Blog jest częścią NAWIGATORA do mojej książki Wędrujący świat www.wedrujacyswiat.pl. Jej Czytelnicy mogą tutaj kontynuować frapującą i nigdy niekończącą się debatę na temat światowej społeczności, globalnej gospodarki i ludzkich losów, a także naszego miejsca i własnych perspektyw w tym wędrującym świecie.
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Blog is a part of NAVIGATOR to my book Truth, Errors and Lies. Politics and Economics in a Volatile World www.volatileworld.net. The readers can continue here the fascinating, never-ending debate about the world’s society, global economy and human fate. It inspires one to reflect also on one’s own place in the world on the move and one’s own prospects. In this way the user can exchange ideas with the author and other interested readers.
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(1521.) We can observe the influence of globalization on consumption and investment. The amount of money we have can be used for buying new goods or investing them, for example in bank or on Stock Exchange. As “Truth, Errors, and Lies” explains “What is designated for consumption cannot be designated at the same time for accumulation(investment), and vice versa.” Yet, in either way it helps the economy to expand and actually, I think only keeping the money for a long period of time is basically something that stops it. Fortunately, it is not very typical to do so. Most people when they get extra money, they put it into the economy in a form of spending the money, so the extra demand let the economy to grow. There are also people who would rather invest the extra money. If it is to be done in bank in a way of funds, then the bank has more money to make its operations. The same is with a Stock Exchange, thanks to the globalization; we have more options in what exactly we want to invest.
The globalization gives us more choices, more options; however, we have to see how it affects economic development of one, especially poorer country. It is likely that if we have extra money we could spend it by importing goods or even just going to another country for example, for vacation and then over there leave our savings on different kinds of goods and services. Then the money goes for the economic development of this country instead of ours.
Let’s look at the impact of globalization on the financial market too. Investors are satisfied, because they can seek for different kinds of companies all around the word to invest in them. They do not have to limit themselves just to the country in which they live. However, because of interdependence due to globalization, the investors have to work harder in case of diversification. Some markets form different countries are very connected, if not depended on others. So the investors have to be careful while creating their investment portfolio if they want to get rid of or at least minimize systemic risk connections in different securities. To be secured that the financial crisis will not affect all of their investments.
On the other hand currency SWOPs are an advantage here. If the Polish person wants to build a factory in let say China, and the China’s banks doesn’t know him, so they will propose a very high interest rate. He can avoid the high interest rates by “swoping” with another person from China, who wants to build a factory in Poland and has the same problem. They both will pay lower interest rates thanks to that.
(1520.) Future of Sustainability.
Nowadays one of the most important topics being discussed within borders of many countries is the problem of raising negative impact of human activity on an environment as a result of intensive exploitation of earth’s resources – both organic and non-organic. The issue became even more important with the huge increase in human population, especially driven by emerging markets. OECD estimates that in 2020 the word population will raise to 7, 7 billion people while in 2050 the amount will amount 9,1 billion people. From that reason more and more politicians, economist and entrepreneurs started to ask the question “what should be done and who should do it in order to save the environment for future generations and simultaneously keep up with the demand for scarce resources?”
The debate about the possible solutions almost always mentions the reduction in carbon dioxide emission. According to US Energy Information Administration world marketed energy consumption increases by 49% from 2007 to 2035. Even though renewable fuels are predicted to rise, fossil fuels still are expected to supply much of the energy worldwide. Taking into consideration before mentioned digits and the fact that most energy comes from burning fossil fuels It means that a disastrous impact on our earth in unquestionable.
In order to change this bleak outlook there must be a close cooperation between private and public sector. Here I strongly agree with you Professor that the remedy for the situation would be a “public private partnership”. However, recently we could observe that there are formulated rather ‘blind partnerships’ which mainly downs to imposition of various taxes on businesses. They focus on effects and don’t want to see the causes of the problem. I believe that imposition of energy taxes or emission taxes can force companies in the short term to act but in the long term can also reduce economic output and employment. Additionally, it could not serve as a motivator for implementation of new technologies, especially that some companies pass their costs on consumers.
The solution could be found in changing short-term attitudes into long term vision of governments as well as businesses toward sustainability. It means that private sector should get government incentives in order to eliminate the source of the problem not the aftermath of the disease which in this case is carbon emission. The guidelines for the issues are included in a work of Walter Stahel. This Swiss architect discovered that roughly ¾ of all industrial energy consumption is associated with the extraction and/or production of basic materials (e.g. wood, steel, and glass) while the remaining ¼ is used to transform these materials into finished products. Conversely, he noticed that the opposite is true to labor. One unit of manpower is used to extract raw materials while about three times more manpower is used to convert basic materials into finished goods. His work sent to the world a clear message that it is less wasteful and more cost effective to reuse, repair, remanufacture or recycle existing products (which facilitates job creation and profit maximization) then to manufacture new products from virgin materials and extremely pollute our environment (Stahel called it ‘close loop economy’). He also suggested that this can be achieved with turning products into services what would allow manufacturers to have a return on their investments (raw materials) locked in finished products. This approach has been already implemented by some worldwide companies. Producer of tires Michelin sells ‘performance of tires rather than tires in itself ’. Customers are paying for miles driven with Michelin tires and after the usage they return tires to producer. On the producer’s site he is saving a lot of money as he does not have to buy materials for new tires and on the environmental site no carbon is emitted as a result of burning fossil fuels.
Unfortunately the process of changing economy from ‘linear’ to ‘close loop’ is costly and requires huge investments in technologies. This is why the responsibility to overcome these barriers lies in hands of governments and financial market sectors. Both of them should provide businesses with subsidies and access to capital in order to encourage implementation of long-term approach of making money in a sustainable way.
(1519.) I’m going to be moving the topic of globalization and its effect on the people of Kuwait and the Kuwaiti business.
Kuwait has gained it independence in 1961, since that time Kuwait was pressured with disputes, especially with Iraq, that lead to Iraq’s invasion of Kuwait in 1990, which lead to the burst of the Gulf war. After the war Kuwait’s main area of focus while rebuilding was on reconstructing Kuwait’s oil industry and its infrastructure.
Kuwait has a relatively small population, although it has a large customer base for foreign goods, yet the flow of these goods is heavily controlled by the government.
Globalization in Kuwait is mainly a situation with businesses and people’s demands on goods and services, where as the access to that is limited by the government.
With the people its mainly related to family values and the “Control” of globalization towards the people’s family values.
On the 6th of January 2010 the Kuwait Times news paper, published that, Kuwait was to host a globalization conference, “Head of Social Development at the Ministry of Social Affairs and Labor Shaikha Al-Adwani said,
that the conference’s goals are to present positive examples of family and social development projects in the Gulf region where globalization was a contributing factor.
She remarked that another goal is to encourage more efforts by social, cultural, and economic institutions to support family development initiatives, as well as to suggest mechanisms to adjust to and deal with globalization and expansion and boom in inter-connectivity and communications through the latest technologies available today.”
Having such a highly placed official rest such emphasis on this topic really shows how the people are trying to welcome globalization, yet in a controlled and reasoned fashion.
The other Aspect of globalization in Kuwait that I’m going to convey about will be the barriers placed by government that prevent globalization towards businesses in Kuwait.
The barriers come in the form that, there are laws that forbid overseas organizations from creating their “single-identity” presence in the region, the country is also not peculiar to recognize or even legalize franchise connections, but there has been a solution to this, it discriminates globalization but promotes advantage to the locals (Kuwaitis).
Their advantage comes in the form, that if a retail-chain would like to make its presence in the market, it would have to do so through a joint venture or a partnership with a local corporation. In those cases a share of equity at the level of 51% must be in control of a Kuwaiti national.
There is a touch of globalization presence in Kuwait, but its in-flow is highly controlled, in my opinion Kuwait is far from having a large effect taken from globalization.
(1518.) I found that you describe many things as “uncertain” in your book. Many of the systems, processes, and solutions you present are, as you said simply hard to accomplish. I did not count the pages, but the chapter “The Uncertain Future,” is definitely one of the longest, if not the longest chapters in your book. Supposing there is human life on a different planet, this made me wonder what I would say to an adult alien who came over from another planet and simply asked me “ so what is going on, on your planet?” I think I would formulate my answer somewhere along these lines: First of all, we (and in this case him), came from the whole idea of Big Bang, or did we? The Large Hadron Collider located outside Geneva may actually prove this is not true after all. According to science and Darwinism, homo arrived about 2.6 million years ago (out of which we have only been somewhat efficient for the last couple thousand) and homo sapiens about 250,000 years ago. That is if you are not one of the 2-3 billion Christians out of the 6.5 billion (estimates) of the earth’s population who believe otherwise. Even though the earth is tiny compared to the universe, there is a lot going on.
Separated regions with different values, cultures, incomes, and priorities live on this tiny place. Each of this regions is controlled, one way or another. China is getting more powerful than ever, terrorists are inhabiting the middle east, money crises are striking all over the surface, we are worried that if we continue this consumption-based lifestyle we will not have a place to live soon, and on top of that we are trying to be globalized. People are saying that life is not fair, and it is true. We have people buying islands and people starving.
Even though we have a very rich history, we are still struggling to make things work. Although they have been working better than ever, the technology and innovation is moving so fast that trade and business in general has become easy making it seem like doing anything on the global scale is not only possible, but within reach. We have become very intellectual, our knowledge-based economy is almost demanding us to invent, whereas it is often enough to imitate. The world we live in now is fast and twisted. We have sophisticated names for everything, such as GDP for measuring the state of a nation’s economy, while we are seeing the last turtle (from 250,000 of them)from the Galapagos archipelago die. In the world today, we can use the same saying for health and democracy. “We do not miss it, until it is gone.”
(1517.) Do the five factors of long-lasting development, identified by the author of “Truth, Errors and Lies” take place in contemporary Poland?
For the purpose of this text I assume that the term “contemporary Poland” refers to Poland after 1989, when political economical and social transformation took place.
1) Technological progress.
After 1989 occurred the process of opening to the world and its technological achievement. This period promotes scientific exchanges and studies regarding any progress. Foreign companies investing in Poland contributed to the growth of technological progress through bringing and implementing modern technologies. This has forced the Polish companies to modernize the production and to apply latest technologies.
2) The ascendancy of critical thinking and innovation over dogmatism in culture and the economy.
The change of political system, which took place after 1989 caused the opening to scientific thinking, views and world-appearing ideas especially in the sphere of culture and economy. This new situation forced the society of culture and economy to catch up with global innovations in these fields and forced them to perform a critical assessment of existing situation. The exchange and confronting of thought and views causes the criticism in relation to own thoughts and opinions and extorts the innovativeness that is, modernization.
3) Economic awareness and an ability to organize the expansion of production and exchange.
Polish economy is modern nowadays and it arisen using the latest economical knowledge. Economical knowledge must be constantly applied so the capabilities of economy would be taken of a full advantage. That is connected with the ability of organizing the production and exchange and with the ability to organize expansion – expansion of products and services beyond the boundaries of country. We can take as an example motorization industry which was built from scratch after 1989 and nowadays it has it has the largest share of the value in Polish Export.
4) Political will on the part of the rulers to carry our essential institutional reforms that set human energy and entrepreneurship free and directed them towards creativity.
Poland performed profound political, economical and political reforms when there was transformation of the regime from socialism to capitalism. In economic sphere this meant the departure from socialist economy to market economy. Currently Poland created legal frames and institutions necessary for market economy to function. Poland belongs to international organizations together with other countries which have the same economies. According to the political events, which took place after 1989 and still take place it seems that it is the will of the people to maintain the same direction of changes.
5) Openness to external contacts, making possible a broader exchange not only of goods, but also of knowledge, information, and culture.
The change of political system, which took place after 1989 cause the country, its instructions and its citizens to open to contacts with the whole world. The propagation of internet access, the lack of censorship, possession of passports and Polish accession to the European Union enable making contacts with the outside world: the exchange of students, the possibility of studying abroad and migration of foreign students support the exchange of information, views I knowledge in all branches.
(1516.) I want to address the issue you raised regarding having the global currency. As you and Professor Robert Mundell have made clear, you believe that the global currency would be an effective measure to undertake. Reading this got me interested, since the currency seems to be one of the biggest problems with certain European countries right now. Portugal, Spain, Italy, Ireland, but especially Greece are perhaps now starting to regret going into the Eurozone. When these countries first got into trouble, under the leadership of Jean-Claude Trichet, the president of E.C.B- the bank started preaching austerity as being the magical ingredient and should be used all over the world. This had in mind to boost confidence of the public and most importantly, cut spending. Austerity was the exchange for the emergency loans offered to nations in crisis.
As of right now, the confidence has gone down, and it does not look like Greece is making its way out of the debt it has dug itself into. What is more, things are looking even worse. Not only Germany is not very eager to help anymore, but one member of the governing council suggested that even a small restructuring of the Greek bonds would make the E.C.B. stop accepting the bonds as collateral.
As the E.C.B. is getting closer to pulling the plug on the Greek banking system, being in the European Union is no longer the safe spot. As you said, it was the right and long ranged action, the thing which went wrong was to allow the transatlantic exchange rates to be shaped under the sway of neoliberal ideology.
I think a global currency would be a good thing for the future. There are too many complications with the plethora of currencies we have in the world today. Also, European and Asian countries are getting tired of having to exchange their good in US dollars, with the exchange rate constantly fluctuating and leaving them at risk. We know that nobody thought of money, it just came to being, it was something universal. Even though money was not the same everywhere, it had the same purpose. Of course for different reasons this change is still far away from possible, but a global currency would make things much easier. You state that globalization is an on-going process, but not an unending one. From what I have seen, I think that reaching the point of a common currency would perhaps mean being extremely close to the end.
(1515.) Economic globalization has both positive and negative inherently dual effect, this is a fact. The positive impact of economic globalization, the most important can be summarized as:
1, the economic globalization of information technology to greatly shorten the distance, almost at the origin between the “natural” boundaries of the geographical distance competition has lost its meaning, then all over the world are potential competitors to each other, fight each other is becoming shortage of working capital investment and the corresponding positions, the latter two to the nation-state through the tax and social welfare state policies can be achieved. That is, economic globalization, some countries have become more competitive, creativity and innovation, so that the country can get rich.
2, the modern information communication technologies and complex computer programs to help people eliminate the time difference in different capital markets. In the cross-border production networks, the time of globalization is emerging. “Time Competition” on the ability to learn through satellite communications can be instant what is happening around the world, from the Internet can get a lot of information and valuable knowledge, therefore, goods, services, capital, ideas and information flow more freely than in the past and fast, which gives great benefits to people of all countries
3, globalization means that new economic growth, although growth in this period, the risk exists, but the developed and developing countries in increasing national wealth, are the beneficiaries of globalization.
4, millions of people globalization has opened up unexpected opportunities of life, including the former so-called developing countries into account. The world had never before have so many people so much as today’s choice. As the international division of labor around the world, which makes each nation and nation-states are in economic and technical progress been a chance they deserve.
(1514.) In the chapter of your book “The World As It Is” you talk about the reflection of average incomes and the enormous gap between countries. If we go back five centuries ago like mentioned in the book Africa and America had similar miserable living conditions but now if we were to compare the standard of living it will be a huge gap between the two countries. For example 3 million of US citizens have a annual income of $700,000 compared to Congo were 650,000 people have an average income of about $140 dollars. Taking the fact of 4 days in the United States would be a whole lifetime in Congo is for me extremely shocking and showing the real difference of the standard of living that exists in parts of the world. As mentioned in the book that the average salary in the US is 20 times higher than in Africa but just five centuries ago they were at the same position is totally unbelievable.
There was a great comparison mentioned in the book that there’s two sides of the coin stagnation and development some are stuck in place while others burst forward with substantial growth and strength. Not just looking at salaries was a huge shock but also taking into consideration the average life expectancy is much lower in undeveloped countries. In a lot of poor countries people are not even able to fight simple things like disease and able to afford vaccines to cure or to treat themselves. While in countries like in US the average American is wasting huge amounts of money on things he doesn’t even need. Rightfully mentioned only a few got rich are rich and getting richer. But looking back at the poor the poor are just getting poorer and cannot even afford or have basic necessities that the average American for sure takes for granted.
Also looking at the labor costs across seas is becoming a great problem for uneducated people. They have to settle for drastically low income jobs without a choose to even be able to raise their standard of living because it is a country wide issue and basic uneducated workers just must deal with it and accept it like a normal standard of living but looking throughout the world people in the same job are making 10 times more on a average.
Throughout the world the rich are just indulging in exclusive and lucrative hobbies and activities that no one ever heard of before and for some would be even shocking and totally unpredictable way of life.
(1513.) Szanowny Panie Profesorze,
z perspektywy paru ostatnich lat czli ostatniego krysyzu finansowego ewidentnie widać całkowity upadek koncepcji neoliberalnych, a które to idee legły na początku lat 90-tych ubiegłego wieku u podstaw polskiej transformacji ustrojowej.Trudne doświadczenia państw Europy Środkowej i Wschodniej pokazują, że także idee socjalistyczne się nie sprwdziły. Stąd pozwalam sobie spytać Pana jak i w jakim kierunku – Pańskim zdaniem będą – będą się rozwijać koncpecje dalszego funkcjonowania państwa.
(1512.) Globalization is referred to increasing global connecting, integrating and independence in the economic, social, technological cultural political and ecological sphere. Its best understood as a unilateral process which is inclusive of many sub-processes such as enhanced economic interdependences, increased cultural influence that is binding people together. At these stage of communication and information technology, which offer potential possibilities for development? Such a benefit is equitable in scientific advancement. Equity is understood as equal condition, to which all are treated according to universal norm and social justice, After the colonial division and the two world war the capitalist deicide to stop the use of weapon which is a mean of dominance and these made it more obvious that the inequality in exercising of right to development in international economic order. Collaboration with counties that have lower development which is in line with neolibralization of distribution of resources to all aspect of the economy, it does not include the capital of developing countries because they would need it for development of social amenities, rural and urban development, the developing countries losses hundred of thousand of professional and scientist to the developed countries on emigration, which result into loss of billions of dollars. This is a combination of statements from your book ‘Truth, Errors and Lies’ Bring both subjects together to see how effective they could fit into each other when we look at globalization from his own perspective we see modernization and global improvement at all hemispheres in the life of man. For globalization and equity to work and impart the life of nations and individual positively they must both work hand in hand as a check to the other, on the other to see that it does not go out of his scope to affect the other. Having such as our guide globalizing the world would be with a true mind and not with selfish motive, l understand the fact that some countries are backward in term of what globalization is trying to preach, but the fact is people are not coping in some part of African they are living below 1$ according to united nation statistics but having these in mind that nobody hate good life but where ever you find yourself try and make good out of it, we need each other no matter what we say or think about other nations of these world. Lets all try and take a look at these process for the better.
(1511.) “Gross product is a universal measure, the most frequently applied because it is highly useful and relatively simple to calculate.” Pg, 157, Truth, Errors and Lies.
Since mid 1980, economic growth had once again became a hot issue. The economists had further calculated GDP and GDP per capita of countries worldwide. The level of GDP per capita reflects the living standard and economic development of a particular country. Although, it is hard to judge the growth rate of economy by only looking at GDP per capita. But a general conclusion can be made that when the level of GDP per capita of a particular country rise. It is almost relevant that this country’s birth rate started to grow and mortality rate decreased.
Kuznets came up with the concept of modern economic growth. It points out the average GDP growth is getting closer to zero and perhaps greater than zero. Although it is hard to measure how the GDP growth in Taiwan under the ruling of Qing Dynasty and the Japanese. During those times, the GDP of Taiwan were rather measured in terms of agricultural output; it is hard to trace what was the GDP per capita but it was generally believed by Taiwanese economists that it was around $15.
Significant difference in GDP per capita between China and Taiwan occurred during the Japanese colonial period over Taiwan. During this period of time, income level between China and Taiwan differed the most with Taiwan on top of China. After the year of 1960, Taiwan had received its success, the kind of economic growth that rarely happened to any country in the world. During the 1980s, China had opened its door for foreign investments and started to take lead as an economic pillar in Asia. According to GGDC’s data. From 1951-60, China’s GDP per capita growth rate was 4.47%, 1961-70, 1.90%, 1971-1980, 3.19%, 1981-1990, 5.76%, 1991-99, 6.71%. On the other hand, Taiwan correspondingly to the period has the growth rate of, 4.37%, 6.87%, 7.70%, 6.29% and 5.61%. in the year of 1998, China’s GDP per capita was around $100 while Taiwan’s is nearly 5 times higher, $510.
“People fall ill and die, lives are ruined and shortened, and the statistical indexes fall,…, as in the case of GDP.”, pg. 160, Truths, Errors and Lies.
It is interesting to observe how the GDP per capita had changed between Taiwan and China over the last century. We all know that China started to expand aggressively only since 1980s and Taiwan began much earlier under the ruling of foreign powers. If Taiwan was to be ruled by China, would Taiwan stayed on the same level as China or vice versa. Would China fall in the long term in its birth policy of only one child per family. Taiwan is also becoming more like Western country German, and Easter power Japan in terms of low birth rate. The problem of inequality of money distribution would only be made worst if a country does not have a sustainable high birth rate. Taiwan has already became a victim of low birth rate issue, and it has a direct effect on the fall of GDP per capita in Taiwan.
(1510.) Nigeria so far with her status, economically is still related to as undeveloped. Why is this the case with all the natural resources that the “supposed” great country posses. Nigerian economy has always fluctuated after the British partially left in 1960, the economy was quite stable till 1970 “the oil boom era” . the agricultural sector suffered a great deal… The contribution of agriculture to GDP, which was 63 percent in 1960, declined to 34 per cent in 1988, not because the industrial sector increased its share but due to neglect of the agricultural sector. It was therefore not surprising that by 1975, the economy had become a net importer of basic food items. As claimed then ,there is enough revenues from oil, so what happened? could it be that the strong and corrupt leaders in the country are just keeping all the money to themselves, in this case I mean the rich getting richer and let the poor remain the same or rather deteriorate. The solution to this problem lies in our hand, it’s not the foreigners or only politicians that is to be blames but everyone in the country. “Greed” and “personal interest” is the problem and the only solution is election of the right leaders. According to democracy the only way to send the horrible politicians farming is through the ballot box. So why not do it? There are complaints of “brain drain” , the only reason why that is affecting Africa a lot is because greed does not always give a long term vision, which is what is important. If there was anything the British left behind, it should not be their egocentric lives that we will emulate!! They taught and emphasised on different aspects, like the practice of democracy and how a country should be run based on the face that social amenities and basic infrastructures should be available and working.. everybody cannot be equally reach but comfortable life for a large percentage of the population should be the aim.. Globalization has its advantages and disadvantages regarding the growth of every economy. This is a country with mixed culture so I don’t think there is any culture barrier and already we can see the development is starting to surface in the country affected by globalization with different companies flourishing the country and what the literate you can enjoy and fantasise about a foreign country is becoming present in their home country, so as they return home they will be begin to put into the economy, what they have seen and learnt abroad, as the knowledge of the civilised and exposed youth is the power of our future.
(1509.) I was strongly interested in parts of your book that talked about Development and Future. As I am a person, who is deeply interested in sustainable growth, I found them very helping to improve my knowledge and perspective. I have to firmly agree with your words that “ Politicians don’t like it when voters don’t like something”. Especially, voters do not like taxes. People, generally, don’t want to pay higher taxes, even if they are to improve their standards of living. Even taxes on things that are hazardous from the beginning (like tobacco and carbon). You also said that there is no possibility for development without capital. In your book you give a perfect example of how to get new capital for development, in my opinion, without causing much anxiety and unhappiness among the voters. New taxation policy is probably the key for our comfortable future. Of course, we all soon will experience new taxes on carbon and other greenhouse gases emission, it cannot be avoided in the nearest future. At the same time, with putting higher taxes on companies, households and countries, trading with greenhouses gases emissions among countries should be banned. There were many cases, that shown that carbon credits were sold to many buyers at the same time. To encourage people to pay higher taxes for greenhouse gases emissions, we can eliminate the tax from corporate income. It would make new taxes less painful for companies, and make them at the same time more sustainable, leaving their products more “ecological” and having smaller carob footprint. This way we will care more about stakeholders, not stockholder, but eventually everybody will benefit from living in a healthier environment (work, and natural). New taxation will transform nowadays world’s production processes, making them more sustainable, so at the same time not only leaving Earth a better place to live in, but also making more money as a result, for the investors. Eliminating waste (greenhouse gasses, toxic fluids and materials), in any given place (company, country) will enable making more profits, that way letting to create new workplaces for future generations, and leaving them with less problems (environmental and economic) to struggle with. Recently a lot of experts, economic and environmental, show sustainable economic growth as a solution to most of problems our world’s economy is suffering from. To summarize, I want to say that we all need to think about future generations, our kids, and make anything needed for them, to live in a healthy world of economics and environment, even if it means that we have to pay higher taxes and change our habits.
(1508.) We know that the globalization, with the traditional meaning of this word, made cross border movement of funds and resources easier, less problematic than it was in the past. But I would like to argue that globalization to some extent raises the standard of competition as well. To make it more explicit we could discuss the example of past. In Soviet Union Georgia had no strong competitors when it came to agricultural goods or wine, it had some kind of a monopoly over providing these products to the center and other members of the union. This was mainly caused by the fact that Soviet Union had closed economy and within this structure only Georgia was suitable for producing high quality agricultural products. After the Soviet collapse everything changed. All the countries that experienced what is was communist economy, had gone through complex process of changing the character of the business making process not only through rules but also by changing the mentality of the businessmen who were get used to the patrimonial communist system. The system without any private ownership and government which intervened almost in every aspect of society’s life including economy. After being a part of the state in which economy was guided by more than a visible hand of the political leadership Georgia became an independent member of international society, where the economy was considered to be regulated more by the so-called invisible hand. Later it became the member of WTO and wanted it or not it had to comply with certain rules and standards to be able to compete in the harsh international market where it was no more a monopolist. It is hard to precisely asses if Georgia is successful in that or not but there is no doubt that globalization made Georgia more or less better place for the investments than it was before. So what are the reasons, which determine the criteria for being favorable country for the investments? For the beginning there can be listed several:
• State property privatization
• Liberal Tax code
• Attractive macroeconomic situation
• Developed banking sector
• Strategic geographic location
Of course, this is bit rough and general list, which includes many invisible detailed and specific reasons but it is enough to evaluate what is generally needed. As we see only one of the four (Strategic geographic location) of this criteria cannot be linked with globalization directly or indirectly all the others to some extent are the results of the globalization. All of these criteria are, more or less, present in Georgia and that is because of the globalization and the fact that not only financial resources became easily transferred through borders but also knowledge and experience. Thus, all the drastic political and liberal economic reforms, which took place in Georgia after 2003 in public sector and economic sphere and which created the present environment, were caused by the natural process of globalization. Why? The answer is simple and logical. When everyone is changing, you cannot stay the same without bearing significant costs.
(1507.) The never ending dilemma which policy makers and economists have to confront everyday, in order to make this world a better place, gave me a lot to think about. What’s the write thing to do at the given moment? And is there actually such thing as a right or wrong decision? Since everything depends on the perspective we’re looking from. The world has intergrated to a level that every decision leads to several outcomes and alternatives. People have to understand that satisfying investors, consumers, retired people and everyone else at the same time is simply impossible. Someone has to lose in order to let someone gain. “a billion for one or a hundred for many” We must be prepared for taking a responsible step which will be benefical at long-term for the sides that really need the aid. Often help to the one that is in need will generate longer and bigger profits then the one that has more than enough. It’s a matter of looking at expectations at the current moment and socioecomonic factors.
Development has many dimentions and its hard to determine which aspect of it is more important than the other. It’s a matter of reaching a compromise that will be most adequate to sustain development at a constantly growing level. Of course at some point it will slow down but that’s until we reach a certain level. Which will also continue to grow since we’re aiming exellence (which can’t be defined). But in all we must remember that such factors like health and education will always lie beyond others, simply because they’re a requirement in order to increase productivity but most important of all, happiness.
No matter where we go or what country we look at, the ulitmate goal of every human being is happiness. The Problem lies under the fact that happiness for people all over the world differs. One strives to survive with a wage of 1,800zl and the other with 15,000zl isn’t necessarily happier than the first. Because what factors really matter? And is it possible to determine? A really interesting example is shown by a study made by the University of Leicester which shows that people of Bhutan are satisfied with life to the same extent as in people in Ireland and Canada. And isn’t that what life is all about that? Development surely gives us the chance to adjust to the on going changes and way of life, but to what extent will it continue? And can it keep us happy? Or maybe its a vicious circle? That’s the dilemma that all of us have to face…
(1506.) I would like to discuss a few topics that really caught my eye in the chapter The World As It Is. You mention the differences of standard of living in many parts of the World ranging from the rich and to the really poor and poverty. It is very shocking to see the differences in salaries around the world and how this may affect how a person could live, how long he can live and if he will be even able to afford his basic needs. For example if we look at the top consumers such as the US and see how high their salaries are and how much they consume on a annual scale it would be totally unimaginable for someone to have such a standard and way of life in Africa, for example in Congo like you mention in the book. 650,000 people of Congo must survive with whole families from $140 salary were in most developed countries people spend much more on a daily basis on entertainment not even taking into consideration costs and standards of living. You mentioned in the book that the salary in US is 20 times higher than it is in Africa this to me is a very sad statistic.
If we were to compare the difference of the standard of living in East Asia and Africa it’s the difference of only two generations. China has had a huge leap factor of 34 since the 60’s which is very impressive and the quality of life in these areas has increased drastically as well. As mentioned in the book South Korea and Taiwan just about 50 years ago were in the same shape and position as Kenya and Ghana but now the GDP of the Asian countries is $25,000 and $30,000 which compared to the second group from Africa $1,200 and $2,700 but in the 60’s these four countries were both on the bottom based on economic terms. There are two sides to this there are countries who are really taking off in economic terms and countries that are not even moving on the grid and making no improvements but just standing in place. This is a need for new polices and economic strategies have to be implemented for any change to take place in these countries.
There’s a huge imbalance in these undeveloped parts of the world comparing to developed countries such as the US and Western Europe. Basic needs such as taking care of disease and infection and starvation and sanitation cannot even be taken care of on a minimal level. So to compare standards of living and salaries when basic needs cannot even be made accessible to people is a very sad case of how the world and people’s lives are on a different level.
(1505.) In the book “Truth, Errors and Lies”, Mr.Kododko defined 12 greatest issues for the future. Globalization contributes greatly to “the evolution of networks and its economic consequences”. A well-known fact is that people are reluctant to changes and express skeptical opinions on things before they receive their own experience of them. I totally share all the concerns of this blog’s readers, who think that Globalization creates an immense pressure on cultures, religions, languages and other heritage that define one nation from another. People lose a part of their identity together with the “Macdonaldization”, “Americanization” and etc. But the truth is that countries and their inhabitants have to push forward in their development in order to stay still, and sometimes you have to give away something, sacrifice a piece of yourself to ensure steady progressive movements if you see that your way is less effective that the one of someone else.
Some governments opt to lead their countries in the way that in theory should guarantee the survival of historical heritage, independence and nation’s identity. Unfortunately, in today’s world all the results are so tightly linked to a financial power and the availability of necessary for the existence in a modern life products. A hungry parent thinks of how to find food to feed his child and himself before taking into consideration issues of culture and identity. “Adapt or die” theory is especially obvious in countries with weakening economies, when people begin to ruin oneself and everything which is around by drink, trying to escape from what they call a harsh reality.
I entirely support those, who think that globalization has more advantages than inconveniences. My latest trip to Belarus raised my belief in the effectiveness of that placebo. The absence of globalization in Belarus – let’s not speak of reasons because they are very controversial – is what is wrong with all the rescuing plans, offered by Belarusian authorities who promise to turn the situation around soon. Belarusian government has never had a clear vision of how to develop the nation and found it difficult to substantiate its ambitions to be the country – proud and arrogant – that can survive and thrive without the help from anybody else. And who is going to pay for these conceptual mistakes now? A horrifying and a hardly understandable absence of friends and allies in the most developed economically countries of the planet took out the most reliable source of monetary and technological help – the one that could have provided by other countries, as it is the case now with Greece, Portugal, Ireland, Spain and the European Union. Who’s paying now? People, it is they who in the last two weeks took the burden of the devaluation of the national currency by 57 percent, the increase in price for petrol by 30 percent, a shocking growth of prices for basic articles of consumption and developing deficits in shops and markets. Some of the latest measures undermine the future of millions of families and drove in the ground thousands of businesses. Instead of apologies from the government for their “obvious lack of judgment” people received another portion of lies and listened to a long list of errors they – not the officials – allegedly made.
In my opinion everything could have be so different, if Belarus was an active member of the global dialogue and if the authorities were braver to gave globalization the chance to demonstrate its brighter sides in action for the benefit of 10 mln people and their families.
(1504.) Many times in your book you refer to the comparison between politics and science, or the science of economy and science. Saying that there “is no room in science for poetry,” or implying that the science of economics is never really genuine, it made me wonder. Even though we can, and do learn many lessons from the world history (mostly, as you mentioned, from the last few thousand years), it seems like we always face something completely new. From the looks of it, we never get to experience the same exact situation twice. I’m not trying to say that knowing history and taking valuable lessons from it, like we have done many times, is a bad habit, but maybe we should concentrate more on the “now”. Of course knowing that “foreign exchange reserves are the least effective way of investing a capital surplus” is definitely worth knowing and this is something we have learned from the past.
And to be honest, focusing on “now” is what we are doing, maybe not successfully, but we are trying. The best example of this I can think of is the Eurozone, which more and more seems to be taking its toll on some countries. Very recently Spain’s governing party was trounced in elections, which proves that the Eurozone has now become a government-killing machine. If we look at the PIGS countries (now even PIIGS since the joining of Ireland), we can see that countries are really struggling. Now, the only experience we have with this kind of problem was late in the 19th century when the Latin Monetary Policy was introduced (similar to the Eurozone), and it died a slow death beginning with the crisis in Italy. Only this time around the crisis started with Greece and Portugal. One of the options for these countries, which is an extremely risky one is abandoning the Eurozone. Do you think this might happen during the course of this year?
As you say in your book “a surplus in one place automatically means a deficit somewhere else,” and the countries on the winning side do not necessarily want to change that. Is that the case with the PIIGS countries also? As of right now, there is an absence of any plan to stabilize the situation, lack of leadership from the IMF, so I see this heading in a very bad direction, possibly a crisis of the size of the 2008, only this time in Europe.
Our world today, is not strict science, which we can measure in the laboratory and be sure, it is constantly in transition and countries need to stay in transition, not only to stay competitive, but simply to survive.
(1503.) History is not written in haste, despite being in an era of globalization and the Internet, where events and their interactions occur at an accelerated rate. The recent events in the Arab world during the last three months, may have shocked the world, although there is no doubt that the indicators and the potential to occur, were known and keenly awaited by research centers and international intelligence. This fact is attested to by the dozens of books and reports issued by western countries, in recent years, discussing in detail the hot coals that lay under the ashes in the Arab world, looking to the possibility of its transformation into a fire, in one form or another. But who actually read them and understood them?
We live in a new era. Where geographic boundaries are blurred in earth and space, and between the countries. It is an era of globalization and rapid communication between humans. An era where a small country in size and population such as the state of Qatar, is able to take a prominent role, by using Al Jazeera television channel, to play an important political role in shaping public opinion in countries with ten or twenty times in size and military power such as Egypt and Syria. This new era, explains the confusion in the larger countries in front of what happened and contrast their positions. It justifies the success of the popular uprising here and there, and failing to stumble there. So that the factors that encouraged and fired the resolve of these uprisings are many and varied: from international interventions, media, the rush of modern future generations and the positions of the armed forces, in addition to the deterioration of economic conditions and the thirst for freedom and dignity. All these factors would not have been able to converge and interact if we do not live in an era of globalization and the Internet.
(1502.) from what you wrote on your book “Truth,Errors and Lies” you said that globalisation is changing so many things like..politics, economy,cultures and social life.
i agree with that especially in terms of politics, as we can see in the world today that there are confusions and protests in so many Arab and African nations today due to the fact that globalization have opened so many peoples eyes and they are now aware that they have been in bondage and that if the remain silent that their can never be a change.
in so many countries like Tunisia, their women are also protesting even against the mode of dressing. they now want to be seen not with covered faces and also want to wear any kind of fashioned dresses and trousers not only long gowns anymore.they want freedom to enjoy their lives as they want and also to be empowered politically. in so many countries today, i can say that globalization have helped in the liberation and revival of religious crisis.
when we talk about culture, as we know it is the people’s way of life. globalization have transformed so many cultures like i mentioned about dressing and religion. nowadays. not so many people care about what their culture says anymore, most people now care about what will make them happy. some people because of some restriction on their culture on the way they should live and dress have made them travel out to places like Europe and America for a better life style even when they earn and live better in their country. they want to be like others. they want to adapt to new cultures and traditions. i believe that in the next 15 to 20 years probably, people we no longer talk about cultures and traditions anymore because it will be the same life style everywhere for example, in Africa, both Christians and Moslem’s believed that a woman must cover her head, wear long gowns before she will be able to go inside the church but today so many churches especially in my country Nigeria have abolished such laws and offers people the freedom to come as they want to worship God because it is not about how you dress that matters but about what you believe. Nowadays, i found out that these modern churches have taken over and have overshadowed the old ones that you can only find old men and women in such churches. people want where they will be free.formerly, women don’t wear trousers in Africa but now the rate of women on trousers in Africa are greater than the ones in Europe. women don’t have much role to play in the society but now we all know that the first woman president is from Liberia which is Africa and most exclusive posts today are occupied by them. there is no more discrimination. they now go by the slogan that “what a man can do, a woman can do it better”
Globalization from my own point of view based on what you said in your book is really effective economically because there is no more barriers in business transactions from one country to the other. someone from Europe can easily own and make some business transactions in Africa and Asia without much stress like before.banks can easily transfer huge some of money from one country to other through internet, even customers can make any kind of transactions they want so easily through internet because of online banking. people no longer move along with cash which have caused much robbery before. nowadays, people travel with their visa card. you can have a PLN account in Poland and travel to Germany and withdraw from the ATM machine in euro currency.all these are due to globalization
China as we know is growing so much and fast and has made some impact in some countries today especially in Europe and America. nowadays, goods that costs 3 USD before can be purchased at 1 USD today.the change is real and can be seen.
also there are some negative effects of globalization.for instance, the spread of diseases and economic crisis.
if there is problem in America or China for instance, it can easily affect all nations. as we can see today in the economic crisis, it is really affecting almost every part of the world now. the rich are getting richer and the poor are getting poorer,many people continue to earn less, even if they are more productive
(1501.) When speaking about globalization, more and more frequently we hear about rising inequalities on a global scale between developed and poor countries, but apart from that, we can observe uneven income distribution within the borders of a single country –the most alarming, and probably astonishing for many, is the fact that this situation is steadily increasing within some of the richest countries of the world. The Gini coefficient for the United States has been growing constantly since 1967, reaching 0.469 in 2005 and indicating even greater disparities than in Russia, where it amounts to 0.399.
Taking into consideration the widening gap, we can wonder how it is possible that year by year a smaller part of society benefits from the economic growth – the income of the top-earning people increase, while for instance in the highly developed United States 36 millions (out of 311 million-population) live in poverty. As you mention in “Truth, Errors, and Lies”, many people continue to earn less, even if they are more productive. Also, we should remember that what is happening within one country (for example in the case of influential US) will have consequences in many others.
Does it mean that the middle class will be disappearing?
Surely neoliberal policies do not help.
I believe that the excessive transfer of the control over economy from public to private sector does not stimulate growth, as it may seem. Basing solely on advantages of the free market, while cutting back government social expenses and limiting the role of government increase further inequalities and facilitate gains of already privileged the richest people; and when seeing the wider picture of the whole society – reduce the general quality of life.
This policy model, which was imposed in many regions of the world (including Eastern Europe and Poland with its “shock therapy”) fortunately has opponents, who perceive a significant state involvement in economy as necessary –i.e. Japan, more recently Latin America and a spectacular example of China with its wise development policy. I am convinced that we can learn from those countries a valuable lesson – each of them has different cultures and traditions but yet all adapted various ways of governing, according to which economic freedom should be supported by institutionally strong state.
In my opinion it is of a great importance that right now developing countries base on this approach, by first of all, trying to build efficient governments –policies, institutions, while respecting their values.
We need it in order to integrate (and not to differ with even more inequalities), grow and, as a consequence, to fully benefit from the opportunities that globalization give us.
(1500.) Enterprises integration is in order to take advantage of the global economy. The business strategic objective is to obtain the best global skills, knowledge and assets and apply them in the world. Companies need to build and maintain global Product platform in order to maintain economies of scale, but it also requires that the localization in order to adapt to local characteristics.
Effective the capacity of the global integration will bring business unique. Companies should look for the global to find their own unique skills, assets and resources. And it also means to finds the appropriate capabilities more important than the cheapest labor. After integrating, it will be able to provide the best business ability, knowledge and assets at anytime and anywhere.
Build Design of transaction
According to their specific ability, industry and geographical mix, build and optimize the design of global integration. What kinds of capacity will be maintained or what kinds of capacity will get through partnerships or acquisitions. When companies make acquisitions, they will know how to management and how to get the expected benefits.
Features for the business decision-making should be based on market and operational needs; information technology allows an enterprise to quickly producing products and services, it also can make faster with the new Partners to achieve integration.
As technology advances, virtual costs and barriers greatly reduced, more and more companies to choose the global consolidation to enter the new markets and attract new customers and choose the best suppliers and manufacturers, and other parties to cooperate. In other words, companies changed the previous pattern of self-sufficiency and instead of seeking external cooperation, as a member of the global supply chain.
Why is globalization proving so hard to get right？
The answer is related in part to how companies frame their globalization strategies. In many if not most cases, companies see globalization as a matter of taking a superior business model and extending it geographically, with necessary modification, to maximize the firm’s economies of scale. From this perspective, the key strategic challenge is simply to determine how much to adapt the business model- how much to standardize from country versus how much to localize to respond to local differences. Many companies have moved towards more localization and less standardization, all companies that view global strategy in this way focus on similarities across countries, and the potential for the scale economies that such commonalities unlock, as their primary source of added value. Differences from country to country, in contrast, are viewed as obstacles that need to be overcome.
(1499.) Globalization represents numerous countries, economies; markets, areas, facilities, and it also represent different cultural products and services, customers and competitive environment, using a variety of different strategies rather than a single strategy. In order to survive, competition and successes in the global era, every company had to face a number of challenges and difficulties. First is the cost gap, the second is personnel training, and the third is the in-depth market, the fourth is choose to operate, the fifth is a big, fast, get out , the sixth is realizing innovation and the seventh is to promote diversification.
Cost
The country is more like China, those local small-scale enterprises; low-cost is an important lever to help them evolve into a global challenger. Because they are more likely to get low-cost resources – labor, equipment and raw materials, they have more cost advantage than the developed countries. However, when the Chinese enterprises from simple suppliers of goods become global competitors, they will be unable to complete the implementation of cost control. They will find in such areas, particular in the talent market, over consider the cost high or low would be a disadvantage
Personnel training
In the global environment, competition for talent can be the right people to do the right job at the right time. However, the problem is on the quality, because the people who have the qualification of university, still not be suitable with the appropriate level of skills and capabilities. For example, in china ‘students, they study English at university, but still a large part of them cannot speak fluent English. Therefore, Successful companies will focus on the development of their recruitment, training and allocation of staff on the good way.
In-depth market
In the globalization, companies strive to study the market will face many difficulties. These factors include the lack of consumer understanding, cultural differences, the difference not only between developed and developing countries, but also exist in the single market. And the lack of infrastructure, the impact of the brand, complex unpredictable distribution, retail systems and so on.
Choose to operate
Many multinational companies have been transferred some of their aspects of operational activities to offshore, mainly to reduce costs, divide the value chain and modular, to choose the most appropriate address in the world.
Big, fast, go out
Mergers and acquisitions will lead the corporation successful. In the acquisition, and they see the opportunity to accumulate the knowledge, it means they do not want to spend the time for innovating some ability or knowledge by themselves.
(1498.) My attention was caught two sections: How Things Happen and Stagnation and Development-Institutions, Policy, and Culture. I do not want the same to say that only these two chapters deserve attention. In my opinion, we can confidently talk about relationships. Namely, was touched, the thread of development and awareness. In chapter II presents the economic processes based on politics and on the minds of people. One kind of our awareness and stimulate our imaginations and in the further process raises our motivation to become involved in shaping. In my opinion the world is wile economically similar countries. Their economy may have to be a mirror image. Unfortunately, sometimes it is not based on economic conditions, but socially, culturally, politically. Sneaks into a previously mentioned lack of awareness, and allows us to not make decisions, give life to fate, the other hands. Chapter VIII-Stagnation and Development Institutions, Policy, and Culture reveals the negative effects of capitalism. Reckoned to the effects of capitalism, the destruction of the environment and non-utilization of production capacity. Production capacity is based on the highest volumes of products that can be produced in a specified time. If we talk about capacity should remember that it is variable. The company may use the forecast of demand for a property in order to determine the required capacity, but the quantity of manufactured products during the manufacturing process can vary significantly from the planned amount of production of goods. Is dependent, inter alia, on the disruption of this process, the level of quality, efficiency of equipment and numerous other factors related to the manufacturing process (Donald Waters). The last negative argument comes up in this chapter is structural unemployment. Structural unemployment is unemployment are those that arise on a background of structural divergence between labor supply and demand for labor. Summarize. sometimes we are not aware of our ignorance. Many decisions, if taken, is taken lightly. Without looking at the consequences. I hope that the effect of the invisible hand will notice it less and less
(1497.) Though “The Economist” correctly emphasize that Poland’s ability to avoid recession in 2009 “stems partly from history and geography”, it is quite wrong while claiming there was “a classic Keynesian response to the downturn” (Few woes in Warsaw, April 28th). It’s a fact that there is big budget deficits (7.3% in 2009 and 7.9% last year), but the conclusion that it meant “a hefty fiscal stimulus” is mistaken. If there only was such, the picture would be much nicer. Indeed, in 2009 Poland was the only country in the EU with positive rate of GDP growth (1.7%). However, it was a miserable 0.8 percent in 1Q of 2009, while still robust 7.4 percent only two years earlier. Thus, falling from the ‘eight floor’ it stopped at the ‘ground floor’, above zero, while other countries, falling from lower altitude, plunged in the basement, that is in recession.
If there was any serious fiscal stimulus the annual rate of growth in 2009 would be app. 3.5%. Unfortunately, it did not happen, because the government, following the ill-advised policy of fiscal constraints, was very reluctant to run any special stimulus. The suggestions to do so were right away rejected by the finance minister as counterproductive and inflationary. Yet it is true that the fiscal deficit jumped to staggering 7.9% of GDP in 2009. But it occurred due to the fast shrinkage of tax base as the aftermath of a lack of stimulus package! Large and unsustainable budget deficit of recent years is not a by-effect of smart, ex ante Keynesian policy. It is the result of erroneous macroeconomic policy. A dearth of strong fiscal stimulus led to significant slowing down of output and falling budgetary revenue.
One should not confuse the consequences with the causes. Only now, ex post, the government asserts that it ran deliberately large deficit. It didn’t. So, now we have a huge deficit with sluggish growth. While in 2009 Poland was a ‘green island’, because out of the 25 emerging markets, to which “The Economist” refers weekly to at last two pages, only in four the rate of growth was higher, in 2010 it was opposite: only in four countries the GDP was growing slower.
(1496.) According to chapter four- globalization, the incompleteness of globalization appears mainly in the labor and agricultural markets.
History indicates that the population migration always accompanying the development process of human society. Since the 15th century, the formation of European nation-state, capitalism and colonialism have accelerated the process of cross-border migration around the world. After World War II, especially in the last 20 years, the rapid development of economic globalization Increase the global talent cross-border flows, it is expanding the scale of transnational flow of talent.
The formation of International migration has its complex reasons, for example: the different economic development in countries, the different economic structure in countries, immigration networks and the immigration policies in western countries.
The transnational immigrants are the result of globalization and the booster of globalization. Now it is a century of immigration, the development of globalization has made no countries allowing for information, commodities and capital opened, but refusing the movement of population. The international immigration has become a common phenomenon under the contemporary world. The rapid development of globalization is bound to promote the exchange and cooperation in the fields of politics, economics and culture. It provides unprecedented opportunities to human being.
Since the 1980s, with the global economy and international trade liberalization process speeding up, the world agriculture faces an unprecedented challenge.Control the world grain market is one part of capital globalization strategy. Some Western countries choose the development strategy of support and protect agricultural to control the world grain market. They force the price of strategic resources (such as grain) up or down in the global market not only to control the price of entry-level market, but also to worsen the terms of trade in many developing counties. In many developed countries, the governments support their transnational agricultural corporations to dump their agricultural products to developing countries, it was restricted and depressed global market prices of agricultural products, interfered and broke the order of market economy. They keep the agricultural products from developing countries so that to widening gap between developed countries and development countries.
Indeed, I think the reasons for developed capitalist countries to support and protect their agriculture are agriculture plays a very important role in national economy, because agriculture is the basic industry in a country. After a country accomplished industrialization, supporting and protecting agricultural development is the inevitable choice in order to stabilize the country’s agricultural industry.
(1495.) In the book you say that globalization is changing not only economy but also political, social and cultural aspects of our life´s. The cultural side of globalization includes many changes in one’s own culture on which I would like to elaborate. As you mentioned in the book, no one thought the last telegraph would be sent or that horse-drawn cabs would vanish. For us it’s the email, we use it to communicate but maybe one day something new will replace it. Already the post offices are closing locations because it’s not as widely used now-a-days, emails are simply faster and a more reliable source of communication, what will be next?
Now we have the so called “McDonaldization”, the “fast food culture”, and the integration of different cultures into our own, and many more. The modern technologies make it possible for cultures to have a deeper exchange between each other. The problems arising in France, “Clash of civilizations or global melting pot?” in my opinion this is a step back in the globalization process. We have freedom of religions and through globalization cultures clash together; they should respect and learn from each other. It is a controversial issue, but in my opinion it shouldn’t be forbidden since it’s their culture and is basically a discrimination of religions. This is one of the problems arising from globalization in today’s world involving cultural issues.
Will something follow the globalization; will there be a higher stage or will it take a step backwards? The boarders between the EU counties have already been abolished, if it’s a good thing it’s arguable, from one side its good especially when talking about trade and economics and as mentioned in your book people should be allowed to move freely around, on the other hand problem arise such as illegal immigration, and crime. Countries become integrated and melt together; the cultures will eventually melt as well in some aspects as people adapt new traditions. The movements of people who don’t see any perspectives in their own countries move to the more developed counties, religions, cultures and values clash together. In the book “The Clash of civilizations” by Samuel Huntington, the author argues if the cultures and religions will be able to live peacefully together or if it ends with a “fight of cultures” –as it’s already starting to be seen between the Islamic and the western world. Whenever a Mosque is about to be built in a city there are clashes between people, protests and other events against the construction. People should learn to live together and respect each other’s religion, values and beliefs otherwise the tensions will grow and the discriminations and accusations against each other will be felt in the international relations and conflicts. The process of globalization damages parts of culture and is repressing minority ethnical groups, since they are limited in expressing their values and beliefs. People don’t want to lose their identity and heritage and clash together with locals which want to preserve the local culture and are not interested in learning about others values.
(1494.) In this second post I would like to refer to your book “Truth, Errors and Lies”. In your book, I really like the last chapter about “Uncertain Future”, where you describe twelve compass points. Each of these points has its own characteristics. Nevertheless, I like the points number nine the most, which is about knowledge based – economy, society. In this point you said that knowledge and information play significant role for economic development. All business, like civilization is based at its deepest level of knowledge. Today, people have a lot of knowledge and information than before, thanks to development of technology. However, they do not know how to use it. I totally agree with your view here. In order to be distinguished in this civilization it is not enough to possess knowledge and information, but we need to know how to operate it in order to accomplish our goals. Today young people can get a lot of theory knowledge from school or university, but they are not taught how to use this useful knowledge in practice. Most of the people are getting degree now, but not many of them use it in practice way to help in economic growth. I think it happens like that, because of the academic system of education. You mention in your book that “academic community, they simply treat the idea of knowledge–based economy as a pretext for advocating the improvement of their own material situation”. Knowledge is now recognized as the driver of productivity and economic growth. As a result, we can observe that many companies when it comes to the hiring new people they require not only knowledge, but also experience. Experience means here knowing how to apply learned knowledge in work. Therefore many people during their studies are trying to be active and get prefer focus on getting knowledge through experience than getting academic knowledge. Nowadays, we live in the information society where knowledge resources such as know-how and expertise are as critical as other economic resources. Therefore it is very important for the poor or developing countries now to develop their education in order to catch up with the rich part of the world. We cannot predict what might happen in the future, but we can prepare for that. Therefore very important is to remember to not simply possess knowledge but we have to learn how to use it as well.
(1493.) In December 1978, China opened the era of Deng Xiaoping. Deng Xiaoping theory is keep economic development as the central task, persevere in reform and the open policy. This is reflect the spread of the concept of globalization, at this stage, economic development, development of productive forces is of paramount importance placed on the party’s position and the state is seen as the biggest political. It also means that “Knowledge-based Economy”. At the same time, a landmark event in this stage reflects the concept of globalization to further expand in the Chinese society.
First of all the Deng Xiaoping’s South Talks, in early 1992, Deng Xiaoping make an inspection tour to Wuchang, Shenzhen, Zhuhai and Shanghai, delivered a highly targeted and impact of the speech along the way. The core is emphasized that “one central task, two basic points”, persevere in reform and the open policy, accelerate economic growth. From the perspective of the concept of globalization, it is fully endorsed the reform and economic development of the market tendency, most importantly, the concept of market economy finally achieved political legitimacy. Because Deng knows that productivity is the ultimate decisive force of social development and science and technology are a primary productive force. Using words in the book is “At present, world is peace, business and science that decide its outlines to an increasing degree.”
Secondly, China’s accession into WTO. During the 10 years in WTO, China has a deep understanding and experience of globalization. China’s development is inseparable from the world, the world needs China’s contribution to the development.
Finally, China’s response to the Asian financial crisis. Globalization increased the interdependence of the world for international mobility of factors of production to create the conditions to provide a development opportunity, but globalization has also led to the vulnerability of world economic development, the Asian financial crisis is a strong indication that in 1997, it also makes China a more comprehensive understanding of globalization.
As the book said “Long-term economic development occurred when five factors came together: Technological progress; The ascendancy of critical thinking and innovation over dogmatism in culture and the economy; Economic awareness and an ability to organize the expansion of production and exchange; Political will on the part of the rulers to carry out essential institutional reforms that set human energy and entrepreneurship free and directed them towards creativity; Openness to external contacts, making possible a broader exchange not only of goods, but also of knowledge, information and culture.” Deng Xiaoping Theory is an open scientific system, not only the establishment of China’s future development strategy, but also provides a reference for the development of Third World country, it is a manifestation of sustainable development, a long-term development of the new theory.
(1492.) In the section of your book, “The World As It Is,” I find the way you introduced the topic of GDP being a very general measure of the nations’ wealth very interesting. By talking about the wealthy Swiss family, spending tons of money each day of their fruitful lives, you then took a look at the poorer nations not being able to afford vaccinations for the diseases for which vaccines are available. I totally agree with what you said about the income levels increasing drastically over the less few decades. As you also rightfully stated, unfortunately only a select few got rich, are rich, and most of all – are getting richer.
This seems to be having an adverse effect on the poor, on the other hand the poor are getting poorer. This is a (as many people like to call everything) a phenomenon, which has been talked about for a long time, but it is true. A big reason for this, especially in the United States is the off shoring. Large corporations such as Apple, which used to provide jobs to the bottom, uneducated Americans are now only leaving more jobs for the educated software engineers, and the rest of the work such as manufacturing is being shipped back and forth mostly between China and the US. The lower labor costs overseas have proven to be disastrous for the less educated people.
Even though it is an extremely unfortunate trend the world is facing, it is the reality. Between 1975 and 2001 the income levels of the bottom 20% household incomes has increased by almost 11%, while the top 20% and top 5% have experienced an increase of 74% and 108%, respectively. I agree that the GDP has many drawbacks and actually like the idea of the Human Development Index tool being used to measure the socioeconomic development and the overall quality of life.
You mention that the life expectancies are on the rise, but then you mention the new diseases we are facing from year to year. I could not agree more and to be honest I wonder if these expectancies (after all they are only predictions) will hold true. In my opinion it is highly possible that these numbers will in reality be lower. Despite all the new medication available (for the richer part of the world), the people today are indulged with so many “new” activities, which were not around before, and of which outcomes may be very unpredictable and shocking. Constant use of internet, cell phones, GMO’s, fast foods, even tanning salons are going to have their outcomes soon enough and I think many people (especially analysts) may be caught off guard.