GL O B A L S O CI A L P O L IC Y

in 1996,0.59 in Brazil tn 1'999and 0-60 in Nicaragua in 1998)- Within Asia, Maiaysia had a Gini of 0.'19 in 1'997, among the highest for Asia. lVh.r. capitaiisteconomies are tempered by the essentialPracticesof a welfare state' the outcome is a relatively iower Gini' In the past, most communist stateshad reladr-el;* ior,v Ginis, achieved via disallowing private ownership of properry, because i.r.o*. from properry fland and capital in the main) tends to be relatively more unequal than income from work' The levels of the Gini coefflcient for income and rvealth could thus be indicators of egalitarianism in a sociery. The Gini coefficient can be used to measure the degree of inequaliry in any social or economic variable, which in the natural or nornal course is not equally distributed among Persons or families' Thus, one could use it to measure the extent of inequaliry in such diverse attributes as household size and i'tinsumption erpendifure. See also: diference; earnings inequaliry; equalin; income; income :l:li-;ai:nl.m: ome inequaliw i-ri:rt' unon: i-nc

ifl Bitish So;ialPolvolume ot Dexlopnlents iry 2, 'Probabi-vthe thorniest question in public policv at the start of the 21st century is the relationship berween globalization and social pohry.' A seriesof global prohave reconfigured the boundaries of cesses social policy, chailenging how best to conceptualize,diagnoseand respond to policy problems. Various regional and international actors, both formal and informal, contribute to policy-making that increasingly requires attention be given to interests and allianceslying outside stateboundaries. While global changes are presented as variously economic, social, cuitural and political, the driving causeis seen as either econornic restrucfuring or, alternatively, the result of technological factors including telecommunications and modes of travel' Nerv economic conditions include greater interconnections of trade, finance, investment and employment- Capital and labour are viewed as footloose and mobile, rvhile production has,seenthe growth of multinational and transnational corporations' Increased interdependence is said to meld cultures and identities, threatening to homogenize diverse cultures- Global florvs of poliry ideasare also perceived as having become more prevalent, inciuding transfer of ideas, policiei and prograrrunes-Finaily, the political dimensions of globalization focus around what governmerit or governance in a global setting, and how political and democratic institutions are shaped to meet new realities. The post-war relationship of social policy and the nation-state was fairly straightforward- Sovereign states sought to raise the rvell-being of their populations, and while economies were not immune from international shocks and downtums, economic and social intervention oflered effective iruulation at the domestic level- Through a rnix of monetary and fiscal policy, and by holding assets in public ownership or through regulative activiry, state inten'ention secured particular polici' goal-s Across

Further reading
of InequalAtkinson- A. B- (1975) The Eccnomis iry, Gt'ord: Clarendon Press' Coui'ter, P. B (1989) tleosuing Inequality: A Methodological Handbook' Boulder CO: 'Wesrrriew Press. Cowell, E. A- (1977) Ivleasuing Inequality: Tech' New York: niqutes Jor the Social Sciences, Wilev.

RAO BHANOJI

GLOBAL SOCIAL POLICY The study of social policy in the Post-war period focused on the activities of nation,r"r., and in particular the developmenc of welfare state institutions- However' as Evans and CernY suggest in the 200i

GLOB A L S OC IA L P OLICY

'Western world a range of welfare the regimes was pursued in the post-war period residual,Keynesian)'Within (Scandinavian, Britain for example, the focus of social policy and citizenship entailed a commitment to fulI employment, stolFgo economiqs, nationalized servicesand particuiar welfare traditions based around the male breadwinner model and a distinction berween the deserving/undeserving Poor' From the 1960s, although the nation-state remained the 'container' of social policy analysisthere was also a burgeoning interest as in international and comparative anaiysis, rvell as how administrative traditions and models were exported to particular countries during a period of decolonization' Whereas comparative or intemational social policy maintained the nation-state as the tasic unit of analysis, the notion of global or transnational social policy concerns itself processes, problems, actors and with responsesthat go beyond nation-states and being neatly mapped onto them' ".roid

expenditure, and the introduction of primodels and approaches vate sector business within the public sector. IJnder the hyperglobalist perspective concerns are expressed that the demands of global capital present a stark future for welfare states,with reduced public expenditure and tighter eligibiliry for pensions and social protection. Sirnilarly, education and training are restructured to service the supply-side requirements of the economy. Thus an inverse convergence thesis foresees a 'race to the bottom' in welfare provision. The notion of social dumping suggestsemployment is lost in .where higher social standards are states reflected in higher average labour costs. The result will be downward pressure upon socialprovision and conditionsFor sceptics, the implications of global change - including the death of domesric policy agendas - are wildly exaggeiated' 'W'atson globalizaAccording to Hay and tion is a 'rhetorical fagade' and becomes tied to the logic of no alternatives; others deny there is any novelry in what is being experienced. For many sceptics, the orgaof interests nization and mobfization within the nation-state and taking new poliry choices remain viable routes to new

Gtobalization and collective action

Politics, Held el aL (Gtobal Transformations: Economicsand Culture, 7999) identify those writing about globalization as falling into three camPs: the hyperglobalists' the sceptics and the ransformatidnalists' Hyperglobalists suggestthat global economic andl serve to reduce or technological Processes the influence that nation-states previously exerted over domestic poliry. The requirements on goverruneht to secure torergn invesfment, maintain the confidence of international finance, and ensure a comPetitive economy are said to constrain their setting and achieving Poliry goals' For example, preventing outflows of 'hot money' results in social policy being realigned by a necessiry to decrease state spending and lower tax rates- Such global pressuresimpact on the shapeof the statelo, ,o*. the state is increasingly 'hollowed out' as a result of tax cuts, reduced public

poliry furures.
Under a transformationalist view, global shifts result in the state revising its role, retaining the possibility of it being efiicacious within what are new boundary conditions. At root, the dispute arnong the three camps concerns the iole of agenry and collective action and whether strucrural constraint conditions or determines action.

iP-s_uq? gtgb:il.pg,icy

One result of interconriectedness is that a set of global social problems are emerging' These include health issues such as the pandemic, as well as global AIDS/HIV outbreaks of infectious diseases such as little SARS- These Problems show
?L !:.

G LO B A L S O CI A L P O L IC Y

regard for national boundaries, and the interconnection of peoples through international travel allow infection rates to increaserapidly. Over 40 million people are infected with HIV, and it affects all dimensions of countries' weil-being in terrns of health, growth, education and employment. Some talk of AIDS as a 'tax' because it kills in the prime of working lives, leaves children orphaned, and results in severe teacher attrition- AIDS was the first health issue to be discussedby the United Nations Security Council, and a concern for both global justice and global securiry clearly entails a giobal response' Cross-cutting trends mitigate a concerted response to the pandemic; in Ghana and Zimbabwe for example, three quarters of all doctors ernigrate within a few years of completing medical school, resulting in severe shortages of qualified staff where they are needed. Political and social changes are also opening new fronts for the pandernic: a quarter of new infections are in Asia, while Eastern Europe is emerging as a major area of concern because of injecting drug use. Further global issues include ensuring sustainable future development; reducing and looking for renewable pollution resources; as well as food security in terms of geneticaily modified provision- Wars on d*gs and intemational crime (money laundering, flouting of intellectual properry rights and counterfeit goods, and peoplesmuggling), and concerns for border securiry also have diverse socio-political dimensions requiring coordination among narion-statesand the intervention of supranational bodies. The United Nations in 2001 identified almost 20 million refugees and displaced persons, the scale of which requires a concerted global response' Greater mobiliry of refugees and migrant labour continues to raise questions about the social rights and protection due to individuals within host nations and the nature of their citizenshiP546

Policy actors
Global developmentsencour^gea broader range of policy actors and institutions that include nation-statesand locai organizations, as well as supranational bodies and nervvorks.A number of supranationalinstitutions were established in the post-war period, but the breakdorvn of the social democratic settlement and changing geopolitics (particularly the oil crisis,the end of the Cold War and the beginnings of the global ''W'ar on Terrorism') have encouraged their reform. More recently, there have also been challengesto these bodies from disempowered comrnunities,. and goverrunentsof the Southern Hernisphere. The United Nations was establishedin the post-war reconstruction and seekssustainable social and economic development, recognizing that social problems transcend national boundaries. It has specialist agencies and programrnes for i t"ttg. of sociil policy concerns, including the United 'Nitio-fii Development Prograrrune for the developing countries, and specialist agenciesinclude UNICEF to dealwith children issues,IJNHCR to addressrefugees, and the International Labour Organization to promote socialjustice (ILO) which seeks and human and labour rights- The ILO formulates international labour standards, setting rninimum standardsof basic labour rights. It also develops international policies and progranunes, encouragesinternational technical cooperation, and provides training, education and research. 'W.orld Bank The |{IB) and the International Monetary Fund IMD were estabiished to provide stabfiry and to oversee the Bretton-Woods economic setdement of fixed exchange rates and national autarchy. The WB lends money to govemment and agenciesfor development and in 2403 provided $18-5 billion in over 100 countries. The IMF lends money to goverrunents in order to help stabilize cunenry and maintain order in international financial markets'

GLOB A L S OC IA L P OL I CY

replaced The World Trade Organization on Tarift! and the General Agreement at lowering tarift-s Trade in 1995 and aims view to increasing ,nd norr-rariftswith a internationaltrade' the WB and There are criticisms that economies of IMF meddle in the domestic America' Asia developing countries in Latin that Afri.i and promote liberalization "rrd in the long-term interests of country is not Dtit'et for srnrctlral "ttl: fopot.,ionragreelng have been tied to countnes "r.", measures' While to undertake a seriesof have relaxed' sorne argue these conditions advocate wat:r the WB has continued to agreements' privatization alongside loan againstthe levels Major criticisms are railed by developing of debt that are incurred damageparticountries, the environmental wreak' the secrecy cular adjustment policies bodinvolvei in the work of international issues the failure to tackle gender i.r, "rra have within policy development' -There of WB projects' ;;." .oo^.if"ro.t, criticisms of dams that including the develoPment and result in*displacement of communities' basin in Bra. ,o"d project in the Amazon a large rropical zil that destroyed much of orgarain forest- In response'supranadonal develop poliry nizations have sought to sensitive' that is more environmentally and also proinvolves gleater consultation outcomes vides better emphasison project throu gh ri gorous evaluation' do not Some international organizations the OECD disPense funds; for examPle aim offostering evolved after L945 with the service and better governance in public is- involved in corPor:Ite activiry, and As another researchand statisticalactivities' consists of the example, the G7 Summit to talk major economic players that.meet political and on econornit polity i"*t'and securitY matters' Regional trade and cooperatio" !:di:t North include the European lJnion FtJ)' Agreement Trade Free American of South (NAFTA), and the Association

The EurEast Asian Nations (ASEAN)' trade zone opean union began as a free and aimed .r.rd., the 1957 Treaty of Rome market to ensure post-war Peace and free development- Over time the organrzatlon and exPanded and moved has "nl"rg.d a more united political body' towards being Some pans of national decision-making level have been ceded to the supranational been and within recent years the EU has and seen as having broader social purpose fostering greater political integration' 1989 The European Social Charter of and was outlined rwelve Basic Rights economic underpinned by a belief that by social integration had to be balanced considerations. From this development and there sprang a raft of health and safery rights legislation' The 1993 .*ploi*.nt inteMaastricht Treary signposted.future and monegration and plans for economic iary uniort including the 1999 introduction Maastricht of a shared 'Eurol currency' a way of d.&p contained a Social Chapter as social within EU the expanding the role of developed the principle of n.U.t ,ni "1ro would only subsidiariry - that the EU which were undertake those interventions it to do so' more efiicient and effective for outlines a The EU Social Policy Agenda facing the nurnber of economic difiiculties of region and higtrlights the l.nflrtance ,oii"l protection and anti-discrimination' 'While the agenda stoPs short of harmoruzto ing social policies, it has a commitment objec*Irk to*",ds corrurron European social of tives and increased coordination economic' policies- The road to greater continues to soci"l and political integration states be marked by the inabiliry of member Eurand voters to agree on an appropriate redistribuoPean vision- Policies for social remain tion, social regulation and socialrights Despite very much under constructionof the EU soch roadblocks the membenhip of candicontinues to expand' A number Eurdate countries in Central and Eastern and ope have made significant economic

547

G LO B A L S OC IAL P O L IC Y

political reforms to facilitate their accessron to the EU. Tlus has led to various financial and administrative reforms and also requirements to improve records on human rights.

Global policy iustice

There is grave danger that the story of 'global social policy' is one told solely from the perspective of the North - leaving the Southern Hemisphere marginalized and -While much debatefor'Western voiceless. countries concerns how best to marry growth and socialcohesion the major concern in Afica, India and Latin America is poverty of resourcesand'opportuniry at a more basic level. Statisticsare truly shocking in their depiction of global inequdiry and social injustice. Most pressingis the extent of global poverry and hunger, with 800 rnillion people chronically hungry, contributing to 33,000 children dying every day in developing countries- Global annual income is over $31 trillion a year, but 2.8 billion people - more than half the people in developing countries - live on less than $700 a year. Of these, 1.2 billion eam less than $1 a day. Debate is intensi$ing about the problems being wrought by globalization, leading to callsfor better accountabiliryof companies, financiers and supranationalorganizationsAccording to a2004 report by the ILO: We judge that the problems we have as identified are not due to globalization
such but to deficienciesin its govemance" Global markets have grown rapidly without the pardlel development of economic and social insdrutions necessaryfor their smooth and equitablefunctioningTheir recommendations include reducing

There has also been the emergence of international non-governmental organizations (..g. Oxfam and Greenpeace) which have added a further input to the poliry process. Porverful global social movements have arisen,evidenced by the 1999 'Battle of Seattle'where 50,000 protesters gathered in Seattle to protest at a 'WTO. These social movesummit of the ments utilize computers and information technoiogy to mobilize grassrootsactivists and lobby for change. There are major conflicts berween many NGOs and the 'unholy trinity' of the 'WB, IMF and

wTo.
exchanges are increasingly evident, including think tankb that share intellectual resources, facilitating Global ne*vorks and the global rransfer of ideas and policies. Some suggest the rise of transnational corporate and political elites constituted by the interests of capital and international public servants are an emerging driver within the elobal policy settins.

Gloia[zriiorr"'Hifiireasing the level of

social exclusion befi,veennation-states and within nation-states. It wouid seem the more things change, the more they stay the sarne. Poverq', exclusion, rights, freedom, democracy and justice remain the staplesof social policy, although under global imperatives they attain a new cornplexiry and a new urgency. Similarly, divisions of class, reg;ion, disability, gender, ethniciry and age remain central to sociai poliry students in this global rniiieu. The term'social exclusion' has been adopted in many developing countries as a way to counter the undesirable eft-ects of globalizaEionRather than concede an inherent trajectory of globalizetion, a number of broader visions are being advocated. For example, the tIN Millennium Declaration: identified eight goals to tackle povert|, instabilicy, HIV/AIDS, gender inequality and violence. Activism the world over is seeking to mobfize broader public support for visions such as the Millennium Development

of financial and econornic considerations ds-d-ds social ones, as well as addressing the 'democratic deficit' the predorninance and 'governance gap'. They envisage a key role for nafion-states.

548

GLOB A LIZA TIO N

a more Goals and to continue to work for just world-Woods system; See also: AIDS; Bretton comparative analysis; environmentalism; multinational and transnational go.r.-"n.e; organizaIo.por"tions; non-governmental Cooptions; Organization for Economic social eration and Development; refugees; problems; structural adjustment

Globalization in a general sense has been going on from the time PeoPle have become aware that they share a common asset - the earth and all the bounry it has in Globalization provided. generously terrns of economic integration -World trade altogether new. border investments expanded seventeenth, eighteenth and too is not and crossduring the

Further reading

P' Deacon, 8., with Hulse, M' and Srubbs' Orga' Policy:Intemational (1W'11 Clobat Social London: Welfure' of and the Future nisations because of the restrictions on- ffade and SageoJ Making Sense factor movements during the rwo world' E.orrJmist (2001) Clobalisation: Wortd, London: Profile Books/ an Integrating wars and the intervening Great Depression' EconomistSince the end of the Second'World-War, CreatIntemational Labour Organization (2004) however, there has been a steady moveon ing Opportunities for AII: Wyrl-d Commission ment towards global econornic integration' Dimensionof Clobalization'Geneva: tln Sotiot The movement has been facilitated by International Labour Organization' (1999) McDonald, F. and Deardon, S' (ed$ technological develoPments in sea and air Haredn' 3rd Integration, Economic European telecommurucarlons' ,,rtilui,*gl"SnsPortation and "*il"aittg lo*, Addiron'WesleY Longman' to falling costs and growing reach' Clobal Midgley, J. $gg7) SocialWelfate in a While technology has been a facilitator, the Thousand OaksCA: Sage' Conrcxt, World spread of individual freedom and liberal Peet, R. (2003) (Jnholy Tinity: The IIvIF' Bank and WTO, London: Zed Books' policies across countries have NEILLUNT

nineteenth centuries, aided by the widening and deepening of colonization. At the start of the century, the world was nlost twentieth integrated, with relatively few restrictions on movement of goods, capital and labour' That integration came to an abrupt halt

GLOBALIZATION This entry refers to the re-emergence of the globalizationafter the Second'World'War' its L...ta increasein the paceof globalization' and manifesations, expected benefia from it the challenges it poses' The International Monetary Fund definesglobalization as'the of growing economic interdependence Iorrotri., worldrvide through the increasing volume and variety of cross-border transactions in goods and services and of interthe national .tpi,A flows, and also through of more rapii and widespread diffirsion Outlook''Mzy technology' (World Economic 'the 7gg7). Sirnply Put, globalization is for international integration of markets goods, services and capital' Sodrik 1997)-

econornic played a key role in delivering the benefits of technology and bringing the world economy together- Of the several facton and that should be counted asmajor causes components of the post-war Process of globalization, the following are of particular ,rot.t gr"drral reductions in tariffi and other barriers to trade; an increasing desire to seek foreign capital inflow and policies to attract such flows; and the growth of travel and tourism. The post-war process of globalization has b..o rr.lped and speededuP as a result of the insdltional framework provided by several large multinational corporations and some of ttre key international agencies-Multinational corporations are bringing together the capital of one nation,labour of another' a technology of a third and the markets of fourth. The General Agreement on Tariffi

549

G LO B A LI Z A T I ON

and Trade and its successorthe World Trade Organization are working to make internationaltradein goods and servicesas as possible' The World Bank hassle-free Group, by providing development loans and credits to low- and middle-income countries, is rrying to promote the growth of a global production of goods and services.The International Monetary Fund is trying to ensureasmuch stabiliryas possible in the international financial systemThe process of globalization has received a positive boost by the successdemonstratedby the EastAsian Miracle, a success that has induced many other econornies to aim for economic integration with the rest of the world- Similarly, in addition to the facilitating role of technological and other developrnentsnoted earlier, in the quickening tf .ft. pace of globalization in the 1980s. and 1990s, due credit must be accorded to the fall of the Berlin Wall and (Jnion' the disintegration of the Soviet . Increasingly, globalization is being j*Bq*+rki - -"*iicognized as more than just econoruc integration. It has other interrelated comporra.trr,such asthe increasing concern for tr*r.t rights, the expanding role and reach of international NGOs, the rise in the ofand concern for globally shared awareness such as AIDS, and internationally diseases sharedproblems such as global warrning' Globalization is bringing the peoples of dift'erent countries together in more ways than one- Television is bringing them together, as they watch, in the comfort of their homes, live telecasts of news and events as theY unfold' BBC and CNN bring news from all cornen of the world to the living rooms of the millions who can afford cable TV. Live telecastsare routineiy beamed to the four comen of the globe: Olympic and Asiangarrres'Oscar and MTV ,*Ld., and performances by the likes of and Ricky Jennifer Lopez,Michael Jackson Martin. More people than ever before are '' travelling far and wide for business and pleasure550

An important implication of global econornic integration is the drive for competiby companiesand countries' tive advantage Liberaiization of imports of goods and services, encouraging the inflow of foreign direct investrnent, export promotion and were some privatization of stateenterprises tf ,h" ,r.pt taken to Promote national competitive advantage. In general, it is a movement towards a greater role for the role for the state' free marketsand lesser The distinguished economist and Nobel laureate, Joseph Stiglitz, while supporting privatization and strong competition policies. rvams that markets do not work as perfectly as one would like. A key assumption of perfectly competitive markets is perGct information at the disposalof both buyers and sellers-Information asymrnetries abound in all markets- For instance, there are differences in information available befween the employer and employeein the labour market, and between lender and borrower in the market for funds' In view of these asymmetries, the state has a complementary role to Ptay alongside the Larkets - especially in the alleviation of probiems such as unemployment, inequald environmental pollution' It must be iry "t said in this context that one is not quite clear what precisely must be the areas of state operation and how much such operations can eft-ectively produce the best market-state partnership - a partnership that will ensure the best outcomes for the citizens of the world economy. The two most contentious issues pertaining to globalization at the dawn of the fwenty-first century are: (1) whether it can lift the vast majority of the inhabitants of Asia, Africa and Latin America out of absolute poverrfi and (2) whether it can contribute to a reduction of intemational and intra-national income inequality' A recent'W'orld Bank study f$Iorld Bank 2002), takes the view that globalization has helped to reduce poverry in a large nurnber of developing countries, while it must be

GLOB A LIZA TION

better to help the nationalsof the harnessed shows rvorld's poorest countries'The study that rwenry-four developing countries and (including the most populous' China their integraIndia), which have increased rwo tion into the world economy over have decades ending in the late 1990s' growth' achieved higher ratesof economic longer life expectancy and better schooling' alleviaThese factors in rurn heiped in the the tion of absolute poverry by improving of abiiiry of the people to take advantage and opportunities created by globalization rapid econornic growth' of Th.r. is nothing within the forces in globalization'to ensurehelp for the poor every econorny- In most low-income 'created'in countrieswhere jobs have been via the last half of the wentieth century enterthe unabated expansion of public private prise, government and Protected lectors, the projected impact of globalizaof tion is seen in terms of restructuring public enterprises, reform of govemment downsizing the protected private "nd medsector, measures whose short-and of ium-term effect is perceived to be loss jobs. So it is quite liktly that globalizatt'on in will increaseunemployment and poverqt a the low-income economies, at least for while. by The World Bank study calls for action to both high-and low-income countries take advantage of the benefits of globalization. The rich nations should: (a) bring down their trade barrien (fot instance agricultural their reduce significantly a year); subsidies- running at $350 billion development assistance @) increase official (now standing at a minuscule 0'22 Per cent of donor countries' GDP); (c) additionally counsuPPort debt relief for the very poor tries imptementing reforms, to minimize the resource crunch during the transition the periods; and (d) provide assistanceto gases poot countries in tackling greenhouse and global warming within the internadonal cooPerative framework'

Developing countries on their part must: (a) put in place a good econornic governsystem (that cuts cormPtion and ,n.. achieves better bureaucratic efficiency' regulation, contract enforcement, and protection of properry rights) to encourage investment and ensure full employment; (b) improve delivery of education and health and (c) provide social protection ,.*i."r; to help worken adjust to the challengesof a more open economy'While oPen economic environment and rapid economic growth could help reduce absolute poverfy, a relatively more difficult problem stemming from global economic integration is the increasing inequalities in (and wealth) both within and i.rcort. acrossnation-states.In an invited contribution for the Economist (21' April 2001)' Robert Wade of the London School of Economics provides empirical evidence on the global inequality in income' Over thb period 1988-93, the Gini coefficient for the income distribution of the world rose from 0.63 to 0-67. The coefficientsdre based on splicing together the income distributions of a large number of counfries' rich and Poor- Given the enornous difficulties in obtaining reliable income distribution data even in some of the rich the countries, one must not read much into increase in the Gini over the rniniscule time the span of five years. Of note, instead' is *ry ,i". of the Gini, falling berween 0'6 and 0.7, more than halfway along its range of 0-1. Income inequaliry within countries and internationally needs public attention' discussion and poliry focus, since frusrradons ferarising from inequality could provide a dl. grorl.rd for crime, violence and terrorincome Addressing intraglobal ism. 'War inequality may have to be part of the arriculated at the intemadonal on t.rror' level and subscribedto by many countries on in the aftermath of the terrorist attack 'World Trade Towers of New York in the = September2A01. 551

G LO B A LI Z A T I ON

What is the right policy to cornbat the scourge of income inequality within the world economy? Free trade in goods and free flow of capitalrnay not be able to make a dent on intraglobal income inequality. It would probably require the third freedom fieedom for people to move to where they have a productive occupation on offer. For instance, it could mean freedom for US, European and Japanesefamilies and enterprises to hire workers from the poor regions of the world, or the hiring of the r,vorld's marginal farmen by large landowners in the rich countries. Much has been achieved in terrns of the free movement of the higtrly qualified and talentgd persons from the poor countries to the rich - be it the acadernicsmoving to Australia and New ZeaJand or doctors and soffware professionalsmoving to the US. What has not been achievedin the same manner is the mobiliry of unskilled and semi-skilied labour. Addressing the issue requires international undentanding and cooperation on the rules, regulations,safeguards and related aspects to foster relatively free movement of workers across countries. The General Agreement on Trade in Services(GATS) recognizes four rnodes of servicestrade: cross-border trade (transportable as in computer diskettescontaining software), consumption abroad (asin tourism), commercial presence (aswith branchesofbanks and insurance companies)and movement of narural persoru (as when a person from one country movesto another country to provide a service)- Global services rrade is very heavily concentrated in the first three types and service provision via movement of narural persons is rela'W.hat tively insignificant, is more, in the -WTO negotiations carried out so far, there is no significant movement towards liberalizaion in regard to movement of natural PersonsThe Economist o{ 2 November 2002 editorially corrrnents that the potential 552

economic benefits to the world of liberalizing migration dwarf those of removing trade barriers. In the words of the esteemed magazine,imrnigrant workers bring a supply ofjust-in-time skills - thoseof docrors, nurses, farm helpers and nannies. The obstaclesconfronting freer movement are often created by a lack of politicai will and shortsightedpolitical thinking. Since media has an important role in shaping policies, the fact that the Economist hasaddressed the issue of imrnigration is commendable, and perhaps there will be some action to ease the movement of natural personsand contribute to an evenrual reducfion in intraglobal income inequaliry, hpwever.ryodest the contribution may be. The impact of globalizattonisnot limited to the econornic realm. There are politicai implications within individual counrries and the world at large- Within individual countries, the pursuit of free market and open econornic policies could mean strong state action justified by the need to ensure market discipline. The fear is that states may forget about such vital concerns as human rights violations and environmental pollution in the punuit of global competitiveness and related goals. In this context, hopes of average citizens are pinned on the role of non-govemmental organizations, be it for safeguarding human rights or press freedom or environment. Increasingly NGOs are also collaborating and cooperaring in the international arena. The power they can wield was, for instance, most graphicaliy illustrated at the 1999 meeting of the World Trade Organizaaon in Seartle, when some NGOs combined forces ro launch what has come to be known as the anti-globali zatron movement, which eft-ectively stalled the progressof the meeting. Internationally, the fallout of the ending of the political divide, mosr. notably berween the US and U-SSR, is increasirgly seen as the emergence of a world system dominated'by the United States,the only remaining supe{power. The fear is that US

GLOB A LIZA TION

all because may dictate policies to one and only practical oPtion for of tnit. ffr. be to the world at large aPPears to superaccept the mrght of the single rules the po"*, within the framervork of global ,nd regulations of strengthened Nations institutions - notably the United organizations and aft^rliated known columwell a Tina Rosenberg' Times of nist, in an article in the New York point: 18 August 2A02,makes an important 'Globalization is meant to signify integrain its tion and uniry - yel it has proved' the coldway, to be no lesspolarizing than are *"i di.irions it has supplanted'' There will help those who argue that globalization for the augment employment and income via libpo"o, ir, the iow-income countries ^errl trrde and investment regimes' On the are the other side of the divide, there opponents who point to MNCs exploiting f"m"le and child workers in the sweatshops of Asia and Africa- Some of the protesting sute voices also call for a return to more and intervention' state-owned enterprises all industrialization import-substitution - nowsithstanding the fact that o.re, "g"in those very instruments of development and have caused inefiiciency, corruption stagnationin manY nations' will it 5o, *iil globalization continue or as has instead be revened and perhapsend time of happened in the past, notabty "-"1t of the^ Great Depression? Harold James Princeton Universiry, who is an authority out that on the Great Depression, points as globalization could be reversedor slowed At in-the earlier experience of the 1930s' and that time, protection restricted rade controls cross-border capital flows' while moveon immigration blocked the free brought ment of people; this efi-ectively about the retreat from globalization' could be Some of the current trends too of gloextrapolated to mean that a revenal In balization is in the realm of the possible' and serthe liberalization of trade in goods is not going vices. for instance, the Process

as smootbly as exPected' The WTO rninisterialmeeting held in November 2O01'at Doha held the promise that further liberalization would helP the low-income economies relatively more significantly' A comerstone of that prornise is the belief will soon that Europe and the United States end the billions of dollars of subsidies to their farmers, which is presently blocking the export of agricultural goods from the econornies' Subsequent low-income actionsby the US and Europe seem to go counter to the spirit of the Doha pians' In May 2OOZ the US Passed a farm bill to provide its farmers with a $180 billion subsidy over a ten-year period' Europeans are ,ro, t...rrarily lagging behind in continued support for their farrning comrnuniry' France and Germany, for instance, agreed to suPport Europe's corunon agricultural policy for a decadefrom 2003' "WTO Processes Problems with the free towards seeking a genuine movement and fair trade are not lirnited to the subby sidies granted to the agricultural sector is the rich countries. The very'WTO spirit somewhat undermined by the increasing importance of regional rrading blocs as well Lilrter"l trade agreements'In addition to "s the evolution of a single European market' there are a number of trade agreementsthat were put in place in the 1980sand 1990s' There are others in the ofiing: Free Trade Area of the Americas,free trade agreements East befween the Association of South Asian Nations (ASEAI$ and China' ^ and bilateral agreement berween Singapore the United States,and so on' The trading blocs could easily become stumbling blocks in the waY of global integration' is Giobal economic integration presendy limited to a relatively high degree of liberalization of trade and capital flows' Lansocial traditions, cultures, guages, religions, historical experiences' ,*.*r.r, so seasons, resources' tastes, etc'' differ much across nations that it is just not possible yet -to think of the beautiful utopia

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G O V E RNA NC E

called the one world. Any of the said differences across nations, as well asthe Potent force of nationalism, could easily override all the perceived benefits of global economic integration, institutions gains of globalization. intemational ensure fairness in sharing the unless

See also: East Asian Miracle; economics; Gini coefiicient; immigration; income distribution; International Monetary Fund; life expectancy; multinational and transnational corporations; non-governmental orgarizations; poverfy, absolute and relative; technology; World Bank; World Trade Organization

Further reading
ks' James,H. (2001) TheEnd oJ Globalization: Carnbridge Depression, sonsfrom the Creat MA: Flarvard Universiry Press. Lechner, F. J. and Boli, J. (2000) TheClobalization Reader,Oxford: BlackwellRodrik, D. (1997) Has GlobalizationCone Too Far? Washington DC: Institute for International Economics. and ItsDiscontents, Stigiitz,J. QO02) Globalization New York: Norton. 'World Bank (2002) Globalization, Growth and Poverty: Building an Inclusive World Economy, Washington DC:'World Bank. BHANOJIRAO

GOVERNANCE The term governance derives form the

Latin word gubernare, which means 'to direct, rule, guide'. Originally it meant 'to steer or pilot a ship, direct' from the Greek kybernan.A related Greek word, kybernetes, means 'pilot, govemor, or helmsman'- fn fourteenth-century France, governance was gradually replaced by the concePtsof government and governor. In the 1990s,however, the concept of governance gained a in a variery of conremarkable renaissance texts and with a multitude of meanings. level, govemance is At the most abstract a set of control mechanisms through which 554

authority is achieved and goals punued. Govemance is the exercise of power in various institutional contexts with the purpose of directing, controlling and regulating social behaviour. Governance through government is just one of many ways through which authoriry can be enacted. Governance 'without government takes place at the level of the firm, the family and the profession,as well asmany other social communities at the local, national and international levels of analysis. The new interest in governance can be explained by a reorientation of the acadernic and political debateabout the role of the statein sociery. The increasing number of functions that the welfare state is expected to underrake, the consequentproblems of internal and extemal coordination, globalization and the appearanceof a multitude of international governrnental and non-governmental organizations, and the spread of a neo-liberal ideology, are trends that ail havedirected the focus towardsstate failures and the erosion of traditional political authority. The question has been raised as to which new and supplementing forms, systemsand spheresof authoriry are presendy at work in the authoritative regulation of social behaviour. The terrn 'government', referring to the formal institutions of the state, their monopoly of legitimate coercive power, their abil-iry to rnake decisions,their capaciry to enforce these decisions,and their successin maintaining public order and facilitating collective action, has been supplementedby the concept of govemance as a set of new rnethods by which society is governed. A result of this change in focus is that the classical analytical and functional boundaries between 'nationd' and 'international', between jprivate' and 'public', and between 'politics' and 'administration' have been transcended. Among the many meanings attached to the concept of governance today, only four shall be mentioned. Fint, the concept of

GOV E R N MENT

include multi-level governance structures was originaliy associated good gnvernance such as the European union, coalitions of *irh ,h. World Bank. In the late 1980s it international non-governmental organizastartedto emphasizethat a well functioning tions and exPert communities' market economy in the Third World both gouernance Fourth, the concept of network depended on creating the conditions for describes the social relationship berween efiicient, democratic, stable, transparentand actors within an otganizational field' Selfmoral political instirutions, and a strong' goveming networks are said to vary with entrepreneurial and flexible civil sociery' i.g"rd to their intemal cohesivenessand The focus is on govemance as a set of their adaptabiliry to external pressuresfor conditions that needsto be met in order to change. Distinct policy-communities are createa performing liberal market economy characterized by the fact that the mutual that is conducive to societal development' of the resource dependenry of the involved actors The increasinginterconnectedness is large, the interaction frequenry is high, the world has given rise to rwo versionsof the shared,and senseof purpose is consensually governance concept. Thus, the second actols involved is relatively concePt of governance refers to corporate . the number of a restricted. These factors together account gorrrn)nrr, which has become central as for the relative inflexibility as well as the result of the rising dependenry structureson extemal unaccountabiliry these newvorks' the markets for capital,servicesand goods' A1l the previously mentioned concepts No single enterprise exists in a societal have given rise to normative and empirical vacuum and all enterprises have become " iiscussions about governabiliry, democratic increasingly dependent"on their external accountabiliry and the future of governance and intemal rePutation- Corporate govthrough governmenternance expressesthe idea that in order to compete effectively, individual enterSee also: civil society; European \Jnion; values of set a highlight p.is. m,tst ideally farnily, the; globalization; government; continuous democracy, employer t"red on non-governmental organizations; Power; dialogue,complete rransparenryand a sense -W.orld Bank as of ,o.i"l responsibility to workers as well the outer world- It alsocontains the idea that a traditional strucfures of government have Covernance' responsibiliry to create the right conditions Newman, J. (.d-) (2005) Remaking unconBristol:Poliry Pressfor the flexible, although not strained,development of entrePreneurship' MARCUSSEN MARTIN The interest in the third concept' global derives direcdy from pergouernance,'also ceived Processesof globalization' It does GOVERNMENT not imP^lythat distinct global governmental It is not that easy to define what governto structures are being created with a view ment is and what it entails' Samuel Finer' deal with global problems such as corruPfor instance, attributes at least four dift-erent tion, environmental pollution, financial meaningsto the term'government'- First of crisesor terrorism- Rather, global governall government denotesexercising a measure ance points to a variety of transnational of control over others-Second, government and private, formal and informal public ^rph.t.s is a condition of ordered rule' Third, it refers of authority in which goals are to a body ofpeople charged with the dury of of U.lrrg formulated and pursued' Examples governing. Fourth, government is the authorities that undertake such transnarnethod of ruling a particular sociery' can donal hard as well as soft regulation

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.-* "'"-

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