HND Social Science

 

 

 

 

Notes on Globalisation

GLOBALISATION

"I sit here in a shirt made in Spain, jeans from the US and shoes made in Italy. My watch is Swiss, my car French, my TV Japanese and my wife German. The skipper of the England cricket team, Nasser Hussain, was born in Madras, and the English soccer team is soon to be managed by a Swede." – extract from a letter by FM Gillespie to The Guardian, 30th November 2000

"One of the most significant effects of globalisation is the way it undermines our sense of moral responsibility. In the past it was relatively easy to identify who was doing what to whom. It is no longer. The global market moves in response to billions of transactions. Electronic media offer an almost open-ended multiplicity of channels of communication. Nation states have ever less power to shape their development. Corporations have become increasingly shadowy entities. Who, then, is the author of events?"Jonathan Sacks, 2002, The Dignity of Difference, Continuum Books

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Item A

A pair of Levi jeans

Denim woven in Italy – from cotton grown in Benin – and dyed in Spain using synthetic German indigo; cotton for the pockets from Pakistan; zips assembled from teeth manufactured in Japan and polyester tape made in France; brass for rivets amalgamated from Namibian copper and Australian zinc; jeans sewn in Tunisia – with thread from Ireland– and stonewashed with Turkish pumice. A pair of Levi jeans.

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In The end of Organised Capitalism (1987), Lash and Urry identified globalisation as one key feature* of what they call 'disorganized capitalism'.

In a later book [Economics of Signs and Space, 1994] they wrote of a new "epoch in which various processes and flows have transformed . . . a dozen or so capitalist societies."

 

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*Others are 'flexible specialisation' (à postfordism); ‘the rise of new social movements' (à identity); and 'the atomization of the working class' (à social class)

Among these 'processes and flows' are:

In On the Edge: Living with Global Capitalism (2000) – written in the form of a dialogue between Anthony Giddens and Will Hutton – Giddens identifies four key features of globalisation:

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** Marxists claim that this aspect of globalisation was fully anticipated by Marx when he wrote of "the internationalisation of capital", and it has become more or less axiomatic that world trade is now dominated by global enterprises. However, Professor Alan Rugman of Indiana University and Templeton College, University of Oxford, questions the extent to which so-called multinational corporations (MGCs) are genuinely global. The annual ‘Fortune 500’ features the 500 biggest MGCs measured by sales, and there is no doubt that they dominate international business – they account for over 90% of the world's stock of foreign direct investment and nearly 50% of world trade. 430 of them are based in the core 'triad' regions of the United States, the EU and Japan. But, according to Professor Rugman, very few of them actually have any significant presence in all three parts of the triad. In fact, only a handful, such as Nestlé and Unilever, can really be said to qualify as global multinational enterprises. A somewhat larger subset of 'bi-regional' MNCs have strong presences in two parts of the triad – their home regions and one other. But the majority operate almost exclusively in just one part of the triad. The lack of evidence for an inevitable process of globalisation in international business is particularly stark in the retail sector, within which 10% of the world's largest 500 MNCs (including Wal Mart, the world's biggest corporation by sales in 2002) operate. Of the 49 retailers in the ‘Fortune 500’ list, 18 are purely domestic, 24 are highly concentrated in their home regions, five are bi-regional, and only one – the luxury goods retailer Christian Dior/LVMH – is truly global. [Source: Alan M. Rugman, 2002, UK Competitiveness and the Performance of Multinational Companies, Economic and Social Research Council]

 

 

"Globalization refers to the multiplicity of linkages and interconnections that transcend the nation states ... [so that] events, decisions, and activities in one part of the world can come to have significant consequences for individuals and communities in quite different parts of the globe ... goods, capital, people, knowledge, images, communications, crime, culture, pollutants, drugs, fashions, and beliefs all readily flow across territorial boundaries."

Anthony McGrew, A Global Society?, 1992, in Hall S. et al (eds) ‘Modernity and Its Futures’

 

 

 

 

 

 

 

 

 

 

 

"The growth of debt and unemployment, and the decline of traditional economic sectors, has fed an illegal trade in people directed at the rich countries. The diseases and pests of the global south are now in the global north as well: TB is back in the US and the UK, the encephalitis-producing Nile mosquito has arrived for the first time in the north . . . The rising debt, poverty, and disease in the south are beginning to reach deep into rich countries in the north."Saskia Sassen, sociology professor at the University of Chicago and author of The Global City, The Guardian, 12th September 2001

the collapse of time and space?

David Harvey [The Condition of Postmodernity, 1989] says that globalisation has ‘collapsed time and space’ but John Macklethwaite and Adrian Woolridge

[Future Perfect, 2000] say that the world economy is less globalised today than it was a hundred years ago when there were no barriers to international flows of either capital or labour (inter-national migration peeked between 1815 and 1915 when no passports were needed to cross national boundaries), when gold sovereigns were international currency and when the telegraph, the railway and the telephone had already collapsed distance.

 

Has our sense of time been confused by 24 hour trading, the heritage experience and pastiche? Has fashion, by definition ephemeral, become ever-more fleeting – here today, gone tomorrow? Has space been compressed by ever-faster forms of travel and electronic communication? Is location an ever-weaker indicator of consumption patterns?

post-colonialism: US hegemony or third phase capitalism

As yet, there is little agreement over other impacts of globalisation. Whilst some commentators think globalisation is producing a post-colonial awareness of other cultures, others believe that its principle effect is the promotion of American cultural hegemony*. Zygmunt Bauman [Intimation of Postmodernity, 1992] and Anthony Giddens [The Consequences of Modernity, 1990] both see globalisation as the latest phase in capitalist expansion. (A left-wing take on this can be found below.)

 

 

 

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* American foreign policy is based on the doctrine of ‘full-spectrum dominance’ (worldwide control of military, economic and social developments) and the prominence given to US cultural hegemony in sociological texts downplays the extent to which America uses force to protect its global interests. Since 1945, military action has been taken in China (1945-46 and 1950-53), Korea (1950-53), Guatemala (1954 and 1967-69), Indonesia (1958), Cuba (1959-60), The Belgian Congo (1964), Peru (1965), Laos (1964-73), Vietnam (1961-73), Cambodia (1969-70), Grenada (1983), Libya (1986), El Salvador (1980s), Nicaragua (1980s), Panama (1989), Iraq (1991-), Bosnia (1995), Sudan (1998), Yugoslavia (1999) and Afghanistan (2001-). The notion that America has achieved global dominance is challenged by, among others, Samual P Huntington in The Clash of Civilisations, 1993. (à the postmodern culture Notes)

Item B

The impact of globalisation on popular culture

Some commentators equate globalisation with American cultural imperialism: youths in baseball caps and sweatshirts advertising American products or sports teams; vast one-storey superstores; 168 hours a week shopping; bowling alleys; wall-to-wall US sitcoms and cartoon shows; Hollywood movies shown in US-style multiplexes (in 1996, eight of the 10 most watched films in the UK came from America); pulp fiction (41 of the UK's 100 best-sellers in 1996 were first published in the States); the American roots of most pop styles; rugby teams named to sound like gridiron teams (Bradford Bulls, London Broncos . . .), cola on every list of beverages and chewing gum in every school-kid's mouth. To Melvyn Bragg, "American culture is popular culture."

However, others argue that globalisation is a capitalist phenomenon unattached to any particular nation state, even the most powerful one in the world. Tomlinson says that the global market has no centre – he calls it a ‘non-space’ – and argues that transnational executives promote US mass culture throughout the world not because they like it, but because it earns them a lot of money: if a fizzy drink with more profit-making potential than cola were discovered in Burundi or Bulgaria it would soon find itself in the global marketplace. And globalisation works both ways, bringing the products of the less developed world to the West as well as exporting Western goods to less developed countries.

[Sources: Tomlinson J, 1999, Cultural globalisation: placing and displacing the West, in Mackay H and O'Sullivan T (eds), ‘The Media Reader: Continuity and Transformations’]

Summary comment

Even if Tomlinson is right, and the global market has no centre, it will inexorably universalise the market values of consumption and materialism.

WE ARE A PEOPLE,

NOT A MARKET,

AND OUR WORLD

IS NOT FOR SALE

Slogan of the anti-globalisation movement

A MORI poll in September, 2001, found that only one in eight British adults believes that globalisation enhances everyone’s quality of life. 92% say that transnational corporations should meet the highest human health, animal welfare and environmental standards wherever in the world they are operating. And over 80% think that the government should protect the environment and employment even if it means taking action which goes against the interests of transnationals.

". . . policies to promote . . . corporate globalisation . . . [have] widened the gap between rich and poor, accelerated environmental damage and created a democratic deficit by transferring awesome political and economic power to multinational corporations."Tony Juniper, vice-chair of Friends of the Earth International, The Guardian, 7th November 2001

Item C

Voldemort

AOL Time Warner, the transnational corporation behind the first Harry Potter film, has an annual turnover of $7.7bn – roughly the same size as the Bolivian economy. AOL Time Warner uses some of its vast profits to fund political groups which oppose the Kyoto climate change treaty and lobby the governments of less developed nations to privatise their public services.

 

globalisation and loss of 'British identity'

Some commentators assert that globalisation is a threat not only to traditional cultures but also to national identity in advanced societies:

Item D

Halsey on turn of the millennium Britishness

According to Professor A.H. Halsey of Nuffield College, Oxford, international homogeneity and the dominance of American culture mean that Britishness has become hard to pinpoint. Halsey was writing in the 30th anniversary edition of Social Trends. He noted "the degree of assimilation of life in Britain to that of the other advanced industrial countries in Europe and North America." Halsey cited the decline of the high street and a fixation with the individual and the free market in support of his thesis. Social Trends 30 contains much which supports Halsey's observation of growing internationalism. For example, Britons now take more foreign than domestic holidays, almost 400,000 Britains live in other EU states and 800,000 EU nationals - half of them Irish - reside in the UK.

[Source: Social Trends, 2000, ONS]

S Lash and J Urry [Economics of Signs and Space, 1994] have predicted that one consequence of globalisation will be the "declining effectiveness and legitimacy of nation-states." And Philip Bobbitt [The Shield of Achilles: The Long War and the Market State, 2002], former White House Director of Intelligence and currently a lecturer in constitutional law at the University of Texas, says that the nation state is on its last legs. Global forces – such as human rights agreements, weapons of mass destruction, international epidemics, and global marketing and communications – are washing over national borders. The nation state, in Bobbitt’s view, will be replaced by ‘umbrella states’ with common economic policies. However, there will still be nation-based cultural variation within each umbrella state.

Stuart Hall says that the destruction of nationhood is only one of three possible outcomes of globalisation. Another (contradictory) scenario is that local resistance to globalisation might strengthen national (and local) cultural identities*. And a third possibility is that globalisation will result in a series

of 'hybrid' cultures, each an amalgam of a national culture and various 'imported' cultural traits.

Paul Hirst and Graham Thompson [Globalisation and the future of the nation state, 1995, in Economy and Society, vol.24, no.3] accept that "states are less autonomous...have less exclusive control…within their territories, and…are less able to maintain national distinctiveness and cultural hegemony." But they point out that "the number of genuine transnational companies is small" and that "most firms are [still] embedded in a distinct national culture."

In Trading Identities: Why Countries and Companies Are Becoming More Alike (1999), a pamphlet written for the Foreign Policy Centre, Wally Olins

argues that companies and countries are changing fast to become more like each other. Countries are developing 'national brands' to compete for investment, trade and tourism, and their governments are rapidly learning the business language of performance indicators and hard statistics. At the same time, mega-merged global companies are using nation-building techniques to

achieve internal cohesion across cultures, while 'talking soft' about their social impact and trying to achieve popular legitimacy by becoming ever

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*There are now roughly four times as many independent states as there were in 1945 (c.50 then and c.200 now), which indicates a sharpening of ethnic identities. This development is usually attributed to post-colonialism. But it might also have something to do with local opposition to the forces of globalisation.

more involved in providing public services like education and health. So companies and countries are borrowing each others’ techniques. Olins’ pamphlet is available from the Foreign Policy Centre at http://fpc.org.uk/.

(More on globalisation and its impact on identity in the identity Notes.)

FactNotes

q About one eighth of the world’s oil consumption is consumed moving

goods between producers and consumers.

q Large multinational corporations (MNCs) account for about a fifth of

world output and 70% of world trade, mostly in the form of intra-

company transfers (i.e. one branch of a company dealing with others).

q The worldwide trade in agricultural produce topped £396bn in 1995, but

820m people remained malnourished.

q Two corporations, Archer Daniel Midland and Cargill, control 80% of the

global grain trade. There is similar corporate domination of other

commodities such as cocoa, tea and bananas.

q Large-scale, export-led soya production in south-east Brazil ruined over

100,000 small to medium-sized farms and many displaced farmers began

clearing Amazonian rainforest to provide an alternative source of income.

 

globalisation and inequality

"Economic violence, which the leaders of the rich world must defend, is at the heart of globalisation, or world-wide capitalism."

Jeremy Seabrook, author of Children of Other Worlds: Exploitation in the Global Market (Pluto Press)

Globalisation has increased the opportunities for already very wealthy people to make even more money ever more quickly. They seek out the ‘best’ locations (cheap land, cheaper labour) for further capital accumulation and use a global system of intra-company transfers in order to avoid contributions to national exchequers – Rupert Murdoch’s News Corporation, for example, pays virtually none of the tax due on its assets and transactions.

 

 

 

 

 

 

Item E

How companies avoid paying taxes

Little of the vast income generated by transnationals finds its way into national exchequers to be used to improve the welfare of all citizens. Efforts by governments to get their hands on excess profits are thwarted as corporations become ever more skilled at tax avoidance. The IMF calculates that there are now about 70 off-shore tax havens, where money can be diverted beyond the reach of national exchequers, and the OECD estimates that 60% of world trade consists of transfers within multinationals as profits are passed to anonymous subsidiaries in tax-free jurisdictions such as the Cayman Islands.

While globalisation has brought enormous rewards to a few, it has left out or marginalises two-thirds of the world's population. According to the United Nations' Human Development Report, in 1960 the richest 20% of the world's population were thirty times better off than the poorest 20%. Since

 

According to the United Nations’ 2002 Human Development Report, 2.4bn people in the developing world lack basic sanitation and 1.1bn have no access to clean drinking water. The World Summit on Sustainable Development in Johannesburg in 2002 set a target of halving these numbers by 2015.

then the differential has more than doubled. In seventy countries, average income has fallen since 1980 and the poorest 20% of the world's people now have to share just 1% of the world's income. Between 1994 and 1999, the world's 200 richest people more than doubled their wealth to over a trillion dollars ($1,000,000,000,000), giving an average holding of $50bn. The assets of the three richest billionaires exceed the combined GNP of all the least developed nations i.e. 600 million people.

"It is clear that we in the developed world have enjoyed huge
benefits from the process of globalisation. Now we must use it to
create new opportunities for the world's poorest nations - to connect
them with the global economy and help lift them out of poverty."
Deputy Prime Minister, John Prescott, 25 February 2002

 

 

 

 

Item F

Unequal world

A study by World Bank economist, Branko Milanovic, published in the Economic Journal on January 18th 2002, covered 85% of the world’s population from 91 countries and found the richest 50m people (1% of the total) were earning as much as the poorest 2.7bn (57%). The poorest 10% of Americans were among the richest third of all those surveyed, 80% of whom were living below what people in North America and Europe consider to be the poverty line. Although Britain is one of the most ‘income unequal’ countries in the developed world, it is nowhere near as unequal as the world as a whole. Using the ‘Gini coefficient’, which scores zero for perfect income equality and 100 if one person has all the income, Milanovic found a global coefficient of 66, roughly double that for Britain.

"We can wonder how long such huge inequalities may persist in the face of ever closer contacts, not least through television and movies, where opulent lifestyles of the rich influence expectations and often breed resentment among the poor. Should it be the concern of the rich? Perhaps, if we believe that wide income gaps lead to immigration and resentment breeds terrorism. For ultimately, the rich may have to live in gated communities while the poor roam the world outside those few enclaves."Branco Milanovic, World Bank Economist, January 2002

World Bank data

Basic indicators

Least developed countries

All developing countries

GDP per head (1998)

[Developed countries = $27,402]

$287 (1995 $)

$1,260 (1995 $)

GDP growth (1990-98)

0.9%

3.1%

Infant mortality rate

107 per 1000 live births

64 per 1000 live births

Life expectancy

52 years

65 years

Adult literacy (1995)

48%

70%

Adult literacy (men)

59%

79%

Adult literacy (women)

38%

61%

 

World Bank data

People living on less than $1 a day (millions)

Regions

1987

1990

1998

East Asia and the Pacific

417.5 (26.6%

452.4 (27.6%

267.1 (14.7%)

(excluding China)

114.1 (23.9%)

92.0 (18.5%)

53.7 (9.4%)

Eastern Europe and Central Asia

1.1 (0.2%

7.1 (1.6%)

17.6 (3.7%)

Latin America and the Caribbean

63.7 (15.3%)

73.8 (16.8%)

60.7 (12.1%)

Middle East and North Africa

9.3 (4.3%)

5.7 (2.4%)

6.0 (2.1%)

South Asia

474.4 (44.9%)

495.1 (44%)

521.8 (40%)

Sub-Saharan Africa

217.2 (46.6%)

242.3 (47.7%)

301.6 (48.1%)

Totals

1,183 (28%)

1,276 (29%)

1,175 (23%)

(excluding China)

880 (29%)

916 (28%)

961 (26%)

 

World Bank data |Infant mortality trends (per 1,000 live births)

Region

1990

1992

1997

1998

Reduction 1990-1998

East Asia & Pacific

40

42

36

35

11%

Europe & Central Asia

28

28

23

22

22%

Latin America & Caribbean

41

38

32

31

25%

Middle East & North Africa

60

59

47

45

24%

South Asia

87

85

77

75

13%

Sub-Saharan Africa

101

99

92

92

9%

All developing countries

65

65

60

59

10%

All OECD countries

8

7

6

6

28%

 

 

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Item G

World poverty far worse than indicated by standard measures

According to Professor Partha Dasgupta, Frank Ramsey Professor of Economics at Cambridge University and a former President of the Royal Economic Society, the problem of world poverty is far worse than is indicated by standard measures such as GNP per capita and the United Nations' Human Development Index (HDI). Dasgupta argues that a better indicator of well-being is per capita productive wealth (i.e. physical, human and natural capital) and that, properly measured to allow for environmental degradation, this indicator reveals that something like a third of the world's population has become poorer over the past three decades.

Dasgupta's rough and ready calculations of per capita productive wealth show that in the Indian sub-continent, sub-Saharan Africa and China – countries and regions that together encompass half the world's population – it has been declining. For example, Pakistan's GNP per capita grew at a healthy 2.7% per year in the period 1965-96, implying a more than doubling of living standards. But the per capita wealth measure shows close to a 50% decline. And for sub-Saharan Africa, the fall in per capita wealth was even greater.

At the same time as a vast swathe of the less-developed world is growing less wealthy in per capita terms, countries like the UK and the US are growing wealthier. The explanation for the imbalance lies in the nature of poor countries' economies. Their productive wealth comprises mainly natural capital (commercial forests, oil and minerals, water, fisheries, soil, biodiversity, the atmosphere as a sink for carbon dioxide, etc.) which, owing to imperfect systems of property rights, is under-priced or even free. Much of this capital has been bought at knock-down prices by transnational corporations, thereby transferring productive wealth from people in poor nations to people in rich nations. In addition, the under-pricing of poor nations’ capital assets leads to an under-pricing of their primary output (coffee, minerals, timber. . .) and, as the bulk of their exports to rich nations consist of these primary goods, this effectively means that poor people are subsidising the consumption of rich people. By a cruel paradox, global economic development has led to sustainability in the developed world being bought at the expense of unsustainability elsewhere.

[Source: Partha Dasgupta, Is Contemporary Economic Development Sustainable? – 12th annual ESRC lecture delivered on Wednesday 17 October, 2001]

 

anti-globalisation

Most left-wing social commentators, such as Naomi Klein, John Pilger and Jeremy Seabrook, are hostile to globalisation. They see an emerging global economy ruled by multinational companies and undemocratic extra-governmental organisations (such as the World Trade Organisation, the International Monetary Fund and the World Bank) who conspire to undermine third-world cultures and destroy economic self-sufficiency: whereas subsistence holdings once provided people in less developed countries with both a living and, in Seabrook’s words, "a kind of freedom", they have been forced off their land and are now paid below-subsistence wages to produce cash crops for export. [See Seabrook’s article, Into the unpromised land, The Guardian, 28 May 2002]

 

The Chief Executive of the Cargill Corporation is able to boast: "When we get up from the breakfast table each morning, much of what we have eaten – cereals, bread, coffee, sugar and so on – has passed through the hands of my company." He didn’t add: ‘to the financial benefit of me and my company’s shareholders, rather than the people who actually grew your breakfast foods’.

A key concern of anti-GM campaigners is that genetically modified seeds facilitate the corporate takeover of the food chain. Small farmers are seduced (or coerced) into GM seed deals, only to find that they can’t pay for the higher-priced seeds and the specified pesticides. They go bust and agri-businesses move in and ‘rationalise’ the seed market. This compromises bio-diversity and threatens food security itself.

(One of the chief consequences of destroying subsistence farming in third world countries has been to increase international migration.)

Item I

Globalisation – view from the left (1)

Under the dual guises of ‘free trade’ and ‘modernisation’, less developed countries (LDCs) are persuaded: (a) to drop trade barriers which protected their endogenous economic activity; (b) to opt instead for ‘open economies’ based on producing cheap goods and cash crops for export to the west; (c) to privatise communal services such as health, education and the utilities so that they can be commercially exploited. Western aid is tied to acceptance of this so-called ‘economic liberalisation’ and political opposition is ruthlessly suppressed, either by local placemen (armed by state-subsidised western dealers) or, if necessary, by direct military intervention.

The result of this global economic project is that formerly self-sufficient people in LDCs are transformed into what John Pilger calls ‘globalisation’s unpeople’ – an international underclass forced to live in insanitary, disease-ridden labour camps and to work long hours in sweatshops for less than living wages producing the branded goods which sell in the west for many times their labour value. In the process, their countries accumulate huge debts to western financial institutions, the interest on which is often enough to wipe out export earnings. The winners are the international conglomerates which accumulate assets exceeding the GDPs of some of their client states.

Sources

Klein N, 2000, No Logo

Pilger J, 1999, Hidden Agendas

" . . . the debt trap will eventually ensnare the rich countries through the increase in illegal trafficking in people, in drugs, in arms, through the re-emergence of diseases we had thought were under control and through the further devastation of our fragile eco-system." – Saskia Sassen, sociology professor at the University of Chicago and author of The Global City, writing in The Guardian, 12th September 2001

Segment of world's Current share of

population world’s GDP

Richest 20% 86%

Middle 60% 13%

Poorest 20% 1%

After worldwide protests, the multilateral agreement on investment ((MAI) was abolished in 1998. MAI granted a broad package of rights to foreign investors, many of which undermined the welfare of people in less developed countries. But MAIs capital friendly / people unfriendly provisions soon reappeared in new bilateral treaties, 2,000 of which have been signed since the 1950s. (Perhaps the best known is the 1994 North American Free Trade Agreement, Nafta.) Under the treaties, multinationals can by-pass local custom and legislation designed to protect or further the interests of otherwise powerless people. Corporations such as Enron, Vivendi and Mobil have used these treaties to sue third-world governments which have tried to impose taxes on them, regulate their activities or protect public services from their predacious activities.

[Source: International Institute for Sustainable Development]

News: Mary’s story, February 2002

Mary Agyekum’s family used to own a farm in the village of Atuabo in the west of Ghana. But a gold-mining company forced them off their land. Now, Mary breaks stones for a living. Her children help out and, between them, they earn 20,000 cedis, about £2, a week.

Gold is Ghana’s biggest export and, urged on by the IMF and the World Bank, the Ghanaian government gives tax-breaks to mining companies and imposes virtually no environmental or other regulations. Two-thirds of the land in the west of Ghana is under concession to the companies and, everywhere you go, you see huge holes in the ground where there were once thriving, self-sufficient, villages. Ghana used to produce all its own rice – the people’s staple food. Now, the rice fields are fallow and Mary and her children have to pay far more than before for rice imported from America, where farmers receive tens of millions of dollars in support. The World Bank doesn’t allow Ghana to subsidise rice growers: its poverty reduction and debt-relief strategy allows subsidies only for export goods, like gold.

Each day for Mary and her children begins with a visit to the public toilet. They have to pay to get in, just as they have to pay for drinking water from the nearby borehole. To Mary, these are costs she cannot afford. To the World Bank, they are in line with ‘full-cost recovery’, another part of the Bank’s strategy. And if Mary or her children become seriously ill, they will die because they won’t be able to pay for treatment. Meanwhile, people in the western world, rich beyond Mary’s imagining, take free sanitation and health care for granted. And multinational mining companies make millions of dollars for their shareholders.

EU demands privatisation of public utilities

As its price for dismantling the Common Agricultural Policy (CAP), which protects European farmers from outside competition, the EU is demanding full-scale privatisation of public utilities across the globe. A 1,000 page secret document, prepared by Commission officials and leaked to the press in April 2002, says that the EU will open up its agricultural markets only to countries which allow European corporations to tender for the supply of energy, water, sewage disposal facilities, and telecommunication and postal services.

Canadian journalist, Naomi Klein, says that branding plays a key role in multinational corporations’ global marketing of homogenised products, which she says is having a corrosive impact on local economies, cultural diversity and the environment. In No Logo (2000), Klein identifies some of the worst examples of multinational corporations’ exploitation of the world’s poor. Among other injustices, she cites:

§ Nike paying Michael Jordan in 1992 more for endorsing its trainers ($20m) than it paid its entire 30,000-strong Indonesian workforce for making them.

§ Michael Eisner, CEO of Disney, paying himself $9,783 an hour, while Haitian workers, who stitch Disney merchandise, get just 28 cents an hour.

§ Lavatories being padlocked in the sweatshops of the Philippines, except for two 15 minute breaks a day, so that seamstresses sewing clothes for western high-street chains have to urinate into plastic bags under the machines.

Item J

End of an era

Since 1935, Swingline office staples had been made in a unionised factory in the New York borough of Queens. Employees spent their whole working lives there. Then, in the spring of 1997, the owners unveiled ‘tentative plans’ to ‘phase down’ operations in Queens in favour of ‘a more cost effective solution’. Within two years the factory was empty. Under Nafta (the North American Free Trade Agreement), Swingline had relocated production to the border town of Nogales in northern Mexico. All the raw materials come from the US and all the output goes back there. But the non-unionised labour is so cheap in Nogales that the company has been able to abandon expensive plant: now long lines of Mexicans put together Swingline staplers by hand.

[John R MacArthur, 2001, The Selling of ‘Free Trade’: Nafta, Washington, and the Subversion of American Democracy]

 

Item K

Globalisation – view from the left (2)

Michael Hordt and Antonio Negri argue that the post-modernised ‘global empire’ contains the seeds of its own destruction. A new proletariat – ‘the global multitude’ – has come into being. And, despite its exploitation, it has a great ‘potential for communality’, not least because globalisation is breaking down the first world / third world dichotomy: there is third world in the first world and first world in the third world – Brazil is an ideal example.

Global capital "creates more potential for wider co-operation and connections between people, which are the preconditions for liberation movements . . . in the same way that industrial capital made possible the organisation of the industrial working class." And, unlike the industrial proletariat, the ‘global multitude’ can’t be controlled because the ‘global empire’ has no ‘place of power’ – it is "a smooth space . . . both everywhere and nowhere . . . a non-place."

Robin Cohen and Paul Kennedy take a similar view. Whereas most commentaries on globalisation see it as something which diminishes human agency, Cohen and Kennedy say that participation in global social movements gives people the power to reshape the emerging world order and to create democratic and participatory possibilities.

Sources

Hordt M and Negri A, 2001, Empire

Cohen R and Kennedy P, 2000, Global Sociology

Summary comment

The beginning of the C21 has witnessed a rapid coming together of global networks, coalitions and voluntary organisations, individually and collectively focussed on the iniquities of the global empire: in the two years following the Seattle world trade talks, three million people have demonstrated against globalisation – the Genoa social forum alone attracted over 700 groups from 100 countries to protest against G8 – an impressive achievement in a very short time-span. "This movement is unstopable now in both rich and poor countries," says Jose Bove, French farmers’ leader and resistance fighter against the hegemony of global capital. "We have seen nothing yet."

But the concerns of the world trade and G8 protesters have yet to impact on conventional politics – in the 2000 US Presidential election, for example, the world’s best known critic of amoral business activity, Ralph Nader, won just three percent of the vote. A cynical view of the current wave of anti-globalisation direct action is that it is a form of street-theatre – play politics for media consumption (another manifestation of reality TV?), which diverts attention from real solutions to real problems.

Globalisation has made life difficult for sociologists. According to Turner, sociology developed "to explain and understand local or national destinies". But, says McGrew, "in a 'shrinking' world, where transnational relations, networks, activities and interconnections of all kinds transcend national boundaries, it is increasingly difficult to understand local or national identities without reference to global forces."

Sources

Turner B, The two faces of sociology: global or national, 1990, in Featherstone M (ed), ‘Global Culture’

McGrew A, 1992, A Global Society?, in Hall S. et al (eds) ‘Modernity and Its Futures’

Who to read?

Apart from Naomi Klein . . .

George Soros (George Soros on Globalisation, Public Affairs, 2002)

Sorros is a poacher turned gamekeeper – over many years he amassed a fortune as a world-wide financial speculator. (He was largely responsible for ‘Black Wednesday’ which led to Britain leaving the ERM in 1992.) Sorros argues that globalisation could be a force for good, but hasn’t been: unregulated international markets are "crisis prone"; the poor have been marginalised; the public realm has been neglected; and entire national economies are at the mercy of huge flows of capital that slosh incessantly round the globe.

Noreena Hertz (The Silent Takeover, Arrow, 2002)

Hertz is an academic who helped set up the Russian stock market. So his account of global corporations seizing power from democratic governments (in his view, voting is pointless because all major parties have been ‘bought’ by big business, and so called ‘consumer politics’ serves the interests of the wealthy) cannot be dismissed as leftist raving.

Joseph Stiglitz (Globalisation and Its Discontents, W.W. Norton and Company, 2002)

Stiglitz is a Nobel laureate and former chief economist at the World Bank. In Globalisation and Its Discontents he explains why the current international trade regime is unfair to developing countries. He lays much of the blame on the IMF (International Monetary Fund) which, he says, is shrouded in secrecy and fails properly to consult trade unions and other representatives of civil society, while bowing before corporate interests. He is equally critical of the World Bank: "Decisions were made on the basis of what seemed a curious blend of ideology and bad economics, dogma that sometimes seemed to be thinly veiling special interests . . . Open, frank discussion was discouraged – there was no room for it." The World Bank, the IMF, and the World Trade Organisation (WTO), says Stiglitz, have pushed fundamentalist free market solutions where a more balanced approach would have been better. Developing countries need capital, but forcing open their doors to speculative flows has hampered growth, induced instability and forestalled democracy. However, Stiglitz strongly believes that globalisation can be a positive force around the world, for both rich and poor ("Those who vilify globalization too often overlook its benefits."), but only if the IMF, World Bank, and WTO dramatically alter the way they operate, beginning with increased transparency.

Greg Palast (The Best Democracy Money Can Buy, Pluto Press, 2002)

Palast is an undercover journalist who has collected a mass of ‘confidential’ documents which reveal how greedy corporations have joined forces with bent politicians to thwart democracy, damage the environment and rip-off the people. Palast’s text contains some factual errors, seized on by his opponents, but the documentary evidence is wholly convincing.

John Pilger (The New Rulers of the World, Verso, 2002)

The New Rulers of the World is a series of essays based on Pilger’s television films. Pilger is an iconoclast, who challenges conventional thinking on just about every issue he explores and is reviled by most other journalists and virtually all politicians. But that doesn’t mean he is wrong, and his enemies rarely manage to expose any factual inaccuracies in his work. In this, his latest book, he writes about "the myth of globalisation", which he sees as a confidence trick to rob the world’s poor of what little they have, rather than as something which will ever benefit humanity.

Jonathan Sacks (The Dignity of Difference, Continuum Books, 2002)

Sacks is Britain’s Chief Rabbi and an economic conservative. So he is broadly sympathetic to free market capitalism, which he sees as "the best means we have yet discovered for alleviating poverty," even though it "generates unequal outcomes, and the faster it moves, the more glaring the inequalities to which it gives rise." "Within and between nations," he says, "these inequalities have now become unacceptably large. The concentration of the world’s wealth into relatively few hands while millions of children live in poverty, ignorance and disease is a scandal that is no longer sustainable

. . . a scar on the face of humanity." In Sacks’ view, this "does not mean abandoning the global market, but it does mean taking seriously a set of non-market values which must be factored in to our decisions about the future." There’s a lot of hedging here, and you feel that Sacks is trying to be all things to all readers. But he does have a nice turn of phrase: "On the one hand, globalisation is bringing us closer together than ever before. On the other, a new tribalism – a regression to older and more fractious loyalties – is driving us ever more angrily apart." This is the book’s main theme.

Barbara Gunnell and David Timms (eds) (After Seattle: Globalisation and its discontents, Catalyst book 1, April 2000)
A collection of essays by some of Britain's foremost commentators on globalisation: Bernard Crick, Meghnad Desai, John Edmonds, Larry Elliott, William Keegan, Doreen Massey, George Monbiot and Hilary Wainwright. After Seattle is published by the democratic socialist thinktank, Catalyst, and its contributors are members of Catalyst’s editorial board. All are critical of the way globalisation has been shaping up but, within that framework, offer diverse analyses, prognoses and prescriptions.

Robin Cohen and Paul Kennedy (Global Sociology, MacMillan Press, 2000) Cohen and Kennedy provide an up-to-date survey of globalisation aimed at UK sociology students who might find the comprehensive glossary at the end of their book particularly useful.

Paul Hirst and Grahame Thompson (Globalization in Question, Polity, 1999) Hirst and Thompson have written an accessible introduction to the topic.

David Held, Anthony McGrew, David Goldblatt and Jonathan Perraton (Globalisation, Foreign Policy Centre, 1999)

Held et al’s ‘key concepts’ pamphlet is the first in an FPC series. Will Hutton has described it as an "indispensible counterweight to optimists and pessimists alike." Globalisation is available from the Foreign Policy Centre at http://fpc.org.uk/

George Monbiot (Captive State, Pan, 2000)

Monbiot is a ruthlessly honest campaigning journalist. In Captive State he gives the low-down on multinational corporations’ strangle-hold on global politics.

David Held (Democracy and the Global Order, Polity, 1995)

and . . .

Anthony Giddens (Runaway World, ProNotes Books, 1999)

are generally positive about globalisation.

Thomas Frank (One Market Under God, 2002, Vintage)

isn’t.