Globalization: the integration of regional economies, societies, and cultures through globe-spanning networks of communication and

development.

The “Global Village”

Globalization has changed the world permanently, for both better

and worse.

Path to globalization:

• After World War II, politicians wanted to break down borders hampering trade, to increase prosperity and interdependence thereby decreasing the chance of future war.

• They formed a framework for international commerce and finance...

• ...and founded several international institutions intended to oversee the processes of globalization, to mediate trade disputes and set up a uniform platform of trading, in pursuit of the goal of reducing tariffs and barriers to trade

Examples:

• The World Bank

• The International Monetary Fund

• The World Trade Organization

• Europe's Maastricht Treaty

• The North American Free Trade Agreement (NAFTA)

Globalization has various aspects which affect the world in several different ways

Ecological impact: cross-boundary water and air pollution, over-fishing of the ocean, and the spread of invasive species.

Since many factories are built in developing countries with less environmental regulation, globalism and free trade may increase pollution, leading to climate change.

Discussion topic:

Economic development historically has required a "dirty" industrial stage, for example the industrial era in the U.S. which contributed to its becoming a superpower, and it is argued that developing countries should not now, via regulation, be prohibited from similarly increasing their standard of living.

Agree or disagree?

These global environmental challenges might be solved with international cooperation

Cultural impact: growth of cross-cultural contacts, cultural dispersal, the desire to increase one's standard of living and enjoy foreign products and ideas, adopt new technology and practices, and participate in a "world culture".

Some complain about the resulting consumerism and loss of languages...

...while others consider multiculturalism to promote peace and understanding between peoples.

Social impact: development of the system of non-governmental organizations (NGOs) as main agents of global public policy, including humanitarian aid and developmental efforts.

Economic interdependence:

•The decision of a commodities trader in New York affects a farmer in Africa.

•The parts of a single car come from many different countries.

•The banking crisis in one market wreaks havoc in another.

Globalization has generated significant international opposition over concerns that it has increased inequality and environmental degradation.

Global trade liberalization has enticed U.S. corporations to relocate to poor countries where employees agree to work for low wages, with low labor and environmental standards. It allows them to manufacture products and to cheaply extract natural resources from these countries without having to pay the costs which wages and environmental regulations demand.

In the Midwestern United States, globalization has eaten away at its competitive edge in industry and agriculture, lowering the quality of life in locations that have not adapted to the change.

The laid off manufacturing sector workers are forced into the service sector where wages and benefits are low, and turnover is high. This has contributed to the deterioration of the middle class which is a major factor in the increasing economic inequality in the United States.

Discussion topic: People in the lower class will have a much harder time climbing out of poverty because of the absence of the middle class as a stepping stone.

In poorer countries, opportunities in richer countries drive talent away, leading to a phenomenon called brain drain. Brain drain or human capital flight is a large emigration of individuals with technical skills or knowledge, normally due to conflict, lack of opportunity, political instability, or health risks.

• To fill the human resource gap created by brain drain, Africa employs up to 150,000 expatriate professionals at a cost of around $4 billion a year

• Brain drain, coupled with the loss of trained professionals due to HIV/AIDS, severely erodes the valuable human capital critically needed for economic growth and human development

Another example often used by anti-globalization protestors is the use of sweatshops, for example by clothing and sports shoe manufacturers. They set up factories in a poor country, then if labor laws alter in those countries and stricter rules govern the manufacturing process, the factories are simply closed down and relocated to other nations with more conservative, laissez-faire economic policies.

Ideas for change:

•Anti-sweatshop campaigns and education

•Supporting legislation that would legally require companies to respect human and worker rights by prohibiting the import, sale, or export of sweatshop goods.

•Legislation for core standards including no child labor, no forced labor, freedom of association, right to organize and bargain collectively, as well as the right to decent working conditions.

Ideas for change:

•Stand in opposition to the unregulated political power of large, multi-national corporations that have the power to leverage trade agreements-- which in some instances damage the environment (particularly air quality index and rain forests), and local governments’ sovereignty to determine labor rights, health and safety legislation

Ideas for change:

•Change regulations which do not allow countries to grow food for their own people (but rather for export)

•Expose dishonest practices (example: a factory in Central America which is accused of harsh working environments, low wages, forced overtime, and illegal working conditions for minors-- gives propaganda tours to convince visitors that workers are well-treated and taken care of in their plants)

The Winners: Corporations & The Rich

•The world’s largest 500 corporations control over 70% of world trade.

•For example, in the 1990s, 80% of the entire production of world grain was distributed by just two companies.*source: UN Food & Agriculture Organization, "Trends in World and Agricultural Trade"

The Winners: Corporations & The Rich

•Individuals seem to be benefiting from the global economy too. Between 1994 and 1998 alone, the 200 richest people in the world more than doubled their net worth to more than $1 trillion.

•Meanwhile, disparities continue to grow: In 1960, the income gap between the richest fifth of the world's population and the poorest fifth was 30 to 1; in 1997 it was 74 to 1.*source: UNICEF, "State of the World's Children 2000"

The Losers:

•Workers

•Small farmers

•The environment

Where do you stand?

•Proponents of laissez-faire capitalism, and some libertarians, say that higher degrees of political and economic freedom in the form of democracy and capitalism in the developed world are ends in themselves and also produce higher levels of material wealth.

•They see globalization as the beneficial spread of liberty and capitalism.

Where do you stand?

•The Global Justice Movement describes the loose collection of individuals and groups who advocate "fair trade" rules and are critical of current institutions of global economics such as the World Trade Organization.

Is it possible to be both pro- and anti-globalization at the same time?

•Support the globalization of communication

•Support increased opportunity for development

•Encourage increased direct transborder collaboration between governments; diversity and innovation in world politics

•Support closer ties between the various peoples and cultures of the world through, for example, foreign aid, assistance for refugees, and global environmental issues

•Oppose the global expansion of corporate power

•Oppose unequal distribution of resources

The process of globalization, "while opening up

new possibilities for progress, poses urgent questions regarding the very nature and

purpose of economic activity. It calls for ethical discernment aimed at protecting the environment

and promoting the full human development of millions of men and women, in a way that respects

every individual's dignity and makes room for personal creativity in the workplace.”

"It is my hope and prayer that your association, by advancing these eminently human goals, will

enable future generations to enjoy a prosperity which is not merely economic but spiritual as well,

corresponding to the deepest aspirations of the human heart.”

- John Paul II to the members of the European Automobile Manufacturers Association, 2001

“Globalization is an opportunity to create a network of understanding and solidarity

among peoples, without reducing everything to merely commercial or pragmatic

exchanges."

How Vincent expanded the circle of solidarity: - rely on God’s transforming power -

allow God to change attitudes and persons- thereby open the door to the possibility of

changing society’s structures