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Globalization

This discussion is supposed to be descriptive and thus amoral.

Proposed analytical framework

Globalization is the evolution from isolated local market in a general market. The phenomenon result in an interconnection of markets. Each market can been modeled as a network of goods (being physical products or services) exchanged from one node to another thanks to edge^[1]. When those networks or graphs interconnect new opportunities emerge since new nodes appear and with them new needs have to be filled (situation S1). On the other side of the balance, a lot can be factorized and thus nodes become obsolete (situation S2). Obviously factorizing are new needs to and be associated to S1'. The globalization phenomenon introduce a new topology of local networks, all markets are directly affected.

Applying the framework to the current situation

On a very practical scale, competitive advantage^[2] in western country can be used in emerging countries to conquer new markets (S1). At the same time emerging counties can provide cheaper workforce (S1). From those emerging country a lot of techniques are obsolete compared to Europe and the US and since logistics is still cheap they become obsolete (S2).

Basically either you can understand the mechanism and move from S2 to S1 with your current investment ability (IA), either you are in trouble. You have to understand the new topology locally and globally.

Positions of the different actors

Obviously when network merges, the higher your IA, the better your position. Obviously the developed country have highers IA and can either move to S1 quicker or secure S1 positions they already occupy. Thanks to their previous technological advantage they are very likely secure S1' positions faster.

International institutions like the IMF, the World Bank and the WTO have been created by developed countries. When an institution decide to create another institutions it is always to promote a part of its own agenda, else why would it spend resources to do so? Consequently, those institutions created by developed countries exist to promote their agenda^[3]. The official mission of those institutions is to help developing countries to integrate the global market^[4],[5],[6].

Inferences from the applied framework

The newly shaped networks apply rules derived from the institutions that made them. By enforcing adoption of the model by every country, institutions prepare the market for players who were already in dominant position.

Conclusion

Consequently, by enforcing a model made by the earliest player, a very logical strategy, new players have to adapt to rules that do not favor them. They are often in very difficult positions and have to cope it with regardless of their past.

Note on vocabulary

The expression "developed countries" refers to the time of adoption of the current dominating model (which can potentially be ineffective, unethical or even unmoral).

References

1. Markets from Networks: Socioeconomic Models of Production by White, H.C. 2004
2. Game theory at work: how to use game theory to outthink and outmaneuver your competition by James H. Miller for McGraw-Hill, 2003 (ISBN 978-0-07-140020-6)
3. The Compleat Strategyst: Being a Primer on the Theory of Games of Strategy by John Davis Williams for RAND Corp, 1954
4. The World Bank : Each institution plays a different but collaborative role to advance the vision of an inclusive and sustainable globalization.
5. IMF : It was established to promote international monetary cooperation, exchange stability, and orderly exchange arrangements; to foster economic growth and high levels of employment; and to provide temporary financial assistance to countries to help ease balance of payments adjustment.
6. WTO : The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations.

Going further

• Globalization and its discontents by Joseph Stiglitz, 2002 (ISBN 0-393-05124-2)
  • His recent speeches on globalization
• Manufactured Landscapes by Edward Burtynsky, 2006
• The Story of Stuff with Annie Leonard, 2007
• World Simulation by Digital Ethnography for the Kansas State University, 2008
• Slavery: A Global Investigation by Brian Edwards and Kate Blewett produced for True Vision London, 2002
• Losers and Winners by Ulrike Franke and Michael Loeken, 2006
  • Matrix Services provide similar service to ship the whole factory in developed country thanks to the targeted country workers
• Growing Unequal? Income Distribution and Poverty in OECD Countries (ISBN 9789264044180) by the OECD, October 2008
• The Globalization Tapes directed by Rank-And-File Members of the Plantation Workers' Union of Sumatra, 2002
• Life and Debt directed by Stephanie Black , 2001
  • @08:00 "You ask whose interest? Ask the question who set it up." Michael Manley, Former prime minister of Jamaica
• Confessions of an Economic Hit Man (ISBN 0-452-28708-1) by John Perkins, 2004
• Addicted to Aid for BBC Panorama, November 2008
• Was the Wealth of Nations Determined in 1000 B.C.? by Diego A. Comin, William Easterly, and Erick Gong for HBS Business, Government and International Economy, November 20, 2008
• Potential topic for debate : is aid (cultural with NGO, financial with WB) yet another new form of colonization
  • weren't all previous colonization labelled "good and for the improvement of the people there" at that time?
  • doesn't it seems like a pretty repetitive and constant pattern?
  • I must create a system, or be enslaved by another man's. William Blake