SUSTAINING ECONOMIC DEVELOPMENT IN A GLOBALISING WORLD

What is Globalization? Its driving forces and Impacts

WHAT IS GLOBALIZATION?

Warm-up Activity

Take a moment to find one item with you at the moment that is produced in Singapore?

What about anything that you have at home? Anything made in Singapore?

Was it difficult to find anything made and produced entirely from Singapore?

WHAT IS THE IMPACT OF GLOBALIZATION? Economic Impact

Divided into positive and negative effects

WHAT IS THE IMPACT OF GLOBALIZATION? Economic Impact

Improvement in the standard of living As countries trade are open to foreign

investment their citizens

ECONOMIC IMPACT OF GLOBALIZATION

POSITIVE EFFECTS NEGATIVE EFFECTS

Improvement in standard of living. Open to FDIs then more

rev > Rev = more govt.

spending

Increased competition among nations for: Investment and markets Talent (Global Talent) (see

pg. 55)

Widening income gap between rich and poor

Increasing income gap as some governments lose out in the ability to attract TNCs and FDIs.

These societies are therefore poorer than developed countries who have capitalised on the positive effects of globalisation

Even within rich countries – gap between rich and poor is growing (see pg. 56)

SOCIAL IMPACTS OF GLOBALIZATION

Increased awareness of foreign culture

Cultures of the world were distinct and separate.

Before WWII – only way to know the culture was to live with them – Ethnography

Globalization – Internet has made it possible for people to be aware of distinct cultures.

Now let’s try this simple test…can you name the items that appear in the pictures and tell us which societies they come from?

SOCIAL IMPACTS OF GLOBALIZATION

POSITIVE EFFECTS NEGATIVE EFFECTS

More awareness of foreign cultures

Globalization has caused the world to “shrink” – more awareness of other cultures, food and lifestyles.

Before Globalization – people needed to travel to foreign places to learn culture and taste food – now these are found in one’s own country.

Loss of culture

With the world becoming “flatter” (Friedman) – so now brand names are exported to other societies.

Starbucks & MacDonald’s - change in lifestyle that threatens local lifestyles

Singapore – “Binge drinking”, neighborhood shops vs. shopping malls etc.,

Spread of “Pop Culture” Local shows and music being

threatened by MTV and Internet

50 CENT .VS. TRADITIONAL DANCE

BUZZ BREAK

Take a minute to consider why would loss of culture be negative for societies?

ENVIRONMENTAL IMPACT OF GLOBALIZATION

POSITIVE EFFECTS NEGATIVE EFFECTS Environmental Management

(i.e. sustainable development):

Sustainable development ensures economies will continue to grow if they protect the environment.

Increased govt. spending and research into alternative energy sources. S’pore: nuclear energy?

Not all earth’s resources distributed equally across nations…Nations must agree to share resources otherwise potential source of conflicts

Environmental degradation Deforestation & related

problems Global warming (see pg.

62

SINGAPORE’S STRATEGIES

As with all other countries, Singapore must develop strategies that:

maximize opportunities and meet challenges of globalized world

SINGAPORE’S STRATEGIES

6 strategies… Diversifying the economy Nurturing Small and Medium Sized

Enterprises Venturing abroad Economic cooperation with other countries Managing Resources Managing the Environment

SINGAPORE’S STRATEGIES

Strat. 1: Diversify economy

S’pore exploring new areas of economic growth:

R & D in Bio-medical sciences

IT & Manufacturing hub

Regional hub for education and tourism.

Developing many areas of the economy reduces dependence on single industry or sector.

If one slows down the other sectors can register growth,

Strat 2: Nurturing SMEs

S’pore has many schemes to support the growth of SMEs.

Banks - loan schemes to SMEs

Association of SMEs (ASME)

training, seminars to improve their capacity and capabilities

Tax exemption for first $100,000 income for up to 3 years.

SINGAPORE’S STRATEGIES

Strat 3: Venturing Abroad

Singapore firms encouraged to set up business overseas.

The spread of investment across the world is to ensure that Singapore’s economic growth is maintained even if markets and investment opportunities in one particular region are weakened.

More S’poreans overseas – Problem: Are they rooted to Singapore? Would they feel they have a stake in Singapore?

Strat 4: Economic Cooperation with other countries

Signing more Free Trade Agreements (FTA)s with other countries. Benefits:

Singaporeans enjoy more choice in goods and services

Service standards will improve with increased competition

Companies will be able to sell their goods in more countries and increase their profits

Local companies will find it easier to venture abroad.

Cooperated in Special Economic Zones (SEZ)s

Riau SEZ

SINGAPORE’S STRATEGIES

Strat 5: Managing Resources…

Developing People

Promoting local entrepreneurship Promoting continuous learning

Attracting Foreign Talent Declining birth rate and new skills

needed for Knowledge based economy (KBE).

Draw foreign talent here to work and share expertise

Besides paper qualifications – must attract those with specialised skills (chefs, craftsmen and artisans)

Strat 6: Managing Environment

Managing limited land resources

e.g. Bukit Brown Cemetery vs. Road Infrastructure development.

Cooperation with regional and international organizations

Public education about environmental issues

LESSON RECAP

What are some of the driving forces of globalization?

What are the 6 strategies Singapore has adopted in meeting the challenges and maximising the opportunities of a globalised world?