does globalization contribute to sustainable prosperity for all people? prosperity: “good...
TRANSCRIPT
Does globalization contribute to sustainable prosperity for all people?
RELATED ISSUE 3
Prosperity: “good fortune” or living a good, satisfying life
Sustainable: can continue or be maintained in the future
Economic Globalization
CHAPTER 11
In the early days and a simpler agricultural society, production led to consumption, which led to surplus and growth. This system created a dependence on private property to feed the family and produce an income.
Now, we live in a world of machines and salaries. No longer can we solely rely on our own piece of property for sustenance. We must move with the times, or get knocked down.
If you take a bus today, part of your fare will pay for the driver’s wages.
Another part will go toward the upkeep of the bus. Still another will go
toward taxes that the bus company pays to the government. Taxes are used
to provide services such as public education to your community. Paying bus
fare is an example of the role you play in the local economy. You also play a
role in the global economy. Whenever you buy something made outside
Canada, your purchase ensures that more of this item will be produced by
someone in some part of the world.
LOCAL VS GLOBAL ECONOMY
Figure 11-1 Activists protesting the sale of
lumber from rain forests. How might people who
live in these forests feel when foreign companies
cut down all the trees? How might the owners of
Home Depot feel about harvesting this inexpensive
source of lumber? How might environmentalists
feel about the fact that the world’s rain forests
are decreasing at an alarming rate? How do these
questions help you to consider why there are
different understandings of economic globalization?
NOT FAVORABLE ________________FAVORABLE
Definition: The process of economies becoming more and more connected.
FOUNDATIONS OF ECONOMIC GLOBALIZATIO
• Bretton Woods agreement- 1944
• Creation of the World Bank- 1944
• Development of the International Monetary Fund- 1944
• End of the Cold War- 1989
• Technology and communication
ECONOMIC GLOBALIZATION
• Representatives from 44 allied countries met.
• Discussed how to rebuild economies destroyed by WWII
• Established a system of rules and institutions:
World Bank
International Monetary Fund (IMF)
General Agreement on Tariffs and Trade (GATT)
BRETTON WOODS AGREEMENT
• A financial institution that provides loans to member countries in financial difficulty
• Provided Billions in loans to aid western Europe after WWII
WORLD BANK
http://www.cbc.ca/strombo/show-politics/canada-to-fight-newborn-deaths.html
Still provides loans to members in financial difficulty:
- Long term loans
- Countries must meet certain economic and political conditions:
a. Reduction of government debt
b. Reduction of corruption
c. Promotion of western free market policies
WORLD BANK TODAY
• Was created to work with the World Bank to bring stability to international monetary affairs and to help expand world trade.
• It is in charge of long-term financial aid for countries in need.
• The IMF also monitors exchange rates.
• Both the IMF and the World Bank are United Nations Agencies.
INTERNATIONAL MONETARY FUND (IMF)
Even though the IMF and World Bank provide aid to less developed countries, this is not their main function.
They are not charitable organizations.
They charge interest on their loans and expect the loans to be paid back in full. As well, in order to qualify for loans, the World Bank requires that a country adopt free market policies like those in Canada or the United States.
READ PAGE 184
Complete the fourth page of your handout!
Who controls the IMF and World Bank???
And other DEVELOPED countries.
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Ended in 1989
World was divided between communism (Russia) and
capitalism (USA) What about Hockey?????
Was mainly an economic struggle
As the cold war ended, eastern Europe opened to western
economic globalization
COLD WAR
Technology, has made borders seem unnecessary—
Television
Computers
Internet
Cell phones
Satellites
TECHNOLOGY AND COMMUNICATION
Definition: The process of economies becoming more and more connected.
FOUNDATIONS OF ECONOMIC GLOBALIZATIO
• Bretton Woods agreement- 1944
• Creation of the World Bank- 1944
• Development of the International Monetary Fund- 1944
• End of the Cold War- 1989
• Technology and communication
REVIEW
Trade Liberalization
Process of reducing barriers to trade
Free Trade
Trade between countries with relatively few restrictions
Trading bloc
A group of countries working together to provide better trading
terms
Tariff
A tax on imported goods or services meant to reduce
competition with domestic goods and services
Sustainable Development
Development that meets the needs of the present without compromising the ability of
future generations to meet their own needs
FREE TRADE
BARRIERS TO TRADE
1989
Canada and the United States sign the Free Trade Agreement
(FTA)
1994
Mexico enters and the FTA becomes the North American
Free Trade Agreement (NAFTA)
Read Figure 11-10
FREE TRADE
International organizations
ECONOMIC GLOBALIZATION
Has roots in the GATT
GATT was transformed into the WTO on January 1 1995.
Seeks to improve trade relations among countries of
the world
Provides a place to settle trade disputes
WORLD TRADE ORGANIZATION (WTO)
The G8 is an informal group of the eight most developed nations
with the strongest economies
Members include
United States
Great Britain
France
Germany
Italy
Japan
Canada
Russia
GROUP OF EIGHT (G8)
Deal with a wide range of global economic, political,
and social issues
G8 countries have nearly 50% of votes in the IMF and
World Bank
And has significant impact on WTO policies
G8
• Argues that the WTO and globalization does not contribute to the sustainable prosperity for all people
• Council of Canadians
• Formed in 1985
• Some Canadians became concerned that Canada’s independence and way of life was being threatened
Pg. 193
ANTI-GLOBALIZATION MOVEMENT
Methods of Protest used by various groups include
Public speeches
Letters of opposition or support
Mass petitions
Internet forums and blogs
Banners, posters and press statements
Public Acts such as
Marches, parades, sit-ins or fasts, civil disobedience.
METHODS OF PROTEST