Economic Globalization

13.02.2012, E-GK Herr Kampschulte

Jannik Grote, Lena Blome

Definition: Globalization Fundamentally, it is the closer integration of the countries and the peoples of the world, which has been brought about by the enormous reduction of costs of transportation and communication and the breaking down of artificial barriers to the flows of goods, services, capital, knowledge and people across borders. Globalization has been accompanied by the creation of new institutions that have joined with existing once to work across borders. (Joseph Stiglitz) Definition: Economic Globalizazion Economic globalization can be defined as the process by which markets and production in different countries are becoming increasingly interdependent due to the dynamics of trade in goods and services and flows of capital and technology. It is not a new phenomenon but the continuation of developments that have been in train for some considerable time. (European Commission, 1997) Definitions of Poverty Poverty is a condition of prolonged and forced shortage of necessary resources for securing sufficient living standards. (UN Definition) Poverty is if you have less than $ 1 per day. (World Bank) Monetarism reduction of governmental control Privatization and Liberalization of economy No inflation, no deflation Based on steady demand of money Keynesianism Stabilizing of economy by the government Everything is connected Pros: Free changes of goods; access to world markets for everyone lower prices because of increasing competition (supply and demand); Outsourcing as a chance for developing countries? Cons: Cheap-labour work without job security; Higher degree of dependency of the developing countries; jobs are outsourced to developing countries NGO (Non-governmental organizations): e.g.:Brot fr die Welt and Medecins sans frontires providing the people in developing countries with food, medical/technical infrastructure and also controlling whether labour laws are kept Problems: Ghanaian people depend on a specific protein which is in chicken. There was an expanded agricultural branch of chicken production. A Ghanaian farmer need $2,50 for a chicken to live on it. The EU subsidizes chicken production to Ghana and export chicken meat for $1,50 to Ghana. Those rest of chicken which cannot be sold in Europe.

Important organisations in association with globalization WTO (World-Trade-Organization) supervising and liberalizing international trade IMF (International Monetary Fund) secure financial stability, facilitate international trade, promote high employment and sustainable economic growth and reduce poverty e.g. lending money World Bank: supporting developing countries and reducing poverty lend money or providing technical help Critic: support is based on structural adjustment measures e.g. privatization and reduction of trade barriers maybe to strengthen the dependency of the developing countries

Liberalization Reduction or privatization of welfare benefits Changing essential labour laws Privatization of state owned enterprises Breaking down of trade barriers

Privatization Governmental enterprises become privatized Approximates the demands of liberalization

Economic Globalization
13.02.2012, E-GK Herr Kampschulte
Jannik Grote, Lena Blome