Globalization: And Its impact on communities By AMASCO ODEX © Copyright 2016 – AFODEX Publishing All right reserved. This book is protected by the copyright law of the United Kingdom. This book may not be copied or reprinted for commercial gain or profit. The use of short quotations or occasional page copying for personal or group study is permitted and encouraged. Permission will be granted upon request. Table of Contents Introduction Learning Outcomes Chapter 1 What is globalization? Chapter 2 Globalization: a friend or foe? Chapter 3 Short history of globalization Chapter 4 Globalization in the 21st century Chapter 5 Benefits of Globalization Chapter 6 Disadvantages of Globalization Chapter 7 Impacts on communities Chapter 8 Conclusion References Introduction In this e-book the author examined the definition of globalisation and community development. He discussed how both their values are in tension with each other. I will also be looking at its progression, positive and negative impact on community development. Learning Outcomes After reading this e-book, you should be able to: Understand and define globalization and community development. Understand the history of globalization Understands the benefits and disadvantages of globalisation Understands the Impacts of globalization on communities Chapter 1 What is globalization? Our lives are made up of stories, stories in which globalisation has played and continues to play a huge role. The business dictionary defines globalisation as the ‘worldwide movement toward economic, financial, trade, and communications integration’. According to Giddens (1990), globalization is ‘the intensification of worldwide social relations which link distant localities in such a way that local happenings are shaped by events occurring many miles away and vice versa’. Community development, however, is defined as a ‘long–term value based process which aims to address imbalances in power and bring about change founded on social justice, equality and inclusion’ (The Community Development National Occupational Standards, 2009). The key principle underlying community development is the idea of community empowerment, social justices, equality and collective action. While the main idea fuelling globalisation is based on free market capitalism and maximization of profit at all cost. These two sets of motivations are constantly in tension with one another and impact negatively on local communities. Chapter 2 Globalization: a friend or foe? David Held (2000:22) put forward three theoretical frameworks which summarize the debate on globalisation. Globalists; argue that the force of globalisation cannot be stopped. Therefore, nation states are becoming less important. Internationalists disagree and argue that the force of globalisation has been exaggerated; they believe that nation states still have a role. Transformationalists, however, believe that there has been a shift as a result of globalisation but question what the outcome will be. They argue that there is an important role for all nation state organs. While I lean more towards the Internationalists argument, evidence has proven that there is little or nothing weak nation states can do to rescue themselves from the ambits of giant Co-operations and Multinationals that operate with impunity across borders. Chapter 3 Short history of globalization The history of globalisation is as complex as trying to come up with a definition. Further to being elusive in encapsulating evidence of existence. There is no definite agreement among economic historians as to when globalisation begins. According to Kevin et al (2002) and Ellwood (2006:12) some historians like Adam Smith believe that the discovery of the Americas by Christopher Columbus in the year 1492 and the discovery of Africa and India by Vasco da Gama in the year 1498 might be the pivoting year in the history of globalisation. Christopher Columbus’ goal as Wayne Ellwood (2006:12) pointed out was to find the Grand Khan of China and the gold that was reportedly available in great quantity. He did not make it to Asia but did accidentally discover the Americas. Disappointed that he did not find gold in large quantity; he forced labour policy and enslavement on the indigenous population. His discovery of the Americas opened the continent up for European colonisation and destruction of the indigenous people he discovered. Also in the quest of the king Manuel I of Portugal to establish a direct trading route to India, Vasco da Gama took to the sea. Along the way he discovered the Cape of Good Hope and Africa surrounding coastal cities, he went further to discover India. On his second voyage to India, in order to establish the Portuguese first trading post in India he committed mass murder of Muslim merchants trading along these routes, in the bid to establish Portugal's dominance in the region. The discoveries of these new lands gave rise to long years of slave trading of the indigenous people, colonisation and plunder of resources, which consequently laid the foundation for the current global economy. The case for colonisation was put squarely in the 1890s by Cecil Rhodes, the man credited as Britain’s most imperial spokesman when he stated that ‘We must find new land from which we can easily obtain raw materials and at the same time exploit the cheap slave labour that is available from the natives of the colonies. The colonies will also provide a dumping ground for the surplus goods produced in our factories.’ (Cited in Ellwood 2006) There have been many more waves or dimensions of globalisation that have taken place after 1492 and 1498. However, this the author believes laid the foundation for today’s global economy. Chapter 4 Globalization in the 21st century Progressing to the 21st century, the rapid integration of the globe has being aided by the improvements in Transportation Technology and the growth and development of Information and Communication Technology (ICT). The improvement in transport technology is fascinating. It has vastly delivered a cheaper and faster mode of transportation across the world. From horse back to horse wagons in the 1900s, to the first steamboat invented by Thomas Fulton in 1787, to the invention of the train and the first gas powered car by Henry Ford in 1896, followed by the airplane by the Wright Brothers in 1903. Innovation in air cargo, airplanes, ships and other modes of transport has guaranteed movement of people and delivery of goods from one point to another across the globe within a matter of days. The idea of containerization was a major discovery and according to world shipping councils it is responsible for up 60% of the value of goods shipped via the sea. The term ICT incorporates all facets of communication technology, that is: radio, cellular telephone, television, computers with both hardware and software, satellite system capabilities, with the addition of services and applications. One aspect of the service that computer technology can deliver is video conferencing which makes it possible for a company in the United Kingdom to communicate with another branch of the company in China or India instantly and at competitive rates. ICT has been integrated into every facet of everyday life from education to food processing; libraries, departmental stores and healthcare sectors and its contribution have enhanced our world. The Internet, a global system of interconnected computer networking made possible as a result of globalisation has presented us with whole new forms of opportunities and made improvements possible. Before the advent of the internet our communication was limited to face to face (literally), snail mail and expensive landline telephone. Historically, if you had a family member that travelled to other parts of the world, one would have little or no communication with them due to limited communication mediums. Today we can send an electronic mail to any part of the world and receive an almost instant reply. We can talk face to face with friends and family in any part of the world with the aid of an internet connected computer. Today we have online or telephone banking; this has drastically reduced the amount of time we spend queuing up in banking halls or removing it totally. Completing online classes are now possible. Thus, encouraging more people to achieve diplomas and degree certificate without entering university campuses. Chapter 5 Benefits of Globalization Today most of the information we need is instantly at our disposal as a result of the internet, like checking for the weathers reports, searching for the local library address, or finding the best route to get to your destination, or even finding information about any topic of interest. The Alibaba group a Chinese internet-based e-commerce company has filed for an initial public offering (IPO) in New York. The IPO is reported as the biggest in history valued at £144.3billion (Sky News). This economic success would not have been possible without the internet. Buying and selling has been made much easier with the internet. Someone in a room in Belfast can shop in the market of other parts of the world and have the product delivered in a matter of days. The internet has also redefined our workplace. One now has the option of working from home or hub share, so the need to physically be in the office has been reduced as face to face meetings with team members in any part of the world has become possible. The interconnectedness of our world as the result of the internet has also given social, community activist and organisations the opportunity to work together and collaborate on a large scale not previously possible. Anita Roddick (2001:22) reported that more than 700 organisations and between 40,000 and 60,000 people took part in the protest against the World Trade Organisation (WTO) Third Ministerial meeting in 1999. Among those that participated in the protest were national and international NGOs, student groups, religious-based groups all opposed to WTO policies around the globe. This convergence to march and protest against inequality would not have been possible without the internet, a result of globalisation. Today a local organisation in Belfast can partner and work with a rural organisation in South East Asia or Africa to deliver training and work together on a common cause. I am in partnership with an organisation to deliver Information and Communication Technology (ICT) based seminars to local organisation throughout Northern Ireland. These will effectively empower the organisations and local community in taking advantage of opportunities, help connect and collaborate with similar organisation in other parts of the world, share best ideas and knowledge and even resources. An organisation without these skills can potentially find itself isolated or even marginalised. Chapter 6 Disadvantages of Globalization There is no denying the fact that globalisation has brought us unprecedented opportunities and development that the human race could ever imagine, but it is not without its disadvantages. Examples may be the rapid spread of deadly diseases and widening gaps between the rich and poor. According to Manfred Steger (2003:26) towards the end of pre-modern times, as the cultural and economic exchange increases, so also does migration. This resulted in new infectious diseases like the bubonic plague, which killed millions in Americas, China, Europe and the Middle East. Another is the Black Plague, thought to have originated in Asia, but claimed an estimated 200 million death in Europe from 1348 to 1350. The Spanish Flu is said to have infected over 500 million people around the world and kills about 100 million of them. Severe Acute Respiratory Syndrome (SARS) a viral disease caused by a coronavirus, that is responsible for common cold. The outbreak was thought to have begun in a Chinese province in year 2002. Between November 2002 and June 2003, according to SARS protection agency 8,098 people have contracted the virus and 774 have die from it worldwide. Within two years the epidemic had spread to more than 25 countries. The aftermath of these kinds of diseases can have a devastating effect on every facet of nation states especially the local communities. According to Oxfam the gap between the rich and poor has widened in the last thirty years in different countries around the world. They point out that in the US the share of national income going to the top 1% has doubled since 1980 from 10 to 20%. For the top 0.01% it has quadrupled. In China the top 10% now take home nearly 60% of the income (Oxfam 3013). In the UK the dependence and reliant on food banks is growing according to Food Ethics Council Research carried out in February 2014, and according to the Trussell Trust there are 13 million people living below the poverty line in the UK, and between 2012-13 they fed 346,992 people nationwide. Of those helped 126,889 were children (Trussell Trust). The World Trade Organisation (WTO) is a body formed solely to help promote free trade, by drawing up rules and regulations to guide international trade. The idea of a WTO is a lofty one, and a welcome development as about 153 countries enrol as it members within three years of it formation. Some of the proudly displayed principles of WTO are: Trade without discrimination, under this principle one country cannot discriminate against the other. So for example if you give a grant or concession to a trading partner same must apply to all WTO members. National treatment: Treating foreigners and locals produced goods equally. Years down the line this organisation has proven to worsen the states of developing nations rather than improve them, thereby attracting criticism and protest. According to Claire Melamed (2005) ‘Trade liberalisation has cost sub-Saharan Africa US$272 billion over the past 20 years. Had they not been forced to liberalise as the price of aid, loans and debt relief, sub-Saharan African countries would have had enough extra income to wipe out their debts and have sufficient left over to pay for every child to be vaccinated and go to school.’ People like Ricupero a former Secretary-General of the UN Conference on Trade and Development (UNCTAD) have questioned why developed countries have been given decades to readjust their economies to imports products from the Third World but developing nations are forces to open up their economies immediately. (Cited in Ellwood 2006:37) Chapter 7 Impacts on communities The Co-operations and Multinationals companies are permitted to move capital and means of production to where they can find cheap raw materials and labour. Most of their end products are generally cheaper than the same product manufactured by locally industries. This uncompetitive edge kills off local industries as a result, which causes immeasurable hardship on local communities. When a man as the bread winner of his home in sub-Saharan Africa loses his job the whole family suffer as a result. John started a small furnishing business after his apprenticeship back in early 2000s. It was a flourishing business according to the standard of the local industries. I visited John a year later at his workshop, what I noticed made me ask questions. There is usually a list of clients waiting for their product to be delivered and there is always some on display. This was not the case. He explained that the industry had been affected by the importations of cheaper Chinese products which has decreased demand for specialised skills and product to an all-time low. The potential of a local company has been cut short due to the importation of cheaper products flooding the industry. John’s business is not the only local company that will suffer the consequences that globalisation has forced on them. Other local companies in this industry across Nigeria will be impacted. For example, the local textile will not be able to compete with foreign imported product. Based on the above Case study I will now look at the impact of globalisation on community development in three areas: Family and community life; these two are synonymous. Families without access to income are adversely affected in all areas of life from quality of food consumption, clothing, affordable medical care, level of education the children can attain. This has a direct impact on the local economy which further impoverishes the community. Unemployment; as a result of local small business dying off, in order for these men to provide for their families they try to take up employment in the factory. However, as the capitalists discover new ground to exploit, jobs are moved to a new location therefore increasing the unemployment level in the community. Indigenous skills and culture; as people like John find alternative ways to provide for their families, the skills that were acquired over the years will eventually be lost. The result being that skills acquired through apprenticeship will decrease. Such will impact upon family health and well-being and the future family development in relation to education and employment. There is no doubt that globalisation has changed and will continue to change the face of community. When small business owners like John lose their means of livelihood due to inability to compete with larger corporations, national government does not come to their aid as a result of WTO principles. This has great consequences not just for the family but the whole community. Chapter 8 Conclusion Community development practitioners are placed in a precarious position, considering what to do in this situation. Should the system be challenged in order to reduce hardship on local communities or manage the resulting consequences? It is clear that one of the major disadvantages of globalisation is the way in which it undermines the core principles of community development. That is, to address inequality. References Business Dictionary ‘globalisation’ accessed on 13/04/1914 at: http://www.businessdictionary.com/definition/globalization.html#ixzz2yrgQW9NE Ellwood, W. (2006) The no-nonsense guide to globalization, (2nd edn), Oxford: New Internationalist. Giddens, A. (1990) The Consequences of Modernity. Stanford University Press: Stanford, CT. Held, D. (2000) A Globalizing World? Culture, Economics, Politics, second edition, London, Routledge press. Kevin, H., Rourke, O., Jeffrey, G. Williamson (2002) When did globalisation begin? European Review of Economic History, Volume 6, Issue 1, pp 23-50, UK, Cambridge University Press. Lambie-Mumford, H., Crossley, D., Jensen, E., Verbeke, M. and Dowler, E. (2014). ‘Household Food Security in the UK: A Review of Food Aid’ Food Ethics Council, accessed on 13/04/1914 at: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/283071/househol d-food-security-uk-140219.pdf Melamed, C. (2005) The economics of failure: The real cost of ‘free’ trade for poor countries, A Christian Aid briefing paper pp 1-9 Oxfam. (2013) ‘Oxfam Media Briefing’ accessed on 13/04/1914 at: http://www.oxfam.org/sites/www.oxfam.org/files/cost-of-inequality-oxfam-mb180113.pdf Roddick, A. (2001) Take It Personally: How Globalization Affects You and Powerful Ways to Challenge It. London, Thorsons. SARS accessed on 13/04/1914 at: http://sarsprotection.com/ Steger, M. (2003) Globalisation; A Very Short Introduction, New York, Oxford University Press. The Community Development National Occupational Standards (2009) accessed on 13/04/1914 at: http://www.stvincents-svp.org.uk/documents/EducationDocs/Community%20Development%20National%20Occupational%20Standards.pdf Sky News: The £140bn Web Giant Unknown by Most in West accessed on 13/04/1914 at: http://news.sky.com/story/1256894/the-140bn-web-giant-unknown-by-most-in-west The Trussell Trust. ‘UK Foodbanks’ accessed on 13/04/1914 at: http://www.trusselltrust.org/foodbank-projects World Shipping Council, ‘history of containerization’ accessed on 13/04/1914 at: http://www.worldshipping.org/about-the-industry/history-of-containerization