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Globalization CMN 2168 Recap: neo-liberalism Information technology and globalization (part I). Recap: main concepts of globalization. Recap – Neo-liberalism 1. Neo-liberalism aims at getting gouverments ‘away from controlling or intervening in the affairs of business’; 2. ‘…each goverment’s reforms involved the reasonably predictable neoliberal goals of downsizing or privatizing public institutions, services and utilities such as airlines and telecommunications’ 3. ‘…a failure to embrace the imperative to ‘reform’ bureaucracies could involve negative consequences for those failing to comply’ (37). Empire 1. Empire is a system and a hierarchy. It has its own logic. ‘Sovereignty has taken a new form, composed of a series of national and supranational organisms united under a single logic of rule’. ‘The declining sovereignty of nation-states and their increasing inability to regulate economic and cultural exchanges is one of the primary symptoms of Empire’ (Hardt and Negri). 2. ‘Empire processes cultures, crises, ressources and power formations in order to reproduce and extend itself ’ (33). ‘The rule of Empire operates on all-registers of the social order extending down to the depths of the social world. Empire not only manages a territory and a population but also creates the very world it inhabits’ (Hardt and Negri). For Bourdieu, one of the most influential doxa is neo-liberalism. Neo-liberalism has been established and imposed as a doxa through language and media. ‘the process of naming that brings about this taken-for-grantedness is based on euphemisms which direct attention away from the negative social effects of economic competition and the goal of maximum profit, and which is consequently difficult to critique’ (35) 3. Empire is decentred and boundless. Power is now diffused throughout different apparatuses, organizations, agents… 4. ‘Empire is constituted by, and constitutive of, the imbrication of the economic, political and cultural aspects of contemporary life’ (34). Technology and globalization According to many, contemporary society is no longer organized on the basis of material goods. Everything is supposedly organized on the basis of information and knowledge. This is the global information society, also called post-industrial or service society. New information and communication technologies (ICTs) are supposed to be revolutionary innovations, which reshape the whole world. This means that grand narratives are over. Grand narratives are global discourses, allencompassing stories that order individuals’ experiences and thoughts. Central claims about the information society: - A social revolution - Transformation of economic relations - Transformation of political practices and communities involved - Decline of the state Technology, informationalism and space / time The development of new technologies has led to the reduction of the effects of space and time on everyday life and on trade. The speed of transmission, and the mobility of capital, mean that both space and time seem to have been collapsed entirely (46). A large number of analysts reduce the processes of globalization to the consequences of the development of new communication technologies (47). Wrong or right? There are many connections between technology and globalization. Classic correspondance between progress and technological development. Belief that technology can transform the world for the better. Beliefs present at different periods of time. Armand Mattelart: many writers ‘ celebrated the ways in which science and technology would bring into being utopias marked by productive, attractive and fair working conditions, the abolition of child labour, universal emancipation, the domestication of climates, equality, an expanded public sphere, and the disappearance of poverty, ignorance, class, and cultural misunderstandings’ (48). Freedom Progress as well as: Anxiety Fear of uncontrollable aspects of technology. As for globalization, there have different ways of understanding the place and the effects of technology on contemporary society. For Jean-François Lyotard, the ideology of communication transparency and the roles / responsabilities / functions of the state are bound to clash. For Jacques Ellul, technologies have a powerful impact on social relations, the latter being mostly reduced to the interactions provided by the technologies in question. Beware of technological determinism! Technological determinism is ‘the notion that technology is independent of social contexts, and simultaneously imposes itself on to society and transforms it’ (219). Here the question is the following: is technology a product of a particular social context or does technology produce society? Schirato and Webb argue that ‘it is misleading to try to make sense of the notion of globalization purely or even predominantly in terms of technical changes or developments… there is a difference between pointing out that technology… has affected the way many people live and think, and going on from there to argue that technology equals globalization’ (50). ‘… social and cultural factors determine technological development at least as much as technology determines cultural development’ (55). ‘… we can see technology as operating within a context, transforming and being transformed by the ‘larger assemblage of events and power’ in which it is being utilized and given meaning’ (55). Argument Technology is tied up to the society in which it is produced. There is no universal / universalizing technology. However… Counter-argument ‘…the processes associated with globalization can be understood as a pledge of faith in the ability of science and technology to bring into being the ‘freedom of circulation’ of ideas, goods and peoples. This is where technology comes to be seen as having a value independent of the contexts in which it is involved or deployed’ (56). Borders and barriers are consequently made irrevelant (supposedly). ‘…technology allows an event… to be taken out of time and place, since in a few seconds the ‘real’ of the here and now of an exotic foreign location is available to [another] person…’ (57). Recap – what is globalization? The accelerating pace of globalisation is having a profound effect on life in rich and poor countries alike, transforming regions such as Detroit or Bangalore from boom to bust - or vice versa - in a generation. Many economists believe globalisation may be the explanation for key trends in the world economy such as: - Lower wages for workers, and higher profits, in Western economies - The flood of migrants to cities in poor countries - Low inflation and low interest rates despite strong growth. And globalisation has played a key role in the unprecedented increase in prosperity in the last 50 years, which is now spreading from the United States and Europe to include many formerly poor countries in Asia, including China and India. In economic terms, globalisation refers to the growing economic integration of the world, as trade, investment and money increasingly cross international borders (which may or may not have political or cultural implications). Globalisation is not new, but is a product of the industrial revolution. Britain growing rich in the 19th century as the first global economic superpower, based on its superior manufacturing technology and improved global communications such as steamships and railroads. But the pace, scope and scale of globalisation have accelerated dramatically since World War II, and especially in the last 25 years. The rapid spread of information technology (IT) and the internet is changing the way companies organise production, and increasingly allowing services as well as manufacturing to be globalised. The role of trade Trade has been the engine of globalisation, with world trade in manufactured goods increasing more than 100 times (from $95bn to $12 trillion) in the last 50 years since 1955, much faster than the overall growth of the world economy. Since 1960, increased trade has been made easier by international agreements to lower tariff and non-tariff barriers on the export of manufactured goods, especially to rich countries. In the post-war years more and more of global production has been carried out by big multinational companies who operate across borders. Multinationals have becoming increasingly global, locating manufacturing plants overseas in order to capitalise on cheaper labour costs or to be closer to their markets. Western anxities The dizzying pace of change in the new world of globalization is unprecedented, and can be frightening. A recent poll by Deloitte in November 2006 showed a sharp increase in worries about outsourcing of white collar jobs in the UK. Just 13% said it was a good thing , compared to 29% in January, while 82% of the public believe enough jobs have been sent abroad already, and 32% wanted to force companies to bring jobs back to Britain. Source: http://news.bbc.co.uk/2/hi/business/6279679.stm (very good summary of what globalization is and does)