Globalisation
1. DEFINITION
Ellen Frost from the Institute for International Economics defines globalisation as “a long term process of connection and transformation…it has set in motion a living, expanding, and highly uneven network of cross border flows not only of goods, services, money and technology, but also of ideas, information, culture, people and power” . (1)
2. PRO-GLOBALISATION
·Promotes rising wages and improved working conditions in developing countries.
·Globalisation has presently improved the lives of millions around the world.
·Domestic businesses can gain access to cheaper inputs and a huge consumer market for their services.
·Removing trade barriers due to globalisation means that there is greater consumer choice and the competition decreases prices.
·Globalisation spurs economic growth, which in turn raises living standards . (2)
3. ANTI-GLOBALISATION
·The gap between the rich and poor is widening.
·Globalisation is in favour of the rich countries.
·Globalisation can drive poverty.
·Powerful Transnational Companies (TNCs) can exploit the developing countries for cheap labour.
·There are inequalities in health, education and income distribution . (3)
4. AUSTRALIAN GLOBALISATION POLICY
·Australia is a strong supporter of globalisation.
·Australia undertook trade reforms in 1980s and 1990s and has subsequently become one of the most open economies in the world.
·In the 1970s Australia significantly reduced its tariffs and increased its trade.
·In the 1980s Australia relaxed its Foreign Direct Investment regime.
·Australia opened its financial markets and freed the pegged exchange rate.
·During this time Australia also initiated an agenda of microeconomic restructuring.
·In the 1990s Australian Governments reformed labour markets, taxation and competition policies and also undertook a program of privatisation . (4)
·To read this report from the Department of Foreign Affairs and Trade please visit: http://www.dfat.gov.au/publications/globalisation_gains/globalisation_keeping_gains.pdf
5. HOW YOU CAN ACT
a) To support globalisation:
·Research the benefits of globalisation through the internet, books and journal articles and inform others.
·Support the globalisation institute, go to: http://www.globalisationinstitute.org/support/
·Get involved and talk to other people with similar views through online discussion, visit: http://www.cato-at-liberty.org/
b) To oppose globalisation:
·Research the negative aspects of globalisation through the internet, books and journal articles and inform others.
·Support making globalisation and trade fair for all countries through Oxfam. Campaign, volunteer or become a member of Oxfam. There are many more ways to become involved, visit: http://www.oxfam.org.au/getactive/·
Support alternatives to globalisation, visit:
6. BIBLIOGRAPHY AND FURTHER READING
Frost, E. (2000), From Rockets to Religion: Understanding Globalisation, European Union Studies Centre, No. 36 October 6
Lukas, A. (2000), WTO Report Card III, Globalisation and Developing Countries, Centre for trade policy studies, CATO Institute, No. 20, June 20
Oxfam (2002), rigged rules and double standards – trade, globalisation and the fight against poverty
Australian Government (2003) Department of Foreign Affairs and Trade, Economic Analytical Unit, globalisation keeping the gains
The Australian APEC study centre, The Globalisation Guide:
http://www.globalisationguide.org/
(1) Frost, E. (2000), From Rockets to Religion: Understanding Globalisation, European Union Studies Centre, No. 36 October 6, pp. 1
(2) All points in section 2 derived from: Lukas, A. (2000), WTO Report Card III, Globalisation and Developing Countries, Centre for trade policy studies, CATO Institute, No. 20, June 20, pp. 1-2
(3) All points in section 3: Oxfam (2002), rigged rules and double standards – trade, globalisation and the fight against poverty, pp. 1-2.
(4) All points in section 4 from: Australian Government (2003) Department of Foreign Affairs and Trade, Economic Analytical Unit, globalisation keeping the gains, pp. 56-59
