Pro globalist vs. Anti globalist


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Pro globalist vs. Anti globalist

  1. 1. 1 Table of Contents PRO­GLOBALIST VS. ANTI­GLOBALIST..................................................................................3 World Economy Globalization ........................................................................................................3 Positive Impact of Globalization .....................................................................................................4 Anti­globalist...................................................................................................................................5 Common concerns of Anti­Globalists ........................................................................................6 Anti­Globalist of Developed Countries ......................................................................................6 Anti­Globalist of Developing Countries.....................................................................................7 Conclusion.......................................................................................................................................9 Nature Thoughts & Symmetry
  2. 2. 2 Pro-globalist vs. Anti-globalistPro-globalist vs. Anti-globalist Kofi Annan, the seventh Secretary-General of the United Nations, addressed the force of globalization in his quote, “It has been said that arguing against globalization is like arguing against the laws of gravity. Globalization, the integration of the world technologically, economically and politically, is the most important development of our time. Global production and global markets offer business organizations extraordinary opportunities for growth and profits. Globalization is credited with stimulating innovation and technological progress. However, it is also blamed for increasing the gap between rich and poor, accelerating the destruction of the environment, and threatening human rights. The intensity of feelings in the globalization debate is astonishing. In the last three years, the anti-globalization movement has staged protests at meetings of the World Trade Organization, the European Union, the World Bank, the International Monetary Fund, the World Economic Forum, and the G-8. Globalization is a powerful real aspect of the new world system, and it represents one of the most influential forces in determining the future course of the planet. It has many dimensions: economic, political, social, cultural, environmental, security, and others. The focus here will be on the concept of "globalization" as applied to the world economy. This concept is one that has different interpretations to different people. Partly as a result of these different interpretations, there are very different reactions to "globalization," with some seeing it as a serious danger to the world economic system while others see it as advancing the world economy. In this essay, we will be covering both the aspects of globalization, potential benefits and costs stemming from globalization. World Economy GlobalizationWorld Economy Globalization The term "globalization" when used in an economic context, refers to the reduction and removal of barriers between national borders in order to facilitate the flow of goods, capital, services and labor (although considerable barriers remain to the flow of labor). Globalization is not a new phenomenon. It is an ongoing process by which regional economies, societies, and cultures have become integrated through a globe-spanning network of communication and execution. It began in the late nineteenth century but it spread slowed during the period from the start of first world war until the third quarter of the twentieth century. This slowdown can be attributed to the inward looking policies pursued by a number of countries in order to protect their respective industries. However, the pace of globalization picked up rapidly during the fourth quarter of the twentieth century. Nature Thoughts & Symmetry
  3. 3. 3 There are several sources of globalization over the last several decades: ➢ Technological advances that have significantly lowered the costs of transportation and communication and dramatically lowered the costs of data processing and information storage and retrieval. ➢ Trade liberalization and other forms of economic liberalization that have lead to reduced trade protection and to a more liberal world trading system. ➢ Changes in institutions, where organizations have wider reach, due, in part, to technological changes and to the more wide-ranging horizons of their managers, who have been empowered by advances in communications. ➢ Global agreement on ideology, with a convergence of beliefs in the value of a market economy and a free trade system. ➢ Cultural developments, with a move to a globalized and homogenized media, the arts, and popular culture and with the widespread use of the English language for global communication. Positive Impact of GlobalizationPositive Impact of Globalization Globalization has various aspects which affect the world in several different ways such as: Severalfold Rise In Trade: Emergence of worldwide production markets and broader access to a range of foreign products for consumers and companies. Particularly movement of material and goods between and within national boundaries. International trade in manufactured goods increased more than 100 times (from $95 billion to $12 trillion) in the 50 years since 1955. China's trade with Africa rose sevenfold during 2000-07 alone. Commercial Gains: Emergence of worldwide financial markets and better access to external financing for borrowers. By the early part of the 21st century more than $1.5 trillion in national currencies were traded daily to support the expanded levels of trade and investment. Emerging Economics: Realization of a global common market, based on the freedom of exchange of goods and capital. The interconnectedness of these markets, however, meant that an economic collapse in any one given country could not be contained. New employment opportunities: Pro-globalist argue that glottalization will create new employment opportunities in various parts of the world. For each office being setup, companies will be requiring hundreds of people to work in them at different levels. World Culture: Nature Thoughts & Symmetry
  4. 4. 4 Growth of cross-cultural contacts, the desire to increase one's standard of living and enjoy foreign products and ideas, adopt new technology and practices, and participate in a "world culture". A better individual access to cultural diversity which promotes peace and understanding between people. Greater international travel and tourism. Worldwide sporting events such as FIFA World cup and the Olympic Games. Rise in Competition and Better Technologies: Survival in new global business markets calls for improved productivity and increased competition. Due to the market becoming worldwide, companies in various industries have to upgrade their products and use innovate better technologies in order to face increased competition. Increase in Information Flow: Increase in information flows between geographically remote locations. This is a technological change with the advent of fiber optic communications, satellites, and increased availability of telephone and Internet. Most popular second language is English and it is being used as language for global communication. About 35% of the world mail, telexes, and cables are in English. About 50% of all Internet traffic uses English. World Governance: Some use "globalization" to mean the creation of a world government which regulates the relationships among governments and guarantees the rights 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 States’ own economy, the People's Republic of China has experienced 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. Development of the system of non-governmental organizations as main agents of global public policy, including humanitarian aid and developmental efforts. Anti-globalistAnti-globalist The anti-globalist zone is divided into two camps. Former belonging to the developed countries like USA and European nations. There argument is mainly based on the threat of job loss in these countries due to glottalization and increase in unemployment of skilled people. The second camp is from developed and developing countries who are considering globalization as a threat to there economy, cultural & social values and political independence. They believe that glottalization or rather neo-liberalization will give access to there country's economy to few MNCs who will use it for there own benefit ignoring the overall growth of the country. Nature Thoughts & Symmetry
  5. 5. 5 Common concerns of Anti-GlobalistsCommon concerns of Anti-Globalists Environmental Degradation: The removal of forests to make way for cattle ranching was the leading cause of deforestation in Brazilian Amazon from the mid 1960s. Recently, soybeans have become one of the most important contributors to deforestation in the Brazilian Amazon. The Worldwatch institute said the booming economies of China and India are planetary powers that are shaping the global biosphere. In 2007, China overtook the United States as the world's biggest producer of CO2. At present rates, tropical rain-forests in Indonesia would be logged out in 10 years, Papua New Guinea in 15 years. A major source of deforestation is the logging industry, driven spectacularly by China and Japan. Thriving economies such as China and India are quickly becoming large oil consumers. State of the World 2006 report said the two countries high economic growth hid a reality of severe pollution. The report states: The world's ecological capacity is simply insufficient to satisfy the ambitions of China, India, Japan, Europe and the United States as well as the aspirations of the rest of the world in a sustainable way. Easier spread of Diseases: Globalization, the flow of information, goods, capital and people across political and geographic boundaries, has also helped to spread some of the deadliest infectious diseases known to humans. Drug and Illicit Goods Trade: The Unite Nations Office on Drugs and Crime (UNODC) issued a report that the global drug trade generates more than $320 billion a year in revenues. The international trade of endangered species is second only to drug trafficking. Traditional Chinese medicine often incorporates ingredients from all parts of plants, the leaf, stem, flower, root, and also ingredients from animals and minerals. The use of parts of endangered species (such as seahorses, rhinoceros horns, saiga antelope horns, and tiger bones and claws) has created controversy and resulted in a black market of poachers who hunt restricted animals. In 2003, 29% of open sea fisheries were in a state of collapse. Anti-Globalist of Developed CountriesAnti-Globalist of Developed Countries Unemployment because of cheap labor: They are reasoning that availability of cheap labour in Asia,Africa and South America will result in companies shutting down there operations in the host country. Which will result in people being laid off and forced into unemployment. Negative effect of economic liberalization: Nature Thoughts & Symmetry
  6. 6. 6 A flood of consumer goods such as televisions, radios, bicycles, and textiles into the United States, Europe, and Japan has helped fuel the economic expansion of Asian tiger economies in recent decades. However, Chinese textile and clothing exports have recently encountered criticism from Europe, the United States and some African countries. In South Africa, some 300,000 textile workers have lost their jobs due to the influx of Chinese goods. The increasing U.S. trade deficit with China has cost 2.4 million American jobs between 2001 and 2008, according to a study by the Economic Policy Institute (EPI). A total of 3.2 million – one in six U.S. factory jobs – have disappeared between 2000 and 2007. Concentration of wealth in the hands of few dozen people: Anti-Globalist in these countries having protesting against the concentration of wealth in the hands of few dozen people. This unequal distribution of wealth is voiced by anti-globalist as frightening and dangerous for the society. Anti-Globalist of Developing CountriesAnti-Globalist of Developing Countries Cultural Export: Anti-globalist view the effect of globalization on culture as a rising concern. Along with globalization of economics and trade, culture is being imported and exported as well. The concern is that the stronger, bigger countries such as United States may overrun the other smaller countries' cultures leading to those customs and values being faded away. This process is also sometimes referred to as Americanization or McDonaldization. Poverty Export: Anti-globalist see the globalization as the result of foreign businesses investing in the country to take advantage of the lower wage rate. One example used by anti-globalization protesters is the use of sweatshops by manufacturers. According to Global Exchange these "Sweat Shops" are widely used by sports shoe manufacturers and mentions one company in particular – Nike. There are factories set up in the poor countries where employees agree to work for low wages. Then if labor laws alter in those countries and stricter rules govern the manufacturing process the factories are closed down and relocated to other nations with more conservative, laissez-fair economic policies. There are several agencies that have been set up worldwide specifically designed to focus on anti-sweatshop campaigns and education of such. International Inequality: The World Bank defines inequality as the disparity of income and standard of living among nations and their citizens. Nature Thoughts & Symmetry
  7. 7. 7 The income gap that exists between rich and poor countries has become substantial. Although great strides have been made in improving income from poor nations, many regions of the world have 25% or more of their population living off less than $1 per day (World Bank, 2005). Anti-globalist think that with the poor people having limited earning capacity, they also have limited access to the world’s wealth. In 2003, the richest fifth of the world's population received 85% of the total world income, while the poorest fifth received just 1.4% of the global income. The UN's Human Poverty Index is a measurement of poverty that factors in illiteracy, malnutrition among children, early death, poor health care, poor access to safe water, vulnerability to famine or flooding, lack of sanitation, exposure to disease, a diet poor in nutrients, and the absence of education (Infoplease, 2005). Inequality among rich and poor nations exists in terms of income and living conditions. Rich nations have tried to address this issue by distributing aid packages aimed at specific needs of each poor country. These aid packages ranged from literacy programs to food handouts and health programs. Poor nations need more than aid packages; they need economic conditions that can sustain growth. Brain Drain: An opportunity in richer countries drives talent away from poorer countries, leading to brain drains. Brain drain has cost the African continent over $4.1 billion in employment of 150,000 expatriate professionals annually. Indian students going abroad for their higher studies costs India a foreign exchange outflow of $10 billion annually. Food Security: The head of the International Food Policy Research Institute, stated in 2008 that the gradual change in diet among newly prosperous populations is the most important factor underpinning the rise in global food prices. From 1950 to 1984, as the Green Revolution transformed agriculture around the world, grain production increased by over 250%.The world population has grown by about 4 billion since the beginning of the Green Revolution and most believe that, without the Revolution, there would be greater famine and malnutrition than the UN presently documents (approximately 850 million people suffering from chronic malnutrition in 2005). It is becoming increasingly difficult to maintain food security in a world beset by a confluence of "peak" phenomena, namely peak oil, peak water, peak phosphorus, peak grain and peak fish. Growing populations, falling energy sources and food shortages will create the "perfect storm" by 2030, according to the UK government chief scientist. Drawback of linking of economies: The world today is so interconnected that the collapse of the sub-prime mortgage market in the US has led to a global financial crisis and recession on a scale not seen since the Great Depression. Nature Thoughts & Symmetry
  8. 8. 8 ConclusionConclusion The pro-globalization lobby argues that globalization brings about much increased opportunities for almost everyone, and increased competition is a good thing since it makes agents of production more efficient. The two most prominent pro-globalization organizations are the World Trade Organization & the World Economic Forum. The anti-globalization group argues that certain groups of people who are deprived in terms of resources are not currently capable of functioning within the increased competitive pressure that will be brought about by allowing their economic to be more connected to the rest of the world. This group includes Friends of the Earth, Greenpeace , Oxfam, G77, the U.S. textiles & European farm lobby, as well as the Australian and U.S. trade union movements. For most of the 20th century, rich nations gave aid to poor nations only to see it squandered. The people of the country must have the political will and capability to select leaders that choose a path of economic growth instead of cultural stagnation. Many of these countries are poor and have an unequal distribution within the country itself due to corrupt government leaders that view international aid as a source of personal income. Several of the poorer nations do not want to open up to international trade due to fear of losing their own identity, when in fact they are losing an opportunity for its people to move out of poverty. Many of the poorer nations have an agrarian economy that is labor intensive, without technology. They are changing over to an industrial economy that is not as labor intensive. During this transition, they will provide cheap labor markets for multinational corporations, and wages for these people will increase. Globalization is a double-edged sword. It increasingly affectively the way we live and work positively and negatively, while industrial countries enjoy the merits of globalization, developing countries have to learn how to compete, otherwise, will remain dependent on others. Nature Thoughts & Symmetry