Globalization and Sustainability

• Sustainable development balances present needs with the ability of future generations to meet their own needs.
• This involves using Earth's resources wisely and ensuring their preservation.
• It aims to find a middle ground between economic progress and environmental sustainability.

Globalization and Sustainability

• Globalization is the increasing interconnectedness of economies, cultures, and societies.
• Sustainability is maintaining resources and the environment for future generations.
• The economic aspect includes the impact of global trade on sustainability.
• The political aspect includes government policies affecting sustainability.
• The technological aspect includes the role of innovations in addressing environmental issues.

Environmental Degradation

• It is the deterioration of the natural environment due to human activities.
• These activities lead to issues such as pollution, deforestation, and climate change.
• Efficiency is the ability to produce goods quickly and in large quantities.
• Neoliberals prioritize economic growth, while environmentalists prioritize ecological concerns.
• Free trade expansion can contribute to environmental harm.
• A global approach is necessary to tackle environmental problems.

Food Security

• It means ensuring that all people have access to sufficient, safe, and nutritious food at all times.
• Global food security is the ability to provide enough food for the world’s population.
• Factors affecting food security include population growth, climate change, water scarcity, and agricultural productivity.
• Deforestation, or large-scale clearing of forests, impacts ecosystems
• Declining freshwater availability impacts food production.
• Climate refugees are people forced to migrate due to lack of water or flooding.
• Harmful emissions contribute to global warming and food supply threats.
• UN Sustainable Development Goal #2 aims to end hunger, improve nutrition, and promote sustainable agriculture.
• The World Economic Forum’s "New Vision for Agriculture" involves public-private partnerships to address food security.

Economic Globalization, Poverty, and Inequality

• Economic globalization is the increasing flow of goods, services, capital, and labor across international borders.
• Economic globalization affects poverty and wealth distribution.
• "The poorest suffer from globalization deficiency."
• Some benefit from globalization, while others struggle.
• Economic growth in one sector leads to growth in others (multiplier effect). -Job outsourcing can lead to worker exploitation.
• Global pressure helps improve labor conditions.
• Economic globalization has lifted millions out of poverty but also raises concerns about environmental sustainability.

Global Income Inequality

• Income inequality is the uneven distribution of income within and among countries.
• Wealth inequality is the total net worth of a country, considering all assets minus liabilities
• Income inequality is the distribution of earnings over time, representing the flow of goods and services.
• The Industrial Revolution caused significant wealth gaps.
• Globalization has improved many lives but has also concentrated wealth among a few.
• Technology benefits skilled workers and replaces unskilled jobs, widening the gap between rich and poor.

The Third World and the Global South

• The Global South refers to developing countries, historically referred to as the Third World.
• The Cold War classification included:
  • First World - Western capitalist countries.
  • Second World - Soviet Union and its allies.
  • Third World - Non-aligned nations.
• Global North includes developed countries.
• The Global South includes developing regions.
• The term is used to highlight economic and political inequalities.

The Global City

• A global city is a major urban center that plays a key role in the global economy, politics, and culture.
• Local farming has been replaced by commercial agriculture.
• While cities benefit from globalization, they also face serious global problems.

Theories of Global Stratification

• Social stratification refers to the ranking of members of a society into groups based on their status.
• This ranking is based on occupation, power, economic resources, prestige, and education.
• Social stratification represents structured inequality between groups.

Modernization Theory

• It views global stratification as a result of technological and cultural differences between nations.
• The Columbian Exchange was the exchange of goods, technology, and diseases between the Americas and Europe.
• The Industrial Revolution introduced steam power and mechanization, which replaced human labor and increased productivity.
• The biggest barrier to growth is the tension between tradition and technological change.
• Traditional stage: Societies are based on small communities where production is done in family settings.
• Take-Off Stage: People begin to use their talents to produce more than just necessities.
• Drive to Technological Maturity: Technological growth leads to population expansion, reduced poverty, and more job opportunities.
• High Mass Consumption: A stage where production is more focused on wants rather than just needs.
• Investing in better technologies increases production and wealth, improving overall well-being.
• It is seen as justifying capitalism as the only path to development.
• Overlooks historical factors that contributed to European and North American progress.
• It is considered Eurocentric, emphasizing economic progress over other forms of development.
• It blames underdeveloped countries for their situation instead of acknowledging external influences.

Dependency Theory and the Latin American Experience

• The development of Southern nations often benefits the wealthier Northern nations at their expense.
• Trade protectionism and import substitution are seen as key to self-sustaining development.
• Andre Gunder Frank argued that less developed countries could not develop by following the path taken by wealthier nations.
• Southern nations' dependency on Northern economies prevents their own growth.
• Poor nations serve the economic interests of wealthier countries, creating a cycle that enforces global inequality.

The Modern World-System

• Core nations are the economic and technological hubs of the world.
• Peripheral nations provide raw materials and cheap labor for wealthier nations.
• Semi-Periphery have closer ties to wealthier economies but still experience economic dependency.
• Poor nations have few valuable resources to export.
• Profits from resources bypass poor nations and flow into richer countries.
• Poor countries lack industrial capacity and must import expensive manufactured goods.
• The problem is the unequal distribution of global wealth.

Criticism of Dependency Theory

• Some evidence suggests that foreign investment by rich nations helps poor nations.
• The theory focuses too much on capitalism as the cause of inequality, ignoring cultural and political factors
• Some theorists argue for severing ties with rich nations, but this does not acknowledge global economic realities.

Economy and Production Sectors

• The primary sector extracts raw materials like farming and mining.
• The secondary sector converts raw materials into manufactured goods.
• The tertiary sector provides services rather than goods.
• Stronger economies influence others more in interconnected economies.

Bretton Woods System

• The key elements were:
  • Currency pegged to gold.
  • Exchange rates maintained within a fixed margin.
  • IMF established to oversee exchange rates.
  • Trade restrictions among member countries were removed.
  • The U.S. dollar became the global currency.

Trade Agreements & Organizations

• GATT focused on trade goods.
• WTO covers services and non-tariff barriers.
• The WTO favored larger economies, excluding smaller nations in decision-making.
• IMF assists struggling economies.
• The World Bank funds long-term poverty reduction projects.
• OECD includes the richest economies.
• OPEC controls oil pricing.
• The EU has 28 members, and the eurozone is criticized for economic stagnation.
• NAFTA facilitates trade between the US, Canada, and Mexico.
• NAFTA encouraged outsourcing, leading to job losses in the US.

History of Global Integration

• The Agricultural Revolution involved a shift from hunting to farming, enabling trade and population growth.
• The Industrial Revolution led to the rise of factories, mass production, and economic inequality.

Capitalism vs. Socialism

• Capitalism involves private ownership, competition, and profit-driven motives.
• Socialism involves government ownership and prioritizes collective welfare over individual profit.

Information Revolution & Global Corporations

• There was a shift from manufacturing to service and idea-based economies.
• Corporations operate beyond national borders and benefit from globalization.