• What does 'globalisation' mean?
• Is that good or bad?
• Are governments powerless in the face of globalisation?
• Who are the key players?
• How can globalisation work for people?

What does 'globalisation' mean?

Globalisation is a term that is frequently used but seldom defined.

It refers to the rapid increase in the share of economic activity taking place across national boundaries.

This goes beyond the international trade in goods and includes the way those goods are produced, the delivery and sale of services, and the movement of capital.

Is that good or bad?

Globalisation can be a force for good. It has the potential to generate wealth and improve living standards.

But it isn't doing that well at the moment. The benefits from increased trade, investment, and technological innovation are not fairly distributed.

The experience of the international trade union movement suggests that the reality for the majority of the world's population is that things are getting worse.

Globalisation as we know it is increasing the gap between rich and poor. This is because the policies that drive the globalisation process are largely focussed on the needs of business. The relentless drive to liberalise trade i.e. to remove trade barriers, promote privatisation, and reduce regulation (including legal protection for workers), has had a negative impact on the lives of millions of people around the world.

In addition, many of the poorer countries have been pressured to orientate their economies towards producing exports and to reduce already inadequate spending on public services such as health and education so that they can repay their foreign debt. This has forced even more people into a life of poverty and uncertainty.

Are governments powerless in the face of globalisation?

The type of globalisation we are experiencing is sometimes portrayed as an inevitable, technologically driven process that we must adapt to in order to survive and prosper.

For millions of workers, in the developing as well as the developed world, this has been translated into living with greater job insecurity and worse conditions.

But the reality is that the globalisation we have seen in recent decades has been driven by a laborious process of international rule-making and enforcement. Governments have made those rules. There has been a conscious political choice to pursue the policies that underpin the process.

Of course, domestic, economic, industrial and social policies also play a crucial role in determining living conditions, though poorer countries are less able to resist globalisation due to their economically weaker position.

Who are the key players?

A number of key players are driving globalisation.

They include

• multinational enterprises which carry out business across national boundaries;
• the World Trade Organisation (WTO), through which international trade agreements are negotiated and enforced;
• the World Bank and the International Monetary Fund (IMF) which are meant to assist governments in achieving development aims through the provision of loans and technical assistance.

They have championed the trade liberalisation policies mentioned above. Governments, and these international institutions are instrumental in determining the outcome of globalisation.

How can globalisation work for people?

Ways need to be found to manage and structure globalisation so that it supports fundamental human rights and sustainable development, and generates prosperity for ordinary people, particularly the poorest.

Left unchecked, globalisation will lead to their further marginalisation and impoverishment.