Globalization, Globalization,

Global Global Inequality, Inequality, and Cultureand Culture

Review

• A tour of globalization • And its impact on the United States….

Incomes in the U.S. become more unequal……

20x higher

23x higher

7x higher

While globalization intensifies…..

Ratio of imports+exports to GDP

And global inequality grows….Poorest 20% Nest poorest 20% Middle 20% Next Richest 20% Richest 20%

1990 7.25 11.42 15.8 22.01 43.522000 6.57 10.62 15.03 21.47 46.31

• Source IMF: WEO 2007

If wages are rising in the South….

While they decline in the North…..

Why is inequality between North and South increasing?

Countries1990 2000

46.3%

6.6%7.2%

43.%

…and in the South?

– Will liberalization continue?– Will the gap between rich and poor widen?

Liberal View of Globalization and inequality

• Tariff reductions trade rising wages for low-skilled workers in the South + wage reduction for skilled workers in the North reduction in global inequality

• Emigration and immigration can also narrow the gap… (Jeffrey Willionson reading) between rich and poor countries.

• Not verified in empirical studies

The IMF’s perspective

• Tecnology• Education• Flexible labor markets

• The IMF prescription: A golden straightjacket?

A Dependency Theory perspective

What can be done?

What Developed country governments can do….

• Cancel Debt• Maintain markets for goods from the South

while allowing them to erect tariff walls to their own goods….

• A regulatory framework for MNCs• Corporate social responsibility

NGO’s Using the tools of globalization to reduce inequality

• Critique of IMF and World Bank• The creation of a global civil society is

necessary to reduce inequality

Globalization and Cultural Conflict

OutlineI. What does economic globalization do to global politics?.

A. The optimistic liberal argument B. The pessimistic liberal argument

II. What does globalization mean for domestic politics?

A. The Breakdown of Interest-based politics and the rise of Identity PoliticsB . Identity politics vs. Interest politicsC. Identity Politics and the Future of Democracy.

D. Why do you need a politics of interest for democracy?IV. Three reasons

Two important points in the liberal argument…..

• There is no viable alternative for a development model.

• • Technical progress accelerates globalisation

and democratisation as it enhances communication and empowers the individual.