Notes on Globalization Lecture

Overview of Globalization

Seen historically as a path to peace through spreading prosperity globally.
Current view: free and fair trade is declining due to increasing competition among economic powers.

China: Focuses on trade ambitions, exemplified by the "New Silk Road" initiative.
USA: Advocates for an "America first" policy, resulting in skepticism about globalization.
Impact on the Poor: The poorest populations are disproportionately affected by this global competition.

Duisburg has transformed economically, becoming Germany's largest inland port.
Former industrial hub suffered job losses (10,000+ jobs) due to the dismantling of a steel plant by China in the late 70s.
Currently, Duisburg relies on the "just in time" logistics principle.
China is now a major trading partner, providing dozens of freight trains weekly.
Concerns: Other ports (Piraeus, Hambantota) face debt issues due to Chinese loans, raising worries over economic sovereignty.

Increased vulnerability of supply chains observed due to geopolitical events.
Duisburg is exploring alternative supply routes, including investments in Trieste.

Follansbee, West Virginia: Closure of coke plant leading to job losses (288 jobs).
The US steel industry has struggled for decades against foreign competition, prompting tariffs from multiple administrations.
Import Tariffs: Implemented by Bush and Trump to protect the steel industry, resulting in mixed opinions among workers.
The current political climate fosters skepticism towards globalization despite some benefits.

Globalization's Inequities: Only 30% of global population benefits from globalization; Peru is economically downtrodden.
Political instability has resulted in multiple leadership changes, exacerbating economic issues.
Mining sector primarily benefits foreign investors, particularly from China.
The informal economy constitutes 75% of employment, leaving workers without security.

Organizations like "Mibanco" have introduced microloans for impoverished populations, demonstrating potential for economic improvement.
Examples include Julio Solis, who expanded his business through microloans, and the Phipps farm benefiting from agricultural subsidies.

Environmental Concerns: Countries like China do not follow the same environmental regulations as others, raising sustainability issues.
Market Distortion: Agricultural subsidies in the U.S. can harm developing countries by driving local markets into distress.

Globalization is viewed as in crisis, with a need for more effective trade systems that consider equitable distribution of benefits.
Calls for a return to multilateral cooperation instead of isolationism.
Final Thoughts: While globalization has flaws, it remains essential for progress and economic development.