CAPE Caribbean Studies Notes - Globalisation and Development

CARIBBEAN STUDIES NOTES GLOBALISATION AND DEVELOPMENT Globalisation is the process whereby flows of trae! finance an infor"ation between co#ntries are broaene an eepene so that they f#nction as one $lobal "ar%et& Globalisation is a  process that eroes istinctions between one place an another& The worl wo#l operate as if there are no borers ' as if the nation(state oes not e)ist& All co#ntries wo#l be on a le*el  playin$ fiel +concei*e as e,#al- an all wo#l be i"pacte by worlwie pheno"enon& .owe*er! there are i"plicit contraictions in the way $lobalisation is bein$ playe o#t s#ch as the fact that there will be who can c an affor $reater access to the elite pro#cts an ser*ices an ha*e "ore power& All /co#ntries0 wo#l not ha*e the sa"e i"pact on others1 instea! there "ay  be a few powerf#l co#ntries whose o"inant ieas an pro#cts infl#ence the rest of the worl& Internationali2ation be$an with the re#ction in transport costs in the n ineteenth an early twentieth cent#ries& After the two worl wars! the instit#tions of the 3N! IM4! GATT GATT +now 5TO- an the 5orl 5orl Ban% were set #p& They stabili2e c#rrencies! increase trae an  pro#ction an %ept a ti$ht hol on re$#lation of international "onetary flows& Econo"ies were thrown into isarray in the 6789s when OPE: co#ntries hi%e #p the price of oil& Since then! free trae has sprea an TN:s an forei$n in*est"ent has been "ore wiesprea& I:Ts ha*e enables b#sinesses to co""#nicate with s#ppliers an c#sto"ers all o*er the worl an ha*e a#to"ate "any sta$es of pro#ction! $reatly increasin$ efficiency& Globalisation is pri"arily of three types! na"ely! econo"ic! c#lt#ral an political; 1. Economic Globalisation:

 No national econo"y is an islan now& To *aryin$ e$rees! national econo"ies infl#ence one another& One co#ntry which is capital(rich in*ests in another co#ntry which is poor& One who has  better technolo$ies sells these to others who lac% s#ch technolo$ies& The pro#cts of an a*ance co#ntry enter the "ar%ets of those co#ntries that ha*e e"ans for these pro#cts& Si"ilarly! the the nat#ral reso#rces of e*elopin$ co#ntries co#n tries are sol to e*elope co#ntries that nee the"& Th#s! $lobalisation is preo"inantly an econ o"ic process in*ol*in$ the transfer of econo"ic reso#rces for" one co#ntry to another& 2. Cultural Globalisation ;

:#lt#re has increasin$ly beco"e a co""oity& Pop#lar boo%s an fil"s ha*e international "ar%ets& .arry Potter has reaers al"ost all o*er the worl& En$lish "o*ies are seen al"ost in all co#ntries& 5estern 5estern pop "#sic has beco"e pop#lar in e*elopin$ co#ntries& The re*erse flow of

c#lt#re is insi$nificant& The flow of c#lt#re is "ainly fro" the North to the So#th& In the last few years the "eia owners of the 5est ha*e shown interest in enterin$ e*elopin$ co#ntries& 4or e)a"ple! M#roch has opene TV channels +STA< News! STA< Mo*ies an STA< Pl#s- in Inia& :#lt#ral $lobalisation has been facilitate by the infor"ation re*ol#tion! the sprea of satellite co""#nication! teleco""#nication networ%s! infor"ation technolo$y an the Internet etc& This $lobal flow of ieas! %nowle$e an *al#es is li%ely to flatten o#t c#lt#ral ifferences  between nations! re$ions an ini*i#als& As this flow of c#lt#re is "ainly fro" the centre to the periphery! fro" the North to the So#th! an fro" the towns an cities to *illa$es! it is the c#lt#res of *illa$es of poor co#ntries which will be the first to s#ffer erosion& 3. olitical Globalisation:

Since lon$! efforts ha*e been on to brin$ the whole worl #ner one $o*ern"ent& The Lea$#e of  Nations an the 3N ha*e been the efforts in that irection& It is belie*e that the worl #ner one $o*ern"ent will be safer an freer fro" conflicts; The 3N has belie e)pectations! b#t a n#"ber of re$ional or$anisations li%e E#ropean 3nion! ASEAN! APE: an SAAan#ary 99H-! b#t allowe A:P co#ntries 6 +an #p to - years to open #p to E3 i"ports while pro*iin$ protection for the sensiti*e 9 of i"ports

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 pro*ie scope for wie(ran$in$ trae co(operation on areas s#ch as ser*ices an stanars

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are also esi$ne to be ri*ers of chan$e that will %ic%(start refor" an help stren$then r#le of law in the econo"ic fiel! thereby attractin$ forei$n irect in*est"ent! so helpin$ to create a F*irt#o#s circleF of $rowth

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Transnational Or$anisations / MN:s $reatly infiltrate the "ar%ets of e*elopin$

co#ntries! especially those with a stable $o*ern"ent or c#rrency sit#ation! so#n infrastr#ct#re anJor cheap labo#r force& .owe*er! MN:s ha*e been fo#n $#ilty of serio#s h#"an ri$hts *iolations! ta) e*asion! "oney la#nerin$ an hiin$ f#ns in offshore ban%s& Many o not e*en e"ploy eno#$h persons an lea*e whene*er they are reay ' #s#ally when their ta)(free perio of operation is co"plete& T#c(nolo$' o Allows co""#nication between s#ppliers an p#rchasers in separate co#ntries o E(co""erce has opene #p "ar%ets for pro#cts an pro*ies "ore choice for cons#"ers

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In*est"ent s#ch as the p#rchasin$ of stoc%s can be one o*er the internet! th#s

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eli"inatin$ the "ile "an Goos can be pro#ce "ore cheaply an in lar$er ,#antities! "a%in$ the" "ore

co"petiti*e on the worl "ar%et I"#olo$i#s o Social  ' preference for forei$n pro#cts o G#n"#r Economic  ' an #nfettere econo"y is the en$ine of $rowth as econo"ies will o o

specialise in those $oos with which they ha*e a co"parati*e a*anta$e olitical / capitalist econo"ies try to co"pete on the worl "ar%et

The IM4 an 5orl Ban% are abo#t lenin$ "oney an $i*in$ technical a*ice& Po*erty! altho#$h still wiesprea! has reporte si$nificant re#ction b#t co#ntries cannot co"pete #ner conitions of trae liberali2ation&