Failed god not that failed

By Prof Dr Sohail Ansari   “Arab nor a non-Arab has any superiority over an Arab; also a white has no superiority over black nor a black has any superiority over white except by piety (taqwa) and good action

    Fail when reality fails

·        Ideology fails when the reality of it is no longer credible. Communism was not an ideological god that failed but failed ideological god as its credibility had never been real.

The view of the Quran and philosophy on life

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Why does the Quran not mention the universe in the same way as philosophy does?

Let us understand the answer to this question through a parable. Once, a religious and very artistic king wanted to write something that was suitable for the holiness of the Quran and the miraculousness of its words and to clothe its miraculous body with a nice garment.

That artistic person wrote the Quran in a wondrous way. He used all precious gems while writing it. In order to attract attention to its various realities, he wrote some letters with diamonds and emeralds, some with pearls and onyx, some with brilliant and coral and some with gold and silver.

He decorated it in such a style that both those who could read and those who could not read were amazed by it. It seemed to be a very precious antique piece of work to experts since the outward beauty of the book was an indication of the bright beauty of its meaning. 

Then, he showed that wise, artistic and decorated book to a philosopher and a Muslim scholar. He ordered each of them to write a book about the wisdom of the book in order to test and to reward them.

First, the philosopher then the scholar wrote a book about it. The book of the philosopher mentioned only the adornment of the letters, the connection between words, their positions and the properties of its gems. It did not mention its meaning. For, the foreign philosopher did not know how to read Arabic. He did not regard the ornamented Quran as a book and as a writing that had a meaning. He saw it as an ornamented antique work. The philosopher did not know Arabic but he was a good engineer, a fine artist, a skilled chemist and an expert jeweler. He wrote the book based on the arts and sciences he knew.    

When the Muslim scholar looked at it, he saw that it was the glorious and wise Quran. He did not pay attention to the external adornments; he was not interested in the ornamented letters. Rather, he became preoccupied with something that was a million times higher, more elevated, more subtle, more noble and more beneficial. For, mentioning the sacred truths and lights of the mysteries beneath the veil of the decorations, he wrote a truly fine commentary.

Then the two of them took their works and presented them to the illustrious king. The king first took the philosopher's work. He looked at it and saw that that self-centered and nature-worshipping man had worked very hard, but he had written nothing of true wisdom. He had understood nothing of its meaning. Indeed, he had confused it and been disrespectful towards it, and ill-mannered even. For, supposing that the source of truths, the Quran, to be meaningless decoration, he had insulted it as being without value in regard to its meaning. And so the wise king hit him over the head with his work and expelled him from his presence.

Then he looked at the work of the other, the truth-loving, scrupulous scholar, and saw that it was an extremely fine and beneficial commentary, a most wise composition full of guidance. He said, "Congratulations! May God bless you! This is wisdom and they call those who possess it knowledgeable and wise. As for the other man, he was a craftsman who had exceeded his authority.

Then, in reward for the scholar's work, he commanded that in return for each letter ten gold pieces should be given him from his inexhaustible treasury.

And so, if you have understood the parable, look at its reality and see this:

The ornamented Quran in the parable is this artistically fashioned universe, whose ground is ornamented with flowers, and whose sky is decorated with stars.

And the king is Allah, who is ruler of the pre-eternity and post-eternity.

As for the two men, the first one, that is the foreigner, is philosophy and philosophers, and the other is the Quran and its students.

Yes, the Quran is the most eloquent translator of the book of the Universe. Yes, it instructs man and the jinn concerning the signs of creation inscribed by the pen of power on the pages of the universe and on the leaves of time. And it looks at beings, each of which is a meaningful letter, as bearing the meaning of another, that is, it looks at them on account of Allah, who creates them.

For instance, you can look at a mirror in two ways:

1- To look at the mirror to see the mirror itself; this looking is called literal meaning.

2- To look at the mirror to see the thing or person that appears on it. This second look is called signified meaning. In this look, the mirror is of no importance. What matters is what is seen on the mirror.

Philosophy looks at the universe, which is like a mirror, with literal meaning, that is, on account of beings.

The Quran looks at the mirror of the universe to see the artist that becomes manifest on that mirror. It has discovered His names and attributes and said, "How beautifully they have been created; they show the beauty of Allah, their Maker, in the best way."

On the other hand, philosophy has plunged into the decorations of the letters of the universe and beings and has become bewildered. Instead of looking at the universe on account of Allah, it has looked at the universe on account of beings; instead of saying, "How beautifully they have been made", it has said, "How beautiful they are" and has exceeded its boundaries.

We can understand the difference of these two views through the following parable:

If we put an antique chair, before philosophers, they would start to examine it. They would search its shape, structure, the type of the tree, when it was made, etc. They would never think about who made this chair and why it was made. They would act as if that chair came into being as a coincidence.

However, the Quran and its students would be interested in the maker of the chair rather than the ornament of the chair and the quality of the tree. They would focus on questions like, “Who made this chair? Why did he make it? What is the meaning of this chair? What is the name of the maker of this chair and what are his attributes? Does he have any commands for us?”

When a philosopher and his students saw a horse tied to a stake pushed into the ground, they would be interested in the stake, the horse and the rope. They would write many books about them. However, they would not be interested in the issues of wisdom like, “Who does the horse belong to? Who pushed this stake into the ground? Why did he tie the horse here? Where did the rope come from? What does the person who did it want to say?" However, the Quran is interested in real wisdom and teaches people the answers to the questions above. 

The world and the things in it are works of art that have been made artistically. The world and the other stars are connected to the sun with spiritual ropes and rotate around it. Philosophy is interested only in the outward appearance of this world and the things in it. It mentions the laws that connect them to each other. 

It does not think about why and by whom these wonderful things were created and who imposed these laws. However, the Quran sees everything as a window leading to the artist of everything, Allah. It tries to make people know Allah through those things and looks at the beings on account of Allah. It discovers Allah's names and attributes in everything, from a fly to the sun. Everything looks like a letter and a poem, including the names of their artists. Everything looks like a treasure in which divine attributes are kept.

Thus, philosophy looks at the universe with literal meaning, that is, on account of beings. The Quran looks at it with signified meaning, that is, on account of its maker, Allah. The expressions of the Quran and philosophy, which look at the universe with different reasons and through different windows, about the universe will definitely be different.

The Quran removes the veil of heedlessness and the veil of ordinariness and habituation placed by philosophy on the simple things that are regarded as worthless in the universe but that are actually extraordinary and miracles of Allah's power; it shows those extraordinary beings to sane people attracting their look on them and showing them an endless treasure of knowledge and science. 

For instance, the Quran says the following:

“Do they not look at the Camels, how they are made?― And at the Sky, how it is raised high?

And at the Mountains How they are fixed firm?―

And at the Earth, how it is spread out? It is He who sendeth down rain from the skies.

With it We produce vegetation of all kinds: from some We produce green (crops), out of which We produce grain, heaped up (at harvest).

Out of the date-palm and its sheaths (or spathes) (come) clusters of dates hanging low and near: and (then there are) gardens of grapes, and olives, and pomegranates each similar (in kind) yet different (in variety).

When they begin to bear fruit, feast your eyes with the fruit and the ripeness thereof. Behold! In these things there are signs for people who believe”

Thus, with the verses above and similar ones, the Quran attracts attention to the things that are regarded as ordinary and worthless. It emphasizes that they are extraordinary works of art. It orders us to look at them, to think about their subtleties and to know Allah, who is their artist.

As for philosophy, it hides the miracles and works of Allah's power under the veil of custom and habituation, and mentions them inattentively. It pays attention to rare individuals that are exceptions.

For instance, it regards the creation of man, which is a miracle of divine power, as normal and ordinary and looks at it indifferently. However, it displays a man with three legs or two heads.

Philosophy regards the nutrition of young animals and humans regularly by Allah's treasure of mercy as normal and ordinary, and hides it under the veil of ingratitude. However, it sees the exceptional nutrition of an insect living alone under the sea by a green leaf and wants to make all fishermen cry through the grace and generosity that become manifest on it. 

This is the wealth and richness of the Quran in terms of knowledge, wisdom and making Allah known; and this is the poverty and bankruptcy of philosophy in terms of knowledge, taking lessons and making Allah known.

 

 

 

Political globalization

From Wikipedia, the free encyclopedia

Political globalization refers to the growth of the worldwide political system, both in size and complexity. That system includes national governments, their governmental and intergovernmental organizations as well as government-independent elements of global civil society such as international non-governmental organizations and social movement organizations. One of the key aspects of the political globalization is the declining importance of the nation-state and the rise of other actors on the political scene. The creation and existence of the United Nations has been called one of the classic examples of political globalization.

Political globalization is one of the three main dimensions of globalization commonly found in academic literature, with the two other being economic globalization and cultural globalization.^[1]

Definitions[edit]

The Flag of the United Nations flying at United Nations Plaza in the Civic Center, San Francisco, California. The UN is one of the key organizations in the process of the political globalization

William R. Thompson has defined it as "the expansion of a global political system, and its institutions, in which inter-regional transactions (including, but certainly not limited to trade) are managed".^[2] Valentine M. Moghadam defined it as "an increasing trend toward multilateralism (in which the United Nations plays a key role), toward an emerging 'transnational state apparatus,' and toward the emergence of national and international nongovernmental organizations that act as watchdogs over governments and have increased their activities and influence".^[3] Manfred B. Steger in turn wrote that it "refers to the intensification and expansion of political interrelations across the globe".^[4] The longer definition by Colin Crouch goes as follows: "Political globalization refers to the growing power of institutions of global governance such as the World Bank, the International Monetary Fund (IMF) and the World Trade Organization (WTO). But it also refers to the spread and influence of international non-governmental organizations, social movement organizations and transnational advocacy networks operating across borders and constituting a kind of global civil society."^[5] Finally, Gerard Delanty and Chris Rumford define it as "a tension between three processes which interact to produce the complex field of global politics: global geopolitics, global normative culture and polycentric networks."^[6]

Methodology[edit]

Salvatore Babones discussing sources used by scholars for studying political globalizations noted the usefulness of Europa World Year Book for data on diplomatic relationships between countries, publications of International Institute for Strategic Studies such as The Military Balance for matters of military, and US government publication Patterns of Global Terrorism for matters of terrorism.^[7]

Political globalization is measured by aggregating and weighting data on the number of embassies and high commissioners in a country, the number of the country's membership in international organization, its participation in the UN peacekeeping missions, and the number of international treaties signed by said country. This measure has been used by Axel Dreher, Noel Gaston, Pim Martens Jeffrey Haynes and is available from the KOF institute at ETH Zurich^[8][9]

Aspects[edit]

Like globalization itself, political globalization has several dimensions and lends itself to a number of interpretations. It has been discussed in the context of new emancipatory possibilities, as well as in the context of loss of autonomy and fragmentation of the social world.^[6] Political globalization can be seen in changes such as democratization of the world, creation of the global civil society,^[10] and moving beyond the centrality of the nation-state, particularly as the sole actor in the field of politics.^[4][11] Some of the questions central to the discussion of the political globalization are related to the future of the nation-state, whether its importance is diminishing and what are the causes for those changes; and understanding the emergence of the concept of global governance.^[12] The creation and existence of the United Nations has been called one of the classic examples of political globalization.^[11] Political actions by non-governmental organizations and social movements, concerned about various topics such as environmental protection, is another example.^[11]

David Held has proposed that continuing political globalization may lead to the creation of a world government-like cosmopolitan democracy, through this vision has also been criticized as too idealistic.^[13]

Cultural globalization

Cultural globalization refers to the transmission of ideas, meanings and values around the world in such a way as to extend and intensify social relations.^[1] This process is marked by the common consumption of cultures that have been diffused by the Internet, popular culture media, and international travel. This has added to processes of commodity exchange and colonization which have a longer history of carrying cultural meaning around the globe. The circulation of cultures enables individuals to partake in extended social relations that cross national and regional borders. The creation and expansion of such social relations is not merely observed on a material level. Cultural globalization involves the formation of shared norms and knowledge with which people associate their individual and collective cultural identities. It brings increasing interconnectedness among different populations and cultures.^[2]

Cultural globalization integrates scholars from several disciplines, such as anthropology, sociology, communication, cultural studies, geography, political science and international relations. The field is notably broad as there are several concepts which may be perceived as cultural or transnational. ^[3]

A visible aspect of cultural globalization is the diffusion of certain cuisines such as American fast food chains. The two most successful global food and beverage outlets, McDonald's and Starbucks, are American companies often cited as examples of globalization, with over 32,000^[4] and 18,000 locations operating worldwide respectively as of 2008.^[5] The Big Mac Index is an informal measure of purchasing power parity among world currencies.

Cultural globalization is one of the three main dimensions of globalization commonly found in academic literature, with the two other being economic globalization and political globalization.^[6] However, unlike economic and political globalization, cultural globalization has not been the subject of extensive research.^[3]

Measurement[edit]

There have been numerous attempts to measure globalization, typically using indices that capture quantitative data for trade flows, political integration, and other measures. The two most prominent are the AT Kearney/Foreign Policy Globalization index and the KOF Globalization Index. Cultural globalization, however, is much more difficult to capture using quantitative data, because it is difficult to find easily verifiable data of the flow of ideas, opinions, and fashions. One attempt to do so was the Cultural Globalization Index, proposed by Randolph Kluver and Wayne Fu in 2004, and initially published by Foreign Policy Magazine.^[7] This effort measured cultural flow by using global trade in media products (books, periodicals, and newspapers) as a proxy for cultural flow. Kluver and Fu followed up with an extended analysis, using this method to measure cultural globalization in Southeast Asia.^[8]

Perspectives[edit]

Hybridization[edit]

Many writers suggest that cultural globalization is a long-term historical process of bringing different cultures into interrelation. Jan Pieterse suggest that cultural globalization is involving human integration and hybridization, arguing that it is possible to detect cultural mixing across continents and regions going back many centuries.^[9]They refer, for example, to the movement of religious practices, language and culture brought by Spanish colonization of the Americas. The Indian experience, to take another example, reveals both the pluralization of the impact of cultural globalization and its long-term history.^[10] The work of such cultural historians qualifies the lineage of writers—predominantly economists and sociologists—who trace the origins of globalization to recent capitalism, facilitated through technological advances.

Homogenization[edit]

An alternative perspective on cultural globalization emphasizes the transfiguration of worldwide diversity into a pandemic of Westernized consumer culture.^[11] Some critics argue that the dominance of American culture influencing the entire world will ultimately result in the end of cultural diversity. Such cultural globalization may lead to a human monoculture.^[12][13] This process, understood as cultural imperialism,^[14]  is associated with the destruction of cultural identities, dominated by a homogenized and westernized, consumer culture. The global influence of American products, businesses and culture in other countries around the world has been referred to as Americanization. This influence is represented through that of American-based television programs which are rebroadcast throughout the world. Major American companies such as McDonald's and Coca-Cola have played a major role in the spread of American culture around the globe. Terms such as Coca-colonization have been coined to refer to the dominance of American products in foreign countries, which some critics of globalization view as a threat to the cultural identity of these nations.

Conflict intensification[edit]

Another alternative perspective argues that in reaction to the process of cultural globalization, a "Clash of Civilizations" might appear. Indeed, Samuel Huntington emphasizes the fact that while the world is becoming smaller and interconnected, the interactions between peoples of different cultures enhance the civilization consciousness that in turn invigorate differences. Indeed, rather than reaching a global cultural community, the differences in culture sharpened by this very process of cultural globalization will be a source of conflict.^[15] While not many commentators agree that this should be characterized as a 'Clash of Civilizations', there is general concurrence that cultural globalization is an ambivalent process bringing an intense sense of local difference and ideological contestation.^[16]

Alternatively, Benjamin Barber in his book Jihad vs. McWorld argues for a different "cultural division" of the world. In his book the McWorld represents a world of globalization and global connectivity and interdependence, looking to create a "commercially homogeneous global network". This global network is divided into four imperatives; Market, Resource, Information-Technology and the Ecological imperative. On the other hand, "Jihad" represents traditionalism and maintaining one's identity. Whereas "Clash of Civilizations" portrays a world with five coalitions of nation-states, "Jihad vs. McWorld" shows a world where struggles take place on a sub-national level. Although most of the western nations are capitalist and can be seen as "McWorld" countries, societies within these nations might be considered "Jihad" and vice versa.^[17]

Economic globalization

From Wikipedia, the free encyclopedia

Economic globalization is one of the three main dimensions of globalization commonly found in academic literature, with the two other being political globalization and cultural globalization, as well as the general term of globalization.^[1] Economic globalization is the increasing economic integration and interdependence of national, regional, and local economies across the world through an intensification of cross-border movement of goods, services, technologies and capital.^[2] Whereas globalization is a broad set of processes concerning multiple networks of economic, political, and cultural interchange, contemporary economic globalization is propelled by the rapid growing significance of information in all types of productive activities and marketization, and by developments in science and technology.^[3]

Economic globalization primarily comprises the globalization of production, finance, markets, technology, organizational regimes, institutions, corporations, and labour.^[4] While economic globalization has been expanding since the emergence of trans-national trade, it has grown at an increased rate due to an increase in communication and technological advances under the framework of General Agreement on Tariffs and Trade and World Trade Organization, which made countries gradually cut down trade barriers and open up their current accounts and capital accounts.^[3] This recent boom has been largely supported by developed economies integrating with majority world through foreign direct investment and lowering costs of doing business, the reduction of trade barriers, and in many cases cross border migration

While globalization has radically increased incomes and economic growth in developing countries and lowered consumer prices in developed countries, it also changes the power balance between developing and developed countries and affects the culture of each affected country. And the shifting location of goods production has caused many jobs to cross borders, requiring some workers in developed countries to change careers.^[4]

Global actors[edit]

International governmental organizations[edit]

An intergovernmental organization or international governmental organization (IGO) refers to an entity created by treaty, involving two or more nations, to work in good faith, on issues of common interest. IGO’s strive for peace, security and deal with economic and social questions.^[5] Examples include: The United Nations, The World Bank and on a regional level The North Atlantic Treaty Organization among others.

International non-governmental organizations (NGOs)[edit]

Despite its activity within one nation, NGOs work towards solutions that can benefit undeveloped countries that face the backlash of economic globalization.Classified as any non-profit, voluntary citizens' group which is organized on a local, national or international level. NGOs perform various of service and humanitarian functions, bring citizen concerns to Governments, advocate and monitor policies and encourage political participation through provision of information. For more information, reference non-governmental organization (NGO)^[13]

Multinational corporations[edit]

One of the many changes they have brought to developing countries is increased automation, which may damage less-automated local firms and require their workers to develop new skills in order to transition into the changing economy, leaving some behind. The necessary education infrastructure is often not present, requiring a redirection of the government’s focus from social services to education.^[6] Corporations have outsourced in recent years. In business, outsourcing involves the contracting out of a business process (e.g. payroll processing, claims processing) and operational, and/or non-core functions (e.g. manufacturing, facility management, call center support) to another party (see also business process outsourcing).

ECLAC states that in order to create better economic relations globally, international lending agencies must work with developing countries to change how and where credit is concentrated as well as work towards accelerating financial development in developing countries.^[14] ECLAC further suggests that the United Nations expand its agenda to work more rigorously with international lending agencies and that they become more inclusive of all nations. Key factors in achieving universal competition is the spread of knowledge at the State level through education, training and technological advancements.^[7] Economist Jagdish Bhagwati suggested that programs to help developing countries adjust to the global economy would be beneficial for international economic relations.^[15]

Several movements, such as the fair trade movement and the anti-sweatshop movement, claim to promote a more socially just global economy. The fair trade movement works towards improving trade, development and production for disadvantaged producers. The fair trade movement has reached 1.6 billion US dollars in annual sales.^[8] The movement works to raise consumer awareness of exploitation of developing countries. Fair trade works under the motto of "trade, not aid", to improve the quality of life for farmers and merchants by participating in direct sales, providing better prices and supporting the community.^[9] Meanwhile,the anti-sweatshop movement is to protest the unfair treatment caused by some companies. Some global brands were found to do that before but they took some methods to support the labors soon after. The movement is taken to decrease the wrongdoing and gain the profits for labors.^[10]

Race to the bottom[edit]

Main article: Race to the bottom

Globalization is sometimes perceived as a cause of a phenomenon called the "race to the bottom" that implies that multinational companies are constantly attempting to maintain or increase their influence in countries that are already reliant on foreign investment alone. Multinationals tend to target export dependent countries. Due to a rise in competition, underdeveloped countries are undercutting their competitors through lowering their labor standards thus lowering the labor costs for the multinational companies investing into them. Companies will deliberately move into countries with the most relaxed laws and regulations for labor standards allowing them to whatever they want. This results in factories with harsh labor conditions, low wages, and job insecurity.^[11]

Irreversibility[edit]

According to prominent Chinese economist Gao Shanguan, economic globalization is an irreversible trend due to the fact that world markets are in great need of science and information technologies. With the growing demands of science and technology, Shanquan states that with world markets take on an "increasing cross-border division of labor".^[12]

However, Princeton University professor Robert Gilpin argues that nations' economic policies have mistakenly slowed their own growth by resisting globalization, showing that globalization is not irreversible.^[16] Antonio L. Rappa agrees that economic globalization is reversible and cites International Studies professor Peter J. Katzenstein.^[17]

Impact[edit]

Economic growth and poverty reduction[edit]

Economic growth accelerated and poverty declined globally following the acceleration of globalization.

Per capita GDP growth in the post-1980 globalizers accelerated from 1.4 percent a year in the 1960s and 2.9 percent a year in the 1970s to 3.5 percent in the 1980s and 5.0 percent in the 1990s. This acceleration in growth is even more remarkable given that the rich countries saw steady declines in growth from a high of 4.7 percent in the 1960s to 2.2 percent in the 1990s. Also, the non-globalizing developing countries did much worse than the globalizers, with the former's annual growth rates falling from highs of 3.3 percent during the 1970s to only 1.4 percent during the 1990s. This rapid growth among the globalizers is not simply due to the strong performances of China and India in the 1980s and 1990s—18 out of the 24 globalizers experienced increases in growth, many of them quite substantial."^[18]

Growth Rate of Real GDP per capita

According to the International Monetary Fund, growth benefits of economic globalization are widely shared. While several globalizers have seen an increase in inequality, most notably China, this increase in inequality is a result of domestic liberalization, restrictions on internal migration, and agricultural policies, rather than a result of international trade.^[18]

Poverty has been reduced as evidenced by a 5.4 percent annual growth in income for the poorest fifth of the population of Malaysia. Even in China, where inequality continues to be a problem, the poorest fifth of the population saw a 3.8 percent annual growth in income. In several countries, those living below the dollar-per-day poverty threshold declined. In China, the rate declined from 20 to 15 percent and in Bangladesh the rate dropped from 43 to 36 percent.^[18]

Globalizers are narrowing the per capita income gap between the rich and the globalizing nations. China, India, and Bangladesh, once among the poorest countries in the world, have greatly narrowed inequality due to their economic expansion.^[18]

Global supply chain[edit]

Main article: Global Value Chain

The global supply chain consists of complex interconnected networks that allow companies to produce handle and distribute various goods and services to the public worldwide.

Corporations manage their supply chain to take advantage of cheaper costs of production. A supply chain is a system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer. Supply chain activities involve the transformation of natural resources, raw materials, and components into a finished product that is delivered to the end customer.^[19] In sophisticated supply chain systems, used products may re-enter the supply chain at any point where residual value is recyclable. Supply chains link value chains.^[20] Supply and demand can be very fickle, depending on factors such as the weather, consumer demand, and large orders placed by multinational corporations.^[21]

Labor unions[edit]

Main article: Trade union

Labor Unions were established during industrialization as a solution to poor and unregulated working conditions. Unregulated businesses allowed for low wages, job insecurity and poor working conditions. Trade unions responded by implementing a technique called collective bargaining, where the workers could legally negotiate wages as well as working conditions. As a direct result, labors rights increased as policy and regulation were enforced. Alongside globalization, outsourcing developed which increased corporate power. As a solution, Labor Unions continue to fight for global labor rights standards through trans-national organizations.^[22]

Capital flight[edit]

Main articles: Capital flight and Liquidity crisis

See also: Sudden stop (economics), Tax exporting, Capital strike, and Illicit financial flows

The Argentine economic crisis of 2001 caused in a currency devaluation and capital flight which resulted in a sharp drop in imports.

Capital flight occurs when assets or money rapidly flow out of a country because of that country's recent increase in unfavorable financial conditions such as taxes, tariffs, labor costs, government debt or capital controls. This is usually accompanied by a sharp drop in the exchange rate of the affected country or a forced devaluation for countries living under fixed exchange rates. Currency declines improve the terms of trade, but reduce the monetary value of financial and other assets in the country. This leads to decreases in the purchasing power of the country's assets.

A 2008 paper published by Global Financial Integrity estimated capital flight to be leaving developing countries at the rate of "$850 billion to $1 trillion a year."^[23] But capital flight also affects developed countries. A 2009 article in The Times reported that hundreds of wealthy financiers and entrepreneurs had recently fled the United Kingdom in response to recent tax increases, relocating to low tax destinations such as Jersey, Guernsey, the Isle of Man and the British Virgin Islands.^[24] In May 2012 the scale of Greek capital flight in the wake of the first "undecided" legislative election was estimated at €4 billion a week.^[25]

Capital flight can cause liquidity crises in directly affected countries and can cause related difficulties in other countries involved in international commerce such as shipping and finance. Asset holders may be forced into distress sales. Borrowers typically face higher loan costs and collateral requirements, compared to periods of ample liquidity, and unsecured debt is nearly impossible to obtain. Typically, during a liquidity crisis, the interbank lending market stalls.

Inequality[edit]

Main articles: Economic inequality and International inequality

While within-country income inequality has increased throughout the globalization period, globally inequality has lessened as developing countries have experienced much more rapid growth.^[26] Economic inequality varies between societies, historical periods, economic structures or economic systems, ongoing or past wars, between genders, and between differences in individuals' abilities to create wealth.^[27] Among the various numerical indices for measuring economic inequality, the Gini coefficient is most often-cited.

Of the factors influencing the duration of economic growth in both developed and developing countries, income equality has a more beneficial effect than trade openness, sound political institutions, and foreign investment.^[28]

Economic inequality affects equity, equality of outcome and subsequent equality of opportunity. Although earlier studies considered economic inequality as necessary and beneficial,^[29] some economists see it as an important social problem.^[30] Early studies suggesting that greater equality inhibits economic growth did not account for lags between inequality changes and growth changes.^[31] Later studies claimed that one of the most robust determinants of sustained economic growth is the level of income inequality.^[28]

International inequality is inequality between countries. Income differences between rich and poor countries are very large, although they are changing rapidly. Per capita incomes in China and India doubled in the prior twenty years, a feat that required 150 years in the US.^[32] According to the United Nations Human Development Report for 2013, for countries at varying levels of the UN Human Development Index the GNP per capita grew between 2004 and 2013 from 24,806 to 33,391 or 35% (very high human development), 4,269 to 5,428 or 27% (medium) and 1,184 to 1,633 or 38% (low) PPP$, respectively (PPP$ = purchasing power parity measured in United States dollars).^[33]

Certain demographic changes in the developing world after active economic liberalization and international integration resulted in rising welfare and hence, reduced inequality. According to Martin Wolf, in the developing world as a whole, life expectancy rose by four months each year after 1970 and infant mortality rate declined from 107 per thousand in 1970 to 58 in 2000 due to improvements in standards of living and health conditions. Also, adult literacy in developing countries rose from 53% in 1970 to 74% in 1998 and much lower illiteracy rate among the young guarantees that rates will continue to fall as time passes. Furthermore, the reduction in fertility rates in the developing world as a whole from 4.1 births per woman in 1980 to 2.8 in 2000 indicates improved education level of women on fertility, and control of fewer children with more parental attention and investment.^[34]Consequentially, more prosperous and educated parents with fewer children have chosen to withdraw their children from the labor force to give them opportunities to be educated at school improving the issue of child labor. Thus, despite seemingly unequal distribution of income within these developing countries, their economic growth and development have brought about improved standards of living and welfare for the population as a whole.

Recent developments, such as just-in-time manufacturing, have affected those working manufacturing jobs and agricultural work more than others. When larger companies or others who control the supply chain decide to reduce manufacturing, these people oftentimes find themselves out of a job with little or no assistance.^[35]

Gender inequality[edit]

Main article: Gender inequality

Health risks[edit]

Alongside globalization there is an increasing internationalization of health risks.^[36] Corporations resort to outsourced employment in developing nations, which in turn forces low income foreigners at the bottom of the "food chain," as individuals drudge for pennies on the dollar under unregulated, unsanitary and implacable conditions. Women in agriculture, for example, are often asked to work long hours handling chemicals such as pesticides and fertilizers without any protection.^[21] There are adverse health consequences from working long hours and individuals that burden themselves from working within vasts global supply chains.

Seth, Divya, and Nimali Singh published research evidence linking a wide range of health risks and overworking. The article argued that time is of the essence; in short time is a necessity for an individual's health whether the subject is behavior, vising the doctor’s office, and essential care.^[37] There is a direct correlation with stress and has been the cause for 24% of cardiovascular disease cases including strokes and heart attacks.^[37] Although both men and women experience shortcomings with health, the final reports stated that women, with the double burden of domestic and paid work experience an increased the risk of psychological distress and suboptimal health. Strazdins concluded that negative work-family spillover especially is associated with health problems among both women and men, and negative family-work spillover is related to a poorer health status among women."^[38]

It is common for the work lifestyle to bring forth adverse health conditions or even death due to weak safety measure policies. After the tragic collapse of the Rana Plaza factory in Bangladesh where over 800 deaths occurred the country has since then made efforts in boosting up their safety policies to better accommodate workers.^[39]

Mistreatment[edit]

Corporations set their place of production usually in areas with little to no labor regulations, and as a result low labor cost occurs. With the low labor regulations, this is where you start to see mistreatment of workers especially with women and children.^[40] Poor working conditions and sexual harassment are just some of the mistreatment faced by women in the textile supply chain. Marina Prieto-Carrón shows in her research in Central America that women in sweatshops are not even supplied with toilet paper in the bathroom everyday. The reason it costs corporations more is because people can not work to their full potential in poor conditions, affecting the global marketplace.^[41] Furthermore, when corporations decide to change manufacturing rates or locations in industries that employ more women, they are often left with no job nor assistance. This kind of sudden reduction or elimination in hours is seen in industries such as the textile industry and agriculture industry, both which employ a higher amount of women than men.^[21] One solution to mistreatment of women in the supply chain is more involvement from the corporation and trying to regulate the outsourcing of their product.^[40]

Tax havens[edit]

Main article: Tax haven

The ratio of German assets in tax havens in relation to the total German GDP.^[42] The "Big 7" shown are Hong Kong, Ireland, Lebanon, Liberia, Panama, Singapore, and Switzerland.

A tax haven is a state, country or territory where certain taxes are levied at a low rate or not at all, which are used by businesses for tax avoidance and tax evasion.^[43] Individuals and/or corporate entities can find it attractive to move themselves to areas with reduced taxation. This creates a situation of tax competition among governments. Taxes vary substantially across jurisdictions.^[44] Sovereign states have theoretically unlimited powers to enact tax laws affecting their territories, unless limited by previous international treaties. The central feature of a tax haven is that its laws and other measures can be used to evade or avoid the tax laws or regulations of other jurisdictions.^[45] In its December 2008 report on the use of tax havens by American corporations,^[46] the U.S. Government Accountability Office was unable to provide a satisfactory definition of a tax haven, but regarded the following characteristics as indicative of it: nil or nominal taxes; lack of effective exchange of tax information with foreign tax authorities; lack of transparency in the operation of legislative, legal or administrative provisions; no requirement for a substantive local presence; and self-promotion as an offshore financial center.

A 2012 report from the Tax Justice Network estimated that between USD $21 trillion and $32 trillion is sheltered from taxes in tax havens worldwide.^[47] If such hidden offshore assets are considered, many countries with governments nominally in debt would be net creditor nations.^[48] However, the tax policy director of the Chartered Institute of Taxation expressed skepticism over the accuracy of the figures.^[49] Daniel J. Mitchell of the US-based Cato Institute says that the report also assumes, when considering notional lost tax revenue, that 100% of the money deposited offshore is evading payment of tax.^[50]

The tax shelter benefits result in a tax incidence disadvantaging the poor.^[51] Many tax havens are thought to have connections to "fraud, money laundering and terrorism."^[52] Ongoing investigations of illegal tax haven abuse have produced few convictions.^[53][54] Accountants' opinions on the propriety of tax havens have been evolving,^[55] as have the opinions of their corporate users,^[56] governments,^[57][58] and politicians,^[59][60] although their use by Fortune 500 companies^[61] and others remains widespread.^[62] Reform proposals centering on the Big Four accountancy firms have been advanced.^[63] Some governments appear to be using computer spyware to scrutinize corporations' finances.^[64]

Red: U.S. corporate profits after tax. Blue: U.S. nonresidential business investment, both as fractions of GDP, 1989-2012. Wealth concentration of corporate profits in global tax havens due to tax avoidance spurred by imposition of austerity measures can stall investment, inhibiting further growth.^[65]

Voices of developing countries[edit]

The Economic Commission for Latin America and the Caribbean (ECLAC) has proposed an agenda to support conditions for developing countries to improve their standing in the global economy.^[66] However, the advantaged countries continue to control the economic agenda. Lechner and Boli state that the World Bank and the International Monetary Fund must give voice to developing countries.^[67]

Cultural effects[edit]

Economic globalization may affect culture. Populations may mimic the international flow of capital and labor markets in the form of immigration and the merger of cultures. Foreign resources and economic measures may affect different native cultures and may cause assimilation of a native people.^[68] As these populations are exposed to the English language, computers, western music, and North American culture, changes are being noted in shrinking family size, immigration to larger cities, more casual dating practices, and gender roles are transformed.

Yu Xintian noted two contrary trends in culture due to economic globalization.^[69] Yu argued that culture and industry not only flow from the developed world to the rest, but trigger an effort to protect local cultures. He notes that economic globalization began after World War II, whereas internationalization began over a century ago.^[70]

George Ritzer wrote about the McDonaldization of society and how fast food businesses spread throughout the United States and the rest of the world, attracting other places to adopt fast food culture.^[71] Ritzer describes other businesses such as The Body Shop, a British cosmetics company, that have copied McDonald's business model for expansion and influence. In 2006, 233 of 280 or over 80% of new McDonald's opened outside the US. In 2007, Japan had 2,828 McDonald's locations.^[72]

Global media companies export information around the world. This creates a mostly one-way flow of information, and exposure to mostly western products and values. Companies like CNN, Reuters and the BBC dominate the global airwaves with western points of view. Other media news companies such as Qatar's Al Jazeera network offer a different point of view, but reach and influence fewer people.^[73]

Migration[edit]

"With an estimated 210 million people living outside their country of origin (International Labour Organization [ILO] 2010), international migration has touched the lives of almost everyone in both the sending and receiving countries of the Global South and the Global North".^[74] Because of advances mad