Globalization and the Changing World

A small speck in time Human beings are c. 500,000 years old Agriculture is c. 12,000 years old Civilizations are c. 6,000 years old In a 24-hour world: 23.56:00 – agriculture 23.57:00 – civilizations 23.59:30 – modern societies More change in final thirty seconds than hitherto

Pre-modern Societies Hunting and gathering societies 50,000 BC, almost disappeared Small numbers; fishing, hunting, edible plants Agrarian Societies 12,000 BC to present, losing their identity Small and rural, some inequality, rule by chiefs Pastoral societies 12,000 BC to present, now subsumed in larger states Domesticated animals, distinct inequalities, chiefs Traditional societies 6,000 BC to 19th century, all now disappeared Settlements in millions, cities, trade and agriculture, kings

The Modern World Industrial societies now dominate: Majority of employed now in factories, shops and offices, not agriculture 90% of population live in towns and cities Urban life impersonal and anonymous Political systems more developed and intensive; transport and communications lead to more integrated nation-state

Global Development 1600s-1900s Western nations established ‘colonies’ in areas once first occupied by traditional societies, often by force In North America, Australia, New Zealand, Europeans become majority population In Asia, Africa and South America, the original populations stayed in majority Three Worlds: First world = industrialized West Second world = communist countries of former USSR Third world now ‘developing countries’, former recipients of colonialism New group of ‘newly industrializing countries (NICs)

SOCIAL CHANGE Change becomes significant when there are alterations in underlying structures, modifications of basic institutions.

Social Change Three main influences: Cultural factors Religious beliefs (Max Weber) Communication systems (invention of writing) Charismatic leadership (e.g. Gandhi) Physical environment Climatic conditions and availability of plants and animals Political organization Democratic ideology or military power

Globalization Factors contributing to globalization: Information and CommunicationsTechnology (ICT) Cable technology, satellites, information flows Economic Factors Weightless economy, transnational corporations, global commodity chains (Barbie), electronic economy Political Factors Collapse of Soviet Union, growth of international government (EU) and non-government organizations (UN)

Globalization Debate Hyperglobalizers Sceptics Transformationalists Global capitalism Global governance Global civil society World less inter-dependent than in 1890s ‘Thick’ (intensive and extensive) globalization National governments declining in power National governments power reinforced or enhanced National governments reconstituted and restructured Driven by capitalism and technology Driven by governments and markets Driven by combined forces of modernity Erosion of old stratification hierarchies Increased marginalization of South New architecture of a world order

A Global Culture? Five forces: Television brings British and American culture to world audience Unified global economy with structures spanning continents and countries Global citizens who identify with cosmopolitan culture rather than own nation International organizations Electronic and instantaneous communications

Conclusion Contradictions: local values and global infrastructure - glocalization Globalization not just ‘out there’ but ‘in here’ Increased globalization accompanied by increasing individualism Problems and challenges that now require global governance

Globalisation Definition: An economic phenomenon? A social phenomenon? A cultural phenomenon? The movement towards the expansion of economic and social ties between countries through the spread of corporate institutions and the capitalist philosophy that leads to the shrinking of the world in economic terms.

Globalisation Globalisation could involve all these things!

Integration of Economies The increasing reliance of economies on each other The opportunities to be able to buy and sell in any country in the world The opportunities for labour and capital to locate anywhere in the world The growth of global markets in finance Stock Markets are now accessible from anywhere in the world! Copyright: edrod, stock.xchng

Integration of Economies Made possible by: Technology Communication networks Internet access Growth of economic cooperation – trading blocs (EU, NAFTA, etc.) Collapse of ‘communism’ Movement to free trade

Trade versus Aid? Benefits of Trade: Increased choice Greater potential for growth Increase international economies of scale Greater employment opportunities Trade has led to massive increases in wealth for many countries. Copyright: budgetstock, stock.xchng

Trade versus Aid? Disadvantages of trade: Increase in gap between the rich and the poor Dominance of global trade by the rich, northern hemisphere countries Lack of opportunities for the poor to be able to have access to markets Exploitation of workers and growers How far does trade help children like these? Copyright: clesio, stock.xchng

Corporate Expansion Multi-national or trans-national corporations (MNCs or TNCs) – businesses with a headquarters in one country but with business operations in a number of others. No matter where you go in the world, certain businesses will always have a presence. Copyright: mkeky, stock.xchng

Corporate Expansion Characteristics: Expanding revenue Lowering costs Sourcing raw materials Controlling key supplies Control of processing Global economies of scale                                                                                                                                                    Controlling supplies may be one reason for global expansion. Copyright: rsvstks, stock.xchng

Corporate Domination Key Issues: Damage to the environment? Exploitation of labour? Monopoly power Economic degradation Non-renewable resources Damage to cultures Shell and Nike’s activities have come under severe criticism in some quarters. Copyright: Homsel, stock.xchng

Other Issues: Accountability of Global businesses? Increased gap between rich and poor fuels potential terrorist reaction Ethical responsibility of business? Efforts to remove trade barriers There are plenty of people who believe that globalisation is a negative development, protests at the G8 summits, pollution, poverty and concern over GM crops are just some of the issues. Copyright: stock.xchng