GLOBALIZATION

globalization
OUTLINE OF THE DISCUSSION

01 DEFINING GLOBALIZATION

02 COMPETING CONCEPTIONS OF GLOBALIZATION

03 APPROACHES/DIMENSION
03 OF
GLOBALIZATION
DEFINING GLOBALIZATION
• What is globalization? How should it be
conceptualized?
• Does contemporary globalization represent a novel
condition?
• Is globalization associated with the demise, the
resurgence or the transformation of state power?
• Does contemporary globalization impose new limits to
politics? How can globalization be ‘civilized’ and
‘democratized’?
 International terrorism Transnational criminality

Astronomical Technological and

breakthrough ecological disasters

Intellectual property Gender inequality

rights GLOBALIZATION

Child labour Refugee settlement

Hunger Poverty
What is Globalization?
• May be thought of as the widening,
deepening and speeding up of
worldwide interconnectedness in all
aspects of contemporary social life,
from the cultural to the criminal, the
financial to the spiritual.
• Multiplicity of linkages and
interconnections between the states
and societies
• Understood as embodying processes of
structuration and stratification
• Deterritorialization and
reterritorialization
Schools of thought for Globalization

SCEPTICS TRANSFORMATIONALISTS
– globalization is – contemporary patterns
HYPERGLOBALIZERS
essentially a myth of globalization are
– contemporary
which conceals the conceived as historically
globalization defines a
reality of an unprecedented such that
new era in which
international economy states and societies across
peoples everywhere
increasingly the globe are experiencing
are increasingly
segmented into three a process of profound
subject to the
major regional blocs in change as they try to
disciplines of the
which national adapt to a more
global marketplace
governments remain interconnected but highly
very powerful uncertain world
 HYPERGLOBALISTS SCEPTICS TRANSFORMATIONALISTS

What’s new? A global age Trading blocs; weaker Historically unprecedented

geogovernance than in earlier levels of global
periods interconnectedness

Dominant features Global capitalism; global World less interdependent ‘Thick’ (intensive and
governance; global civil society than in 1980s extensive) globalization

Power of national Declining or eroding Reinforced or enhanced Reconstituted; restructured

governments

Driving forces of Capitalism and technology States and markets Combined forces of
globalization modernity

Pattern of Erosion of old hierarchies Increased marginalization of New architecture of world

stratification South order
 HYPERGLOBALISTS SCEPTICS TRANSFORMATIONALISTS

Dominant motif McDonalds; Madonna, etc National interest Transformation of political

community

Conceptualization As a reordering of the As internationalization and As the reordering of

of globalization framework of human action regionalization interregional relations and
action at a distance

Historical trajectory Global civilization Regional blocs/clash of Indeterminate global

civilizations integration and
fragmentation

Summary argument The end of the nation-state Internationalization depends Globalization transforming
on state acquiescence and state power and world
support politics
 Globalization as ‘Globaloney’
Groups of Globalization Critics
• Rejectionists dispute the usefulness of globalization as a sufficiently
precise analytical concept; they associate globalization to
the phenomenon ‘nationalism’ being an ambiguous and
complex concept; any definition may legitimate or
delegitimate others.

Suggestions for improvement: more empirical researches

and explore globalization as an objective process with
more interpretative studies
 Globalization as ‘Globaloney’
Groups of Globalization Critics
• Sceptics point to the limited nature of globalization processes,
emphasizing that the world is not nearly integrated;
they claim that the world economy is not truly global
but one centered on Europe, eastern Asia, and North
America; they insist that without a truly global
economic system, there can be no such thing as
globalization
 Globalization as ‘Globaloney’
Groups of Globalization Critics
• Modifiers disputes the novelty of the process while acknowledging the
existence of moderate global tendencies, they note that the
world economy in the late 1990s appeared to be less integrated
than it was prior to WWI. Neo-Marxist scholars argue that
modern capitalist economy has been global since its inception
five centuries ago. The origins of global tendencies can be traced
back to the political and cultural interactions that sustained the
ancient empires of Persia, China and Rome.
Qualities and Characteristics of Globalization
by Held and McGrew
• Creation and Multiplication
• Expansion and Stretching
• Intensification and Acceleration
• Consciousness and Awareness
Globalization as a phenomenon
• According to Justine Rosenberg, “globalization as a phenomenon gave
rise to the interconnectedness of human society that replaced the
sovereign states system with a multilateral system of global
governance.”
• According to Held and McGrew, “globalization refers to a
multidimensional set of social processes that create, multiply, stretch
and intensify worldwide social interdependencies and exchanges
while at the same time fostering in people a growing awareness of
deepening connections between the local and the distant.”
 Definitions of Globalization
SOURCE DEFINITION
Immanuel Wallerstein “Globalization represents the triumph of a capitalist world
economy tied together by a global division of labor”

Martin Albrow all those processes by which the peoples of the world are
incorporated into a single world society”
David Harvey “ the compression of time and space”
Anthony Giddens “the intensification of worldwide social relations which link
distant localities in such a way that local happenings are
shaped by events occurring many miles away and vice
versa”
 SOURCE DEFINITION
Peter Dicken “the degree of interdependence and integration between national
economies”
Kenichi Ohmae “globalization means the onset of the borderless world”

Organization for Economic “understood as the phenomenon by which markets and

Cooperation and production in different countries are becoming increasingly
Development (OECD) interdependent due to the dynamics of trade in goods and
services and the flows of capital and technology”
Robert Cox “the characteristics of the globalization trend include the
internationalizing of production, the new international division of
labor, new migratory movements from South to North, the new
competitive environment that accelerates these processes, and
the internationalizing of the state...making states into agencies of
the globalizing world”
 SOURCE DEFINITION
Mike Featherstone “the process of globalization suggests simultaneously two images
of culture. The first image entails the extension outwards of a
particular culture to its limit, the globe. The second image points
to the compression of cultures. Things formerly held apart are
now brought into contact and juxtaposition”

Hans-Henrik Holm and Georg “the intensification of economic, political, social and cultural
Sorensen relations across borders”
Rosabeth Moss Kanter “the world is becoming a global shopping mall in which ideas and
products are available everywhere at the same time”

Martin Khor “ it is what we in the Third World have for several centuries
called colonization”
 SOURCE DEFINITION
Robert Spich “it is a mind set, an idea set , an ideal visualization, a popular
metaphor and, finally, a stylized way of thinking about complex
international developments”

Robert Spich “globalization is a conceptualization of the international

political economy which suggests and believes essentially that
all economic activity, whether local, regional or national, must
be conducted within a perspective and attitude that constantly
is global and worldwide in its scope”

David Steingard and Dale “globalization as an ideological construct devised to satisfy

Fitzgibbons capitalism’s need for new markets and labour sources and
propelled by the uncritical ‘sycophancy’ of the international
academic business community”
 SOURCE DEFINITION

C. Walck and D. Billimoria “globalization is not an output of the ‘real’ forces of markets
and technologies, but is rather an input in form of rhetorical
and discursive constructs, practices and ideologies which some
groups are imposing on others for political and economic gain”

Richard Harris “globalization refers in general to the worldwide integration of

humanity and the compression of both the temporal and
spatial dimensions of planetwide human interaction. It has
aggravated many of the region’s most chronic problems-such
as the pronounced degree of economic exploitation and social
inequality that have characterized Latin America since it came
under European colonial domination in the sixteenth century”
 SOURCE DEFINITION

Malcolm Waters “ a social process in which the constraints of geography on

social and cultural arrangements recede and in which people
become increasingly aware that they are receding”

International Monetary Fund “globalization refers to the growing economic

interdependence of countries worldwide through the
increasing volume and variety of cross-border transactions in
goods and services and of international capital flows, and
also through the more rapid and widespread diffusion of
technology”
Globalization vs Internationalization
• Internationalization is described as cross-border
relations between and among states.
• The internationalization becomes a growth of
international exchange and interdependence
Globalization vs Liberalization
• Through liberalization, it becomes a process of
removing state-imposed restrictions on movements
between countries in order to create an “open”,
“borderless” world economy.
Globalization vs Universalization
• Globalization-as-universalization is viewed as standardization
and homogenization with worldwide cultural, economic,
legal and political convergence.
• Universalization is the process of spreading various objects
and experiences to people all around of the world.
• Examples: the use of Gregorian calendar, tobacco, rock
music, automobiles, Chinese restaurants, cattle farming, etc.
Globalization vs Westernization
• “Globalization” as relative term of “Westernization” is
sometimes described as imperialism of McDonalds,
Hollywood and CNN
• It is understood and interpreted as colonization,
Americanization and “west toxication”.
• Current large scale globalization has resulted mainly from
forces of modernity like rationalist knowledge, capitalist
production, and bureaucratic governance.
Globalization vs ASEAN Integration
• Globalization focuses on a worldwide scale phenomenon that
increases the interaction between countries, facilitating human
contacts, giving free way to the economic and financial expansion.
• ASEAN integration attempts to forge further economic integration
among member countries, ASEAN embarked upon the ambitious
project of creating an ASEAN Community.
• The ASEAN Community would be based on three core pillars, relating
to issues of security, economics, and culture and is important to
strengthen further regional integration, amid global challenges and
the imminent rise of China and India as world economic powers.
The Impact of Economic Integration
GLOBALIZATION

Prosperity Discontentment
 Globalization
• The transition to a geo-finance system during the
1980s
• ‘international collaboration’
• ‘the onset of a borderless world’ (Kenichi Ohmae)
• It is inevitable
• It is the interdependence of nations, the shared
nature of their economies, the mutuality of their
interests and the shared benefits of their
exchanges (Petras and Veltmeyer)
 Evolution of Globalization
Silk roads (1st century BC-5th century AD, and 13th-14th
centuries AD)
• Silk was mostly a luxury good,
and so were the spices that
were added to the
intercontinental trade between
Asia and Europe.
• As a percentage of the total
economy, the value of these
exports was tiny, and many
middlemen were involved to get
the goods to their destination.
Evolution of Globalization
Spice routes (7th-15th centuries)
• As the new religion spread in all
directions from its Arabian heartland
in the 7th century, so did trade.
• The founder of Islam, the prophet
Mohammed, was famously a
merchant, as was his wife Khadija.
• By the early 9th century, Muslim
traders already dominated
Mediterranean and Indian Ocean
trade; afterwards, they could be
found as far east as Indonesia, which
over time became a Muslim-majority
country, and as far west as Moorish
Spain.
Age of Discovery (15th-18th centuries)
• It was in this era that European explorers
connected East and West – and accidentally
discovered the Americas
• Aided by the discoveries of the so-called
“Scientific Revolution” in the fields of
astronomy, mechanics, physics and shipping,
the Portuguese, Spanish and later the Dutch
and the English first “discovered”, then
subjugated, and finally integrated new lands
in their economies.
• Trade certainly started to become global, and
it had even been the main reason for starting
the Age of Discovery.
GLOBALIZATION 1.0
• - this was the period of mercantilism
and the immediate rise of British
economy during the age of
industrialization.
• By the end of the 18th century, Great
Britain had started to dominate the
world both geographically, through the
establishment of the British Empire, and
technologically, with innovations like the
steam engine, the industrial weaving
machine and more.
GLOBALIZATION 1.0

• The resulting globalization was obvious in the numbers.

For about a century, trade grew on average 3% per year.
That growth rate propelled exports from a share of 6% of
global GDP in the early 19th century, to 14% on the eve
of World War I. As John Maynard Keynes, the economist,
observed: “The inhabitant of London could order by
telephone, sipping his morning tea in bed, the various
products of the whole Earth, in such quantity as he might
see fit, and reasonably expect their early delivery upon
his doorstep.”
 GLOBALIZATION 2.0 (1800-1950)
• This period was marked by the conclusion of
World War II. The key contributor if this period
was the formation of market integrations and
the institutionalizations of major economic
activities in the global market.
• Under the leadership of a new hegemon, the
United States of America, and aided by the
technologies of the Second Industrial
Revolution, like the car and the plane, global
trade started to rise once again.
• Worldwide, trade once again rose to 1914
levels: in 1989, export once again counted for
14% of global GDP. It was paired with a steep
rise in middle-class incomes in the West.
GLOBALIZATION 3.0 (1950-2000)
• The newly created World Trade Organization (WTO) encouraged nations all over
the world to enter into free-trade agreements, and most of them did, including
many newly independent ones.
• In 2001, even China, which for the better part of the 20th century had been a
secluded, agrarian economy, became a member of the WTO, and started to
manufacture for the world.
• New technology from the Third Industrial Revolution, the internet, connected
people all over the world in an even more direct way.
• In the 2000s, global exports reached a milestone, as they rose to about a quarter
of global GDP. Trade, the sum of imports and exports, consequentially grew to
about half of world GDP. In some countries, like Singapore, Belgium, or others,
trade is worth much more than 100% of GDP.
GLOBALIZATION 4.0
• In a world increasingly dominated by two global
powers, the US and China, the new frontier of
globalization is the cyber world.
• The digital economy, in its infancy during the
third wave of globalization, is now becoming a
force to reckon with through e-commerce,
digital services, 3D printing. It is further enabled
by artificial intelligence, but threatened by
cross-border hacking and cyber attacks.
• At the same time, a negative globalization is
expanding too, through the global effect of
climate change. Pollution in one part of the
world leads to extreme weather events in
another.
Positive effects
• Globalization has helped to create inconceivable opportunities for
some people, groups and countries and it brings rewards to ordinary
people.
Globalization is a logical extension of what many people want
in their daily lives: the bringing down of barriers to a better
existence. People want to travel the world, cheaply an
conveniently. They want freedom of movement across borders.
They want to live, work, study in the country or countries of
their choice. They want to shop on the Internet. They want the
right to move their savings offshore if they can’t get a good
return at home. My point is that people do not want to be
hindered by national borders. (McKinnon 1999)
Advantages of Globalization
• Free trade among countries that reduced barriers
• Competition between and among countries drive prices down
• It provides poor states, through infusions of foreign capital and
technology, with the chance to develop economically and by
spreading prosperity, creates conditions in which democracy and
respect for human rights may flourish
• There is a worldwide market for companies and consumers who have
access to products of different countries
• Politics is merging and decisions that are being taken are actually
beneficial for people all over the world
• There is more influx of information between two countries which do
not have anything in common between them
• There is cultural intermingling and each country is learning more
about other cultures
• Financial interests, corporations an governments are trying to sort out
ecological problems for each others
• Socially, people have become more open and tolerant towards each
other and people who live in the other part of the world
• Most people see speedy travel, mass communications and quick
dissemination of information through internet
Disadvantages of Globalization
• Rich states become richer while non-rich states become poorer
• Large MNCs have the ability to exploit tax havens in other countries to
avoid paying taxes
• MNCs are accused of social injustice, unfair working conditions as
well as lack of concern for environment, mismanagement of natural
resources and ecological damage
• Globalization worsens poverty and inequality of world’s population