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Globalization, Boundaries and Territoriality INR 456 Political Geography • What is globalization? • When did it start? • Is colonialism of 16th, 17th and 18th centuries or imperialism of 19th century can be considered as globalization? • Is globalization the product of the Information Age? 2 Globalization • Globalization is the emergence of a complex web of interconnectedness among societies and individuals. – Increased direct interaction between: • • • • Society to Society Person to Person Corporation to Corporation International actors to local actors 3 Globalization • Globalization is the emergence of a borderless world. • Spatial relations have been restructured and transformed in a globalized world. – Space as we know has been replaced by cyberspace. – Instead of soil, we have softwares. – Instead of territory we have the internet. • Deterritorialisation: – Territory losing its significance and power in our lives. – End of geography 4 Dynamics of Globalizaiton • Technological determinism – Technology enhances human capacity and capabilities and thus further human progress in history. – Technology defines and determines social, economic and political orders in societies. – Rapid dissemination of information due to the advancements in telecommunication technologies • Redefinition of space and time in the global world • Cyberspace: – – – – The land of knowledge A way of communicating others A way of selling your ideas, products Thus, globalists believe that cyberspace will open up closed markets, liberate repressed people and unify diverse societies. 5 • Economic globalization: – Refers to the emergence of a global economy based on free trade, internationalized production and free flow of capital between countries. – National markets and economies are opened to international actors. – Free flow of goods (Free trade) + free flow of money (free capital mobility) – Emergence of nationless and borderless corporations. • Cultural globalization: – Refers to the emergence of a global culture that tends to flatten out cultural differences between nations due to the global flow of particular products. – Emergence of new non-state actors • Political globalization: – Refers to the growing importance of international organizations – Spread of universal values and norms. 6 Trends in Globalization Homogenization: The tendecy for all countries and societies to become similar or identical. Localization: Refers to the growing importance of local actors and their interactions on a global level. Regionalization:Refers to the increase in regional integration among countries in the same region. Indigenization: The process of through which alien goods and practices are absorbed by being adapted to local needs and circumstances. 7 Theories of Globalization • Globalists: – Globalization understood as the spread of global capitalism which is considered better than national capitalism because in this case more people in more countries will prosper and be better off. – Globalized economic and cultural patterns are inevitable, driven by new information and communications technology. (Hyperglobalism) 8 • Anti-globalists: – Sceptical about the nature and benefits of globalization – Globalization is a new face capitalism and imperialism in which case rich becomes richer and poor becomes poorer. (Increased inequality, widening gap between developed and underdeveloped countries) – Globalization leads to the shift towards labour flexibility, tendency to decrease labour wages for the sake of global competition, weaker trade unions, foreign imposed controls on public spending and foreign pressure on reforming national legislation on social policy, trade policy and competition policy. 9 Downsides of Globalization • Globalization has also produced risks, uncertainty and instability. • Economic decision-making is increasingly influenced by global financial markets. A financial crisis in one country affects the economy of other countries. • Risk Society: Ulrich Beck suggested that rising individualism, weakening of established institutions, consequences of rapid economic and social changes (externalities) produce a risk society even in developed countries. • Globalization leads to environmental crisis and destruction. • Globalization undermines nation states. 10 The Globalization Paradox • Rodrik advocates regulated globalization. • Dani Rodrik (2011) argues that in order for countries to succeed in a globalized world a balance between three dynamics has to be reached – Democratization – National determination – Economic globalization 11 Regionalization • Regionalization is the tendency for patterns of economic and political cooperation to develop between states in the same region. • As the nation-state is seen to be less effective in delivering security, stability and prosperity, these goals are increasingly achieved through cooperation with other neighbouring states. • Growth of economic interdependence between states in the same region. • Increasing economic rivalry between different regional organizations. 12 Regional Economic Blocs • • • • • North American Free Trade Agreement (1993) Asia-Pacific Economic Cooperation (1989) Association of South-East Asian Nations (1967) Mercosur Free Trade Area of the Americas (1994) 13