PERSPECTIVES ON GLOBAL DEVELOPMENT AND TEC HNOLOGY

PGDT 9 (2010) 101-118

brill.nl/pgdt

e Heavy Price of Globalization: Globalization and Sustainable Development

Mohammad Soleymani

Ph.D; Department of Social Science & Human Services, Borough of Manhattan Community College CUNY199, Chambers Street, New York, NY, 10007, USA E-mail: [email protected]

Abstract e term globalization has become a lightning rod for economists, historians, farmers, health workers, policy-makers, and others. Many view globalization as inevitable and irreversible. According to this view, globalization promotes world interconnection through international trade, and due to technology transfer will lower the cost of production and promote consumption; these are essential to future world development.1 ere are others who regard globalization with hostility and even fear, believing that it increases inequality within and between nations, threatens national employment, and creates environmental damage. is article will focus on the impact of globalization on sustainable development, climate change and environmental protection. Keywords globalization, sustainable development, climate change, environmental protection

I. Introduction Globalization is viewed as a centuries-long process. Closely related to the modern denition of globalization, Karl Marx and Friedrich Engels (1848) wrote e need of a constantly expanding market for its products chases the bourgeoisie over the entire surface of the globe . . . In place of the old wants, satised by the production of the country, we nd new wants, requiring for their satisfaction the products of distant lands and climes. In place of the old local and national seclusion and self-suciency, we have intercourse in every direction, universal inter-dependence of nations.2 (pp. 23-24) World
1 IMF sta, April 2000 (corrected January 2002) Globalization: reat or Opportunity? pp. 1-3. 2 Marx, Karl and Friedrich Engels. 1848. Communist Manifesto. Rewritten in McClellan, David. 1988. Essential Marxism Writings. Oxford University Press. Pp. 23-24.

Koninklijke Brill NV, Leiden, 2010

DOI: 10.1163/156914910X487942

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economy is undergoing a process of restructuring, fundamental expansions and transformations. Advancement of modern industries has established a worldwide market. Over the post-war period, international trade and investment ows have expanded steadily and rapidly, helped by the gradual lowering of taris and other barriers to trade, by liberalization of the regime for investment ows, and by the dramatic fall in the cost of transportation and communication. ese trends have forced the industrial countries to overcome the shortage of the domestic market, look beyond their national borders and establish progressively closer contacts worldwide. e new international division of labor has been established, producing on a world scale at a lower cost. All of these new developments in the world economic aairs sound good. However, we are not sure whether or not every country in the world would get their fair share. On the contrary, the empirical evidence provides strong support for such propositions that the benets of globalization are not equally distributed among the worlds nations. is article will dene economic globalization, outline the premise of its supporters, and examine the possible impact of globalization on several social, environmental, and non-economic indicators of wealth, poverty, and climate change. II. Economic Globalization While this view uses globalization as a modern term used to describe the changes in societies and the world economy that result from dramatically increased international trade and interconnectedness, supporters of economic globalization claim that the economic growth of any given country depends on the level of its integration into the world market. If markets function without any restrictions, they will eciently utilize all economic resources and automatically produce full employment and economic growth. From this point of view, the reason that we have poverty, unemployment, and periodic economic crises in the modern world is because markets have been constrained by labor unions, the state, and a host of social practices rooted in culture and history.3 According to this view point, globalization refers to the tendency of investment funds and businesses to move beyond domestic and national markets to other markets around the globe, thereby increasing the interconnectedness of dierent markets. Moreover, they describe the increase of trade and investments due to the falling of barriers and the interdependence of countries. In specically economic contexts, globalization is often understood to refer almost exclusively to the eects of trade, particularly trade liberalization
3

Shaikh, Anwar. 2004.

e Economic Mythology of Neoliberalism New School University: p. 1.

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Figure 1 World Openness (1990-2006)

35000 30000 25000 Billions $ 20000 15000 10000 5000 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

or free tradethe increasing movement of money, services, information, information technology, goods, services, and often people not just within countries, but also between continents. A. Free Trade and World Interconnectedness For the last two decades, there has been an upward trend in world exports of goods and services; in this period the world imports of goods and services have also grown. Openness refers to the sum of the total export of goods and services and total imports of goods and services. To illustrate this point, based on data from World Trade Organization Figure 1 is generated to indicate the countries of the world are becoming integrated into the global economy. Due to rapid technological advancement (2000-2006), annual growth of world openness is 11.23%, which is much bigger than the 6.09% growth rate for the period of 1990-2000.4 B. Trade and Economic Growth Proponents of globalization argue that the only way global poverty can be alleviated is through economic growth and that economic growth will occur only if countries participate in international trade to the greatest possible extent.5 Globalizations critics counter that increased participation in international trade forces developing countries to focus on exporting raw materials and other
4 Sum of total exports of goods and services and total imports of goods and services is called openness. 5 IMF sta, April 2000 (corrected January 2002) Globalization: reat or Opportunity?, Pp. 1-5.

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Figure 2 World Annual Growth Rate of Real GDP (1990-2008)

6,00 5,00 Annual Growth rate 4,00 3,00 2,00 1,00 0,00 1990 1991 1992 1994 1995 1997 1999 2001 2002 2003 2004 1993 1996 1998 2000 2005 2006 2007 2008

basic commoditiesthe only products that they can produce competitively on the global market, which keeps these countries impoverished and does not allow for the development of healthy, diversied economies.6 Globalization supporters also argue in favor of the ongoing eorts to integrate world economies by changing government policies and by aligning hundreds of countries and millions of people into one work force. Moreover, supporters of globalization are persuading doubtful countries to integrate into the world economy, arguing that this is the direction many countries take because the benets outweigh the risks. Countries become integrated into globalization hoping their economy will grow (Figure 2). If we run the function relationship between openness and growth rate of real GDP, we will see there is a strong direct relationship between the two and that the world has beneted a great deal from globalization. e worlds economic growth looks very interesting; the average growth rate of a real GDP is highly and positively correlated with the growth rate of openness. But contrary to the rosy predictions of this world aggregate empirical evidence, the share of the less-developed countries is far below the highly-advanced industrialized nations. C. Openness and Less-Developed Countries Economic globalization refers to the growing economic interdependence of countries worldwide through increasing volume and variety of cross-border
6

Oxfam International, Made Trade Fair Campaign, www.oxfam.org.

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transactions in goods and services, freer international capital ows, and more rapid and widespread diusion of technologyall of these are measured by openness. e deciency lies within the notion of openness, which as an aggregate is inadequate. Expansion of trade does not mean developed countries and less-developed countries benet the same way from economic globalization. Discussing integration in the world market, Anwar Shaikh (2004) proved that free trade generally favors the developed over the developing and the rich over the poor.7 Countries that have been able to globalize their economies are seeing faster growth and reduced poverty. is then is why conventional economic theory concludes that trade and nancial liberalization lead to increased trade, oer more extensive access to a wide variety of foreign products for consumers and companies, and create a global market based on the freedom of exchange of goods and services. Based on this teaching, the primary reason why countries have trade is the application of comparative advantage. e foundation of comparative advantage is simply that one country produces a product which it is most ecient at and exchanges it in trade with another country for the thing(s) that it gave up. With this everyone is supposed happy, but is that really the case? Due to historically uneven economic division of labor, the majority of less-developed countries have comparative advantage in producing the following four categories of products.8 ey are called Primary produces, according to UNCTAD: A. B. C. D. Agricultural raw materials. Ores and metals. Forestry and forestry products. Food items, excluding sh.9

Advanced industrialized countries, in other words developed countries, have the comparative advantage of producing manufactured products. Based on data from UNDP human development index tables, Table 1 shows lowincome countries export low value-added primary commodities (fuel is not included and will be discussed in the energy part of the study).

7 See Shaikh, Anwar. 2004. e Economic Mythology of Neoliberalism. New School University: Pp. 5-10. 8 China, India, and few other countries are not among this category of nations. 9 UNCTAD. 2008. Development and Globalization: Facts and Figures. New York: p. 51.

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Table 1 Percentage Share of Total Exports by Type of Products

Categories of Countries Primary Exports Manufactured Exports % High Technology Exports Of manufactured products 1990 18.3 0.0 17.5 2005 20.9 3.1 21.0

1990 High income Low income (excluding China and India) World 21.0 50.0 26.0

2005 18.0 49.0 21.0

1990 77.0 49.0 72.0

2005 78.0 50.0 75.0

As we can see, in 2005, low-income nations exports of manufactured products are 50% of total exports, compared to 78% for high-income. Moreover, from 1990 to 2005 the change in structure of export products for poor nations is almost non-existent. However, the share of the high-technology products part of the export improved from 0% in 1990 to 3.1% in 2005.10 It is important to elaborate on this IT trade further. e key part of economic globalization is the advancement of Information Technology. A combination of developing and developed countries is involved in exports and imports of information technology products; see Table 2. For the period of 2000-2006 the average percentage share of information technology products exports from total world exports of goods was 15%.11

10 11

Primarily outsourcing IT productions is behind this change. Figure is calculated based on data obtain from WTO.

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Table 2 World Distribution of Information Technology ProductsExports and Imports by Countries (2005 Million $ and Percentage)
IMPORTERS Country Volume % of world total Country EXPORTERS Volume % of world total

Developing Countries: Philippines ailand Mexico Malaysia Taipei, Chinese Singapore China 21970 24799 47923 48992 60965 84914 199006 Total: Developed Countries: Australia Canada Republic of Korea Japan United States EU(15) 15142 32213 59217 79797 237429 419779 Total: Grand Total:
Source: WTO 2007.

1.4 1.6 3.0 3.1 3.8 5.3 12.5 19.1

Philippines Mexico Malaysia Taipei, Chinese Singapore China

26940 33904 59370 71891 111969 213637 Total:

1.9 2.3 4.1 5.0 7.8 14.8 35.9

1.0 2.0 3.7 5.0 14.9 27.9 54.5 74.6

Canada Republic of Korea Japan United States EU(15)

19045 87947 144759 170121 400328 Total:

1.3 6.1 10.0 11.8 27.7 56.9 92.8

Grand Total:

As clearly seen in the Table 2, there is not much left for the rest of the world. e remaining parts of IT products exports and imports are done by Central and East European countries: India, Brazil, Australia, and South Africa. Table 2 indicates important informationIT products are Intra Trade. Intra trade refers to a trade in which each country both imports and exports IT products. e reality is that most parts of the world are left out. Information Technology products are essential for a given economy to utilize the positive aspects of globalization. is shows that economic globalization oers extensive opportunities for truly worldwide development, but it is not progressing evenly. In the case

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of China, economic globalization has another type of shortcoming, which will be addressed through a discussion of economic globalization and the environment. III. Economic Growth and the Environment e relationship between economic globalization and environmental aairs takes a number of forms, including the encounters between world productions of variety of commodities and ecological systems; and the pollution and degradation of the global commons (such as the glaciers, oceans and the atmosphere) caused be heavy consumption of pollutant energy resources. Another important issue involved with mass production and consumption is the transportation and diusion of wastes and polluting products across the globe. All of these have created a need for the formation of global institutions regimes with networks and treaties that seek to regulate all these forms of environmental degradation. A. Consumption of Energy and Economic Growth As was mentioned before, supporters of economic globalization claim that the economic growth of any given country depends on its level of integration into the world market. If the market functions without restrictions, it will eciently utilize all economic resources and automatically produce full employment and economic growth. e fact of the matter is that for the last two decades the integration of countries into the world market has happened and human societies across the globe have established progressively closer contacts. Recently, the pace has dramatically increased. For the last two decades, the pattern of production has dramatically changed and world production of goods and services has globally increased. ese productions need utilization of resources (natural, human). It is no coincidence that world output and energy consumption are inseparable.12 Figure 3 shows that annual average growth rate of world total energy consumptions for the period of 2000-2008 is twice as high as data for the 1990s; moreover, data also indicate energy consumption for next 20 years has upward trends.13 Speeded up economic globalization causes production to accelerate, while the lifespan of the products is dropping, resulting in a corresponding explosion of non-renewable energy.
12 Graph is based on data from Energy Information Administration, International Energy Annual 2008, Table E.1. 13 Data beyond 2008 is estimate.

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Figure 3 World Average Annual Growth Rate of Energy Consumption (Selected Periods)
3.0 2.5 Growth Rate 2.0 1.5 1.0 0.5 0.0 1.3 2.6 2.2 1.9

2.5

1990s

2000-2008

Estimate 2010

Estimate 2020

Estimate 2030

World major sources of energy are: a. Non-Renewablefossil fuels such as petroleum, natural gas and coal. b. Renewablenuclear electric power, hydroelectric power, geothermal, solar energy, wind energy and biomass energy. Fossil fuels are the most common source of energy on Earth. e share of fossil fuels of the world consumption of energy for the period of 2000-2008 was 89% (see Figure 4). Renewable sources of energy for the year 2008 counted only 7.35%, better than before, however, still very small. e possibility of nding an alternative for non-renewable sources of energy in the foreseeable future is not all that great.14 Domestic corporations as well as transnational corporations are major forces behind economic globalization and economic growth. All of these, including state and households, are major consumers of energy. High economic growth undermines per capita resource consumption. Consumption of environmental resources already exceeds sustainable limits and corporations and governments are often not interested in damage caused by environmental destruction, especially through the process of global warming. In the absence of vision, for

14 Findings show the estimate of average percentage share of coal, natural gas and petroleum for next 25 years is above 75%.

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Figure 4 Annual Average Percentage of World Energy Consumption by Type (2000-2008)

Biomass 3% Natural Gas 23% Nuclear 8%

Hydrolic 3%

Geothermal 0%

Wind 0%

Coal 23% Petroleum 40% Solar PV 0%

the next 20 years petroleum, natural gas and coal will be major sources of world energy consumption. ere are some changes in the pattern energy sources, shifting from fossil fuel to renewable energy sources (see Figure 5). Growth rate of renewable energy in the years 2000-2008 has gone up from where it was in the 1990s and this is way below the level that can save the planet from environmental destructions. e strong hand of state is needed to make a real commitment to providing necessary funds to search for alternative energy and protect the environments. ere have been some attemptsthe United Nation Framework Convention on Climate Change sets an overall framework for intergovernmental eorts to tackle the challenge posed by climate change. It recognizes that the climate system is a shared resource whose stability can be aected by industrial and other emissions of carbon dioxide and other greenhouse gases. e Convention enjoys near-universal membership, with 192 countries having ratied.15 To address the relationship between energy consumption and climate change, it is necessary to start with global warming.

15

e US has ratied this protocol.

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Figure 5 World Average Annual Growth Rate of Energy Consumption (Renewable & FossilDierent Time Periods)
1.40 1.20 1990s 1.00 Percentage Change 0.80 0.60 0.40 0.20 0.00 20002008

Total Fossil Fuel

Total renewable

All Energy

B. Consumption of Energy and Global Warming According to the Energy Information Administration global warming is an increase in the near surface temperature of the Earth. While there are temperature uctuations that have occurred over the life of our planet, those changes have been the result of natural inuences. Here the term global warming refers to the recent increase in temperature brought about due to increased anthropogenic emissions of greenhouse gases. e greenhouse eect is so named because of the heating that occurs when these GHGs allow sunlight to enter the Earths atmosphere but not heat to escape, radiating the heat back to the surface like the glass in a greenhouse. GHGs include water vapor (H2O), carbon dioxide (CO2), hydrouorocarbons (HFCs), carbon monoxide (CO), methane (CH4) and peruorocarbons (PFCs). While the water vapor and some of the carbon dioxide and methane are naturally occurring, much of the carbon dioxide and methane are man-made, as are other GHGs like hydrouorocarbons and peruorocarbons, which are created in industrial processes. Due to greenhouse gasses, in many locations on the planet there will be an increase or decrease in temperatures. As mentioned before, global warming is both a natural phenomenon and one created by humans. e Earth could not exist in its present state of beingincluding human life, oceans, forests, and

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mammalsunless there are some naturally-occurring greenhouse gases such as carbon dioxide (CO2), methane (CH4), and water vapor caused by natural phenomena like volcanoes and solar variations. Naturally-occurring greenhouse gases trap some heat in the atmosphere so the Earth is not extremely cold. Increase in the near-surface temperature of the Earth due to natural inuences is not the problem. e problem we are facing is the volume of greenhouse gases in the atmosphere and if the Earth is warmer than it should be. Its when countries start contributing excessive amounts of greenhouse gases that they become a problem. Principal among the greenhouse gases that enter the atmosphere because of human activities is carbon dioxide (CO2), which comes from the burning of fossil fuels (oil, natural gas, and coal), solid waste, trees and wood products, and also as a result of other chemical reactions. Carbon dioxide (CO2) is a chemical compound composed of two oxygen atoms covalently bonded to a single carbon atom. It is a gas at standard temperature and pressure and exists in the Earths atmosphere in this state. is heavy colorless gas is primarily formed by animal respiration and combustion of fossil fuels. It is removed from the atmosphere by photosynthesis in plants and by dissolving in water, especially on the surface of oceans. Carbon dioxide is probably the most important of the greenhouse gases as it accounts for the largest proportion of the trace gases and is currently responsible for huge portion of the enhanced greenhouse gas emission in the USA (see Table 3.) Other greenhouse gases entering the atmosphere as a result of human activity include methane (CH4), emitted during the production and transport of coal, natural gas, oil, livestock and other agricultural practices; nitrous oxide (N2O), emitted during agricultural and industrial activities, as well as during combustion of fossil fuels and solid waste; and uorinated gases emitted from a variety of industrial processes.16

16 Inventory of the US Greenhouse Gas Emission 1990-2000, (April 2009), Executive Summary, Pp. 3-5; and http://www.epa.gov/climatechange/emissions/usinventoryreport.html.

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Table 3 US Recent Greenhouse Gas Emission (Teagram CO2 eq = million metric tons CO2)
1995 Total After sink.17 CO2 OTHER % of CO2 from the total 2000 2001 2002 2003 2004 2005 2006 2007 6,494.00 7,032.60 6,921.30 6,981.20 6,998.20 7,078.00 7,108.60 7,051.10 7,150.10 5,718.70 6,359.00 6,171.10 6,154.40 6,137.30 6,204.30 5,985.90 6,000.60 6,087.50 5,394.20 5,939.70 5,846.20 5,908.60 5,952.70 6,038.20 6,090.80 6,014.90 6,103.40 1,079.80 1,099.80 1,092.90 1,075.10 1,072.60 1,045.50 1,039.80 1,055.60 1,046.70 82.44 83.06 84.46 84.47 84.64 85.06 85.31 85.19 85.36

Source: Inventory of the US Greenhouse Gas Emission 1990-2007, p. 5

Energy-related activities, primarily fossil fuel combustion, accounted for the vast majority of US CO2 emissions, as we can see from the Table 4: Table 4 US Distribution of CO2 Emission among Dierent Activities (Teagram CO2 eq = million metric tons CO2)
1995 2000 2001 2002 2003 2004 2005 2006 2007 Fossil Fuel 4,724.10 5,032.40 5,577.10 5,507.40 5,564.80 5,617.00 5,681.40 5,731.00 5,735.80 Combustion; Electricity 1,809.60 1,939.30 2,282.30 2,244.30 2,253.70 2,283.10 2,314.90 2,380.20 2,397.20 Transportation 1,485.10 1,599.40 1,798.20 1,775.60 1,828.90 1,807.60 1,856.40 1,869.80 1,887.40 Industrial 844.90 876.50 860.30 852.50 854.80 856.00 857.70 847.30 845.20 Residential 340.10 356.50 372.10 363.60 360.50 382.90 368.30 358.50 340.20 Other 244.40 260.70 264.20 271.40 266.90 287.40 284.10 275.20 265.80
Source: Inventory of the US Greenhouse Gas Emission 1990-2007, p. 7

Future projection of worldwide emission of CO2 shows the situation is not getting better. Figure 6 shows these projectionsfor the next 22 years more carbon dioxide will be released into the atmosphere.18 With excessive
Fortunately a signicant portion of greenhouse gases are sinked. Figure 6 is constructed based on data from the International Energy Administration, International Energy Outlook 2008, Figure 8.
17 18

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Figure 6 World Carbon Dioxide Emissions (2005-2030)

45 40 35 Billions Metric Tons 30 25 20 15 10 5 0 2005 Estimate 2010 Estimate 2015 Estimate 2020 Estimate 2025 Estimate 2030 28.1 34.3 31.1 37.0 39.6 42.3

greenhouse gas buildup, the Earths atmosphere warms to unnatural temperatures. According to the Intergovernmental Panel on Climate Change, Climate change refers to a change of climate that is attributed directly or indirectly to human activity that alters the composition of the global atmosphere and that is in addition to natural climate variability observed over comparable time periods.19 Massive consumption of petroleum, natural gas and coal for electricity, transportation, other industrial activities, and residential-caused global warming undermines the delicate balance of the planet. What would happen if this balance rapidly deteriorated? C. e Impact of Climate Change and Extreme Weather

It is very likely that with excessive greenhouse gas buildup, the Earths atmosphere will warm to unnatural temperatures. e average temperature of the atmosphere has risen by 0.74 F (0.18 C) during the last century according to the study by the Intergovernmental Panel on Climate Change (IPCC). Based on some of the models by the IPCC, the prediction is that the global tem-

19 Intergovernmental Panel on Climate Change, Climate Change 2007: Synthesis Report, IPCC Plenary XXVII (Valencia, Spain, 12-17 November 2007), p. 27. http://www.ipcc.ch/pdf/ technical-papers/climate-change-water-en.pdf.

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perature is likely to rise by 1.1 to 6.4 C between 1990 and 2100.20 According to the Natural Resources Defense Council over the past 50 years the average global temperature has increased at the fastest rate in recorded history and the trend of hot temperature is acceleratingthe 10 hottest years on record have all occurred since 1990.21 As a consequence of the planets hot temperatures, glaciers will retreat and ice near the poles will melt at an increasing rate. As the ice melts, land or open water takes its place. Both land and open water are on average less reective than ice, and thus absorb more solar radiation. is causes more warming, which in turn causes more melting, and this feedback cycle continues.22 omas Knutson indicates that it is very likely that the rise of sea surface temperatures will contribute to the intensity of global hurricanes23 and it is very likely that the climate change and extreme weather conditions will worsen health problems globally. Climate change through increasing weather temperatures, sea-level rise and changes in water, air and food quality has increased the burden of diarrheal diseases; increased the frequency of cardio-respiratory diseases due to higher concentrations of ground-level ozone in urban areas; and altered spatial distribution of some infectious diseases, and the expansion of tropical diseases.24 D. Social and Economic Cost of Climate Change and Extreme Weather Companies worldwide search for cheaper labor, abundant resources, new markets, and political climates to utilize themfor their main motivation is prot maximization. eir economic activities create a negative externality for others.25 Corporations do not cover the cost that they inict on us. eir production is done through massive consumption of energy, as we saw fossil fuels are major contributors to climate change. It is a worldwide problem and damage is irreversible.26 Quite a numbers of scholars, as well as worldwide institutions, have provided a range of methods for quantifying and assessing the cost of climate change damages. Based on understanding the risks and worldwide
Ibid., p. 7. Natural Resources Defense Council http://www.nrdc.org/. 22 Wikipedia, the Free Encyclopedia, pp 6-7: http://en.wikipedia.org/wiki/Eects of_global_ warming. 23 Ibid., p. 3. 24 Intergovernmental Panel on Climate Change: Working Group II Report, Chapter 8, pp. 393-419. 25 Externality is a common concept use in microeconomics, it refers to an eect of economic activities of a rm or individuals on others well being. 26 Ibid., pp. 2-5.
20 21

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impacts, they advocate action on controlling emissions. Other environmentalists advocate the idea that the free market needs to have limits imposed on its operations, otherwise the unfettered free market tends to weaken or destroy the resources of life and freedom for the majority, to benet mainly a small wealthy minority, and to leave most people with little but their own work to live by. It is already too latehuman-induced global warming has already aected many physical and biological aspects of our life throughout the globe. e main task is preventing it from getting worse. Among other eects: water stress, drought, ood, sea level rise, unexpected disease, and population dislocation are consequences of climate change. Falling crop yields in many areas, particularly developing regions, are expected. Lower agricultural products mean food shortage, food-price hikes and, eventually, starvation in poor nations. Table 5 indicates the decline in growth of agricultural products. ere is another social problem caused by global warming, and this one is displaced populations in major coastal citiescalled environmental refugees. In 2006 world population was 6.671 billion; out of this number, 23.7 million (less than 0.4%) were internally displaced.27 It is, however, estimated that the world population for 2050 will be over 10 billion; out this number, due to costal ood and global warming, 150 million of the world total population will be dislocated.28 Nicholas Stern (2006), former Chief Economist and Senior Vice-President of the World Bank, has conducted a detailed research on the economics of climate change called Stern Review on the Economics of Climate Change. is complete and comprehensive work covers almost all aspects (positive and negative) of climate change. At the end of his presentation at the Tokyo Climate Change Symposium he said ere is still time to avoid the worst Table 5 Annual Growth Rate of Agricultural Products Time Period 1950s 1980s 1990s 2000-2006
Source: World Trade Statistics; 2007, Table A1. United Nation Development Program, Human Development Index: 2007/2008, Table 26. Wikipedia, the free encyclopedia, Eects of Global Warming, http://en.wikipedia.org/ wiki/Eects of_global_warming, p. 11.
27 28

Agricultural Products 3.07 2.34 2.24 2.17

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impacts of climate change, if we act now and act internationally. e Stern Report is a good starting place for world action on bringing global warming under control. Following in conclusion are Sterns main recommendations:29 1. Reducing demand for emissions-intensive goods and services. 2. Increased eciency, which can save both money and emissions. 3. Action on non-energy emissions, such as avoiding deforestation, and switching to lower-carbon technologies for power, heat and transportations. 4. Global sharing knowledge and information. 5. Co-ordination of R & D programmers searching for cleaner energy. Conclusion Global warming is a catastrophic force that was mainly created by human beings through the excessive use of natural resources. As explained, the evidence of repeated studies are clear and conclusivethat climate change and global warming are mostly caused by CO2 (carbon dioxide emissions). e burning of fossil fuels (oil, natural gas, and coal) are fundamental sources of producing energy and energy is the pivotal factor in providing mass production. Corporation creates the need and desire for mass consumption in order to promote mass production. For environmental protection, it is a dicult task to confront the mass production behavior of monopoly capital, both domestic and transnational, because many of the inuential businesses and governments have been against the idea of global warming and many have poured a lot of resources into discrediting what has generally been accepted for a long time as real. Now, ironically, the mainstream is generally worried about climate change impacts and the discourse seems to have shifted accordingly. e impacts of climate change will be felt everywhere, with the worlds poorest countries feeling it the most. e major domestic corporations, as well as transnational corporations, are major forces behind the consumption of environmental and natural resources. eir main goals are to produce as much as possible and make people buy them. ese consumptions of energy regardless of their justications already exceed sustainable limits. Corporations and governments are often not interested in damage caused by environmental destruction. Economic globalization is accelerating ecological catastrophe by lowering environmental protections in an ecological race to the bottom. Neoliberal policies imposed by international institutions or voluntarily accepted by national
29 Stern, Nicholas. 2006. Symposium, Tokyo.

e Economics of Climate Change, November 28 Climate Change

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governments restrict environmental regulation. Oil reneries, chemical plants, steel mills and factories of global corporations are the main source of greenhouse gases, ozone-depleting chemicals, and toxic pollutants. However, here in the US, which has highest per capita CO2 emission we could encourage federal and local government to allocate funds for nding renewable energy. Renewable energy simply means to utilized natural resources such as wind, solar, water, biomass, and although nuclear fusion does not t the category, we will consider it as one of the alternative energy sources. Moreover, we can encourage the Environmental Protection Agency (EPA) to assist state and local governments in their clean-energy eorts by providing technical assistance, analytical tools, and outreach support. We could also change our consumer behavior habits. To illustrate this point I am using some of my students suggestions: Buy and use Energy Star products, switch to orescent light bulbs, recycle, and buy products with recycled contents.

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