Initial thoughts on globalization...are all peas really in the pod?

The cover of Marin Wolf’s book, Why Globalization Works, is intriguing. It’s an illustration of five little world “peas” nestled in the sheath of a green bean. This ‘peas-in-a-pod’ perspective on the global order resonates well with me. It could be interpreted as a ‘we are all citizens of the world so lay down your nuclear weapons and stop polluting’ world view. If the idea is less intense nationalism and a more humanist perspective on what is universally just, than I applaud the idea. My reservations come in when I hear the argument that globalization does not exploit the poor, it helps them. I admit, this may be true in the long run as poor countries can free-ride on the R&D investments and technological innovations of other countries, but there is much evidence (especially in Africa) that globalization has further marginalized the extremely poor and has led to grinding poverty and swelling inequalities within poor countries—how’s that for some powerful clichés?

I have studied South Africa extensively for my Shepherd poverty capstone, and the patterns of globalization there are pretty frightening. South Africa is an interesting case-study because it has made enormous gains in the last decade and a half, and yet it has social problems that are only worsening. Thirteen years after the fall of apartheid and the peaceful transition to democracy, the country is enjoying steady economic growth with a GDP that is nearly as big as those of the 47 sub-Saharan nations combined (2005 WB Country Report). The current president, Thabo Mbeki has somewhat controversially embraced free-market policies while abandoning the Marxist distributional model the ANC had promoted while in exile. As a result, South Africa is the leading economy in Africa and has been a solid model of good governance and democracy, but there is a near-pandemic of poverty, inequality, and unemployment within the country.

A few statistics to mull over…the Human Development Index in South Africa has worsened from 0.73 in 1994 to 0.67 in 2003 and poverty still engulfs 48.5 percent of the nation (21.0 million in 2002) (UNDP 2003 Report). Income inequality has actually increased after the fall of the apartheid government from 0.60 in 1995 to 0.63 in 2001. The richest 20 percent of the country enjoy 64.8 percent of consumption while the poorest 20 percent share only 2.9 percent. The unemployment rate stands at 25.6 percent. South Africa also has one of the highest crime rates in the world and a very high prevalence of AIDS. Without the AIDS pandemic, South Africa’s life expectancy would rise by 19 years.

So forgive me for my skepticism. In my eyes, South Africa represents the nexus between the First and the Third world and despite huge advancements, the living standards for many of the poor have actually declined with increased liberalism. If we ascribe to Thomas Pogge’s ‘do no harm’ philosophy, than as affluent citizens of the world who are benefiting from an institutional world order that harms the poor, we actually have a negative duty to reform these institutional practices. That was me playing devil’s advocate...I actually think globalization can be a helpful tool, but only when controlled effectively. Additional state action must be applied to specifically target those who are negatively affected by globalization. Thus, global citizens have a positive duty to act. In the words of Martha Nussbaum, “Our world is increasingly dominated by a profit motive, as multinational corporations and global markets increasingly leach sovereignty away from national governments. The dominant economic paradigm encourages continued insensitivity to the situation of the world’s poorest people and to the special disadvantages suffered by women.”

I’m writing this before reading any of the assigned literature, and it will be interesting to watch my opinions become informed and evolve. I don’t know whether I’ll look back on this blog and laugh, cringe, or clap, but I do know where I stand now.

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