Monday, March 17, 2014

The Problems with Economic Globalization and the Global Economy




Economic Globalization  
Globalization can mean a lot of different things in different contexts. In the economic sense, globalization involves increases and expansion in international business, especially in trade, investment, and borrowing and lending. Out of globalization comes the global economy.
 As Americans, we experience this globalization in our own lives every single day. Toys, clothes, shoes an household goods are all examples of products make in other countries and sold in the United States. Every time we buy a product that has a "Made in China" label on it, we are experiencing the effects of globalization.

The issue of globalization is really two sided. There are many positive effects of globalization, but there are also many downsides to it as well. The issues discussed below are just a few of the many positives and negatives of the issue of globalization, and are not all encompassing. Also, China is the main country mentioned but is only one of many countries affected both positively and negatively by globalization. 

Globalization as a Force for Good 
For a lot of people, economic globalization is a great thing. In America, we benefit from globalization because have every product we desire at our fingertips in mass quantities.  The CEOs and higher ups of multinational companies benefit when they make products in countries such as China, Indonesia, India and Malaysia, to name a few, and then sell them  Europe and the United States. It also has extremely positive effects for the countries who are making these products. The global economy and manufacturing allow for jobs for the poor in these countries. It can also boost the economy of developing countries and has helped to raise the standard of living in many different countries. China thrives off of their manufacturing and exports. 

(http://www.techeblog.com/index.php/tech-gadget/china-facts) 


So what is the problem with the global economy?
The biggest problem with this is the negative impact on the workers in  these third world countries. These workers are cheap labor, and many are exploited. These workers are forced to work long hours in dismal conditions in order and yet are paid very little. According to UNICEF, 16 out of every 100 children in the world are exploited through child labor. The products that people in Europe and American buy are often times the product of child labor or the labor of exploited workers in different countries. We get our goods and products, but it comes as a cost. 

*For more information on child labor, click here. 
*For more information on the exploitation of workers, click here. 

Does globalization cause this exploitation? 
 Maybe not directly. But globalization and the global economy means that more goods are produced in other countries and demanded in Europe in the United States. The demand for more goods means more production and more labor is needed. This exploitation of laborers is an effect of this globalization. 

This video talks about the exploitation of workers in Malaysia, who go to Malaysia looking for work. Malaysia is a huge trade partner of the United States and export many products around the world. 

What does this have to do with the Catholic Church?

Good question. For one thing, our consciences should tell us right away that exploitation of people in any sense is simply wrong, as is child labor and the use of children as workers.

Gaudium et Spes contains an entire section on the global economy and economics. Section 67 discusses human labor and the need for respect of the dignity and rights of workers and says that "any way of organizing and directing it which may be detrimental to any working men and women would be wrong and inhuman". It is imperative that workers be treated fairly and with respect and the practices in many countries contradict these human rights. The Church calls for a change in the treatment of these workers. 

How should the Church respond to these issues?


Another good question. There are many ways in which the Church can respond to the positive and negative aspects of globalization and the economy. One way is to create and support social programs to deal with the negative side effects, such as unemployment, as well as bringing attention to these issues. Another way is to promote spiritual and political change in these countries, specifically in China. The US Catholic China Bureau published a report from a conference on Globalization as Challenge to the Church, which discusses in length the issues and relationship between the Church and Globalization. The full article can be found here. 

The USCCB has been a driving force in the fight to end human trafficking and child labor for many years. They have worked to introduce legislation against these issues both in the US and globally. More information on the USCCB's fight against child labor can be found here.

There are many ways in which the Church can respond and many debates over what role the Church should take. The Church needs to be an advocate for change and for respect for the dignity and fair treatment of workers and for the end of labor exploitation and human trafficking. 

Links for more Ideas, Information, and Interesting Thoughts 


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