globalization consumption and governance

8/14/2019 Globalization Consumption and Governance

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State of the World 2004

Linking Globalization,Consumption, and

GovernanceHilary French


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Linking Globalization,Consumption, and Governance

Overview:

1. The Spread of McWorld

2. Global Cooperation forSustainable Consumption

3. From Johannesburg to Cancun

and Beyond


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onrushing economic, technological, and

ecological forces demand integration and

uniformity and mesmerize peopleseverywhere with fast music, fast computers,

and fast food, one McWorld tied together by

communications, information, entertainment,

and commerce

The Spread of McWorld

- Benjamin Barber, 1995


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The consumer society of the west is rapidlyspreading to the rest of the world

Globalization over the 1990s was closely linkedwith a general economic boom that saw rapidgrowth in the movement of goods, services, andmoney across international borders

The growth of global trade and investment hascontributed to lower costs for many consumergoods



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Examples of Corporationswith a Global Presence

Coca-Cola - sells more than 300 drink brandsin over 200 countries; more than70% of the corporations incomeoriginates outside of the U.S.

(net revenues = $19.6 billion in2002)

McDonalds Corp.

- serves 46 million customers eachday; operates 30,000 restaurantsin 119 countries (total revenue =$15.4 billion in 2002)


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Examples of Corporationswith a Global Presence

Levi Strauss- sells clothing in more than 100countries; its trademark isregistered in 160 countries

(total sales = $4.1 billion in 2002)

Siemens- German company, represented in

190 countries; sells mobilephones, computers, medicalsupplies, lighting, andtransportation systems(net sales = $96.4 billion in 2002)


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World Export of Goods andServices, 1950-2002

Source: IMF

0

1

2

3

4

56

7

8

9

1950 1960 1970 1980 1990 2000 2010TrillionDollars(2002dollars)

Goods and Services

Goods


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Downside of GlobalConsumption Binge

Forests - value of world trade in forestproducts climbed fourfold between1961 and 2001, reaching $132billion

- meanwhile, the Earths overallforest cover has steadily declined

Fisheries - world value of fish exports nearlytripled between 1976 and 2001,

reaching $56 billion

- meanwhile, the health of worldsfisheries has deteriorated, with 75%

of worlds fish stocks fished at or

beyond their sustainable limits


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The ecological footprint accounting systemmeasures the amount of productive land aneconomy requires to produce the resources itneeds and to assimilate its wastes

Countries whose ecological footprints exceedtheir available ecological capacity often importgoods from countries enjoying surpluses, leading

to ecological trade deficits

Ecological Footprint


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Ecological Footprint per Personin Selected Nations, 1999

Hectares

United Arab Emirates

0 2 4 6 8 10 12

United States

Netherlands

Japan

China

Source: Redefining Progress

10.1

1.3

9.7

5.34.8

0.8

4.8

0.71.5

1.0

Available capacity

Ecological footprint


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Corporate strategies rely on visions ofrapidgrowth in the developing world, sparked byincreased consumerism in these nations

But if the entire world were to adopt theconsumption patterns of industrial nations,unbearable strain would be placed on thehealth of the Earths natural systems

Challenge in the developing world: to developstrategies for leapfrogging directly to a

sustainable economy



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Due to the global trade network, consumers

are often shielded from the profound effects of

their choices and consumption patterns on

people and the environment



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What happens to the growing mounds of

computers, mobile phones, televisions, and

other electronics that are discarded every day?

Example: Electronic Waste

In China, unprotected migrantworkers sift through the piles ofelectronic waste, burning plastics,cracking apart cathode ray tubes,

and pouring acid over circuit boardsto extract precious metals

This process releases carcinogenicsmoke in the air and severely

pollutes the water


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How are prices for bananas kept so low?

Example: Banana Industry

In Panama, bananas are grown inhuge, monoculture plantations thatare heavily dosed with pesticides

applied directly by unprotectedworkers or through aerial spraying

The chemicals pollute the watersupply, and have been linked withincreased cancer rates in localcommunities


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What are the benefits offair-trade coffee?

Example: Coffee

Fair trade guarantees coffee

growers a set price above worldmarket levels, to cover productioncosts and to assure a decent living,and a range of other social and

environmental benefitsMore stable markets allow farmersto grow shade-grown, organic coffeein areas once heavily dosed with

pesticides


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Global Cooperation forSustainable Consumption

International awareness of these problems

is growing, and commitments are being

made to transform unsustainable patterns of

consumption and production


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Highlights of the Earth Summitin Rio de Janeiro, 1992

Recognition of the disparity between theexcessive demands and unsustainable lifestyles ofthe rich and the inability of the poor to meet theirbasic needs

Action plan initiated to

- promote greater energy and resource efficiency

- minimize waste generation

- encourage environmentally sound purchasingdecisions

- shift toward pricing systems that incorporatehidden environmental costs

h d d f ll i h


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Several international organizations have beenactive in follow-up

- U.N. Commission on Sustainable Development

- U.N. Environment Programme (UNEP)

- Organization for Economic Cooperation and

Development (OECD)

In the decade following theEarth Summit

I h d d f ll i h


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Governments made progress in strengtheningseveral international treaties

- 2000 Cartagena Protocol on Biosafety to the

U.N. Convention on Biological Diversity

- 2000 Stockholm Convention on PersistentOrganic Pollutants

- 1997 Kyoto Protocol to the U.N.s FrameworkConvention on Climate Change


I h d d f ll i h


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Forest Stewardship Council (FSC)

- independent body established to set standardsfor sustainable forest production through acooperative process

- 39 million hectares of commercial forest in 58countries have been certified

Marine Stewardship Council (MSC)

- modeled on the FSC

- 170 certified seafood products are offered in 14countries


Gl b l C ti f


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However, the limited gains made since the

Earth Summit in 1992 have been largely

overwhelmed by the continued global growth

of the consumer society

Global Cooperation forSustainable Consumption


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Highlights of the 2002 World Summit onSustainable Development in Johannesburg

Some elements of the Plan of Implementation:

- involving governments from all countries,international organizations, the private sector,

and NGOs in bringing about the needed shifts- increasing investments in cleaner production and

eco-efficiency

- enhancing corporate environmental and social

responsibility- promoting the internalization of environmental

costs and environmentally sound procurementpolicies

F J h b t C


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From Johannesburg to Cancunand Beyond

Ministerial meeting of the World TradeOrganization (WTO) in Cancun, 2003

- Fundamental differences exist between

international trade rules and emergingenvironmental practices that can impedeefforts to promote more sustainable patterns ofconsumption and production

- Disputes over issues such as investment,government procurement, and agricultural tradesubsidies brought the talks to a halt

E l f Cl h B t


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Examples of Clashes BetweenTrade and Environmental Policies

Beef Hormones (European Union and U.S.)- The EU banned the import of beef

from the U.S. after growth-promotinghormones were found in the meat

- The U.S. imposed retaliatory traderestrictions against the EU

Tuna-Dolphin (U.S. and Mexico)

- The U.S. passed a law restrictingimports of tuna fish caught inways that harm dolphins

- The General Agreement on Tariffs andTrade panel concluded the U.S. could

not embargo Mexican tuna imports

E l f Cl h B t


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Examples of Clashes BetweenTrade and Environmental Policies

Genetically Modified Organisms (U.S. and EU)

- The EU banned the import of GMOs,viewing them as a health risk

- The U.S., Canada, and Argentinaasked the WTO to form a dispute

panel regarding the issue

Shrimp-Turtle (India and U.S.)- The U.S. banned imports of shrimp

harvested by methods harmful to seaturtles

- The WTO Appellate Body ruledagainst the U.S.

F J h b t C


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From Johannesburg to Cancunand Beyond

The way forward is complicated by the needto forge a consensus among a greatdiversity of interests from around the world

However, the terms of the debate are shiftingas a growing number of people support the

development of a global community basedon respect for people and nature


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About the Author

Hilary French is a Senior Researcherat the Worldwatch Institute and

Director of the InstitutesGlobalization and Governance Project


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More information onState of the World 2004

at www.worldwatch.org

globalization consumption and governance

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