GLOBALIZATION

GLOBALIZATIONGLOBALIZATION

Issues, Critics, and InstitutionsIssues, Critics, and Institutions

WHAT IS THE GLOBE?WHAT IS THE GLOBE?

• CULTURALLY CULTURALLY SPECIFIC SET OF SPECIFIC SET OF COMMITMENTSCOMMITMENTS

• RELATIONSHIPSRELATIONSHIPS

• SET OF PRACTICESSET OF PRACTICES

WHAT IS GLOBALIZTION?WHAT IS GLOBALIZTION?World wide integration and deepening of World wide integration and deepening of

economiceconomic activitiesactivitiesIIintegrated production and consumption integrated production and consumption

systemssystemsFFfacilitated by IT revolution, liberalization facilitated by IT revolution, liberalization

andand deregulationderegulationUUunprecedented mobility of goods, services, unprecedented mobility of goods, services,

capitalcapital and peopleand peopleEEvents all over the world strongly vents all over the world strongly

interdependentinterdependent

DEBATESDEBATES

1.1. Is globalization new or old? Is globalization new or old?

2.2. Is globalization good or bad?Is globalization good or bad?

3.3. Is globalization really “global” or Is globalization really “global” or inclusive of all people? inclusive of all people?

5 ASPECTS OF GLOBALIZATION5 ASPECTS OF GLOBALIZATION1.1. ECONOMICECONOMIC

2.2. TECHNOLOGICALTECHNOLOGICAL

3.3. CULTURALCULTURAL

4.4. POLITICALPOLITICAL

5.5. MILITARYMILITARY

THESE ASPECTS ARE ALL THESE ASPECTS ARE ALL INTERCONNECTED!INTERCONNECTED!

1. ECONOMIC GLOBALIZATION1. ECONOMIC GLOBALIZATION

EARLY CAPITALIST IDEAS:EARLY CAPITALIST IDEAS:

1. “Free Market Economy” (Adam 1. “Free Market Economy” (Adam Smith, Smith, Wealth of NationsWealth of Nations, 1776), 1776)

Market is “free” from State controlMarket is “free” from State control

2. Division of labor2. Division of labor

3. Competition3. Competition

Lets look at an Lets look at an example of “Division example of “Division

of Labor” of Labor”

Jointly owned by companies from 4 countries: Jointly owned by companies from 4 countries:

FranceFranceGerman German Britain and Britain and Spain. Spain. Wings from Britain, Wings from Britain, Fuselage and tail from Germany, Fuselage and tail from Germany, Doors from Spain, Doors from Spain, Cockpit and final assembly in France. Cockpit and final assembly in France.

1,500 suppliers in 27 countries.1,500 suppliers in 27 countries.

More than 35 percent of components for the More than 35 percent of components for the consortium's aircraft are supplied from over 500 American consortium's aircraft are supplied from over 500 American companies.companies.

Numerous suppliers also are located in the Asia-Pacific. Numerous suppliers also are located in the Asia-Pacific.

Singapore Technologies Aerospace produces wing ribs Singapore Technologies Aerospace produces wing ribs and passenger doors for the A320, and engine mounts and and passenger doors for the A320, and engine mounts and thrust reverser doors for the A340. thrust reverser doors for the A340.

India's Hindustan Aeronautics Limited also builds A320 India's Hindustan Aeronautics Limited also builds A320 passenger doors.passenger doors.

Economic GlobalizationEconomic GlobalizationTODAY:TODAY:• Economies Are Economies Are

Increasingly Linked Increasingly Linked TogetherTogether

• EXS: EXS: NAFTANAFTA (MX, CA, US), (MX, CA, US), The The EU, WTO EU, WTO (World Trade (World Trade Organization)Organization)

Economic GlobalizationEconomic GlobalizationWTOWTO

Only global Only global international international

organization dealing organization dealing with the rules of with the rules of trade between trade between

nationsnations Goal: help Goal: help

producers of goods producers of goods and services, and services,

exporters, and exporters, and importers conduct importers conduct

their businesstheir business

World Trade OrganizationWorld Trade OrganizationProsPros

1)Promotes free-”er” trade.

2)Raises world out-put levels via specialization

3)Establishes a standard rule by law and terms

of trade for greater efficiency.

4)Updates all participating countries and banks

to international standards and efficiency in terms

of trade and commerce.

World Trade OrganizationWorld Trade OrganizationConsCons

1)Unequal benefits awarded to DCs and LDCs 1)Unequal benefits awarded to DCs and LDCs

2)Certain DCs such as parts of Africa get marginalized due to 2)Certain DCs such as parts of Africa get marginalized due to

lack of participation in world trade.lack of participation in world trade.

3)Gives unfair political leverage to larger economies via 3)Gives unfair political leverage to larger economies via

hegemony.hegemony.

4)Rules and regulations are often ignored, and the 4)Rules and regulations are often ignored, and the

organization is powerless to act against minor oversight. organization is powerless to act against minor oversight. 

5)Decisions of the organization are dominated by larger 5)Decisions of the organization are dominated by larger

economies who have more voting power.economies who have more voting power.

ECONOMIC GLOBALIZATIONECONOMIC GLOBALIZATIONOld or New?Old or New?

MULTI-NATIONAL MULTI-NATIONAL CORPORATIONSCORPORATIONS– OLD: Dutch East India OLD: Dutch East India

Company?Company? 1602 company of Dutch 1602 company of Dutch

merchants & independent merchants & independent trading companies trading companies

Spice trade monopoly in East Spice trade monopoly in East AsiaAsia

Power to colonize territories Power to colonize territories & enslave indigenous people& enslave indigenous people

Indonesia & South AfricaIndonesia & South Africa

NEW: Nike, Wal-Mart, Royal/Dutch Shell NEW: Nike, Wal-Mart, Royal/Dutch Shell Top 100 multinationals are all US-owned Top 100 multinationals are all US-owned

companies!companies! Royal/Dutch Shell: global group of energy Royal/Dutch Shell: global group of energy

and petrochemical companies, operating in and petrochemical companies, operating in more than 140 countries and territories, more than 140 countries and territories,

employing more than 112,000 people employing more than 112,000 people

ECONOMIC GLOBALIZATIONECONOMIC GLOBALIZATIONOld or New?Old or New?

Economic Globalization in AFRICAEconomic Globalization in AFRICA

Little Industry and TechnologyLittle Industry and Technology Can economic globalization help reduce Can economic globalization help reduce povertypoverty??– ““Brain Drain” Brain Drain”

Debt (IMF loans) Africa countries can’t even pay Debt (IMF loans) Africa countries can’t even pay back interestback interest

300 million people live on less than $1/day300 million people live on less than $1/day 48% people in sub-Saharan Africa in extreme 48% people in sub-Saharan Africa in extreme

poverty (less than 750 calories/day)poverty (less than 750 calories/day) 2001 Index for Foreign Investment in Africa was “0” 2001 Index for Foreign Investment in Africa was “0” Gap between rich and poor increasingGap between rich and poor increasing

Does Globalization help all Does Globalization help all regions equally?regions equally?

Lets take a look at the two largest Lets take a look at the two largest regions with the largest world regions with the largest world populations. Lets see if we can populations. Lets see if we can

see the differencesee the difference

What’s the What’s the differencedifference

Why?Why?

TECHNOLOGICAL GLOBALIZATIONTECHNOLOGICAL GLOBALIZATION• ““World Wide Web” has exploded in last World Wide Web” has exploded in last

10 years10 years

• Computers can move money around Computers can move money around world = “finance capital”world = “finance capital”

Silicon Valley is 9th largest economy in Silicon Valley is 9th largest economy in world!world!

AfricaAfrica Number of telephones is decreasingNumber of telephones is decreasing More computers in Manhattan than all More computers in Manhattan than all

of Africa!of Africa! Post-colonial infrastructures don’t Post-colonial infrastructures don’t

support technologysupport technology

CULTURAL GLOBALIZATIONCULTURAL GLOBALIZATION

CULTURAL GLOBALIZATIONCULTURAL GLOBALIZATIONCultural ImperialismCultural Imperialism = =– Dominance of one culture over othersDominance of one culture over others

Hollywood movies, MacDonald’s, Hollywood movies, MacDonald’s, Disneyland, Starbucks Disneyland, Starbucks

Dominance of the English language and Dominance of the English language and invasion of other languagesinvasion of other languages

Do people all over the world have the same Do people all over the world have the same taste?taste?

POLITICAL GLOBALIZATIONPOLITICAL GLOBALIZATIONThe United Nations: The United Nations: –Global assoc. of govts. facilitating cooperation in Global assoc. of govts. facilitating cooperation in international law, security, economic development, and international law, security, economic development, and social equitysocial equity

•Whose interests does the UN represent?Whose interests does the UN represent?•The US and the UK were the only nations in support of The US and the UK were the only nations in support of going to war in Iraqgoing to war in Iraq

Can a global politics Can a global politics with social valueswith social values exist? exist? Alternative political gatherings: Alternative political gatherings: –Annual World Social Forums since 2001, The Piece Annual World Social Forums since 2001, The Piece Process @ Gav!Process @ Gav!

POLITICAL GLOBALIZATIONPOLITICAL GLOBALIZATIONSouth AfricaSouth Africa

•In 2001, US pharmaceutical corporations sued South In 2001, US pharmaceutical corporations sued South African companies for infringing on AIDS medication African companies for infringing on AIDS medication patent laws patent laws

•In 2003, President George W. Bush announced the In 2003, President George W. Bush announced the Emergency Plan in 2003 - the largest international health Emergency Plan in 2003 - the largest international health initiative in history by one nation to address a single initiative in history by one nation to address a single diseasedisease

•HIV/AIDS Situation in 2004HIV/AIDS Situation in 2004HIV Infected: 5.3 millionHIV Infected: 5.3 millionAIDS Deaths: 370,000AIDS Deaths: 370,000AIDS Orphans: 1.1 million AIDS Orphans: 1.1 million

MILITARY GLOBALIZATIONMILITARY GLOBALIZATION

Nuclear BombsNuclear Bombs F/A-22 RaptorF/A-22 Raptor

MILITARY GLOBALIZATIONMILITARY GLOBALIZATIONGlobal alliances become Global alliances become clear during war timeclear during war time–Ex: Today’s US alliance Ex: Today’s US alliance with Britain in wars with Britain in wars against Afghanistan and against Afghanistan and IraqIraq

What will happen with What will happen with North Korea and nuclear North Korea and nuclear weapons?weapons?

MILITARY GLOBALIZATIONMILITARY GLOBALIZATIONAfricaAfrica

““Trade in Arms” = US sold $227 million in Trade in Arms” = US sold $227 million in arms to AF in 1990sarms to AF in 1990sUS train and provide weapons for African US train and provide weapons for African armies on both sides of their civil wars (ex. armies on both sides of their civil wars (ex. Mobutu civil war in Zaire)Mobutu civil war in Zaire)US is the #1 exporter of weapons globallyUS is the #1 exporter of weapons globallyUS is the last on the list of exporters of non-US is the last on the list of exporters of non-military aid to the developing worldmilitary aid to the developing world

The Karnataka State Farmers' Movement (KRRS) burn genetically The Karnataka State Farmers' Movement (KRRS) burn genetically modified crops as part of the "Cremate Monsanto" campaign. Karnataka, modified crops as part of the "Cremate Monsanto" campaign. Karnataka,

India, 1998.India, 1998.

Zapatista women are vigilant in defending their Zapatista women are vigilant in defending their

community. Chiapas, Mexico.community. Chiapas, Mexico.

Palestinian women protest against the Israeli occupation and escalation of Palestinian women protest against the Israeli occupation and escalation of military aggression against civilians in the West Bank and Gaza. San military aggression against civilians in the West Bank and Gaza. San

Francisco, California, 2002.Francisco, California, 2002.

UCSC Lecturers Protest Unfair Labor UCSC Lecturers Protest Unfair Labor Practices, 2002Practices, 2002

Questions?Questions?