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 value-

Market forces= a drive to find cheaper and more efficient ways of producing goods for sale and consumption.

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.

THE THEME

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. 4.4. The The principle of universalityprinciple of universality has been has been

seriouslyseriously eroded by globalization. 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 higher-although 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 featuresGlobalization

• 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 agriculture2. 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 men-double day, part-time job-86 hours (paid and unpaid) to men 74 hours/

21st 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…

21st 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 3rd 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.