Why Do People Oppose Globalization?

Why Do People Oppose Globalization? YaleGlobal. Farok J. Contractor. June 15, 2017

Politicians are reaping gains by wrapping themselves in flags and directing hostility toward globalization. “Humankind is developing an emerging ‘global consciousness’ – a collective sensitivity to noble thoughts as well as to phobias and ignoble protectionism,” explains Farok Contractor, a professor of global management at Rutgers University. Contractor describes how responses to global connections divide societies. One example is the embrace of Valentine’s Day by many consumers in Asia while some religious fanatics in India target foreign practices for eroding cultural traditions. Likewise, voters in rural United States and Britain, areas with few foreigners, fell prey to scaremongering about immigration while the more educated and wealthy in cities may be less threatened by multicultural ideas. Angst over job losses, stagnant wages and changing industries is real, but unscrupulous media and populists manipulate audiences by blaming globalization, trade and immigration rather than automation or the quest for modernization by majorities in many countries. Contractor concludes that “Globalization is a symptom of human desire and ambition leading to ever-increasing connections.” Nations that resist globalization, rather than engaging in thoughtful examination and policymaking, will encounter many negative consequences. [Note: contains copyrighted material].

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The Payoff to America from Globalization: A Fresh Look with a Focus on Costs to Workers

The Payoff to America from Globalization: A Fresh Look with a Focus on Costs to Workers. Peterson Institute for International Economics. Policy Brief, 17-16. Gary Clyde Hufbauer and Zhiyao (Lucy) Lu. May 2017

Hufbauer and Lu, updating a landmark PIIE study made in 2005, calculate the payoff to the United States from trade expansion from 1950 to 2016 at $2.1 trillion. The payoff has stemmed from trade expansion resulting from policy liberalization and improved transportation and communications technology. The sum translates into an increase of $7,014 in GDP per capita and $18,131 in GDP per household. The potential gains from future policy liberalization could be as large as $540 billion for the United States by the year 2025, or an increase of $1,670 in GDP per capita and $4,400 in GDP per household. On the other hand, 156,250 manufacturing sector jobs were lost annually over the past 13 years, representing less than a percent of the number of people involuntary separated from their jobs each year. A more generous unemployment insurance program and expanded tax credits would help displaced workers adjust, the authors argue, while preserving the large gains resulting from trade expansion. [Note: contains copyrighted material].

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Europe Needs to Take Heed and Reform in Wake of Italy, Austria Outcomes

Europe Needs to Take Heed and Reform in Wake of Italy, Austria Outcomes. Brookings Institution. Theodore Pelagidis. December 6, 2016

The “no vote” victory rejecting Italy’s constitutional referendum is widely interpreted as a clear win for anti-globalization populist forces in Europe. Even the defeat of Austria’s anti-immigrant populist Norbert Hofer last Sunday in the presidential elections, with just a 53-47 percentage, is seen in the same vein, as the extreme-right candidate’s loss was slim. Forces from the political edges are gaining ground in the post-truth era and many pundits think the path of global integration has stalled. The author sees it differently. The schism of societies currently underway, even in the prosperous western democracies, is more of a globalization victory than a defeat. [Note: contains copyrighted material].

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Seizing Opportunity in a Post-TPP World

Seizing Opportunity in a Post-TPP World. YaleGlobal, Stephen S. Roach. December 1, 2016.

Trade is the glue for globalization and without it other connections can subside. But US voters rejected a US leadership role in global trade deals and elected billionaire Donald Trump who has already signaled intent to have the United States to withdraw from the Trans-Pacific Partnership with 11 other nations. Analysts suggest that China could step into the US role, but “The baton of global leadership rarely passes in such a seamless fashion,” cautions Yale professor Stephen S. Roach. The United States has global responsibilities not easily dismissed, and China confronts multiple risks including high debt and other economic imbalances. Roach proposes that Trump could pursue another huge opportunity by concluding the US-China Bilateral Investment Treaty, under negotiation since 2008. China is the third biggest US export market. Roach concludes, “For a growth-starved US economy, there could be no better way of tapping into what promises to be the world’s greatest market expansion in the years ahead.” [Note: contains copyrighted material].

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Globalization Helps Preserve Endangered Languages

Globalization Helps Preserve Endangered Languages. YaleGlobal. Mark Turin. December 3, 2013.

Tools of globalization like the internet, so often blamed for homogenizing the world, are also encouraging diverse lingual communities to connect and even revitalize their endangered languages. “Linguists estimate that of the world’s remaining 6,500 languages, up to half will no longer be in regular use by the end of this century,” notes Mark Turin, linguist and anthropologist. Many are indigenous languages, which “function as vehicles for the transmission of cultural traditions, environmental understandings and knowledge about medicinal plants, all at risk when elders die and livelihoods are disrupted.” Turin describes linguists’ efforts to compile archives of digitized audio, visual and other documents to ensure that these languages and the cultures they reflect do not simply vanish, their contributions going unforgotten. Globalization is often more process than intent, and the real force behind cultural homogenization, Turin maintains, is unbending beliefs reinforced by monolingualism. [Note: contains copyrighted material].

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Governance Falls Behind Globalization

Governance Falls Behind Globalization. YaleGlobal. Ernesto Zedillo. December 3, 2012.

Many in the world point to the need for mechanisms to monitor and control globalization, particularly after a decade when debt crises in one country spread quickly around the globe. Yet as economic interdependence continues to build, governance is not keeping pace. Ernesto Zedillo reflects on globalization and its governance over the past decade. Developed countries have balked at sharing power with emerging economies. Likewise, nations do not want to disperse their power, and leaders resist pressures from domestic special interests. Attempts to reform international organizations, ensuring fair representation and sound procedures to address pending crises, have failed miserably. If anything, the gap between globalization and governance has only widened. The warning signs are there for numerous global crises that can only be resolved with cooperation. Zedillo urges political leaders to prepare their societies for the governance required to tackle the global crises. [Note: contains copyrighted material].

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Inequality Breeds Resistance to Globalization.

Inequality Breeds Resistance to Globalization. YaleGlobal. Pranab Bardhan. November 27, 2012.

Many critics point to globalization, its swirling influences over worldwide connections through trade, technology and communications, as a culprit behind growing inequality. Yet the author points out that the connections deliver both opportunities and challenges. Multiple forces contribute to entrenched economic inequality in so many countries, that limits opportunity, and Bardhan contends that countries can control many of these with development of education, infrastructure and labor-market conditions. Economic rent is the amount required by a property or business owner to proceed with a specific purpose; some sectors of the economy benefit from new development and others seek to freeze development to deter competitors. Closing markets doesn’t curtail special interests within a nation who yearn for more. Technological development, composition of exports, government subsidies and regulation, as well as skewed pricing for use of natural resources also contribute to determining globalization’s winners and losers. [Note: contains copyrighted material].

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