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Top down globalizationTop down: Globalization involves the actions of groups promoting globalized capitalism and free tradeEmbracing neo liberal policy: They are economic policies1.Retreat from state spending and regulation. Small government.2.A focus on individual’s responsibilityfor one’s own welfare. Based on merit and talent.3.Less protection for labour and the environment. 4.Privatizationof state resources. 5.Faith in the power of the market. Little regulation, little intervention. Free market.Globalization from belowGlobalization from below: Describes the action of groups that criticize the injustices that result from globalization processes. They advocate for:1.Spread of international rights2.Global labour standards3.Increased democracy in the global system4.Environmental protection5.Social justice.It is not cohesive. A broader frameworkthat encompasses multiple perspectives.1.Moderate critiques of neo liberalism2.Radical anti capitalist positions3.Various forms of anarchism4.Armed peasant uprising5.Fair-trade coffee projects. Caring about labour practices and environmental impact. Consumers should take an interest in paying more for products produced under fair trade ways.
CapitalistsIn economic terms, money used for investment, currency trading, is “financial capital”(98% of money exchanged on any given day is not tied to goods and services) Overcapacity: Global corporations (TNCs) are producing more things than the world’s consumers can affordto purchase (In 2008, 94 million vehicles were produced for 60 million buyers)Centralization: Corporations have merged to stay competitive, blending differentindustries togetherGrowth of corporate powerOf the largest 175 economies in the world, 109 are corporationsCompanies play nation-states off one another, pressuring governments to lower taxes rates by threatening to move production to a more favorable location (the worldwide corporate tax rate has fallen from 31.4% in 1999 to 25.9% in 2008)Critics of corporate power (No Logo, Adbusters) demand more accountability andsocial responsibility on the part of corporationsWhile the global economy has made a portion of the world’s population wealthy, a large proportion of the world’s people (at least 50%) are considered poor live onless than US2.50$ a day)State autonomy disappearing?Democratic deficit: When ordinary citizens are disenfranchised from the process of governanceThis is due to the three sisters: 1.IMF2.World Bank3.WTOSupranational organizations: Organizations who put pressure on nations toderegulate capital markets, remove price subsidies, decrease social spending, orient the economy toward exports, and privatize state-run industries (adopt neoliberal policies) Top down globalization. Makes governments do what they don’t want to do.