Globalisation is not dead, but it is fading: 'Glocalisation' is becoming the new mantra
//Summary - Level-C2//
Globalisation is evolving into "glocalisation," emphasising shorter supply chains and a strategic state role. Despite challenges discussed at the World Economic Forum, globalisation persists, which is evident in multinational presence. Central banks grapple with economic balancing acts while geopolitical tensions shape the narrative. The shift towards "glocalisation" is fueled by strained US-China relations, onshoring trends, and factors like the pandemic and geopolitical conflicts. Industrial policy gains acceptance, notably for green growth. Nick Stern sees AI's potential in climate action, supporting a green growth plan amid changing global dynamics.
Industrial policy, such as a green growth plan, is no longer dirty as nations recognise the need for shorter supply chains and a strategic role for the state.
A)
1)
Not bad. But it's not great either. That summed up the mood as the World Economic Forum in Davos closed last Friday with a panel discussion on the state of the global economy.
It's not bad because most countries have outperformed expectations from a year ago. It was not wrong because sharply rising interest rates didn't tip the US, the eurozone, and the UK into recession. Not bad because the war between Israel and Hamas did not send oil prices soaring above $100 a barrel.
2)
It's not great because central banks are walking a tightrope between cutting interest rates too quickly and reigniting inflation, keeping them too high and plunging their economies into recession.
Not fabulous because the first weeks of 2024 have led to a broader conflict in the Middle East, with implications for one of the world's most important trade routes. And not great because, as Davos showed, the global economy is deeply fragmented.
3)
Inevitably, there is a risk that things will turn out badly in 2024. One leading global politician, speaking privately, said that the repeated blows since 2020 mean it would be wise to be prepared for the next surprise shock. Only the most incurable Davos optimist would argue with that.
B)
4)
Washington and Beijing are locked in a fierce struggle for economic supremacy. The North-South divide is widening, and a new breed of autocrats is challenging liberal democracy. The planet continues to heat up. In a week that marks the 100th anniversary of Lenin's death, there are again competing visions of what constitutes progress and success.
Yet the death of globalisation has been greatly exaggerated. The reach of the multinationals and banks that continue to flock to the World Economic Forum is proof of this.
5)
So did the rapid growth of artificial intelligence (AI), part of a tech revolution transcending borders and leaving national regulators scrambling. A year ago, ChatGPT was still in its infancy. This year, AI was at the heart of the Davos debate, with those hailing its potential to help solve pressing problems - such as the climate crisis - pitted against those warning of its risks.
C)
6)
So globalisation is not dead or even on its last legs. Neither is the decline of Western liberal democracy. Productivity has been weak recently, and living standards have been squeezed.
Germany's finance minister, Christian Lindner, raised eyebrows when he said his country was the tired man of Europe. But there are good reasons why there are no TV images of asylum seekers trying to get to Russia or China.
7)
What is true is that global capitalism, having been forced onto the defensive, is morphing into something else. Peak globalisation and Peak Davos happened some time ago, around the 2008 global financial crisis, but the repeated shocks since 2020 have changed the dynamic.
D)
8)
Everything that has happened since the arrival of the Covid pandemic points to a new paradigm: some call it de-globalisation, others - perhaps more accurately - "glocalisation".
9)
An ugly term, glocalisation is not the global free market, and it is not autarky (a nation operating in a state of self-sufficiency), but something in between.
It involves shorter supply chains, emphasising rebuilding domestic manufacturing capacity and a more strategic role for the government. As with any mixed economy, glocalisation varies from country to country.
E)
10)
Where Davos once extolled frictionless supply chains stretching from China to the developed countries of Europe and North America, there is now a recognition that low cost is not everything and that it is valuable for governments to know that they will not run out of vaccines, protective gear, computer chips and energy.
11)
The attacks on cargo ships in the Red Sea, forcing much longer voyages around the Cape of Good Hope, are the latest example of how vulnerable long supply chains have become.
As Christine Lagarde, president of the European Central Bank, said at the closing session of Davos: "We have relied a little too much on efficiency over security." Lagarde was right to point out that a bit of rebalancing is not a bad thing.
F)
12)
The long-term causes of glocalisation lie in the increasingly fractious relationship between the US and China - a relationship that has deteriorated since Washington woke up to the threat posed by China's rapid growth and its signalled plan to use its economic power to challenge US global hegemony.
The US Chips Act and the Inflation Reduction Act are examples of America's determination to rebuild its industrial base through active government intervention.
G)
13)
But while the shift towards onshoring previously outsourced production would have happened anyway, it has undoubtedly been accelerated by the past four years: a pandemic, supply chain bottlenecks, a surge in inflation and the war in Ukraine.
The result is that industrial policy is no longer a dirty word, even in Davos. Indeed, there was a lot of interest at the WEF in Labour's plans for boosting the UK's supply side.
H)
14)
Nick Stern, author of the landmark report on the economics of climate change, believes there is a potential sweet spot where the demands for more robust growth and the fight against global warming intersect.
He says AI can act as an accelerator to help developing countries mitigate and adapt to climate change. He is not blind to the fossil fuel industry's resistance to action on global warming, but he believes the positives outweigh the negatives.
15)
Stern insists investing in green projects would be suitable for growth and fiscally responsible. A green light for Labour's green growth plan, in other words. And glocalisation in action.
Globalisation is not dead, but it is fading: 'Glocalisation' is becoming the new mantra
// New words//
mantra = a repeated word or phrase that is chanted or meditated upon
Sample sentence: During meditation, she focused on the mantra "peace and tranquillity" to calm her mind.
plunge = to fall or drop suddenly and quickly
Sample sentence: The brave diver decided to plunge into the deep, dark waters of the mysterious cave.
recession = a period of economic decline, usually characterised by a decrease in GDP
Sample sentence: Many businesses struggled to survive during the economic recession 2008.
reigniting = causing something to start burning or blazing again
Sample sentence: Adding more wood to the fire was the key to reigniting the flames in the fireplace.
implications = possible effects or consequences of an action or decision
Sample sentence: The decision to cut funding seriously affected the research project's progress.
fractured = broken or cracked into pieces
Sample sentence: The fractured mirror reflected a distorted image of the room.
Inevitably = unavoidably; bound to happen
Sample sentence: With the storm approaching, it would inevitably rain, so people prepared by taking umbrellas.
privately = in a way that is not public or known by others
Sample sentence: They discussed the confidential matters privately in a closed-door meeting.
incurable = not able to be cured or healed
Sample sentence: Unfortunately, the disease was incurable, and the patient had to focus on managing symptoms.
quibble = to argue or complain about minor matters; to nitpick
Sample sentence: Instead of appreciating the main points, he quipped over small details in the report.
grim = severe, gloomy, or harsh in appearance or nature
Sample sentence: The disaster news painted a grim picture of the situation.
supremacy = the state of being superior or dominant
Sample sentence: The athlete demonstrated his competitive supremacy by winning every event.
autocrats = rulers with unlimited power and authority
Sample sentence: The country's history was marked by autocrats controlling the government with an iron fist.
Constitutes = forms, makes up, or establishes
Sample sentence: Each ingredient constitutes a crucial part of the recipe, contributing to its unique flavour.
exaggerated = represented as more significant than it is; overemphasised
Sample sentence: His stories were often entertaining but tended to be exaggerated for dramatic effect.
multinational = involving or operating in multiple countries
Sample sentence: The multinational corporation had offices and factories in various countries worldwide.
Flock = a group of birds, sheep, or people
Sample sentence: A flock of seagulls circled overhead, searching for food along the shore.
wake = the trail of disturbed water left behind by a moving boat
Sample sentence: The ship left a smooth wake as it glided across the calm lake.
infancy = the early stage of development or existence
Sample sentence: The technology was still in its infancy, with many improvements expected in the coming years.
Demise = the death or end of something
Sample sentence: The demise of the old factory marked the beginning of a new era for the town.
productivity = the efficiency and output of work or production
Sample sentence: Increasing employee engagement can boost overall productivity in the workplace.
Squeezed = pressed or compressed firmly together
Sample sentence: The tight hallway squeezed the crowd, making it difficult to move through.
asylum = protection and shelter granted by a country to refugees or people in need
Sample sentence: The political activist sought asylum in a foreign country to escape persecution.
morphing = undergoing a gradual or subtle change in form or character
Sample sentence: The animated character underwent a magical morphing transformation on the screen.
paradigm = a typical example or pattern of something; a model
Sample sentence: The discovery of DNA's structure shifted the paradigm of genetic research.
glocalisation = the adaptation of global products and services to local markets
Sample sentence: The company practised glocalisation by customising its products to suit the preferences of different regions.
autarky = a nation that operates in a state of self-reliance
Sample sentence: The isolated island nation practised autarky, producing everything it needed internally.
emphasis = particular importance, significance, or stress given to something
Sample sentence: The teacher emphasised the importance of proper grammar in writing.
lionised = celebrated or treated as a celebrity or hero
Sample sentence: The actor was lionised by fans and the media for his outstanding performance in the film.
frictionless = smooth and without any resistance or difficulty
Sample sentence: The new app promised a frictionless user experience, making navigation and transactions seamless.
Vaccines = substances that stimulate the immune system to produce immunity to a specific disease.
Sample sentence: Vaccines have played a crucial role in preventing the spread of infectious diseases.
vulnerable = susceptible to harm, damage, or attack
Sample sentence: The old bridge was vulnerable to collapse due to its deteriorating structure.
efficiency = the ability to achieve maximum productivity with minimum wasted effort or resources
Sample sentence: Improving efficiency in the production process led to significant cost savings for the company.
fractious = irritable, quarrelsome, or challenging to manage
Sample sentence: The fractious team had trouble working together, leading to conflicts and delays.
deteriorating = becoming progressively worse in condition or quality
Sample sentence: The deteriorating state of the building raised concerns about its safety.
hegemony = dominance or control, especially by one country or group over others
Sample sentence: The empire sought to establish hegemony over the neighbouring territories.
intervention = the act of getting involved to influence or modify a situation
Sample sentence: The counsellor provided intervention to help students cope with academic challenges.
onshoring = bringing back or relocating business operations to one's own country
Sample sentence: The company decided onshoring its manufacturing to create jobs in the local community.
accelerated = made to happen faster or progress more quickly
Sample sentence: The new training program accelerated employee learning and skill development.
surge = a sudden and powerful increase or burst
Sample sentence: There was a surge in demand for the product after the positive reviews were published.
mitigation = the action of reducing the severity or seriousness of something
Sample sentence: Planting more trees is a form of environmental mitigation to combat climate change.
adaptation = the process of adjusting to new conditions or changes
Sample sentence: Adapting the novel into a film required alterations to fit the cinematic format.
fossil = the preserved remains or traces of ancient living organisms
Sample sentence: Paleontologists study fossils to learn about the history of life on Earth.
combat = to fight or engage in battle
Sample sentence: Soldiers train rigorously to be prepared for combat situations.
Insists = demands something forcefully or persistently
Sample sentence: Despite the objections, he insists on implementing his plan for the project.
fiscally = relating to financial matters, mainly government revenue and expenditures
Sample sentence: The new policy addresses the country's fiscally unsustainable budget.
Add info No1)
EV shift is hypocrisy!! Nobel physicist suddenly speaks the truth, and the world is in an uproar
https://www.youtube.com/watch?v=Hq-qBCqOo8I
What will the Earth look like in 100 million years?
https://www.youtube.com/watch?v=8cLycSAqGDg
[Do not follow the same path as i-mode] Aim of global corporate collaboration [NTT Next Generation Communication Infrastructure] Broadcast on November 21, 2023, <Part 2>
https://www.youtube.com/watch?v=xTx_l0_5STw
[Davos Conference] Session hosted by TV Tokyo: Japan's Changing Path (Japan's Bet on Cooperation) [Shinsaku Toyoshima's TV Tokyo World Politics] (January 22, 2024)
https://www.youtube.com/watch?v=e9QuJ3aP--c
"France's biggest darkness" that 99% of people don't know about
https://www.youtube.com/watch?v=KIWq8XgeM2k&t=373s
[One-party dictatorship] Why do Chinese people support a dictatorial regime with "no freedom"?
https://www.youtube.com/watch?v=KKh3-C83myY
[Saudi Arabia] is making something strange
https://www.youtube.com/watch?v=HlzqaNtGVjE
[Lobbying] How politicians and companies buy social issues with money
https://www.youtube.com/watch?v=-VmEMc9Q0ho
Chairman Toyoda's Speech: "The fight to regain the 'Toyota-ness' is never ending" | Toyota Times News
https://www.youtube.com/watch?v=l_-KW55tWfc
"America will disappear", Tucker Carlson warns with X! Civil war looms in Texas
https://www.youtube.com/watch?v=6bghqXZtKUQ
https://twitter.com/search?q=Tucker%20Carlson&src=typed_query
Jamie Dimon warns ‘all these very powerful forces’ will affect the U.S. economy in 2024 and 2025
https://www.youtube.com/watch?v=-gnQJZW0CyQ&t=15s
Add info No2)
What is Degrowth?
https://takorine-and.hatenablog.com/entry/2024/01/10/212916
Q1. Have you ever consciously tried to reduce your consumption of goods and services? If so, how did it affect your life?
->
If I want to buy a new coat or bag, I throw away the old ones I don't wear.
In other words, you don't need 5 or 10 coats or bags at once.
Q2. Do you think a society focused on degrowth can still provide a high standard of living? Why or why not?
->
If you're watching TV and seeing a lovely commercial, you might want healthy food or a new cosmetic product you didn't like.
No matter how good degrowth is, our brains are wired to believe that growing up, making money, and living a good life are good things.
Once surrounded by enough things to live on and money to buy them, we need to focus on satisfying our feelings and fulfilling our lives.
Q3. What are some challenges we might face when transitioning to a degrowth-oriented society?
->
I think it will be difficult to change our beliefs.
And that's a winning theory.
Degrowth is possible for wealthy people and wealthy countries.
However, poor people and poor countries need growth.
Also, maybe wealthy people can't let go of their gorgeous lives.
Even if it won't make you happy, letting go of money and growth will be challenging.
Q4. Do you believe that technological advancements can contribute to achieving degrowth? How?
->
Advances in technology will allow us to perform simple tasks that we do manually.
Also, AI and AGI will support artistic work other than blue work.
We will be able to do many tasks easily with new technology.
We must find and do some important work that only humans can do.
Q5. In your opinion, what role should governments and businesses play in promoting degrowth? How can individuals contribute?
->
Governments and companies can do things such as banning 24-hour operations, stopping business on Sundays, implementing three-day holidays a week, and making shortened business hours and work-sharing commonplace.
On the other hand, we also need to secure energy, reform agriculture and fisheries, support local markets, businesses and universities, and support the operation of zoos and cultural facilities.
Individuals can make or repair things they need by themselves, value time and experiences with family and friends, and concentrate on deepening understanding and knowledge not about money.
Add info No3)
Q. With the global trend moving towards shorter supply chains, how do you think this shift might affect Japan, and what concerns or opportunities do you believe it presents for the country's economic landscape?
->
When I shop, I ensure the products are locally made, fresh, delicious, and reasonably priced.
I don't want to buy it if it's made in a faraway country and the price is shockingly low.
Transport costs are high, carbon dioxide is emitted, and you can imagine people working in factories and farms in faraway countries are not treated well.
Japan and the United States are allies, and China and Russia are said to be enemies. But is that the case?
The roots of our Japanese language, religion, and paintings come from China, and many Japanese people still love Russian literature and music.
I like Hollywood movies and hamburgers but also appreciate the Analects of Confucius, Confucianism, Dostoyevsky, Tolstoy, crabs, and salmon roe(Ikura).
Japan's advanced technology also allows us to make EV, hybrid, and hydrogen cars, easily make fresh water from seawater, and make delicious products by improving sake and strawberries to the highest degree possible.
Also, what do we need? Those extraordinary sensibilities, the ability to promote our products, and the political power to implement rule changes?
Perhaps if we just quietly created a wonderful world without needing such political power or financial power, we might be able to move the hearts of many ordinary people.
We need to let the 1% of billionaires know that there is happiness that cannot be obtained through money and that people in positions of power are responsible for contributing to society.
To that end, movies, comics, stage plays, and music will have a considerable impact.
In addition to expanding our military and developing technology, we need to demonstrate the power of our culture in soft power.
