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Globalisation
 

Globalisation is Good.

The following text is a follow-up of a video which some careers students saw on Globalisation.  The video was courtesy of Channel 4.

The video follows success in Vietnam and that poverty still exists in the African country of Kenya to day basically because of oppressive politicians.

At the beginning it states that Taiwan got rich using technology and ideas from all over the world. Those on the side of globalisation argue that wealth and freedom is for all and that anti- globalisation maintain that only the great multi nationalists reap the rewards.

After watching the film you can make up your mind.

Is Nike the enemy of wealth and democracy?

The video starts with a conducted tour of the Nike factory situated in the old city of Saigon. The country was poor.  The people lived of the land and barely make a living.  Nike built “sweatshops” ---bright airy clean and attractive grounds.  They did not employ child labour.  All workers were over 18 and the average age was 24/25 years. Labour was cheap in this country compared with the UK. $54 a month (£100) but the average in Vietnam was $18.

The video stressed the good working conditions and the fact that more Vietnamese children were being educated than before these factories prospered. The workers were happy in their work. They had more money to improve their houses and the sport in the lunch hour created a healthy lifestyle.  Relatives were looking for employment and the factory welcomed outside visitors from college students businesses etc.

Productivity comes not only from machinery but also from the satisfaction of the workers.  Working conditions were very important as it stimulated the economy. Commerce grew up around the factory.  The roads were better and there were many small businesses because of the success of Nike. Free trade in Vietnam has been exposed to competition and it is the consumers who control the corporations.  In 15 years the economy of Vietnam has doubled while the poverty has halved.

Once Vietnam was a similar state to Kenya in eastern Africa. Kenya has closed its doors to globalisation.  The workers live of the land but were never given property rights. They were not permitted to build on the land as it belonged to the government.

Kenya could have been a prosperous agricultural country but the political state prevented growth here.  The video shows life in a shantytown near Nairobi A million people live with no running water, poor sanitation and housing that was sub standard.  Many of these people are entrepreneurs but with no land rights they could not start a business.  Traders had to have a licence so many worked on the black market. Capitalisation could not take place as everything depended on money. They were not lazy people. They had skills.  They worked on scrap metal with primitive tools and produced pots, pans and toys. No matter how successful they were doomed to remain in small businesses.  Lack of reform, marginalize and oppressive politicians have shattered the potential of Kenya.

One success story came from cheap mobile phones, which enabled communication to go ahead.   The second hand clothing industry had improved the living conditions of the people. There were high tariffs on many exports but not on cut flowers to European countries. Kenya has good farmers but needs to be able to compete with other countries. The EU tariffs and restrictions keep countries like Kenya out.

With globalisation and trading freely countries prosper but world poverty remains because many poor countries are not given the chance.

Staff
Resources
B/E Aerospace
S McConnell
Globalisation