1. Global Change 2 – Section 007
Race to the Bottom The adverse effects of globalization on the environment
Global Change 2 – Section 007
Michael Ashby
Zach Goldstein
Carly Van Dort

2. The global economy Technology means a connected global economy
Corporations are turning to developing nations due to cheap labor and lenient environmental standards
This creates a “race to the bottom” as countries compete for big business

3. What is Globalization?
“the increase in the exchange of goods and services worldwide which has been especially prevalent in the last decade”
National boarders become meaningless
Companies build factories and invest in capital in developing nations
Globalization affects everyone…

4. Yes, even you!
Globalization now affects nearly every part of civilization:
Culture
Politics
Human rights
Economics
Communication
The environment

5. “Race to the Bottom” Contributing Factors:
Developing countries need jobs
In order to attract the jobs, the developing countries lower their environmental and working standards
Developing countries compete against one another to provide the lowest standards

6. Environmental Policy-Making
Government is influenced by multinational corporations as well
“Policy paralysis”: (Zarsky, 1997) If policy-makers attempt to raise environmental standards, they are met with threats by the corporations to leave the country

7. The effects of Multinational Corporations (MNCs)
Case Studies
The effects of Multinational Corporations (MNCs)
Example: Rio Tinto in Madagascar has lifted mining restrictions.
Results:
Rio Tinto’s short-term profits maximized
Marked loss of biodiversity
Decrease in environmental protection of mining areas

8. The effects of Multinational Corporations (MNCs)
Case Studies
The effects of Multinational Corporations (MNCs)
Example: Coca Cola allows lax human rights and environmental regulation in its international bottling factories.
Results:
Coca Cola is distanced from its effects
Deaths due to poor water supply; water privatized by the company
Low control over environmental impacts

9. A look to the future There is hope:
People are becoming more involved globally (activism)
Companies are being pressured to be more environmentally responsible
Race to the top?
Thumb’s up!