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Globalization (or globalisation) is the process of international integration arising from the interchange of world views, products, ideas and other aspects of culture. Advances in transportation and telecommunications infrastructure, including the rise of the telegraph and its posterity the Internet, are major factors in globalization, generating further interdependence of economic and cultural activities. The term globalization is derived from the word globalize, which refers to the emergence of an international network of economic systems. One of the earliest known usages of the term as a noun was in a 1930 publication entitled, Towards New Education, where it denoted a holistic view of human experience in education. Since its inception, the concept of globalization has inspired competing definitions and interpretations, with antecedents dating back to the great movements of trade and empire across Asia and the Indian Ocean from the 15th century onwards. Due to the complexity of the concept, research projects, articles, and discussions often remain focused on a single aspect of globalization. Roland Robertson, professor of sociology at University of Aberdeen, an early writer in the field, defined globalization in 1992 as: ...the compression of the world and the intensification of the consciousness of the world as a whole. Sociologists Martin Albrow and Elizabeth King define globalization as: ...all those processes by which the peoples of the world are incorporated into a single world society. In The Consequences of Modernity, Anthony Giddens uses the following definition: Globalization can thus be defined as the intensification of worldwide social relations which link distant localities in such a way that local happenings are shaped by events occurring many miles away and vice versa. In Global Transformations David Held, et al., study the definition of globalization: Although in its simplistic sense globalization refers to the widening, deepening and speeding up of global interconnection, such a definition begs further elaboration. ... Globalization can be located on a continuum with the local, national and regional. At one end of the continuum lie social and economic relations and networks which are organized on a local and/or national basis; at the other end lie social and economic relations and networks which crystallize on the wider scale of regional and global interactions. Globalization can refer to those spatial-temporal processes of change which underpin a transformation in the organization of human affairs by linking together and expanding human activity across regions and continents. Without reference to such expansive spatial connections, there can be no clear or coherent formulation of this term. ... A satisfactory definition of globalization must capture each of these elements: extensity (stretching), intensity, velocity and impact. Origin of globalization Though scholars place the origins of globalization in modern times, others trace its history long before the European age of discovery and voyages to the New World. Some even trace the origins to the third millennium BCE. In the late 19th century and early 20th century, the connectedness of the world's economies and cultures grew very quickly. Aspects of globalization The term globalization has been increasingly used since the mid-1980s and especially since the mid-1990s. In 2000, the International Monetary Fund (IMF) identified four basic aspects of globalization: trade and transactions, capital and investment movements, migration and movement of people, and the dissemination of knowledge. Further, environmental challenges such as climate change, cross-boundary water and air pollution, and over-fishing of the ocean are linked with globalization. Globalizing processes affect and are affected by business and work organization, economics, socio-cultural resources, and the natural environment. History of globalisation There are both distal and proximate causes which can be traced in the historical factors affecting globalization. Large-scale globalization began in the 19th century. Archaic globalization is seen as a phase in the history of globalization conventionally referring to globalizing events and developments from the time of the earliest civilizations until roughly the 1600s. This term is used to describe the relationships between communities and states and how they were created by the geographical spread of ideas and social norms at both local and regional levels. In this schema, three main prerequisites are posited for globalization to occur. The first is the idea of Eastern Origins, which shows how Western states have adapted and implemented learned principals from the East. Without the traditional ideas from the East, Western globalization would not have emerged the way it did. The second is distance. The interactions amongst states were not on a global scale and most often were confined to Asia, North Africa, the Middle East and certain parts of Europe. With early globalization it was difficult for states to interact with others that were not within close proximity. Eventually, technological advances allowed states to learn of others existence and another phase of globalization was able to occur. The third has to do with interdependency, stability and regularity. If a state is not depended on another then there is no way for them to be mutually affected by one another. This is one of the driving forces behind global connections and trade; without either globalization would not have emerged the way it did and states would still be dependent on their own production and resources to function. This is one of the arguments surrounding the idea of early globalization. It is argued that archaic globalization did not function in a similar manner to modern globalization because states were not as interdependent on others as they are today. Also posited is a 'multi-polar' nature to archaic globalization, which involved the active participation of non-Europeans. Because it predated the Great Divergence of the nineteenth century, in which Western Europe pulled ahead of the rest of the world in terms of industrial production and economic output, archaic globalization was a phenomenon that was driven not only by Europe but also by other economically developed Old World centers such as Gujurat, Bengal, coastal China and Japan. The German historical economist and sociologist Andre Gunder Frank argues that a form of globalization began with the rise of trade links between Sumer and the Indus Valley Civilization in the third millennium B.C.E. This archaic globalization existed during the Hellenistic Age, when commercialized urban centers enveloped the axis of Greek culture that reached from India to Spain, including Alexandria and the other Alexandrine cities. Early on, the geographic position of Greece and the necessity of importing wheat forced the Greeks to engage in maritime trade. Trade in ancient Greece was largely unrestricted: the state controlled only the supply of grain. Early modern 'Early modern-' or 'proto-globalization' covers a period of the history of globalization roughly spanning the years between 1600 and 1800. The concept of 'proto-globalization' was first introduced by historians A. G. Hopkins and Christopher Bayly. The term describes the phase of increasing trade links and cultural exchange that characterized the period immediately preceding the advent of high 'modern globalization' in the late 19th century. This phase of globalization was characterized by the rise of maritime European empires, in the 16th and 17th centuries, first the Portuguese and Spanish Empires, and later the Dutch and British Empires. In the 17th century, world trade developed further when chartered companies like the British East India Company (founded in 1600) and the Dutch East India Company (founded in 1602, often described as the first multinational corporation in which stock was offered) were established. Early modern globalization is distinguished from modern globalization on the basis of expansionism, the method of managing global trade, and the level of information exchange. The period is marked by such trade arrangements as the East India Company, the shift of hegemony to Western Europe, the rise of larger-scale conflicts between powerful nations such as the Thirty Year War, and a rise of new commodities – most particularly slave trade. The Triangular Trade made it possible for Europe to take advantage of resources within the western hemisphere. The transfer of animal stocks, plant crops and epidemic diseases associated with Alfred Crosby's concept of The Columbian Exchange also played a central role in this process. Early modern trade and communications involved a vast group including European, Muslim, Indian, Southeast Asian and Chinese merchants, particularly in the Indian Ocean region. Modern During the 19th century, globalization approached its modern form as a result of the industrial revolution. Industrialization allowed standardized production of household items using economies of scale while rapid population growth created sustained demand for commodities. Globalization in this period was decisively shaped by nineteenth-century imperialism. In the 19th century, steamships reduced the cost of international transport significantly and railroads made inland transport cheaper. The transport revolution occurred sometime between 1820 and 1850. More nations embraced international trade. Globalization in this period was decisively shaped by nineteenth-century imperialism such as in Africa and Asia. The invention of shipping containers in 1956 helped advance the globalization of commerce. After the Second World War, work by politicians led to the Bretton Woods conference, an agreement by major governments to lay down the framework for international monetary policy, commerce and finance, and the founding of several international institutions intended to facilitate economic growth multiple rounds of trade opening simplified and lowered trade barriers. Initially, the General Agreement on Tariffs and Trade (GATT), led to a series of agreements to remove trade restrictions. GATT's successor was the World Trade Organization (WTO), which created an institution to manage the trading system. Exports nearly doubled from 8.5% of total gross world product in 1970 to 16.2% in 2001. The approach of using global agreements to advance trade stumbled with the failure of the Doha round of trade-negotiation. Many countries then shifted to bilateral or smaller multilateral agreements, such as the 2011 South Korea–United States Free Trade Agreement. Since the 1970s, aviation has become increasingly affordable to middle classes in developed countries. Open skies policies and low-cost carriers have helped to bring competition to the market. In the 1990s, the growth of low cost communication networks cut the cost of communicating between different countries. More work can be performed using a computer without regard to location. This included accounting, software development, and engineering design. In the late 19th century and early 20th century, the connectedness of the world's economies and cultures grew very quickly. This slowed down from the 1910s onward due to the World Wars and the Cold War but picked up again with the neoliberal policies of the 1980s, perestroika, and the Chinese economic reforms of Deng Xiaoping opened the old Eastern Bloc to western capitalism. Private capital flows to developing countries soared during the 1990s, replacing "aid" or "development assistance" which fell significantly after the early 1980s. Foreign Direct Investment (FDI) became the most important category. Both portfolio investment and bank credit rose but they have been more volatile, falling sharply in the wake of the financial crisis of the late 1990s. The migration and movement of people can also be highlighted as a prominent feature of the globalization process. In the period between 1965–1990, the proportion of the labor force migrating approximately doubled. Most migration occurred between developing countries and Least Developed Countries (LDCs). In the early 2000s, much of the industrialized world entered into the Great Recession, which may have slowed the process, at least temporarily. Globalized society offers a complex web of forces and factors that bring people, cultures, markets, beliefs and practices into increasingly greater proximity to one another. Types of globalization 1.	Economic globalization is the increasing economic interdependence of national economies across the world through a rapid increase in cross-border movement of goods, service, technology and capital. Whereas the globalization of business is centered around the diminution of international trade regulations as well as tariffs, taxes, and other impediments that suppresses global trade, economic globalization is the process of increasing economic integration between countries, leading to the emergence of a global marketplace or a single world market. Depending on the paradigm, economic globalization can be viewed as either a positive or a negative phenomenon. Economic globalization comprises the globalization of production, markets, competition, technology, and corporations and industries. Current globalization trends can be largely accounted for by developed economies integrating with less developed economies by means of foreign direct investment, the reduction of trade barriers as well as other economic reforms and, in many cases, immigration.

2.	Cultural globalization has increased cross-cultural contacts but may be accompanied by a decrease in the uniqueness of once-isolated communities. For example, sushi is available in Germany as well as Japan but Euro-Disney outdraws the city of Paris, potentially reducing demand for "authentic" French pastry. Globalization's contribution to the alienation of individuals from their traditions may be modest compared to the impact of modernity itself, as alleged by existentialists such as Jean-Paul Sartre and Albert Camus. Globalization has expanded recreational opportunities by spreading pop culture, particularly via the Internet and satellite television.

Religious movements were among the earliest cultural elements to globalize, being spread by force, migration, evangelists, imperialists and traders. Christianity, Islam, Buddhism and more recently sects such as Mormonism, which have taken root and influenced endemic cultures in places far from their origins.

The term globalization implies transformation. Cultural practices including traditional music can be lost or turned into a fusion of traditions. Globalization can trigger a state of emergency for the preservation of musical heritage. Archivists must attempt to collect, record or transcribe repertoires before melodies are assimilated or modified. Local musicians struggle for authenticity and to preserve local musical traditions. Globalization can lead performers to discard traditional instruments. Fusion genres can become interesting fields of analysis. Measuring globalization Indices Globalization Index Measurement of economic globalization focuses on variables such as trade, Foreign Direct Investment (FDI), portfolio investment, and income. However, newer indices attempt to measure globalization in more general terms, including variables related to political, social, cultural, and even environmental aspects of globalization. One index of globalization is the KOF Index, which measures three important dimensions of globalization: economic, social, and political. Another is the A.T. Kearney / Foreign Policy Magazine Globalization Index. The Good Country Index The Index is a composite statistic of 35 data points which are mostly generated by the United Nations. These data points are combined into a common measure which gives an overall ranking and a ranking in seven categories such as Science and Technology, Culture, International Peace and Security, World Order, Planet and Climate, Prosperity and Equality, Health and Wellbeing. Enabling trade index The Enabling Trade Index measures the factors, policies and services that facilitate the trade in goods across borders and to destinations. It is made up of four sub-indexes: market access; border administration; transport and communications infrastructure; and business environment. The top 20 countries are listed below. Stages in globalization Continuing globalization process may be divided into many stages encompassing colonization, slave trade, church constructions abroad, inventions in the high-capacity transportation, industrialization, highway constructions among provinces and countries, electrical and electronic infrastructure. On the other hand Robertson claims that globalization which is thought to be peculiar to present day is in fact a process began before the modernity and capitalism and divides this process into five stages and suggests that the last stage started in 1960 is full of ambiguities. A commonly accepted division divides the globalization process into three stages. Table 1: Stages of Globalization Stages	First Stage 1490	Second Stage 1890	Third Stage 1990 Impulse	Nautical developments	Industrialization and its requirements	Multi-National Companies in 1970s, Communication Reform in 1980s, Disappearance of Competitors of the West in 1990s Process	Profit and then military occupation	Evangelists, then explorers, then companies and finally occupation	Cultural-Ideological effect, therefore countrywide spontaneous effect Medium	To get the God’s religion to the pagans	Burden of the white man, humane mission, racialist theories	Highest level of civilization, governance of international community, “invisible hand” of the market, globalization: for everyone’s interest Political Structure	Empires and Colonization	Nation States	Regional and Economic Integrations Result	Colonialism	Imperialism	Globalization Source: Yaman, 2001. First Stage (1490): Started with the overseas discoveries of the West. The discoveries were followed by the establishment of colonial empires.

Second Stage (1890): Second extension of the West started after 1870 and institutionalized in 1890s. The utilized technology after the industrial revolution generated high imbalances between the West and the rest of the world. This difference was resulted with the deployment of Western countries into the markets of countries that had not experienced the industrial revolution and exploitation of the resources in these countries. A merciless competition that curtails profit rates started. This competition previously had remained at the firm level as the land and resources abounded but later on as the free lands become scarce it raised to the national level. Increased competition resulted in conflicts and the First World War.

Third Stage (1990): In the first two stages instable balances aroused. The number of independent states increased, conflicts increased and accelerated. Identity conflicts reached to peak in the underdeveloped countries.

The national markets of the West were insufficient; markets were desired to expand in order to encompass the whole world. In this process there were no competitors against the West like the ones in 1490 and 1890 stages because the third stage both was the factor that engendered the collapse of Soviet Bloc and the West was left alone to conquer the world as a result of this collapse. The third stage was more powerful, widespread and faster than the first two stages because of the hegemony of MNCs on the world economy started in 1970s, communication revolution created by putting technological inventions of the West like optical cable, communication satellites, computers, internet in 1980s and disappearance of power balances with the dissolution of the USSR and Europe’s turning up as the only focus of power again in 1990s. Therefore globalization has become a process that can not be reversed and it should be accorded and strategies should be developed against the process. Literature review on globalization Globalization evokes dichotomous definitions which instantly surface the tensions in describing a “process” that is so multifaceted. Nevertheless, most definitions of globalization address at least three common elements of globalization. (Burbules & Torres, 2000; Carnoy & Rhoten, 2002; Held & McGrew, 2003; Lauder et. al., 2006; Mebrahtu et. al., 2000; Nissanke & Thorbecke, 2007; Stromquist & Monkman, 2000)

The starting point for most definitions of globalization is economic globalization. Viewed through this prism, globalization is understood as a creation of a globally integrated economy (world market system) characterized by increased openness to, and interconnectedness of, international trade, capital, and labor movements operating in “real time” and integrated on a global level. Globalization is reflected in the magnitude of foreign direct investment and global trade, foreign exchange, speculative capital flows, and the reach of multinational corporations plus a new dependency on technology and information, i.e., the Knowledge Economy. While these factors of the global economy have come together at other times in history, the rapidity and intensity of the changes and the new linkages between so many countries make this period somewhat different. Burbules and Torres (2000) characterize globalization in economic terms as: A transition from Fordist to post-Fordist forms of workplace organization; a rise in internationalized advertising and consumption patterns; a reduction in barriers to the free flow of goods, workers and investments across national borders, and, correspondingly, new pressures on the roles of worker and consumer in society. (p. 14) Political globalization reflects the changes in the political landscape resulting from the emergence of supranational governance via regional (e.g. European Union) and global (e.g. United Nations, World Bank) organizations that exercise economic and/or political power directly or indirectly. They do this by prioritizing certain forms of development assistance and/or through international agreements and conventions (e.g. Education for All and Millennium Development Goal declarations, environmental treaties, Doha round, human rights instruments, etc.). Cultural and social globalization represents a third prism through which to view this “force” in our global society. Advances in transportation and in information and communication technology (mass media and the Internet) have facilitated development of a global consciousness and informal collective consensus in some areas of culture and society. These changes have led to major movements of peoples and the rapid diffusion of information, respectively, and to convergence of cultural, linguistic, and ideological paradigms and patterns around the world (e.g. music, fashion styles, English language dominance, etc.). Much of the early writing on globalization is an attempt to make sense of major changes taking place in the world following the 1970s economic crisis, and how it might differ from internationalization (cf. Hobsbawm, 1994). There is general agreement with Harvey’s point that something akin to globalization has a long presence in the history of capitalism (2000: 54) and that from the year 1500 onwards, the internationalization of trade and commerce was well underway. In 1986, Peter Dickens published Global Shift – an interdisciplinary study of global economic change. Woven around the themes of turbulence and volatility, Dickens argues that not only is economic activity becoming more internationalized but it is more globalized. For Dickens, internationalization refers to “the increasing spread of economic activities across national boundaries; as such it is not a new phenomenon” (1986: 1). On the other hand, “Globalization of economic activity is qualitatively different. It is a more advanced and complex form of internationalization which implies a degree of functional integration between internationally dispersed economic activities” (ibid.). Dickens argues that globalization signals a shift in the center of gravity in key aspects of the system of economic (i) production – goods; (ii) regulation the way the production system is controlled and regulated; (iii) circulation – the intermediary services that connect the parts of the system; distribution – activities that make goods and service available to the consumer; and consumption – demand (Dickens 1992: 300).

It is interesting that the term globalization does not appear in David Harvey’s very influential The Condition of Postmodernity (1989) where he traces out the transformations taking place in the political economy of late 20th century capitalism. Harvey instead uses the idea of postmodernity to signal a loss of confidence in the Enlightenment project – in other words the ‘condition’ of modernity as a result of the idea of progress – and the collapse of the post-war Fordist settlement (ibid.: 171). Harvey’s significant contribution in this and later work (2000, 2001) was his theorizing on space and time – in particular the idea of ‘time-space compression’ to capture the capital’s strategic use of space as well along with the way new technologies enable the rapid and flexible production and distribution of goods globally. Harvey’s later work engages explicitly with globalization – however his approach is firmly rooted in an analysis of capital accumulation and class struggle. As he notes, “Capitalism cannot do without spatial fixes. Time and again it has turned to geographical reorganization as a partial solution to its impasses” (2000: 54). The term globalization here signals a profound geographical reorganization of capitalism, in turn causing changes in the territorial organisation of state power and the ways in which states regulate the conditions for production and accumulation.

Held et al’s highly influential book Global Transformations was published in 1999. Their important contribution at the time was a distillation of the burgeoning literature on globalization and its dynamics. They identified key three positions that could be detected in the literature – ‘hyper-globalism’ (intensification of long-run global processes), ‘skeptics’ (globalization is a myth, or that regionalism rather than globalization is a more evident phenomenon) and ‘transformationalists’ (that there are both qualitative and quantitative shifts that have occurred fundamentally changing social relations). Like others, Held et al agree that “…globalization is a central driving force behind the rapid social, political and economic changes that are reshaping societies” (Held et al, 1999: 7) and that globalization is “…a process (or set of processes) which embodies a transformation in the spatial organisation of social relations and transactions”. Thus, historical forms of globalization refer to “the spatio-temporal and organisational attributes of global interconnectedness in discrete historical periods” (ibid.: 17). This definition leads them to focus on four spatio-temporal dimensions: •	the extensity of global networks; •	the intensity of global interconnectedness; •	the velocity of global flows; •	The impact propensity of global interconnectedness (ibid: 17) measured through decisional, institutional, distributive, and structural impacts.

This framework provides the basis for both a quantitative and qualitative assessment of historical patterns of globalisation, in turn providing insights into the changing historical forms of globalisation. This approach avoids the argument that suggests globalisation is something completely new, or that it is nothing novel. Since the publication of Held et al’s work, writers have sought to negate, clarify or amplify various aspects of their approach. Writers like the Portuguese legal sociologist Boaventura de Sousa Santos (2002) insist that there are multiple rather than one form of globalisation (including those who oppose contemporary forms of economic globalisation), while Mittelman (2000: 4) sees globalisation as “a syndrome of processes or activities” signalled in the different adjectives that precede globalisation, such as neo-liberal, cultural, economic, and so on. These processes or logics of globalisation can be summed up as: (i) financial deregulation and the development of international financial markets (Cerny, 1995); (ii) profound technological changes, technology transfer and product innovation and the emergence of a new production paradigm (Castells, 1996; Harvey, 2000); (iii) the development of ‘free’ markets shaped by classical economic theory; (iv) the information revolution and its impact on the media and communications systems (Poster, 1990; Castells, 1996); and (v) the diminution of costs and time in moving commodities and people from one place to another (Harvey, 1989; 2000). Taken together (it is difficult to separate) these have had a major impact on the economy, society and polity. Globalisation is not only about ‘real’ phenomena (Castells, 1996; Held et al, 1999), or discourses that have real effects (Hay, 1999), but there is an emerging view that it is also a way of interpreting the world (Mittelman, 2004; Cox, 2002; Brenner, 2004). Disciplines such as politics and sociology, to the extent that they have been built around the idea of the nation state, have found the idea of globalisation particularly challenging because it decenters the national scale (denationalization) as the dominant or primary scale in the organisation of the world polity and economy. It also decentres the state (de-statisation) as the dominant actor, largely because of the way in which neo-liberalism emphasises moving governing and power away from the state to an array of other actors, but most particularly those involved in the economy. Mittelman (2004: 28) summarises these as:

•	many problems cannot be explained as interactions among nation states, that is as international studies, but must be construed as global problems, e.g. organised crime, trans-border supply of education, infectious diseases;

•	globalisation constitutes a structural transformation in the world order – it requires both a temporal and a spatial analytic;

•	as a transformation, it involves a series of continuities and discontinuities with the past. In other words, it is not a total break, and nor are things the same as in the past;

•	new ontological priorities are warranted because of the emergence of supra-state and sub-state forces. It involves the global economy in its own right;

•	states are adjusting and reinventing themselves in relation to the evolving global structures differently; and

•	as a result of differences emerging in the global economy there are new tensions emerging around movements across borders and the governing of spaces (Mittelman, 2004: 28-29).

Globalists and Skeptics The origins and impacts of globalization are contested. Many believe that this 21st century version of globalization is merely another round, perhaps “over-heated,” of cross-border exchanges that have occurred for centuries. These exchanges are represented by increased trade, travel and migration, and cultural exchange (Abdi, Puplampu et. al., 2006; Tikly, 2001). The proponents of “globalization-is-not-new” cite other periods of globalization that witnessed trade expansion, massive migrations, growth in technology and colonization, especially in Africa. (Burbules and Torres, 2000; Held and McGrew, 2003; Lingard, 2000) Others argue that globalization is a unique phenomenon that is occurring because of the confluence of key factors, specifically changes in technology that speed communications and make information and knowledge instantly and democratically available to all via the Internet and the integration of national economies into a tightly knit, global web on a scale not seen before. These changes have led to changes in the political and cultural spheres. (Castells, 2000; Friedman, 2003) Transformations/Developments that have evolved One important result of globalization is the acceleration of changes of eras. It is denoted that human being having a history of more than one million years on earth took the first step to civilization with the settlement on land and therefore with the beginning of agricultural culture in 10,000 BC. The invention of writing in 4,000 BC has accelerated the development of human being. The widespread use of press in 14th century and the Reformation and the Renaissance movements followed by industrial revolution in the late 17th century have caused human being to develop but in the mid-20th century the concept of era starts to alter and pick up pace. The 1970s are called space era as a result of stepping on the Moon in 1969; 1980s are called communication era as a result of developments in communication through satellites; 1990s are called knowledge era-knowledge society as a result of the increased importance of knowledge and 2000s are called information era. In the information era, human being using computers can reach all new information online. The fact that 65% of the world trade volume in the beginning of 2000s is made online reveals the significance of this new concept. Information Tachnologies and Technology Flows Technologic development – developments in the production of goods and services, marketing and supply techniques (including firm organizational structures) takes place in the core of human progress and development. Technologic development at the national level occurs through invention and innovation, adaptation and modification of pre-existing technologies, and diffusion of technologies among firms, individuals and public sector. Statistical indicators can be confined in three major groups: scientific invention and innovation, diffusion of pre-existing technologies and benefiting new technologies. Another indicator is the measure of how much countries are exposed to foreign technologies. Measuring technology directly is difficult because it has no physical and easily countable presence such as pencils or automobiles. Contrary to services it has no well-defined price that allows measurement and summation either. Instead, it is embedded in products, intermediates, and processes. Consequently the studies trying to measure technology should use indirect techniques such as level of education, number of scientists and engineers, R&D expenditures and personnel, diffusion of technology, indicators of innovation (number of patents issued), ratio of high-tech activities in manufacturing value-added and exports, and national innovative capacity. If technologic diffusion in the world is examined under these three major groups of indicators, for the first group -scientific invention and innovation- scientific and technologic articles, patent and intellectual properties, and income from licensing statistics can be used. When analyzed, it is seen that these variables are related to income. According to 2003 data number of articles and patents per 1 million people in high-income countries are 83 and 36 times higher than those in low-income countries respectively. As of 2004 low-income countries’ income from intellectual properties and licensing is almost zero. Under the second group -utilizing older technologies- the statistics of per capita electricity consumption, phone lines per 100 people, phone call fees, highway and railway densities and airline usage can be used. When analyzed, although income has no effect on these statistics, culture and capacity has crucial implications on the usage of these variables. High-income countries consume 26 times more electricity (in 2004); have 18 times more phone lines and use it 20.7 times cheaper (in 2004); have 3.25 times more intense railways (in 2005); have 4.8 times more agricultural machines and tractors (in 2003); use airlines 60 times more (in 2004) than low-income countries. Third group is the utilization of new technologies. Under this group statistics of internet users, broad-band internet users, personal computer ownership, mobile phone ownership per 1000 people and internet band capacity can be used. When these statistics are analyzed, it is seen that income has direct effect as this kind of development is less costly and more elastic than older technologies necessitating infrastructure investments. High-income countries have 12 times more internet users (in 2005); 163 times more broad-band internet users (in 2005); have 53 times more personal computers (in 2004) and have 19 times more mobile phones (in 2004) than low-income countries per 1000 people. The relative efficiency of goods and services that an economy can produce with certain amount of labor and capital is called total factor productivity (TFP). In general, TFP is interpreted as the measure of production technology and its rate of growth as the measure of technical progress. International TFP comparisons reveal high productivity differences between high, and low and middle-income countries in the production of goods and services. As of 2005 average TFP in low-income countries is only 5% of the productivity in the USA. While this gap closes in low and lower-middle-income countries, upper-middle-income countries can only maintain their position against high-income countries. In the light of these indicators diffusion of technology has the following features: •	Although technologic levels of countries depend on their income levels, the nature of this relationship may differ according to the scope of technology analyzed. •	Although the level of technology is in the tendency to increase with income, the levels of technologies among countries converge. •	The level of technology may differ widely within the country. •	In the last decade the technology gap between middle and high-income countries narrowed. •	On average technology improved faster in low-income countries. •	The diffusion of technology between countries gets pace. •	As a consequence, the most important feature of the level of technology is the diffusion pace of technology within a country. Labor Hyper-Mobility and Global Distribution of Labor As an unprecedented number of people move, migration is one of the most important variables that set the conditions of globalization in the beginning of 21st century. In today’s mobile world there are many global tendencies effecting migration and its management. These are: •	Demographic tendencies, •	Economic differences between developed and developing countries, •	Trade liberalization necessitating more mobile labor force, in other words globalization, •	Communication network integrating all parts of the world, •	International migration. In the world as of 2005, 192 million people (49.6% of whom are women) live somewhere outside their place of birth. Between 1965 and 1990 the number of international migrants increased by 45 million –an annual growth rate of 2.1%. In 2006 the growth rate is 2.9%. The remittances of these migrants are estimated to be over $276 billion worldwide in 2006 whose $206 billion flow to developing countries. There are roughly 30-40 million illegal migrants constituting 15-20% of migrant stock in the world. In recent years, migration may shift according to the centers of attractions for labor migration. Table : Migration Statistics, 2005 # of Immigrants (Million People)	The Ratio of Immigrants to the Population of the Region Europe	64.1	8.8 Asia	53.3	1.4 North America	44.5	13.5 Africa	17.1	1.9 Latin America	6.7	1.2 Oceania	5.0	15.2 Source: [Available at http://www.iom.int/jahia/Jahia/pid/255], (Accessed 10.02.2008). As of 2005 the country that has the largest immigrant stock is the USA with 38.1 million immigrants. Russia and Germany follow her with 12.1 and 10.1 millions respectively. The countries that have the largest emigrant stocks are China, India and the Philippines with 35, 20 and 7 million emigrants respectively. In some regions in the world, the level of migrant stock shrinks: •	Although the level of Asian migrants reached 43.8 million in 2000 from its 28.1 million level in 1970, the share of Asia in the world migrant stock decreased to 25% from 34.5% in this period. •	Africa too experienced a decrease in international migrant share: from 12% in 1970 to 9% in 2000. •	The same holds for Latin America and the Caribbean’s (from 7.1% to 3.4%); Europe (from 22.9% to 18.7%) and the Oceania (from 3.7% to 3.3%). •	Between 1970 and 2000, only North America and the former USSR have achieved increases in their migrant shares (from 15.9% to 23.3% and from 3.8% to 16.8% respectively). The reason of the increase in the USSR is not the increase in the number of migrants, but the re-determination of the borders of the country. International stock of migrants concentrates in relatively low number of countries. 75% of international migrants are living in 12% of all the countries. In order to determine which one is most global among labor force, trade and capital flows one can examine the shares of these variables in the world labor force stock, production volume and total capital. As of 2004, while migration constitutes only 3% of total labor force stock, international trade constitutes roughly 13% of production and capital flows constitute 15-20% of total capital on average. Therefore the statistics reflect less global labor force than trade or capital. Economic Issues Globalization affects economies profoundly. It has strong effects on economic issues such as income, income distribution, capital formation, enterprises, production, competition and information flows. This part aims to identify these effects. 1.	Income, Income Distribution and Poverty In order to see the income differences between countries there is even no need for statistics. One watching TV can easily recognize that when Angola suffers famines football players in other countries may earn millions of dollars. In the world 3 million people die due to HIV, therefore 15 million children lose their parent or parents each year, at least 1.6 billion people live under unhealthy conditions, each year half a million women lose their life during pregnancy or birth. On the other hand it is estimated that there are 94,970 people whose financial assets exceed $30 million as of 2006 and their total financial assets worth more than $13.1 trillion, there are 9.5 million people whose financial assets exceed $1 million and their total financial assets worth more than $37.2 trillion. As of 2008 countries having per capita income of $905 or less are called low-income; those having per capita income between $906 and $3,595 are called lower-middle-income; those having per capita income between $3,596 and $11,115 are called upper-middle-income and those having per capita income of $11,116 or higher are called high-income countries. Accordingly among 210 countries with populations higher than 30,000 53 countries are low-income, 55 countries are lower-middle-income, 41 countries are upper-middle-income and 61 countries are high-income countries. In the year 2006 Norway had the highest nominal income of $66,530 and Burundi had the lowest -$100. In that year the average income in the world was $7,439. If these income figures are re-calculated according to purchasing power parities in order to eliminate price level differences among countries, as of 2008, the wealthiest individuals live in the USA with an average income of $44,260 and the poorest live in Burundi with $710. The world average is $10,218. If the income realizations are analyzed it can be seen that even in industrialized countries the average incomes were about $6,200 as of 1976. In other words, it is certain that the world has attained considerable income growth since then. Income growth rates differ among countries, so the income distribution. The studies on global income distribution are divided into two – those finding divergence and those finding convergence. In an example finding divergence, the income gap between African countries and western countries (the USA, Canada, Australia and New Zealand) was found to be 1 to 2.6 in 1820; 1 to 12 in 1980 and 1 to 20 in 1998. On the contrary there are also scientific studies finding convergence. The reason of such a division may be different conceptualization of income (nominal exchange rates or income customized by purchasing power parity), different measurement techniques (extreme values vs. Gini coefficient) and different data sources. Each measurement has its own advantages and disadvantages, so all of them may be evaluated as correct. The reason of the deterioration of the world income distribution may be: •	Higher growth rates in the OECD countries, •	Higher population growth in developing countries, •	Low output growth in rural China and India and in Africa, •	Increasing output and income differences between urban and rural parts of China and India –deterioration of income distribution within large countries, •	Variation in the terms of trade in favor of developed countries (the price of industrial and technologic goods that developed countries export increases faster than the price of goods and services that developing countries export). Differences in income levels are apparent in statistics. Countries may assign poverty threshold according to some norms. Besides, some international measurements are assigned for international comparisons. The best known of these is the ration of those who must live with less than $1 daily (absolute poverty) or +2 (poverty) to the population. These ratios are 70.8% and 92.4% respectively in Nigeria as of 2003. On the contrary the ratios are below 2% and 20% respectively in most countries. Although income distribution worsens among countries, poverty reduces. Today people get rid of absolute poverty but become poorer against developed countries have high income growths. This in turn causes the shrink of middle-class and resolution between rich and poor. 2. Capital, Finance, FDI and MNCs Scale and scope of the financial globalization before 1914 is really impressive. More than 60 government securities and shares of firms from almost whole continent and sectors were traded in European Stock Exchanges. London was undoubtedly the financial centre of the world but Berlin and Paris challenged her. During 30 years of classical gold-standard there were no restrictions on financial flows and cross-border financial flows reached incredible levels. Between 1880 and 1914 Britain exported 4 to 5% of her GDP on average. European countries following the footsteps of Britain started to export capital in the last quarter of 19th century and in the 20th century the USA merged into the first global capital market boom as a capital exporter. A similar boom in international finance has been experienced 30 years after the collapse of Bretton-Woods system that introduces fixed exchange rates and restrictions on capital account. Till the end of 1980s liberalization of capital flows has widened into developing countries. Global financial markets built up in 1990s. Nowadays financial globalization is a word that is used in daily life. In 2006 foreign direct capital constituted half of net capital flows into developing countries. FDI inflows in 2006 increased by 38% and reached $1.31 trillion (second highest score after $1.41 trillion in 2000). This increase, although in different scales, has been experienced in three regions, namely developed, developing and Southeast Europe and the Commonwealth of Independent States (CIS) countries. FDI inflows to developed countries increased by 45% and reached $857 billion. FDI stock increases each year as FDI inflows increase with the globalization process. While FDI stock in 1990 is estimated to be $1.78 trillion, as of the end of 2006 this figure is estimated to be $12 trillion. FDI Inflows Source: UNCTAD, 2007, p. 3. The largest 5 non-financial MNCs of the world are General Electric (USA), Vodafone Group (United Kingdom), General Motors (USA), British Petroleum Company PLC (United Kingdom) and Royal Dutch/Shell Group (United Kingdom and Netherlands). In the first 100 MNCs there are 12 German, 2 Hong Kong, 2 Korean, 1 Mexican, 1 Malaysian and 1 Singapore enterprises but no enterprises from Turkey, Czech Republic or Lithuania. MNC that has investments in highest number of countries is the German Deutsche Post AG with investments in 103 countries. As of 2004 there are 2,129; 9,225 and 42,753 foreign MNC affiliates in Turkey, Germany and China respectively. These affiliates create employment of 2.28 million and 24 million in Germany and China. On the contrary Germany has 22,997 affiliates all over the world. The total employment in the world that is created by foreign MNC affiliates is 21.52, 25.10 and 72.63 million in 1982, 1990 and 2006 respectively. The other side of the coin regarding employment is that MNCs’ foreign investments instead of domestic investments export employment. For example Germany creates an employment of 4.61 million abroad through her MNCs. That means Germany loses an employment of 2.33 million due to MNC type of production. This figure is 3.5 million in the USA and 3.71 million in Japan. While governments of the countries that make FDI take precautions against capital outflow, host countries attracting FDI use this capital in order to solve their unemployment problems. The highest bilateral FDI relationships in the world are between United Kingdom- USA, Hong Kong-China, USA-United Kingdom, Japan-USA and Germany-USA (first country is the investor and second is the host country and ranking is done according to FDI inflows). The FDI stock in these countries is $1.13 trillion in 2005. Lastly, countries may be ranked according to their FDI performances and potentials. Accordingly, China, Czech Republic, Lithuania, Hong Kong and United Kingdom have both high performance and potential; Germany, Turkey, Japan and USA have high potentials but low performances. Countries that have low potentials and performances are generally those from Africa. 3. Production and Competitiveness In recent years, global economy transformed with the elimination of obstacles against floes of goods, services, capital and labor and with the acceleration of technologic and scientific development. While the decreases in transportation and communication lowered the importance of location and promote enterprises to move their activities to low-cost locations, technologic developments create new business opportunities. This makes governments more sensitive in creating more business friendly environments and enhancing national competitiveness. Global Competitiveness Indices Rank of Country	2005	2006	2007 / 2008 Germany	6	8	5 Czech Republic	29	29	33 Lithuania	34	40	38 Turkey	71	59	53 Singapore	5	5	7 Korea	19	24	11 China	48	54	34 Source: WEF, 2007 and 2006. International competitiveness is a concept that is related to marketing. If countries compete in marketing their products, then production bears a sense. If the goods and services that the country produces cannot compete, the country’s production would have no-sense and she would prefer importation instead of domestic production. National competitiveness is measured by the “Global Competitiveness Index” of the World Economic Forum (WEF). Income Statistics Billion $	2001	2002	2003	2004	2005	2006 World	GNP	32,030	32,131	35,013	40,373	45,222	48,482 USA	GNP	9,930	10,145	10,927	12,059	12,913	13,446 Germany	GNP	1,978	1,899	2,115	2,545	2,876	3,018 Czech Rep.	GNP	588	613	746	940	1,141	1,295 Lithuania	GNP	11	13	15	19	24	27 Turkey	GNP	166	174	198	269	342	394 China	GNP	1,273	1,407	1,631	1,928	2,273	2,642

$	2001	2002	2003	2004	2005	2006 World	GNP Per Capita	5,216	5,168	5,563	6,338	7,016	7,439 USA	GNP Per Capita	34,800	35,180	37,570	41,060	43,560	44,970 Germany	GNP Per Capita	24,020	23,020	25,620	30,840	30,870	36,620 Czech Rep.	GNP Per Capita	5,750	6,010	7,310	9,210	11,150	12,680 Lithuania	GNP Per Capita	3,270	3,630	4,330	5,560	6,910	7,870 Turkey	GNP Per Capita	2,420	2,510	2,800	3,780	4,750	5,400 China	GNP Per Capita	1,000	1,100	1,270	1,500	1,740	2,010 Source: [Available at http://ddp-ext.worldbank.org/ext/DDPQQ/showReport.do?method=showReport], (Accessed 08.02.2008), Official Web Site of World Bank (Quick Query). As can be seen from Table countries may have large or narrow shifts in terms of ranking. What is important is the persistent tendency. These tendencies of increase or decrease in not persistent and after a threshold it may transform into narrow shifts. For example the first five ranks are pooled by 7-8 countries. The countries at lower ranks may achieve large shifts. These countries are those which utilize the globalization of production, technology and knowledge. Singapore, Korea, Hong Kong and Taiwan are of good examples. Malaysia and China follow them. Although she is behind these countries, Turkey is a promising country with her upward climb. In the era of rapid globalization countries have incomes as much as they can compete. The world income continuously increase but the shares that individual countries get vary. Therefore gaps between countries in terms of income and per capita income appear. Globalization gives countries that can integrate to world economy the chance to increase their income, but on the other hand intensifies competition and make integration to world economy more difficult. 4. Globalization of Knowledge As the openness of economies increases, more people and firms take part in the process of un-marketed connection intensification that includes knowledge and integration of knowledge, culture, ideology and technology flows. The globalization of knowledge may differ according to economy and sectors. There are four layers in the globalization of knowledge. These are: 1.	Local industrial specializations serving the world and specific-skill based activities: This title includes the most developed and location-specific activities of developed economies. a.	The winner gets all the goods and services: There are some functions that are fulfilled by globally known individuals or those who supply different services and are well-known in the sectors such as financial services, media, sports, science and medicine. The activities that are fulfilled by those individuals can be transferred into international markets with low costs. This can be done by disclosure of consumers about the activity and its features or by adaptation of consumption patterns such that these products will be demanded. b.	Export oriented specialized industrial cluster: Such specializations have increased in the last 25 years. Each country has some goods and services that she is good at due to her advantages attained by scale, resource based relative advantage, skill and know-how embedded in institutions. These types of activities are more important than they were as they locate in clusters and permanent technologic learning processes. In both cases knowledge does not globalize. Knowledge is anchored where it is generated and its replication is impossible. Therefore this kind of production results in specialization and trade. 2.	Globalization through displacement (Global product chains): It is the shift of non-location-dependent production to the low-labor-cost regions through FDI or licensing. In this case knowledge flow occurs from home country to host country. 3.	Non-tradables or quasi-tradables serving locally: Some products can not be traded as they are specific to regions. Therefore production is run where the consumption will take place. In other words production depends on location. In such conditions production is done in the market under globally-known brands. That is to say the mixture of global and local (glocalization) prevails. As MNCs standardized all the production processes flows of knowledge, particularly globalization of knowledge and ideas, appear in intangible assets. 4.	Debatable markets in manufacturing and service sectors: It is the production of standardized product such as durables, capital goods and other intermediate goods. As standardized products are produced with codified knowledge in general, the globalization of knowledge is pretty high. In such conditions economies of scale and vertical integrations may occur. In all types of production it is possible to talk about globalization. It is possible to talk about globalization even in the first layer that is the most closed one to the globalization of knowledge through spill-over effect and reverse-engineering. Development in the knowledge and communication techniques, the globalization of production and the intensification of competition trigger globalization of knowledge. The global knowledge in turn increases competition and therefore productivity. Environmental Issues Global environmental concerns have arisen with the recognition of the facts that ecologic processes are not restricted to national boundaries, environmental problems have cross-border effects (eco-systems and water basins that sustain life exceed national boundaries; air pollution diffuses all continents and oceans and there is only one atmosphere which yields protection against climate-preservation and harmful UV rays) and these problems have global effects, i.e. the disaster of Chernobyl effected many countries ranging from Bulgaria to Canada. In this framework, the concept for the ability that people should think and behave global bears a new dimension of global responsibility –not just for universal resources, but also for global justice. Therefore the connections between environment and globalization should be re-examined and taken into consideration. The negligence of these connections means misinterpretation of the dimensions and the nature of globalization and the loss of most important opportunities that may be beneficial for the solutions of hardest environmental problems that humankind faces. The fact that the world economy globalizes with the integration of national economies into international economy causes some pressures on global environment and natural resources; this in turn makes the sustainability of environment difficult and proves the dependency of human on environment. A global economy may bear global externalities and may worsen global inequality. The global nature of environment bears the necessity of global management of environment and in fact causes the infrastructure formation of international treaties and institutions and the growth of these. While the importance of the relationship between globalization and environment is explicit, the level of knowledge on how these two dynamics interact with each other is low. The literature on globalization and environment is uncertain (debating only the generalities); myopic (focused only on trade-related connections) and/or partial (focused only on the effects of globalization on environment, but not the reverse). However, the relationship between environment and globalization is bidirectional. Like globalization has effects on environment, environment also has effects on globalization. In this framework five striking interactions of the environment-globalization relationship are as follows: 1.	Rapid increase in global economic activities and the increase in demand for crucial and limited natural resources may affect the process of continuous increase of economic wealth negatively. Some studies revealing that the productive capacity of nature is exceeded by 25-30% or the fact that annually 2.5 million people lose their life because of environmental problems involving air pollution, unhealthy water and low quality of health services in the Asia-Pacific region highlight the significance of the situation. 2.	Interrelated processes of globalization and environmental deterioration form new threats for already insecure world. They affect the fragility of eco-systems and societies, at least the most fragile ones. The poorest societies face the highest risk. For example, even the adverse effect of climate changes excluded, the number of people that will be adversely affected from water shortage is expected to reach 5 billion in 2025 from its current level of 1.7 billion. 3.	Newly prosperous and the established wealthy should learn about the limitations of the ecological space where they live in and should behave consistent with the needs and rights of the people who are not that much lucky. In this context, the “workshop” metaphor (production in developing countries like China and consumption in wealthy regions like Europe and North America) seriously requires placing the “workshop” within a supply chain that is (a) really global in nature, and (b) not just an economic supply chain but an environmental one. 4.	Consumption – both in the North and the South – not only determines global environment, but also the future of globalization. 5.	Concerns on global markets and global environment will mix each other and become more interdependent. Most challenging environmental problems the world faces today are caused by developed or developing countries that are industrialized or industrializing. In 1990 the USA and China emitted 4,818.3 and 2,398.9 metric tones of carbon dioxide (CO2) respectively. They emitted 6,045.8 and 5,007.1 metric tones of CO2 respectively in 2004. Therefore in this period USA’s CO2 emission increased by 20% while China’s emission increased by more than 100%. Between 1990 and 2004 world CO2 emission increased by 2% on average annually while the rate of increase in developing countries is 5.7% and in OECD countries it is 1.3%. It is possible to say that as a result of globalization the shift of production into developing countries cause this difference. On the other hand more than half of the total of CO2 is emitted by a few developed countries. Therefore one of the important movements against environmental problems (particularly against global warming), Kyoto Protocol which was signed in 1997 in Japan and have 174 member countries has not been signed yet by the mostly industrialized country, the USA. 19 countries including Turkey have not announced their positions. Finally, although there are organs that determine the problems in the system caused by environment and globalization, the endeavor of these organs are divided and lacks coordination and consistency. Efforts and instruments for the holistic processing of the “system” either missing or poorly exploited. Social Issues As of 2006 total world population is 6.52 billion. China and India have the highest populations with 1.31 billion and 1.11 billion. Like income, population is not distributed evenly in the world. While 6,728 people live in Hong Kong per km2 and 6,376 people in Singapore, only 2 people live in Mongolia and Namibia, and 3 people in Australia. The level of education which can be qualified as infrastructure in the way of development may differ greatly among countries. While countries like Latvia and Lithuania have a literacy rate of 100%, the rate is only 24% in Mali. Another indicator for education is the rate of primary school completion. In some countries this rate may be 100% or higher (because of the education of people outside the assigned age group) but as of 2005 it is only 23% in the Republic of Central Africa. When the data of 1991 and 2005 are compared an improvement in the rate of primary completion can be seen easily. The largest increase was experienced in Venezuela with an increase from 43% to 92%. The differences in the level of education are closely related to the investments of these countries into education. While in some countries expenditure on education to GDP ratios are below 1% (Indonesia, 0.9%), some countries have a ratio above 10% (Botswana, 10.7%). Developing countries increase the share of education expenditure in public expenditure. Therefore developing and developed countries converge in terms of education. Today there is no gender discrimination in the primary and secondary education. As of 2005, the Republic of Central Africa has the worst ratio of 60% (the rate of female students to male students), but she experienced a significant development from the ratio of 40% in 1991. The life expectancy at birth differs among countries according to these countries’ health, environmental, cultural and wealth levels. For example, as of 2005 life expectancy for males is 39 and 38 for females in Zambia. At the other end is Hong Kong with life expectancy of 79 and 85 for males and females respectively. When the mortality rate under the age of 5 (per 1000 people) is analyzed it is seen that the world average decreased from 95 in 1991 to 75 in 2005. The worst statistics for infant mortality are experienced unfortunately in developing countries such as Sierra Leone, Nigeria, the republic of Central Africa and Mali. Even in these countries the mortality rates improve. In this improvement, assistance by various health and aid institutions to the developing countries and globalization of knowledge and health services has significant contributions. When the health expenditure per capita statistics are analyzed it is seen that there is 400 fold gap between the highest (USA with $6,096) and the lowest (the Republic of Congo with $15) expenditures as of 2004. This huge gap creates differences even in the rates of infant vaccination against tuberculosis and measles (only 40% and 23% of infants were vaccinated against tuberculosis and measles in Chad in 2005). A similar view prevails in the health services and improved water source utilization. Although 100% of people in developed countries benefit from these services, the rates in developing countries are about 10% and 50% respectively. What is satisfactory is that these ratios are improving. Other developments International trade is the exchange of capital, goods, and services across international borders or territories. In most countries, such trade represents a significant share of gross domestic product (GDP). Industrialization, advanced transportation, multinational corporations, offshoring and outsourcing all have a major impact on world trade. The growth of international trade is a fundamental component of globalization. An absolute trade advantage exists when countries can produce a commodity with less costs per unit produced than could its trading partner. By the same reasoning, it should import commodities in which it has an absolute disadvantage. While there are possible gains from trade with absolute advantage, comparative advantage – that is, the ability to offer goods and services at a lower marginal and opportunity cost – extends the range of possible mutually beneficial exchanges. In a globalized business environment, companies argue that the comparative advantages offered by international trade have become essential to remaining competitive. International tourism Tourism is travel for recreational, leisure or business purposes. The World Tourism Organization defines tourists as people "traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes".There are many forms of tourism such as agritourism, birth tourism, culinary tourism, cultural tourism, eco-tourism, extreme tourism, geotourism, heritage tourism, LGBT tourism, medical tourism, nautical tourism, pop-culture tourism, religious tourism, slum tourism, war tourism, and wildlife tourism. Globalization has made tourism a popular global leisure activity. The World Health Organization (WHO) estimates that up to 500,000 people are in flight at any one time. Globalization has continually increased international competition in sports. The FIFA World Cup, for example, is the world's most widely viewed sporting event; an estimated 700 million people watched the final match of the 2010 FIFA World Cup held in South Africa. According to a 2011 A.T. Kearney study of sports teams, leagues and federations, the global sports industry is worth between €350 billion and €450 billion (US$480-$620 billion). This includes infrastructure construction, sporting goods, licensed products and live sports events. Illicit international trade The black market in rhinoceros horn reduced the world's rhino population by more than 90 percent over the past 40 years. "Black markets" and organized crime often operate on a transnational basis, with global sales totaling almost US$2 trillion annually as of 2013. In 2010, the United Nations Office on Drugs and Crime (UNODC) reported that the global drug trade generated more than US$320 billion a year in revenues. The UN estimated that as of 2000 there were more than 50 million regular users of heroin, cocaine, and synthetic drugs worldwide. The international trade of endangered species was second only to drug trafficking among smuggling "industries". Traditional Chinese medicine often incorporates ingredients from all parts of plants, the leaf, stem, flower, root, and also ingredients from animals and minerals. The use of parts of endangered species (such as seahorses, rhinoceros horns, saiga antelope horns, and tiger bones and claws) resulted in a black market of poachers who hunt restricted animals. In general, globalization may ultimately reduce the importance of nation states. Supranational institutions such as the European Union, the WTO, the G8 or the International Criminal Court replace or extend national functions to facilitate international agreement. Some observers attribute the relative decline in US power to globalization, particularly due to the country's high trade deficit. This led to a global power shift towards Asian states, particularly China, which unleashed market forces and achieved tremendous growth rates. As of 2011, the Chinese economy was on track to overtake the United States by 2025. Increasingly, non-governmental organizations influence public policy across national boundaries, including humanitarian aid and developmental efforts. Philanthropic organizations with global missions are also coming to the forefront of humanitarian efforts; charities such as the Bill and Melinda Gates Foundation, Accion International, the Acumen Fund (now Acumen) and the Echoing Green have combined the business model with philanthropy, giving rise to business organizations such as the Global Philanthropy Group and new associations of philanthropists such as the Global Philanthropy Forum. The Bill and Melinda Gates Foundation projects include a current multi-billion dollar commitment to funding immunizations in some of the world's more impoverished but rapidly growing countries. and hundreds of millions of dollars in the next few years to programs aimed at encouraging saving by the world's poor. The Hudson Institute estimates total private philanthropic flows to developing countries at US$59 billion in 2010.[153] As a response to globalization, some countries have embraced isolationist policies. For example, the North Korean government makes it very difficult for foreigners to enter the country and strictly monitors their activities when they do. Aid workers are subject to considerable scrutiny and excluded from places and regions the government does not wish them to enter. Citizens cannot freely leave the country. Internet Both a product of globalization as well as a catalyst, the Internet connects computer users around the world. From 2000 to 2009, the number of Internet users globally rose from 394 million to 1.858 billion. By 2010, 22 percent of the world's population had access to computers with 1 billion Google searches every day, 300 million Internet users reading blogs, and 2 billion videos viewed daily on YouTube. According to research firm IDC, the size of total worldwide e-commerce, when global business-to-business and -consumer transactions are added together, will equate to US$16 trillion in 2013. IDate, another research firm, estimates the global market for digital products and services at US$4.4 trillion in 2013. A report by Oxford Economics adds those two together to estimate the total size of the digital economy at $20.4 trillion, equivalent to roughly 13.8% of global sales. While much has been written of the economic advantages of Internet-enabled commerce, there is also evidence that some aspects of the internet such as maps and location-aware services may serve to reinforce economic inequality and the digital divide. Electronic commerce may be partly responsible for consolidation and the decline of mom-and-pop, brick and mortar businesses resulting in increases in income inequality. An online community is a virtual community that exists online and whose members enable its existence through taking part in membership ritual. Significant socio-technical change may have resulted from the proliferation of such Internet-based social networks. Economic globalization is the increasing economic interdependence of national economies across the world through a rapid increase in cross-border movement of goods, service, technology and capital. Whereas the globalization of business is centered around the diminution of international trade regulations as well as tariffs, taxes, and other impediments that suppresses global trade, economic globalization is the process of increasing economic integration between countries, leading to the emergence of a global marketplace or a single world market The challenges of globalization as a result of transformation The advance of globalization has not been a smooth or a pain-free process. The changes it has caused, or is perceived to have caused, have spurred a political backlash—dramatically evident in the street protests that plagued the WTO ministerial in Seattle. Two of the most common complaints against globalization are that it has undermined labor and environmental standards, and that it has exacerbated the gap between rich and poor, both among and within countries. Critics of globalization warn of a destructive “race to the bottom,” as advanced nations are forced to weaken labor and environmental standards to compete with less-regulated producers in developing nations. This theory rests on the assumption that lower standards give LDCs a significant advantage in attracting global capital and gaining export markets at the expense of more developed countries. The OECD has found that, in practice, a lack of core labor standards plays no significant role in attracting foreign investment or in enhancing export performance. The OECD did find strong evidence “that there is a positive association over time between sustained trade reforms and improvements in core standards.”19 In other words, trade liberalization encourages higher standards, not lower standards. If anything, the real race may be toward the top. For reasons of internal efficiency as well as public perceptions, multinational companies tend to impose higher standards on their overseas production plants than those prevailing in local markets, thus raising average standards in the host country. Free trade and domestic liberalization—and the faster growth they create—are the best ways to encourage higher standards. As per capita incomes rise in less developed countries, so does the domestic political demand for higher standards, and the ability of the productive sector to pay for them. Punishing LDCs with trade sanctions would only cripple their long-term ability to raise domestic labor and environmental standards. Some environmental activists complain that the global trading system, as embodied in the WTO, favors free trade at the expense of environmental protection. But WTO rules place no restraints on the ability of a member government to impose any environmental regulations determined to be necessary to protect its own environment from domestically produced or imported products. Article XX of the General Agreement on Tariffs and Trade 1994, the basic charter of the WTO, plainly states that members may impose trade restrictions “necessary to protect human, animal, or plant health.” The Sanitary and Phytosanitary Agreement of the Uruguay Round does require that such restrictions be based on sound scientific evidence—a commonsense requirement necessary to discourage the use of health and safety issues as a cover for protectionism. If WTO members are found to be in violation of their commitments, they remain free as sovereign nations to simply ignore any adverse WTO rulings against domestic regulations that impact trade. A prominent example is the European Union’s ban on the sale of beef from cattle treated with growth hormones. The EU has repeatedly lost in the WTO, but it has no plans to lift its ban, even though it has produced no scientifically sound evidence that the banned beef poses any hazard to public health. The United States retaliated against the EU in May 1999 by imposing sanctions on $ 117 million worth of imports from Europe, but retaliation as a weapon of trade disputes existed long before the WTO. Antitrade environmental activists complain that several decisions by the WTO have undercut U.S. environmental regulations. In the so-called Shrimp-Turtle case, the WTO ruled against a U.S. ban on shrimp from countries the United States judged were not adequately protecting sea turtles from being caught and killed in shrimp nets. In an earlier, similar case, the WTO had ruled against a U.S. ban on tuna from Mexico that the United States claims was caught through a process that endangers dolphins. Environmental critics of the WTO point to these two cases as proof of their claim. In both these cases, however, the United States remains free to simply ignore the WTO ruling and continue enforcing the law as is. The affected nations could in theory retaliate with trade restrictions of their own if the United States refuses to comply, but that option would always exist even if the WTO did not. And in the case of the Shrimp- Turtle decision, it was not the law itself that ran afoul of WTO rules but the discriminatory way the United States went about implementing it, for example giving Latin American suppliers more time than Asian suppliers to comply with the law. Expanding trade is not merely compatible with high standards of environmental quality but can lead directly to their improvement. As a country sees its standard of living rise through economic liberalization and trade expansion, its industry can more readily afford to control emissions and its citizens have more to spend on the “luxury good” of improved environmental quality, above what they need for subsistence. And as economic growth creates a growing, better- educated middle class, the political demand for pollution abatement rises. Today the most restrictive environmental laws are maintained in developed countries that are relatively open to trade. This helps explain the so-called Environmental Kuznets Curve, where environmental quality in a developing nation initially deteriorates as the economy begins to industrialize but then improves after its citizens reach a certain standard of living. Research by Alan Krueger and Gene Grossman indicates that the turning point occurs at about $ 5,000 per capita: “We find no evidence that environmental quality deteriorates steadily with economic growth. Rather, for most indicators, economic growth brings an initial phase of deterioration followed by a subsequent phase of improvement.” By $ 8,000 per-capita income, the authors found, almost all the pollutant categories had begun to improve.20 The United States itself is a classic example of the benign effect of trade and growth on the environment. It has simultaneously one of the most open economies and one of the cleanest environments in the world. In the past decade, the United States has continued to open its economy further, signing the North American Free Trade Agreement and shepherding the creation of the World Trade Organization. Meanwhile, two-way trade and foreign investment continue to climb as a percentage of GDP. This liberalization of international trade and investment has been accompanied by ever-rising environmental standards. According to the President’s Council on Environmental Quality, mean ambient concentrations of both sulfur dioxide and carbon monoxide in the atmosphere of the United States have dropped by nearly 40 percent since 1988. During that same period, the annual number of “bad air days” in major U.S. cities has dropped by two-thirds. The direct discharge of toxic water pollutants is down dramatically as well. Since the early 1970s, during a time of growing globalization of the U.S. economy, real spending by government and business on the environment and natural resource protection has doubled.21 Despite the rhetoric heard on the streets in Seattle, expanding global trade has not spurred a race to the bottom on environmental regulation or quality. In fact, the evidence points in the opposite direction. The gap between rich and poor Another challenge of globalization is the perception that economic liberalization has exacerbated the gap between rich and poor countries, and between the rich and poor within countries that have liberalized. The perception that the gap has been growing, both among and within nations, is broadly true. The connection with globalization is much less clear. While some previously poor countries have managed to close the gap with the more advanced economies, a disturbingly large number of countries have fallen further behind. According to the World Bank, the ratio of income per capita in the richest countries compared with that in the poorest rose from 11 in 1870 to 38 in 1960 to 52 in 1985.22 Concern about the “marginalization” of poor countries in the global economic system has rightly focused on sub-Saharan Africa. Since 1976, the region’s share in world trade has fallen from 3 percent to slightly more than 1 percent in the 1990s.23 While the flow of foreign direct investment to LDCs has risen dramatically in the 1990s, sub-Saharan Africa has been almost entirely overlooked. But the phenomenon of marginalization has not been a random event. Poor nations that have fallen further behind the rich nations are almost uniformly those that have clung to state-directed and inward- oriented economic policies. Sub-Saharan Africa has lagged behind the rest of the world in economic growth in significant part because its markets remain among the most closed in the world. Its governments have neglected domestic infrastructure such as roads and have distorted their domestic economies with subsidies, high taxes, and regulations. Granted, many African nations must also bear the burden of civil and tribal strife, poor soil, and inaccessible geography. But domestic economic policy must be considered a key variable in explaining the region’s failure to develop. Those African nations that have implemented more open, stable, and market-friendly policies in the last decade—such as Uganda, Botswana, and Mauritius—have achieved growth rates exceeding those of the advanced nations. The most obvious variable that separates countries that are closing the gap from those falling further behind is their own domestic policy choices. Simply put, nations that adopt the “Golden Straitjacket” begin to catch up with the advanced economies, while those that reject it become increasingly marginalized. In their Economic Freedom of the World: 1997 Annual Report, Gwartney and Lawson found strong empirical evidence linking growth rates to economic freedom. The authors measured seventeen categories of economic policy for each of 115 countries— covering monetary policy, property rights, government spending and regulation, and restraints on foreign trade. They found a strong correlation between economic freedom and both economic growth and per- capita GDP. The authors found that each quintile of greater economic freedom corresponded with faster growth and higher per-capita GDP. Nations in the top quintile in 1995 grew almost three times faster (2.9 percent annually) on average than those in the middle quintile (1.1 percent). Those in the bottom quintile saw their economies shrink an average of 1.9 percent.24 There is nothing inherent in the process of globalization that would cause the gulf between rich and poor nations to expand. In fact, the access to capital, new technology, and larger markets that comes with global integration should be expected to accelerate the convergence of less developed regions of the world and to make global trade and wealth less concentrated across countries. This dynamic has been at work inside the United States, which has itself been a continent-sized free- trade area for more than two centuries. At the turn of the last century, in 1900, per-capita income varied widely across the four major regions of the United States. While incomes in the Midwest were close to the national average, at 103 percent, incomes in the Northeast were 139 percent above the national average and those in the West were 153 percent above. In contrast, income levels in the South were only 54 percent of the national average. One century later—thanks in large measure to the free flow of goods, capital, and people within U.S. borders—regional disparities have shrunk dramatically. Today, income levels in the Northeast are only 117 percent above the national average, incomes in the Midwest and West are within 2 percentage points of the national average, and incomes in the South as a share of the national average have risen to 90 percent.25 Evidence of a similar trend exists among countries that have chosen to join the global economy. A 1998 study sponsored by the WTO found that global trade and investment flows have actually become less concentrated in the last two decades when adjusted for the growth in world trade. Moreover, the authors found that the concentration of trade and financial flows has fallen among countries that have more rapidly liberalized, whereas it has increased among those that have integrated more slowly. “We argue this shows that marginalization of individual countries from world markets can be mostly explained by inward-looking domestic policies,” they concluded, “and therefore that marginalization is not inherent to the globalization process.”26 Of course, the advanced economies have not always been helpful. Despite progress in the post-war era, advanced-economy trade barriers remain stubbornly high against clothing, textiles, and agricultural goods, the very products in which LDCs have a natural comparative advantage. A recent study by Thomas Hertel of Purdue University and Will Martin of the World Bank found that the average tariff that rich countries impose on manufacturing goods from poor countries is four times higher than the average tariff rich countries impose on each other’s goods.27 One of the many disappointments left in the wake of the failed WTO talks in Seattle has been the indefinite postponement of negotiations to lower barriers to poor-country exports. It would be wrong, however, to blame advanced-country trade barriers for the lack of economic progress in so many LDCs. After all, the Four Tigers of East Asia managed to hop on the income-convergence conveyor belt in the face of advanced-country trade barriers that were even higher than they are today. For poorer nations, the global economy has become like one of those giant conveyor belts that speed passengers through airport terminals. Globalization can accelerate a country’s development, but only if its policymakers allow its citizens to hop onboard by opening the economy to international trade and investment. This conveyor belt of growth provides new technology, investment capital, domestic competition, expanding export markets, and powerful incentives for further domestic policy reform. The result is faster growth and dramatic improvements in living standards within a generation or two—as we have seen most strikingly in the Far East. The fact that some nations insist on walking their own, uphill, isolated, and often dead-end path is not the fault of globalization but of their own policymakers. The story of income inequality within nations is more complicated. The trend within the United States and other developed nations has been toward a wider earnings gap between the lowest- and the highest-paid workers. The gap has been driven primarily by a difference in worker skills rather than by international trade. An information-based economy will naturally produce jobs that require more specialized and technical skills than a less developed economy, which is more weighted toward agriculture and industry. As a result, in the United States in the last twenty-five years, the gap in income has been increasing between workers with college degrees and those with only high school diplomas. International trade has probably contributed something to this trend in the United States, because trade should in theory accelerate the transition toward industries that rely more intensively on high-skilled labor. But the primary engine of change in the U.S. economy during that time has been technological innovation. The relatively larger importance of technological change compared with trade can be seen in recent trends of job displacement. U.S. Labor Department surveys show that three-quarters of Americans displaced from their jobs in 1995—97 were working in sectors of the economy that are relatively insulated from trade.28 Even in the more trade-intensive manufacturing sector, technological change rivals trade as the principal engine of labor-market change. International trade is often blamed for job displacement in manufacturing when in fact the cause is rising productivity. This explains why the number of workers employed in manufacturing in the United States has remained stable in the 1990s at slightly more than eighteen million, at a time when manufacturing output has been rising an average of 3.8 percent a year in the decade (and 5.5 percent a year since 1994). As with employment, technology is also the chief explanatory variable of changes in income inequality. William Cline, in a study on the impact of trade on wages, concluded that international trade and immigration “are unlikely to have been the dominant forces in rising wage inequality.”29 After surveying the literature and employing his own Trade and Income Distribution Equilibrium model, Cline concludes that skills-based technological change is by far the largest identifiable contributor to the growth in income inequality. International trade and immigration together “contribute only about one-tenth of the gross (total) unequalizing forces at work over this period.”30 If curbing inequality is the aim, trade policy is a poorly suited instrument for achieving it. The right response to this growing demand for higher skills is not to stifle change through trade barriers but to raise the general skill level of the workforce. Instead of a futile effort to “save” the jobs of yesterday, the focus should be on preparing workers to meet the rising demands of the labor market for specialized skills. Expanding economic liberty Globalization is really just shorthand for expanding economic liberty across international borders. The debate it has spawned is the repackaging, on a global scale, of the long-running argument over whether the way to prosperity is through free markets or centralized government planning, or some “third way” between the two. If you believe free markets unleash forces that are destructive to human happiness and must be controlled by active government intervention, you will tend to see globalization as a threat. If you believe that free markets, operating within a rule of law, are essentially self- regulating and lead, in the words of Adam Smith, “as if by an invisible hand” to a greater general prosperity, then you will tend to see globalization as a blessing. The argument that globalization is much more the latter than the former is supported not only by economic theory but by decades of hard-earned experience. A growing majority of nations have made their peace with globalization based not on whim or blind ideology but on the manifest failure of any alternative. They have come to realize that the spread of free markets and the institutions that support them offer the best hope that the fruits of prosperity can be shared by a wider circle of mankind. Globalization will continue to reinforce the interdependencies between different countries and regions. It can also deepen the partnership between the advanced countries and the rest of the world. And to support this partnership in a mutually beneficial way, the advanced countries could help to further open their markets to the products and services in which the developing world has a comparative advantage. In addition, the reform efforts of the African countries will need to continue to be supported by adequate financing on concessional terms. In this regard, I am pleased to note that the Fund has put the ESAF, our concessional lending facility, on a permanent footing, so that it can continue to support reform efforts of the poorer countries, especially in Africa. Moreover, the Fund and the World Bank have recently begun implementing the framework for action to resolve the external debt problems of heavily indebted low-income countries (HIPC), including their large multilateral debt. Three African countries--Burkino Faso, Côte d'Ivoire, and Uganda--are among the first countries to be considered under the Initiative. The challenge facing the developing world, and African countries in particular, is to design public policies so as to maximize the potential benefits from globalization, and to minimize the downside risks of destabilization and/or marginalization. None of these policies is new, and most African countries have been implementing them for some time. In particular, sub-Saharan Africa has made substantial progress toward macroeconomic stability: •	there has been continued improvement in overall growth performance. Average real growth has increased from less than 1 percent in 1992 to over 5 1/2 percent in 1996, and this positive trend is expected to continue; •	there has been some success in bringing down inflation--many countries have already achieved single digit inflation rates, and for the region as a whole, average inflation is expected to fall from the peak of 60 percent in 1994 to 17 percent in 1997; •	countries have also reduced their internal and external imbalances. The external current account deficit has fallen from an average of 15 1/2 percent of GDP in 1992 to about 9 percent projected for this year, while the overall fiscal deficit has been cut from almost 12 percent of GDP to 6 percent over the same period. African governments have also made considerable strides in opening their economies to world trade. A good indicator of this is the fact that 31 Sub-Saharan African countries have accepted the obligations of Article VIII of the Fund's Articles of Agreement, almost all of them since 1993. Most countries have moved ahead with trade and exchange liberalization, eliminating multiple exchange rates and nontariff barriers, and also lowering the degree of tariff protection. A recent qualitative study by the African Department of the Fund indicates that the number of countries in Sub-Saharan Africa with a "restrictive" exchange regime declined from 26 in 1990 to only 2 in 1995, while the number of countries with a "substantially liberal" trade regime rose from 26 to 38 over the same period. Finally, the restructuring of many African economies is gaining momentum. Throughout the continent, government intervention in economic activity is on the wane. Administrative price controls are being reduced and agricultural marketing has been widely liberalized. The process of restructuring and privatizing state enterprises has been underway for some time in most countries, though with varying speed and degrees of success. And finally, fiscal reform is gaining ground--African countries are taking firm steps to rationalize their tax systems, to reduce exemptions, and to enhance administrative efficiency. At the same time, they are also reorienting expenditures away from wasteful outlays towards improved public investment and spending on key social services, particularly health and basic education. Business practices and government policies to address the above challenges

Maintaining macroeconomic stability and accelerating structural reform As the continent enters the "second phase of adjustment", the emphasis must be to maintain economic stability and to reinforce the implementation of structural policies that will make the economies more flexible, encourage diversification, and reduce their vulnerability to exogenous shocks. These include further reforms in the areas of public enterprise activity, the labor markets, and the trade regime. Governments must also ensure that public services--including transportation networks, electricity, water, and telecommunications, but also health services and education--are provided in a reliable and cost-efficient fashion. Ensuring economic security Establishing the right framework for economic activity addresses the second requirement of policy--removing the sense of uncertainty that still plagues economic decision-making in most of Africa. The direction and orientation of future policy must be beyond question. This requires the creation of a strong national capacity for policy formulation, implementation and monitoring. Moreover, the transparency, predictability and impartiality of the regulatory and legal systems must be guaranteed. This goes well beyond the respect of private property rights and the enforcement of commercial contracts. It also involves the elimination of arbitrariness, special privileges, and ad-hoc exemptions, even where these are intended to encourage investment. Reforming financial sectors As the Interim Committee observed during its April meetings in Washington, an open and liberal system of capital movements is beneficial to the world economy. However, rising capital flows place additional burdens on banking regulation and supervision, and require more flexible financial structures. This aspect of globalization thus confronts developing countries with a new challenge--to accelerate the development and liberalization of their financial markets, and to enhance the ability of their financial institutions to respond to the changing international environment. Much remains to be done to reform and strengthen Africa's financial systems, many of which are weak and poorly managed. Achieving good governance National authorities should spare no efforts to tackle corruption and inefficiency, and to enhance accountability in government. This means reducing the scope of distortionary rent-seeking activities; eliminating wasteful or unproductive uses of public funds; and providing the necessary domestic security. Many African countries will also have to undertake a comprehensive reform of the civil service, aimed at reducing its size while enhancing its efficiency. In short, governments must create confidence in their role as a valued and trusted partner of private economic agents. A partnership with civil society Finally, African governments will need to actively encourage the participation of civil society in the debate on economic policy, and to seek the broad support of the population for the adjustment efforts. To this end, governments will need to pursue a more active information policy, explaining the objectives of policies and soliciting the input of those whom the policies are intended to benefit. In the Ugandan context National level

There should be a deliberate policy to universalize education in Uganda with secondary school education as a minimum, in order to give Ugandans an opportunity to harness the benefits of globalization.

To benefit from the Foreign Direct Investments promised by globalization, Uganda has to take initiatives into areas such as joint development of the local private investment environment. Local entrepreneurship has to team up effectively to ensure the capacity building of the local private sector.

There is need to diversify into more dynamic exports, which fetch higher in the world market, such as hi-tech products, and depart from traditional primary products. Uganda has to acquire the infrastructure and capacity to develop industrial exports.

Similarly, there is need to take advantage of the opportunities posed by technology as the main driving force behind globalization. Since agriculture is crucial for welfare, food security, employment, growth and foreign exchange earnings, there is need to adopt new technologies to close the knowledge gap in agricultural technology.

Uganda’s labour markets must be made more flexible, to respond quickly to opportunities like outsourcing, out-contracting and temporary part-time work.

Regional level

Countries can improve their bargaining position through active membership to regional and continental organizations such as the African Union, to set common goals and objectives.

There should also be a harmonization of human resource development policies and the establishment of productivity centres in the East African region.

An East African Inter University Council should be established and strengthened, to facilitate human resource development.

International level Market access is a key issue in making globalization fair and ensuring the equitable distribution of its benefits. There is need to resolve, at the international level, the issue of farm and agricultural subsidies given to farmers in developed countries, eroding whatever comparative advantage farmers in developing countries have.

There is need to oppose the Trade Related Intellectual Property Rights (TRIPS) agreements which oblige countries to introduce intellectual property rights laws that are similar to those in developed countries. Adopting these agreements will exert legislative pressure on the already stretched governance process. It will stifle indigenous technological development through imitation and could lead to an increase in the prices of various essential products previously produced using limitation techniques and technology.

Governments of poor countries should pursue an active policy of exporting labour as a means of coping with domestic unemployment; and foreign debt, through their foreign exchange remittances back home, which peaked at US$ 70bn in 1998. Uganda could learn from the examples of South Korea and the Philippines, who have well-established labour export programmes and similarly turn its brain drain into brain-gains.

Conclusion and the way forward Globalization is a theory and a process. As a theory, it seeks to explain the integration of economies and societies around the world as they are knit together by travel, language, values and ideas, trade, labor and financial flows, communication, and technology. It also addresses the political interconnectedness of nations via global governance arrangements and expanding cultural exchange via the Internet, mass media, travel, etc. As a process, globalization affects all countries, some more favorably than others, in terms of economic growth, national sovereignty, and cultural identity. There is a need to share experiences from Uganda and other countries at both the regional and international level, in order to devise a working document of practical solutions. More awareness of globalization needs to be created in Uganda, through formal and informal channels of communication and education. This will help generate more debate, especially among stakeholders and at the grassroots level, and help define Uganda’s place in a globalized world. Globalization is an inevitable aspect of the current world order. There is need for political will and support to implement the resolutions raised during this dialogue, and those that will be raised in similar fora locally, regionally and internationally.

References0

Castells, M. (1999) Information Technology, Globalization and Social Development, UNRISD Discussion Paper No. 114, September, Geneva: UNRISD.

Cerny, P. (1995) ‘Globalisation and the changing logic of collective action’, International Organisation, 49 (4): 595-625.

Dicken, P. (1986) Global Shift: Industrial Change in a Turbulent World, London: Harper and Row.

Hay, C. (1999) ‘What place for ideas in the structure-agency debate? Globalisation as a process without a subject’, Paper presented at the Annual Conference of the British International Studies Association, University of Manchester, 20-22 December.

Harvey, D. (1989) The Condition of Postmodernity, Oxford: Blackwell.

Mittelman, J. (2000) The Globalization Syndrome, Princeton: Princeton University Press. Mittelman, J. (2004) Whither Globalization?: The Vortex of Knowledge and Ideology, London: Routledge.

Poster, M. (1990) The Mode of Information: Poststructualism and Social Context, Chicago: University of Chicago Press.

Welcome
Namungalwe Area Cooperative Enteprise is a second tie marketing coopertive, located in Eastern Uganda,  Iganga district Namungalwe sub county in Namungalwe parish,  its membership is composed of 5 member Rural Producer Organisation (RPOs) with a total membership of 574 individual members. It was started and registered in 2011 under the Co-operative Institutions Statute,1991 and Co-operative Regulations,1992. Namungalwe is a farmer owned and democratically controlled enterprise governed by a 9 member committe which is elected at the Annual General Meeting (AGM) every year which is the supreme policy marking body of Namungalwe. The Vision of Namungalwe is A competent secondary cooperative marketing members produce profitably and the  Mission:To provide Agricultural support services through Training, Bulking of Inputs and Produce, Value Addition and Market Linkanges. The cooperative was formed for the following objectives •	To strengthen further Co-operative Agricultural Marketing and Value Addition/Agro-processing services for proper positioning  of ACE in the current stiffer and competitive agricultural sector. •	To improve the capacity, systems and sustainability of Namungalwe and its affiliated RPOs •	To Establish strategic Networks and Partnerships with development partners, Investors, Donors, UCA,Government programs like NAADS,PFA, Financial Institutions, BDS providers,and SMEs. Since its formation Namuungalwe has been able to mobilise members to join the RPO and membership has raised from 200 individual members to 574 with in one year, it intends to have 1500 members in the next three years. Four enteprises in which members should be engaged for bussiness of production have been selcted and these are ground nutes,maize, sorghum and coffee, In the year 2012 Namungalwe was able to bulk 0.8 Mt ground nuts, 16 Mt maize,and 6 Mt sorghum. Coffee is a new enterprise and bulking will start in 2013. This perfomance is not good because farmers still use the hand hoe, do not have adequate access to clean in puts and guidance to good agronomic practices, the issues this bussinss plan is intended to deal with  and expects to produce 500 Mt ground nuts, 330 Mt maize,and 980 Mt sorghum. To have this perfomace in production Namugalwe will machanise, train farmers in good husbandry practice, promote planting of clean planting material all this will be hidged on the pillar of paterneship and collabration along the value chain to maximise synergy Namungalwe intends to have its operations guided by this bussines plan for the next three years in which Namungalwe will have aquired 2 hand tractors to increase production 5 ground nut shellers at RPOs to improve productivity and quality of the product, extension worker well facilitated to give agronomic adivice and pass on new farming technologies to members of Namungalwe,1 computers set  to facilitate marketing communication with customers. And to enable members get qiuck access to market infiomation most of it activities will be  computerised to cut down costs and quick generation of records and infomation that may be needed  by the stake holders. Namungalwe intends to strengthen its SACCO, this will enable the farmers to improve on saving culture as well as give them chance to participate in mobolisation of funds,  input credit and others several training will be conducted to this effect.