TABLE OF CONTENTS
International Organizations
Introduction
Globalization: Effects, Backlash, and Challenges
Globalization and Information Technology
Globalization and Income Inequalities
Cultural Dimensions of Globalization
Consequences of Globalization
Appendices
Index
Bibliography
Introduction
Since the end of the devastating World War II, the political, social, and
economic management of the world we live in has been tremendously altered with marvelous
global cooperation getting off the ground followed by scrupulous regional transformations
sprouting almost in every continent regardless of whether it is in Asia, Africa,
Europe, North and South America, and Australia. International nongovernmental
organizations (INGOs) include organizations like the International Committee of
the Red Cross} (ICRC) and Médecins Sans Frontières (MSF) also known as Doctors
Without Borders. On the other hand, intergovernmental organizations also known
as international governmental organizations (IGOs) include the United Nations
(UN), the Organization for Security and Cooperation in Europe (OSCE), Council
of Europe (CoE), the World Trade Organization (WTO), and the European Union
(EU). Intergovernmental military alliances like the North Atlantic Treaty
Organization (NATO), the Collective Security Treaty Organization, and the
European Security and Defense Policy are exclusively for defense purposes and
often involve risky commitments. The Warsaw Treaty (1955-91) was a treaty of
mutual defense or in other words a treaty of friendship, cooperation, and
mutual assistance between the former member-states the Soviet Union, Poland, East
Germany, Czechoslovakia, Hungary, Romania, Bulgaria, and Albania. International
corporations such as Coca Cola and
Toyota
are referred to as multinational corporations (MNCs). [
[i]]
The
first documented multinational corporation in modern history was the Dutch East
India Company that was established in 1602 to carry out 21-year colonial
activities in Asia. Also known as Vereenigde Oost-Indische Compagnie
or VOC in Dutch, it was arguably
the world’s first mega-corporation and was reputed to have transported
approximately a million Europeans to Asia ultimately leading to the
establishment of permanent settlements with Java in Indonesia becoming the first
station in 1603. Statistically, DOV is presumed to have utilized 4,785 ships
for its seafaring missions and reportedly accumulated a net income of 2.5
million tons of commercial Asian goods that were in the end traded in European
markets for significant profit. To deter
Dutch monopoly of trade in Asia, the English (later British) followed suit by
instituting a formidable ocean trade constituting 2,690 ships formed
exclusively to perform trade with the East Indies though it eventually became
one restricted to trading with the Indian subcontinent and China.
The need for formidable and invincible alliances and alleviation of nuclear deterrence
were the major factors behind the proliferation of regional and international
organizations while the formation of multinational corporations evolved as a
result of the profusion of capitalism in the western hemisphere and leanings
toward democratic governance which hitherto predisposed humans to search for
the virtues of liberty and justice. “The global political system has been
undergoing both integrative trends, brought about by increases in communication
and trade, and disintegrative trends, such as weapons proliferation, global
environmental deterioration, and ethnic conflict.” [
[ii]] Major wars, such as World War I, World War
II, and the Cold War brought about noteworthy changes in hypothetical explanations
of world political affairs with the emergence of realism, liberalism, and constructivism
followed by novel critiques of radicalism and feminism culminating in relative
theatrical gains in thoughts and actions among hegemons, emerging powers, and
nation-states.
International Organizations (IOs)
The hard work and dedication of responsible IOs operating in many parts of
the world may not be denied as select numbers have been in the forefront of
alleviating disease, hunger, and other forms of social sufferings found in the
most deprived parts of the world. A good example is the internationally
renowned organization Médecins Sans Frontières (MSF) that was awarded the Nobel
Prize in 1999 in recognition of its members' continuous effort to provide
medical care in acute crises, as well as raising international awareness of
potential humanitarian disasters. [
[iii]]
There have been several documented cases of environmental degradation by MNCs
as happened in Liberia a few years ago where Firestone was found to have
created extensive environmental degradation and to have allowed its local
employees live in squalid conditions. Seldom, MNCs have been accused of practicing
multifarious forms of exploitation, manipulate child labor, and cause
environmental degradation in regions governed by corrupt regimes where laws
are lax and ineffective. [
[iv]] As
long as MNCs abide by the internationally recognized environmental standards
management set forth by ISO 14000, there shouldn’t be any problem for MNCs
operating from far a field in developing countries. Another negative argument
by some writers or scholars is that MNCs drastically changes the infrastructure
of host countries and at the same time alter the culture and tradition of the
locals they encounter. Besides the cultural and environmental erosion created
by these foreign-based international institutions, a global effort can be
effected to put a cap on further degradation of cultures, traditions, and the
environment not only for the present but for posterity.
“The IMF, World Bank and the other international development banks have one
thing in common; they are public sector institutions, with no requirement to
turn a profit.” [
[v]]
Globalization: Effects, Backlash, and
Challenges
Globalization
is the collective integration of political, economical, and cultural efforts
across the globe. It emphasizes and incorporates trade,
technology, health, Culture, environment, migration, investment, banking, and money issues,
development, women and globalization, international law and organizations, energy, human rights, global education, and global
media. While globalization has been applauded in
different regions as a strong allocator of resources, distrust and indecision
to grasp its benefits has left many lagging behind in the field of economic
globalization. The consequences of off-shoring and outsourcing has had
detrimental effects on the dwindling North American job market. The net loss of
U.S. exports means the net
loss of
U.S.
jobs. NAFTA and economic globalization have compromised long-term growth both
in
Mexico and in the
United States.
[
[vi]]
In many regions of the world especially in
North America, there is cause for small-businesses to
celebrate because of the added advantages of globalization. Increased
production, enhanced communication, quicker movement of goods, and services as
a result of better transportation and the internet commerce have resulted in
unparalleled opportunities for small and medium-sized businesses. "Globalization and the Internet
have created unprecedented opportunities for small and medium-sized businesses
in
Canada"
[
[vii]]
Globalization and Information Technology
A clear picture of how globalization and information technology seem to
transform the world has best been noted by Thomas L. Friedman, author of
The World is Flat: A Brief History of the Twenty-First Century, where in his
discussion with Jaithirth “Jerry” Rao, owner of the Indian accounting firm
MphasiS, at the Leela Palace Hotel, the respected author states “…anything that
can be digitized can be outsourced to either the smartest or the cheapest
producer, or both.” [
[viii]]
Today’s globalization is not yesterday’s globalization. The current trend in
globalization and information technology is one of leaps and bounds-a
phenomenon noted since the end of the Cold War and the collapse of the Berlin
Wall.
Globalization and Income Inequalities
Attributing globalization to the downfall of the poor is outrageously a
misguided notion. With the exception of a few global leaders with inadequate,
unconvincing, ineffective, and unsatisfactory beliefs toward globalization, the
rest of the world remains convinced that globalization does more good than harm
to the poor. Those leaders opposed to globalization have the tendency to
suppress the four components that are harbinger for growth and development:
economic integration, technology, political engagement, and personal contacts. Trade,
direct foreign investments, capital inflows and outflows, and net factor income
are determining factors in economic integration. Table 1 shows the
globalization index for 2005. International phone traffic, international travel
and tourism, and cross border capital transfers, such as bank loans, securities
or aid, and remittances, which are defined as transfers of money by workers to
their home countries, are defined as personal contacts. [
[ix]] The
use of the internet, the number of available hosts, and secure internet servers
define technology. Both technology transfers and personal contacts drastically
reduce income inequalities within nations. Political engagement refers to
membership in international organizations, the number of diplomatic missions a
nation may have, and the number of diplomatic responsibilities or engagements
for any given nation within the broader U.N. Security Council. As shown in Table 2, the Heshmati index
places greater weight on technology than
Kearny.
The larger PC1 figures represent aggressive globalization and also represent
the first three components of globalization: economic integration, personal
contacts, and integration.
Cultural Dimensions of Globalization
Despite globalization integrating capital, technology, and information
across national borders, tension exists between the globalization system and
ancient forces of culture, geography, tradition, and community. [
[x]] Despite
the surfacing of threats from the combined forces of resistance, undoubtedly
globalization will go beyond the current novel innovations of world wide web,
internet, e-commerce, PayPal, microchips, and fiber optic cable because the
propensity of forces that are for globalization outnumber those that are against
its propagation.
Consequences of Globalization
A stunning 1.1 billion of the world’s population live below the poverty line,
which is equivalent to US$1. Table 3 defines data on poverty by region with
Sub-Saharan Africa taking the lead while countries in the western hemisphere
remain excluded due to their realization of considerable wealth and
consumerism.
Appendices
Index
Bibliography
Table 1
Source: Kearny
(2005), from “Measuring Globalization,” Page 55
Table 2
Table 3
2001 Poverty Statistics, using poverty line of $1 (1993)
Total
HCI Poverty Headcount
Number
Number Index
(HCI)
Poverty
(millions)
(millions)
(percent)
gap*
Sub-Saharan Africa
524
241
46
20
East
Asia and the Pacific
1747
245
14
3
South Asia
1351
432
32
7
Eastern Europe
461
14
3
0.8
Middle East and North Africa
222
4
2
0.5
Latin America and the Caribbean
499
50
10
3
*Poverty gap gives the
aggregate income shortfall as a percentage of aggregate consumption.
Source: World
Bank (2006)
Table 4
Source: Dagdeviren et al. (2001)
[[ii]] Charles W.
Kegley, Jr. and Shannon B. Blanton, World Politics: Trend and Transformation. Wadsworth
20 Channel Center Street,
Boston, MA 02210
[[vi]] Kelly-Kate
S. Pease, International Organizations: Perspectives
on Governance in the Twenty-First Century, Upper Saddle River, New Jersey
07458.
[[vii]] The title
of a story by Lopez-Pacheco appearing on the National Post in Sept 2002.
[[viii]] Thomas
L. Friedman, The World is Flat: A Brief
History of the Twenty-First Century, Picador, 175 Fifth Avenue, New York,
N.Y. 10010.
[[x]] Thomas L.
Friedman, The Lexus and the Olive Tree: Understanding
Globalization, Farrar, Straus and Giroux, 19 Union Square West, New York
10003
