Definition of globalization
The act or process of globalizing : the state of being globalized especially : the development of an increasingly integrated global economy marked especially by free trade, free flow of capital, and the tapping of cheaper foreign labor markets
History of globalization
The Brief History of Globalization
The idea of globalization is nothing new. It has started centuries ago by creation powerful organizations. These organizations were supported by rich people, scientists and politicians.
Although many people consider globalization a twentieth century phenomenon, the process has been happening for millennia. Examples include the following:
- The Roman Empire. Going back to 600 B.C., the Roman Empire spread its economic and governing systems through significant portions of the ancient world for centuries.
- Silk Road trade. These trade routes, which date from 130 B.C. to 1453 A.D., represented another wave of globalization. They brought merchants, goods and travelers from China through Central Asia and the Middle East to Europe.
- Pre-World War I. European countries made significant investments overseas in the decades before World War I. The period from 1870 to 1914 is called the golden age of globalization.
- Post-World War II. The United States led the effort to create a global economic system with a set of broadly accepted international rules. Multinational institutions were established such as the United Nations (UN), International Monetary Fund, World Bank and World Trade Organization to promote international cooperation and free trade.
Most of those organizations are secret organizations which do not discuss the most important issues publically. the statute is secret and it is unavailable for public viewing. A lot of the very old secret organizations are still very active and they enjoy having very good publicity. I will also briefly discuss their activity, statute and their goals.
A List of the organizations which aim is globalization based on the date of their foundation.
The Illuminaii was founded on May 1, 1776 in Bavaria, Germany by Mr. Adam Weishaupt, whose idea was to, as he called it, „direct all mankind“. His major doctrines were:
• Knowledge is Power
• Control the societies without dominating them
• Control the world affairs by masterminding events and planting “agents” in governments and corporations in order to gain political and economic power and influence “New World Order”.
The spiritual father of the COMINTERN is Karl Marx, the author of “The Communist Manifesto” written with Friedrich Engels as a co-author. The “Communist Manifesto” was issued in 1848. The Comintern was founded after October Revolution (Bolshevik Revolution) in Russia in March 1919 by Lenin and ceased its operation in 1943 by Stalin. Official name of this organization was “Communist International” (abbreviation – Comintern). Comintern united communist parties from all over the world under Soviet Russia’s control. The major goal of this organization was to promote worldwide communist revolution, abolish capitalist countries and create International Soviet Republic under the leadership of Communist Russia. The Comintern had his own anthem named “The Internacionale”, which was sung in all communist bloc countries until the death of Stalin in 1953. Karl Marx in his “Communist Manifesto” wrote: “Socialism wants to unite all workers in the world”. Comintern was organization which wanted to introduce abrasive communist rules in the world. It is nothing more than harsh globalization.
The name of Bohemian refers to the group of people who were vagabonds. The Bohemian Club was founded by artists in 1872 in San Francisco. Those artists have had meetings in the summer in the Forest of Sonoma County in California, USA. When time passed by the Bohemian Grove became the elite men’s secretive organization with an owl as a logo which can be found on ONE Dollar bill in the upper left corner. The statue of their patron, St. John of Nepomuk, has his index finger over his mouth. It means: keep your mouth shut. They meet once a year for two weeks. Participants are rich and powerful people such as Presidents, cabinet officials and directors, CEOs of large companies and financial groups. When powerful people work together they become even more powerful. They control banking system, markets and money supply. They also determine what our rights are and which laws have effect by appointing judges. The most important issues are omitted from public discussion – it is GLOBAL DOMINATION, what is Globalization.
Initially it was an environmental organization in the United States founded on May 28, 1892 in San Francisco by John Muir. The Sierra Club primarily operates in the United States with the affiliated organization – Sierra Club Canada. The Club was the first organization in North America to promote the environmental issues. Recently they focused on sustainable energy and global warming. The Club strongly oppose the use of coal. The Sierra Club is associated with the progressive movement. Recently thy are moving toard globalization.
The Round Table
The Round Table was founded by Sir Cecil Rhodes in London in 1909. Initially it was an organization promoting close union between Britain and its colonies. The mottos were:
• it’s our duty to acquire more territories
• absorption of the greater portion of the world under one rule Their mentality was to unite the world under ONE FORM OF GOVERNMENT – United Kingdom. It is Globalization.
Council of Foreign Relation
The Council of Foreign Relation (CFR) was founded as a nonprofit think tank specializing in the U.S. foreign policy and international affairs. The CFR meetings convene government officials, global business leaders, and prominent members of the intelligence to discuss international issues. These meetings influence foreign policy by making recommendations to the President and his administration. CFR has been criticized that its goal is for global integration. The “John Birch Society”* claims that CFR with others want to BUILD ONE WORLD GOVERNMENT*. Letting the CFR Cat Out of the Bag- The John Birch Society; August 26, 2016
The Bilderberg Organization was founded by Polish man Josef Retinger in 1954. During the II WW Mr. Retinger was an adviser to the Polish General Wladyslaw Sikorski who was at this time the Prime Minister of the Polish Government in Exile. At the same time he was also a British spy. These positions gave him a chance to meet a lot of politicians. The initial goal of the Bilderberg Organization was to foster a dialog between Europe and North America to prevent another war. The first meeting was set up in 1954 at the Hotel Bilderberg in Oosterbeek, The Netherlands. Participants meet once a year and they include: political leaders, experts from industry, finance and academia. In the last few meetings the major topics were: stable strategic order; climate change and sustainability; future of capitalism; China; Russia. In 2001 Mr. Denis Healey*, a Bilderberg group co-founder said: “we are striving for a ONE-WORLD GOVERNMENT”. He also added: “we feel that a single community throughout the world will be a good thing”. It is globalization. *Ronson, Jon (10 March 2001). “Who pulls the strings? (Part 3)”
The Club of Rome In the Statute of this organization we can specify the following goals:
• #1 Halt fossil fuels
• #2 Renewable energy
• #3 Put price on carbon dioxide
• #4 Replace GDP
• #5 Improve refrigerant management
• #6 Technology development
• #7 Material efficiency
• #8 Regenerative land use policy
• #9 Keep population under control
The members of The Club of Rome are current and former heads of states, UN bureaucrats, politicians and government officials, diplomats, scientists and economists from around the world. Major activities are:
The Trilateral Commission
This Organization was formed by a private citizen of Japan and countries of Europe and North America to foster closer cooperation. The initial goal was to tighten the cooperation between founders of this organization. It was non-governmental, policy oriented forum that brings leaders in their individual capacity from the world. Over time, number of members grew and the goal has been changed. Currently they wanted to eliminate the USA as a singular leader in the world and create a new world order. The Commission believes that the World needs the wider International System – world government
The Intergovernmental Panel on Climate Change (IPCC) was founded in 1988 as a part of World Meteorological Organization (WMO). IPCC leads and coordinates the work of institutions which promote the theory that human activity and CO2 cause the climate change. IPCC is divided into three working Groups: The Physical Science Bases; Impact, Adaptation and Vulnerability and Mitigation of Climate Change. IPCC does not provide its own original research. Based on the collected information from different Scientific Organizations they prepare the Report every five years. In the Report issued in 1997 they claimed that in 12 years we will have on the Earth the ecological catastrophe if temperature will rise by 1.50C above the pre-industrial temperature level. Also the IPCC provides governments at all levels with information on the climate policy. This small group lacked the resources to cover the increasingly complex interdisciplinary nature of climate change. The prediction of the climate change is based on the mathematical models and recently they admitted that the mathematical models cannot be used to predict long term climate change. The goal of IPCC is to convince the Governments from all over the world to work together to mitigate climate change. It looks like a first step toward globalization.
The Montreal Protocol is International Treaty that aimed to regulate the production and use of chemicals that contribute to the depletion of Earth’s ozone layer, mainly refrigerants from groups of CFC and HCFC. The initial goal of the Montreal Protocol was to protect the climate change. It was the beginning of the creation of the CLIMATE CHANGE MOVEMENT. Kigali Amendment The politicians from all over the world met in 2016 in Kigali, Japan to prepare the Amendment to the Montreal Protocol on Substances that Deplete the Ozone Layer. It supposed to help to reduce the production and consumption of hydrofluorocarbon refrigerants (HFCs and HCFCs) to avoid global warming by up to 0.4°C in this century
Agenda 21 refers to 21st century. Officially Agenda 21 is an action agenda of the UN, other multilateral organizations and individual governments from around the world. Their goal is to resolve UN decisions at local, national, and global levels. Its aim is to achieve GLOBAL sustainable development. It is the way to globalization. European Union (EU) EU was founded in 1993 and it is a unified trade and monetary body of 28 member countries (UK left the EU at the end of 2020). The borders between all member countries of EU has been taken down what eliminates border control between members, which allows for a free flow of goods and people. The purpose of EU is to promote peace, establish a unifying economic and monetary system, break down barriers to trade and borders, and encourage technological and scientific development and champion environmental protection. European Union has one monetary system – Euro. EU is on the way to globalization in Europe.
Kyoto Protocol was created in 1997 and entered into force in 2005. This Protocol sets mandatory limits of emission of six greenhouse gases. At the end of 2012 the commitments under Kyoto Protocol has expired. Its purpose was to encourage the growth of global economy by creating a single currency. What I call globalization. Kyoto Protocol failed.
The major goal of this organization is to limit greenhouse gases emission (mainly CO2) to levels that would prevent global temperature increase no more than 20C (3.60F) above the temperature before the beginning of the industrial revolution (year 1880).
• Commitment of $100 billion per year from developed courtiers by 2020
• All countries that signed the Paris Accord must be behind the goal of the Accord
• It is estimated that at least $2.5 Trillion would be needed by 2030 to achieve the worldwide goal I call it DISTRIBUTION OF WEALTH. Growing number of business leaders are now clamoring for a global carbon tax. That is the way to globalization.
UN – Agenda 2030
Due to lock of results of the Agenda 21 UN decided to create next Agenda which should speed up the process of economical and financial activities which should improve the live style in the world. The major goals of Agenda 2030 are: Goals:
1. No Poverty
2. Zero Hunger
3. Good Health and Well-being
4. Quality Education
5. Gender Equality
6. Clean Water and Sanitation
7. Affordable and Clean Energy
8. Decent Work and Economic Growth
9. Industry, Innovation, and Infrastructure
10. Reducing Inequality
11. Sustainable Cities and Communities
12. Responsible Consumption and Production
13. Climate Action
14. Life Below Water
15. Life On Land
16. Peace, Justice, and Strong Institutions
17. Partnerships for the Goals
“The Economist” estimated that alleviating poverty and achieving the other sustainable developmental goals will require about $2–3 trillion per year for the next 15 years which “The Economist” called it “PURE FANTASY”. To achieve those goals the world will need one government,
The Green New Deal
In my opinion, “THE GREEN NEW DEAL” is strait way to SOCIALISM
• Providing investments for communities affected by climate change
• Repairing and upgrading existing infrastructure to withstand extreme weather
• Investing in renewable power sources
• Investing in manufacturing and industry to use clean energy
• Building or upgrading power grid to energy-efficient
• Upgrading all existing buildings so that they achieve maximum energy efficiency
• Supporting family farming
• Investing in transportation systems, namely zero-emission
• Restoring ecosystems through land preservation • Cleaning up existing hazardous waste
• Identifying unknown sources of pollution and emissions
• Working with the international community to help them achieve Green New Deal.
To achieve its goal, the plan calls for the United States to switch to 100% renewable energy in 10 years – Cost $93 Trillion by 2030. Pure Utopia.
Types of globalization: Economic, political, cultural
There are three types of globalization.
- Economic globalization. Here, the focus is on the integration of international financial markets and the coordination of financial exchange. Free trade agreements, such the North American Free Trade Agreement and the Trans-Pacific Partnership are examples of economic globalization. Multinational corporations, which operate in two or more countries, play a large role in economic globalization.
- Political globalization. This type covers the national policies that bring countries together politically, economically and culturally. Organizations such as NATO and the UN are part of the political globalization effort.
- Cultural globalization. This aspect of globalization focuses in a large part on the technological and societal factors that are causing cultures to converge. These include increased ease of communication, the pervasiveness of social media and access to faster and better transportation.
These three types influence one another. For example, liberalized national trade policies drive economic globalization. Political policies also affect cultural globalization, enabling people to communicate and move around the globe more freely. Economic globalization also affects cultural globalization through the import of goods and services that expose people to other cultures.
What is the G20?
The G20, or Group of Twenty, is an international forum that aims to foster international cooperation by addressing global economic issues, such as financial stability and climate change. The G20 is made up of 19 countries and the European Union, including most of the world’s largest economies.
The nations involved account for 60% of the planet’s population, 75% of global trade and 80% of world GDP. It was founded in 1999, following the 1997 financial crisis, and has met every year since then.
Since 2008, the G20 has held an annual summit that brings together heads of state to discuss important economic issues. The G20’s president is selected annually on a rotating basis, and that person’s home country hosts the summit.
In 2019, the summit was held in Osaka, Japan, and it addressed issues such as women’s empowerment, climate change and artificial intelligence. The 2020 summit was to be in Riyadh, Saudi Arabia, but was held virtually because of the pandemic. Three of the main themes addressed were empowering people, especially women and youth; safeguarding the planet; and long-term strategies to share the benefits of innovation and technological advancement. The 2021 summit will be held in Rome, Italy, and will focus on recovery from the pandemic and climate change.
The members of G20 are Argentina, Australia, Brazil, Canada, China, France, Germany, Japan, India, Indonesia, Italy, Mexico, Russia, South Africa, Saudi Arabia, South Korea, Turkey, the United Kingdom, the United States and the European Union. Spain is a permanent guest of the organization.
Effects of globalization
The effects of globalization can be felt locally and globally, touching the lives of individuals as well as the broader society in the following ways:
- Individuals. Here, a variety of international influences affect ordinary people. Globalization affects their access to goods, the prices they pay and their ability to travel to or even move to other countries.
- Communities. This level encompasses the impact of globalization on local or regional organizations, businesses and economies. It affects who lives in communities, where they work, who they work for, their ability to move out of their community and into one in another country, among other things. Globalization also changes the way local cultures develop within communities.
- Institutions. Multinational corporations, national governments and other organizations such as colleges and universities are all affected by their country’s approach to and acceptance of globalization. Globalization affects the ability of companies to grow and expand, a university’s ability to diversify and grow its student body and a government’s ability to pursue specific economic policies.
While the effects of globalization can be observed, analyzing the net impact is more complex. Proponents often see specific results as positive and critics of globalization view the same results as negative. A relationship that benefits one entity may damage another, and whether globalization benefits the world at large remains a point of contention.
Examples of globalization
Multinational corporations are a tangible example of globalization. Some examples include the following:
- McDonald’s had 39,198 fast-food restaurants in 119 countries and territories, according to its Securities and Exchange Commission filing at the end of 2020. It employed more than 2.2 million people at that time, the filing said.
- Ford Motor Company reported in 2021 that it works with about 1,200 tier 1 suppliers around the globe.
- Amazon’s recent expansion has it using tens of thousands of suppliers and employing more than nearly 1.3 million full- and part-time employees.
Through their influence on social and economic development in the countries that host them, multinational corporations embody the contradictions of globalization. They bring jobs, skills and wealth to the region they are investing or doing business in. But they also can destroy local businesses, exploit cheap labor and threaten indigenous cultures. The benefits they offer are often unsustainable because the loyalty of multinationals is to their investors and bottom lines and not to the local people, economies and cultures where they are doing business.
Another example of globalization is the response to the COVID-19 pandemic. Because the world was able to communicate across boundaries, nations were able to work together to quickly produce vaccines for the virus. In addition, doctors traveled where they were needed. For example, Cuba sent doctors to Italy at the beginning of the pandemic to assist with the crisis as it developed there.
However, countries also enacted strict travel restrictions and many closed their borders to cut down on the free movement of people and spread of the virus.
Benefits of globalization
Globalization enables countries to access less expensive natural resources and lower cost labor. As a result, they can produce lower cost goods that can be sold globally. Proponents of globalization argue that it improves the state of the world in many ways, such as the following:
- Solves economic problems. Globalization moves jobs and capital to places that need these resources. It gives rich countries access to lower cost resources and labor and poorer countries access to jobs and the investment funds they need for development.
- Promotes free trade. Globalization puts pressure on nations to reduce tariffs, subsidies and other barriers to free trade. This consequently promotes economic growth, creates jobs, makes companies more competitive and lowers prices for consumers.
- Spurs economic development. Theoretically, globalization gives poorer countries access to foreign capital and technology they would not otherwise have. Foreign investment can result in an improved standard of living for the citizens of those nations.
- Encourages positive trends in human rights and the environment. Advocates of globalization point to improved attention to human rights on a global scale and a shared understanding of the impact of people and production on the environment.
- Promotes shared cultural understanding. Advocates view the increased ability to travel and experience new cultures as a positive part of globalization that can contribute to international cooperation and peace.
Negative consequences of globalization
Many proponents view globalization as way to solve systemic economic problems. But critics see it as increasing global inequality. Among the critiques of globalization are the following issues:
- Destabilizes markets. Critics of globalization blame the elimination of trade barriers and the freer movement of people for undermining national policies and local cultures. Labor markets in particular are affected when people move across borders in search of higher paying jobs or companies outsource work and jobs to lower cost labor markets.
- Damages the environment. The transport of goods and people among nations generates greenhouse gas and all the negative effects it has on the environment. Global travel and trade also can introduce, sometimes inadvertently, invasive species to foreign ecosystems. Industries such as fishing and logging tend to go where business is most lucrative or regulations are less strict, which has resulted in overfishing and deforestation in some parts of the world.
- Lowers living standards. When companies move operations overseas to minimize costs, such moves can eliminate jobs and increase unemployment in sectors of the home country.
- Facilitates global recessions. Tightly integrated global markets carry a greater risk of global recessions. The 2007-2009 financial crisis and Great Recession is a good example of how intertwined global markets are and how financial problems in one country or region can quickly affect other parts of the world. Globalization reduces the ability of individual nations to effectively use monetary and fiscal policy to control the national economy.
- Damages cultural identities. Critics of globalization decry the decimation of unique cultural identities and languages that comes with the international movement of businesses and people. At the same time, the internet and social media are driving this trend even without the movement of people and commerce.
- Increases the likelihood of pandemics. Increased travel, critics say, has the potential to increase the risk of pandemics. The H1N1 (swine flu) outbreak of 2009 and coronavirus in 2020 and 2021 are two examples of serious diseases that spread to multiple nations quickly.
Future of globalization
Technological advances, particularly blockchain, mobile communication and banking, are fueling economic globalization.
Nonetheless, rising levels of protectionism and anti-globalization sentiment in several countries could slow or even reverse the rapid pace of globalization. Nationalism and increasing trends toward conservative economic policies are driving these anti-globalization efforts.
Global trade is also made more difficult and facing rising threats from other factors, such as these:
- climate change
- decaying infrastructure
- cyber attacks
- human rights abuses