GlobalizatiGlobalizationon

GlobalizatiGlobalizationon

CMN 2168CMN 2168CMN 2168CMN 2168

DefinitionsDefinitions

Globalization has different meanings and is Globalization has different meanings and is perceived in different ways: ‘for some, perceived in different ways: ‘for some, globalization means freedom, while others see it globalization means freedom, while others see it as prison. For some it means prosperity, while as prison. For some it means prosperity, while for others it guarantees the poverty of the for others it guarantees the poverty of the developing world’ (2).developing world’ (2).

DefinitionsDefinitions

Globalization changes meanings Globalization changes meanings according to the sphere of human activity according to the sphere of human activity one refers to.one refers to.

- EconomyEconomy- CultureCulture- (Geo)-politics(Geo)-politics- EcologyEcology- Terrorism etc.Terrorism etc.

EconomyEconomy

Globalization is understood as the Globalization is understood as the economic interpendence of different economic interpendence of different nations through international transactions nations through international transactions in goods and services, fast and in goods and services, fast and widespread diffusion of (new) technologies widespread diffusion of (new) technologies etc.etc.

EconomyEconomy

Globalization is based on capitalist economy. To Globalization is based on capitalist economy. To a certain extent, capitalism has always a certain extent, capitalism has always functioned as a world economy. functioned as a world economy.

It is based on the It is based on the Washington consensus.Washington consensus.

What has changed?What has changed?

Some argue that there has been a rupture in Some argue that there has been a rupture in contemporary capitalist productions and global contemporary capitalist productions and global relations of power.relations of power.

Neo-liberalismNeo-liberalism

Neo-liberal doctrine is decided by the government of the Neo-liberal doctrine is decided by the government of the USA (backed by the UK) and the various financial USA (backed by the UK) and the various financial organisms that the US control in great part (Noam organisms that the US control in great part (Noam Chomsky, Chomsky, Profit over PeopleProfit over People, 1998. p.19). The , 1998. p.19). The participants in neo-liberalism are mostly large participants in neo-liberalism are mostly large corporations.corporations.

The aims of the neo-liberal doctrine is to remove The aims of the neo-liberal doctrine is to remove obstacles to its own development: state intervention, obstacles to its own development: state intervention, protectionism, workers rights, public services, regulation, protectionism, workers rights, public services, regulation, trade unions etc. trade unions etc.

(Florian Grandena, PhD dissertation, 2005)(Florian Grandena, PhD dissertation, 2005)

Neo-liberalismNeo-liberalism

‘‘Liberal’ has different meanings.Liberal’ has different meanings.

1.1. Socially progressive, open-mindedSocially progressive, open-minded;;2.2. Political doctrine that aims at Political doctrine that aims at limiting the limiting the

State’s powers regarding individual freedomState’s powers regarding individual freedom;;3.3. Economic doctrine of Economic doctrine of free enterprisefree enterprise according according

to which the State must not interfere in the to which the State must not interfere in the market and competition (free trade).market and competition (free trade).

Neo-liberalism relies on the ideas of Adam Neo-liberalism relies on the ideas of Adam Smith (who was one of the intellectuals Smith (who was one of the intellectuals who developed the idea of free trade and who developed the idea of free trade and capitalism). capitalism).

PrivatisationsPrivatisations Liberalisation of trade and financeLiberalisation of trade and finance Supremacy of marketsSupremacy of markets

All activities and services need to be All activities and services need to be rationalizedrationalized..

Rationalization: the re-organization or re-Rationalization: the re-organization or re-structuring of a company in order to structuring of a company in order to improve its functioning. It corresponds to improve its functioning. It corresponds to the ‘mathematization’ of work and aims at the ‘mathematization’ of work and aims at increasing efficiency and flexibility.increasing efficiency and flexibility.

Neo-liberalism is also known as the Neo-liberalism is also known as the Washington consensusWashington consensus, and is defined by , and is defined by the US government (and usually back by the US government (and usually back by the British one). the British one).

The actors in the neo-liberal order are The actors in the neo-liberal order are usually huge corporations.usually huge corporations.

As neo-liberalism relies on free trade, it As neo-liberalism relies on free trade, it aims at removing what it considers aims at removing what it considers obstacles to its own development:obstacles to its own development:

- State protectionismState protectionism- Public servicesPublic services- Trade unions and workers’ rights.Trade unions and workers’ rights.

Neo-liberalism also represents a specific type of Neo-liberalism also represents a specific type of management and decision-making management and decision-making where where productivity, efficiency and immediate proproductivity, efficiency and immediate profifit are t are the main criteriathe main criteria..

it is the it is the fifinancial logicnancial logic that governs decision that governs decision making: it is the permanent search for new making: it is the permanent search for new means to increase promeans to increase profifit and share value that t and share value that now acts as the main managerial drive in large now acts as the main managerial drive in large groups and conglomerates.groups and conglomerates.

Performance and competitivity are central Performance and competitivity are central to neo-liberalism.to neo-liberalism.

These are present in other spheres of These are present in other spheres of human activities, such as the cultural and human activities, such as the cultural and intellectual spheres. intellectual spheres.

In other words, neo-liberalism uses In other words, neo-liberalism uses concepts usually identifies with trade to concepts usually identifies with trade to everything else.everything else.

Neo-liberalism leads to an important Neo-liberalism leads to an important cultural changecultural change (if not a (if not a change of change of civilizationcivilization).).

Neo-liberalism is partly characterised by a Neo-liberalism is partly characterised by a high concentration of power and money high concentration of power and money within the hands of a small minority, which within the hands of a small minority, which represents more than 95% of international represents more than 95% of international financial transactions.financial transactions.

(General Electrics, CNN etc.)(General Electrics, CNN etc.)

Neo-liberalism partly relies on trade regulations Neo-liberalism partly relies on trade regulations defined by and originating from wealthy defined by and originating from wealthy countries.countries.

However, there is a difference between the However, there is a difference between the theory of free trade / neo-liberalism and its theory of free trade / neo-liberalism and its practices. practices.

See example of Moroccan tomato growers p.23-See example of Moroccan tomato growers p.23-4.4.

Neo-liberalism’s ’central logic is that Neo-liberalism’s ’central logic is that individuals, ideas and the movements of individuals, ideas and the movements of the market are inextricably bound together’ the market are inextricably bound together’ (25). It aims at creating a global free (25). It aims at creating a global free market. market.

‘‘What we see in studying the history of What we see in studying the history of neoliberalism is the use of reason and a neoliberalism is the use of reason and a utopian discourse to justify the setting free utopian discourse to justify the setting free of the economic field from social, national of the economic field from social, national and humanitarian obligations’ (27-8).and humanitarian obligations’ (27-8).

PoliticsPolitics

Some theorists argue that the new political Some theorists argue that the new political order of globalization should be seen in order of globalization should be seen in line with our historical understanding of line with our historical understanding of EmpireEmpire as a universal order that accepts as a universal order that accepts no boundaries or limits no boundaries or limits

(see (see EmpireEmpire by Michael Hardt and Antonio by Michael Hardt and Antonio Negri. Harvard, 2000). Negri. Harvard, 2000).

The politics of namingThe politics of naming

There are different positions that seek to explain There are different positions that seek to explain and describe globalization. and describe globalization.

Globalists Globalists oror ‘liberals’‘liberals’ believe that globalization believe that globalization is an important and overall positive development is an important and overall positive development (‘the effect of real structural changes in the past (‘the effect of real structural changes in the past few centuries’). Liberals usually present few centuries’). Liberals usually present globalization as an order that is both globalization as an order that is both naturalnatural and and unavoidableunavoidable. .

ScepticsSceptics think that globalization is an think that globalization is an extension of ‘trends that developed in the extension of ‘trends that developed in the period of European colonial expansion, period of European colonial expansion, peaked during the period 1870-1914, and peaked during the period 1870-1914, and were interrupted by the two great wars and were interrupted by the two great wars and the ‘cold war’ of the 20th century’ (7). the ‘cold war’ of the 20th century’ (7). Globalization is more a matter of discourse Globalization is more a matter of discourse than reality.than reality.

Some theorists add another category: the Some theorists add another category: the ‘moderately optimistic’.‘moderately optimistic’.

For this group, the market economy is not as For this group, the market economy is not as important as for the sceptics and the liberals. important as for the sceptics and the liberals.

Also, the moderately optimistic agree ‘that there Also, the moderately optimistic agree ‘that there are globalizing tendencies which can be are globalizing tendencies which can be identified and measured, but that they are not identified and measured, but that they are not all-encompassing as the literature might imply: all-encompassing as the literature might imply: and nor are they operating without resistance, and nor are they operating without resistance, and without exceptions’ (8). and without exceptions’ (8).

Defence of globalizationDefence of globalizationhttp://www.freeworldacademy.com/globalleader/globalisation.htm#1http://www.freeworldacademy.com/globalleader/globalisation.htm#1

Globalization is the international system Globalization is the international system that replaced the Cold War system. It that replaced the Cold War system. It relies on two principles: relies on two principles:

-Firstly, the idea that -Firstly, the idea that freedom, human freedom, human rights and democracyrights and democracy are the most are the most efficient means of sustaining growth and efficient means of sustaining growth and development.development.

-Secondly, globalization implies a -Secondly, globalization implies a panel of policies based onpanel of policies based on thethe Washington consensusWashington consensus: fiscal : fiscal discipline, a redirection of public discipline, a redirection of public expenditure priorities toward fields expenditure priorities toward fields offering both high economic returns offering both high economic returns and the potential to improve income and the potential to improve income distribution...distribution...

In short, globalization is the In short, globalization is the integration of democracy, legal integration of democracy, legal reforms, capital, technology, and reforms, capital, technology, and information across national borders, information across national borders, in a way that is creating a single in a way that is creating a single global market and a global village.global market and a global village.

‘‘Globalization can be understood as a set Globalization can be understood as a set of technologies, institutions and networks of technologies, institutions and networks operating within, and at the same time operating within, and at the same time transforming, contemporary social, transforming, contemporary social, cultural, political and economic spheres of cultural, political and economic spheres of activity’ (21).activity’ (21).

Globalization is often referred to as Globalization is often referred to as ‘neocolonialism’ or ‘neoimperialism’.‘neocolonialism’ or ‘neoimperialism’.

Globalization ‘should be understood as a Globalization ‘should be understood as a kind of grid of power, one which kind of grid of power, one which incorporates globalists and sceptics, incorporates globalists and sceptics, liberals and Marxists, libertarians and liberals and Marxists, libertarians and fundamentalists, First and Third World fundamentalists, First and Third World nations and their economies, and so on, nations and their economies, and so on, all within a dynamic and often agonistic all within a dynamic and often agonistic relationship’ (p.19-20).relationship’ (p.19-20).

‘‘Globalization [can] be understood as a set Globalization [can] be understood as a set of technologies, institutions and networks of technologies, institutions and networks operating within, and at the same time operating within, and at the same time transforming, contemporary social, transforming, contemporary social, cultural, political and economic sphere of cultural, political and economic sphere of activity… it is the evaluation and activity… it is the evaluation and interpretation – the naming – of those interpretation – the naming – of those technologies, institutions and networks as technologies, institutions and networks as socially, culturally, economically and socially, culturally, economically and historically identifiable phenomena that in historically identifiable phenomena that in a sense bring globalization into being, or a sense bring globalization into being, or make it real to most people’ (p.21).make it real to most people’ (p.21).

EmpireEmpire

Hardt and Negri argue that ‘the various Hardt and Negri argue that ‘the various practices, institutions and discourses practices, institutions and discourses associated with globalization can be associated with globalization can be understood as a machine-like grid of understood as a machine-like grid of power which incorporates and transforms power which incorporates and transforms politics, economics and the social (and its politics, economics and the social (and its many aspects such as culture, civil society many aspects such as culture, civil society and subjectivity)’ (31-2)and subjectivity)’ (31-2)

Empire is different from other forms of Empire is different from other forms of state-driven imperialism.state-driven imperialism.

In Empire, there is no traditional / territorial In Empire, there is no traditional / territorial centre of power.centre of power.

Empire is a move beyond state Empire is a move beyond state sovereignty.sovereignty.

‘…‘…the inability of nation-states to control or the inability of nation-states to control or manage their economic, political, social manage their economic, political, social and cultural affairs is a symptom of the and cultural affairs is a symptom of the more or less terminal decline of state more or less terminal decline of state sovereignty, and the ascent of Empire’ sovereignty, and the ascent of Empire’ (32).(32).

Globalization = Empire.Globalization = Empire.

Empire has four main characteristics:Empire has four main characteristics:

1.1. Empire is Empire is a system and a hierarchya system and a hierarchy. It has its . It has its own logic.own logic.

‘‘Sovereignty has taken a new form, composed Sovereignty has taken a new form, composed of a series of national and supranational of a series of national and supranational organisms united under a single logic of rule’ organisms united under a single logic of rule’ (Hardt and Negri).(Hardt and Negri).

‘‘The declining sovereignty of nation-states and The declining sovereignty of nation-states and their increasing inability to regulate economic their increasing inability to regulate economic and cultural exchanges is one of the primary and cultural exchanges is one of the primary symptoms of Empire’ (Hardt and Negri). symptoms of Empire’ (Hardt and Negri).

2. 2. ‘‘Empire processes cultures, crises, resources Empire processes cultures, crises, resources and power formations in order to reproduce and power formations in order to reproduce and extend itselfand extend itself’ (33).’ (33).

‘‘The rule of Empire operates on all-registers of The rule of Empire operates on all-registers of the social order extending down to the depths the social order extending down to the depths of the social world. Empire not only manages a of the social world. Empire not only manages a territory and a population but also creates the territory and a population but also creates the very world it inhabits’ (Hardt and Negri). very world it inhabits’ (Hardt and Negri).

3. Empire is 3. Empire is decentred and boundlessdecentred and boundless. .

Power is now diffused throughout different Power is now diffused throughout different apparatuses, organizations, agents…apparatuses, organizations, agents…

4. ‘Empire is constituted by, and constitutive 4. ‘Empire is constituted by, and constitutive of, the of, the imbrication of the economic, imbrication of the economic, political and cultural aspects of political and cultural aspects of contemporary lifecontemporary life’ (34). ’ (34).

‘‘Empire presents its rule not as a transitory Empire presents its rule not as a transitory moment in the movement of history, but as moment in the movement of history, but as a regime with no temporal boundaries and a regime with no temporal boundaries and in this sense outside of history or at the in this sense outside of history or at the end of history’ (Hardt and Negri). end of history’ (Hardt and Negri).

Globalizing technologiesGlobalizing technologies

‘‘Digitalization is probably the most Digitalization is probably the most important technological advance in the important technological advance in the area of communications. The term refers area of communications. The term refers to the process whereby information is to the process whereby information is produced as a universal binary code, and produced as a universal binary code, and is thus able to circulate more freely and at is thus able to circulate more freely and at greater speed across communication greater speed across communication technologies, and not just within them’ technologies, and not just within them’ (59).(59).

Digitalization brings together different Digitalization brings together different media (telephone, television, computers) media (telephone, television, computers) and texts (pictures, sounds, words).and texts (pictures, sounds, words).

Greater flexibility.Greater flexibility. Greater speed.Greater speed.

The relationship between the place of The relationship between the place of technology in our lives and its supposedly technology in our lives and its supposedly progressive dimension needs to be progressive dimension needs to be discussed in terms of the actual effects of discussed in terms of the actual effects of these technologies and these technologies and global global convergenceconvergence..

Global convergence: ‘the tendency facilitated by Global convergence: ‘the tendency facilitated by communication technologies, to bring together different communication technologies, to bring together different communities, institutions, media’ (217).communities, institutions, media’ (217).

Castells argues that corporations both Castells argues that corporations both participate into and are dependent on participate into and are dependent on information networks.information networks.

As virtually all corporations are connected As virtually all corporations are connected to and reliant on information networks, to and reliant on information networks, they cannot place themselves or think they cannot place themselves or think outside these networks (partly because of outside these networks (partly because of the general interdependence on such the general interdependence on such communication systems).communication systems).

The exclusion of some kind of information The exclusion of some kind of information in analysis is part of a much wider in analysis is part of a much wider tendency which Bourdieu refers to as the tendency which Bourdieu refers to as the ‘editing out of the human’.‘editing out of the human’.

‘‘Mathematization’ of human behaviours Mathematization’ of human behaviours (‘scientific’ authority associated with (‘scientific’ authority associated with statistically and mathematically based statistically and mathematically based information. 66-7).information. 66-7).

According to Virilio, information networks According to Virilio, information networks contribute to the development of contribute to the development of endocolonialism endocolonialism (as opposed to (as opposed to exocolonialism).exocolonialism).

Endocolonialism: Paul Virilio’s term for the new form of colonialism Endocolonialism: Paul Virilio’s term for the new form of colonialism where social and economic inequalities are not exported ‘to the where social and economic inequalities are not exported ‘to the colonies’ but are accentuated within colonialist states such as the colonies’ but are accentuated within colonialist states such as the United States and the United Kingdom (216).United States and the United Kingdom (216).

There is now a network of flows across the There is now a network of flows across the globe. The old imperial centre / periphery globe. The old imperial centre / periphery has disappeared into a confusing system has disappeared into a confusing system of power relations and connections. What of power relations and connections. What appear to be free and interactive trade appear to be free and interactive trade relations are in fact an utterly constricting relations are in fact an utterly constricting set of obligations, tendencies and set of obligations, tendencies and imperatives (70).imperatives (70).

Global capitalismGlobal capitalism

Globalization can be understood as ‘the Globalization can be understood as ‘the relationship between the development of relationship between the development of new communication technologies, on the new communication technologies, on the one hand, and the contexts and politics of one hand, and the contexts and politics of the use of that technology, on the otherthe use of that technology, on the other’ ’ (73).(73).

We can also understand globalization ‘as an We can also understand globalization ‘as an aspect of its effects on and in relation to the aspect of its effects on and in relation to the institutions, practices and strategies of institutions, practices and strategies of capitalismcapitalism’ ’ (73). (73).

Capitalism is ‘currently the dominant system for Capitalism is ‘currently the dominant system for the organization of economies; characterized by the organization of economies; characterized by the the private ownership of the means of production, private ownership of the means of production, and reliance on the market to direct economic and reliance on the market to direct economic activity and distribute economic goods and activity and distribute economic goods and rewardsrewards. Its founding principle is . Its founding principle is the pursuit of self-the pursuit of self-interest through competitioninterest through competition’. ’.

Logic of capitalismLogic of capitalism

Capitalism operates through the creation of Capitalism operates through the creation of surplussurplus value, but that surplus value must value, but that surplus value must always find a market.always find a market.

Surplus value is created when the value of Surplus value is created when the value of production exceeds labour and other production exceeds labour and other associated costs.associated costs.

Surplus value is only realized, however, Surplus value is only realized, however, through the process of consumption.through the process of consumption.

Surplus value is then (at least parlty) Surplus value is then (at least parlty) returned to the capitalist process as returned to the capitalist process as investment, which in turn creates more investment, which in turn creates more surplus value and more goods for surplus value and more goods for consumption.consumption.

Capitalism’s basic principle is the ‘Capitalism’s basic principle is the ‘pursuit pursuit of self-interestof self-interest, which is achieved , which is achieved economically through competition between economically through competition between producers and producers, consumers and producers and producers, consumers and consumers. This competition, under consumers. This competition, under capitalist logic, creates a state in which capitalist logic, creates a state in which the the right amount of goods and services at the right amount of goods and services at the right price are made available to meet right price are made available to meet consumer demandsconsumer demands’ (79). ’ (79).

Under capitalism, the means of production Under capitalism, the means of production are are privately ownedprivately owned. The levels of . The levels of exchange and the production of goods and exchange and the production of goods and services are reliant on the market and the services are reliant on the market and the relation between supply and demand relation between supply and demand rather than through intervention (79-80).rather than through intervention (79-80).