Emergence of Globalization

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Emergence of Globalization

• Historical Perspectives

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! Globalization !

• Question What is globalization?
• Answer Princess Diana's death.
• Question How come?
• Answer An English princess with an Egyptian
  boyfriend crashes in a French tunnel, driving a
  German car with a Dutch engine, driven by a
  Belgian who was high on Scottish whiskey,
  followed closely by Italian Paparazzi, on
  Japanese motorcycles, treated by an American
  doctor, using Brazilian medicines! And this is
  sent to you by an Indian, using Bill Gates'
  technology, which he stole from the Japanese. And
  you are probably reading this on one of the IBM
  clones that use Philippine-made chips, and Korean
  made monitors, assembled by Bangladeshi workers
  in a Singapore plant, transported by lorries
  driven by Malaysians, hijacked by Indonesians and
  finally sold to you by a Chinese!
• That's Globalization!

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Outcomes of industrialization

• Social consequences
• Population increases
• Demographic shifts/migrations
• Changed state of food procurement
• Differentiation based on class becomes more
  pronounced
• Altered economic base
• One nation affects another
• Economic interconnectivity

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Process begins in 17th century

• Processual approach
• Colonial empires transform the nature of trade
• Evolution of core/periphery model

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• Core the parent colonial nation. Also know as
  the metropole.
• Periphery the colonial/industrial outpost or the
  subject state.
• (Classic model) Periphery produces for the
  benefit of the core.
• (credit Emmanuel Wallerstein for Core-Periphery
  model. Based on Karl Marx) (credit Eric Wolf for
  analysis of global capitalism origins)

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Modern issues

• Former peripheries of colonial states are
  beginning to assert themselves in the
  post-colonial world.
• Many of todays economic and social problems
  globally have roots in global colonialism of the
  17th-20th centuries.
• Some imperial powers are no longer empires.

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Economic Patterns Caribbean Context

• Emergence of Global Links

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• Sugar colonies produced wealth for the core
• Usual labor arrangement was slavery
• Competition between States (Britain, France, etc)
  produced economic rivalries for resources and
  markets
• Expansion into new zones supported by strong
  military presence.

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Links (from Europe)

• Portugal to India 1492
• Spain to China exchange begins in 1565
• England and France link to Caribbean in 1625
• Increase links to Far East by 1650
• Dutch enter the scene mid century as well
• Caribbean enterprises connect African Kingdoms to
  slaving, European factories to Asia.

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• India to China trade
• Trade between Asia and Middle East
• Indonesia India trade
• Some networks are very old. Europeans simply took
  over existing networks.

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Atlantic World Economy

• Spanish and Portuguese control Asia trade and
  new World economies until 1650
• So-called triangular trade was in fact far more
  complex.
• Dutch East Indies company (VOC), Portuguese India
  trade monopoly, British East Indies Company,
  Russian American Company, French Royal companies
  all connect East Asia to Europe through trade
  monopolies

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Outcomes

• European nations establish economic colonies in
  Africa, Asia, and Caribbean.
• Companies become extensions of governments.
• Prop up local kings, potentates, and puppet
  magistrates friendly to European trade.
• Exotic products become more accessible and drive
  down prices while demands increase.
• Human populations interaction and mixing.

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Sugar- Rum -Slaves

• So called triangle trade
• Sugar created wealth but required plentiful cheap
  labor.
• West African kingdoms nurtured with trade goods
  from Europe an Asia for slaves.
• Slaves sold to plantations (sugar, rice, tobacco)

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• Sugar returned to Core State for sale and
  consumption.
• By-product Rum. Supplements sugar production or
  replaces it when sugar prices are low.
• Events in the periphery impact economics at the
  core.
• Periphery-periphery interaction becomes vital to
  economic stability.

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• Missionaries move with trade as shock troops of
  colonization (credit Jean Comoroff)
• Colonization of the mind must precede
  colonization of the landscape
• Social adjustments manifest under colonial rule

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Aspects of Globalism

• Movement of ideas, people as well as products and
  diseases, biomass..
• Exchange in luxuries
• Exchange in raw materials
• Exchange of bullion
• Transplant of jobs within capitalist framework

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Exchange

• Invention of new and frequently exotic banking
  mechanisms notes of promise, checking, exchange
  rates, insurance, shares, three-way commodity
  exchange, mutuals, and so on

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Modern World

• Third world of developing nations
• In fact we should think in terms of only one
  world divided between rich and poor nations.
• Largely an outcome of colonialism

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Globalism is not new, except

• Issues of depth of penetration
• Integration of systems
• Economic and cultural hegemony
• Wide reaching yet deeply entangled networks

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Culture and Adaptation

• Change is frightening to most peopleviewed as a
  threat.
• Negative Outcomes Insecurity, altered world
  views, new behaviors and new roles, modified
  economic standing, changed demographics, exposure
  to alien religions
• Positive Outcomes new exchange, new markets,
  cheaper goods, year round availability,
  prosperity to many, increased information flow

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Read chapter 8, 195-225

• Focus on rate of change and contemplate the
  social changes and adaptations industrialized
  nations will have to make in the coming years.
  This will serve as our final topic of discussion
  Thursday.