Globalisation critique Flashcards
Benefits
Growth and Development
For LDEs
For LDEs
- Globalisation has increased levels of investment and has made it easier for countries to attract short and long term investment.->Investment in LDCs reduces poverty
- Raised education and income allows focus on environmental issues in LICs
- TNCs create jobs and stimulate growth
o TNCs help to redistribute wealth around the world and have lifted millions out of a subsistence living
- LDC economies are growing more quickly and there is less inequality between countries
- The Internet (a product of globalisation)
o Supported enterprise – rise of mobile banking in Kenya or the practice of microlending or technological leapfrogging in Uganda
- Spread of environmentally friendly tech and practices from developed to developing – this can reduce pollution – developing better environmental regulations and standards
- Greater access to markets
For EMEs- growth
- developed rapidly and have emerged as major economic powers, competing with developed regions of the world- via FDI and outsourcing of production by TNCs
- this investment is reducing inequalities between countries ( TNCs pay 40% higher wage stahn local firms) – multiplier effect- increased disposable income
- improved education and health
- E.G. MINT countries are growing rapidly: Mexico 4% annual growth, Nigeria 5.8%, Indonesia 5.9% and Turkey 4%. In 2015, the top 10 fastest growing economies were all in Asia or Africa.
Benfits - growth etc.. for HDEs, TNCs and everyone
For HDEs
- Free trade allows specialisation of the production of goods so prices are lower for consumers, there is greater choice, export markets are large and there is greater competition.-> Cheap imports have lowered consumer goods prices – multiplier effect
- Growth in international economic migration offers bilateral benefits for some nations, for example, migrants from the Philippines working in the UAE.
For TNCs
- TNCs can access cheaper raw materials and can create economies of scale
All
- Competition between countries helps to drive prices down- drives innovation. More goods and services are made available to more people, often at lower prices.
Integration
For LDEs
- Free trade removes barriers and give more access to LDCs
For HDEs
All
- Nations can work together more cooperatively to tackle global environmental issues such as CC
- Interconnected decision making and greater sharing of information leads to a global politics that benefits all.
o NGOs- Greenpeace and WWF- spread awareness of issues and some solution
- Flows of information- a globalised society boosts the rate at which people are exposed to the culture, values and attitudes of people in other countries-> leads to greater tolerance and understanding
- Increased awareness of global / integration of news can be positive – address CC , encourage change in lifestyle, people better informed about human and natural disaster – encourage NGO donations
Stability
LDEs
- Remittances- stable income
All
- Integration of cultures leads to greater cultural understanding and reduces conflict
- Global governance has meant greater sharing of information and more political integration, so arguably the world is a safer place – more stable
- More co-operation demonstrated in response to global crises and hazard events
o Despite wars in, for example. Syria, war deaths are declining at a rapid pace.
o The world is much more peaceful and inclusive - in short, a safer place
Inequalities and Injustice
- Inequality of income and opportunities within countries has increased (except for Latin America)
o The richest 20 per cent of the world’s population consumes 86 per cent of the world’s resources while the poorest 50 per cent consumes just 14 per cent.
o The gap between richest and poorest countries is widening and Inequality within many countries is increasing
o Rurual-urban disparities - Differential access to trade
o LDCs still disadvantage to access to trade – barrier still exist to protect richer nations -> 61 countries have VATs on imports
o Emerging countries cannot compete with developed markets
o Countries manipulate their currency to obtain a price advantage – 20 countries have down this - Issues with TNCs
o TNCs are increasingly influencing political decision-making to service self- interests , at the expense of governments and citizens -> exploit the fragilities of weaker governments and legal frameworks of LDEs to their own advantage
e.g Lome Convention
o TNCs can exploit resources, workforce etc…
Workers in LDEs may be treated differently to counterparts elsewhere- e.g. longer hours and poorer working conditions
o Repatriation of profits – e.g. 90% of the cost of bananas stay in the ‘north’. - Issues of International organisations – e.g. IMF enforced spednign cuts
o Governments of HDEs have more influence in international organisations
All - Due to free trade and economic interdependence – there is a risk of an economic shock in one country quickly spreading to another- when American sneezes we all catch a cold
o e.g. the collapse of lending in the American sub-prime housing market triggered the 2008-09 global financial crisis
o creates a lack of trade – leads to job losses and decline in living standards
For HDEs - The transfer of manufacturing jobs from HDEs to lower cost economies causes unemployment, wage stagnation and related social problems of deprivation in some areas in HDEs. In communities experiencing this decline, there may be a feeling of neglect.
Conflict
- Increasing international migration can lead to social and cultural conflict and the rise of extremist political groups
o Pressure on housing and social services - Standardisation of goods and services can lead to cultural homogeny and a global monoculture – damage to individual cultures / cultural dilution
o Reaction to inequality and injustice and loss of cultural identity can lead to extremist ideologies, which are more easily spread by internet, etc - The rise of consumerism as a way of life can mean people become more interested in things rather than people in their community and leads to environmental degradation
- Flows of information – lead to negative ideas such as terrorism
- Global trade in military hardware remains big business, for example in 2017 the Us signed a US 110 bn arms sale to Saudi Arabia.
- In an argument mirrored elsewhere in Europe, for example by the National Front party in France, such discrimination against the poor was argued as creating a Two Nations’ syndrome.
Populist movements - BREXIT
o The recognition or perception that globalisation has failed to be inclusive has led to the rise of ‘populist’ movements, which reject existing political establishments, especially in some more developed countries.
o the UK electorate deciding to leave the European Union, a process later entitled ‘Brexit’
rejected greater integration and the globalisation process
Why?
* Sovereignty – the leave campaign used ‘take back control’ to persuade voter that the UK had lost the power to makes it own decision on legal matters or to negotiate it s own trade deals
* Immigration- nearly 1 million East European migrants had entered the UK since 2004- pressure on jobs, services etc.
* Inequality- widening gap between rich and poor (Gini Coefficient increased from 0.27 (1973) (when it joined EU) to 0.35 in 2016
o Communities felt left behind due to deindustrialising and blamed EU for this
o Globalisation failed ot be inclusive
* Pro -nationalistic feelings- Some of the UK electorate prefer the idea of an independent Britain making its own future in the world.
* Left 31st January 2020
Yet - Leave supporters argue that Brexit is not an ‘antiglobalisation’ vote and that it gives the UK the opportunity to trade more globally without the constraints of being a member of a customs union
Populist movemnts - Trump
Nov 2016 was elcted – promise of more portecionist polices and jobs
Removal of the US from TPP
Rhetoric about building a wall between USA and Mexico to prevent illegal imgration
Encourgament of US car manufacturers to build new factories in the USA rathr the in Mexico
Withdrew US from Paris Agreement
Increase in tariffs on imported manufactured good from Chian and others in attempt to stimulate traditional manufatcring regions in the US
However, since taking office in 2021, newly-elected President Biden has signalled an intent to reverse many of the Trump policies as his administration adopts a more ‘internationalist’ approach
Environmental Impact
- TNC investment in LDCs to develop resource or manufacturing is not always environmentally sound or sustainable
o More transport – GG emissions
o TNCs outsource to country where environmental standards are less strict
o Spread of invasive species and diseases- due to greater movement – e.g. COVID
o Less species diversity as many global products are standardised
o More waste from packaging
o Depletion of non – renewable resources - Trying to achieve global action on CC is difficult
o Trump withdrew from the Paris Agreement
Views of globalisation
Hyperglobalists
- We are in a new geographic era
- Erosion of state power -Nation state is no longer important
- Instead, there is a single global market supported by transnational networks of production, trade and finance
- Believe in supra-level governments – trading blocs
- See globalisation as victory of capitalism over socialism
- Believe that glbalisatio is leading to the spread of iberal democracy
- But that globalisation also leads to homogeneity of culture – americanisation of the world
However? - 9/11 and 2007-8 financial crisis and COVID involved national governments suggest the nation state is not yet dead
Sceptics
- Believe globalisation is not new
- We are just as integrated as we were in the 19th century
- If hyperglobalists were correct , they would be uninterrupted flows of labour, trade and capital- yet labour is restricted and protectionist policies limit free trade
- Believe national governments are still the most important players
o For example, rise of China, India and Iran due to government polices - Trading blocs promote regionalism rather than globalisation
- Take than stance that hypoerglobalists are only interest in increasing their market share in the new global economy – could lead to amrginlisaiton of the ppor
- the sceptics view is that cultural heterogeneity will continue although homogeneity of culture may occur within a single nation such as China or Iran
Transformationalists
- Lie in between the other two
- Globalisation is real and it is changing society
- See it as an extension of colonial relations
- They do believe that the role national governments is changing rather than being made redundant.
o According to transformationalists, the state is also actively engaged is own economic and cultural issues, which produces diversity and increased unevenness
o There is therefore more differentiation in global society politics and economies - Politically, nation states have to take account international and supranational bodies, such as the European Parliament
- Economically, production, trade and finance are interlinked in global networks
