What
is globalization?
Contents
Definition
When did globalization begin?
The features of globalization
What are the
environmental impacts of globalization?
Is globalization shifting power from nation states to undemocratic
organizations?
How
does globalization affect culture? Is it 'Americanization'?
Globalization in Russia
Who are the players?
What is the role of the internet and communications' technologies in
globalization?
Conclusion
What
is globalization?
Definition
Many
people see it as a primarily economic phenomenon, involving the increasing
interaction, or integration, of national economic systems through the growth
in international trade, investment and capital flows.
However,
one can also point to a rapid increase in cross-border social, cultural and
technological exchange as part of the phenomenon of globalization.
Globalization is a capitalist process. It has taken off as a concept in the
wake of the collapse of the Soviet Union and of socialism as a viable
alternate form of economic organization.
Globalization is the rapid increase in cross-border economic, social,
technological exchange under conditions of capitalism.
When did globalization begin?
The first
great expansion of European capitalism took place in the 16th century,
following the first circumnavigation of the earth in 1519 to 1521.
There was
a big expansion in world trade and investment in the late nineteenth century.
This was brought to a halt by the First World War and the bout of anti-free
trade protectionism that led to the Great Depression in 1930. Some see this
period as an interruption to the process of globalization commenced in the
late 19th century.
A sense
that the world was united was generated by the establishment of the
International Date Line and world time zones, together with the near global
adoption of the Gregorian calendar between 1875 and 1925. During that period,
international standards were also agreed for telegraphy and signaling.
The end
of the Second World War brought another great expansion of capitalism with the
development of multinational companies interested in producing and selling in
the domestic markets of nations around the world. The emancipation of colonies
created a new world order. Air travel and the development of international
communications enhanced the progress of international business.
The fall
of the Berlin Wall and the collapse of the Soviet Union ended the cold war
between the forces of capitalism and socialism with capitalism triumphant. The
development of the internet made possible the organization of business on a
global scale with greater facility than ever before.
The features of globalization
Globalization influences all spheres of our life: culture, business, trade,
politics, environment and even our mentality. It connects different countries
and nations, makes their cooperation easier. It makes everything and everyone
similar or even identical.
What are the
environmental impacts of globalization?
Global
businesses are working hard to improve their environmental performance, with
greater emphasis upon environmental reporting. A growing number of companies
in sensitive industries, such as mining, forestry and chemicals, are producing
independently audited environmental reports.
WTO rules
expressly permit countries to take actions to protect human, animal or plant
life or health, and to conserve exhaustible natural resources. However, such
restrictions must pursue legitimate environmental objectives, and not be a
disguised form of trade protectionism. The WTO rules do not prevent countries
from banning or restricting the marketing of genetically modified organisms.
But the anti-globalization movement considers that The World Trade
Organization does not make it possible to block the trade in goods and
services that are produced by environmentally damaging methods.
Is globalization shifting power from nation states to undemocratic
organizations?
As the
work of the United Nations has demonstrated, globalization is more effective
when there are strong governments, with strong domestic institutions.
Globalization benefits both big and small business, together with the citizens
of those countries that embrace international trade. But what about those
countries which don't have strong governments?
There is
a danger that globalization is undermining nation states. First, it is that it
is empowering corporations at the expense of the nation state, and secondly,
that the international institutions such as the WTO and World Bank are not
democratic.
How does
globalization affect culture? Is it 'Americanization'?
It does
not make sense to talk of a world of 6 billion people becoming a monoculture.
The
spread of globalization will undoubtedly bring changes to the countries it
reaches, but change is an essential part of life. It does not mean the
abolition of traditional values. Indeed, new global media, such as the
internet, have proven a powerful means of projecting traditional culture (and
the culture of radical opponents of globalization).
But the
report by the UN Educational, Scientific and Cultural Organization (UNESCO),
showed that the world trade in goods with cultural content almost tripled
between 1980 and 1991: from 67 billion dollars to 200 billion dollars. At the
core of the entertainment industry - film, music and television - there is a
growing dominance of US products. World Trade Organization rules do not allow
countries to block imports on cultural grounds.
It is
argued that one of the consequences of globalization will be the end of
cultural diversity, and the triumph of a monoculture serving the needs of
transnational corporations. Hence the world drinks Coca-Cola, watches American
movies and eats American junk food.
American
culture is seen to be dominated by monetary relationships and commercial
values replacing traditional social relationships and family values.
Globalization in Russia
As often
happens with such terms, the word "globalization" has become popular in our
country only belatedly. To be exact, it has become popular among us at the
very moment when people around the world have stopped talking about the rise
of a new global economy, and instead have begun talking about its crisis. The
fact that our commentators and theoreticians have begun speaking of
globalization later than those in the West does not indicate that the process
has passed us by or that its impact has been delayed. It simply testifies to
the backwardness of our social thinking.
Russia is
often discriminated on the world markets. The lion's share belongs , as
always, to the developed countries and main benefits from globalization will
be theirs. Our unlucky country has always been at the background and of course
we have few chances to survive in the future 'united world'. A globalization
that does not include the entire world is not globalization but
"Westernization". The process of globalization implies growing competition but
it is necessary that it proceed on an equal basis. It's an awful fact that
Americanization has already influenced our national mind. Of course we want to
have a good living level, we want to have a worthy life, but should we endow
our spiritual values? Thanks God we still can resist!
I love my
country, I proud of it and of course I think that globalization in it's modern
meaning is extremely bad for it. Globalization threatens Russia with total
damage and chaos.
Who are the players?
Pro-globalization
International organizations:
The
World Trade Organization (WTO)
http://www.wto.org
was established in 1995 to administer the rules of international trade agreed
to by its 123 member countries. These rules have been ratified by the
parliaments of all members.
The key
difference between the WTO and the General Agreement on Tariffs and Trade
(GATT), which it replaced, is that the WTO is a permanent organization with
the judicial powers to rule on international trade disputes. The WTO also
covers trade in services, whereas GATT only covered trade in goods.
The WTO's
rules make it hard for a country to favour their own industry over imports
from other countries. Also, the WTO rules do not allow a country to favour the
imports of one country over those from another.
The WTO
argues that the growth of trade between countries increases the wealth of
everyone. Trade allows the production of goods and services by those who are
most efficient, thus maximizing their availability at the best price.
The
growth of trade is helped by the lowering of barriers, such as tariffs and
import quotas, which is the object of WTO agreements.
The
International Monetary Fund (IMF)
http://www.imf.org
was established in the wake of the World War II in 1946 to:
•
promote international cooperation on
finance,
•
encourage stability in exchange rates and
orderly systems for exchanging money between
countries
•
providing temporary assistance for
countries suffering balance of payments problems
The IMF
frequently seeks institutional reform in the countries to which it provides
temporary financial assistance. Like the WTO, the IMF believes that world
prosperity is enhanced by greater exchange between nations and that this is
made possible by everyone agreeing to abide by rules. The IMF has 182 member
countries.
The
World Bank http://www.worldbank.org
provides loans to poor countries for development projects. The bank provides
loans for investment projects, such as water and sanitation, natural resource
management education and health. It also lends for what it calls adjustment
projects, which are to support governments undertaking policy reforms, such as
improved public sector management.
Established at the conclusion of the Second World War, the United Nations
http://www.un.org has become a promoter of globalization, arguing
that individual states have a dual role with responsibilities to both their
own citizens and to the world society as a whole. The United Nations says the
broader global responsibility requires international institutions. It supports
the case for reform of international institutions, including its own Security
Council, to make them more representative. The UN has sponsored a Global
Compact to establish and promote a shared set of core values in the areas of
labour standards, human rights and environmental practices between the UN and
the business community http://www.unglobalcompact.org
The
Organization for Economic Cooperation and Development (OECD)
develops economic and social policy
for its 29 members, which include the countries of North America, Western
Europe (including Czech Republic, Hungary and Poland) and Japan, Korea,
Australia and New Zealand. It provides economic arguments for globalization,
such as data demonstrating the positive contribution made by multinational
corporations to economic development. www.oecd.org/subject/growth/in_tr_gl.htm
United
Nations Conference on Trade and Development
(UNCTAD) is a permanent
intergovernmental body of the UN that aims to maximize the trade investment
and development opportunities of developing economies and to assist their
efforts to integrate into the world economy http://www.unctad.org
The
World Economic Forum (WEF)
http://www.weforum.org
is a private not-for-profit foundation that operates conferences for business,
political, intellectual and other society leaders. The WEF holds an annual
conference in the Swiss town of Davos, where it is based, and also holds
regional conferences around the world. It has no decision-making power, but
many of the world's business and political leaders discuss issues of
importance at WEF meetings.
Public
Affairs Organizations
Worldgrowth.org is
dedicated to providing a balance to the debate about trade, globalization and
sustainable development. It focuses on market based approaches to trade and
growth for securing benefits in both developed and developing countries.
http://www.worldgrowth.org
The
Institute of Economic
Affairs is a UK based free
market think tank that aims to explain free market ideas including the
benefits of globalization see http://www.iea.org.uk
International Policy Network (IPN) and the Competitive Enterprise
Institute (CEI) are nonprofit, non-government organizations that research and
share ideas and issues such as globalization, global wanning, sustainable
development and intellectual property. See http://www.policvnetwork.net
and http://www.cei.org
Businesses benefiting from open international markets
Most
organizations representing business endorse globalization and efforts to lower
barriers to international trade and investment. For example, the
International Chamber of Commerce argues that economic growth is essential
if living standards around the world are to increase. Economic growth, it
argues, is generated by trade. http://www.iccwbo.org/home/menu_case_for_the_global_economy.asp
Another
international business organization, the World Business Council for
Sustainable Development is working to build support for the UN's "Global
Compact", www.wbcsd.ch
Australian peak business organizations, such as the Australian Chamber of
Commerce and Industry have policy positions supporting globalization.
www.acci.asn.au/index_policypapers.htm
Developing country governments and NGOs perceiving benefit from open markets
Most of
the world's governments and parliaments are signatories to the World Trade
Organization, and members of the international Monetary Fund. A number of the
richer nations among the developing world, such as Mexico, Turkey, Egypt and
Thailand, have provided vocal support for globalization. For example, Mexico's
President Vincente Fox has pledged to expand the benefits of globalization
throughout the hemisphere. usinfo.state.gov/regional/ar/summit/
There are
also NGOs in developing countries who advocate the benefits of globalization
through international trade.
Inter
Region Economic Network,
Nairobi http://www.irenkenva.org
Africa
Fighting Malaria http://www.fightingmalaria.org
Liberty Institute, New
Delhi http://www.libertyindia.org
Australian points of view
The
Australian Labor Party maintains that engagement with the global economy is
essential to Australia's future prosperity. Its policy is spelt out on its
website at: http://www.alp.org.au/policv/platform2000/chapter_05.html
Often
controversial author, and then backbencher, Mark Latham gave a speech entitled
Globalization: Ending the Tyranny of Distance that is viewable at
www.thirdway-aust.com/page10.html
The
foreign minister, Mr Alexander Downer, expressed the Liberal Party view to the
Press Club saying that globalization has increased GDP, employment, family
incomes and living standards generally in Australia. www.dfat.gov.au/media/speeches/foreign/2001/010301_fa_npc.html
The views
of the Australian Democrats are represented in The Age Millennium Series,
which includes comments from leader Natasha Stott Despoja on globalization. Go
to www.theage.com.au/special/vision21/index3.htm
Internet and telecommunications industry
One of
the driving forces of globalization is the advance of telecommunications in
general and the internet in particular. Representative organizations regard
the spread of communications technology as a benefit without qualification.
For example, the International Telecommunications Union sees globalization as
the innate human desire for the integration of individuals in villages and
cities and the integration of people of all races and backgrounds into
nations. www.itu.int/osg/dsg/speeches/2000/08its.html
Other
organizations are concerned that the free spread of communications technology
proceeds without impediment of censorship or any other official constraint.
See for example the Global Internet Liberty Campaign www.gilc.org
What is the role of the internet and communications technology in
globalization?
Many
within developing countries see the internet as an opportunity to gain access
to knowledge and services from around the world in a way that would have been
unimaginable previously. Internet kiosks, mostly facilitating email with
overseas relatives, for example, are springing up in many parts of Africa.
The
internet is also creating new gaps between the rich and the poor. Rich
countries have much greater access to the internet and communications services
generally. We are moving from an industrial age, in which wealth was created
by manufacturing, to an information age in which wealth is created by the
development of information goods and services, ranging from media, to
education and software. Poor countries are not taking part in this information
revolution.
Conclusion
In the
case of globalization the theory and practice of the phenomenon are different.
In fact it's not an exchange of achievements, but the absorption many
different cultures by one strong culture. I'm for globalization in its
original meaning, but I'm against Americanization.
Yafasova Alina
11th "А"
form, school #63,
Novosibirsk 2004
