Diversity, Globalization, and the Ways of Nature (IDRC, 1995, 234 p.): 2. Global trends and their effects on the environment: Development of global financial markets

Diversity, Globalization, and the Ways of Nature (IDRC, 1995, 234 p.)

(introduction...)

Acknowledgments

Foreword

1. Introduction

Globalization and the ways of nature

The new globalization processes

2. Global trends and their effects on the environment

The information revolution

Development of global financial markets

Development of more effective transportation networks

Movement of people

Globalization and the unequal distribution of wealth

International migration

The development of free markets

3. Planet-wide deterioration

(introduction...)

Our sister planet

The unusual, oxygenated planet

The paradox of ozone

Oceans can be degraded too

The rivers are becoming muddy

Overshooting

4. Forests under attack

(introduction...)

Deforestation in the 20th century

Rain-forest environments

Temperate forests

5. Grasslands

Savannas

The temperate grasslands

Modifying grassland ecosystems

Environmental balance in grassland ecosystems

6. Aquatic ecosystems

Extractive exploitation

The future of fish production

7. Managing planetary thirst

Some basic facts

Water supply and options

The demand side of the issue

Water issues throughout the world

8. Protecting air quality

(introduction...)

Air and its principal contaminants

Processes of contamination in industrial and urban areas

Current and future trends

9. Clean energy for planetary survival

(introduction...)

The industrial revolution

The use of hydroelectricity

The age of petroleum

Nuclear power

The clean options

10. Africa in the 21st Century: Sunrise or sunset?

(introduction...)

The causes of poverty

Historical causes of the current situation

Wars are environmentally unfriendly

Evolution of environmental management in Africa

Old and new development models

11. Latin America and the Caribbean: A history of environmental degradation

(introduction...)

Indigenous cultures

The colonial period

Exploitation of natural resources after independence

Effects of globalization on the environment

The maquiladora phenomenon

12. The urban environmental challenge

The development of modern cities

Large cities in the Third World

The megacities of today

13. Diversity and human survival

(introduction...)

Documenting diversity

Resources for the future

Diversity of living systems

Causes and effects of the loss of natural diversity

Diversity and culture

Restoring what is lost

Biodiversity and research

14. Strategies for the future

(introduction...)

Decentralize decision-making

People value their environment

Problems and responsibilities are global

Bibliography

Development of global financial markets

Times have changed since wealth was measured in terms of salt, corn, or gold coins. Even paper money is losing value as the nearly 200 million Visa credit cards accepted in 6.5 million stores throughout the world are used to transact about $650 million in business every day (Toffler 1990, p. 61). Including other credit cards, the figure is five times this amount. In addition, a huge number of transactions are carried out using cheques, shares, money orders, and so on. As a result of the information revolution, a growing volume of financial operations is carried out with “electronic money.” The trend is clearly toward more widespread substitution of paper-based transactions with electronic operations.

The development of this “virtual” framework has made international monetary systems more volatile; financial and commercial transactions can be carried out at a speed that is changing the rhythm of political and economic events. Financial decisions are made at a moment’s notice, at any hour of the day or night. Global markets never close. Effects are almost instantaneous. When a major financial operation takes place or an economic policy announced, repercussions can be felt throughout the world in a matter of minutes.

A further consequence of the information-based management of money has been the internationalization of money markets and a subsequent blurring of financial borders. There are increasing ties between currencies and national governments are experiencing greater difficulty in defining autonomous policies.

Somewhat paradoxically, however, financial trends are developing “on their own.” It is becoming increasingly difficult to control markets, as many more people, acting on their own, are making many more decisions over short periods of time. Central banks are having problems ensuring the stability of national currencies or the behaviour of other financial parameters.

This situation is exacerbated by the similarly widespread automation of markets and the development of new, early forecasting programs. There are “a dozen firms...managing more than 100 million dollars [US] each on the basis of advice generated by computers” (Economist 1993a, p. 3). Growing numbers of mathematicians and computer experts are dedicated to predicting market trends by computerized nonlinear forecasting and other tools that increase the speed and accuracy of financial decisions. The effects of this practice are not yet wholly understood, but they are already playing a role in the globalization trend and in liberating at least some aspects of the financial market from monopolistic control.