Globalization Douglas Brown Politics 220 March 2006

Globalization Both a new and an old phenomenon Economic, political and cultural aspects Canada uniquely exposed? Effects are highly contested -- need to separate rhetoric from reality

Defining Globalization Not new but intensifying… Internationalization Internationalization Liberalization Liberalization Universalization Universalization Westernization Westernization What is new…? Speed of global interactions Speed of global interactions “Deep integration” of markets “Deep integration” of markets External influence on all aspects of domestic policy External influence on all aspects of domestic policy

Economic globalization Increasing international trade in goods and services, increasing direct foreign investment Globally integrated production by transnational corporations Global capital market of much greater size and speed All of the above contribute to much greater private and public sector competition, in even the smallest of firms and markets

Globalization – Political and Cultural Aspects Intensifying of international governance WTO, regional trade agreements WTO, regional trade agreements United Nations agencies United Nations agencies Human rights movement Human rights movement Global markets for cultural products/ global diffusion of cultural and social trends “Global Civil Society” and the anti- globalization movement

Rhetoric versus Reality How much is neo-liberal ideology? How much real change is occurring? Globalization can be a form of determinism – e.g. an “end-of-ideology” Does not have the same intensity or impact everywhere Especially strong in Anglo world Especially strong in Anglo world Resisted in Russia, Africa, Islamic countries, Latin America Resisted in Russia, Africa, Islamic countries, Latin America

Canada and Globalization Strong exposure: A trading nation A trading nation Anglo culture Anglo culture North American setting North American setting Sorting out cause and effect: continental from global continental from global fiscal from economic fiscal from economic

Five indictments against globalization (Brooks) 1.Increasing poverty and inequality at home 2.Bigger income gap internationally 3.Undermines local cultures 4.Undermines government capacity and will 5.Creates more precarious national economies

Replying to these charges …1 Brooks: Poverty not necessarily on the increase in Canada Income inequality may be due as much to technology change as to trade Canada doing much better than USA on income inequality issue

Replying to these charges…2 Brooks: Globalization not necessarily making poorer countries poorer….many have little exposure to global trade Jennifer Welsh: rich country protection of agriculture badly harms poor countries trade potential (I agree !)

Replying to these charges…3 Brooks: Strength of local cultures should not be underestimated Note: Islamic countries resistance My question: is Canada able to resist US cultural “imperialism”? Do we care?

Replying to these charges…4 Brooks: State capacity has not been hollowed-out --- at least not everywhere. Cameron and Stein: depends on continuing orientation of each country to role of state My view: don’t forget that new trends in public management put much bigger emphasis on efficiency compared with equity – at some social cost

Replying to these charges…5 Brooks: global economy is vulnerable to supply chain disruptions 9/11…showed how vulnerable Canada is to US border closing My view: Global financial governance (e.g. G-20 group) is getting better at dealing with crisis points.

Readings Brooks, Canadian Democracy, chap 14 Bickerton and Gagnon, Canadian Politics Cameron and Stein, “Globalization and the State” Cameron and Stein, “Globalization and the State” Clarkson and Rangaswami, “Canada and Continental Integration under NAFTA” Clarkson and Rangaswami, “Canada and Continental Integration under NAFTA” Cooper, “Canadian Foreign Policy after September 11” Cooper, “Canadian Foreign Policy after September 11”