Does globalization contribute to sustainable prosperity for all people? Prosperity: “good fortune” or living a good, satisfying life Sustainable: can continue or be maintained in the future

Economic Globalization In the early days and a simpler agricultural society, production led to consumption, which led to surplus and growth. This system created a dependence on private property to feed the family and produce an income. Now, we live in a world of machines and salaries. No longer can we solely rely on our own piece of property for sustenance. We must move with the times, or get knocked down.

If you take a bus today, part of your fare will pay for the driver’s wages. Another part will go toward the upkeep of the bus. Still another will go toward taxes that the bus company pays to the government. Taxes are used to provide services such as public education to your community. Paying bus fare is an example of the role you play in the local economy. You also play a role in the global economy. Whenever you buy something made outside Canada, your purchase ensures that more of this item will be produced by someone in some part of the world. LOCAL VS GLOBAL ECONOMY

Figure 11-1 Activists protesting the sale of lumber from rain forests. How might people who live in these forests feel when foreign companies cut down all the trees? How might the owners of Home Depot feel about harvesting this inexpensive source of lumber? How might environmentalists feel about the fact that the world’s rain forests are decreasing at an alarming rate? How do these questions help you to consider why there are different understandings of economic globalization? NOT FAVORABLE ________________FAVORABLE

Definition: The process of economies becoming more and more connected. FOUNDATIONS OF ECONOMIC GLOBALIZATIO Bretton Woods agreement Creation of the World Bank Development of the International Monetary Fund End of the Cold War Technology and communication ECONOMIC GLOBALIZATION

Representatives from 44 allied countries met. Discussed how to rebuild economies destroyed by WWII Established a system of rules and institutions: World Bank International Monetary Fund (IMF) General Agreement on Tariffs and Trade (GATT) BRETTON WOODS AGREEMENT

A financial institution that provides loans to member countries in financial difficulty Provided Billions in loans to aid western Europe after WWII WORLD BANK -politics/canada-to-fight-newborn- deaths.html

Still provides loans to members in financial difficulty: - Long term loans -Countries must meet certain economic and political conditions: a. Reduction of government debt b. Reduction of corruption c. Promotion of western free market policies WORLD BANK TODAY

Was created to work with the World Bank to bring stability to international monetary affairs and to help expand world trade. It is in charge of long-term financial aid for countries in need. The IMF also monitors exchange rates. Both the IMF and the World Bank are United Nations Agencies. INTERNATIONAL MONETARY FUND (IMF)

Even though the IMF and World Bank provide aid to less developed countries, this is not their main function. They are not charitable organizations. They charge interest on their loans and expect the loans to be paid back in full. As well, in order to qualify for loans, the World Bank requires that a country adopt free market policies like those in Canada or the United States.

READ PAGE 184 Complete the fourth page of your handout!

Who controls the IMF and World Bank??? And other DEVELOPED countries.

Ended in 1989 World was divided between communism (Russia) and capitalism (USA) What about Hockey????? Was mainly an economic struggle As the cold war ended, eastern Europe opened to western economic globalization COLD WAR

Technology, has made borders seem unnecessary— Television Computers Internet Cell phones Satellites TECHNOLOGY AND COMMUNICATION

Definition: The process of economies becoming more and more connected. FOUNDATIONS OF ECONOMIC GLOBALIZATIO Bretton Woods agreement Creation of the World Bank Development of the International Monetary Fund End of the Cold War Technology and communication REVIEW

Trade Liberalization Process of reducing barriers to trade Free Trade Trade between countries with relatively few restrictions Trading bloc A group of countries working together to provide better trading terms Tariff A tax on imported goods or services meant to reduce competition with domestic goods and services Sustainable Development Development that meets the needs of the present without compromising the ability of future generations to meet their own needs FREE TRADE

BARRIERS TO TRADE

1989 Canada and the United States sign the Free Trade Agreement (FTA) 1994 Mexico enters and the FTA becomes the North American Free Trade Agreement (NAFTA) Read Figure FREE TRADE

International organizations

Has roots in the GATT GATT was transformed into the WTO on January Seeks to improve trade relations among countries of the world Provides a place to settle trade disputes WORLD TRADE ORGANIZATION (WTO)

The G8 is an informal group of the eight most developed nations with the strongest economies Members include United States Great Britain France Germany Italy Japan Canada Russia GROUP OF EIGHT (G8)

Deal with a wide range of global economic, political, and social issues G8 countries have nearly 50% of votes in the IMF and World Bank And has significant impact on WTO policies G8

Argues that the WTO and globalization does not contribute to the sustainable prosperity for all people Council of Canadians Formed in 1985 Some Canadians became concerned that Canada’s independence and way of life was being threatened Pg. 193 ANTI-GLOBALIZATION MOVEMENT

Methods of Protest used by various groups include Public speeches Letters of opposition or support Mass petitions Internet forums and blogs Banners, posters and press statements Public Acts such as Marches, parades, sit-ins or fasts, civil disobedience. METHODS OF PROTEST