GLOBALIZATION AND GLOBAL LEADERSHIP FOR DEVELOPMENT Mkpado M, Akintayo C.O, and Aganga A.A. Federal University Oye-Ekiti, Nigeria.

GLOBALIZATION AND GLOBAL LEADERSHIP FOR DEVELOPMENT

Mkpado M, Akintayo C.O, and Aganga A.A.Federal University Oye-Ekiti, Nigeria

OutlineGlobalization-history, indicators, meaning,

advantages and disadvantagesGlobal leadership-definition, global mind set, global

leaders Developing countries and developed countriesIntellectual property: A strategy for development Some issues in international developmentAppropriate technology for regional developmentMajor contributing factors of Korea’s developmentKorea culture for business practices

History of globalization• Yoo (2012) stated that the earliest known

term referring to globalization was used by C. T. Russell in 1897 as ‘corporate giants’.

• The 19th century brought globalization experiences because of influence and presence of colonial masters.

• This first era of globalization was short lived• Why? • the gold standard crisis and the great

depression in the late 1920s and early 1930s.

What is globalization?

• Globalization is the process by which nations/economies around the world become increasingly integrated.

• Social/cultural view: globalization can refer to the circulation of ideas, languages, or popular culture among nations; via learning.

• Economic globalization refers to a process by which economics, societies, and cultures have become integrated through a global network of communication, transportation, trade and financial relations (Yoo, 2012).

Some institution facilitating globalization

• United Nations, (international organization- UNESCO, UNICEF, UNECA, UN-IRA etc)

• World Bank,• IBRD, • IMF, • WTO-using GATT, regional organizations-

ECOWAS, AU, etc

What are the indicators /measures of globalization?

• The four main economic flows that characterise globalization are • -goods and services• -labour/people• -capital• -technology • degree of openness• tariff measures• multivariate approach• A Swiss think tank ("Konjunkturforschungsstelle"-KOF) used a multivariate

approach to measure globalization in 2011,• Results?• More globalized : Singapore, Switzerland, the Netherlands, Canada and

Denmark • Less globalized: Indonesia, India, and Iran were the least globalized

among the countries listed.

Some Advantages of globalization• It increases free trade between nations (Steger,

Manfred (2002),• increases liquidity of capital allowing investors in

developed nations to invest in developing nations -FDI

• corporations have greater flexibility to operate across borders (Yoo,2012)

• increase in the flow of information across the globe ,

• Increase in the movement of people among nations/states

Some Disadvantages of Globalization

• Competition:-large scale firm vs. small scale firms

• Increased unemployment in less developed countries

• Contamination /destroying of local cultures• International organization like WTO infringing

on national and individual sovereignty.

What is global leadership? And what are Challenges to global leaders?

• What is global Leadership?• It's about managing an integrated enterprise across

borders where you encounter different cultural, legal, regulatory and economic systems (Stephen 2012)

• Ability to unleash human potential and leverage the richness that lies in cultural diversity (Rosinski, 2003)

• Challenges to global leaders• How to influence individuals, groups, and organizations

inside and outside their own organization• Coordinating diverse cultural/political/institutional

system to help achieve their organization’s global ambitions (Yoo, 2012).

ATTITUDE OF GLOBAL LEADERS

• A most for global leaders is open your mind to everything; close it to nothing (Yoo, 2012)

• Global leaders must have the global mind set• It’s the ability to understand the similarities

and differences among cultures and their reasons as well as the ability to effectively sell your own ideas without raising issues.

• Global leaders do not accept ethnocentrism

What are the features of global mind set?

• The ability to influence individuals, organizations, groups, and systems that are unlike the leader’s.

• The ability to understand and respect other peoples cultures rather than judging them

• The ability to explore the complexity of other cultures without being intimidated

• Being comfortable with being uncomfortable in an uncomfortable environment is a must (Yoo, 2012).

Global mind set and effective global leadership requires

Intellectual capital, psychological capital and social capital

GLOBAL LEADERS

• G 8• G 20• G28

Developing countries and developed countries

• According to Yoo (2012) Many common features exist between the two! But their magnitude differs eg.

• Industries• Urban centres• Rural settlements

• Criteria for determining developed and developing countries

• GDP-Gross domestic product- poverty level• Less then $1.00, less than $1.25• Life Expectancy-mortality rate,

Developing countries and developed countries

• Literacy Rate• Highest education level of the majority• Healthcare System• Level of industrialization-subsistence farming,

commercial farms small scale firms, large scale firms, heavy chemical industries.

• ATTITUDE- developed countries always do the right thing.

Intellectual property : A strategy for development

• Intellectual property is the exclusive right given to one who invested something, producing or marketing goods or service to recognize his/her efforts and time to earn benefits from the innovation (Erick, 2012)

• Intellectual property flues innovation• Types of intellectually property• Copyright- for text books, novels, drama etc• Patent- engineering innovations-machines, drugs• Trademark- marketing, running a company

Intellectual property

• Countries without intellectual property laws will likely have low innovation and inventions (Erick, 2012)

• Strong intellectual property law is required to safeguard companies establishing factories in a countries

• All technological innovation to be generated by FUOYE will need to be registered to get the patent and maximize the accruing benefits

• FUOYE can sell the patent to a company if she can not commercialize it.

• As done by IBM

Some issues in international development

• Globalization and its associated competition• Models of development:• State–led Approach• Industrialization as a means of catching up with

economic achievement of the North (Pong, 2012)• Structuralist approach- identify underlying structures

in the international economy• Morden approach-identify domestic factors as the

constraints to development• Integrated approach

Some issues in international development

• Market–led approach: neo-liberal development policies emphasis the importance of market principles

• Trade libralization• Structural adjustment based on market

principles (Pong, 2012)• (major limitation is market failures-John

Maynard Keynes)

Some issues in international development

• Post –Washington consensus: • Economic growth is not enough• Poverty reduction is essential for

development• National governments of developing countries

must own development strategies• Civil society participation is essential• Good governance is very important

Some issues in international development

• UN Millennium development goals• UN MDGs –the 8 Goals• Many developing countries failed to attain the

goals• The post 2015 MDGs Agenda – Rio+20

Appropriate technology for regional development

• Less developed countries can start form simple technology (Chang, 2012) eg

• Pot-in pot cooler• More efficient stoves• Q-Drum• Life straw for water purification• Fuel from fields• Building capacity for science, technology and

innovation (STI)

Major contributing factors of Korea’s development• Strong political will visionary leadership• Late president Park• Infrastructure building strategy (Choi, 2012)• Seoul-Busan road • Restricted importation and production for export• Industrialization- HCI • Flexibility in adoption of economic principles• Continuity of national development plan• Accountability/openness• Communal sprit- eg the citizens contributed their gold

for payment of their loan from IMF 3 years before due date; clearing oil pollution in sea (Choi, 2012).

• Development of human capital

Korea culture for business practices

• Language-Korea some speak English • Respect • Body language (Yoo, 2012)• Punctuality• Vertical social structure• Personal ties eg kingship • Business cards• Gift giving• Signing of contracts• Modesty and humility• Don’t use no 4 and red colour• use the person’s title and surname

APPRECIATION

APPRECIATION

• The vice chancellor- FUOYE