Globalization Overview

Overview

This lecture covers the core concepts and definitions of globalization, including its economic and political dimensions, major theories, key historical developments, and the roles of important institutions.

Definition and Perspectives of Globalization

• Globalization is the process of increasing interconnectedness in economic, cultural, social, and political spheres worldwide.
• It involves integrating nations and communities, allowing free transfer of capital, goods, and services.
• Manfred Steger defines globalization as multidimensional social processes creating and intensifying worldwide interdependence and connections.
• Anthony Giddens describes globalization as the intensification of worldwide social relations that connect distant localities.
• Thomas Friedman views globalization as growing economic interdependencies among nations that can help prevent conflict.
• Roland Robertson and Kathleen White highlight increasing global connectivity and consciousness as core aspects.
• Five origins: Hardwired (human drive), Cycles (repetitive), Epoch (waves), Events (key historical), Recent Changes (20th-century events).

Theories and Opposing Views on Globalization

• Marxist Theory claims globalization benefits rich nations, increasing global inequality.
• Dependency Theory argues developed nations exploit developing ones through control over resources and economic structures.
• Globalization can lead to market openness, increased competition, unstable prices, and currency devaluation in weaker economies.

Economic Globalization

• The global economy involves states, international organizations, capitalists, labor, financial institutions, and marginalized groups.
• Economic globalization is driven by international trade, comparative advantage, and free trade.
• The Silk Road and Galleon Trade marked early international economic connections but were limited geographically.
• The Gold Standard (1867) and subsequent abandonment during crises shifted global economic practices.
• The Great Depression was partly caused by restrictive monetary policies like the Gold Standard.
• After WWII, the Bretton Woods System created the IMF and World Bank to promote economic stability and interdependence.
• Neoliberalism replaced Keynesianism as the dominant economic policy, promoting minimal government intervention and global trade liberalization.

Political Globalization

• Political globalization is observed through increased internationalization and interactions among independent states.
• Key terms: Nation (culture-based), State (government-based), Internationalization (state interactions), International Organizations (e.g., UN).
• Four traits: sovereignty, diplomacy, international organizations, independent organizational activities.
• The Treaty of Westphalia (1648) established the modern interstate system.
• Concert of Europe and Metternich System aimed to preserve monarchical privileges post-Napoleonic Wars.
• Liberal Internationalism (Kant, Bentham, Mazzini, Wilson) advocates cooperation, international law, and the principle of self-determination.
• Socialist theories (Marx, Lenin, Stalin) emphasize economic equality over nationalism and promote international socialist movements.
• Post-WWI, the League of Nations and United Nations embody principles of international cooperation.

Key Terms & Definitions

• Globalization — Integration of economic, cultural, social, and political processes worldwide.
• Comparative Advantage — Economic principle where countries benefit by specializing in the production of goods they produce most efficiently.
• Neo-liberalism — Economic policy favoring reduced government spending and increased free-market activity.
• Bretton Woods System — Postwar system creating the IMF and World Bank to ensure global economic stability.
• Nation — Group bound by culture, traditions, language, or ethnicity.
• State — Group bound by governance under one government.
• International Organizations — Groups formed by nation-states to facilitate international cooperation (e.g., UN).

Action Items / Next Steps

• Review examples of economic and political globalization in recent events.
• Study the functions and impact of the IMF and World Bank.
• Read about the Treaty of Westphalia and its impact on modern states.
• Prepare for a discussion on the pros and cons of globalization.