Transcript Watching What We Eat - Worldwatch Institute

Linking Globalization,
Consumption, and
Governance
Hilary French
State of the World 2004
Linking Globalization,
Consumption, and Governance
Overview:
1. The Spread of McWorld
2. Global Cooperation for
Sustainable Consumption
3. From Johannesburg to Cancun
and Beyond
Linking Globalization,
Consumption, and Governance
Today’s global economy insulates consumers
from the various negative impacts of their
purchases by stretching the distance
between the different phases of a product’s
lifecycle – from raw material extraction to
processing, use, and disposal
The Spread of McWorld
“onrushing economic, technological, and
ecological forces… demand integration and
uniformity and… mesmerize peoples
everywhere with fast music, fast computers,
and fast food…, one McWorld tied together by
communications, information, entertainment,
and commerce”
- Benjamin Barber, 1995
The Spread of McWorld
• The consumer society of the west is rapidly
spreading to the rest of the world
• Globalization over the 1990s was closely linked
with a general economic boom that saw rapid
growth in the movement of goods, services, and
money across international borders
• The growth of global trade and investment has
contributed to lower costs for many consumer
goods
Examples of Corporations
with a Global Presence
Coca-Cola
- sells more than 300 drink brands
in over 200 countries; more than
70% of the corporation’s income
originates outside of the U.S.
(net revenues = $19.6 billion in
2002)
McDonald’s Corp.
- serves 46 million customers each
day; operates 30,000 restaurants
in 119 countries (total revenue =
$15.4 billion in 2002)
Examples of Corporations
with a Global Presence
Levi Strauss
- sells clothing in more than 100
countries; its trademark is
registered in 160 countries
(total sales = $4.1 billion in 2002)
Siemens
- German company, represented in
190 countries; sells mobile
phones, computers, medical
supplies, lighting, and
transportation systems
(net sales = $96.4 billion in 2002)
Trillion Dollars (2002 dollars)
World Export of Goods and
Services, 1950-2002
9
8
7
6
5
4
3
2
1
0
1950
Goods and Services
Goods
1960
1970
1980
Source: IMF
1990
2000
2010
Downside of Global
Consumption Binge
Forests
- value of world trade in forest
products climbed fourfold between
1961 and 2001, reaching $132
billion
- meanwhile, the Earth’s overall
forest cover has steadily declined
Fisheries
- world value of fish exports nearly
tripled between 1976 and 2001,
reaching $56 billion
- meanwhile, the health of world’s
fisheries has deteriorated, with 75%
of world’s fish stocks fished at or
beyond their sustainable limits
Ecological Footprint
• The ecological footprint accounting system
measures the amount of productive land an
economy requires to produce the resources it
needs and to assimilate its wastes
• Countries whose ecological footprints exceed
their available ecological capacity often import
goods from countries enjoying surpluses, leading
to ecological trade deficits
Ecological Footprint per Person
in Selected Nations, 1999
10.1
United Arab Emirates
U.A.E.
1.3
9.7
United
United States
States
5.3
4.8
Netherlands
Netherlands
0.8
4.8
Japan
Japan
0.7
1.5
1.0
China
China
0
Source: Redefining Progress
Available capacity
Ecological footprint
2
4
6
Hectares
8
10
12
The Spread of McWorld
• Corporate strategies rely on visions of rapid
growth in the developing world, sparked by
increased consumerism in these nations
• But if the entire world were to adopt the
consumption patterns of industrial nations,
unbearable strain would be placed on the
health of the Earth’s natural systems
• Challenge in the developing world: to develop
strategies for leapfrogging directly to a
sustainable economy
The Spread of McWorld
Due to the global trade network, consumers
are often shielded from the profound effects of
their choices and consumption patterns on
people and the environment
Example: Electronic Waste
What happens to the growing mounds of
computers, mobile phones, televisions, and
other electronics that are discarded every day?
• In China, unprotected migrant
workers sift through the piles of
electronic waste, burning plastics,
cracking apart cathode ray tubes,
and pouring acid over circuit boards
to extract precious metals
• This process releases carcinogenic
smoke in the air and severely
pollutes the water
Example: Banana Industry
How are prices for bananas kept so low?
• In Panama, bananas are grown in
huge, monoculture plantations that
are heavily dosed with pesticides
applied directly by unprotected
workers or through aerial spraying
• The chemicals pollute the water
supply, and have been linked with
increased cancer rates in local
communities
Example: Coffee
What are the benefits of fair-trade coffee?
• Fair trade guarantees coffee
growers a set price above world
market levels, to cover production
costs and to assure a decent living,
and a range of other social and
environmental benefits
• More stable markets allow farmers
to grow shade-grown, organic coffee
in areas once heavily dosed with
pesticides
Global Cooperation for
Sustainable Consumption
International awareness of these problems
is growing, and commitments are being
made to transform unsustainable patterns of
consumption and production
Highlights of the Earth Summit
in Rio de Janeiro, 1992
• Recognition of the disparity between the excessive
demands and unsustainable lifestyles of the rich
and the inability of the poor to meet their basic
needs
• Action plan initiated to
- promote greater energy and resource efficiency
- minimize waste generation
- encourage environmentally sound purchasing
decisions
- shift toward pricing systems that incorporate
hidden environmental costs
In the decade following the
Earth Summit…
• Several international organizations have been
active in follow-up
- U.N. Commission on Sustainable Development
- U.N. Environment Programme (UNEP)
- Organization for Economic Cooperation and
Development (OECD)
In the decade following the
Earth Summit…
•
Governments made progress in strengthening
several international treaties
- 2000 Cartagena Protocol on Biosafety to the
U.N. Convention on Biological Diversity
- 2000 Stockholm Convention on Persistent
Organic Pollutants
- 1997 Kyoto Protocol to the U.N.’s Framework
Convention on Climate Change
In the decade following the
Earth Summit…
• Forest Stewardship Council (FSC)
- independent body established to set standards
for sustainable forest production through a
cooperative process
- 39 million hectares of commercial forest in 58
countries have been certified
• Marine Stewardship Council (MSC)
- modeled on the FSC
- 170 certified seafood products are offered in 14
countries
Global Cooperation for
Sustainable Consumption
However, the limited gains made since the
Earth Summit in 1992 have been largely
overwhelmed by the continued global growth
of the consumer society
Highlights of the 2002 World Summit on
Sustainable Development in Johannesburg
• Some elements of the Plan of Implementation:
- involving governments from all countries,
international organizations, the private sector,
and NGOs in bringing about the needed shifts
- increasing investments in cleaner production
and eco-efficiency
- enhancing corporate environmental and social
responsibility
- promoting the internalization of environmental
costs and environmentally sound procurement
policies
From Johannesburg to Cancun
and Beyond
• Ministerial meeting of the World Trade
Organization (WTO) in Cancun, 2003
- Fundamental differences exist between
international trade rules and emerging
environmental practices that can impede
efforts to promote more sustainable patterns of
consumption and production
- Disputes over issues such as investment,
government procurement, and agricultural trade
subsidies brought the talks to a halt
Examples of Clashes Between
Trade and Environmental Policies
Beef Hormones (European Union and U.S.)
- The EU banned the import of beef
from the U.S. after growth-promoting
hormones were found in the meat
- The U.S. imposed retaliatory trade
restrictions against the EU
Tuna-Dolphin (U.S. and Mexico)
- The U.S. passed a law restricting
imports of tuna fish caught in
ways that harm dolphins
- The General Agreement on Tariffs and
Trade panel concluded the U.S. could
not embargo Mexican tuna imports
Examples of Clashes Between
Trade and Environmental Policies
Shrimp-Turtle (India and U.S.)
- The U.S. banned imports of shrimp
harvested by methods harmful to sea
turtles
- The WTO Appellate Body ruled
against the U.S.
Genetically Modified Organisms (U.S. and EU)
- The EU banned the import of GMOs,
viewing them as a health risk
- The U.S., Canada, and Argentina
asked the WTO to form a dispute
panel regarding the issue
From Johannesburg to Cancun
and Beyond
• The way forward is complicated by the need
to forge a consensus among a great
diversity of interests from around the world
• However, the terms of the debate are shifting
as a growing number of people support the
development of a global community based
on respect for people and nature
About the Author
Hilary French is a Senior Researcher
at the Worldwatch Institute and
Director of the Institute’s
Globalization and Governance Project
More information on
State of the World 2004
at www.worldwatch.org