Английский язык для экономистов - Малюга Е.Н.
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It is the very antithesis of globalization, which emphasizes a beggar-yo-ur-neighbour reduction of controls on trade and contorts all economies to make international competitiveness their major goal. Localization involves a "better your neighbour" supportive internationalism where the flow of ideas, technologies, information, culture, money and goods has as its end goal the protection and rebuilding of local economies world-wide. Its emphasis is not on competition for the cheapest, but on co-operation for the best. 190
Английский ЯЗЫК ДЛЯ экономистов
Globalization — World-wide Reality Based on Unrealistic Theories
Trade liberalization is built on the flawed theory of comparative advantage, the unchallenged diktat of being internationally competitive, and the illusionary promise of growth generating future wealth for all. Comparative advantage, "do what you do best, and trade for the rest" was an ivory tower theory that ignored the reality of the differences in power between traders and producers as well as those between nations. It was also originally developed against a backdrop of the certainty that money would remain local. However fundamental these flaws are and however irrelevant the theories are to today's realities, the World Trade Organization is the global cheerleader and enforcer of comparative advantage.
"Capital advantage" holds that the free flow of money internationally ensures its efficient and rational use, allows financial investors to diversify risks globally and in the process ensure that governments run their economy to the benefit of such investors. The reality is the opposite, with investors exhibiting a herd instinct fuelled by "the trend is my friend" mentality. To woo footloose capital countries try to provide the low inflation, low tax, low government expenditure policies investors deem "prudent." This means giving up power over major domestic control mechanisms like interest rates and government borrowing and risking reduced demand levels through lower domestic expansion. Recent economic crises have highlighted the adverse effects of global money flows and the Multilateral Agreement on Investment designed to speed this process up was defeated by international opposition.
The Advantages of Shifting from Globalization to Localization
The international resistance to the adverse effects of globalization is on the rise, providing an opening to pursue the case for localization. The parameters of the "local" although predominantly the nation state depend to some extent on the goods and services being considered. These range from the subnational for food stuffs, to the geographic region for aeroplanes. Localization requires widespread involvement, it will therefore be something done by people, not something done to them. The huge potential of localization includes devolved power, control of the economy, increased environmental and social protection and benign technological developments. Global financial instability makes such a radical departure evermore timely.
Localization can foster and build sustainable local communities to help rebuild local economies everywhere on a permanent and inclusive basis. It allows the achievement of social cohesion and economic renewal particu- Unit 11. Globalization
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larly through investment in labour intensive, infrastructural renewal and face to face caring. Local businesses have a central role and much to gain. Globalization on the other hand poses a triple threat to sustainable local communities. Its fetishism of international competitiveness lead to public expenditure curbs which constrains community renewal; to the opening up of government purchasing to foreign interests, thus cutting local jobs; and the shifting of agriculture away from smaller scale farming for local markets to agribusiness methods to feed the wealthy globally.
Achieving Localization
The first step to localization is a "mindwrench" away from passive acceptance that globalization is as inevitable as gravity and towards a set of self-reinforcing measures that will bring about a 'Protect the Local, Globally' end goal for the international economic system. Protective safeguards such as import and export controls, quotas, subsidies, etc. will need to be introduced over a clearly agreed transition period. These will not be introduced as old style protectionism which seeks to protect a home market whilst expecting others to remain open. Any residual long distance global trade will instead be geared to funding the diversification of local economies. Such a dramatic, radical change will need to be introduced at first at the level of regional groupings of countries, especially the most powerful — Europe and/or North America.
Trade and Aid for Localization
The General Agreement on Tariffs and Trade (GATT) rules at present administered by the World Trade Organization should be revised fundamentally to become a General Agreement for Sustainable Trade (GAST), administered by a democratic World Localization Organization (WLO). Their remit would be to ensure that regional trade and international aid policies and flows, information and technological transfer, as well as the residual international investment and trade should incorporate rules geared to the building up of sustainable local economies. The goal should be to foster maximum employment through a substantial increase in sustainable, regional self-reliance.
