Globalisation, causes for demonstration against

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Globalisation

There are a number of key drivers for demonstration against corporate globalisation. A plethora of definitions for globalisation exist. These range from positive definitions such as "a decoupling of space and time, emphasising that with instantaneous communications, knowledge and culture can be shared around the world simultaneously." (Anthony Giddens, cited at http//www.globalisationguide.org/01.html, 1/08/00) through to more negative definitions such as "a worldwide drive toward a globalised economic system dominated by supranational corporate trade and banking institutions that are not accountable to democratic processes or national governments." (http//www.globalisationguide.org/01.html, 1/08/00)

The definition of globalisation used for the purpose of this essay is

The term globalization captures elements of a widespread perception that there is a broadening, deepening and speeding up of world-wide interconnectedness in all aspects of life, from the cultural to the criminal, the financial to the environmental. At issue appears to be a global shift; that is, a world being moulded, by economic and technological forces, into a shared economic and political arena.

(Held, McGrew, Golblatt & Perraton, 00)

One of the most significant objections to globalisation (as defined above) is that it allows people to be taken advantage of. The ethos of consumer sovereignty bestows power on the consumer to influence the behaviour of all suppliers, not least of which are multinational corporates. The constant demand for lower consumer prices motivates corporates to search for ways of doing this, while still maintaining the necessary quality. This constant demand from consumers for lower prices is often with little regard for the consequences of delivering the same products for a lower price.

However, Deeds and Enderwick (17) suggest that consumer sovereignty does not truly exist unless a free, informed and responsible choice is enabled. This more holistic view of consumer sovereignty encompasses the ability for consumers to assume socially responsible behaviour if they so choose.

The situation where communities and workers are taken advantage of is enabled through differing laws that exist in different countries. Labour laws are one important area where legislated constraints vary from nation to nation. Not all countries have minimum wages that are as generous as they are in developed countries. Furthermore, the concept of a maximum number of hour working week is often not applied in developing countries. Governments of developing countries, in their eagerness to attract foreign investment and business, often do not consider the social cost of exploiting workers in their countries. Examples of such exploitation of workers that can occur in developing countries include child labour and sweatshops (Roddick, 000).

Objections levelled at globalisation based on its ability to allow workers to be abused arises also from the fact that often the end consumer has no visibility of the abuse. Furthermore, in some situations the multinational itself may not even know about worker abuse. Where the consumer does not know or care about worker abuse, this enables the corporate multinational to also disregard any worker abuse in the supply chain. Globalisation enables consumer ignorance to worker abuse as the workers are often geographically separated from the consumer. Other barriers which enable this lack of visibility are language differences and control of media in either or both of the supplying and consuming country. Fundamentally, this situation is liable to arise anytime where demand and supply are isolated from one another.

The premise that globalisation deserves objection (in the guise of free trade and capitalism "Globalization is undeniably a capitalist process" (http//www.globalisationguide.org/01.html, 1/8/00)) under-pinned the views presented by Karl Marx in Das Kapital (1886). He argued that free trade allows different workers to be paid different amounts for the same amount of work. (Chapter 0 National Differences in Wage, Marx, 1886).

Furthermore, both time-wages and piece-wages allow workers to be exploited. Under these common methods of remuneration, workers are encouraged to earn ever more revenue for the capitalist entrepreneur. (Chapter 18 Time-wages and Chapter 1 Piece-wages,

Capital, Volume )

Another symptom of globalisation that provokes resistance is the homogenisation of diverse cultures. This is brought about through globalisation is a number of ways. A good example of the effect of early globalisation resulting in homogenisation of cultures in the colonisation of New Zealand by the British. Under the Treaty of Waitangi, Maori chiefs effectively surrendered their sovereignty to British rule (Grice & Fleming, cited in Monin, Monin and Walker, 1). In subsequent years, the Maori culture waned both through active measures by the British and simply though a lack of incentive to sustain the culture. In the early part of the 0th century, the use of the Maori language at schools was discouraged and was certainly not taught. In this way, the Maori culture (along with other native cultures) became homogenised with the English culture.

Through the effects globalisation, the language of the business world becomes homogenised. In many countries English is emerging as the common language of business. This is due in part to the dominance of the United States and the significant proliferation of US software and television programs around the world. For example, the term "trash can" is part of the American lexicon of the English language. However with the ubiquitous Microsoft Windows software package reaching a significant portion of the developed world, the word "trash can" has become more common usage, especially with younger computer users who have been exposed to the Microsoft Windows from a young age. As a result of this homogenisation, the less dominant cultures, languages and lexicons become obsolete and over time, lost completely. This is one cause for opposition to globalisation.

It is evident that where there is a dominant civilisation, globalisation can have the effect of homogenising other less dominant cultures into its own. This effect can be likened to the biological process of osmosis, whereby matter moves from an area of higher density, to an area of lower density, in effect levelling the density overall to a common level.

Although it can cause conflict, there is significant value in having differing sets of values between different nations. A diversity of perceptions helps to ensure that everyone is valued. For example, different cultures have a different perception of what constitutes beauty. "The Ashanti consider woman, who would be considered downright fat in our culture, to be most alluring" (Roddick, 000). An effect of globalisation is to homogenise the values of the citizens of the world, with the result of unnecessarily excluding many people from social acceptance. Where the perception of beauty is homogenised, as occurs through the proliferation of American and western fashion and beauty magazines throughout the world, then only a tiny minority of people can be considered beautiful. Conversely, the vast majority of people, particularly woman, are disadvantaged as the definition of beauty that is established is unattainable for many women.

Globalisation also leads to unilateral weighting of values through internationalised methods and guidelines such as the United Nations System of National Accounts (UNSNA). This system provides methods for valuing labour and the methods proposed differ from that which may otherwise be used by member nations. For example the value of activities typically undertaken by woman (such as child rearing and housework) are deemed not to be labour of any value (Waring, 188). This homogenisation of values can be very negative as it results in groups of people being unnecessarily and unfairly undervalued. Inevitably, there will be some groups which are in the minority in the global context and therefore may not receive consideration by an international organisation. These groups, when considered by a local organisation, are not longer small minorities, but may in fact be in the majority in the local context. Therefore, application of global values is likely to have the effect of disadvantaging groups that would otherwise receive adequate consideration in a local context.

Uneven distribution of wealth is a symptom of corporate globalisation which underlies many objections heard in recent years. The mitigation of geographic, economic and political barriers to trade between nations perpetuates the wealth of the rich at a social cost to those least able to defend their interests. In practice, this benefits those entrepreneurs with sufficient means, by employing low cost labour at low cost locations. Given that the means of low cost workers are modest, the well supported multinationals have a significantly stronger bargaining position. The gains from such an engagement flow primarily to the stronger party.

This perspective is closely aligned with that presented by Karl Marx in Das Kaptial (1886).His views and philosophy challenged the benefits of capitalism, free trade and in effect globalisation. His ideas were so appealing that a number of significant nations adopted many of them. Russian communism, Chinese socialism and Nazi Germany all bear a value set closely aligned with Marx's discontent with globalisation.

An implicit set of roles and responsibilities exist for global corporate leaders in the context of globalisation. Frustration and objection arises internationally when these global corporate leaders do not fully acknowledge and commit to these responsibilities. One of these key responsibilities is to support sustainable development. Corporations that subscribe to organisations such as the World Business Council for Sustainable Development indicate at least an intention to promote sustainable development. By considering the impact of the full life cycle of each product and promoting recycling, these businesses are acting responsibly in the global arena (Post, Lawrence & Weber, 1).

It could be argued that globalisation is a far from new concept. A cyclical re-occurrence of it can be seen through history, from the expansion of the Roman empire into regions such as Africa and India, through the Spanish invasion of the Americas, through to the current reduction of borders and barriers. At each occurrence, passionate and often violent objection has been articulated. However, inevitably some trigger results in a de-stabilisation of the order which is required to co-ordinate global activities. A scientific analogy which adds value in this consideration is the concept of entropy that develops as the order in a system devolves into chaos.

So the significant question that remains for the current occurrence of globalisation is what trigger will disengaged the current movement towards globalisation and when will it occur.

References

Deeks, J. & Enderwick, P. (Ed) (17). Business & New Zealand Society. Auckland Longman Paul Limited.

Held, D, McGrew, A. Golblatt, D & Perraton, J, (00). Global Transformations. www.polity.co.uk/global/.

Marx, K. (1867 / 1). Capital. Translated by C. Paul. London J.M. Dent & Sons.

Monin, N, Monin, J & Walker, R. (Eds.). (1). Narrative of Business & Society. Auckland Longman.

Post, J.E., Lawrence, A.T. & Weber, J. (1). Business & Society Corporate Strategy ,Public Policy, Ethics. Boston Irwin McGraw-Hill.

Roddick, A. (000) Business as Unusual. London Thorsons

Waring, M. (188). Counting for nothing What men value and women are worth. Wellington Allen & Unwin / Port Nocholson.

Bibliography

R. Wilson and W. Dissanayake (Eds.). (16). Global / local Cultural production and the transnational imaginary. .Durham / London Duke University

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