Globalization and Global Problems

(Chapter 13) in “Social Problems in Canada”(Chapter 13) in “Social Problems in Canada”

Presented by: Hesam Presented by: Hesam Seyedi & GopalSeyedi & Gopal

Question:Question:

What is Globalization?What is Globalization?

Globalization Discussed:Globalization Discussed:

"The "The simple definition of globalization issimple definition of globalization is the the interweaving of markets, technology, information interweaving of markets, technology, information systems and telecommunications systems in a systems and telecommunications systems in a way that is shrinking the world from a size way that is shrinking the world from a size medium to a size small, and enabling each of us medium to a size small, and enabling each of us to reach around the world farther, faster, deeper, to reach around the world farther, faster, deeper, and cheaper than ever before, and enabling the and cheaper than ever before, and enabling the world to reach into each of us farther, faster, world to reach into each of us farther, faster, deeper, cheaper than ever before. That's what deeper, cheaper than ever before. That's what globalization is." - Thomas Friedmanglobalization is." - Thomas Friedman

The Extent of GlobalizationThe Extent of GlobalizationPrincess Diana DeathPrincess Diana Death

"An "An EnglishEnglish princess with an princess with an EgyptianEgyptian boyfriend crashes in a boyfriend crashes in a FrenchFrench tunnel, tunnel, driving a driving a GermanGerman car with a car with a DutchDutch engine, driven by a engine, driven by a BelgianBelgian who was who was drinking drinking ScottishScottish whiskey, followed closely by whiskey, followed closely byItalianItalian Paparazzi, on Paparazzi, on JapaneseJapanese motorcycles, treated by an motorcycles, treated by an AmericanAmerican doctor, doctor, using using BrazilianBrazilian medicines! medicines!And this is sent to you by a And this is sent to you by a CanadianCanadian, using Bill Gates' technology which he , using Bill Gates' technology which he got from the got from the JapaneseJapanese … …

And you are probably reading this on one of the IBM clones that use And you are probably reading this on one of the IBM clones that use PhilippinePhilippine-made chips, and -made chips, and KoreanKorean made monitors, assembled by made monitors, assembled by Bangladeshi workers in a Bangladeshi workers in a SingaporeSingapore plant, transported by lorries plant, transported by lorriesdriven by driven by IndiansIndians, transported by , transported by IndonesiansIndonesians and finally sold to you by a and finally sold to you by a ChineseChinese!! ……

And this Presentation is being presented by an And this Presentation is being presented by an IranianIranian and a and a BengaliBengali

That’s Globalization !!That’s Globalization !!

Globalization and Global ProblemsGlobalization and Global Problems

Globalization Means Different things to Different PeopleGlobalization Means Different things to Different People: : Globalization alarms people, reassures others, confuses most Globalization alarms people, reassures others, confuses most people people 

Globalization as Economic Prosperity, Market Fundamentalism, Globalization as Economic Prosperity, Market Fundamentalism, Globalization as an Connector Instrument, Globalization as Globalization as an Connector Instrument, Globalization as DemocracyDemocracy

Three Conundrums of GlobalizationThree Conundrums of Globalization:: 11) How does economic ) How does economic integration not lead to social disintegrationintegration not lead to social disintegration; 2) ; 2) How to maintain/ How to maintain/ create social cohesiveness on shared values on mutual commitment create social cohesiveness on shared values on mutual commitment and trust but also through the distribution of benefits; 3) How to and trust but also through the distribution of benefits; 3) How to balance an intrusive government intervention and unregulated balance an intrusive government intervention and unregulated

market forcesmarket forces

Globalization and Global Problems Globalization and Global Problems (cont’d)(cont’d)

Haves vs. Have-Nots: Haves vs. Have-Nots: The economic balkanization of The economic balkanization of the haves and have-nots are often the byproducts of fate. The the haves and have-nots are often the byproducts of fate. The "lucky" ones are born in the right time and right place, while the "lucky" ones are born in the right time and right place, while the unlucky ones (majority of the world) are born in the wrong place unlucky ones (majority of the world) are born in the wrong place and time. Often time, the policies that is supporting capitalism, and time. Often time, the policies that is supporting capitalism, and perpetuating the economic destitution and hopelessness of and perpetuating the economic destitution and hopelessness of the "have-nots" resort to violence to try to rip the capitalistic the "have-nots" resort to violence to try to rip the capitalistic system down.system down.

Integration, or Division? Integration, or Division? Globalization is producing lots of Globalization is producing lots of contradictions. Perhaps its biggest paradox is why does contradictions. Perhaps its biggest paradox is why does globalization - a process that promises to unite the world under globalization - a process that promises to unite the world under prosperity and success - fostering such a huge division? The prosperity and success - fostering such a huge division? The coming-togetherness of globalization is a hard logic to coming-togetherness of globalization is a hard logic to stomach, when there are many conflicts emerge, like the open stomach, when there are many conflicts emerge, like the open vs. tradition bound societies, a conflict between rule of law vs. tradition bound societies, a conflict between rule of law state and lawless territories, and also between modest cultures state and lawless territories, and also between modest cultures and excessive consumerism.and excessive consumerism.

Phenomenon of Globalized Problems: Phenomenon of Globalized Problems: – (1) Prospects for peace is undermined (1) Prospects for peace is undermined

because war emerges from conflicts involving because war emerges from conflicts involving genocide and intercommunal massacres; genocide and intercommunal massacres;

– 2) poverty and inequality emerge, a situation 2) poverty and inequality emerge, a situation where both rich and poor live side-by-side where both rich and poor live side-by-side nationally and internationally; nationally and internationally;

– 3) the problem of sustainable development 3) the problem of sustainable development and management of global environment; and management of global environment;

– 4) a society will have to control its own 4) a society will have to control its own destiny, and set-out an agenda of priorities, destiny, and set-out an agenda of priorities, which will have to factor-in globalizing forceswhich will have to factor-in globalizing forces

Tensions of Racism in “Globalized Tensions of Racism in “Globalized Cities”Cities”

Globalized Cities: Globalized Cities: Mass migration (for better economic Mass migration (for better economic and political opportunities) means that interaction and political opportunities) means that interaction between people of different ethnicities/ races and creeds between people of different ethnicities/ races and creeds will become commonplace. They will occupy the same will become commonplace. They will occupy the same place, and this will provoke extreme reactions (either an place, and this will provoke extreme reactions (either an accommodative one, or one of racism, hate and accommodative one, or one of racism, hate and violence) … violence) …

<<<<<<<<<Racism in Football Clip>>>>>>>>><<<<<<<<<Racism in Football Clip>>>>>>>>>

Question:Question:

Since Toronto is known as the “most Since Toronto is known as the “most ethnically diverse” city in the world, it’s ethnically diverse” city in the world, it’s successfully been able to alleviate racism successfully been able to alleviate racism and all its stereotypical offshoots?and all its stereotypical offshoots?

ThinkThink: Is there serious problem of racism : Is there serious problem of racism in Toronto? Would what goes on in in Toronto? Would what goes on in Europe, i.e. Arab-African riots in France/ Europe, i.e. Arab-African riots in France/ Racism in Football, happen here?Racism in Football, happen here?

Framing the ProblemFraming the Problem

Disarrayed WorldDisarrayed World: The global drive for growth is laying waste to a : The global drive for growth is laying waste to a planet that cannot possibly sustain a consumer-driven lifestyle planet that cannot possibly sustain a consumer-driven lifestyle without self-imploding.without self-imploding.

United Nations Human Development ReportUnited Nations Human Development Report: Statistics (i.e. : Statistics (i.e. nearly 1 billion are illiterate)nearly 1 billion are illiterate)

Global ApartheidGlobal Apartheid: This enormous gap between the rich and the : This enormous gap between the rich and the poor is moving towards a “global apartheid” where extremes of poor is moving towards a “global apartheid” where extremes of power and wealth are placed into geographically segregated zones power and wealth are placed into geographically segregated zones to create an “apartness”to create an “apartness”

Tribalism, xenophobia, and ethnic chauvinismTribalism, xenophobia, and ethnic chauvinism

Who is to blame for the social problems in the developing world? Who is to blame for the social problems in the developing world?

Globalization is Colonialism by another name?Globalization is Colonialism by another name?

Raging Debate about Globalization? Good or bad?Raging Debate about Globalization? Good or bad?

Framing the Problem (cont’d)Framing the Problem (cont’d)

Globalization Brings Forth Benefits (economic benefits for the Globalization Brings Forth Benefits (economic benefits for the rich) and Costs (human costs and consequences)rich) and Costs (human costs and consequences)

Cultural diversity, social security, ecological sensitive Cultural diversity, social security, ecological sensitive practices are becoming displaced by global governance that practices are becoming displaced by global governance that praises commercialism, consumerism and a culture of praises commercialism, consumerism and a culture of disenchantmentdisenchantment

The structural forces (i.e. IMF Liberalization Programmes) and The structural forces (i.e. IMF Liberalization Programmes) and government polices (i.e. policies that weaken the social safety government polices (i.e. policies that weaken the social safety net in favour of privatization) that perpetuate patterns of net in favour of privatization) that perpetuate patterns of dependency and underdevelopment must shoulder the blamedependency and underdevelopment must shoulder the blame

Westernization = Globalization? Ramifications for 3Westernization = Globalization? Ramifications for 3 rdrd-World -World CountriesCountries

Globalization: Problem or Solution?Globalization: Problem or Solution?

Globalization as Redefining Change: Globalization as Redefining Change: Just like the Industrial Just like the Industrial Revolution, globalization entails radical change. Pundits emphasize Revolution, globalization entails radical change. Pundits emphasize different features of globalization to stress the kind of changes that different features of globalization to stress the kind of changes that globalization brings. globalization brings.

Globalization as a SolutionGlobalization as a Solution: : Communication allows the world to be Communication allows the world to be a global villagea global village; free movement of capital/ investment allows for ; free movement of capital/ investment allows for well-needed funding of underdeveloped industries in well-needed funding of underdeveloped industries in underdeveloped countries; underdeveloped countries;

Globalization as a ProblemGlobalization as a Problem: ruin : ruin third world economy; international third world economy; international division of labour; increase the economic discrepancy between division of labour; increase the economic discrepancy between classes; monoculturalismclasses; monoculturalism

Reactions to GlobalizationReactions to Globalization

Globalization, Promoter of Strong ReactionGlobalization, Promoter of Strong Reaction: Protests, Terrorism: Protests, Terrorism

Concerns About GlobalizationConcerns About Globalization: Foremost in these fears are over : Foremost in these fears are over unbridled American power, might of big business, pace of economic unbridled American power, might of big business, pace of economic change, growing divide between rich and poor, failure of state to change, growing divide between rich and poor, failure of state to regulate market fundamentalism, regional inequalitiesregulate market fundamentalism, regional inequalities

Commoditization of EverythingCommoditization of Everything: Consequently, a system that is : Consequently, a system that is so hell-bent out on defining everything by the market will have a so hell-bent out on defining everything by the market will have a market value (everything is fitted into a supply and demand market value (everything is fitted into a supply and demand category)category)

Triumph of LiberalismTriumph of Liberalism: Globalization is packed with a liberal : Globalization is packed with a liberal ideology, which preaches individualism (as opposed to collectivism), ideology, which preaches individualism (as opposed to collectivism), “rationality” (as opposed to tradition) and progress (as opposed to “rationality” (as opposed to tradition) and progress (as opposed to “backward-oriented” societies)“backward-oriented” societies)

Reactions to Globalization (cont’d)Reactions to Globalization (cont’d)

Benefits of GlobalizationBenefits of Globalization: Benefits are fourfold (1) Expanded pie : Benefits are fourfold (1) Expanded pie vision so that everyone’s lot is improving; (2) information penetration vision so that everyone’s lot is improving; (2) information penetration which will undermine elite control while creating a real-time which will undermine elite control while creating a real-time information economy; (3) a universal solvent vision that washes information economy; (3) a universal solvent vision that washes away autocratic regimes through trade liberalization and foreign away autocratic regimes through trade liberalization and foreign investment; (4) “peace dividend” by weaving interdependencies investment; (4) “peace dividend” by weaving interdependencies between nation-states (i.e. in particular, democratic peace theory – between nation-states (i.e. in particular, democratic peace theory – that democracies don’t go to war with one another)that democracies don’t go to war with one another)Information AgeInformation Age: : Globalization has been also synonymous with the Globalization has been also synonymous with the information ageinformation age OutsourcingOutsourcing: Outsourcing occurs when companies find a nation, : Outsourcing occurs when companies find a nation, where they do business, that is cheap (in labour wages) and where they do business, that is cheap (in labour wages) and considered “business-friendly”considered “business-friendly” <<<<<<<<<<<<<<<<<OUTSOURCING CLIP>>>>>>>>>>>>>>>>><<<<<<<<<<<<<<<<<OUTSOURCING CLIP>>>>>>>>>>>>>>>>>

Multi-dimensional GlobalizationMulti-dimensional Globalization: Globalization is : Globalization is multidimensional, it is an economic phenomenon; political multidimensional, it is an economic phenomenon; political phenomenon; cultural; social disruption and communicativephenomenon; cultural; social disruption and communicativeGlobalization is a Bourgeoisie ProcessGlobalization is a Bourgeoisie Process: Globalization is defined : Globalization is defined as the geographic penetration of capitalist market relations into new as the geographic penetration of capitalist market relations into new sites of production in relentless quest of profits. sites of production in relentless quest of profits. Four Implications that FollowFour Implications that Follow: 1) Globalization constitutes an : 1) Globalization constitutes an international system of exchange with its own set of rules, logic, international system of exchange with its own set of rules, logic, structures and procedures (there is a significant increase in cross-structures and procedures (there is a significant increase in cross-national flows of trade, investment, and technology that reflects and national flows of trade, investment, and technology that reflects and reinforces a global division of labour; (2) Globalization goes beyond reinforces a global division of labour; (2) Globalization goes beyond a simple economic shift created by the cross-border exchanges of a simple economic shift created by the cross-border exchanges of high technology, instantaneous communication, investment, high technology, instantaneous communication, investment, reduced subsidies, and free trade; 3) the ascendancy of reduced subsidies, and free trade; 3) the ascendancy of globalization has compelled a rethinking of what society is for; 4) the globalization has compelled a rethinking of what society is for; 4) the interplay of world economic markets and globalization has interplay of world economic markets and globalization has undermined conventional thinking about national sovereigntyundermined conventional thinking about national sovereigntyCommon Theme of GlobalizationCommon Theme of Globalization: The common theme is that : The common theme is that globalization offers both the prospects of great benefits, but these globalization offers both the prospects of great benefits, but these benefits are often overshadowed by the human costs and benefits are often overshadowed by the human costs and consequences. Globalization is a double-edged sword.consequences. Globalization is a double-edged sword.

Transnational Corporations: Engines of Injustice Or Transnational Corporations: Engines of Injustice Or Catalyst for Growth?Catalyst for Growth?  

What is a transnational corporation?What is a transnational corporation? A corporation A corporation that is generally based in an affluent country and has that is generally based in an affluent country and has branches, networks, productions or affiliations placed branches, networks, productions or affiliations placed internationally. A corporation whose profit making and internationally. A corporation whose profit making and production tentacles has no limits, reaching anywhere in production tentacles has no limits, reaching anywhere in the world. 60,000 Transnational corporations drives the world. 60,000 Transnational corporations drives Globalization with more than half a million overseas Globalization with more than half a million overseas affiliates, accounting for about one-quarter of total global affiliates, accounting for about one-quarter of total global output output

By the late 1990’s By the late 1990’s 51 of the top 100 economies51 of the top 100 economies in the in the world were transnational corporations. world were transnational corporations.

51 Out of Top 100 Economies, Are 51 Out of Top 100 Economies, Are TNCsTNCs

23) 23) General Motors General Motors 176,558.00 ($ million)176,558.00 ($ million)

24) Denmark174,363.0025 24) Denmark174,363.0025 WalMart WalMart 166,809.0026 ($ million)166,809.0026 ($ million)

25) Exxon Mobil 25) Exxon Mobil 163,881.0027 ($ million)163,881.0027 ($ million)

26) Ford Motor 26) Ford Motor 162,558.0028 ($ million)162,558.0028 ($ million)

27) Daimler Chrysler27) Daimler Chrysler159,985.70 ($ million)159,985.70 ($ million)

http://www.corporations.org/system/top100.htmlhttp://www.corporations.org/system/top100.html

TNCs (cont’d)TNCs (cont’d)

How much money do they make?How much money do they make? Just the combined revenue of  Just the combined revenue of the 200 largest corporations is 7.1 trillion which is greater than that the 200 largest corporations is 7.1 trillion which is greater than that of the 182 nation-states that have responsibility for the livelihood of of the 182 nation-states that have responsibility for the livelihood of 80 % of humanity. 80 % of humanity. What is so bad about transnational corporations?What is so bad about transnational corporations? enrich  enrich themselves at the expense of the poor; destroy local industries; themselves at the expense of the poor; destroy local industries; control and perpetuate the exploitation of people; consumers control and perpetuate the exploitation of people; consumers perpetuating and expanding unjust globalized practices perpetuating and expanding unjust globalized practices Good Side of TNC: Good Side of TNC: Extremely efficient profit generating Extremely efficient profit generating “machines;” revitalize economies; can propel development; spill-“machines;” revitalize economies; can propel development; spill-over effect; technological transfersover effect; technological transfersHow have transnational corporations come to power?How have transnational corporations come to power? countries  countries are absorbed into a capitalist world system; consumers perpetuating are absorbed into a capitalist world system; consumers perpetuating and expanding unjust globalized practices etc.and expanding unjust globalized practices etc.

<<<<<<<<<<<“The Corporation” Clip>>>>>>>>>>>>><<<<<<<<<<<“The Corporation” Clip>>>>>>>>>>>>>

Questions:Questions:

How much blame can we place on ourselves for the expansion of How much blame can we place on ourselves for the expansion of transnational corporations in its unjust globalized practices? transnational corporations in its unjust globalized practices? (Keeping in mind that we are the consumers of these tainted (Keeping in mind that we are the consumers of these tainted goods and services who these corporations profit from)goods and services who these corporations profit from)