Title: GLOBALISATION
1GLOBALISATION
- Aim To discuss the phenomenon of globalisation
and consider some of the schools of thought in
the present debate.
2GLOBALISATION
- Globalisation may be thought of initially 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. - (Held et al)
-
3How are YOU affected by GLOBALISATION?
- Many disciplines involved e.g. Philosophy,
Politics, Economics, Geography, Sociology,
Anthropology, -
- Significant differences in definitions
-
- Widely varying assessment
- - Chronology
- - Scale
4DEFINITIONS
- Internationalisation
-
- large and growing flows of trade and capital
investment between countries (Hirst/Thompson) -
- Liberalisation
-
- the process of international economic
integration (Sander)
5Definitions (cont.)
- Universalisation
-
- process of spreading various objects and
- experiences to people at all corners of the
earth (Scholte) -
- a planetary synthesis of cultures
- (Reiser/Davies, 1940s)
6Definitions (cont.)
- Deterritorialisation
- a process which embodies a transformation in
the - spatial organisation of social relations and
- transactions (Held/McGrew)
- Westernisation/Modernisation
- what we in the Third World have for several
- centuries called colonisation (Khor)
7Definitions (cont.)
- In the business environment
- Globalisation refers to the shift toward a
more integrated and interdependent world
economy. - (Hill)
-
- Main components
-
- - Globalisation of markets
- - Globalisation of production
8THE CURRENT DEBATE
- 3 schools of thought
-
- Hyperglobalizers (Radicals)
- Sceptics
- Transformationalists
- (Held et al)
9Hyperglobalisers (Radicals)
- Todays global economy is genuinely borderless.
- Information, capital and innovation flow all over
- the world at top speed, enabled by technology and
- fueled by consumers desires for access to the
best - and least expensive products.
- (K. Ohmae, 1995)
10Hyperglobalisers (Radicals) (cont.)
- Globalisation
-
- a new era
- essentially an economic phenomenon
- global marketplace rules supreme
- brings denationalisation of economies through
transnational networks of production, trade and
finance
11Hyperglobalisers (Radicals) (cont.)
- institutions of global governance emerging
- ? sovereignty of nation state eroded
-
- new global patterns emerging
- North-South/Core-Periphery replaced by more
- complex constellations of economic power.
-
12Hyperglobalisers (Radicals) (cont.)
- Neo-Liberals victory of individual autonomy
- and market principle over state power.
-
- Neo-Marxists victory of oppressive global
- capitalism.
13Sceptics
- We do not have a fully globalized economy, we
- do have an international economy and national
- policy responses to it.
- (Hirst and Thompson, 1997)
14Sceptics (cont.)
- Globalisation
-
- a myth, nothing new, only heightened levels
of interaction between predominantly national
economies - national governments remain powerful and
continue to regulate international activity - governments not passive victims but
architects of internationalisation
15Sceptics (cont.)
- governments not passive victims but
architects of internationalisation - Regionalisation NOT Globalisation
- international economy divided into three major
blocs - -Europe
- -North America
- -Asia Pacific
16Sceptics (cont.)
- world economy now less integrated than during the
classical Gold Standard era - international patterns of inequality have
changed only marginally - rise of aggressive nationalism/fundamentalism
(clash of civilisations)
17Transformationalists
- Many of us feel in the grip of forces over which
- we have no control. Can we re-impose our will
- upon them? I believe we can. The powerlessness
- we experience is not a sign of personal failings,
but - reflects the incapacities of our institutions. We
- need to reconstruct those we have , or create new
- ones, in ways appropriate to the golden age.
(Giddens, 1999)
18Transformationalists (cont.)
- Globalisation
- a central driving force behind the rapid social,
political and economic changes - is reshaping the world order
- historically unprecedented
- no longer distinction between domestic and
international affairs (intermestic)
19TRANSFORMATIONALISTS (cont.)
- future direction uncertain
- leads to new global stratification
- sovereignty of the state juxtaposed with
institutions of international governance - new sovereignty regime displacing traditional
notions of statehood and sovereignty - governments more outward looking
- Power of national governments not diminished but
restructured and reconstituted - (based on Held et al)
20- Where do YOU stand in this debate?
21Globalisation (cont.)
- Accurate assessment difficult
- Lack of long-term global data
22Globalisation (cont.)
- Economic integration
-
- shallow integration
- - trade in goods and services
- - movement of capital
-
- deep integration
- - from 1960s onward
- - extends to production of goods and services
- - increases visible and invisible trade
- - involves primarily TNCs
23Globalisation (cont.)
- Internationalisation
- Extension of economic activity across
- national borders growing quantitatively.
- Globalisation
- as internationalisation qualitatively
- different functional integration of
- internationally dispersed activities.
-
24Globalisation (cont.)
- Uneven spread of globalisation
-
- - country/region
- - urban/rural
- - social class
- - age group
25The Drivers of (Economic) Globalisation
- Improvements in technology
- - communication
- - transport
-
- Demand for opportunities created
-
- Impact of public policies
- INTERACTION of these factors is important!
-
26The Drivers of (Economic) Globalisation(cont.)
- Examples
- Passenger transport to USA
- During colonial times indentured servant
(5-7yrs) - Early 20th century 2-3 months wages
- 21st century ???
27The Drivers of (Economic) Globalisation(cont.)
- ? Increase in migration/passenger traffic
-
- ?Increase in international trade
28The Drivers of (Economic) Globalisation(cont.)
- Since WWII
- dramatic improvements in air cargo
-
- integration of sea/road/rail transport
through use of containers -
- Communication costs have fallen dramatically
-
- Reductions in both COST and TIME!
29The Drivers of (Economic) Globalisation(cont.)
- Since WWII
- real living standards have improved threefold
-
- World trade in goods and services has
increased by nearly twice the pace of GDP - -1950 just under 1/10 of world GDP
- - 2000 about 1/3 of world GDP
-
- Artificial barriers to international trade
have fallen by between 80 and 90 percent.
30THE HISTORICAL PERSPECTIVE
- Positions change with definition
- Cyclical/recurring phenomenon
- Linear development
-
- Germination phase post 15th century
-
- Take-off period mid 19th century
- (Robertson)
31THE HISTORICAL PERSPECTIVE (cont.)
- Germination phase post 15th century
- Take-off period mid 19th century
- (Robertson)
- Start in late 19th century
- (Porter)
- Globalisation a phenomenon of the present
- (Drucker)
32THE HISTORICAL PERSPECTIVE (cont.)
- 15th/16th century
- Local trade basic necessities
- Long-distance trade luxury goods (spices, fine
- cloth)
- European maritime nations at centre of
international trade - dramatic expansion of international trade
- Core Spain, Portugal
-
33THE HISTORICAL PERSPECTIVE (cont.)
- 17th century
- Core moved north
- England, Netherlands, France
- Development of world trading system ?Tripartite
structure core/semi-periphery/periphery
34THE HISTORICAL PERSPECTIVE (cont.)
- 19th century industrialisation
- Accelerated and further changed world trade
- Core - industrial production
- - exported m/f goods, imported raw
materials from colonies - ?New international division of labour
35THE HISTORICAL PERSPECTIVE (cont.)
- Periphery - supplied raw materials and
foodstuffs - - market for machinery and equipment
- trade between core nations and exports to
periphery - Core Britain.
- 19th/20th century industrial production moves to
the US and Germany
36THE HISTORICAL PERSPECTIVE (cont.)
- Overall development rapid growth of production
and geographical expansion/shifts followed by
stagnation/recession -
- Kondratiev long waves
-
- World War II decisive break, The West,
Eastern Bloc, Third World.
37THE HISTORICAL PERSPECTIVE (cont.)
- Shift from British to US dominance
-
- Emergence of Germany and Japan as leading
- manufacturing nations
-
- Manufacturing moving from core to periphery
- to a more complex pattern of production
- (Asia - Pacific Eastern Europe)
-
- The End of Globalisation?
38Summary
- Definition
- 3 schools of thought
- - Radicals (Hyperglobalisers)
- - Sceptics
- - Transformationalists
- Drivers of globalisation
- The historical perspective
39Additional Reading
- Dicken, P. (1999) Global Shift (3rd edition),
- London Chapman
-
- Giddens, A. (2000) Runaway World How
Globalization is Reshaping our Lives, Andover
Routledge. -
- Held, D. et al (2000) Global Transformations,
Cambridge Polity Press.
40Additional Reading (cont.)
- Hirst, P. and Thompson, G. (1999) Globalization
in Question (2nd edition) Cambridge Polity
Press. - Ohmae, K. (1990) The Borderless World Power and
Strategy in the Interlinked Economy, New York
Free Press - Ohmae, K. (1995) The End of the Nation State
The Rise of Regional Economies, New York Free
Press - Scholte, J A. (2000) Globalization A Critical
Introduction, Basingstoke MacMillan.
41Additional Reading (cont.) www.
- IMF
- www.imf.org/external/np/exr/ib/2000/041200.htm
-
- International Forum on Globalisation
- www.ifg.org
-
- United Nations Conference on Trade and
- Development (UNCTAD)
- www.unctad.org/en/pub/pslwir99.htm
-
- International Chamber of Commerce
- www.icccwbo.org
-