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Travel Impact Newswire Archives Edition 35 Part II

 

Archives (Edition 35  Part II) of Travel Impact Newswire by Imtiaz Muqbil 

 

Travel Impact Newswire  by Imtiaz Muqbil - Distinction in Travel Journalism

THE OTHER FACE OF GLOBALISATION (3,785 words)
 
Summary: In 1998, the top 10 corporations controlled 86% of the global telecommunications market and 35% of pharmaceuticals. Industrialised countries today hold 97% of all patents world-wide. These inequalities and imbalances of globalisation are raising the risk of conflict. That warning, in the UN Human Development Report 1999 (HDR), is part of a growing debate about who is dictating the terms of globalisation and in turn benefitting from it. The Travel & Tourism industry, very much in the throes of globalisation, still has time to debate and think it through. A four-part excerpt:

- PART II (continued from Part I) -

A HUMAN FACE FOR GLOBALISATION

The HDR makes a powerful plea for a re-writing of the rules of globalisation -- to make it work for people and not just for profits.

Globalisation, it says, is more than the flow of money and commodities -- it is the growing interdependence of the world's people through "shrinking space, shrinking time and disappearing borders." This offers great opportunities for enriching people's lives and creating a global community based on shared values. But markets, it argues, have been allowed to dominate the process, and the benefits and opportunities have not been shared equitably.

The result is a "grotesque" and dangerous polarisation between people and countries benefiting from the system and those that are merely passive recipients of its effects. The Report argues that the inequitable effects of globalisation driven by markets and profit touch all aspects of human life.

Care, "the invisible heart of human development," is threatened because today's competitive global market is putting pressures on the time, resources and incentives for caring labour, without which individuals do not flourish and social cohesion can break down.

"Even as communications, transportation and technology are driving global economic expansion, headway on poverty is not keeping pace," says CNN mogul Ted Turner in a special contribution to the Report. "It is as if globalisation is in fast-forward, and the world's ability to understand and react to it is in slow motion." 

The "breakneck" speed of globalisation is also making people's lives less secure, as the spread of global threats to well-being outpaces action to tackle them.

The report warns that the East Asian financial crisis, which put millions of people out of work and prompted cutbacks in social services world-wide, was not an isolated accident because financial volatility is an inherent feature of globally integrated financial markets.

Job insecurity is also increasing in both industrialised and developing countries, in the wake of economic and corporate restructuring and the dismantling of social protection measures.

Culturally, many people feel threatened by the predominantly one-way flow. The single largest export industry for the United States is not aircraft or cars, but entertainment, in films and television programmes. 

Criminals -- "among the most enterprising and imaginative opportunists" -- are beneficiaries of globalisation, with the six major international syndicates believed to gross $1.5 trillion a year. And the illicit trade in narcotics, weapons, labour, goods and money contributes to crime and violence that threaten neighbourhoods around the world. 

These human elements have been left out of the narrow, financially-based view of globalisation that has prevailed so far -- an omission which the HDR 1999 challenges head-on: "Competitive markets may be the best guarantee of efficient production but not of human development."

"As long as globalisation is dominated by economic aspects and by the spread of markets, it will put a squeeze on human development," says Sakiko Fukuda-Parr, director of the Human Development Report Office. "We need a new approach to governance, one that preserves the advantages offered by global markets and competition while allowing for human, community and  environmental resources that will ensure globalisation works for people and not just for profits." 

"The world is rushing headlong into greater integration, driven mostly by a philosophy of market profitability and economic efficiency. We must bring human development and social protection into the equation," says Dr. Richard Jolly, co-ordinator of the Report. "Globalisation needs a human face." 

An important contention of the Report: is that countries do not need unlimited income to achieve respectable levels of human development. Socially sensitive policymaking is a key factor. Thus, Qatar has a gross national product (GDP) per head of US$20,987 far ahead of Slovakia's at $7,910. Yet in terms of human development they are at an almost equal ranking. 

A WOMAN'S LOT IS STILL NOT A HAPPY ONE

Among those for whom life IS getting better, men are better off than women.

The HDR's Human Development Index (HDI) ranks 174 countries in terms of life expectancy, education and income. It shows that the most widespread discrepancy in these areas is between the sexes - universally. The statistics indicate "gender inequality in every society" and show that only a few countries have made "substantial progress" in this area. 

Countries credited with better conditions for women include the Bahamas, the Czech Republic, Norway, Singapore, Slovenia and Sweden. The diversity of these countries "shows that greater gender equality in human development can be achieved at different income levels and stages of development. It also shows that it can be achieved across a range of cultures."

High income, in other words, is not necessary for the creation of opportunities for women: Costa Rica is ahead of France in terms of gender equality in political, economic and professional activities, and Israel outperforms Japan.

The report says that women occupy more than 30% of parliamentary seats in only five countries; in 31 they occupy fewer than five per cent.

Moreover, it adds, ''the expansion of markets tends to penalise altruism and care. Both individuals and institutions have been free-riding on the caring labour that mainly women provide. Whether women will continue to provide such labour without fair remuneration is another matter.''

THE WAY AHEAD

The negative effects of globalisation are not inevitable. "With political commitment in the global community, they can all be reversed. With stronger governance-local, national, regional and global -- the benefits of competitive markets can be preserved with clear rules and boundaries, and stronger action can be put in place to meet the needs of human development," the Report states.

The Report calls for a re-writing of governance for the 21st century. Its suggestions and recommendations range from the global (reform of the United Nations and World Trade Organisation), through the regional (collective approaches by groups of countries to international negotiations in trade and other areas), to the national (social protection against the effects of globalisation) and local (greater gender balance in sharing the burden of providing care services). 

The Report urges a new vision for national and international policymaking to:  

- Balance concern for profits with concern for people disenfranchised by the turmoil of today's global marketplace;   

- Frame comprehensive approaches to global threats to human security such as HIV/AIDS, international crime, human rights abuses by multinationalcorporations and transborder pollution such as acid rain; 

- Build a more representative and coherent system of global governance, to buffer the effects of a "boom and bust" economy and address the needs of the 21st century.

New initiatives proposed by the Report include:

- A Global forum to include multinational corporations, trade unions and non-government organisations in a dialogue that broadens global governance and gives rich and poor people a louder voice in global decision-making;

- An extended mandate for the World Trade Organisation (WTO) to include antitrust provisions and a code of conduct for multinational corporations;

- Establishment of an Independent Legal Aid Centre and Ombudsman to help poorer countries in their international negotiations at the WTO. It notes that dispute settlement mechanisms can be fair only when rich and poor countries alike have access to expert services of equal calibre to argue their cases;

- Establishment of high-level units in each developing country deal with globalisation policy issues and better manage and co-ordinate national responses to the diverse opportunities and challenges of globalisation; 

- An international public programme to fund the development of  biotechnology, information and communications technologies to meet the main technological needs of poor people. The Report cautions that if the research agenda is left entirely to the market, the interests of the poor will be neglected. 

- Formulation of regional labour and environmental standards and agreements to work within them. This would give developing nations collective strength against the pressures of international negotiations and some protection against the undermining influence of global competition; 

- Increased co-operation in the fight against global crime, including a relaxation of restrictive bank secrecy laws and completion of an-international convention against transnational organised crime. 

- Faster debt relief and a redirection of aid in favour of poorer countries and human development priorities;

- Investigation of new sources of finance for the global technology revolution, such as a "bit tax" on Internet messages, and an international programme for the development of technology that serves the needs of poor people.

GLOBAL SOUNDBITES

Direct quotes from the HDR 1999:

''Without strong governance, the dangers of global conflicts could be a reality of the 21st century -- trade wars promoting national and corporate interests, uncontrolled financial volatility setting off civil conflicts, untamed global crime infecting safe neighbourhoods and criminalising politics, business, and the police.''

''In the globalising world of shrinking time, shrinking space and disappearing borders, people are confronting new threats to human security -- sudden and hurtful disruptions in the pattern of daily life.'' 

''Ultimately, people and nations will reject global integration and global interdependence if they do not gain from it and if it increases their vulnerability.  Pressures will mount to retreat to isolationism in economic policy culture and in political priorities.''

''The new rules of globalisation -- and the players writing them -- focus on integrating global markets, neglecting the needs of people that markets cannot meet. The process is concentrating power and marginalising the poor, both countries and people.''

''The market alone will make global citizens only of those who can afford it.'' 

''Reinventing global governance is not an option -- it is an imperative for the 21st century.''

'When the profit motives of market players get out of hand, they challenge peoples' ethics -- and sacrifice respect for justice and human rights.'' 

''Globalisation opens many opportunities for crime, and crime is rapidly becoming global, outpacing international co-operation to fight it.'' 

''The Internet is an easy vehicle for trafficking in drugs, arms and women, through nearly untraceable networks.'' 

''The positive effects of social support and social relationships on life expectancy are at least as significant as the negative effects of cigarette smoking, hypertension and lack of physical exercise.'' 

''More progress has been made in norms, standards, policies and institutions for open global markets than for people and their rights.'' 

''Economic growth alone is not enough. It must be pro-poor growth, expanding the capabilities, opportunities and life choices of poor people.''

''In the post-cold war world, local culture has often replaced ideology in politics, as the rise of fundamentalist movements reflects.''

''Rejecting the tight control over software given by copyright, a reverse movement has been launched -- 'copyleft' -- turning standard practice on its head.''

''A country can speed the growth of GDP by encouraging a shift in production from unpaid services such as care to market commodities.... But a deficit of care services not only destroys human development, it also undermines economic growth.''

''Policies to foster more caring labour appear unproductive or costly only to those who define them as narrowly contributing to GDP or  short-term profit. The erosion of family and community solidarity imposes enormous costs reflected in  inefficient and unsuccessful education efforts, high crime rates and a social atmosphere of anxiety and resentment.''

''New technologies promise many advances for human development, but public institutions cannot afford them alone and private industry will not develop them alone. Jointly they can.'' 

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Travel Impact Newswire is the Asia-Pacific's first email travel industry news feature and analysis service. Mission Statement: Dedicated to reporting with Integrity, Trust, Accuracy and Respect the issues that impact on the Asia-Pacific Travel & Tourism industry. Distributed every week to senior industry executives, consultants, academics and media.   Imtiaz Muqbil, Executive Editor. 

Return to Part I

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