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HIST 207 2009 Part 1


The course puts the phenomenon of globalization into historical perspective and ... 'Economic dirigisme in authoritarian-fascist regimes,' chapter in An Economic ... – PowerPoint PPT presentation

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Title: HIST 207 2009 Part 1


  • The course puts the phenomenon of globalization
    into historical perspective and introduces
    students to the big themes and questions that
    arise from global perspectives on the past.
  • It covers globalization as a set of processes
    that operate simultaneously and unevenly on
    several historical levels and in various

  • Emphasis is given to the political, economic,
    social, and cultural changes that transformed
    Europe during the 19th and 20th centuries. Europe
    has been characterized by extraordinary waves of
  • From colonialism / imperialism to decolonization,
    alongside increasing cultural ethnic diversity
    from division between capitalism and communism,
    between dictatorship democracy, to a striking
    convergence of socioeconomic political systems.

  • Course Requirements
  • Grading will be as follows
  • 1) a) attendance 15
  • b) pop quizzes 15
  • 2)      mid-term exam 35
  • 3)      final exam 35
  • 100

  • Week I
  • Globalization a new phenomenon
  • Manfred B. Steger Is globalization a new
    phenomenon ? in Globalization A Very Short
    Introduction, OUP, 203, s. 17-36
  • The economic dimension of globalization, ibid.,
    s. 37-55.
  • The political dimension of globalization,
    ibid., s. 56-69-68.

  • Week II
  • Overseas Expansion and Imperialism
  • Jürgen Osterhammel and Niels P. Petersson,
    1750-1880 Imperialism, Industrialization, and
    Free Trade, chapter in Globalization A Short
    History, Princeton University Press, 2005, pp.

  • Week III
  • Global Capitalism and Global Crises
  • Jürgen Osterhammel and Niels P. Petersson,
    1880-1945 Global Capitalism and Global Crises,
    chapter in Globalization A Short History,
    Princeton University Press, 2005, pp. 81-111.

  • Week IV
  • Globalization Split in Two
  • Jürgen Osterhammel and Niels P. Petersson, 1945
    to Mid-1970s Globalization Split in Two,
    chapter in Globalization A Short History,
    Princeton University Press, 2005, pp. 113-139.

  • Week V
  • World Economy in the Twentieth Century
  • Rondo Cameron, Overview of the World Economy in
    the Twentieth Century, chapter in A Concise
    Economic History of the World, Oxford University
    Press, 1991, pp.322-344.

  • Week VI
  • Deglobalization or Economic Disintegration
  • Rondo Cameron, International Economic
    Disintegration, chapter in A Concise Economic
    History of the World, Oxford University Press,
    1991, pp.345-368.

  • Week VII
  • Rebuilding the World Economy
  • Rondo Cameron, Rebuilding the World Economy,
    chapter in A Concise Economic History of the
    World, Oxford University Press, 1991, pp.

  • Review Session
  • Mid-Term Exam
  • Week VIII
  • Laissez-faire system before World War I
  • Europes Laissez-faire system and its impact
    before World War I, chapter in An Economic
    History of Twentieth-Century Europe, Cambridge
    University Press, 2006, pp. 10-41.
  • .

  • Week IX
  • Decline of laissez-faire and the rise of the
    regulated market
  • Decline of laissez-faire and the rise of the
    regulated market system, chapter in An Economic
    History of Twentieth-Century Europe, Cambridge
    University Press, 2006, pp. 42-91.

  • Week X
  • Economic dirigisme in authoritarian-fascist
  • Economic dirigisme in authoritarian-fascist
    regimes, chapter in An Economic History of
    Twentieth-Century Europe, Cambridge University
    Press, 2006, pp. 92-132.

  • Week XI
  • The centrally planned economic system
  • The centrally planned economic system, chapter
    in An Economic History of Twentieth-Century
    Europe, Cambridge University Press, 2006, pp.

  • Week XII
  • Mixed economy and welfare state
  • Mixed economy and welfare in an integrated
    post-World War II Western Europe, chapter in An
    Economic History of Twentieth-Century Europe,
    Cambridge University Press, 2006, pp. 190-262.

  • Week XIII
  • The Era of Globalization
  • Globalization Return to laissez-faire ?
    chapter in An Economic History of
    Twentieth-Century Europe, Cambridge University
    Press, 2006, pp. 263-326.

  • Week XIV
  • Challenges to globalism
  • Manfred B. Steger The Ideological dimension of
    globalization, in Globalization A Very Short
    Introduction, OUP, 203, s. 93-112
  • Challenges to globalism, ibid., s. 113-135.

  • Globalization is international integration. It
    can be described as a process by which the people
    of the world are unified into a single society.

  • Globalization refers to a multidimensional set of
    social processes
  • that
  • create, multiply, stretch, and intensify
    worldwide social interdependencies exchanges
  • while
  • at the same time fostering in people a growing
    awareness of deepening connections between the
    local and the distant.

  • Globalization in its literal sense is the process
    of transformation of local or regional phenomena
    into global ones.
  • It can be described as a process by which the
    people of the world are unified into a single
    society and function together.

  • Globalization is often used to refer to economic
  • that is,
  • integration of national economies into the
    international economy
  • through
  • trade, foreign direct investment FDI, capital
    flows, migration, and the spread of technology.

  • Globalization is an uneven process,
  • meaning that
  • people living in various parts of the world are
    affected very differently
  • by
  • this gigantic transformation of social structures
    and cultural zones.

  • One defining characteristic of the process
  • Movement towards greater interdependence
  • This process is a combination of economic,
    technological, socio-cultural and political

  • Globalization compresses the time and space
    aspects of social relations.
  • James Mittelman

  • Globalization can be defined as 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.
  • Anthony Giddens

  • Scholars not only hold different views with
    regard to proper definitions of globalization,
  • they also disagree on its scale, causation,
    chronology, impact, trajectories, and policy

  • The word "globalization" has been used by
    economists since 1981
  • however,
  • its concepts did not permeate popular
    consciousness until the later half of the 1990s.

  • Various social scientists have tried to
    demonstrate continuity between contemporary
    trends of globalization and earlier periods.
  • Globalization is viewed as a centuries-long
    process, tracking the expansion of human
    population and the growth of civilization,
  • that has accelerated dramatically in the past 50

  • The global integration of humankind had its
    beginnings under Portuguese auspices in the 15th
  • .

  • The process of globalization had its origins in
  • through the Portuguese, Spanish, Dutch, French,
    and English territorial and maritime expansion
  • into all habitable continents,
  • included the discovery and colonization of the
    New World.

  • Proto-globalization
  • Early forms of globalization existed during the
    Roman Empire, the Parthian Empire, the Han
  • when
  • the silk road started in China, reached the
    boundaries of the Parthian Empire continued
    onwards towards Rome.

  • The Islamic Golden Age
  • Muslim traders and explorers established an early
    global economy across the Old World resulting in
    a globalization of crops, trade, knowledge and
  • later during the Mongol Empire, when there was
    greater integration along the Silk Road.

  • Business Phenomenon
  • Globalization became a business phenomenon in the
    17th century.
  • The Dutch East India Company is described as the
    first multinational corporation.
  • An important driver for globalization Sharing
    risk through joint ownership

  • Because of the high risks involved with
    international trade,
  • The Dutch East India Company became the first
    company in the world to share risk
  • enable joint ownership through the issuing of

  • The First Era of Globalization
  • Liberalization in the 19th century is The First
    Era of Globalization,
  • a period characterized by rapid growth in
    international trade investment,
  • between the European imperial powers, their
    colonies, semi-colonial countries United

  • .
  • The Era of Colonization - Imperialism
  • It was in this period that areas of sub-saharan
    Africa and the Island Pacific were incorporated
    into the world system.

  • The decades preceding the outbreak of World War I
  • witnessed an era of extensive globalization.
  • The first era of globalization
  • during the 19th century
  • was the rapid growth of international trade
    between the European imperial powers, the
    European colonies, and the United States.

  • Belief in the superiority of their own nation
    nationalism has supplied the mental enery
    required for large-scale warfare.
  • The enormous productive capacities of the modern
    state nation state have provided the material
    means necessary
  • to fight the two total wars of the last

  • The End of the First Era of Globalization
  • The First Era of Globalization began to break
    down at the beginning with the first World War,
  • collapsed during the gold standard crisis in the
    late 1920s and early 1930s.
  • Great Depression

  • The Era of Deglobalization - Regulation
  • 1914-1944
  • The Dark Age for humanity due to World Wars III
  • 1929 World Depression
  • Protectionism National Economies Economic
  • declining international economic integration

  • The Second Era of Globalization
  • After World War II, globalization was restarted
  • was driven by major advances in technology,
  • which led to lower trading costs.

  • Regulation
  • Globalization in the era since World War II was
    first the result of planning by economists,
    business interests, politicians
  • who
  • recognized the costs associated with
    protectionism declining international economic

  • Their work led to the Bretton Woods conference
  • the founding of several international
  • to oversee the renewed processes of
    globalization, promoting growth and managing
    adverse consequences.

  • These were
  • the International Bank for Reconstruction and
    Development (the World Bank)
  • the International Monetary Fund (IMF).

  • Globalization has been facilitated by
  • a) advances in technology which have reduced the
    costs of trade,
  • b) trade negotiation rounds,
  • originally under the auspices of General
    Agreement on Tariffs and Trade (GATT),
  • then World Trade Organization (WTO)
  • which led to a series of agreements to remove
    restrictions on free trade.

  • Since World War II, barriers to international
    trade have been considerably lowered through
    international agreements - (GATT).
  • The Uruguay round (1984 to 1995) led to a treaty
    to create the World Trade Organization (WTO),
  • to mediate trade disputes
  • to set up a uniform platform of trading.

  • Other bi- and multilateral trade agreements
  • including Maastricht Treaty in Europe
  • the North American Free Trade Agreement (NAFTA)
  • They have also been signed in pursuit of the goal
    of reducing tariffs and barriers to trade.

  • Three Ages of Capitalism
  • Commercial Capitalism Commercial Revolution
  • 16th to mid-18th century
  • Industrial Capitalism Industrial Revolution
  • Mid-18th to 1970s
  • Financial Capitalism
  • Financial Revolution
  • Late 1970s onwards

  • The Globalization of Finance
  • The globalization of finance is one of the most
    striking political economy developments of post
    WWII era.
  • Financial Revolution
  • .

  • Two significant aspects to the development
  • Financial capital has become truly global
  • aided by modern means of communication,.
  • .

  • Possibility to move huge sums of money from one
    currency or investment to another instantaneously.

  • b) Capitalism is no loger primarily industrial
    but speculative . (from the 1980s),
  • Financial (speculative) Capitalism
  • concerned with dealing in stocks shares
    currencies not with trade or industrial
  • The collapse of Bretton Woods system.

  • Before the collapse of the Bretton Woods system,
  • 90 of all currency exchange were commercial
    transactions or long-term investments.
  • After the collapse,
  • Almost 90 of such transactions were speculative
    in nature.

  • Financial trading exceeded 1 trillion per day
    for the first time in 1995
  • which was about fifty times the total volume of
    world trade for the year.
  • Arrival of a new kind of capitalism.
  • Global nature of financial capitalism.

  • A quantum leap in the history of globalization
  • occurring since the early 1970s
  • The dramatic a) creation, b) expansion,
    c) acceleration
  • of worldwide interdependencies global exchanges

  • However
  • Particular initiatives carried out as a result of
    GATT and the World Trade Organisation (WTO)
  • have included both promotion and restriction of
    free trade

  • Promotion of free trade
  • a) Reduction or elimination of tariffs
    construction of free trade zones with small or no
  • b) Reduced transportation costs, especially from
    development of containerization for ocean
  • c) Reduction or elimination of capital controls,
  • d) Reduction, elimination, or harmonization of
    subsidies for local businesses,

  • Restriction of free trade Intellectual Property
  • Harmonization of intellectual property laws
    across the majority of states, with more
  • b) Supranational recognition of intellectual
    property restrictions

  • The nature of these developments has been
    criticized by many intellectuals, including Noam
  • Globalization, is a term of propaganda used
    conventionally to refer to a certain particular
    form of international integration that is
    beneficial to its designers i.e.
  • multinational corporations and the powerful
    states to which they are closely linked.

  • The Era of Keynesianism
  • Keynes, the architect of the Bretton Woods
  • In the decades following W W II,
  • even the most conservative political parties in
    Europe and the US
  • a) rejected the classical laissez-faire ideas
  • b) embraced an extensive version of state

  • The Era of Hayek ( Nobel 1974)
  • Neoliberal Revolution
  • against Keynesianism
  • In the 1980s, British Prime Minister Margaret
    Thatcher US President Ronald Reagan ( Turgut
    Özal in Turkey)
  • led the neoliberal revolution.
  • linking the notion of globalization to the
    liberation of economies around the world.

  • Concrete neoliberal measures include
  • 1. Privatization of public enterprises
  • 2. Deregulation of the economy
  • 3. Liberalization of trade and industry
  • 4. Massive tax cuts
  • 5. Monetarist measures to keep inflation in
    check, even at the risk of increasing unemployment

  • 6. Strict control on organized labour
  • 7. The reduction of public expenditures,
    particularly social spending
  • 8. The down-sizing of government
  • 9. The expansion of international markets
  • 10. The removeal of controls on global financial

  • The Collapse of Communism
  • The new neoliberal economic order
  • received further legitimation with
  • the 1989-91 collapse of communism in the Soviet
    Union and Eastern Europe.

  • Since then up to the 2008 crisis
  • the three most significant developments related
    to economic globalization have been
  • The internationalization of trade and finance
  • The increasing power of transnational
  • c) The enhanced role of international economic
    institutions like the IMF, the World Bank, and
    the WTO.

  • Effects of globalization
  • Globalization has various aspects which affect
    the world in several different ways such as
  • a) Industrial
  • b) Financial
  • c) Economic

  • Industrial
  • Emergence of worldwide production markets and
    broader access to a range of foreign products for
    consumers and companies

  • Financial
  • Emergence of worldwide financial markets and
    better access to external financing for
    corporate, national and subnational borrowers.

  • Economic
  • Realization of a global common market, based on
    the freedom of exchange of goods and capital.

  • Problems arising from Globalization
  • Poorer countries are sometimes at disadvantage
  • Prices Monoculture
  • While it is true that globalization encourages
    free trade among countries on an international
  • there are also negative consequences because some
    countries try to save their national markets.

  • The main export of poorer countries is usually
    agricultural goods.
  • It is difficult for these countries to compete
    with stronger countries that subsidize their own
  • Because the farmers in the poorer countries
    cannot compete,
  • they are forced to sell their crops at much lower
    price than what the market is paying.

  • Outsourcing
  • Exploitation of foreign impoverished workers
  • The deterioration of protections for weaker
    nations by stronger industrialized powers
  • has resulted in the exploitation of the people to
    become cheap labor in those nations .

  • Due to the lack of protections,
  • companies from powerful industrialized nations
    are able to force workers
  • to endure
  • extremely long hours,
  • b) unsafe working conditions,
  • c) just enough salary to keep them working.

  • Inequality between States
  • The abundance of cheap labor is giving the
    countries in power incentive not to rectify the
    inequality between nations.
  • If these nations developed into industrialized
    nations, the army of cheap labor would slowly
    disappear alongside development.

  • Poverty Trap
  • With the world in this current state,
  • it is impossible for the exploited workers to
    escape poverty.
  • It is true that the workers are free to leave
    their jobs,
  • but in many poorer countries, this would mean
    starvation for the worker his/her family.

  • Shift from Manufacturing to Service Work
  • The low cost of offshore workers have enticed
    corporations to move production to foreign
  • The laid off unskilled workers are forced into
    the service sector
  • where wages benefits are low, but turnover is
  • This has contributed to the widening economic gap
    between skilled and unskilled workers.

  • Decline of the Middle Class
  • The loss of these jobs has also contributed
    greatly to the slow decline of the middle class
  • which is a major factor in the increasing
    economic inequality in the United States.
  • Families that were once part of the middle class
    are forced into lower positions by massive
    layoffs and outsourcing to another country.

  • Lack of Social Mobility
  • This also means that people in the lower class
    have a much harder time climbing out of poverty
  • because of the absence of the middle class as a
    stepping stone.

  • The Rise of Contingent Work
  • As globalization causes more and more jobs to be
    shipped overseas,
  • the middle class declines,
  • there is less need for corporations to hire full
    time employees.

  • Declining Social State or Welfare State
  • Companies are less inclined to offer benefits
  • (health insurance, bonuses, vacation time, shares
    in the company, pensions),
  • or
  • inclined to reduce benefits to part time workers.
  • Most companies dont offer any benefits at all.

  • Decline in the Purchasing Power
  • Even though most of the middle class workers
    still have their jobs,
  • the reality is that their buying power has
    decreased due to decreased benefits.
  • Job security is also a major issue with
    contingent work.

  • Weakening of Labor Unions
  • The surplus in cheap labor coupled with an ever
    growing number of companies in transition has
    caused a weakening of labor unions.
  • Unions loss their effectiveness when their
    membership begins to decline.

  • As a result,
  • unions hold less power over corporations
  • that are able to easily replace workers, often
    for lower wages,
  • have the option not to offer any jobs to
    unionized workers .

  • Political Globalization
  • Political globalization refers to the
    intensification and expansion of political
    interrelations across the globe.

  • These processes raise an important set of
    political issues pertaining to
  • the principle of state sovereignty,
  • the growing impact of intergovernmental
    organization, i.e. WTO, IMF
  • the future prospects for regional global
    governance, i.e. EU

  • Humans have organized their political differences
    along territorial lines,
  • that generate a sense of belonging to a
    particular nation-state in the last few

  • This artificial division of planetary social
    space into domestic and foreign spheres
  • corresponds to peoples collective identities
  • based on the creation of a commonus
  • unfamiliar them.
  • demonizing the images of the other

  • The modern nation-state system has rested on
    psycological foundadions cultural assumptions
  • that convey a sense of existential security and
    historical continuity.

  • Origins of Modern Nation-States
  • The origins of the modern nation-system can be
    traced back to 17th-century political
    developments in Europe.
  • The Peace of Westphalia in 1648 concluded a
    series of religious wars among the main European
    powers following the protestant Reformation.

  • Treaties of Westphalia,
  • ended the Thirty Years War among medieval or
    post-medieval state structures
  • paved the ground for modern nation states

  • the new model of self-contained, impersonal
  • based on the newly formulated principles of
    sovereignty territoriality,
  • challenged the medieval mosaic of small polities.
  • with local personal political power but still
    subordinated to a larger imperial authority.

  • The Westphalian model
  • The eclipse transnational character of vast
    imperial domains.
  • Strengthening of a new conception of
  • international law
  • based on the principle that all states had an
  • equal right to self-determination.

  • The unified territoral areas constituted the
    foundation for modernitys secular national
    system of political power.
  • Absolutist kings in France and Prussia
  • Constitutional monarchs and republican leaders in
    England and the Netherlands,

  • Following the Peace of Westphalia
  • a) further centralization of political power
  • b) expansion of state administration
  • c) development of professional diplomacy
  • d) successful monopolization of the means of
    coercion in the hands of the state

  • States also provided the military means required
    for the expansion of commerce,
  • which
  • contributed for the spread of the European form
    of political rule around the globe.

  • The mature expression of the modern nation-state
    system at the end of World War I
  • US President Woodrow Wilsons Fourteen Points
    based on the principle of national
  • All forms of national identity should be given
    their territorial expression
  • Enshrining the nation-state as the ethical
    legal pinnacle of his proposed interstate

  • Extremely difficult to enforce in practice
  • Wilson lent some legitimacy to those radical
    ethnonationalist forces
  • that pushed the worlds main powers into another
    war of global proportions.

  • The League of Nations
  • Wilsons commitment to the nation-state coexisted
    with internationalist dream of establishing a
    global system of collective security under the
    auspices of a new international organization
  • the League of Nations.

  • The United Nations
  • His idea of giving international cooperation an
    institutional expression was eventually realized
    with the founding of the United Nations in 1945.

  • While deeply rooted in a political order based on
    the modern nation-state system,
  • the UN and other fledgling intergovernmental
    organizations served a catalyst for the gradual
    extension of political activities across national
  • thus undermining the principle of national

  • As globalization tendencies grew stronger
  • during the 1970s,
  • it became clear that the international society of
    separate states was rapidly turning into a global
    web of political interdependencies
  • that challenged the sovereignty of nation-states.

  • In 1990, at the outset of the Gulf War,
  • US President George H. W. Bush pronounced
  • the Westphalian model dead
  • by announcing the birth of a new world order.

In 1924, Is Bankasi In 1925, Sanayi ve Maadin
Bankasi In 1927, Tesvik-i Sanayi Kanunu
  • Porous Borders
  • Contemporary manifestiations of globalization
    have led to the partial permeation of these old
    territorial borders
  • The process softened hard conceptual boundaries
    cultural lines of demarcation.

In 1924, Is Bankasi In 1925, Sanayi ve Maadin
Bankasi In 1927, Tesvik-i Sanayi Kanunu
  • Hyperglobalizers Deterritorialization
  • Hyperglobalizers
  • have suggested that the period since tle late
    1960s has been marked
  • by
  • a radical deterritorialization of politics,
    rule, and governence.

In 1924, Is Bankasi In 1925, Sanayi ve Maadin
Bankasi In 1927, Tesvik-i Sanayi Kanunu
  • Globalization sceptics
  • Globalization sceptics have not only affirmed the
    continued relevance of the nation-state as the
    political container of modern social life
  • but have also pointed to
  • the emergence of regional blocks as evidence for
    new forms of territorialization.

  • Question
  • Is it really true that the power of nation-state
    has been curtailed by massive flow of capital,
    people, and technology across territorial
    boundaries ?

  • Political globalization is the creation of a
    world government which regulates the
    relationships among nations and guarantees the
    rights arising from social economic
  • Politically, the United States has enjoyed a
    position of power among the world powers in part
    because of its strong and wealthy economy.

  • With the influence of globalization with the
    help of The United States own economy,
  • China has experienced some tremendous growth
    within the past decade.
  • If China continues to grow at the rate projected
    by the trends,
  • it is very likely that in the next twenty years,
  • there will be a major reallocation of power among
    the world leaders.

  • China will have enough wealth, industry,
  • to rival the United States for the position of
    leading world power.

  • Informational globalization
  • Increase in information flows between
    geographically remote locations

  • Cultural globalization
  • Growth of cross-cultural contacts advent of new
    categories of consciousness and identities such
    as globalism

  • Globalism
  • embodies
  • cultural diffusion,
  • the desire to
  • consume and enjoy foreign products and ideas,
  • adopt new technology and practices,
  • participate in a world culture.

  • Greater international cultural exchange
  • Spreading of multiculturalism,
  • better individual access to cultural diversity
  • (e.g. through the export of Hollywood and
    Bollywood movies).

  • However, the imported culture can easily supplant
    the local culture,
  • causing reduction in diversity through
    hybridization or even assimilation.
  • The most prominent form of this is
  • but Sinicization of cultures has taken place over
    most of Asia for many centuries.

  • Ecological globalization
  • The advent of global environmental challenges
    that can not be solved without international
  • such as climate change, cross-boundary water
    air pollution, over-fishing of the ocean, and the
    spread of invasive species.
  • Many factories are built in developing countries
    where they can pollute freely.

  • Social globalization
  • The achievement of free circulation by people of
    all nations.
  • Greater international travel tourism
  • Greater immigration, including illegal
  • Spread of local consumer products (e.g. food)
  • to other countries (often adapted to their

  • Universal Values
  • World-wide fads and pop culture such as Pokémon,
    Sudoku, Numa Numa, Origami, Idol series, YouTube,
    Orkt, Facebook , and MySpace.
  • World-wide sporting events such as FIFA World Cup
    and the Olympic Games.
  • Formation or development of a set of universal

  • Double Revolution
  • The second half of the 18th century
  • A double revolution ushered in the modern
  • The Industrial Revolutution starting in England
    about 1760
  • The French Revolution of 1789

  • The French Revolution
  • introduced a new age of political order initially
    in Europe and later throughout the world.
  • The Political Revolution
  • The political revolution only gradually had an
    impact on the world.

  • The Industrial Revolution
  • The industrial revolution required more than a
    century to affect all the areas that are
    industrial countries today.
  • The dynamics of state-building preindustrial
    colonialism fueled an early era of globalization.

  • Atlantic Revolution - High-seas Navigation
  • During the early modern period, the Europeans
    managed to take control of the worlds seas,
  • although no one European power held a dominant
    positition over its competitors.
  • The Portuguese, Spanish, Dutch, English, and
    French, and even multinational pirate crews were
    far superior to every other sea power.

  • European Naval Supremacy
  • European naval supremacy extended to all branches
    of high-seas navigation
  • exploration, commerce, warfare.
  • The ties between naval power commercial
    shipping were closer in Europe
  • than they had ever been in any civilization in

  • The Role of Navies
  • The role of navies acquired a completely new
    dimension as instruments of the early modern
  • Much of Europes innovative talent was spent for
    perfecting naval navigation techniques
  • in establishing and running such complex
    organization as the British East India Company,
    the Royal Navy.

  • Shipbuilding The Most Dynamic Sector
  • Once Europe had secured control of the high seas,
    the stage was set for the rise of the most
    dynamic economic sector in the 18th century.
  • Shipbuilding shipping became important economic
    sectors each in its own right.

  • Emancipation of Military from Commerce
  • At first, military branch of seafaring was
    subordinate in importance to commercial shipping.
  • Around the middle of the 18th century, the
    military branch emancipated itself from its
    supporting role
  • became an instrument of a form of politics
    unknown until then.

  • Supremacy of Britain
  • The strongest adversaries considered the entire
    world to be a theater of war.
  • Large infantry units were shipped overseas.
    Britain pioneered this new strategic concept.

  • British forces drove the French out of Canada,
    fought them and their indigeous allies in India,
    attacked Manila and Havana, two of the
    wealthiest cities in the Spanish colonial empire.
  • The same phenomenon repeated itself in the larger
    conflicts between Britain and revolutionary,
    later Napoleonic, France, from 1793-1815.

  • Britain occupied many strategically vital ports
    in the wake of Napoleonic Wars, including
    Gibraltar, Malta, the Cape of Good Hope, and
  • The British completed their military conquest of
  • attempted for the very first time to establish
    diplomatic relations with China.

  • In 1788, Australia became the destination of the
    first British penal transports
  • turning the continent into another colony.

  • Fiscal Military State
  • Britain - The first fiscal military state
  • Britain was capable of mobilizing a greater
    amount of financial resources at home
  • compared to the absolutistic monarchies of the
    Eurasian continent.

  • Efficient Taxation Debt Financing
  • The improved capacity of naval warfare was one of
    the results of British efforts
  • to rationally organize the states policies of
    taxation and debt financing.
  • France and Russia quickly copied the British

  • The Great Crisis
  • The concentration of power in the Atlantic region
    was one of the most important reasons for the
    great crisis of the Western Hemisphere.
  • In the 1760s both the British state the Spanish
    crown attempted to strengthen their respective
    holds over their American colonies.

  • Response Wars of Independence
  • The United States of America
  • Thirteen British colonies declared their
    independence in 1776
  • fought against the British
  • defeated them in 1783.

  • Latin America
  • In the Spanish colonies the first attempts by the
    Creole elite to free themselves proved too week.
  • Creole mixed European African race
  • But they finally succeded in becoming independent
    as the Spanish monarchy fell apart in the wake of
    Napoleons invasion.
  • By 1825 the Spanish colonial empire had
    disappeared altogether from the American

  • (3) Haiti
  • A third war of independence started in 1791 by
    the mulatto planters and black slaves in St.
    Dominique the most importannt sugar producing
    area of the world.
  • Mulatto one black, one white parent
  • Civil war French British intervention
  • independence in 1804 under the name of Haiti,
    the first black republic in history.

  • The crises in the Atlantic
  • that went back and forth between the Old and New
  • from about 1765 to 1825
  • were the result of intense processes of
    integration in this maritime region.

  • Paradoxical consequences in the long-term.
  • The revolts of settler and slaves destroyed some
    of the existing links.
  • Once its sugar-exporting economy collapsed,
    slave-free Haiti dropped out of the global

  • In the USA the political elite directed the
    nations attention westward, away from the
  • Great adventure of settling the North American
    continent began.
  • The new republics of South and Central America
    wanted to have as little to do with Spain as

  • New international links were forged between the
    two sides of the Atlantic.
  • In place of Spain, Latin American countries
    established new economic relations with the
    leader of globalization, i.e. Britain.
  • The economic, social, and cultural relations
    between the USA and the Britain survived the
    political split and developed over time into the
    special relationship.

  • The US claimed very early to be a model for the
    rest of the World.
  • Revolutionary France reverted to dictatorship
  • Napoleons short-lived empire reached the height
    of its power around 1810,
  • uniting Europe for a brief historical moment.

  • Napoleons global repercussion The invasion of
    Egypt in 1798.
  • Alarmed the entire Muslim world.
  • b) Spurred British imperialism on
  • to further expansion in Asia.

  • Far-reaching Impact of the Industrial Revolution
  • What changes occurred in long-distance economic
    relations as a result of the spread of
    industrialization ?

  • The Industrial Revolution IR
  • The IR did not cause a sudden change in
    intercontinental economic relations.
  • The IR originated in one quite small economic
  • spread gradually and unevenly around the world.
  • Five aspects of the IR from the standpoint of

  • The IR began in Britain,
  • a country that already enjoyed an unusually
    well-developed network of
  • foreign trade relations
  • colonial connections.
  • This in itself was not a necessary and defining
  • Otherwise the IR would have started in the

  • However
  • The IR occurred in what was already a
    well-developed center of dynacmic economic
  • Distinction between IR and industrious
  • Industrious Revolution a mobilization of
    previously unused labor for marketable but not
    yet industrial production,
  • A mobilization spurred on by an increasingly
    individualized consumer demand.

  • The industrious revolution
  • reached the limits of its potention in the 18th
  • due to
  • a) the impact of political crisis
  • b) lack of
  • i) an efficently operationg financial system
  • ii) legal institutions to protect private
    ownership property.

  • 2. The IR did not emerge from within a
    self-contained economic system.
  • The leading economic sector the cotton industry
    of northern England.
  • It strove to compete with the quantitatively and
    qualitatively superior Indian textiles produced
    for the British market.

  • From the very beginning, the cotton industry was
    involved in global markets.
  • All of its raw material, cotton, had to be
    imported from abroad.
  • As early as the 1830 textiles comprised
  • more than 70 of Britains exports.
  • British business also had global contacts in the
    Atlantic slave economy.

  • 3. There was only one IR.
  • What followed were numerous industrialization
    processes within national, regional, or
    international frameworks.
  • Others without industry were able to achieve
    wealth by specializing in the export of
    agricultural products (Denmark, New Zealand)

  • 4. Industial means of production did not spread
    simply by imitation of the British model.
  • A complex process of creative adaptation.
  • The second generation of industrializing
    countries lacked some of the important conditions
    inherent in British development, such as
    agricultural revolution.

  • Japan, the third generation country.
  • Developed institutions advantageous of its
    industrialization as eary as the 17th and 18th
  • However, it did not begin to industrialize until

  • 5. It took quite a while for the industrial means
    of production to prevail in the economy
  • for its attendant phenomena to become
    predominant in society.
  • Britain become the first country around 1820s
    which nearly all areas of life were influenced by

  • Except politics,
  • where the agrarian nobility aristocratic
    financiers remained more influential than
    bourgeois manufacturers and intustrialists
  • Everywhere in Europe, small areas of regional
    industry arose like islands of dynamic
    development within agricultural environments.

  • Important for the globalization
  • Factories were using steam engines
    mechanization to produce an increasing supply of
    consumer goods, such as cotton textiles, at
    decreasing cost.
  • Equally significant was the mass production of
    complicated, mechanized equipment and machinery.

  • The most important of these were
  • Steamships,
  • trains,
  • more accurate destructive guns and cannons.
  • In the mid-19. century
  • The impact of the industrialization of war
    transportation felt far from the centers of
    industrial production.

  • Industries were established in areas where a
    number of natural, technological, political, and
    social resources conditions converged.
  • Many of their products spread from Europe North
    America throughout the entire world.

  • This was possible because
  • a) Effective trading networks already existed in
    between many economies that could be
    intensively used to expand global trade.
  • b) The use of steamships drastically reduced the
    transportation costs of long-distance trade for
    mass goods products of heavly industry
  • c) A demand gradually emerged for those
    prestige-conferring goods that were emblematic of
    Western civilization.

  • Firearms
  • produced in Europe, had reached the interior of
    both Africa North America before the IR.
  • The industrialization of arms production had
    contradictory effect.
  • It increased the output made weapons,
    particularly light ones, more readily available.
  • The best products of the arms industry, such as
    heavy artillery the slowly emerging warships
    built from iron, were becoming more and more

  • The previousy democratic world of muskets now
    split into two
  • The world consisting of the great powers who
    could afford the most modern weapons produced by
    Krupp or Vickers.
  • Those would could not affort to buy such

  • Further correlation between technology and power
  • A gun simply built could be repaired by an
    African or Indian village blacksmith.
  • However,
  • the Maxim, machine gun invented in 1884 and
    immediately deployed in colonial wars, almost
    never reached the hand of the natives
  • gave the imperialist user, colonizer, an
    incomparable advantage.

  • A renewed democratization of violence
  • the submachine gun invented at the end of WWI
  • spread throughout the world.

  • The Industrialization of Transportation.
  • The use of steam enery to mechanize movement.
  • 1830s a breakthrough for the steamship
  • Its utility first proved in inland and coastal
  • Then
  • Transatlantic steamship.
  • Steamships even appeared in non-Western
  • in 1835 on the Euphrates.

  • In 1850
  • A steamship was traveling from Shanghai to
  • The age of the sailing ship ended in the 20-year
    period between 1860 1880.
  • The opening of the Suez Canal in 1869,
  • built primarily for steamship use,
  • halved the time it took to travel
  • from London to Bombay.

  • The emergence of the major freight routes.
  • Scheduled trips
  • In the 18th century, sugar / the most important
    commodity traded in overseas commerce.
  • The second half of 19th century
  • Huge amounts of wheat, rice, cotton coal are
    shipped across the seas.
  • For decades most of the vessels hauling these
    products were built in English shipyards.

  • Railway Transportaion
  • Originally served only local and regional
  • Then the railways started to shape each society.
  • The Age of the Railroad began in Europe in the
  • By the turn of the century, railway
    transportation made an impact on only a few
    non-European countries India, Argentina, Japan,
    China, South Africa, Turkey.

  • Rails were laid as much for military as for
    economic purposes, as in India.
  • However
  • The effect was still the same It helped
    integrate the region into international commerce.
  • Major technical challenges, such as the
    Transcontinental Railroad connecting the eastern
    and western coasts of the US in 1867, extended
    the influence of urban centers to areas
    previously inaccessible.

  • Tourist began to replace the traveler.
  • Organized group excursions to the Ottoman Empire
    Orient Express North Africa were nothing
    special or exotic any longer.

  • The technological invention having the most
    dramatic effects on globalization the telegraph.
  • Cables were easier to lay than railroad tracks.
  • Samual Morses first patent in 1839.
  • By 1866 the first transatlantic cable was in
  • In 1880 a telegram could be sent from London to
    any any place in the entire British empire,
    whatever the continent.

  • Thanks to telegraph,
  • The speed with which news was transmitted between
    Europe and the US increased by a factor of ten
  • This accelerated developments on the financial
    commodities markets.
  • The volume of mail service increased
  • Thanks to the transportation of mail by rail,
  • A drastic reduction of postage fees.
  • Modern postal service.

  • The repeal of Corn Laws
  • Free trade was implemented when Britain
    unilaterally repealed its most important duties
    in 1846.
  • Other states soon followed suit.
  • By 1870 all of Europe west of the Czarist Russia
  • had become a free trade zone.
  • Outside of Europe, the establishement of the
    utopia of global free trade required political
    and military intervention.

  • Free trade and Challenges
  • Britain, by far, the worlds leading colonial
    power, introduced free trade to its colonies.
  • Non-European empires and states were not readily
    willing to abandon their own traditional orders
    and join in the effort of establishing a world of
    free trade.
  • Such initial protest was overcome through
    pressure or military force (the Ottoman Empire,
    China, Japan, and Siam Thailand)

  • Free Trade Imperialism
  • Unequal treaties opened up markets that
    previously had been closed to products of
    European industry.
  • By the end of the 19. century, the dominions of
    Canada and Australian were sufficiently
    independent to introduce protective tariffs.

  • The Opening of Japan
  • The second pioneer of modernization outside of
    Europe was Japan.
  • Opened to the world only in 1853-54 as a result
    of a U.S. naval action,
  • Japan started down the path of resolute
    self-reform following the Meiji Restaration of

  • The First Constitutional State in Asia
  • During this period of reform, Western elements
    were adopted on a grand scale
  • then mixed with authentic or cleverly invented
    domestic traditions.
  • Japan did not become a genuine democracy, but in
    the 1880s it did become the first constitutional
    state in Asia.

  • Private Space versus Public Space
  • Core institutions of social life such as the
    family remained Japanese,
  • while more formal institutions such as the
    military, police, governmental administration,
    and universties either were restructured along
    the lines of carefully selected Western models,
  • or introduced for the first time.
  • .

  • Japan Britain of the East
  • The foreign model was seldom left in its original
  • By the turn of the century, Japan was already
    being called
  • the Britain of the East or the Prussia of Asia

  • Intervention force
  • Britain possessed a worldwide dominion of the
    seas, an extensive intervention force, the
    worlds most lucrative colonies.
  • Once Britain has established itself economically
    as the worlds most dynamic force featuring the
    highest standard of living per capita
    attractive, free institutions, every other
    society, in comparison, was a latecomer and
    potential imitator.

  • Britain as Model
  • Britain saw itself as both model ordained
    policing power of the world.
  • By the 1860s, no ruling group could afford to
    close its eyes to Britains power, success, and
    determination to civilize the rest of the world.
  • This led to a wave of reform movements everywhere
    from Latin America to the Ottoman Empire, from
    Egypt to Siam.

  • Ruling Elites
  • By taking at least some steps towards
    accomadating the British, ruling elites hoped to
    ensure a place for themselves their countries
    in a world dominated by Western Europe,
    specifically Britain.
  • This globalization via adaptation was marked by a
    similar ambivalence between compliance and
    resistance, admiration and abhorrence.

  • Unipolarity in Culture
  • For the first time in history, a trend evolved
    toward unipolarity in the cultural realm.
  • The Western European-British path of development
    seemed to promise the greatest success.
  • It appeared that only a homogeneous, rationally
    organized, and powerful nation-state could handle
    the new forces of the age.

  • The Age of Progress
  • What is relevant for the history of globalization
    is the new perspective from which the world
    viewed the British-dominated West.
  • This view was underpinned by a universal history
    of progress.
  • Every country could be a part of this progress
  • there appeared no real alternative to this path.

  • Limits to cultural universalization
  • Still, the degree of cultural universalization
    must not be exaggerated.
  • Nationalism nation-state-building
  • made the Enlightenments idea of the world
    citizen appear antiquated in Europe.

  • Science was housed within the university system
    of each nation.
  • Only a few ever talked about world literature
    after Goethes death in 1832.
  • World history was superseded by national

  • World Expositions
  • World expositions were held on a regular basis
    starting in 1851 in Europe or the US.
  • These expositions celebrated the technical and
    material feats and achievements of the
    developed peoples those that primitive
    peoples had managed to accomplish with the help
    of the West.

  • The First News Agency Reuter
  • Julius Reuter founded in London in 1851 the first
    news agency.
  • He had set up within a decade a network of
    correspondents on six continents.
  • As the world became cabled, it became possible to
    supply the growing readership of daily newspapers
    with current news reports from around the world.

  • Modern Press
  • A modern press began to emerge about 1870 in
    countries such as Japan, China, the Ottoman
    Empire, Egypt,
  • marking the beginning of a global trend in media
  • People, for the first time, were witness to
    international media events.

  • Documented Wars
  • The Crimean War the American Civil War were the
    first wars to be documented by special
    correspondents photographers.
  • Other manifestations of Western high culture also
    spead to a similar degree worldwide,
  • such as popular theater or bel canto soap

  • English as lingua franca
  • Following the colonial period, people continued
    to speak Spanish and Portuguese in South America.
  • Portuguese lost its role as lingua franco to
    English in maritime Asia around 1830.
  • English rose to become the number one global

  • This resulted from the demographic expansion of
    the Anglophone United States, the success of the
    British Dominions, and the early expansion of the
    British into multilingual regions, such as India
    and South Africa.
  • They were in need of a common language.
  • In the 20th century the triumphant advance of the
    English language was also aided by the culture
    industry the mass media.

  • The emergence of World Economy
  • During the age of free trade (1846-80), a
    significant number of economic relationships were
    established worldwide,
  • usually unimpaired by governmental regulation.

  • The four basic features of the 19th century
  • Migration Migratory Patterns
  • Volume of world trade
  • Long distance transportation of mass commodities
  • The appearance of economic cycles

  • Migration
  • Those who settled in a foreign part of the world
    experienced intensively the process of
  • A new topography of cross-border migration
    evolved within Europe in the course of the 19th
  • People left southern, southeastern, and eastern
    Europe to move most often to Germany, France,

  • However,
  • the significance of these migratory movements
    pales in comparison to the migrations that
    accurred in other parts of the world.
  • Between 1850 1914, about 60-70 million people
    left their homelands, never to return.

  • Overseas Migration
  • Among these were 40-45 million Europeans who
    migrated overseas, primarily to north and south
    America, 7 million immigrants to Asian Russia,
  • 11 million Indians, Chinese, and Japanese,
  • most of whom became contract laborers (coolies)
    in foreign countries (Southeast Asia, the US, the
    Caribbean, East and South Africa)

  • Slave Trade
  • Although the slave trade shrank steadily once it
    was outlawed by the British parliament in 1807,
  • no fewer than 2.7 million African were still sold
    as slaves to America between 1811 1867.

  • Isolated communities
  • Immigrants seldom blended immediately into their
    new environment.
  • They created ethnic communities in extreme
    cases, self-sufficient Chinatowns and
    enhanced the multiethnic character of their
    adopted countries.

  • Transoceanic kinship
  • Since the immigrants usually maintained contact
    with their homelands,
  • the long-distance migration of the 19th century
    covered the
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