Globalization

How did Western leaders try to How did Western leaders try to restore world trade after World restore world trade after World War II?War II?

In 1944, Western In 1944, Western leaders:leaders:

Created the World Bank. Created the World Bank.

Established the International Established the International Monetary Fund. Monetary Fund.

Established stable currency Established stable currency exchange rates.exchange rates.

Ushered in a new Global Age Ushered in a new Global Age of economic cooperation.of economic cooperation.

However, these However, these agreementsagreements did not did not include the Communist include the Communist bloc nationsbloc nations

In theory, free world trade In theory, free world trade encourages greater economic encourages greater economic specialization, more productivity, specialization, more productivity, and greater wealth. and greater wealth.

Efficient use of world Efficient use of world resources is possible. resources is possible.

Tariffs are eliminated.Tariffs are eliminated.

Businesses can move whereBusinesses can move wherethey make more profits.they make more profits.

More jobs are created.More jobs are created.

People have more money People have more money to spend.to spend.

And each country can concentrate on what it does best.

In the 1980s the U.S. moved to expand In the 1980s the U.S. moved to expand free market capitalism within the free market capitalism within the global system.global system.

Little government interference in Little government interference in the marketthe marketFreedom of individual choiceFreedom of individual choiceBorderless market economyBorderless market economyMarkets as masters over state Markets as masters over state policiespoliciesPeople should be free to pursue People should be free to pursue economic self-interesteconomic self-interestConsuming goods a major valueConsuming goods a major value

What is What is free free

market market capitaliscapitalis

m?m?

However, most nations However, most nations continued to pursue some continued to pursue some forms of economic forms of economic nationalismnationalism

In the 1980s China moved toward a free-market system and joined the global economy.

China’s Trade surplus balance with U.S. $666.2 billion in the 2004,

China’s economy will probably equal that of US. In twenty-five years.

China now buys from 1-2 billion China now buys from 1-2 billion dollars of the U.S. debt each dollars of the U.S. debt each day.day.

In 1989, the Berlin Wall came down and the Cold In 1989, the Berlin Wall came down and the Cold War ended. Eastern European countries broke War ended. Eastern European countries broke away from Soviet control. The Soviet Union itself away from Soviet control. The Soviet Union itself broke into more than a dozen new states.broke into more than a dozen new states.

The Berlin Wall was The Berlin Wall was built in August 1961built in August 1961

The Wall was The Wall was destroyed destroyed on November 9, on November 9, 19891989

In 1991, India abandoned it’s 44 year-old socialist oriented economy and embraced a the free market system and joined the global economy.

With a GDP of 800 billion dollars, India is now the fourth largest world economy after the U.S., China and Japan. India’s growth rate has averaged about 5.8 per cent for the past fifteen years.

Major exports include

Clothing

Automobiles

Handicrafts

With the collapseWith the collapse

In the 1990s, with the In the 1990s, with the integration of many of the integration of many of the states of the former Soviet states of the former Soviet Union and the entry of China Union and the entry of China and India, Globalization now and India, Globalization now embraced the majority of embraced the majority of the world’s economies . the world’s economies .

In the 1980s, the U.S., the major world In the 1980s, the U.S., the major world power, became the chief advocate of free power, became the chief advocate of free market capitalism for the global system. market capitalism for the global system.

Increasing global Increasing global connectedness through connectedness through rapid communication and rapid communication and transport.transport.

Rapid intensification of Rapid intensification of worldwide social relations. worldwide social relations.

Swift and free flow of Swift and free flow of capital, people, and ideas capital, people, and ideas across national borders.across national borders.

What is What is Globalization?Globalization?

billions7

6

5

4

3

2

1

1803 - 124 yrs 1927- 33 yrs 1960 - 14 yrs 1974 - 12 yrs 1986 – 13 yrs

The time it takes to add a billion people grows shorter.

World population has been World population has been rapidly increasing.rapidly increasing.

Wow! Wow! More than More than

6 6 billion billion people people

now alive.now alive.

Life expectancy is rising, but it varies world wide.

Country Average Life Expectancy

Sweden 79.2

France 78

United States 71.1

Bangladesh 62.8

Botswana 40.1

Zimbabwe 39.2

Average life Average life expectancyexpectancyfor the world for the world is 70 years.is 70 years.

Speed of travel has increased dramatically.

World wide communication is almost instantaneous

19811981

19771977

19571957

19821982

Look at this Look at this antique computerantique computer. .

It doesn’t even It doesn’t even have a hard drive!have a hard drive!

19621962

The computer has been changing The computer has been changing billions of lives.billions of lives.

Where are the Where are the books I ordered?books I ordered? I’m applying I’m applying

to college.to college.

IT Engineer IT Engineer seeks seeks househusbandhousehusband....

We’re catching We’re catching up with the U.S. up with the U.S. economy.economy.

Will you be my Will you be my E-pal?E-pal?

I raised my I raised my campaign funds campaign funds via the internet.via the internet.

But what does

globalization have to do

with me?

Jeans from Jeans from

MalaysiaMalaysia

Backpack Backpack from from ChinaChina

Shirt Shirt from from MexicoMexico

Cap from Cap from BangladeshBangladesh

Video gameVideo gamefrom Japanfrom Japan

Sneakers from Sneakers from

IndonesiaIndonesiaSoccer ball Soccer ball fromfromPakistanPakistan

Expanding technology

makes possible a

cornucopia of new products

for us

. .

New technologies allow humans New technologies allow humans to control nature like never to control nature like never beforebefore

More goods are being More goods are being produced, bought, and sold produced, bought, and sold worldwide than ever before.worldwide than ever before.

What shall I buy

next?

GlobaGlobalization also spreads ideas lization also spreads ideas and valuesand values..

Democratic ideas have spread to more countries than ever before.

IndiaIndia

KoreaKorea

JapanJapan

TaiwanTaiwan

MalaysiaMalaysia

QatarQatar

MaliMali

BrazilBrazil

South South AfricaAfrica

                       

But globalization brings high human costs.

Although the world’s people are producing Although the world’s people are producing more than 47 trillion dollars in wealth, these more than 47 trillion dollars in wealth, these riches are not distributed equally.riches are not distributed equally.

20% get most of the wealth.20% get most of the wealth.The U.S. owns 11 trillion dollars of The U.S. owns 11 trillion dollars of this wealth. this wealth. 2 billion of the world’s people live 2 billion of the world’s people live on less than $2 a day. on less than $2 a day. Peasants are forced to leave the Peasants are forced to leave the land as money and wage land as money and wage economies spread.economies spread. Workers without education and skills Workers without education and skills are often left behind. are often left behind.

The growing gap between the The growing gap between the rich and the poor continues to rich and the poor continues to increase.increase.

Global Distribution of I ncome (2002)

82.7

11.7

2.3

1.9

1.4Poorest

4th

3rd

2nd

Richest

Percentage of Global Income

Each bar representsa fifth of the world'spopulation arrangedby income.

Some big Some big multinational multinational corporations corporations have more have more wealth than wealth than many nations.many nations.

RankingGDP/value added $trillion

1 United States 9.9

2 Japan 4.7

    $billion

40 Malaysia 89.7

41 Colombia 81.3

42 Philippines 74.7

43 Chile 70.5

44Wal-Mart Stores 67.7

45 Pakistan 61.6

46 Peru 53.5

47 Algeria 53.3

48 Exxon 57.6

49 Czech Republic 50.8

50 New Zealand 50

51 Bangladesh 47.1

52United Arab Emirates 46.5

53 General Motors 46.2

54 Hungary 45.6

55 Ford Motor 45.1

56 Mitsubishi 44.3

57 Mitsui 41.3

58 Nigeria 41.1

59 Citigroup 39.1

60 Itachu 38.4

Gross DomesticGross DomesticProduct (GDP) Product (GDP) of Selectedof SelectedCountries and Countries and CorporationsCorporations20022002Corporations in bold faceCorporations in bold face

In poor countries child labor is In poor countries child labor is widespread. Some 212 million children of widespread. Some 212 million children of ages 5-14 are working instead of going to ages 5-14 are working instead of going to school. school.

These young These young girls work 12 girls work 12 hours a day, 6 hours a day, 6 days a week, days a week, earning $2-3 per earning $2-3 per week.week.

Most child labor Most child labor involves involves high energy work. high energy work.

                              

                           

          

                 

Outsourcing is increasing.Outsourcing is increasing.In 2003, the U.S. lost 234,000 information In 2003, the U.S. lost 234,000 information technology jobs. An estimated 14 million more technology jobs. An estimated 14 million more jobs may move overseas.jobs may move overseas. But the U.S. loss is a But the U.S. loss is a gain for India, China, Ireland, Korea and other gain for India, China, Ireland, Korea and other nationsnations

Narayana Murthy (right) and his Narayana Murthy (right) and his Infosys Information Technology Infosys Information Technology complex in Bangalore, India.complex in Bangalore, India.

Strong labor unions High wages Environment

protection laws and Unstable

governments

Manufacturing and capital flows to the areas of the world where they can make the most profits.

all tend to keep all tend to keep businesses and businesses and investment away.investment away.

The speed of globalization results in more pollution and global warming caused by over-cutting forests.burning fossil fuels.producing more industrial and consumer waste.

Growing threats to the environment affect all people

Global Global warming lead warming lead to major to major floods. floods.

Lots of people question globalization.

.

Hollywood Hollywood is ruining is ruining our our children. children.

Globalization Globalization is forcing my is forcing my child to work. child to work.

Free trade Free trade is destroying is destroying us farmers.us farmers.

Industrial Industrial countries are countries are leaving us out leaving us out of Globalization. of Globalization.

Development Development is destroying is destroying our rain forest. our rain forest.

We have 50 We have 50 million people million people living in poverty.living in poverty.

Some people believe that globalization is “cultural imperialism”.

Can you interpret how Can you interpret how this cartoon depicts this cartoon depicts the idea of “cultural the idea of “cultural

imperialism?”imperialism?”

Globalization involves paradoxes.

Profitable industry but widening gap between rich and poor?

Lots of cultural pluralism but people becoming “homogenized?”

Increasing interdependence but small communities banding more tightly together?

Huge wealth in industrialized nations but great poverty in other countries?

You mean You mean it’s not good it’s not good

for for everyone?everyone?

Some wholeheartedly embrace it.

Some seek to maintain their traditions in the face of perceived threats.

Some fight for more economic fairness.

Some turn to religion.

Some violently oppose it.

Some try to manage it for the greater human good.

People respond to globalization differently.

A house in Figuig, an oasisA house in Figuig, an oasisin Morocco on the edge of the in Morocco on the edge of the Sahara Desert. This family Sahara Desert. This family reaches out to the world through reaches out to the world through its satellite dish.its satellite dish.

Terrorism has ushered in a new global threat.

             

                    

Modern military strategies Modern military strategies and weapons are often and weapons are often ineffective against suicide ineffective against suicide attacks.attacks.

Terrorists communicate and Terrorists communicate and spread their ideologies using spread their ideologies using cell phones and the Internet.cell phones and the Internet.

Terrorist groups may have Terrorist groups may have cells in many nations. cells in many nations.

In 2002, the United States In 2002, the United States government adopted policies of government adopted policies of massive military intervention as part massive military intervention as part of a war on terror.of a war on terror.

2002 – U.S. forces invaded Afghanistan to topple the 2002 – U.S. forces invaded Afghanistan to topple the government of the Taliban, which was cooperating with government of the Taliban, which was cooperating with international terrorists.international terrorists.

2003 – U.S. forces invaded Iraq to overthrow the government 2003 – U.S. forces invaded Iraq to overthrow the government of Saddam Hussein. The U.S. accused him of supporting of Saddam Hussein. The U.S. accused him of supporting terrorism.terrorism.

Are we entering a new era of Are we entering a new era of international relations?international relations?

Your decisions and actions will Your decisions and actions will help shape the future.help shape the future.

Will we cooperate to Will we cooperate to fight terrorism and fight terrorism and work to ensure that work to ensure that all people live in all people live in dignity? How these dignity? How these issues turn out is issues turn out is really up to us.really up to us.

One person can make a One person can make a difference.difference.