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Political Science
Ivaylo Grouev

Notes for final – Politics and Globalization HUMAN OUTSOURCING: Reaction from the center; - Shift of jobs toward developing nations may look like a race to the bottom – a spiraling downward of wages as companies seek ever-cheaper labour markets - Areas of Business: manufacturing, office support (call centers), debt chasing, accounting, IT sector - Most IT work can be outsourced, since Bush 2.67 million jobs were lost - According to Forrester; 3m jobs lost since 2000, service jobs moving overseas monthly - Goldman Sachs estimates professional services and information sector jobs moved overseas, accounting for half the total net job loss in the sector - Deloitte Research survey found one third of all major financial institutions send their work offshore, and are currently doing so for the 75% more in the next 24 months - In one month 30,000 new jobs from US firms in India, not counting rest of countries - US economy is growing and creating jobs but these jobs have moved overseas where foreigners will work for a lot less – Prof Raynor (NY State U) Can America lose these jobs and Still Prosper? - Trade related job loss hurts individual works and their families - Entire communities are affected negatively as tax revenue falls, dependency on public assistance increases, incomes stagnate - This puts the long-term competitiveness of the American economy at risk New Dimensions of Globalization An established view: global economic integration tends to shift low-skilled jobs from developed to developing countries while creating high-skilled jobs in the developed world - The new round of globalization challenges this view - Evidence of companies in developed economies shipping high-skilled jobs offshore, this raises fear of job losses among high-skilled workers in the West and sparking hot political debates – by 2015 3.4 million outsourced jobs from the US 1 - The supply of IT services is the most global (16% of all work is done away) WHY: - Shift in higher education; today china has more PhDs than the US - Low price of human capital in developing countries; cheaper monthly wages out of US Currently highly educated workers are at a greater risk of unemployment than those with lower education. The government is not prepared to deal with millions of highly educated workers to hit unemployment rolls for extended periods of time. Universities educate young people but older workers need to retrain themselves. Forrester Research provides the nine major educational categories that are expected to move overseas from the Standard Occupational Classification: 1. Management 2. Business and Financial Operations 3. Computer and Mathematical 4. Architecture and Engineering 5. Life, Physical, and Social Science 6. Legal 7. Arts, Design, Entertainment, Sports, and Media 8. Sales and Related 9. Office and Administrative Support Additional threat to job security: - China and India’s integration into the global economy creating a huge, low-cost labor force. (CIA survey to predict global trends) The transition will not be painless and will hit the middle classes of the developed world in particular MIGRATION WORKERS The Canadian Market: - 1 out of 6 people worldwide (1 billion) are crossing national borders as migrant workers - Of these, 72% are women. Usually they get poorly paid jobs in domestic and farm labour 2 o Domestic labour: women and girls, Africa and Asia, they move to urban areas to work to help financially support their families. Filipino women are the majority of domestic workers around the World o Farm Labour: 17,000 migrant workers come to Canada to pick fruit on farms, they are subject to farm accidents and chemical poisoning. They are paid minimally even though they contribute a lot to the economy - Canadian economic policy plays a part in upholding systems of global inequality. 7 billion $ go back to the Philippines but most of this money comes back in debt repayment GLOBALIZATION’S DARK SIDE Globalization leads to a “commodification” of human beings. Sex trade has been industrialized worldwide, it’s a multibillion-dollar service industry. Sex multinationals have become legitimate economic forces as sex trade has become a part of some countries’ development strategy According to Ottawa U sociologist Poulin: 1. Sexual exploitation is increasingly considered to be an entertainment industry and prostitution a legitimate job 2. The industrialization of sex trade has involved mass production of sexual goods and services structured around international division of labour 3. Prostitution and sexual industries (bars, clubs, massage, etc) depend on a massive underground economy controlled by pimps connected to organized crime Structural adjustment programs and development strategy: 1. Pressure from competitive agricultural production (from the North) caused mass lay-offs in the agricultural sector. Solution to debt is selling the only available commodity (body and children) 2. Under debt repayment obligations, countries were encouraged (by IMF, WB) to develop their tourism and entertainment industries (develops sex trade) Prostitution and Trafficking Phenomenal growth, especially in Asia (Nepal and India) UNICEF estimates one million new children into the sex industry every year Destinations: Japan, Western Europe, US and Canada South and Southeast Asia are the most important group, then Russia and ex-USSR, then Latin America and Caribbean, then Africa. A lot of these are sold in Thailand 3 (transit country). On their arrival to their country of destination they have to repay expenses as debt for years. Slavery never disappeared just took a different from. 12 million slaves left continent th th between 15 and 19 century – 20% died on ships. It was abolished in 1927 at the Slavery Convention. Slavery is defined as: forced labour without pay under threat of violence. It is the fastest growing criminal enterprise in the world. Slavery is very profitable – 9 billion $ in the US per year. The four most common types of slavery are: chattel slavery, debt bondage, forced labour, and sexual slavery Kevin Bales – The New Slavery, Disposable People – U of California Press – 1999 Factors: 1. Demographic Boom; after WW2 from 2b to 5.7billion. Half of the population in South Asia, India, and Africa is under 15 2. Rapid Industrialization; modernization, end of the traditional family, loss of land 3. Globalization policies of trade; trade liberalization, elimination of agro-food tariffs Forms: 1. Chattel slavery; captured, born or sold into permanent servitude 2. Debt bondage; most common, pledge against a loan of money (undefined length) 3. Contract slavery; “legitimate” contract, sweat shops 4. Sexual Slavery Control or Ownership: Old Slavery; legal ownership asserted, high purchase cost, low profits, shortage of potential slaves, long-term relationship, slaves maintained, ethnic difference important New slavery; legal ownership avoided, very low purchase cost, very high profit, surplus of potential slaves, short term relationship, slaves disposable, ethnic differences unimportant Benefits of Control: no asserted legal ownership, no obligation for food or shelter (cost effective relationship), slaves disposable, low purchasing price GLOBALIZATION AND ARMS TRADE Arms Trade Around the World Bill Clinton 1990 – I expect to review our arms sales policy and to take it up with the other major arms sellers of the world as a part of a long-term effort to reduce the proliferation of weapons 4 During that year of presidency US arms sales doubled The arms industry is unlike any other. It operates without regulation. There are 5 permanent members of the UN Security Council: USA, UK, France, Russia, and China. They account for 88% of reported conventional arms exports. Jimmy Carter: We can’t be the world’s leading peace champion and the supplier of arms It accounts for the largest spending in the world, over one trillion dollars in annual expenditure. The US accounts for almost half of it. The UN peace keeping and administrative budget represent 0.5 percent of global military spending As world trade globalizes, so does the trade in arms. While international attention is focused on the need to control weapons of mass destruction, the trade in conventional weapons continues to operate in a legal and moral vacuum. The Third World is often the destination for arms sales. Small Arms & Light Weapons 639 million small arms and light weapons worldwide, 47 out of 49 major current conflicts prefer the use of small arms. People have been killed in conflict, made orphans, permanently disabled, left with grave psychological trauma. SALW: - Destabilise regions - Fuel, spark and prolong conflicts - Destabilise relief programs - Undermine peace initiatives - Exacerbate human rights abuses - Hamper social and economic development - Foster a ‘culture of violence’ What can be done? - Put in place and enforce laws, penal codes, regulations and procedures against illicit SALW activity - Establish and enforce effective systems of import and export licensing 5 - Establish national points of contact, coordination agencies and institutional support to develop policy - Enhance research, monitoring and identification capacities directed towards illegal groups and SALW activities - Establishment and maintenance of an accurate record system of SALW transactions US spending vs. the world’s spending; - Budget is as much as the entire rest of world. (8 times that of China) - Them and their close allies account for about ¾ - The seven enemies, Russia and china spend about 27.6% of US - Over 700 bases in 130 countries - Their military expansion is in the name of fighting terrorism and spreading democracy Military spending receives 29 cents on the tax dollar whilst education only 4 cents. Who is benefiting? - The Pentagon’s suppliers, missile and transport manufacturers. For example The Carlyle Group. - Private companies exploit legal loopholes to their advantage. Halliburton has no constraints, they have been putting their freedom to work to advance their interests. - Millions are spent on political con
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