Capitalism…or Hegemony? Anti-Globalization Capitalism…or Hegemony?

What is Globalization? Increasing global connectivity. Integration and interdependence in the economic, social, technological, cultural, political, and ecological spheres. An umbrella term and is perhaps best understood as a unitary process inclusive of many sub-processes that are increasingly binding people and the biosphere more tightly into one global system.

The influence of globalization Industrial - emergence of worldwide production markets and broader access to a range of goods for consumers and companies. Financial - emergence of worldwide financial markets and better access to external financing for corporate, national and subnational borrowers. Economic - realization of a global common market, based on the freedom of exchange of goods and capital.

The influence of globalization Political - Political globalization is the creation of a world government which regulates the relationships among nations and guarantees the rights arising from social and economic globalization. Social - the achievement of free circulation by people of all nations. Informational - increase in information flows between geographically remote locations.

The influence of globalization Cultural - growth of cross-cultural contacts; cultural diffusion; "world culture". Ecological- the advent of global environmental challenges that can not be solved without international cooperation, such as climate change, cross-boundary water and air pollution, over-fishing of the ocean, and the spread of invasive species.

Pros and Cons of Globalization Productivity grows more quickly when countries produce goods and services in which they have a comparative advantage. Living standards can go up faster. Global competition and cheap imports keep a lid on prices, so inflation is less likely to derail economic growth. An open economy spurs innovation with fresh ideas from abroad. Accelerated the development and innovation of technology and communication

Pros and Cons of Globalization Millions of westerners have lost jobs due to imports or production shifts abroad. Most find new jobs that pay less. http://gawker.com/5965971/the-past-and-future-of-the-american-worker Millions of others fear losing their jobs, especially at those companies operating under competitive pressure. Workers face pay-cut demands from employers, which often threaten to export jobs. http://thinkprogress.org/economy/2012/12/04/1278131/hostess-ceo-cuts-worker-pay-but-leaves-own-salary-untouched/?mobile=nc Service and white-collar jobs are increasingly vulnerable to operations moving offshore. Western employees can lose their comparative advantage when companies build advanced factories in low-wage countries, making them as productive as those at home.

What is anti-globalization? The political attitude of people and organizations that resist certain aspects of globalization. Social movements Participants are united in opposition to the political power of large corporations Self-consciously internationalist, organizing globally and advocating for the cause of oppressed people around the world

Some Notable Anti-globalization Protests J18 June 18, 1999 London, UK; Eugene, Oregon http://www.youtube.com/watch?v=vva53wZzffA Seattle/N30 November 30, 1999 5,000 protesters blocked delegates’ entrance to WTO meetings in Seattle Protesters forced the cancellation of the opening ceremony and lasted the length of the meeting until December 3 http://www.youtube.com/watch?v=ULtFLAGHiWE Genoa July 18 – July 20, 2001 Biggest anti-globalization gathering in history, 250,000 protesters against the G8 meeting in Genoa, Italy 3 dead, hundreds hospitalized

Some Notable Anti-globalization Protests (cont.) Canada G8/G20 Weekend Between June 25th and 27th, 2010 Canada hosted the G8 and G20 meetings in Huntsville, ON and Downtown Toronto respectively The meetings signaled the veritable end of the G8 and the newfound supremacy of the G20 as the world’s leading global economic forum The Toronto Police and G20 organizers collaborated to instill security measures around Toronto that worked, but also offended some people’s definitions of civil liberties and individual freedoms These measures included a perimeter fence around the site (which included parts of Toronto’s financial district and people’s homes) that necessitated identification to enter Many major media outlets alleged that the security costs alone approached $1billion http://www.torontosun.com/news/torontoandgta/2010/06/07/14292026.html http://toronto.ctv.ca/servlet/an/local/CTVNews/20100625/g20-summit-protest-poverty-100625?hub=TorontonewHome

Causes of Anti-globalization Movement Globalization globalizes money and corporations, but not people and unions Outsourcing and offshoring caused millions of westerns lost jobs or paid less Fear losing jobs in western countries Exploitation of the resources in the developing countries by western countries

Why anti-globalization? (cont’d) Economical Exploitation of the resources in the third world country Example of Starbucks Vs. Ethiopian Coffee Ethiopians demand Starbucks support to trademark 3 of its coffees in US $4 for a cup of Cappuccino at Starbucks; $.50, a day income for the Ethiopian farmer at the coffee farm

Why anti-globalization? (cont’d) Cultural Local or minority culture are facing the fate of disappearing Western culture invaded into developing countries Example: McDonalds More than 100 countries 30,000 restaurants Serves 50 million people daily

Why anti-globalization? (cont’d) Environmental Aggravated pollution, Global warming, losses in biodiversity and species extinction Average global temperatures are estimated to rise 1- 3.5 centigrade (33.8 – 38.5 degrees) by 2050 Developed industrial countries export hazardous waste to third world countries Example: one global agribusiness firm closed a terminal in Brazil's Amazon region for environmentalists

Why anti-globalization? (cont’d) Women and children 90% of the workers at the sweatshops are women http://www.youtube.com/watch?v=dE7A58nez8A Child labor hired by global companies in developing countries Example: 14-year-old workers in Nike factories in Indonesia http://www.youtube.com/watch?v=vpLnZ3y_Rfw The Chocolate Industry http://www.youtube.com/watch?v=KXWFXeIZY9g

Why anti-globalization? (cont’d) Human rights More and more strict immigration restrictions in developed countries, no free move for labors In sweatshops in developing countries, harsh working conditions, low pay and overtime working are common Social The unequal wealth distribution worldwide The gap between the developed countries and the third world counties The gap between the poor and rich

Globalization might be harmful to Developed Countries in the future China is striving to create global automobile and electronics brands. India’s skill-intensive service sectors like IT and outsourcing are rising very fast. Western firms would face unprecedented competition from the two and other developing countries.