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Cell phone: 011 91 934 6988 639
91 40 2007 0143 (Land line phone)
E-MAIL: azadreadingroom2@yahoo.com
Azad Reading Room
[Secunderabad]
NEW
Bharat Samajh:
Understanding India
India
Report
NEW
CORPORATE GLOBALIZATION
By S. Shah
Over the past decade a torrent of writing has been describing and analyzing the phenomenon of Globalization. Along with variety there is considerable confusion with regard to what is Globalization. In order to provide clarity what is proposed, from a vantage of the South (the developing and/or underdeveloped world), are the following propositions.
1.Globalising is a process involving production, exchange and consumption across national frontiers. National boundaries are of relatively recent origin (approximately over the last 3 centuries) and associated with the concept of �modernization�.
2.As a process, globalizing has been taking place over several centuries visible unevenly/unequally at the regional and country level. In its �modern� form since the last quarter of the 19th century globalization is specifically connected with the growth and consolidation of the corporate business organization.
3.More recently, since World War II, globalizing economies have gathered strength through multilateral institutions, such as the World Bank (WB), the International Monetary Fund(IMF) and the World Trade Organization (WTO). While the multilateral institutions are made up by a membership drawn from many nations, they are mainly headquartered in N.America/W.Europe/Japan. Furthermore the specific country representatives/delegates are largely selected from the priveleged (higher income earners/wealth holders) segments of their societies.
4.�Modernisation� is characterized by the spread of industrial manufacturing activity, rapid growth of urbanization, unviversalisation of money/cash as the means of exchange/commerce, growing integration of geographical space through transport, tele-communication and the deepening of cultural(movies, TV, music etc.) homogeneity.
5.The dynamic drivers of the globalizing process are, (i) market search and penetration; (ii)rapid transfers of finance capital; (iii) growing imperatives of accessing natural and human resources; (iv) the necessity of stable and or lower costs of corporate operations; and(v)market survival premised on rising profitability.
6.Over the past 3 decades(specifically since the late 1970�s) important outcomes of the globalizing process are the increasing economic disparities between regions (NORTH-SOUTH divide), a concentration of income and wealth (between 1%-10% of national population�s hold/own the dominant share of assets and incomes), rising and persistent unemployment/underemployment leading to a massive displacement of people(mainly rural). The World Employment Report (International Labor Organization),2000-2001 estimates indicate 1/3 of the 3 billion global workforce as being unemployed or underemployed. The numbers exhibit rising tendencies. At the same time social services associated with housing, health and education have been significantly reduced as a consequence of cutbacks in public budgets.
7.The economic and social changes of globalization are described as Structural Adjustment Programs (SAP). Through the SAP�s two patterns of change have emerged. First, production is privatized to cater to the demands of the affluent. Second, exports are emphasized particularly of selected industrial and agri-business products geared to supplying the markets of North America, European Union and Japan. The impact of the SAP�s on internal resource allocation is to divert them from catering to the domestic mass market. As a consequence of the resource re-allocation income and wealth disparities widen which contribute to a degradation in the quality of life of the majority.
8.As the global process unfolds the affluent population segments in the South, experiencing enrichment, are more willing to fashion and implement policies/programs that strengthen the structure of globalization. Herein lies an important basis leading to the erosion of sovereignty � loss of control over and decision making regarding use of resources.
9.The players and beneficiaries of the process of globalization are a small minority of corporations and the equally tiny segment of the population, namely the affluent elites. Out of the top 100 producers of the Gross Domestic Product (GDP), 51 are corporations NOT countries. More than 1/3 of world trade is between corporations NOT countries.
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10.Are there alternatives? Over the past decade there are a number of alternatives taking shape. The focus of the alternative options can be summarized in relation to the use of material and human resources: FIRST, greater access to resources; SECOND, strengthened equity in resource use; THIRD, local control over resource allocation The above options underscore transparency and accountability The key to a successful alternative globalizing process is the development of mass markets at the domestic and regional geographical level.
ACTION REFERENCES:
1. Anderson,Sarah. et.al. FIELD GUIDE TO THE GLOBAL ECONOMY. N.Y. 2000
2. Bagchi, A.K. GLOBALIZATION
3. Brecher,Jeremy. et.al. GLOBALIZATION FROM BELOW. Cambridge(MA). 2000.
4. Brenner,Robert. THE BOOM & THE BUBBLE. N.Y. 2001.
5. Galeano,Eduardo. UPSIDE DOWN. N.Y. 2000
6. "Global Capitalism". CAPITAL & CLASS(Special issue). Spring,1999.
7. Klein, Naomi. NO LOGO. N.Y. 2001
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