Globalization Lecture 1 What is it? How best to think about it?

1) What is globalization? 2) Definitions of globalization 3) History of globalization 4) Globalization of the economy Tomorrow: globalization of politics, social relations and culture

WHAT IS GLOBALIZATION? 1) Whole world interconnected - interdependence of all parts of world 2) Intensification of world-wide phenomena 3) Trans-national relations - erosion of national boundaries 4) Domino effects - events have long-distance ramifications e.g. September 11

WHAT IS GLOBALIZATION? 5) Alteration of space - distances shortened - technological changes 6) Alteration of time - things happen quicker 7) Sense of globality / Global consciousness - experience all places as interdependent - the whole planet - the whole of humankind

Definitions of Globalization Political, economic, social and cultural aspects an immense enlargement of world communication and a world market (Fredric Jameson) - Updated Frankfurt School view - capitalist market spreads everywhere - the negative consequences of capitalism spread globally

Definitions of Globalization the intensification of world-wide social relations (Anthony Giddens) - - stretching of social relations across the globe - - communications and media technologies the compression of the world and the intensification of consciousness of the world as a whole (Roland Robertson) - - world becomes smaller - - world is experienced as one place

Definitions of Globalization Deterritorialization: a process (or set of processes) which embodies a transformation in the spatial organization of social relations and transactions - assessed in terms of their extensity, intensity, velocity and impact - generating transcontinental or inter-regional flows and networks of activity (David Held) 1) Processes across and beyond nation-states 2) Processes across whole regions e.g. European Union

History of Globalization Last 30 years - Electronic communications technology - Cheap air travel - Spread of capitalism after fall of Communism in 1989 and Development of a truly global capitalism

History of Globalization Since beginnings of capitalism Especially since mid-19th century Marx and Engels, The Communist Manifesto (1848) The bourgeoisie has through its exploitation of the world market given a cosmopolitan character to production and consumption in every country. All old established national industries have been destroyed or are daily being destroyed. They are dislodged by new industries, whose introduction becomes a life and death question for all civilised nations. In place of the old local and national seclusion and self-sufficiency, we have intercourse in every direction, universal inter-dependence of nations.

History of Globalization Since Western discovery of Americas 1492 – Christopher Columbus Old World (Europe, Asia, Africa) meets New World Literally global relations: - trade, war, migration, etc.

History of Globalization Since beginnings of human history - mankind spreads out from East Africa - one million years ago - humans reach every part of the planet - reach southern tip of South America c. 10,000 BC

Globalization of the Economy Spread of capitalism to most major parts of world e.g. Russia, China Global division of labour: - All countries economies strongly interconnected with each other - Complex global web of interdependency - Global organic solidarity

Trans-national mobility of: 1) money & wealth - through computer technology 2) jobs, goods & services 3) business-people Trans-national business class (Leslie Sklair) A new global elite

Trans-national Corporations (TNCs) - e.g. Coca-Cola, Nike, Gap, Nokia, News International Investment in countries - cheap labour, low taxes Mobility of capital: - pull out of one country and move elsewhere:

Free trade: no national barriers to trade Neo-liberal ideology: free markets = no State interference in economy = wealth for all World Trade Organisation (WTO) International Monetary Fund (IMF) World Bank Reduction of a governments control of its countrys economy

Globalization of Economy Right-wing view (e.g. Francis Fukuyama): - free trade benefits all countries - poorer countries economies develop and citizens get richer - capitalism brings with it the benefits of consumerism democracy human rights - Global Village

Left-wing view e.g. Noam Chomsky, Zygmunt Bauman World united in some ways - especially economically: world-wide capitalist market - Habermas: world-wide capitalist system; colonizes local life-worlds World divided in other ways - increasing wealth in Developed World, increasing poverty in Developing World - globalization works in Western interests

Immanuel Wallerstein: World-Systems Theory 1) Globalization = new form of imperialism 2) Not direct but indirect Not political but economic control 3) Globalization based on rich core nations and poor periphery nations 4) Developing world debt 5) Job insecurity in core nations: - Decline of manufacturing - off-shoring