Change in the Economy, World of Work and Richard Sennett's New Capitalism - Essay Example

Name: xxxxxx Tutor: xxxxxx Title: Change in the Economy, World of Work and Richard Sennetts "New Capitalism" Institution: xxxxxx Due Date: xxxxxx Change in the Economy, World of Work and Richard Sennetts "New Capitalism" Introduction Economics, history and political science cannot be separated. Shah (2011) argues that this is because politics is the major controller of any economy while history clearly stipulates various occurrences in an economy. The article attempts to bring to light some of the common misconceptions and unfairness within the current models for the global trading, economics as well as the current aspects of corporate-led globalization. It tries to examine how such misconceptions and unfairness impact people around the world, particularly in the developing nations The work is majorly related to Richard Sennett’s (1998) surveys on the culture of the new capitalism where he identified some of the key differences between the earlier models of industrial capitalism and the highly global, febrile and ever changing versions of capitalism which are taking place. Sennett (1998) demonstrates how such changes affect everyday lives of people in terms of changing work ethics, displacing power of the new beliefs, talents on merit and old values of craftsmanship and achievement. According to Shah (2011), various reformers of private and public organizations have emphasized that flexible and global corporations offer a model of freedom for entrepreneurs, unlike with the fixed bureaucracies. Sennett (1998) strongly argues that within the banishing old ills, new-economy models have created some new social and emotional sufferings. This new culture of capitalism demands for an ideal self-oriented to a short-term and is more focused on the potential ability than accomplishment. Criticisms of the current forms of Free Trade In this story about Trade, Economy and Related Issues, Anup, Shah (2011) argued that although internationalism and equitable global trading that promotes fair development is perhaps what majority of the people would like to achieve, the current model of the corporate-led free trade as well as its account of globalization that it originates from, has come under careful criticism by various NGOs, developing nation governments and the ordinary citizens. For instance Anup, Shah (2011) notes that the World Trade Organization (WTO) is one of the major international bodies that help to promote free trade through their act of drawing up the required rules of global trade. Shah (2011), however, notes that WTO has been mired within the controversy and perceived to be hijacked by the rich country interests, and thus worsening the majority who the poor, inviting protest and strong criticism are. Rise of corporations and human rights Today, it can be observed that corporations, whether for good or bad, have major influences on people’s lives. For instance, Sennett (1998) argues that the largest economies within the world are corporations while few are countries. Therefore, within this era of globalization, majority of the marginalized people are becoming very angry at the motives of the multinational corporations (Shah, 2011). Corporate-led globalization is currently associated with increasing protest and conflict. This leads to questions such how did corporations manage to get power in the first place? What could be the impact of giving such corporations the equal right as the individuals of early days in the United States? It is apparent in Richard, Sennett (1998) view that large, transnational corporations are turning out to be increasingly powerful. This suggests that since profits are naturally the highly considered as important goal, damaging outcomes may arise, such as the violation of human rights, lobbying for as well as participating within the manipulated international agreements, child labor and environmental damage driving toward the cheaper labor. Sennett (2011) presents the view that most of the multinational corporations assert that their participation in the foreign countries is in fact a constructive engagement since it fosters human rights within the non-democratic nations. This appears to be convenient excuse to continuation of exploitative practices. According to Richard, Sennett (2011), Corporate Social Responsibility (CSR) is a bit of a murmur term and some people feel that it has been totally diluted from its original objectives, while other scholars are trying to search for innovative ways in order to engage with various businesses so as to be more responsible within their practices. On the issues corporations and the rights of workers, the story reveals that for various companies high costs are incurred on work force. It can be strongly argued in Anup, Shah (2011) view that in cases where the profits are the bottom line, it becomes natural for such companies to seek out for the cheapest labor force. On the other hand, if the international agreements are basically designed to promote an environment in which cheaper labor force is fostered, it is apparent that workers themselves are normally not paid enough so as to live on. In addition, when nation try to offer regulatory steps to enhance workers conditions, multinational corporations naturally become spontaneous and shifts to other places considered having less measures in place (Shah, 2011). Soros, George (1998), improving the working conditions will be more difficult since it is not within the interest of large companies. Richard, Sennett (1998) portrays work as a constant scale that is used to measure success, a passage of time as well as personal value. For the workers who existed before the period of mid-twentieth century, a job offered them with a sense of identity and security. Soros (1998) notes that as a result, skilled workers have operated within a time-structured world and maintained one job field for their entire career. Sennett largely contrasts this past with the present condition of American workers, and thus makes use of personal examples to illustrate his ideas. Today, transnational corporations have the ability to exert enormous influence in a no less powerful body through World Trade Organizations (WTO). Such corporations are closely related to the decision-makers of WTO. According to Soros (1998), this implies that as transnational corporations increase in size and power, they become more influential and affect more and more people. Sennett (1998) argues that flexible capitalism describes the objective of most modern companies as to be in a position to continuously change so as to fit the market. This is because companies no longer offer job descriptions or the long term contracts, but rather provide an opportunity to compete through a winner-takes-all market. Deregulation or Protectionism According to Shah (2011), protectionism is considered as a barrier to free trade. It is an act which seems to conjure up the negative images of isolationism and subsidizing industries which could otherwise not be able compete fairly against other competitors. Complete deregulation enables corporations to benefit from their policies. According to George, Soros (1998) argument this can only be is achieved at the possible expense of those people found in that particular nation or region in case that deregulation implies relaxation of environmental rules, the health and educational services which include control of the natural resources and energy. This idea can be perceived as hints to the powerful lure that concerns the freeing of trade as well as liberalization of access to the resources which regulation may have to some proponents. According to Soros (1998), there is no answer to the notion of unfairness and more often than not those nations that encourage free trade for all, consider protectionism for themselves. Today, the emphasis is put on flexibility as the rigid forms of bureaucracy are examined to be under attack and considered as the evils of blind routine. Sennett (1998) notes that workers are required to behave delicately so as to be open to any change on short notices, to continually take risks, to become less and less dependent on the regulations and formal procedures. Sennett (1998) also argued that this emphasis on employee-work flexibility is changing the true meaning of work. In the attempt to attack rigid bureaucracy and put emphasis on risk, it is asserted that flexibility provides people with more freedom to shape their own lives. The new order is replaced with the new controls rather than just abolishing the past rules and these new controls are as well hard to understand. Therefore, the new capitalism is an illegible regime of power. Structural Adjustments as a major cause of poverty The story presented by Anup, Shah (2011) reveals that cutbacks within the health, education as well as other important social services across the world are from the structural adjustment policies. According to Shah (2011), these are prescribed by the International Monetary Fund (IMF) and World Bank used as conditions for acquiring loans and repayments. He adds that, governments of developing countries are forced to open their economies so as to compete amongst themselves and with highly powerful and more established industrialized nations. Shah (2011) argues that in order to attract investment, most of the poor countries join the spiraling race towards the bottom purposely to identify who may provide lower standards, cheaper resources and reduced wages. As a result, poverty and inequality have increased for most people, forming a backbone to what is commonly referred to as globalization and this maintains a historic unequal rules of world trade. Sennett (1998) points out that inequality is quite high and often widening. Poverty is always present around the world both in rich and poor nations. There are numerous causes to this which include exploitation by either people or businesses with high power and influence, lack of individual responsibility and poor government policy (Sennett, 1998). Due to this acts, there is a feelings that more levels of inequalities will largely affect social cohesion and also lead to issues such as increased crimes and violence. Sennett (1998) also discovered that, a change within the contemporary institutional structure is associated with short-term, contract or the episodic labour. As a result, corporations have decided to eliminate the layers of bureaucracy so as to become flatter and more flexible organizations. For instance, in place of the organizations to be seen as pyramids, management now tends to think of their organizations as networks. According to Sennett (1998), this implies that promotions and dismissals are not based on clear, fixed rules or are the work tasks crisply defined but the network is continuously redefining its structure Global Financial Crisis Anup, Shah’s (2011) article shows that during a period of economic boom, a financial bubble in the global scope bursts. He adds that this problem is so severe to the extent that some of the largest financial institutions in the world have collapsed, while others have been kicked out by most of their competitors with prices. However, governments of wealthy nations across the world have resorted to the extensive bail-out as well as rescue packages for the still existing large banks and the financial institutions. Anup, Shah (1998) argues that some of the so called bail-outs have led to the charges of hypocrisy because of the perceptible socializing costs while involving in the privatization of profits. For the smaller businesses and the poorer people these options for the bail out and rescue is not readily available for them while they are in the financial crisis. Shah (2011) argues that this reflects issues of personal account for the consequences of new capitalism argued for by Sennett within the banking sector, leading to the changes in the economy, world of work and the ideas of Richard Sennett’s of new capitalism. World Hunger and Poverty The account about Trade, Economy, and Related Issues presents the idea that significant long-term alleviation of hunger is focused on the alleviation of poverty since poverty leads to hunger. This means that world hunger is a terrible indication of world poverty. It has been strongly argued by Soros (1998) that if attempts are only directed at enhancing food production or distribution, then structural root causes which lead to hunger, poverty and over-dependency would still remain to be global phenomena. According to Shah (2011), there are various inter-related issues that cause hunger and most of them are related to economics as well as other factors which cause poverty. These include issues of land rights and ownership, increasing emphasis on the export-oriented agriculture, war, food crisis, and drought. Shah (2011) examines that the world hunger and poverty issues are related to Sennett’s argument. He notes that within the banishing old ills, new-economy models have created some new social and emotional sufferings. This new culture of capitalism demands for an ideal self-oriented to a short-term and is more focused on the potential ability than accomplishment. Based on the issues of corruption, Sennett (1998) notes that it is very common to hear leaders from rich countries warning poor countries that both aid and loans will only be granted if they show that they are stamping out acts of corruption. Although that definitely should be the case, the rich countries themselves are actively involving in the largest forms of corruption within those poor countries as well as through the numerous economic policies they prescribe that have exacerbated this problem. According to Soros (1998), this reflects issues of personal account for the consequences of new capitalism argued for by Sennett. Conclusion It is true in Sennett’s view that flexible capitalism describes the objective of modern companies as to continuously change in order to fit into the market. In this era of globalization, majority of the marginalized people are becoming very angry at the motives of multinational corporations. In the recent years, various reformers of private and public organizations have emphasized that flexible and global corporation offer a model of freedom for entrepreneurs. However, this is not the case with the fixed bureaucracies. Based on the issues of corporations and the rights of workers, the story reveals that for a number of companies, high costs are incurred on work force. This implies that in cases where the profits are the bottom line, it is natural for such companies to seek out for the cheapest labor force. Employee-work flexibility is largely changing the true meaning of work. Flexibility provides people with more freedom to shape their lives. Sennett strongly argues that in the banishing old ills, new-economy models have created new social and emotional sufferings. Corporations have the capability to exert enormous influence within a no less powerful body. This is achieved through World Trade Organizations (WTO). Bibliography Shah, A., 2011, Trade, Economy, & Related Issues, Global Issue, Retrieved August 13, 2011 from, Sennett, R., 1998, The Corrosion of Character: The Personal Consequences of Work in the New Capitalism, New York, Norton. Retrieved August 13, 2011 from, Sennett, R., 2011, The Culture of the New Capitalism, Yale University Press. Soros,G., 1998, The Crisis of Global Capitalism [Open Society Endangered], London, Little, Brown and Co. Read More