Some effects of globalization and transition to a sustainable development

These new aspects (and others) led to a new social condition leading to a complex of effects: the fall as a (process) of Taylorist management; the crisis of "waste development" and the required transition to sustainable development; creating of a new structure of power and shift from internationalization of economies to the globalization of the world; the crisis of industrial societies and transition to knowledge driven societies; the percentage of proliferation of SMEs; the new role of state, etc.

A scheme developed by the EU (Scheme 1) expresses these trends, In the EU vision, the globalization, on the one hand, is not a unique trend, unavoidable, "objective" imposed to people, but a result of human action (of states, economic groups political, etc.). Second, this trend is complementary to an opposite one, localization.

Scheme 1 The two directions of development of the planetary archipelago

Globalization Universe

Economy, ecology, media, tourism,, teleservices Fragmentarization

autonomy, personality, location, "roots" Individual

Thirdly, the two trends relate directly to issues of sustainable development and other trends in global.

Social development, we have seen, is the result of a kind of human action, but the latter does not automatically generate the development itself (i.e. a beneficial change). Globalization can be correlated with the opposite of sustainable development ("waste development" - Denis Gabor) and, currently, the things happen much this way.

In 1973, the famous economist Schumacher showed that by "wasting our fossil resources do appear a threat to civilization, but wasting the capital that is the wildlife around us creates a threat to life itself (...). Sustainable economy involves a profound reorientation of science and technology that must be open even to generate wisdom and wisdom in its own structure (...). Scientific and technological solutions that poison or degrade the environment and human social structure are of no use independent of their bright and great design of their superficial attraction."[1]

Emphasizing the problems related to errors of the development in waste brought to the forefront the role of globalization. "In 1990, globalization was only at emerging stage as a political issue. Today it is recognized as a key shift in contemporary economic systems and society."[2]

So far, however, globalization is carried out in a political unordered mode. "Globalization (...) requires an industrial policy can respond to unforeseen developments."[3] Sustainable development is itself a global nature, involving the viability of all "dimensions" of social components. Macroeconomics is such that it becomes the main factor in the sustainability of processes at the level of microeconomics. We are facing a new political economy issues, namely the design of macroeconomic policies state as thesis of freedom and success of actors' action on microeconomics. "The EU needs to develop and strengthen sustainable production policy to fulfill the commitments of the Johannesburg meeting on ways of production and consumption both sustainable."[4]

A number of experts and politicians have emphasized the following fact: the development of the national plan of capitalist economy was, within certain limits, coordinated by resulting democratic states from revolutions that took place (up to year 1848). Globalization lacks an international body to conduct the democratic process. As things are happening now, globalization creates new inequalities, conflicts and dependency relationships. Ensuring the sustainable development facing problems due to planetary relations between the countries should work. Requirements of the United Nations Conference on Environment and Development in Rio de Janeiro (1992) are received differently by some stronger and more developed countries.

It manifests itself in increasing measure, a disconnect between how national economies are developing in an organized manner under the direct regulation of state, on the one hand, and disorganized process of economic development, globally, on the other. The global competition is lacking its regulatory institutions and tools as appropriate in domestic competition. The industrial policies hold a central place in this respect, taking into account their share in causing aggregation of sustainable development issues. "The industrial policy can therefore be defined as the application of policy instruments in the company and in the industry."[5]

Globalization creates winners and losers. "Those who are threatened by global competition feel they have much to lose and little to gain in an approach that seeks to increase the wealth of the world, while those who benefit most from the blurring of national borders feel they have lost less than benefit from state intervention to spread these benefits."[6]

Internally, macro economically advanced countries and a consolidated democracy have established regulations to ensure good government intervention in broadcasting societal social costs and benefits.

Globally, there is no such guidance. The national macroeconomics is subject to forces that cannot contain it. The domestic division of labor does not correlate with the globe plan. "Left to assess how people want the world division of labor will not only create huge disparities of wealth within nations, but could also reduce overall winners' desire to do something to stop this trend to inequality - be in their interest or outside the country."[7] This trend, however, can be reversed and replaced with another benefit of institutional cooperation.

We recall that, in its history, capitalism has managed to end "the primitive accumulation of capital" by government's intervention that creates, gradually, political democracy and economic instruments by designing a system of regulations to "steer" the interests of the individual processes and society. Globalization takes place, yet without an adequate regulatory system (as in the unification of domestic markets). It is therefore necessary "to operate with more democratic and civilized savage globalization, just as "savage capitalism" of the nineteenth century was canonized due to conflicts and new balances of power that have driven democratic rules."[8]

Advancing globalization generates contradictory trends. On one hand "nations become parts of a global economy,"[9] on the other hand, processes of relocation make the connection between work and place and its planed effect is disengaged. Work "decontextualized" the geographic area in which it ceases to have economic importance. In global networks, those who produce value can work for companies in other countries. Geographic place of work may not provide anything to that economy. National economies are changing. The macroeconomic development changes more, their effects, "as the link between corporate profitability and standard of living of a nation increasingly attenuates."[10]

Macroeconomics of economics in the global network is characterized by changing the fate of different interests and social and occupational categories. "Something similar happened in the United States. The American conceptual analysts* began to separate from the rest of the nation. Secession has taken many forms, but it starts from the same new economic reality. This category of people does not depend, as before, on economic achievements of other Americans. Conceptual analysts are now connected to global networks business, which directly add value."[11] An enterprise from a country with owners from other countries also contribute to the economy where it is located,* but it produces income and other savings. Contribution is about creating jobs, increasing consumption, increasing income (from wages, purchases, some taxes), but also engaging the "logic" of economy from where the invested capital comes.

A new network of interest is created, joining professional groups from particular countries and splitting groups from the same country. These groups of professionals from different countries began to establish true life communities, with common socio-cultural models. "The new community of those with closer income" detaches from the public "communities that it* creates consist only of those with incomes close to their."[12]Being at the crossroads of sustainable development to globalization, companies are beginning to work within the context of a new macroeconomy. The companies (the most advanced technological and entrepreneurship) - entered into global networks are themselves practitioners of "global business" on a "global management" basis. Globalization is not process acting from the "outside" of national economies, but enters within the inside of them.

Globalized macroeconomics and microeconomics are the new realities of today economics. For most global businesses, the days of defeat, of the predatory competition have been exceeded. Traditional orientation to put the company against the rest of companies of industries, both the suppliers against each other, a distributor for others and so on forever in all areas of business, no longer guarantees the lowest cost, best product and services and the highest profits for winners of this Darwinist game. In fact, the opposite is true (...). Instead of the predatory attitude, many international companies learn to collaborate each other to be competitive (...). When a company works abroad, the ability and willingness to collaborate is the best predictor of success. As the partners are more equal, the more brilliant their future is."

  • [1] Schumacher E. F. (1923), Small is Beautiful. London: Blond and Briggs Ltd., 34.
  • [2] *** (2003), Industrial Policy in an Enlarger Europe. CEC, Brussels, 14.
  • [3] Ibid., 15.
  • [4] Ibid., 20.
  • [5] Ibid., 23.
  • [6] Reich Robert, op. cit., 270.
  • [7] Ibid., 170.
  • [8] Chauraqui Alain (2000), "Mondialisation et Participations," RC10 Newsletter, published by the International Association of Sociology, no. 37, 7.
  • [9] Ibid., 261.
  • [10] Reich Robert B., op. cit., 133.
  • [11] Ibid., 110 (X-conceptual analysts are counted as being in danger working with TIC).
  • [12] Ibid., 233 and 231
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