Business, Government, and Society

PGP Term-1 (2012-14) Session 15

Plan for the remainder of the term

Today is the penultimate BGS class: Globalization 28th August, last BGS class for this term, Environment The class of Aug 29 will be held as guest lecture on September 1, at 1430 hrs in the auditorium. 4 and 5 Sep (Final Project Presentations)

Globalization

Class Exercise I: Lingua Franca?

What languages do you think will prevail in the world in 2050? What languages would have disappeared? Does it matter?

Endangered Languages
Endangered languages are those that are on the brink of extinction, Languages are considered to be endangered when parents are no longer teaching the language to their children and are not using it actively in everyday life. In many parts of the world parents are teaching their children English, French, Spanish, Chinese, Arabic, Russian or some other dominant language instead of their own language for social and economic reasons. Of the worlds more than 6,912 languages, half may be in danger of disappearing in the next several decades

Endangered Cultures
A people's identity and culture are unique and intimately tied to their language. No one knows what riches may be hidden within an endangered language. We may never learn about the cultures whose languages have disappeared. And the wholesale loss of languages that we face today will greatly restrict how much we can learn about human culture, human cognition and the nature of language. Language and culture-related anxieties are central to the political challenges arising from Globalization Think about your own life, your use of language, and whether the dominance of English will ultimately transform your own culture and values. Or has it already done so?!

Class Exercise:
What do the colours on this map signify? What do you think of the standard political map of the world?

Globalization and Culture

Jihad vs. McWorld

Benjamin Barber (1992) Two major competing forces on the world stage: Jihad and McWorld Jihadcentrifugalbreaking up McWorldcentripetalcoming together Neither respect nor nurture democratic values!

McWorld or the Homogenization of Politics and Culture

McWorld
A worldwide cultural integration based on global markets and corporate-led consumerism

Driving Forces
Globalization Westernization Americanization

McWorld & Interdependence

On the one hand, capitalism on the global level is rapidly dissolving the social and economic barriers between nations, transforming the world's diverse populations into a blandly uniform market. On the other hand, ethnic, religious, and racial hatreds are fragmenting the political landscape into smaller and smaller tribal units. JIHAD VS. MCWORLD is the term that Barber has coined to describe the powerful and paradoxical interdependence of these forces.

 Market imperative: MNCs and global markets generate a common consumer culture. Brands not Products (Klein) Resource imperative: Rising demand for scarce resources ties diverse peoples together. Information-technology imperative: New technologies allow access to information worldwide, enabling aspirations, at least for consumer goods. Ecological imperative: Global environmental problems create common problems and risks. But McWorld only cares about are free markets, not free, democratic societies

Jihad
Original meaning: to strive for inner spiritual purity, or to struggle against worldly injustice Barbers usage of the term: A worldwide cultural fragmentation stemming from attempts to reconstitute personal identities around old local and ethnic traditions. Implications Smaller communities of common identity Growing intolerance for outsiders Revival of old local or ethnic identities

Implications: A Retribalization of the World

Nationalism was once a force of integration and unification bringing together disparate clans, tribes and cultural fragments under new, assimilationist flags Jihad would redraw boundaries, implode states, resecure parochial identities War is not an instrument of policy but an emblem of identity, an expression of community, an end in itself Religious fundamentalism often provides the fuel

Politics of McWorld & Jihad

Antipolitics really McWorldglobalism: bureaucratic, technocratic, meritocratic, focused on the administration of things & people Jihadtribalization and dictatorship

The Clash of Civilizations

Samuel Huntington (1993)

What is Culture?
Culture embraces collective beliefs & assumptions that may not be explicit; its an expansive notion. Culture, ultimately, is everything that is not nature. American culture includes:
American appetites, dress, work etiquette, entertainment, piety & promiscuityall the things that Americans recognize, by their absence, as American when they visit other countries.

Americas Core Culture

includes:
Christian religion, Protestant values, a work ethic, the English language, British traditions of law, justice, and the limits of government power, and a legacy of European art, literature, philosophy, and music, plus the American Creedliberty, equality, individualism, representative government, and private property.

Every immigrant group assimilated this culture. Now?

Western Civilization
The defining features of Western civilization include the separation of religious and secular authority, the rule of law and social pluralism, the parliamentary institutions of representative government, and the protection of individual rights and civil liberties as the buffer between citizens and the power of the state: Individually almost none of these factors was unique to the West. The combination of them was, however, and this is what gave the West its distinctive quality.

Huntington on The Clash of Civilizations

Fundamental source of conflict in future will not be ideological or economic Conflict will be between cultures, civilizations
A self-fulfilling prophecy?

A civilization is the highest cultural grouping of people and the broadest level of cultural identity people have short of that which distinguishes humans from other species.
Defined by language, history, religion, customs, institutions, selfidentification of people Its what you are deep down; not what you believe in or what you can become

What did Huntington say?

Human beings, are divided along cultural lines Western, Islamic, Hindu and so on. There is no universal civilization. Instead, there are these cultural blocks, each within its own distinct set of values. The Islamic civilization, he wrote, is the most troublesome. People in the Arab world do not share the general suppositions of the Western world. Their primary attachment is to their religion, not to their nation-state.

It is the setting!
He argued that people in Arab lands are intrinsically not nationalistic. He argued that they do not hunger for pluralism and democracy in the way these things are understood in the West. Their culture is inhospitable to certain liberal ideals, like pluralism, individualism and democracy. But it now appears as though they were simply living in circumstances that did not allow that patriotism or those spiritual hungers to come to the surface. Culture is important, but underneath cultural differences there are these universal aspirations for dignity, for political systems that listen to, respond to and respect the will of the people. Ultimately qualities of a people are actually determined by context.

Huntingtons Thesis
In the new worldthe most pervasive, important and dangerous conflicts will not be between social classes, rich and poor, or other economically defined groups, but between people belonging to different cultural entities. Tribal wars and ethnic conflicts will occur within civilizationsAnd the most dangerous cultural conflicts are those along the fault lines between civilizations For forty-five years the Iron Curtain was the central dividing line in Europe. That line has moved several hundred miles east. It is now the line separating peoples of Western Christianity, on the one hand, from Muslim and Orthodox peoples on the other.

Example: Yugoslavia
Fault Lines (Islamic,
Western, and Orthodox-Slavic)

Cleft Countries
1. Serbia (mainly Eastern Orthodox, allied with Russia) 2. Kosovars (mainly Muslim, allied with Albania) 3. Croatian (mainly Catholic, allied with West) 4. Bosnians (Mixture of all three)

Torn Countries
Definition: Countries trying to change from one civilization to another. Success depends on:
1. Elites 2. Public 3. Host Civilization

Examples: Turkey and Mexico

The Cold War Map

Huntingtons Civilizations
Hindu, Western Christendom; Slavic Orthodox, Islamic, Sinic, Latin America, Buddhist, Japan, Turkey, Sub-Saharan Africa

Fault Lines of the Future

Why Civilizations Will Clash

1. Differences between civilizations are real and basic. Civilizations are the ultimate human tribes, They represent the immutable psychic need people have for a shared belief system World is becoming smaller more interaction between peoples more consciousness of civilizations, differences Processes of economic modernisation are separating people from their local identities nation-state weakened as source of identity religion filling gap

2. 3.

Why Civilizations Will Clash

4. Civilization consciousness enhanced by role of the West
West at peak of power, triggering return to roots among non-Western civilizations De-westernization of elites, while masses are more exposed to American cultures, styles, habits

5. Cultural characteristics are difficult to change, differences difficult to resolve 6. Growth of economic regionalism

Why Civilizations Will Clash

The West in effect is using international institutions, military power and economic resources to run the world in ways that will maintain Western predominance, protect Western interests and promote Western political and economic values The efforts of the West to promote its values of democracy and liberalism to universal values, to maintain its military predominance and to advance its economic interests engender countering responses from other civilizations

Questions

What are your reactions to Barbers and Huntingtons provocative ideas? Do you agree or disagree with them? Why? What is your vision for how the world will evolve?

Critiques of Huntingtons Thesis

Scholars of Islamic Studies

Edward Said
Huntington ignores internal dynamics and plurality of every civilization Ignores the major contest in most modern cultures [that] concerns the definition or interpretation of each culture A great deal of demagogy and downright ignorance is involved in presuming to speak for a whole religion or civilization. Alas,(for Huntington) the West is West and Islam is Islam

Edward Said
Huntington is an ideologist, someone who wants to make "civilizations" and "identities" into what they are not: shutdown, sealed-off entities that have been purged of the myriad currents and countercurrents that animate human history, and that over centuries have made it possible for that history not only to contain wars of religion and imperial conquest but also to be one of exchange, crossfertilization and sharing. This far less visible history is ignored in the rush to highlight the ludicrously compressed and constricted warfare that "the clash of civilizations" argues is the reality.

Edward Said
Huntington writes that "the world's billion or so Muslims are 'convinced of the superiority of their culture, and obsessed with the inferiority of their power.'" Did he canvas 100 Indonesians, 200 Moroccans, 500 Egyptians and fifty Bosnians? Even if he did, what sort of sample is that?

Edward Said again

These are tense times, but it is better to think in terms of powerful and powerless communities, the secular politics of reason and ignorance, and universal principles of justice and injustice, than to wander off in search of vast abstractions that may give momentary satisfaction but little self-knowledge or informed analysis. "The Clash of Civilizations" thesis is a gimmick like "The War of the Worlds," better for reinforcing defensive self-pride than for critical understanding of the bewildering interdependence of our time. [Huntingtons thesis revives] the black-white, us-them, or good-evil world dichotomy that had been so prevalent during the height of the Cold War, substituting threats from Islamic terrorists for those from Communist spies

Modernization is really the issue: Norris and Inglehart

Industrialization brings women into the paid work force and dramatically reduces fertility rates. Women attain literacy and educational opportunities. Women are enfranchised and begin to participate in representative government, but still have far less power than men. The post-industrial phase brings a shift toward greater gender equality as women move into higher status economic roles in management and the professions, and gain political influence within elected and appointed bodies. Over half of the world has not yet entered this phase; only the more advanced industrial societies are currently moving on this trajectory.

Norris and Inglehart: The True Clash of Civilizations

Huntington is partly right: culture does matter, and indeed matters a lot, so that religious legacies leave their distinct imprint on contemporary values. But Huntington is essentially mistaken in assuming that the core clash between the West and Islamic worlds concerns democracy, The primary cultural fault line between the West and Islam concerns modernization and its impact on social issues of gender equality and sexual liberation. The values separating Islam and the West revolve far more centrally around Eros than Demos. The clash is about whether societies are willing to accept a more permissive and liberal sexuality, and tolerate divorce, abortion and homosexuality.

Leading the Rest of the World to Question American Motives

A lot depends on your point of view!

Finally, some introspection

What about us?

Where do we fit in to all this?

Globalization and the Economy

What do we mean by economic globalization?

Global economic integration, called Globalization, is defined as: relatively free flow of goods, services, capital, people, technology & ideas across national borders. Post-WW II, the international economic integration has been accelerating. But the world has been globalized for a long time. The process has speeded up since the advent of industrial revolution and has been accelerating ever since. The post-industrial revolution globalization: Wave I: 1820-1914 Wave II: 1950-present.
Between 1914 and 1950, the process got disrupted due to a variety of reasons: two world wars, bad policy mistakes, clamor for protectionism from businesses, and the like.

Looking back
Before the industrial revolution, India and China were more advanced than Europe:
In early 18th century, India represented 20% of the world GDP; China 32%. Indias textiles a world leader in quality and exports. China was similarly a world leader in silk, porcelain, etc. and a pioneer of many technologies. Per capita incomes were about the same all over.

First wave resulted in industrialization of the North and deindustrialization of the South; the second wave may witness the reversal of this effect.

Drivers of Globalization
The process of globalization has been driven by: Technological developments in the areas of transportation, communication, IT and many others. Reduced tariffs. Broadening and deepening of financial markets. Deregulation and institutional innovations. Developments in the art and science of management. Recognition of benefits to be gained by participating in the globalization process. Multinational Companies are the principal instruments of the growth of globalization.

Multinational Corporations & Executives

Mobility distinguishes the new businessmen, the trans-nationals. These are people without national loyalties, not even dual ones, since they identify with their corporations, & their corporations have offices, plants, workers, suppliers, & consumers all over the world. It is no longer in Fords interest to be thought of as an American company. Fords market is global, and it conceives of itself as a global entity. These new businessmen have little need for national loyalty, view national boundaries as obstacles that thankfully are vanishing, and see national governments as residues from the past whose only useful function now is to facilitate the elites global operations. This is the transnational capitalist class. Are you part of it?

Causes of Increased Trade Flows

Transportation and Communication Costs:

Continuous cost decline due to better technology:
Ocean shipping and railroads during the first wave Declining ocean and air freight costs during the second wave. A similar decline in communication costs: Cable and telephone cost during wave one. Telephone and satellite technology improvements at a dramatic pace during the second wave. To illustrate, a three minute telephone call between New York and London cost $ 250 in 1930 and $0.10 today

Communication cost improvements have been instrumental in the transmission of ideas.

And Events & Forces are Converging Rapidly

In-sourcing
UPS takes over logistics operation

Supply-chaining
Wal-mart

Informing
Google, yahoo

The Steroids
Wireless access, VoIP, Facebook? Twitter?

Leading some people to believe that

When the world is flat, you can innovate without having to emigrate

Thomas Friedmans Three Phases of Globalization Globalization 1.0 (1492-1800)

Countries globalizing for resources & imperial conquest

Globalization 2.0 (1800-2000)

Companies globalizing for markets & labour

Globalization 3.0 (2000- )

Individuals & small groups globalizing

Criticisms of Thomas Friedman

Too breathless & without perspective; e.g., lists fall of Berlin Wall & Open Source as equally revolutionary. Offers Dell Theory of Conflict Prevention (earlier McDonalds) Two countries that are part of the Dell global supply chain (earlier, which have McDonalds) will not go to war Ahistorical; lots of wars between countries with cross-investments and extensive trade relations Simplistic Prescriptions: Open up your economy, be less corrupt, create institutions of good governance, let companies hire and fire workers more easily Too Hagiographic? Every CEO he interviews is brilliant; Nilekanis line

Economic Rationales for Globalisation

Opening up an economy leads to overall gains in efficiency (even though there may be distributional consequences) Theory of Comparative Advantage in International Trade

Ricardo and Comparative Advantage

David Ricardos central idea is that

two countries can obtain mutual gains from trade, provided that they trade along the lines of "comparative advantage;" (absolute advantage not needed) and that ideally a market system with profit-seeking enterprises will lead them to do so.

Comparative advantage is a bit more subtle

opportunities for mutual gains from trade arise from differences in the conditions of production in the two countries, and that, so long as there are differences, there will always be opportunities for trade, even if one country can produce everything more cheaply than the other.

Samuelsons View
When an economics skeptic asked Nobel Laureate Paul Samuelson to provide a meaningful and non-trivial result from economics, he quickly responded with, "comparative advantage." The Ricardian model shows that if we want to maximize total output in the world then, first, fully employ all resources worldwide; second, allocate those resources within countries to each country's comparative advantage industries; and third, allow the countries to trade freely thereafter.

But Trade Still Mainly Within Blocs; Not All Get to Take Part
The Regionalization of World Trade
This graphic illustrates the network of world trade in 1992. The thickness of lines shows the volume of trade between countries. Colors distinguish regional trading blocs. Note that most world trade took place within regional trading blocs, with the United States, Germany, and Japan at the center of each of the three main blocs.

What might have changed since 1992?

How is the globalized economy organized?

Global Value Chains and International Production Networks

Global Value Chain (GVC): Relates to products/services/industries

Value Chain (VC)
Full range of value-added activities involved in conception, design, getting inputs, production, marketing, distribution, support of a product/service integrated system, local, national, regional, or global Firm can focus on one or more activities in VC

Global Value Chain (GVC)

activities are geographically dispersed across borders to different countries (and coordinated, re-integrated)

NOTE: Firm can participate in multiple GVCs e.g. Sony: computers, consumer electronics, games, movies

International Production Network (IPN)

Production network
Full set of linkages within or among group of firms in a particular value chain to produce specific goods and services How lead firms such as Toyota, Nokia, Levi, Carrefour, organize network of subsidiaries, affiliates, suppliers to deliver a product

International Production Network (IPN)

Distribution and coordination of geographically dispersed activities in multiple country locations
Intra-firm network Inter-firm network, e.g. subcontracting, outsourcing

NOTE: A firm can belong to multiple IPNs, e.g. Saha Group in Thailand as supplier to Nike, Adidas, Reebok

Intra-firm Production Network: Denso in SE Asia

Source: GPN Working Paper 7

Inter-Firm IPN in the Apparel GVC: Production of Jeans by Levi

Purchase South Korean yarn Woven and dyed in Taiwan Cut in Bangladesh Assembled in Cambodia Matched with Japanese zippers Deliver final product to US, EU retailers
All by subcontractors Coordinated by Li & Fung from Hong Kong

In Sum: International Production Network

IPN describes the relationship among specific set of enterprises that jointly produce particular set of products/services
Examples: Levi and its suppliers for jeans, Toyota and its suppliers for particular products, Dell and its suppliers
map of relationship among a specific set of firms

Example: ACERs IPN for Travelmate C110

Implications of GVCs/IPNs for Enterprises

Global export markets increasingly involve exports of parts/components within GVCs
Even small components can be produced for regional and global markets within framework of GVCs
Sundram Fasteners generator caps for GM

Niche markets can be regional/global

Bharat Forge worlds largest factory for forgings, e.g. for auto parts -engines, axles, etc. organic fruit and vegetables through global retailers (Carrefour)

New opportunities for firms, including SMEs, to enter global markets (components, niche, partner, brand?)

IF enterprise can deliver right product, right quantity, right quality, at right time; and IF can upgrade over time

Examples: From producing globally to buying globally

Levi Strauss Even in 1990s owned production facilities (22) By mid-2004 ALL production outsourced Retain key value added functions (design, branding) Sets product/process standards for its network GM and Ford Classic example of vertically integrated firms By late 1990s both spun off parts manufacturing Today GM & Ford mostly design & assemble vehicles Their suppliers mostly make what goes into them Levi Strauss, GM/Ford in very different industries but reacting to global competition/developments similarly

The Pros and Cons of Globalization

Zero Risk Globalization Naomi Klein

We are witnessing the age of the super brand. Multinationals focus on brands deep inner meaning athleticism, spirit of individuality, wilderness or community. Having established the soul, they seek to get rid of cumbersome bodies. In 1997, Levis had just laid off 16,310 employees in two years; launched an ad campaign costing $90 million. Nike: nike/en-US/video Brands not products may be a brilliant conceptual strategy, yet someone has to make the products. Companies dont employ labour anymore, instead subcontract out: no need to find out who is doing their work and in what conditions, at what cost. Cheaper production => more money for advertising-marketing.

So who does the dirty work?

Mostly, it is people who will work for low rates and not complain about work conditions. Free trade zones: offer tax holidays to foreign investors. As bait, poor countries offer: tax breaks, lax regulation and cheap labour force each country and each manufacturer falling over themselves to offer cheaper and cheaper labour. Naomi Klein terms this Zero-risk globalization: companies ship in material, cheap non-union workforce assembles it and finished products or garments are shipped out, with no export tax.

International Comparison of Labor Costs in Apparel Industry

Country Wage per Hour (W) $8.00 $1.15 $1.15 $0.85 $0.65 $0.65 $0.15 Productivity (P) 1.00 0.65 0.70 0.70 0.65 0.70 0.50 Real Cost of Labor (W / P) $8.00 $1.77 $1.64 $1.21 $1.00 $0.93 $0.30

United States Malaysia Dominican Rep. Mexico Thailand Guatemala Indonesia

Average (excluding US)

$0.77

0.65

$1.14

Pay of Apparel Company CEOs

CEO
Philip Marineau Tommy Hilfiger Ralph Lauren Paul Charron Paul Fireman Philip Knight

Company
Levi Strauss Tommy Hilfiger Polo Ralph Lauren Liz Claiborne Reebok Nike

Annual Salary
$24.9 million $22.4 million $4.5 million $3.12 million $3.1 million $2.73 million

Hourly Wage
$11,971 $10,769 $2,163 $1,500 $1,490 $1,312

A $100 Dress: Who gets What?

Guess? - Sparkle Stretch Dress: Cotton with nylon and spandex.

Customer Pays $100 Retailer: $50.00

Manufacturer: textiles: contractor: workers:

$50.00 $22.50 $15.00 $6.00

The Major Critiques of Market-Driven Globalization

It destroys the ability of states to regulate their national economies, raise taxes and spend money on public goods and social welfare In the process, it undermines democracy, imposing in its place the rule of unaccountable bureaucrats, corporations and markets It has causedand is causingmass destitution and increased inequality within and between nations It is destroying the livelihood of peasant farmers It is depriving the poor of affordable medicines It is lowering real wages and labour standards and increasing economic insecurity everywhere

The Major Critiques of Market-Driven Globalization

It is destroying the environment, eliminating species and harming animal welfare It is causing, in these various ways, a global race to the bottom, in which low taxes, low regulatory standards, and low wages are imposed on every country It is permitting global financial markets to generate crises that impose heavy costs particularly on the less advanced economies It enshrines greed as the motive-force of human behavior And it is destroying the variety of human cultures Source: Martin WolfWhy Globalization Works

The Dangers of Globalisation

Hot Money
Speculative capital can flow in and out of economies quickly, with adverse impacts on economies & currency rates e.g. Asian Financial Crisis

One size fits all approaches to economic policy

Structural adjustment & free-market policies advocated by World Bank & IMF: rich got richer, and poor increased in absolute numbers; no representation to poor countries, imposition of rich country agenda loss of legitimacy of IMF & World Bank

The Dangers of Globalisation

Loss of national sovereignty
TRIMs: Trade policy no longer tool for industrialisation TRIPs: Innovation monopolies to MNCs WTO: Trade placed above environment, justice, equity, community; decision-making by a few countries, but described as consensus

Threats to local cultures, ways of life

Arundhati Roy on Globalisation

On the global stage, beyond the jurisdiction of sovereign governments, international instruments of trade and finance oversee a complex system of multilateral laws and agreements that have entrenched a system of appropriation that puts colonialism to shame. This system allows the unrestricted entry and exit of massive amounts of speculative capital hot money into and out of third world countries, which then effectively dictates their economic policy

Arundhati Roy on Globalisation

Using the threat of capital flight as a lever, international capital insinuates itself deeper and deeper into these economies. Giant transnational corporations are taking control of their essential infrastructure and natural resources, their minerals, their water, their electricity. The WTO, the World Bank, the IMF, and other financial institutions like the ADB virtually write economic policy and parliamentary legislation. With a deadly combination of arrogance and ruthlessness, they take their sledgehammers to fragile, interdependent, historically complex societies and devastate them

Lets hear her in person

http://www`.youtube.com/watch?gl=US&hl=hi& v=YjFgar7ZoaU

Is there hope?
Public Power: The Globalization of Dissent
Through organizations like World Social Forum The success of the anti-big-dam movement (Incidentally, all highly globalized networks!)

The dangers faced by dissent:

The media: The tyranny of crisis reportage & its fear of the mundane The NGO-ization of resistance: Threatens to turn resistance into a well-mannered, reasonable, salaried, 9-to-5 job Confrontation with increasingly repressive states: Using terrorism to muzzle dissent

- Arundhati Roy

Are these concerns really about Network Power?

At the heart of globalization is a basic, and politically explosive, mystery Globalization proceeds through the breaking down of boundaries, the unfolding of diversity &freedom of choice So why is it experienced by so many people as a constriction, an oppression and a loss of freedom? David Singh Grewal believes the answer lies in something called network power. Networks are the means by which globalization proceeds. All networks have standards embedded in them. In theory we can choose among the standards and become more free. In practice, our choices tend to narrow over time, so that standards are imposed on us.

Grewal (continued)
Grewal sees such a merger of reason and force in many areas, economic and non-economic The Windows operating system The ISO 9000 standard of industrial control Britains adoption of the metric system. Since English has become the first global lingua franca, many non-native speakers have freely chosen to speak it. But, for someone who wants to participate in the global economy which is to say, the economy to what extent is this really a choice?

Jagdish Bhagwati Defends Globalization

Countries gain from investments by MNCs even though:
In the past foreign aid, with tied supplies, was inefficient MNCs negotiate tax concessions MNCs want codes that prevent government restrictions but dont mind subsidies & tax breaks for themselves!

Large corporations are not as large as is made out

Compare with GDP, need to use value-added, not sales

Countries can play one MNC against another Size Power: Power depends on barriers to entry, extent of competition Countries with poor governance vulnerable NGOs, other agencies pushing for greater transparency, corporate governance

MNCs used to interfere in local politics; not any more

In the 1960s & 70s, MNCs got involved in regime change to protect their interests
Killing of Lumumba in Congo Coup against Allende in Chile

Today, similar activities unlikely (Bhagwati):

Spread of democracy Reach of media

Today, MNCs accused of not standing up to politicians! (Shell in Nigeria)

In conclusion, according to Jagdish Bhagwati

Given the rules of the game, MNCs can not be faulted at the level of practices They bring good to workers and the poor nations But they require utmost scrutiny when they organise and spend to set and exploit the rules of the game

What About Human Values?

Jihad

The Role for countries like India

As the emerging economies (basically fast-growing developing countries) play a global role, they face an acute dichotomy- on the one hand they are expected to take on greater responsibility and make a larger contribution to the management of what are called the global commons. At the same time, they continue to seek a global regime which will deliver to them the resources and the instruments to tackle significant domestic challenges relating to balanced socio-economic development. Finding the right balance between the demands of a global role and the imperatives of domestic challenges of is the essence of the globalization process that faces India.

Thank you !