Statistic Globalization

Starting source: The new internationalist magazine, vol. 296 Nov 1997

The cursive texts are the original text. The underlined sentences are my proposal, but are to much for the small column.

Politics

Corporate Power

“Transnational corporations (TNCs) have ~~almost total~~ reached greatest control over the process of ‘globalization’ – their grip is tighter here than at a national or local level, because no democratic power govern them.”

2/3 of international trade is accounted for by just 500 corporations. (Þ concentration and market power) Source: Human development report 1997

TNCs produce 63% of world GDP. (Source: UNCTAD number in Rojas (1997): The ‘Adjustment of the world economy’)

40 % of the trade they control is between different parts of the same TNC. (Þ great intrafirm trade, vertical multinational production, less vertical multinational production, TNCs have competitive advantages, because scale economics, and market distortion in form of knowledge capital (licenses, intellectual property, know how, technology, technics))

Of the world’s 100 (50) largest economies, 1968 43 (5) are TNCs, 1995 50 (12) are TNCs (numbers increasing, Source: UNCTAD number in Rojas (1997): The ‘Adjustment of the world economy’) (Þ concentration and market power)

Many TNCs have larger corporate sales than some developed countries. ???? nice number, but what is the meaning, better the increasing inequality between countries.

MMT case: The Canadian government paid the US Ethyl corporation 5 Mio for ending a 250 $ lawsuit against them, because import stop of their MMT chemical product decreased their future profits and the parliamentary debate ‘damaged’ the reputation of their firm. (mai.flora.org)

The neo-liberal blueprint for the ‘Multinational Agreement on Investment’ came from corporations and the OECD countries have changed it only minimally. (compare MAIgalamania: www.xs4all.nl/~ceo/mai/)

Ten Worst Corporations for 2000 Cited (www.oneworld.org/ips2/dec00/22_42_067.html) Compare also Corporate Crime report or Multinational Monitor

“Since 1982, the turnover of the 200 leading corporations has increased from 3,000 to 7,000 billion. Since 1992, the turnover of the 200 greatest corporations is greater than the GNP of all countries, which aren’t member of the OECD.” (le monde diplomatic, Number 6019, 12.17.1999, Clairmont, Frédéric F.)

Inequality

Getting bigger over time – 5 richest countries to 5 poorest

1820	1913	1950	1973	1992
3	11	35	44	72
1	1	1	1	1

Graph in brochure, but better in HDI summary

Income of the world’s 200 richest people are increasing by 500 $ every second, 4,32 million every day

1 % of the wealth of the 200 richest people could provide universal access to primary education for all ($ 7-8 billion)

income inequality inside of nearly all OECD countries increases

“1 billion cannot meet their basic consumption requirements, 1,3 billion live on less than a dollar a day” (HDI 1990-97, tab)

The share in global income of the richest fifth of the world’s people is 74 times that of the poorest fifth (HDI 1990-97, tab)

The combined wealth of the world’s 200 richest people hit $ 1 trillion in 1999; the combined incomes of the 582 million people living in 43 least developed countries is $ 146 billion (HDI 2000 p. 82)

Driving Growth

International trade is expanding faster than the world’s economy – at the moment. This means that trade is argued to be one of the main ‘engines’ of economic growth. Thats true, free trade is better than autarky, compare Marx, Karl

The two trade numbers must be right – increasing interdependency between countries, economies

BUT....

Since 1973 growth has slowed as trade has accelerated. Wrong correlation, in the sense of Solow model of growth, high developed countries slow down, natural thing. Trade accelerated, because of free trade policy and neo-liberal hegemony. If we stop trade, growth rates will go down.

Total value of foreign trade only a quarter. Not the amount is important, the possibility of competitors to enter a market drives also competition and market efficiency (“contested markets”)

The comparison of the time before the first world war and today is an anti-globalization argument from Hirst/Thompson. This argument is completely wrong. 1. The quantities are the same, but the quality is completely different. Intermediate products are traded. Global division of labor wasn’t possible in the way as today. 2. TNCs weren’t a form of production. Trade yes, but no global interdependency as today. 3. There were also very rich, perhaps more rich corporations than today (Rothschild), but their power was limited by missing global protection of private property and free trade as by the neo-liberal international organizations like WTO, IMF, WB, EU, NAFTA, ...

We should add other statistics of the worst situation on our planet than ever before. More wars, more inequality, less subsistence and democracy, more destruction of our nature and living basis every day.

Economic

FDI

In 1998, the 48 least developed countries attracted less than US $ 3 billioin in foreign direct investments, a mere 0.4 per cent of the total. (HDI p82 bos 4.7)

Growth

Trade grows faster than GNP

Great intrafirm trade

Number of TNCs increases

FDI concentrated in Triade

“The achieve universal provision of basic services in developing countries would cost an additional $ 80 billion a year” (HDI 2000 p. 9)

Annual Average Growth of per capita GDP(GEO 2000 p. 3)

Africa -0,20%

Asia and the Pacific 3,09%

Europa and Central Asia 1,54 %

Latin America and the Caribbean 0,66%

North America 1,53 %

West Asia -2,93%

World 1,17%

Social

Inequality

Getting bigger over time – 5 richest countries to 5 poorest

1820	1913	1950	1973	1992
3	11	35	44	72
1	1	1	1	1

Income of the world’s 200 richest people are increasing by 500 $ every second, 4,32 million every day

1 % of the wealth of the 200 richest people could provide universal access to primary education for all ($ 7-8 billion)

income inequality inside of nearly all OECD countries increases

“1 billion cannot meet their basic consumption requirements, 1,3 billion live on less than a dollar a day” (HDI 1990-97, tab)

The share in global income of the richest fifth of the world’s people is 74 times that of the poorest fifth (HDI 1990-97, tab)

Health

More than 30,000 children a day die from mainly preventable causes. HDI 2000, p. 8

Child labor

“More than 250 million children are working as child laborers” (HDI 1990-97, tab)

Hunger

As a result of declining food security, the number of undernourished people in Africa nearly doubled from 100 million in the late 1960s to nearly 200 million in 1995. (GEO 2000 p. 6)

Environment

“The continued poverty of the majority of the planet’s inhabitants and excussive consumption by the minority are the two major causes of environmental degradation. The present course is unsustainable and postponing action is no longer an option.” (GEO 2000 p. XXIX)

Drylands

20% of the world’susceptible drylands are affected by human-induced soil degradation, putting the livelihood of more than 1000 million people at risk. (GEO 2000 p. 4)

Inequality in greenhouse gas production (GEO p. 10)