define globalization
globalization is a “set of uneven social processes that appear to transform our social condition of conventional nationality into one of globality”
define globality
“is a social condition characterized by tight global, economic, political, cultural, and environmental interconnections and flows that make most current borders and boundaries irrelevant” (Symbaluk & Bereska, 2016, p. 331). Globality and globalization are intricately linked.
is globalization singular?
Globalization is in part difficult to define, in part because it is not singular. It dovetails technological, economic, political, and cultural dimensions. The framework of globalization can be used to better understand a range of contemporary issues including but not limited to the manufacturing and sales of products and resources, changing national and
how has global trade accelerated?
in the last three decades, with new advancements in transportation, robotics, computers, and communications technologies, including satellites and Internet, global trade has been massively accelerated.
transportation technology
- While most of us may not realize, technology is one of most important elements that contribute to creating, producing, manufacturing, and shipping the thousands of products we have at our fingertips every day.
- By reading food, clothing, and other product labels we see that many of the products we find in Canada are imported from other countries (and typically from Second World and Third World countries where there are no or few minimum wage legislations).
- While transportation technologies are an enormous aspect of the technological advances that enable globalization to grow, they are far from exclusive. To understand the depth of the role technology (including transportation technology) plays in many of the products we consume in Canada, let’s take the example of bananas.
- Technologies used for banana production
- Pesticides
- Cooling containers
- Pulley system
- Shipping containers
- Ripening gas
- Washing bins
- Cranes and other lifting technologies
global inequality stats
global inequality has increased, not decreased. For example, in 1960, the wealthiest 20 percent of the world’s population took in more than 30 times the income of the poorest 20 percent. By 2000, the wealthiest 20 percent of the world’s population took in 74 times the income of the poorest 20 percent
what affects economic dimension?
a big part of the economic dimension of globalization has to do with the transnational financial organizations like the International Monetary Fund (IMF), the World Bank, the World Trade Organization (WTO), and the G8/G20, all of which have given rise to the conditions that allow some countries and their companies to dominate world markets and industries.
define neoliberalism
Neoliberalism, as defined by your textbook, is “an economic philosophy claiming that when market forces are unimpeded by government, prosperity and democracy will flourish”
• The North American Free Trade Agreement (NAFTA) and the Trans-Pacific Partnership (TPP) are both good examples of the operationalization of neoliberal strategies
describe nafta
• NAFTA is a comprehensive trade agreement between Canada, the United States, and Mexico.
• Since 1995 when the agreement was enacted, NAFTA has eliminated most tariff and non-tariff barriers to free trade and investment between these three countries. The aim of this agreement was to promote economic growth, job creation, and better prices and selection for consumer goods.
• prosperity in the NAFTA accord has not been equally distributed. Before NAFTA, Mexican salaries were a third of those in the U.S.; now they are less than an eighth. Despite initial claims of NAFTA, Mexico’s economic growth has weakened, with more of its citizens experiencing job loss or living in poverty
South American and Caribbean countries have also faired poorly by NAFTA. Despite the fact that the United States does not grow any bananas, they control more than three quarters of the global banana industry (Rodgers, 2012). In 2014, Chiquita brand bananas merged with Irish company Fyffes to become world’s largest banana producer (Isidore, 2014). The merger between Chiquita and Fyffes is a good example of vertical expansion, where companies buy up other similar companies to increase their profit share (Lawrence & Grice, 2013). Here, given the control of ownership of the means of production, U.S. banana companies are able to earn money off the labour of often-disenfranchised citizens, notably in countries where bananas actually grow and where wages are much low
describe the trans pacific partnership
- The Trans-Pacific Partnership (TPP) is set to be the largest, most ambitious free trade initiative in history. It is a trade agreement to lower trade barriers and tariffs among 12 Pacific Rim countries including Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, United States, and Vietnam
- In similar language to the promises of NAFTA, the TPP aims to increase jobs, and strengthen the economies of involved parties. Opponents to the partnership highlight the risks of a proposed increase in foreign workers (which would increase our unemployment rates, not decrease them), the threat to carbon emissions reduction with an increase on foreign trade, and the erosion of national sovereignty.
- In 2012, Canada already saw the deregulation of the Canadian Wheat Board. If the TPP goes through, there are discussions of deregulating the Canadian Dairy Association (Council of Canadians, 2016). On top of these national concerns, there are also those concerned with the global effects of such a partnership.
nafta and tpp aspects
free trade agreements like NAFTA and the TPP carry deep-seated political aspects, in particular the regulation of trade, labour, and subsidies that impede a country from self-governance. Since theNike scandal of the 1990s, the world has become more aware of the atrocious working conditions for many low-income workers worldwide.
examples of unethical companies
- Nike is not alone in the use of this labour model. Wal-Mart, Liz Claiborne, J.C. Penny, Kmart, Cherokee Jeans, Sears, and Esprit are some other well-known companies on the list.
- Diplomatically referred to as the “outsourcing of labour,” sweatshop labour, or slave labour as it is more accurately referred to, is unfortunately a common practice within neoliberal governing strategies and contemporary globalization. Technology, the garment and running shoe industry, the coffee trade, and food manufacturing and production are typically some of the worst industries for labour rights.
effects of outsourcing on employees
Workers are routinely forced to work long hours in deplorable conditions, for low pay, without basic benefits, and are subject to arbitrary discipline (see table below) (Klein, 2000). If workers protest their working conditions, they are fired, forced back to work at gunpoint, or in some cases, killed
what are labor rights an example of?
• Labour rights are just one example of political control by globalization. On top of the human and labour rights embroiled into the political practices of globalization, globalization also affects a country’s ability to produce and sell their own products, and thus compromises their ability to sustain their own livelihood.
effect of subsidy restrictions
- Because of subsidy restrictions placed on countries by the IMF and the World Bank, American grown food can often be cheaper in Third World countries than locally grown food. This trend is dangerous for a few reasons.
- First, it hinders a country’s ability to support their own agriculture, which, in turn, affects a country’s ability to feed themselves. If locally grown food is not being supported by local producers (because it is more expensive) local food producers eventually go out of business. Over time, as fuel prices increase, the once-cheaper American food becomes more expensive and local food security becomes a major risk. Other political dimensions include environment protection, industry protection, and a country’s ability to enforce local laws.
cultural dimension of globalization
- The cultural dimensions of globalization are wide ranging and include tourism, trade, the media, communications, and food (among others). To some degree we live in a globalized world.
- here has been an increase in migration and immigration globally since the 1970s. We have access to television, radio, and Internet sites from thousands kilometres away. We’ve likely been exposed to many languages, and a wide palate of food options in our native country. To another degree, some argue that globalization is a myth—not a myth in the sense that everything we have discussed so far isn’t happening but in the sense of questioning what is “global” about globalization (Held & McCrew, 2002). For sceptics of the term globalization, it has become synonymous with a Westernization or Americanization of culture.
what is globalization becoming homogenous with?
he homogenization and Americanization of culture is also reflected in the loss of global languages; by the end of the 21st century it is predicted that up to 90 percent of world languages that currently exist will be extinct. Currently,
describe the IMF
• The IMF was established in 1944 and provides short-term loans to countries in need at full interest rates. On top of making money off poor countries, the IMF also sets restrictions on how that money can be spent. For example, it is common practice for many contemporary governments worldwide to subsidize their farmers (after all, they feed the country), but the IMF will often restrict a borrowing country from doing the same. The result, as mentioned earlier, is that foreign or imported food becomes cheaper than locally grown food in the borrowing country
how does the IMF make money?
• As a money-making strategy, the IMF also encourages borrowing countries to devalue their currency; this may alleviate financial need in the short term, but unfortunately this strategy functions to keep low-income countries both in poverty and in debt.
how is the IMF set up?
- The way the IMF is set up makes it nearly impossible to enable low-income countries a fair voice at the table. The IMF consists of 186 member states with a 24-member board of executive directors. Voting power is not democratic but based instead on the size of the member’s economy. In order to change policy within the IMF, a country must hold 80 percent of the vote, and between the United States and Western Europe, these two regions control the lion’s share of the vote.
- Unlike the World Bank, the IMF also does not provide any money for development projects (i.e., roads, hospitals, or education). Long-term (sustainable) economic development therefore becomes difficult for low-income countries to achieve, especially given that in order to obtain a loan from the World Bank, a loan from the IMF is a necessary precursor.
describe the world bakn
- Also established in 1944, the World Bank is an international bank that offers low-interest and interest-free loans as well as funds for development projects to low- and middle-income economies.
- Similar to the IMF, voting power is based on the size of a member state’s economy, where again the United States and Western Europe have the most sway.
- The World Bank is subdivided into two components—the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). The former division provides medium-term loans to credit-worthy (i.e., middle and high income) countries and the latter division offers long-term interest-free loans to low-income countries worldwide.
what replaced GATT? describe it
• Established in 1995, the WTO replaced the former General Agreement on Tariff and Trade (GATT), which was established in 1948 as a multilateral agreement regulating international trade. The WTO consists of 150 member states and aims to regulate world trade and to provide a fair and equal forum for trade negotiations to take place. Unlike the IMF and the World Bank, decision-making in the WTO is based on a consensus model in order to allow small, less powerful countries equal and fair participation. But because of the consensus decision-making forum, negotiations can take years to resolve.
describe the g8 and g20
The Group of Eight (the G8) began as an informal forum in 1975 in response to a global oil crisis. The original six countries (and regions) included France, Germany, Italy, Japan, the United Kingdom, and the United States. Canada joined in 1976, and Russia joined in 1996 (after the collapse of the Soviet Union in 1989). These eight countries represented the majority of the world’s economic and military power. Unlike the IMF, World Bank, and WTO, the G8 lacks administrative structure, meaning that they are not accountable to any mandates of the organization. Instead, they meet annually (often behind closed doors) to informally discuss and presumably also make deals on issues of mutual or global concern including health, law enforcement, labour, economic growth, trade, social development, energy, environment, foreign affairs, justice, and terrorism. The presidency of the G8 rotates annually, and Canada last hosted in 2010 in and around the Toronto area.
criticism of the g8 and g20
• Many have rightly criticized the G8 for being an exclusive group. And indeed, when looking at the G8 there are no low-income economies represented and, like we’ve seen with the IMF and the World Bank, there is an over-representation of North American and Western European countries. In response to the exclusivity of the G8, the G20 was founded in 1999 with the aim of discussing policy issues pertaining to the international economy. The G20 includes all G8 countries, plus 12 others: Argentina, Australia, Brazil, China, India, Indonesia, Italy, Mexico, Saudi Arabia, South Africa, the Republic of Korea, and Turkey. While the G20 is certainly a better world representation, it is far from an inclusive list. There are no Caribbean countries represented, one African nation, one Middle Eastern nation, and one Latin American nation—notably the poorest regions globally (again) have the least representation.
