Globalization: North-South Perspectives


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Industrial convergence, globalization, and the persistence of the North-South divide

Trade policies in particular are often used to preach the advantages of globalization. This chapter shows that the new trade regime is heavily biased, tilting trade relations further against small countries and the South. Rather than being a rule-based system upholding the rule of law, and protecting the contractual rights of Southern or smaller countries in general, it is a pseudo-legal club to beat weaker countries with, even though bigger Southern Countries, such as India or China, are not always defenceless.


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  • North–South divide.
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Larger countries can choose whether to comply with dispute settlement findings or not. This chapter gives many examples. Recent attempts to change the dispute solution mechanism even more away from equal treatment before the law bode ill for weaker members. Furthermore, the WTO offers itself publicly as a means to outsmart parliaments and democracy. While the WTO has served to establish basic commitments, the North meanwhile prefer bilateral investment treaties in order to press WTO-plus obligations on the South, obligations that could not get through multilateral WTO negotiations.

The goal of this chapter is to discuss globalization ontology through the zeitgeists of historical eras. Zeitgeist or spirit of the age study of each influential age contributes dramatically to cogent comprehension of economic, social, political, cultural, and historical backgrounds and atmospheres, which have collectively molded globalization into a stupendous phenomenon. Moreover, the paper has scrutinized the concept of globalization to see whether it is an ancient concept in a new disguise or a modern all-inclusive phenomenon.

Hence, the study is mostly analytical and rests upon secondary data through library study.


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  • Introduction.

The main purpose of this chapter is to analyze the theoretical relationship between globalization and institutional quality and the empirical analysis of this linking in developing countries. For this aim, this chapter seeks to answer three main questions: 1 How do institutions affect globalization trade openness? If the answer is positive, does globalization lead to an improvement in the institutional quality or its deterioration? To answer these questions, we use analytical-descriptive methods and econometric methods including Granger-type causality test based on panel vector error correction model PVECM.

The theoretical findings of this chapter show that the good institutional quality via various channels affects the volume, structure, and composition of the trade. Also, economic globalization may improve or deteriorate the quality of institutions, but the kind and the extent of its influence depend on the type of institutional system and institutional structure of countries. The descriptive analysis of data status of globalization and institutional quality in developing countries showed that the trend of economic globalization is not favorable in comparison with the world trend.

Globalization and Money A Global South Perspective

In addition, compared to both three dimensions of globalization and the world as a whole, it presents an unfavorable situation. On the other hand, the position of institutional quality, in particular the quality of regulation and the effectiveness of governments of the vital factors of trade expansion , has the worst situation. The results of Granger-type causality test showed that there is no causal relationship between economic globalization and legal-economic institutions such as the rule of law and government effectiveness in the short term, but there is at least one causal relationship in the long run.

This relationship with the index of the rule of law is bidirectional and with other indexes is unidirectional. Also, the findings of this study show that in the short and long run, political globalization is the cause of political institutions political stability and voice and social globalization is the cause of social institutions. Therefore, the globalization view of institutional change can be cautiously supported.

This chapter proposes a taxonomy of country performance based on GDP and innovation indicators within G20 economies.

Through the evaluation process, the seven indicators are divided into input and output data; five of them are the input data institutions, human capital and research, infrastructure, market sophistication, and business sophistication , and the other two are the output data knowledge and technology output and creative output. The taxonomy provides the identification of country performance and presents relevant information to policymakers, who seek to apply effective economic strategies and develop global policies.

The emergence of MOOCs caused a great deal of interest among academics and technology experts as well as the general public. Some of the authors who wrote on MOOCs predicted it would be the next big thing to disrupt education. Other authors saw it as another fad that will go away once it had run its course as most fads often do.

But MOOCs did not turn out to be as such, and they are still around. Most importantly, they have evolved into something that resembles a viable business model. This development will have global implications for higher education and raises the prospect of bridging the North-South divide.

This chapter examines this phenomenon and its implications from the theoretical frameworks of disruptive innovations and Jobs to Be Done—as developed by Clayton Christensen and his colleagues—and also explores its global dimension and its implications for higher education. Innovation capacity and knowledge absorption are recognized in the literature as two fundamental enablers to achieve growth through innovation. Technology transfer is based on knowledge absorption that is crucial in the innovation process.

In African countries, especially sub-Saharan countries, technology transfer is even more important since it allows countries to emerge from poverty and weak economic growth. This chapter will review the importance of knowledge absorption and the difficulty of its construction in Senegal, before studying the links between Senegal and China. Although the Chinese foreign direct investment FDI flows in Senegal are growing in recent years, the relations between the two countries remain an opportunistic relation rather than a real transfer of knowledge.

Many scholars have investigated the association between trade openness and the economic development. Empirically, the approach is based on panel regressions and Granger causality tests. However, it fails to statistically prove any impact of the import activity. Finally, the results of the Granger causality tests show that the relationship between international trade and GDP and GNI per capita is unidirectional. These findings lead to believe that scholars should investigate more carefully the role of barriers to trade in the developing countries.

The difficulty of competing with international skill, amortized on a world market basis;. Although major economic changes have occurred, both public- and private-sector science have been in the rear guard rather than the forefront of reorientation and reallocation of resources. The need for industrial and scientific reorientation was foreseen by some observers. But, it was the decline of trade of primary products that caused severe trade imbalances and a 40 percent devaluation of the Australian dollar 50 percent against the Japanese yen and the German mark that jolted national awareness of the risks of technological obsolescence.

The problem is structural and so is broader than the science and technology issue.

Globalization and the South | SpringerLink

Nevertheless, national success or failure in converting science into a share of globalized technology is an important element. If the model of the product cycle is valid, the ability to innovate will determine whether the full industrialization level is attainable. Generation of venture capital. The disadvantages of small scale can be overcome to some extent by creation of specialized niches based on local invention and individual entrepreneurs. Lack of venture capital and management skill are often the limiting factors.

A Management Investment Company M. The M. Australia has much to gain from further globalization: access to international technology, faster growth, improved competitiveness, and better use of scientific and engineering manpower. Her relative position in the region, however, is less certain. Rigidities in wage structure, labor organization, and both private and public administration may slow industrialization relative to that in neighboring nations. Manufacturers in Australia, like those elsewhere, have transferred some of their production steps overseas in the interest of competitiveness of the overall process and harmonization of the international markets.

Australia, too, faces the worldwide problem of maintaining an adequate level of protection as a buffer against social upheaval, without, however, unduly slowing the growth of international trade. It is unlikely that in the near future most areas of manufacture will be internationally competitive, as mining and agriculture are now.

The economy may therefore be able to bear a modest level of cross-subsidization in the form of residual tariffs for the labor-intensive industries to prevent permanent widespread unemployment. Similar dilemmas will be faced by other countries, including the United States, which are major producers of raw materials. The manufacturing industry needs to improve its international competitiveness and export performance, at least in some areas, to gain the advantage of scale. The public sector needs to increase its orientation to economic needs, particularly in the manufacturing sector.

The major driving force of globalization of industries is the multinational company. As the scientific potential of smaller and developing countries has become more important, their inclusion in the global process of technology creation has increased in importance.

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Their inclusion contributes already, but could contribute much more to maximizing creative potential worldwide. The underlying concept is plausible. Research is not a zero-sum game; both parties must gain. Know-how is tradable, and improved personal communication is making know-. Synergism between donor and recipient presupposes the following conditions:. Benefit to both—for example, proximity to customers for the licensor and ability to build on international know-how for the licensee;. The arrangements provide for free exchange of information, but the right of use, including export, is negotiated case by case on the basis of optimum fit.

In selected areas, in which the local subsidiary had concentrated or made a major invention, say in veterinary drugs, electrical tools, or mining technology, the subsidiary is given a corporate mandate, global or regional. On the national evolutionary scale of the production cycle, the United States and Japan occupy the top positions. Both nations are passing through the transition from an economy based on mass production to one based on information technology and its application to mass and customized manufacture.

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Nevertheless, as a proportion of the U. The U. There are differences in investment and technology transfer between the two countries. One notable difference is the substantial Japanese investment in the United States, in contrast to the small U. These patterns may be explained in relation to geography, economic structure, and historical links.

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There are also differences in technology export. This disparity largely reflects the different stages of technological development of the two countries—particularly the greater differences of the past. It is probably also the result of greater Japanese reluctance to transfer high-technology knowledge. However, the crossover point has been reached; in payments and receipts for new licenses, Japan became a net exporter in the mids.

Both the United States and Japan have transferred some of their labor-intensive industries to less developed nations. The United States was guided in this action primarily by economic considerations. Transfers included important electronics production steps, which were moved to the NICs in the Pacific. Japan has criticized this policy Saba, and has mainly transferred more mature processes.

Some of the elements of cooperation and competition between the United States and Japan have been highlighted in recent trade controversies. The two nations hold some common beliefs: internationalization of industries, deregulation, free trade, fair competition, and concentration on the knowledge-based industries as the economic driving force.

Nevertheless, there have been tensions between the two countries, with the current confrontation centered on semiconductors, the key to informatics, which have a tremendous impact on manufacturing and trade. The respective bases of competition are different. The United States unquestionably pioneered semiconductors and still leads in the science base.

The United States grants 10 times as many Ph. Thousands of Japanese students study in the United States, and research projects financed by Japanese companies in U.

Globalization: North-South Perspectives Globalization: North-South Perspectives
Globalization: North-South Perspectives Globalization: North-South Perspectives
Globalization: North-South Perspectives Globalization: North-South Perspectives
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Globalization: North-South Perspectives Globalization: North-South Perspectives
Globalization: North-South Perspectives Globalization: North-South Perspectives
Globalization: North-South Perspectives Globalization: North-South Perspectives
Globalization: North-South Perspectives Globalization: North-South Perspectives
Globalization: North-South Perspectives

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