HOME WEB NEWS IMAGES CLASSIFIEDS YELLOW PAGESPOLLS - SURVEYS WIKI COUNTRIES PHOTOS US UK INDIA
Cities Stocks Weather Movies Coupons Travel Blogs Health Horoscope Maps ASIA EUROPE Classifieds Yellow Pages
|
 1
|
Puxi side of Shanghai, China.
Globalization in a literal sense is international integration.Noam Chomsky chats with Washington Post readers, The Washington Post, March 24, 2006 It can be described as a process by which the people of the world are unified into a single society and functioning together. This process is a combination of economic, technological, sociocultural and political forces.Sheila L. Croucher. Globalization and Belonging: The Politics of Identity a Changing World. Rowman & Littlefield. (2004). p.10 Globalization, as a term, is very often used to refer to economic globalization, that is integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and spread of technology.Bhagwati, Jagdish (2007). In Defense of Globalization. Oxford, New York: Oxford University Press. The word globalization is also used, in a doctrinal sense to describe the neoliberal form of economic globalization.ZNet, Corporate Globalization, Korea and International Affairs, Noam Chomsky interviewed by Sun Woo Lee, Monthly JoongAng, 22 February 2006 Globalization is also defined as internationalism, however such usage is typically incorrect as "global" implies "one world" as a single unit, while "international" (between nations) recognizes that different peoples, cultures, languages, nations, borders, economies, and ecosystems exist.
However, currently globalization has been due to North American business and trade developments throughout the world. Thomas L. Friedman "examines the impact of the \'flattening\' of the globe", Friedman argues that globalized trade, outsourcing, supply-chaining, and political forces have changed the world permanently for good and bad. He examines the positive and negative effects flattening has had and will continue to have on global politics and business. Friedman,Thomas L. "The Dell Theory of Conflict Prevention." Emergin: A Reader. Ed. Barclay Barrios. Boston: Bedford, St. Martins, 2008. 49
Contents |
Sometimes the terms internationalization and globalization are used interchangeably but there is a slight formal difference. The term internationalization refers to the importance of international trade, relations, treaties etc. Inter+national means between or among nations; hence internationalization refers to the increased importance of relations between nations - the basic unit remains the nation. In contrast, the term globalization refers to economic integration on a global scale, into a global economy, which blurs national boundaries. In the extreme, globalization would mean erasure of national boundaries for economic purposes; international trade (governed by comparative advantages) would become interregional trade (governed by absolute advantages). Daly, Herman (1999). "Globalization versus Internationalization - Some Implications". Ecological Economics 31: 31-37. Elsevier. [1]
The terms globalisation and anti-globalisation are used in various ways. Noam Chomsky states thatNoam Chomsky Znet May 07, 2002 / The Croatian Feral Tribune April 27, 2002 [2]Interview by Sniježana Matejčić, June 2005 en 2.htm
| “ | The term "globalization" has been appropriated by the powerful to refer to a specific form of international economic integration, one based on investor rights, with the interests of people incidental. That is why the business press, in its more honest moments, refers to the "free trade agreements" as "free investment agreements" (Wall St. Journal). Accordingly, advocates of other forms of globalization are described as "anti-globalization"; and some, unfortunately, even accept this term, though it is a term of propaganda that should be dismissed with ridicule. No sane person is opposed to globalization, that is, international integration. Surely not the left and the workers movements, which were founded on the principle of international solidarity - that is, globalization in a form that attends to the rights of people, not private power systems. | ” |
| “ | "The dominant propaganda systems have appropriated the term "globalization" to refer to the specific version of international economic integration that they favor, which privileges the rights of investors and lenders, those of people being incidental. In accord with this usage, those who favor a different form of international integration, which privileges the rights of human beings, become "anti-globalist." This is simply vulgar propaganda, like the term "anti-Soviet" used by the most disgusting commissars to refer to dissidents. It is not only vulgar, but idiotic. Take the World Social Forum, called "anti-globalization" in the propaganda system -- which happens to include the media, the educated classes, etc., with rare exceptions. The WSF is a paradigm example of globalization. It is a gathering of huge numbers of people from all over the world, from just about every corner of life one can think of, apart from the extremely narrow highly privileged elites who meet at the competing World Economic Forum, and are called "pro-globalization" by the propaganda system. An observer watching this farce from Mars would collapse in hysterical laughter at the antics of the educated classes." | ” |
|
|
This section needs additional citations for verification. Please help improve this article by adding reliable references. Unsourced material may be challenged and removed. (March 2008) |
The word "Globalization" has been used by economists since 1981; however, its concepts did not become popular until the later half of the 1980\'s and 1990\'s.
Globalization in its largest extent began a bit before the turn of the 16th century, in Portugal. The country\'s global adventurism in the 16th century linked continents, economies and cultures as never before. The Kingdom of Portugal kicked off what has come to be known as the Age of Discovery, in the mid-1400s. The westernmost country in Europe, was the first to significantly probe the Atlantic Ocean, colonizing the Azores, Madeira and other Atlantic islands, then braving the west coast of Africa. In 1488, Portuguese explorer Bartolomeu Dias was the first to sail around the southern tip of Africa, and in 1498 his countryman Vasco da Gama repeated the experiment, making it as far as India. The Portuguese Empire would establish ports, forts and trading posts as far west as Brazil, as far east as Japan and Timor, and along the coasts of Africa, India and China. For the first time in history, a wave of global trade, colonization, and enculturation reached all corners of the world.
Globalization is viewed as a centuries long process, tracking the expansion of human population and the growth of civilization, that has accelerated dramatically in the past 50 years. Early forms of globalization existed during the Roman Empire, the Parthian empire, and the Han Dynasty, when the silk road started in China, reached the boundaries of the Parthian empire, and continued onwards towards Rome. The Islamic Golden Age is also an example, when Muslim traders and explorers established an early global economy across the Old World resulting in a globalization of crops, trade, knowledge and technology; and later during the Mongol Empire, when there was greater integration along the Silk Road. Global integration continued through the expansion of European trade, as in the 16th and 17th centuries, when the Portuguese and Spanish Empires reached to all corners of the world after expanding to the Americas.
In the 17th century, Globalization became a business phenomenon when the Dutch East India Company, which is often described as the first multinational corporation, was established. Because of the high risks involved with international trade, the Dutch East India Company became the first company in the world to share risk and enable joint ownership through the issuing of shares: an important driver for globalization.
In the 19th century it was sometimes called "The First Era of Globalization" a period characterized by rapid growth in international trade and investment, between the European imperial powers, their colonies, and, later, the United States. It was in this period that areas of sub-saharan Africa and the Island Pacific were incorporated into the world system. The "First Era of Globalization" began to break down at the beginning with the first World War, and later collapsed during the gold standard crisis in the late 1920s and early 1930s.
|
|
This section needs additional citations for verification. Please help improve this article by adding reliable references. Unsourced material may be challenged and removed. (November 2007) |
Globalization in the era since World War II was first the result of planning by economists, business interests, and politicians who recognized the costs associated with protectionism and declining international economic integration. Their work led to the Bretton Woods conference and the founding of several international institutions intended to oversee the renewed processes of globalization, promoting growth and managing adverse consequences.
These were the International Bank for Reconstruction and Development (the World Bank) and the International Monetary Fund. It has been facilitated by advances in technology which have reduced the costs of trade, and trade negotiation rounds, originally under the auspices of GATT, which led to a series of agreements to remove restrictions on free trade.
Since World War II, barriers to international trade have been considerably lowered through international agreements - General Agreement on Tariffs and Trade (GATT). Particular initiatives carried out as a result of GATT and the World Trade Organisation (WTO), for which GATT is the foundation, have included:
The Uruguay round (1984 to 1995) led to a treaty to create the World Trade Organization (WTO), to mediate trade disputes and set up a uniform platform of trading. Other bi- and multilateral trade agreements, including sections of Europe\'s Maastricht Treaty and the North American Free Trade Agreement (NAFTA) have also been signed in pursuit of the goal of reducing tariffs and barriers to trade.
The use of the term globalization (in the doctrinal sense), in the context of these developments has been analysed by many including Noam Chomsky who states [3] ZForums, Chomsky Chat, >(2) What are the direct relationships between 9/11 and globalization?
| “ | ... That enhances what\'s called "globalization," a term of propaganda used conventionally to refer to a certain particular form of international integration that is (not surprisingly) beneficial to its designers: Multinational corporations and the powerful states to which they are closely linked. | ” |
Critics have observed that the term\'s contemporary usage comprises several meanings, for example Noam Chomsky states that: Noam Chomsky chats with Washington Post readers, The Washington Post, March 24, 2006
| “ | The term "globalization," like most terms of public discourse, has two meanings: its literal meaning, and a technical sense used for doctrinal purposes. In its literal sense, "globalization" means international integration. Its strongest proponents since its origins have been the workers movements and the left (which is why unions are called "internationals"), and the strongest proponents today are those who meet annually in the World Social Forum and its many regional offshoots. In the technical sense defined by the powerful, they are described as "anti-globalization," which means that they favor globalization directed to the needs and concerns of people, not investors, financial institutions and other sectors of power, with the interests of people incidental. That\'s "globalization" in the technical doctrinal sense. | ” |
|
|
This section needs additional citations for verification. Please help improve this article by adding reliable references. Unsourced material may be challenged and removed. (November 2007) |
Japanese McDonald\'s fast food as an evidence of international integration.
Looking specifically at economic globalization, it can be measured in different ways. These centre around the four main economic flows that characterize globalization:
As globalization is not only an economic phenomenon, a multivariate approach to measuring globalization is the recent index calculated by the Swiss think tank KOF. The index measures the three main dimensions of globalization: economic, social, and political. In addition to three indices measuring these dimensions, an overall index of globalization and sub-indices referring to actual economic flows, economic restrictions, data on personal contact, data on information flows, and data on cultural proximity is calculated. Data is available on a yearly basis for 122 countries, as detailed in Dreher, Gaston and Martens (2008).Axel Dreher, Noel Gaston, Pim Martens, Measuring Globalisation: Gauging Its Consequences, Springer, ISBN 978-0-387-74067-6. According to the index, the world\'s most globalized country is Belgium, followed by Austria, Sweden, the United Kingdom and the Netherlands. The least globalized countries according to the KOF-index are Haiti, Myanmar the Central African Republic and Burundi.KOF Index of Globalization Other measures conceptualize Globalization as diffusion and develop interactive procedure to capture the degree of its impact Jahn 2006.
A.T. Kearney and Foreign Policy Magazine jointly publish another Globalization Index. According to the 2006 index, Singapore, Ireland, Switzerland, the U.S., the Netherlands, Canada and Denmark are the most globalized, while Egypt, Indonesia, India and Iran are the least globalized among countries listed.
Globalization has various aspects which affect the world in several different ways such as:
Supporters of free trade claim that it increases economic prosperity as well as opportunity, especially among developing nations, enhances civil liberties and leads to a more efficient allocation of resources. Economic theories of comparative advantage suggest that free trade leads to a more efficient allocation of resources, with all countries involved in the trade benefiting. In general, this leads to lower prices, more employment, higher output and a higher standard of living for those in developing countries.Sachs, Jeffrey (2005). The End of Poverty. New York, New York: The Penguin Press. 1-59420-045-9. World Bank, Poverty Rates, 1981 - 2002. Retrieved on 2007-06-04.
One of the ironies of the recent success of India and China is the fear that... success in these two countries comes at the expense of the United States. These fears are fundamentally wrong and, even worse, dangerous. They are wrong because the world is not a zero-sum struggle... but rather is a positive-sum opportunity in which improving technologies and skills can raise living standards around the world.
—Jeffrey D. Sachs, The End of Poverty, 2005
Libertarians and other proponents of laissez-faire capitalism say that higher degrees of political and economic freedom in the form of democracy and capitalism in the developed world are ends in themselves and also produce higher levels of material wealth. They see globalization as the beneficial spread of liberty and capitalism. Sachs, Jeffrey (2005). The End of Poverty. New York, New York: The Penguin Press. 1-59420-045-9.
Supporters of democratic globalization are sometimes called pro-globalists. They believe that the first phase of globalization, which was market-oriented, should be followed by a phase of building global political institutions representing the will of world citizens. The difference from other globalists is that they do not define in advance any ideology to orient this will, but would leave it to the free choice of those citizens via a democratic process[citation needed].
Some, such as Senator Douglas Roche, O.C., simply view globalization as inevitable and advocate creating institutions such as a directly-elected United Nations Parliamentary Assembly to exercise oversight over unelected international bodies.
Supporters of globalization argue that the anti-globalization movement uses anecdotal evidence[citation needed] to support their protectionist view, whereas worldwide statistics strongly support globalization:
with the greatest improvements occurring in economies rapidly reducing barriers to trade and investment; yet, some critics argue that more detailed variables measuring poverty should be studied instead Michel Chossudovsky, "Global Falsehoods".
| Area | Demographic | 1981 | 1984 | 1987 | 1990 | 1993 | 1996 | 1999 | 2002 | Percentage Change 1981-2002 |
|---|---|---|---|---|---|---|---|---|---|---|
| East Asia and Pacific | Less than $1 a day | 57.7% | 38.9% | 28.0% | 29.6% | 24.9% | 16.6% | 15.7% | 11.1% | -80.76% |
| Less than $2 a day | 84.8% | 76.6% | 67.7% | 69.9% | 64.8% | 53.3% | 50.3% | 40.7% | -52.00% | |
| Latin America | Less than $1 a day | 9.7% | 11.8% | 10.9% | 11.3% | 11.3% | 10.7% | 10.5% | 8.9% | -8.25% |
| Less than $2 a day | 29.6% | 30.4% | 27.8% | 28.4% | 29.5% | 24.1% | 25.1% | 23.4% | -29.94% | |
| Sub-Saharan Africa | Less than $1 a day | 41.6% | 46.3% | 46.8% | 44.6% | 44.0% | 45.6% | 45.7% | 44.0% | +5.77% |
| Less than $2 a day | 73.3% | 76.1% | 76.1% | 75.0% | 74.6% | 75.1% | 76.1% | 74.9% | +2.18% |
\'SOURCE: World Bank, Poverty Estimates, 2002World Bank, Poverty Rates, 1981 - 2002. Retrieved on 2007-06-04.
Although critics of globalization complain of Westernization, a 2005 UNESCO report [http://http://www.uis.unesco.org/template/pdf/cscl/IntlFlows_EN.pdf 2005 UNESCO report showed that cultural exchange is becoming mutual. In 2002, China was the third largest exporter of cultural goods, after the UK and US. Between 1994 and 2002, both North America\'s and the European Union\'s shares of cultural exports declined, while Asia\'s cultural exports grew to surpass North America.
International Social Forums
See main articles: European Social Forum, the Asian Social Forum, World Social Forum (WSF).
The first WSF was an initiative of the administration of Porto Alegre in Brazil.
The slogan of the World Social Forum was "Another World Is Possible". It was here that the WSF\'s Charter of Principles was adopted to provide a framework for the forums.
The WSF became a periodic meeting: in 2002 and 2003 it was held again in Porto Alegre and became a rallying point for worldwide protest against the American invasion of Iraq. In 2004 it was moved to Mumbai (formerly known as Bombay, in India), to make it more accessible to the populations of Asia and Africa. This last appointment saw the participation of 75,000 delegates.
In the meantime, regional forums took place following the example of the WSF, adopting its Charter of Principles. The first European Social Forum (ESF) was held in November 2002 in Florence. The slogan was "Against the war, against racism and against neo-liberalism". It saw the participation of 60,000 delegates and ended with a huge demonstration against the war (1,000,000 people according to the organizers). The other two ESFs took place in Paris and London, in 2003 and 2004 respectively.
Recently there has been some discussion behind the movement about the role of the social forums. Some see them as a "popular university", an occasion to make many people aware of the problems of globalization. Others would prefer that delegates concentrate their efforts on the coordination and organization of the movement and on the planning of new campaigns. However it has often been argued that in the dominated countries (most of the world) the WSF is little more than an \'NGO fair\' driven by Northern NGOs and donors most of which are hostile to popular movements of the poor.http://www.pambazuka.org/en/category/features/39464
Anti-globalization is a pejorative term used to describe the political stance of people and groups who oppose the neoliberal version of globalization.
“Anti-globalization" may involve the process or actions taken by a state in order to demonstrate its sovereignty and practice democratic decision-making. Anti-globalization may occur in order to put brakes on the international transfer of people, goods and ideology, particularly those determined by the organizations such as the IMF or the WTO in imposing the radical deregulation program of free market fundamentalism on local governments and populations. Moreover, as Canadian journalist Naomi Klein argues in her book No Logo: Taking Aim at the Brand Bullies (also subtitled No Space, No Choice, No Jobs) anti-globalism can denote either a single social movement or an umbrella term that encompasses a number of separate social movements No Logo: No Space, No Choice, No Jobs by Canadian journalist Naomi Klein. such as nationalists and socialists. In either case, participants stand in opposition to the unregulated political power of large, multi-national corporations, as the corporations exercise power through leveraging trade agreements which damage in some instances the democratic rights of citizens, the environment particularly air quality index and rain forests, as well as national governments sovereignty to determine labor rights including the right to unionize for better pay, and better working conditions, or laws as they may otherwise infringe on cultural practices and traditions of developing countries.
Most people who are labeled "anti-globalization" consider the term to be too vague and inaccurate Morris, Douglas "Globalization and Media Democracy: The Case of Indymedia", Shaping the Network Society, MIT Press 2003. Courtesy link to(pre-publication version) [7] [8] Podobnik, Bruce, Resistance to Globalization: Cycles and Evolutions in the Globalization Protest Movement, p. 2. Podobnik states that "the vast majority of groups that participate in these protests draw on international networks of support, and they generally call for forms of globalization that enhance democratic representation, human rights, and egalitarianism."
Stiglitz, Joseph and Andrew Charlton writeStiglitz, Joseph & Charlton Fair Trade for All: How Trade Can Promote Development. 2005 p. 54 n. 23:
| “ | The anti-globalization movement developed in opposition to the perceived negative aspects of globalization. The term \'anti-globalization\' is in many ways a misnomer, since the group represents a wide range of interests and issues and many of the people involved in the anti-globalization movement do support closer ties between the various peoples and cultures of the world through, for example, aid, assistance for refugees, and global environmental issues. | ” |
Critiques of the current wave of economic globalization typically look at both the damage to the planet, in terms of the perceived unsustainable harm done to the biosphere, as well as the perceived human costs, such as increased poverty, inequality, miscegenation, injustice and the erosion of traditional culture which, the critics contend, all occur as a result of the economic transformations related to globalization. They challenge directly the metrics, such as GDP, used to measure progress promulgated by institutions such as the World Bank, and look to other measures, such as the Happy Planet Index,The Happy Planet Index created by the New Economics FoundationThe New Economics Foundation. They point to a "multitude of interconnected fatal consequences--social disintegration, a breakdown of democracy, more rapid and extensive deterioration of the environment, the spread of new diseases, increasing poverty and alienation"Capra, Fritjof (2002). The Hidden Connections. New York, New York: Random House. 0-385-49471-8. which they claim are the unintended but very real consequences of globalization.
Critics argue that:
In December 2007, World Bank economist Branko Milanovichas called much previous empirical research on global poverty and inequality into question because, according to him, improved estimates of purchasing power parity indicate that developing countries are worse off than previously believed. Milanovic remarks that "literally hundreds of scholarly papers on convergence or divergence of countries’ incomes have been published in the last decade based on what we know now were faulty numbers. With the new data, economists will revise calculations and possibly reach new conclusions" moreover noting that "implications for the estimates of global inequality and poverty are enormous. The new numbers show global inequality to be significantly greater than even the most pessimistic authors had thought. Until the last month, global inequality, or difference in real incomes between all individuals of the world, was estimated at around 65 Gini points – with 100 denoting complete inequality and 0 denoting total equality, with everybody’s income the same – a level of inequality somewhat higher than that of South Africa. But the new numbers show global inequality to be 70 Gini points – a level of inequality never recorded anywhere." [9]
The critics of globalization typically emphasize that globalization is a process that is mediated according to corporate interests, and typically raise the possibility of alternative global institutions and policies, which they believe address the moral claims of poor and working classes throughout the globe, as well as environmental concerns in a more equitable way.Fórum Social Mundial
The movement is very broad, including church groups, national liberation factions, peasant unionists, intellectuals, artists, protectionists, anarchists, those in support of relocalization and others. Some are reformist, (arguing for a more humane form of capitalism) while others are more revolutionary (arguing for what they believe is a more humane system than capitalism) and others are reactionary, believing globalization destroys national industry and jobs.
One of the key points made by critics of recent economic globalization is that income inequality, both between and within nations, is increasing as a result of these processes. One article from 2001 found that significantly, in 7 out of 8 metrics, income inequality has increased in the twenty years ending 2001. Also, "incomes in the lower deciles of world income distribution have probably fallen absolutely since the 1980s". Furthermore, the World Bank\'s figures on absolute poverty were challenged. The article was skeptical of the World Bank\'s claim that the number of people living on less than $1 a day has held steady at 1.2 billion from 1987 to 1998, because of biased methodology.Wade, Robert Hunter. \'The Rising Inequality of World Income Distribution\', Finance & Development, Vol 38, No 4 December 2001
A chart that gave the inequality a very visible and comprehensible form, the so-called \'champagne glass\' effectXabier Gorostiaga,"World has become a \'champagne glass\' globalization will fill it fuller for a wealthy few\' National Catholic Reporter, Jan 27, 1995 \' , was contained in the 1992 United Nations Development Program Report, which showed the distribution of global income to be very uneven, with the richest 20% of the world\'s population controlling 82.7% of the world\'s income.United Nations Development Program. 1992 Human Development Report, 1992 (New York, Oxford University Press)
| + Distribution of world GDP, 1989 | |
| Quintile of Population | Income |
|---|---|
| Richest 20% | 82.7% |
| Second 20% | 11.7% |
| Third 20% | 2.3% |
| Fourth 20% | 1.4% |
| Poorest 20% | 1.2% |
SOURCE: United Nations Development Program. 1992 Human Development ReportHuman Developemnt Report 1992. Retrieved on 2007-07-08.
Economic arguments by fair trade theorists claim that unrestricted free trade benefits those with more financial leverage (i.e. the rich) at the expense of the poor.NAFTA at 10, Jeff Faux, Economic Policy Institute, D.C.
Americanization related to a period of high political American clout and of significant growth of America\'s shops, markets and object being brought into other countries. So globalization, a much more diversified phenomenon, relates to a multilateral political world and to the increase of objects, markets and so on into each others countries.
Some opponents of globalization see the phenomenon as the promotion of corporatist interests.Lee, Laurence. "WTO blamed for India grain suicides", Al Jazeera, 17 May, 2007. Retrieved on []. (English) They also claim that the increasing autonomy and strength of corporate entities shapes the political policy of countries.Bakan, Joel (2004). The Corporation. New York, New York: Simon & Schuster. 0-7432-4744-2. Perkins, John (2004). Confessions of an Economic Hit Man. San Francisco, California: Berrett-Koehler. 1-57675-301-8.
Wikiquote has a collection of quotations related to:
Look up globalisation, globalization in Wiktionary, the free dictionary.
Wikimedia Commons has media related to:
| International trade | |
|---|---|
| Definitions |
Balance of payments · Current account (Balance of trade) · Capital account · Foreign exchange reserves · Sovereign wealth funds · Net Capital Outflow · Comparative advantage · Absolute advantage · Import substitution industrialization · International trade |
| Organizations and policies |
World Trade Organization · International Monetary Fund · World Bank Group · International Trade Centre · Trade bloc · Free trade zone · Trade barrier |
| Schools of thought |
|
| Related issues |
Globalization · Outsourcing · Trade justice · Fair trade |
This article is licensed under the GNU Free Documentation License. It uses material from Wikipedia
