Mon, Feb 21, 2000 - Page 8 News List

Globalization is dividing the world

By Tao Tzai-pu

Fourth, penguins in South Pole die from industrial pollution produced in Europe.

However, the world economy is still at a stage of internationalization, rather than globalization.

Although globalization has triggered much discussion world-wide, statistics show that the world is not as "globalized" as it was back in 1913 -- the first period of globalization according to Walestein.

One of the important indices in measuring the level of global integration is the so called "open-ness" -- the percentage of trade volume in gross domestic products of a country. For example, the openness level of Japan was about 30 percent in 1913; today it's less than 20 percent. In France and England it is 38 and 48 percent respectively, slightly higher than the 1913 figures.

As for direct overseas investment, the figures nowadays are generally less than those in 1913. In 1913, Holland's direct overseas investment was 82 percent of its GDP; now it's around 40 percent. England's was 65 percent while it's 25 percent now; a similar decrease has taken place in Germany.

What's more, despite the dramatic decrease in travel costs and time, as well as border controls, global labor market integration is still less intensive than in the second half of 19th century.

Globalization has attracted both praise and condemnation, but so far we are not sure if this trend will sweep the world. Although it cannot be denied that economic globalization has brought many benefits to the world, such as the boost of productivity and the emergence of Asia's G7, more disadvantages could come along with it.

The first is the deepening income disparity resulting from the changes on employment and income structure. The German sociologist Sahsen said that in a globalized society, we only need two kinds of laborers: professionals such as computer programmers and ordinary workers such as restaurant waiters.

The interdependance between the two groups will grow and the job opportunities for people in between will decrease. This U-shaped structure of employment is prevailing worldwide -- people are equal on an unequal basis.

According to the the research published in Globalization and Conflicts by the Norwegian Technology University and the Oslo Peace Research Institute, the potential consequence of globalization has deepened income disparity, regional political instability, and even wars, caused by wrongful distribution of pollution.

The development of globalization is similar to the story of Beseiged City. To embrace this irresistable trend, Taiwan should, on one hand take part in it and on the other, preserve its regional roots.

The slogan "think from the perspective of globalization, but act by the principle of regional needs" should be one of the concerns of our presidential candidates. Dear presidential candidates, what are your substantive plans for globalization?

Tao Tsai-pu is a professor at Nan Hua University.

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