Transcript Economic Globalization

SO408 AP Comparative Government & Politics


You have now been exposed to three
different sources that attempt to explain
globalization.
Since this is a course in Comparative
Government after all, your group’s (group of
3) task will be to compare and contrast (what
was similar & what was different) the three
sources in terms of
◦
◦
◦
◦
A. the definition of globalization
B. the causes of globalization
C. the political dimensions of globalization
D. the economic dimensions of globalization


Globalization is the process of expanding and
intensifying linkages between states,
societies, and economies. Entire societies are
now directly connected to global affairs.
Globalization makes domestic issues more
subject to international influence and makes
local events more influential around the
world, posing two challenges to the study of
comparative politics as it blurs the line
between domestic and international politics.

A process that
◦ results in a growing inter-connectedness of the
world
◦ leads to increasing interdependence of economies,
political systems, and societies on a global scale
◦ results in countries becoming more sensitive to the
decisions or actions of others and more vulnerable
to the effects of others’ choices and actions.
◦ Presentation: Economic Geography

Technology
◦
◦
◦
◦

Costs of communication and transportation down
Containerization
Just-in-time manufacturing
Internet, computers, cell phones
Government policies
◦ Shift to monetarism and neoliberal economic
policies that started around 1980
 Deregulation, privatization, open borders
 Reduced the role of government in regulating
economic transactions
◦ Creation of WTO lowered tariffs on imports/exports

Government policies
◦ Removal of government controls on exchange rates
allowed $ to travel around the world seeking the best
return at the lowest risk ($1.5 trillion/day)
◦ Impact of IMF and World Bank policies on developing
economies in response to various financial/debt crises
(see above)
 SAPs – structural adjustment policies
 Goal is to help country pay off debt and get economy growing
 This usually takes the form of extreme free-market strategies,
such as deregulating banking sectors, removing trade barriers,
privatizing natural resources and government industries,
devaluing currencies, strictly adhering to balanced budgets,
changing national law to make an environment more conducive
to foreign investment, and building up export economies.

Globalization is a causal process
◦ Impacts the degree of globalism

Globalism is a condition or effect of the
process
◦ The existence of a network of connections that
span more than one region of the world
◦ Can be measured and described
 “thin” vs. “thick”

How would you try to measure
the extent of globalism that
exists? (Think-Pair-Share)

Dimensions of globalism
◦ Economic: long distance flows of goods, services
and capital and the information and perceptions
that accompany market exchanges
 Amount of trade (% of GDP), FDI (foreign direct
investment), …
◦ Political: embassies, memberships in international
organizations, participation in UN security missions,
treaties, …
◦ Social: personal contacts, information flows,
“proximity”, …
 Movements of ideas, information, images and of
people, who carry ideas and information

Dimensions of globalism
◦
◦
◦
◦
Political engagement
Personal contact
Technological connectivity
Environmental
 Long distance transport of material in the atmosphere
or oceans or of biological substances such as
pathogens or genetic materials that affect human
health and well being
◦ Military
 Long distance networks in which force and the threat
or promise of force are deployed

http://www.globalizationindex.org/static/pdf/rankings_2015.pdf





New technology
Centrality of information made possible by
instant communication
Increasing trend toward standardization of
economic and social products
Growing cross-nation integration
Mutual vulnerability stemming from greater
interdependence

Globalization is associated with three
nonstate or superstate entities:
◦ 1) multinational corporations (MNCs—firms that
produce and market goods in more than one
country);
◦ 2) nongovernmental organizations (NGOs—national
and international groups, apart from any state, that
focus on specific policy goals); and
◦ 3)intergovernmental organizations (IGOs—groups
like the United Nations and the European Union that
are created by states to focus on certain policies).

International organizations may be part of
an international regime, defined as the
fundamental rules and norms of politics, a set
of institutions that empower and constrain
states and governments. They link states and
shape their relationship to each other, usually
with relation to some specific issue (such as
greenhouse gases or trade).
Concerning sovereignty, some people
argue that states may give up
sovereignty in favor of integration
under international organizations.
 These organizations, they argue, will
be able more effectively to tackle
critical global issues and politics, and
they predict that violent conflict will
decline.


Others argue that globalization will
lead to fragmentation, as globalization
is fostering the emergence of such
violent international actors and
movements as globalized crime and
terrorism.

Concerning democracy, some argue
that IGOs and NGOs increasingly act
as international watchdogs, and that
in the long term, global politics will
become more transparent and
responsive.
Others argue that globalization will
lead to a weakening of democratic
institutions, as international actors are
not directly elected and so lack the
direct public accountability so
necessary to republican governance.
 IGOs and NGOs may suffer from a
“democratic deficit,” an idea first
raised with regard to the EU.

Basic Economics for Comp Gov

Command economy
◦ An economic system in which most prices, property, and
production are directly controlled by the state

Market economy
◦ An economic system in which individuals and firms
freely exchange goods and services

Capitalism
◦ The combination of a market economy with private
property rights
 Requires the state to provide security, protect property &
contract rights, and provide a stable medium of exchange
(money supply)
◦ Behaviors are driven by incentives, both positive and
negative (“invisible hand”)
25
22

Mixed economy
◦ An economic system in which decisions about how
resources should be used are made partly by the
private sector and partly by the government, or the
public sector
 Governments intervene and regulate capitalist
economies
 externalities
 Public goods
 “safety nets”
◦ Almost all economies in the world today are
variations of this type
25
23

Liberal Market Economies (LMEs)
◦ “Consumer” capitalism
◦ Rely heavily on market relationships to govern
economic activity
◦ Minimal role for government
 Government focuses on ensuring that market
relationships function properly
 USA & UK
25
24

Coordinated Market Economies (CMEs)
◦ “Producer” capitalism
◦ Firms, banks, financiers, unions and government
consciously coordinate their actions through
interlocking ownership and participation
◦ In the political system, this is called a “democratic
neo-corporatist interest group system”
◦ Germany & Japan
25
25

When many people think about globalization,
economics is what typically comes to
mind. Scholars tend to point to several
specific institutions and regimes as vital
components of economic globalization: the
Bretton Woods System, globalized trade, and
global communication.
◦ Also called the “Washington Consensus”
◦ Rolling back the state’s control over the market
◦ Privatization, deregulation, trade & financial
liberalization (“Neo-liberal Economics)

Vital components
◦ Globalization of trade & finance
 FDI (foreign direct investment)
 China owns over $1 trillion in US Treasury bonds
 MNCs (?)
 GE’s profits in 2010 = $14 billion (> Haiti’s GDP)
 No US taxes paid since the profits were earned overseas
 People
 In 2010 nearly one-quarter of a billion people moved
across international borders


The Bretton Woods System is a postwar
economic regime created to expand
economic relations and promote trade
liberalization.
Three important institutions emerged from
the Bretton Woods System:
◦ the International Monetary Fund (IMF),
◦ the World Bank,
◦ the General Agreements on Tariffs and Trade
(GATT), later replaced by the World Trade
Organization (WTO).

While trade has always had a strong
international component, globalized trade
has become increasingly extensive and
intensive, tying markets, producers, and labor
together in a way that had not existed
previously. Examples of this trend has been
the increase in foreign direct investment (the
purchase of assets in a country by a foreign
firm) and increased immigration resulting
from globalized labor.

Optimists argue that economic globalization
leads to greater prosperity, as wealth is
diffused more effectively through open
markets for goods, labor, and capital,
increasing standards of living worldwide.
◦ Jobs created; people moved out of poverty worldwide
 (definition: extreme poverty = $1.25/day)
◦ Walmart effect


Economic development is amplified by
expanded global communication, which has
broken down many of the traditional barriers
to trade.
Perhaps the best-known example of this
intersection among globalized labor,
technology, and markets is offshore
outsourcing, the process by which a firm
moves its work to a secondary business in
order to lower costs and/or increase
production.

Critics say that globalization hurts workers as
this increased trade, foreign investment, and
offshore outsourcing leads firms and
countries to engage in a “race to the bottom,”
driving down wages, weakening regulations,
and undermining sources of economic
stability.
◦ Many workers “left behind” or “left out”
◦ Jib Jab “Big Box Mart”

Critics also fear the weakening of state
capacity and autonomy, as globalized
businesses are increasingly able to avoid
government taxation, oversight and public
accountability, replacing state power with a
small cartel of powerful corporations that lack
any national or democratic control.
◦ Also creates increased dependence on other
countries for critical resources





Founded in 1944
“one of the world’s largest sources of
development assistance.”
“bringing a mix of finance and ideas to
improve living standards and eliminate the
worst forms of poverty.”
Owned by more than 184 member countries
“helps each developing country onto a path of
stable, sustainable, and equitable growth.”

The World Bank President is by tradition a
national of the largest shareholder,
◦ The United States



In summary
The World Bank borrows money (issues bonds)
and gets contributions.
It then loans that $ to countries for educational,
economic, and industrial projects.
◦ Works through the International Bank for Reconstruction
and Development (IBRD)

It also provides experts and expert advice to the
borrowers.




“World Bank policies force impoverished
countries to prioritize debt repayment over
human need, divert resources from health,
education, and clean water.”
“the Bank makes it easier for companies to fire
workers and to change their labor laws to weaken
the collective power of workers.”
“The World Bank raises most of its funds by
issuing bonds [sold to] pension funds, labor
unions, churches, municipalities, and
universities…”
Those bond buyers, in rich countries, are the
recipients of profits earned from the poorest
countries.
(World Bank Bonds Boycott)


“an international organization of 184 member
countries.”
“It was established to promote international
monetary cooperation, exchange stability,
and orderly exchange arrangements; to foster
economic growth and high levels of
development; and to provide temporary
assistance to countries to ease balance of
payments adjustments.”



“the central institution of the international
monetary system – the system of
international payments and exchange rates
among national currencies…”
“It aims to prevent crises in the system by
encouraging countries to adopt sound
economic policies;”
“it is also … a fund that can be tapped by
members needing temporary financing to
address balance of payments problems.”
◦ It is the lender of last resort


Structural Adjustment Programs (SAPs)
Economic policies which countries must
follow in order to qualify for new World Bank
and IMF loans and help them make debt
repayments on older debts owed to
commercial banks, governments, and the
World Bank.
◦ “Conditionality” – requirement that countries meet
certain conditions to be eligible to receive
international assistance or to join certain
international clubs (like EU or WTO)


Describe the main features of each of the “4
paths to economic growth: ISI, EOI, neoliberalism & state capitalism”
What are SAPs? Why are they disliked?



6. Political economy involves the study of the relationship
between states and markets.
(a) Define economic liberalization.
(b) Describe the actions governments take in pursuing a
policy of economic liberalization regarding TWO of the
following:
◦
◦
◦
◦



Subsidies
Tariffs
Ownership of companies and firms
Foreign direct investment
(c) Identify one international organization that promotes
economic liberalization.
(d) Explain one reason for pursuing economic
liberalization.
(e) Explain one reason for resisting economic
liberalization.





#1 – ISI (Import Substitution Industrialization)
Based on mercantilism (state-controls
economy)
State plays a strong role in the economy
Protective Tariffs or non-tariff barriers are
used to restrict imports & protect new
industries
State actively promotes domestic production
of products that it used to import

A policy that stated that a developing country
should protect its new industries by placing
restrictions on international trade, thus
allowing its new industries to grow until they
were strong enough to compete on the
international market.
◦ Governments took on the role of business owner,
creating wholly or partly government-owned
industries that supplied the domestic market with
key goods. (“para-statals”)



Relatively successful at first.
◦ Brazil, Mexico and Turkey saw very rapid economic growth
throughout the 1950s and 60s.
But,
Protecting industry from competition in the long run
resulted in inefficient industries that could not
compete on the international market.
◦ These industries were hard to change
 “vested interests” of managers and employees caused resistance
◦ These industries couldn’t compete with enough exports to
balance imports.
 Countries had to borrow and often weren’t able to re-pay
 “debt crises”
 IMF & World Bank “to the rescue” at a price.
 SAPs



Based on mercantilism
State plays a strong role in the economy
Tariffs or non-tariff barriers are used to
protect domestic industries

Economic production is focused on industries
that have a niche in the international market.
◦ Export goods and services
◦ Exploit natural resources or less-expensive labor
◦ Seeks to integrate into the global economy

Weakness?
◦ Dependent on world economic & market conditions
 Like rentier states
◦ Sensitive to currency fluctuations
 Exchange rates




AKA: Economic Liberalization (Capitalist, Free
Market)
State involvement is reduced as the economy
is opened up
Foreign investment is encouraged (FDI)
Often forced on countries through SAPs
(structural adjustment programs) when ISI or
EOP fail.

Common principles and features of SAPS
◦ Export-led growth
 Eliminate/reduce trade barriers (tariffs, quotas,
paperwork, etc.)
◦ Privatization and liberalization
 Sell off government-owned industries
 Reduction of government subsidies
 Deregulation
◦ Relies on “efficiency” of the free market to promote
growth
◦ SAPs Require Balanced budgets
 Cuts in public services
 Cuts in government programs
◦ Threaten the sovereignty of national economies
because an outside organization is dictating a
nation’s economic policy.

Late 19th century – pro-business policies of
Porfirio Diaz (EOI)
◦ Modernizing authoritarian
◦ FDI created vast wealth for the upper classes; the
poor were left behind

After the revolution
◦ PRI party dominated 20th century Mexico
◦ Supported the broad working class
◦ Nationalized oil industry, re-distributed land &
practiced ISI

PEMEX was used a the state’s “piggy bank”
◦ Deficit spending the norm

Suffered through a series of debt crises
◦ 1976, 1982, 1994 (peso devaluation, presidential
candidate assassinated, Zapatista rebels)
◦ Rescued by US and IMF (SAPs)
 Moved toward neo-liberalism
◦ Joined the GATT (the predecessor of WTO) and
NAFTA

NAFTA
◦ Shift toward exports (from 25% to 80+% of GDP)
◦ Created regional differences
 Northern Mexico prospered
 FDI: maquiladores + cheaper labor to export to US
 Southern Mexico fell behind
 Farmers hurt by imported agricultural products from US
◦ Increased dependency on US
 “When the US sneezes, Mexico catches a cold.”
 2008 recession hit hard – GDP down 6.5% in 2009


Mexico has the highest number of freemarket trade agreements of any country in
the world
Mexico’s GINI index is one of the highest in
the world
◦ Neo-liberalism has made inequality worse
◦ Made worse by poor governance, crime &
corruption

Today Mexico is one of the top 20 economies
in the world


Tries to blend the powers of the state with
the powers of capitalism.
It depends on government to pick winners
and promote economic growth.
◦ “national champions”

But it also uses capitalist tools such as listing
state-owned companies (enterprises) (SOEs)
on the stock market and embracing
globalization.

State capitalism includes some of the world’s
most powerful companies.
◦ The 13 biggest oil firms are all state backed
◦ World’s largest national gas company
◦
◦
◦
◦
◦

 Russia’s Gazprom
China Mobile – 600 million customers
Saudi Basic Industries Corporation – chemicals
Sberbank – Russia – Europe’s 3rd largest bank
Dubai Ports – 3rd largest ports operator
Emirates airline (Dubai) – growing 20%/yr
Also manage huge pools of capital
◦ Sovereign wealth funds (SWFs)


The Chinese state is the biggest shareholder
in the country’s 150 biggest companies and
guides and goads thousands more.
It shapes the overall market by managing its
currency, directing money to favored
industries and working closely with Chinese
companies abroad.




How can the state regulate the companies
that it also runs?
How can it stop itself from throwing good
money after bad?
How can it remain innovative when innovation
requires the freedom to experiment?
SOEs crowd out small entrepreneurial firms
◦ They gobble up capital and amass bad debts

Highly susceptible to corruption
◦ SOEs are great sources of jobs and patronage
 “vested interests” anyone?
◦ TI Corruption index for China? Russia?
◦ Often reinforces corruption because it increases the
size and range of prizes for the victors.
◦ Ruling elites not only have the government
apparatus but also huge corporate resources at the
disposal
 Exacerbates the income gaps within societies
 Gives rise to oligarchs and “princelings”


The WTO is a powerful international
(supranational) organization, responsible for
regulating international trade, settling trade
disputes, and designing trade policies
through meetings of its member countries.
Works to lower trade barriers by negotiating
multilateral trade agreements involving
◦ Tariffs; trade & environment; anti-dumping and
subsidies; investment; competition policy; trade
facilitation; transparency in government
procurement; intellectual property..

Why U.S. Taxpayers Are Paying Brazilian
Cotton Growers.
 Protest
groups
◦ Labor unions, environmentalists,
socialists, anarchists
 Key
issues for the protestors
◦ Income inequality, labor
protection and environmental
standards
 Youtube
37-62

How much power
should government
have?
◦ Active government
control of major
economic sectors

What values should
government
pursue?
◦ Economic equality
◦ Community

Supports private property and markets but
believes that the state has a strong role to
play in regulating the economy and providing
benefits to the public
◦ Very common in Europe


Seeks to balance freedom and equality
Corresponds to Liberalism in America



Dimensions of globalization
Processes that facilitate transnational or
global interaction
From Appardurai, Modernity at Large
65
11/14/2005


Global flows of
money
Huge volume: $1.5
trillion daily
◦ Goods: $15 trillion
annually
6611/14/
2005

Capabilities to
distribute and
disseminate
◦ Information
◦ Images
6711/14/
2005


Spread of technology
Interpenetration of borders
68
11/14/2005


Ease of movement
Volume of movement
◦ Tourists, immigrants, refugees, exiles, guest
workers
69
11/14/2005
70
11/14/2005

Global spread of
◦
◦
◦
◦
Ideas
Values
Social movements
Ideology
7111/14/
2005


Jib Jab – “Big Box Mart”
How the Greek Financial Crisis Hurts the US
(NPR)

A brief review of late 20th century history
◦ 1945 – WWII ends
◦ 1948 – Cold War (USSR vs. USA)
 1. a world divided – 2 “superpowers”




US & allies (NATO, SEATO, etc.)
USSR & allies (Warsaw Pact)
Berlin Wall
“non-aligned” nations
 2. Competition
 Nuclear weapons (MAD)
 Space
 Olympics

A brief review of late 20th century history
◦ 1948 – Cold War (USSR vs. USA)
 3. “proxy” wars




Korea
Vietnam
Afghanistan
Dozens of Marxist guerilla movements
◦ 1989 – USSR collapse
 Berlin Wall down
◦ Making sense of this “Brave New World”

Three possible “futures” (as seen in 1990s)
◦ Fukuyama – The triumph of democratic capitalism
 “The End of History and the Last Man”
 “modernization theory” – see chapter 1 in O’Neil
 History (in a Marxist interpretation) ends not with pure
communism, but with universal democratic-capitalism
◦ Huntington’s “Clash of Civilizations” (1993)
 Conflict would occur between “civilizations” based on
cultural differences, not ideological ones.
 Conflicts shift from a bi-polar to a multi-polar world
◦ Barber’s “Jihad vs. McWorld” (1992)

Benjamin R.
Barber, 1996
7611/14/
2005


In considering the evidence for globalization,
some scholars have argued that connections
between regions around the world have
existed for centuries, and that globalization is
not a new phenomenon.
They argue that we should not assume that
what is occurring now is so unique that the
past has nothing to teach us.

Other scholars say that globalization’s effect
is exaggerated.
◦ Sovereignty remains a critical demand for people
around the world, and many countries have
tightened controls to combat terrorism, stifle
dissent, or respond to economic crisis.
◦ Even in the area of economics, international trade is
only a quarter of the global GDP, and countries still
exhibit a strong “home bias” in economic activity.
◦ Finally, with regard to societal changes,
globalization has failed to produce cultural
homogeneity.

While people may feel that globalization is
inevitable, it can be limited or reversed by
such things as economic crisis or public
opposition.

Economies of countries
that engage well with
the international
economy have
consistently grown
much faster than those
countries that try to
protect themselves.
◦ Average + 2 ½ %
Benefits

There are social and
economic costs to
globalization. Trade
liberalization rewards
competitive industries and
penalizes uncompetitive
ones, and it requires
participating countries to
undertake economic
restructuring and reform.
◦ Long term benefits
◦ Intermediate term
“dislocation” costs
◦ High social costs for those
people affected
Problems

Countries that have had
faster economic growth
have been able to
improve living standards
and reduce poverty.
Cheaper imports also
make a wider range of
products accessible to
more people and,
through competition, can
help promote efficiency
and productivity.
◦ “Wal-Mart effect”
Benefits

Some countries have
been unable to take
advantage of
globalization and their
standards of living are
dropping further
behind the richest
countries.
◦ The gap in incomes
between the richest and
poorest countries has
grown.
Problems

Improved wealth due
to the economic gains
of globalization has led
to improved access to
health care and clean
water which, in turn,
has increased life
expectancy.
◦ >85% of the world’s
population can expect to
live to at least 60.

Increased trade and
travel have facilitated the
spread of human, animal
and plant diseases, like
HIV/AIDS, SARs, and
Ebola, across borders.
Globalization has also
enabled the introduction
of cigarettes and tobacco
to developing countries,
with major adverse
health and financial costs
associated with that.
 Doubled in last 100 years
Benefits
Problems

Increased global
income and reduced
investment barriers
have led to an increase
in FDI which has
accelerated growth in
many countries.
Benefits

The increasing
interdependence of
countries in a
globalized world
makes them more
vulnerable to economic
problems like the
Asian financial crisis in
the late 1990s or the
Great Recession of
2007-08.
Problems

Video – “The New Rules of the
Game” from The Commanding
Heights

Improved environmental
awareness and
accountability has
contributed to positive
environmental outcomes
by encouraging the use
of more efficient, less
polluting technologies
and facilitating
economies’ imports of
renewal substitutes for
use in place of scarce
domestic natural
resources.
Benefits

The environment has
been harmed as
agricultural, forest,
mining and fishing
industries exploit
inadequate
environmental codes and
corrupt behavior in
developing countries.
◦ Reduced biodiversity
◦ Negative impact on
subsistence farmers
Problems

Increasing interdependence and
global institutions like WTO and
World Bank, that manage the
settlement of government-togovernment disputes, have
enabled international and
economic tensions to be
resolved on a “rules based”
approach, rather than which
country has the greatest
economic or political power. It
has bolstered peace as countries
are unlikely to enter conflict with
trading partners and poverty
reduction helps reduce the
breeding ground for terrorism.
Benefits

The major economic
powers have a major
influence in the
institutions of
globalization, like the
WTO, and this can
work against the
interests of the
developing world.
Problems

Improved technology
has dramatically
reduced costs and
prices changing the
way the world
communicates, learns,
does business and
treats illnesses.
Benefits

Trade liberalization and
technological
improvements change
the economy of a
country, destroying
traditional agricultural
communities and
allowing cheap imports
of manufactured goods.
◦ Can lead to unemployment
if people do not have the
new skills needed for the
new sectors of the
economy.
Problems

Modern
communications and
the global spread of
information have
contributed to the
toppling of
undemocratic regimes
and a growth in liberal
democracies around
the world.
Benefits

Modern communications
have spread an awareness
of the differences between
countries, and increased
the demand for migration
to richer countries.
◦ Richer countries have tighten
barriers against migrant
workers
◦ Xenophobic fears have
increased.
◦ Migrants are subject to
exploitation by smugglers.
Problems

The voluntary adoption
of workplace standards
for their internationalized
production facilities in
developing countries has
made an important
contribution to respect
for international labor
standards.
◦ MNCs pay 1.8 to 2 times
the average wage in NICs
and LDCs.
Benefits

Globalized competition can
force a “race to the bottom”
in wage rates and labor
standards. It can also foster
a “brain drain” of skilled
workers, where highly
educated and qualified
professionals migrate to
developed countries to
benefit from the higher
wages and greater career
and lifestyle prospects.
◦ Creates severe skilled labor
shortages in developing
countries.
Problems

International migration
has led to greater
recognition of diversity
and respect for cultural
identities which is
improving democracy
and access to human
rights.
Benefits

Indigenous and
national culture and
languages can be
eroded by the modern
globalized culture.
◦ The “McWorld” effect
◦ The “pushback” is called
the “Jihad” effect.
Problems


How does this review of
globalization’s benefits and
problems compare to the list of the
“Costs and Benefits of Globalization”
from the Briefing Paper? (pp 33-35)
Any significant differences with the
“Benefits and problems”?
Video – anti-globalization (10 min)


Nations, states, countries
“Non-state actors”
◦ MNCs (multi-national corporations)
◦ NGOs (non-governmental organizations)
 “citizens’ groups”
 Internal – operate in one country only
 International
◦ International organizations
 UN, IMF, WTO, World Courts, NATO, …

Three schools
◦ Hyperglobalists
◦ Skeptics
◦ Transformationalists
94
11/14/2005

U.S. dominance over
◦ Media
◦ Finance
◦ Ideas

U.S. also an importer
95
11/14/2005


Interactive process: globalization and
localization affect each other
Neologisms
◦
◦
◦
◦
“fragmegration”
“chaord”
“glocalization”
“Jihad vs. McWorld”
96
11/14/2005

Paradoxes
◦ Localizing in aims
 “Glocalization”
 “Fragmegration”
◦ Global in scope, organization
◦ Five scapes facilitate anti-globalization
97
11/14/2005

Political dissolution
◦ Yugoslavia
 Slovenia, Bosnia, Serbia, Macedonia
◦ Czechoslovakia
◦ Indonesia (East Timor)
◦ Moldova (Transnistria)
98
11/14/2005

Globalization (strongly affected by the rise of
new technologies like cell phones and the
Internet) can connect people though common
interests instead of through national or ethnic
identities.

Some argue that globalization will continue to
build global multiculturalism and
international cosmopolitanism, leading to
fewer tensions between people. They also
argue that new technologies will lead to a
globalized democracy by promoting civilsociety groups.
◦ People will be connected through common interests
instead of through national or ethnic identities.
 Think music: “globalized” hip hop or punk and the
“British invasion” before that


Critics of globalized democratization say that
globalization overwhelms people with
information and choices, leading to alienation
and a public backlash.
They argue that societal globalization is more
likely to lead to nationalism and
fundamentalism as people retreat into old
identities rather than create new ones.
◦ 9/11 as a reaction to globalization?!

Others say that globalization leads to
identities that lack mass appeal being thrown
away or driven out, replaced by what satisfies
the widest public and the lowest common
denominator.
◦ Local cultures, languages and traditions lost to
“McWorld”