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?