Globalization Introduction PDF

Globalization Introduction Prepared By: Ken M. Villamartin, MPA Globalization GLOBALISM - points to aspirations for an end state of affairs wherein values are shared by or pertinent to all the world’s five billion people, their environment, their roles as citizens, consumers or producers with a...

Globalization Introduction Prepared By: Ken M. Villamartin, MPA Globalization GLOBALISM - points to aspirations for an end state of affairs wherein values are shared by or pertinent to all the world’s five billion people, their environment, their roles as citizens, consumers or producers with an interest in collective action designed to solve common problems. UNIVERSALISM – which values embrace all humanity, hypothetically or actually. https://tinyurl.com/y4bg9fvg Globalization GLOBALIZATION – constitutes a multiplicity of linkages and interconnections that transcend the nation states (and by implication the societies) which make up the modern world system. It defines a process through which events, decisions and activities in one part of the world can come to have a significant consequence for individuals and communities in quite distant parts of the globe. -Anthony McGrew- https://tinyurl.com/y4bg9fvg Globalization GLOBALIZATION - redefines the relationship between territoriality and authority, shifting authority from the level of the state to supranational and subnational units, perhaps offering more to grasp onto in operational terms but precious little in causal terms. GLOBALIZATION - is defined here as a set of economic and political structures and processes deriving from the changing character of the goods and assets that comprise the base of the international political economy—in particular, the increasing structural differentiation of those goods and assets -Philip Cerny- https://tinyurl.com/y4bg9fvg Globalization GLOBALIZATION - shifts authority to specifically the local and the regional level. -Robert Z. Lawrence- https://tinyurl.com/y4bg9fvg Globalization Definition, Process and Concepts The term globalization comes from English, as base of the word ”globalization” which refers to the emerging of an international network, belonging to an economical and social system1. One of the earliest uses of the term "globalization", as known, was in 1930 - in a publication entitled Towards New Education - to designate an overview of the human experience in education Near Term “giant corporations” was used in 1897 Charles Russell Tazel to describe the big national trusts and other large enterprises of the time. http://tinyurl.com/y9vh7nzn Globalization Definition, Process and Concepts Since 1960 both terms (Globalization and Giant Corporations) began to be used interchangeably by economists and researchers in social sciences and were used until about mid 1980. http://tinyurl.com/y9vh7nzn Globalization Definition, Process and Concepts Vladislav Inosemtsev defines globalization as one of the most popular social studies of today, but is at the same time an empty term. Mentioned in literature in the mid 1940s, but up until the mid 1980s it was mentioned only occasionally After the Cold War the term began to be used to describe the world becoming more interdependent in its economical and informational dimension http://tinyurl.com/y9vh7nzn Globalization Definition, Process and Concepts Roland Robertson, a professor of sociology at the University of Aberden, was the first person who defined globalization as "the understanding of the world and the increased perception of the world as a whole.“ Martin Albrow and Elizabeth King, sociologists, define globalization as "all those processes by which the peoples of the world are incorporated into a single world society. http://tinyurl.com/y9vh7nzn Globalization for Development International Trade Perspective  Globalization is increasing the integration of national markets and the interdependence of countries worldwide for a wide range of goods, services, and commodities.  In the past 30 years, international trade flows have expanded dramatically and, generally, at a rate faster than global output, with a doubling of the value of trade in a 10-year period since the mid-1990s.  In 2006, the dollar value of world merchandise exports reached US$11.98 trillion (as compared to about US$5.17 trillion in 1995), and that of commercial services exports rose to US$2.71 trillion, thus raising total world trade to over US$14 trillion. https://tinyurl.com/yxljo4by Globalization for Development International Trade Perspective Several Factors that played an important role in the recent expansion of trade growing integration of economies and increasing contribution of trade to development; liberalization of tariffs and other barriers to trade foreign direct investment through trade and investment negotiations and agreements autonomous unilateral structural reforms; technological innovations in transport and communications international solidarity through supportive measures (like trade preferences); the strategic use of policies, experimentation and innovation https://tinyurl.com/yxljo4by Globalization for Development International Trade Perspective Trade-driven globalization is also manifested in the changing geography of the world economy today. Trade-driven globalization has reached unprecedented pace, scope, and scale. Trade-Driven globalization has spawned new opportunities and realities as well as persistent challenges to the acceleration of economic growth, development, and poverty reduction. https://tinyurl.com/yxljo4by Globalization for Development International Trade Perspective Some developing countries are beginning to realize the prospects of a more beneficial integration – both quantitative and qualitative – into the global economy and the international trading system. For many others, an increased quantitative integration has not had positive results. Often, their viii Globalization for Development liberalization has not translated into qualitative gains with widespread and structural developmental impact. https://tinyurl.com/yxljo4by The New Waves of Globalization and Its Economic Effects  Since about 1980 there has been unprecedented global economic integration. Globalization has happened before, but not like this. Economic integration occurs through trade, migration, and capital flows.  Since 1980 many developing countries—the “new globalizers”— have broken into world markets for manufactured goods and services. https://documents1.worldbank.org/curated/en/954071468778196576/310436360_20 050007015044/additional/multi0page.pdf Previous Waves of Globalization and Reversals 1. The first wave of globalization: 1870–1914 It was triggered by a combination of falling transport costs, such as the switch from sail to steamships, and reductions in tariff barriers, pioneered by an Anglo-French agreement. Cheaper transport and the lifting of manmade barriers opened up the possibility of using abundant land. New technologies such as railways created huge opportunities for land-intensive commodity exports. https://documents1.worldbank.org/curated/en/954071468778196576/310436360_20 050007015044/additional/multi0page.pdf Previous Waves of Globalization and Reversals The production of primary commodities required people. Sixty million migrated from Europe to North America and Australia to work on newly available land. The production of primary commodities for export required not just labor but large amounts of capital. Globally, growth accelerated sharply. Per capita incomes, which had risen by 0.5 percent per year in the previous 50 years, rose by an annual average of 1.3 percent. https://documents1.worldbank.org/curated/en/954071468778196576/310436360_20 050007015044/additional/multi0page.pdf Previous Waves of Globalization and Reversals The impact of globalization on inequality within countries depended in part on the ownership of land. Exports from developing countries were land-intensive primary commodities. Within developing countries this benefited predominantly the people who owned the land. Since most were colonies, land ownership itself was subject to the power imbalance inherent in the colonial relationship. Where land ownership was concentrated, as in Latin America, increased trade could be associated with increased inequality. Where land was more equally owned, as in West Africa, the benefits of trade were spread more widely. Conversely, in Europe, the region importing land-intensive goods, globalization ruined landowners. For example, Cannadine (1990) describes the spectacular economic collapse of the English aristocracy between 1880 and 1914. In Europe the first wave of globalization also coincided with the establishment for the first time in history of the great legislative pillars of social protection—free mass education, worker insurance, and pensions (Gray 1998). https://documents1.worldbank.org/curated/en/954071468778196576/310436360_20050007015044/additional/multi0 page.pdf Previous Waves of Globalization and Reversals Ever since 1820—50 years before globalization—world income inequality as measured by the mean log deviation had started to increase drastically (figure 1.2).2 This continued during the first wave of globalization. Despite widening world inequality, the unprecedented increase in growth reduced poverty as never before. In the 50 years before 1870, the incidence of poverty had been virtually constant, falling at the rate of just 0.3 percent per year. During the first globalization wave, the rate of decline more than doubled to 0.8 percent. Even this was insufficient to offset the increase in population growth, so that the absolute number of poor people increased. https://documents1.worldbank.org/curated/en/954071468778196576/310436360_2005000701 5044/additional/multi0page.pdf Previous Waves of Globalization and Reversals The retreat into nationalism: 1914–45 “The twentieth century began with a highly efficient international monetary system that was destroyed in World War I, and its bungled recreation in the inter-war period brought on the great depression.” Globally, rising protectionism drove international trade back down. By 1950 exports as a share of world income were down to around 5 percent—roughly back to where it had been in 1870. Technology continued to reduce transport costs: during the inter-war years sea freight costs fell by a third. Protectionism had undone 80 years of technical progress in transport. https://documents1.worldbank.org/curated/en/954071468778196576/310436360_20050007015044/additional/multi0page.pdf Previous Waves of Globalization and Reversals 2. The second wave of globalization: 1945–80 Developing countries faced severe barriers. Most developing countries erected barriers against each other and against developed countries. Economies of Agglomeration – introduced by the second wave Second wave of globalization. Economies of agglomeration - refer to the benefits that firms and individuals obtain by locating near one another. https://documents1.worldbank.org/curated/en/954071468778196576/310436360_20050007015044/additional/multi0page.pdf Previous Waves of Globalization and Reversals 3. The New Wave of Globalization Began in 1980 and is very distinctive First, and most spectacularly, a large group of developing countries broke into global markets. Second, other developing countries became increasingly marginalized in the world economy and suffered declining incomes and rising poverty. Third, international migration and capital movements, which were negligible during second wave globalization, have again become substantial. We take these features of the new global economy in turn. https://documents1.worldbank.org/curated/en/954071468778196576/310436360_20050007015044/additional/multi0page.pdf Development and Globalization Globalization and the shifting balance in the world economy. Economically, globalization means closer integration of national economies through trade and financial flows as well as cross-border migration of people. As national economies “open up” and lower their external barriers, they become more exposed – and more vulnerable – to global forces and influences. https://tinyurl.com/y5mjs2x4  Development and Globalization National Trade and Integration Economies Financial Flows Cross-Border Migration of People https://tinyurl.com/y5mjs2x4 Development and Globalization Global imbalances, crisis, and the lack of global Global crisis saw rising imbalances in international trade and financial flows that starkly contradicted traditional development theory and the conventional wisdom of policymaking of that very era. The global crisis had a severe impact on global economic activity, incomes and employment; though more lastingly so in key developed countries than in many developing countries. Unbalanced competitiveness positions provide the background to financial stresses that continue to plague parts of the developed world today, especially in the euro area. https://tinyurl.com/y5mjs2x4 Development and Globalization Development challenges and policies to overcome the crisis The role of macroeconomic policies to mitigate the effects of the crisis and to reinvigorate economic growth, while reducing unemployment and inequality, and putting the global economy on a sustainable growth path. Macroeconomic policies are strategies and actions implemented by a government or monetary authority to manage the economy and achieve specific economic objectives. Fiscal Policy - involves the use of government spending and taxation to influence the economy. Monetary Policy - involves the management of the money supply and interest rates by a central bank (e.g., the Federal Reserve in the U.S.) to influence economic activity. https://tinyurl.com/y5mjs2x4 Development and Globalization Long – Standing Challenges The relation between the ongoing globalization process and its associated policies is an important element in the evaluation of the progress towards the Millennium Development Goals (MDGs) Poverty Educational Gender Attainment Goals Other Targets such as, reduction in child mortality, improvement of maternal health, reducing major diseases, attaining environmental sustainability and improving the conditions for development in particular finance and debt reduction, have seen less marked progress. https://tinyurl.com/y5mjs2x4