Globalisation

 

Globalisation describes the way capital has integrated international trade, culture and technologies over the last 20 years. Geographic distance and cultural difference no longer pose an obstacle but rather has created new market opportunities for capital and its consumers. Since the 1970’s the growth of foreign direct investment (FDI) and the deregulations of the financial currency markets has further accelerated the globalisation process.

 

Combined with technological advancement in the form of electronic commerce and global communication this has had a radical effect on the production of goods and services. It is this movement of capital to the new and unregulated markets in developing countries that has created cheaper commodity prices to consumer’s delight. For example a new phenomena is the exporting of service jobs in the banking, insurance, telecommunications and transport industry to countries like India.

 

Globalisation on its own does not have a negative impact on the lives of people across the globe. Rather it is the decisions and choices made by national governments, multinationals and international financial institutions that seek to remove and reduce safeguards that seek to protect and secure fundamental principles of human rights and decency. It is these decisions that are causing the devastating impacts we associate with Globalisation!

 

By reorganising the state and allowing the international financial institutions unfettered power to push forward with their neo-liberal economic policies this has deepened the gaps between rich and poor. For example the International Monetary Fund’s Structural Adjustment Programmes and the World Bank and World Trade Organisation only lend money to nations if the member country supports privatisation of public services or reduces wages and lowers worker’s protections such as job security. The race to the bottom has created other social phenomena such as the ever larger numbers of the poor leaving their traditional homes to migrate to wealthier cities or countries in the hope of earning a better livelihood.

 

Trade unions play an important role in making sure that these International Financial Institutions and Multi-national corporations connect financial capital with social capital. Amicus continues to work with its Global Union Federations and peak union confederations such as the European Trade Union Confederation (ETUC) to strengthen workers voice globally. Amicus supports fair and transparent world trade, where International trade negotiations between governments, corporations and international financial institutions such as the WTO, World Bank and the IMF are more democratic and allow for civil society; particularly trade unions to participate in the process. The removal of trade barriers can give developing countries access to markets making the practice a positive initiative as long as this is done on the basis that social and human rights are not neglected, but in fact strengthened.

Examples of this ongoing work by Amicus and international trade unions are