Resistance to Globalization: Trade Liberalization and Immigration | Apuntes de Cultura y Globalización

06/03/18

6. RESISTANCE TO GLOBALIZATION

GLOBALIZATION AND SOCIETY

We are living a moment in which the losers of globalization are starting to

mobilize against some of the main features of globalization. This resistance

to globalization has taken 3 main forms: resistance to trade liberalization,

resistance to immigrants and resistance to the European Union. In this

session, we will focus on the first two points.

I. RESISTANCE TO TRADE LIBERALIZATION.

The resistance to trade liberalization has been growing since the 1990s

thanks to the proliferation of the Free Trade Agreements. Among the

milestones: NAFTA (1993), Seattle (1999), Indignados (2011), the free trade

agreements of CETA and TTIP (2016). Moreover, the increasing awareness of

different labour and environmental standards worldwide should be pointed

out. Another fact that helps us to contextualize the resistance to trade

liberalization is that it has coincided with the stagnation of middle class

wages in highly developed countries.

Trade liberalization is contested both by the left and the right. Progressives

denounce labour exploitation and climate change. We are signing treaties

that promote that. More specific, e.g. transgenics. On the other hand,

conservative and nationalist movements criticize trade liberalization since it

contributes to the stagnation of real wages, motivates transnational

organizations to delocalize their activities and promotes the importation and

products that could be produced at home. Less developed countries rely on

unfair trade practice that attract transnational corporations. Social dumping

means that a producer for strategic reason sells its production.

(…)Preguntar Paula.

There are also movements that are purely nationalist. A situation of trouble

is translated from the national to the international field. Conflicts may be

settle in a transnational court where the country affected may be not

benefited since judges are partial regarding national interests. Trade

liberalization therefore, erodes national sovereignty. Another reason for the

resistance is the liberalization of public procurement (contracts awarded by

the state to build big infrastructures). These contracts mean a huge amount

of money so there is a lot of conflict around if they should be open to foreign

actors.

How correct are these movements? Are these effects so negative? There are

different theories.

THEORIES

On the effects of trade liberalization on the economy.

oEconomics: Trade benefits the most abundant

factoreconomic restructuring.

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6. RESISTANCE TO GLOBALIZATION

GLOBALIZATION AND SOCIETY

We are living a moment in which the losers of globalization are starting to mobilize against some of the main features of globalization. This resistance to globalization has taken 3 main forms: resistance to trade liberalization, resistance to immigrants and resistance to the European Union. In this session, we will focus on the first two points. I. RESISTANCE TO TRADE LIBERALIZATION. The resistance to trade liberalization has been growing since the 1990s thanks to the proliferation of the Free Trade Agreements. Among the milestones: NAFTA (1993), Seattle (1999), Indignados (2011), the free trade agreements of CETA and TTIP (2016). Moreover, the increasing awareness of different labour and environmental standards worldwide should be pointed out. Another fact that helps us to contextualize the resistance to trade liberalization is that it has coincided with the stagnation of middle class wages in highly developed countries. Trade liberalization is contested both by the left and the right. Progressives denounce labour exploitation and climate change. We are signing treaties that promote that. More specific, e.g. transgenics. On the other hand, conservative and nationalist movements criticize trade liberalization since it contributes to the stagnation of real wages, motivates transnational organizations to delocalize their activities and promotes the importation and products that could be produced at home. Less developed countries rely on unfair trade practice that attract transnational corporations. Social dumping means that a producer for strategic reason sells its production. (…) Preguntar Paula. There are also movements that are purely nationalist. A situation of trouble is translated from the national to the international field. Conflicts may be settle in a transnational court where the country affected may be not benefited since judges are partial regarding national interests. Trade liberalization therefore, erodes national sovereignty. Another reason for the resistance is the liberalization of public procurement (contracts awarded by the state to build big infrastructures). These contracts mean a huge amount of money so there is a lot of conflict around if they should be open to foreign actors. How correct are these movements? Are these effects so negative? There are different theories. THEORIES  On the effects of trade liberalization on the economy. o Economics: Trade benefits the most abundant factoreconomic restructuring.

When a country liberalizes, it benefits the most abundant group. This way, in most developed countries, trade liberalization benefits high skilled workers whereas in less developed countries it benefits low skilled workers. Trade liberalization leads to the reorganization of the labour force but this may not be necessarily bad. o Empirics: minimal effect on real wages and jobs. Although it is true that TL leads to the decline of some jobs, the previous theory (economics) does not say the magnitude, how many jobs are going to be lost. The only way to measure it is empirically and facts show that the loss of jobs is due to companies that try to save as much money as possible, not because of trade liberalization itself. The impact of trade liberalization is minimum, there are other variables that have a most important effect. Exception: the entry of China in the global market did have a significant effect.  On the factors explaining support for free trade. If the most abundant factor is who suffers more TL, this group should oppose more to it.  Sociology and political science: Losers of globalization (from factor endownment theories), Cues by parties/news, economic vulnerability, beliefs about the importance of trade for people’s well-being. People believe what parties and newspapers tell about how much TL affects us even if the impact is lower. Another reason to resist globalization is your own economic situation. Finally, it also matters how important you think (…) for people’s wellbeing. II. RESISTANCE TO IMMIGRATION Most developed countries have witnessed two waves of anti-immigrant attitudes. The first one in the 1970s (oil crisis) and the second one from the 1990s on. This resistance to immigration has taken many forms: xenophobic attitudes, violence, support for far-right parties and nationalist parties, etc. Anti- immigration speeches are concentrated on the far-right, never on the left as it happened with TL. Main arguments against immigration:

It brings down wages and eats jobs.
It leads to a deterioration of public sources (e.g. health care system).
Cultural threat. THEORIES.  On the Impact of Immigrants: o Economics:

is does not mean causation, it is difficult to interpret. Why a person’s identity may be threatened? Identity itself should be defined in order to explain it. o Cognitive Theory: Educationcritical thinking, knowledge of other countries, networks with people from other origins, and a cosmopolitan outlook that seeks cultural varietyTolerance. Education is a major factor in explaining xenophobia. The more educated you are, the more friends you have in other countries…less xenophobia. However, this is contradictory with the fact that we are witnessing an increase in xenophobia in societies that are more and more educated. o Vulnerability Theory: Vulnerability (individual/institutional)Sensitiveness to the need to renegotiate an extant social contract, sensitiveness to cultural change and to contextual cues regarding immigrant threatconflict. This is the most acceptable theory. When people feel vulnerable individually or institutionally (even if they do not know why), they become stressed and tend to react more violent against simple things that are perceived as a violation of the social contract. A new renegotiation of social contract may be conflictive if I am not happy with my life. The poor are the most vulnerable. They have more pressing things that do not let them adapt to new cultures. III. EMPIRICAL FINDINGS: REJECTION OF FREE TRADE AND IMMIGRATION. More Protectionist and Xenophobic:

Older
Women
Less educated
Unemployed (Mixed)
Nationalists
Far Right Voters
Manual Workers
Poor
Residents of countries with less generous welfare states It is not immigration what increases xenophobia, it is immigration from poor countries. The only variable that has an effect is the economic status of migrants.

Welfare states are becoming weaker and middle classes vulnerable. Political parties blame globalization and as people are hoping for an explanation of their situation, they are more likely to believe them. IV. A POSSIBLE EXPLANATION

GlobalizationGreater benefits/power to TNCs
- - liberalization and De-regulation (i.e to be more competitive)
- Austerity (to attract capital through strong currency)Less welfare and more exclusionMore segments of population made vulnerable
- Digitalization/Robotics Revolution
Development & GlobalizationShift to Service Economy (less productivity)Growing exclusion
Growing exclusion, vulnerabilityGreater appeal of nationalists and other marginal political groupsAnti-globalization

Resistance to Globalization: Trade Liberalization and Immigration, Apuntes de Cultura y Globalización

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6. RESISTANCE TO GLOBALIZATION

GLOBALIZATION AND SOCIETY