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globalization is a chimera

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  • The fact there are winners and losers, and societies vary in how much they compensate the losers Continuing poverty: ¼ world’s population below $1 a day; around ½ below $2 a day (has declined since article, mainly because of China and SE Asia and to some degree India) Gap between rich and poor countries has widened. And inequality within most countries has risen with globalization. Environmental concerns and conflict over global governance Open borders and their effects (money laundering, terrorism, disease, drugs, sex trafficking)
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  • Globalization

    2. 2. WHAT IS GLOBALIZATION? <ul><li>&quot;Globalization refers to a multidimensional set of social processes that create, multiply, stretch, and intensify worldwide social interdependencies and exchanges while at the same time fostering in people a growing awareness of deepening connections between the local and the distant.” </li></ul>
    3. 3. DIFFERENT LEVELS OF GLOBALIZATION <ul><li>Economical level </li></ul><ul><li>Cultural level </li></ul><ul><li>Political level </li></ul><ul><li>Ecological level </li></ul><ul><li>Technical level </li></ul><ul><li>Educational level </li></ul><ul><li>... </li></ul>
    4. 4. Which way you choose to reach the top ?
    6. 6. EDUCATION
    7. 7. <ul><li>QUALITY OF LIFE </li></ul>
    8. 8. WHY THERE IS DIFFERENCE IN LIFESTYLE OF RURAL AND URBAN?? <ul><li>Basic necessities </li></ul><ul><li>Nutrition problem </li></ul><ul><li>Transportation </li></ul><ul><li>Medicine </li></ul><ul><li>No local contacts </li></ul><ul><li>Housing </li></ul>
    9. 9. CULTURE : <ul><li>Why </li></ul><ul><li>are we </li></ul><ul><li>going </li></ul><ul><li>Crazy Globally ?? </li></ul>
    10. 10. <ul><li>Drug Abuse </li></ul><ul><li>Increase in number of unmarried pregnant women </li></ul><ul><li>Burn Out Ratio of Employees </li></ul>
    11. 11. FOOD RETAILERS <ul><li>Wal-Mart-US, Carrefour-France, Tesco-UK, Ahold-Holland </li></ul><ul><li>Reasons for globalization </li></ul><ul><ul><li>Cross-border barriers removed </li></ul></ul><ul><ul><li>Saturation in domestic markets </li></ul></ul><ul><ul><li>One company started overseas expansion, others followed </li></ul></ul><ul><ul><li>Benefit from economies of scale </li></ul></ul><ul><ul><li>Strong position in domestic markets and efficient operations </li></ul></ul>
    12. 12. GLOBALIZATION <ul><li>Difficulties </li></ul><ul><ul><li>Differences in tastes and preferences </li></ul></ul><ul><ul><li>Local preferences </li></ul></ul><ul><ul><li>Labour costs </li></ul></ul><ul><ul><li>Supply Chain Management </li></ul></ul><ul><ul><li>Lack of computer-based infrastructure </li></ul></ul><ul><ul><li>High holding costs </li></ul></ul>
    13. 13. ANTI GLOBALIZATION - RADICALS <ul><li>Globalization is all the evil in today’s </li></ul><ul><li>world and cares only about money </li></ul><ul><li>It divides the world into rich and poor (North and South of the world) </li></ul><ul><li>It is the cause of all the global problems </li></ul>
    14. 14. STICKY WICKET 1: Inequality and Chaos: Increasing Global Inequalities Vulnerability of Complex Systems Global Justice and Productivity of Labor
    15. 15. STICKY WICKET 2: <ul><li>Environmental Disaster </li></ul><ul><li>The Biotech Century </li></ul><ul><li>Global Warming </li></ul><ul><li>Global Impasse: the limits of the biosphere and the American model of development </li></ul>
    16. 16. ATTITUDES TOWARD GLOBALIZATION <ul><li>2 major schools of thought : </li></ul><ul><li>H YPERGLOBALIZERS </li></ul><ul><li>S CEPTICS </li></ul><ul><li>3 major attitudes: </li></ul><ul><li>PRO-GLOBALISTS </li></ul><ul><li>ANTI-GLOBALISTS </li></ul><ul><li>ALTER-GLOBALISTS </li></ul>
    17. 17. HYPERGLOBALIZERS <ul><li>In this 'runaway world' </li></ul><ul><li>nation states </li></ul><ul><li>can no longer </li></ul><ul><li>effectively manage or regulate </li></ul><ul><li>their own national economies </li></ul>
    18. 18. SCEPTICS <ul><li>Globalization: </li></ul><ul><li>Based on the regionalization into 3 major blocks: Europe, Asia – Pacific, North America </li></ul>Paul Hirst ( Paul Hirst (1947-2003) was a British sociologist. He became Professor of Social Theory at Birkbeck, University of London.)
    19. 19. SCEPTICS <ul><li>There is an intensification of international interdependence </li></ul><ul><li>BUT </li></ul><ul><li>the intensity of global interdependence is exaggerated </li></ul><ul><li>Globalization is a phenomenon connected to the richest countries . </li></ul>
    20. 20. SCEPTICS <ul><li>There is no unified global economy </li></ul><ul><li>The world is breaking up into several major economic and political blocs </li></ul><ul><li>Too much emphasis on footloose capital and a new global capitalist order </li></ul>
    21. 21. 3 SCHOOLS OF THOUGHT – SUMMARY <ul><li>1. Hyperglobalizers  one single global economy; end of state </li></ul><ul><li>2. Sceptics  3 major economical regional blocs; states less important </li></ul>
    22. 22. AN EXAMPLE :--
    23. 23. GLOBALIZATION <ul><li>American drives a car </li></ul><ul><ul><ul><li>made in Germany, </li></ul></ul></ul><ul><ul><ul><li>steel from Korea, </li></ul></ul></ul><ul><ul><ul><li>Tyres from Malaysia, </li></ul></ul></ul><ul><ul><ul><li>fills gasoline from UK BP, </li></ul></ul></ul><ul><ul><ul><li>oil pumped from a well in Africa by a French company, </li></ul></ul></ul><ul><ul><ul><li>transported to US in a ship owned by a Greek shipping company . </li></ul></ul></ul><ul><ul><ul><ul><ul><li>(contd) </li></ul></ul></ul></ul></ul>
    24. 24. GLOBALIZATION <ul><ul><li>While driving, talks to a stock broker on Nokia cell designed in Finland, assembled in Texas using chips produced in Taiwan by an Indian engineer working in California </li></ul></ul><ul><ul><li>(she finally purchased shares of a German Telecom comp) </li></ul></ul>
    25. 25. GLOBALIZATION <ul><li>She turns on radio made in Malaysia by a Japanese firm, hears a song composed and sung by by a group of English, which is recorded by a French music company. </li></ul><ul><li>Pulls out a coffee from a stall owned by Korean immigrant, beans coming from Brazil, chocolate from Peru and biscuits from Italy. </li></ul><ul><li>(contd) </li></ul>
    26. 26. THE WORLD WE LIVE IN <ul><li>Globalization causing </li></ul><ul><ul><li>Suffering of domestic industry </li></ul></ul><ul><ul><li>Job losses, income inequalities </li></ul></ul><ul><ul><li>Economic crisis in some countries </li></ul></ul><ul><ul><li>Economic slowdown in the US </li></ul></ul><ul><ul><li>Japanese stock market fall </li></ul></ul><ul><ul><li>Reversal of reforms at times </li></ul></ul><ul><ul><ul><ul><ul><li>(contd) </li></ul></ul></ul></ul></ul>
    27. 27. GLOBALIZATION <ul><li>Fundamental shift in the National economies </li></ul><ul><li>(self-contained entities, isolated,barriers of trade, distance, time zone differences, Govt regulation, culture, transportation, telecom, technology) </li></ul><ul><li>The process by which visible shift in the above is occurring is referred to as Globalization </li></ul><ul><li>(contd) </li></ul>
    28. 28. GLOBAL COMMODITY <ul><li>It is a world in which products are made from inputs that come from all over the world </li></ul><ul><li>Increased opportunities and threats </li></ul><ul><li>Global markets </li></ul><ul><ul><li>2 lakh small US business firms employing less than 100 had foreign sales </li></ul></ul><ul><ul><li>Boeing 777 has 1,32,500 major components made by 545 suppliers </li></ul></ul>
    29. 29. DIFFICULTY
    30. 30. GLOBAL MANAGER <ul><li>Ms Radha Basu </li></ul><ul><ul><li>Graduate engineer in computer science, joined in Hewlett Packard in Germany followed by India and back in US </li></ul></ul><ul><ul><li>Manages teams of software engineers spread across 15 time zones </li></ul></ul><ul><ul><li>All teams do collaborative work </li></ul></ul><ul><ul><li>logs on to over 1,00,000 mails a year, video conferencing, voice mail messages to 1,000 people in her division every day. </li></ul></ul><ul><ul><li>(contd) </li></ul></ul>
    31. 31. GLOBAL MANAGER <ul><li>Language and communication gaps </li></ul><ul><li>Eg: Once she told German engineers that they should do something and discovered that they they did not. </li></ul><ul><li>( should means in Germany that he has the option of not doing) </li></ul><ul><li>Use of right words (MUST) to convey </li></ul>
    32. 32. SOCIAL CHANGE
    33. 33. “ Globalization in its current phase has been described as an unprecedented compression of time and space reflected in the tremendous intensification of social, political, economic, and cultural interconnections and interdependencies on a global scale.” -Stegler, p. ix
    34. 34. One way to approach this: think about the world before globalization <ul><li>Distance mattered—space often measured in time </li></ul><ul><li>Territorial boundaries more or less kept things in and out </li></ul><ul><li>Society and culture had spatial referents </li></ul><ul><li>Everything had its “place” (literally) </li></ul>
    35. 35. In a world of deterritorialization and supraterritoriality: <ul><li>Distance becomes almost irrelevant (the end of distance) </li></ul><ul><li>Boundaries are increasingly permeable. </li></ul><ul><li>Groups and cultures increasingly don’t have a territorial basis </li></ul><ul><li>A new kind of non-physical “place” is emerging </li></ul>
    36. 36. A survey of some key processes of globalization <ul><li>Technological advances </li></ul><ul><li>Expansion of international commerce (exports and imports) </li></ul><ul><li>Rising importance of private capital flows (stock markets and multinational corporations) </li></ul><ul><li>Increasing travel and migration (international tourism and domestic diversity) </li></ul><ul><li>Increased communication and interaction between peoples (through all sorts of media) </li></ul>
    37. 37. some of the key public controversies over globalization: What are they? “ Can globalization be harnessed so that all citizens and countries benefit and not just the lucky few?”
    38. 38. <ul><li>1. Is globalization Westernization? Is it a threat to non-western societies? </li></ul><ul><li>What is the right question to ask about globalization and the poor? </li></ul><ul><li>What are the “legitimate” questions that “anti-globalization” protestors ask? </li></ul>How to Judge Globalization (Normatively)
    39. 39. “ Over the past decade globalization has been driven by technological advances…..But globalization has also been driven by policies and ideas…”
    40. 40. INTERPRETATIONS (1) <ul><li>Dominance of World Capitalistic Economic system </li></ul><ul><li>Erosion of local cultures through global culture </li></ul><ul><li>Westernization of the world </li></ul><ul><li>Ascendancy of capitalism </li></ul><ul><li>Increasing homogeneity </li></ul>
    41. 41. INTERPRETATIONS (2) <ul><li>Producing diversity & heterogeneity through increased hybridization </li></ul><ul><li>Strategy for increasing corporate profits & power </li></ul><ul><li>Lever to produce positive social goods like environment action, democratization, humanization </li></ul><ul><li>It is modernity </li></ul>
    42. 42. INTERPRETATIONS (3) <ul><li>Replacement of the term “imperialism” (-ve, critical) with “modernization” (+ve, legitimizing) </li></ul><ul><li>Neocolonialism: continuing exploitation of much of the world by the few super powers </li></ul><ul><li>Entirely positive process of socioeconomic progress, technological innovation, more diverse products and services, cornucopia of information and growing cultural freedom, higher standard of living </li></ul>
    43. 43. ONE SINGLE MEANING? <ul><li>Thus globalization is a theoretical construct </li></ul><ul><li>Open to various meanings and inflections </li></ul><ul><li>It can be described positively, negatively or multivalent to describe complex and multidimensional process in the economy, polity, culture, and everyday life </li></ul>
    44. 44. CULTURE, STATE & CULTURE <ul><li>Triumph of market forces and hegemony of capital </li></ul><ul><li>Expansion of the capitalist world into areas previously closed off to it (erstwhile Communist countries, many LDCs) </li></ul><ul><li>Decline of nation state and its power to regulate and control the flow of goods, people, information, and various cultural forms. </li></ul>
    45. 45. GLOBAL CULTURE <ul><li>Promoting life-styles, consumption, products, and identities </li></ul><ul><li>TNCs deploy advertising to penetrate local markets to sell global products to overcome local resistance </li></ul><ul><li>Private cable and satellite systems aggressively promoting a commercial culture throughout the world </li></ul><ul><li>Global homogenization and new local hybrid forms and identities </li></ul>
    46. 46. WHAT HAS GLOBALIZATION CREATED? <ul><li>Dissemination of new technologies </li></ul><ul><li>Time-space compression produced by new media and communication technologies are helping to overcome previous barriers </li></ul><ul><li>New labour markets, production centres are getting created </li></ul><ul><li>Deindustrialization or “rustbelts” created elsewhere </li></ul>
    47. 47. GLOBAL INSTITUTIONS <ul><li>Creation of the World Bank and the IMF </li></ul><ul><li>GATT and NAFTA </li></ul><ul><li>WTO </li></ul><ul><li>As we look back 50 years, economic growth has expanded five-fold, international trade roughly twelve times and FDI 2/3rds of the international trade </li></ul><ul><li>However, there has been unevenness in the above developments </li></ul><ul><li>Economic elites benefited and LDCs could not, and the poorer regions of LDCs became relatively poorer </li></ul>
    48. 48. TRADITIONAL FEATURES OF A NATION (PARTIAL LIST) <ul><li>A single integrated economic system </li></ul><ul><ul><li>“ Frictionless” transactions for the most part within the system </li></ul></ul><ul><ul><li>Relatively fluid pool of labor limited to the system </li></ul></ul><ul><ul><li>Common laws governing systems of exchanges </li></ul></ul><ul><li>A decision-making system </li></ul><ul><li>An enforcement mechanism </li></ul><ul><li>Protection of citizens and citizens’ rights </li></ul>
    49. 49. GLOBALIZATION--ACTUAL <ul><li>Integrated economic system for (much of) the world </li></ul><ul><ul><li>International transactions becoming common and more frictionless </li></ul></ul><ul><ul><li>Labor pool: immigration and exporting of jobs </li></ul></ul><ul><ul><li>Development of laws governing supra-national exchanges </li></ul></ul>
    50. 50. GLOBALIZATION--QUESTIONABLE <ul><li>Decision-making system? </li></ul><ul><ul><li>Int’l organizations—e.g. UN </li></ul></ul><ul><ul><li>U.S. [compare size of economy with size of population] </li></ul></ul><ul><li>An enforcement mechanism? </li></ul><ul><li>Protection of people and rights? </li></ul>
    51. 51. ANTI-GLOBALIZATION: IT’S NOT JUST FOR POOR PEOPLE ANYMORE <ul><li>Anti-Globalization as Ideological Movement </li></ul><ul><li>Against realizing the promise of a Flat-World that requires developing countries to slash public spending, revoke labor laws, rescind environmental protection (anti-trade) and let a thousand sweatshops flourish </li></ul><ul><li>People before profit, or simply put, “why aren’t bailouts for airlines going to the workers losing their jobs? </li></ul><ul><li>We believe in exposing the local realities of globalization </li></ul><ul><li>Have it our way: deep democracy and social justice </li></ul>
    52. 52. ANTI-GLOBALIZATION: IT’S NOT JUST FOR POOR PEOPLE ANYMORE <ul><li>Anti-Globalization as the Manifestation of Fear, Distrust and National Security </li></ul><ul><ul><li>The Dubai Port controversy: Should DP World, owned by the UA Emirates, be allowed to own several American port terminals? Or simply put, “how can an Arab firm be trusted to operate cargo terminals at American ports?” </li></ul></ul><ul><ul><li>Last fall, a Chinese firm was denied the opportunity to acquire UNOCAL, a second tier American oil company after Congress objected </li></ul></ul><ul><ul><li>Before these two incidents, the Committee on Foreign Investment in the US (CFIUS) had denied only one proposed foreign acquisition of a US company---the Chinese National Aero Technology Import and Export’s attempt to acquire a Seattle aircraft parts maker in 1990. </li></ul></ul>
    53. 53. ANTI-GLOBALIZATION: IT’S NOT JUST FOR POOR PEOPLE ANYMORE <ul><li>Anti-Globalization as the Manifestation of Fear, Distrust and National Security </li></ul><ul><li>Europe is also experiencing similar incidents as governments in France, Spain and Poland are blocking foreign investment even in seeming unimportant consumer industries </li></ul><ul><li>At the same time, the US is so dependent on foreign investment that we require $3 billion in foreign capital every working day to finance the huge gap between imports and exports </li></ul><ul><li>In terms of the jump in oil prices, the Arab members of the OPEC cartel have earned $1.3 trillion petrodollars that we need back in the US to support corporate bonds, equities and direct foreign investment in our economy or simply put” foreigners have a whole pile of US dollars----what do we expect them to do with them?” </li></ul>
    54. 54. IN DEFENSE OF GLOBALIZATION <ul><li>Anti-Globalization </li></ul><ul><li>Globalization’s Human Face: </li></ul><ul><ul><li>Poverty </li></ul></ul><ul><ul><li>Child Labor </li></ul></ul><ul><ul><li>Women </li></ul></ul><ul><ul><li>Wages and Labor Standards </li></ul></ul><ul><ul><li>Environment </li></ul></ul>
    55. 55. FIGHTING THE SYSTEM Anti-globalization Protests
    56. 56. “ The Second Super- Power” Anti- War Protest London, 2003
    59. 59. WTO MEMBERS
    60. 60. WTO PROTESTS IN SEATTLE, 1999
    61. 61. MADRID94
    62. 62. <ul><li>The 50th anniversary of the IMF and the World Bank , which was celebrated in Madrid in October 1994, was the scene of a protest by an ad-hoc coalition of what would later be called anti-globalization movements. They tried to drown the bankers' parties in noise from outside and held other public forms of protest under the motto &quot;50 Years is Enough&quot;. While Spanish King Juan Carlos was addressing the participants in a huge exhibition hall, two Greenpeace activists climbed to the top and showered the bankers with fake dollar bills carrying the slogan &quot;No $s for Ozone Layer Destruction&quot;. A number of the demonstrators were sent to the notorious Carabanchel prison . </li></ul>
    63. 63. J18 PROTESTS, LONDON 1999 One of the first international anti-globalization protests was organized in dozens of cities around the world on June 18 , 1999 , with those in London and Eugene , Oregon most often noted. The drive was called the Carnival Against Capitalism , or J18 for short. The protest in Eugene turned into a riot where local anarchists drove police out of a small park. One anarchist, Robert Thaxton , was arrested and convicted of throwing a rock at a police officer.
    64. 64. WHO ARE THESE PROTESTERS? <ul><li>Members of the anti-globalization movement generally advocate anarchist , nationalist , socialist , social democratic or Eco-socialist alternatives to liberal economics , and seek to protect the world's population and ecosystem from what they believe to be the damaging effects of globalization. </li></ul><ul><li>Support for human rights NGOs is another cornerstone of the anti-globalization movement's platform. </li></ul>
    65. 65. WHO ARE THESE PROTESTERS? <ul><li>They advocate for labor rights , environmentalism , feminism , freedom of migration , preservation of the cultures of indigenous peoples , biodiversity , cultural diversity , food safety , and ending or reforming capitalism . Many of the protesters are veterans of single-issue campaigns , including anti- logging activism, living wage , labor union organizing, and anti- sweatshop campaigns. </li></ul>
    66. 66. DOES BEING ANTI-GLOBALIZATION MEAN YOU’RE ANTI-GLOBAL? <ul><li>In fact, they argue, the movement is actually self-consciously internationalist, organising globally and advocating for the cause of oppressed people around the world. One element that makes up the movement is the No Border network , which argues for unrestricted migration and the abolition of all national borders. </li></ul>
    67. 67. WHAT ARE THEY PROTESTING AGAINST? <ul><li>Generally speaking, protesters believe that the global financial institutions and agreements undermine local decision-making methods. Many governments and free trade institutions are seen as acting for the good of transnational (or multinational) corporations </li></ul><ul><li>These corporations are seen as having privileges that most human persons do not have: moving freely across borders, extracting desired natural resources , and utilizing a diversity of human resources . </li></ul>
    68. 68. WHAT ARE THEY PROTESTING AGAINST? <ul><li>They are perceived to be able to move on after doing permanent damage to the natural capital and biodiversity of a nation, in a manner impossible for that nation's citizens. Activists also claim that corporations impose a kind of &quot;global monoculture&quot;. </li></ul><ul><li>Some of the movements' common goals are, therefore, an end to the legal status of so-called &quot; corporate personhood &quot; and the dissolution or dramatic reform of the World Bank, IMF, and WTO.The activists are especially opposed to what they view as &quot;globalization abuse”, promoting globalisation without regard to ethical standards. </li></ul>
    69. 69. WHAT ARE PEOPLE COMPLAINING ABOUT? <ul><li>Disorganisation </li></ul><ul><li>Addressing problems incorrectly: One argument often made by the opponents of the anti-globalization movement (especially by The Economist ), is that one of the major causes of poverty amongst third-world farmers are the trade barriers put up by rich nations and poor nations alike. The WTO is an organisation set up to work towards removing those trade barriers. Therefore, it is argued, people really concerned about the plight of the third world should actually be encouraging free trade, rather than attempting to fight it. People in the third world, they argue, will not take any job unless it’s better than the next best option they have. Thus if you deprive him of his best option, you have made his life worse. Further in this vein, it is argued that the protesters' opposition to free trade is sometimes aimed at protecting the interests of Western labor (whose wages and conditions are protected by trade barriers) rather than the interests of the developing world. This is sometime summed up as &quot;keep the poor, poor&quot;. </li></ul>
    70. 70. WHAT ARE PEOPLE COMPLAINING ABOUT? <ul><li>Addressing problems incorrectly: This contrasts with the stated goals of those in the movement, which are to improve the conditions of ordinary farmers and workers everywhere .Anti-globalization activists counter these claims by arguing that free trade policies create an environment for workers similar to the prisoner's dilemma , in which workers in different countries are tempted to &quot;defect&quot; or &quot;betray&quot; other workers by undercutting standards on wages and work conditions. This is because if you neighbor makes more money, this obviously makes you poorer. Therefore, the anti-globalization movement supports a strategy of cooperation for mutual benefit, where you cooperate by not improving your life while your neighbor does not improve his. This strategy is in line with the notion of Internationalism </li></ul><ul><li>Failure to propose solutions </li></ul><ul><li>Motivations/Violence </li></ul><ul><li>Lack of Evidence </li></ul>
    71. 71. MAKING GLOBALIZATION WORK BETTER <ul><li>Appropriate Governance </li></ul><ul><li>Coping with Downsides </li></ul><ul><li>Accelerating the Achievements of Social Agendas </li></ul><ul><li>Managing Transitions: Optimal Not Maximal Speed </li></ul>
    72. 72. ALTERGLOBALISTS <ul><li>Globalization is an inevitable process </li></ul><ul><li>Globalization needs a human, not </li></ul><ul><li>money face.. </li></ul>