The Global Schoolhouse

Globalization University: Time to Pack Our Bags

moving up?

People can have several layers of loyalty. You can be loyal to your family and your community and your nation. So why can’t you also be loyal to humankind as a whole? Of course, there are occasions when it becomes difficult—what to put first—but, you know, life is difficult; handle it.

—Yuval Noah Harari, “Nationalism vs. Globalism: The New Political Divide” (2017)

The world is changing. It’s moving from a patchwork of individual nations to a collective mix of nations, corporations, and power brokers. It’s moving from nationalization to globalization. People may argue that this shift has been going on for decades, which it has, but now the excitement has worn off and the reality of change—that daunting task that underlies any big move—is setting in. We’re graduating from The Global Schoolhouse of the 20th Century and enrolling in the Globalization University of the 21st.

For some this transition is fraught with anxiety. Others see it as an exciting time full of opportunity and a better future. Regardless of our feelings, the actual transition can be painful. There are costs to change.

Think of the last time you moved: There was the time-consuming packing process, where we boxed everything up; the moving process, which left our backs sore and our muscles achy; followed by the unpacking process, which felt like deja vu after packing in the first place. Where do the boxes go? Where does the stuff inside the boxes go? Why do we have so much crap?! But possibly the hardest part of the whole moving process is the initial step: We must first decide what stays and what goes.

From my vantage point, this is where humanity finds itself today. We are trying to determine what to keep and what to throw out. This is an extremely difficult task for a world where we’ve accumulated enormous amounts of “stuff”—various different languages, religions, and cultural identities; unique customs, clothing, and holidays; separate currencies, laws, and governing bodies; and often differing political wills, motivations, and priorities. A global world requires that some of these historical accumulations are thrown out, some are kept, and most (if not all) are restructured, repurposed, and relocated.

The world is moving house. We’re going away to college. We’re moving into a crowded dorm with all sorts of people from all around the world. This is Globalization University, where navigating our own national heritage is just as awkward and messy as 18-year-old co-eds trying to “find themselves” at a Freshman kegger.

It is certainly an exciting time to be alive, but that doesn’t mean that it’s an easy time. We’re merely in the packing process—just getting started—and already there is global backlash. Much of this outcry comes from a combination of what psychologists call the endowment effect and loss aversion. Respectively, we put more value on things that are ours simply because they’re ours (endowment effect). And consequently, we perceive a more significant loss when our stuff is taken away. This includes ownership of concrete entities like factories and jobs becoming “redundant,” as well as abstract ownership like specific ways of life or cultural identity. When our way is in jeopardy, emotions run high, objections flow freely, and we fight like hell not to avoid loss.

It’s important to remember, however, that while packing and moving are difficult, we’re not alone. When we show up to Globalization University on move-in day and look around at all the other students unpacking in front of our dorm, we should remember that all those fresh faces went through the same process. They’re going through it now. Our global peers are struggling with this move too. Whatever nation we come from, global dorm life is something none of us have ever experienced. It’s not nations that solely cause globalization; technology stretches beyond political and geographic borders. We’re in this together (for better or for worse).

Harari, Yuval Noah. “Nationalism vs. Globalism: The New Political Divide.” TED. Feb. 2017. Lecture. (Source)

*This essay is a follow up to the series, “The Global Schoolhouse,” originally published on December 2016. You can read Part 1 here.

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The Global Schoolhouse

Part 3 of 3: The Global Schoolhouse

[M]any critics of globalization make America the wicked villain in the tale. They portray the U.S. forcing Nike, McDonald’s and Baywatch down the throats of the unwilling world, shredding ancient cultures for the sake of empire and cash. But […] Multinational corporations are just that, multinational; they don’t represent American interests or American culture. Just as much as they changed the tastes and economies of other countries, they have tried to change the tastes and economy of the United States.

—Franklin Foer, How Soccer Explains the World

To begin Part 3, let’s review: The world is a schoolhouse; the global economy is its schoolyard; the game being played is economics/commerce; the schoolchildren who compete in this game are individual countries; their social cliques are based largely on history and finances; and multinational corporations? Well, they’re schoolchildren, too (but in a whole new way).

Multinational corporations are the younger siblings of our schoolhouse nations. They are smaller, have learned from the mistakes of their older siblings, and are more skilled at the schoolyard game of economics. Corporations share geographic, cultural, and historic parents with their older siblings (like Amazon with the United States), but that’s where the similarities end.

Just like younger students, multinationals have fewer obligations than their older counterparts—fewer classes to take, fewer school dances to attend, fewer extracurriculars. They have fewer distractions, in general. Instead, corporations mostly spend their time playing out on the schoolyard, focused on one thing—their game, how to efficiently make a profit.

This focus is what allows for a new paradigm, one of inclusion rather than exclusion. As we discussed in Part 2, nations have a tendency to favor their “in-group” clique. This leads to discrimination on the grounds of historical allegiances, rivalries, or economics.  Corporations, on the other hand, have different goals. They require outsiders (emerging markets), in order to continue growing. They want as many participants playing on the schoolyard as possible.

In the book The Better Angels of Our Nature: Why Violence Has Declined, Steven Pinker cites “commerce” as one of five reasons why we cooperate with one another instead of act aggressively. Multinationals understand this; it’s why they exist, why they are multi-national. It is in our economic best interest to cooperate globally. But commerce does more than give developing countries a chance to participate.

In November, The Wall Street Journal ran an article titled, “Netflix, Amazon Take Divergent Paths to Reach Indian Audience.” It was a quick read but highlighted this shift from traditional exclusion to emerging inclusion. The brief piece described Netflix’s cost-effective strategy to keep content production “in-house” at their California studio. The idea being that if the shows they make have multinational appeal, then Indian audiences, as well as other countries, will watch (in turn, saving the studio money). Conversely, Amazon has set up shop in Mumbai creating content in India with Indian actors and an Indian audience in mind.

The story of Amazon’s strategy in India is a hopeful one. It’s hopeful because in an attempt to grow, they are seeking a competitive advantage—to truly learn and understand their audience’s perspective. As we discussed in Part 1, all people want respect, and for the first time, those countries previously shut out of the established economies clique are starting to receive some.

If respecting the diversity and richness of the world’s cultures creates a competitive advantage for businesses, then there is hope for the billions of people within the developing world. Binge watching television may be a waste of time, but the Netflix-Amazon example shows a broader trend. Regardless of the business, the point is this: Emerging markets are finally being included in the game (if only as consumers to start).

Before we get carried away with the salvation of commerce, it’s prudent to acknowledge the elephant in the room—unbridled capitalism. The subject is a heavily debated one. Even the Pope has weighed in.  But rather than taking a Marxist view of inherent failure or Wall Street’s belief that “The Market is always right,” let’s assume for a moment that capitalism, like most things, has an equilibrium point.

Commerce cannot answer the world’s woes alone. While the inclusive strategy of multinational corporations may lead the charge, countries still need to decide for themselves that cooperation trumps aggression. It may feel ironic that a game that creates overpaid mega-CEOs could equalize the global divide, but perhaps it could.  Perhaps commerce can help create more global balance. There is an equilibrium point between corporations and nations that could help both to be successful—to learn, mature, and graduate from the global schoolhouse.

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The Global Schoolhouse

Part 2 of 3: The Global Schoolhouse

Last week we set up the metaphor of a global schoolhouse with nations acting more or less in the same manner as schoolchildren. The G20 was used as our analogous “Classroom G,” divided socially along economic lines—developing countries on one side, developed on the other. Next week we will discuss another group in the global schoolhouse—multinational corporations—and how organizations that transcend geographic boundaries may be the answer to the developed-developing divide. But for now, let’s move from the classroom to the schoolyard and discuss the psychology of cliques—the psychology of global discrimination.

As a social clique, the “Western Powers” have played on the schoolyard relatively unopposed for the past 100 years. They generally make their own rules and exclude most newcomers. Sure, the West may have included nations like Japan or Korea, but only because of economic parity—common developed status. Financial prowess is the basis for in-group membership.

Sociologist would call this discrimination “in-group favoritism“—the concept that people positively view their own group’s members while looking upon outsiders with contempt. In-group favoritism, social identity, stereotyping, system justification—these are what fuel discrimination at all levels, and discrimination has been a part of the global schoolyard for centuries.

Developing countries have many obstacles on the road to equality, let alone dominance. Not only do they struggle to improve their skills of the game (economics), they are often closed off from making the rules or even playing in the first place. The popular kids on the schoolyard may justify this exclusion by citing past support or inclusion of Eastern countries like Japan, but ultimately they will continue to exclude. This justification is called “moral licensing.”

Moral licensing is defined loosely as, “being good frees us to be bad” or more specifically, “past good deeds can liberate individuals to engage in behaviors that are immoral, unethical, or otherwise problematic.” This principle is behind the justification for bad behavior occurring time and again throughout history. 

Bestselling author Malcolm Gladwell popularized moral licensing  in the first episode of his podcast Revisionist History. In the episode, Gladwell recounts the story of the 19th century British painter, Elizabeth Thompson, who sought entry into the most elite group of English artists of the era—the prestigious Royal Academythought to be made up of the forty most preeminent artists of the time. The problem was that the Acadmey had never had a woman member.

While the 19th century Royal Academy felt a moral obligation to allow the most talented artists into their club, they didn’t want a woman to be such a person. Elizabeth Thompson’s fellowship was put to a vote shortly after her painting The Roll Call (1874) rose to fame, and Thompson narrowly lost the majority required for induction. But almost—the fact that she had been seriously considered (proven by the narrow margin)—was close enough to morally justify nearly 50 more years of male-only membership.

Much like the 19th century Royal Academy was largely shaped by historical precedent and pseudo-supremacy, so too are the “Western Powers” of today. China and other emerging markets are said to be symbols of the global shift in power from established G7 economies to rapidly developing nations; however, like Elizabeth Thompson’s denial of acceptance, social barriers still loom over the future of developing countries.

While this seems like a bleak reality for the majority of the world’s nations, perhaps social norms play only a small part in the success of a rising nation. For there’s another role to be played in this schoolhouse, a role that transcends traditional schoolyard games. As a relative newcomer in history, multinational corporations may be the answer to global discrimination—a new paradigm to counter the old. And that’s where we will leave off until Part 3 next week.

Merritt, Anna C., Daniel A. Effron, and Benoît Monin. “Moral self‐licensing: When being good frees us to be bad.” Social and personality psychology compass 4.5 (2010): 344-357.

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The Global Schoolhouse

Part 1 of 3: The Global Schoolhouse

Individual countries have always seemed like individual people to me. With their unique quirks, countries have all the idiosyncrasies of humans. They have distinct personalities, see themselves differently than outside observers, and judge their behavior based on intent while judging others based on action. Some countries are quiet, some loud, some big, some small, some fashionable, some plain (the comparisons continue).

To be clear, the collective “country” is distinct from the diverse collection of its citizens—the whole is different than the sum of its parts. That being said, countries are still like people, and what do all people want? Love and respect. Blatantly disrespect even the mousiest members of society and their blood will boil. Bullies are a product of overcompensation, self-image deficits, and lack of perceived respect. This universal need for respect helps explain much in global affairs.

As an obvious global bully, Russia simply wants the respect it feels it deserves. Seeing itself as a bastion of aerospace development, scientific research, military prowess, historical richness, Olympic champions, and cultural mainstays like art, ballet, and architecture, Russia may think, “We’re one of the greatest nations on earth. Why are we not given the relative level of respect that our status deserves? Let’s annex Crimea, then they’ll respect us!” Similar reasoning can be found in the seemingly antisocial behaviors of all sorts of global policies (not least, those of the United States). Self-centered, emotional, overly competitive, unaware, and simplistic—countries are not just like any people; they’re like school children.

There is one classroom that fits this metaphor well (although the teacher is nowhere to be found). The classroom is the G20—a group of the world’s twenty largest economies who get together to discuss global matters. Within “Classroom G,” as we’ll call it, there are all the features of a stereotypical schoolhouse. There are poorer kids, richer kids, extroverts, introverts, troublemakers, class clowns, slackers, bullies, brainiacs, and everyone in between. There are also social cliques (some even with labels).

Jocks, Preps, Nerds—these are unknown titles in Classroom G. Instead, the most well-known cliques go by other names (NATO, BRICS, G7, G4, and so on), but the most “popular” group is known historically as The Allies. The paradigm of World War I and II has continued for over 100 years and has evolved to roughly include an alliance between the world’s largest economies—the popular kids of the class (although, they are often not very popular with the rest of the students).

The in-group’s membership has changed many times throughout the decades. Where countries like Russia, China, Japan and Germany were once historical outsiders, they now have a seat at the table (but not officially in certain circles—the Group Seven or Permanent Five, for example).

There is an oversimplified explanation for this elite group of students: The trend-setting  group in Classroom G is a clique of develop-ed countries on the inside and develop-ing countries on the outside (with a few choice exceptions). Economics supersedes historical alliance. And as trite and ill-defined as the terms developing and developed may be, they serve as the arbitrary (but necessary) boundary in which our classroom creates a status quo.

It is important to point out, however, that Classroom G countries are not teachers, but peers. Their authority is social in nature, not hierarchical. Therefore, we could hypothesize that international relationships conform to the same social and psychologic theories that humans do…  But more on that next week.

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