Anti-Globalization

--Another Type of Globalization

Yingxia Hou
Peng Chen
Agenda

 Definition and influence of Globalization

 Pros and Cons of Globalization
 Definition, movements and causes of Anti-
globalization
 Why anti-globalization?
 Example victims of globalization
 Conclusions and recommendations
What is Globalization?

 Increasing global connectivity.

 Integration and interdependence in the
economic, social, technological, cultural,
political, and ecological spheres.
 An umbrella term and is perhaps best
understood as a unitary process inclusive of
many sub-processes that are increasingly
binding people and the biosphere more tightly
into one global system.
The influence of globalization
 Industrial - emergence of worldwide production
markets and broader access to a range of goods for
consumers and companies.
 Financial - emergence of worldwide financial
markets and better access to external financing for
corporate, national and subnational borrowers.
 Economic - realization of a global common market,
based on the freedom of exchange of goods and
capital.
The influence of globalization
 Political - Political globalization is the
creation of a world government which
regulates the relationships among nations
and guarantees the rights arising from social
and economic globalization.
 Social - the achievement of free circulation
by people of all nations.
 Informational - increase in information flows
between geographically remote locations.
The influence of globalization

 Cultural - growth of cross-cultural contacts;

cultural diffusion; "world culture".
 Ecological- the advent of global
environmental challenges that can not be
solved without international cooperation, such
as climate change, cross-boundary water and
air pollution, over-fishing of the ocean, and
the spread of invasive species.
Pros and Cons of Globalization
 Pros
 Productivity grows more quickly when countries produce
goods and services in which they have a comparative
advantage. Living standards can go up faster.

 Global competition and cheap imports keep a lid on prices,

so inflation is less likely to derail economic growth.

 An open economy spurs innovation with fresh ideas from

abroad.

 Accelerated the development and innovation of technology

and communication
Pros and Cons of Globalization
 Cons
 Millions of westerns have lost jobs due to imports or
production shifts abroad. Most find new jobs that pay less.
 Millions of others fear losing their jobs, especially at those
companies operating under competitive pressure.
 Workers face pay-cut demands from employers, which
often threaten to export jobs.
 Service and white-collar jobs are increasingly vulnerable to
operations moving offshore.
 western employees can lose their comparative advantage
when companies build advanced factories in low-wage
countries, making them as productive as those at home.
Other faces of Globalization

 Globalization= Imperialism
 Globalization = Americanization
 Globalization = Delocalization
 Globalization = Multinational corporations
 Globalization = Branding
 Globalization = the rich gets richer, the poor gets
poorer
What is anti-globalization?

 The political attitude of people and

organizations that resist certain aspects of
globalization.
 social movements
 participants are united in opposition to the
political power of large corporations
 Self-consciously internationalist, organizing
globally an advocating for the cause of
oppressed people around the world
Anti-globalization Movements
 J18
 June 18, 1999

 London, UK; Eugene, Oregon

 Seattle/N30
 November 30, 1999

 5,000 protesters blocked delegates’ entrance to WTO meetings in

Seattle
 Protesters forced the cancellation of the opening ceremony and lasted
the length of the meeting until December 3

 Genoa
 July 18 – July 20, 2001

 Biggest anti-globalization gathering in

history, 250,000 protesters against the G8

meeting in Genoa, Italy
 3 dead, hundreds hospitalized
Causes of Anti-globalization Movement

 Globalization globalizes money and

corporations, but not people and unions
 Outsourcing and offshoring caused millions of
westerns lost jobs or paid less
 Fear losing jobs in western countries
 Exploitation of the resources in the
developing countries by western countries
Why anti-globalization? (cont’d)
 Economical
 Exploitation of the resources in the third world

country
 Example of Starbucks Vs. Ethiopian Coffee

 Ethiopians demand Starbuck’s support to trademark

3 of its coffees in US
 $4, a cup of Cappuccino at Starbucks;
 $.50, a day income
of the Ethiopian farmer
at the coffee farm
Why anti-globalization? (cont’d)
 Cultural
 Local or minority culture are facing the fate of

disappearing
 Western culture invaded into developing countries

 Example: McDonalds

 More than 100 countries

 30,000 restaurants
 Serves 50 million people daily
Why anti-globalization? (cont’d)
 Environmental
 Aggravated pollution, Global warming, losses in biodiversity

and species extinction

 Average global temperatures are estimated to rise 1- 3.5

centigrade (33.8 – 38.5 degrees) by 2050

 Developed industrial countries export hazardous waste to

third world countries

 Example: one global

agribusiness firm closed a terminal

in Brazil's Amazon region for
environmentalists
Why anti-globalization? (cont’d)
 Women and children
 90% of the workers at the
sweatshops are women
 Child labor hired by global

companies in developing countries

 Example: 14-year-old workers in Nike factories
in Indonesia
Why anti-globalization? (cont’d)
 Human rights
 More and more strict immigration restrictions in
developed countries, no free move for labors
 In sweatshops in developing countries, harsh working
conditions, low pay and overtime working are common
 Example: The Pouty Bratz dolls factory in Southern
China
 Working 94 hours a week
 17 cents, workers are paid for making each doll;
$19, retail price in US
 More than 120 million Bratz dolls sold in US since 2001
Why anti-globalization? (cont’d)
 Social
 The unequal wealth distribution worldwide

 The gap between the developed countries and the

third world counties

 The gap between

the poor and rich

Liberalization influence to Russia’s GDP
Indices of GDP(1991=100), Russia, 1990-2004

120

100

80

60

40

20

0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Source:http://www.tiger.edu.pl/publikacje/TWPNo85.pdf
Liberalization influence to Czech GDP
GDP Growth Rate of Czech Republic(1990-1999)

8
6
4
2
0
-2
-4
-6
-8
-10
-12
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Source:http://demography.anu.edu.au/Publications/Conf
erencePapers/IUSSP2001/TablesPhilipov.doc
Globalization impact to unemployment
rates of U.S. IT industry
Globalization might be harmful to
Developed Countries in the future
 China is striving to create global automobile
and electronics brands.
 India’s skill-intensive service sectors like IT
and outsourcing are rising very fast.
 Western firms would face unprecedented
competition from the two and other
developing countries.
Conclusions

 Anti-globalization movements are the

indication of self-protection.
 Globalization already resulted in many
adverse effects and made a portion of people
worse-off.
 Globalization makes highly liberalized
countries expose their vulnerabilities to the
rest of the world.
Can All Countries Benefit from
Globalization?
 Establish international monitoring system
 Domestic:
 each country should build up a system that can integrate into
the global market
 protectionism in the domestic market
 International:
 International institutions should reform to fit into the needs of
the globalization, such as IMF, World Bank, UN
 Be more responsible for all the countries, rather than some or
few countries
 Be more transparent and be monitored by member countries
from third world
Can All Countries Benefit from
Globalization?
 To enhance corporations between countries and
regions
 Make free trade free and fair for both developing

and developed countries

 Eliminate or reduce the trade barriers

 Get more countries involved into the global

market
 Equal and balance development in the global

market
Questions and Comments