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GLOBALIZATION
Globalization
• Globalization refers to "the
compression of the world and the
intensification of consciousness of
the world as a whole"
• (R. Robertson, Globalization,
1992: 8).
Three forces Drive Globalization:
1. Universalism- universalism seeks truths
that apply to all times and places. (Global
Village, M. McLuhan)
2. Imperialism -the notion that developed
nations can help and exploit less nations.
3. Capitalism-the search for surplus
valueMarket forces= a drive to find cheaper
and more efficient ways of producing
goods for sale and consumption.
THE THEME
 Globalization- new historical era-new
relations between people and institutions -a
new type of interdependence.
 The main features of this new era are:
1.
the emergence of a single
transnational economy;
2.
the weakness of the nation-state; and
3.
the spread of a global culture and
global consciousness.
Globalization: Is it
Modernization?
• It is the process by which ideas,
beliefs and practices cross
national boundaries and tie
individuals to world wide
processes.
Key Dimensions of
Modernization
•
•
•
•
a. The decline of traditional communities
b. The expansion of personal choice
c. Increasing social diversity
d. Future orientation and a growing
awareness of time
Globalization forces
• Three forces Drive Globalization:
• UNIVERSALISM
• IMPERIALISM
• CAPITALISM
1. Universalism•
See McDonaldization
UNIVERSALITY
is not universalism
Universality is a left wing movement…
• A philosophy concerning the provision of
the benefits of the welfare state which
declares that all citizens have access
regardless of their need.
• For example, all citizens receive the same
access to health care in Canada, regardless
of their income.
Universality vs. Globalization
1. The underlying principle is that less
powerful citizens can be more easily
deprived of benefits,
2. Benefits can be more easily reduced,
3. Not received by most people in the
population.
4. The principle of universality has been
seriously eroded by globalization.
Trade agreements
• Multilateral trade agreements
provide corporations with powerful legal
recourse.
• Privatisation also undermines water
quality and ecological sustainability.
• I.e Water companies work to weaken
water quality regulations and
environmental standards
Monopolies and Gov’ts
• Private operators are not
accountable to the public
• Privatisation can reduce
accountability and local control.
For example
• Governments make long-term
deals with the water companies,
granting them exclusive
distribution rights, thus
sanctioning monopolies./
Mel Hutig, The Betrayal of
Canada
Mulroney Betrayed Canada...speech in
1983 stated:
•
"Free trade with the United States is like
sleeping with an elephant. It's terrific until
the elephant twitches, and if you role over
you are a dead man"
•
(Thunder Bay, 1983)
Mulroney-Gave away the
store...
•
•
•
•
•
•
1. Bill C22 weakened generic drug laws.
in the name of profit
2. FIRA and National Energy Program
`guaranteed access'
3. Secret deals over Softwood Lumber.
4. Secret deals over the value of the
Canadian dollar.
4 Free Trade Implications
(M. Hurtig)
• .1. Unemployment-4% points higheralthough recession will end-"but high
unemployment, underutilized capacity, and
a lower standard of living overall"
• Underemployment-part-time, temporary,
contractual jobs.
2. Deindustrialization• 2. Deindustrialization-a warehouse
economy-worse than branch plant....GDP
now 16% from 19% before FTA
•
• 3. Jobs Heading South -"blind doctrinaire
adherence to age old Adam Smith
economics"
•
Foriegn ownership• 4. Foriegn ownership-1.fewer jobs
•
2.poorer jobs
•
3.less diverse exports
•
4. fewer professionals
Theorizing Globalism:
• Globalism -a transnational political
mobilization that focuses individual
energies on global issues rather than on the
nation-state.
• Global consciousness where
opinions are formed and issues are
resolved by hammering out global
interests.
• UN, World Bank, INTERPOL…
History of Economic
Globalization
•
Globalization foundations include:
1. The expansion of the West and its search
for new markets
Globalization Foundations
2. The uneven development of industry
and the need for raw material from places
far away from where the goods are
manufactured
3. ( World Wars 1&2)
Produced need to secure stability
throughout the world
4. American fears of Japan whose
development of the small car and
technology pushed the Americans into new
level of competition (late 1970’s)
• e. Oil Crisis 1979
5. 1980’s Neo liberal (conservative)
Movement
Global economy entails:
• The global economy involves the
following processes:
• 1. International economic
institutions such as the IMF, World
Bank
• 2. Transnational corporations such
as IBM, Nissan, McDonalds
• 3.
World financial markets in
New York, London, Toronto and
elsewhere
• 4. Global spread of new
production practices and
consumption patterns
• 5. Competitive economic
nationalism, as govts attempt to
improve their own economic
positions in the world
• 6. World wide division of labour
and class system
Globalization Characteristics
•
1. Globalization has been called
Americanism.
2. Standardization of culture under
corporate control.
When Corps Rule the World
3. Nation states are undermined by
multinational corporations and a standard
way of doing things become prevalent
throughout the world.
4. Globalization - linked to the exploitation
of third world countries by the first
world.
(neo)Liberal Interpretation
Adam Smith developed first
developed the notion of
individualism and the division of
labour
To A. Smith,
Capitalism is a mutually beneficial
system consistent with human nature.
(See Hobbesian view of man)
Individuals seek to earn a wage or
make a profit
An interdependent, mutually
beneficial system of exchange.
Marx on Capitalism
1.
Marx believed that capitalism is
ultimately a system of exploitation
2.
Marx believed workers receive a
pittance wage compared to the owners of
the means of production
Marx believed in Social
Transformation
3.
Marx believed that Socialism would
replace capitalism
4.
Liberal critics argue that Socialism is
unrealistic, others believe it may still
happen
Conflict Interpretation
• . 5. Contractions of capitalism =(surplus
value)
• 6. Surplus value requires worker
exploitation.
• 7. Maximization of profit requires
bourgeoisie to go further abroad for profit.
•
Conflict Interpretation
• 8. Economic downturns inevitable
• 9. Attempts to correct system will
ultimately fail.
• 10. Capitalism sows the seeds of its own
destruction.
•
• THE RESULT: will be improved economic
order-interests of all men better served.
SOCIALISM OR
• SOCIAL TRANSFORMATION or True
communism
• FOR MARXIST/Conflict Theorists:
• THE GLOBAL VILLAGE is THE
GLOBAL EXPLOITATIVE MARKET
• FREE ENTERPRISE IS AN ILLUSION’
• FREE FOR WHO?
Globalization debate
•
The is significant debate around
globalization from different sociological
perspectives..
1. SF-modernization and adaptation
2. Conflict theory-dialectical change
towards end of capitalism-its last crisis
3. Symbolic Interactionism-rationalization
Key features
Globalization
• It is a process that both connects
and stimulates awareness of
connection.
• Globalization dissolves the
autonomy of actors and practices
in contemporary world order.
Functionalists- see Davis and
Moore
1. Functionalists and conservatives are in
favour of trickle down economics.
2. The free market will take care of itself.
Structural functionalism
3. A corporation who is found to
excessively exploit will lose favour with
the consumer - market correction.
4. Hierarchy is inevitable and functional.
5. Economy is one social institution-it is
adaptive
Symbolic Interactionists
(Weber)
1. Globalization=Iron cage of capitalism
2. Increase in formal rationality of
bureaucracy I.e. monopoly capitalism
3. Decrease in substantive rationality, loss of
human control
• See G. Ritzer on Mcdonaldization of
culture
Logo culture
• The symbols signs and language are
characterized by Corporate Logos
• Logos affect consciousness.
POST MODERNISM
• IS HIGHLY CRITICAL OF THE
ENTIRE CONCEPT OF
MODERNIZATION.
• Is society `modernizing’ or is it merely
going round and round…fragmented,
multiple realities, multiple discourses?.
Summary
• GLOBALIZATION is key issue in
sociology today.
• Sociological theorists-structural functional,
conflict and symbolic interactionist debate
its significance in terms of modernization
Globalization and Capitalism
• The confrontation of their
world views means that
globalization involves
"comparative interaction of
different forms of life" (Robertson:
27).
• Global interdependence and
consciousness of the world as a
whole precede the advent of
capitalist modernity
Economy Pre-industrial to
Industrial
1. 1900-1920-most jobs in agriculture
2. Starting in 1920-more services through trucking,
mail delivery, telephone communication,
financial assistance.
3. Other services-medical care, educational
instruction, demand for service workers
4. Manual recording, data entry performed by
women, paperwork, order placement
1941 and 1951
5. Between 1941 and 1951, for example
women married in workforce grew from
12.7% to 30% to 47% by 1961
6. Today comparatively speaking women
continue to do more work than mendouble day, part-time job-86 hours (paid
and unpaid) to men 74 hours/
st
21
century
1. Increased competition among cities
to attract capital
2. Businesses for generating employment
and sources of undermine tax
revenues
3. Widening inequalities between
groups and individuals,
4. Discrepancies in the level of essential
services provided to citizens
3. Natural Resources
•
•
•
•
•
WATER
ELECTRICITY
LUMBER
MINERALS
Commodification of basic resources-is
exploitative…
st
21
century=privatization
• Privatisation of water and
sanitation
• The impact of globalisation on the
right to adequate housing
Privatized Global Economy
• In fact, corporate globalisation,
and its clear expression of
privatisation of services, is one of
the greatest threats to universal
access to clean drinking water and
sanitation
Water
•
• The Council of Canadians’ water
campaign is calling for a national water
policy that protects Canada’s water from
bulk exports and privatization, because:
Free Market and Water
• The free market doesn’t guarantee access to
water;
• Bulk exports could open the floodgates to
trade challenges;
• Canada’s water supply is limited;
• Public water is safer, cleaner and more
affordable; and
• Water is essential for people and nature.
Huge profits/eco
imbalance
• Corporations are in a rush to
obtain access to water, which they
can sell at huge profits.
• Mass extraction of water from its
natural sources
• Ecological imbalances
• Aquifer depletion
• Groundwater contamination
Scarce Resources as
Commodities
• By turning a social good and
scarce resource into an economic
commodity
• The world’s economic and policy
planners claim that… “existing
water resources can be managed
and consumed”….?
The World Bank
• The World Bank and regional
development banks often advocate
for “unbundling” of services
• Separates the profitable and
unprofitable areas of water and
sanitation services
Layoff in Public Works
• Privatisation often leads to job losses.
• Massive layoffs are common as
companies try to minimise costs
• To maximise profits , services and
water quality are put at risk
• Understaffing; thus lay-offs
• Double negative impact as they hurt
consumers as well as the workers
involved.
Privatisation and the
poor
• Privatisation often results in
reduced access by the poor to
basic social services.
• Meters on Shacks!!!@
Global Slums
rd
3
world
• In many cities and towns in
developing countries,
• Between 50% and 70% of the
population live in slums and squatter
settlements
• Without adequate housing or basic
services.
• Many of the poor end up paying up to
twenty times more than the rich for
water.[
Regressive tax
• regressive tax is a tax imposed in such a
manner that the tax rate decreases as the
amount subject to taxation increases.
• In simple terms, it imposes a greater burden
(relative to resources) on the poor than on
the rich.
Trade-related competition for
basic necessities
• Trade-related competition for
water resources
• Corruption in the privatisation
process, where the system of
checks and balances is weak.
• Capitalism is about egoism not
self regulation..
• FOR MARXISTS:
• THE GLOBAL VILLAGE is THE
GLOBAL EXPLOITATIVE MARKET
• FREE ENTERPRISE IS AN ILLUSION’
• FREE FOR WHO?
FOR EXAMPLE:.
1. Local crops are replaced by specialized
industries
2. Standard of living may go up for some,
3. For others there is increasing exploitation.
4. Instead of goods exchanged through barter,
5. individuals must work for a company and pay for
goods in cash.
6. This has been linked to patriarchy and
alienated labour.
2. Imperialism
1. Imperialism -the notion that developed
nations can help and exploit less nations.
2. Inclusiveness leaves nothing untouched.
This notion has an embedded militarism.
3. The Koran and the semitar, the Bible and
the Sword, Communist manifesto and
tanks.
4. Imperialism is militaristic colonialism
3. Capitalism
1. Capitalism-Profit or surplus value.
2. The search for suplus value-the market drive
for profit
3. Cheaper and more efficient ways of producing
goods for sale and consumption.
4. Capitalism is characterized by systematic
consumption, exchange, wealth accumulation.