Globalization
Globalization in a literal sense is international integration. It can be described as a process by which the people of the world are unified into a single society and functioning together. This process is a combination of economic, technological, sociocultural and politi political cal forces forces.. Global Globaliza izatio tion, n, as a term, term, is very often often used used to refer refer to economi economicc globalization, that is integration of national economies into the international economy thro throug ugh h trad trade, e, fore foreig ign n dire direct ct inve invest stme ment nt,, capit capital al flow flows, s, migra migrati tion on,, and and spre spread ad of technology. The word globalization is also used, in a doctrinal sense to describe the neol neolib iber eral al form form of economi economicc global globalizati ization on.. Glob Global aliizat zation ion is also also def defined ined as internationalism,, however such usage is typically incorrect as "global" implies "one internationalism world" as a single unit, while "international" (between nations) recognizes that different peoples, cultures cultures,, languages languages,, nations nations,, borders borders,, economies economies,, and ecosystems exist.
However, currently globalization has been due to Nort North h Americ American an business and trade developments developments throughout throughout the world. Thomas L. Friedman "examines the impact of the 'flattening' of the globe", Friedman argues that globalized trade, trade, outsourcing outsourcing,, supplychaining,, and political forces have changed the world permanently for good and bad. He chaining examines the positive and negative effects flattening has had and will continue to have on global politics and business.
Terms Sometimes the terms internationalization and globalization are used interchangeably but there is a slight formal difference. The term internationalization refers to the importance of international trade, relations, treaties etc. Inter+national means between or among nations; hence internationalization refers to the increased importance of relations between nations - the basic unit remains the nation. In contrast, the term globalization refers to economic integration on a global scale, into a global economy, which blurs national boundaries. In the extreme, globalization would mean erasure of national boundaries for
economic purposes; international trade (governed by compar comparative ative advanta advantages ges)) would become interregional trade (governed by absolute advantages The terms globalisation and anti-globalisation are used in various ways. Noam ways. Noam Chomsky states that
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The term "globalization" has been appropriated by the powerful to refer to a specific form of international economic integration, one based on investor rights, with the interests of people incidental. That is why the business press, in its more honest moments, refers to the "free trade agreements" as "free investment agreements" (Wall St. Journal). Accordingly, advocates of other forms forms of global globaliza izatio tion n are descri described bed as "anti-g "anti-glob lobali alizati zation"; on"; and some, some, unfortunately, even accept this term, though it is a term of propaganda propaganda that shoul hould d be dism dismis isssed wit with ridi ridicu cule le.. No sane ane pers person on is oppo oppose sed d to globalization, that is, international integration. Surely not the left and the workers movements, which were founded on the principle of international solidarity - that is, globalization in a form that attends to the rights of people, not private power systems.
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"The "The dom dominan inantt prop propag agan anda da sys systems tems have have appr approp oprriate iated d the the term erm "globa "globaliz lizati ation" on" to refer refer to the specif specific ic versi version on of intern internati ational onal economi economicc integr integrati ation on that that they favor, favor, which which privil privileges eges the rights rights of invest investors ors and lenders, those of people being incidental. inciden tal. In accord with this usage, those who favor a different form of international integration, which privileges the rights of human beings, become "anti-globalist." This is simply vulgar propaganda, like the term "anti-Soviet" used by the most disgusting commissars to refer to dissidents. It is not only vulgar, but idiotic. Take the World Social Forum, Forum, called "anti-globalization" in the propaganda system -- which happens to include the media, the educated classes, etc., with rare exceptions. The WSF is a paradigm example of globalization. It is a gathering of huge numbers of people from all over the world, from just about every corner of life one can think of, apart from the extremely narrow highly privileged elites who meet at the competing World Economic Forum, and are called "pro-globalization" by the propaganda system. An observer watching this farce from Mars would collapse in hysterical laughter at the antics of the e ducated classes."
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History
The word "Globalization " has has been been used used by econ econom omis ists ts sinc sincee 1981; 1981; howe however ver,, its its concepts did not become popular until the later half of the 1980's and 1990's. Globalization in its largest extent began a bit before the turn of the 16th century, in Portugal.. Th Portugal Thee count country ry's 's globa globall adven adventu turi rism sm in the 16th 16th cent century ury link linked ed cont contin inen ents ts,, economies and cultures as never before. The Kingdo Kingdom m of Portu Portugal gal kicked off what has come to be known as the Age of Discovery, Discovery, in the mid-1400s. The westernmost country in Europe, was the first to significantly probe the Atlantic Ocean, Ocean, colonizing the Azores Azores,, Madeira and other Atlantic islands, then braving the west coast of Africa Africa.. In 1488, Portuguese Portuguese explorer explorer Bartolomeu Dias was the first to sail around the southern tip of Africa, and in 1498 his countryman Vasco da Gama repeated the experiment, making it as far as India India.. The Portuguese Empire would establish ports, forts and trading posts as far west as Brazil Brazil,, as far east as Japan and Timor , and along the coasts of Africa, India and China.. For the first time in history, a wave of global China of global trade, trade, colonization colonization,, and enculturation reached all corners of the world. Globalization is viewed as a centuries long process, tracking the expansion of human population and the growth of civilization of civilization,, that has accelerated dramatically in the past 50 years. years. Early Early forms forms of globali globalizat zation ion existe existed d during during the Roman Empir Empiree, the Parthian empire, and the Han Dynasty, Dynasty, when the silk road started in China, reached the boundaries of the Parthian empire, and continued onwards towards Rome. The Islamic Golden Age is also an example, when Muslim traders and explorers established an early global economy across across the Old World resu result ltin ing g in a global globalizati ization on of crops crops,, trad trade, e, know knowle ledg dgee and and technology; and later during the Mongol Empire, Empire, when there was greater integration along the Silk Road. Road. Global integration continued through the expansion of European trade, as in the 16th and 17th centuries, when the Portuguese and Spanish Empires reached to all corners of the world after expanding to the Americas Americas.. In the 17th century, Globalization became a business phenomenon when the Dutch East India Company, Company, which is often described as the first multinational corporation, corporation, was established. Because of the high risks involved with international trade, the Dutch East India Company became the first company in the world to share risk and enable joint ownership through the issuing of shares of shares:: an important driver for globalization. In the 19th century it was sometimes called "The First Era of Globalization" a period charact characteri erized zed by rapid rapid growth growth in intern internati ational onal trade trade and invest investmen ment, t, between between the European imperial powers, their colonies, and, later, the United States. States. It was in this period that areas of sub-saharan Africa and the Island Pacific were incorporated into the world system. The "First Era of Globalization" began to break down at the beginning with the first World War, and later collapsed during the gold standard crisis in the late 1920s and early 1930s 1930s..
Modern Globalization
Globalization in the era since World War War II was first the result of planning plann ing by economists, econo mists, business interests, and politicians who recognized the costs associated with protectionism with protectionism and declining international economic integration. Their work led to the Bretton Woods conference and the founding of several international institutions intended to oversee the rene renewed wed proce process sses es of glob global aliz izat atio ion, n, prom promot otin ing g grow growth th and and manag managin ing g adve advers rsee consequences. These These were were the Intern Internati ational onal Bank for Reconst Reconstruc ructio tion n and Develop Developmen mentt (the (the World orld Bank) and the International Monetary Fund. It has been facilitated by advances in techn technol ology ogy whic which h have have reduc reduced ed the the cost costss of trade trade,, and and trad tradee negot negotia iati tion on roun rounds ds,, originally under the auspices of GATT of GATT,, which led to a series of agreements to remove restrictions on free trade. trade. Since Since World orld War II, barrie barriers rs to intern internati ational onal trade trade have been conside considerab rably ly lowere lowered d through international agreements - General Agreement on Tariffs and Trade (GATT). Particular initiatives carried out as a result of GATT and the World Trade Organisation (WTO), for which GATT GATT is the foundation, have included: •
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Promotion of free trade: Reduction or elimination of tariffs of tariffs;; construction of free trade zones with o small or no tariffs Redu Reduce ced d tran transp spor orta tati tion on cost costs, s, espe especi cial ally ly from from deve develo lopm pmen entt of o containerization for ocean shipping. Reduction or elimination of capital of capital controls o Reduction, elimination, or harmonization of subsidies of subsidies for local businesses o Restriction of free trade: Harmonization of intellectual of intellectual property laws across the majority of states, o with more restrictions. Supranational recognition of intellectual property restrictions (e.g. patents (e.g. patents o granted by China would be recognized in the United States)
The Uruguay round (1984 to 1995) led to a treaty to create the World Trade Organization (WTO), to mediate trade disputes and set up a uniform platform of trading. Other bi- and multilatera multilaterall trade agreements, agreements, including including sections sections of Europe's Europe's Maastricht Treaty and the
North American Free Trade Agreement (NAFTA) have also been signed in pursuit of the goal of reducing tariffs and barriers to trade. The use of the term globalization (in the doctrinal sense), in the context of these developments has been analysed by many including Noam Chomsky who states
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... That enhances what's called "globalization," a term of propaganda used conventionally to refer to a certain particular form of international integration that that is (not (not surp surpri risi sing ngly ly)) bene benefi fici cial al to its its desi design gner ers: s: Mu Mult ltin inat atio iona nall corporations and the powerful states to which they are closely linked.
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Critics have observed that the term's contemporary usage comprises several meanings, for example Noam Chomsky states that
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The term term "global "globaliza izatio tion," n," like like most most terms terms of public public discou discourse rse,, has two meanin meanings: gs: its literal literal meanin meaning, g, and a techni technical cal sense sense used used for doctri doctrinal nal purposes. In its literal sense, "globalization" means international integration. Its strongest proponents since its origins have been the workers movements and and the the left left (whi (which ch is why unio unions ns are are call called ed "int "inter erna nati tion onal als" s"), ), and the the strongest proponents today are those who meet annually in the World Social Forum and its many regional offshoots. In the technical sense defined by the powerful, they are described as "anti-globalization," which means that they favo favorr glob global aliz izat atio ion n dire direct cted ed to the the need needss and conc concer erns ns of peop people le,, not investors, financial institutions and other sectors of power, with the interests of people incidental. That's "globalization" in the technical doctrinal sense.
Measuring globalization
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Japanese McDonald's fast food as an evidence of international integration. Looking specifically at economic globalization, it can be measured in different ways. These centre around the four main economic flows that characterize globalization: •
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Goods and services, e.g. exports plus imports as a proportion of national income or per capita of population labor/ labor/peop people, le, e.g. e.g. net migrat migration ion rates; rates; inward inward or outwar outward d migrat migration ion flows, flows, weighted by population Capital, e.g. inward or outward direct investment as a proportion of national income or per head of population Technol echnology ogy,, e.g. intern internati ational onal resear research ch & develop developmen mentt flows flows;; propor proportio tion n of populations (and rates of change thereof) using particular inventions (especially As globalization is not only an economic phenomenon, a multivariate approach to measuring globalization is the recent index calculated by the Swiss think tank KOF. The index measures the three main dimensions of globalization: economic, social, social, and political. In addition addition to three indices measuring measuring these dimensions, dimensions, an overall index of globalization and sub-indices referring to actual economic flows, economic restrictions, data on personal contact, data on information flows, and data on cultural proximity is calculated. Data is available on a yearly basis for 122 countries, as detailed in Dreher, Gaston and Martens (2008). According to the index, index, the world' world'ss most most globali globalized zed country country is Belgium Belgium,, followed by Austria Austria,, Sweden,, the United Kingdom and the Netherlands Sweden the Netherlands.. The least globalized countries according to the KOF-index are Haiti Haiti,, Myanmar Myanmar the the Central African Republic and [12] Burundi.. Other measures conceptualize Globalization as diffusion and develop Burundi interactive procedure to capture the degree of its impact Jahn 2006.
A.T. Kearney and Foreign Policy Magazine jointly publish another Globalization another Globalization Index. Index. According According to the 2006 index, Singapore Singapore,, Ireland Ireland,, Switzerland Switzerland,, the U.S. U.S.,, the Netherlands the Netherlands,, Canada and Denmark Denmark are are the most globalized, while Egypt Egypt,, Indonesia Indonesia,, India and Iran are the least globalized among countries listed.
Effects of globalization
Globalizatio Globalization n has various aspects which affect affect the world in several several different different ways such as: •
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Industrial (alias trans nationalizat nationalization ion) - emerg emergence ence of worldw worldwide ide product production ion markets and broader access to a range of foreign products for consumers and companies Financial - emerg emergence ence of worldw worldwide ide financi financial al markets markets and better better access 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. Political - political globalization is the creation of a world government which regulates regulates the relationshi relationships ps among nations and guarantees guarantees the rights rights arising arising from social and economic globalization. Politically, the United States has enjoyed a position of power among the world powers; in part because of its strong and wealthy economy. With the influence of Globalization and with the help of The United United States’ States’ own economy, economy, China has experience experience some tremendous growth within the past decade. If China continues to grow at the rate projected by the trends, then it is very likely that in the next twenty years, there will be a major reallocation of power among the world leaders. China will have enough wealth, industry, and technology to rival the United States for the position of leading world power Informational - increase in information flows between geographically remote locations growth th of cros crosss-cul cultu tura rall cont contac acts ts;; adve advent nt of new new catego categori ries es of Cultural - grow consci conscious ousnes nesss and identi identitie tiess such such as Globalism - which which embodie embodiess cultura culturall diffusion, the desire to consume and enjoy foreign products and ideas, adopt new technology and practices, and participate in a "world culture" Ecological - the advent of global environmental challenges that can not be solved without without internationa internationall cooperation, cooperation, such as climate change, change, cross-boundary water and air pollution, over-fishing of the ocean, and the spread of invasive species. Many factories are built in developing countries where they the y can pollute freely. freely. Social - the achievement of free circulation c irculation by people of all nations Transportation - fewer and fewer European cars on European roads each year (the same can also be said about American cars on American roads) and the death of distance through the incorporation of technology technolog y to decrease travel time Greater international cultural exchange Spreading of multiculturalism multiculturalism,, and better individual access to cultural o diversity (e.g. through the export of Hollywood of Hollywood and Bollywood movies). However However,, the import imported ed cultur culturee can easily easily suppla supplant nt the local local cultur culture, e, causing reduction in diversity through hybridization or even assimilation assimilation.. The most prominent form of this is Westernization Westernization,, but Sinicization of cultures has taken place over most of Asia for many centuries. Greater international travel and tourism o Greater immigration Greater immigration,, including illegal immigration o Spread of local consumer products (e.g. food) to other countries (often o adapted to their culture)
World-wide fads and pop culture such as Pokémon Pokémon,, Sudoku Sudoku,, Numa Numa, Numa, Origami,, Idol series, Origami series, YouTube YouTube,, Orkut Orkut,, Facebook , and MySpace MySpace.. World-wide sporting events such as FIFA World Cup and the Olympic o Games.. Games Formation or development of a set of universal of universal values o Technical/legal Development of a global telecommunications infrastructure and greater o tran transb sbor orde derr data data flow flow,, usin using g such such tech techno nolo logi gies es as the the Internet Internet,, communication communi cation satel satellites lites,, su subm bmar arine ine fi fibe berr op opti ticc ca cabl blee, and wireless telephones Increase in the number of standards applied globally; e.g. copyright laws, laws, o patents and world trade agreements. The push by many advocates for an inter internation national al crimi criminal nal court and o international justice movements. movements. o
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Sexual awareness – It is often easy to only focus on the economic aspects of Globalization. This term also has strong social meanings behind it. Globalization can also mean a cultural interaction between different countries. Globalization may also have social effects such changes in sexual inequality, and to this issue brought about a greater awareness of the different (often more brutal) types of gender discrimination throughout the world. For example, Women and girls in Africa African n countri countries es have have long long been subjec subjected ted to female female circum circumcis cision ion-- such such a harmful procedure has been since exposed to the world, and the practice is now decreasing in occurrence.
Pro-globalization (globalism) Economic
Globalization advocates such as Jeffrey Sachs point to the above average drop in poverty rates rates in countr countries ies,, such such as China, China, where where global globaliza izatio tion n has taken taken a strong strong footho foothold, ld, compared to areas less affected by globalization, such as Sub-Saharan Africa, where poverty rates have remained stagnant. Support Supporters ers of fre freee tra trade de clai claim m that that it incr increa ease sess econo economi micc pros prospe peri rity ty as well well as opportunity, especially among developing nations, enhances civil liberties and leads to a more more effic efficien ientt allocat allocation ion of resour resources ces.. Econom Economic ic theori theories es of compar comparative ative advant advantage age suggest that free trade leads to a more efficient allocation of resources, with all countries involved in the trade benefiting. In general, this leads to lower prices, more employment, higher output and a higher standard of living for those in developing countries.
One of the ironies of the recent success of India and China is the fear that... success in these two countries comes at the expense of the United States. These fears are fundamentally wrong and, even worse, dangerous. They are wrong because the world is not a zero-sum struggle... but rather is a posit positive ive-su -sum m opp opport ortuni unity ty in which which improv improving ing techno technolog logies ies and skills skills can raise raise living living standards around the world.
Libertarians and other proponents of laissez-faire of laissez-faire capitalism say that higher degrees of political political and economi economicc freed freedom om in the form orm of democracy and capitalism in the the developed world are ends in themselves and also produce higher levels of material wealth. They see globalization as the beneficial spread of liberty and capitalism. [15] Supporters of democratic of democratic globalization are sometimes called pro-globalists. They believe that the first phase of globalization, which was market-oriented, should be followed by a phase of building global political institutions representing the will of world of world citizens. citizens. The difference from other globalists is that they do not define in advance any ideology to orient this will, but would leave it to the free choice of those citizens via a democratic process[citation needed ]. Some, such as Senator Senator Douglas Douglas Roche, Roche, O.C. O.C.,, simply view globalization as inevitable and advocate creating institutions such as a directly-elected United Nations Parliamentary Assembly to exercise oversight over unelected international bodies. Supporters of globalization argue that the anti-globalization movement uses anecdotal evidence[citation needed ] to support support their protectionist protectionist view, view, whereas whereas worldwide worldwide statistics statistics strongly support globalization: •
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From 1981 to 2001, according to World Bank figures, the number of people living on $1 a day or less declined from 1.5 billion to 1.1 billion in absolute terms. At the same time, the world population increased, so in percentage terms the number of such such peop people le in deve develo lopi ping ng nati nation onss decl declin ined ed from from 40% 40% to 20% 20% of the the popul populati ation. on. with with the greate greatest st improv improvemen ements ts occurr occurring ing in economi economies es rapidl rapidly y reduci reducing ng barri barriers ers to trade trade and invest investmen ment; t; yet, yet, some some critic criticss argue argue that that more more detailed variables measuring poverty should be studied instead The percentage of people living on less than $2 a day has decreased greatly in areas areas effe effect cted ed by glob global aliz izat atio ion, n, wher whereas eas pove poverty rty rate ratess in other other areas areas have have remain remained ed largely largely stagna stagnant. nt. In East-A East-Asia sia,, includ including ing China, China, the percent percentage age has decreased by 50.1% compared to a 2.2% increase in Sub-Saharan Africa
Percentag Demographi 1981 1984 1987 1990 1993 1996 1999 2002 e Change c 1981-2002
Less than $1 57.7% 57.7% 38.9% 38.9% 28.0% 28.0% 29.6% 29.6% 24.9% 24.9% 16.6% 16.6% 15.7% 15.7% 11.1% 1.1% -80. -80.76 76% % a day
East Asia and Pacific Less than $2 84.8% 84.8% 76.6% 76.6% 67.7% 67.7% 69.9% 69.9% 64.8% 64.8% 53.3% 53.3% 50.3% 50.3% 40.7% 40.7% -52. -52.00 00% % a day
Latin Americ a
Less than $1 9.7% 9.7% 11.8% 1.8% 10.9 10.9% % 11.3% 1.3% 11.3% 1.3% 10.7 10.7% % 10.5 10.5% % 8.9% 8.9% -8.25 8.25% % a day
Less than $2 29.6% 29.6% 30.4% 30.4% 27.8% 27.8% 28.4% 28.4% 29.5% 29.5% 24.1% 24.1% 25.1% 25.1% 23.4% 23.4% -29. -29.94 94% % a day
Less than $1 41.6% 41.6% 46.3% 46.3% 46.8% 46.8% 44.6% 44.6% 44.0% 44.0% 45.6% 45.6% 45.7% 45.7% 44.0% 44.0% +5.77 +5.77% % a day
SubSahara n Africa Less than $2 73.3% 73.3% 76.1% 76.1% 76.1% 76.1% 75.0% 75.0% 74.6% 74.6% 75.1% 75.1% 76.1% 76.1% 74.9% 74.9% +2.18 +2.18% % a day
'SOURCE: World Bank, Poverty Estimates , 2002
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Income inequal inequality ity for the world as a whole is diminishing. Due to definitional issues and data availability, there is disagreement with regards to the pace of the decline decline in extreme extreme poverty. poverty. Income inequal inequality ity for the world as a whole is diminishing As noted below, below, there are others disputing this. The economist Xavier Sala-i-Martin in a 2007 analysis ana lysis argues that this is incorrect, income inequality for the world as a whole has diminished. Regardless of who is right about the past trend in income inequality, is has been argued that improving absolute poverty is more important than relative inequality. Life expectancy has almost doubled in the developing world since World War II and is starting to close the gap between itself and the developed world where the improvement improvement has been smaller smaller.. Even in Sub-Saharan Sub-Saharan Africa, Africa, the least developed developed
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region, life expectancy increased from 30 years before World War II to about a peak of about 50 years before the AIDS pandemic and other diseases started to force it down to the current level of 47 years. Infant mortality has decreased in every developing region of the world. Democracy Democracy has increased increased dramatically dramatically from there being almost no nations nations with universal suffrage in 1900 to 62.5% of all nations having it in 2000 2000.. Feminism has made advances in areas such as Bangladesh through providing women with jobs and economic safety. safety. The proportion of the world's population living in countries where per-capita food supplies are less than 2,200 calories (9,200 kilojoules kilojoules)) per day decreased from 56% in the mid-1960s to below 10% by the 1990s. Between 1950 and 1999, global literacy increased from 52% to 81% of the world. Women made up much of the gap: female literacy as a percentage of male literacy has increased from 59% in 1970 to 80% in 2000. The percentage of children in the labor force has fallen from 24% in 1960 to 10% in 2000. There are similar increasing trends toward electric power, cars, radios, and telephones per capita, as well as a growing proportion of the population with access to clean water. water. The book The Improving State of the World also finds evidence for that these, and other, measures of human well-being has improved and that globalization is part of the explanation. explanation. It also responds to arguments arguments that environmental environmental impact will limit the progress.
Alth Althou ough gh crit critic icss of glob global aliz izat atio ion n compl complai ain n of Weste estern rniz izat atio ion, n, a 200 2005 5 UNES UNESCO CO reportshowed that cultural exchange is becoming mutual. In 2002, China was the third largest exporter of cultural goods, after the UK and US. Between 1994 and 2002, both North America's and the European Union's shares of cultural exports declined, while Asia's cultural exports grew to surpass North America.
Social International Social Forums
See main articles: European Social Forum, Forum, the Asian Social Forum, Forum, World Social Forum (WSF).
The first WSF was an initiative of the administration of Porto of Porto Alegre in Brazil Brazil.. The slogan of the World Social Forum was "Another World Is Possible". It was here that the WSF's Charter of Principles was adopted to provide a framework for the forums. The WSF became a periodic meeting: in 2002 and 2003 it was held again in Porto Alegre and became a rallying point for worldwide protest against the American invasion of Iraq. In 2004 it was moved to Mumbai (formerly known as Bombay, in India India), ), to make it more
acces accessi sibl blee to the the popul populat atio ions ns of Asia Asia and Afri Africa ca.. Th This is last last appoi appoint ntme ment nt saw saw the the participation of 75,000 delegates. In the meantime, regional forums took place following the example of the WSF, adopting its Charter of Principles. The first European Social Forum (ESF) was held in November November 2002 in Florence Florence.. The slogan was "Against the war, against racism and against neoliber liberal alis ism" m".. It saw saw the the parti partici cipa pati tion on of 60,0 60,000 00 dele delegat gates es and and ended ended with with a hug hugee demonstration against the war (1,000,000 people according to the organizers). The other two ESFs took place in Paris and London, in 2003 and 2004 respectively. Recently there has been some discussion behind the movement about the role of the social forums. Some see them as a "popular university", an occasion to make many people people aware aware of the proble problems ms of global globaliza izatio tion. n. Others Others would prefer prefer that that delegat delegates es concentrate their efforts on the coordination and organization of the movement and on the planning of new campaigns. However it has often been argued that in the dominated countries (most of the world) the WSF is little more than an 'NGO fair' driven by Northern NGOs and donors most of which are hostile to popular movements of the poor.
Anti-globalization (mundialism) Main article: Anti-globalization article: Anti-globalization Anti-globalization is a pejorative term used to describe the political stance of people and groups who oppose the neoliberal version of globalization .
“Anti-globalization" may involve the process or actions taken by a state in order to demonstrate its sovereignty and practice democratic decision-making. Anti-globalization may occur in order to put brakes on the international transfer of people, goods and ideology, particularly those determined by the organizations such as the IMF or the WTO in imposing the radical deregulation program of free market fundamentalism on local governments and populations. Moreover, as Canadian journalist Naomi journalist Naomi Klein argues in her book No No Logo: Taking Aim at the Brand Bullies (also subtitled No Space, No Choice, No Jobs) anti-globalism can denote either a single social movement or an umbrella term that encompasses a number of separate social movements [29] such as nationalists and socialists. In either case, participants stand in opposition to the unregulated political power of large, large, multi-natio multi-national nal corporations corporations,, as the corporations corporations exercise exercise power through leveraging trade agreements which damage in some instances the democratic rights of citizens, citizens, the environment particularly air qual quality ity ind index ex and rain fores forests ts,, as well as national national governm government entss sovere sovereign ignty ty to determ determine ine lab labor or rig rights hts incl includi uding ng the the righ rightt to unionize for better pay, and better working conditions, or laws as they may otherwise infringe on cultural practices and traditions of developing of developing countries. countries. Most people who are labeled "anti-globalization" consider the term to be too vague and inaccurate inaccurate Podobnik Podobnik states that "the vast majority majority of groups that participat participatee in these protests protests draw on internationa internationall networks of support, support, and they generally call for forms of globalization that enhance democratic representation, human rights, and egalitarianism."
Stiglitz, Joseph and Andrew Charlton write:
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The anti-globalization movement developed in opposition to the perceived negative aspects of globalization. The term 'anti-globalization' is in many ways a misnomer, since the group represents a wide range of interests and issues and many of the people involved in the anti-globalization movement do support closer ties between the various peoples and cultures of the world through, through, for example, aid, assistance assistance for refugees, refugees, and global environmental environmental issues.
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Members aligned with this viewpoint prefer instead to describe themselves as the Global Justice Movement , the Anti-Corporate-Globalization Movement , the Movement of Movements (a popular term in Italy), the "Alter-globalization " movement (popular in France), the "Counter-Globalization " movement, and a number of other terms. Critiques of the current wave of economic globalization typically look at both the damage to the planet, in terms of the perceived unsustainable harm done to the biosphere, as well as the perceived perceived human costs, such as increased increased poverty, poverty, inequality inequality,, miscegenatio miscegenation, n, injustice and the erosion of traditional culture which, the critics contend, all occur as a result of the economic transformations related to globalization. They challenge directly the metrics, such as GDP, used to measure progress promulgated by institutions such as the World Bank, and look to other measures, such as the Happy Planet Index, Index, created by the New Economi Economics cs Founda Foundation tion. They point to a "multitude of interconnected fatal conseque consequences nces--s --soci ocial al disint disintegr egrati ation, on, a breakd breakdown own of democr democracy acy,, more more rapid rapid and extensi extensive ve deteri deteriora oratio tion n of the environ environmen ment, t, the spread spread of new diseas diseases, es, increa increasin sing g poverty and alienation which they claim are the unintended but very real consequences of globalization. Critics argue that: •
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Poorer countries are sometimes at disadvantage : While it is true that globalization encourages free trade among countries on an international level, there are also negative consequences consequences because some countries countries try to save their national markets. The main export of poorer countries is usually agricu agricultu ltural ral goods. goods. It is diffic difficult ult for these these countri countries es to compete compete with with stronger countries that subsidize their own farmers. Because the farmers in the poorer countries cannot compete, compete, they are forced to sell their crops at much lower price than what the market is paying. foreign n impove impoveris rished hed worker workers: s: The deteri deteriora oratio tion n of Exploitation of foreig prote protecti ctions ons for weaker weaker nation nationss by stronge strongerr indust industria rializ lized ed powers powers has resulted in the exploitation of the people in those nations to become cheap labo laborr. Due Due to the the lack lack of prot protec ecti tion ons, s, comp compan anie iess from from powe powerf rful ul industrialized nations are able to offer workers enough salary to entice
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them to endure extremely long hours and unsafe working conditions. The abundance of cheap labor is giving the countries in power incentive not to rectify the inequality between nations. If these nations developed into industrialized nations, the army of cheap labor would slowly disappear alon alongs gsid idee devel developm opmen ent. t. With ith the the worl world d in this this curr current ent stat state, e, it is impossible for the exploited workers to escape poverty. It is true that the workers are free to leave their jobs, but in many poorer countries, this would mean starvation for the worker, and possible even his/her family. family. The shift to service work : The low cost of offshore workers have enticed corp corpor orat atio ions ns to move move produ product ctio ion n to fore foreig ign n count countri ries es.. The laid laid off off unskilled workers are forced into the service sector where wages and benefits are low, but turnover is high. This has contributed to the widening economic gap between skilled and unskilled workers. The loss of these jobs has also contributed greatly to the slow decline of the middle class which is a major factor in the increasing economic inequality in the United States. Families that were once part of the middle class are forced into lower positions by massive layoffs and outsourcing to another country. This also means that people in the lower class have a much harder time climbing out of poverty because of the absence of the middle class as a stepping stone. Weak labor unions : The surplus in cheap labor coupled with an ever growing number of companies in transition has caused a weakening of labor unions in the United States. Unions lose their effectiveness when their membership begins to decline. As a result unions hold less power over corporations that are able to easily replace workers, often for lower wages, and have the option to not offer unionized jobs anymore. an ymore. In December 2007, World Bank economist Branko Milanovichas called much previous empirical research on global poverty and inequality into question because, according to him, improved estimates of purchasing pow power er parit parity y indi indica cate te that that deve develo lopi ping ng count countri ries es are are wors worsee off off than than pre previ viou ousl sly y beli believ eved. ed. Mila Milanov novic ic rema remark rkss that that "lit "liter eral ally ly hun hundr dred edss of scholarly papers on convergence or divergence of countries’ incomes have been published in the last decade based on what we know now were faulty numbers numbers.. With the new data, data, economi economists sts will will revis revisee calcul calculati ations ons and possibly reach new conclusions" moreover noting that "implications for the estimates of global inequality and poverty are enormous. The new numbers show global inequality to be significantly greater than even the most most pess pessim imis isti ticc auth author orss had had thoug thought ht.. Unti Untill the the last last mont month, h, globa globall inequality, or difference in real incomes between all individuals of the worl world, d, was was esti estima mate ted d at aroun around d 65 Gini Gini poin points ts – with with 100 100 denot denotin ing g complet completee inequal inequality ity and 0 denotin denoting g total total equalit equality y, with with everyb everybody ody’’s income the same – a level of inequality somewhat higher than that of South Africa. But the new numbers show global inequality to be 70 Gini points – a level of inequality never recorded anywhere."
The critics of globalization typically emphasize that globalization is a process that is mediated according to corporate interests, and typically raise the possibility of alternative global institutions and policies, which they believe address the moral claims of poor and working classes throughout the globe, as well as environmental concerns in a more equitable way. The movement is very broad, including church groups, national liberation factions, peasant unionists, unionists, intellectua intellectuals, ls, artists, artists, protectioni protectionists, sts, anarchists anarchists,, those hose in support of relocalization and others. Some are reformist reformist,, (arguing for a more humane form of capitalism) while others are more revolutionary (arguing for what they believe is a more more huma humane ne sys system tem than than capi capita tali lism sm)) and and othe others rs are are reactionary reactionary,, belie believi ving ng globalization destroys national industry and jobs. One of the key points made by critics of recent economic globalization is that income inequality, both between and within nations, is increasing as a result of these processes. One article from 2001 found that significantly, in 7 out of 8 metrics, income inequality has increased in the twenty years ending 2001. Also, "incomes in the lower deciles of world income distribution have probably fallen absolutely since the 1980s". Furthermore, the World Bank's figures on absolute poverty were challenged. The article was skeptical of the World Bank's claim that the number of people living on less than $1 a day has held steady at 1.2 billion from 1987 to 1998, because of biased methodology. methodology. A chart that gave the inequality a very visible and comprehensible form, the so-called 'champa 'champagne gne glass' glass' effec effect, t, was contain contained ed in the 1992 United United Nation Nationss Develo Developme pment nt Program Report, which showed the distribution of global income to be very uneven, with the richest 20% of the world's population controlling 82.7% of the world's income
+ Distribution of world GDP, GDP, 1989
Quintile of Population
Income
Richest 20%
82.7%
Second 20%
11.7%
Third 20%
2.3%
Fourth 20%
1.4%
Poorest 20%
1.2%
SOURCE: United Nations Development Program. 1992 Human Development
Economic arguments by fair trade theorists claim that unrestricted free trade benefits those with more financial leverage (i.e. the rich) at the expense of the poor. Americanization related to a period of high political American clout and of significant growth of America's shops, markets and object being brought into other countries. So globalization, a much more diversified phenomenon, relates to a multilateral political world and to the increase of objects, markets and so on into each others countries. Some opponents of globalization see the phenomenon as the promotion of corporatist interests They also claim that the increasing autonomy and strength of corporate of corporate entities shapes the political policy of countries.
