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8/14/2019 Globalization Consumption and Governance
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State of the World 2004
Linking Globalization,Consumption, and
GovernanceHilary French
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Linking Globalization,Consumption, and Governance
Overview:
1. The Spread of McWorld
2. Global Cooperation forSustainable Consumption
3. From Johannesburg to Cancun
and Beyond
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onrushing economic, technological, and
ecological forces demand integration and
uniformity and mesmerize peopleseverywhere with fast music, fast computers,
and fast food, one McWorld tied together by
communications, information, entertainment,
and commerce
The Spread of McWorld
- Benjamin Barber, 1995
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The consumer society of the west is rapidlyspreading to the rest of the world
Globalization over the 1990s was closely linkedwith a general economic boom that saw rapidgrowth in the movement of goods, services, andmoney across international borders
The growth of global trade and investment hascontributed to lower costs for many consumergoods
The Spread of McWorld
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Examples of Corporationswith a Global Presence
Coca-Cola - sells more than 300 drink brandsin over 200 countries; more than70% of the corporations incomeoriginates outside of the U.S.
(net revenues = $19.6 billion in2002)
McDonalds Corp.
- serves 46 million customers eachday; operates 30,000 restaurantsin 119 countries (total revenue =$15.4 billion in 2002)
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Examples of Corporationswith a Global Presence
Levi Strauss- sells clothing in more than 100countries; its trademark isregistered in 160 countries
(total sales = $4.1 billion in 2002)
Siemens- German company, represented in
190 countries; sells mobilephones, computers, medicalsupplies, lighting, andtransportation systems(net sales = $96.4 billion in 2002)
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World Export of Goods andServices, 1950-2002
Source: IMF
0
1
2
3
4
56
7
8
9
1950 1960 1970 1980 1990 2000 2010TrillionDollars(2002dollars)
Goods and Services
Goods
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Downside of GlobalConsumption Binge
Forests - value of world trade in forestproducts climbed fourfold between1961 and 2001, reaching $132billion
- meanwhile, the Earths overallforest cover has steadily declined
Fisheries - world value of fish exports nearlytripled between 1976 and 2001,
reaching $56 billion
- meanwhile, the health of worldsfisheries has deteriorated, with 75%
of worlds fish stocks fished at or
beyond their sustainable limits
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The ecological footprint accounting systemmeasures the amount of productive land aneconomy requires to produce the resources itneeds and to assimilate its wastes
Countries whose ecological footprints exceedtheir available ecological capacity often importgoods from countries enjoying surpluses, leading
to ecological trade deficits
Ecological Footprint
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Ecological Footprint per Personin Selected Nations, 1999
Hectares
United Arab Emirates
0 2 4 6 8 10 12
United States
Netherlands
Japan
China
Source: Redefining Progress
10.1
1.3
9.7
5.34.8
0.8
4.8
0.71.5
1.0
Available capacity
Ecological footprint
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Corporate strategies rely on visions ofrapidgrowth in the developing world, sparked byincreased consumerism in these nations
But if the entire world were to adopt theconsumption patterns of industrial nations,unbearable strain would be placed on thehealth of the Earths natural systems
Challenge in the developing world: to developstrategies for leapfrogging directly to a
sustainable economy
The Spread of McWorld
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Due to the global trade network, consumers
are often shielded from the profound effects of
their choices and consumption patterns on
people and the environment
The Spread of McWorld
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What happens to the growing mounds of
computers, mobile phones, televisions, and
other electronics that are discarded every day?
Example: Electronic Waste
In China, unprotected migrantworkers sift through the piles ofelectronic waste, burning plastics,cracking apart cathode ray tubes,
and pouring acid over circuit boardsto extract precious metals
This process releases carcinogenicsmoke in the air and severely
pollutes the water
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How are prices for bananas kept so low?
Example: Banana Industry
In Panama, bananas are grown inhuge, monoculture plantations thatare heavily dosed with pesticides
applied directly by unprotectedworkers or through aerial spraying
The chemicals pollute the watersupply, and have been linked withincreased cancer rates in localcommunities
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What are the benefits offair-trade coffee?
Example: Coffee
Fair trade guarantees coffee
growers a set price above worldmarket levels, to cover productioncosts and to assure a decent living,and a range of other social and
environmental benefitsMore stable markets allow farmersto grow shade-grown, organic coffeein areas once heavily dosed with
pesticides
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Global Cooperation forSustainable Consumption
International awareness of these problems
is growing, and commitments are being
made to transform unsustainable patterns of
consumption and production
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Highlights of the Earth Summitin Rio de Janeiro, 1992
Recognition of the disparity between theexcessive demands and unsustainable lifestyles ofthe rich and the inability of the poor to meet theirbasic needs
Action plan initiated to
- promote greater energy and resource efficiency
- minimize waste generation
- encourage environmentally sound purchasingdecisions
- shift toward pricing systems that incorporatehidden environmental costs
h d d f ll i h
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Several international organizations have beenactive in follow-up
- U.N. Commission on Sustainable Development
- U.N. Environment Programme (UNEP)
- Organization for Economic Cooperation and
Development (OECD)
In the decade following theEarth Summit
I h d d f ll i h
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Governments made progress in strengtheningseveral international treaties
- 2000 Cartagena Protocol on Biosafety to the
U.N. Convention on Biological Diversity
- 2000 Stockholm Convention on PersistentOrganic Pollutants
- 1997 Kyoto Protocol to the U.N.s FrameworkConvention on Climate Change
In the decade following theEarth Summit
I h d d f ll i h
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Forest Stewardship Council (FSC)
- independent body established to set standardsfor sustainable forest production through acooperative process
- 39 million hectares of commercial forest in 58countries have been certified
Marine Stewardship Council (MSC)
- modeled on the FSC
- 170 certified seafood products are offered in 14countries
In the decade following theEarth Summit
Gl b l C ti f
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However, the limited gains made since the
Earth Summit in 1992 have been largely
overwhelmed by the continued global growth
of the consumer society
Global Cooperation forSustainable Consumption
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Highlights of the 2002 World Summit onSustainable Development in Johannesburg
Some elements of the Plan of Implementation:
- involving governments from all countries,international organizations, the private sector,
and NGOs in bringing about the needed shifts- increasing investments in cleaner production and
eco-efficiency
- enhancing corporate environmental and social
responsibility- promoting the internalization of environmental
costs and environmentally sound procurementpolicies
F J h b t C
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From Johannesburg to Cancunand Beyond
Ministerial meeting of the World TradeOrganization (WTO) in Cancun, 2003
- Fundamental differences exist between
international trade rules and emergingenvironmental practices that can impedeefforts to promote more sustainable patterns ofconsumption and production
- Disputes over issues such as investment,government procurement, and agricultural tradesubsidies brought the talks to a halt
E l f Cl h B t
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Examples of Clashes BetweenTrade and Environmental Policies
Beef Hormones (European Union and U.S.)- The EU banned the import of beef
from the U.S. after growth-promotinghormones were found in the meat
- The U.S. imposed retaliatory traderestrictions against the EU
Tuna-Dolphin (U.S. and Mexico)
- The U.S. passed a law restrictingimports of tuna fish caught inways that harm dolphins
- The General Agreement on Tariffs andTrade panel concluded the U.S. could
not embargo Mexican tuna imports
E l f Cl h B t
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Examples of Clashes BetweenTrade and Environmental Policies
Genetically Modified Organisms (U.S. and EU)
- The EU banned the import of GMOs,viewing them as a health risk
- The U.S., Canada, and Argentinaasked the WTO to form a dispute
panel regarding the issue
Shrimp-Turtle (India and U.S.)- The U.S. banned imports of shrimp
harvested by methods harmful to seaturtles
- The WTO Appellate Body ruledagainst the U.S.
F J h b t C
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From Johannesburg to Cancunand Beyond
The way forward is complicated by the needto forge a consensus among a greatdiversity of interests from around the world
However, the terms of the debate are shiftingas a growing number of people support the
development of a global community basedon respect for people and nature
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About the Author
Hilary French is a Senior Researcherat the Worldwatch Institute and
Director of the InstitutesGlobalization and Governance Project
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More information onState of the World 2004
at www.worldwatch.org