Essay (draft 2)

The Dark Side of Globalisation

Being one of the most successful species on this Earth, mankind has taken its social capabilities to a whole new level. Since the very beginning, mankind have always been seeking one other in distant places in search of better life (Chanda, 2008). This interaction has enabled the transfer of beneficial knowledge and thus mankind as a species has progressed. Technologies soon developed allowing communication with faraway places very easy. Globalisation has resulted in the world to be an intricate interconnected network. Yet this triumph do have its shortcomings as well. Amidst all this positivity that globalisation brings, it has its fair share of problems. Wars and conflicts have always existed since the ancient times and despite the progress globalisation brings, has not reduced nor prevent further conflicts. Ironically, there are examples of globalization-induced wars (Bauman, 2001) where the fruits of some of our progress are fuelling conflicts in other parts of the world like Africa. One such case is the issue of conflict minerals in Congo. The world has realised this and has various measures put in place. ‘Enough Project’ brings awareness to the consumers while companies themselves have joined Public Private Alliance on Responsible Minerals Trade to reduce the consumption of conflict minerals.

The issue of conflict-minerals is very well known with several countries in Africa known to export these ‘blood minerals’ notably, Democratic Republic of Congo (“Tech companies make progress on ‘blood phones’ and ‘conflict minerals’ - CNN.com,” n.d.). A conflict mineral is defined as “columbite-tantalite (coltan), cassiterite, gold, wolframite, or their derivatives; or any other mineral or its derivatives determined by the U.S. Secretary of State to be financing conflict in the Democratic Republic of the Congo (“DRC”) or an adjoining country.” (Reform, 2011) Congo has been conflict torn over the possession of precious minerals tantalum, tin, gold and tungsten which are used frequently in many of our IT devices including mobile devices (“Conflict Minerals | RAISE Hope for Congo,” n.d.). These highly sought minerals has fuelled the need to possess them and razed conflicts in the torn nation. Armed groups aiming to earn high profit from the sale and export of such precious minerals has left the country in ravages. They hold workers at gunpoint forcing them to work for cheap or no pay at all. (“Tech companies make progress on ‘blood phones’ and ‘conflict minerals’ - CNN.com,” n.d.)

In a highly globalized world of today, many global powerful brands highly influences the choices and way of life of many consumers in the world. Many corporations influences the general populace by creating brands and therefore attaining consumer support. Yet most consumers are concerned if the products they buy have issues surrounding ethical corporate behaviour. Consumer will make changes to their purchasing habits against errant corporations (Creyer, 1997). Number one brand in the Forbes list, Apple Inc. (“The World’s Most Powerful Brands List - Forbes,” n.d.) has been found to make use of such conflict minerals in its devices. It has resulted in many consumers unknowingly supported the bloodshed in the conflict-torn Congo. The unintended global support for more conflict minerals, has generated billions in revenue from the sale of Apple devices while plunging Congo further down the depths of conflict.

Fortunately, not the entire world have been ignorant of this issue. Efforts have been made to counter the export and consumption of blood minerals. ‘Enough Project’ aims to bring awareness to the masses and aims to discourages big corporations from utilising ‘conflict-minerals’ (“Apple Makes New Pledges on Conflict Minerals, Should Begin Clean Congo Sourcing Program | Enough Project,” n.d.). Consumers are made aware and will be trusted to make the responsible choice of not supporting companies and brands that are adamant in still using the ‘blood-minerals’ in their products and devices (Creyer, 1997).

Companies have also pledged to contribute in a global concerted effort. Apple Inc. has joined the Public Private Alliance on Responsible Minerals Trade and is one of the many corporations alongside governments and civil societies (“Apple Makes New Pledges on Conflict Minerals, Should Begin Clean Congo Sourcing Program | Enough Project,” n.d.). This will ensure the minerals attained are ‘clean’ and therefore reduce the globalised need for the ‘conflict-minerals’. Thus hopefully ending the conflicts that arise in Congo as the result of such minerals. Although many corporations have pledged against the consumption of the ‘conflict-minerals’, there will only be real significance when all industry players are involved. Nintendo, for example, lagged behind in all procedures to reduce the consumption of such minerals and is ranked the lowest (“Conflict Minerals Company Rankings | RAISE Hope for Congo,” n.d.). Unlike major corporations, like Apple Inc., HP and Intel, Nintendo lacked clear verification procedures for non-compliance and are still not part of the conflict-free smelter program (“Nintendo slammed over ‘blood chemicals’,” 2013).

Although the problem has been reduced with the various measures and legislations in place, it cannot be denied that globalization was what initiated and fuelled the conflicts in the first place. The global need for the minerals by multinational corporations, resulted in the purchase of such minerals from conflict-laden sources such as mentioned. Tempted by the large profits obtained from the sale and export of the minerals has fuelled the conflicts further over the ownership of the mines. The measures and legislations were put in place to protect Congo from further conflict and ensure corporations obtained their resources from conflict-free sources. Yet it remains to be seen if the problem can be completely eradicated when there exists such companies like Nintendo that have yet to show its fullest support for the conflict-free cause.

References:

Apple Makes New Pledges on Conflict Minerals, Should Begin Clean Congo Sourcing Program | Enough Project. (n.d.). Retrieved October 06, 2013, from http://www.enoughproject.org/blogs/apple-new-pledges-conflict-minerals-clean-congo

Bauman, Z. (2001). Wars of the Globalization Era. European Journal of Social Theory, 4(1), 11–28. doi:10.1177/13684310122224966

Chanda, N. (2008). Runaway globalization without governance. Global Governance: A Review of Multilateralism …, 14, 119–125. Retrieved from http://journals.rienner.com/doi/pdf/10.5555/ggov.2008.14.2.119

Conflict Minerals | RAISE Hope for Congo. (n.d.). Retrieved October 06, 2013, from http://www.raisehopeforcongo.org/content/initiatives/conflict-minerals

Conflict Minerals Company Rankings | RAISE Hope for Congo. (n.d.). Retrieved from http://www.raisehopeforcongo.org/content/conflict-minerals-company-rankings

Creyer, E. H. (1997). The influence of firm behavior on purchase intention: do consumers really care about business ethics? Journal of Consumer Marketing, 14(6), 421–432. doi:10.1108/07363769710185999

Nintendo slammed over “blood chemicals.” (2013, June 26). Fox News. Retrieved from http://www.foxnews.com/tech/2013/06/26/nintendo-slammed-over-blood-chemicals/

Reform, W. S. (2011). Conflict minerals. Journal of Chemical Health and Safety, 18(1), 49–50. doi:10.1016/j.jchas.2010.10.004

Tech companies make progress on “blood phones” and “conflict minerals” - CNN.com. (n.d.). Retrieved October 03, 2013, from http://www.cnn.com.sg/2012/08/16/tech/gaming-gadgets/congo-blood-phones-report/index.html

The World’s Most Powerful Brands List - Forbes. (n.d.). Retrieved October 05, 2013, from http://www.forbes.com/powerful-brands/list/

Essay (draft)

One of the many definitions of globalisation is the increasing cross-border interaction and integration of various aspects of human activity such as economic activity. Since the start of human history, humans have always been interacting with other humans in distant places in search of better life (Chanda, 2008). Humans are able to transfer beneficial knowledge and progress. Technologies that developed allowed communication with faraway places. Thus globalisation has resulted in the world to be an interconnected space. Yet globalisation do have its shortcomings as well. Amidst all this positivity that globalisation brings, globalisation has its fair share of problems. Wars and conflicts have always existed since the ancient times and despite the progress globalisation brings, has not reduced nor prevent further conflicts. Ironically, there are examples of globalization-induced wars (Bauman, 2001) where the fruits of some of our progress are fuelling conflicts in other parts of the world like Africa. One such case is the issue of conflict minerals in Congo being fuelled by globalisation.

The issue of conflict-minerals is very well known with several countries in Africa known to export ‘blood minerals’ or conflict-minerals notably, Democratic Republic of Congo (“Tech companies make progress on ‘blood phones’ and ‘conflict minerals’ - CNN.com,” n.d.). A conflict mineral is defined as “columbite-tantalite (coltan), cassiterite, gold, wolframite, or their derivatives; or any other mineral or its derivatives determined by the U.S. Secretary of State to be financing conflict in the Democratic Republic of the Congo (“DRC”) or an adjoining country.” (Reform, 2011) Congo has been conflict torn over the possession of precious minerals tantalum, tin, gold and tungsten which are used frequently in many of our IT devices including mobile devices (“Conflict Minerals | RAISE Hope for Congo,” n.d.). These highly sought minerals has fuelled the need to possess them and razed conflicts in the torn nation. Armed groups aiming to earn high profit from the sale and export of such precious minerals has left the country in ravages. They hold workers at gunpoint forcing them to work for cheap or no pay. (“Tech companies make progress on ‘blood phones’ and ‘conflict minerals’ - CNN.com,” n.d.)

In a highly globalized world of today, many global powerful brands highly influences the choices and way of life of many consumers in the world. Many corporations influences the general populace by creating brands and therefore attaining consumer support. Yet most consumers are concerned if the products they buy have issues surrounding ethical corporate behaviour. Consumer will make changes to their purchasing habits against errant corporations (Creyer, 1997). Number one brand in the Forbes list, Apple Inc. (“The World’s Most Powerful Brands List - Forbes,” n.d.) has been found to make use of such conflict minerals in its devices. It has resulted in many consumers unknowingly supported the bloodshed in the conflict-torn Congo. The unintended global support for more conflict minerals, has generated billions in revenue from the sale of Apple devices while plunging Congo further down the depths of conflict.

Fortunately, not the entire world have been ignorant of this issue. Efforts have been made to counter the export and consumption of blood minerals. ‘Enough Project’ aims to bring awareness to the masses and aims to discourages big corporations from utilising ‘conflict-minerals’ (“Apple Makes New Pledges on Conflict Minerals, Should Begin Clean Congo Sourcing Program | Enough Project,” n.d.). Consumers are made aware and will make the responsible choice of not supporting companies and brands that are adamant in still using the ‘blood-minerals’ in their products and devices (Creyer, 1997). Companies have also pledge to do so in a global concerted effort. Apple Inc. has joined the Public Private Alliance on Responsible Minerals Trade and is one of the many corporations alongside governments and civil societies (“Apple Makes New Pledges on Conflict Minerals, Should Begin Clean Congo Sourcing Program | Enough Project,” n.d.). This will ensure the minerals attained are ‘clean’ and therefore reduce the globalised need for the ‘conflict-minerals’. Thus hopefully ending the conflicts that arise in Congo as the result of such minerals.

References:

Apple Makes New Pledges on Conflict Minerals, Should Begin Clean Congo Sourcing Program | Enough Project. (n.d.). Retrieved October 06, 2013, from http://www.enoughproject.org/blogs/apple-new-pledges-conflict-minerals-clean-congo

Bauman, Z. (2001). Wars of the Globalization Era. European Journal of Social Theory, 4(1), 11–28. doi:10.1177/13684310122224966

Chanda, N. (2008). Runaway globalization without governance. Global Governance: A Review of Multilateralism …, 14, 119–125. Retrieved from http://journals.rienner.com/doi/pdf/10.5555/ggov.2008.14.2.119

Conflict Minerals | RAISE Hope for Congo. (n.d.). Retrieved October 06, 2013, from http://www.raisehopeforcongo.org/content/initiatives/conflict-minerals

Creyer, E. H. (1997). The influence of firm behavior on purchase intention: do consumers really care about business ethics? Journal of Consumer Marketing, 14(6), 421–432. doi:10.1108/07363769710185999

Reform, W. S. (2011). Conflict minerals. Journal of Chemical Health and Safety, 18(1), 49–50. doi:10.1016/j.jchas.2010.10.004

Tech companies make progress on “blood phones” and “conflict minerals” - CNN.com. (n.d.). Retrieved October 03, 2013, from http://www.cnn.com.sg/2012/08/16/tech/gaming-gadgets/congo-blood-phones-report/index.html

The World’s Most Powerful Brands List - Forbes. (n.d.). Retrieved October 05, 2013, from http://www.forbes.com/powerful-brands/list/

‘Runaway Globalization without governance’ Commentary

Globalization has become a matter of world importance as situations occurring on the opposite site of Earth may exert influence on the other side. Things such as oil prices have inevitably affect situations in many countries. (Chanda, 2008) Therefore a global resolution has to be kept in place to keep a certain order and standard that governs all the international trade relations. Unfortunately, as mentioned, this set of laws have always lagged behind (Chanda, 2008). I agree with many of the points of the author on the point that since the ancient times, globalization have always preceded the erection of laws governing it. The formation of the laws have always taken second priority despite the many recent advances in global governance (Chanda, 2008). Yet the author appears to adopt a neutral stance regarding the United States (US). I prefer to look at it as sheer arrogance and selfishness as it is the one of the most powerful countries and having the biggest economy. The cost to complying to the treaty is prohibitive to the US economy (“Kyoto Protocol Fast Facts - CNN.com,” n.d.). This despite having years of globalization and progress ahead of many other countries. This fact is echoed by China who calls on the US to comply as it is the largest greenhouse emitter in the world. (“China Calls on the U.S. to Join Kyoto Protocol | Worldwatch Institute,” n.d.).

References:

Chanda, N. (2008). Runaway globalization without governance. Global Governance: A Review of Multilateralism …, 14, 119–125. Retrieved from http://journals.rienner.com/doi/pdf/10.5555/ggov.2008.14.2.119

China Calls on the U.S. to Join Kyoto Protocol | Worldwatch Institute. (n.d.). Retrieved October 02, 2013, from http://www.worldwatch.org/node/144

Kyoto Protocol Fast Facts - CNN.com. (n.d.). Retrieved October 02, 2013, from http://edition.cnn.com/2013/07/26/world/kyoto-protocol-fast-facts/index.html

Summary on 'Runaway Globalisation without Governance' by Nayan Chanda 9/9/13

Globalisation without governance has resulted in problems, risking globalisation to be going in the wrong direction. Since the beginning of human history, distinct communities have gradually become interconnected. The system of governance has evolved through time but have always lagged behind. The early form of regulation from interaction between humans from different lands sought to protect their native goods, and to earn revenue. It was not until the nineteenth century when written rules was formed but even then, was unable to prevent two world wars. The reason humans seek out other humans in distant lands has remained unchanged and that is to attain a better life. With the modern day globalised economy reaching new heights, environmental and health problems arise. The global community has to be aware of the problems of migration, terrorism, global crimes and risks of nuclear conflict. The regulation of people in a limited space constitutes governance. Yet, any form of a global structure was not formed until the twentieth century when massive trade occurred. Governance lagged behind further when it took the General Agreement on Tariffs and Trade (GATT) 50 years to set up the World Trade Organization. Yet throughout history the issues affecting the traders remained unchanged and that is to protect its industries. Determined pirates will manage to steal the products and processes. The poor showing at the International Exhibition of Inventions in Vienna in 1873 in the manifestation of that fear leading to the formation of the Paris Convention for the Protection of Industrial Property in 1883. Empires were the main players in governance and as they grew so did their control. Yet this comes at a price when the Mongols caused the bubonic plague to spread across Europe killing a third of its population. To tackle this issue, quarantine became one of the first public health policies. World Health Organization (WHO), formed in 1948, became an important player of global governance as demonstrated by the SARS pandemic in 2003. Governance lagged in sea-borne trade and religion was the primary form of governance. The colonial expansions of Europe in Asia led to the development of ‘global commons’. The use of technology also questioned the lack of proper regulations. The United States spearheaded the need for a global standard time for reference. Global governance usually neither require the surrender of sovereignty nor the compromise of any nation’s vital economic or security interests. Now as the world is rendered borderless, the lack of governance is the greatest challenge to globalization. The fear of nuclear weapons falling into the wrong hands has resulted in the Nuclear Non-Proliferation Treaty. Another issue is environmental pollution and climate change. As governance improved, things took a wrong turn and ironically, international ability and willingness to confront global issues collectively has declined. The US refusal on nuclear and climate issues puts any form of global governance on hold as it is the most powerful force in integrating the world, including promoting global rules and the establishment of the United Nations.

Summary Exercise in Class 5/9/13

The increase in oil prices caused by fear has detrimental effects on the global economy. Military conflict between Israel and Iran has driven oil prices skyward mirroring the last 3 global recessions that was caused by the Middle Eastern conflict. The increase in oil prices in 2008 aggravated the financial crisis plunging the global economy into recession.Punitive economic sanctions were taken to restrict the nuclear development of Iran, but Iran responded with world-wide attacks on Israeli embassies. As a result, the US is preparing for future military confrontation, which may cause rising oil price, global economic turmoil and instability in the Middle East.