Globalisation

1. Globalisation

2. GLOBALISATION WORDS. IDEAS. ISSUES.

3. What is globalisation? Globalisation is the process enabling financial and investment markets to operate internationally, largely as a result of deregulation and improved communications Globalisation is the rapid increase in cross border economic, social, technological exchange under conditions of capitalism.

4. When did globalisation first begin? • 1990s • 1980s • 1970s None of the above

5. Myth : G. is a modern development • Human migration began at least 10,000 years ago Ancient human migrations took place 100,000 to 50,000 years ago YALE CENTER FOR THE STUDY OF GLOBALIZATION

6. Waves of Global Change adapted from Thomas Friedman

7. Globalisation 1.0 [countries] • Economy and empire were motivators for shifts • Examples: • Christopher Columbus • Industrial revolution in Europe • Two World Wars EIC

8. Globalisation 2.0 [companies] • Technology made it possible for companies to go global. • Examples • Mcdonalds • Coca-cola • Warner Bros

9. Globalisation 3.0 [individuals] • Rise of China and India • Foreign talent • Blogs

10. Key Players in Globalisation 1. World Organisations • IMF • World Bank • World Trade Organisation 2. Multi National Corporations (MNCs) • Eg Macs, Starbucks,KFC… 3. Local Community • Government • NGOs • Individuals

11. What do we know about how MNCs operate? • Do you know how the food of mass consumerism is produced? • Watch & Jot down the harmful practices mentioned in the clip • Think about Cause-Effect relationship ie. Why do corporations engage in such practices? • Does it then mean that there are no businesses which are ethical? Meatrix / FFN

12. 1. World Organisations • World TradeOrganisation (WTO) • World Bank • International Monetary Fund (IMF) How they facilitate Globalisation • Ensure stable economies and fair trading systems. • Checks and balances on global trade

13. World Trade Organisation • 123 member nations • Adheres to the economic belief that trade generates wealth for all in the long run.

14. IMF and World Bank • Belief: prosperity is linked to trade between nations and the capitalist way of operating. • The World Bank provides loans to poorer countries. • Often loans are given with strings attached • This can often worsen the problems for the poorer countries

15. World Bank • Poverty: aid in debt relief of nations by providing monetary aid (HIPC: Heavily Indebted Poor Country) • Health: Tackling Aids issue. • International conflict: Getting involved in early stages during post-conflict.

16. Critique of World Bank • under political influence of certain countries • Favor the installation of foreign enterprises.

17. IMF • Member states may request loans and/or organizational management • In return, the countries are usually required to launch certain reforms that prevents financial crises rather than funding financial recklessness.

18. Critique of IMF • 1980 - over 100 countries have experienced a financial collapse that reduced GDP by four percent or more • Delay in IMF response to a crisis • Tends to only respond to rather than prevent financial crisis

19. General Criticisms of the IMF & World Bank • Policies and programmes implemented sometimes erode gains made by local communities • Monopoly of power is fundamentally anti-democratic in structure and workings impact

21. Issues to consider: • Role of each organisation. • Whose interests are they working for? • What is their impact on developing and developed countries? • Critiques • Important cases

22. 2. Corporations • How they facilitate Globalisation • Ease of crossing national boundaries without as much restrictions as an individual will have. • Ability to provide range of services that local economy cannot produce.

23. Corporations • Issues to consider • Political aspect: Does a corporation have more say than a government? Are they able to regulate themselves? • Economic aspect: Profit-driven at the expense of societal needs and the environment? • Cultural aspect: Homogenising effect on culture? Or bringing in greater diversity?

24. Corporations Political Aspect: In 1990, the 100 most prosperous entities in the world comprised of 51 corporations and 49 nations. • e.g. of growing influence of corporation on governments • Who checks them? NGOs like Corporate Watch, Government rulings and consumers.

25. Corporations • Economic aspect Consider the impact of a profit-driven corporation on the environment: Corporations  Materialism  Exhausation of resources Evidence: • North American consumerism can be sustained by 3 earths. • If growth continues in 4 decades, 6-8 additional planets needed.

26. Corporations • Economic aspect Consider the impact of a profit-driven corporation on society: • Will workers receive a fair wage? • Will corporations put local stores out of business • Example: Walmart.

27. Corporation • Cultural aspect Prime example would be Mcdonalds. • How has Mcdonalds changed your eating habits? • To what extent is Mcdonalds a challenge to the local hawker centre? vids

28. 3. Local community • Government • Developed Nations • Control over economic investment, economic ruling bodies • Protection of own superior economic position • Third-World Nations • Lack of resources and technology • Inability to stand up to Globalisation without incurring severe costs

29. 3. Local community • Non-Governmental Organisations • E.g. environmental groups/charity groups, cultural nationalists • Addressing genuine problems but effectiveness is limited due to several factors • Poor organisation • Lack of unity • Lack of viable strategies • Inability to address global problems effectively

30. 3. Local community • Issues to think about: • Is there no alternative to Globalisation? (Is it inevitable?) • Are the alternatives better than Globalisation?