Welcome to Era 9 Paradoxes of Global Accelerationn

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Big Era Nine Paradoxes of Global
Acceleration 1945-2004
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• The World in 1945
• 50 million people killed during WW II
• Parts of Europe, Asia, and North Africa
  in ruins
• World trade severely damaged

Much of the world looked pretty bleak.
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• Many European economies in shambles
• European Colonial empires crumbling
• Growing nationalist movements in Africa and Asia
• U.S. the major industrial and atomic power

The world entered a new era.
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Cold War policies developed

• The Soviet Union occupied Eastern Europe and
  part of Germany.
• The U.S. moves to encircle the Soviet Union with
  a system of alliances and military aid.
• U.S. offers Marshall plan to rebuild Europe and
  gives 13 billion in aid.
• The U.S. adopted a policy of Containment of
  the Soviet Union with military bases around the
  world.
• An Iron Curtain of tense relations separated
  the Western allies from the U.S.S.R. and its
  allies.

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The World became divided into two hostile camps
The U.S.S.R. and the U.S.
Joseph Stalin
Pres. Harry Truman
1946-60
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• During the Cold War, the U.S.S.R and the U.S.
  followed a policy of Mutual Assured Destruction
  (MAD).

I guess it made sense at the time.
Mutual Assured Destruction is a military
deterrence strategy in which a full scale use of
nuclear weapons by one of the opposing powers
would result in the destruction of both.
The U.S. and U.S.S.R had enough nuclear bombs to
destroy the world about 400 times.
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The Cold War was very costly in lives.
1950-53 - A divided Korea led to war, separated
family members, and cost a million lives,
including 48,000 Americans. 1963-1972 - Three
million people died in the Vietnam War, including
58,000 Americans.
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The forty years of the Cold War were costly in
resources.
We spent 3.5 trillion, and for what?
We spent 5.5 trillion dollars on nuclear arms,
and we won!
How much is a trillion dollars?
Michail Gorbachev
George H.W. Bush
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During the cold war many former colonized peoples
created new nations.

• India gained independence from Britain in 1947.
• Indonesia gained independence from the Dutch in
  1949.
• Ghana gained independence from Great Britain in
  1957.
• By 1965 most former European colonies had become
  newly created independent nation-states.

.
The U.S. and the U.S.S.R. competed for the
loyalties of these new nations.
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Several of the new nations pursued a non-aligned
policy.

• In 1955 India, Indonesia, and Yugoslavia
  sponsored the Bandung Conference of Non-Aligned
  nations. It aimed to promote solidarity among
  newly independent states and to prevent the U.S.
  and the U.S.S.R. from meddling in their domestic
  affairs.
• Nehru and Sukarno led the meeting.

Sukarno of Indonesia
Nehru of India
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Colonialism left new nations Underdeveloped.Thi
s table shows how shares of world Gross Domestic
Product changed between 1870 and 1998.
Date India China Africa Japan Western Europe and U.S.
1870 12.2 17.2 3.6 2.3 42.5
1913 7.6 8.9 2.7 2.6 52.6
1950 4.2 4.5 3.6 3.0 53.6
1973 3.1 4.6 3.3 7.7 47.7
1998 5.0 11.5 3.1 7.7 42.5
What might we learn from this table about
patterns of economic development in the world?
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In 1750, China and India provided 57 of world
manufacturing. In 1953, they manufactured only 4
of the worlds goods. What caused such a
dramatic change?
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In the 1960s, as the colonized people gained
independence, the world-wide split between the
North ( rich industrial nations) and the South
( poor third world nations) grew wider.

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How did Western leaders try to restore world
trade after World War II?

• In 1944, at the Bretton Woods Monetary Conference
  in New Hampshire, Western
• leaders
• Created the World Bank.
• Established the International
• Monetary Fund.
• Established stable currency exchange rates.
• Ushered in a new Global Age of economic
  cooperation.

However, these agreements did not include the
Communist bloc nations
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In 1971, however, the high cost of the Vietnam
War prompted President Richard Nixon to abolish
the fixed currency exchange rates that had been
established at Bretton Woods.

• Gold backing for currencies was eliminated.
• World currencies floated.

The Age of Free Market Capitalism began, but
still excluded the Soviet bloc nations
Underlying most arguments against the free
market is a lack of belief in freedom
itself.Economist Milton Friedman
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In theory, free world trade encourages greater
economic specialization, more productivity, and
greater wealth.
And each country can concentrate on what it does
best.

• Efficient use of world resources is possible.
• Tariffs are eliminated.
• Businesses can move where
• they make more profits.
• More jobs are created.
• People have more money
• to spend.

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In the 1980s the U.S. moved to expand free market
capitalism within the global system.

• Little government interference in the market
• Freedom of individual choice
• Borderless market economy
• Markets as masters over state policies
• People should be free to pursue economic
  self-interest
• Consuming goods a major value

What is free market capitalism?
However, most nations continued to pursue some
forms of economic nationalism
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In the 1980s China moved toward a free-market
system and joined the global economy.
Chinas Trade surplus balance with U.S. 666.2
billion in the 2004,
China now buys from 1-2 billion dollars of the
U.S. debt each day.
Chinas economy will probably equal that of US.
In twenty-five years.
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In 1989, the Berlin Wall came down and the Cold
War ended. Eastern European countries broke away
from Soviet control. The Soviet Union itself
broke into more than a dozen new states.
The Berlin Wall was built in August 1961
The Wall was destroyed on November 9, 1989
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In 1991, India abandoned its 44 year-old
socialist oriented economy and embraced a the
free market system and joined the global economy.
With a GDP of 800 billion dollars, India is now
the fourth largest world economy after the U.S.,
China and Japan.
Indias growth rate has averaged about 5.8 per
cent for the past fifteen years.

• Major exports include
• Clothing
• Automobiles
• Handicrafts

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In the 1990s, with the integration of many of the
states of the former Soviet Union and the entry
of China and India, Globalization now embraced
the majority of the worlds economies .
With the collapse
In the 1980s, the U.S., the major world power,
became the chief advocate of free market
capitalism for the global system.
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What is Globalization?

• Increasing global connectedness through rapid
  communication and transport.
• Rapid intensification of worldwide social
  relations.
• Swift and free flow of capital, people, and ideas
  across national borders.

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World population has been rapidly increasing.
Wow! More than 6 billion people now alive.
billions 7 6 5 4 3 2 1 1803 - 124 yrs
1927- 33 yrs 1960 - 14 yrs 1974 - 12 yrs 1986
13 yrs
The time it takes to add a billion people grows
shorter.
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Country Average Life Expectancy
Sweden 79.2
France 78
United States 71.1
Bangladesh 62.8
Botswana 40.1
Zimbabwe 39.2
Life expectancy is rising, but it varies world
wide.
Average life expectancy for the world is 70
years.
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Speed of travel has increased dramatically.
1981
1957
World wide communication is almost instantaneous
Look at this antique computer. It doesnt even
have a hard drive!

1977
1982
1962
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The computer has been changing billions of lives.
IT Engineer seeks househusband..
Will you be my E-pal?
Were catching up with the U.S. economy.
I raised my campaign funds via the internet.
Where are the books I ordered?
Im applying to college.
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But what does globalization have to do with me?
Cap from Bangladesh
Jeans from Malaysia
Shirt from Mexico
Video gamefrom Japan
Backpack from China
Sneakers from Indonesia
Soccer ball fromPakistan
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New technologies allow humans to control nature
like never before
.
Expanding technology makes possible a
cornucopia of new products for us

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More goods are being produced, bought, and sold
worldwide than ever before.
What shall I buy next?
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Globalization also spreads ideas and values.

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• Democratic ideas have spread to more countries
  than ever before.

India Korea Japan Taiwan Malaysia Qatar Mali Braz
il South Africa
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But globalization brings high human costs.
Although the worlds people are producing more
than 47 trillion dollars in wealth, these riches
are not distributed equally.
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The growing gap between the rich and the poor
continues to increase.

• 20 get most of the wealth.
• The U.S. owns 11 trillion dollars of this wealth.
  
• 2 billion of the worlds people live on less than
  2 a day.
• Peasants are forced to leave the land as money
  and wage economies spread.
• Workers without education and skills are often
  left behind.

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Ranking GDP/value added trillion
1 United States 9.9
2 Japan 4.7
    billion
40 Malaysia 89.7
41 Colombia 81.3
42 Philippines 74.7
43 Chile 70.5
44 Wal-Mart Stores 67.7
45 Pakistan 61.6
46 Peru 53.5
47 Algeria 53.3
48 Exxon 57.6
49 Czech Republic 50.8
50 New Zealand 50
51 Bangladesh 47.1
52 United Arab Emirates 46.5
53 General Motors 46.2
54 Hungary 45.6
55 Ford Motor 45.1
56 Mitsubishi 44.3
57 Mitsui 41.3
58 Nigeria 41.1
59 Citigroup 39.1
60 Itachu 38.4
Gross Domestic Product (GDP) of
Selected Countries and Corporations 2002 Corporat
ions in bold face
Some big multinational corporations have more
wealth than many nations.
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In poor countries child labor is widespread. Some
212 million children of ages 5-14 are working
instead of going to school.
These young girls work 12 hours a day, 6 days a
week, earning 2-3 per week.
Most child labor involves high energy work.
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Outsourcing is increasing.
In 2003, the U.S. lost 234,000 information
technology jobs. An estimated 14 million more
jobs may move overseas. But the U.S. loss is a
gain for India, China, Ireland, Korea and other
nations
Narayana Murthy (right) and his Infosys
Information Technology complex in Bangalore,
India.
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Manufacturing and capital flows to the areas of
the world where they can make the most profits.

• Strong labor unions
• High wages
• Environment protection laws and
• Unstable governments

• all tend to keep businesses and investment away.

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• The speed of globalization results in more
  pollution and global warming caused by
• over-cutting forests.
• burning fossil fuels.
• producing more industrial and consumer waste.

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Growing threats to the environment affect all
people
Global warming lead to major floods.
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Lots of people question globalization.
Globalization is forcing my child to work.

• .

Free trade is destroying us farmers.
Hollywood is ruining our children.
Development is destroying our rain forest.
We have 50 million people living in poverty.
Industrial countries are leaving us out of
Globalization.
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Some people believe that globalization is
cultural imperialism.
Can you interpret how this cartoon depicts the
idea of cultural imperialism?
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• Globalization involves paradoxes.
• Profitable industry but widening gap between rich
  and poor?
• Lots of cultural pluralism but people becoming
  homogenized?
• Increasing interdependence but small communities
  banding more tightly together?
• Huge wealth in industrialized nations but great
  poverty in other countries?

You mean its not good for everyone?
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People respond to globalization differently.

• Some wholeheartedly embrace it.
• Some seek to maintain their traditions in the
  face of perceived threats.
• Some fight for more economic fairness.
• Some turn to religion.
• Some violently oppose it.
• Some try to manage it for the greater human good.
  

A house in Figuig, an oasis in Morocco on the
edge of the Sahara Desert. This family reaches
out to the world through its satellite dish.
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• Terrorism has ushered in a new global threat.

• Modern military strategies and weapons are often
  ineffective against suicide attacks.
• Terrorists communicate and spread their
  ideologies using cell phones and the Internet.
• Terrorist groups may have cells in many nations.

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In 2002, the United States government adopted
policies of massive military intervention as part
of a war on terror. 2002 U.S. forces invaded
Afghanistan to topple the government of the
Taliban, which was cooperating with international
terrorists. 2003 U.S. forces invaded Iraq to
overthrow the government of Saddam Hussein. The
U.S. accused him of supporting terrorism.
Are we entering a new era of international
relations?
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In this new era will the U.S. act as democratic
leader, the supreme world power, as an empire?
Do these factors help us answer the question?

• owns about one fourth of the worlds wealth.
• working to create democratic institutions in
  Afghanistan, Iraq, and other countries.
• has military force equal to the next 20
  countries combined.
• striving to be a model of democracy for the
  world.
• maintains 725 military bases, valued at 118
  billion, with 254,000 military personnel in 153
  nations.

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Your decisions and actions will help shape the
future.
Will we cooperate to fight terrorism and work to
ensure that all people live in dignity? How these
issues turn out is really up to us.
One person can make a difference.
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Big Era Nine ends here, but its not over yet!