GREENHAVEN PRESS An imprint of Thomson Gale, a part of The Thomson Corporation THOMSON GALE

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1 Globalization Debra A. Miller, Book Editor GREENHAVEN PRESS An imprint of Thomson Gale, a part of The Thomson Corporation THOMSON GALE Detroit New York San Francisco New Haven, Conn. Waterville, Maine London

2 Contents Foreword - 11 Introduction 14 Chapter 1: Will Globalization Hurt Workers? Globalization: An Overview 18 Mark Garnett The global integration of economies and cultures caused by recent technological changes is highly controversial, with supporters pointing to many benefits and critics warning of dire consequences. Yes: Globalization Will Hurt Workers A Race to the Bottom for Workers 24 and Workers' Rights Gus Tyler Globalization of the world economy creates incentives for companies to increase profits by decreasing labor costs, promoting a race to the bottom that depresses wages and creates unsafe workplaces for workers. The Outsourcing of U.S. Jobs 30 Trevor Gomberg Globalization is causing an increasing number of U.S. jobs to be outsourced to underdeveloped nations a process that may eventually reduce the standard of living for many Americans. No: Globalization Will Not Hurt Workers Globalization is an Opportunity for 33 the U.S. Economy Robert T. Parry Overall, globalization creates as many jobs as it takes away, and displaced U.S. workers can be protected by providing unemployment insurance and training programs.

3 Job Losses from Globalization 41 Are Exaggerated Paul Swaim and Raymond Torres Globalization produces some job losses, but these are often exaggerated and can be dealt with by policy measures that compensate job losers and increase their reemployment chances. Chapter 2: Does Globalization Harm Developing Countries? Chapter Preface 46 Yes: Globalization Harms Developing Countries Unregulated Globalization Can Lead to 50 Impoverishment for Developing Countries Lucky O. Imade In the absence of effective international rules and legal systems to protect labor and the environment and prevent monopolies, globalization can lead to oppression, exploitation, and impoverishment for many developing countries. Globalization Reforms Have Slowed 58 Economic Growth for Most Poor Countries Mark Weisbrot, Dean Baker, and David Rosnick Available economic data show that most developing countries have experienced a sharply slower rate of economic growth during the last twenty years of globalization reforms. The Concerns of Developing Countries Are 63 Not Being Addressed by Global Trade Talks Michael Fleshman Global trade liberalization talks, launched at Doha, Qatar, in 2001, have not produced the kinds of development sought by developing nations to lift them out of poverty.

4 No: Globalization Does Not Harm Developing Countries Multinational Corporations Do Not 70 Exploit Poor Countries Jagdish Bhagwati Critics often claim that multinational corporations exploit poor countries by paying low wages and violating labor rights but the evidence shows that globalization does more good than harm. Globalization Has Helped Many 75 Developing Countries John L. Manzella Trade and globalization have improved the lives of billions of people in twenty-four developing countries that have adopted free trade policies, by allowing their economies to catch up to those of rich countries. Globalization's Pain for Poor Countries 78 Can Be Minimized Pranab Bardhan Whether globalization hurts or helps the poor in developing countries depends on the circumstances of each country, but there are ways to maximize the benefits and reduce the harm. Chapter 3: Will Globalization Destroy the Environment? Globalization and the Environment: 89 An Overview Radley Balko Free traders argue that short-term environmental damage may be necessary until countries can begin addressing environmental problems, but anti-globalists want immediate international standards to protect the world's dwindling resources.

5 Yes: Globalization Will Destroy the Environment The Pressures of Globalization Will Produce 96 Unprecedented Environmental Deterioration James Gustave Speth Since the end of World War II, economic expansion has produced enormous environmental damage, and globalized economic development can be expected to bring about even more appalling economic consequences. Environmental Damage Is Intrinsic to 102 the Globalization Process Jerry Mander Globalization is a human creation that seeks to eliminate impediments, such as environmental laws, that restrict corporate access to resources and markets; environmental damage therefore is an intrinsic part of the globalization system. In Mexico, Free Trade Has Led to Large-Scale 112 Environmental Degradation Kevin P. Gallagher Proponents of the North American Free Trade Agreement (NAFTA) argued that free trade would improve the environment in countries like Mexico, but ten years later, environmental problems in Mexico have substantially worsened. Current Global Business Practices Harm 118 the Environment Al Gore and David Blood Some global businesses are leading the way toward sustainable development of environmental resources, but there is a long way to go and most companies still focus on short-term investments and profits. No: Globalization Will Not Destroy the Environment Free Trade Protects the Environment 122 Global Freedom to Trade Campaign Unrestricted trade will promote economic development that will lift people in poor countries out of poverty, thereby enabling them to improve health and improve environmental protections.

6 NAFTA's Environmental Protections 131 Have Worked Gustavo Vega-Canovas NAFTAs environmental protections, embodied in the North American Agreement on Environmental Cooperation (NAAEC), have worked to allow citizens and environmental groups to challenge the negative environmental effects of free trade policies. Free Trade Will Not Hurt the Environment 139 if Trade Agreements Are Accompanied by Environmental Standards Nathan Johnson The Free Trade Area of the Americas (FTAA) initiative raises legitimate concerns that American firms may try to take advantage of lax environmental standards in South American countries, but these can be addressed by including environmental standards in the agreement. Chapter 4: Is Globalization a Threat to Democracy? Chapter Preface 146 Yes: Globalization Is a Threat to Democracy Global Capitalism Is Subverting Democracy 150 Noreen Hertz Corporations are becoming global giants that wield more political power than elected politicians, a silent takeover that is eroding democracy around the world. Globalization Presents a Serious Challenge 156 to Democratic Sovereignty and the Democratic Nation-State John Fonte Globalization has spawned international agencies and non-governmental organizations (NGOs) that are pushing for changes that could override the national sovereignty of democratic states.

7 The Spread of Global Free-Market 165 Democracy Causes Ethnic Violence Amy Chua Because free markets and democracy often benefit one minority group instead of the majority of the population, globalization can exacerbate economic inequities and result in political instability and violence. No: Globalization Is Not a Threat to Democracy Globalization Promotes Democracy Both 171 Directly and Indirectly Jagdish Bhagwati Global economic reforms promote democracy because people who experience economic freedoms then seek greater control over other decisions that affect their lives. Global Economic Development Is a Tool for 176 Encouraging Democracy Daniel T. Griswold Increased global trade and economic development in less-developed countries promote democratic freedoms by opening societies to new technologies, communications, and democratic ideas. The Nation-State Will Survive Globalization 182 Martin Wolf Countries that choose to participate in the global economic system must accept some constraints on sovereign powers, but nation-states will always be necessary to provide stability, security, and benefits to citizens. Glossary 190 Chronology 193 Organizations to Contact 198 Bibliography 208 Index 213