INST 310, Section 2: Globalization and East Asia
Globalization and the Individual
Zygmunt Bauer’s book Globalization: The Human Consequences outlines the evolution in the human relationship between time, space, and each other. The general argument is that Globalization compresses the time/space relationship so that the cost of mobility approaches negligible proportions, as a result those with capital (the most mobile of variables) become tourists capable of going to any place in almost any amount of time, separating themselves from the numerous vagabonds (those members of the globe without access to investment capital). In Zygmunt’s book, globalization is the great polarizer not the great equalizer.
Bauer suggests that the difference lies in our views of universalization (a term he says predates the use of “globalization”) and globalization. Universalization, the movement and the term, was aimed at creating a universal order of things--reminiscent of the convergence of living standards, laws, and labor practices touted by some of our readings this semester. On the other hand, globalization talks about the global effects (“notoriously unintended and unanticipated”) of this and that variable. One is an active global initiative to make universal order (and thus some social heaven Earth harmony) and the other is a term to describe what is happening on a global scale.
Bauer makes a strong argument for globalization as a polarizer, describing social spaces as being more and more restrictive and the access to those with power as being limited to those on the invitation list.
Bauer suggests that the difference lies in our views of universalization (a term he says predates the use of “globalization”) and globalization. Universalization, the movement and the term, was aimed at creating a universal order of things--reminiscent of the convergence of living standards, laws, and labor practices touted by some of our readings this semester. On the other hand, globalization talks about the global effects (“notoriously unintended and unanticipated”) of this and that variable. One is an active global initiative to make universal order (and thus some social heaven Earth harmony) and the other is a term to describe what is happening on a global scale.
Bauer makes a strong argument for globalization as a polarizer, describing social spaces as being more and more restrictive and the access to those with power as being limited to those on the invitation list.
China's trade statistics
As I mentioned briefly in class today, in case you were wondering about the state of China's trade with other third-world countries, this web page has the newest available statistics for the period of January through October of 2008. I hope the Chinese names for the various countries are not too confusing. Note especially the annual growth rate in bilateral trade in the third column from right:
http://zhs.mofcom.gov.cn/aarticle/Nocategory/200812/20081205966046.html
By the way, the New York Times has a story about "mountain-village" cell phones in China that I mentioned earlier this semester:
http://www.nytimes.com/2009/04/28/technology/28cell.html
http://zhs.mofcom.gov.cn/aarticle/Nocategory/200812/20081205966046.html
By the way, the New York Times has a story about "mountain-village" cell phones in China that I mentioned earlier this semester:
http://www.nytimes.com/2009/04/28/technology/28cell.html
US-China Relations expanded
The United States and China are engaged, quite literally. However, many of the specifics are yet to be decided. The guest list will most likely include the countries of the world and the date will probably be set sometime in the near future. The ceremony still lacks an officiator, decorations or even an agenda, though. And no one is really even sure if the occasion will call for happiness or grief. So don’t get your hopes up for a post-ceremony reception with an open bar and dancing.
One thing is determined, though, and that is the engagement. Journalists, economists and politicians recognize that China and the U.S. will inevitably have to increase their engagement with one another. Mark Landler’s “New York Times” piece, “Chinese Savings Helped Inflate American Bubble,” did a good job in explaining how intertwined China and the U.S. are. And although it was this intertwining that caused much of the financial mess the world is currently in, disengagement is not an option.
The U.S. and China’s complicated relationship will not be easy to work through. Many have commented on what goals and problems should arise between the U.S. and China. Below are a few sources that address what some believe should be the main objectives and concerns of the US and China’s inevitable marriage.
Road Map For U.S.-China Relations
Forbes magazine published a Q&A with John Chen, a chief executive officer at Sybase who helped write a roadmap for the Obama administration on US-China relations. The brief Q&A succinctly addresses how the US and China must interact, and that they must avoid debates and issues caught up in ideology. Chen also spoke on some of the dangers lying on the wayside – how the Beijing has a lot of pressure to keep the China economy from sinking too low, and how countries around the world could be prone to protectionism. It was interesting how Chen noted that although the US and China will still be engaged in trade 10 years from now, China’s economy will probably have shifted to a service-oriented society.
Chen’s commentary made the US and China relations seem very simple. However, China has to balance the demands from home with demands from abroad.
Will the Chinese Communist Party Survive the Crisis?
In MinXin Pei piece, published March 12 in the Foreign Affairs magazine, Pei points out how the slowed economic growth and increasing economic instability threaten the rule of the CCP. Pei says that China has lulled its citizens into political apathy through a booming economy; a faltering economy could stir up dissension in the top ranks of the Chinese government. The government is facing pressure to quell the dissension by depreciating its currency once again and driving down export costs in order to stimulate the economy – exactly what the US does not want, if any balance of trade is to be reached.
While the Chinese are facing pressure at home, the US will likely meet conflict on ideological issues.
The G-2 Mirage
Elizabeth Economy wrote a piece in The Foreign Affairs magazine on how the US and China are incompatible on a number of basic ideological issues. An increase in engagement will necessarily include an increase in the number of disagreements and tension on issues such as human rights, Tibet, political systems and more. Economy argues that because of the basic inconsistencies between Beijing and Washington, increasing the bilateral relationship of the two countries is impossible and is not the solution.
Incompatibility is not necessarily the end-all of US-China relations.
Our Opportunity With China
Elizabeth Economy again wrote, this time with Maurice R. Greenberg Senior Fellow for China Studies Adam Segal, on how the US should take advantage of the political and economic instability in China to deal with some of the ideological differences between the two. It remains a delicate balancing act, though, the US’s own economic stability is tied to China’s stability, making ideological demands at a time such as this could prove disastrous.
After all this talk about the importance and necessity of the US-China relationship, some debate has emerged on whether only the US will have to play the central role with China.
The End of ‘Chimerica’
In his Harvard law blog, Niall Ferguson wrote on how the current world situation could offer alternatives to the US for negotiators with China. Ferguson coined the term “Chimerica” to describe the colossus of a relationship that exists between the US and China. However, in this piece, Ferguson expresses doubt that the US is the only solution to financial mess that so deeply involves China. He notes that the entire western world is involved with heavy trade and borrowing from China. He also notes that the dollar is no longer the only currency choice – the euro has made an appearance in the international economy.
Sources:
Road Map For U.S.-China Relations, John Chen, http://www.forbes.com/2009/03/11/us-china-relations-markets-chen-csis.html
Will the Chinese Communist Party Survive the Crisis?, Minxin Pei, http://www.foreignaffairs.com/articles/64862/minxin-pei/will-the-chinese-communist-party-survive-the-crisis?page=2
The G-2 Mirage, Elizabeth C. Economy and Adam Segal, http://www.foreignaffairs.com/articles/64946/elizabeth-c-economy-and-adam-segal/the-g-2-mirage
Our Opportunity With China, Elizabeth C. Economy and Adam Segal, http://www.cfr.org/publication/10459/our_opportunity_with_china.html
The End of ‘Chimerica’, Niall Ferguson, http://blogs.law.harvard.edu/guorui/2008/09/29/the-end-of-chimerica/
One thing is determined, though, and that is the engagement. Journalists, economists and politicians recognize that China and the U.S. will inevitably have to increase their engagement with one another. Mark Landler’s “New York Times” piece, “Chinese Savings Helped Inflate American Bubble,” did a good job in explaining how intertwined China and the U.S. are. And although it was this intertwining that caused much of the financial mess the world is currently in, disengagement is not an option.
The U.S. and China’s complicated relationship will not be easy to work through. Many have commented on what goals and problems should arise between the U.S. and China. Below are a few sources that address what some believe should be the main objectives and concerns of the US and China’s inevitable marriage.
Road Map For U.S.-China Relations
Forbes magazine published a Q&A with John Chen, a chief executive officer at Sybase who helped write a roadmap for the Obama administration on US-China relations. The brief Q&A succinctly addresses how the US and China must interact, and that they must avoid debates and issues caught up in ideology. Chen also spoke on some of the dangers lying on the wayside – how the Beijing has a lot of pressure to keep the China economy from sinking too low, and how countries around the world could be prone to protectionism. It was interesting how Chen noted that although the US and China will still be engaged in trade 10 years from now, China’s economy will probably have shifted to a service-oriented society.
Chen’s commentary made the US and China relations seem very simple. However, China has to balance the demands from home with demands from abroad.
Will the Chinese Communist Party Survive the Crisis?
In MinXin Pei piece, published March 12 in the Foreign Affairs magazine, Pei points out how the slowed economic growth and increasing economic instability threaten the rule of the CCP. Pei says that China has lulled its citizens into political apathy through a booming economy; a faltering economy could stir up dissension in the top ranks of the Chinese government. The government is facing pressure to quell the dissension by depreciating its currency once again and driving down export costs in order to stimulate the economy – exactly what the US does not want, if any balance of trade is to be reached.
While the Chinese are facing pressure at home, the US will likely meet conflict on ideological issues.
The G-2 Mirage
Elizabeth Economy wrote a piece in The Foreign Affairs magazine on how the US and China are incompatible on a number of basic ideological issues. An increase in engagement will necessarily include an increase in the number of disagreements and tension on issues such as human rights, Tibet, political systems and more. Economy argues that because of the basic inconsistencies between Beijing and Washington, increasing the bilateral relationship of the two countries is impossible and is not the solution.
Incompatibility is not necessarily the end-all of US-China relations.
Our Opportunity With China
Elizabeth Economy again wrote, this time with Maurice R. Greenberg Senior Fellow for China Studies Adam Segal, on how the US should take advantage of the political and economic instability in China to deal with some of the ideological differences between the two. It remains a delicate balancing act, though, the US’s own economic stability is tied to China’s stability, making ideological demands at a time such as this could prove disastrous.
After all this talk about the importance and necessity of the US-China relationship, some debate has emerged on whether only the US will have to play the central role with China.
The End of ‘Chimerica’
In his Harvard law blog, Niall Ferguson wrote on how the current world situation could offer alternatives to the US for negotiators with China. Ferguson coined the term “Chimerica” to describe the colossus of a relationship that exists between the US and China. However, in this piece, Ferguson expresses doubt that the US is the only solution to financial mess that so deeply involves China. He notes that the entire western world is involved with heavy trade and borrowing from China. He also notes that the dollar is no longer the only currency choice – the euro has made an appearance in the international economy.
Sources:
Road Map For U.S.-China Relations, John Chen, http://www.forbes.com/2009/03/11/us-china-relations-markets-chen-csis.html
Will the Chinese Communist Party Survive the Crisis?, Minxin Pei, http://www.foreignaffairs.com/articles/64862/minxin-pei/will-the-chinese-communist-party-survive-the-crisis?page=2
The G-2 Mirage, Elizabeth C. Economy and Adam Segal, http://www.foreignaffairs.com/articles/64946/elizabeth-c-economy-and-adam-segal/the-g-2-mirage
Our Opportunity With China, Elizabeth C. Economy and Adam Segal, http://www.cfr.org/publication/10459/our_opportunity_with_china.html
The End of ‘Chimerica’, Niall Ferguson, http://blogs.law.harvard.edu/guorui/2008/09/29/the-end-of-chimerica/
The Deterritorialization of Culture
In the Cowen and Barber debate the issue of culture and its relation to place was brought up. Barber discusses this phenomenon in his article Jihad vs. McWorld (Barber). As globalization transfers ideas and culture around the globe, cultures are able to exist in places that they didn’t before. Cultures are therefore no longer bound to any one location, but rather can exist almost anywhere. This has been referred to as the deterritorialization of culture.
One main factor in making the deterritorialization of culture possible is that globalization has gone a long way towards shortening “distance”. Inter-continental communication and travel have become simple and common occurrences. These combined have made distance less important. This phenomenon has had an influence on culture. “Cultural experience is in various ways ‘lifted out’ of its traditional ‘anchoring’ in particular localities….Modern culture is less determined by location because location is increasingly penetrated by ‘distance’” (Cameron & Stein 273). Culture is becoming something that can be partaken of by individuals based solely of their own interest and choice. Individuals do not have to move physically in order to participate.
An article by Tomlinson looks at this change in the nature of culture. He looks at the relationship between both identity and culture and geography. He sees the change in the relationship between these as having important implications for the relationship that people and cultures have with their respective nation states.
Nation states have largely used culture and identity as the main means of connecting their citizens to each other and to the nation state at large. Tomlinson, along with Cameron and Stein, believe that culture’s relationship to nation states and any changes it may have will have large implications. “Since the eighteenth century, national identity has been the most spectacularly successful modern mode of orchestrating belonging” (Cameron & Stein 274). They believe this relationship is changing because of the deterritorialization of culture. As individuals begin to identify themselves and their culture without regard to their location, a large role that nation states play is lost.
It seems that this change in the understanding of culture and its relationship to geography has serious implications not only just for individuals, but also for nation states. Individuals can take part in cultures that exist in multiple locals, and identify themselves more easily with groups that exist on a global scale, as opposed to just a national one. “Political subjects can now experience and express, without contradiction, both attachments to the nation, multi-ethnic allegiances and cosmopolitan sensibilities. The really interesting cultural-political question that emerges is of how nimble and reflexively attuned state apparatuses are capable of becoming in response to these changes” (Cameron & Stein 276).
“If “national” borders coincide largely with the political — less and less with the economic and the cultural, and only partly with the social — boundaries, then the triggers to national identity cannot help but be less frequent over time” and “cannot help but become less important” (Thomlinson 23).
States must realize this change in individuals’ identities and be flexible enough to allow it if they want to be able to related to their citizens in a way that is relative. Nation states no longer play a large role in citizens’ identities and therefore must find other ways to become important to their citizens to maintain their loyalty. “It is possible that national identities may become largely instrumental rather than constitutive, within a broader field of salient identities. Loyalty to a state for what it can do rather than for what and whom it represents is a significantly weaker basis, however, for political authority” (Tomlinson 23). If states were to follow this advice, we could expect to see a rise in the welfare that states provide to their citizens. Individuals with distinct identities that are self-chosen and deterritorialized would find their location important only because of the political system there and the benefits that it affords. Nation states must strive to find some new means of connecting with citizens in order to maintain their cohesiveness and their importance.
Barber, Benjamin R. “Jihad vs. McWorld.” The Atlantic. March 1992. http://www.theatlantic.com/doc/199203/barber
Cameron, David and Janice Gross Stein. “Globalization, Culture and Society: The State As Place Amidst Shifting Spaces.” Canadian Public Policy – Analyse de Politiques, Vol. XXVI Supplement/Numero Special 2. 2000. http://economics.ca/cgi/jab?journal=cpp&view=v26s2/CPPv26s2p015.pdf
Thomlinson, John. “Globalization and Cultural Identity.” The Global Transformations Reader An Introduction to the Globalization Debate. New York: Polity P, 2003. Chapter 23. http://www.polity.co.uk/global/pdf/GTReader2eTomlinson.pdf
One main factor in making the deterritorialization of culture possible is that globalization has gone a long way towards shortening “distance”. Inter-continental communication and travel have become simple and common occurrences. These combined have made distance less important. This phenomenon has had an influence on culture. “Cultural experience is in various ways ‘lifted out’ of its traditional ‘anchoring’ in particular localities….Modern culture is less determined by location because location is increasingly penetrated by ‘distance’” (Cameron & Stein 273). Culture is becoming something that can be partaken of by individuals based solely of their own interest and choice. Individuals do not have to move physically in order to participate.
An article by Tomlinson looks at this change in the nature of culture. He looks at the relationship between both identity and culture and geography. He sees the change in the relationship between these as having important implications for the relationship that people and cultures have with their respective nation states.
Nation states have largely used culture and identity as the main means of connecting their citizens to each other and to the nation state at large. Tomlinson, along with Cameron and Stein, believe that culture’s relationship to nation states and any changes it may have will have large implications. “Since the eighteenth century, national identity has been the most spectacularly successful modern mode of orchestrating belonging” (Cameron & Stein 274). They believe this relationship is changing because of the deterritorialization of culture. As individuals begin to identify themselves and their culture without regard to their location, a large role that nation states play is lost.
It seems that this change in the understanding of culture and its relationship to geography has serious implications not only just for individuals, but also for nation states. Individuals can take part in cultures that exist in multiple locals, and identify themselves more easily with groups that exist on a global scale, as opposed to just a national one. “Political subjects can now experience and express, without contradiction, both attachments to the nation, multi-ethnic allegiances and cosmopolitan sensibilities. The really interesting cultural-political question that emerges is of how nimble and reflexively attuned state apparatuses are capable of becoming in response to these changes” (Cameron & Stein 276).
“If “national” borders coincide largely with the political — less and less with the economic and the cultural, and only partly with the social — boundaries, then the triggers to national identity cannot help but be less frequent over time” and “cannot help but become less important” (Thomlinson 23).
States must realize this change in individuals’ identities and be flexible enough to allow it if they want to be able to related to their citizens in a way that is relative. Nation states no longer play a large role in citizens’ identities and therefore must find other ways to become important to their citizens to maintain their loyalty. “It is possible that national identities may become largely instrumental rather than constitutive, within a broader field of salient identities. Loyalty to a state for what it can do rather than for what and whom it represents is a significantly weaker basis, however, for political authority” (Tomlinson 23). If states were to follow this advice, we could expect to see a rise in the welfare that states provide to their citizens. Individuals with distinct identities that are self-chosen and deterritorialized would find their location important only because of the political system there and the benefits that it affords. Nation states must strive to find some new means of connecting with citizens in order to maintain their cohesiveness and their importance.
Barber, Benjamin R. “Jihad vs. McWorld.” The Atlantic. March 1992. http://www.theatlantic.com/doc/199203/barber
Cameron, David and Janice Gross Stein. “Globalization, Culture and Society: The State As Place Amidst Shifting Spaces.” Canadian Public Policy – Analyse de Politiques, Vol. XXVI Supplement/Numero Special 2. 2000. http://economics.ca/cgi/jab?journal=cpp&view=v26s2/CPPv26s2p015.pdf
Thomlinson, John. “Globalization and Cultural Identity.” The Global Transformations Reader An Introduction to the Globalization Debate. New York: Polity P, 2003. Chapter 23. http://www.polity.co.uk/global/pdf/GTReader2eTomlinson.pdf
Not So Fast: A little more research needed
Christmann and Taylor’s Globalization and the Environment paper explains how globalization positively affects companies’ intention and actual adherence to environmental policies. Christmann and Taylor seem to wrap up their thesis here, assuming that the implementation of an EMS is a goal worthy of itself. However, it seems scholars have yet to resolve the debate over the actual effectiveness of EMS’s. Furthermore, it seems that significant evidence has yet to conclusively prove a positive relationship between EMS and actual, sustained and forward-moving environmental self-regulation. When scholars automatically equate EMS implementation with a truly environmentally aware and conscious company, they do so prematurely. In order to fill this data gap, scholars should conduct thorough, detailed research on the true effectiveness of environmental metastandards, such as the ISO 14000.
Christmann and Taylor address seven hypotheses in their paper, and the data Christmann and Taylor collected support all but one of the hypotheses. The data did not even technically disprove the one hypothesis; the data merely did not show a significant positive coefficient. Such success (soundly proving all but one hypothesis) intimates that globalization, through its encouragement of EMS implementation, aids rather than harms the environment. However, the article admitted that government environmental regulations differed from country to country, meaning that a government regulation might not really be as effective as it could be. Also, the article admitted that companies can sometimes simply pursue EMS certification for the sake of the label and not really for the sake of protecting the environment. “Certification to an international metastandard such as ISO 14001 can be an end in itself, with little commitment to long-term company-wide environmental self regulation.” (Christmann, 454)
In fact, in “Panacea, common sense, or just a label,” authors Rondinelli and Vastag support the theory that EMS’s such as ISO 14000 do not actually guarantee better environmental performance. They examined a plant in South Carolina that had practiced policy through an EMS since 1995, and had eventually formally implemented EMS. The positive results of the implementation of ISO 14000 were confined to either intangible “awareness” results or changes within the dynamic of the company.
“The primary benefits at Mt Holly seem to be in reinforcing and strengthening good environmental management practices, reviewing and improving management procedures, increasing operation efficiency and effectiveness, and enhancing employee awareness of the environmental impacts of their activities.” (Rondinelli, Conclusion)
It should be noted that the reinforcement of good environmental management practices does not intonate innovation for good environmental management practices. Rondinelli and Vastag concede that their case study examined a company with an already environmentally friendly history.
Even Christmann and Taylor mentioned the fact that companies who have already achieved the ISO 9000 status would find it easier to implement ISO 14000 (Christmann, 449) Perhaps the case is that companies who already have a decent certification for management efficiency are simply trading the lower 9000 label for a fancier 14000 label.
In fact, as Rondinelli and Vastag admit, the ISO 14000 might bring attention to inefficient and wasteful practices within a company, but the EMS allows companies to remain stagnant in their environmental practices. “It does not measure or ensure improved environmental performance, nor does it guarantee that a certified facility will always remain in regulatory compliance.” (Rondinelli, Conclusion)
Another article that examined the effects of EMS implementation likewise emphasized how EMS’s biggest point of impact is on the company’s operational efficiency and effectiveness. In “Assessing the impact of environmental management systems on corporate and environmental performance,” authors Melnyk, Sroufe and Calantone stress the benefits an EMS may have on improving a firm’s operations. mention a formal EMS’s benefits for reducing waste and increased use of environmentally friendly options. (Melnyk, Concluding Comments)
However the article admits that actual environmental data is hard to come by and further research should examine the relationship between EMS’s and actual improvement of the environment. (Melnyk, Abstract)
It seems obvious that EMS’s can help a company pay homage to the environment through a formal signing off on the EMS’s requirements. And although an EMS can bring more environmental awareness and operational efficiency, the EMS in itself does not force the firm to be innovative or forward-thinking in its environmental practices. So before scholars equate EMS’s with improving environmental policies, and before they equate globalization with EMS’s and so with improving environmental policies, further research is required to establish the actual benefits between metastandards and EMS’s and true and practical care for the environment.
Sources:
Christmann, Petra; Taylor, Glen. “Globalization and the Environment: Determinants of Firm Self-Regulation in China”
Rondinelli, Dennis; Vastag, Gyula. “Panacea, common sense, or just a label?: The value of ISO 14001 environmental management systems.” http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6V9T-419BG65-5&_user=491431&_coverDate=10%2F31%2F2000&_rdoc=1&_fmt=full&_orig=search&_cdi=5907&_sort=d&_docanchor=&view=c&_acct=C000023838&_version=1&_urlVersion=0&_userid=491431&md5=63670edf231f2e15ca942c159db8dad7#toc16
Melnyk, Steven A.; Sroufe, Robert; Calantone, Roger. “Assessing the impact of environmental management systems on corporate and environmental performance.” http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6VB7-47CHCX9-1&_user=491431&_coverDate=05%2F31%2F2003&_rdoc=1&_fmt=full&_orig=search&_cdi=5919&_sort=d&_docanchor=&view=c&_acct=C000023838&_version=1&_urlVersion=0&_userid=491431&md5=8bb897b2e12c47ebc8f43eb49d26fc22#toc23
Christmann and Taylor address seven hypotheses in their paper, and the data Christmann and Taylor collected support all but one of the hypotheses. The data did not even technically disprove the one hypothesis; the data merely did not show a significant positive coefficient. Such success (soundly proving all but one hypothesis) intimates that globalization, through its encouragement of EMS implementation, aids rather than harms the environment. However, the article admitted that government environmental regulations differed from country to country, meaning that a government regulation might not really be as effective as it could be. Also, the article admitted that companies can sometimes simply pursue EMS certification for the sake of the label and not really for the sake of protecting the environment. “Certification to an international metastandard such as ISO 14001 can be an end in itself, with little commitment to long-term company-wide environmental self regulation.” (Christmann, 454)
In fact, in “Panacea, common sense, or just a label,” authors Rondinelli and Vastag support the theory that EMS’s such as ISO 14000 do not actually guarantee better environmental performance. They examined a plant in South Carolina that had practiced policy through an EMS since 1995, and had eventually formally implemented EMS. The positive results of the implementation of ISO 14000 were confined to either intangible “awareness” results or changes within the dynamic of the company.
“The primary benefits at Mt Holly seem to be in reinforcing and strengthening good environmental management practices, reviewing and improving management procedures, increasing operation efficiency and effectiveness, and enhancing employee awareness of the environmental impacts of their activities.” (Rondinelli, Conclusion)
It should be noted that the reinforcement of good environmental management practices does not intonate innovation for good environmental management practices. Rondinelli and Vastag concede that their case study examined a company with an already environmentally friendly history.
Even Christmann and Taylor mentioned the fact that companies who have already achieved the ISO 9000 status would find it easier to implement ISO 14000 (Christmann, 449) Perhaps the case is that companies who already have a decent certification for management efficiency are simply trading the lower 9000 label for a fancier 14000 label.
In fact, as Rondinelli and Vastag admit, the ISO 14000 might bring attention to inefficient and wasteful practices within a company, but the EMS allows companies to remain stagnant in their environmental practices. “It does not measure or ensure improved environmental performance, nor does it guarantee that a certified facility will always remain in regulatory compliance.” (Rondinelli, Conclusion)
Another article that examined the effects of EMS implementation likewise emphasized how EMS’s biggest point of impact is on the company’s operational efficiency and effectiveness. In “Assessing the impact of environmental management systems on corporate and environmental performance,” authors Melnyk, Sroufe and Calantone stress the benefits an EMS may have on improving a firm’s operations. mention a formal EMS’s benefits for reducing waste and increased use of environmentally friendly options. (Melnyk, Concluding Comments)
However the article admits that actual environmental data is hard to come by and further research should examine the relationship between EMS’s and actual improvement of the environment. (Melnyk, Abstract)
It seems obvious that EMS’s can help a company pay homage to the environment through a formal signing off on the EMS’s requirements. And although an EMS can bring more environmental awareness and operational efficiency, the EMS in itself does not force the firm to be innovative or forward-thinking in its environmental practices. So before scholars equate EMS’s with improving environmental policies, and before they equate globalization with EMS’s and so with improving environmental policies, further research is required to establish the actual benefits between metastandards and EMS’s and true and practical care for the environment.
Sources:
Christmann, Petra; Taylor, Glen. “Globalization and the Environment: Determinants of Firm Self-Regulation in China”
Rondinelli, Dennis; Vastag, Gyula. “Panacea, common sense, or just a label?: The value of ISO 14001 environmental management systems.” http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6V9T-419BG65-5&_user=491431&_coverDate=10%2F31%2F2000&_rdoc=1&_fmt=full&_orig=search&_cdi=5907&_sort=d&_docanchor=&view=c&_acct=C000023838&_version=1&_urlVersion=0&_userid=491431&md5=63670edf231f2e15ca942c159db8dad7#toc16
Melnyk, Steven A.; Sroufe, Robert; Calantone, Roger. “Assessing the impact of environmental management systems on corporate and environmental performance.” http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6VB7-47CHCX9-1&_user=491431&_coverDate=05%2F31%2F2003&_rdoc=1&_fmt=full&_orig=search&_cdi=5919&_sort=d&_docanchor=&view=c&_acct=C000023838&_version=1&_urlVersion=0&_userid=491431&md5=8bb897b2e12c47ebc8f43eb49d26fc22#toc23
Sweatshops: A "Necessary Evil"?
Labor issues are one of the most contentious aspects of globalization, and of these sweatshops are perhaps the most emotionally charged component. In his articles, Kristof discusses the issue of sweatshops and globalization. He takes a view that he predicts will not easily be accepted. He argues that sweatshops should not be seen as completely detrimental to the labor situation of less developed countries (LDCs). Instead he emphasizes the important role that sweatshops sometime play in providing low-cost labor in these areas.
Countries at different stages of economic development and different levels of globalization naturally depend on different economic structures for their success. LDCs are at a disadvantage in the global market. They do not have the human capital to be able to compete in the service industry, so they must instead focus on manufacturing and production. If these countries do not have natural resources to depend on, they must instead look to their labor force to succeed. One of the major hindrances that LDCs face is their lack of infrastructure. By not having the facilities and technology that other countries have, LDCs’ production is not able to be as cost efficient. This means that their products’ prices will be higher, making them not competitive in the global market. In order to make up for the heightened costs, these countries often resort to lowering the amount of money that they spend on labor conditions and the wages that they pay to workers. This is where sweatshops arise.
Those who oppose the existence of sweatshops believe that labor standards should be made and enforced across the board. They believe that by making compliance to these standards required, all countries will be forced to improve their labor conditions. Kristof argues that this is not feasible. The economic disadvantage that LDCs are in precludes them from being able to comply and still be able to be competitive in the global market. The prices of their goods would be much higher than other countries and they would have no business. He instead sees sweatshops and low-cost labor as something of a “necessary evil” that provides the initial economic opportunities that LCDs need to catch up with other countries.
One study I found compared the wages of workers in apparel sweatshops with the average wages in the country and found them to be close to, and sometimes even more than, average (Powell and Skarbek). Even though sweatshops may be paying wages much less than what would be paid at similar factories in other countries, the wages are about or better than normal for that country. This means that sweatshops actually provide jobs with decent wages for the individuals in the countries in which they operate. They argue that, “even where earnings are less than 100 percent of average wages, as long as workers voluntarily choose to work at the sweatshop, it makes the individual worker better off.” Sweatshops provide workers with a job, albeit a low-wage job. If workers are willing to work for the wages, then these jobs provide them with an opportunity to improve their economic situation.
Hellmer’s article points out that while under free market conditions this argument makes sense, this is not always the case. Sometimes governments actively oppress their citizens and artificially decrease wages. In instances like this, for example Burma, sweatshops should be opposed.
For LDCs to succeed, they must start to develop economically. Sweatshops and low-cost labor tend to be the only way they have to do so. Hopefully, after LDCs start to improve their economic situation wages which naturally begin to rise. But by artificially raising wages, their economic development might actually be stunted.
Hellmer, Ellennita Muetze. “Establishing Government Accountabiliy in the Anti-sweatshop Campaign: Toward a Logical, Activist Approach to Improving the Working Conditions of the Poor”. Journal of Libertarian Studies, vol. 19, no. 3 (summer 2005): 33-47. http://mises.org/journals/jls/19_3/19_3_2.pdf
Kristof, Nicholas D. “Where Sweatshops are a Dream”. The New York Times. Jan 14, 2009. http://www.nytimes.com/2009/01/15/opinion/15kristof.html?_r=1
Kristof, Nicholas D. “My Sweatshop Column”. The New York Times. Jan 14, 2009. http://kristof.blogs.nytimes.com/2009/01/14/my-sweatshop-column/?ref=opinion
Powell, Benjamin and David Skarbek. “Sweatshops and Third World Living Standards: Are the Jobs Worth the Sweat?”. Journal of Labor Research, 2006, vol. 27, issue 2, pages 263-274. http://www.independent.org/publications/working_papers/article.asp?id=1369
Globalization and Fiscal Transfers
The discussion about the effect of globalization on fiscal transfers is a part of a larger debate focusing on economic globalization’s effect on domestic fiscal policy. Of the theories surrounding the debate, our author suggests they can be divided into two types: political and non-political. From what I’ve read, it seems that the political arguments tend to support compensation theory, which says government strives to compensate the losers of economic integration (or globalization, market liberalization, trade openness, etc) while many from the economic side seem to support the efficiency hypothesis which describes how government face pressure to reduce taxes and retain mobile capital.
The problem with this division of political (compensation) and economic (efficiency) is that often the two are interacting so that many scholars are finding it difficult to support one or the other hypothesis. The following are some are papers I’ve found that seem to reoccur when reading about this debate.
Garrett, Geoffrey “Globalization and Government Spending Around the World”, Studies in Comparative International Development, Winter 2001, Vol. 35, pp. 3-29
In this article, Geoffrey Garrett seeks to compare the “two major contending perspectives” on integration: compensation and efficiency. Garrett examines government spending in 100 countries from 1970-1995 and finds that high levels of trade “are associated to high levels of government spending”, but in places where trade grew quickly, government spending lagged behind. This suggests that efficiency constraints associated with fast trade growth seemed to outweigh the political pressure for compensation generated by the inequalities usually associated with trade. For this reason, Garrett asserts that globalization (market integration--discussed here as a measure of trade as a percentage of GDP) should be measured in changes rather than levels (see Rodrik), as a large change may indicate fast trade growth and therefore be subject to less political demands for compensation.
Kaufman, Robert, “Globalization, Domestic Politics, and Social Spending in Latin America: A Time-Series Cross-Section Analysis 197397”, World Politics 53 July 2001, pp. 553-87
Kaufman finds that trade integration reduces pensions and other fiscal transfers, and capital account liberalization (freer flow of capital both in and out of the country) also compounds the negative effects of trade integration. As economies and capital markets become more closely linked and capital becomes more mobile, governments can face credible pressure from businesses threatening to liquidate assets and move production. The study also finds however that integration in capital markets “does appear to encourage increases (or discourage decreases)” in health and education spending, presumably as a way to meet labor quality requirements of investors.
Rodrik, Dani, “Trade, Social Insurance, and the Limits to Globalization”, National Bureau of Economic Research, Working paper 5905, 1997 (2001)
Rodrik uses a cross-section analysis to explain the relationship between the degree of openness and the size of government. He finds that high levels of openness are strongly associated with larger governments. The argument states that as trade increases as a proportion of GDP, risk or economic uncertainty also rises. In response to the increased exposure to external risk, governments come under pressure to increase fiscal transfers thereby expanding government and creating the welfare state; however, Rodrick also asserts that underneath the constraints of providing more compensation in face of more risk exposure, governments are forced to raise taxes on labor and lower taxes on capital (see Shulze).
Schulze, Gunther, “Globalisation of the Economy and the Nation State”, The World Economy 22, No. 3, 1999, pp. 295-353
Schulze makes a strong argument against the overstatement of economic globalization’s effect on domestic fiscal policy by stating that the although the corporate income tax rate has converged across countries (consistent with theory), it still only constitutes a small percentage of the tax base in comparison to income and value added taxes. From this standpoint, the extent of economic integration should have less effect on domestic policy toward social programs than one might think since income and value added taxes are significantly less mobile.
The problem with this division of political (compensation) and economic (efficiency) is that often the two are interacting so that many scholars are finding it difficult to support one or the other hypothesis. The following are some are papers I’ve found that seem to reoccur when reading about this debate.
Garrett, Geoffrey “Globalization and Government Spending Around the World”, Studies in Comparative International Development, Winter 2001, Vol. 35, pp. 3-29
In this article, Geoffrey Garrett seeks to compare the “two major contending perspectives” on integration: compensation and efficiency. Garrett examines government spending in 100 countries from 1970-1995 and finds that high levels of trade “are associated to high levels of government spending”, but in places where trade grew quickly, government spending lagged behind. This suggests that efficiency constraints associated with fast trade growth seemed to outweigh the political pressure for compensation generated by the inequalities usually associated with trade. For this reason, Garrett asserts that globalization (market integration--discussed here as a measure of trade as a percentage of GDP) should be measured in changes rather than levels (see Rodrik), as a large change may indicate fast trade growth and therefore be subject to less political demands for compensation.
Kaufman, Robert, “Globalization, Domestic Politics, and Social Spending in Latin America: A Time-Series Cross-Section Analysis 197397”, World Politics 53 July 2001, pp. 553-87
Kaufman finds that trade integration reduces pensions and other fiscal transfers, and capital account liberalization (freer flow of capital both in and out of the country) also compounds the negative effects of trade integration. As economies and capital markets become more closely linked and capital becomes more mobile, governments can face credible pressure from businesses threatening to liquidate assets and move production. The study also finds however that integration in capital markets “does appear to encourage increases (or discourage decreases)” in health and education spending, presumably as a way to meet labor quality requirements of investors.
Rodrik, Dani, “Trade, Social Insurance, and the Limits to Globalization”, National Bureau of Economic Research, Working paper 5905, 1997 (2001)
Rodrik uses a cross-section analysis to explain the relationship between the degree of openness and the size of government. He finds that high levels of openness are strongly associated with larger governments. The argument states that as trade increases as a proportion of GDP, risk or economic uncertainty also rises. In response to the increased exposure to external risk, governments come under pressure to increase fiscal transfers thereby expanding government and creating the welfare state; however, Rodrick also asserts that underneath the constraints of providing more compensation in face of more risk exposure, governments are forced to raise taxes on labor and lower taxes on capital (see Shulze).
Schulze, Gunther, “Globalisation of the Economy and the Nation State”, The World Economy 22, No. 3, 1999, pp. 295-353
Schulze makes a strong argument against the overstatement of economic globalization’s effect on domestic fiscal policy by stating that the although the corporate income tax rate has converged across countries (consistent with theory), it still only constitutes a small percentage of the tax base in comparison to income and value added taxes. From this standpoint, the extent of economic integration should have less effect on domestic policy toward social programs than one might think since income and value added taxes are significantly less mobile.
Avoiding the Fall
Globalization, despite its many benefits and opportunities, also provides many economic and social holes any country taking advantage of globalization can fall into. If a country does not safely guard itself against the sometimes-unwise demands of a citizenship negatively affected by globalization, the country could experience a financial crisis similar to that of the 1997 Asian financial crisis.
A country opening its markets and liberalizing its trade system may experience growth and development. However, the country will also experience change in a more negative sense in its economic and social sectors. Although the country’s economy will grow overall, the growth will be uneven and leave some sections of the economy and population much wealthier, while other sections of the economy and population are left disproportionately poorer. (Ha, 786) The disproportion and uncertainty of economic growth leads to social, in addition to economic, instability. Ha notes, “…scholars have found that labor market volatility and insecurity have risen in industrial economies, especially in the 1990’s.” (Ha, 787) And as referenced by Ha, workers in the US economy felt more insecure in their jobs than a decade before. (Ha, 787)
In order to compensate for the negative effects of globalization, states often feel pressure to protect their domestic market against the international market. “To mitigate the backlashes and help maintain public support for opening markets further, governments come under pressure to compensate those who have been harmed by globalization.” (Ha, 787) States might compensate citizens by increasing basic welfare benefits, but can also implement economic strategies that protect domestic markets. In an extreme form, states can threaten to pull out from all international alliances. Pat Buchanan ran for president in 1996 on the platform that the US should pull out of all global institutions, such as NAFTA and even the WTO.
So for countries balancing globalization and liberalized trade with an increasing wealth gap and the public’s feeling of job insecurity, the state must increase welfare benefits, from job loss compensation to tariffs to protect the domestic market. “Societies are asked to embrace change and dislocation in international liberalization, but the state promises to cushion those effects through domestic, economic and social policies.” (Ha, 804)
But such policy, although helpful in quelling the discontented masses, can ultimately prove to be the downfall of a nation’s economy. In order to guard against the foolishness of artificially sheltering the home market from the international, states should foster and encourage a liberal, diverse system of democracy. Japan greatly benefited from a global, liberal market in the 80’s and early 90’s. However, Japan’s policies of opening its international economy while closing its domestic economy to globalization at least partially resulted in the 1997 financial crisis. (Pempel, 35) “The model that led to success also built in many important but less than fully examined elements that subsequently led to (Japan’s) eventual stagnation.” (Pempel, 36)
Ha intimates that countries today lean towards using the same policy Japan used – policy that takes advantage of the globalized international market, while also closing and sheltering its home market through implementing all manner of protectionist policies. Ha says, though, that countries with a more diverse “veto player” population have a more difficult time changing policy in reaction to the pressure of globalization. “Although globalization pressures states to change welfare expenditures, the state’s ability to do so decreases as the number of and ideological distance among veto players needed to change the status quo increases.” (Ha, 804)
It should be noted that each of the major East Asian economies involved in the financial crisis lacked political diversity. Each one had a state-guided economic plan, and each had dominant political parties. Following Ha’s logic, and the logic of several other scholars Ha cites, if the East Asian countries had had a more diverse veto player pool, the welfare policies used to cater to domestic sectors would have been fewer. And thus, the policies that eventually led to the East Asian financial crisis might have been avoided.
In the face of the ever-increasing pressure for countries to liberalize internationally and then to protect domestically, states should note the importance of balancing growth in the global economy with stability in the domestic. “What is needed instead – for the sake of America and the sake of the world – is…a new formula for combining the twin desires of international and domestic stability.” (Ruggie, 94) And one of the best ways to ensure a balance between the “twin desires” is to allow and encourage a variety of veto players.
Sources:
Ha, Eunyoong, 2008
Ruggie, John Gerard, “Embedded Liberalism Compromise,” http://books.google.com/books?hl=en&lr=&id=oIZmBH9X2VUC&oi=fnd&pg=PA79&dq=liberalism+compromise&ots=7SwT0p3VmC&sig=qiXHT6uGMWkiNjiffIzVNZl4cDA#PPA94,M1
Pempel, T.J., “Revisiting the Japanese Economic Model”
A country opening its markets and liberalizing its trade system may experience growth and development. However, the country will also experience change in a more negative sense in its economic and social sectors. Although the country’s economy will grow overall, the growth will be uneven and leave some sections of the economy and population much wealthier, while other sections of the economy and population are left disproportionately poorer. (Ha, 786) The disproportion and uncertainty of economic growth leads to social, in addition to economic, instability. Ha notes, “…scholars have found that labor market volatility and insecurity have risen in industrial economies, especially in the 1990’s.” (Ha, 787) And as referenced by Ha, workers in the US economy felt more insecure in their jobs than a decade before. (Ha, 787)
In order to compensate for the negative effects of globalization, states often feel pressure to protect their domestic market against the international market. “To mitigate the backlashes and help maintain public support for opening markets further, governments come under pressure to compensate those who have been harmed by globalization.” (Ha, 787) States might compensate citizens by increasing basic welfare benefits, but can also implement economic strategies that protect domestic markets. In an extreme form, states can threaten to pull out from all international alliances. Pat Buchanan ran for president in 1996 on the platform that the US should pull out of all global institutions, such as NAFTA and even the WTO.
So for countries balancing globalization and liberalized trade with an increasing wealth gap and the public’s feeling of job insecurity, the state must increase welfare benefits, from job loss compensation to tariffs to protect the domestic market. “Societies are asked to embrace change and dislocation in international liberalization, but the state promises to cushion those effects through domestic, economic and social policies.” (Ha, 804)
But such policy, although helpful in quelling the discontented masses, can ultimately prove to be the downfall of a nation’s economy. In order to guard against the foolishness of artificially sheltering the home market from the international, states should foster and encourage a liberal, diverse system of democracy. Japan greatly benefited from a global, liberal market in the 80’s and early 90’s. However, Japan’s policies of opening its international economy while closing its domestic economy to globalization at least partially resulted in the 1997 financial crisis. (Pempel, 35) “The model that led to success also built in many important but less than fully examined elements that subsequently led to (Japan’s) eventual stagnation.” (Pempel, 36)
Ha intimates that countries today lean towards using the same policy Japan used – policy that takes advantage of the globalized international market, while also closing and sheltering its home market through implementing all manner of protectionist policies. Ha says, though, that countries with a more diverse “veto player” population have a more difficult time changing policy in reaction to the pressure of globalization. “Although globalization pressures states to change welfare expenditures, the state’s ability to do so decreases as the number of and ideological distance among veto players needed to change the status quo increases.” (Ha, 804)
It should be noted that each of the major East Asian economies involved in the financial crisis lacked political diversity. Each one had a state-guided economic plan, and each had dominant political parties. Following Ha’s logic, and the logic of several other scholars Ha cites, if the East Asian countries had had a more diverse veto player pool, the welfare policies used to cater to domestic sectors would have been fewer. And thus, the policies that eventually led to the East Asian financial crisis might have been avoided.
In the face of the ever-increasing pressure for countries to liberalize internationally and then to protect domestically, states should note the importance of balancing growth in the global economy with stability in the domestic. “What is needed instead – for the sake of America and the sake of the world – is…a new formula for combining the twin desires of international and domestic stability.” (Ruggie, 94) And one of the best ways to ensure a balance between the “twin desires” is to allow and encourage a variety of veto players.
Sources:
Ha, Eunyoong, 2008
Ruggie, John Gerard, “Embedded Liberalism Compromise,” http://books.google.com/books?hl=en&lr=&id=oIZmBH9X2VUC&oi=fnd&pg=PA79&dq=liberalism+compromise&ots=7SwT0p3VmC&sig=qiXHT6uGMWkiNjiffIzVNZl4cDA#PPA94,M1
Pempel, T.J., “Revisiting the Japanese Economic Model”
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