Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

duction What is Economic globalization? Economic globalization is the integration of local, national, and regional economies amalgamating into one cohesive interdependent mega economic entity to

duction What is Economic globalization? Economic globalization is the integration of local, national, and regional economies amalgamating into one cohesive interdependent mega economic entity to facilitate the trading of goods and services. Economic globalization fosters trade and investment agreements between global partners and supports the flow of goods and services enable multiple networks of economies to develop as a result of these established partnerships. It has created access for many countries by opening up the global market and creating opportunities for investment and marketing of products. Economic globalization has provided access to products, such as natural resource and labour established through bilateral agreements between corporations and governments according to Kevin Gallagher in his article \"Economic Globalization and the Environment\". Perceived threats from economic globalization Economic globalization has created both advantages and disadvantages for many countries however, it has also created an imbalance in the world economy where all parties are not benefiting equally from the trade and investment opportunities. As a result of economic globalization, the gap between the global rich and the global poor has been growing for many years with the income gap between the rich and the poor rapidly expanding. The gap is the result of the rich getting richer while the poor get poorer and unable to satisfy their basic need for food, water, and safety. This trend is mostly affecting many in developing countries where large sections of the world population in Africa, Latin America, East and South Asia and parts of Europe are facing poverty and large scale social breakdown. The social breakdown and inequality among the world population can be linked to economic globalization and the negative impact it has created. Globalization has opened up the world's natural resources to rich nations who are able to finance and develop these resources for economic gain. Natural resources are exploited by the rich and transferred to the developed world where it is converted into products that have high economic value and sold to markets achieving enormous profits which are converted into the developed nation's wealth. The developing country rarely benefits from the natural resources and the wealth created from these products. Little if any economic gains are realized from these activities as the wealth created by the resources are never reinvested into the local economy, but often occurs elsewhere. This paper will discuss the impacts of economic globalization on developing countries, the negative effect it has had on human rights issues, and the factors that lead to conflicts between investment companies and the local people, their culture, and the environment. Impact of Globalization Impact on Cultural and Biological Diversity Globalization is having an impact on cultural and biological diversity because the world is starting to lose certain cultures and environments. The Education of Sustainable Development (ESD) is trying to help where globalization has failed. ESD entails a reorienting of education to guide and motivate people to become responsible citizens of the planet. They address the interrelationships among the environment, the economy, and society. They also \"aim at promoting teaching which represents indigenous and traditional knowledge and encourage the use of indigenous languages and eduction. They believe indigenous world views and perspectives on sustainability should be integrated into education programmes at all levels whenever relevant.\" Cultures are being threatened from globalization and were going to lose local knowledge, languages which are repositories of diversity and key resources in understanding the environment and how its used to its best advantages. They foster and promote local cultural specifications, customs and values. Globalization does not take into account that the preservation of cultures is linked to economic development. Biological diversity is the resource upon which families, communities, nations, and future generations depend. \"It is the link between all organisms on earth, binding into an interdependent ecosystem, in which all species have their role.\" Earth's natural assets are made up plants, animals land, water, the atmosphere and humans. The worlds health and livelihood is at risk because of globalization because the certain cultures are using 25% more natural resources than the planet can sustain. This will eventually lead to species, habitats, and communities being put under pressure to survive. \"Biodiversity underpins the health of the planet and has a direct impact on all of our lives.\" Marginalization Globalization has intensified global and national inequality. There is an increased economic and social gap between countries because the rich are becoming richer and the poorer are becoming poorer. In 2012, 1.2 billion people still lived on on less than a dollar a day, and 2.8 billion on less than two. Increased global integration means that poorer countries become more vulnerable to world financial markets. The East Asian Crisis was a direct result of globalization and resulted in in intensifying poverty. The Asian financial crisis was a period of financial crisis that gripped much of East Asia beginning in July of 1997 and raised fears of a worldwide economic meltdown due to financial contagion. Financial Contagion is the \" spread of market disturbances, mostly on the downside from one country to the other.\" This is the process through co-movements in the exchange rates, stock prices, and capital flows. During these types of crisis the poor are the ones that are severely hurt. They are hurt because during the crisis the demand for labor falls, which aids in crop failure, and then prices for essential commodities rise,and then social services are cut. This leads to widespread economic hardship that tears at the fabric of society. There are food riots, which lead to ethnic tensions and protesting. These social stresses effect the poor and create household tension which in turn damages communities. Children start being pulled out of school and put to work, food becomes rationed with in the household and violence leads to the streets. These are all human factors that get marginalized when globalization impacts the poor. The crisis shows that even the strongest developing states are at the mercy of global economic forces that serve the best interest of the dominant capitalist powers. Globalization is an uneven process which is causing world fragmentation. The benefits of the global market accrue to a relatively small proportion of the world's population. The stronger become stronger and the weak become weaker. False Promises In the developing world globalization has not brought the promised economic benefits to the countries that need it most. A growing divide between the haves and the have-nots has left increasing numbers in the Third World in poverty. Poverty reduction has been promised but over the last decade the number of people living in poverty has increased by 100 million. \"This occurred at the same time the total world income increased by an average of 2.5% annually.\" (Globalization and its Discontents) In Africa, false promises have occurred because the high aspirations following colonial independence have been unfilled. The continent has plunged into misery because incomes have fallen and the standard of living has declined. The life expectancy gains have begun to reverse and while the spread of AIDS is on the decline, poverty is at an all time high. African socialism has been abandoned, honest governments have been put in place, budgets have been balanced and inflation has been kept in check, Africa is struggling to attract private investors. Without these investors this country will not have sustainable growth. If globalization has not succeeded in reducing poverty, it will not succeed in ensuring stability. Financial crisis in Asia and Latin America have threatened the economies and the stability of all developing countries. There are always fears of financial contagion spreading around the world and the collapse of one emerging market currency will mean that others will fall. An example of this would be the East Asian Financial Crisis. Globalization and the introduction of a market economy has not produced the promised results in the economies making the transition from communism to capitalism. These countries were told by the west that their new economic system would bring them prosperity but it's brought unprecedented poverty. An example of this would be the contrast between Russia and China. In 1990, China's gross domestic product (GDP) was 60% that of Russia, by the end of the decade the numbers were reversed. While Russia saw an increase in poverty, china saw a major decrease. Western countries have pushed countries to eliminate trade barriers, but kept their own trade barriers, preventing developing countries from exporting their agricultural products and so depriving them of desperately needed export income. Change in the Power Balance On January 20, 1949, President truman took office. In his Inaugural address, this was said: \"We must embark on a bold new program for making the benefits of our scientific advances and industrial progress available for the improvement and growth of underdeveloped areas. The old imperialism exploitation for foreign profit- has no place in our plans. What we envisage is a program of development based on the concepts of democratic fair dealing.\" If only these words have become true for the third world countries. The West has driven the globalization agenda and ensuring that it garners disproportionate share of benefits at the expense of the developing countries. Human Rights Violations \"Indigenous peoples throughout the world are experiencing the full presence of injustice in the form of duplicitous development schemes, poverty, landlessness, dispossession, political and religious oppression, and genocide\" (Lauderdale, 2008, p. 1836). They are often evicted from their lands through the use of force and violence when there is commercial interest in their land or other resources. The destruction and degradation of their land and environment often lead to conflict, forcing Indigenous people to advocate their human rights in attempt to regain control over their lands, resources, and culture. \"Today's call for, and acceptance of, global diversity is limited when it is built within the constraints of modern nation-states, which often view diversity as deviance if it does not conform to modern norms and definitions\" (Lauderdale, 2008, p. 1836). This has led to many multinational corporations choosing to ignore the rights of indigenous peoples and committing various human rights violations around the world. Heads of state, by their \"actions or omissions, may facilitate, or otherwise contribute to a situation in which such violations by a corporation occur\" (McCorquodale & Simons, 2007, p. 599). Many people believe that the \"Canadian courts should be more active in holding Canadian companies accountable for the human rights violations of their affiliates operating abroad\" (Pea, 2014). However, \"Canadian courts have frequently refused to hear human rights cases involving Canadian companies' foreign subsidiaries based on the forum non conveniens doctrine, which dictates the host state is a more appropriate venue than home state\" (Pea, 2014, p. 1). The existing system of allowing corporations to operate as they please not only has a negative effect on Canada's global image but contributes to the inhumane and wasteful treatment of people and resources around the world. The next few pages will take a look at some examples of this type of treatment. In Guatemala: Hudbay Minerals Inc (HMI) \"is a Canadian integrated mining company [based in Manitoba] with operations, development properties and exploration activities across the Americas principally focused on the discovery, production and marketing of base and precious metals\" (hudbayminerals.com, 2012). HMI and two of its subsidiaries are owners of the Fenix Mining Project, an \"open-pit mining operation located in the municipality of El Estor in Guatamala\" (Pea, 2014, p. 8). The three of them are defendants in three separate actions brought forward by members of the Q'eqchi' Mayan community of Lote Ocho (Pea, 2014, p. 8). The Q'eqchi' Mayan community have been evicted from their land not once, not twice, but three times - first in the 1960's when they were removed from the land to make way for \"a new town site to house the mine's workforce,\" but when the mine shut in 1982 due to a declining nickel market, they moved back, only to discover that they were considered squatters when Skye Resources (which became Hudbay Minerals in 2008) purchased the mine in 2004 and had police and military forcibly evict them twice in 2007 (Pea, 2014, p. 9-10). During the second round of evictions involving Fenix security personnel as well as police and military, \"11 women were allegedly gang raped by a group of uniformed mine security personnel while trying to leave their homes\" (Pea, 2014, p. 10). Protests by the community continued until September 27th, 2009, \"Adolfo Ich, a community leader and mining critic, [was trying to peacefully speak with security personnel, but instead was struck in the forearm with a machete before being shot in the head and killed] by the [Chief of Security at the Fenix Mining Project]\" (Pea, 2014, p. 10). On the same day, German Chub, another community member was also shot by the Chief of Security but survived, requiring a three month hospital stay and over 17 months of rehabilitation (Pea, 2014, p. 11). There are three lawsuits being pursued, one by the 11 women \"who are suing HMI for the negligence of its predecessor corporation \"in its direction and supervision of the security personnel who committed the rapes,\" one by Adolfo Ich's widow, who \"asserts that her husband's death resulted from the wrongful actions and omissions of HMI and its subsidiaries\" and one by \"German Chubb, who alleges that HMI and its subsidiaries unlawfully caused his injuries\" (Pea, 2014, p. 11). Canadian courts in the past have denied their jurisdiction to hear similar cases, however, the Ontario Superior Court of Justice has shown that they are at least willing to address some \"issues of international concern such as the violation of human rights by transnational corporations\" by allowing this case to go to trial (Pea, 2014, p. 13). These three lawsuits may provide the necessary means to pursue further human rights violations abroad within Canadian courts in the future. \"In August 2011, Hudbay divested itself of the Fenix project and no longer has any operations in Guatemala\" (hudbayminerals.com, 2012). We feel that they may have pulled out because they did not want to deal with the human rights issues in Guatemala and wanted to save face. In Mauritania: First Quantum Minerals Ltd. is a Vancouver-based \"mining and metals company operating seven mines and developing five projects worldwide\" (first-quantum.com, 2012). In 2011 they were accused of pollution and groundwater contamination as well as labour and consultation issues in Mauritania, North Africa (Saunders, 2014, p.26). First Quantum wound up temporarily suspending operations at their Mauritania mine in 2012 after \"days of worker protests over pay left one person dead\" (globeandmail.com, 2012). It is beyond reproach that protests over working conditions would lead to the death of one of their employees. First Quantum needs to be held accountable for their actions and not take human life for granted. As employers operating overseas, we feel that they should be held to the same standards of safety in their mines abroad as they would be if the mine was operating in Canada. Analysis of factors leading to conflict Lack of effort to understand local culture. Focus is mainly acquisition of resources. All factors that contribute to objection of people in the society are called conflict. Factors that lead to conflict can be illustrated as: Structural factors - persistent factors that have develop into the structures, policies and basics of a culture and may produce the pre-conditions for vicious conflict. Structural factors may include lack of political participation, illegitimate government, social opportunities and lack of equal economic, poor governance, unbalanced access to natural resources. Example: In Guatemala: Hudbay Minerals Inc (HMI) is a Canadian incorporated mining company [located in Manitoba] with development properties, operations, and exploration activities throughout the Americas primarily focused on the production, discovery and marketing of base and expensive metals. (hudbayminerals.com, 2012). HMI and two of its subordinates are vendors of the Fenix Mining Project that is an open-pit mining operation to be found in the city of El Estor in Guatamala (Pea, 2014, p. 8).The three among them are defendants in three diverse actions carried forward through associates of the Q'eqchi' Mayan commune of LoteOcho (Pea, 2014, p. 8). The Q'eqchi' Mayan commune have been ejected from their territory not once or twice, although three times - initially in the 1960's when they were isolated from their land to construct way for a new settlement site to house the workforce of mine however when the mine close in 1982 because of a waning nickel market, they enthused back, only to ascertain that they were measured unlawful resident when Skye Resources (which became Hudbay Minerals in 2008) bought the mine in 2004 and had military and police powerfully expel them twice in 2007 (Pea, 2014, p. 9-10). Throughout the next round of evictions involving Fenix safety workers as well as military and police, \"11 women were purportedly gang raped by a cluster of uniformed mine safety workers whereas trying to leave their residences.\" (Pea, 2014, p. 10). Disputes by the society continued until September 27th, 2009, \"Adolfo Ich, a mining critic and commune leader, [was trying to speak quietly with safety workers, but was struck in the forearm with an axe ahead of being shot in the head and killed] through the [head of Security at the Fenix Mining Project]\" (Pea, 2014, p. 10). On the similar day, German Chub, a different community member was also shot by the head of Security but stay alive, entailing a three month hospital reside and over 17 months of treatment (Pea, 2014, p. 11). There are three lawsuits being practiced, one through the 11 women \"who are litigating HMI for the negligence of its antecedent company \"in its supervision and direction of the safety workers who committed the rapes,\" one by Adolfo Ich's widow, who \"declares that the death of her husband resulted from the unfair omissions and actions of HMI and its subordinates\" and one through \"German Chubb, who asserts that HMI and its subordinates illegitimately caused his harms or injuries\" (Pea, 2014, p. 11). Canadian courts in the past have deprived of their jurisdiction to listen to analogous cases, though; the Ontario Superior Court of Justice has revealed that they are at least agreeable to tackle a few problems of international anxiety such as the destruction of human rights by multinational corporations\" through permitting this case to go to assessment (Pea, 2014, p. 13). These three lawsuits may give the obligatory means to practice supplementary human rights abuses abroad inside Canadian courts in the upcoming time. \"In August 2011, Hudbay deprived itself of the Fenix project and no longer has any processes in Guatemala\" (hudbayminerals.com, 2012). We consider that they may have pulled out for the reason that they did not desire to deal with the issues of human rights in Guatemala and sought to save face. Proximate Factors - factors contributing to weather favorable to aggressive conflict or its advance growth, sometimes actually indicative of a deeper difficulty. Proximate factors may include light weapons proliferation, uncontrolled security sector, destabilize role of nearest countries, human rights violence, and role of diasporas. Triggers - solitary key acts, actions, or their expectancy that will set off or rise vicious conflict. Triggers may include assassination/ arrest / of main leader or political figure, elections, drought, military coup, unexpected fall down of local currency, flood, quick alteration in unemployment, increased scarcity/ price of fundamental commodities, capital escape . Prolonged conflicts also be inclined to create new causes (e.g. war economy, weapons circulation, culture of violence), which facilitate to extend them further. As the major factors causative to conflict and to harmony are recognized, it is significant to recognize that conflicts are multi-causal and multi -dimensional phenomenon - that there is no solitary cause or factor of conflict. (Conflict Analysis) Example In Mauritania: First Quantum Minerals Ltd. is a Vancouver-based \"metals and mining company functioning seven mines and developing five projects global\" (first-quantum.com, 2012). In 2011 they were blamed of pollution and groundwater defect as well as consultation and labor concerns in Mauritania, North Africa (Saunders, 2014, p.26). First Quantum wound up momentarily delaying processes or dealings at their Mauritania mine in 2012 subsequent to days of employee complaints over pay left one person dead\" (globeandmail.com, 2012). It is afar reprove that complaints over working circumstances would cause to the death of one of their workers. First Quantum needs to be held answerable for their activities and not take life of humans for granted. As employers functioning out of the country, we realize that they should be alleged to the equivalent standards of protection in their mines overseas as they would be if the mine was functioning in Canada. Lack of Effort to Understand Local Culture. Focus is mainly on Acquisition of Resources Conflict can be recognized at local, national and international level. Conflicts occur almost in all areas. But due to economic globalization, government of countries especially of developing countries focuses on the national and international conflicts. Every country wants to take benefits of the economic globalization. Countries want to gain benefits from international market. Therefore, countries always make more focus on international conflicts such as economic conflicts. And national conflicts such as conflicts among political leaders, physical geography, and decentralization etc. because national conflicts may create difficulty to handle international conflicts. But there is a lack of understand the lack culture and its needs. Government gives less attention to understand the conflicts of local people such as indigenous people and give less effort to solve their efforts. Rather government gives more attention to make use of national resource so that national income can be increased and government can gain enough money to pay their debts in the international market. For example: The growing global economy has increased its demand for natural resources. Often, these resources are found within indigenous people territories and governments are willing to accept foreign investors into their countries because they rely on the extraction of natural resources to pay foreign debts. Many of these countries are the last frontiers for natural resources such as natural gas, minerals, and other energy sources. That is why indigenous people have faced increasingly negative impacts resulting from economic globalization. And fewer efforts are performed to understand local culture. Government paid more focus on the acquisition of natural resources to gain more international income rather than focus on understanding local culture. Even depletion of resources sometimes cause environmental damage or damage to the atmosphere and this damage create difficulties for the local people. But fewer efforts are performed to understand these issues. What is significant is that the economic costs and the ecological harm grow as countries and corporations mine deeper in mining for resources and use new sophisticated technology and/or in more fragile locations. Mining corporations are making use of using new technologies such as robotic maneuvers and high-strength pipe alloys to drill deeper later than the surface deposits are exhausted. Seafloor mining is a different approach used to manage dilapidated easy-to-reach deposits. (Global Resource Depletion) References Amin, A. (2004, Jun). Regulating Economic Globalisation. Transactions of the Institute of British Geographers, 29(2), 217-233. Retrieved from http://0www.jstor.org.darius.uleth.ca/stable/3804555 Gallagher, K. P. (2009, November). Economic Globalization and the Environment. Annual Review of Environment and Resources, 34, 279-304. doi:10.1146/annurev.environ.33.021407.092325

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management A Practical Introduction

Authors: Angelo Kinicki, Brian Williams

9th Edition

1260075117, 978-1260075113

More Books

Students also viewed these General Management questions

Question

Explain the three types of mergers.

Answered: 1 week ago