Globalizing world

  • View

  • Download

Embed Size (px)


  • 1.A globalizing world

2. It is a small world, and globalization ismaking it smaller Since the end of the Cold War in the early 1990s, a new regime has slowly evolved and, in fact, continues to take shape. Globalization has remade the economy of virtually every nation, reshaped almost every industry and touched billions of lives, often in ambiguous ways; Globalization has come to mean a complete reordering of international priorities, strategies, and values as all states are drawn ever more tightly in the interdependent global economic, technological, communications cultural and ethical web; Economic globalization has accelerated the flows of communications, capital, technology, tourism, trade and immigration transforming the spatial organization of social relations and transactions, and generating increased levels of activity across communities around the entire world; Today, drugs, crime, sex, war, protest movements, terrorism, disease, people, ideas, images, news, information, entertainment, pollution, goods, and money all travel the globe. They are crossing national boundaries and connecting the world on an unprecedented scale and with previously unimagined speed.2 3. globalization has drawn countries closertogether The figures below represent the conventional projection of the Pacific in terms of distances (first figure) and in terms of time-space (second figure) based on relative time accessibility by scheduled airline flights in 1975: The figures are quite different with some places in the second picture brought close together while others forced apart or forced out of the map.3Source: A Globalizing World? Culture, Economics, Politics; Edited by David Held (2004). 4. it has stretched connections andrelationships across the world Increased connectivity has led many companies to spread their suppliers, facilities, operations, and costumer base across a range of regions and countries. The figure below illustrates Volkswagens international production system:4Source: The Geography of the World Economy; Knox, P. and Agnew, J. (1998). 5. it has made communications almostinstantaneous The shrinking of distance and the speed of movement that characterize the current globalization process find one of its most extreme forms in electronically based communities from all around the world interacting in real time and simultaneously; Communications networks stretching across the world have the potential to connect people, previously disconnected from what went on elsewhere, into a shared social space that is quite distinct from territorial space. Developments in information and communication technologies have changed relations between people and places and the ways we work: Today, communications networks have connected nearly a billion homes with the capacity to talk to each other within a few seconds; Every month, the New York Public Library reports 10 million information requests from across the globe on its main website, compared to 50,000 books dispensed to its local users (Darnton, 1999); Workers in India can connect to corporations and consumers in the U.S. with high speed satellite to perform a series of activities. The staffing of call centers has been highly publicized in the news. 5 6. Declining Costs of Everyday TransactionsIndustrial Economy Approximate Cost Per Transaction Banking $1.07eEconomy $.01 Travel Booking $10 $2 $6 Trading $150 7. it has created a world market dominatedby transnational corporations The world market is as old as trade itself,TransnationalCorporations have grown but in the last 25 years it has developed in importance so much further and faster than ever before. Thethat today 51 of the top total foreign assets of the top 100 100 economies are transnational corporations totaled $2,453 corporations, not billion in 2000. In the same year, countries General Motors was worth more than the (Albert, 2001) national economy of New Zealand; Transnational Corporations are a major Home Base of Top 100 TNCs(Countries shares force behind globalization as they reach in terms of size of foreign assets, 2000) beyond their original national borders to find investors, managers, workers, raw materials, as well as costumers; Their need to open up economies and to minimize controls on trade and the circulation of capital sometimes puts their interests in collision with those of governments both in their own countries and in their many host countries.7Source: The Penguin State of the World, Dan Smith with Ane Braein (2003). 8. it has also displaced some governmentfunctions onto the international arena As economic globalization extends the economy beyond the boundaries of the nation-state, and hence its sovereignty, transnational firms need to ensure that functions traditionally exercised by the state such as guaranteeing property rights and contracts be maintained; Globalization has been accompanied by the institution of new transnational legal and regulatory regimes and the creation of s series of organizations to administer those regimes; Among the most important ones in the private sector today are international commercial arbitration, and the variety of institutions which fulfill rating and advisory functions that have become essential for the operation of the global economy; The World Trade Organization (WTO), for example, has the authority to override local and national authority in terms of agreement violations, and hence can discipline sovereign states;8 9. At the global level there has been also an explosive growth in the number of intergovernmental organizations (IGOs) and nongovernmental organizations (NGOs). Currently, about 300 IGOs and 26,000 NGOs channel international contacts among governments, groups, and individuals; The proliferation of organizations has greatly contributed to the complexity of the international system. No longer are most international interactions bilateral but more and more states, even the most powerful ones, engage in multilateral diplomacy within the framework of IGOs such as the WTO, IMF, World Bank, the European Union, the European Central Bank, the European Court of Justice, among many others; Citizen groups play an increasing significant role in mobilizing, organizing, and exercising power across national boundaries. This explosion of citizen diplomacy constitutes a rudimentary transnational civil society; At the UN Earth Summit in Rio in 1992, for example, the formal representatives of government were outnumbered by the representatives of environmental, corporate and other interested parties. 9 10. International Organizations (2002) Greenland FinlandSwedenIceland CanadaNorway RussiaUnited KingdomPolandIrelandCzech Rep.NetherlandsUSALuxemburgSlovakiaKazakhstanMongolia Spain JapanPortugalTurkey Italy ChinaSouth KoreaMoroccoIsraelIraq IranMexicoAlgeriaLibyaSaudi Taiwan Cuba Egypt ArabiaIndia MauritaniaKuwait Hong KongMali Niger Guatemala Chad Sudan El SalvadorQatar VietnamNicaragua Thailand Honduras Ethiopia ThailandPhilippines UAE Costa Rica Venezuela Somalia Malaysia Panama NigeriaColombiaCongoKenya SingaporeTanzania Peru Angola IndonesiaNova GuineaBrazilMadagascar Namibia Australia ChileMozambique S. AfricaLeague of Arab States Morocco,Algeria, Mauritania, Libya, Egypt, ArgentinaSudan, Somalia, Saudi Arabia,Yemen, Oman, UAE, Qatar,New ZealandBahrain, Kuwait, Iraq, Jordan andPalestine AuthorityFree Trade Area of the AmericasCommonwealth of Independent States (CIS)Organization of the Petroleum Exporting Countries (OPEC)G8 Countries Canada, France,Germany, Italy, Japan, Russia, UK African Union Association of Southeast Asian Nations (ASEAN)Organization of the Petroleum Exporting Countries (OPEC)and U.S. (GDP of $21,136 million or European Union (EU) Other countries and territories10 Organization for Economic Cooperation and Development (OECD)67% of the worlds GDP)Source: The Penguin State of the World, Dan Smith with Ane Braein (2003). 11. A World of Protests (Sites of Major Anti-globalization Demonstrations Since 1999) Montreal April 2001GteborgJune 2000PragueSeptember 2000 SeattleDavosNovember 1999January 2000SeoulOctober 2000BangkokFebruary 2000.. . . Washington D.C. April 2000BolognaHonolulu June 2000May 2001 MelbournePorto AlegreNaples September 2000January 2001March 2001G-8 Member GenoaCountries July 200111Source: The Globalization Backlash, John Micklethwait and Adrian Wooldridge, Foreign Policy. 12. but globalization has excluded many frominternational economic flows Globalization create connections and disconnections associated with cross-national flows and networks. Those who are disconnected are effectively excluded from participation in the global economy creating what Castells (1998) calls the Fourth World made up of multiple pockets of social exclusion; Europe 18GreenlandTelephone lines per 100 Finlandpeople, 2001IcelandSweden 70 or more Canada Norway Russia Asia 50 - 69United3Kingdom ItalyAustria 30 - 49 IrelandSlovenia Netherlands 10 - 29USA Luxemburg Greece Kazakhstan Mongolia Spain 1-9 PortugalJapan Israel China under 1Mexico Morocco Iran Taiwan Algeria Libya Egypt Saudi no data CubaArabiaIndia Hong KongMauritaniaMaliNigerGuatemala Chad Sudan Thailand NicaraguaEl Salvador PersonalHonduras EthiopiaMalaysia Costa Ricacomputers per 100 PanamaNigeriaKenyaColombiaCongoSingapore Nova Guineapeople, 2001 estimates Tanzania Indonesia Americas Angola More than 75 cell 27PeruBrazilMadagascarNamibiaphone subscribers per MozambiqueAustralia100 people Oceania AfricaS. Africa 40 Chile 1 ArgentinaNew Zealand 12Source: The Penguin State of the World, Dan Smith with Ane Braein (2003). 13. and has concentrated wealth, poverty andinequality worldwideThe global wealth gap keeps growing. The average inhabitant of the worlds richest country is over100 times wealthier than the average inhabitant of the poorest country;However, many people in rich countries live in great poverty while some people in poor countrieslive in great wealth. Twen