'Globalization' or the Crisis of 'Misunderstanding': The Crisis is Global, but the Solution is also Global

Abstract

The current crisis is also the crisis of wrong globalization applications or the misunderstanding of globalization. The problem deepened in four main issues. I believe that the crisis emerged from these issues. First of all, for the last 20 years, revenue gaps increased all over the world. This gap continues not only for labor, capital and rent incomes but also for wages as international price of labor. The gap between bonuses of bankers in USA and the wage of any worker in Africa, clearly reveals this issue. Both of them are labor income in appearance. But the difference is huge. In this study, we will try to state this gap in order to understand the heterogeneous structure in labor markets. The second problem is that monopolization trend gained speed along with globalization. In this research, The regulations which was made in favor of international corporations will be examined. The third problem may be the most important one for humanity. It is: there is an ecologic and/or climatic crisis. As discussed in Kyoto in 1997 and in Copenhagen in 2009, there is nothing bearable left about global warming. If the Copenhagen meetings, in which it is tried to keep the average temperature increase at two degrees, fails; in the next 100 years habitat of many living things including men, tortoises and monkeys will disappear. The current manufacturing manner is the main reason of this situation. Lastly, what will be done about public goods will determine the lives of the impoverished and hungered people. If we ground on human life as a sacrament, we should accept that the way it fulfills its main needs is realized as a part of public domain.The anti-tax haven practices (tobin tax might be effective but there is no interest for it other than in Brazil) against crisis are doubtlessly important. However, regulations on money markets will not be enough. Concurrently and in parallel to that, labor markets should be subjected to regulations. For example, international minimum wage enforcement might be discussed. This discussion must be considered together with the thought of sharing world technology knowledge (intellectual property rights) with developing countries. Otherwise, international minimum wage enforcement would be useless. If the technology rent is updated with the green economy (environment friendly) knowledge and shared with developing countries for the sake of world, investment groups of developing countries will be enthusiastic for new technological applications instead of complaining about the increase in labor cost. Therefore, the chance of international minimum wage application might get higher in terms of decreasing the unemployment rate.In financial markets, the search for an alternative to US Dollars as world currency still continues. Because, as the problems of US Economy get deepens, international crises are triggered. Therefore, the initiatives for creating other international and local currency area should be regarded as normal. The important thing is continuity and facility of change relation in terms of this emerging currency area. IMF, as the top world monetary organization, should work on this subject. In the light of past experiences, finance, absorbing a considerable amount of world value and accumulating it to unproductive areas, will be examined in this study.It does not seem possible to break this trend only with regulations in finance. If the current crisis lasts long, budget deficit and international dept level of countries such as Greece, Spain, Portugal and Ireland would be followed by those of other countries and full scale bankruptcies might occur. It would be wrong to blame only finance for these bankruptcies. The measures that will be taken should be evaluated from the point of politics, sociology and social psychology. For example, regulating labor markets, reconstructing commodity market for productive labor oriented to green economy and the effects of all these regulations to social life should be discussed.