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General Analysis on Globalization of the Economy
Source: Federal Observer
With international trade, financial transfers, and foreign direct investment, the economy is increasingly internationally interconnected. This page analyzes economic globalization, and examines how it might be resisted or regulated in order to promote sustainable development.
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Globalization of the Economy
Articles and Documents
2008 | 2007 | 2006 | 2005 | Archived Articles
Globalization and Development (April 2002)
This Economic Commission for Latin America and the Caribbean (ECLAC/CEPAL) report looks at the transformative social and economic effects of globalization in the ECLAC/CEPAL region. The report includes an excellent analysis of income inequality and “fundamental asymmetries of the global order,” and advocates a rights-based social agenda for the region.
Talk given by Susan George at the "Conference on Economic Sovereignty in a Globalising World." She provides a critical historical account of neoliberalism and calls for mobilization against it.
2008
Banking on Change: Towards an Economic System that Works for People and the Planet (November 2008)
The G20, the world’s twenty leading countries, should not decide on global economic politics on behalf of the entire world population. Civil society organizations argue that all governments and civilians must collaborate to build a new set of principles that strengthen national and local economies. For instance, governments should renegotiate free trade agreements, control capital flows, call for debt cancellation and close tax havens. (Choike)The Economics of Global Democracy (November 4, 2008)
The neoliberal promise of market-led “economic freedom” has not brought wealth and economic freedom for everyone. Twenty percent of the world’s citizens consume more than eighty percent of the world’s goods. Without resources such as education and food security, the majority of the world’s population has fewer possibilities to improve their situation. (Share the World’s Resources)Food and Markets: A Crisis of Faith (September 30, 2008)
This article argues that the financial crisis provides an opportunity for world leaders to review their political performance. They can continue to rely on a "self-regulating" market, which caused the crisis. Or they can put forward a new agenda for food security and redistribution of the world’s resources. (Share the World’s Resources)Wall Street Meltdown Primer (September 26, 2008)
In this article, Walden Bello analyzes the history of finance-driven capitalism and argues that overproduction, greed and speculation are key factors behind financial crises. Neoliberal economic policy produces speculative bubbles with short-term profits for very few actors. The author warns that the collapse on Wall Street will spread and translate into an Asian recession. (Foreign Policy in Focus)Shipping Costs Start to Crimp Globalization (August 3, 2008)
Rising fuel prices are forcing companies to rethink their production. Instead of outsourcing manufacturing, companies like IKEA are opening factories closer to consumers. Many experts are also concerned about the environmental impact of the emissions-intensive model that involves far-reaching supply chains. Economists dispute whether rising oil prices will have asignificant impact on global trade. Some say that globalization trends will reverse, while others argue that companies consider factors other than transport costs, including exchange rates and labor costs. (New York Times)Spreading the Benefits of Globalization (March 26, 2008)
Increasingly, the public, economists and development analysts are questioning whether globalization has delivered on its “promised benefits.” Various reports show a trend of increased inequality in the world, between the North and the South, but also within both poor and rich nations. The author concludes that a tiny group at the top of global society reaps the rewards of globalization, while the vast majority of people miss out. He supports drastic re-distribution from the top down, such as increasing income tax for top earners, and eliminating income tax for those earning less than a given average national income. (World Economy & Development in Brief)Spreading the Benefits of Globalization (March 26, 2008)
Increasingly, the public, economists and development analysts are questioning whether globalization has delivered on its “promised benefits.” Various reports show a trend of increased inequality in the world, between the North and the South, but also within both poor and rich nations. The author concludes that a tiny group at the top of global society reaps the rewards of globalization, while the vast majority of people miss out. He supports drastic re-distribution from the top down, such as increasing income tax for top earners, and eliminating income tax for those earning less than a given average national income. (World Economy & Development in Brief)Globalization 'Localizes' Inequality (March 11, 2008)
Global income inequality between rich and poor countries is decreasing says Inter Press Service. The UN Conference on Trade and Development (UNCTAD) reports that real per capita incomes are on average 18 times higher in richer nations than poorer nations, compared to 24 times higher in 1980. But, this data fails to explain why poverty and hunger are increasing worldwide. In fact, economic inequality within richer and poorer nations has also increased markedly, leading to violent protests in India and large-scale demonstrations in China.Globalization and War (March 10, 2008)
Political scientist Susan George argues that “corporate-led, finance-driven globalization” has led to huge and ever increasing inequality. Globalization has been good to those in the tops of societies, but the system as a whole faces crisis: The World Trade Organization finds itself in deadlock, and institutions such as the World Bank are less important than before. George argues that scarcity of food and water, climate change, and the risk of an economic recession will place further, extreme stress on the world system and will lead to increased violent conflict. (Transnational Institute)Widespread Unease about Economy and Globalization: Global Poll (February 7, 2008)
The international polling firm GlobeScan conducted this poll for the BBC World Service, in order to document attitudes towards globalization and the global economy. According to GlobeScan President Doug Miller, the results illustrate that “there is real public unease about the direction of the economy, but it’s not only about a downturn. It also has to do with how fairly benefits and burdens are shared, and the pace of globalization.”2008: The Demise of Neoliberal Globalization (February 4, 2008)
Immanuel Wallerstein argues that in the global economic system, two main ideologies have always been “cyclically in fashion”- neoliberalism and Keynesian thinking. He argues that neoliberalism and the unrestrained market system it advocates have led to global financial turmoil. Consequently, the public and economic policy makers are moving back towards Keynesian and more socialist thinking. Wallerstein asks whether this shift in ideology will be able to restore economic order despite the damage done by neoliberal policies. (Yale Global)Globalization's Positive Power (January 8, 2008)
According to Nobel laureate and economist Joseph Stiglitz, globalization can have a positive outcome, but only if developing countries are able to “take advantage of globalization, rather than be taken advantage of.” He points out that India and China have resisted US pressure for neoliberal reforms such as the privatization of state assets and have created “stronger societies” by doing so. (New Statesman)
2007
The Global Establishment and Global Inequality (November – December 2007)
This World Economy and Development article examines how institutions that traditionally championed unregulated globalization are now taking a more critical approach. The International Monetary Fund holds financial globalization responsible for increased income inequality over the last two decades, while conservative newspapers such as the Wall Street Journal and the Financial Times have started looking at “how the other half lives.”Trade Unions and Globalisation: Enlarging Agendas (November 22, 2007)
In response to growing economic globalization, more integrated global markets and international production systems, trade unions across the globe are joining forces. The unions increasingly coordinate their work to advocate international labor standards and rules of conduct for transnational companies. They encourage national governments to secure “proper regulation, taxation and transparency” for private sectors. (World Economy and Development)Wanted: A New Global Paradigm (November 8, 2007)
The author of this openDemocracy article is excited about the revival of the Club of Rome, a group of academics, bankers, development specialist, and former ambassadors and foreign ministers who meet to discuss development policy. The members of the group have expressed concern about the unfair international trade system, insufficient measures taken to reduce climate change and governments’ excessive security and military spending. They call attention to the “real understanding of the underlying causes of insecurity,” such as the unequal access to resources. The author suggests that the ideas of the elite group have great potential and its resurgence signals progress for reforming globalization.Managing Globalization: Isolation Is Not the Answer (October 30, 2007)
This article addresses issues of “economic nationalism,” a sentiment that appears to be growing in the US. Globalization opponents argue that economic independence is vital for national security. Critics disagree and say that security increases when a country can draw resources from a wide range of sources. Interdependence and integration in global markets promote peace, not conflict, they argue. (International Herald Tribune)Inequality in India and China: Is Globalization to Blame? (October 15, 2007)
The Asian continent has experienced increasing economic inequality over the last two decades. Critics suggest increased exposure to international market is to blame. On the other hand, the author of this YaleGlobal article argues that the expansion of industrialization in countries such as China and India has created many jobs and lifted a lot of people out of poverty. But, in both countries poverty declined prior to economic liberalization. The author argues that the Indian and Chinese case studies alone cannot illustrate whether globalization causes inequality or the other way around.Does Globalization Bring War or Peace? (September 24, 2007)
This AlterNet article explores the relationship between international trade and conflict. The author finds that high levels of trade acts as an accelerator for either cooperation or conflict. Whether cooperation or conflict occurs, depends on the structure of a country’s domestic economic institutions and which domestic sectors are dominant in international exchange - primary, industrial, or even military products. The author also argues that trade can promote cooperation if the political elite are affiliated with productive and competitive industries or alternatively whether the elite are involved in industries less successful in international trade. The author warns against viewing trade and economic independence as a protection against war or conflict.Globalization Was Good Then, Not Now (September 17, 2007)
Rich countries have long been preaching to their poorer partners about the supposed benefits of economic globalization. They have argued that economic growth can only be achieved through open markets and free trade. Some developing countries such as China and India have listened to the suggestions and actually achieved substantial growth and global competitiveness. With the increased influence of these emerging economies, rich countries are experiencing many of the negative effects following global economic integration. In the US, protests against outsourcing, foreign investment and increasing income inequality are growing and politicians skeptical of globalization capture larger shares of the public vote. (YaleGlobal)The Post-Washington Dissensus (September 17, 2007)
This article from the Inquirer gives a detailed analysis of the trends in international economic policy following the neo-liberal Washington Consensus. The discussion covers the World Bank’s Poverty Reduction Strategy Papers, neo-liberalism and neo-structuralism. The article also looks at “global social democracy” as represented by economists Jeffrey Sachs and Joseph Stiglitz, a take on global economics that values equity before growth. Although this view is a radical departure from the original Washington Consensus, Sachs and Stiglitz still argue that economic globalization can bring benefits. The author argues that globalization as the most recent stage of capitalism is merely an attempt by capitalists to overcome their “crisis of overaccumulation, overproduction and stagnation,” that does not benefit the poor countries.Globalization: End of the Beginning — or Beginning of the End? (September 11, 2007)
This Globalist article compares the US and Chinese economies following decades of economic globalization. The two countries are experiencing equally worrisome levels of income inequality and turbulence in their financial markets. This has caused fear, even among pro-globalization advocates. The author suggests that the global economy is headed towards a rough patch. He does not necessarily advocate for an end to globalization but rather a reform of the nature of globalization as we know it. He predicts that the structure of the global economy will have to change to counter the wide global and national disparities.Rescuing Globalisation From its Cheerleaders (August 24, 2007)
This Business Daily Africa article discusses Professor Dani Rodrik’s paper “How to Save Globalization from its Cheerleaders.” Rodrik criticizes the “new conventional wisdom,” which insists that only through further trade liberalization will people in both rich and poor countries benefit from globalization.Globalization has not provided the benefits its “cheerleaders” promote. Governments still restrict the movement of labor between countries – an area which if opened up has huge potential economic benefits. Rodrik suggests that in order to better reap the benefits of economic globalization there must be “legal, institutional, [and] political integration.”Region to Have Single Currency by 2012 (August 20, 2007)
The leaders of six East African countries, Uganda, Rwanda, Burundi, Kenya, Tanzania and Zanzibar, met to decide whether by 2012 East Africa will have a single currency and a common market, which will allow the free movement of people. Kenya and Uganda demonstrated great support for fast-tracking the East Africa political federation, whose goal is to have a federal president and parliament by 2013. Tanzania on the other hand is concerned that a federation may threaten its sovereignty and security and lead to corruption. (New Vision)Sharing in the Global Economy (August 13, 2007)
An estimated 2.7 billion people live on less than US$2 a day, while the number of millionaires has increased 80 times since the 1980s. Within the globalized world, power has moved away from governments to large transnational corporations and global institutions. Corporate led economic growth and free trade leads to environmental degradation, growing inequalities and resource depletion. The authors advocate a principle of sharing, in which decision makers acknowledge universal access to resources such as food, water, shelter and medicine. (Share The World’s Resources)Going Global for Good (July 9, 2007)
UN Secretary General Ban Ki-Moon argues that whereas the first stage of globalization benefited mainly rich countries, the second and current stage “the Age of Mobility” of people, also brings riches to the poor. In 2006, migrants sent $264 billion – “triple all international aid combined” – in remittances to their home countries. Still, Ban argues, migration has so far mostly “benefited richer countries and generated worries about brain drain in poorer ones.”(The Washington Times)In India, Outsourcing Moves to the Top Floor (April 3, 2007)
The migration of low-skill service industry jobs to developing countries has become a common practice for many transnational corporations. However, this International Herald Tribune article reports that an increasing number are also outsourcing jobs in fields “which once epitomized the competitiveness of Western economies,” such as aeronautical engineering, investment banking and drug research. Although some analysts argue that “the US will progressively become less predominant for US corporations,” economists predict that this shift will rather encourage the growth of professions in the West “that must be rendered in person,” like the police or clinical medicine.The Integrated Economy as A Cause of War (February 20, 2007)
This International Herald Tribune article argues that, in addition to causing “a host of other evils,” globalization may contribute to increased civil and international conflict. The author cites increased inequality and natural resource shortages as factors of globalization that may “add fuel to war’s bonfires.”Inequality Rising Despite Promises of Globalization, UN Expert Says (February 9, 2007)
Although proponents of globalization predicted it would result in a “more equitable world with equal opportunities,” global inequality both between and within countries has instead increased. A United Nations senior economist has stated that “full, productive and decent employment”—not economic liberalization—is the only way to effectively reduce poverty and narrow these global income gaps. (UN News)Controlling the Locusts: Baby Steps Against Hedge Funds (February 8, 2007)
This Der Spiegel article reports that, without greater international regulation, the collapse of any one hedge fund could devastate the world’s financial markets, hinder economic growth, and cause mass international unemployment. German Chancellor Angela Merkel has called for the world’s leading industrial countries to discuss increased oversight on the US$1.3 trillion hedge fund industry at the February 10 G8 meeting in Essen, Germany.The False Promise of Financial Liberalization (January 22, 2007)
Wealthy nations and international economic institutions, such as the IMF, the World Bank, and the WTO, have long promoted foreign financing as the fastest way to stimulate growth in emerging economies. In reality, argues this Project Syndicate article, this financial liberalization has done just the opposite. The surge in capital inflows appreciates the developing country’s currency, causing decreased investment and slowing economic growth.Public Interest Demands Hedge Fund Rules (January 12, 2007)
Despite an almost 500 percent growth in the hedge funds market over the past decade, regulation of the high-yield investment companies has remained stagnant. As these financial institutions now account for 18 to 22 percent of all trading volume on the New York Stock Exchange, Randall Dodd, director of Financial Policy Forum, argues that this lack of oversight may pose a serious threat to public interests, especially considering the “fraud, embezzlement, and market trading abuses” historically linked with hedge funds. (Policy Innovations)
2006
The Globalization Index 2006 (November-December 2006)
In this sixth annual Globalization Index report Foreign Policy and A.T. Kearney rank 62 countries, accounting for 85 percent of the world’s population, according to their degree of globalization as measured by 12 variables. The variables fall in the four categories of economic integration, personal contact, technological connectivity, and political engagement, revealing also “the very different ways that countries are opening themselves up.” Throughout the report, the authors imply that more globalization is always better. However, despite this clearly positive and seemingly uncritical view of globalization, the report acknowledges that “highly globalized nations spew more carbon dioxide per capita than less globalized countries.”Chain-Gang Economics (October 30, 2006)
In this Foreign Policy in Focus piece, Walden Bello argues that the economic relations between China and the US chain the global economy together in a “crisis of overproduction.” Restrictive Chinese rules on trade and investment force transnational corporations (TNCs) operating in China to locate the majority of their production processes in the country, making the TNCs major “agents of overinvestment.” At the same time, Chinese authorities continue exploiting the country’s cheap labor by keeping wages down instead of expanding people’s purchasing power. Thus impeding domestic consumption, China has chosen breakneck growth feeding the spending appetite of US consumers over domestic and global stability, argues Bello.The Three Rounds of Globalization (October 19, 2006)
Identifying “three rounds of globalization,” this Globalist article argues that “globalization is not a new thing.” The exchange of ideas between ancient civilizations – the first round – fueled the rise of the West with industrial revolution and imperialism – the second round. Likewise, the transfer of Western ideas feeds the present rise of India and China – the third round. By these dynamics, the world is returning towards global equity, where India and China have a share of world income roughly similar to their share of people – as in the early 19th century. While appreciating this return to international equity as a “moral imperative,” the author fails to consider to what extent the economic development of these Asian countries takes place at the expense of domestic equity and the environment.How to Fix the Global Economy (October 3, 2006)
World leaders increasingly agree on the unsustainable nature of the global financial imbalances represented by an enormous US trade deficit and China’s growing trade surplus. Economics professor Joseph Stiglitz appreciates the growing attention given to the problem, but regrets that responses seem to address only symptoms rather than “the larger systemic problem.” Stiglitz argues that neither a strengthening of the Chinese Yuan nor a cut in US governmental expenditures alone will solve the problem. Instead, expenditure cuts combined with increased upper-income taxes and reduced lower-income taxes in the US will create the necessary incentives. (New York Times)On the Hedge Fund Question: A Program of Reckless Complacency (October 2006)
In this piece, Randall Dodd of Financial Policy Forum reacts to the "reckless complacency” of a Bank of International Settlements (BIS) senior official, who states that hedge fund operations do not constitute any significant problem in the context of international financial stability. Dodd argues that banks cannot be relied upon to oversee hedge funds in a way that protects public interests, and makes the case for ‘prudential regulation’ of hedge funds, ensuring codification of registration, reporting and capital requirements.Across Latin America, Mandarin Is in the Air (September 22, 2006)
Particularly since Chinese President Hu Jintao’s visit to Latin America in 2004, relations between China and Latin America have strengthened. The total value of trade between them increased dramatically from US$10 billion in 2000 to US$50 billion in 2005. Similarly, the number of people across Latin America taking Chinese classes has increased substantially, this Washington Post article reports. With Latin America being the prime destination for Chinese investors, Latin Americans understand the importance of communicating in Mandarin.Making Globalization Work (September 8, 2006)
Coinciding with the publication of his latest book, “Making Globalization Work,” Nobel laureate and former World Bank chief economist Joseph Stiglitz in this Guardian article insists he does not oppose globalization, but rather agrees it “has enormous potential.” However, Stiglitz argues that if governments wish to sustain globalization and avoid voters putting a stop to trade, they must manage it properly. Looking to the Scandinavian countries, Stiglitz asserts that by investing in education, research and strong social safety nets, governments can curb rising inequality and create more productive economies with higher living standards for all.The Rebirth of Populism in Latin America Poses a Powerful Challenge to the Neoliberal Order (August 22, 2006)
This Council on Hemispheric Affairs report suggests that the resurgence of populism in Latin America diametrically opposes the neoliberal reforms trumpeted by the Washington Consensus in the 1980s. Public figures such as Venezuelan President Hugo Chavez represent the populist wave. Masses rally behind a charismatic leader who addresses their social unrest, denouncing the US and its political and trade policies. The author predicts that this rejection of a universal style of “progress” may increase the prevalence of populism in poorer countries, even if it detracts from formal democracy.Why the WTO Doha Round Talks Have Collapsed – and a Path Forward (August 14, 2006)
The question of who to blame dominates analyses of the Doha Round collapse. This Common Dreams article instead argues that the underlying cause lies in people’s rejection worldwide of the “WTO model of corporate globalization.” Trade rules in the “WTO decade” have only benefited a small corporate elite and have constrained domestic policy making. The authors argue for an alternative to corporate globalization and regional trade agreements. They urge US citizens to take action and demand change in their country’s position on international trade, as citizens in many other countries have succeeded in doing.The Death of Doha Signals the Demise of Globalisation (July 13, 2006)
Past World Trade Organization (WTO) rounds have promoted globalization, increasing freer movement of trade and capital. However, in the Doha Round US, EU, and Japanese resistance to globalization dominates. The United States increasingly embraces bilateral trade agreements as poor countries such as China, India, and Brazil gain more clout in the WTO negotiations. The author notes an “unwillingness to make concessions” among rich nations amidst growing fears of growing Chinese economic power. (Guardian)Globalization and Growing Disparities (July 7, 2006)
For two decades, “protagonists” of the Washington Consensus have promised that neoliberal policies would soon make everyone better off. Yet, these policies have failed to reduce hunger, malnutrition and poor health conditions. Inequality keeps rising. Looking at India, the author warns that large inequalities could lead to social unrest that could undermine the very conditions for economic growth in the country. Some Latin American countries, on the other hand, “have begun prospering only after discarding the Washington consensus.” (ZNet)Globalization: When Cure Is Worse Than Malady (June 27, 2006)
The author argues that US and European moves towards nationalism, or “patriotic globalism,” come with more negative consequences than globalization itself. Politicians who feel pressured to choose between the “efficiency imperatives of economic growth” and the “personal security desires of an increasingly frightened and disoriented body public” cannot effectively address the most urgent social and political needs because of a split electorate. Increasingly rigid US immigration bills and the unsatisfying rule of Silvio Berlusconi in Italy demonstrate the harms of decisions made out of fear. (YaleGlobal)Preface to “Global Poverty or Global Justice?” (June 2006)
Looking at structures of power and inequality in the world, this preface discusses obstacles to and prospects for achieving global justice. The lack of international democratic processes and institutions greatly impedes global justice, but it conveniently suits the interests of the “present masters of mankind.” However, the author argues, great promise lies with the “global justice movement.” The author finds encouragement in tendencies such as a growing realization worldwide of neoliberalism’s injustices, the increasing ease with which global justice alliances can form, and mounting support for global taxation as a source of funding for development projects. (Transnational Institute)The Hijacking of the Development Debate (Summer 2006)
This World Policy Journal article criticizes Jeffrey Sachs and Thomas Freidman’s approach to end poverty, which advocates effective aid and open markets to help poorer nations climb the “development ladder.” Donor countries often channel aid in a way that increases income inequalities and, open markets tend to benefit big corporations. To redress this, the alter-globalization movement comprised of farmers, students and environmentalists, promotes development through redistribution of political power and wealth. Contrary to Sachs and Freidman who use monetary values to assess development, the movement uses indicators like democracy, sustainability, food security, and human rights.Unbridled Capitalism Will Lead to Very Real Problems (April 17, 2006)
In this interview, Harvard economist Kenneth Rogoff warns that the unfair distribution of wealth within most countries will lead to serious social tensions all over the world. As big company profits reach record highs, an ever-smaller percentage of the population gains from high economic growth rates, while most workers see their wages stagnate. As a result, governments could lose public support for policies promoting deregulation of market activities. (Spiegel)Could Globalization Fail? (April 13, 2006)
As happened with the “first globalization” and its Wall Street Crash of 1929, an economic rather than a political crisis could reverse today's process of globalization. But this time, the crisis is more likely to errupt from global economy’s dependence on transnational corporations (TNCs) than from global financial imbalances. While relying highly on the middle-class consuming their goods, TNCs at the same time undermine middle-class people’s ability to consume by moving ever more “white-collar” jobs to poorer countries. (YaleGlobal)Globalisation, Liberalisation, and Protectionism (April 2006)
This Third World Network report focuses on the role of the International Financial Institutions (IFIs) and the World Trade Organization (WTO) in causing global economic imbalances. The report critiques IFI policies such as loan conditionality and suggests that the WTO could lessen economic imbalances by addressing commodity prices and supply capacity in poor countries.Does Globalization Help or Hurt the World’s Poor? (March 26, 2006)
This article reviews arguments for and against the idea that globalization has benefited the world’s poor over the last few decades. According to Scientific American, the answer is neither a simple yes or no. While the spread of foreign trade and investment has increased work opportunities for many people in poor countries, national political decisions continue to have the biggest influence on poverty levels.Political Struggles Will Determine Better Globalisation (March 15, 2006)
Based on the article The Sources of Neoliberal Globalization by Jan Aart Scholte, this South Centre publication offers a historical-sociological background on the neoliberal influence on globalization. It looks at four interrelated forces that have generated and sustained neoliberalism since the late 70s, namely governance, production, knowledge and social networks. Focusing on the exclusive nature of social networks supportive of neoliberalism, the article calls for a broader advocacy of alternative ways to shape globalization.Meet the Losers of Globalization (March 8, 2006)
Many analysts see India as one of globalization’s big success stories due to its economic growth rate of 7% in 2005. Nevertheless, many people, especially in the poorer northern regions, can no longer afford their former living standards, since consumer prices grow around 4% every year. With most Indians not educated sufficiently to compete in the new, flexible labor market and with environmental damage on the rise, criticism of India's rapid economic liberalization is getting louder. (Der Spiegel)The Economics of Outsourcing: How Should Policy Respond? (March 2, 2006)
This Foreign Policy In Focus policy report describes how globalization impacts the US domestic economy and results in outsourcing of jobs to regions with lower labor standards. The report suggests that the United States create policies and coordinate with other countries to address issues of tax competition, undervalued exchange rates, and productivity. Governments should cooperate on a global scale to create policies that serve the political and social interests of citizens throughout the world, rather than addressing only economic growth.When Globalization Leaves People Behind (February 12, 2006)
With a doubling in incomes since the mid-1980s and foreign investment up five times since the mid-1990s, India represents a globalization success story by purely economic measures. But poverty has fallen comparatively slowly and India still has the world’s largest population of malnourished people. As in many poor countries, people could benefit much more from globalization if the government would seriously increase spending on education, health care and rural development. (International Herald Tribune)Unpopular Globalization: Why So Many Are Opposed (February 2, 2006)
Many US and European citizens blame globalization for causing economic problems, like poor health care services or high unemployment rates. Although economic liberalization often fails to deliver better living conditions, it is the governments’ role to make globalization meet people’s needs. With wages in stagnation since 2000 and corporate profits increasing constantly, taxing corporations would be a good first step. (YaleGlobal)
2005
What Can a Nation Do? Taming the Globalization Monster (December 26, 2005)
Many people fear that globalization decreases nations’ capacities to deal with economic and social challenges. This article argues that the problem is not the global market, but rather the absence of national and international regulation of the market, including of transnational corporations (TNCs). In addition, the author argues that people can exert power over TNCs through their consumption habits. (Der Spiegel)Globalization Failing to Create New, Quality Jobs or Reduce Poverty (December 9, 2005)
Neoliberal globalization is failing “to translate into new and better jobs that lead to a reduction in poverty” says a report from the International Labour Organization (ILO). According to ILO’s figures, half the world’s workers do not enjoy decent work conditions, and cannot lift themselves above the poverty line. The report points out that world leaders have still not made poverty reduction a priority."In a Situation Like This, Who Cares About Human Rights?" (October 5, 2005)
The World Bank views Export Processing Zones (EPZ) as an excellent option for poor countries to join the global market. This article describes the conditions of an EPZ on the outskirts of Nairobi, where workers earn three dollars a day without any form of benefits. Rather than liberate people worldwide, the free market has created a new slavery. (Inter Press Service)Monkey-Wrenching the Globalization Gang (August 25, 2005)
Is it possible to trace a parallelism between Colonialism and Neoliberalism, two different forms of domination? The author affirms that phrases like ‘building freedom through trade,’ ‘good governance,’ ‘working for a world free of poverty’ actually hide a new form of imperialism. The World Bank, the International Monetary Fund, the World Trade Organization, and even the UN lead this process of “neoliberal capture.” (Toward Freedom)The G8, Globalisation, and the Last Wave (June 30, 2005)
This Ethical Corporation article examines the “three great waves of globalization” and the role of corporations in shaping human history. “More than any time in history, humankind faces rival and increasingly incompatible viewpoints and realities, with the role of corporations front and centre.” World citizens face “two dramatically different roads”— the road that continues the self-serving behavior of global competition for dwindling resources, championed by corporations, and a road that promotes adaptation and rethinking of our lifestyles and corporate behavior to ensure a better tomorrow.China Seeks Known Brands to Go Global (June 30, 2005)
Rather than continue the “race to the bottom” and become the world’s “low-cost factory floor,” China is eyeing the global market with newfound ambition. While Japanese brands took years to gain global recognition, China is taking a shortcut—through acquisitions and mergers, Chinese companies are obtaining foreign assets and “going global” with the country’s own “famous brands.” China has fixed its sights on a higher position in the global market. Whether or not this will help the plight of exploited Chinese laborers remains to be seen. (New York Times)Globalization: It's Not Just Wages (June 17, 2005)
The German workers’ quality and expertise are motivating companies to retain production facilities in Germany, despite high labor costs. While Unskilled laborers do most of the production in China and Mexico at a fraction of the cost, some companies like the appliance maker Whirlpool are involved with a “relatively new form of globalization that emphasizes first-rate centers of production and design in various countries - including the United States.” This appreciation of workers’ quality and expertise is protecting German and US jobs from being outsourced to cheaper labor markets. (New York Times)Globalization Game (May 31, 2005)
In an attempt to cut the ballooning trade deficit, the US administration has been pressing China to revalue its currency. But according to this Boston Globe opinion piece, the real reason behind the trade imbalance does not lie in exchange rates but in the fact that "globalization is broken." Globalization has evolved into a kind of pyramid scheme, in which the US must "consume and borrow ever more while foreign banks buy ever more US Treasuries so their producers can export ever more." Quick fixes like adjusting the exchange rate will not solve the problem; the only way to avoid a global economic crisis is to "insist that the globalization game be played the same way by all its players," the author argues.Nobel Prize Winner Joseph Stiglitz Speaks on Globalization (April 11, 2005)
In his lecture at Hamilton College, economist Joseph Stiglitz touched upon the asymmetrical nature of globalization. As examples he mentioned rich nations’ agricultural subsidies that create an uneven playing field for poor countries’ exports, and intellectual property rights that can deprive poor countries of life-saving medicine and technology. Even in the United States that “has benefited enormously from globalization,” only some people are experiencing the benefits, Stiglitz noted. (Hamilton College News)Bhagwati, Globalization and Hunger (March 29, 2005)
Could the infamous agricultural subsidies actually benefit consumers in poor countries by making food imports cheaper? This is what prominent economists like Jagdish Bhagwati have suggested, but the author of this Dissident Voice article disagrees. Cheaper imported food will not help the three billion farmers in poor countries as long as rich nations’ subsidies prevent them from earning enough money to buy the imports, the author argues.Sinking Globalization (March/April 2005)
World War I sank “the first age of globalization” by bringing an abrupt end to the preceding period of increasing international trade, investment and migration. Could the rapidly expanding global economy we live in suddenly disintegrate in a similar manner? Pointing out similarities and differences between the present and 1914, this Foreign Affairs article argues that such a scenario is indeed possible, although it is virtually impossible to predict its likelihood.Shut Up and Shop! Thinking Politically About Consumption (January 5, 2005)
This paper addresses the consumerist aspects of globalization by examining the links between global consumption, environmental politics and political economy. It argues that consumerism leads to environmental degradation and hinders sustainability. The author also investigates the role of consumption in reproducing global capitalism. (Political Theory Daily Review)
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