Local responses to globalization

Local responses to globalization


Hyperglobalists/Capitalists/Free marketeers: These are people that are all firmly in favour of a free market system with no or very little government intervention. These groups often blame economic problems on too much intervention. For example they would argue that government support for failing companies (e.g. in the UK the government has supported the bank Northern Rock) is going to cause future problems, because they argue that the companies are obviously not profitable and should be allowed to go bankrupt because in order to support them, debt is going to be incurred.

Skeptics/Anti-globalists/Communists: People that are apposed to the current system. They may appose for varying reasons e.g. they want greater government ownership, or less worker and environmental exploitation.

Transformalists/Reformers: They accept the existence of the current globalised system, but would like it altered in some way. This maybe greater government regulation, more stringent environmental controls or greater local production.

There are a number of arguments favouring both globalised and lacalised production. Below is a summary of some of the main ones.

GLOBALISED PRODUCTION

LOCALISED PRODUCTION

ADVANTAGES PRODUCER
  • Can benefit from economies-of scale by producing on a large scale
  • Can source materials from the cheapest locations
  • Reduced transportation costs as products are purchased and sold locally
  • Can operate just-in-time production much easier because suppliers and customers are closer

DISADVANTAGES PRODUCER
  • There maybe higher transportation costs both in transporting raw materials and the finished products
  • Maybe harder and slower to change, to changes in demand
  • Many customers are now demanding local products
  • It is harder to ensure quality when production is outsourced or offshored
  • May have problems sourcing raw materials locally
  • Local workers may not have the required levels of skill or education
  • Restaurants and food producers will have to change their menus or products according to the seasons

ADVANTAGES CONSUMER
  • There is more choice of products e.g. peppers and pineapples in the UK
  • Mass production may mean that prices are lower
  • Perishable goods (food) are offered all year around
  • Perishable products (food) will be fresh and in season. Local products should be riper and have more flavour
  • Products should meet local customs
  • Should be more suited to personal tastes and traditions

DISADVANTAGES CONSUMER
  • There is less choice and products are homogenised/standardised
  • Prices may actually increase if a monopoly exists
  • It is harder to know the source and quality of products that you are buying
  • Perishable goods may have been grown using chemicals and picked unripe so have less flavour
  • They may suffer from pollution caused by large scale production and transportation
  • Perishable products are not available all season
  • Some products maybe more expensive because they are produced on a smaller scale
  • There may actually be less choice because there are few local companies

ADVANTAGES LOCAL ECONOMY
  • Some local companies may become suppliers to global chains
  • Local businesses may benefit from improved levels of technology
  • Global companies will train staff with new skills
  • Improved trading relations with other regions and countries
  • Local workers are employed who pay local taxes
  • There is less economic leakage
  • Local workers learn new skills which can be passed to other manufacturers
  • Positive multiplier effect as suppliers, etc. benefit from increased custom

DISADVANTAGES LOCAL ECONOMY
  • Local producers may not be able to compete on price and be forced to close
  • Many managerial positions maybe filled by expatriates (foreigners)
  • There is often economic leakage from the area (profits repatriated)
  • Small local companies don't pay as much in tax because of there scale
  • Small companies will probably employ few people and buy less products
  • Local companies maybe exploited (low prices)
  • Local companies take risk and may incur debt
Going local is flavour of the season for fast food giants - Financial Express Article

Rice on the menu at Shanghai KFC - People's Daily Article

Civil Society: Any organisation or movement that works in the area between the household, the private sector and the state to negotiate matters of public concern.

Trade Union: An organisation where workers have grouped together in order to achieve common goals. This might be improved pay, better safety, longer holidays, protection from lawsuits, etc.

Faith Based Organisation: A group that is based on certain religious beliefs. Faith based organisations like Christian Aid may have certain beliefs, but it doesn't necessarily stop them from supporting people with alternative beliefs. For example an NGO (charity) like Christian Aid will help anyone in need and not discriminate based on religion.

Community Group: Organisation based in local areas. Community groups may provide local services like handing out food to the elderly or running sports clubs for children. They may also campaign on local issues like industrial pollution.

Anti-globalists: Groups that are critical of the current capitalist globalised system. As mentioned in the previous section (Responses) anti-globalists may campaign on different things like pollution, marginalisation, exploitation of workers, etc.

People's Global Action (PGA)


This is the name given to the coordination of anti-globalisation groups around the world. The name came about in the Mexican state of Chiapas during a grassroots uprising in 1996. The Zapatista's leading the uprising called for a meeting, that was eventually attended by over 6,000 people from over 40 countries. At the meeting they declared that they would form a group to fight against neo-liberalism. In February 1998 organisations from around the world attended a meeting in Geneva where they arranged protests against the WTO and G8. The PGA has held further meetings in India and Bolivia.

Although the PGA is not an organisation and has no members it does help with coordination, some fundraising, arranging conferences, fostering support and highlighting current issues. Their collective manifesto includes the following issues:
  • Exploitation of labour
  • Gender oppression
  • Indigenous rights
  • Oppression of ethnic groups
  • Environmental damage caused by agro-industrialisation
  • Education
  • Protecting culture
  • Militarisation
  • Migrant rights
  • Globalisation and economic power

http://www.nadir.org/nadir/initiativ/agp/en/
 external image pga_migration.JPG

Focus on the Global South Group


This is an NGO established in Bangkok in 1995. The group attempts to combine research with advocacy and grassroots activism. They aim to generate debates on issues around militarisation and corporate power. The group has three aims based on deglobalisation. The aims are:
  • dismantle oppressive economic and political structures and institutions;
  • to create liberating structures and institutions;
  • to promote demilitarisation and peace-building, instead of conflict.

http://www.focusweb.org/
 external image focusweb_logo.png

Trade Unions


Trade unions first started in Europe and became popular during the industrial revolution. Unions started to develop because of the power that employers held over their employees, forcing many to work long hours in dangerous conditions for very low pay. Individual trade unions often represent people who work in similar professions. In the UK there are 3 main trade unions (there are some smaller ones) that represent the rights of teachers. They are:

Trade Unions are funded by their members (the employees) and work for the rights of their members. Trade Unions will attempt to improve pay, working conditions, health and safety, and benefits. They will also help their members in legal disputes with their employers or in complaints made against them. Trade unions improve worker rights through negotiations, but may also call their members to go on strike, work slow or work to rule. During strikes workers will often form protest marches, hand in petitions and form picket lines.

Trade Unions have played a major role in improving working conditions of previously disadvantaged groups. However, they have been accused of having too much power, for a long time the British Labour Party and trade Unions have had strong links and the unions have had voting rights in choosing new leaders. In other countries trade unions are banned or certain professions aren't allowed to uinionise.

Even though trade unions often improve worker pay and safety, they can also lead to an increase in productions costs as employers have to pay higher wages, reduce hours, pay sick days, improve safety. This means that locations like China, which have traditionally been able to offer very cheap production costs are seeing production costs rise and some production actually move overseas to cheaper locations like Vietnam and Bangladesh. In China many unions are controlled by the Communist Party, but there is also an increase in informal unionisation leading to strikes and protests
 external image Gallery-Frances-Unions-St-014.jpg

China's factories hit by wave of strikes - BBC article

Bangladeshi apparel gains from China’s rising costs - BBC article

The 'BigBarn', the 'Inter Faith Network' and 'Eat The Seasons'


There are a growing number of organisations that are trying to promote local production and community spirit. The three above are examples of such organisations. The BigBarn is the UK's largest food website and is a community interest company. BigBarn's mission is to reverse this trend by reconnecting consumers with their local producers, direct, or through local retailers, and encourage local trade. Giving farmers a better deal and consumers fresher, cheaper, accountable food. At the moment they claim that farmers receive only 9 pence for every pound in British supermarkets and that the industrialisation of food has resulted in:
  • Small farms going out of business
  • Small rural shops and post offices closing
  • Decreasing access to fresh food
  • Food being produced for shelf life and not flavour
  • Excess animal movement
  • Too many additives in food, hidden behind a label
  • 'Staple food' costs actually rising as middle men & retailer margins increase
  • Increasing consumption of ready meals
  • Increased reliance on oil as specialist farms move away from mixed farming

Eat the seasons has similar aims to BigBarn, they are a website that want to educate people about the importance of eating local, seasonal food. Each week they list foods that are in season and suggest ideas for cooking them. They state that this is important because:
  • to reduce the energy (and associated CO2 emissions) needed to grow and transport the food we eat
  • to avoid paying a premium for food that is scarcer or has travelled a long way
  • to support the local economy
  • to reconnect with nature's cycles and the passing of time but, most importantly, because
  • Seasonal food is fresher and so tends to be tastier and more nutritious

The Interfaith Network in the UK was founded in 1987 and had the aim of improving interfaith relations within the UK. The organisation works with local faith groups to promote dialogue and understanding to resolve local issues of common concern.
 external image eat-the-seasons.jpg
http://www.bigbarn.co.uk/

http://www.interfaith.org.uk/

http://eattheseasons.co.uk/