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Leading Toward a Better World? Filling the Gaps of Globalization
By Prof. Rosabeth Moss Kanter Special Featured Contributor
Issue date: 4/16/02 Section: News
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By Prof. Rosabeth Moss Kanter Special Featured Contributor
Seven months ago the horrible terrorist attacks on the United States precipitated a crisis addressed in the short-term by military actions and security measures. But what will it take in the longer run to lead the world to a better place? We should begin by understanding three significant gaps.
(1) The gap between the promise of global integration and the current reality of divisiveness.
A dozen years ago, it seemed so easy. In 1989, second and third world countries began to be redefined as "emerging markets." The Berlin Wall came down, Communism fell in Eastern Europe, Asian financial markets deregulated, and Latin American countries democratized and liberalized. Globalization advocates were confident that open markets would guarantee prosperity and peace, that information networks would create a connected world community.
Today, the picture is different - and full of conflict over differences. Western countries are pursuing a war on terrorism sometimes cast, in Samuel Huntington's words, as a "clash of civilizations." Conflagration in the Middle East follows implosion in the Balkans. Anti-globalization protestors have brought attention to shortfalls in international institutions.
Rock stars have helped publicize problems of global poverty. And there is a new mood of protectionism, for example, steel tariffs in the U.S.
Instead of having become one connected community, today people could be even more aware of what divides them. The divisiveness may be growing even within rich countries. For example, in the U.S., polls in the mid- to late-1990s reported more negative attitudes toward minorities, women, gays, immigrants and elders than reflected in earlier studies.
For global elites - what I call the "world class" - differences may be blurring, as English becomes the common language of commerce, businesses harmonize standards across countries, and knowledge workers with professional talents compete on a world labor market and move easily across borders. But for others, globalization seems to sharpen contrasts and raise tensions. Understanding differences rather than pretending they don't exist is critical for conflict resolution.
(2) The gap between macro-policies and micro-opportunities.
Globally, trade has helped reduce inequality across nations. According to World Bank research, growth rates accelerated since 1970s for developing countries that chose to globalize, while negative growth tended to characterize those that didn't. Higher growth rates have translated into higher incomes for the poorest segments. But cause and effect is not clear. Countries that chose to globalize may have been better equipped in other respects. And global trade benefits some developing countries more than others; China's trade boom displaces production from other parts of Asia.
