Glob Il Ization
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Transcript of Glob Il Ization
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Challenges of Globalization
An overview of the challengesand impacts of Globalization
on the Tourism Developmentin Ethiopia
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Introduction This syndicate presentation will try to put forward the challenges thatGlobalization will bring if Tourism Development practices are unmanaged and
uncontrolled well.
IN general it has sections, in the first section it will try to define the term
Globalization, then tried to discuss some of the major challenges that
Globalization has brought especially in the developing world.
The presentation would try to disclose further the merits and demerits
globalization in terms of developing the tourism sector in Ethiopia further outlines
the danger behind joining the World Trade Organization.
And finally on the Way Forward section it was tried to put forward some
recommendations and directions thought to be important before or during
implantation of Tourism Development programs.
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Objective To divulge further the hidden challenge that
Globalization has in our effort to develop the
tourism sector.
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.
What is Globalization?Globalization may be defined in several ways and from differentperspectives:
The widening and deepening of international flows of trade,
finance and information in a single, integrated global market.
Increasing linkages between the worlds people (including the
international spread of culture. as well as diseases, terrorism,
crime..) as natural and artificial barriers fall.
The transformation (shrinking) of the world into a global village,
as borders disappear, distances shrink and times shortens.
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Illustration of Changes in space and time Average ocean freight and port charges per tone fell by more than two third
between 1920 and 1990, from US$ 95 in 1920 to US$29 in 1990.
Air Transport cost decreased even more and travel time have also bee
shortened; average revenue per passenger mile fell by more than 80%
between 1930 and 1990 from US$ .68 to US$ .11 in 1950. It took four daysto fly form Manila to New York but now under a day.
The largest cost and time reductions have occurred in communications, The
cost of a 3 minute international call between New York and London fell form
US$ 245 (in 1930) to US$ 32 in 1970 and to US$ 3 in 1990. At present it costs
less than US$ .10.
Artificial barriers to trade such as tariffs and quotas have also been broughtdown; Other artificial barriers of a more political and social nature, such as
the cold war and apartheid have likewise been toppled.
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Characteristic of the Current Globalization new markets (e.g., globally linked financial markets working
around the clock with new instruments
global consumer markets with global brands
E-commerce new actors (e.g., multinational corporations, the World Trade
Organization, proliferation of international NGOs, regional
blocs, policy coordination groups),
new rules (multilateral agreements in trade, conventions on
human rights, on global environment),
new tools of communication (e.g., cell phones, faxes, e-mail)
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Drawbacks of Globalization1. Unbalanced Distribution of Benefits: Between Countries.The first negative aspect of globalization is that its gains are
not equally distributed, both between and within countries.
Examples of the badly skewed distribution among countries ofthe benefits of globalization can be gleaned from the
following data from the period1980 to 1997: While world per
capita income increased, per capita income contracted in fifty
nine countries, widening income disparities. Exports of goods
and services grew at less than 5% annually in 46 countries,and at less than 1% a year in 9 countries.
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Drawbacks Cntd.2. Unbalanced distribution of benefits: Within Countries.
The benefits of globalization are also badly skewed
within countries, both developing and developed.
Income inequality is rising in many countries,particularly in the OECD countries. Worse, job and
income insecurity is increasing, particularly for unskilled
labor, although corporate restructuring has also meant
job insecurity for professionals.
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Drawbacks Cntd.4. Contagion: The closer linkages that characterize globalization also
allow for contagion and worldwide recession, or at least slowdown.
5. More human insecurity: crime, disease, and loss of cultural identity.
Unfortunately, the many opportunities opened up by the widening
and deepening of information flows and contacts among the worldspeople also include increasing opportunities for crime (trafficking in
drugs, weapons, women, international syndicates), for the spread of
HIV/AIDS as well as ideas, and for the flow of culture and cultural
products which may lead to cultural homogenization, which, while
considered enriching by some, is considered as a loss of culturalidentity by others.
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Drawbacks Cntd.3. Financial Volatility: Globally integrated markets have
financial volatility as a permanent feature, the frequency
of financial crises increasing with the growth in
international capital flows. The human costs of suchfinancial volatility can be very high, as shown by the
effects of the global crisis bankruptcies, poverty
increase, rising unemployment, reduced schooling,
reduced public services, and increased social stress and
fragmentation in short, a reversal in human
development.
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Drawbacks Cntd.6. Environmental factors: Due to the great
consumption patterns created by globalization
and the demand of the products, production has
to be stepped up. A large number of industries aresetup all over the world so people start destroying
large forest lands. Rapid destruction of forests
causes serious threat to both plants and animals.
Due to decline in the number of trees
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Drawbacks Cntd.7. Capitalism: International agencies such as the World Bank,
International Monetary Fund (IMF), and the United Nations
World Trade Organisation take decisions that are binding on
countries. This has eroded Africas sovereignty and power
8. Loss of culture identity and moral standards: Africa has an
amazing conglomeration of cultures, languages and tribes
spread across its 53 countries and 7 dependent territories
(World Bank, 2009). As cultures interact, some cultures are
being diluted and/or destroyed at the expense of others andnegative values are being spread all over the world with relative
ease
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Drawbacks Cntd.9. Crime: Globalization has encouraged illicit trade in drugs,
prostitution, pornography, human smuggling among other
evils
10. Brain drain: Globalization has facilitated the brain drain indeveloping countries, thus reducing further their human
capacity (Nsibambi, 2001). About 70,000 professionals and
university graduates are thought to leave Africa each year to
take up work in Europe or North America (Weiss, 2001). This
undermines the efforts to build national capabilities anddrains Africas already meagre supply of skilled workers
(Saleh, 2010).
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Factors Contributing to the Negative
Impact of GlobalizationA. BAD POLICY.Trade and investment flows to
countries are impeded by poor
macroeconomic policy that leads to chronically
large fiscal deficits, which creates instability.
Investors, as well as exporters, are also
discouraged by policies that lead to an
overvalued currency, and by policies thatoverprotect local producers for long periods,
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Factors Contributing contd.B. BAD TERMS.The responsibility for the limited or
negative benefits of globalization cannot all be laid on
the shoulders of the developing country governments.
The terms under which trade and finance take placeoften are very unfavorable. Between 1980 and 1990,
for example, real commodity prices fell by 45%, as a
result of which developing countries as a whole
suffered cumulative terms-of-trade losses amountingto US$291 billion.
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Factors Contributing contd.C. BAD RULES. the rules of the game are stacked against
developing countries, and the Uruguay Round (UR), which
created the rules-based World Trade Organization, has not
changed the situation very much. Most of the protection forindustry and agriculture in industrial countries was left intact.
Part of the dissatisfaction with the WTO is the perception that
the issues it addresses are those which concern the
developed countries, brushing aside those of interest to the
developing world. Moreover, there remains a very large scopefor evading the spirit, if not the letter of the UR agreements.
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Tourism Development Tourism development involves broadening the
ownership base such that more people benefit
from the tourism industry, skills development,
job and wealth creation and ensuring the
geographic spread of the industry throughout a
country.
It also refers to all the activities associates with
providing facilities for tourists in host area,
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Challenges that Globalization can contend to Tourism Development inEthiopia Transnational corporations
Travel and tourism has emerged as one of the world's most centralized
and competitive industries, and hardly any other economic sector
illustrates so clearly the global reach of transnational corporations
(TNCs).
Economic Globalization
The increasing role of international financial and commerce bodies,
which came as the erosion of power of governments due to the recent
crisis, compels local government to bow to their rules and conditions.
Governments potentially ours too could be dragged to their
requirements (like IMF, WTOs, WB) which intern to be the TNCs
interest to dominate new market.
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Challenges that Globalization contd Social and Cultural Problems
Uncontrolled and un-managed tourists boom
may also result in an upsurge of crime,
prostitution, drug abuse, instability, Terrorism
and other social and environmental vices
related to tourism.
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Way Forward
As it is clear now that continuing the status quo and letting
the trend to marginalizing would increase human insecurity
and vulnerability and judging from the increasing volume of
protests heard, this alternative is becoming more and moreunacceptable.
Therefore:-
The Ethiopian government should ponder thoroughly before
considering to join WTO as it would mean to accept free trade
rules over its main priorities and as critic said the
organization (WTO) completely dominated by industrialized
countries
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Way Forward.. contd
Again the government should be prepared to deal with the
problem at national, regional and global level
At National level: appropriate economic and social
policies to capture global opportunities, trade, capitalflows and to protect people against the vulnerabilities
the Globalization creates
Regional and Global level: actions to tackle crime,
disease, terrorism, environmental degradation, reverse
the marginalization of poor, remedy in the imbalances in
the structure of global governance
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THANK YOU