PHA-Exchange> 23 - In preparation of PHA II

[Claudio]

ONE-LINERS (almost) 

ON GLOBALIZATION: USE THEM

 

The following bits and pieces, for you to use in your debating opponents on the issue of Globalization, come --of all parts...believe it or not-- from the IMF quarterly publication "Finance and Development", Vol.38, No.4, December 2001. (also found in www.imf.org/fandd). I have just excerpted them for you. They are almost all verbatim although I may have somewhat changed the context when editing.

Claudio

 

1. Globalization began gaining momentum in the 1960s when businesses in search of larger markets expanded their reach beyond national borders. (Moderator: As such, it is nothing new, but just  another name for  the latest stage of Capitalism). But now, foreign capital flows into poor countries contingent on investors being granted monopoly rights and protection from competition.

 

2. Globalization has heightened the risks of instability and marginalization the world over. The structural reforms that come with Globalization have negatively affected the most vulnerable segments of society.  

 

3. GDP growth is now slow in almost all regions of the globe accompanied by a sharp decline in trade growth. Also, income distribution has become much more unequal and skewed.

 

4. Further, Globalization has exacerbated unsustainable external debt at a time that affected countries have received mostly unfulfilled promises of development assistance (ODA).

 

5. Unavoidable difficulties accompany Globalization. For example, income disparities have increased within and between countries and  the ratio of capital flight to GNP has increased dramatically (often to over 100%); another example is that Globalization has brought with it an additional sizeable brain drain.

 

6. At present, the playing field in international trade brought about by Globalization is NOT level. 

 

7. For example: Africa's non-oil exports in 2000 came to about $69 billion. If Africa had retained its share of non-oil world exports at 1980 levels, exports in 2000 would have been $161 billion, or $92 billion more than their actual level. Let's be clear: without substantial improvement in its trade performance and its terms of trade with rich countries, Africa will be unable to reverse its weak growth performance.

 

8. Industrial countries' current agricultural trade policies act as disincentives to poor countries. The rich countries' protectionism in agriculture is particularly, but not only, harmful to Africa. (Protection in textiles also remains significant).

 

9. Import tariffs in the EU and the US are low or zero for agricultural products that they do not produce and are much higher on imports that compete with their domestic products. The tariff structure also discourages import of higher-value-added processed products from the poor countries. These countries have additionally erected non-tariff barriers that keep out agricultural products from the Third World.  It is middle-income countries that have reaped most of the benefits of the few preferences given by the rich countries.  

 

10. If we are to go anywhere, developing countries just have to play a more active role in demanding concessions in trade negotiations. 

 

11. The abolition of trade barriers for developing countries could yield income flows that are 3x the amount of external aid!

 

12. Moreover, to reduce extreme poverty  (people earning less than $1 a day) by one half by 2015, poor countries will have to raise their real GDP growth rate by 7-8%/yr sustainably. (Moderator:...and that is simply not happening).

 

13.  ...and poverty is more than inadequate income or human development 

--it is also vulnerability and lack of voice, power and representation (World Bank).

 

14. Solutions in the right direction will have to include: Giving poor countries free access to industrial country markets; providing them deeper and faster debt relief and; substantially increasing ODA. (Moderator:...and that is not happening).





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