Globalization (or globalisation) refers to the increasing global relationships of culture, people, and economic activity. It is generally used to refer to economic globalization: the global distribution of the production of goods and services, through reduction of barriers to international trade such as tariffs, export fees, and import quotas and the reduction of restrictions on the movement of capital and on investment. Globalization may contribute to economic growth in developed and developing countries through increased specialization and the principle of comparative advantage. The term can also refer to the transnational circulation of ideas, languages, and popular culture.
Interaction over long distances, such as the Silk Road, existed for thousands of years. Global sea links were discovered by Christopher Colombus in 1492 and Vasco da Gama in 1498. A large expansion of globalization began in the early 19th century.
The term was first employed in a publication entitled Towards New Education in 1930, to denote a holistic view of human experience in education. The related term 'corporate giants' was coined by Charles Taze Russell in 1897, to describe the largely national trusts and other large enterprises of the time. By the 1960s both terms began to be used synonymously by economists and other social scientists. The term reached the mainstream press in the later half of the 1980s. Since its inception, the concept of globalization has inspired competing definitions and interpretations, with antecedents dating back to the great movements of trade and empire across Asia and the Indian Ocean from the 15th century onwards.
The United Nations Economic and Social Commission for Western Asia defines globalization as:
"a widely-used term that can be defined in a number of different ways. When used in an economic context, it refers to the reduction and removal of barriers between national borders in order to facilitate the flow of goods, capital, services and labour... although considerable barriers remain to the flow of labour... Globalization is not a new phenomenon. It began towards the end of the nineteenth century, but it slowed down during the period from the start of the first World War until the third quarter of the twentieth century. This slowdown can be attributed to the inward-looking policies pursued by a number of countries in order to protect their respective industries... however, the pace of globalization picked up rapidly during the fourth quarter of the twentieth century..."
Tom G. Palmer of the Cato Institute defines globalization as "the diminution or elimination of state-enforced restrictions on exchanges across borders and the increasingly integrated and complex global system of production and exchange that has emerged as a result."
Thomas L. Friedman popularized the term "flat world", arguing that globalized trade, outsourcing, supply-chaining, and political forces had permanently changed the world, for better and worse. He asserted that the pace of globalization was quickening and that its impact on business organization and practice would continue to grow.
Takis Fotopoulos defined "economic globalization" as the opening and deregulation of commodity, capital and labour markets which led to the present neoliberal globalization. "Political globalization" named the emergence of a transnational elite and the phasing out of the nation-state. "Cultural globalization" was the worldwide homogenization of culture. Other elements included "ideological globalization", "technological globalization" and "social globalization".
In 2000 the IMF identified four basic aspects of globalization:
The historical origins of globalization remain subject to debate. Though in common usage it refers to the period beginning in the 1970s, some scholars regard it as having an ancient history that encompasses all international activity.
Andre Gunder Frank argued that a form of globalization began with the rise of trade links between Sumer and the Indus Valley Civilization in the third millennium B.C.
This archaic globalization existed during the Hellenistic Age, when commercialized urban centers enveloped the axis of Greek culture that reached from India to Spain, including Alexandria and the other Alexandrine cities. Very early on, the geographic position of Greece and the necessity of importing wheat forced the Greek world to engage in maritime trade. Trade in ancient Greece was free: the state controlled only the supply of grain.
There was trade links between the Roman Empire, the Parthian Empire, and the Han Dynasty. The increasing commercial links between these powers took form in the Silk Road, which started in western China, reached the boundaries of the Parthian empire, and continued to Rome. As many as three hundred Greek ships sailed each year between the Greco-Roman world and India. Annual trade volume may have reached 300,000 tons.
By traveling past the Tarim Basin region, the Chinese of the Han Dynasty learned of powerful kingdoms in Central Asia, Persia, India, and the Middle East with the travels of the Han Dynasty envoy Zhang Qian in the 2nd century BC. From 104 BC to 102 BC Emperor Wu of Han waged war against the Yuezhi who controlled Dayuan, a Hellenized kingdom of Fergana established by Alexander the Great in 329 BC. Gan Ying, the emissary of General Ban Chao, perhaps traveled as far as Roman-era Syria in the late 1st century AD. After these initial discoveries the focus of Chinese exploration shifted to the maritime sphere, although the Silk Road leading all the way to Europe continued to be China's most lucrative source of trade.
The Islamic Golden Age showed another stage of globalization, when Jewish and Muslim traders and explorers established trade routes, resulting in a globalization of agriculture, trade, knowledge and technology. Crops such as sugar and cotton became widely cultivated across the Muslim world in this period, while widespread knowledge of Arabic and the Hajj created a cosmopolitan culture.
The advent of the Mongol Empire, though destabilizing to the commercial centers of the Middle East and China, greatly facilitated travel along the Silk Road. The Pax Mongolica of the thirteenth century included the first international postal service, as well as the rapid transmission of epidemic diseases such as bubonic plague across Central Asia. Up to the sixteenth century, however, the largest systems of international exchange were limited to southern Eurasia (an area where the Balkans and Greece interact with Turkey, Egypt, the Levant, Persia and the Arabian peninsula, continuing over the Arabian Sea to India).
Italian city states embraced free trade and merchants established trade links with faraway places, giving birth to the Renaissance. Marco Polo was a Venetian merchant traveler from the Venetian Republic whose travels are recorded in Il Milione, a book which did much to introduce Europeans to Central Asia and China. The pioneering journey of Marco Polo inspired Christopher Columbus and others.
The next phase, known as proto-globalization, was characterized by the rise of maritime European empires, in the 16th and 17th centuries, first the Portuguese and Spanish Empires, and later the Dutch and British Empires. In the 17th century, globalization became developed greater when chartered companies like British East India Company (founded in 1600), often described as the first multinational corporation, as well as the Dutch East India Company (founded in 1602) were established.
The Age of Discovery added the New World to the phenomenon. It began in the late 15th century, when Portugal and Castile sent the first exploratory voyages around the Horn of Africa and to the Americas, reached in 1492 by Christopher Columbus. Global integration continued with the European colonization of the Americas initiating the Columbian Exchange, the exchange of plants, animals, foods, human populations (including slaves), communicable diseases, and culture between the Eastern and Western hemispheres. New crops that had come from the Americas via the European seafarers in the 16th century significantly contributed to world population growth.
In the 19th century, steamships reduced the cost of international transport significantly and railroads made inland transport cheaper. The transport revolution occurred some time between 1820 and 1850. More nations embraced international trade. Globalization in this period was decisively shaped by nineteenth-century imperialism such as Opium Wars in China, the British Raj in India, and the Scramble for Africa.
Globalization took a big step backwards during the World War I, the Great Depression, and the World War II. Integration of rich countries didn't recover to previous levels before the 1980s.
After the World War II, work by politicians led to the Bretton Woods conference, an agreement by major governments to lay down the framework for international monetary policy, commerce and finance, and the founding of several international institutions intended to facilitate economic growth multiple rounds of trade opening simplified and lowered trade barriers. Initially, the General Agreement on Tariffs and Trade (GATT), led to a series of agreements to remove trade restrictions. GATT's successor was the World Trade Organization (WTO), which created an institution to manage the trading system. Exports nearly doubled from 8.5% of total gross world product in 1970 to 16.2% in 2001. The approach of using global agreements to advance trade stumbled with the failure of the Doha round. Many countries then shifted to bilateral or smaller multilateral agreements, such as the 2011 South Korea–United States Free Trade Agreement.
Since the 1970s, aviation has become increasingly affordable to middle classes in developed countries. Open skies policies and low-cost carriers have helped to bring competition to the market.
In the 1990s, the growth of low cost communication networks cut the cost of communicating between different countries. More work can be performed using a computer without regard to location. This included accounting, software development, and engineering design. In late 2000s, much of the industrialized world entered into the so-called Great Recession, which may have slowed the process, at least temporarily.
International trade in manufactured goods increased more than 100 times (from $95 billion to $12 trillion) between 1955 and 2007.
By the early part of the 21st century more than $1.5 trillion in national currencies were traded daily to support the expanded levels of trade and investment.
Survival in the new global business market required companies to upgrade their products and use technology skilfully in order to survive increased competition.
According to Jagdish Bhagwati, a former adviser to the U.N. on globalization, although there are obvious problems with overly rapid development, globalization is a very positive force that lifts countries out of poverty. According to him, it causes a virtuous economic cycle associated with faster economic growth.
The Chinese economic reform began to open China to the globalization in the 1980s. Scholars find that China has attained a degree of openness that is unprecedented among large and populous nations", with competition from foreign goods in almost every sector of the economy. Foreign investment helped to greatly increase quality, knowledge and standards, especially in heavy industry. China's experience supports the assertion that globalization greatly increases wealth for poor countries. As of 2005–2007, the Port of Shanghai holds the title as the World's busiest port.
The economic liberalization in India refers to ongoing economic reforms in India that started in 1991. As of 2009, about 300 million people—equivalent to the entire population of the United States—have escaped extreme poverty. In India, business process outsourcing has been described as the "primary engine of the country’s development over the next few decades, contributing broadly to GDP growth, employment growth, and poverty alleviation".
A free trade area is a trade bloc whose member countries have signed a free-trade agreement, which eliminates tariffs, import quotas, and preferences on most (if not all) goods and services traded between them. If people are also free to move between the countries, in addition to free-trade area, it would also be considered an open border. The European Union, a confederation of 27 member states, provides both a free trade area and an open border.
Asia-Pacific has been described as "the most integrated trading region on the planet" because its intra-regional trade accounts probably for as much as 50-60% of the region's total imports and exports. It has also extra-regional trade: consumer goods exports such as televisions, radios, bicycles, and textiles into the United States, Europe, and Japan fueled the economic expansion.
Conversely, production workers and service workers were unable to compete directly with much lower-cost workers in developing countries. Low-wage countries gained the low-value-added element of work formerly done in rich countries, while higher-value work remained; for instance, the total number of people employed in manufacturing in the US declined, but value added per worker increased.
In 2011, the United States imported $332 billion worth of crude oil, up 32% from 2010. Chinese success cost jobs in developing countries as well as in the West. From 2000 to 2007, the U.S. lost a total of 3.2 million manufacturing jobs. As of 26 April 2005 "In regional giant South Africa, some 300,000 textile workers have lost their jobs in the past two years due to the influx of Chinese goods".
A free trade zone is an area within which goods may be landed, handled, manufactured or reconfigured, and reexported without the intervention of the customs authorities. Only when the goods are moved to consumers within the country in which the zone is located do they become subject to the prevailing customs duties. Free-trade zones are organized around major seaports, international airports, and national frontiers—areas with many geographic advantages for trade. It is a region where a group of countries has agreed to reduce or eliminate trade barriers.
Globalization has given rise to the Internet, which connects computer users around the world. From 2000 to 2009, the number of Internet users globally rose from 394 million to 1.858 billion. By 2010, 22 percent of the world's population had access to computers with 1 billion Google searches every day, 300 million Internet users reading blogs, and 2 billion videos viewed daily on YouTube.
An online community is a virtual community that exists online and whose members enable its existence through taking part in membership ritual. Significant socio-technical change may have resulted from the proliferation of such Internet-based social networks.
The Enabling Trade Index measures the factors, policies and services that facilitate the trade in goods across borders and to destination. It is made up of four sub-indexes: market access; border administration; transport and communications infrastructure; and business environment. The top 20 countries are:
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Migration of skilled workers is called brain drains. For example, the US welcomes many nurses come work in the country. The brain drain from Europe to the United States means that some 400,000 European science and technology graduates now live in the U.S. and most have no intention to return to Europe. Nearly 14 million immigrants came to the United States from 2000 to 2010. Immigrants to the United States and their children founded more than 40 percent of the 2010 Fortune 500 companies. They founded seven of the ten most valuable brands in the world.
Reverse brain drain is sometimes used to refer to the movement of human capital from a more developed country to a less developed country. It is also termed as a logical outcome of a calculated strategy, where migrants accumulate savings, also known as remittances, and develop skills overseas that can be used in their home country.
Reverse brain drain can occur when scientists, engineers, or other intellectual elites migrate to a less developed country to learn in its universities, perform research, or gain working experience in areas where education and employment opportunities are limited in their home country. These professionals then return to their home country after several years of experience to start a related business, teach in a university, or work for a multi-national in their home country.
A remittance is a transfer of money by a foreign worker to his or her home country. Remittances are playing an increasingly large role in the economies of many countries, contributing to economic growth and to the livelihoods of less prosperous people (though generally not the poorest of the poor). According to World Bank estimates, remittances totaled US$414 billion in 2009, of which US$316 billion went to developing countries that involved 192 million migrant workers. For some individual recipient countries, remittances can be as high as a third of their GDP. As remittance receivers often have a higher propensity to own a bank account, remittances promote access to financial services for the sender and recipient, an essential aspect of leveraging remittances to promote economic development. The top recipients in terms of the share of remittances in GDP included many smaller economies such as Tajikistan (45%), Moldova (38%), and Honduras (25%).
The IOM found more than 200 million migrants around the world in 2008, including illegal immigration. Remittance flows to developing countries reached $328 billion in 2008.
A transnational marriage is a marriage between two people from different countries. A variety of special issues arise in marriages between people from different countries, including those related to citizenship and culture, which add complexity and challenges to these kinds of relationships. In an age of increasing globalization, where a growing number of people have ties to networks of people and places across the globe, rather than to a current geographic location, people are increasingly marrying across national boundaries. Transnational marriage is a by-product of the movement and migration of people.
Tourism is travel for recreational, leisure or business purposes. The World Tourism Organization defines tourists as people "traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes".
Globalization has made tourism a popular global leisure activity. In 2010, there were over 940 million international tourist arrivals worldwide, representing a growth of 6.6% when compared to 2009. International tourism receipts grew to US$919 billion (€693 billion) in 2010, corresponding to an increase in real terms of 4.7%. As a result of the late-2000s recession, international travel demand suffered a strong slowdown from the second half of 2008 through the end of 2009. After a 5% increase in the first half of 2008, growth in international tourist arrivals moved into negative territory in the second half of 2008, and ended up only 2% for the year, compared to a 7% increase in 2007. This negative trend intensified during 2009, exacerbated in some countries due to the outbreak of the H1N1 influenza virus, resulting in a worldwide decline of 4.2% in 2009 to 880 million international tourists arrivals, and a 5.7% decline in international tourism receipts.
WHO estimates that up to 500,000 people are in flight at any one time. In 2010, international tourism reached $919B, growing 6.5% over 2009.
There are many forms of tourism such as agritourism, birth tourism, culinary tourism, cultural tourism, extreme tourism, geotourism, heritage tourism, LGBT tourism, medical tourism, nautical tourism, pop-culture tourism, religious tourism, slum tourism, war tourism, and wildlife tourism
A lingua franca is a language systematically used to make communication possible between people not sharing a mother tongue, in particular when it is a third language, distinct from both mother tongues.
Today, the most popular second language is English. Some 3.5 billion people have some acquaintance of the language. English is the dominant language on the Internet. About 35% of the world's mail, telexes, and cables are in English. Approximately 40% of the world's radio programs are in English.
Language contact occurs when two or more languages or varieties interact. Multilingualism has likely been common throughout much of human history, and today most people in the world are multilingual. Language contact occurs in a variety of phenomena, including language convergence, borrowing, and relexification. The most common products are pidgins, creoles, code-switching, and mixed languages.
Cultural globalisation has increased cross-cultural contacts but may be accompanied by a decrease in the uniqueness of once-isolated communities: sushi is available in Germany as well as Japan, but Euro-Disney outdraws the city of Paris, potentially reducing demand for "authentic" French pastry. Globalisation's contribution to the alienation of individuals from their traditions may be modest compared to the impact of modernity itself, as alleged by existentialists such as Jean-Paul Sartre and Albert Camus.
Globalization expanded recreational opportunities by spreading pop culture, particularly via the Internet and satellite television.
Non-governmental organizations influence public policy across national boundaries, including humanitarian aid and developmental efforts.
Religious movements were among the earliest cultural forces to globalize, spread by force, migration, evangelists, imperialists and traders. Christianity, Islam, Buddhism and more recently sects such as Mormonism have taken root and influenced endemic cultures in places far from their origins.
Conversi claimed in 2010 that globalization was predominantly driven by the outward flow of culture and economic activity from the United States and was better understood as Americanization. For example, the two most successful global food/beverage outlets are American companies, McDonald's and Starbucks, are often cited as examples of globalization, with over 32,000 and 18,000 locations operating worldwide, respectively as of 2008.
The term globalization implies transformation. Cultural practices including traditional music can be lost and/or turned into a fusion of traditions. Globalization can trigger a state of emergency for the preservation of musical heritage. Archivists must attempt to collect, record or transcribe repertoire before melodies are assimilated or modified. Local musicians struggle for authenticity and to preserve local musical traditions. Globalization can lead performers to discard traditional instruments. Fusion genres can become interesting fields of analysis.
Globalization gave support to the World Music phenomenon by allowing locally-recorded to reach western audiences searching for new ideas and sounds. Western musicians adopted many innovations that originated in remote cultures. The term was originally intended for ethnic-specific music, though globalization is expanding its scope; it now often includes hybrid sub-genres such as World fusion,Global fusion, Ethnic fusion and Worldbeat
Music flowed outward from the west as well. Anglo-American pop music spread across the world through MTV. Dependency Theory explained that the world was an integrated, international system. Musically, this translated into the loss of local musical identity.
Bourdieu claimed that the perception of consumption can be seen as self-identification and the formation of identity. Musically, this translates into each being having his own musical identity based on likes and tastes. These likes and tastes are greatly influenced by culture as this is the most basic cause for a person’s wants and behavior. The concept of one’s own culture is now in a period of change due to globalization. Also, globalization has increased the interdependency of political, personal, cultural and economic factors.
Globalization has given emergence to international competition in sports.
The FIFA World Cup is the world's most widely viewed sporting event; an estimated 715.1 million people watched the final match of the 2006 FIFA World Cup held in Germany.
The Ancient Olympic Games were a series of competitions held between representatives of several city-states and kingdoms from Ancient Greece, which featured mainly athletic but also combat and chariot racing events. During the Olympic games all struggles against the participating city-states were postponed until the games were finished. The origin of these Olympics is shrouded in mystery and legend. During the 19th centry Olympic Games became a popular event.
Globalization seeks to reduce the importance of nation states. Sub-state and supra-state institutions such as the European Union, the WTO, the G8 or the International Criminal Court, replace national functions with international agreement. Some observers attribute the relative decline in US power to globalization, particularly due to the country's high trade deficit. This led to a global power shift towards Asian states, particularly China, that unleashed market forces and achieved tremendous growth rates. As of 2011, China was on track to overtake the United States by 2025.
In 2010 the United Nations Office on Drugs and Crime (UNODC) reported that the global drug trade generated more than $320 billion a year in revenues. Worldwide, the UN estimates there are more than 50 million regular users of heroin, cocaine and synthetic drugs. The international trade of endangered species was second only to drug trafficking among smuggling "industries". Traditional Chinese medicine often incorporates ingredients from all parts of plants, the leaf, stem, flower, root, and also ingredients from animals and minerals. The use of parts of endangered species (such as seahorses, rhinoceros horns, saiga antelope horns, and tiger bones and claws) resulted in a black market of poachers who hunt restricted animals.
Environmental challenges such as climate change, cross-boundary water and air pollution and over-fishing of the ocean, require trans-national/global solutions. Since factories in developing countries increased global output and experienced less environmental regulation, globalism substantially increased pollution and impact on water resources.
State of the World 2006 report said India and China's high economic growth was not sustainable. The report stated:
The advent of global environmental challenges that might be solved with international cooperation include climate change, cross-boundary water and air pollution, over-fishing of the ocean, and the spread of invasive species. Since many factories are built in developing countries with less environmental regulation, globalism and free trade may increase pollution and impact on precious fresh water resources.
International foreign investment in developing countries could lead to a “race to the bottom” as countries lower their environmental and resource protection laws to attract foreign capital. The reverse of this theory is true, however, when developed countries maintain positive environmental practices, imparting them to countries they are investing in and creating a “race to the top” phenomenon.
The distances are shrinking between continents and countries due to globalization, causing developing and developed countries to find ways to solve problems on a global rather than regional scale. Agencies like the United Nations now must be the global regulators of pollution, whereas before, regional governance was enough. Action has been taken by the United Nations to monitor and reduce atmospheric pollutants through the Kyoto Protocol, the Clean Air Initiative, and studies of air pollution and public policy.
Global traffic, production, and consumption are causing increased global levels of air pollutants. The northern hemisphere is the leading producer of carbon monoxide and sulfur oxides.
China and India substantially increased their fossil fuel consumption as their economies switched from subsistence farming to industry and urbanization. Chinese oil consumption grew by 8% yearly between 2002 and 2006, doubling from 1996–2006. In 2007, China surpassed the United States as the top emitter of CO2. Only 1 percent of the country’s 560 million city inhabitants (2007) breathe air deemed safe by the European Union. In this way, developed countries outsource some of the pollution associated with consumption in countries where pollution-intensive industries moved.
A major source of deforestation is the logging industry, driven by China and Japan.
Societies utilize forest resources in order to reach a sustainable level of economic development. Historically, forests in earlier developing nations experience “forest transitions”, a period of deforestation and reforestation as a surrounding society becomes more developed, industrialized and shift their primary resource extraction to other nations via imports. For nations at the periphery of the globalized system however, there are no others to shift their extraction onto, and forest degradation continues unabated. Forest transitions can have an effect on the hydrology, climate change, and biodiversity of an area by impacting water quality and the accumulation of greenhouse gases through the re-growth of new forest into second and third growth forests.
Without more recycling, zinc could be used up by 2037, both indium and hafnium could run out by 2017, and terbium could be gone before 2012.
The world population has experienced continuous growth since the end of the Great Famine and the Black Death in 1350, when it stood at around 370 million. The highest rates of growth – global population increases above 1.8% per year – were seen briefly during the 1950s, and for a longer period during the 1960s and 1970s. The growth rate peaked at 2.2% in 1963, and had declined to 1.1% by 2011. Total annual births were highest in the late 1980s at about 138 million, and are now expected to remain essentially constant at their 2011 level of 134 million, while deaths number 56 million per year, and are expected to increase to 80 million per year by 2040. Current projections show a continued increase in population (but a steady decline in the population growth rate), with the global population expected to reach between 7.5 and 10.5 billion by 2050.
With human consumption of seafood having doubled in the last 30 years, seriously depleting multiple seafood fisheries and destroying the marine ecosystem as a result, awareness is prompting steps to be taken to create a more sustainable seafood supply.
The head of the International Food Policy Research Institute, stated in 2008 that the gradual change in diet among newly prosperous populations is the most important factor underpinning the rise in global food prices. From 1950 to 1984, as the Green Revolution transformed agriculture around the world, grain production increased by over 250%. World population has grown by about 4 billion since the beginning of the Green Revolution and without it, there would be greater famine and malnutrition than the UN presently documents (approximately 850 million people suffering from chronic malnutrition in 2005).
It is becoming increasingly difficult to maintain food security in a world beset by a confluence of "peak" phenomena, namely peak oil, peak water, peak phosphorus, peak grain and peak fish. Growing populations, falling energy sources and food shortages will create the "perfect storm" by 2030, according to UK chief government scientist John Beddington. He noted that food reserves were at a 50-year low and the world would require 50% more energy, food and water by 2030. The world will have to produce 70% more food by 2050 to feed a projected extra 2.3 billion people and as incomes rise according to the United Nations' Food and Agriculture Organisation (FAO). Social scientists have warned of the possibility that global civilization is due for a period of contraction and economic re-localization, due to the decline in fossil fuels and resulting crisis in transportation and food production. Helga Vierich predicted that a restoration of sustainable local economic activities based on hunting and gathering, shifting horticulture, and pastoralism.
In 2003, 29% of open sea fisheries were in a state of collapse. The journal Science published a four-year study in November 2006, which predicted that, at prevailing trends, the world would run out of wild-caught seafood in 2048. Conversely, globalisation created a global market for farm-raised fish and seafood, which as of 2009 was providing 38% of global output, potentially reducing fishing pressure.
International travel helped to spread some of the deadliest infectious diseases. Starting in Asia, the Black Death killed at least one-third of Europe's population in the 14th century. Even worse devastation was inflicted on the American supercontinent by European arrivals. 90% of the populations of the civilizations of the "New World" such as the Aztec, Maya, and Inca were killed by small pox brought by European colonization. Modern modes of transportation allow more people and products to travel around the world at a faster pace, but they also open the airways to the transcontinental movement of infectious disease vectors. One example of this occurring was AIDS/HIV. Due to immigration, approximately 500,000 people in the United States are believed to be infected with Chagas disease. In 2006, the tuberculosis (TB) rate among foreign-born persons in the United States was 9.5 times that of U.S.-born persons.
| 2010 List by the KOF Index of Globalization | 2006 List by the A.T. Kearney/Foreign Policy Magazine | ||||||||||||||||||||||||||||||||||||||||||||
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There is little common ground between proponents and opponents of globalization.
A number of international polls have shown that residents of developing countries tend to view globalization more favorably. The BBC found a growing feeling in developing countries that globalization was proceeding too rapidly. Only a few countries, including Mexico, the countries of Central America, Indonesia, Brazil and Kenya, where a majority felt that globalization is growing too slowly.
Philip Gordon stated that “(as of 2004) a clear majority of Europeans believe that globalization can enrich their lives, while believing the European Union can help them take advantage of globalization’s benefits while shielding them from its negative effects.” The main opposition consisted of socialists, environmental groups, and nationalists.
In the EU, don't feel threatened by globalization. The EU job market was more stable and workers were less likely to accept wage/benefit cuts. Social spending was much higher than in the US.
In a Danish poll in 2007, 76% responded that globalisation is a good thing.
Fiss, et al., surveyed U.S. opinion in 1993. Their survey showed that in 1993 more than 40% of respondents were unfamiliar with the concept of globalization. When the survey was repeated in 1998, 89% of the respondents had a polarized view of globalization as being either good or bad. At the same time, discourse on globalization, which began in the financial community before shifting to a heated debate between proponents and disenchanted students and workers. Polarization increased dramatically after the establishment of the WTO in 1995; this event and subsequent protests led to a large-scale anti-globalization movement. Initially, college educated workers were likely to support globalization. Less educated workers, who were more likely to compete with immigrants and workers in developing countries, tended to be opponents. The situation changed after the financial crisis of 2007. According to a 1997 poll 58% of college graduates said globalization had been good for the U.S. By 2008 only 33% thought it was good. Respondents with high school education also became more opposed.
According to Takenaka Heizo and Chida Ryokichi, as of 1998 there was a perception in Japan that the economy was “Small and Frail”. However Japan was resource poor and used exports to pay for its raw materials. Anxiety over their position caused terms such as internationalization and globalization to enter everyday language. However, Japanese tradition was to be as self-sufficient as possible, particularly in agriculture.
The situation may have changed after the 2007 financial crisis. A 2008 BBC World Public Poll as the crisis began suggested that opposition to globalization in developed countries was increasing. The BBC poll asked whether globalization was growing too rapidly. Agreement was strongest in France, Spain, Japan, South Korea, and Germany. The trend in these countries appears to be stronger than in the United States. The poll also correlated the tendency to view globalization as proceeding too rapidly with a perception of growing economic insecurity and social inequality.
Many in the Third World see globalization as a positive force that lifts countries out of poverty. The opposition typically combined environmental concerns with nationalism. Opponents consider governments as agents of neo-colonialism that are subservient to multinational corporations. Much of this criticism comes from the middle class; the Brookings Institute suggested this was because the middle class perceived upwardly mobile low-income groups to threaten their economic security.
Although many critics blame globalization for a decline of the middle class in industrialized countries, the middle class is growing rapidly in the Third World. Coupled with growing urbanization, this led to increasing disparities in wealth between urban and rural areas. In 2002, in India 70% of the population lived in rural areas and depended directly on natural resources for their livelihood. As a result, mass movements in the countryside at times objected to the process.
A 2005 study by Peer Fiss and Paul Hirsch found large increase in articles negative towards globalization in the years prior. By 1998, negative articles outpaced positive articles by two to one. In 2008 Greg Ip claimed this rise in opposition to globalization can be explained, at least in part, by economic self-interest. The number of newspaper articles showing negative framing rose from about 10% of the total in 1991 to 55% of the total in 1999. This increase occurred during a period when the total number of articles concerning globalization nearly doubled.
Liberals generally argue that higher degrees of political and economic freedom in the form of democracy and capitalism in the developed world are ends in themselves and also produce higher levels of material wealth. They see globalization as the beneficial spread of liberty and capitalism.
Cosmopolitanism is the ideology that all human ethnic groups belong to a single community based on a shared morality. A person who adheres to the idea of cosmopolitanism in any of its forms is called a cosmopolitan or cosmopolite. A cosmopolitan community might be based on an inclusive morality, a shared economic relationship, or a political structure that encompasses different nations. In its more positive versions, the cosmopolitan community is one in which individuals from different places (e.g. nation-states) form relationships of mutual respect. As an example, Kwame Anthony Appiah suggests the possibility of a cosmopolitan community in which individuals from varying locations (physical, economic, etc.) enter relationships of mutual respect despite their differing beliefs (religious, political, etc.).
World citizen has a variety of similar meanings, often referring to a person who disapproves of traditional geopolitical divisions derived from national citizenship. An early incarnation of this sentiment can be found in Socrates, who Plutarch quoted as saying: "I am not an Athenian, or a Greek, but a citizen of the world."
Marshall McLuhan popularized the term Global Village beginning in 1962. His view suggested that globalization would lead to a world where people from all countries will become more integrated and aware of common interests and shared humanity.
Supporters of democratic globalization believe that the economic development was the first phase of globalization, and should be followed by a phase of building global political institutions. Dr. Francesco Stipo, Director of the United States Association of the Club of Rome, advocated for unifying nations under a world government, suggesting that it "should reflect the political and economic balances of world nations. A world confederation would not supersede the authority of the State governments but rather complement it, as both the States and the world authority would have power within their sphere of competence".
Former Canadian Senator Douglas Roche, O.C., viewed globalization as inevitable and advocated creating institutions such as a directly elected United Nations Parliamentary Assembly to exercise oversight over unelected international bodies.
Economist Paul Krugman is a staunch supporter of globalization and free trade and has a record of disagreement with many critics of globalization. He argues that many of them lack a basic understanding of what comparative advantage is.
Some countries have embraced isolationism. For example, the North Korean government makes it very difficult for foreigners to enter the country and strictly monitors their activities when they do. Aid workers are subject to considerable scrutiny and excluded from places and regions the government does not wish them to enter. Citizens cannot freely leave the country.
The establishment of the WTO in 1995 led to an anti-globalization movement that was primarily concerned with the negative impact of globalization in developing countries. Their concerns ranged from environmental issues to issues like democracy, national sovereignty and the worker exploitation.
Opponents in developed countries were disproportionately middle-class and college-educated. This contrasted sharply with the situation in developing countries, where the anti-globalization movement was more successful in enlisting a broader group, including millions of workers and farmers.
"Anti-globalization" activities include attempts to demonstrate sovereignty, practice democratic decision-making, restrict the international transfer of people, goods and disfavored beliefs, particularly free market deregulation. Naomi Klein argued that the term could denote either a single social movement or encompass multiple social movements such as nationalism and socialism.
Hirst and Thompson reject the term as too vague. Podobnik states that "the vast majority of groups that participate in these protests draw on international networks of support, and they generally call for forms of globalization that enhance democratic representation, human rights, and egalitarianism."
Other terms include Global Justice Movement, the Anti-Corporate-Globalization , the Movement of Movements (Italy), the Alter-globalization (France) and Counter-Globalization.
Joseph Stiglitz and Andrew Charlton write:
The anti-globalization movement developed in opposition to the perceived negative aspects of globalization. The term 'anti-globalization' is in many ways a misnomer, since the group represents a wide range of interests and issues and many of the people involved in the anti-globalization movement do support closer ties between the various peoples and cultures of the world through, for example, aid, assistance for refugees, and global environmental issues.
Critiques of economic globalization typically look at both the damage to the planet as well as the human costs. They challenge directly traditional metrics, such as GDP, and look to other measures, such as the Happy Planet Index. They point to a "multitude of interconnected fatal consequences–social disintegration, a breakdown of democracy, more rapid and extensive deterioration of the environment, the spread of new diseases, increasing poverty and alienation" which they claim are the unintended consequences of globalization.
The terms globalization and anti-globalization are used in various ways. Noam Chomsky stated:
The term "globalization" has been appropriated by the powerful to refer to a specific form of international economic integration, one based on investor rights, with the interests of people incidental. That is why the business press, in its more honest moments, refers to the "free trade agreements" as "free investment agreements" (Wall St. Journal). Accordingly, advocates of other forms of globalization are described as "anti-globalization"; and some, unfortunately, even accept this term, though it is a term of propaganda that should be dismissed with ridicule. No sane person is opposed to globalization, that is, international integration. Surely not the left and the workers movements, which were founded on the principle of international solidarity — that is, globalization in a form that attends to the rights of people, not private power systems.
The dominant propaganda systems have appropriated the term "globalization" to refer to the specific version of international economic integration that they favor, which privileges the rights of investors and lenders, those of people being incidental. In accord with this usage, those who favor a different form of international integration, which privileges the rights of human beings, become "anti-globalist." This is simply vulgar propaganda, like the term "anti-Soviet" used by the most disgusting commissars to refer to dissidents. It is not only vulgar, but idiotic. Take the World Social Forum, called "anti-globalization" in the propaganda system – which happens to include the media, the educated classes, etc., with rare exceptions. The WSF is a paradigm example of globalization. It is a gathering of huge numbers of people from all over the world, from just about every corner of life one can think of, apart from the extremely narrow highly privileged elites who meet at the competing World Economic Forum, and are called "pro-globalization" by the propaganda system. An observer watching this farce from Mars would collapse in hysterical laughter at the antics of the educated classes.
Critics argue that globalization results in:
Critics charged that globalization developed according to corporate interests. They advocated global institutions and policies that they believe better addressed the moral claims of poor and working classes as well as environmental concerns.
Critics included church groups, national liberation factions, peasant unionists, intellectuals, artists, protectionists, anarchists, those in support of relocalization (e.g., consumption of nearby production) and others. Some were reformist, (arguing for a more moderate form of capitalism) while others were revolutionary (power shift from private to public control) or reactionary (public to private).
Economic arguments by fair trade theorists claim that unrestricted free trade benefits those with more financial leverage (i.e. the rich) at the expense of the poor.
Americanization related to a period of high political American clout and of significant growth of America's shops, markets and object being brought into other countries. So globalization, a much more diversified phenomenon, relates to a multilateral political world and to the increase of objects, markets and so on into each others countries.
Critics of globalization talk of Westernization. A 2005 UNESCO report showed that cultural exchange is becoming more frequent from Eastern Asia but Western countries are still the main exporters of cultural goods. In 2002, China was the third largest exporter of cultural goods, after the UK and US. Between 1994 and 2002, both North America's and the European Union's shares of cultural exports declined, while Asia's cultural exports grew to surpass North America. Related factors are the fact that Asia's population and area are several times that of North America.
Some opponents of globalization see the phenomenon as the promotion of corporatist interests. They also claim that the increasing autonomy and strength of corporate entities shapes the political policy of countries.
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