Globalization - What it is, and why it's important (part 1)

Globalization - something only of concern for international business, trade, diplomacy? Or, something that affects all of us, no matter what our profession or interest?

Several months ago, the Wilder Board asked: "What large scale trends or issues exist, which could have very profound consequences for the work of nonprofit organizations, whether local, national, or international?" This Board has always looked ahead strategically; they knew that plans within Wilder take into consideration changes in the population, the rising and falling of specific needs, and so on. In this case, however, they wanted to look beyond the obvious, to larger trends or overarching conditions that might produce the more visible trends that we readily see and understand.

Among several nominations of significant, large-scale trends, globalization percolated to the top as an important focus of attention, and we spent time discussing it. So, in a series of blogs, I'll offer my views on what globalization means and what implications it has for us.

One, simple definition of globalization: the increasing integration of societies and economies throughout the world. It means that people move more and more easily across borders, that more money and capital moves across borders, and that freer trade exists.

The International Monetary Fund defined "economic globalization" as: "a historical process, the result of human and technological progress. It refers to the increasing integration of economies around the world, particularly through trade and financial flows. The term also refers to the movement of people (labor) and knowledge (technology) across international borders."

Thomas Friedman (author of "The World is Flat", "The Lexus and the Olive Tree") asserts that "Globalization has replaced the Cold War as the defining international system." A recent headline in the New York Times strikingly confirmed this assertion. If you remember the 1950s and 1960s, your recollections of the Soviet Union probably include: Nikita Khrushchev banging his shoe on a podium; the phrase (probably mis-translated) "we will bury you"; the Iron Curtain; the "red menace"; and similar negative concepts. At that time, public service announcements attempted to reassure us by explaining that the "DEW line" would detect the launch of Soviet missiles; it seemed that the U.S. and the Soviet Union had missiles pointed at one another, ready for launch. Now, a half century later, the New York Times of April 21 stated: "Pentagon invites Kremlin to link missile systems."

Friedman asserts something else that can help us to understand the importance of globalization for all of us. As the Friedman web site states: "Globalization is the integration of capital, technology, and information across national borders, in a way that is creating a single global market and, to some degree, a global village." In The Lexus and the Olive Tree, he frames "the tension between the globalization system and ancient forces of culture, geography, tradition, and community."

Jim Steiner, of Lowry Hill and a member of the Wilder Board illustrated how capital flows in today's world and offered examples of how local decision-making is unbounded; companies look to achieve the best possible gains within an international network.

It's this blending of the local and global, this creation of the truly global village, that we need to pay attention to. Whether we realize it or not, the forces of globalization affect our personal, civic, and business lives. Decisions we make as voters, investors, leaders, community members can leverage the forces of globalization, or can passively react to those forces. "Neighborhood" decision-making and "world-wide" decision making overlap more than ever before.

Globalization has, on the one hand, increased opportunities; it has democratized communication and the way we learn about the world. However, not everyone has received benefits. Globalization has enhanced the situations of many of us, yet some of us may be much worse off as a result of globalization.

In future blogs, I'll talk about all these features of globalization and their implications.

Youth Mentoring - Economic Impacts of Effective Programs

An article in today's StarTribune, highlights the resuts of a study conducted by Wilder Research's Chief Economist, Paul Anton, and Judy Temple of the University of Minnesota. The study shows that, when effective, mentoring programs for youth can produce savings for taxpayers.

This research adds another piece to our understanding of how we can effectively and economically promote the development of young people.

Editorial Encourages Follow Up to Wilder's Homeless Study

An editorial in the Pioneer Press today (April 12, 2007) encourages us to take the results of the latest homeless study and move forward as a community to make progress on this issue.

The editorial concludes: "Minnesota is responding. Cities, counties and the state have focused on the problem and on the underlying issues. There is no single or simple solution. Wilder's report reminds us that we need to take another look, and to see that these are our brothers and sisters, our sons and daughters, our ex-soldiers and former neighbors. And they need our help."

You can see the full editorial on today's Pioneer Press Opinion Page.

Homeless in Minnesota - A Few Facts

About 200 individuals joined us yesterday to take a look at highlights of Wilder Research's latest study of the homeless in Minnesota. This series of studies began in the early 1980s; it became statewide in the early 1990s.

You can obtain reports on the Wilder Research web site. Also, you can find slides from the first hour presentation.

By our estimates, the number of homeless people in Minnesota is between 9,200 and 9,300. That's roughly equal to, or possibly slightly less than, the numbers of three years ago. This estimate is based on a one-night count. We do a unique study that involves almost 1,000 volunteers who interview people who live in shelters and people who do not live in shelters throughout the state.

The study contains a great deal of information to which we need to pay attention, if we want to make progress on the issue of homelessness. In several blogs, I'll touch on a few pieces of relevant data; I'll also suggest issues, challenges, and ingredients for moving ahead successfully.

First, a few demographics:
- About half of the homeless in Minnesota are female; about half are male. This surprises many people.
- Very young adults (18-21) and the "middle aged" (35-54) tend to be over-represented among the homeless, relative to their proportion of the total state population. Older people (55+) are definitely under-represented among the homeless; people 55 and older comprise 28% of the state's adults, yet only 8% of homeless adults.
- Homeless adults tend to have less education than adults in general. For example, 63% of the state's adults over age 25 have some education beyond high school; 32% of homeless adults have that level of education.

The most striking demographic data relate to race:
- Blacks/African-Americans constitute 38% of homeless adults in contrast to 3% of Minnesota's adult population.
- American Indians constitute 11% of homeless adults in contrast to 1% of Minnesota's adult population.
- Latinos constitute 7% of homeless adults in contrast to 3% of Minnesota's adult population.
In short, groups of color are over-represented among the homeless.

Children also deserve some note:
- Of the roughly 9,200 homeless persons, about 3,400 are children.
- 2,800 of these are with their parents. This is more than the 875 that we found back in 1991.
- 600 are on their own
- Among children with their parents, about half are preschool age.
- The youngest child whom we interviewed living on their own was age 11.

In future blogs, I'll mention some additional information. However, more importantly, I'll focus on what we need to do to move ahead. If you want more facts, please take a look at the reports.

The team for this study deserves our appreciation. Dr. Greg Owen has directed this work since its first days 23 years ago. Principal staff who collaborated with him on this latest study include Ellen Shelton, Michelle Gerrard, Karen Ulstad, and June Heineman. Many others at Wilder Research also contributed. And, of course, it would not have occurred without the assistance of close to 1,000 volunteers, collaborating organizations, and our funders - all of whom hope that eventually this research will cease because we will have resolved the issue.

If you have thoughts, I would value the opportunity to hear them.

Race & Juvenile Delinquency

Racial disparities in juvenile sentencing - The news media (e.g., Pioneer Press) reported the results of a Wilder Research study of this issue in Dakota County. For example, black youths make up 3% of young people in Dakota County, but 21% of the young people in the criminal courts and corrections systems.

Other studies, in Minnesota and elsewhere, have produced similar, overall findings; those findings are not particularly surprising. However, what's notable - and very commendable - for the Dakota County commitee of public officials who are studying the issue are two features of their initiative.

First, the research did not just stop at identifying disparities; it dug deeply to identify potential causes. What might be the factors that explain these differences? What occurs in the system, and where, to produce the differences? The study showed, for example, that black youth did not commit more serious crimes than white youth committed.

This type of in-depth look is rare; the willingness of public officials to take such a look is admirable.

Second, this study will not receive some publicity and then move off the radar screen. The committee intends to determine how things can become better, and take action. They have committed themselves to research, learning, and improvement. They want to make fair decisions, in the public interest, based on sound research evidence. They seem open to doing their part, and also to inviting others to collaborate with them.

It will be exciting to work with them and to see how they do this.