THE UNIVERSITY OF HONG KONG LIBRARIES

This book zcas a gift from Persona! Social and Humanities Education Section

Curriculum Development Institue Education & Manpower Bureau

Contents Preface

111

Issue 1 Key point a Key point b

What is globalization? What is meant by globalization? The trend towards globalization

1 2 25

Issue 2 Key point a Key point b

What is the impact of globalization? Cultural, economic and political impact Impact and opportunities for the mainland and Hong Kong

47 48 70

Issue 3

Will globalization bring forth more conflict or world

80

peace? Harmony and conflict Regional alliances and global institutions

81 90

Key point a Key point b

Among its recent proposals for education reform in Hong Kong, the Education Commission recommends the provision of ca broad senior secondary curriculum to enable students to acquire experiences in various key learning areas, construct a broad knowledge base and enhance their ability to analyze problems' (Education Commission, September 2000), The Integrated Humanities (S4-5) represents a response to this proposal. The Integrated Humanities is made up of four core modules, namely Personal Development, Characteristics of Hong Kong Society, Development of Modem China and Globalization; it also has three optional modules, that is Religion and Life, Human-Environment Relationship and Relationship between Mass Media and Modem Culture. Students studying this curriculum can build a broad knowledge base and a rich repertoire of skills and abilities.

The Learning Resource Pack on Integrated Humanities (S4-5): Core Module IV - Globalization is part of a series of learning and teaching materials being developed by the Education and Manpower Bureau (EMB) for the implementation of the new subject.

The Department of History of the Chinese University of Hong Kong has been commissioned by EMB to prepare this booklet.

Schools are encouraged to adapt the materials for educational use according to their contexts. NO part of the documents shall be duplicated for commercial purposes.

We welcome feedback and suggestions from teachers. Please send them to:

Chief Curriculum Development Officer (Personal, Social and Humanities Education) Curriculum Development Institute Education and Manpower Bureau 13/FWu Chung House 213 Queen's Road East Wan Chai Hong Kong

or by e-mail to [email protected]? or by fax on 2573 5299 / 2575 4318.

For further enquiries, please contact the PSHE Section, Curriculum Development Institute (GDI) on 2892 5735 or 2892 5859.

IV

Issue 1 What is globalization?

Key Point a What is meant by globalization?

Core Module IV Issue I - What is globalization? Key Point a - What is meant by globalization?

Teachers9 References Globalization is a complicated concept. Some people believe that it is the outcome of a series of processes while some think that it is simply a noun for a series of processes. Some scholars believe that globalization emerged as early as the Middle Ages and globalization in the 20th century was, in fact, a "continuity". But other scholars stress that globalization is the product of modern advanced technologies and represents a "basic change". Globalization broadly refers to the expansion of global linkages, the organization of social life on a global scale, and the growth of a global consciousness. It encompasses several large processes; definitions differ on what they emphasize. The term globalization is not neutral; definitions express different assessments of global change. The following definitions represent currently influential views: •

Thomas Friedman: "The inexorable integration of markets, nation-states, and technologies...is enabling individuals, corporation and nation-states to reach around the world farther, faster, deeper and cheaper than ever before ... the spread of free-market capitalism to virtually every country in the world". Citation from: Friedman, Thomas. The Lexus and The Olive Tree. New York: Farrar, Straus & Giroux, 1999, pp.7-8.

•

Roland Robertson: "The compression of the world and the intensification of consciousness of the world as a whole ... concrete global interdependence and consciousness of the global whole in the twentieth century". Citation from: Robertson, Roland. Globalization: Social Theory and Global Culture. London: Sage Publications,

1992, p.8.

•

Martin Albrow: "The historical transformation constituted by the sum of particular forms and instances of ... making or being made global (i) by the active dissemination of practices, values, technology and other human products throughout the globe; (ii) when global practices and so on exercise an increasing influence over people's lives; (iii) when the globe serves as a focus for, or a

Core Module IV Issue 1 - What is globalization? Key Point a - What is meant by globalization?

premise in shaping, human activities'" Citation from: Albrow, Martin. The Global Age: State and Society beyond Modernity. Cambridge, UK: Polity Press in association with Blackwell Publishers, 1996, p.88.

•

Malcolm Waters: "A social process in which the constraints of geography on social and cultural arrangements recede and in which people become increasingly aware that they are receding." Citation from: Waters, Malcolm. Globalization. London; New York : Routledge, 1995, p. 3.

•

Philip McMichael: "Integration on the basis of a project pursuing market rule on a global scale." Citation from: McMichael, Philip. Development and Social Change: A Global Perspective. Thousand Oaks, Calif.: Pine Forge Press, 2000, p. 149.

•

James Mittelman: "As experienced from below, the dominant form of globalization means a historical transformation: in the economy, of livelihoods and modes of existence; in politics, a loss in the degree of control exercised locally ... and in culture, a devaluation of a collectivity's achievements ... Globalization is emerging as a political response to the expansion of market power ... [It] is a domain of knowledge." Citation from; Mittelman, James. The Globalization Syndrome: Transformation and Resistance. Princeton, N.J.: Princeton University Press, 2000, p.6.

As it is, would globalization lead to. uniformity? Scholars hold different theories on this question. Some believe that globalization would kill regional uniqueness and lead the world to uniformity. While some point out that globalization does not flow unilaterally but mutually. In this process of mutual flow, local uniqueness would be preserved.

Core Module IV Issue 1 - What is globalization? Key Point a - What is meant by globalization?

Suggested Learning Objectives Suggested for enquiry What is globalization? [2 periods] What are the main features of globalization in terms of economics, politics and culture? [2 periods]

Will globalization lead to uniformity? Can the world sustain diversity under globalization? [2 periods]

Learning objectives

Remarks

To come up with a definition of Teachers can introduce globalization. activities and discussion using Source 5. To understand various types of transnational corporations and global institutions and their role in globalization; To familiarize oneself with the features of globalization in terms of economics, politics and culture. To analyze the globalization of culture and its effects on individual societies and cultures; To analyze the effects of economic globalization on individual countries and peoples; To discuss whether political globalization has influenced governments and peoples; To discuss whether globalization impacts on the peoples of the world in the same way; To discuss whether globalization would destroy the uniqueness of countries and peoples and lead the world to uniformity

Core Module IV Issue 1 - What is globalization? Key Point a - What is meant by globalization?

Suggested question for enquiry: What is globalization? Source 1

Globalization: •

Global adoption of social institutions: the process by which social institutions become adopted on a global scale.

•

Operation at international level: the process by which a business or company becomes international or starts operating at an international level.

Citation from: MSN Learning & Resesarch [Online], }

Coca-Cola

In brief: In the nearly 200 countries where the Coca-Cola Company does business, it gives back to the community in different ways, such as providing financial contributions and awarding scholarships. Examples of programmes: The Coca-Cola Valued Youth Programme

Nike

"...we ardently contribute to the communities where we live, work and play throughout the work. "

In brief: Nike focuses its grantmaking efforts on programs that encourage the participation of young people in physical activity and programs that address innovative solutions to the challenges of globalization. Nike also supports our athletes, who give back to their local communities and support causes that are important to them. Examples of programmes: Open Schools Programme (with Shanghai Education Bureau),

Education

Programmes held in China, Indonesia and Vietnam, Nike Care Trust in South Africa. Summarized from: The Coca-Cola Company website — Diversity: Community Support, [accessed 9 May 2003]; Nike website-About Nike: Corporate Responsibilities, [accessed 9 May 2003]. 68

Core Module IV Issue 2 - What is the impact of globalization? Key Point a - Cultural, economic and political impact

Questions for discussion: •

Do you agree that globalization is unjust as not everyone in the world can benefit from it?

®

Do you think globalization leads to exploitation in developing countries and that people in developing countries are the victims of globalization? Why do you think so?

•

Do transnational corporations do anything to improve people's lives across the world? What do they do? Why do you think transnational corporations do that?

•

Are there global institutions trying to maintain equality and fairness among countries? If so, are they successful?

•

It is sometimes said that globalization means "Americanization" as international institutions and corporations which are the driving forces of globalization are influenced by the United States. Do you agree with this argument? Why?

•

Do you think globalization leads to domination by the great powers? Please illustrate your answer with an example.

•

What do you think about regional associations in the context of global cooperation? Please share your opinions with the class.

69

Key Point b Impact and opportunities for the mainland and Hong Kong

70

Core Module IV Issue 2 - What is the impact of globalization? Key Point b - Impact and opportunities for the mainland and Hong

Teachers9 References China's relationship with the rest of the world becomes closer since its entry into the World Trade Organization (WTO). Inevitably, its politics, economy, social values and culture will be increasingly influenced by globalization. At this stage, we are unable to assess whether these influences are good or bad. China's entry into the WTO requires state-owned enterprises to face new challenges with new global visions. They must leam to exploit, utilize and allocate resources quickly. Xu Yuandan says that economic globalization and China's entry into the WTO brings three major challenges to state-owned enterprises: •

Technological challenges: Economic globalization expands the competitive environment

into the world. Enterprises have to take global economic

development seriously. The first and foremost factors are science and technology. Whoever owns sophisticated technologies will have competitive power, thereby playing a leading role in market competition. •

Challenges of a knowledge-based

economy: The first elements of a

knowledge-based economy are wisdom and invisible assets. Its feature is socio-economic

development driven by scientific knowledge and scientific

techniques. In this development process, the most valued assets are talented people and knowledge. Enterprises which have these two resources will be successful. There are many enterprises in China and a considerable number are world famous. If these enterprises are able to ride on the back of knowledge-based economy, they can create new situations for their further development. •

Challenges of an information revolution: Information is a major component, a formative basis and the format of presentation of knowledge. In the new economic era, knowledge and information are the most important strategic resources. Whoever have access to information will be able to exploit the first opportunities.

Adapted from ^jcfi °

° ±M ' «»HififiS± ' 2001 . pp.98-107 o

71

Core Module IV Issue 2 - What is the impact of globalization? Key Point b - Impact and opportunities for the mainland and Hong Kong

Globalization also influences China's political system, promoting changes in the structure, functions, economic policies and roles of the government. When people in the mainland come into contact with foreign products, they also receive the messages attached to these products. These messages may change their former way of thinking (especially towards politics and the economy). This may have a bearing on the mainland's future development. Hong Kong is a free economy which is always influenced by globalization. The entry of our country into the WTO and the advent of the era of a knowledge-based economy have certain impact on Hong Kong. To face these challenges and to exploit new opportunities, Hong Kong should re-position itself on the global economy. We should allow our strengths full play.

72

Core Module IV Issue 2 - What is the impact of globalization? Key Point b - Impact and opportunities for the mainland and Hong Kong

Suggested Learning Objectives Suggested questions for enquiry What are the impact and opportunities for the mainland and Hong Kong under globalization? How are the mainland and Hong Kong reacting? Should globalization be supported or actively resisted? [2 periods]

Learning objectives To analyze the impact on Hong Kong and the mainland by our country's entry into the global economy; To analyze the measures that have been carried out or can be carried out by the mainland and Hong Kong to meet these challenges; To discuss whether globalization is an inevitable trend and what our role is in this development.

73

Remarks Core Module III Issue 1 Key point b discusses China's entry into the WTO and its effects. The WTO is a global institution and China's entry symbolizes the opening of the country to various economies, cultures and political processes.

Core Module IV Issue 2 -What is the impact of globalization? Key Point b - Impact and opportunities for the mainland and Hong Kong

Suggested questions for enquiry: are the impact and opportunities for the and Hong Kong under globalization? How are the mainland and Hong Kong reacting? Should globalization be supported or actively resisted? Source 1

This is part of a letter from Martin Lee, former Chairperson of the Democratic Party in Hong Kong to Bill Clinton, former President of the United States, in

1999.

... I wanted to write to assure you that as elected representatives of Hong Kong people, we strongly support China's entry into the World Trade Organization (WTO). We do so not only because it would be of tremendous long-term benefit to China and to Hong Kong as part of China, but also because we believe it represents the best long-term hope for China to become a member in good standing of the international community. ... China's joining the world trade club is obviously good for the new economic world order. Indeed, the benefits are not only to China, but to the entire Asia-Pacific region. The participation of China in the WTO would not only have economic and political benefits, but would also serve to bolster those in China who understand that the country must embrace the rule of law, which of course is a key principle underlying active membership in global trade organizations. Adapted from: Lee, Martin. "A letter to Bill Clinton: WTO Accession Can Fast-track China's Development of the Rule

of Law".

14 November

1999,

Democratic

Party

[accessed 22 May 2003].

74

website

-

Press

Release

Core Module IV Issue 2 - What is the impact of globalization? Key Point b - Impact and opportunities for the mainland and Hong Kong

Source 2

China's economy has been booming since its entry to the World Trade Organization. Shanghai was the world's fourth busiest container port last year. It handled 8.61 million 20-foot-equivalent units last year. To make it as the biggest international shipping centre, the city has started a deep water port project to solve its capacity problems. And it is believed that the new port, due for completion in 2020, will serve the whole Yangtze River Delta area and spur economic growth. A trade representative of the United States said that the effects of China's entry to the WTO had gone beyond wealthy coastal areas to reach the country's hinterland, bringing a sense of competition between provinces and accelerating China's integration with the global economy. He also said that China agreed to support a US proposal for WTO members to cut agricultural tariffs. Summarized from: South China Morning Post, 6 & 20 February 2003. E 6 J 3 170 °

Source 3

China's economy is probably in its best time in several years. The country's GDP grew 9.9% from a year ago in the first quarter, its highest growth rate in six years. Fixed-asset investment jumped 27% annually in the first three months of the year, while foreign trade was up more than 40%. Retail sales in the first two months of this year rose 9.2% to 761 billion yuan, or US$9.1 billion, compared with 8.5% in the same period last year. Actual foreign direct investment in China hit US$13.09 billion in the first quarter of this year, up 56.7% from a year earlier. It is estimated that the strong growth has continued from last year and is expected to last for quite some time. Citation from: People's Daily (online), 15 April 2003, [accessed 21 May 2003].

75

Core Module IV Issue 2 -What is the impact of globalization? Key Point b - Impact and opportunities for the mainland and Hong Kong

Source 4

After China's entry into the WTO, the global market will gradually become more open in accordance with the established rules. With the opening of the film and television markets, the competition in these two sectors will become increasingly keen. The impact of foreign films and television programmes on the mainland (including its economy, culture and thought) should not be under-estimated. Citation from: ° «WTO

? }} ° 56t = ^mt&ft&ffi&Mi

' 2001 ' pp.208-217

Source 5

The direct adverse effects of the mainland's entry into the WTO on Hong Kong are such as: the importance of Hong Kong's intermediary role starts to decline; the different special channels and networks of guanxi (relationships) built up by Hong Kong's commercial sector over the years will eventually disappear as a result of increasing transparency in various areas; and the various businesses on the mainland in which Hong Kong invested before others had the chance to do so in the past will be directly threatened by foreign investors with solid financial resources. Of course, the positive effects of the mainland's entry into the WTO cannot be neglected. For instance, the Pearl River Delta, Yangtze Delta and the coastal areas of the Bohai Sea will rapidly complete the transformation of their industrial sector. As a financial and service centre, Hong Kong can provide the areas of the Pearl River Delta and the Yangtze River Delta with talented people, economic development, technical training and other support. Citation from:

* ^mmmmm^mmx^m^^mmmny^mm • 2001-3= i ^ w c n 41 m) * m iJfiM. ' [TttBli =.2003 ^ 5 ft 22 0] °

76

Core Module IV Issue 2 - What is the impact of globalization? Key Point b - Impact and opportunities for the mainland and Hong Kong

Source 6

A survey done by the Hong Kong Policy Research Institute in 1999 showed that the Hong Kong business community is optimistic about its sales turnover and investment in Hong Kong and the mainland in both the short and medium term, as a result of China's entry into the WTO. In particular, 66.7% of the respondents expected that their medium-term investment on the mainland would increase. Furthermore, our country's entry into the WTO would also have positive effect on Hong Kong's free market economy. 81.4% of the respondents expressed that the market freedom should be no change or even enhanced. However, respondents from the manufacturing sector seemed prudent on those issues when compared with other sectors. The report mentioned that foreign competition would increase, and the local business community should pay more attention to this development. The Government should also provide more relevant information as well, so that the business community can better prepare for the new challenge. Citation from: Hong Kong Policy Research Institute. "A Special Opinion Survey of Senior Business Executives in Hong Kong on China's Entry into the WTO". Hong Kong Policy Research Institute website Press Releases, 3 May 1999, [accessed 22 May 2003].

Core Module IV Issue 2 - What is the impact of globalization? Key Point b - Impact and opportunities for the mainland and Hong Kong

Source 7 *•*• « ~ -

*• *

Offshore trade is on the rise, and is destined to become more pronounced in the future. Apart from further promoting our re-exports, we will develop Hong Kong as a multi-modal trade management and operations centre ... To strengthen our position as Asia's premier transportation and logistics hub, we will facilitate the development of Hong Kong International Airport's logistics centre and express cargo terminal, and build a modem Logistics Park on North Lantau Island. We will also enhance Hong Kong's information connectivity, upgrade the necessary infrastructure, ensure a smooth flow of cargo between Guangdong and Hong Kong and strive to reduce operating costs ... Hong Kong's container throughput has ranked number one in the world for years. This leading position will be strengthened when Container Terminal 9 comes on stream later this year. Citation from: The Hong Kong Special Administrative Region Government of the People's Republic of China. Address by the Chief Executive The Honourable Tung Che-hwa at the Legislative Council meeting on 8 January 2003: Capitalising on Our Advantages, Revitalising Our Economy. Hong Kong: Printing Department, 2003, p.9.

Source 8

An official of the Central People's Government said that reforms on China's telecom operators have not yet been completed. He pointed out that the government would carry our institutional reform to allow market forces to decide prices so as to break monopolies. All the reforms are to ensure that customers will be able to enjoy high quality services at reasonable prices. Summarized from: *JW o

:

o

' 2003 i£ 4 R 15 m 22 B ° ' 2003 ^ 4 ^ 15 ^ 22 B ° The homepage of the Secretary-General of the United States, [accessed 23 May 2003].

Source 9

International Monetary Fund (IMF) was born with a mission to create economic stability for a world which had just been through the trauma of depression and the devastation of war. When a country joins the IMF it is assigned a quota which is calculated in Special Drawing Rights (SDRs), the Fund's own unit of account. Quotas are assigned according to a country's relative position in the world economy which means that the most powerful economies have the most influence and clout. The World Trade Organization, which was established to govern global trade, is dominated by rich countries. Rubens Ricuper, former Secretary-General of the United Nations Conference on Trade and Development commented that global trade rules were highly imbalanced and biased against developing countries. India, for instance, reduced its tariffs from an average of 82% in 1990 to 30% in 1997. Citation from: Ellwood, Wayne. The No-Nonsense Guide to Globalization. Oxford: New Internationalist Publications Ltd,2001,pp.24-37.

99

3/8 JOL 214

Questions for discussion:

': :'• • \

•

What are the goals of the World Environment Day launched by the United Nations (UN)? Why is the UN's efforts on promoting environmental protection Important?

•

Are there other tasks the UN is doing now? If so, what are they?

•

Do you think the UN is successful in its tasks? Why do you think so?

•

Apart from the UN, are there other global institutions whose missions are to achieve peace, fair treatment and equality? Do you think these tasks are Important? Why?

©

Compared to national governments, what are the advantages of global institutions when dealing with global issues such as environment, peace-keeping and human rights?

•

What is the role of global institutions on promoting mutual assistance and cooperation among peoples and nation states?

•

Are there constraints on global institutions? If so, what are they? (Hints: Do global institutions possess powers the same as those of a nation-state?)

•

It is argued that some economic global institutions are dominated by rich and powerful countries. Do you agree with this argument? Why?

•

What do you think we can do to achieve peace and fair treatment on a personal level?

100

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DUE

X19109591 001 * JO''712 .143 g Learning resource pack on Integrated human!tles (S4-5)* Core module TV, Globalization Hong Kong : Personal, Social and Humanities Education Section, Curriculum