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Chapter 18 Globalization by Martin Albrow Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 1 THE THEME • • Globalization is the growing interdependence and mutual awareness among individuals and economic, political, and social institutions. Globalization is taking place in a new historical era, the main features of which include: • the emergence of a single transnational economy; • the relative weakness of the nation-state; • the spread of a global culture and global consciousness. Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 2 INDICATORS OF GLOBALIZATION Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 3 DEFINITIONS OF GLOBALIZATION • • • The analytical definition highlights universal factors (e.g., Giddens, who stresses the transformation of space and time). The historical definition focuses on specific developments (e.g., Freidman, who focuses on the post World War II period). The merger of both perspectives (e.g., Robertson) defines globalization as the compression and intensification of awareness of the world, both of which have developed over centuries but most intensely in recent times. Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 4 MODERNITY AND ITS OUTCOMES Three forces impelled globalization: • Universalism: viewing and valuing the world from a single set of concepts. • Imperialism: the imposition of European and then American institutions around the world, often by military means. • Capitalism: an economic system based on profit and wage-labour, which constantly seeks to expand into new markets. Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 5 GLOBALIZATION THEORIES • • • • Giddens argues that 19th and 20th century modernization resulted in globalization. Robertson argues that globalization began 2000 years ago and led to modernity. Postmodernists argue that globalization is a result of cultural fragmentation and postindustrialism. Albrow argues that globalization began only about 20 years ago when many people began to think about their personal lives in global terms and lost confidence in modernity. Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 6 INTERPRETATIONS OF GLOBALIZATION Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 7 THE GLOBAL SHIFT • Social life is made up of people interacting on various levels – household, community, nationstate, and global. • Globalism refers to values that make the fate of humanity and the earth the centre of concern. • Globalist values are replacing the universalist ideologies of industrial societies. Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 8 THE GLOBAL LEVEL OF ANALYSIS Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 9 NATION-STATES AND GLOBAL GOVERNANCE • The sovereignty of states has declined as state functions have been redistributed to supranational organizations (UN, IMF, NAFTA, EU, etc.). • Globalization has consequently entered into the heart of political debate, and some Western governments have embraced its premises in search of a “third way” beyond the political left and right. Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 10 MAJOR ETHNIC GROUPS Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 11 HUMAN RIGHTS AND GLOBAL MOVEMENTS • New social movements are increasingly global and address issues falling beyond the scope of the authority of states. • Worldwide grassroots movements for political rights, disarmament, environmental protection, and poverty relief establish networks and put pressure on international organizations. • This process has been called “globalization from below.” Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 12 THE GLOBAL ECONOMY I The global economy involves these elements: • • • • • • international economic institutions (IMF); transnational corporations (IBM, Nissan); world financial markets (New York, London); global spread of new production practices; competitive economic nationalism; and a worldwide division of labour and class system. Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 13 THE GLOBAL ECONOMY II • The global market refers to capitalism’s amalgamation of the world’s territory into a single market. • International agreements by the WTO have reduced barriers to free trade worldwide and made states more interdependent. • Capitalism in this process looks to new sources of labour (e.g., women) and unsettles all kinds of traditional relations. Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 14 THE GLOBAL ECONOMY III • The expansion of markets is associated with the growth of mega-corporations. • Advanced methods of transportation and communication make it possible to assemble finished products anywhere. • Ownership of firms has lost national identity; corporate decisions can be made anywhere. • Flexibility and lean production have become watchwords in management and production. Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 15 THE GLOBAL ECONOMY IV • The loss of independence of national economies is best illustrated by the internationalization of financial capital. • The great financial centres (New York, Tokyo, London) are global cities in terms of both the activities they finance and the people who do the financing. • An international elite has formed – financiers and executives of transnational corporations, senior employees of international organizations, and sports and media stars. Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 16 WAGE CHANGES ADJUSTED FOR PRICE CHANGES, BY REGION Copyright © 2004 by Nelson, a division of Thomson Canada Limited. SOCIAL RELATIONS IN A GLOBAL SOCIETY Advanced transportation and communication lead to time-space compression. The results: • more access to places and people but also more fleeting relationships; • more migrant workers; • the spread of multiculturalism as a policy for reducing tensions among ethnic and racial groups; and • increased freedom of cultural choice and mass tourism. Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 18 VOLUME OF AIR TRANSPORT, 1970–2000 Insert Figure 18.5, p. 481 Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 19 SOURCES OF CANADIAN IMMIGRANTS, 1946-96 Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 20 THE GLOBAL VILLAGE I • The interdependencies of the global era combined with advanced science have led to the emergence of new global risks. • The destruction of the ozone layer above the atmosphere, the danger of global warming, and other environmental issues are the main global risks. Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 21 THE GLOBAL VILLAGE II There are two main theses concerning the relation between globalization and culture: • The cultural homogenization thesis holds that U.S. domination of global mass culture threatens to wash away distinct national cultures. • The hybridization thesis focuses on the fragmentation and diversification of cultural expression. It holds that globalization engenders choice as much as sameness. Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 22 FOREIGN VISITORS, 1998 Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 23 THREE VIEWS OF THE FUTURE Three views of the future are possible: • The fragmentation of modern life and the transformation of the nation-state involve the disintegration of society. • The new forms of life and relationships developing in a globalized world make the idea of society obsolescent. • “Society” will persist if we revise our notion of it to take account of its global dimension. Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 24 SUPPLEMENTARY SLIDES Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 25 A NEW ROLE FOR THE STATE States must mediate and cushion impact of: global forces domestic on the environment Which push for adjustment Which pushes for protection Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 26 THE REGIONALIZATION OF WORLD TRADE This graphic illustrates the network of world trade in 1992. The thickness of lines shows the volume of trade between countries. Colors distinguish regional trading blocs. Note that most world trade took place within regional trading blocs, with the United States, Germany, and Japan at the center of each of the three main blocs. INTEGRATION OF COUNTRIES IN THE WORLD ECONOMY BY INCOME LEVEL, 1998 Trade in goods as Foreign direct % of GDP (PPP) investment as % of GDP (PPP) Income level of country Low 8.3 0.9 Medium 22.1 1.6 High 38.3 5.7 Copyright © 2004 by Nelson, a division of Thomson Canada Limited. 28