The Inevitability of Globalization - Research Paper Example

The Inevitability of Globalization Globalization and interdependence among nation s have been taking place over the past few decades at a very fleeting rate and the continuation of these state of events is inevitable. I say that it is inevitable because globalization is tightly linked to the workings and to the needs of the current monopoly capitalist state of the world economy. In this era of overproduction, the need for the opening up of local economies is more than ever pressing to serve as additional market for goods and services. To do this, world superpowers and other world elites need to conduct measures to increase the connection among the worlds nations and societies in terms of their cultures, politics, ecologies and economies. Several of the factors contributing to this are the advances being made in the field of technology, transportation and communications. This paper explores the phenomena of globalization and the increasing interdependence among nation-states. This shall examine the concepts economic roots and mechanisms and discuss its inevitability. It shall also look at the contributions of communication and other technology to the increased global interconnectedness. What is Globalization? The concepts of globalization and interdependence are tightly connected. Many literature refer to globalization as the intensification of global interconnectedness and interdependence. Roland Robertson, the key figure in the formalization of the term globalization, stressed on the increasing level of interdependence between national systems in the aspects of trade, military affairs and culture (Waters, 2001). Waters (2001) defined globalization as "a social process in which the constraints of geography on economic, political, social and cultural arrangements recede, in which people become increasingly aware that they are receding and in which people act accordingly"(p. 5). The definition of globalization given by Inda and Rosaldo (2002) described globalization very well as the "intensification of global interconnectedness, suggesting a world full of movement and mixture, contact and linkages, and persistent cultural interaction and exchange" (p. 2). However, in economic terms, globalization refers to the integration of national or local economies to the global economy, facilitated by trade, migration, investments, flow of capital and technology. Manifestations of Globalization Indeed, the complex processes and mobilities that come with the phenomenon of globalization describe the world we live in today. Long gone are the days when the world and its peoples can be conceptualized as forming isolated or separate societies, each with its own and distinct culture. According to Inda and Rosaldo (2002), culture was assumed to be intrinsically discontinuous between places where particular sets of meanings are based. They added how culture was seen as "something rooted in soil" (p. 11), conscripted within a physical place. This implicit conceptualization of the worlds people, also described by Gupta and Ferguson (2001), served as the framework for many cultural studies for a long time. However, in this age, the world and its once isolated and distinct cultures are becoming more and more porous and interlinked. The notion of cultures tight linkage to a territory has been shattered with the new ways of living brought about by globalization. Time and Space Reordering Inda and Rosaldo (2002) told of how globalization resulted to the experiential shrinking of time and space due to their [time and space] fundamental reordering. This was elaborated by Harvey (1989) who described this phenomenon as "time-space compression." The said notion described the manner in which economic and social processes have gone a lot faster. This has brought about the experientially global shrinking in the sense that great distance and time stop from being significant limitations on the organization of human activities. But ultimately, he contends that this time-space compression has reorganized the forms of capital accumulation and the manner by which capital accumulation is justified to the subordinated. Meanwhile, Giddens introduced the notion of "time-space distanciation," referring to how the organization of time and space enables the connection of presence and absence (as cited in Inda & Rosaldo, 2002, p. 8). Giddens notion is based on the assertion that humans interact in two ways: 1.) the face-to-face interactions and 2.) the more remote encounters. For him, the face-to-face interaction predominates the social interactions of pre-modern societies. However, with globalization, the remote encounters are said to become more and more significant. Contributions of Communication and Transportation Technology This predominance of remote encounters was made possible by the advances in the field of transportation and communication. The technological innovations of the twentieth-century, especially in the area of transportation and communication have made it easier and faster for people from different locales to interact. For instance, one could get a glimpse of the opposite side of the world with a touch of the button. Chatting with loved ones abroad is easier than ever with web-based programs such as Skype or Yahoo Messenger. Marketing sites such as the Ebay and Amazon.com can make it easy to shop and buy items from other parts of the world. News networks can show timely news from other countries. Many services needed by the first world countries are also being outsourced to other countries. For example, countries such as the Philippines and India are serving as customer care representatives of prominent English-speaking nations such as the United States and the United Kingdom. More so, the media and other communication systems have changed the organization of production and consumption as well. It has a strong influence of defining new and "appropriate" wants and necessities. While the "dematerialization of space" in the field of communications was once within the realm of military affairs, it has been taken over by corporations and has been democratized for more public consumption. With the investments in transportation, the cost and time of moving commodities have already lessened and have become more efficient. For Giddens (1990), social life and relations are being lifted out by modernity from the confines and limits of locality. For him, globalization has enabled more and more people to live in situations wherein they can be in a relation with the locally distant and "absent others" (p. 18). With this, local practices are becoming integrally linked with global processes. Cultural Homogenization As earlier discussed, globalization implies the greater mobility of capital, commodities, peoples, images and ideas from one point in the world to another. As such mobility continues, the worldwide interconnections become dense and mass consumption becomes a prime mover in determining and influencing global financial interconnections. While, the earlier section dealt with the reorganization of time and space, Inda and Rosaldo (2002) clarified that globalization does not merely deterritorializes culture. Particularly reterritorialization of culture simultaneously occurs with deterritorialization. This means that cultural subjects and objects are transferred from fixed spatial points to new cultural settings. More so, this point suggests that while the links between culture and physical locations weaken, culture does not fully get lost in oblivion. Power geometries. However, the movement of cultural forms are not random and neutral. Power geometries exist in the context of globalization which indicates that culture predominantly flow in particular directions (Inda & Rosaldo, 2002). In actuality, cultural flow is more from the developed nations, also known as the first world countries, to the underdeveloped or third world countries. Among the countries, the United States is the dominant and leading source of cultural flow, even among other developed nations. The inequities at hand is part of a process of "cultural imposition and dominance --- of the imposition of this pattern of dominance of western culture over the remainder of the globe" (p. 13). This is significant as this process leads to the cultural homogenization of the world. Cultural homogenization refers to the progressive elimination of differences between the worlds once very distinct and separated cultures. Groups of people all over the world indeed experience globalization in different ways. For example, many still do not have access to basic needs such as water and food despite the flooding of imported goods in local economies. While many may find air travel affordable, many others do not have the resources to travel even to adjoining towns. Farmers and indigenous peoples for instance may not know how to use cellular phones and the internet as these are absent in their areas. The point being made is that despite the complexities of the present world, marginalization of people is still ever present in many parts of the world. Inda and Rosaldo (2002) refer to two visions regarding the process of cultural homogenization. The first one sees the cultural homogenization as being caused by the ability of transnational powers to distribute cultural goods around the world. Aside from a developed transport system, this is also achieved by the overwhelming aid of mass media. Day in and day out, non-Western countries are able to immerse in Western culture through the intensive advertisements from commercial media. The efficient transport system of Coca-cola for instance explains why it can sometimes be easier to find a bottle of the cola in remote rural areas than to find a piece of coconut for drinking. The second one has a wider scope and attributes the homogenization to the spread of the western culture itself and its implantation in local social-cultural realities of other societies. In this case, western culture encompasses the "Wests epistemological and ontological theories, its values, ethical systems, approaches to rationality, technical-scientific worldview, political culture and so on" (p. 14). Little by little, localized versions of the west are created leading to the disappearance or the lessening of cultural diversity. Standards of fashion for instance are heavily dictated by the four fashion capitals of the world --- these are Rome, New York, London and Paris. Or one may go to non-Western countries and find people eating a McDonalds cheeseburger. Or more seriously, when US President George Bush II announced to the world that it is waging a war on terrorism, other countries pledged the same. Driving Forces of Globalization In the previous sections, globalization was defined and its manifestations leading to increased interdependence between societies and cultures were outlined. The significant role played by technology and communications in the reordering of time and bringing about cultural homogenization was portrayed. On the other hand, the question of the inevitability of globalization and increased interdependence between nation-states remains unanswered. This section will thus explain its inevitability in line with discussing how globalization is tightly linked to the capitalist system. While much literature on globalization has focused on its value in putting people together, the material root of globalization lies in the requirements of the current economic system, that is capitalism. Particularly here, we mean to focus on the workings of monopoly capitalism. As Berberoglu (2005) emphasized, "globalization of capital and capitalist relations of production fostered by the transnational corporations of the advanced capitalist countries are the primary culprits of the globalization process..." (p. 1). In world politics and economy, United States has increasingly been the dominant superpower since the second World War, having left behind powerful European countries. This rise to power and its current dominance is rooted in its economic might brought about by the the United States transnational corporations, and communications knowhow (Inda & Rosaldo, 2002). Amin (2000) pointed out that in order for countries to keep its dominant position in the hierarchical order of the world, it needs to keep its competitiveness in economic, political and social factors. Particularly, they [countries] should achieve monopoly in five realms: 1.) technology monopoly; 2.) financial control of worldwide financial markets; 3.)monopolistic access to the planets natural resources; 4.) media and communication monopolies; and 5.) monopolies over weapons of mass destruction. The power of the United States did not arise instantly. In fact, according to Sherman (2005), small firms and businesses dominated their economy as late as 1860. The fundamental cause of their emergence to power was their ability to turn to mass production. The advantage of mass production is that it subscribes to the economy of scale principle. Cheaper good are produced with the aid of more specialized machineries, workers and assembly lines. The production system becomes more efficient. Large firms are able to gain monopoly over small firms due to their massive production which enable them to sell goods at lower, and thus more competitive prices. Small-scale production usually translates to the high selling prices of produced commodities. Mass production is usually associated with Fordism, which according to Bonanno and Constance (2008), does not simply refer to a system of organization of production. Fordism, according to them, "refers to a highly rationalized form of capitalism characterized by mass production, mass consumption, and vertical integration, but also to a new culture and, equally important, new political arrangements" (p. 4). However, this economic model also encountered the crisis of declining profits and opposition from the lower classes of society. The Dilemma of Mass Production The problem of mass production however is that it requires greater amount of capital to produce goods. In follows then that more goods need to be sold after production in order for the corporation to regain the investments needed to start with the next round of production. Thus, aside from championing mass production, capitalist countries need to find ways to facilitate and encourage mass consumption. The cost of production should desirably be lessened to ensure maximum profitability of an enterprise. Bonnano and Constance (2008) narrated how the global North two decades after the second World War had to shift to strategies of much larger state interventions to balance mass production with mass consumption and therefore ensure steady economic growth. "High Fordism" was the term used to define the mature and hyperrationalized type of Fordism during this period. The success and efficiency of the Fordist system took place from the mid-1950s to the late 1960s. After that, it went to a decline due to the contradictions and resistance from various protest movements worldwide against the United States-led modernization projects. Other economic downturns such as the 1973 economic recession, oil crisis and stagflation worsened the scenario of US-centered multinational capitalism. Corporate firms had to shift their strategies in order to put an end to the economys turn for the worse. The Globalization Project The emergent post-Fordist situation have been tightly associated with the project of globalization. The globalization project was intended to bring about increased profits by way of increasing global capitalist flexibility. Such flexibility points to mobile capital and "freedom" to colonize and commodify practically every sphere of living and being. Corporations must be able to attain a high degree of freedom as a "result of the implementation of free market policies, reduced forms of regulation, favorable economic incentives, and an overall cultural climate that welcomes corporate mobility and autonomy" (Bonnano & Constance, 2008, p. 7). Therefore, a switch to neoliberalism must take place. Neoliberalization. Globalization followed the political line of neoliberalism. Neoliberalism professed that political and technological obstacles must be tackled to create a free market. Local policies of nation-states were engineered through various agreements and with the help of local elites to be wide-open for the corporate interests. Free trade policies often work with states to facilitate capital mobility and eradicate local, regional, and national regulatory and protectionist policies and instruments and to reduce the bargaining power of the local labor force. Local policies of nation-states were engineered through various agreements and with the help of local elites to be wide-open for the corporate interests. With such instruments for instance, multinational and transnational corporations were able to deploy their various production units to other places in the world. Decentralized production often requires highly centralized control of information and finance. Also along with neoliberalism came the privatization of many publicly owned corporations in third world countries and the deregulation of many industries (e.g. oil industry and prices). Neoliberalization of economies was certainly aided by new technological developments such as in the field of computers, internet and communication. Globalization, as a system, allowed transnational corporations to take advantage of qualitatively new instruments which increase flexibility and eliminate unhelpful rigidities. Local communities who act as ready markets and sources of labor power are treated as valuable resources that can be utilized by corporations or not. The Inevitability of Globalization and Interdependence As we have seen, the capitalist set up needs to continue running. And to keep on running, it must ensure the presence of a reliable and sufficient market for its mass-produced commodities while lessening the cost of its production by finding cheap raw materials and labor. Here is where globalization plays a significant role. As Bonnano and Constance (2008) emphasized, globalization is a project to aimed at reviving capital accumulation and oppose the many of the successes of democratic social movements around the world which seek to limit the ability of corporations to maintain profitable business operations. Harvey (1996) described two "impulsions" of capitalism. I think that it is important to note the use of the world, "impulse" here in relation to how capitalism needs to function a certain way to ensure its existence. In his book, he notes, "capitalism is under the impulsion to accelerate turnover time, to speed up the circulation of capital and, consequently, to revolutionize the time horizons of development. But it can do so only through long-term investments (in, for example, the built environment as well as in elaborate and stable infrastructures for production, consumption, exchange, communication and the like)" (p. 411). The major objective here is that crisis is avoided at all cost. As far as the overall economy is concerned, over-accumulated capital must be used and run in the hands of people to ensure purchasing power. Secondly, another impulsion of capitalism is the elimination of spatial barriers through time. Accumulation of capital has always been intimately linked to the geographical and the spatial. Spatial reorganization, geographical expansion the continuous uneven development of nations present capitalism with many opportunities to continue existing. Thus, globalization and greater interdependence are inevitable. References Amin, S. (2000). Capitalism in the Age of Globalization: The Management of Contemporary Society. Cape Town: Zed Books Ltd. Berberoglu, B. (2005). Introduction. In B. Berberoglu (Ed.), Globalization and Change: The Transformation of Global Capitalism. Lanthanum: Lexington Books. Bonanno, A. & Constance, D. H. (2008). Stories of Globalization: Transnational Corporations, Resistance, and the State. University Park: The Pennsylvania State University Press. David, Harvey (1989). The Condition of Post modernity. Oxford: Blackwell Publishers. Giddens, A. (1990). The Consequences of Modernity. Stanford: Stanford University Press. Gupta, A. & Ferguson, J. (2001). Culture, Power, Place: Ethnography at the End of an Era. In A. Gupta & J. Ferguson (Eds.), Culture, Power, Place: Explorations in Critical Anthropology (pp. 1-30). USA: Duke University Press. Inda, J. X. & Rosaldo, R. (2002). Introduction: A World in Motion. In J. I. Inda & R. Rosaldo (Eds.), The Anthropology of Globalization (pp. 1-34). Madlen, MA: Blackwell Publishers. Sherman, H. J. (2005). The Rise of Global Capitalism: The Concentration and Centralization of Capital on a World Scale. In B. Berberoglu (Ed.), Globalization and Change: The Transformation of Global Capitalism (pp. 7-22). Lanham: Lexington Books. Waters, M. (2001). Globalization (2nd ed.). London: Routledge. Read More