Globalization

Globalization refers to the integration of separate nations, regions, or even individuals into a wider global system. It is characterized by increasing the linkages and connections between peoples and countries and by the growing knowledge of these interactions. This integration process can affect the economy, polity, society, or culture; that is, the definition of the process is very general and can refer to economic, political, social, or cultural integration. The question of who is being integrated is also left open, although in political science it is mostly the countries themselves that are at issue. The way in which such integration operates is also variable. The most common form of globalization in the literature involves the economic integration of national economies into a wider global one, usually through international trade, capital flows, labor movements, and global production networks. For some authors, this means the integration of countries into a global capitalist system—that is, one based on private property, limited government intervention, and the use of markets to allocate economic value. Some term this neoliberal globalization. Capitalism, international capitalist groups, and neo-liberal practices all spread throughout the world as globalization proceeds. Whether this is good or bad for countries and individuals greatly depends on a scholar's perspective. Some associate globalization with the homogenization of distinct [Page 973]groups; one example is the loss of many local languages and the increasing diffusion of the use of English. Others associate it with the domination of American (or Anglo-American) values, beliefs, and practices. The global turn to liberal democracy is often cited as an example. Globalization is not complete at this point. Countries have different levels of integration into the world system. The extent to which a truly global system—whether economic, political, or social—exists is a point of debate. The causes and consequences of globalization are also debated.

Globalization has both secular and cyclical aspects. For some, the roots of globalization are in technological changes, such as the lowering of the costs of communications and transportation, which make the movement of people, ideas, goods, services, and capital faster and less costly. These changes are irreversible and often increase over time. While countries and their governments may try to put up barriers against such changes, it is very difficult for them to successfully fend off the pressures of globalization. In this view, globalization has been increasing steadily over time as technological change makes the world ever smaller. Sometimes technological change is treated as exogenous—that is, it has sources other than countries' policies or global integration. Other times, globalization itself, especially via trade of capital flows, is seen as having an impact on technology; it usually is conceived of as helping induce innovation and speeding its transfer around the world. Globalization and technological change may then go hand in hand, each encouraging the other.

On the other hand, globalization has been viewed as cyclical; high levels of global integration have been associated with two distinct periods in recent history. In the mid- to late 19th century, a global economy emerged as the European powers, especially the British, forged an open economy using both military power and economic policy. The development of colonies around the globe and the extension of European trade, capital, values, and political power undergirded this period of globalization. In the late 19th century, the world economy attained levels of openness that had never been seen before. In some areas such as the movement of labor, such levels of integration have never been achieved since. This open economy collapsed in the early 20th century with the two World Wars and the Great Depression. From 1914 to 1945, globalization was in retreat. Protectionism became the dominant trade policy for many countries; trade and currency blocs formed regionally, often around one powerful country, and military conflict was prevalent. Nationalism, isolationism, and regionalism marked this 30-year period. Globalization thus declined during this period.

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