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GLOBALIZATION AND GOVERNANCE

Learning Objectives:

3)Describe globalization and its impacts and

challenges on governance

4)Identify governance strategies tomanage/respond to forces of globalization

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We believe that the

central challenge we facetoday is to ensure that

globalization becomes apositive force for all theworld's people.

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Globalization.

is an umbrella term for a complex series

of economic, social, technological,cultural and political changes seen as

increasing interdependence, integration

and interaction among people and

companies in disparate locations.

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As a term 'globalization' hasbeen used as early as 1944

but economists first beganapplying it around 1981

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Theodore Levitt is usually

credited with its coining

through the article he wrote in

1983 for the Harvard BusinessReview entitled "Globalization

of markets".

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(International Monetary Fund)

Globalization stresses the growing

economic interdependence of

countries worldwide throughincreasing volume and variety of

cross-border transactions in goods

and services, free internationalcapital flows, and more rapid and

widespread diffusion of technology.

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A process in which business decisions,

production processes, and markets

gradually exhibits more international

characteristics and less national

ones.

It implies a wide range of

underlying structural reforms (e.g.,

business organization, the public-private interface, and altered

consumption patterns.

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Globalization is tied to many

salient features of modernity.

Driven by capitalism, it carries

forward the alliance of modern

science, technology and markets

in shaping society.

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Another definition:

Globalization is the erosion of

the barriers of time and space

that constrain human activityacross the earth and the

increasing social awareness ofthe these changes.

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Globalization involves an increasing

diffusion and penetration of global

connections into social life, about

which we are becoming more andmore self-aware in the every day

of life.

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POWERFUL ACTORS

International Monetary Fund (IMF)World Bank (WB)

World Economic Forum (WEF)World Trade Organization (WTO)

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3 Major Perspectives on Globalization

Globalizations Advocates: the

neo-liberal-cornucopian

consensus

Reform-minded skepticism

Global justice

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industrialglobalization (alias trans-nationalization) - rise

and expansion of multinational enterprises

financialglobalization - emergence of worldwide

financial markets and better access to external financing

for corporate, national and sub-national borrowers

politicalglobalization - spread of political sphere of

interests to the regions and countries outside the

neighborhood of political (state and non-state) actors

informationalglobalization - increase in information

flows between geographically remote locations

culturalglobalization - growth of cross-cultural contacts

ASPECTS OF GLOBALIZATION

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4 Major Changes associated with

Globalization

Rapid spread of information

technology

Internationalization of capitalIncreased pace of changeDesign of rules, standards and

norms

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A DEBATE:

PRO-GLOBALISTS VS.ANTI-GLOBALISTS

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POSITIVES:

Strong and organized voice of civilsocietyDesire for good governance

Public expectations and corporateresponsibilityConvergence of thinking about human

rights, rights to development andsustainable development

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NEGATIVES:

Widening gap between rich and poor

(countries as well as people)Power concentrationChallenged national sovereigntyUndermined authority of governments

and of intergovernmental organizations

Triggered protest movements forlegitimacy and accountability

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Discussions:

What then are the challenges of

globalization to governance?

How can governance respond to

these challenges?