attitude toward globalization

ATTITUDES TOWARD GLOBALIZATION

- Sagar Agrawal

WHAT IS GLOBALIZATION? "Globalization refers to a multidimensional

set of social processes that create, multiply, stretch, and intensify worldwide social interdependencies and exchanges while at the same time fostering in people a growing awareness of deepening connections between the local and the distant.”

DIFFERENT LEVELS OF GLOBALIZATION

Economical levelCultural levelPolitical levelEcological levelTechnical levelEducational level ...

Which way you choose to reach the top ?

GLOBALISATION TOO MUCH

OR TOO LITTLE !!!!

EDUCATION

QUALITY OF LIFE

WHY THERE IS DIFFERENCE IN LIFESTYLE OF RURAL AND URBAN??

Basic necessitiesNutrition problemTransportation MedicineNo local contactsHousing

CULTURE :

Why are we going

Crazy Globally ??

Drug Abuse

Increase in number of unmarried pregnant women

Burn Out Ratio of Employees

FOOD RETAILERS

Wal-Mart-US, Carrefour-France, Tesco-UK, Ahold-Holland

Reasons for globalization Cross-border barriers removed Saturation in domestic markets One company started overseas expansion, others

followed Benefit from economies of scale Strong position in domestic markets and efficient

operations

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GLOBALIZATION

Difficulties Differences in tastes and preferences Local preferences Labour costs Supply Chain Management Lack of computer-based infrastructure High holding costs

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ANTI GLOBALIZATION - RADICALS

Globalization is all the evil in today’s world and cares only about money

It divides the world into rich and poor (North and South of the world)

It is the cause of all the global problems

STICKY WICKET 1:Inequality and Chaos:

Increasing Global Inequalities

Vulnerability of Complex Systems

Global Justice and Productivity of Labor

STICKY WICKET 2: Environmental Disaster

The Biotech CenturyGlobal Warming

Global Impasse: the limits of the biosphere and the American model of development

ATTITUDES TOWARD GLOBALIZATION

2 major schools of thought:HYPERGLOBALIZERS

SCEPTICS

3 major attitudes:PRO-GLOBALISTSANTI-GLOBALISTS

ALTER-GLOBALISTS

HYPERGLOBALIZERSIn this 'runaway world'

nation states can no longer

effectively manage or regulate their own national economies

SCEPTICS

Globalization:

Based on the regionalization into 3 major blocks: Europe, Asia – Pacific, North America

Paul Hirst( Paul Hirst (1947-2003) was a British sociologist. He became Professor of Social Theory at Birkbeck, University of London.)

SCEPTICS

There is an intensification of international interdependence BUT the intensity of global interdependence is exaggerated

Globalization is a phenomenon connected to the richest countries.

SCEPTICS

There is no unified global economy The world is breaking up into several major

economic and political blocs Too much emphasis on footloose capital and

a new global capitalist order

3 SCHOOLS OF THOUGHT – SUMMARY

1. Hyperglobalizers one single global economy; end of state

2. Sceptics 3 major economical regional blocs; states less important

AN EXAMPLE :--

GLOBALIZATION American drives a car

made in Germany,steel from Korea, Tyres from Malaysia, fills gasoline from UK BP,oil pumped from a well in Africa by a French company,

transported to US in a ship owned by a Greek shipping company.

(contd)23

GLOBALIZATION

While driving, talks to a stock broker on Nokia cell designed in Finland, assembled in Texas using chips produced in Taiwan by an Indian engineer working in California

(she finally purchased shares of a German Telecom comp)

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GLOBALIZATION

She turns on radio made in Malaysia by a Japanese firm, hears a song composed and sung by by a group of English, which is recorded by a French music company.

Pulls out a coffee from a stall owned by Korean immigrant, beans coming from Brazil, chocolate from Peru and biscuits from Italy.

(contd)25

THE WORLD WE LIVE IN Globalization causing

Suffering of domestic industryJob losses, income inequalitiesEconomic crisis in some countriesEconomic slowdown in the USJapanese stock market fallReversal of reforms at times

(contd)

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GLOBALIZATION

Fundamental shift in the National economies

(self-contained entities, isolated,barriers of trade, distance, time zone differences, Govt regulation, culture, transportation, telecom, technology)

The process by which visible shift in the above is occurring is referred to as Globalization

(contd)27

GLOBAL COMMODITY

It is a world in which products are made from inputs that come from all over the world

Increased opportunities and threats Global markets

2 lakh small US business firms employing less than 100 had foreign sales

Boeing 777 has 1,32,500 major components made by 545 suppliers

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DIFFICULTY

GLOBAL MANAGER Ms Radha Basu

Graduate engineer in computer science, joined in Hewlett Packard in Germany followed by India and back in US

Manages teams of software engineers spread across 15 time zones

All teams do collaborative work logs on to over 1,00,000 mails a year, video

conferencing, voice mail messages to 1,000 people in her division every day.

(contd)

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GLOBAL MANAGER Language and communication gaps Eg: Once she told German engineers that they

should do something and discovered that they they did not.

(should means in Germany that he has the option of not doing)

Use of right words (MUST) to convey

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SOCIAL CHANGE

“Globalization in its current phase has been described as

an unprecedented compression of time and

space reflected in the tremendous intensification of

social, political, economic, and cultural interconnections and interdependencies on a

global scale.”

-Stegler, p. ix

One way to approach this: think about the world before globalization

• Distance mattered—space often measured in time

• Territorial boundaries more or less kept things in and out

• Society and culture had spatial referents

• Everything had its “place” (literally)

In a world of deterritorialization and supraterritoriality:

•Distance becomes almost irrelevant (the end of distance)

•Boundaries are increasingly permeable.

•Groups and cultures increasingly don’t have a territorial basis

•A new kind of non-physical “place” is emerging

A survey of some key processes of globalization

• Technological advances

• Expansion of international commerce (exports and imports)

• Rising importance of private capital flows (stock markets and multinational corporations)

• Increasing travel and migration (international tourism and domestic diversity)

• Increased communication and interaction between peoples (through all sorts of media)

some of the key public controversies over globalization:

What are they?

“Can globalization be harnessed so that all citizens and countries benefit and not just the lucky few?”

1. 1. Is globalization Westernization? Is it a threat to non-western societies?

2. What is the right question to ask about globalization and the poor?

3. What are the “legitimate” questions that “anti-globalization” protestors ask?

How to Judge Globalization (Normatively)

“Over the past decade globalization has been driven by technological advances…..But globalization has also been driven by policies and ideas…”

INTERPRETATIONS (1) Dominance of World Capitalistic Economic

system Erosion of local cultures through global culture Westernization of the world Ascendancy of capitalism Increasing homogeneity

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INTERPRETATIONS (2) Producing diversity & heterogeneity through

increased hybridization Strategy for increasing corporate profits &

power Lever to produce positive social goods like

environment action, democratization, humanization

It is modernity

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INTERPRETATIONS (3)

Replacement of the term “imperialism” (-ve, critical) with “modernization” (+ve, legitimizing)

Neocolonialism: continuing exploitation of much of the world by the few super powers

Entirely positive process of socioeconomic progress, technological innovation, more diverse products and services, cornucopia of information and growing cultural freedom, higher standard of living

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ONE SINGLE MEANING?

Thus globalization is a theoretical construct Open to various meanings and inflections It can be described positively, negatively or

multivalent to describe complex and multidimensional process in the economy, polity, culture, and everyday life

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CULTURE, STATE & CULTURE

Triumph of market forces and hegemony of capital

Expansion of the capitalist world into areas previously closed off to it (erstwhile Communist countries, many LDCs)

Decline of nation state and its power to regulate and control the flow of goods, people, information, and various cultural forms.

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GLOBAL CULTURE

Promoting life-styles, consumption, products, and identities

TNCs deploy advertising to penetrate local markets to sell global products to overcome local resistance

Private cable and satellite systems aggressively promoting a commercial culture throughout the world

Global homogenization and new local hybrid forms and identities

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WHAT HAS GLOBALIZATION CREATED? Dissemination of new technologies Time-space compression produced by new

media and communication technologies are helping to overcome previous barriers

New labour markets, production centres are getting created

Deindustrialization or “rustbelts” created elsewhere

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GLOBAL INSTITUTIONS Creation of the World Bank and the IMF GATT and NAFTA WTO As we look back 50 years, economic

growth has expanded five-fold, international trade roughly twelve times and FDI 2/3rds of the international trade

However, there has been unevenness in the above developments

Economic elites benefited and LDCs could not, and the poorer regions of LDCs became relatively poorer 47

TRADITIONAL FEATURES OF A NATION(PARTIAL LIST)

A single integrated economic system“Frictionless” transactions for the most

part within the systemRelatively fluid pool of labor limited to the

systemCommon laws governing systems of

exchanges A decision-making system An enforcement mechanism Protection of citizens and citizens’

rights

GLOBALIZATION--ACTUAL

Integrated economic system for (much of) the world International transactions becoming common

and more frictionless Labor pool: immigration and exporting of jobs Development of laws governing supra-national

exchanges

GLOBALIZATION--QUESTIONABLE

Decision-making system? Int’l organizations—e.g. UN U.S. [compare size of economy with size of

population] An enforcement mechanism? Protection of people and rights?

ANTI-GLOBALIZATION: IT’S NOT JUST FOR POOR PEOPLE ANYMORE Anti-Globalization as Ideological Movement Against realizing the promise of a Flat-World

that requires developing countries to slash public spending, revoke labor laws, rescind environmental protection (anti-trade) and let a thousand sweatshops flourish

People before profit, or simply put, “why aren’t bailouts for airlines going to the workers losing their jobs?

We believe in exposing the local realities of globalization

Have it our way: deep democracy and social justice

ANTI-GLOBALIZATION: IT’S NOT JUST FOR POOR PEOPLE ANYMORE Anti-Globalization as the Manifestation of Fear,

Distrust and National Security

The Dubai Port controversy: Should DP World, owned by the UA Emirates, be allowed to own several American port terminals? Or simply put, “how can an Arab firm be trusted to operate cargo terminals at American ports?”

Last fall, a Chinese firm was denied the opportunity to acquire UNOCAL, a second tier American oil company after Congress objected

Before these two incidents, the Committee on Foreign Investment in the US (CFIUS) had denied only one proposed foreign acquisition of a US company---the Chinese National Aero Technology Import and Export’s attempt to acquire a Seattle aircraft parts maker in 1990.

ANTI-GLOBALIZATION: IT’S NOT JUST FOR POOR PEOPLE ANYMORE Anti-Globalization as the Manifestation of

Fear, Distrust and National Security Europe is also experiencing similar incidents as governments

in France, Spain and Poland are blocking foreign investment even in seeming unimportant consumer industries

At the same time, the US is so dependent on foreign investment that we require $3 billion in foreign capital every working day to finance the huge gap between imports and exports

In terms of the jump in oil prices, the Arab members of the OPEC cartel have earned $1.3 trillion petrodollars that we need back in the US to support corporate bonds, equities and direct foreign investment in our economy or simply put” foreigners have a whole pile of US dollars----what do we expect them to do with them?”

IN DEFENSE OF GLOBALIZATION

Anti-Globalization Globalization’s Human Face:

Poverty Child Labor Women Wages and Labor Standards Environment

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FIGHTING THE SYSTEMAnti-globalization Protests

“The SecondSuper-Power”

Anti-WarProtest

London,2003

ICONS OF GLOBALIZATION

ANTIGLOBALIZATION MOVEMENTS SPREAD THROUGHOUT THE WORLD

WTO MEMBERS

WTO PROTESTS IN SEATTLE, 1999

MADRID94

The 50th anniversary of the IMF and the World Bank, which was celebrated in Madrid in October 1994, was the scene of a protest by an ad-hoc coalition of what would later be called anti-globalization movements. They tried to drown the bankers' parties in noise from outside and held other public forms of protest under the motto "50 Years is Enough". While Spanish King Juan Carlos was addressing the participants in a huge exhibition hall, two Greenpeace activists climbed to the top and showered the bankers with fake dollar bills carrying the slogan "No $s for Ozone Layer Destruction". A number of the demonstrators were sent to the notorious Carabanchel prison.

J18 PROTESTS, LONDON 1999One of the first international anti-globalization protests was organized in dozens of cities around the world on June 18, 1999, with those in London and Eugene, Oregon most often noted. The drive was called the Carnival Against Capitalism, or J18 for short. The protest in Eugene turned into a riot where local anarchists drove police out of a small park. One anarchist, Robert Thaxton, was arrested and convicted of throwing a rock at a police officer.

WHO ARE THESE PROTESTERS?

Members of the anti-globalization movement generally advocate anarchist, nationalist, socialist, social democratic or Eco-socialist alternatives to liberal economics, and seek to protect the world's population and ecosystem from what they believe to be the damaging effects of globalization.

Support for human rights NGOs is another cornerstone of the anti-globalization movement's platform.

WHO ARE THESE PROTESTERS?

They advocate for labor rights, environmentalism, feminism, freedom of migration, preservation of the cultures of indigenous peoples, biodiversity, cultural diversity, food safety, and ending or reforming capitalism. Many of the protesters are veterans of single-issue campaigns, including anti-logging activism, living wage, labor union organizing, and anti-sweatshop campaigns.

DOES BEING ANTI-GLOBALIZATION MEAN YOU’RE ANTI-GLOBAL?

In fact, they argue, the movement is actually self-consciously internationalist, organising globally and advocating for the cause of oppressed people around the world. One element that makes up the movement is the No Border network, which argues for unrestricted migration and the abolition of all national borders.

WHAT ARE THEY PROTESTING AGAINST?

Generally speaking, protesters believe that the global financial institutions and agreements undermine local decision-making methods. Many governments and free trade institutions are seen as acting for the good of transnational (or multinational) corporations

These corporations are seen as having privileges that most human persons do not have: moving freely across borders, extracting desired natural resources, and utilizing a diversity of human resources.

WHAT ARE THEY PROTESTING AGAINST? They are perceived to be able to move on

after doing permanent damage to the natural capital and biodiversity of a nation, in a manner impossible for that nation's citizens. Activists also claim that corporations impose a kind of "global monoculture".

Some of the movements' common goals are, therefore, an end to the legal status of so-called "corporate personhood" and the dissolution or dramatic reform of the World Bank, IMF, and WTO.The activists are especially opposed to what they view as "globalization abuse”, promoting globalisation without regard to ethical standards.

WHAT ARE PEOPLE COMPLAINING ABOUT? Disorganisation Addressing problems incorrectly: One argument

often made by the opponents of the anti-globalization movement (especially by The Economist), is that one of the major causes of poverty amongst third-world farmers are the trade barriers put up by rich nations and poor nations alike. The WTO is an organisation set up to work towards removing those trade barriers. Therefore, it is argued, people really concerned about the plight of the third world should actually be encouraging free trade, rather than attempting to fight it. People in the third world, they argue, will not take any job unless it’s better than the next best option they have. Thus if you deprive him of his best option, you have made his life worse. Further in this vein, it is argued that the protesters' opposition to free trade is sometimes aimed at protecting the interests of Western labor (whose wages and conditions are protected by trade barriers) rather than the interests of the developing world. This is sometime summed up as "keep the poor, poor".

WHAT ARE PEOPLE COMPLAINING ABOUT?

Addressing problems incorrectly: This contrasts with the stated goals of those in the movement, which are to improve the conditions of ordinary farmers and workers everywhere.Anti-globalization activists counter these claims by arguing that free trade policies create an environment for workers similar to the prisoner's dilemma, in which workers in different countries are tempted to "defect" or "betray" other workers by undercutting standards on wages and work conditions. This is because if you neighbor makes more money, this obviously makes you poorer. Therefore, the anti-globalization movement supports a strategy of cooperation for mutual benefit, where you cooperate by not improving your life while your neighbor does not improve his. This strategy is in line with the notion of Internationalism

Failure to propose solutions Motivations/Violence Lack of Evidence

MAKING GLOBALIZATION WORK BETTER

Appropriate Governance Coping with Downsides Accelerating the Achievements of Social

Agendas Managing Transitions: Optimal Not Maximal

Speed

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ALTERGLOBALISTS

Globalization is an inevitable process

Globalization needs a human, notmoney face..