(Chapter 13) in “Social Problems in Canada” Globalization and Global Problems (Chapter 13) in “Social Problems in Canada” Presented by: Hesam Seyedi & Gopal

Question: What is Globalization? What is Globalization?

Globalization Discussed: "The simple definition of globalization is the interweaving of markets, technology, information systems and telecommunications systems in a way that is shrinking the world from a size medium to a size small, and enabling each of us to reach around the world farther, faster, deeper, and cheaper than ever before, and enabling the world to reach into each of us farther, faster, deeper, cheaper than ever before. That's what globalization is." - Thomas Friedman

The Extent of Globalization Princess Diana Death "An English princess with an Egyptian boyfriend crashes in a French tunnel, driving a German car with a Dutch engine, driven by a Belgian who was drinking Scottish whiskey, followed closely by Italian Paparazzi, on Japanese motorcycles, treated by an American doctor, using Brazilian medicines! And this is sent to you by a Canadian, using Bill Gates' technology which he got from the Japanese … And you are probably reading this on one of the IBM clones that use Philippine-made chips, and Korean made monitors, assembled by Bangladeshi workers in a Singapore plant, transported by lorries driven by Indians, transported by Indonesians and finally sold to you by a Chinese! … And you are probably reading this on one of the IBM clones that use Philippine-made chips, and Korean made monitors, assembled by Bangladeshi workers in a Singapore plant, transported by lorries driven by Indians, transported by Indonesians and finally sold to you by a Chinese! … And this Presentation is being presented by an Iranian and a Bengali That’s Globalization !!

Globalization and Global Problems Globalization Means Different things to Different People: Globalization alarms people, reassures others, confuses most people Globalization Means Different things to Different People: Globalization alarms people, reassures others, confuses most people Globalization as Economic Prosperity, Market Fundamentalism, Globalization as an Connector Instrument, Globalization as Democracy Three Conundrums of Globalization: 1) How does economic integration not lead to social disintegration; 2) How to maintain/ create social cohesiveness on shared values on mutual commitment and trust but also through the distribution of benefits; 3) How to balance an intrusive government intervention and unregulated market forces

Globalization and Global Problems (cont’d) Haves vs. Have-Nots: The economic balkanization of the haves and have-nots are often the byproducts of fate. The "lucky" ones are born in the right time and right place, while the unlucky ones (majority of the world) are born in the wrong place and time. Often time, the policies that is supporting capitalism, and perpetuating the economic destitution and hopelessness of the "have-nots" resort to violence to try to rip the capitalistic system down. Integration, or Division? Globalization is producing lots of contradictions. Perhaps its biggest paradox is why does globalization - a process that promises to unite the world under prosperity and success - fostering such a huge division? The coming-togetherness of globalization is a hard logic to stomach, when there are many conflicts emerge, like the open vs. tradition bound societies, a conflict between rule of law state and lawless territories, and also between modest cultures and excessive consumerism.

Phenomenon of Globalized Problems: –(1) Prospects for peace is undermined because war emerges from conflicts involving genocide and intercommunal massacres; –2) poverty and inequality emerge, a situation where both rich and poor live side-by-side nationally and internationally; –3) the problem of sustainable development and management of global environment; –4) a society will have to control its own destiny, and set-out an agenda of priorities, which will have to factor-in globalizing forces

Tensions of Racism in “Globalized Cities” Globalized Cities: Mass migration (for better economic and political opportunities) means that interaction between people of different ethnicities/ races and creeds will become commonplace. They will occupy the same place, and this will provoke extreme reactions (either an accommodative one, or one of racism, hate and violence) … >>>>>>>> >>>>>>>>

Question: Since Toronto is known as the “most ethnically diverse” city in the world, it’s successfully been able to alleviate racism and all its stereotypical offshoots? Think: Is there serious problem of racism in Toronto? Would what goes on in Europe, i.e. Arab-African riots in France/ Racism in Football, happen here?

Framing the Problem Disarrayed World: The global drive for growth is laying waste to a planet that cannot possibly sustain a consumer-driven lifestyle without self-imploding. United Nations Human Development Report: Statistics (i.e. nearly 1 billion are illiterate) Global Apartheid: This enormous gap between the rich and the poor is moving towards a “global apartheid” where extremes of power and wealth are placed into geographically segregated zones to create an “apartness” Tribalism, xenophobia, and ethnic chauvinism Who is to blame for the social problems in the developing world? Globalization is Colonialism by another name? Raging Debate about Globalization? Good or bad?

Framing the Problem (cont’d) Globalization Brings Forth Benefits (economic benefits for the rich) and Costs (human costs and consequences) Cultural diversity, social security, ecological sensitive practices are becoming displaced by global governance that praises commercialism, consumerism and a culture of disenchantment The structural forces (i.e. IMF Liberalization Programmes) and government polices (i.e. policies that weaken the social safety net in favour of privatization) that perpetuate patterns of dependency and underdevelopment must shoulder the blame Westernization = Globalization? Ramifications for 3 rd -World Countries

Globalization: Problem or Solution? Globalization as Redefining Change: Just like the Industrial Revolution, globalization entails radical change. Pundits emphasize different features of globalization to stress the kind of changes that globalization brings. Globalization as a Solution: Communication allows the world to be a global village; free movement of capital/ investment allows for well- needed funding of underdeveloped industries in underdeveloped countries; Globalization as a Problem: ruin third world economy; international division of labour; increase the economic discrepancy between classes; monoculturalism

Reactions to Globalization Globalization, Promoter of Strong Reaction: Protests, Terrorism Concerns About Globalization: Foremost in these fears are over unbridled American power, might of big business, pace of economic change, growing divide between rich and poor, failure of state to regulate market fundamentalism, regional inequalities Commoditization of Everything: Consequently, a system that is so hell-bent out on defining everything by the market will have a market value (everything is fitted into a supply and demand category) Triumph of Liberalism: Globalization is packed with a liberal ideology, which preaches individualism (as opposed to collectivism), “rationality” (as opposed to tradition) and progress (as opposed to “backward-oriented” societies)

Reactions to Globalization (cont’d) Benefits of Globalization: Benefits are fourfold (1) Expanded pie vision so that everyone’s lot is improving; (2) information penetration which will undermine elite control while creating a real-time information economy; (3) a universal solvent vision that washes away autocratic regimes through trade liberalization and foreign investment; (4) “peace dividend” by weaving interdependencies between nation-states (i.e. in particular, democratic peace theory – that democracies don’t go to war with one another) Information Age: Globalization has been also synonymous with the information age Outsourcing: Outsourcing occurs when companies find a nation, where they do business, that is cheap (in labour wages) and considered “business-friendly” >>>>>>>>>>>>>>>> >>>>>>>>>>>>>>>>

Multi-dimensional Globalization: Globalization is multidimensional, it is an economic phenomenon; political phenomenon; cultural; social disruption and communicative Globalization is a Bourgeoisie Process: Globalization is defined as the geographic penetration of capitalist market relations into new sites of production in relentless quest of profits. Four Implications that Follow: 1) Globalization constitutes an international system of exchange with its own set of rules, logic, structures and procedures (there is a significant increase in cross- national flows of trade, investment, and technology that reflects and reinforces a global division of labour; (2) Globalization goes beyond a simple economic shift created by the cross-border exchanges of high technology, instantaneous communication, investment, reduced subsidies, and free trade; 3) the ascendancy of globalization has compelled a rethinking of what society is for; 4) the interplay of world economic markets and globalization has undermined conventional thinking about national sovereignty Common Theme of Globalization: The common theme is that globalization offers both the prospects of great benefits, but these benefits are often overshadowed by the human costs and consequences. Globalization is a double-edged sword.

Transnational Corporations: Engines of Injustice Or Catalyst for Growth? Transnational Corporations: Engines of Injustice Or Catalyst for Growth? What is a transnational corporation? A corporation that is generally based in an affluent country and has branches, networks, productions or affiliations placed internationally. A corporation whose profit making and production tentacles has no limits, reaching anywhere in the world. 60,000 Transnational corporations drives Globalization with more than half a million overseas affiliates, accounting for about one-quarter of total global output By the late 1990’s 51 of the top 100 economies in the world were transnational corporations.

51 Out of Top 100 Economies, Are TNCs 23) General Motors 176, ($ million) 24) Denmark174, WalMart 166, ($ million) 25) Exxon Mobil 163, ($ million) 26) Ford Motor 162, ($ million) 27) Daimler Chrysler159, ($ million)

TNCs (cont’d) How much money do they make? Just the combined revenue of the 200 largest corporations is 7.1 trillion which is greater than that of the 182 nation-states that have responsibility for the livelihood of 80 % of humanity. What is so bad about transnational corporations? enrich themselves at the expense of the poor; destroy local industries; control and perpetuate the exploitation of people; consumers perpetuating and expanding unjust globalized practices Good Side of TNC: Extremely efficient profit generating “machines;” revitalize economies; can propel development; spill-over effect; technological transfers How have transnational corporations come to power? countries are absorbed into a capitalist world system; consumers perpetuating and expanding unjust globalized practices etc. >>>>>>>>>>>> >>>>>>>>>>>>

Questions: How much blame can we place on ourselves for the expansion of transnational corporations in its unjust globalized practices? (Keeping in mind that we are the consumers of these tainted goods and services who these corporations profit from)