Key Questions???? • What ails our economics and associated politics, and • How to improve the health of our increasingly global systems?
Some informations about the Author………. • Korten's background includes an MBA and Ph.D. from Stanford Business School • Teaching at Harvard Business School and working with the U.S. Agency for International Development in Asia. • Has over thirty-five years of experience in preeminent business, academic and international development institutions as well as in contemporary citizen action organizations. • Publishers of YES! A Journal of Positive Futures, and founder and president of The People-Centered Development Forum.
The major challenge of our time is to how can we create a more sustainable, and at the same time a more economically and socially just world?
Effect of Globalization…. • How economic globalization has concentrated the power to govern in global corporations and financial markets and detached them from accountability to the human interest • The successful efforts of these corporations is leading to the devastating human and environmental consequences everywhere on the planet to serve their own narrow ends.
Corporate Cannibalism……… The quickest way to make the kind of profit ….. • To capture & also cannibalize the existing values from a weaker market player • They are being replaced by a special breed of extractive instructor, namely the corporate rider, specialized in preying on established corporations
The Stride Rite Corporation case • “Putting jobs into places where it does not make economic sense is a dilution of corporate & community wealth”
I think Globalization strengthens tendencies toward global scale monopoly ratherincreasing the competition, do you? • 92 percent of the US appliance market is controlled by four companies (Whirlpool, GE, Electrolux/WCI & Maytag) • More than 66 percent of US revenue passenger miles is accounted to four airlines only namely United, American, Delta& North west. • In the automotive, airline, aerospace, electronic components, electronics & steel industry, the top five firms control more than 40 percent of sales.
Concentration without Centralization……… Approaches may differ not the FORMULA • Downsizing staffs & contacting out, • Using computers in order to bring out the automation (off course to reduce staff & inventory), • Mergers & acquisitions etc
Do we know? • The aggregate sales of world’s ten largest corporations in 1991 exceeded the total GNP of the worlds 100 smallest countries! • General Motors achieved 133 billions revenue in 1992 that roughly equaled the combined GNP of Tanzania, Ethiopia, Nepal, Bangladesh, Zaire, Uganda, Nigeria, Kenya & Pakistan.
Corporate Globalization,other aspects….. • Join the national "Sweat free" campaign • ensure that the clothes, uniforms, and other products bought by our cities and states are not made in sweatshops.
We Have a Right to Know • International Right To Information Act
If we were able to deal with the issues of corporate rule, then also some problems would not be solved simply sweeping away global corporations to reclaim the spaces they have colonized would only remove a barrier to the creation of just, sustainable, and compassionate societies. But…… There would remain a daunting task of restoring damaged ecosystems and communities and redistributing the recovered assets in ways that assure their sustainable use will still be pending
What we have to do? • Rebuild the capacity of households and communities to steward and manage the space reclaimed • Have to learn to make choices between appropriate and inappropriate technologies
“We have a collective cancer, and our survival depends on depriving it of its power by restructuring our economic rules and institutions to end absentee ownership, rights without accountability, corporate welfare, and financial speculation.”
How does my term paper connect with other reference materials discussed in class and the website & to other term papers? • Position of US • Famous Bretton Wood Conference • Responsibility of IMF, WB & WTO in this crisis • Mexican Peso crisis