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The Future of Globalization

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What will the world be like 100 years from now?

 

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It’s not likely that globalization will go away. Instead, countries and individuals might become even more connected and dependent on each other as we work to solve some of the problems threatening our very existence.

Globalization has changed the way we live. It has opened the door to new goods, ideas, and adventures. Advances in technology, communications, and transportation have made it possible to send people and products anywhere in the world. Globalization shows no sign of slowing down any time soon. In the years to come, globalization will bring a variety of new opportunities and challenges for people and nations around the world.

What kind of world can we look forward to in the future?

How will globalization continue to change our lives? We might never know the answers to these questions, but thinking about how we want the world to be in 10, 50, and even 100 years is a good way to make it happen!

AN INTEGRATED GLOBAL ECONOMY

Today, the global economy is more integrated than at any other time in history. According to a 2017 report by the OCP Policy Center, the global trade of goods and services included in the world GDP (gross domestic product) increased from less than 40 percent in 1990 to 60 percent today.1 GDP is the total value of everything produced by all the people and companies in a country. In addition, the money flowing to developing countries as investments or for development has also increased.

Developing countries are playing more of a role in the global economy. Consider China, for example. Since 2009, China has been the world’s largest exporter of goods. And since 2013, China has also become the world’s largest trading nation, a position previously held by the United States. China’s leap to become a global trading giant has happened incredibly quickly.

China exports many products, including electrical goods, data processing technologies, clothing and other textiles, and optical and medical equipment. China also exports a significant amount of raw materials, including steel. These raw materials are sold to other countries, where they are processed and used in products.

China’s main trading partners are its neighbors—Hong Kong, South Korea, and Japan. China also conducts a large amount of trade with the United States and Germany. The rise of developing countries such as China in the global economy is expected to continue for years to come.

China’s History

Throughout its long history, China traditionally followed more protectionist and isolationist trading policies. It avoided trading with other countries as much as possible. However, after the death of China’s leader Mao Zedong (1893–1976), the country began to focus more on trade and foreign investment.

World population living in extreme poverty, 1820 to 2015

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credit: Max Roser and the Our World In Data team

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The decline in employment experienced by the United States during the 2008 recession was greater than that of any recession in recent decades.

As developing countries participate more in the global economy, they can improve their own local economies and reduce poverty. In 1990, the number of absolute poor, defined as people who are unable to obtain adequate nutrition and shelter, was 1.85 billion worldwide. According to the World Bank, by 2013 the number of absolute poor dropped to 767 million.

AFFECTING THE WORLD: 2008 RECESSION

When countries are interconnected in a global economy, events in one country affect another, like dominoes falling in a row. In 2007–2008, the United States experienced the worst financial crisis since the Great Depression of the 1930s. The crisis began in 2007, when elevated U.S. home prices began to drop. The effects spread quickly through the entire U.S. financial industry.

The damage was not limited to banks and financial companies. Businesses that relied on loans and credit to conduct business also suffered. Banks stopped making the loans that most companies need to manage the flow of cash and do its work. The American car industry teetered on the brink of collapse. And stock prices dropped significantly. The country entered a deep recession, which is a drop in economic growth that lasts at least six months.

The U.S. recession had a ripple effect around the world. Other countries experienced similar financial crises. Japan and China suffered as the recession in the United States and Europe deeply cut demand for their products. Other less-developed countries could not sell as many goods and services abroad. Foreign investment in developing countries, which depend on this investment money to pay for new factories, roads, and equipment, also slowed.

Most of the world’s major economies entered into recession. According to a World Bank 2009 report, almost no country was able to escape some impact from the financial crisis. In the future, similar economic swings that start in one country will have the potential to impact economies worldwide.

MIGRATION

Globalization has made it easier for people to move. People migrate to other countries for several reasons. In some cases, they travel to another country to find a job. Some countries might have a booming job market with many good-paying positions, while in other countries people struggle to find decent-paying work. In these cases, workers often leave their home country to find better jobs and lifestyles.

What Is Economic Development?

International investors often classify countries based on their level of economic development. Industrialized nations are sometimes called more economically developed countries (MEDCs), while less industrialized nations are called less economically developed countries (LEDCs).

Most people in MEDCs enjoy a higher standard of living. They have access to good education, healthcare, and employment opportunities. Most MEDCs also have secondary industries such as manufactured goods, banking, and insurance. People in MEDCs often live in towns and cities instead of the country. According to the UN, the United States, Canada, Japan, Australia, New Zealand, and all the countries in Europe are MEDCs.

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According to the UN, in 2015, 244 million people, or 3.3 percent of the world’s population, lived outside their country of origin.

On the Move

Internal migration—or movement from one part of a country to another—is also increasing. People move to places with more resources, services, and opportunities, or to escape violence or natural disasters. The movement of people from rural areas to urban areas has led to the growth of cities worldwide.

For example, many graduates from Indian universities have difficulty finding good jobs in their home country. Some move to the United States, where their skills appeal to high-tech companies. Low-skilled laborers from Latin America have also left home due to lack of jobs or low wages and moved to the United States to take jobs in the growing service industry.

People also move to escape from areas in crisis. Millions of people have fled their countries to escape conflict, persecution, violence, or human rights violations. Some of these people are considered refugees because they can no longer live safely in their home countries.

In recent years, many refugees have come from Syria, Afghanistan, and South Sudan. In the Syrian civil war that began in 2011, the Syrian people have endured extreme violence as government forces and rebel groups have fought for control of the country. The fighting has caused tens of thousands of deaths as well as numerous human rights atrocities, including the alleged use of chemical weapons and torture. Millions of Syrians have fled the country looking for safety elsewhere, primarily in Europe.

IMMIGRATION BACKLASH

While many people welcome the flow of goods and money across borders, they have been less welcoming to the flow of people. Many countries are increasingly resistant to the mass migration brought about by conflicts around the globe or by people seeking better opportunities. They question the effects immigration will have on their country’s culture and national identity.

A young refugee in a refugee camp in Bangladesh

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credit: John Owens, VOA

Fear and distrust of people who are “different” cause some citizens to link immigration to social problems, such as unemployment and crime. According to a World Bank report, many countries strongly oppose liberal immigration and migration policies. Many maintain extensive legal barriers to prevent immigrants from seeking work or establishing a home inside their countries. Increasingly, immigration policies are becoming stricter as countries attempt to minimize the economic, cultural, and security effects of large movements of people across their borders.

In 2015, more than 1 million migrants and refugees arrived in Europe. This mass migration of people caused some governments in Europe to announce plans to adjust policies and strengthen borders to limit future mass migrations.

In Slovenia, the country’s president granted the parliament the power to close the country’s borders if necessary, due to a threat caused by migrations. In the United Kingdom, the government announced plans to halt a program to resettle refugee children.

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According to the UN, at the end of 2016, about 65.6 million people around the world were forced from their homes by conflict and persecution.

In the United States, anti-immigration sentiment has also grown. Donald Trump won the 2016 presidential election, while promising sweeping immigration reforms to limit the number of people coming into the country as well as deporting undocumented immigrants already in the country.

Shortly after taking office, citing national security, President Trump announced an executive order to temporarily ban travel to the United States by refugees and immigrants from some Muslim-majority countries. This travel ban has been challenged repeatedly in court. The future of immigration to the United States is still hazy, but the country’s reputation as a safe haven has dissolved.

What has caused countries such as the United States and those in Europe to become less welcoming to immigrants?

Some countries claim they are not equipped to deal with the costs of supporting unemployed citizens of another nation. Others argue that immigrant workers are taking jobs and resources away from their own citizens.

These attitudes persist even as studies show that most immigrants are eager to work and are willing to take on jobs that citizens don’t want, such as migrant farming. In addition, language and cultural differences can intensify the fear and distrust of immigrants that some people feel.

Despite these difficulties, most experts predict global migration will continue to rise in the coming years. Globalization has made it easier for people to find a safe place to live where they can find jobs and an improved standard of living.

U.S. Secretary of State John Kerry signs the Paris Agreement in April 2016, holding his granddaughter on his lap.

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credit: U.S. Department of State

ENVIRONMENTAL CHALLENGES

Imagine what the planet was like 400 years ago. There were far more wild, natural areas, oceans and lakes were cleaner, and the air quality in most places was healthier. This was before industry took on such a large role in our lives.

As global connections, trade, and development have increased, valuable habitats and rainforests have been cleared to make way for roads, housing developments, farmland, and other projects. As factory output increases, so does the amount of carbon dioxide and other pollutants released into the air, water, and soil.

While many nations have put regulations in place to protect the environment, these laws vary from country to county. Instead of obeying a regulation, multinational corporations can simply move their operations to a country with fewer regulations. Although this may lead to higher profits for the corporation, it often leads to environmental damage in the host country.

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The increase in carbon dioxide emissions from industrialization is a leading factor in global warming.

United States Withdraws

Although the United States originally approved the Paris Agreement, President Donald Trump announced in June 2017 that the United States planned to withdraw from it. The move drew much criticism from people and environmental groups within the United States and around the world. President Trump stated that the United States would be open to re-entering the Paris Agreement or a new treaty under terms that were more beneficial to American businesses and taxpayers. Do you agree or disagree with this approach?

The Paris Agreement sets a specific goal of keeping global temperatures from rising 2 degrees Celsius (3.6 degrees Fahrenheit).

At the same time, globalization’s advances in technology and communication have made it easier to fight environmental damage. Environmental groups can use the internet to more easily identify and alert people around the world about environmental damage and the companies that cause it. They can organize protests, boycotts, and other actions against the companies.

Global connections also make it easier for countries to band together in international agreements to protect the environment.

For example, many world leaders have met to discuss efforts to reduce the pollution that impacts climate change. In December 2015, the UN adopted the Paris Agreement to address climate change. The agreement, which took effect in November 2016, seeks to prevent increases in global temperatures by gradually reducing emissions of greenhouse gases. Throughout the years, the protection of the global environment has been a complex issue and is expected to present more challenges to the global community in the future.

BECOMING A GLOBAL CITIZEN

Through globalization, the world is becoming more connected every day. We are all global citizens. So what can we do today to be better citizens of the world?

Get informed. Learn about the issues facing the world and globalization. Reading this book is one step, but there’s so much more you can do. Read about current events and globalization in newspapers and other reputable media sources. Learn about new cultures or try learning a new language.

Share your story. What is your family’s immigration story? When did your family arrive in the United States? Share your story with others to help them understand the influences that brought you to where you are today.

Share your culture with others. Share information about your culture—its language, food, and traditions—to help others learn about it. Establish relationships with people from other cultures and learn about their traditions and customs. By learning about our differences, we can better see the similarities.

Make yourself available. Is there a new student in school from another country or culture? Reach out and help that person with the transition to their new environment. You might just develop a new friendship in the process.

Everyone can be a global citizen. By understanding the forces of globalization and learning about each other, we can begin to see beyond national borders. Globalization affects almost every part of our daily lives in ways that continue to evolve. Every day, we eat, shop, use products, and connect with people from around the world. It is an exciting time in the world’s history. As global citizens working together to make the world a better place for all, we can create a solid foundation of global connections for years and generations to come.

KEY QUESTIONS

What globalization issue interests you the most? The environment, immigration, trade? Why do you find this topic compelling?

What are your ideas for solving immigration disputes in your country? Is there one solution that will make everyone safe and happy?

 

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THINK GLOBALLY, ACT LOCALLY

Think globally, act locally is a principle that everyone can apply. It asks everyone, from governments and businesses to students and citizens, to consider the global impact of their actions.

 

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Write down what you think each word means. What root words can you find to help you? What does the context of the word tell you?

boycott, climate change, developing country, global warming, gross domestic product, immigrant, isolationism, migrate, persecution, recession, refugee, and secondary industry.

Compare your definitions with those of your friends or classmates. Did you all come up with the same meanings? Turn to the text and glossary if you need help.

What does it mean to think globally, act locally? What are some specific examples of how this principle can be applied by:

Cities

Companies

Individuals

Identify and research a person or organization in your community that thinks globally and acts locally. Write a profile of your subject, including specific examples about how they think globally and act locally. Consider the following.

What global concerns do they address in their work?

In what ways are they thinking about the global community?

What actions are they taking locally? How do their actions affect the local community?

How do both the global and local communities benefit?

To investigate more, find an example of a person or organization that is not living by the think global, act local principle. How do the subject’s actions not align with this principle? How does that affect the global community? How does it affect the local community? What changes would the subject need to make to think globally and act locally?

BE A GLOBAL CITIZEN

We are all global citizens. No matter where you live, you can get involved and make a difference in the world. Think about some issues facing the global community today. Poverty, refugees, hunger, environment, fair wages, healthcare, and education are just a few examples. What issue is most important to you?

 

Research some examples of local community service that are connected to your global issue. Who has done work in your community to address this issue? What have they done and how has it impacted the local community?

Brainstorm ideas for your own volunteer or community-service project that addresses your area of global concern. You might volunteer for an organization or create your own community-based project.

Fill out the details of your project: who, where, what, why, when, and how? Recruit volunteers as needed. Develop a timeline or schedule to help everyone complete the project. Then go out and make a difference!

After you have completed the service project, create a presentation to share with your class.

To investigate more, how does your service project fit into the principle of thinking globally, acting locally?