Globalisation

ShiftShift happens: happens: Globalisation videoGlobalisation video

Karl Fisch: “Shift Happens” (link)Karl Fisch: “Shift Happens” (link)

Karl Fisch Karl Fisch high school administrator at school in This was later generalised and improved by Scott Mcleod a professor at Univ. of Minnesota.

How did It makes you feel?How did It makes you feel? Would it have affected you differently if Would it have affected you differently if

there was no music?there was no music? Which fact affected you most and why?Which fact affected you most and why?

What is What is Globalisation?Globalisation?

Many definitionsMany definitions the the interdependenceinterdependence and and interconnectioninterconnection of the of the

modern world” modern world” White paper on international development White paper on international development 1995 1995

“ “ a process in which a process in which geographic distancegeographic distance becomes a factor of becomes a factor of diminishing importancediminishing importance in in the establishment and maintenance of the establishment and maintenance of cross cross border economic, political and socio-cultural border economic, political and socio-cultural relations”relations” (Lubbers, R)(Lubbers, R)

The coming together of the world thanks to The coming together of the world thanks to technology and trade. The Circulation not only technology and trade. The Circulation not only of goods and services but also of of goods and services but also of idea ,information and people idea ,information and people

Quotes from business and Quotes from business and governmentgovernment

""Globalisation is irreversible and irresistible."Globalisation is irreversible and irresistible."Tony Blair (1999)Tony Blair (1999)

"Globalisation is not a policy choice, it is a fact.""Globalisation is not a policy choice, it is a fact."Bill Clinton (1999)Bill Clinton (1999)

""Globalisation, which centralises power, Globalisation, which centralises power, destroys livelihoods and creates displacement destroys livelihoods and creates displacement and environmental destruction, also sows the and environmental destruction, also sows the seeds of communal politics and religious seeds of communal politics and religious fundamentalism."fundamentalism."Vandana Shiva, Indian Environmentalist (1999)Vandana Shiva, Indian Environmentalist (1999) 2 2

Globalisation

economic social cultural technological

What drives What drives globalisation?globalisation?

Increase of information.Increase of information. Better communicationsBetter communications Ease of travel Ease of travel Increase of knowledge sharingIncrease of knowledge sharing: :

Internet.Internet. Opening of the markets:Opening of the markets: Free trade Free trade

agreements, World trade organisation. agreements, World trade organisation. Reduction of tariffs on importsReduction of tariffs on imports Attraction of foreign investmentAttraction of foreign investment

Technology and Technology and globalisation globalisation

The Internet and The Internet and globalisationglobalisation

Internet

research

social networks

generate business

raise awareness of issues

raise cultural

awareness

issues with availability to all e.g.

poor

Internet use worldwideInternet use worldwide

Internet penetration (Where over 50% of pop use internet)Internet penetration (Where over 50% of pop use internet)

FacebookFacebook Reduces global boundariesReduces global boundaries Speak to people around the world Speak to people around the world Globalisation of social communicationGlobalisation of social communication

Facts about Facebook usageFacts about Facebook usage More than 250 million active users More than 250 million active users More than 120 million users log on to More than 120 million users log on to

Facebook at least once each day Facebook at least once each day The fastest growing demographic is those 35 The fastest growing demographic is those 35

years old and older years old and older More than 50 translations available on the More than 50 translations available on the

site, with more than 40 in development site, with more than 40 in development About 70% of Facebook users are outside the About 70% of Facebook users are outside the

United StatesUnited States

History of globalisationHistory of globalisation

Ancient tradeAncient trade 2000Bc Ancient Greek traded around 2000Bc Ancient Greek traded around

MediterraneanMediterranean The silk route trade though out Asia.The silk route trade though out Asia.

First multinational First multinational companycompany

1600. 1600. Dutch East Dutch East Indian company Indian company Had own private Had own private

armyarmy Owned substantial Owned substantial

territoryterritory Monopoly on spice Monopoly on spice

trade in Europetrade in Europe First company to First company to

issue stockissue stock

Industrial revolutionIndustrial revolution

Rise in use of coal powerRise in use of coal power Increase in technology e.g. electric Increase in technology e.g. electric

motormotor Expansion of railwaysExpansion of railways Expansion in world trade and Expansion in world trade and

investment, halted by WW1.investment, halted by WW1. End of WW2. Next big expansion in trade End of WW2. Next big expansion in trade Development of trans national companiesDevelopment of trans national companies

Growth of the USAGrowth of the USA

Early 20Early 20thth century world richest economy century world richest economy Birth of consumerismBirth of consumerism 1891 Roeburk Sears pioneered mail order1891 Roeburk Sears pioneered mail order 1913 Henry ford uses production line 1913 Henry ford uses production line

manufacturing in US; safer and better manufacturing in US; safer and better results.results.

Rise as a superpower after 2Rise as a superpower after 2ndnd world war world war Provide economic aid to EuropeProvide economic aid to Europe

Technological Technological developmentdevelopment

Development of air travelDevelopment of air travel Development of communications. Development of communications.

Ease of communicating Ease of communicating internationallyinternationally

Bretton woods 1944Bretton woods 1944 1944 UN conference 1944 UN conference 45 governments Bretton woods USA45 governments Bretton woods USAInternational Monetary FundInternational Monetary Fund Created to ensure the stability of the Created to ensure the stability of the

international monetary and financial international monetary and financial systemsystem

185 countries pay into the fund.185 countries pay into the fund.Money used to;Money used to;

Prevent crisis Prevent crisis Foster growthFoster growth Alleviate povertyAlleviate poverty

World bankWorld bank

Conceived at Bretton woodsConceived at Bretton woods Made of 3 bodiesMade of 3 bodies Post war loans help re build EuropePost war loans help re build Europe Set up to fund projects which further Set up to fund projects which further

economic development of member economic development of member nationsnations

2000 Aim to free the world of poverty2000 Aim to free the world of poverty Funded by member nationsFunded by member nations

World Trade World Trade OrganisationOrganisation

1955 WTO created1955 WTO created Goal to ensure the free flow of tradeGoal to ensure the free flow of trade Guard against the negative social Guard against the negative social

and economic side effectsand economic side effects

G8G8 1975 leaders of 6 nations:1975 leaders of 6 nations:

USAUSA UKUK JapanJapan FranceFrance ItalyItaly GermanyGermany

Meet in Paris to discuss economic issuesMeet in Paris to discuss economic issues 1977 Canada and Russia join1977 Canada and Russia join Rolling presidency country who holds Rolling presidency country who holds

presidency set issuespresidency set issues

EUEU

Created to Created to promote economic and promote economic and social progression of member statessocial progression of member states..

Establishment of single market Establishment of single market Allows freedom of movement of Allows freedom of movement of

people, goods, services and capital people, goods, services and capital within boundaries.within boundaries.

Allows the countries to exert more Allows the countries to exert more influence globally then they would on influence globally then they would on ownown

TradeTrade

Global tradeGlobal trade Countries have trade controlled by rulesCountries have trade controlled by rules Rules made by WTORules made by WTO All members have equal sayAll members have equal say However not all countries can afford to However not all countries can afford to

send representativessend representatives UN states poor countries lose 500 billon a UN states poor countries lose 500 billon a

year to unfair trade rules (Christian aid)year to unfair trade rules (Christian aid) Rules enforced by trade embargos on Rules enforced by trade embargos on

countries who don’t comply.countries who don’t comply. Doesn’t apply to trans nationalsDoesn’t apply to trans nationals

Free trade agreementsFree trade agreements

North American Free Trade North American Free Trade Agreement 1994Agreement 1994

No tariff on imported good between No tariff on imported good between Mexico and USA and CanadaMexico and USA and Canada

Not always good for poor e.g. US Not always good for poor e.g. US maize cheaper to produce and sold in maize cheaper to produce and sold in Mexico with out imports at lower Mexico with out imports at lower price then Mexican maize.price then Mexican maize.

www.cafod.org.uk.www.cafod.org.uk.

Fair tradeFair trade

www.fairtrade.org.ukwww.fairtrade.org.uk www.eti.org.ukwww.eti.org.uk

Effects of globalisationEffects of globalisation

effects of globalisation

technology

travel

cultural

social

law

environmental

financial

economic

industriallanguage

Industrial Industrial Emergence of worldwide production markets Emergence of worldwide production markets Larger product rangeLarger product range Multi country productionMulti country production FinancialFinancial Worldwide financial markets Worldwide financial markets Growth of over seas investmentGrowth of over seas investment

EconomicEconomic Existence of global marketExistence of global market Fuelled by freedom of exchange of goods and capital. Fuelled by freedom of exchange of goods and capital. Countries interdependent on one another so a problem Countries interdependent on one another so a problem

in one country affect manyin one country affect many

Informational Informational Increase in access to internet even on remote Increase in access to internet even on remote

areasareas

Legal/Ethical Legal/Ethical Cases now cross boarder.Cases now cross boarder. International laws. E.g. human rightsInternational laws. E.g. human rights

LanguageLanguage Increasing spread of English as a dominateIncreasing spread of English as a dominatelanguagelanguage About 35% of the world's mail, telexes, and About 35% of the world's mail, telexes, and

cables are in English. cables are in English. Approximately 40% of the world's radio Approximately 40% of the world's radio

programs are in English. programs are in English. About 50% of all Internet traffic uses EnglishAbout 50% of all Internet traffic uses English

CompetitionCompetition Increased competition form global market Increased competition form global market

lead to an increase in skills and innovation in lead to an increase in skills and innovation in order to compete. order to compete.

EcologicalEcological Global climate issues. Attempts to solve on Global climate issues. Attempts to solve on

global level e.g. G8 , Kyotoglobal level e.g. G8 , Kyoto Increase in pollution due abuse by trans Increase in pollution due abuse by trans

nationalnational Increase in pressure on country to use natural Increase in pressure on country to use natural

resources e.g. Brazil clearing Amazon for resources e.g. Brazil clearing Amazon for farming farming

CulturalCultural Internet and other media. Cultures mixInternet and other media. Cultures mix Loss of cultural identity Loss of cultural identity Loss languageLoss language Mix of foodMix of food World culture emerging. World culture emerging.

TravelTravel Easier access around worldEasier access around world Impact of tourism Impact of tourism Loss of boundariesLoss of boundaries WHO estimates that up to 500,000 people are on WHO estimates that up to 500,000 people are on

planes at any time.planes at any time. More immigration and migration to easy of More immigration and migration to easy of

transport transport Easy of trading and importing goods from aboardEasy of trading and importing goods from aboard] ] Technical Technical Internet Internet Social networkingSocial networking Information sharing. Online forums and debatesInformation sharing. Online forums and debates Global communication e.g. web can, web Global communication e.g. web can, web

conferencingconferencing Global data acquisition and positioningGlobal data acquisition and positioning

Negative effect of Negative effect of globalisationglobalisation

Rich poor divide growingRich poor divide growing 1.3 billon survive on les then a dollar a 1.3 billon survive on les then a dollar a

day (friend of the earth)day (friend of the earth) Exploitation of resources encouraged in Exploitation of resources encouraged in

poor countries who need material to trade poor countries who need material to trade Countries want foreign investment. Will Countries want foreign investment. Will

sacrifice environmental and human sacrifice environmental and human policies to get it e.g. poor wages, less policies to get it e.g. poor wages, less safetysafety

Pro globalisationPro globalisation

Journalist and author Philippe Legrain Journalist and author Philippe Legrain talks to the BBC's Allan Little about talks to the BBC's Allan Little about global poverty and global poverty and antianti--globalisationglobalisation

http://video.google.co.uk/videosearch?http://video.google.co.uk/videosearch?hl=en&q=globalization&um=1&ie=Uhl=en&q=globalization&um=1&ie=UTF-TF-8&sa=N&tab=wv#q=globalization+a8&sa=N&tab=wv#q=globalization+anti&hl=en&emb=0 defence of nti&hl=en&emb=0 defence of globalisation.globalisation.

Barriers to globalisationBarriers to globalisation

Rich guard traditional industries .e.g. farmingRich guard traditional industries .e.g. farming Protect countries farms by imposing high Protect countries farms by imposing high

imports on products from aboard.imports on products from aboard. France and grape industry.France and grape industry. Japan imposes large tariffs on foreign rice.Japan imposes large tariffs on foreign rice.Protectionist measures Import quotaImport quota restrict total volume or value of restrict total volume or value of

goods importedgoods imported Documentation overloadDocumentation overload: Ensure lots of red : Ensure lots of red

tapetape

Anti globalizationAnti globalization Ref 4 ref Ref 4 ref

55

Naomi Klein. No logo video on the effect of trans nationals globally

http://video.google.co.uk/videosearch?q=naoimi+kelin&hl=en&emb=0&aq=f#hl=en&emb=0&q=naomi+klein+globalization&start=0

Video on anti globalisation

http://video.google.co.uk/videosearch?q=naoimi+kelin&hl=en&emb=0&aq=f#hl=en&emb=0&q=naomi+klein+globalization&start=0

Global democracyGlobal democracy

Rich national exercise most powerRich national exercise most power Not necessarily country with most Not necessarily country with most

peoplepeople Is it fair Britain has more say then Is it fair Britain has more say then

IndiaIndia China has 22 x power of UKChina has 22 x power of UK

United nations development United nations development programprogram

www.undp.orgwww.undp.org Supports poverty reduction in Supports poverty reduction in

BangladeshBangladesh Imitative in narayanganyi 2007Imitative in narayanganyi 2007 Development left in hand of local Development left in hand of local

peoplepeople Choose which projects money spent onChoose which projects money spent on Web link to video on BangladeshWeb link to video on Bangladesh

The World BankThe World Bank

World bankWorld bank

Conceived at Bretton woodsConceived at Bretton woods Made of 3 bodiesMade of 3 bodies Post war loans help re build EuropePost war loans help re build Europe Set up to fund projects which further Set up to fund projects which further

economic development of member economic development of member nationsnations

2000 Aim to free the world of poverty2000 Aim to free the world of poverty Funded by member nationsFunded by member nations

www.worldbank.orgwww.worldbank.org Vital source of finical and technical Vital source of finical and technical

assistance to developing countriesassistance to developing countries 2 development institutions2 development institutions Owned by 186 membersOwned by 186 members

World bank

International Bank for the Reconstruction

and Development(IRBD)

International Development Association

(IDA)

International bank for International bank for reconstruction and reconstruction and

developmentdevelopment Middle income countriesMiddle income countries credit worthy companies poor credit worthy companies poor

companiescompanies

International development International development associationassociation

Loans to the poorest countriesLoans to the poorest countries

Trans nationalsTrans nationals

Trans nationalsTrans nationals Un defines Un defines as association that possess the as association that possess the

means of control of production and services means of control of production and services outside the country in which it was outside the country in which it was establishedestablished

Uses country of origin as a baseUses country of origin as a base Moves investment quickly if countries Moves investment quickly if countries

economic circumstances changeeconomic circumstances change 40,000 trans national world 40,000 trans national world

wide(www.waronwant.org)wide(www.waronwant.org) 10 biggest TNC have income bugger then 10 biggest TNC have income bugger then

the worlds 100 poorest countries.the worlds 100 poorest countries. Ford motors annual turnover bigger then Ford motors annual turnover bigger then

GDP south AfricaGDP south Africa

CEO is legally obliged to act in best CEO is legally obliged to act in best interest of share holdersinterest of share holders

www.coporatewatch.or.ukwww.coporatewatch.or.uk

GlossaryGlossaryFree tradeFree trade Governments treat local and foreign products the sameGovernments treat local and foreign products the sameEthical tradeEthical trade Products sourced from companies which treat local people and environment fairly World trade organisation Liberalise world trade through national agreement Controls global trade. 186 nationsLiberalisation Reducing the government involvement in a countries economy . Based on the

idea that private business run things more efficiently. Involve deregulation and privatisation.

Structural adjustment Liberalisation of economy . Set of policy changes required for loan from world bank Intended to make countries more economically efficientIMF international monetary fund 1944 Maintain stable international trading systemWorld bank Help for development Loans for structural adjustment

Reference websitesReference websites

http://www.globalisationguide.org/01http://www.globalisationguide.org/01.html.html 1 1

http://www.leedsdec.org.uk/positivelhttp://www.leedsdec.org.uk/positively_global_globalisation.htmy_global_globalisation.htm 2 2

http://media.ft.com/cms/bab8b306-http://media.ft.com/cms/bab8b306-04cc-11dd-a2f0-000077b07658.jpg 404cc-11dd-a2f0-000077b07658.jpg 4