IV – Working Group : Globalisation/Delocalization.

IV – Groupe de travail : Mondialisation/Délocalisation.

IV – Gruppo di lavoro : Mondializzazione/Delocalizzazione.

Globalization/De-Localization

Andrzej Potocki – rapporteur (SD) – Poland

Bruxelles, 11-12/11/2010

4ème Congrès

4° Congresso

4th Congress

 

 

 

Andrzej  Potocki  

Stronnictwo  Demokratyczne  –  The  Alliance  of  Democrats  

International  Secretary  

 

GLOBALIZATION  /  DE-­‐LOCALIZATION  

Report  of  the  EPD  Working  Group  

 

…a   good   part   of   globalization   consists   of   an   enormous   variety   of   micro-­‐processes  that  begin  to  denationalize  what  had  been  constructed  as  national  —  whether  policies,  capital,  political   subjectivity,  urban  spaces,   temporal   frames,  or  any  other  of  a  variety  of  dynamics  and  domains…  (Saskia  Sassen,  Territory,  Authority,  Rights…)  

 

1. The  definitions  and  descriptions  

Globalization  describes  a  process  by  which   regional  economies,   societies,  and  cultures  have  become  integrated  through  a  global  network  of  communication,  transportation,  and   trade.  The   term   is   sometimes  used   to   refer  specifically   to  economic   globalization:   the   integration   of   national   economies   into   the  international  economy  through  trade,  foreign  direct   investment,  capital  flows,  migration,   and   the   spread   of   technology.   However,   globalization   is   usually  recognized  as  being  driven  by  a  combination  of  economic,  technological,  socio-­‐cultural,   political,   and   biological   factors.   The   term   can   also   refer   to   the  transnational   circulation   of   ideas,   languages,   or   popular   culture   through  acculturation.    

Globalization   as   the   international   system   replaced   the   Cold   War   system.   It  relies  on  two  principles:  

Firstly,   the   idea   that   freedom,   human   rights   and   democracy   are   the   most  efficient  means  of  sustaining  growth  and  development.    

Secondly,   globalization   implies   a   panel   of   policies   based   on   the  Washington  consensus:   fiscal   discipline,   a   redirection   of   public   expenditure   priorities  toward  fields  offering  both  high  economic  returns  and  the  potential  to  improve  income   distribution,   such   as   primary   health   care,   primary   education,   and  infrastructures,  tax  reform,  interest  rate  liberalization,  a  competitive  exchange  rate,  trade   liberalization,   liberalization  of   inflows  of   foreign  direct   investment,  privatization,   deregulation   (to   abolish   barriers   to   entry   and   exit),   secure  property  rights  and  so  on.    

In   short,   globalization   is   the   integration   of   democracy,   legal   reforms,   capital,  technology,  and  information  across  national  borders,  in  a  way  that  is  creating  a  single   global  market   and   a   global   village.   As   a   result,   there   is   an   increase   in  global  wealth:  by  1950  world  GDP  was  about  $4,  000  billion.  Today,  it  accounts  for  more  than  $13,  800  trillion.    

What   is   more,   globalization   also   means   a   shift   and   the   entrance   in   the  informative  age.    

The  word  'globalization'  was  first  employed  in  1930,  to  denote  a  holistic  view  of  human   experience   in   education.   An   early   description   of   globalization   was  penned   by   the   American   entrepreneur-­‐turned-­‐minister   Charles   Taze   Russell  who  coined   the   term   'corporate  giants'   in  1897,  although   it  was  not  until   the  1960s   that   the   term  began   to  be  widely  used  by  economists  and  other   social  scientists.  The  term  has  since  then  achieved  widespread  use  in  the  mainstream  press   by   the   latter   half   of   the   1980s.   Since   its   inception,   the   concept   of  globalization  has  inspired  numerous  competing  definitions  and  interpretations,  with   antecedents   dating   back   to   the   great   movements   of   trade   and   empire  across  Asia  and  the  Indian  Ocean  from  the  15th  century  onwards.    

The  United  Nations  ESCWA  has  written  that  globalization  ‘is  a  widely-­‐used  term  that  can  be  defined  in  a  number  of  different  ways.  When  used  in  an  economic  context,   it   refers   to   the   reduction   and   removal   of   barriers   between   national  borders  in  order  to  facilitate  the  flow  of  goods,  capital,  services  and  labour.  .  .  although  considerable  barriers  remain  to  the  flow  of  labour.  .  .  Globalization  is  not  a  new  phenomenon.  It  began  in  the  late  nineteenth  century,  but  it  slowed  down  during   the  period   from   the   start   of   the   First  World  War  until   the   third  quarter   of   the   twentieth   century.   This   slowdown   can   be   attributed   to   the  

inward-­‐looking  policies  pursued  by  a  number  of   countries   in  order   to  protect  their   respective   industries.   .   .   however,   the   pace   of   globalization   picked   up  rapidly  during  the  fourth  quarter  of  the  twentieth  century.  .  .  ’  

Tom  J.  Palmer  of  the  Cato  Institute  defines  globalization  as  ‘the  diminution  or  elimination  of  state-­‐enforced  restrictions  on  exchanges  across  borders  and  the  increasingly  integrated  and  complex  global  system  of  production  and  exchange  that  has  emerged  as  a  result.  ’  

Thomas  L.  Friedman  has  examined  the  impact  of  the  ‘flattening’  of  the  world,  and   argues   that   globalized   trade,   outsourcing,   supply-­‐chaining,   and   political  forces   have   changed   the   world   permanently,   for   both   better   and   worse.   He  also   argues   that   the   pace   of   globalization   is   quickening   and   will   continue   to  have  a  growing  impact  on  business  organization  and  practice.    

Noam  Chomsky  argues   that   the  word  globalization   is  also  used,   in  a  doctrinal  sense,  to  describe  the  neoliberal  form  of  economic  globalization.    

Herman   E.   Daly   argues   that   sometimes   the   terms   internationalization   and  globalization   are   used   interchangeably   but   there   is   a   significant   formal  difference.  The  term  ‘internationalization’  (or  internationalisation)  refers  to  the  importance   of   international   trade,   relations,   treaties   etc.   owing   to   the  (hypothetical)  immobility  of  labour  and  capital  between  or  among  nations.    

Takis   Fotopoulos   argues   that   globalization   is   the   result   of   systemic   trends  manifesting   the   market   economy's   grow-­‐or-­‐die   dynamic,   following   the   rapid  expansion  of   transnational  corporations.  Because   these   trends  have  not  been  offset  effectively  by  counter-­‐tendencies  that  could  have  emanated  from  trade-­‐union   action   and   other   forms   of   political   activity,   the   outcome   has   been  globalisation.   This   is   a  multi-­‐faceted   and   irreversible   phenomenon  within   the  system  of  the  market  economy  and  it   is  expressed  as:  economic  globalisation,  namely,   the   opening   and   deregulation   of   commodity,   capital   and   labour  markets   which   led   to   the   present   form   of   neoliberal   globalisation,   political  globalisation,  i.  e.  ,  the  emergence  of  a  transnational  elite  and  the  phasing  out  of  the  all  powerful-­‐nation  state  of  the  statist  period,  cultural  globalisation,  i.  e.  ,  the   worldwide   homogenisation   of   culture,   ideological   globalisation,  technological  globalisation,  social  globalisation.    

2. Globalization  Results  in  De-­‐localization  

Many  of  the  activities  that  previously  involved  face-­‐to-­‐face  interaction,  or  that  were   local,   are   now   conducted   across   great   distances.   There   has   been   a  significant   de-­‐localization   in   social   and   economic   exchanges.   Activities   and  relationships   have   been   uprooted   from   local   origins   and   cultures.   One  important  element  in  this  has  been  the  separation  of  work  from  the  home  (and  the  classic  move  to  the  suburbs  -­‐  see  Putnam's  discussion  of  the  impact  on  this  on  local  social  relations).  But  de-­‐localization  goes  well  beyond  this.  Increasingly  people  have  to  deal  with  distant  systems  in  order  that  they  may  live  their  lives.  Banking  and  retailing,  for  example,  have  adopted  new  technologies  that  involve  people   in   less   face-­‐to-­‐face   interaction.   Your   contact   at   the   bank   is   in   a   call  centre  many  miles  away,  when  you  buy  goods  on  the  internet  the  only  person  you  might  speak  to  is  the  delivery  driver.  In  this  last  example  we  move  beyond  simple  notions  of  distance  and  territory  into  a  new  realm.  When  we  buy  books  from   an   internet   supplier   like   Amazon   our   communications   pass   through   a  large  number  of  computers  and  routers  and  may  well  travel  thousands  of  miles,  the  computers  taking  our  orders  can  be  on  a  different  continent,  and  the  books  can  be  located  anywhere  in  the  world.  The  'spaces'  we  inhabit  when  using  the  internet   to   buy   things   or   to   communicate   (via   things   like   chatrooms   and  bulletin  boards)  can  allow  us  to  develop  a  rather  different  sense  of  place  and  of  the  community  to  which  we  belong.    

Not  everything  is  global,  of  course.  Most  employment,  for  example,  is   local  or  regional   -­‐   but   'strategically   crucial   activities   and   economic   factors   are  networked  around  a  globalized  system  of  inputs  and  outputs'.  What  happens  in  local  neighbourhoods  is   increasingly  influenced  by  the  activities  of  people  and  systems   operating   many   miles   away.   For   example,   movements   in   the   world  commodity   and   money   markets   can   have   a   very   significant   impact   upon  people's   lives   across   the   globe.   People   and   systems   are   increasingly  interdependent.    

3. The  Effects  of  Globalism  

Various  aspects  of  globalization  affect  the  world  in  several  different  ways:  

Industrial  -­‐  emergence  of  worldwide  production  markets  and  broader  access  to  a   range   of   foreign   products   for   consumers   and   companies.   Particularly  

movement   of   material   and   goods   between   and   within   national   boundaries.  International   trade   in   manufactured   goods   increased   more   than   100   times  (from  $95  billion  to  $12  trillion)  in  the  50  years  since  1955.  China's  trade  with  Africa  rose  sevenfold  during  2000-­‐07  alone.    

Financial   -­‐   emergence   of   worldwide   financial   markets   and   better   access   to  external   financing   for   borrowers.   By   the   early   part   of   the   21st   century  more  than   $1.   5   trillion   in   national   currencies   were   traded   daily   to   support   the  expanded  levels  of  trade  and  investment.  As  these  worldwide  structures  grew  more   quickly   than   any   transnational   regulatory   regime,   the   instability   of   the  global   financial   infrastructure   dramatically   increased,   as   evidenced   by   the  Financial  crisis  of  2007–2010.    

Economic   -­‐   realization  of   a   global   common  market,   based  on   the   freedom  of  exchange   of   goods   and   capital.   The   interconnectedness   of   these   markets,  however,   meant   that   an   economic   collapse   in   one   area   could   impact   other  areas.   With   globalization,   companies   can   produce   goods   and   services   in   the  lowest  cost   location.  This  may  cause   jobs   to  be  moved   to   locations   that  have  the   lowest   wages,   least   worker   protection   and   lowest   health   benefits.   For  industrial  activities  this  may  cause  production  to  move  to  areas  with  the  least  pollution  regulations  or  worker  safety  regulations.    

Health  Policy  -­‐  On  the  global  scale,  health  becomes  a  commodity.  In  developing  nations  under  the  demands  of  Structural  Adjustment  Programs,  health  systems  are  fragmented  and  privatized.  Global  health  policy  makers  have  shifted  during  the   1990s   from  United  Nations   players   to   financial   institutions.   The   result   of  this   power   transition   is   an   increase   in   privatization   in   the   health   sector.   This  privatization   fragments   health   policy   by   crowding   it   with   many   players   with  many   private   interests.   These   fragmented   policy   players   emphasize  partnerships   and   specific   interventions   to   combat   specific   problems   (as  opposed   to   comprehensive   health   strategies).   Influenced  by   global   trade   and  global   economy,   health   policy   is   directed   by   technological   advances   and  innovative  medical   trade.  Global  priorities,   in   this   situation,  are   sometimes  at  odds  with   national   priorities  where   increased   health   infrastructure   and   basic  primary   care   are   of   more   value   to   the   public   than   privatized   care   for   the  wealthy.    

Political  -­‐  some  use  ‘globalization’  to  mean  the  creation  of  a  world  government  which   regulates   the   relationships   among   governments   and   guarantees   the  rights   arising   from   social   and   economic   globalization.   Politically,   the   United  States   has   enjoyed   a   position   of   power   among   the   world   powers,   in   part  because  of  its  strong  and  wealthy  economy.  With  the  influence  of  globalization  and  with  the  help  of  The  United  States’  own  economy,  the  People's  Republic  of  China   has   experienced   some   tremendous   growth   within   the   past   decade.   If  China   continues   to   grow   at   the   rate   projected   by   the   trends,   then   it   is   very  likely  that  in  the  next  twenty  years,  there  will  be  a  major  reallocation  of  power  among   the   world   leaders.   China   will   have   enough   wealth,   industry,   and  technology  to  rival  the  United  States  for  the  position  of  leading  world  power.    

Informational   -­‐   increase   in   information   flows   between   geographically   remote  locations.  Arguably  this  is  a  technological  change  with  the  advent  of  fibre  optic  communications,   satellites,   and   increased   availability   of   telephone   and  Internet.    

Language  -­‐  the  most  popular  first  language  is  Mandarin  (845  million  speakers)  followed  by  Spanish  (329  million  speakers)  and  English  (328  million  speakers).  However  the  most  popular  second  language  is  undoubtedly  English,  the  ‘lingua  franca’  of  globalization:  About  35%  of  the  world's  mail,  telexes,  and  cables  are  in   English.   Approximately   40%   of   the   world's   radio   programs   are   in   English.  About  50%  of  all  Internet  traffic  uses  English.    

Competition   -­‐   Survival   in   the   new   global   business   market   calls   for   improved  productivity   and   increased   competition.   Due   to   the   market   becoming  worldwide,  companies  in  various  industries  have  to  upgrade  their  products  and  use  technology  skilfully  in  order  to  face  increased  competition.    

Ecological  -­‐  the  advent  of  global  environmental  challenges  that  might  be  solved  with   international  cooperation,  such  as  climate  change,  cross-­‐boundary  water  and  air  pollution,  over-­‐fishing  of  the  ocean,  and  the  spread  of  invasive  species.  Since  many  factories  are  built  in  developing  countries  with  less  environmental  regulation,   globalism   and   free   trade   may   increase   pollution   and   impact   on  precious   fresh   water   resources.   On   the   other   hand,   economic   development  historically   required  a   ‘dirty’   industrial   stage,  and   it   is  argued   that  developing  

countries   should   not,   via   regulation,   be   prohibited   from   increasing   their  standard  of  living.    

Cultural   -­‐   growth   of   cross-­‐cultural   contacts,   advent   of   new   categories   of  consciousness   and   identities  which   embodies   cultural   diffusion,   the   desire   to  increase  one's   standard  of   living  and  enjoy   foreign  products  and   ideas,  adopt  new   technology   and   practices,   and   participate   in   a   ‘world   culture’.   Some  bemoan   the   resulting   consumerism   and   loss   of   languages.   Spreading   of  multiculturalism,  and  better  individual  access  to  cultural  diversity  (e.  g.  through  the   export   of   Hollywood).   Some   consider   such   ‘imported’   culture   a   danger,  since   it  may   supplant   the   local   culture,   causing   reduction   in  diversity  or  even  assimilation.   Others   consider   multiculturalism   to   promote   peace   and  understanding  between  people.  A   third  position   that   gained  popularity   is   the  notion   that   multiculturalism   to   a   new   form   of   monoculture   in   which   no  distinctions  exist  and  everyone  just  shift  between  various  lifestyles  in  terms  of  music,   cloth  and  other  aspects  once  more   firmly  attached   to  a   single  culture.  Thus  not  mere  cultural  assimilation  as  mentioned  above  but  the  obliteration  of  culture  as  we  know  it  today.    

Travel  and  tourism.  WHO  estimates  that  up  to  500,  000  people  are  on  planes  at  any   one   time.   In   2008,   there   were   over   922   million   international   tourist  arrivals,  with  a  growth  of  1.  9%  as  compared  to  2007.    

Greater   immigration,   including   illegal   immigration.   The   IOM   estimates   there  are  more   than  200  million  migrants   around   the  world   today.  Newly   available  data  show  that  remittance  flows  to  developing  countries  reached  $328  billion  in  2008.    

Spread   of   local   consumer   products   (e.   g.   ,   food)   to   other   countries   (often  adapted  to  their  culture).    

Worldwide   fads   and   pop   culture   such   as   Pokémon,   Sudoku,   Numa   Numa,  Origami,   Idol   series,   YouTube,   Orkut,   Facebook,   and   MySpace.   Accessible   to  those  who  have  Internet  or  Television,  leaving  out  a  substantial  segment  of  the  Earth's  population.  Worldwide  sporting  events  such  as  FIFA  World  Cup  and  the  Olympic  Games.    

Incorporation  of  multinational  corporations  into  new  media.    

Social  -­‐  development  of  the  system  of  non-­‐governmental  organisations  as  main  agents   of   global   public   policy,   including   humanitarian   aid   and   developmental  efforts.    

Development   of   a   Global   Information   System,   global   telecommunications  infrastructure   and   greater   trans-­‐border   data   flow,   using   such   technologies   as  the   Internet,   communication   satellites,   submarine   fibre   optic   cable,   and  wireless  telephones.    

Increase   in   the   number   of   standards   applied   globally,   e.   g.   ,   copyright   laws,  patents  and  world  trade  agreements.    

The   creation   of   the   international   criminal   court   and   international   justice  movements.    

Crime   importation   and   raising   awareness   of   global   crime-­‐fighting   efforts   and  cooperation.    

The  emergence  of  Global  administrative  law.    

Religious  -­‐  The  spread  and  increased  interrelations  of  various  religious  groups,  ideas,   and   practices   and   their   ideas   of   the  meanings   and   values   of   particular  spaces.   Most   statistical   sources   make   Christianity   the   most   popular   current  religion  worldwide,  with  Islam  second,  Hinduism  third,  and  Buddhism  fourth.    

4. Threads  of  globalization  

Globalization  has  generated  significant   international  opposition  over  concerns  that   it  has   increased  inequality  and  environmental  degradation,  thus   lowering  the  quality  of  life.    

Some  also  view  the  effect  of  globalization  on  culture  as  a  rising  concern.  Along  with   globalization   of   economies   and   trade,   culture   is   being   imported   and  exported  as  well.  The  concern  is  that  the  stronger,  bigger  countries  such  as  the  United   States,  may   overrun   the   other,   smaller   countries'   cultures,   leading   to  those   customs   and   values   being   faded   away.   This   process   is   also   sometimes  referred  to  as  Americanization  or  McDonaldization.    

In  many  poorer  nations  globalization  is  the  result  of  foreign  businesses  utilizing  workers   in   a   country   to   take  advantage  of   the   lower  wage   rates.   Specifically,  

these  policies  may  lead  to  use  of  child  labour,  forced  labour,  violating  freedom  of  association,  right  to  organize  and  bargain  collectively,  as  well  as  the  right  to  decent  working  conditions.    

On   the   other   hand   those   negative   side-­‐effects   are   partially   caused   by   the  limitations  to  free  flow  of  labour.    

A  flood  of  consumer  goods  such  as  televisions,  radios,  bicycles,  and  textiles  into  the  United  States,  Europe,  and  Japan  has  helped  fuel  the  economic  expansion  of   Asian   tiger   economies   in   recent   decades.   However,   Chinese   textile   and  clothing  exports  have  recently  encountered  criticism  from  Europe,   the  United  States   and   some   African   countries.   In   South   Africa,   some   300,   000   textile  workers  have  lost  their  jobs  due  to  the  influx  of  Chinese  goods.  The  increasing  U.  S.  trade  deficit  with  China  has  cost  2.  4  million  American  jobs  between  2001  and  2008,  according  to  a  study  by  the  Economic  Policy  Institute  (EPI).  A  total  of  3.  2  million  –  one  in  six  U.  S.  factory  jobs  –  have  disappeared  between  2000  and  2007.    

Opportunities   in   richer   countries   drives   talent   away   from   poorer   countries,  leading   to   brain   drains.   Brain   drain   has   cost   the  African   continent   over   $4.   1  billion  in  the  employment  of  150,  000  expatriate  professionals  annually.  Indian  students   going   abroad   for   their   higher   studies   costs   India   a   foreign  exchange  outflow  of  $10  billion  annually.    

It   is  becoming   increasingly  difficult   to  maintain   food  security   in  a  world  beset  by   a   confluence   of   ‘peak’   phenomena,   namely   peak   oil,   peak   water,   peak  phosphorus,   peak   grain   and   peak   fish.   Growing   populations,   falling   energy  sources  and  food  shortages  will  create  the   ‘perfect  storm’  by  2030,  according  to  the  UK  government  chief  scientist.  He  said  food  reserves  are  at  a  50-­‐year  low  but  the  world  requires  50%  more  energy,   food  and  water  by  2030.  The  world  will   have   to   produce   70%  more   food   by   2050   to   feed   a   projected   extra   2.   3  billion   people   and   as   incomes   rise,   the  United  Nations'   Food   and   Agriculture  Organisation  (FAO)  warned.  Social  scientists  have  warned  of  the  possibility  that  global   civilization   is   due   for   a   period   of   contraction   and   economic   re-­‐localization,   due   to   the   decline   in   fossil   fuels   and   resulting   crisis   in  transportation  and  food  production.    

Globalization   has   also   helped   to   spread   some   of   the   deadliest   infectious  diseases  known  to  humans.  One  example  of  this  occurring  is  AIDS/HIV.  Due  to  immigration,  approximately  500,  000  people  in  the  United  States  are  believed  to  be   infected  with  Chagas  disease.   In  2006,  the  tuberculosis   (TB)  rate  among  foreign-­‐born   persons   in   the   United   States  was   9.   5   times   that   of   U.   S.   -­‐born  persons.    

The  United  Nations  Office   on  Drugs   and  Crime   (UNODC)   issued   a   report   that  the   global   drug   trade   generates   more   than   $320   billion   a   year   in   revenues.  Worldwide,   the  UN  estimates  there  are  more  than  50  million  regular  users  of  heroin,   cocaine   and   synthetic   drugs.   The   international   trade   of   endangered  species   is   second   only   to   drug   trafficking.   Traditional   Chinese  medicine   often  incorporates   ingredients   from  all   parts   of   plants,   the   leaf,   stem,   flower,   root,  and   also   ingredients   from   animals   and   minerals.   The   use   of   parts   of  endangered  species  (such  as  seahorses,  rhinoceros  horns,  saiga  antelope  horns,  and   tiger   bones   and   claws)   has   created   controversy   and   resulted   in   a   black  market   of   poachers   who   hunt   restricted   animals.   In   2003,   29%   of   open   sea  fisheries  were  in  a  state  of  collapse.    

5. The  Present  and  the  Future  

We  still  see  globalization  as  a  problem,  as  a  threat,  as  a  phenomenon  which  is  leading   us   to   the   unknown.   We   are   aware   of   a   possible   depletion   of   raw  materials,   irreversible   damage   to   the   environment,   and   increase   imbalance  between  the  richest  and  poorest.  These  fears  have  been  naturally  strengthened  by  the  shock  of  the  current  financial  crisis.    

The   developing   countries   are   gaining   competitiveness   and   at   the   same   time  this   implies   delocalization   of   European   companies   which   sometimes   causes  closures,   therefore   redundancies.   However,   the   growth   in   the   developing  countries  is  opening  new  markets.    

The  delocalization  is  an  inevitable  phenomenon,  but  it  not  only  has  a  negative  side,  it  will  depend  on  the  way  we  tackle  this  trend  to  transform  a  risk  into  an  opportunity.    

Not  everything   is  going  to  be  manufactured  outside  Europe,   in  countries  with  low  labour  costs.  As  all  those  products  where  the  key  is  price,  will  not  be  made  

in  EU,  we  should  work  on  the  rest  of  the  characteristics  like  design,  technology,  transport,   the   quality   of   the   workforce.   .   .   Consistently   we   are   forced   to  innovate  in  products  and  services.    

However,  amid  concerns  about  poor  quality  and  higher  freight  costs,  some  big  manufacturers   are   already   moving   production   back   to   Europe   or   US.   This  process  require  further  support.  Free  flow  of   labour  will  also  work  for   further  equalization  of  labour  conditions  in  developed  and  developing  countries.    

Three   future   areas  where   the   EU   has   to   be   ahead,   so  where   knowledge   and  technology  have  to  be  applied  are:  

-­‐ Life,  taken  in  general  terms:  from  cosmetics  to  biotechnology.    

-­‐ The  shortage  of  energy  and  the  climate  change  will  develop  not  only  new  sources  of  energy  but  new  methods  of  manufacturing.    

-­‐ The  need  and  the  desire  of  mobility.  New  infrastructures  and  new  means  of  transport.    

Politically,  further  support  to  democratization  in  developing  countries  will  also  build   a   barriers   against   the   decrease   of   global   poverty.   It   still   remains   a   big  challenge.  However,  between  1965  and  2008,  average   income  almost   tripled.  Life   expectancy   in   poor   countries   increased   20   years   on   average.   Infant  mortality   rate   fell   by   half.   37%   of   people   in   poor   countries   were  undernourished  in  1970.  The  figure  has  fallen  to  18%  in  2006.    

Since   World   War   II,   barriers   to   international   trade   have   been   considerably  lowered   through   international   agreements.   Elimination   of   some   barriers  include   poorer   countries   in   a   world   market.   Main   areas   of   policies   should  strengthen  some  of  the  processes  promoting  free  trade  started  by  GATT,  as:  

-­‐ elimination  of  tariffs,  creation  of  free  trade  zones  with  small  or  no  tariffs;  

-­‐ reduced   transportation   costs,   especially   resulting   from   development   of  containerization  for  ocean  shipping;  

-­‐ reduction  or  elimination  of  capital  controls;  

-­‐ harmonization  of  subsidies  for  local  businesses;  

-­‐ harmonization  of  intellectual  property  laws  across  the  majority  of  states,  with  more  restrictions;  

-­‐ supranational  recognition  of  intellectual  property  restrictions.    

The   EU   should   also   strengthen   the   efforts   to   support   free   flow   of   people,  goods,   ideas   and   labour.  More,   taking   into  account   that   globalization   favours  human  rights  and  the  emancipation  of  women,  Europe  should  use  the  political  and   economical   opportunities   to   promote   those   values.   Political   reform   is   a  pre-­‐requisite.   Societies   must   eliminate   civil   war,   predatory   conducts,   and  discrimination   against   women   and   ethnic   minorities.   When   freedom   is  enlarged,   technical   progress   can   be   harnessed   to   serve   the   interests   of   poor  people.    

Global  culture  must  be  supported  by  global  education.  This  is  the  only  solution  to   gather   universal   and   identity   and   to   solve   problems   arising   from   ethnic  diversity.    

Cultural  globalization,  driven  by  communication  technology  and  the  worldwide  marketing  of  Western  cultural   industries,  was  understood  at  first  as  a  process  of   homogenization,   as   the   global   domination   of   American   culture   at   the  expense   of   traditional   diversity.   However,   a   contrasting   trend   soon   became  evident   in   the   emergence   of  movements   protesting   against   globalization   and  giving   new  momentum   to   the   defence   of   local   uniqueness,   individuality,   and  identity.  Europe  should  invest  in  people  through  better  education  and  training.    

What  is  more,  as  education  raises,  people  consume  more  spiritual  goods.  This  evolution   authorizes   a   sustainable   growth:  Material   goods   use   resources   and  bring  negative  externalities  such  as  pollution.  On  the  contrary,  spiritual  goods  which   are   mainly   made   up   of   ideas,   need   a   few   resources   and   have   only  positive  externalities.  It  means  that  the  fight  against  pollution  also  depends  on  the  level  of  education.    

Further  recommendations  include:  

-­‐ Creation  of  quality  jobs.    

-­‐ Meeting   the   EU´s   2020   objectives   to   cut   greenhouse   gas   emission   by  20%.    

-­‐ Increase  of  renewable  sources  of  energy  (20%  of  its  needs).    

-­‐ Research  &  development  should  use  3%  of  GDP  of  Europe.  

 

 

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Acknowledgments  

The  author  wishes   to  express  his  gratitude   to  all  members  of   the  Working  Group   for   their  contribution.  Your   texts,  as  well   as  books  and  quotations  delivered   to  me,  are   the  core  of  this  report.  

I  also  thank  all  the  people   in  EPD  and  IDE  who  supported  me  in  the  process  of   leading  the  Group  and  creating   the   report,  especially  Gerard  Deprez,  who  encouraged  me   to   take   the  responsibility   for   the   WG   and   Flaminia   Baffigo,   Cristina   Bruschetti   and   Luca   Bader,   who  patiently  assisted  in  all  practical  matters.  

                   

Warsaw,  October  2010