Who Are the Winners and Who Are the Losers in the Globalisation Process?

Who are the winners and who are the losers in the globalisation process?

Globalisation is a process that is going on around us no matter which part of the world you may reside, in one way or another you will be experiencing globalisation in one of its many forms. This practise brings with it ones who may benefit from the methods and in turn if one side is benefitting the other will be losing out. I will go on to identify who these players are and what positions they hold in globalisation. We have the poor across the globe along with the under-developed countries; these primarily are seen to be the losers of the process. One of the main reasons for this is the creation of Free Trade Zones; which seem to have a wide range of effects internationally from utilising inhumane practises like child labour, terrible working conditions to the creation of huge profits for multinational corporations. The effects can be experienced around the globe for winners and losers with the unequal distribution of wealth down to the loss of jobs in developed countries. Globalisation is a phrase that is currently developed into the most frequently used words by many ranging from multinational corporations, world leaders to all whom maybe involved. When problems arise across the globe from financial through to cultural the blame often is directed towards globalisation. On various occasions people have blamed globalisation of causing more damage than good, even going on to consider humankind to be better off without it. In a speech given by Anna Lindh at the Helsinki conference she said “Firstly, economic globalisation has brought prosperity and development to many countries, but also financial crises to Asia, Latin America and Russia, and increasing poverty and marginalisation. During the last 30 years, fifteen developing countries (with a population of 1,6 billion people) have succeeded to reduce poverty by half. Still, more than a billion people have to survive on less than a dollar a day. The world is richer than ever, and the gaps between rich and poor are wider” http://www.sweden.gov.se/sb/d/1111
As Anna has said there is a major separation in all whom are involved in globalisation with the creation of winners and losers. While finanicial globalisation is seen to increase a nations economic development it also goes on the produce many troubles for others, in particular the poor who do not have the resources to even cover essential indiviual needs. Many reasons are given by the mainstream for them to be the losers of the process.
When forming a judgment on this issue it is essential to have an understanding and effective expalnation of the term `globalisation’. A good defintion is given by De La Dehesa on globalisation, “a dynamic process of liberalization, openness, and international integration across a wide range of markets, from labour to goods and from services to capital and technology” (DEHESA, 1996 P1)
From this we can understand that globalisation is giving countries the opportunity to open its borders and permit them to have open relations with many different societies along with consenting to other nation’s commodities and customs to come across borders. This process is seen to concern almost every country across the globe and the leading participant is currently the United States of America. The USA is a state that wields huge amounts of international authority and clout along with being viewed as a major winner of the process of globalisation and is therefore a symbol to the entire world of western culture. Even though the economic aspect of globalisation is a key part in the whole process, this topical issue has many sides. Cultures around the world are absorbed into one another along with political affairs and military relationships. When looking into the economic part of this process its largely to do with trade, the independence associated with trade, the ability to invest in overseas industry alongside setting up companies in foreign countries for reasons ranging from lower manufacturing costs to sourcing accessible markets. The freedom and movement of capital, services and produce are also all involved in a major way. Over time the workings of globalisation has benefitted the west as a whole to the detriment of others.
Principally the grounds why the deprived people of the world are seen to be the losers of globalisation is due to the creation of ‘Free Trade Zones’ and the different actions of the leaders of globalisation in turn having an effect on the poor and third world countries in many ways. Free trade zones are particular parts of a nation in which the leaders have removed or maybe even eased trade barriers. We can observe certain taxes and quotas being removed or even lowered in the anticipation of drawing in new trade and foreign investment. Also certain governments have frequently given financial support covering the first expenditure of factory start-ups. To further attract more trade they may relax environmental defences and regulations concerning neglect and the handling of the workforce. Many zones have been established across third world countries most notably in China and India. These countries have caught the eyes of the manufacturers as they come with such a low level of legal protection making it possible for companies to constantly offer low wages alongside not feeling the constraint of providing safe and bearable working conditions.
“When those are in place, the new systems of communication, information processing, and control allow profitable production to be carried out virtually anywhere: no country is so remote that investors will be dissuaded by location alone. Because that is so, modern production methods can be introduced into countries that previously were by-passed by economical development.” (MANDLE, 2003 P9.)
Certain countries have been forced into accepting demands put on them by private corporations, as the amount of Multi-National Corporations trading is on the increase the power and control third world governments possess has decreased. As a result governments have completely disregarded human rights laws and pay laws anticipation of creating further overseas investors. “As a whole, the volume of world trade has increased sixteen fold since 1950 while world GDP has only increased five fold. This trend toward larger openness has been helped by the lowering of tariffs and other barriers to trade.” (DEHESA, 1996 P4)
The grounds to how and why Free Trade Zones create the poor of the world along with third world countries to become the losers of globalisation, can be viewed when looking into the practises that are in place. The foreign corporations are allowed take benefit from the local inhabitants and have them work in appalling environments with no real threat of official reprimands for their cruel activities. The International Trade Union Confederation (ITUC) has looked into Free Trade Zones and has found many issues with the methods they use to operate. Employees in Free Trade Zones do not currently have the right to create a workforce union that may represent them and look after their interests. If we take a look at China for example, the only union that can exist under the law in China is the All China Federation of Trade Unions (ACFTU). If a member of staff finds an opportunity and nerve to begin a union, owners are likely to lay them off, with total disregard of laws that make it unlawful to sack a member of staff if they wish to voice their concerns through a union or even relocate staff to other departments to interrupt any possible union formation. “Workers are not free to form or join trade unions of their choice. Only the All China Federation of Trade Unions (ACFTU) is recognised in law.” http://www.ituc-csi.org/IMG/pdf/Chinal_Final-2.pdf In addition to this across Free Trade Zones employers have even gone on to bully, terrorise hit and go on to kill some trade unionist. Another example of a foul practises being carried out, where individuals have experienced major difficulties due to the influences of globalisation is the example of Colombia. The workforce across Colombia has blamed Coke-Cola associates of appointing individuals to murder union leaders. Along with these devious practises which go on un-punished, bogus criminal charges have been brought forward against unprotected unionists to further discontinue any union actions. “On the morning of December 5, 1996, two members of a paramilitary gang drove a motorcycle to the Carepa Coca-Cola bottling plant in northern Colombia. They fired 10 shots at worker and union activist Isidro Segundo Gil, killing him. Luis Adolso Cardona, a fellow worker, witnessed the assassination. "I was working and I heard the gun shots and then I saw Isidro Gil falling," he said in a recent interview. "I ran, but when I got there Isidro was already dead." http://www.thirdworldtraveler.com/Transnationalcorps/StopKillerCokeColombia.html
Utilising women as a workforce is widely used around the world, for the reason that they commonly turn out to be a more compliant labour force. Across India namely in the Santacruz Electronics Export Processing Zones 90% of the workforce are female who are usually young and also reserved to create a union. This blatant form of sexual discrimination practise, has been accepted due to the fast pace at which the whole process operates.
The Transnational Institute has found that almost also businesses that have plants across third world countries are responsible of employing child labour, practises that involve ethnic and racial discrimination, along with anti union agendas and the abuse of maximum work hours and pay. An illustration of this can be seen with the “New Balance” trainers company which presently has factories operating in China with people operating there up to 16 hours a day 7 days a week on a payment of only 3 cents per hour. This company is owned by one individual who resides in the USA whom has wealth beyond 1.6 billion dollars.
The Human Rights Watch Organisation has found that India currently has approximately one billion child workers. These kids are commonly employed in crop growing, faming, manufacturing and servicing sectors. While the governments mandate to have them set free from this inhumane practise is in place this does not mean it has been practised, as several dishonest state officials believe the problem doesn’t exist. Here both the basic and civil rights of these children have been infringed. This practise should have come to an end as it is even acknowledged in the Indian constitution,
"No child below the age of fourteen years shall be employed to work in any factory or mine or employed in any hazardous employment.” http://lawmin.nic.in/coi/coiason29july08.pdf
Regardless of all the laws in place and with globalisation on the increase, child labour is ongoing as the government overlooks the matter just so they may acquire more capital. The influences of the process of globalisation has been that deep on certain governments that they have ended up denying their people the fundamentals of basic human rights turning these citizens into victims. Going on from this, the poor people of many developed countries may be viewed as losers of the process of globalisation that is going on around the world as it has in turn created many to be jobless. Citizens of many nations who tended to carry out un-skilled jobs now find themselves not having the ability to compete with cheap foreign labour. Along with discovering previous positions relocated to other under-developed countries. This procedure of manufacturing in third world countries has witnessed the decline in the demand for low specialty jobs in developed nations, along with the decrease in earnings in these roles due to the increase of cheap labour. “Redistribution of income from workers in the west to workers in low-income countries has come about both through capital leaving high-cost sites in north America and western Europe for low-cost greenfield sites in Asia or eastern Europe, and through labour coming in the other direction. The rise in immigration has helped to keep downward pressure on wages in the west. Within western economies, labour 's weak bargaining position has meant capital has been able to increase its share of the cake”. http://www.guardian.co.uk/business/2005/nov/07/politics.globalisation?INTCMP=SRCH
The ones who experience the suffering normally tend not to complain fearful of losing their positions for ever. Even businesses across many countries have been forced to relocate in response to globalization and the effects it has had on local industry. Companies that produced various items from furniture, computer electronic to vehicle parts manufacturers have closed their bases for good just to go set up elsewhere. Thus creating many to become jobless and saving business costs with cheaper labour costs. Countries now seem to import products and services it actually produced itself at one time.
The process of globalisation has seen to increase the wealth and create more income for the rich and the poor people across the world. A major part of financial growth is the dealings that go on around worldwide trade. With the presences of liberated markets the prospect of further trade is possible and highly likely that business will expand. Due to the growth in exports across many developing countries we can witness an expansion in their growth along with a reduction in their poverty situation. Consumers find themselves having improved access to extra commodities at lower prices due to the openness of trade around the world. Citizens have also experienced an improvement in their living conditions thus allowing them to survive longer. “Export led growth was the centrepiece of the industrial policy that enriched much of Asia and left millions of people there far better off. Because of globalisation many people in the world now live longer than before and their standard of living is far better.” (STIGLITZ, 2002). With the highly developed forms of communication we have today such as satellite connections and internet just assist the whole process of globalisation making it far easier to connect and trade with people anywhere in the world. These innovative forms of communication acquaint individuals from developing nations with news from around the world along with making it easier for them to acquire knowledge. The role of Multinational corporations in this process has been vital; as they have successfully conveyed many expertises, along with highly developed technology and beneficial products that have been successful in developed nations and transferred them to developing states. The wellbeing of many has seen an improvement with the transfer of medicine and knowledge “Especially on the opportunities for trade and increased access to markets and technology, globalisation has brought better health” (STIGLITZ, 2002).
Promoters of globalisation move forward with the outlook of better prospects for all, with the understanding that poorer nations will ultimately ease the suffering of their people and if this process is not adopted many will stay poor and below the poverty line. The International Monetary Fund is an international organization that plays a major part in the globalization process, as it carries out supervisory works relating to financial business between different nations. The work done by IMF can include aiding with international trade/business between many countries, taking control of the exchange rates, balance of payments along with assisting countries with economic development. All this work is done with the interests of the IMF at hand. The IMF may help many nations with its structural adjustment programs. However, whether the said countries benefits in the long run is yet to be seen, as the true benefactors are always the major players that are turning the cogs of Globalisation.
“Global markets offer greater opportunity for people to tap into more and larger markets around the world. It means that they can have access to more capital flows, technology, cheaper imports, and larger export markets.” http://www.imf.org/external/np/exr/ib/2000/041200to.htm#II
Supporters also indicate the fact that globalisation makes available work prospects for people across developing countries. As the cost of labour is currently low in developing countries compared to that of developed nations many Multinational Corporations have transferred their production business to these nations. This shift in location hugely benefits the MNCs as their costs become much lower than before and with the ability of access to transnational finance they can grow their profits at an extraordinary rate. Wages given by MNCs can be seen to be higher than that of the host nation local enterprises; so many locals rather work with MNCs. Alongside profiting from improvement of skills these people can gain knowledge and money. As these MNCs have become global entities it is only their interests and agenda that they will want to pursue, and will carry out what ever actions it may take even to the determent of a nation just for their own interests. “The movement of corporations into a global situation means that national interests, whether of home or host state, are irrelevant to their operations. Because they span national borders, many mne’s are less concerned with advancing national goals than with pursuing objectives internal to the firm- principally growth, profits proprietary technology, strategic alliances, return on investment, and market power.” (DINE, 2000 P154)
The poor across the world from developed to under developed nations can be perceived to be the true losers of globalisation. This process has also increased the gap amongst the rich and the poor even going on to making them worse off, bringing an adverse effect on the poor’s wellbeing and existence. The wealthy and multinational corporations have benefitted vastly by taking advantage of the poor, adding to their wealth and power and not providing true recognition to the unfortunate for their efforts.

Bibliography;
1) http://www.sweden.gov.se/sb/d/1111 Anna Lindh
2) GUILLERMO, DE LA DEHESA. Winners and Losers in Globalization. USA: Blackwell Publishing, 2006. Print. P1
3) JAY R, MANDLE. Globalization and the Poor. London: Cambridge University Press, 2003. Print.P9
4) GUILLERMO, DE LA DEHESA. Winners and Losers in Globalization. USA: Blackwell Publishing, 2006. Print. P4
5) http://www.ituc-csi.org/IMG/pdf/Chinal_Final-2.pdf
6) http://www.thirdworldtraveler.com/Transnational_corps/Stop_Killer_Coke_Colombia.html Madeline Baran
7) http://lawmin.nic.in/coi/coiason29july08.pdf Government of India constitution.article24 p13
8) http://www.guardian.co.uk/business/2005/nov/07/politics.globalisation?INTCMP=SRCH
9) Stiglitz, E.J.(2002).Globalisation and its discontents. Great Britain: Penguin Press P4
10) Stiglitz, E.J.(2002).Globalisation and its discontents. Great Britain: Penguin Press P214
11) IMF. (2002). Globalization: Threat or opportunity? www.imf.org/external/np/exr/ib
12) JANET, DINE. (2000) The Governance of corporate groups. Cambridge university press P154

Bibliography: 3) JAY R, MANDLE. Globalization and the Poor. London: Cambridge University Press, 2003. Print.P9 4) GUILLERMO, DE LA DEHESA 9) Stiglitz, E.J.(2002).Globalisation and its discontents. Great Britain: Penguin Press P4 10) Stiglitz, E.J.(2002).Globalisation and its discontents 11) IMF. (2002). Globalization: Threat or opportunity? www.imf.org/external/np/exr/ib 12) JANET, DINE