Globalisation

Plan:

1 Introduction (Definition of Ð''globalisation' and is it a new phenomena?

2 Main part

Is Globalisation a problem and who is involved in it?

Alternative perspectives on the Ð''problem of Globalisation'

Globalisation, organisation and work.

3 Summery

What is globalisation?

Many see it as a primarily economic phenomenon, involving the increasing interaction, or integration, of national economic systems through the growth in international trade, investment and capital flows.

However, one can also point to a rapid increase in cross-border social, cultural and technological exchange as part of the phenomenon of globalisation.

The sociologist, Anthony Giddens, defines globalisation as a decoupling of space and time, emphasising that with instantaneous communications, knowledge and culture can be shared around the world simultaneously.

A Dutch academic who maintains a good website on globalisation, Ruud Lubbers, defines it as a process in which geographic distance becomes a factor of diminishing importance in the establishment and maintenance of cross border economic, political and socio-cultural relations.

Left critics of globalisation define the word quite differently, presenting it as worldwide drive toward a globalised economic system dominated by supranational corporate trade and banking institutions that are not accountable to democratic processes or national governments.

Globalisation is an undeniably capitalist process. It has taken off as a concept in the wake of the collapse of the Soviet Union and of socialism as a viable alternate form of economic organisation.

Try this: Globalisation is the rapid increase in cross-border economic, social, technological exchange under conditions of capitalism.

When did globalisation begin?

There is no agreed starting point, but understanding of globalisation is helped by considering the following.

The first great expansion of European capitalism took place in the 16th century, following the first circumnavigation of the earth in 1519 to 1521.

There was a big expansion in world trade and investment in the late nineteenth century. This was brought to a halt by the First World War and the bout of anti-free trade protectionism that led to the Great Depression in 1930. Some see this period as an interruption to the process of globalisation commenced in the late 19th century.

A sense that the world was united was generated by the establishment of the International Date Line and world time zones, together with the near global adoption of the Gregorian calendar between 1875 and 1925. During that period, international standards were also agreed for telegraphy and signalling.

The end of the Second World War brought another great expansion of capitalism with the development of multinational companies interested in producing and selling in the domestic markets of nations around the world. The emancipation of colonies created a new world order. Air travel and the development of international communications enhanced the progress of international business.

The fall of the Berlin Wall and the collapse of the Soviet Union ended the cold war between the forces of capitalism and socialism with capitalism triumphant. The development of the internet made possible the organisation of business on a global scale with greater facility than ever before.

Who are the players?

Pro-globalisation

International organisations:

The World Trade Organisation (WTO) www.wto.org was established in 1995 to administer the rules of international trade agreed to by its 123 member countries. These rules have been ratified by the parliaments of all members.

The WTO's rules make it hard for a country to favour their own industry over imports from other countries. Also, the WTO rules do not allow a country to favour the imports of one country over those from another.

The WTO argues that the growth of trade between countries increases the wealth of everyone. Trade allows the production of goods and services by those who are most efficient, thus maximising their availability at the best price.

The growth of trade is helped by the lowering of barriers, such as tariffs and import quotas, which is the object of WTO agreements.

The International Monetary Fund (IMF) www.imf.org was established in the wake of the World War II in 1946 to:

Ð'* promote international cooperation on finance,

Ð'* encourage stability in exchange rates and orderly systems for exchanging money between countries

Ð'* providing temporary assistance for countries suffering balance of payments problems

The IMF frequently seeks institutional reform in the countries to which it provides temporary financial assistance. Like the WTO, the IMF believes that world prosperity is enhanced by greater exchange between nations and that this is made possible by everyone agreeing to abide by rules. The IMF has 182 member countries.

The World Bank www.worldbank.org provides loans to poor countries for development projects. The bank provides loans for investment projects, such as water and sanitation, natural resource management education and health. It also lends for what it calls adjustment projects, which are to support governments undertaking policy reforms, such as improved public sector management.

Established at the conclusion of the Second World War, the United Nations www.un.org has become a promoter of globalisation, arguing that individual states have a dual role with responsibilities to both their own citizens and to the world society as a whole. The United Nations says the broader global responsibility requires international institutions. It supports the case for reform of international institutions, including its own Security Council, to make them more representative.

The Organisation for Economic Cooperation and Development (OECD) develops economic and social policy for its 29 members, which include the countries of North America, Western Europe (including