RA: A translator of economic jargon would be great. We open our book saying that the person on the street, especially in America, has little clue what globalization is all about. But few have any doubt that change is placing the world under great stress, that it is being “turned upside down.” And the person on the street may suspect that it has to do with the word, which increasingly appears in the press and other media: globalization. But what does it really mean? It would be great if a popularizer, a famous personality or pundit, would explain the many complicated political, economic and social issues connected to the phenomenon of globalization. Walter Cronkite or Bill Moyers could probably do that.
Desperate for such information, millions of people, including leaders in business, government and education, have turned to Friedman’s mass market book to gain an understanding of globalization. Unfortunately, they are served up stories from friends, CEOs and other personal contacts of the author. These stories are not harmless, for they become solemn writ for lawmakers and opinion mongers.
It’s not so complex to explain that multinational corporations, are by their very nature, aimed at maximizing shareholder value. To achieve this corporate goal, multinational corporations are literally going to the ends of the earth in search of dirt-cheap labor for both manufacturing and high-end knowledge-based workers. IBM recently laid off 15,000 employees in America, while hiring 45,000 in India. There is nothing complex about that idea.
But shipping jobs overseas and hollowing out America’s middle class is only part of the picture. America is exporting its pollution by relocating manufacturing facilities to countries where environment laws are lax or non-existent. Let’s not forget about the human abuses lurking behind famous brand names and companies. Charles Kernaghan of the National Labor Committee cites Wal-Mart among others as repeat offenders. Friedman has nothing but awe for Wal-Mart’s supply chaining, failing all mention of Wal-Mart’s darker side cited by Kernaghan. Like other US retailers, Wal-Mart claims to be enforcing decent labor conditions, but investigators find otherwise. Kernaghan points out that the same companies have won enforceable rules in trade agreements to protect their trademarks, labels and copyrights, yet regard protections for workers as “an impediment to free trade.” “Under this distorted sense of values,” says Kernaghan, “the label is protected but not the human being, the worker who makes the product.”
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