exploitation of workers.
Some proponents of anti-globalisation seek to maintain trade barriers and strict
immigration controls. Proponents are suspicious of the power and motives of
multinational companies, particularly in their operations in developing countries.
1) Supporters of free trade or economic globalisation
Supporters of free trade claim that it increases economic prosperity and economic
opportunities, especially among developing nations, enhances civil liberties and leads to a
more efficient allocation of resources. All countries benefit from free trade, which
leads to lower prices, more employment, higher output and a higher standard of living
for those in developing countries.
HISTORY
Advent of globalization in its modern form in 19th century. Industrialization allowed
cheap production of household items using economies of scale, while rapid population
growth created sustained demand for commodities. Globalization in this period shaped
by 19th century imperialism. Conquest of new parts of the globe by Europeans yielded
valuable natural resources such as rubber, diamonds and coal and helped fuel trade and
investment between the European imperial powers, their colonies, and the United
States.“
Since World War II, politicians worked to break down borders hampering trade. Their
work led to the Bretton Woods conference, which laid down the framework for
international commerce and finance, and the founding of several international
institutions intended to oversee the processes of globalization.
Globalization also driven by expansion of multinationals based in the United States and
Europe, and worldwide exchange of new developments in science, technology and
products. Development and growth of international transport and telecommunication
played a decisive role in modern globalization.
Since World War II, barriers to international trade have been considerably lowered
through international agreements — GATT (General Agreement on Tariffs and Trade).
Promotion of free trade involved:
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elimination of tariffs; creation of free trade zones with small or no tariffs
Reduced transportation costs, especially resulting from development of
containerization for ocean shipping.
Reduction, elimination, or harmonization of subsidies for local businesses
Creation of subsidies for global corporations
Other trade agreements, including sections of Europe's Maastricht Treaty and
the North American Free Trade Agreement (NAFTA) have also been signed to
reduce tariffs and barriers to trade.