Globalization
Meanings
- Integration of National Economies: International interdependence of economy
(global capitalism)
- Political: Intensified interaction between countries, localities, and societies
- Socio cultural: Open, multipolar, multicultural society
- Cross cultural linkages through media; internationalization of entertainment
Waves of Globalization
- 1870 - 1914: Rise of Global trade
- Triggered by lower transportation costs
- Population migration based on labor requirements
- Colonization
- 1914 - 1945: Retreat into nationalism
- Protectionism across independent countries (especially Latin Amerca, Soviet Russia)
- Anti-immigrant sentiments (including in U.S.)
- 1945 - 1980: Second Wave of Global trade
- Lifting of barriers (tariffs, customs duties)
- Marginal participation by developing countries; rapid industrial growth of developed
countries
- Growing gap between developed and developing countries
- 1980 - now: Present Wave of Globalization
- Technology led globalization (ease of communications, ease of movement of capital)
- Information costs, rather than raw material costs
The Process
- Role of the State, Market, and the Third Sector [esp. International Organizations]
- Reduced role of the State to regulate Multinational Corporations (if regulations become
stringent, corporations move)
- State's activities increasingly complemented by International, National, Regional, and
Local Third Sector Organizations (Non-government organizations; Community Based
Organizations)
- Increasing role of market
- Ease of International Mobility and Exchange (Borderless World?)
- International migration
- International flow of capital
- Role of Technology [Communications, Information]
- Rise of Information Society
- Digital Economy vs Manufacturing
- Regional Cooperation and Integration; International Trade Blocs
- European Union; Association of South East Asian Nations; MercoSur; NAFTA; Organization
of African Unity.
The Effect
- Differential impacts within countries & cities
- International Division of Labor
- Footloose Multinational Corporations
- Global Spatial Competition (Cities as corporations)
- Significance of Technology and Market Processes
- Global vulnerability (crisis in one country triggers crises in others)
- International Hierarchy of Cities
The Marginalization of Developing Countries
- "Join the Club" View: Although developing countries have surplus labor,
they may not be globally integrated due to their inherent lack of institutions,
infrastructure, etc.
- "Geographic Disadvantage" View: Inherent disadvantages of developing
countries due to geographical location [Incidentally, I do not subscribe to this view at
all]
- The "Missed the Boat" View: Developing countries have fallen behind and
cannot catch up (technology as a reinforcing process that requires base levels of
expertise and capacity, which developing countries may not have achieved).
THE CRUX:
- The Global vs the Local:Is our world a placeless society?
- Who loses, and Who gains? (or, Who opposes, and Who supports?)
- Is there a new rationale for growth of cities?
- Would terrorism reverse the pace of globalization as happened after World War I?