Англиски 4 - globalization

8/13/2019 4 - Globalization

1/11

University for Tourism and Management - Skopje

English Language 4

University for Tourism and Management Skopje

Faculty for Tourism

English Language 4

Theme:

Globalization and princip of Global Village

Zdravko Cacanoski Lecturer: Katerina

Vidova

10050

2011Winners and Losers


2/11


English Language 4

Globalization has drawn attention to itself as a consequence of its rapid acceleration. The spread andintegration of people, commerce, knowledge and culture across the planet has advanced since the dawnof civilization.

It is only over the most recent generation that, driven by the wonders of microchip technology and theefficiency of container shipping, the intensity of globalization has delivered controversial results.

The pace of change is most apparent in high and middle income countries. Most everyday householdgoods and clothing are imported from a single country, China; simple enquiries about banking orinsurance may involve a call centre in India; a globetrotting executive can sustain family intimacythrough social media tools.

These illustrations of globalisation are broadly positive in their effect on individuals, creating space forpersonal fulfilment, stimulating wealth and encouraging cross-cultural experience.

At national level, the economic opportunities presented by globalisation have been responsible in partfor the success of countries such as China, Vietnam and Brazil in achieving significant povertyreduction. But most low income countries have been less fortunate and there is rising concern that theglobal poor have been left behind in the slipstream.

Whereas sharply rising volumes of foreign trade and investment over the last twenty years havetransformed standards of living in industrialised countries, the number of sub-Saharan Africans livingin extreme poverty has risen.

Whereas internet technology has revolutionised our capacity for knowledge and interaction, swathes ofSouth Asia and Africa provide no electricity, let alone computers. Whereas the global supply chains ofour supermarket culture deliver exotic year-round affordable foods, over 900 million people in thedeveloping world experience hunger.

Contemporary globalisation is therefore linked with widening global inequality. The continuing post-colonial search for an effective development model for the losers of globalisation reflects the anxiety ofthe winners.

Washington Consensus

The sequence of major wars and economic depression that marked the first half of the 20th centuryinduced a profile of inward-looking states with closed economies.

The relative stability that evolved after 1945 boosted confidence. By the 1980s, most of the wealthierwestern economies had lifted capital controls, enabling foreign ownership of business assets.

Strong leadership of US president Reagan and UK prime minister Thatcher shaped the emergingideology of economic management.

This favoured a diminished role for government through privatisation of state-owned enterprises and


3/11


English Language 4

deregulation of barriers to foreign trade, investment and capitalist enterprise. These principles ofneoliberal or open market economics became known as the Washington Consensus.

The collapse of the Berlin Wall in 1989 added countries of the former Soviet Union to the western

template, its greatest moment of triumph. Even the major surviving communist regimes in China andVietnam had by then introduced doi moi (open door) policies as a gesture to market discipline.

Within this short space of time, the worlds major corporations had been presented with what they

desire above all elsea massive increase in the size of the market.

Integration of the global economy therefore became the driving force of globalisation. Many industrialand financial corporations quickly became larger entities than the developing countries with which theywere involved.

Exclusion from Globalisation

Such was the dominance of the Washington Consensus that it was imposed on the poorest countriesthrough the 1980s as a condition for World Bank and IMF support. As an economic template fordevelopment, the Consensus proved to be a disaster.

Government spending on health and education was curtailed, institutions coordinating state support foragriculture and nascent industries were dismantled and utilities were privatised without recognising theneeds of poorer customers.

Into the new millennium, the results were painfully clear. Whilst developed economies gorged onbooming international trade and investment, global poverty remained trapped in a parallel expandinguniverse.

Economic growth in Africa has been relatively strong but has tended to create urban elites, whilst rurallivelihoods remain primitive. India too has had very considerable success as a participant in theglobalised economy, yet over a third of the worlds extreme poverty remains located in that country.

If Chinas success in poverty reduction is removed from global figures for the period 1990 to 2005, thenumber of people living below the international poverty line of $1.25 per day has risen. This is a pooradvertisement for globalization.

Those who describe our world as a global village, in which we can understand and support each otherin our increasingly common lifestyles, overlook the exclusion of many countries from the opportunitiesof globalization.

A more accurate representation is of an interconnected world in which the actions, and more especiallythe excesses, of a consumer culture impact unjustly on those unable to enjoy its rewards. The threemajor contemporary crises of global recession, food insecurity and climate change can each beinterpreted in these terms.


4/11


English Language 4

In Search of a Development Model

Embarrassed by the global divide, world leaders signed up to the Millennium Development Goals,targets-based promises to direct new policy to the cause of poverty reduction. Whilst the neoliberal

Washington Consensus has been rejected for poor countries, no clear economic model of developmenthas taken its place.

Developing countries must build capacity for industrial and agricultural production. Ideally they shouldidentify potentially competitive sectors for export and support them with subsidies and protectivetariffs. This approach mirrors the historical development model for most of the worlds major

industrialised countries.

The grievance of todays developing nations is that global regulations for trade and inves tment denythem this critical policy space. In practice, globalization reinforces the monopolistic patterns of bigbusiness, erecting high barriers to entry.

The development model permitted by contemporary regulations seeks to attract foreign investmentthrough the creation of special economic zones, regions ring-fenced with business incentives such asstreamlined bureaucracy and low rates of tax.

The price of inclusion in globaliszation by this means can be high; foreign investment has limited valueto a developing country if no tax is paid, if no skills are transferred to local workers, if domesticbusinesses are forced to close and if no intellectual property rights are gained. Loss of nationalsovereignty is the undertone of globalization.

New jobs created by this model can be compromised by pressure to drive down wage levels, labourconditions and environmental standards. Corporate social responsibility departments of large westerncompanies are much exercised in vetting their production chains for sweathshop labour orenvironmental abuse.

Governance of Economic Globalization

The obstructive framework impeding the search for a development model is the product ofunrepresentative global governance. Whilst economic integration powered by private capital hasadvanced at lightning speed, political globalization moves at snails pace.

In more than twenty years since the fall of the Berlin Wall, governance structures of the World Bank,IMF and the World Trade Organization (WTO) have remained largely unchanged. Amendments tovoting rights of the Bank and the IMF boards advanced during 2010 have negligible effect. Governanceis therefore driven by economic power rather than democratic principles.

If the international rules for conduct of a globalised economy are created by the dominant participants,they are likely to prejudice those yet to gain a foothold. Trade, investment and intellectual propertyrights are the principal examples. In practical terms African governments have been largely excludedfrom the latest crisis discussions on international banking regulations.


5/11


English Language 4

International Migration

An alternative for the global poor is to seek work abroad. Globalization has commoditised labor

migration, notably in many Middle Eastern countries which are totally dependent on Asian migrants forthe dirty, dangerous and difficult jobs rejected by nationals.

Airlines construct their schedules to serve the routes taken by migrants; the receiving countries buildinfrastructure not just to accommodate foreign labor but also to create an appropriate culturalenvironment.

Payments, known as remittances, that are sent home by international migrants have become an

important measure of the performance of a globalized world economy. In 2009, remittances exceeded$300 billion, almost three times total foreign aid disbursements.

Opportunities for migrant workers can therefore be viewed as a positive characteristic of globalization.Many economists go further in advocating that free movement of labor would be the most effectivemeans of reducing global inequality.

However, the ideological passion for free movement of goods and capital extolled by many of thericher countries is not extended to people. Most rich countries impose strict regulations on labormigration.

The unacceptable branch of international migration is human trafficking. This has grown in parallelwith economic globalization, perhaps as a consequence of it. As extreme poverty and cross-bordermobility are the drivers of sex trafficking and other bonded labour, the suggestion of cause and effect isinevitable.

Environmental Limits

Inequality is not the only weakness of neoliberal economics that has been globalized. Failure of theglobal chain of production to internalize environmental costs means that globalization is acceleratingour headlong rush towards the limits.

Future generations will search in vain for rational explanations of why our common household goodsare transported half way around the world from China, not just once but a second time, in the reversedirection for the purpose of recycling.

Shipping and aviation are the engines of globalization. Although they contribute less than 5% ofcurrent greenhouse gas emissions, future projections rise sharply whilst other sources fall.Unfortunately, there are no obvious green substitutes for kerosene, nor for the dirty bunker fuel usedfor shipping.

Economic globalization also has less explicit implications for climate change and resource depletion.Until emissions trading schemes extend their reach, the manufacturing process in most parts of the


6/11


English Language 4

world incurs no costs for carbon dioxide emissions or use of water.

Rich countries with legal obligations to reduce greenhouse gas emissions therefore have incentives tooutsource their production to developing nations such as China. Globalization also moves virtual

water around the world, often from countries which can ill afford its loss.

Globalization is not itself responsible for these failures of open market economics. Indeed, if we couldidentify an alternative and sustainable economic model, then its globalization would become desirable.

Meanwhile, poorer countries will tend to be the losers when confronted with scarcity of food, water andnatural resources. Such scenarios also elevate the risk of violent conflict.

Good governance of globalization is once again the only avenue for equitable management of its risks.The current track record of UN institutions is not particularly inspiring. For example, the urgency oftackling climate change is not reflected so far in the outcome of negotiations to renew the KyotoProtocol.

Anti-globalisation

The 1990s slide towards greater poverty and environmental breakdown, together with the dilution ofpowers of developing countries to manage their own affairs, led to a strong public reaction againstglobal bodies deemed to be responsible.

For many activists, globalization had lost its broader meaning and become synonymous with theadvance of capitalism. Others went further and perceived globalization as Americanization, a new formof cultural imperialism.

The term anti-globalization therefore embraces a broad range of causes and is often associated withactivists who target meetings of G8 or G20 leaders, or international financial institutions. Anti-globalization campaigners unite around the belief that world governance is influenced too strongly bycorporate interests.

The World Social Forum (WSF) was created in 2001 as a counterweight to the World EconomicForum, an influential network of government and big business. Participants in the WSF strive toarticulate that another world is possible, a vision which puts people before profits.

A paradox of anti-globalization campaigns is their adoption of the same tools and techniques that driveeconomic integration. International activism has been galvanized by smart use of new communicationstechnologies.

Successful campaigns for aid and debt relief leading up to the Edinburgh G8 summit in 2005 wereassociated with synchronized world concerts and branding of theglobally recognizer white band.

Globalisation in Retreat


7/11


English Language 4

The 2008 financial crisis has proved to be an unlikely ally of the anti-globalization movement. Nogreater damage could be done to the creed of globalization than the extensive state ownership ofwestern banks that now prevails. World leaders convey a sense of fear of losing control of the sheercomplexity of the interdependent world created by globalization.

Labour migration rules are being tightened in many countries. American supremacy has softenedconsiderably and unemployment in that country has engendered a backlash against the free trademantra.

These hints of protectionism will undermine the further attempt during 2011 to complete the so-calledDoha development agenda. This round of trade negotiations facilitated by the WTO aims to increaseglobal trade through agreement to relax trade tariffs and quotas. Failure would be another signal ofglobalization in retreat.

Despite all these setbacks, globalization appears to be staggering back to its feet, having narrowlyavoided a knockout punch. No credible alternative global economic model emerged, even when theworld's investment banks were at the mercy of public opinion.

It seems possible that the anti-globalization movement has missed its golden opportunity. If this is so,then the planets major problems urgently depend on a new vision of globalization, recalibrated toaddress the mistakes of the past.

Global Village

As we know, the term Global Village is used to describe a situation where all the World is equal as avillage with 100 people. According to the data there, situation in the world is very clear. But, someanalysts made a different calculating with 1000 people, so the differences between some parts in thereligion or nationality is more specified. For example, if the world was village of 100 people, It wouldbe like this:

Nationality59 would be Asian14 ---------- African12 ---------- European9 ------------ Latin American5 ------------ North American1 ------------ South Pacific

Gender52 would be Female48 would be Male

Age70 would be adult30 would be children


8/11


English Language 4

Skin color30 would be Caucasian70 would be non-Caucasian

Sex orientation90 would be heterosexual10 would be homosexual

Literacy86 would be able to read14 wouldn't be able to read

Education1 would have a collage education99 haven't collage education

Electricity76 would have electricity (mostly will use it for light at night)24 haven't

Freedom of speech52 can speak free48 can't speak free (afraid for their life if they speak free)

Births/Deaths (in one year)2 will be born1 will die

Fear factor80 don't fear about their lives20 live in fear for their lives (from bombing, terrorist attacks, natural disasters)

Water83 will have clean water17 don't have

Air68 breath clean air32 breath polluted air

Money6 own 59% from the money (all from USA)74own 39% from the money


9/11


English Language 4

20 own 2% from the money

FOODStarvation

1 is dying of starvation15 is overweight

Source50 don't have reliable resource of food30 always have enough to eat20 are undernourished

Computers (with Internet)7 have computers93 don't have computersHIV1 have HIV99 don't have HIV

Energy20consume 80% of the energy80 consume 20% of the energy

Religion33 would be Christians21 Muslims15 Hindus6 Buddhists5 Animists6 other religions14 without religion or atheists

Language

15 speak Chinese (Mandarin)7 English6 Hindi5 Russian4 Arabic3 Bengal3 Portuguese51 would speak some other language like Indonesian, Japanese, German, French ...

Sanitation56 have access to sanitation44 don't have


10/11


English Language 4

The other, more accurate calculation, is the World Village 1000. This is represented like this:

If the world were a village of 1000 people:

584 would be Asians123 would be Africans95 would be East and West Europeans84 Latin Americans55 Soviets (still including for the moment Lithuanians, Latvians, Estonians, etc.)52 North Americans6 Australians and New Zealanders

The people of the village would have considerable difficulty communicating:165 people would speak Mandarin86 would speak English83 Hindi/Urdu64 Spanish58 Russian37 ArabicThat list accounts for the mother-tongues of only half the villagers. The other half speak (in descendingorder of frequency) Bengali, Portuguese, Indonesian, Japanese, German, French, and 200 otherlanguages.

In the village there would be:300 Christians (183 Catholics, 84 Protestants, 33 Orthodox)175 Moslems128 Hindus55 Buddhists47 Animists210 all other religions (including atheists)

One-third (330) of the people in the village would be children. Half the children would be immunizedagainst the preventable infectious diseases such as measles and polio.Sixty of the thousand villagers would be over the age of 65.Just under half of the married women would have access to and be using modern contraceptives.Each year 28 babies would be born.Each year 10 people would die, three of them for lack of food, one from cancer. Two of the deathswould be to babies born within the year.One person in the village would be infected with the HIV virus; that person would most likely not yethave developed a full-blown case of AIDS.With the 28 births and 10 deaths, the population of the village in the next year would be 1018.


11/11


English Language 4

In this thousand-person community, 200 people would receive three-fourths of the income; another 200would receive only 2% of the income.Only 70 people would own an automobile (some of them more than one automobile).About one-third would not have access to clean, safe drinking water.

Of the 670 adults in the village half would be illiterate.

The village would have 6 acres of land per person, 6000 acres in all of which:700 acres is cropland1400 acres pasture1900 acres woodland2000 acres desert, tundra, pavement, and other wasteland.The woodland would be declining rapidly; the wasteland increasing; the other land categories would beroughly stable. The village would allocate 83 percent of its fertilizer to 40 percent of its cropland -- thatowned by the richest and best-fed 270 people. Excess fertilizer running off this land would causepollution in lakes and wells. The remaining 60 percent of the land, with its 17 percent of the fertilizer,would produce 28 percent of the foodgrain and feed 73 percent of the people. The average grain yieldon that land would be one-third the yields gotten by the richer villagers.

If the world were a village of 1000 persons, there would be five soldiers, seven teachers, one doctor. Ofthe village's total annual expenditures of just over $3 million per year, $181,000 would go for weaponsand warfare, $159,000 for education, $132,000 for health care.

The village would have buried beneath it enough explosive power in nuclear weapons to blow itself tosmithereens many times over. These weapons would be under the control of just 100 of the people. Theother 900 people would be watching them with deep anxiety, wondering whether the 100 can learn toget along together, and if they do, whether they might set off the weapons anyway through inattentionor technical bungling, and if they ever decide to dismantle the weapons, where in the village they willdispose of the dangerous radioactive materials of which the weapons are made.

Англиски 4 - globalization

Documents