Quote from Zovanyi Book, The free-market undelying such a global economy has, in turn, been portrayed via its basic tenets in the following manner: Sustained economic growth as measured by gross national product represents the foundation of human progress and is essential to alleviate poverty and protect the environment. Free markets, unencumbered by governmental interference or regulation, result in the most efficient and socially optimal allocation of resources; economic globalization, under whichc goods and capital flow freely across national borders in a single integrated world market, spurs competition, increases economic efficiency and growth, and is generally beneficial to everyone; and localities achieve economic success by abandoning goals of self sufficiency and aspiring to become internationally competitive in providing conditions that attract outside investors. Finally, a set of fundamental assumptions on which the doctrine of free-market capitalism rests has been expressed principally through a quest for financial gain; the action that yields beneficial to society; competitive behavior is more rational for the individual and the firm and more beneficial to society than cooperative behavior. Members of society consume and those who consume the most contribute the most to that progress (109). As one critic has summed it up, economic globalization “is believed to provide a means of creating a material and technological paradise on Earth.” The modern worldview is that the more material goods you have, the better your life will be” (109). Critics then respond to the claim that economic globalization will reduce poverty worldwide, they point to statistics indicating that it has actually increased unemployment and thereby exacerbated poverty across the globe. In a competitive glbal market place corporations are driven to realize greater production deficiencies, including reductions in labor inputs per unit of output. Critics point out that “specialization inevitably leads to chronic unemployment and lower wages”. In order to complete effectively, corporations engage in “downsizing, streamlining, and automating their operations using the most advanced technologies to eliminate hundreds of thousands of jobs” (111). Income gap…

“free international trade encourages industries to shift their production activits to the countries that have the lowest standards of cost internalization. “in effect unrestricted trade imposes lower standards of in wha is seen as a race to the bottom, transnational corporations are free to scour the globae and establish themselves wherever labor is the cheapest, environmental laws are the laxest, fiscal regimes are the least onerous, and subsidies are the most generous”(112).

V

George Laue

Introduction to Community Development

Are local communities impaired by Globalization?

Globalization is the process of creating a more interconnected world through people, culture, ideas, goods, and services.

Effects of trade liberalization on developing countries

The international trading system is based on the principles of free trade which is the lowering of tariffs and other trade barriers and works in the logic of comparative advantage.

Comparative advantage is when the United States can produce a set of goods at a lower cost than a foreign country can and if the foreign country can produce some other set of goods at a lower cost than the United States can, then it would be best for the U.S. to trade its cheaper goods for the foreign counties cheaper goods. This way both countries may gain from the trade.

Benefits and costs of globalization for local communities

These changes are seen as contributing to the economic advancement for poor countries. Globalization, it is argued, will provide poor countries with access to overseas markets so that they can sell their goods. This allows foreign investment that will make new products at cheaper prices and open borders so that people can travel abroad to be educated and work.

However, the ratio of income of richest 10% of countries and the poorest 10% of countries has increased. There is increasing apprehension that local communities in developed countries may loose farm and nonfarm livelihoods to global competition and may threaten their sustainable development path. The ability of local governments to protect the quality of life of residents may be impaired by global processes.

Eastern should make a mandatory community service program. The goal of the program is to present students with some of the social conditions seen in Jamaic and help them address these problems in a tangible way. The program can be run directly through EWU and the advisory board of faculty and local representatives involved with the project oversees implementation. Efforts to expose students to issues of class, race, and poverty. An example is students working with high school staff and students to provide resources for enhancing education and ability to educate students.

Although the effects of globalization are ubiquitous it is not homogeneous in benefits or in threats for communities.

The price for retail bananas in the overseas market does not necessarily reflect negative externalities such as the cost of inefficient use of resources, the loss of biodiversity, from clearing forests,

deforestation, soil erosion, water contamination by agro-chemicals, nor the social and economic dislocations that occur in rural communities of producing countries. an externality is a cost or benefit which affects a party who did not choose to incur that cost or benefit.

Free trade weakens communities by freeing multinational corporations to exhaust the local natural-resource base. It is evident that the small farmers in Jamaica for example participate in the international banana trade are not viable for the long run. The cheap price of bananas in the developed world is provided at a cost of socioeconomic dislocation and environmental damage in the producing countries. In contrast rural farmers and consumers in developing countries testify that imported foods are cheaper than locally produced foods, which negatively affects local production and trade.

On the positive side, free trade and the globalization of food consumption patterns can provide new opportunities in the global marketplace for communities.

For example, manufacturing activities which cause air pollution impose health and clean-up costs on the whole society, while the neighbors of an individual who chooses to fire-proof his home may benefit from a reduced risk of a fire spreading to their own houses. If external costs exist, such as pollution, the producer may choose to produce more of the product than would be produced if he were required to pay all associated environmental costs. If there are external benefits, such as in public safety, less of the good may be produced than would be the case if the producer were to receive payment for the external benefits to others. For the purposes of these statements, overall cost and benefit to society is defined as the sum of the imputed monetary value of benefits and costs to all parties involved.[2][3] Thus, it is said that, for goods with externalities, unregulated market prices do not reflect the full social costs or benefit of the transaction.

In context of globalization of agriculture, advocates claim that closer economic integration especially trade and financial liberalization will increase economic prosperity in developing countries and encourage good governance, transparency, and accountability. If I was and entrepuneur who was doing well locally I would defiantly broaden my horizon and see if anyone was interested in my products outside of the country and with the liberalization of trade it would be inexpensive to export my goods and by using internet banking I could also cut the cost of transactions. So I would increase revenue and save by taking the opportunity technology and globalization gives. If my business grows it will naturally subdue smaller businesses that don’t take the opportunity to sell globally. I think individuals especially in poor communities in developing nations do not understand how to start a global business. The people who tried and failed only complain. But for those individuals who got the gold out of globalization are living happily and probably won’t share how they did it because it wont be fair.

Worker and community-owned firms. Corporations seeking to lower their production costs have moved factories and other economic activities to low-cost areas such as Mexico and China. This process has let to the deindustrialization of many regions, especially the Rust Belt, which has relied heavily on manufacturing as its economic base. This process has led to not only higher rates of unemployment and poverty in many communities, it has also put downward pressure on wages and benefits for workers who remain employed (292)

Globalizations direct and in-direct affect on individuals and their communities.

Local communities surely benefit from having trade and other economic relations with the world be they should have some control and coice in decision making instead of some distant exogenous factor should not dominate. I do believe that overreliance on the world market for staple goods should be curbed. Many local communities have little or no comparative advantage in the global economy. If local communities do not participate in globalization their local livlihoods will continue to be marginalized.

Endogenous growth theory envisions self-sustaining local and indigenous communities across the globe living in dignity, resilient to external and internal stresses. Endogenous development revitalizes ancestral and local knowledge and integrates external knowledge and resources that fit the local context. It leads to increased bio-cultural diversity, reduced environmental degradation, and a self-sustaining local and regional exchange of goods and services.

Gabor Zyovani would approve of this type of development.

In endogenous development well-being is understood from a holistic perspective that encompasses social, material and spiritual values of local communities. This way human and planetary well-being are seen as closely interlinked in what is increasingly known as biocultural diversity.

Because of this holistic approach, endogenous development is complementary to the more conventional well-being assessment and development approaches. Endogenous development allows people to envision their wellbeing on basis of their own worldviews, guided by the traditional knowledge and spiritual wisdom of their cultures.

There are thousands of different cultures in the world, each with its unique practices and ways of looking at life, or worldview. This worldview stands at the basis of the day-to-day life in many local and indigenous communities. In traditional worldviews the social, material and spiritual elements of life are inseparable. Rituals that are aimed at creating positive conditions are frequently used in both social and productive activities. Meanwhile rural poverty is often far-reaching and has a disruptive effect on community life, while people encounter other lifestyles for example through agricultural modernisation, education, television, and the market economy. In the process many have lost confidence in their own practices, knowledge and culture.

Effects of trade liberalization on developing countries

The international trading system is based on the principles of free trade which is the lowering of tariffs and other trade barriers and works in the logic of comparative advantage. Comparative advantage is when the United States can produce a set of goods at a lower cost than a foreign country can and if the foreign country can produce some other set of goods at a lower cost than the United States can, then it would be best for the U.S. to trade its cheaper goods for the foreign counties cheaper goods. This way both countries may gain from the trade.

Dilemmas created through linking environmental and economic policies on the global level

The GATT emphasized that a party is not permitted to restrict imports of a product because it originates from a country with environmental policies that differ from those of the importer. The estent to which U.S. regulations could be applied to activities in communities outside the U.S. in connection with the production of goods imported into the country. To what extent can the U.S. use the fact of importation as abasis for prescriptive jurisdiction to apply its law to activities abroad? Also, to what extent may import restrictions be used as a penalty to enforce that law. The conflict brought to the table the failure of the international community to legislate comprehensive rules in the area of regulatory jurisdiction as well as its failure to legislate rules regarding environmental protection at the local level. Globalization is still a new concept that is going through a process of trial and error. It is extremely difficult for the international community to come up with laws on the premise of imports and exports because of crossing foreign jurisdictions where they value different ideas about what a fair deal is.

“Globalization from below”

Anti-globalization advertised globalization from below as an alternative for local communities. It suggests that social movements are important for protecting and advocating for the economic and environmental well-being of marginalized people even in the remotest of communities. The aim is to manage the regulatory systems of international environmental and economic organization is such a way that regard is given to local ecosystems contexts and local livelihoods as well as social systems.

I think people who protest against globalization are either worried about the environment or businesses who lost in the global market and want it to be more fair. The market, mother nature, and politics is not fair there will always be losers but in order to not become a looser

Strategies for re-localizing economies

The author to intro to community development proposes that there needs to be a Balanced trade patterns. Improving the quality of local decision making and balancing the use of imported agro-chemicals with indigenous means of controlling pests and maintain soil fertility. In addition, a balance between local crops and imported crops in the local markets should improve food security within local communities.

Free trade vs Fair trade

Free trade refers to a general openness to exchange goods and information between and among nations with few-to-no barriers-to-trade. Fair trade refers to exchanges, the terms of which meet the demands of justice.

According to the principles of fair trade, the prevailing terms of trade between rich and poor nations are unjust because prevailing market prices for the goods produced in the Third World are too low for the laborers to reap a wage reflecting their dignity.

By contrast, free trade proponents believe that under a system of voluntary exchange, the demands of justice are met. Although free traders hope to alleviate poverty and improve conditions around the

world, they prefer measures that are less intrusive than fair traders, who regard the unfettered market as injurious to these same goals.

I didn't understand what she meant by "fair," so I asked a clarifying question: Suppose that Jack and Jill draw equal amounts of water from a community well. Jack's income is $10,000, of which he is taxed 10%, or $1,000, to support the well. Jill's income is $100,000, of which she is taxed 5%, or $5,000, to support the well. In which direction is that tax policy unfair?

I have thought about the issue in those terms quite a bit and am still unsure of my own answer. That's why I hesitate to pronounce judgment on the fairness of tax policies. If I can't tell what's fair in a world with two people and one well, how can I tell what's fair in a country with 250 million people and tens of thousands of government services.

Implications of anti-globalization

Nobel Prize winning economist Joseph Stiglitz notes that he witnessed firsthand while working with the World Bank the devastating effect that globalization can have on developing counties. He also notes that globalization is not working for many of the worlds poor, the environment, or the stability of the global economy. He argues that it can have a positive impact on developing countries only if the IMF WB and WTO reform the way that they operate.