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,Globalization: What it is and what it isnt,One of the most fashionable buzzwords of contemporary political and academic debateIt is used as a synonym for one or more of the following phenomena:Free marketsEconomic liberalizationGrowing dominance of western (or Euro American) forms of political, economic and cultural life (Westernization or Americanization)Global integrationThe proliferation of new information technologies (internet revolution),Definition,What is Globalization?,4 dimensions:Space - extensiveness of global networksRegularity - intensity of global interactionsSpeed - velocity of global flowsDepth impact of global interconnections on quality of life,Portugals global expansion in the 16th century, linked continents, economies and cultures to a massive extent.Muslim traders and the Silk RoadDutch East India Company 1st Multinational Corporation19th century is sometimes called “the First Era of Globalization”,Is Globalization a New Phenomenon?,Globalization: The Pro Argument,The global economy delivers markets that operate with maximum efficiencyGlobalization is the only way to bring prosperity to the developing worldGlobalization is inevitable and should be embraced,Globalization: The Con Argument,The global economy is an untamed juggernaut that rewards the few and impoverishes the manyGlobalization is neither inevitable nor desirableIt diminishes the sovereignty of local and national governments and transfers the power to shape economic and political destinies to transnational corporations and global institutionsIt is responsible for the destruction of the environment, the widening gap between rich and poor societies, and the world-wide homogenization of local, diverse, and indigenous cultures,Globalization,Summary of Key Ideas,Advantages and Disadvantages of Globalization,ProEase of communicationInterdependence means less probability of warGreater transparency means more oversight of bad leadersCompetition leads to innovation, quality, progressWeakens independence of governments,ConEasier exploitation of resources in developing worldInstitutionalizes dependencyWeakens independence of governmentsCultural imperialismDependency and instabilityAccess for terrorism and organized crime,ProAdvances technologyAccess to more crops, ideas, technology stabilityPolitical implicationsBetter fight against transnational crime (sharing info)Better informed about world events (genocide)increases wealthEducation globalizesMedical tech and nutrition,ConHuman traffickingPolitical implicationsIncreases gap between rich and poorEconomic inequality continuesLabor rights not includedEnvironmental issues ignoredMore cigarettes, fatty foods,ProCreates jobs in developing worldGreater acceptance of differences; less racism“bad jobs” better than no jobsDrives down pricesNothing else has workedGlobalization isnt a system; it is what happens when people are free,ConGovernments can still close off nations from trade (N. Korea, Zimbabwe)Causes job losses in developed world as companies search for cheaper laborCan cause decrease in wages in industrialized worldSpreads materialism, the notion that economic growth is the most important thing,The Opportunities,Globalization,Cultural Enrichment,Information Technology and the Internet,Property Rights,Economic Development,International Investments and Trade,Democracy,Industrial: Emergence of world-wide production markets and broader access to a range of foreign products for consumers and companiesFinancial: Emergence of world-wide financial markets and better access to external financing for borrowersEconomic: Pursuit of free market policieseconomic liberalizationfree movement of goods and capitalPolitical: Some mean globalization as the creation of world government (organizations like the UN)which regulate the relationship between governmentInformational: Increase the information flow between geographically remote locations (Internet Revolution),Effects of Globalization,Cultural: - Growth of cross-cultural contactsparticipate in a “world culture” reducing cultural diversity- Standardize consumer habits, values and way of thinkingEcological: The hope for a collective approach to deal with the environmental issuesSocial: - Greater international travel and tourism- Greater Immigration (uncontrolled)- Promote understanding and peace between peoplesTechnical: Development of a global telecommunications infrastructure and greater trans-border data flowLegal/Ethical: Develop world trade agreement which include copyright laws and patents,Effects of Globalization (continued),Globalization,Goals,Economic integration to help boost living standards,Democratic policies so that public policy decisions are made by those who are directly affected by them,Self-determination which comes in with the nation-state concept,Mutually Incompatible?,Global Markets without Global Governance,Since 1991, international telephone traffic has more than tripled. The number of cell phone subscribers has grown to almost 2 billionmore than 30% of the world populationand internet users hit 1 billionOver the last 20 years, 200 million people left absolute poverty leveldefined as living on the equivalent of less than $1 per day.,Some Facts,The first fastest growing large economy (9.9%)The 2nd largest economy in the world (U.S., China, Japan)Per capita income $2000Implemented reform in a gradualist fashionThe worlds largest labor force (791.4 million)49% agriculture (rice, wheat, corn, tobacco, peanuts)22% mining and other industries29% serviceThe second largest consumer of primary energy, after the U.S.The second largest oil consumer75% of Chinas energy is from coalTourism is one of the fastest growing industriesForeign Direct investment $699.5 billionMember of WTO,China,The second fastest growing large economy (9.4%)Population (2008) 1.132 billionPer capita income $2700 (no. 165)Third largest military force in the worldThe words second largest labor force (516.3 million)60% agriculture (rice, wheat, cotton, jute, tea)28% service12% industryThe sixth largest consumer of oilThe third largest consumer of coal 27.5% of the population are living below the poverty line ($0.40 per day)Largest city is Mumbai (13.6 million) - Delhi (the Capital, 12 million)Foreign direct investment (1991-2008 $86 billion, only 8.35% of that from the U.S.)Member of WTO,India,Globalization,Global Warming,Poverty,Energy Issues,Ocean and Water Issues,Human Rights,Corruption,Epidemics AIDSMalariaAvian Flu,Terrorism,The Challenges,The Dark Side,Interdependency of people and institutions around the world creates both opportunities and challenges,EnergyEnvironmentGreenhouse gas emissions/climate changeWater shortageDeforestationSocio-economic issuesPublic healthIncreasing poverty/inequalityFinancial instabilityCulture and valueMigration and the “Brain Drain”Terrorism,The Challenges,World Preserve Crude Oil Reserves by Region,Globalization and Energy,Middle East64.5%Saudi Arabia*37.8%Iraq*16.2%Iran*14.3%Kuwait*13.9%U. A.E.*14.0%Qatar*1.9%Oman0.9%Syria0.4%All others (including Egypt)0.6%*OPEC Member,L. America11.5%Venezuela61.8%Africa8.9%Libya38%Nigeria36%E. Europe6.2%Former USSR97.2%Asia4%China54%N. America2.8%US71.4%W. Europe2.0%Norway62.4%,Major Oil Producers and Consumers,Saudi ArabiaRussiaIranMexicoNorwayVenezuelaCanada,1437,2503,8543,9817,3852,1132,3789,1864,3260,212,2987,526,2986,2149,Major Oil Producers and Consumers (cont.),U.A.E.U.K.KuwaitNigeriaBrazilItalyFrance,296,1666,2245,2520,2238,266,2185,285,1552,1817,107,1927,1991,Source: BP Statistical Review 2004 (Thousands of Barrels Per Day)ProductionConsumption,Major Oil Producers and Consumers (cont.),South KoreaGermanyJapanChinaU.S.A.,2664,2203,5451,3396,5982,7454,20071,Proven Coal Resources,Top 10 CountriesU.S.121,961.7*Russia 68,699.3China 58,900.0India 55,597.3Australia 41,546.7South Africa 33,013.3Germany 29,666.7Kazakhstan 21,666.7Ukraine 16,809.0Poland 14,153.3Others 39,157.7*Million tons oil equivalentSource: World Resources Institute,Proven Natural Gas Resources,Top 10 CountriesRussia42,300*Iran24,021Qatar23,191Saudi Arabia 6,010U.A.E. 5,454U.S.A. 4,711Nigeria 4,497Algeria 4,070Venezuela 3,734Iraq 2,798Others35,330*Million tons oil equivalentSource: World Resources Institute,FactsAgriculture is the main user/consumer of water31 countries are facing water stress and scarcityOver one billion people lack adequate access to clean drinking waterFood and Agriculture Organization (FAO) reported “By 2025, 1.8 billion people will be living in countries or regions with absolute water scarcity and 2/3 of the world population could be living under water stress conditions”1.1 billion people in developing countries have inadequate access to water and 2.6 billion dont have proper sanitation (WHO)1.8 billion people who have access to a water source within 1km, but not in their house, or yard consume 20 liters per day, Americans consume an average of 600 liters everyday!,Globalization and Water, of the people in developing countries suffering at any given time from a health problem caused by water and sanitation deficits12% of world population use 85% of the water and they dont live in developing countries1.4 million children die of diarrhea every year because of a lack in hygiene and sanitation (WB)Water shortage is a global problem that touches the lives of people in developed and developing countries-many states have water shortage,Globalization and Water,A recent report by the National Intelligence Council, a group that reports to the CIA found that:“The main resource problem in 2015 will be water and that the instability created by shortages of water, will increasingly affect the national security of the U.S.”The Global Water Corporation, a Canadian water company, put this way:“Water has moved from being an endless commodity that may be taken for granted to a rationed necessity that maybe taken by force.”,Globalization and Water,With all these facts, we humans are diverting, polluting and depleting our waters at an astonishing rate!Many will argue the imperatives of economic globalizationunlimited growth, a seamless global consumer market, corporate rule, deregulation, privatization and free tradeare the driving forces behind the destruction of our water system.,Globalization and Water,$100 billion spent annually on bottled water40% of bottled water is actually just tap water1.5 billion barrels of oil are consumed each year to produce the plastic for water bottles, enough to fuel 100,000 carsA water bottle in a landfill or lying around as litter will take over 1,000 years to biodegradeSource: ,The Bottled Water Industry,Increasing trade is certainly good for economies, it also leads to globalization of health risks.As the industrialized countries increasingly ban cigarette advertisement, sales go down. Tobacco companies intentionally target people in poor nations.10 million died from tobacco abuse70% of these deaths are in developing countries.The increase in global food trade, and its domination by large transnational companies that have developed global brand names such as popular beverages and fast food have contributed to the global epidemic of obesity.,Globalization and Risks to Health,Trade and movement of infected cattle and poultry across national borders have contributed to recent outbreaks of mad cow disease in the northern hemisphere and avian influenza in Asia.SARS (Severe Acute Respiratory Syndrome) is the best contemporary example of the rapid spread of a hitherto unknown and virulent viral pathogen through travel of infected humans.SARS was first recognized in Vietnam in Feb. 2003. By the first week of May 2003, 30 countries on six continents has reported a total of more than 7000 cases.,Globalization and Risks to Health,2.6 billion people live on less than $2 per day.1 billion people entered the 21st century unable to read or sign their names.640 million children live without adequate shelter. 400 million children have no access to safe water.Poorest 40% of the world population account for 5% of global income.The richest 20% account for 75% of the world income.,Poverty,Different Realities,“People in the West may regard low-paying jobs at Nike as exploitation, but for many people in the developing world, working in a factory is a far better option than staying down on the farm and growing rice.”Joseph Stiglitz, Discontents, p. 4,Culture is the way of life to a group of people. It includes code of manners, dress, language, religion, rituals, and norms of behavior.The drives of todays rapid globalization are improving methods and systems of international transportation, devising revolutionary and innovative information technologies and services, and dominating the international commerce in services and ideas. Some believe that globalization brings the decay of social values, culture and the environment.,Globalization and Culture,McDonaldization,“. Americas enormous cultural vitality and technological creativity, combined with hegemonic status in world politics, make her a net exporter of culture, giving her therefore no sense of threat from that direction either: it is her culture that spreads. But this spread of American culture threatens others to whom it goes.”Jagdish Bagwati, Defense, p. 120,Number of types of packaged bread available at typical US supermarketAmount of money spent by the fast food industry on television advertising per yearNumber of “coffee drinks” available at Starbucks, whose stores accommodate a stream over 5 million customers every dayNumber of new models of cars available to suburban residentsNumber of hours the average American spends watching television per week,American Culture in Numbers,104$3 billion2619728,Developed countries and international institutionsPlay a fair gameDelivering on trade and forei
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