1) Globalization:
Increased interaction and interdependency of the world…
- economically (trade, raw materials, labor, markets)
- politically (more international interactions – cooperative and conflicting)
- socially / culturally (travel, education, entertainment, etc.)
2) Traditional industrial jobs: manufacturing
Labor in modern developed nations has transitioned to “knowledge workers”.
Greater focus on communications & computer-based “information industries”… requires more skills.
Traditional manufacturing jobs have moved to developing nations (“emerging nations”)… WHY?
- Plentiful cheap, semi-skilled & unskilled (less educated) labor force (OUTSOURCING!)- Closer proximity to raw materials
3) Significance of national boundaries?
Decreases with globalization:
- Increasing trade volume (larger ships!)
- More communication infrastructure links more nations together
- MULTINATIONAL (“transnational”) corporations
- Production process is more DECENTRALIZED: (Manufacturing, assembly, managing, & retailing are spread out)
- More international trading alliances
4) FREE TRADE:
Increased volume of trade via reduced barriers to trade (esp. the removal of tariffs).
(Opposite: PROTECTIONISM – when a nation attempts to “protect” its domestic industries against foreign competition by increasing tariffs on competing imports).
Organizations promoting free trade:
- World Trade Organization (WTO)
- International Monetary Fund (IMF)
- World Bank
- European Union (EU)
- North American Free Trade Agreement
(NAFTA)
4) (cont.)…
“G8 Nations”:
“Free” trade vs. “Fair” trade… considerations:
- Are workers in foreign countries fairly paid? Are their working conditions humane?
- Is the standard of living increasing in developing nations? Is the middle class growing?
- Is democracy getting stronger in developing nations? (Or, do foreign trade agreements help to support corrupt presidents and dictators?)
- Are basic needs affordable, or is privatization making basic needs too expensive?
5) BONUS: Toyota vs. Israel:
Economic power measured how?
Israel GDP: $207 billion
Toyota global revenue: $208 billion
(U.S. GDP: $15 TRILLION)
6) POSITIVE effects of globalization:+ More trade = more peace & cooperation+ Rising global standard of living+ Job creation+ Promotes investment in developing nations
7) NEGATIVE effects of globalization:- Unfair trade that disproportionately benefits developed nations (TEST: growing middle class & democratization)- Outsourcing of more jobs from developed nations- Developed nations get much richer, and faster, than developing nations- Erodes local cultures
8) ENVIRONMENTAL impacts of global industrialization:- Burning fossil fuels (coal, oil)… = pollution= CO2 global warming= acid rain= ozone layer depletion… effects on BASE OF FOOD CHAIN
= ripple effects on entire ecosystem- Land erosion, habitat destruction, mass
extinction of species- Earth ecosystem becomes UNBALANCED to
sustain life as we’re familiar with it.
9) SUSTAINABLE growth & development:- Development w/o depleting air, water, land resources (“green growth”)
- Growth with PRESERVATION of environment and CONSERVATION of resources
- BALANCING economic development VS. environmental concerns
Simply put, being able to “keep living like you’re living”, without running out of resources or destroying where & how you live.
10) WHO is responsible for sustainability?
- “Scientists & Economists”?
- Corporations?
- Government?
- Consumers?
- YOU?!
Is it what can “we” do…. or what can I do?
Action can only follow from self awareness.
OBSTACLES to sustainable growth:
- Focusing on short-term profits instead of a long-term sustainability (myopia, greed)
- Companies & investors who profit off of unsustainable production (i.e., fossil
fuel industries) will spend a lot to keep it that way (lobbying, advertising, campaign contributions)
- Abundance of cheap unsustainable resources (i.e. fossil fuels)
- Consumer ignorance, apathy, and preference for convenience
- Workers who depend on the income they receive from an unsustainable industry
PATHWAYS to sustainable growth:
Key considerations…
… WHO PAYS for initiatives?
… should changes be VOLUNTARY or MANDATORY?
Can we reasonably depend on individual consumers, workers, and owners to voluntarily change how they behave in a free market, before a full-blown crisis materializes?
PATHWAYS to sustainable growth:
Possible government actions:
Tax policy (tax unsustainable practices at a higher rate, provide tax breaks for sustainable practices)
Government funding of research & development (R & D)
Government loans, capital for sustainable entrepreneurship in private sector
More investment in education (esp. science, technology)
Limit or ban unsustainable business models?
Also:
- Limiting population growth (economic development, family planning, female literacy & equal rights)
- Consumer / voter awareness & action (“thoughtful buying”?!)