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Steam Engine Steam ship Airplane

In the 18 th and 19 th centuries the process of globalization received a series of boosts that collapsed distances and lowered transport costs. Steam Engine Steam ship Airplane. And also collapsing time. Telegraph Telephone Radio Television.

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Steam Engine Steam ship Airplane

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  1. In the 18th and 19th centuries the process of globalization received a series of boosts that collapsed distances and lowered transport costs • Steam Engine • Steam ship • Airplane

  2. And also collapsing time • Telegraph • Telephone • Radio • Television

  3. In 1858, the first trans-Atlantic telegram from Queen Victoria to American President James Buchanan took 16 ½ hours to arrive. 16 ½ Hours

  4. The world was soon wired

  5. Since then satellites have shrunk the world further

  6. The easy availability of technology has shrunk time and cut cost • 3-minute call from New York To London 1930 $300 (in today’s prices) 2003 $0.08

  7. The population of internet users worldwide has rocketed More than 633 million users by late 2003 1 Billion by 2005 Fewer than 20 million users in late 1995 Internet Café, Hanoi Source: Human Development Report 2001, Nua Internet Survey

  8. At a plummeting cost A data transfer costing $150,000 in 1970 costs $0.12 in 1999 Source: Human Development Report 2001

  9. Freight costs have fallen 70 percent between 1920 and 1990

  10. And so have tariff barriers – thanks to multilateral trade arrangements like GATT, WTO and NAFTA

  11. Production of components in off-shore locations has reduced prices and shifted jobs across borders The Falling Price of TV

  12. In this new environment, new actors have emerged to replace the traders, soldiers, missionaries and adventurers of years past. • 63,000 Multinational Corporations • 23,000 NGO’s • UN Agencies • WTO • IMF • Billions of consumers and tourists

  13. Global corporations, intent on finding the best markets, have taken over fromthe traders of the past 70000 60000 50000 40000 30000 20000 10000 0 1914 1973 1988 1992 1997 2000 Source: Global Inc. A Profile of Multinational Corporations. 2003

  14. Daily worldwide transactions worth a trillion dollars forms a stack 20 times higher than Mt. Everest Source: Anthony Giddens,’Runaway World : How Globalization is Reshaping Our Lives’

  15. Billions of people travel around the globe, spending money, spreading ideas and information People (billion passenger km)

  16. In some ways, there have been real and tangible benefits to this reconnecting of humanity Call Center in India

  17. Free trade and open economies have spread prosperity Beijing, 2003

  18. The march of democracy has made an increasing number of governments accountable to their citizens and fostered awareness of human rights Source: Human Development Report, 2002

  19. The difference between globalization then and now lies in the speed and volume of transfers and in the changing power balance Chili pepper took decades, perhaps a hundred years, to catch on from Korea to Sri Lanka. It was voluntarily accepted without any mighty corporation pushing its sale

  20. McDonalds, conversely, has spread all over Asia in just over two decades

  21. But trade is not on a level playing field. Rich nations’ farm subsidies hurt poor farmers in the developing world • US subsidizes 25,000 cotton growers with $2 billion subsidy • In Africa poor cotton farmers lose $250 million in exports each year

  22. Subsidies and Survival $2.50 subsidy a day for a cow in Europe Nearly half of the world’s population survive on less than $2 a day

  23. Another major difference is the growing awareness of global interdependence as well as of the yawning gaps • 2.8 billion people live on less than $2 a day. • They have no electricity, no phone • The richest 1% of the world’s people receive as much income each year as the poorest 57%.

  24. Growth has come with inequality

  25. The idea of protesting inequality has also taken on global proportions, as evidenced by the demonstrations that take place at every meeting of major world leaders.

  26. The cost of global reconnection has been steep. The risks of HIV/AIDS, terrorism, nuclear war, environmental disaster, and computer viruses have all grown with the rapid movement of people, goods and information. Chernobyl, April 26,1986

  27. SARS – A virus flying on a jet plane November 2002 China February 2003 Hong Kong April 2003 The World

  28. Spanish Flu then, SARS now Spanish Flu killed 25 million in a year, though the mortality rate was 2.5 percent SARS spread to 32 countries in 5 months and killed 812, though the mortality rate was 12 percent

  29. Intensified globalization made the difference • Tourism and passenger jets transported the virus faster than steamboats and trains in 1918 • World-wide network of health workers quickly identified SARS and sequenced the genome of the virus • Most importantly, a global institution – WHO - was able to order quarantine of affected areas

  30. Computer viruses are especially threatening, because the whole world is wired and dependent upon electronic communication

  31. Al Qaeda and other terrorist groups pose new challenges to the free movement of goods and people that globalization represents

  32. Challenges notwithstanding, the drive to reconnect people all over the world will be quite hard to reverse The reconnection between developed and developing nations will turn the light on in many places but will produce sparks and blackouts as well

  33. The globalized world is likea small boat We cannot “afford to ignore the condition of our fellow passengers on this little boat. If they are sick, all of us risk infection. And if they are angry, all of us can easily get hurt.” - Kofi Annan Secretary General of the United Nations

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