Agenda
Definition and influence of Globalization Pros and Cons of Globalization Definition, movements and causes of Anti-
globalization Why anti-globalization? Example victims of globalization Conclusions and recommendations
What is Globalization?
Increasing global connectivity. Integration and interdependence in the
economic, social, technological, cultural, political, and ecological spheres.
An umbrella term and is perhaps best understood as a unitary process inclusive of many sub-processes that are increasingly binding people and the biosphere more tightly into one global system.
The influence of globalization
Industrial - emergence of worldwide production markets and broader access to a range of goods for consumers and companies.
Financial - emergence of worldwide financial markets and better access to external financing for corporate, national and subnational borrowers.
Economic - realization of a global common market, based on the freedom of exchange of goods and capital.
The influence of globalization
Political - Political globalization is the creation of a world government which regulates the relationships among nations and guarantees the rights arising from social and economic globalization.
Social - the achievement of free circulation by people of all nations.
Informational - increase in information flows between geographically remote locations.
The influence of globalization
Cultural - growth of cross-cultural contacts; cultural diffusion; "world culture".
Ecological- the advent of global environmental challenges that can not be solved without international cooperation, such as climate change, cross-boundary water and air pollution, over-fishing of the ocean, and the spread of invasive species.
Pros and Cons of Globalization Pros
Productivity grows more quickly when countries produce goods and services in which they have a comparative advantage. Living standards can go up faster.
Global competition and cheap imports keep a lid on prices, so inflation is less likely to derail economic growth.
An open economy spurs innovation with fresh ideas from abroad.
Accelerated the development and innovation of technology and communication
Pros and Cons of Globalization Cons
Millions of westerns have lost jobs due to imports or production shifts abroad. Most find new jobs that pay less.
Millions of others fear losing their jobs, especially at those companies operating under competitive pressure.
Workers face pay-cut demands from employers, which often threaten to export jobs.
Service and white-collar jobs are increasingly vulnerable to operations moving offshore.
western employees can lose their comparative advantage when companies build advanced factories in low-wage countries, making them as productive as those at home.
Other faces of Globalization
Globalization= Imperialism Globalization = Americanization Globalization = Delocalization Globalization = Multinational corporations Globalization = Branding Globalization = the rich gets richer, the poor gets
poorer
What is anti-globalization?
The political attitude of people and organizations that resist certain aspects of globalization.
social movements participants are united in opposition to the
political power of large corporations Self-consciously internationalist, organizing
globally an advocating for the cause of oppressed people around the world
Anti-globalization Movements J18
June 18, 1999 London, UK; Eugene, Oregon
Seattle/N30 November 30, 1999 5,000 protesters blocked delegates’ entrance to WTO meetings in
Seattle Protesters forced the cancellation of the opening ceremony and lasted
the length of the meeting until December 3
Genoa July 18 – July 20, 2001 Biggest anti-globalization gathering in history, 250,000 protesters against the G8 meeting in Genoa, Italy 3 dead, hundreds hospitalized
Causes of Anti-globalization Movement Globalization globalizes money and
corporations, but not people and unions Outsourcing and offshoring caused millions of
westerns lost jobs or paid less Fear losing jobs in western countries Exploitation of the resources in the
developing countries by western countries
Why anti-globalization? (cont’d) Economical
Exploitation of the resources in the third world country
Example of Starbucks Vs. Ethiopian Coffee Ethiopians demand Starbuck’s support to trademark
3 of its coffees in US $4, a cup of Cappuccino at Starbucks; $.50, a day income
of the Ethiopian farmer
at the coffee farm
Why anti-globalization? (cont’d) Cultural
Local or minority culture are facing the fate of disappearing
Western culture invaded into developing countries Example: McDonalds
More than 100 countries 30,000 restaurants Serves 50 million people daily
Why anti-globalization? (cont’d) Environmental
Aggravated pollution, Global warming, losses in biodiversity and species extinction
Average global temperatures are estimated to rise 1- 3.5 centigrade (33.8 – 38.5 degrees) by 2050
Developed industrial countries export hazardous waste to third world countries
Example: one global
agribusiness firm closed a terminal
in Brazil's Amazon region for
environmentalists
Why anti-globalization? (cont’d) Women and children
90% of the workers at the
sweatshops are women Child labor hired by global
companies in developing countries Example: 14-year-old workers in Nike factories
in Indonesia
Why anti-globalization? (cont’d) Human rights
More and more strict immigration restrictions in developed countries, no free move for labors
In sweatshops in developing countries, harsh working conditions, low pay and overtime working are common
Example: The Pouty Bratz dolls factory in Southern China Working 94 hours a week 17 cents, workers are paid for making each doll; $19, retail price in US More than 120 million Bratz dolls sold in US since 2001
Why anti-globalization? (cont’d) Social
The unequal wealth distribution worldwide The gap between the developed countries and the
third world counties The gap between
the poor and rich
Liberalization influence to Russia’s GDP
Indices of GDP(1991=100), Russia, 1990-2004
0
20
40
60
80
100
120
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Source:http://www.tiger.edu.pl/publikacje/TWPNo85.pdf
Liberalization influence to Czech GDP
GDP Growth Rate of Czech Republic(1990-1999)
-12
-10
-8
-6
-4
-2
0
2
4
6
8
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Source:http://demography.anu.edu.au/Publications/ConferencePapers/IUSSP2001/TablesPhilipov.doc
Globalization might be harmful to Developed Countries in the future China is striving to create global automobile
and electronics brands. India’s skill-intensive service sectors like IT a
nd outsourcing are rising very fast. Western firms would face unprecedented
competition from the two and other developing countries.
Conclusions
Anti-globalization movements are the indication of self-protection.
Globalization already resulted in many adverse effects and made a portion of people worse-off.
Globalization makes highly liberalized countries expose their vulnerabilities to the rest of the world.
Can All Countries Benefit from Globalization?
Establish international monitoring system Domestic:
each country should build up a system that can integrate into the global market
protectionism in the domestic market International:
International institutions should reform to fit into the needs of the globalization, such as IMF, World Bank, UN
Be more responsible for all the countries, rather than some or few countries
Be more transparent and be monitored by member countries from third world
Can All Countries Benefit from Globalization? To enhance corporations between countries and reg
ions Make free trade free and fair for both developing
and developed countries Eliminate or reduce the trade barriers Get more countries involved into the global market Equal and balance development in the global
market