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Development Indicators (HDI), which take education and life expectancy into account, then the picture that emerges is quite different from that suggested by the income data alone.

Indeed the gaps may have narrowed. A striking inference from the study is a contrast between what may be termed an "income gap" and an "HDI gap". The (inflationadjusted) income levels of today‘s poor countries are still well below those of the leading countries in 1870. And the gap in incomes has increased. But judged by their HDIs, today‘s poor countries are well ahead of where the leading countries were in 1870. This is largely because medical advances and improved living standards have brought strong increases in life expectancy.

But even if the HDI gap has narrowed in the long-term, far too many people are losing ground. Life expectancy may have increased but the quality of life for many has not improved, with many still in abject poverty. And the spread of AIDS through Africa in the past decade is reducing life expectancy in many countries.

This has brought new urgency to policies specifically designed to alleviate poverty. Countries with a strong growth record, pursuing the right policies, can expect to see a sustained reduction in poverty, since recent evidence suggests that there exists at least a one-to-one correspondence between growth and poverty reduction. And if strongly pro-poor policies – for instance in well-targeted social expenditure – are pursued then there is a better chance that growth will be amplified into more rapid poverty reduction. This is one compelling reason for all economic policy makers, including the IMF, to pay heed more explicitly to the objective of poverty reduction.

VI. How Can the Poorest Countries Catch Up More Quickly?

Growth in living standards springs from the accumulation of physical capital (investment) and human capital (labor), and through advances in technology (what economists call total factor productivity). Many factors can help or hinder these processes. The experience of the countries that have increased output most rapidly shows the importance of creating conditions that are conducive to long-run per capita income growth. Economic stability, institution building, and structural reform are at least as important for long-term development as financial transfers, important as they are. What matters is the whole package of policies, financial and technical assistance, and debt relief if necessary.

Components of such a package might include:

Macroeconomic stability to create the right conditions for investment and saving;

Outward oriented policies to promote efficiency through increased trade and investment;

Structural reform to encourage domestic competition;

Strong institutions and an effective government to foster good governance;

Education, training, and research and development to promote productivity;

External debt management to ensure adequate resources for sustainable development.

All these policies should be focussed on country-owned strategies to reduce poverty by promoting pro-poor policies that are properly budgeted – including health, education, and strong social safety nets. A participatory approach, including consultation with civil society, will add greatly to their chances of success.

Advanced economies can make a vital contribution to the low-income countries‘ efforts to integrate into the global economy:

By promoting trade. One proposal on the table is to provide unrestricted market access for all exports from the poorest countries. This should help them move

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beyond specialization on primary commodities to producing processed goods for export.

By encouraging flows of private capital to the lower-income countries, particularly foreign direct investment, with its twin benefits of steady financial flows and technology transfer.

By supplementing more rapid debt relief with an increased level of new financial support. Official development assistance (ODA) has fallen to 0.24 percent of GDP (1998) in advanced countries (compared with a UN target of 0.7 percent). As Michel Camdessus, the former Managing Director of the IMF put it: "The excuse of aid fatigue is not credible – indeed it approaches the level of downright cynicism – at a time when, for the last decade, the advanced countries have had the opportunity to enjoy the benefits of the peace dividend."

The IMF supports reform in the poorest countries through its new Poverty Reduction and Growth Facility. It is contributing to debt relief through the initiative for the heavily indebted poor countries.

VII. An Advanced Country Perspective:

Does Globalization Harm Workers’ Interests?

Anxiety about globalization also exists in advanced economies. How real is the perceived threat that competition from "low-wage economies" displaces workers from high-wage jobs and decreases the demand for less skilled workers? Are the changes taking place in these economies and societies a direct result of globalization?

Economies are continually evolving and globalization is one among several other continuing trends. One such trend is that as industrial economies mature, they are becoming more service-oriented to meet the changing demands of their population. Another trend is the shift toward more highly skilled jobs. But all the evidence is that these changes would be taking place – not necessarily at the same pace – with or without globalization. In fact, globalization is actually making this process easier and less costly to the economy as a whole by bringing the benefits of capital flows, technological innovations, and lower import prices. Economic growth, employment and living standards are all higher than they would be in a closed economy.

But the gains are typically distributed unevenly among groups within countries, and some groups may lose out. For instance, workers in declining older industries may not be able to make an easy transition to new industries.

What is the appropriate policy response? Should governments try to protect particular groups, like low-paid workers or old industries, by restricting trade or capital flows? Such an approach might help some in the short-term, but ultimately it is at the expense of the living standards of the population at large. Rather, governments should pursue policies that encourage integration into the global economy while putting in place measures to help those adversely affected by the changes. The economy as a whole will prosper more from policies that embrace globalization by promoting an open economy, and, at the same time, squarely address the need to ensure the benefits are widely shared. Government policy should focus on two important areas:

education and vocational training, to make sure that workers have the opportunity to acquire the right skills in dynamic changing economies; and

well-targeted social safety nets to assist people who are displaced.

VIII. Are Periodic Crises an Inevitable Consequence of Globalization?

The succession of crises in the 1990s – Mexico, Thailand, Indonesia, Korea, Russia, and Brazil – suggested to some that financial crises are a direct and inevitable result of globalization. Indeed one question that arises in both advanced and emerging

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market economies is whether globalization makes economic management more difficult (Box 1).

Box 1. Does globalization reduce national sovereignty in economic policy-making?

Does increased integration, particularly in the financial sphere make it more difficult for governments to manage economic activity, for instance by limiting governments‘ choices of tax rates and tax systems, or their freedom of action on monetary or exchange rate policies? If it is assumed that countries aim to achieve sustainable growth, low inflation and social progress, then the evidence of the past 50 years is that globalization contributes to these objectives in the long term.

In the short-term, as we have seen in the past few years, volatile short-term capital flows can threaten macroeconomic stability. Thus in a world of integrated financial markets, countries will find it increasingly risky to follow policies that do not promote financial stability. This discipline also applies to the private sector, which will find it more difficult to implement wage increases and price markups that would make the country concerned become uncompetitive.

But there is another kind of risk. Sometimes investors – particularly shortterm investors – take too sanguine a view of a country‘s prospects and capital inflows may continue even when economic policies have become too relaxed. This exposes the country to the risk that when perceptions change, there may be a sudden brutal withdrawal of capital from the country.

In short, globalization does not reduce national sovereignty. It does create a strong incentive for governments to pursue sound economic policies. It should create incentives for the private sector to undertake careful analysis of risk. However, short-term investment flows may be excessively volatile.

Efforts to increase the stability of international capital flows are central to the ongoing work on strengthening the international financial architecture. In this regard, some are concerned that globalization leads to the abolition of rules or constraints on business activities. To the contrary – one of the key goals of the work on the international financial architecture is to develop standards and codes that are based on internationally accepted principles that can be implemented in many different national settings.

Clearly the crises would not have developed as they did without exposure to global capital markets. But nor could these countries have achieved their impressive growth records without those financial flows.

These were complex crises, resulting from an interaction of shortcomings in national policy and the international financial system. Individual governments and the international community as a whole are taking steps to reduce the risk of such crises in future.

At the national level, even though several of the countries had impressive records of economic performance, they were not fully prepared to withstand the potential shocks that could come through the international markets. Macroeconomic stability, financial soundness, open economies, transparency, and good governance are all essential for countries participating in the global markets. Each of the countries came up short in one or more respects.

At the international level, several important lines of defense against crisis were breached. Investors did not appraise risks adequately. Regulators and supervisors in the major financial centers did not monitor developments sufficiently closely. And not enough information was available about some international investors, notably offshore

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financial institutions. The result was that markets were prone to "herd behavior" – sudden shifts of investor sentiment and the rapid movement of capital, especially short-term finance, into and out of countries.

The international community is responding to the global dimensions of the crisis through a continuing effort to strengthen the architecture of the international monetary and financial system. The broad aim is for markets to operate with more transparency, equity, and efficiency. The IMF has a central role in this process, which is explored further in separate fact sheets.

IX. The Role of Institutions and Organizations

National and international institutions, inevitably influenced by differences in culture, play an important role in the process of globalization. It may be best to leave an outside commentator to reflect on the role of institutions:

"...That the advent of highly integrated commodity and financial markets has been accompanied by trade tensions and problems of financial instability should not come as a surprise. The surprise is that these problems are not even more severe today, given that the extent of commodity and financial market integration is so much greater.

"One possibility in accounting (for this surprise) is the stabilizing role of the institutions built in the interim. At the national level this means social and financial safety nets. At the international level it means the WTO, the IMF, the Basle Committee of Banking Supervisors. These institutions may be far from perfect, but they are better than nothing, judging from the historical correlation between the level of integration on one hand and the level of trade conflict and financial instability on the other." (parentheses added)

X. Conclusion

As globalization has progressed, living conditions (particularly when measured by broader indicators of well being) have improved significantly in virtually all countries. However, the strongest gains have been made by the advanced countries and only some of the developing countries.

That the income gap between high-income and low-income countries has grown wider is a matter for concern. And the number of the world‘s citizens in abject poverty is deeply disturbing. But it is wrong to jump to the conclusion that globalization has caused the divergence, or that nothing can be done to improve the situation. To the contrary: lowincome countries have not been able to integrate with the global economy as quickly as others, partly because of their chosen policies and partly because of factors outside their control. No country, least of all the poorest, can afford to remain isolated from the world economy. Every country should seek to reduce poverty. The international community should endeavor – by strengthening the international financial system, through trade, and through aid – to help the poorest countries integrate into the world economy, grow more rapidly, and reduce poverty. That is the way to ensure all people in all countries have access to the benefits of globalization.

LOCALIZING CULTURES

Korea Herald

January 13, 2004

Although the word globalization suggests a comprehensive and self-evident process, it is an incomplete term. It does not indicate precisely what is being globalized: the assumption is that it means the emergence of a single worldwide economy, into which all economies must integrate themselves, or more accurately, be integrated in the passive voice. But globalization does not obligingly halt at some ill-defined frontier between

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economics, society and culture. Indeed, it has its own set of cultural attendants, which exercise a profound influence on the life of peoples everywhere. By definition, globalization makes all other cultures local. But to billions of people all over the world, their culture is not local. It is central to their lives and who they are. Globalization eclipses, or at least subordinates all previous ways of answering need and of dealing with the vicissitudes of human life. All other ways of life are diminished and marginalized at a stroke.

Globalization is a declaration of war upon all other cultures. And in cultural wars, there is no exemption for civilians; there are no innocent bystanders. Why should it be expected that ancient and rooted civilizations are going to accept this peripheralisation without a struggle? The answer to that is that globalization carries an implicit promise that it will relieve poverty and offer security - perhaps the most ancient of human dreams. Because of the power of global capitalism to create wealth, it is assumed that this priority must sweep aside all other human preoccupations, including all existing institutions, interpretations and searches for meaning in the world.

One U.S. academic describes it as a confrontation between global civilization and local cultures. One reason for the sense of incompleteness in the word globalization may be that it is a euphemistic contraction of global civilization; and that it is how it is promoted.

It is disingenuous to assume that economy, society and culture operate in separate spheres. Indeed, the way in which geographical entities are now designated shows the increasing porosity of these notions. An advanced economy, an industrialized nation, a mature economy are set against a developing country, an emerging market, a liberalizing society. The terms are almost interchangeable. This suggests that, once exposed to the globalizing imperative, no aspect of social life, customary practice, traditional behavior will remain the same.

There have been, broadly, two principal responses in the world, which we may call the fatalistic and the resistant. It is significant that among the most fatalistic have been the leaders of the G-7. Ex-President Clinton said globalization is a fact not a policy choice. Tony Blair said it is inevitable and irreversible. It may be considered paradoxical that the leaders of the most dynamic and expanding economies in the world offer such a passive, unchallenging view of what are, after all, human-made arrangements. These are among the richest and most proactive regimes, which can wage endless war on the great abstraction that is terror, topple regimes and lay down one WTO law for the poor and another for themselves. Is their helplessness in the presence of these mighty economic and cultural powers merely pretence?

There are two aspects to resistance. One is the re-assertion of local identities - even if local actually means spread over very large parts of the world. The reclaiming of the local is often focused in the field of culture - music, song, dance, drama, artifacts and folk culture. This suggests an attempt to quarantine it from the effects of economic integration; a kind of cordon sanitaire set up around a dwindling culture. Some people believe it is possible to get the best of both worlds - they accept the economic advantages of globalization and seek to maintain something of great value, language, tradition and custom. This is the relatively benign response. The other has become only too familiar: the violent reaction, the hatred of both economic and cultural globalization which many not merely perceive, but feel in the very core of their being, as an inseparable violation of identity. The resentment of many Muslims (not only extremists) toward the U.S. and Israel, the defensive posturing of Hindu fundamentalism, opposed both to Islam and Christianity, are the most vivid dramatizations of this.

The appearance of Christian fundamentalism in the very heartlands of the

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globalizing forces of the world, suggest that even here, there is a sense that values, beliefs and faith are being sacrificed to global necessity, and there has been an effort even by the most spectacular beneficiaries of economic globalization to salvage what they see as some of their most precious truths. The stigmatizing of the bearers of resistance as extremists or those who hate freedom is too simple a formulation for these complex and painful processes. To be unable to acknowledge the profound and complex social and religious disruptions that come as inseparable spectral companions of economic globalization has been the most grievous failure of the rich and powerful. That this strikes at the roots of human search for meaning ought to have been clear, particularly to those who invest so much in intelligence and security - abstractions which have become as insubstantial as the terror against which these are supposed to be deployed.

For instance, the almost mystical and transcendent purposes assumed by consumption, the prodigality and waste of resources, particularly in the presence of billions of people who must eat every last grain of rice on their plate, the disgracing of such ancient virtues as frugality, husbanding resources, sustaining water and soil, the reverence for habitats that have given life for millennia - all this is detached from the dry bureaucratic prescriptions and advice offered up by the experts and professionals of development from the sequestered luxury of five-star hotels.

When anger bursts forth, it is greeted with a monstrous show of incomprehension, and alas, wholly bogus humanitarianism, since the leaders of the globalizing world have sacrificed vast numbers of the poor in pursuit of their unrealizable vision of a whole planet colonized in their own image. The West had centuries to absorb these lessons and adapt its spiritual and religious values to those of a capitalism which usurped them, even though these did not go down without a struggle. But when these values are diffused globally, dogmatically, unmediated by time, with what violence they strike against the sensibilities of others. What a gratuitous onslaught it seems, what injurious affronts to rooted identity and custom. This then, is the context in which terror is to be stamped out. Who declared the cultural war which accompanies the economic re-arrangement of a whole world? Who initiated the terrible, terrorizing, terrifying doctrines that only by the grace of participating in the global market, will every individual in the world and those she loves, survive to see another day?

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CONTENTS
Методическая записка...............................................................................................................	3
UNIT 1 MANAGEMENT. FUNCTIONS AND LEVELS ..........................................................	4
UNIT 2 MANAGERS. ENTREPRENEURS ............................................................................	19
UNIT 3 MANAGEMENT STYLES. CULTURAL DIVERSITY..............................................	40
UNIT 4 COMMUNICATION ..................................................................................................	62
UNIT 5 RECRUITMENT AND SELECTION. HEADHUNTING ...........................................	76
UNIT 6 TEAMWORK .............................................................................................................	98
UNIT 7 MOTIVATION. JOB SATISFACTION ....................................................................	111
UNIT 8 LEADERSHIP ..........................................................................................................	119
UNIT 9 DELEGATING .........................................................................................................	133
UNIT 10 GLOBAL ISSUES FOR THE 21st CENTURY ........................................................	143
SUPPLEMENTARY READING ............................................................................................	157
UNIT 1 .............................................................................................................................................	157
UNIT 2 .............................................................................................................................................	164
UNIT 3 .............................................................................................................................................	172
UNIT 4 .............................................................................................................................................	176
UNIT 5 .............................................................................................................................................	182
UNIT 6 .............................................................................................................................................	187
UNIT 7 .............................................................................................................................................	194
UNIT 8 .............................................................................................................................................	198
UNIT 9 .............................................................................................................................................	206
UNIT 10 ...........................................................................................................................................	208

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Авторы-составители Поташкина Елена Николаевна Французова Алла Ивановна

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