Community RESOURCE DEVELOPMENT (DCE3411) Associate Prof. Dr. Roziah Mohd Rasdi Dept. of Professional Development & Continuing Education Faculty of Educational Studies Universiti Putra Malaysia roziah_m@upm.edu.my

Community Development in Globalization Context Topic 8 Community Development in Globalization Context

What is Globalization? Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology.

THE SHRINKING GLOBE 1500 -1840 1850 - 1930 1950s 1960s Propeller aircraft 300 - 400 mph. Steam locomotives average 65 mph. Steamships average 36 mph. Jet passenger aircraft, 500 - 700 mph. Best average speed of horse-drawn coaches and sailing ships, 10 mph.

Type of Globalization Economic Countries that trade with many others and have few trade barriers are economically globalized Social A measure of how easily information and ideas pass between people in their own country and between different countries (includes access to internet and social networks) Political The amount of political co-operation there is between countries

Causes of Globalization Improved Communications Development of communication technologies such as internet, email and mobile phones. Development of satellite TV channels such as BBC and CNN have also provided worldwide marketing avenues for the concept of globalization.

Causes of Globalization Improved Transport The development of refrigerated and container transport, bulk shipping and improved air transport has allowed the easy mass movement of goods throughout the world Notes : WTO - The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world's trading nations and ratified in their parliaments. IMF -

Causes of Globalization Free Trade Agreements MNCs and rich capitalist countries have always promoted global free trade as a way of increasing their own wealth and influence International organizations such as the World Trade Organization and the IMF also promote free trade Notes : WTO - The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world's trading nations and ratified in their parliaments. IMF - The International Monetary Fund(IMF) is an international organization headquartered in Washington, D.C., of "188 countries working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.

Causes of Globalization Global Banking Modern communication technologies allow vast amounts of capital to flow freely and instantly throughout the world. The equivalent of up to $US 1.3 trillion is traded each day through international stock exchanges in cities such as New York, London and Tokyo. Notes : WTO - The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world's trading nations and ratified in their parliaments. IMF -

Causes of Globalization Growth of Multi National Companies The rapid growth of big MNCs is a cause as well as a consequence of globalization. The investment of MNCs in farm, mines and factories across the world is a major part of globalization. Globalization allows MNCs to produce goods and services and to sell products on a massive scale throughout the world.

The Effects of Globalization Changed Food Supply Food supply is no longer tied to the seasons. We can buy food anywhere in the world at any time of the year

The Effects of Globalization Division of Labour Because MNC’s search for the cheapest locations to manufacture and assemble components, production processes may be moved from developed to developing countries where costs are lower.

The Effects of Globalization Less Job Security In the global economy jobs are becoming more temporary and insecure. A survey of American workers showed that people now hold 7 to 10 jobs over their working life.

The Effects of Globalization Damaged to the Environment More trade means more transport which uses more fossil fuels and causes pollution. Climate change is a serious threat to our future.

The Effects of Globalization Cultural Impact Cultural Imperialism = Dominance of one culture over others Hollywood movies, MacDonald’s, Disneyland, Starbucks. MNCs can create a monoculture as they remove local competition and thereby force local firms to close. Dominance of the English language and invasion of other language.

The Effects of Globalization Increase in anti-Globalization Protest There is a growing awareness of the negative impacts of globalization. People have begun to realize that globalization can be challenged by communities supporting each other in business and society and through public protest and political lobbying.

Globalization and Poverty Does Globalization Help or Hurt the Poor? There is no single answer The poor in many countries benefit from: - Opportunity for education, savings, entrepreneurship - Cheaper consumption - Increased jobs - Poor consumer pay more, not less, for what they need - Workers are displaced by imports and lose jobs In other cases: Countries that have embraced globalization have done better, on the whole, than those who have not. e.g some countries in Asia. On average: - Other things needed such as education, good governance, and investment in capital and structure - Globalization alone is never enough to cure poverty In general:

Negative and Positive Effects of Globalization for Developing Country Creates opportunities for firms in less industrialized countries to tap into more and larger markets around the world Lead to more access to capital flows, technology, human capital, cheaper imports and larger export markets It allows businesses in less industrialized countries to become part of international production networks and supply chains that are the main conduits of trade

Negative and Positive Effects of Globalization for Developing Country Negative Effects Cultural uniqueness is lost in favor of homogenization and a "universal culture" that draws heavily from American culture Competition among developing countries to attract foreign investment leads to a "race to the bottom" in which countries dangerously lower environmental standards Global commerce is increasingly dominated by transnational corporations which seek to maximize profits without regard for the development needs of individual countries or the local populations

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