Globalization An Introduction January 13 th 2004 Globalization

Globalization An Introduction. . . January 13 th, 2004

Globalization. . . n n What is it? What causes it? What are its impacts? What its implications for democracy?

Aspects of Globalization n multifaceted economic integration u cultural integration u political integration u n each of these strands are interconnected

Aspects of Globalization n economic integration increased trade flows u increased capital mobility u increased integration of production processes u n creation of economic regions u EU, NAFTA

Aspects of Globalization n n multinational, transnational, global corporations three waves of multinationalization u u increased trade dispersed production processes « u however, centralized decision-making center transnational dispersion of decisionmaking processes « e. g. IBM

Aspects of Globalization n cultural globalization greater cross-national transmission of cultures u cultural homogenization u cultural hybridization u

Aspects of Globalization n political integration creation of new political arrangements between independent countries u e. g. European Union u

Causes of Globalization n globalization not automatic advanced technology (esp. ICTs) have enabled globalization – have not caused globalization u globalization also the result of political choices to pursue greater integration u « these choices are not neutral • create winners and losers (both among and within countries)

Causes of Globalization n causes are multi-faceted and selfreinforcing cultural integration generates demands for economic integration u economic integration requires cultural integration (to develop markets) u « e. g. u Coca-colonization cultural and economic integration may generate demands for political integration

Impact of Globalization n borders become more porous u n increasing cross-border flows of people, capital, culture, ideas and problems interdependence broadens and deepens u “Globalization. . . means an ever larger and more demanding international agenda, more engagement by countries in each other’s affairs over matters farther and farther behind each other’s borders, and, even among friends, more collisions of interest. ” Jessica Matthews, Estranged Partners

Impact of Globalization n power flows up, down and out from the nation-state u up to supra-national institutions « u down to sub-national governments « u e. g. NAFTA, EU, WTO, IMF national levels of government more restricted by globalization than sub-national levels out multinational corporations « international non-governmental organizations (NGOs) «

Impact of Globalization on Domestic Policy Choice n Hypothesis #1: external factors weaken domestic policy latitude of governments u direct constraints of international agreements « e. g. tariffs, subsidies, national treatment, investor protection u indirect constraints resulting from economic integration « e. g. competition for capital/highskilled labour and the “race to the bottom”

Impact of Globalization on Domestic Policy Choice Hypothesis #2: governments willingly n accept (even exaggerate) constraints imposed by external factors u governments are not nearly as constrained as often appears u governments willingly accept constraints and do not challenge them but use them to justify inaction Linda Mc. Quaig, The Cult of Impotence. « Linda Weiss, The Myth of the Powerless State « u assumption is that voters wish for different policies which governments do not want to adopt

Impact of Globalization on Domestic Policy Choice n Hypothesis #3: cross-national policy harmonization is the result of the wishes of the voting public u Version A: result of natural value convergence across nations « differences to the degree they existed were artificial « usually created/reinforced by governments • esp. keeping societies closed to outside influences

Impact of Globalization on Domestic Policy Choice n Hypothesis #3: cross-national policy harmonization is the result of the wishes of the voting public u Version B: imposed value convergence across nations « cultural imperialism for economic ends • Coca-colonization

Democratic Implications of Globalization – Philosophical Questions each of the 3 different hypotheses raise n different implications for the relationship between globalization and democracy u u u Hypothesis A: globalization undermines domestic democracy Hypothesis B: democratic governments are themselves flawed in terms of representing the will of the people (and are using globalization) Hypothesis C: globalization is constraining because of democratic government

Democratic Implications of Globalization – Philosophical Questions philosophical counter-arguments to claims n that globalization undermines democracy u if democratically-elected governments agree to accept limits imposed by globalization, is this counterdemocratic? u is it a concern if policies (including pursuing economic or political integration) a concern if it simply reflects public preferences? « See Mendelsohn and Wolfe, re: Canadian public opinion on economic integration

Main Points! n n n globalization is complex – it refers to many different things! globalization is not automatic – it is a political project globalization is not neutral – it generates winners and losers « n within countries and between countries relationship with democracy is complex u u some see globalization as undermining democracy however, not all observers see globalization necessarily as counter-democratic