Winner and Losers in Globalization

• “Globalization, as defined by rich people like us, is a very nice thing…You are talking about the Internet, you are talking about cell phones, you are talking about computers. This doesn’t affect two-thirds of the people of the world.”

• President Jimmy Carter

View Point

• “Uneven globalization is bringing not only integration, but also fragmentation-dividing communities, nations, and regions into those that are integrated and those that are excluded.”

• United Nations Development Program (UNDP) 1999.

• “Companies have nothing against Africa, it’s that the stability, infrastructure and skills are not there.” -Salim Jahar. Economist (UNDP)

• Many people in the developing world, like these children playing near a settlement in Kenya, lack the communications technology required to become part of the new global era.

For the global good?

• Globalization can be very beneficial, but only to a select few.

• While millions of people remain isolated from the global community.

• For example, it is estimated that 50% of the world’s population has not made a phone call (Bowden, 28)

A divided world

• Critics of globalization argue that, far from uniting the world, globalization is actually making it more divided.

• In 1960, for example, the richest 20% of the world’s population controlled 70% of global wealth.

• By 2000, their share had increased to 80%.

• While the rich get richer the poor seem to be getting poorer.

• The poorest members of society are often denied a role in the global economy because they cannot read or write, or because they speak the wrong language.

• Wealthier people, in contrast, can generally, afford to par for their children to be educated at a higher level.

• Furthermore, many local jobs formerly done by the poorer sectors of society are now being done by machines to make production more efficient.

From Computers to Cat Washes

Viewpoint 2

• “In this new competitive world…it is the unskilled that fare worst. They have become…effectively commodities, easily replaceable by an ever-growing overseas supply.” (Noreena Hertz. The Silent Takeover. 2001).

• Think about what this quote is saying. Would you agree or disagree? Explain.

Personal Gain• So who benefits?• The most dramatic winners of globalization are a small

handful of chief executive officers (CEOs) of the world’s largest TNCs (Transnational Corporations).

• For example, Bill Gates, the CEO of Microsoft, had amassed a personal fortune worth $52.8 billion by 2001. This is equivalent to the combined national incomes of Kenya, Jamaica, Sudan, Nepal, Ecuador, and Georgia.

• The richest 200 share an income greater than that of the poorest 41% of the world’s population, about 2.4 billion people!!

Richest People

National Losses• Globally there are 3 billion people that live on 2

dollars or less per day.• That’s almost half of the world’s population.• These people have not benefited from

globalization and many of them are not connected to the Internet, and the majority of them lack the education and skills necessary to play a role in the global environment.

• Many of these people immigrate to other countries that are already wealthy; this is called a “brain drain.” (Bowden 31).

• In India, for example, 100,000 professionals a year are expected to be granted visas by the US to move there.

• The loss of their skills is estimated to cost India economy about $2 billion.

• Fact: In one year Nike paid the Michael Jordan $25 million to advertise its shoes-the same amount as 35,000 Vietnamese workers were paid to make them (Bowden 31).

New Connections

• A benefit of the global labor market is that, with citizens working overseas, valuable trade and business links can be established.

• For example, the Indian, Pakistani, and Chinese communities have developed strong trade links with people in their countries of origin.

Widening the Gap• Fact: Africa spends

$14.5 billion each year repaying debts to the international community (WHO, WB, IMF), but receives only $12.7 billion in aid from other countries.

• Does this make sense?

• By locating low-skilled, poorly paid employment in less-developed regions, and keeping higher-skilled and better-paid jobs in the developed nations (where most TNCs are not based), TNCs may be deepening the divisions of society.

• This is done all at the expense of the poor.• Many countries spend half of what they

get in exports to pay off their debts.

So is it all about the mighty dollar?

To some TNCs and MNCs YES!!But this isn’t true for all

Not all about $$$$$• Although globalization tends to be dominated by:

business, finance, and economics, is about much more.

• It also concerns our daily lives and how we are affected by its process.

• Exit Slip 1: Write a paragraph answering the question below. Make sure you PEE (Point-Example (2-3)-Explain (your opinion)

• Overall, do you think globalization is creating more winners or more losers? What could be done to make more people winners?

Works Cited

• Bowden, Rob. Globalization: The Impact On Our Lives. Chicago: 2004.