ECONOMIC GLOBALIZATION Think about some of the ways that the expansion of economic globalization has affected people’s lives…
• Bottled Water: this industry didn’t exist ten
years ago…now it is worth $100 Billion US per year…so, who should have control over safe drinking water? The industry (private businesses) or the government? Transnationals • Transnationals: the sales of large transnational corporations exceed the GDP (Gross Domestic Product) of some countries. What does this say about the power of TNC’s in the global economy? Genetically Modified Food • The agribusiness industry is able to produce food with altered DNA codes. This means that products like tomatoes have a longer shelf-life. But what are the implications of genetically altered food? Technology • Advances in transportation technology allow people and goods to be quickly transported almost anywhere in the world. On the other hand, what does the resulting increased fuel consumption mean for the environment? How have international agreements and organizations influenced economic globalization? • The World Trade Organization – Works to improve trade relations among the countries of the world – Removes tariffs and other trade barriers or disputes between countries – It is the only organization that deals with the global rules of trade among countries The World Trade Organization • Trade disputes that arise among the WTO member countries are brought before tribunals of trade exports and lawyers. • The tribunals decide which country is in the wrong and what that country is required to do to meet WTO regulations. • Countries that refuse to abide by the rulings can face economic sanctions from other members or be expelled from the WTO. G8 • The Group of Eight (G8) is an informal group of the eight major industrial democracies. • It was previously known as the G7, until Russia became a full participant in 1998. • G8 leaders and representatives from the European Union meet at annual summits to discuss economic and foreign policies. G8 Members • Canada • France • Germany • Italy • Japan • Russia • United Kingdom • United States G8 • The G8 is not an institution like the WTO, or the United Nations, but it does play an important role in global governance because it is able to influence official global institutions. GLOBAL GOVERNANCE • According to the UN Report on Global Governance, global governance is not global government but a system of rules to manage global affairs, to be “responsive to the interests of all peoples in a sustainable future,” to be “guided by basic human values,” and to make global organizations “conform to the reality of global diversity. This means… • That global governance is different from global government in that global governance is a means of exerting influence and suggesting rules of conduct in global affairs in a way that is fair and inclusive; it is based on and requires international cooperation. • Governments enact and enforce laws. Global government, if one were to exist, would require nations to give up their sovereignty and allow it to control and make decisions for everyone. For Example… • The G8 countries have nearly 50% of the vote in the World Bank and the International Monetary Fund, and have a considerable impact on the policies of the WTO. • In this way, the G8 has played a role in the expansion of economic globalization. Criticisms of the G8 • Some experts say that the G8 countries represent the interests of an elite group of more developed countries and fails to consider the needs of the rest of the world. • They point to the fact that countries with fast-growing economies and large populations, such as China or India, are not included in the G8, nor or African or Latin American countries. The G8 • During annual summits, the G8’s promotion of economic globalization has often resulted in anti-globalization protests. • Others maintain that the G8 has been instrumental in aiding less-developed countries. • They point to the G8’s campaigns to combat disease (HIV/AIDS) as well as development programs and debt-relief plans. La Francophonie • One of the functions of La Francophonie is to promote and protect the culture of French-speaking peoples (ch.5) • But, this organization also plays an important role in enhancing the economic development of countries with French- speaking citizens. La Francophonie • Canada is one of its original members and, as on of its wealthiest members, enjoys a leadership role in La Francophonie • Canada wants to help the least developed French-speaking countries who are struggling to gain some of the benefits of becoming part of the global economic system. The Canadian International Development Agency (CIDA)
• Canada provides foreign aid to less-
developed countries through the International Development Agency. • Their mandate is to “support sustainable development in developing countries in order to reduce poverty and contribute to a more secure, equitable and prosperous world” CIDA • If a country experiences a natural disaster such as an earthquake or a hurricane, CIDA contributes short- term humanitarian aid in the form of money, supplies, and human resources. CIDA • To support long-term sustainable development, CIDA sponsors medical personnel, farmers, teachers, technicians, and other advisors to help people in less developed countries find lasting solutions to their problems. CIDA • One of CIDA’s priorities is to promote human rights, democracy, and good governance in less developed countries. Foreign Assistance • In 2002-2003, Canada’s aid budget was $2.3 billion, or 0.24 of gross domestic product. The Canadian government announced plans to double that amount by 2010, which would increase our contribution to 0.4% of GDP…The UN recommends that more developed countries contribute to 0.7% of their GDP. Question… • With that, do you think Canada should allocate more money to foreign aid, or concentrate more on helping disadvantaged people within our own country, or both? • Explain your reasons…
(Studies in American Popular History and Culture) Gail Fowler Mohanty - Labor and Laborers of The Loom - Mechanization and Handloom Weavers, 1780-1840 - Routledge (2006)