Globalisation:
The Great Debate
John Branch, Ph.D.
Lecturer in Strategy and Marketing,
Stephen M. Ross School of Business
Faculty Associate,
Center for Russian and East European Studies
University of Michigan
Welcome
• Globalisation
• Debate
• The
Controversy of
Globalisation
• The Dimensions
of Globalisation
• 1 July 2006. . . Ross, CREES
• 1 December. . .William Davidson Institute
• Olin:
• International marketing, IBOC, GMS, OIBA
• Ph.D., University of Cambridge
• Oxford and Northwestern
• ESC Rennes
• Since 1993, visiting professor:
• ZSEM, Croatia
• Sasin, Thailand
• HSEBA, Finland
• ESAN, Peru
• SSE Riga, Latvia
• Canadian
• Globalisation
• Debate
• The
Controversy of
Globalisation
• The Dimensions
of Globalisation
Globalisation
• 2822 articles and 589 books in 2002
• Globalisation is. . .
• . . . primarily an economic phenomenon,
involving the increasing interaction, or
integration, of national economic systems
through the growth of international trade,
investment, and capital flows
(www.globalisationguide.org).
• . . . the process of denationalization of
markets, politics, and legal systems, i.e., the
rise of the global economy
(www.globalisationguideorg).
• But. . .
• there is also increasing cross-border social,
cultural, and technological exchange.
• Globalisation
• Debate
• The
Controversy of
Globalisation
• The Dimensions
of Globalisation
• From a sociological point of view,
globalisation is. . .
• . . . the decoupling of space and time,
emphasising that in terms of human
communication, there are no temporal or
geographic contraints (Anthony Giddens).
• . . . a process (or set of processes) which
embodies a transformation in the spatial
organization of social relations and
transactions, expressed in transcontinental or
interregional flows and networks of activity,
interaction, and power (Andrew McGrew).
• . . . a process in which geographic distance
becomes a factor of diminishing importance in
the establishment and maintenance of crossborder economic, political and socio-cultural
relations (Ruud Lubbers).
• Critics would present globalisation as. . .
• Globalisation
• Debate
• The
Controversy of
Globalisation
• The Dimensions
of Globalisation
• . . . a worldwide drive toward a globalised
economic system dominated by supranational
corporate trade and banking institutions that
are not accountable to democratic processes or
national governments
(www.globalisationguide.com).
• . . . the hegemony of American values (Simon
Reich).
Debate
• Globalisation
• Debate
• The
Controversy of
Globalisation
• The Dimensions
of Globalisation
• Globalisation
• Debate
• The
Controversy of
Globalisation
• The Dimensions
of Globalisation
The Controversy of
Globalisation
• So, who won the debate?
• Globalisation
• Debate
• The
Controversy of
Globalisation
• The Dimensions
of Globalisation
The Dimensions of
Globalisation
• Confluence of economic phenomena
(capitalism)
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Liberalisation and deregulation of markets
Privatisation of assets
Retreat of state functions
Diffusion of technology
Cross-national distribution and production
(foreign direct investment)
• Integration of capital markets
• Evolutionary process:
• Globalisation
• Debate
• The
Controversy of
Globalisation
• The Dimensions
of Globalisation
• 16th century European capitalism, following
circumnavigation of earth in 1529 to 1521
• Expansion of world trade and investment in
late 19th century
• Halted by first world war and protectionism of
1920s which led to the great depression
• Sense of one world during 1875 to 1925:
• Gregorian calendar, international date line and zones
• Telegraphy and signalling standards
• Post second world war:
• Emancipation of colonies; international cooperation
• Multinational companies
• Fall of Berlin wall and collapse of U.S.S.R.
• Technological advances
• Involves everyone:
• Globalisation
• Debate
• The
Controversy of
Globalisation
• The Dimensions
of Globalisation
• International organisations:
• WTO, IMF, World Bank, United Nations
•
•
•
•
•
•
Companies
Consumers
Governments
Environmentalists
Non-Governmental Organisations
Unions
• Controversial:
• Globalisation
• Debate
• The
Controversy of
Globalisation
• The Dimensions
of Globalisation
•
•
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•
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The invisible hand. . . Does it really work?
Putting profits over people
Making the poor poorer
‘Washington consensus’ conspiracy to enrich
bankers
Destroying cultural differences
Yielding democracy to faceless multinationals
Americanisation
Hegemony of WTO, IMF, World Bank
Endangers the environment
So What?