Issue #1: Bretton Woods Conference (World Bank & IMF)
After World War II an international conference was held in Bretton Woods, the goal was to create organizations that could stop the economic conditions for a world war. The result were two organizations; The World Bank, and the International Monetary Fund (or IMF for short). The World Bank provides loans to developing countries to support capital programs. This encourages economic development through infrastructure building. This sounds good doesn't it? The catch is, being a loan, it has to be payed off. Often times these developing countries have trouble paying off these loans, which digs them into a hole where their debt is sky high. My point is, though globalization provides prosperity for some *cough cough* developed nations. Developing ones are getting the short end of the stick. These debts are impossible to pay off, they do more harm then good. They cement the fact that globalization doesn't just create prosperity, it is at the expense of some.
After World War II an international conference was held in Bretton Woods, the goal was to create organizations that could stop the economic conditions for a world war. The result were two organizations; The World Bank, and the International Monetary Fund (or IMF for short). The World Bank provides loans to developing countries to support capital programs. This encourages economic development through infrastructure building. This sounds good doesn't it? The catch is, being a loan, it has to be payed off. Often times these developing countries have trouble paying off these loans, which digs them into a hole where their debt is sky high. My point is, though globalization provides prosperity for some *cough cough* developed nations. Developing ones are getting the short end of the stick. These debts are impossible to pay off, they do more harm then good. They cement the fact that globalization doesn't just create prosperity, it is at the expense of some.
Issue #2: Ship Breaking
Ship breaking is the practice of breaking down old container ships for scrap. It used to be dominated by North America until environmental policy became commonplace. Then, transnational corporations moved their operations to developing countries. The reason is the danger of the work, combined with the environmental impact. In order to make more money, these corporations took advantage of poor countries who need the business transnationals bring. The workers are paid very little, all while getting to destroy the environment while their at it. This is another example of how prosperity through globalization is potentially something that goes both ways. Transnationals make more money. The environment gets destroyed, impeding sustainability on a global scale. Workers get paid very little, impeding economic sustainability.
Ship breaking is the practice of breaking down old container ships for scrap. It used to be dominated by North America until environmental policy became commonplace. Then, transnational corporations moved their operations to developing countries. The reason is the danger of the work, combined with the environmental impact. In order to make more money, these corporations took advantage of poor countries who need the business transnationals bring. The workers are paid very little, all while getting to destroy the environment while their at it. This is another example of how prosperity through globalization is potentially something that goes both ways. Transnationals make more money. The environment gets destroyed, impeding sustainability on a global scale. Workers get paid very little, impeding economic sustainability.
Issue #3: Outsourcing
Outsourcing is when labor is sourced from outside the home country. It's caused by strict labor laws combined with unions. In order to make more profit transnational corporations have moved operations to other countries with less strict labor laws and no unions. This makes it difficult for the developing countries whose labor is being used because if they implement labor laws. The transnationals will leave. Setting back their economy, this essentially leads to "the rich get richer and the poor get poorer." This not only leaves developing countries with poor wages and poor labor laws but also takes jobs away from developed countries. This is evident through the presence of maquiladoras. Maquiladoras are factories just by the Mexican-US border (on the Mexican side). This is so transnationals can take advantage of cheap labor. Although some do believe that though there is a lack of manufacturing jobs as a result of outsourcing, that has left us better off with high paying jobs.
Outsourcing is when labor is sourced from outside the home country. It's caused by strict labor laws combined with unions. In order to make more profit transnational corporations have moved operations to other countries with less strict labor laws and no unions. This makes it difficult for the developing countries whose labor is being used because if they implement labor laws. The transnationals will leave. Setting back their economy, this essentially leads to "the rich get richer and the poor get poorer." This not only leaves developing countries with poor wages and poor labor laws but also takes jobs away from developed countries. This is evident through the presence of maquiladoras. Maquiladoras are factories just by the Mexican-US border (on the Mexican side). This is so transnationals can take advantage of cheap labor. Although some do believe that though there is a lack of manufacturing jobs as a result of outsourcing, that has left us better off with high paying jobs.