Intro

The following text is official policy paper of LYMEC.

Human societies across the globe have established progressively closer contacts over many centuries, but recently the pace has dramatically increased. Multinational corporations sell their products to consumers around the world. Money, technology and raw materials move ever more swiftly across national borders. Ideas and cultures circulate more freely. This process is widely named “globalization”, but, amazingly for such an extensively-used term, there does not appear to be any precise, widely-agreed definition of the latter. The breadth of meanings attached to it seems to be increasing rather than narrowing over time, taking on cultural, political and other connotations in addition to the economic.  

One thing is sure: the world is changing. But what about the Old Continent, Europe1? How should it adapt to this new environment? What should be its role in this globalised world? What are the challenges and opportunities that arise from globalisation? This is what this policy paper aims at addressing.  

1. Economic globalisation

Economic globalisation refers to the increasing speed and intensity of production, trading and financial exchange across global distances. This is a process which has developed over centuries, even millennia, but is taken by many analysts to have accelerated significantly in the post-WW2 period and in particular over the last twenty to thirty years. It has notably been driven by technological progress and sharp reductions in trade barriers, increasing the flows of information and commerce across the globe. But it was also largely helped by a relatively stable political and economic environment, compared to the first half of the century.

Globalisation = economic growth

Studies show that countries that are more integrated into the world economy grow faster than those that are less integrated. This is not a surprise as global markets offer greater opportunity for people and economies to tap into more and larger markets around the world: they can have access to more capital flows, technology, cehaper imports, and larger export markets. Market liberalisation leads to economic growth, through enhanced efficiency and specialisation.  

As a result of globalisation and economic growth, global average per capita income rose strongly during the 20th century. It is true however that there is considerable variation among countries and that the income gap between rich and poor countries has actually been widening for many decades. Nevertheless, incomes do not tell the whole story: broader measures of welfare that take account of social conditions (e.g. the UN’s Human Development Indicators (HDI), which takes education and life expectancy into account) show that poorer countries have made considerable progress. But even if the HDI gap has narrowed in the long-term, the quality of life for many has not improved, with many still in poverty, which brings new urgency to policies specifically designed to alleviate the latter. Globalisation is however part of the solution. Countries that pursue the right policies (e.g. market liberalisation and well-targeted public expenditure) can indeed expect to see increased growth and a sustained reduction in poverty.  

Europe can make with this regard a vital contribution to poorest countries’ efforts to integrate into the global economy by opening its market access for all their exports, encouraging structural reforms and foreign direct investments to these countries, and by supplementing more rapid debt relief with increased development aid. In line with UN Millennium Development Goals, European governments – and in particular EU Member States – should also reach as soon as possible the target of dedicating 0.7% of their Gross National Income to official development aid.

Globalisation, an opportunity for Europe

There is a lot of anxiety in Europe about economic globalization. Many complain that jobs will be lost when emerging economies can produce our goods and services cheaper, but fail to see the economic opportunities that it creates: we can gain when we buy what we need cheaper and we specialise on what we do best, investing in economic sectors where we are at the vanguard and where new jobs can be created.

For Europe to benefit from globalisation, it needs to pursue policies that embrace globalization rather than attempt to protect itself from it. LYMEC calls in this respect for the abolition of EU’s Common Agricultural Policy (replacing it by a Common Environmental and Food Safety Policy), a rapid conclusion of the Doha talks (including the liberalisation of services, key to Europe’s economy), the completion of Europe’s Internal Market, the pursuing of the “Better Regulation” initiative and higher investments in research and development (3% GDP target).  

At the same time, Europe should squarely address the need to ensure the benefits are widely shared, focusing notably on education, vocational training and well-targeted social safety nets. As globalisation creates change, Governments shall indeed make sure those workers that are displaced have the capability to adapt (“lifelong learning”) and that those that have not this ability, whatever the reason, are assisted (“flexsecurity”). The best way to deal with the changes being brought about by globalisation and to avoid anxiety is to be open and honest about them: yes, globalisation brings change, but yes, globalisation is still good for the economy.

2. Political globalisation

Global issues require a global approach. Political globalisation generally refers to the increasing number and power of inter-governmental organisations (IGOs) and international non-governmental organisations (INGOs) which govern or influence the world, as well as to the establishment of continental associations of nations such as the European Union or the Association of South-East Asian Nations. Underpinning this rise is the growth in number and importance of international treaties and agreements, covering matters ranging from trade to global warming and human rights. This very spread of IGOs, INGOs and treaties can be seen as a response to a deeper process of globalisation whereby the types of problems now confronting humanity can no longer be adequately addressed on a purely national scale or through the old method of bilateral agreements between two nation states. “Borderless” issues such as environmental degradation, refugees and mass migration, or the fight against terrorism, require a global approach.

Globalisation of human rights and democracy

Whilst some global issues such as climate change, biodiversity, proliferation of mass-destruction weapons, etc. are already being addressed at global level through appropriate treaties and institutions, others are being constantly ignored by lack of political will. And among these are human rights and democracy.  

LYMEC believes that, in a globalised world, the fundamental human rights and the right to democracy of millions of people cannot be ignored and that Europe should go beyond trade alone and extend to people, reinforcing their basic civil and political rights. Europe should therefore promote democracy by helping the non-violent dissidents of the world and engaging with governments who are willing to promote democratic reforms. It should furthermore promote the establishment of regional unions based on the principles of market economy, democracy and human rights in order to prevent regional tensions - based on the EU model. And it should aim at globalizing justice and the rights of the individual throughout the world through the creation of a Community of democracies, which would uphold the universal values of democracy and human rights, promote their diffusion and punish those who hinder them or fight against them – on the model of the Council of Europe.

LYMEC also believes that, in the face of growing concerns with climate change, a more global volontarist approach should be taken. It calls in this respect for the creation of a World Environmental Organisation based.  

And LYMEC continues to call for a deep reform of the United Nations, whereby Nation States currently seating in the Security Council would be replaced by regional organisations such as the European Union, each of which would have a veto right.

3. Environmental globalisation

Climate change and global warming are global issues, having their impact on the entire world, including Europe. The process of world’s industrialisation has led towards the more rapid and severe global environmental changes, which threatens our planet. The biggest factor of present concern is the increase in CO2 levels due to emissions from fossil fuel combustion, followed by aerosols, but land use, ozone depletion, animal agriculture and deforestation also impact climate.  

Environmental globalisation is also very much interlinked with economic globalisation in that sense that economies become very much interdependent on each other’s natural resources. In some cases, energy resources have even become a political tool that the leaders of these countries have tried to abuse on the foreign affairs’ scene (e.g. Russia, Venezuela).

LYMEC calls in this respect Europe to pursue its investments in energy generation and transmission capacity. LYMEC urges in particular the European Union to urgently set-up a common external energy policy to co-ordinate relations with external suppliers such as Russia and OPEC countries, the energy supply dimension to be added to the EU Neighbourhood Program, the energy supply dimension to be added to the agenda of the European Security and Defence Policy, the members of the EU to complete - as committed - the Single European Energy Market by 1 July 2007, the EU to make a broader recourse to nuclear energy as part of a EU energy policy and a substantial leap in funding for energy research and innovation, especially in the fields of renewable energy (notably: wind power, solar energy, hydropower and biofuels).

The European Union, responsible for around 14 % of global greenhouse gas emissions today, has always been in the vanguard of international efforts to tackle climate change. Under the Kyoto Protocol, all EU Member States have committed to cutting their combined emissions of the greenhouse gases to 8 % below the 1990 level by 2012 - an overall target furthermore translated into a specific legally binding target for each Member State. To help meet its Kyoto targets cost-effectively, the EU has also developed the world’s largest company-level scheme for trading in emissions of CO2. But the EU should continue its efforts and be the “best in class” on environmental issues. It should also develop appropriate incentives for the private sector to invest in new environment/energy solutions and accumulate an economic know-how that it could then export to the rest of the world. As of today, more than 80 % of the EU’s emissions come from the production and use of energy and from transport: these should therefore be the 2 main targets for EU environmental policy.  

LYMEC acknowledges the trade-off between world’s industrialisation/development and the preservation of the environment. However, this trade-off could be mitigated through appropriate global policies. LYMEC calls in this respect the EU to pioneer the idea of developing a World Environmental Organization (WEO) that would ensure the enforcement of international environmental agreements.  

4. Cultural globalisation

Globalisation of information and communication, triggered by a rapid development of technologies, has been leading towards the cultural globalisation. Globalisation of culture has revolutionised people’s relations with respect of time and space. Due to reduced physical limitations the relations between people, governments and cultures has significantly increased.  

LYMEC believes that cultural globalisation increases individual freedom by enabling every individual to easier experience and familiarize with the cultural heritage of different parts of the world. Generally all cultures are constantly changing and are affected by technologies, markets, migration processes. However, the growth of cross-cultural contacts has undoubtedly made a huge step towards the cultural homogenisation.

LYMEC believes in the spread of common democratic values as a positive aspect of cultural homogenisation. Democratic values are shared and transmitted through various channels: international language, cultural industries, international press, media, music etc. Shared democratic values enables culturally different actors act fairly in the global arena.  

LYMEC believes that common European values reflecting in its cultural diversity needs to be properly maintained with the help of European policies. Maintaining and strengthening cross-cultural dialogue and trans-national mobility should not only remain inside the European Union. European culture should become more open to the people from the other parts of the world. LYMEC believes it can be achieved through developing tourism and attracting people from the rest of the world to be interested in the European heritage and visit our continent.  

EU should invest in projects related to cultural dimension: setting up cultural and tourist services, building cultural facilities. Another way for better cultural understanding and preserving the diversity is by supporting development and promotion of innovations in telecommunications, audiovisual industries, e-services as well as promoting multilinguism.

Globalisation increasingly shapes the lives of nations and individuals. It is a deeply emotive issue with significant political ramifications and can be understood in more ways than simply through an economic lens. Globalisation shapes tomorrow’s world in all aspects, economically, culturally, environmentally, politically and thereby creates mixed feelings: hostility, even fear, resignation, or enthusiasm.

The best way to deal with the changes being brought about by globalisation is to be open and honest about them. Change is inherent to progress, and whilst globalisation raises a number of challenges, it also brings many opportunities. Economic growth, the spread of democracy and human rights, a healthier environment, and a richer global culture are among these promises.

All in all, LYMEC therefore believes that globalisation is good for Europe, and that Europe should seize these challenges as an opportunity for wide-ranging reforms. The world is changing fast and Europe should be at the vanguard rather than in the bandwagon of the world’s progress.