Top down globalization top down globalization

This preview shows page 75 - 77 out of 110 pages.

Top down globalization Top down: Globalization involves the actions of groups promoting globalized capitalism and free trade Embracing neo liberal policy: They are economic policies 1. Retreat from state spending and regulation. Small government. 2. A focus on individual’s responsibility for one’s own welfare. Based on merit and talent. 3. Less protection for labour and the environment. 4. Privatization of state resources. 5. Faith in the power of the market. Little regulation, little intervention. Free market. Globalization from below Globalization from below: Describes the action of groups that criticize the injustices that result from globalization processes. They advocate for: 1. Spread of international rights 2. Global labour standards 3. Increased democracy in the global system 4. Environmental protection 5. Social justice. It is not cohesive . A broader framework that encompasses multiple perspectives. 1. Moderate critiques of neo liberalism 2. Radical anti capitalist positions 3. Various forms of anarchism 4. Armed peasant uprising 5. 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.
Capitalists In 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 afford to purchase (In 2008, 94 million vehicles were produced for 60 million buyers) Centralization: Corporations have merged to stay competitive , blending different industries together Growth of corporate power Of the largest 175 economies in the world, 109 are corporations Companies 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 and social responsibility on the part of corporations While 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 on less than US2.50$ a day) State autonomy disappearing? Democratic deficit: When ordinary citizens are disenfranchised from the process of governance This is due to the three sisters: 1. IMF 2. World Bank 3. WTO Supranational organizations: Organizations who put pressure on nations to deregulate 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.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture