GLOBALIZATION

Historical precedents

Definition

    Worldwide integration through interplay of 4 trends

        Movement of capital and goods
        Expansion of democratic institutions and human rights
        Dissemination of information
        Movement of large numbers of people

Results

    More compressed and interconnected world
    Contact between differing cultures and values

Is globalization really that bad?

    Per capita GDP of the top 25% of the world’s population - 600% increase
    Per capita GDP of the bottom 25% - < 300% increase

    But, UN Human Development Index shows

        Higher absolute income (middle class)
        Improved health
        Greater literacy
        Government that respects human rights

So, what is the problem?

    Capitalism, democracy, and technology

        Perpetuate economic inequality
       
            Exploitation of the labor force
       
        Intensify long-standing problems

            Political hegemony and resentment

    Consumerism, competition, and individualism endanger traditional collectivistic cultures
            
        Undermines links between people
                
            Cultural identity vs. world identity
            Shared resources vs. private wealth
            Mutual obligation vs. individualism

Does globalization strengthen parochialism?
Does globalization strengthen cosmopolitanism?

Competing hypotheses empirically tested

    Matched samples from cities in 6 countries

    Degree of participation in worldwide network of economic, social, and cultural relations

        Country globalization index (CGI)
        Individual globalization index (IGI)
    
    Multilevel sequential contribution experiment

        Choice to make a contribution
        Choice affects contribution by others
        Choice affects ultimate payoff

    3 ways to allocate 10 tokens
    
        Selfish – personal account
            Highest return now, lowest later

        Parochial - local account
            Moderate return now, moderate later
        
        Cosmopolitan – world account
             Lowest return now, highest later

    Increasing trend – CGI and world account
    Decreasing trend – CGI and local account

    IGI - positively correlated with world account after controlling for local account (eliminating general cooperative tendency as a potential confound)

    Globalization strengthens cosmopolitanism

        Global cooperation linked to

            Living in a more globalized country
            Having more personal ties worldwide

    Globalization may reduce interpersonal distance and enhance trust and cooperation

    Globalization may provide contexts in which to acquire social norms of cooperation with diverse peoples

DISCUSSION:

➢    How do you think globalization influences patterns of cooperation at the individual and national levels?

➢    Under what conditions might tribal instincts favor cooperation at the local level versus at the global level?