Globalization

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Globalization

• Holly Scheib
• SOWK 771

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Big Picture
Theory Concept of Development Strategies Indicators
Modernization Western-style growth social change Technology advances GNP Modern education Demographic transition
Neoliberalism Free-market Consumer welfare Removal of market trade barriers Investment Privatization
Sustainable Development Green modernization Alternative, grassroots change Accounting controls regulations Environmental regulations
Sustainable Human Development Expanding Human Freedoms Capabilities
Human Rights Protecting advancing human rights Entitlements and claims
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• Only poverty has been truly globalized in our
  age. The over-praised neo-liberalism and the
  omnipotent market is a mistaken vision and it is
  the root cause of some of the most serious
  problems that afflict us.
• Patricio Aylwin, former President of Chile, at
  the opening ceremony of the 31st session of the
  FAO Conference, where he was where he was
  delivering the McDougall Memorial Lecture, in
  honor of Frank McDougall, one of the founders of
  the Food and Agriculture Organization of the
  United Nations (FAO).

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Neoliberalism

• Economic theory (ideology?!) about production
• Market-oriented comparative advantage, free
  trade, minimal government intervention, internal
  problems of states in managing economy
• Implicit definition of development
• Human well-being related to increases in
  consumption
• Best served by market-based delivery of goods
• Furthered by Washington Consensus

Its a theory if you believe in it, an ideology
if you dont! ?
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What is structural adjustment?

• Loans originally given to specific projects
  highways, dams, telecommunications facilities,
  health and education
• 1980 enter adjustment policies
• Economic policies that seek to change the way the
  economy works at the microeconomic level,
  particularly the role of the public sector, the
  regulatory framework, the taxation system and
  incentive structures, with the intention of
  increasing economic efficiency and improving
  long-term economic performances

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Origins of SAPs

• Structural adjustment grew out of neoliberal
  paradigm
• (Note the State is important in Keynesian
  economics, but neoliberalism says remove it.)
• Concepts of development wrapped up within
  neoliberal economic strategies
• Free market
• Small State/limited govt intervention
• Comparative advantage
• International Trade

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Poor Country conditions prior to IMF loans

• High external debt
• High inflation rates
• Worsening terms of trade
• Negative balance of payments/low foreign currency
  reserves
• Protectionist policies for national industries
• High levels of recurrent government expenditure
• High urban/rural income differential
• Economic dominance of government sanctioned
  monopolies

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Conditionality

• IMF loan aid based on conditionality the
  principle that access to new loans, rescheduling,
  debt reduction, etc., is conditional on certain
  criteria being met
• Short term stablization policies (0-3 years)
• Designed to lower inflation rates, increase
  foreign exchange reserves (wage freezes for civil
  servants, adjustment of currency exchange rates,
  etc.)
• Long-term structural adjustment programs (SAPs)
  (2-5 years)
• Floating the exchange rate (allowing the market
  to set the rate), often value of currency
  depreciated dramatically
• Privatization govt agencies move to business
  enterprises

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SAPs

• Yes, government spending reduced but
• Privatization problems (lack of capacity to
  absorb functions unemployment, loss of services)
• Reductions and caps on civil service employment,
  entitlement programs food ag subsidies,
  welfare, pensions, health care services, etc.

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SAPs to PRSs

• Poverty Reduction Strategies (PRS)
• 1999 launch by WB IMF
• Participatory, country-owned natl development
  strategies
• Evaluation IMF IEO achievements so far fall
  considerably short of their potential.
• PRSP Report, July 2004 (also quoted in
  http//www.brettonwoodsproject.org/art-62720 )

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Neoliberalism vs. Globalization

• Related but not equivalent
• Theory/ideology vs. process/phenomena
• Both hundreds of years old
• Enlightenment World trade history, trade
  desirability
• Pace of recent change and New Lenses
• Highlighting downsides offering changes
  consistent or in conflict with concepts

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Globalization, UNDP

• A Phenomena
• Rapid pace of integration of world markets and
  societies
• Many Dimensions
• Economic, financial, socio-cultural,
  technological, information/communication
• Positive and Negative Impacts
• Multi-directional
• Not all Western imperialism

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Globalization, UNDP version
Economic financial Technological Political Cultural
Integration of markets FDI (foreign direct investment) TNCs (Transnational Corporations) Flexible manufacturing FTZ/ETZ NAFTA, CAFTA Information Communication Biotechnology Energy regime Transnational actors rules UN, WTO IMF/WB Democracy Modern values Mobility Transnational ties, networks
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Globalization development
Globalization development Globalization challenge to development Anti-development
Seen through a neoliberal lens Neo-Marxian Critical Social Theory lens (Polarization, new forms of exploitation across within borders, by TNCs and multilaterals) Inherently unequal system Post-Modern and Post-Structural lens (loss of diversity and autonomy, increasing homogenization marginalization (esp poor, indigenous knowledge)
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The Story of Stuff

• Annie Leonard American proponent of
  sustainability and critic of excessive
  consumerism
• Known for The Story of Stuff video, about the
  market economy
• Illustration of economic aspects of
  globalization points to between links
• Look for where people are consider where
  social work fits in the in betweens

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The Story of Stuff
Production
Distribution
Consumption
Disposal
Extraction
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• You are hired as a consultant for a Brazilian NGO
  in São Paulo. The work of this NGO is based on
  principles from Freires Pedagogy of the
  Oppressed. In this work, Freire argued that
  education allows the oppressed to regain their
  humanity and overcome their condition however,
  he acknowledges that in order for this to take
  effect, the oppressed have to play a role in
  their own liberation. Part of this education
  involves conscious raising where the oppressed
  learn about the systems (local-national-global)
  that impact their lives.
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• You have been brought in to help with this
  education planning process. The NGO wants you to
  describe the process of globalization for them to
  incorporate in their programming, and offer
  suggestions for areas where groups can advocate
  for change (dont worry, they assure you they
  will use participatory methods for participants
  to determine their own areas of involvement
  theyre just looking for examples here.)
  Specifically, they are asking you to
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• Define globalization in a way that shows its
  importance in the lives of Brazilians living
  in favela in São Paulo.
• Give examples of places between the materials
  economy where people can intervene.
• Suggest one area of advocacy and propose what it
  might look like.

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Next Class

• Healy, L. (2009). Chapter 3, Theories and
  Concepts Underpinning International Social Work
  Development and Human Rights. In International
  Social Work Professional Action in an
  Interdependent World, Second Edition. Oxford
  University Press. Pages 52-79.
• Elder, L. and Paul, R. (2009). Asking Essential
  Questions. Dillon Beach, California The
  Foundation for Critical Thinking. Part II, pages
  21-31

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Next Class Assignment

• How are human rights relevant to development?
• What questions should social workers ask when
  confronted with development activities in their
  work? List 3 and explain why the question is
  important and relevant to social work theories
  and methods.
• (e.g.) A social worker might work on distributing
  food aid, something which falls under a basic
  needs approach of development. In this
  situation, the social worker should consider the
  requirements for aid and question whether there
  are groups which need aid but do not fulfill
  requirements (for example, if one must work for
  food, what happens in female-headed households
  where the head of household is also the
  caregiver?)
• List 5, detailed, thoughtful questions that you
  could ask in order to clarify or get precise
  answers regarding the following question Do all
  nations have a role in the prevention of genocide
  in other countries?
• (e.g.) If all nations have a role in the
  prevention of genocide, are there measured used
  to predict when genocide could occur, so that
  nations can develop a plan for heading it off at
  the pass?
• (e.g.) Is genocide only considered purposeful
  death? What about exclusion or segregation?
  Does ethnic conflict predict genocide?