CARIBBEAN STUDIES NOTES

GLOBALISATION AND DEVELOPMENT

Globalisation is the process whereby flows of trae! finance an infor"ation between co#ntries
are broaene an eepene so that they f#nction as one $lobal "ar%et& Globalisation is a
 process that eroes istinctions between one place an another& The worl wo#l operate as if
there are no borers ' as if the nation(state oes not e)ist& All co#ntries wo#l be on a le*el
 playin$ fiel +concei*e as e,#al- an all wo#l be i"pacte by worlwie pheno"enon&

.owe*er! there are i"plicit contraictions in the way $lobalisation is bein$ playe o#t s#ch as
the fact that there will be who can
c an affor $reater access to the elite pro#cts an ser*ices an
ha*e "ore power& All /co#ntries0 wo#l not ha*e the sa"e i"pact on others1 instea! there "ay
 be a few powerf#l co#ntries whose o"inant ieas an pro#cts infl#ence the rest of the worl&

Internationali2ation be$an with the re#ction in transport costs in the n ineteenth an early
twentieth cent#ries& After the two worl wars! the instit#tions of the 3N! IM4! GATT
GATT +now
5TO- an the 5orl
5orl Ban% were set #p& They stabili2e c#rrencies! increase trae an
 pro#ction an %ept a ti$ht hol on re$#lation of international "onetary flows& Econo"ies were
thrown into isarray in the 6789s when OPE: co#ntries hi%e #p the price of oil& Since then! free
trae has sprea an TN:s an forei$n in*est"ent has been "ore wiesprea&

I:Ts ha*e enables b#sinesses to co""#nicate with s#ppliers an c#sto"ers all o*er the worl
an ha*e a#to"ate "any sta$es of pro#ction! $reatly increasin$ efficiency&

Globalisation is pri"arily of three types! na"ely! econo"ic! c#lt#ral an political;

1. Economic Globalisation:

 No national econo"y is an islan now& To *aryin$ e$rees! national econo"ies infl#ence one
another& One co#ntry which is capital(rich in*ests in another co#ntry which is poor& One who has
 better technolo$ies sells these to others who lac% s#ch technolo$ies&

The pro#cts of an a*ance co#ntry enter the "ar%ets of those co#ntries that ha*e e"ans for
these pro#cts& Si"ilarly! the
the nat#ral reso#rces of e*elopin$ co#ntries
co#n tries are sol to e*elope
co#ntries that nee the"& Th#s! $lobalisation is preo"inantly an econ o"ic process in*ol*in$
the transfer of econo"ic reso#rces for" one co#ntry to another&

2. Cultural Globalisation ;

:#lt#re has increasin$ly beco"e a co""oity& Pop#lar boo%s an fil"s ha*e international
"ar%ets& .arry Potter has reaers al"ost all o*er the worl& En$lish "o*ies are seen al"ost in all
co#ntries& 5estern
5estern pop "#sic has beco"e pop#lar in e*elopin$ co#ntries& The re*erse flow of
c#lt#re is insi$nificant& The flow of c#lt#re is "ainly fro" the North to the So#th& In the last few
years the "eia owners of the 5est ha*e shown interest in enterin$ e*elopin$ co#ntries&

4or e)a"ple! M#roch has opene TV channels +STA< News! STA< Mo*ies an STA< Pl#s- in
Inia& :#lt#ral $lobalisation has been facilitate by the infor"ation re*ol#tion! the sprea of
satellite co""#nication! teleco""#nication networ%s! infor"ation technolo$y an the Internet
etc& This $lobal flow of ieas! %nowle$e an *al#es is li%ely to flatten o#t c#lt#ral ifferences
 between nations! re$ions an ini*i#als&

As this flow of c#lt#re is "ainly fro" the centre to the periphery! fro" the North to the So#th!
an fro" the towns an cities to *illa$es! it is the c#lt#res of *illa$es of poor co#ntries which
will be the first to s#ffer erosion&

3. olitical Globalisation:

Since lon$! efforts ha*e been on to brin$ the whole worl #ner one $o*ern"ent& The Lea$#e of
 Nations an the 3N ha*e been the efforts in that irection& It is belie*e that the worl #ner one
$o*ern"ent will be safer an freer fro" conflicts; The 3N has belie e)pectations! b#t a n#"ber
of re$ional or$anisations li%e E#ropean 3nion! ASEAN! APE: an SAA<:! an "#ltic#lt#ral
econo"ic or$anisations s#ch as 5TO ha*e co"e #p&

The "e"ber(states re"ain so*erei$n! b#t thro#$h their obli$ations an co""it"ents! they ha*e!
to so"e e)tent! inte$rate the"sel*es to the conc erne international or$anisations an $ro#pin$s&

GLOBALISATION
Lin%a$es between co#ntries are eepene
<eco$ni2es no bo#naries1 sees the worl as a
whole
All co#ntries are on e,#al footin$
A %in of socialist iea where all co#ntries
recei*e e,#al benefits
INTE<NATIONALISATION
:o#ntries trae "ore
<eco$ni2es the nation(state
Sees co#ntries as e*elope an e*elopin$
an treats the" ifferently
:o#ntries benefit ifferently epenin$ on how
well they can withstan the co"petition

Aa" S"ith s#$$este the non(interference of $o*ern"ents in "ar%ets so that each co#ntry
co#l pro#ce the co""oities in which they ha a co"parati*e a*anta$e&

IMPA:T AND <ESPONSE TO GLOBALISATION

• In#stry an co""erce ' There has been the e)pansion of free trae or trae
liberali2ation whereby tariffs an other barriers to trae ha*e been re"o*e& .owe*er!
e*elope co#ntries "ay still s#bsiise their in#stries an instit#te tariffs b#t floo the
"ar%ets of e*elopin$ co#ntries with their $oos&
:apital can be "o*e ,#ic%ly to anywhere in the worl facilitatin$ 4DI in "any
co#ntries&
 • Distrib#ti*e sector +s#per"ar%ets! epart"ent stores- ' These e)hibit a wie ran$e of
$oos fro" all parts of the worl! increasin$ choice for the cons#"er& .e benefits by
choosin$ cheaper pro#cts that "ay not be locally pro#ce& .owe*er! these $oos ha*e
to be pai for with forei$n e)chan$e&
• Labo#r ' Globalisation both creates an estroys =obs& >obs fo#n in in#stries which are
not $lobally co"petiti*e are lost while those which c ontrib#te $reatly towars the
co#ntry0s e)ports are "aintaine an for"e contin#o#sly& Ieally! $lobalisation sho#l
also facilitate the free "o*e"ent of labo#r between co#ntries& Therefore! persons
,#alifie in a specific area "ay "o*e to those co#ntries specialisin$ in those acti*ities&
• Technolo$y ' :o#ntries which ha*e re"o*e trae barriers ' b#t were less efficient in
 pro#ction than co"petitors ' ha*e so#$ht to a#to"ate "any processes in pro#ction an
in#stry e&$& a$ric#lt#re& This wo#l increase o#tp#t an re#c e costs! thereby "a%in$
these co#ntries "ore co"petiti*e&
• Ieolo$y ' :apitalis" is the o"inant the"e behin the c#rrent processes of
?$lobalisation@& :o#ntries also ha*e to accept the a*ice an conitions of "#ltilateral
or$anisations! especially once ai is $i*en& Str#ct#ral a=#st"ent policies +incl#in$
c#ttin$ bac% on social refor"s an re#cin$ salaries an the wor%force- are co""on
across "any e*elopin$ co#ntries which ha*e recei*e ai&
• Pop#lar "o*e"ents
o :aribbean Association for 4e"inist <esearch an Action +:A4<A- ' :A4<A is a
re$ional networ% of fe"inists! ini*i#al researchers! acti*ists an wo"ens
or$anisations who efine fe"inist politics as a "atter of both conscio#sness an
action& Its "ission is to celebrate an channel the collecti*e power of wo"en for
ini*i#al an societal transfor"ation! th#s creatin$ a cli"ate in which social
 =#stice is realise& :A4<As c#rrent research pro=ects foc#s on the i"pact of trae
liberalisation on wo"en! the e*elop"ent of $ener inicators for pro=ects an
 pro$ra""es to benefit wo"en! an to#ris" an the se) trae&
o 5o"en0s Action for New Directions +5AND- ' This pro$ressi*e national non(
 profit or$ani2ation that see%s to e"power wo"en to act politically to re#ce
*iolence an "ilitaris" an reirect e)cessi*e "ilitary reso#rces towar #n"et
h#"an an en*iron"ental nees& It ai"s to pro"ote alternati*es to *iolence as
sol#tions to conflict! clean #p en*iron"ental effects of n#clear weapon s
 pro#ction an pre*ent *iolence a$ainst wo"en&
o En*iron"ental an social =#stice non($o*ern"ental or$anisations ' These ai" to
eli"inate iscri"ination towars certain $ro#ps of people& S#stainable
e*elop"ent an en*iron"ental protection are also foc#ses of so"e
or$anisations&

4A:ILITATO<S O4 GLOBALISATION AND DEVELOPMENT

A "#ltilateral a$ency is one where "any "e"bers participate on e,#al footin$ to achie*e certain
$oals by followin$ e*ise proce#res&

• !orl" Tra"# Or$anisation %&orm#rl' t(# G#n#ral A$r##m#nt on Tari&&s an" Tra"#)
o <e$#lates trae in $oos by o*erseein$ the r#les of international trae an
arbitratin$ isp#tes arisin$ fro" those r#les
o Its tas% is to /re"o*e all barriers or enc#"brances of an y %in to trae anywhere
in the worl0&
o Pro*ies ser*ices s#ch as teleco""#nications an ban%in$
o The 5TO has been acc#se of fa*o#rin$ TN:s an e*elope co#ntries!
s#b*ertin$ its own $oals of $lobalisation for internationalisation
• Int#rnational *on#tar' +un"
o 4osters $lobal "onetary cooperation
o Ens#res financial stability worlwie
o Pro*ies loans an technical assistance to e)pan trae an to pro"ote e)chan$e
stability an "ana$e BOP proble"s
o .elps to control ebt
o Gi*es a*ice on policies "ost li%ely to enco#ra$e stable e)chan$e rates an
econo"ic $rowth
o O*ersees entire international "onetary an financial syste"
o Sol#tions s#$$este by the IM4 +str#ct#ral a=#st"ent policies- incl#e the
followin$& These ha*e res#lte in #ne"ploy"ent! po*erty! inflation an lac% of
a*ailability of $oo #tilities an ser*ices&
eepin$ interest rates hi$h
De*al#in$ the c#rrency
<e#cin$ $o*ern"ent spenin$ in /non(pro#cti*e0 sectors
Increasin$ ta)es
Pri*ati2in$ "any p#blic corporations
• !orl" Ban, %&orm#rl' Int#rnational Ban, &or R#construction an" D#-#lom#nt)
o Pro*ies finance for projects to promote development  in the for" of lon$(ter"
loans to e*elopin$ co#ntries
o Loans pro"ote e,#ity an pro#cti*ity an are #s#ally conitional on
i"pro*e"ent in so"e aspect of social life
o :han$in$ efinitions of e*elop"ent has chan$e the foc#s fro" econo"ic
$rowth to incl#e po*erty re#ction
o Enorses internationalisation of "ar%ets an trae liberalisation policies as the
 path to econo"ic e*elop"ent
o It has helpe to boost econo"ic $rowth b#t its contrib#tion to h#"an
e*elop"ent has been si$nificantly less
• Economic artn#rs(i A$r##m#nt  ' The Econo"ic Partnership A$ree"ents +EPAs-
 between the E3 an African! :aribbean an Pacific +A:P- re$ions are ai"e at
safe$#arin$ preferential access to E#ropean "ar%ets an pro"otin$ trae between the
 two $ro#pin$s ' an thro#$h trae e*elop"ent! s#stainable $rowth an po*erty
re#ction&

The EPAs set o#t to help A:P co#ntries inte$rate into the worl econo"y an share in
the opport#nities offere by $lobalisation&

4or well o*er C9 years! e)ports fro" the A:P co#ntries were $i*en $enero#s access to
the E#ropean "ar%et&

et preferential access faile to boost local econo"ies an sti"#late $rowth in A:P
co#ntries& An the proportion of E3 i"ports fro" A:P co#ntries roppe fro" 8 to
C of E3 i"ports&

The EPAs allow for;

 are Ftailor("aeF to s#it specific re$ional circ#"stances

 $o beyon con*entional free(trae a$ree"ents! foc#sin$ on A:P e*elop"ent! ta%in$

acco#nt of their socio(econo"ic circ#"stances an incl#e co(operation an assistance
to help A:P co#ntries i"ple"ent the A$ree"ents

 opene #p E3 "ar%ets f#lly an i""eiately +#nilaterally by the E3 since 6st >an#ary
99H-! b#t allowe A:P co#ntries 6 +an #p to - years to open #p to E3 i"ports
while pro*iin$ protection for the sensiti*e 9 of i"ports

  pro*ie scope for wie(ran$in$ trae co(operation on areas s#ch as ser*ices an
stanars

 are also esi$ne to be ri*ers of chan$e that will %ic%(start refor" an help stren$then
r#le of law in the econo"ic fiel! thereby attractin$ forei$n irect in*est"ent! so
helpin$ to create a F*irt#o#s circleF of $rowth

• Transnational Or$anisations / MN:s $reatly infiltrate the "ar%ets of e*elopin$

co#ntries! especially those with a stable $o*ern"ent or c#rrency sit#ation! so#n
infrastr#ct#re anJor cheap labo#r force& .owe*er! MN:s ha*e been fo#n $#ilty of
serio#s h#"an ri$hts *iolations! ta) e*asion! "oney la#nerin$ an hiin$ f#ns in
offshore ban%s& Many o not e*en e"ploy eno#$h persons an lea*e whene*er they are
reay ' #s#ally when their ta)(free perio of operation is co"plete&
• T#c(nolo$'
o Allows co""#nication between s#ppliers an p#rchasers in separate co#ntries
o E(co""erce has opene #p "ar%ets for pro#cts an pro*ies "ore choice for
cons#"ers
 o In*est"ent s#ch as the p#rchasin$ of stoc%s can be one o*er the internet! th#s
eli"inatin$ the "ile "an
o Goos can be pro#ce "ore cheaply an in lar$er ,#antities! "a%in$ the" "ore
co"petiti*e on the worl "ar%et
• I"#olo$i#s
o Social  ' preference for forei$n pro#cts
o G#n"#r
o Economic  ' an #nfettere econo"y is the en$ine of $rowth as econo"ies will
specialise in those $oos with which they ha*e a co"parati*e a*anta$e
o olitical / capitalist econo"ies try to co"pete on the worl "ar%et

The IM4 an 5orl Ban% are abo#t lenin$ "oney an $i*in$ technical a*ice& Po*erty!
altho#$h still wiesprea! has reporte si$nificant re#ction b#t co#ntries cannot co"pete #ner
conitions of trae liberali2ation&