Transcript Globalization - mrsilberapcg

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Globalization
Globalization and state
sovereignty
“McWorld”
Responses to Globalization
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Globalization is the interdependence of
economies and cultures.
In other words, when a factory in China closes
there is a rippling effect across the ocean
impacting prices, wages, supply in the United
States
Similarly, when the U.S. stock market falters,
markets throughout Asia suffer as well.
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Central to globalization is the demand for
states to open up their economies, allow for
foreign investment, and increasing trade:
economic liberalization
It has been said that arguing against globalization is like
arguing against the laws of gravity.
Kofi Annan – former U.N. Secretary General
The negative side to globalization is that it wipes out entire
economic systems and in doing so wipes out the
accompanying culture.
Peter L. Berger
Instead of saying that globalization is a fact, that it's
inevitable, we've also got to demonstrate that while the
growing interdependence of the world economy is indeed a
fact, it's not uncontrollable.
Peter Mandelson
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As states become more integrated into the
world economy, they tend to give up power
over some decision making:
NAFTA- Mexico can no longer impose
tariffs on U.S. goods, nor can protect its
industries without consulting with U.S.
policymakers
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The WTO’s purpose is to regulate and
liberalize trade between member states
If one member state is using “unfair” trading
practices such as dumping and
oversubsidizing other member states can
make complaints
The WTO is involved in resolving trade
disputes
By joining the WTO member states give up
some sovereignty over their trading practices
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Companies which have branches in many
states such as Coca-Cola, Microsoft
Challenge state sovereignty as they often
control a large part of many developing
state’s economies
Oil company giant Exxon Mobil’s revenues are
larger than the GDP of “all but the top 21 countries
in the world.” Source: AP Briefing PaperGlobalization, p.12
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Although MNCs do create jobs in developing
states they keep wages very low
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NGOs are organizations which seek to
improve living standards, work with local
people, address issues such as the
environment or disease control
NGOs such as the Red Cross, Greenpeace also
can challenge state sovereignty by taking
away decision making powers from local
governments especially in developing states
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Political Science professor Benjamin Barber
coined this phrase back in 1995.
Ubiquitous McDonald’s restaurants all over
the world have become, according to Barber,
a symbol of Western capitalism
Although we tend to see a correlation
between capitalism and democracy, Barber
argues that McWorld capitalism has become
undemocratic by hurting local cultures,
businesses, and seeking only profit
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Protest
Disintegration
Decentralization
Race to the Bottom
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Many people on the political Left see
globalization as a threat to the average
citizen
Young people in particular have led vocal
protests against what they see as the
excesses of Western capitalism and
globalization
Scenes from the Occupy Wall Street Protests
in the US last year
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As the world economy moves closer to
integration, some states have experienced
disintegration as nations, minority groups
especially, become dissatisfied with the loss
of decision making power, and the perceived
threat to their distinct cultures
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Since 1991 33 new states have been created
Others have tried and failed:
Chechnya in Russia tried to secede in the
mid 1990s
The Chiapas (indigenous peoples) in Mexico,
angered over NAFTA, launched a revolution in the
mid 1990s
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Some nations have used globalization to
demand more decision making powers from
the central gov’t such as in Scotland and
Wales with the creation of new national
assemblies
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As developing states begin to liberalize their
economies and open up to foreign direct
investment they run the risk of trying to get
investment at any cost
This often means lowering taxes and
environmental regulations to attract MNCs
Even if this creates jobs and adds to GDP does this
really benefit the state in the long run?
Dark blue represents states with the toughest
environmental regulations.
Light blue represents states with the weakest
environmental regulations.