Prof. Dominic Power Uppsala University Winners and losers Ekonomisk geografi

Today’s lecture A recap of the lectures on the State and TNCS Dicken chapter 15, 16 (covered in earlier lecture), 17, 18 –15. Winning and Losing: An Introduction –16. Good or Bad? Evaluating The Impact of TNCS on Home and Host Economies –17. Making a Living in Developed Countries: Where Will the Jobs Come From? –18. Making a Living in Developing Countries: Sustaining Growth, Enhancing Equity, Ensuring Survival –19. Making the World a Better Place

The state – a winner or loser? States still have a significant role and influence…But that their roles and functions have changed The interesting question is whether states are largely being changed by globalization or whether they are the cause of globalization… which is the chicken which is the egg? Hard to answer However it is true that most now accept and do not question the march of globalization: and their policies reflect this idea that they must be open and flexible BUT at what cost? At what gain?

TNCs – naughty or nice? Evil? –Exploitative –Lock-out the Third World –Environmentally unfriendly –Consumer unfriendly –Destroy local cultures –Destroy jobs Not all bad?  Can be seen to encourage peace, democracy and rule of law  Good record of imposing western equality standards  Better wages and conditions than local firms  Good for technological development – spend lots on R&D  We seem to like their products (or are we fooling ourselves?)

CH 15. Winning and Losing: An Introduction There is growing inequality (this does not necessarily mean growing absolute poverty) Growing gaps place pressure on areas and push/pull people to move on the richer areas (within the country; and globally)

The 20% richest of the world’s population account for over 80%of world production and exports. The 20% poorest account for 1%.

People follow economic growth (and perhaps freedom?)

The double exposure problem Those most economically exposed/at risk are also those hardest effected by environmental disasters, climate change etc.

CH 17. Making a Living in Developed Countries: Where Will the Jobs Come From? A shift from manufacturing to services? to knowledge? To? More women working Increased unemployment Increased income differences (and social polarisation) Regional differences (snowbelt/sunbelt; inner-city decline …)

Developed countries: what type of jobs are we able to find? What type of jobs are we able to keep?

Working less in manufacturing More women are at work

Within the industrial world there are big regional differences

Within each country there are growing regional disparities

How do we explain the changes? Technological change? Globalisation of Production (outsourcing)? Imports from low-cost countries? Not always easy to say… the balance sheet …

How does policy respond? New protectionism (against low price imports) Attempt to attract investment Intensify technological development Encourage new firms and entrepreneurs Make the labour market more flexible Migration?

CH 18. Making a Living in Developing Countries: Sustaining Growth, Enhancing Equity, Ensuring Survival Big differences in the developing world Even if the number of jobs is growing – the population is growing faster In developing countries there is a big gap between the formal and informal sectors – the more informal the economy the less tax, regulation, standards, etc. Migration as a solution? Gets rid of people pressure and migrants tend to send money back The debt trap

Which developing world??? Big regional differences

Migrants still have a role to play in the places they leave

Debt is such a problem that even extreme riches and economic development only go so far

CH 19. Making the World a Better Place The economic world is a very uneven and globalisation has a range of contradictory effects. In particular globalisation effects our power over the world… the chance we have to make it better »The rise of anti-globalisation movements »The need for ‘global governance structures’ »Labour standards and environmental regulation »What might – and should – the future be?

Susan Strange (1996) on globalization and power Power has shifted upwards, from weak states to stronger states with a global or regional reach beyond their frontiers Power has shifted sideways from states to markets and, hence, to non-state authorities which drive their power from their market shares Some power has ’evaporated’ in so far as no one exercises it

Sideways…

Globalisation and economic development has become the focus for many social movements

Power moves upwards… but to where? A confusion of governance structures and institutions

Can firms be persuaded to do it themselves? The UN Global Compact: 9 principals for firms to follow

Conclusion: lets work towards a world where so many as possible have a good standard of living without destroying the environment… BUT HOW? …More or less globalisation? Kofi Annan (hedersdoktor i Uppsala): The main losers in today’s very unequal world are not those who are too much exposed to globalization. They are those who are left out.

JH Mittelman: Is the problem actually globalization or not-globalization? Is the difficulty being part of the system or not being part of it? How can globalization be the source of problems for those excluded from it? D Rodrik: The problem is … that there is no convincing evidence that openness, in the sense of low barriers to trade and capital flows produces [international economic integration and improved economic performance]