Transcript Winner and Losers in Globalization - St. James

Winner and Losers in
Globalization
• “Globalization, as defined by rich people
like us, is a very nice thing…You are
talking about the Internet, you are talking
about cell phones, you are talking about
computers. This doesn’t affect two-thirds
of the people of the world.”
• President Jimmy Carter
View Point
• “Uneven globalization is bringing not only
integration, but also fragmentation-dividing
communities, nations, and regions into those
that are integrated and those that are excluded.”
• United Nations Development Program (UNDP)
1999.
• “Companies have nothing against Africa, it’s that
the stability, infrastructure and skills are not
there.” -Salim Jahar. Economist (UNDP)
• Many people in the
developing world, like
these children playing
near a settlement in
Kenya, lack the
communications
technology required
to become part of the
new global era.
For the global good?
• Globalization can be very beneficial, but
only to a select few.
• While millions of people remain isolated
from the global community.
• For example, it is estimated that 50% of
the world’s population has not made a
phone call (Bowden, 28)
A divided world
• Critics of globalization argue that, far from
uniting the world, globalization is actually
making it more divided.
• In 1960, for example, the richest 20% of
the world’s population controlled 70% of
global wealth.
• By 2000, their share had increased to
80%.
• While the rich get
richer the poor seem
to be getting poorer.
• The poorest members of society are often
denied a role in the global economy because
they cannot read or write, or because they speak
the wrong language.
• Wealthier people, in contrast, can generally,
afford to par for their children to be educated at
a higher level.
• Furthermore, many local jobs formerly done by
the poorer sectors of society are now being
done by machines to make production more
efficient.
From Computers to Cat Washes
Viewpoint 2
• “In this new competitive world…it is the
unskilled that fare worst. They have
become…effectively commodities, easily
replaceable by an ever-growing overseas
supply.” (Noreena Hertz. The Silent
Takeover. 2001).
• Think about what this quote is saying.
Would you agree or disagree? Explain.
Personal Gain
• So who benefits?
• The most dramatic winners of globalization are a small
handful of chief executive officers (CEOs) of the world’s
largest TNCs (Transnational Corporations).
• For example, Bill Gates, the CEO of Microsoft, had
amassed a personal fortune worth $52.8 billion by 2001.
This is equivalent to the combined national incomes of
Kenya, Jamaica, Sudan, Nepal, Ecuador, and Georgia.
• The richest 200 share an income greater than that of the
poorest 41% of the world’s population, about 2.4 billion
people!!
Richest People
National Losses
• Globally there are 3 billion people that live on 2
dollars or less per day.
• That’s almost half of the world’s population.
• These people have not benefited from
globalization and many of them are not
connected to the Internet, and the majority of
them lack the education and skills necessary to
play a role in the global environment.
• Many of these people immigrate to other
countries that are already wealthy; this is called
a “brain drain.” (Bowden 31).
• In India, for example, 100,000 professionals a
year are expected to be granted visas by the US
to move there.
• The loss of their skills is estimated to cost India
economy about $2 billion.
• Fact: In one year Nike paid the Michael Jordan
$25 million to advertise its shoes-the same
amount as 35,000 Vietnamese workers were
paid to make them (Bowden 31).
New Connections
• A benefit of the global labor market is that,
with citizens working overseas, valuable
trade and business links can be
established.
• For example, the Indian, Pakistani, and
Chinese communities have developed
strong trade links with people in their
countries of origin.
Widening the Gap
• Fact: Africa spends
$14.5 billion each
year repaying debts
to the international
community (WHO,
WB, IMF), but
receives only $12.7
billion in aid from
other countries.
• Does this make
sense?
• By locating low-skilled, poorly paid
employment in less-developed regions,
and keeping higher-skilled and better-paid
jobs in the developed nations (where most
TNCs are not based), TNCs may be
deepening the divisions of society.
• This is done all at the expense of the poor.
• Many countries spend half of what they
get in exports to pay off their debts.
So is it all about the mighty dollar?
To some TNCs
and MNCs YES!!
But this isn’t true
for all
Not all about $$$$$
• Although globalization tends to be dominated by:
business, finance, and economics, is about
much more.
• It also concerns our daily lives and how we are
affected by its process.
• Exit Slip 1: Write a paragraph answering the
question below. Make sure you PEE (PointExample (2-3)-Explain (your opinion)
• Overall, do you think globalization is creating
more winners or more losers? What could be
done to make more people winners?
Works Cited
• Bowden, Rob. Globalization: The Impact
On Our Lives. Chicago: 2004.