GlobalizationGlobalizationOui et Non?Oui et Non?

First, Let’s Define ItFirst, Let’s Define It

““[I]t is the inexorable [I]t is the inexorable integrationintegration of markets, of markets, nation-states and technologies to a degree never nation-states and technologies to a degree never witnessed before – in a way that is enabling witnessed before – in a way that is enabling individuals, corporations and nation-states to individuals, corporations and nation-states to reach around the world farther, faster, deeper reach around the world farther, faster, deeper and cheaper than ever before, and in a way that and cheaper than ever before, and in a way that is enabling the world to reach INTO individuals, is enabling the world to reach INTO individuals, corporations and nation-states farther, faster, corporations and nation-states farther, faster, deeper and cheaper than ever before. This deeper and cheaper than ever before. This process of globalization is also producing a process of globalization is also producing a powerful backlash from those brutalized or left powerful backlash from those brutalized or left behind by the new system.” Thomas L. behind by the new system.” Thomas L. Friedman, Friedman, The Lexis and the Olive TreeThe Lexis and the Olive Tree, 1999, 1999

A Little BackgroundA Little Background World has grown small, flatter, World has grown small, flatter,

interdependentinterdependent

RomansRomans

ExplorersExplorers

ColonialismColonialism

2020thth Century Century

Political alliances and wars –Political alliances and wars –

WW I & WW IIWW I & WW II Post WW II – Rebuilding Japan and Post WW II – Rebuilding Japan and

Europe – Marshall PlanEurope – Marshall Plan Cold War – We Won! – Now What?Cold War – We Won! – Now What? EU expansion, other trade agreementsEU expansion, other trade agreements Improved technologyImproved technology

Necessary ElementsNecessary Elements

Reduction of trade barriers, tariffs, Reduction of trade barriers, tariffs, comparative advantage : ) comparative advantage : )

Transparency – Rule of law, corruption Transparency – Rule of law, corruption controlscontrols

Free press/mediaFree press/media Capital markets – stocks & bondsCapital markets – stocks & bonds Democratization – China?Democratization – China? Infrastructure Infrastructure

Fall Out - PositiveFall Out - Positive Capitalism’s inevitable cycle of innovation and Capitalism’s inevitable cycle of innovation and

creationcreation Micro benefits – entrepreneurship, markets, Micro benefits – entrepreneurship, markets,

products and specialization increase products and specialization increase Macro benefits – increased trade, opportunities, Macro benefits – increased trade, opportunities,

living standards, national income, GDP living standards, national income, GDP Foreign direct investment: outside corporate Foreign direct investment: outside corporate

investmentinvestment India, South KoreaIndia, South Korea Peace?Peace?

“ “[T]wo nations who traffic with each other [T]wo nations who traffic with each other become reciprocally dependent; for if one become reciprocally dependent; for if one has an interest in buying, the other has an has an interest in buying, the other has an interest in selling; thus their union is interest in selling; thus their union is founded on their mutual necessities.”founded on their mutual necessities.”

Montesquieu, Montesquieu, Spirit of the LawsSpirit of the Laws, 1748, 1748

According to Friedman, countries the trade According to Friedman, countries the trade together don’t make war on each other. together don’t make war on each other. Or, countries that have McDonald’s don’t Or, countries that have McDonald’s don’t make war on each other.make war on each other.

The Golden Arches Theory of The Golden Arches Theory of Conflict PreventionConflict Prevention

Fall Out - NegativeFall Out - Negative

Capitalism’s inevitable cycle of innovation, Capitalism’s inevitable cycle of innovation, creation and destructioncreation and destruction

Environmental – China, hello?Environmental – China, hello? Jobs/wages – lower living standardsJobs/wages – lower living standards Rich vs. poor: multinational corporations and Rich vs. poor: multinational corporations and

wealth concentrationwealth concentration Race to the bottomRace to the bottom Trade agreements that hurt more than helpTrade agreements that hurt more than help World-wide recession – not just local anymoreWorld-wide recession – not just local anymore

The Big QuestionThe Big Question

Are international organizations like Are international organizations like the UN, WTO, IMF, the World Court, the UN, WTO, IMF, the World Court, NAFTA, non-governmental NAFTA, non-governmental organizations equipped to police organizations equipped to police globalization’s discontents?globalization’s discontents?

Sovereignty infringement, neo- Sovereignty infringement, neo- colonialism (Shell in Nigeria)colonialism (Shell in Nigeria)

Backlash # 1 Backlash # 1 Jihad vs. McWorldJihad vs. McWorld

Benjamin Barber argues that globalization Benjamin Barber argues that globalization has not encouraged cooperationhas not encouraged cooperation

Lebanonization of the worldLebanonization of the world Threatens democracy – Middle East, ChinaThreatens democracy – Middle East, China Disintegration: internal conflict/violence Disintegration: internal conflict/violence

resulting from economic upheavalresulting from economic upheaval Decentralization along ethnic, religious or Decentralization along ethnic, religious or

linguistic lineslinguistic lines

Backlash # 2Backlash # 2Cultural HomogenizingCultural Homogenizing

Joseph Nye argues not a serious problemJoseph Nye argues not a serious problem Japan – it’s not happening Japan – it’s not happening They hate us, but not our blue jeansThey hate us, but not our blue jeans Not all trends adopted – capital Not all trends adopted – capital

punishmentpunishment Cultural diversity actually encouragedCultural diversity actually encouraged

Backlash # 3Backlash # 3IndividualsIndividuals

Nye claims locals benefit, not just big Nye claims locals benefit, not just big corporationscorporations

Persian Gulf – local governmentsPersian Gulf – local governments Across the pond – Wales and IrelandAcross the pond – Wales and Ireland This is “Bob.” How can I help you?This is “Bob.” How can I help you? 250,000 Indians are now answering the 250,000 Indians are now answering the

phonephone

Office space in central Bangalore, India is Office space in central Bangalore, India is dominated by multinational corporations…dominated by multinational corporations…

Photo and map courtesy of bbc.com

The World Is FlatThe World Is Flat

Or so says Thomas Friedman in 2005.Or so says Thomas Friedman in 2005.

Ten events have sped up globalization:Ten events have sped up globalization: Fall of Berlin Wall - 11/9/89Fall of Berlin Wall - 11/9/89 Netscape goes public – 8/9/95Netscape goes public – 8/9/95 Better software for workBetter software for work Open-sourcing – free software movementOpen-sourcing – free software movement China joins WTO – 12/11/2001China joins WTO – 12/11/2001 Russia joins WTO – 8/10/2012Russia joins WTO – 8/10/2012 Better supply chains – WalmartBetter supply chains – Walmart Better supply chains – UPSBetter supply chains – UPS Search engines take offSearch engines take off Digital, mobile, virtualDigital, mobile, virtual

What About Your Country?What About Your Country?

What positive impacts is globalization What positive impacts is globalization creating in your country?creating in your country?

What negative impacts is globalization What negative impacts is globalization creating in your country?creating in your country?

What is your country doing about What is your country doing about globalization and its discontents?globalization and its discontents?

Make a generalized list of globalization’s Make a generalized list of globalization’s costs and benefits.costs and benefits.

Globalization’s costsGlobalization’s costs Erosion of state sovereignty Pressure to conform to global norms Increased autonomy, succession movements Increased vulnerability to other state actors Need to be more aware of what’s going on outside your borders Crime, drugs, disease, terrorism spread across national borders

more easily Exploitation of labor and capital in poorer nations by mnc’s Increased pressure to compete globally Pollution, crime, prostitution, urbanization, societal upheaval Women still don’t have access to capital, mobility, power Cultural homogenization: “Americanization” of culture, norms,

consumption

Globalization’s benefitsGlobalization’s benefits Interdependence leads to increased need to cooperate Reduction in trade barriers, increased investment Rapid economic growth More consumer choice More access to information, technology, capital Development of global institutions to cope with globalization leads to

increased cooperation Spread of democratic norms and human rights Increased ability to spread political messages across borders Empowerment of non-state actors (ngo’s) New avenues for political access, redress of grievances Evolving sense of global citizenship, breaking down of barriers

between nations, groups, individuals