How Should We Define Globalisation?
How Should We Define Globalisation?
Whether they really understand it or not, most of people in the world today seem to talk about globalization. One can talk about a random subject yet it is often linked to globalization. What is globalization? Globalization is an idea whose time has come, yet it lacks precise definition.1 Being such a ubiquitous term, there is no inevitable and clear definition of globalization. It is classified in many definitions, such globalization as a necessary myth,2 globalization as an interconnected world, and globalization as a phenomenon of modern world. However, in this essay, I tend to refer the term of globalization as a set of processes.
There are debates surrounding the idea of globalization. These debates are based on different perspectives thus they have generated different school of thoughts of the globalists, the sceptics, and the transformationalists of which will also be discussed in this essay. Meanwhile, questions about globalization have also been raised. The first and foremost one is: "how should we define globalization?" There are many definitions classified about globalization, yet the certain term remains a challenged concept that can not be assumed easily.
This essay is another attempt to find the answer of how we should really define the trend of globalization. To find the most sensible and the simplest definition of it, the idea of globalization in general will be discussed. Globalization, known as the buzzword of the new millennium, covers a wide range of aspects. Thus, with the intention to obtain a lucid picture of it, I limit the subject by only talking about economic, politics, and cultural globalization. Impacts of economic activities in contemporary multi processes are many and cover other aspects in their reconfiguration. Yet, this essay does not discuss the impact of globalization as the main subject matter. It only discusses in order to get a better image of what globalization is in those three main aspects. Debates surrounding the idea of globalization are also acknowledged and discussed in this essay, particularly in each main aspect to create a better idea of globalization within it. The sceptics' and globalists' thesis are most emphasized considering the contrasting perspective between both, while the transformationalists' thesis is not ignored.
Scholte wrote that globalization is a distinctive and significant feature of recent world history.3 As a phenomenon, globalization covers an extensive range of aspects such as economic, politics, social and cultural. In an uncomplicated means, globalization refers to a shift or transformation in the scale of human organization that links distant communities and expands the reach of power relations across the world's regions and continents.4 Inclusively, David Held stated that globalization is fundamentally a spatial phenomenon; it lies on a spectrum with the local and national at one end and the (supranational) regional and global at the other... It is about the interconnections between different regions of the world - from the cultural to the criminal, the financial to the environmental - and the ways in which they change over time."5 International flows of people, activity and interaction, goods, information and technology, communication, and cooperation indicate the process of globalization.
Globalization refers to a set of processes in life that happens naturally as life moves forward, which can not be denied nor be ignored, and as the world becomes more modern and more interconnected. The modern world often refers to the innovation of information and technology which has been greatly enriched thus it impacts to connecting people in the whole world, in many aspects. For example, the innovation of internet gives us many accesses to gain much information by using a search engine provided by web companies such as Google and Yahoo.
In short, globalization can be best understood as a process or set of process rather than a singular condition,6 since it does not happen in a blink of eyes nor does it happen in a certain area in certain short of time. There are multiple processes of globalization that such processes are unevenly developed over space and time, are complex and often resisted and, are simultaneously social, cultural, political, and economic. 7
Nonetheless, those processes are acknowledged diversely. People often hold radically different definitions of the term globalization.8 While the popularity of globalization attracts intellectuals, journalists, and political thinkers, perspectives generated are various, and somewhat opposed to each other. Most of them argue about how globalization should be best-conceptualized. The debate has raised different school of thoughts; they are classified as globalists, sceptics, and transformationalists.9
Sceptics are those who tend to refuse 'globalization' as an accurate idea in defining of those of multiple processes that has happened in today's world. They rather define it as 'internationalization'. They criticize this diagnosis as highly exaggerated and as 'a necessary myth.'10
Globalists are those who acknowledge those of multiple processes as, indeed, 'globalization'. They have also been described as the 'first wave', 'extreme', 'strong' or 'radical' thesis.11 They consider that contemporary globalization is a real and profoundly transformative process12 which will gradually expand further and eventually shape a more globalized world.
Transformationalists consider those of multiple processes as globalization and it is a powerful transformative force which is responsible for a 'massive shake-out' of societies, economies, institutions of governance, and world order. 13 For them, globalization is emphasized as a long-term historical process of profound change, of which is experienced by states and societies as they try to adapt to a highly uncertain and more interconnected world.
Of all these theses, the globalists' and the sceptics' are the most contrasting to each other. Their perception on contemporary world has certainly influenced the meaning of the idea 'globalization'. ...
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Transformationalists consider those of multiple processes as globalization and it is a powerful transformative force which is responsible for a 'massive shake-out' of societies, economies, institutions of governance, and world order. 13 For them, globalization is emphasized as a long-term historical process of profound change, of which is experienced by states and societies as they try to adapt to a highly uncertain and more interconnected world.
Of all these theses, the globalists' and the sceptics' are the most contrasting to each other. Their perception on contemporary world has certainly influenced the meaning of the idea 'globalization'. Nonetheless, we shall look at three aspects in which the multi processes indeed happen thus impact each other. They would be the economic globalizations, political globalizations.
Economic globalization is seems to be the most debated issue since it has not only caused such a vast change in economic field but also in other aspects when the world becomes more borderless. Economic globalization is what happens in the world in which the moving flows of goods, capital, labour, and information and technology seem to easily advance across national boundaries thus it rapidly expands the political and economics interdependence. In essence, definitions of today's economic activities within the multiple processes of globalization are similar. Although some would say that, today, fewer activities are oriented towards local - or even national - markets, more and more have meaning only in regional or a global context.14. Bhagwati wrote that Economic globalization constitutes integration of national economies into the international economy through trade, direct foreign investment (by corporations and multinationals), short-term capital flows, international flows of workers, and humanity generally, and flows of technology.15 Activities such as the accelerating international flows of goods, capital, people, and services; international free trade and free market; international and or regional organizations, institutions, and cooperations; international trade and finance organizations; and increasing of Multinational Companies (MNCs) across borders - denote the economic globalization. These activities bring benefits for people in some extent, while it also brings suffer.
For example, we can find tropical fruits sold in Indoor Market in Birmingham even in winter time because it has been imported as a benefit of the international flows of goods. There is an International trade and finance organization named as World Trade Organization (WTO) that was formed to liberalize the world market. In the case of regional organization, the European Union (EU) is often referred as a perfect example for this - where closer integration in terms of market and political decisions shows how far transnational relations and institutions can be created in one form.
The mobility of MNCs across borders has had impact to economic activity in the contemporary world and is considered to influence nation states' economic and political policies as well as the society. For instance, many people in the world today highly use the cellular phone; it has become a vital need with a vital role in order to function daily activities. One of the successful leading companies providing cellular phone is a Japanese brand, Nokia. Brilliantly, this company uses such a slogan that reflects the idea of globalization that is "Connecting People". Even in a third world country such as Indonesia, Nokia's cellular phone has become the most commercial brand among the people.
The processes of economic globalization have been highly debated by the sceptics and globalists. From globalistst, Ohmae stated that contemporary globalization defines an era in which peoples everywhere are increasingly subject to the disciplines of the global marketplace, while Hirst and Thompson argued that globalization is essentially a myth which conceals the reality of an international economy segmented into three major regional blocs in which national governments remain very powerful.16 Hirst and Thompson choose to believe that, rather than a 'globalized economy', it is an 'international economy'. They conceive it as one in which the principal entities are economies.17
Furthermore, the globalists have proposed the further liberalization of the international economy and deregulation of domestic economies18. What they mean may refer to such international trading regime such as WTO with its purpose to liberalize the international economy. This advocacy has had serious effects in Asia and in emerging financial markets, leading to economic crisis, unemployment, and impoverishment.19 The South East Asian monetary crisis was as a result of the liberalization since every single member of WTO has to implement the result of agreements although not all nation states have enough capabilities for it. Third world countries such as Indonesia had difficulties in implementing it, thus it has led Indonesia to a more complicated multi crisis.
In essence, the increasing activities in economics globalization have made such a big impact to our contemporary world. It has also had impacts, both positive and negative ones, to contemporary world in many aspects. In that matter, political aspect is also impacted. We shall look to what happens in the contemporary world politics to get a better understanding of political globalization .
Basically, political globalization is what happens in contemporary world politics as a result of the increasing economic activities within that of multiple processes. Such developments challenge both the sovereignty and legitimacy of states. They have challenged the political structure such as who plays the key role - the nation state has not been the only important actor, what situation influences the decision making process - international institution or a multilateral trade agreement has taken part in influencing it. There are other actors besides nation states in world politics that should be acknowledged; actors such as MNCs, international and or regional organizations, International Non-Governmental Organizations, and international pressure groups.
The reconfiguring shape of contemporary world politics brought up a question about the role of nation states in political activities; whether or not these changes will finish the state, or even its sovereignty and legitimacy. Such question brought up debates surrounding it within which they are most debated by the globalists and the sceptics.
As globalists, Ohmae strongly believes in a global market and that it has made the undermining of nation states' role in world economy. He wrote that in today's more competitive world, nation states no longer posses the seemingly bottomless well of resources from which people used to draw with impunity to fund their ambitions... Are these nation states - not withstanding the obvious and important role they play in world affairs - really the primary actors in today's global economy?"20 In contrast, Hirst and Thompson argued that "whereas tendencies towards internationalization can be accommodated within a modified view of the world economic system, that still gives the major role to national-level policies and economic actors; when firms, governments and international agencies are being forced to behave differently, but in the main they can use existing institutions and practices to do so."21 They choose to define economic globalization as internationalized economy, within which nation states are still the central actor, thus they take such an important account in the process. Complex globalization theorists, Dicken writes that in politics, "The position of the state is being redefined in the context of a polymeycentric political-economic system in which national boundaries are more permeable than the past.22
The role of nation states in that of multiple processes is defined differently. Neorealists, such as Barry Buzan, emphasizes that nation states are very important in globalization, particularly in contemporary world politics, and their significant role remains highly central.23 Meanwhile, people of Complex Globalization thesis, such as David Held and Anthony McGrew believes that it certainly is the other way. Thus, the power and role of the territorial nation states is being transformed, despite what the sceptics claim political power is being reconfigured.24
Another issue that also has made a contribution to the reconfiguration in world politics is about the emergence of global governance. While government can be defined as 'the organization' which administers a country or state', governance refers more broadly to 'the act of governing' - whether by a state or not.25 Global Governance refers to the evolving system of (formal and informal) political coordination - across multiple level from the local to global - amongst public authorities States and IGOs) and private agencies (NGOs and corporate actors) seeking to realize common purposes or resolve collective problems through the making and implementing of global or transnational norms, rules, programmes, and policies.26
The emerging of global governance is very much embraced by the globalists. From the analysis of globalists, the modern state is increasingly embedded27 in webs of regional and global interconnectedness permeated by supranational, intergovernmental and transnational forces, and unable to determine its own fate. 28 Opposing to their argument, sceptics argue that government is not the passive victims of internationalization but, on the contrary, its primary architects.29
For example, the United Nations system, the World Trade Organization and the array of activities of national governments are among the central components of global governance, but they are not the only components.30 Another example that has achieved substantial progresses towards the establishment of global governance is the EU, with a single market and a single currency creating less trade barriers and a competitive business and market environment. Externally, economic integration has led to a common trade policy that has made the EU a key player in international negotiation.31 This is true. However, the EU has not been succeeded in its political integration in which member states are still put their national interests above others. This means that political integration has somewhat lagged behind, and efforts at creating a common foreign and security policy have tended to promise more than they were able to deliver.32 For instance, it should be remembered that there are differences of member states' foreign policy towards United States' current invasion to Iraq. Another example is about Britain as an EU member. While also supporting US in attacking Iraq, Britain remains indecisive towards the singe currency of EU.
In relation to the movement of MNCs' activities that has also contributed the shape reconfiguring in world politics, Ohmae claimed that "the mobility of these four Is33 makes it possible for viable economic units in any part of the world to pull in whatever it is needed for development. They need not look for assistance only to pools resources close to home. Nor need they rely on the formal efforts of governments to attract resources from elsewhere... This makes the traditional function of nation states - and of their governments - largely unnecessary." In this respect, we must acknowledge that some nation states are home base for MNCs. While shareholdings in various MNCs indeed have happened to be transnational, yet they headquarters place within a single nation. They also depend on state structures to guarantee stable property rights or at least predictability in determining the rules of the game under which they operate.34
In short, the contemporary world politics has been reconfigured, yet the role and the existence of nation states are still important, even for MNCs which have been talked as another important actor in economic globalization. To conclude, Hirst and Thompson argued that the degree of internationalization and its potential detrimental consequences for the regulation of MNCs activity and for national economies is severely exaggerated. "International business are still largely confined to their home territory in terms of their overall activity".35
The last aspect subject is cultural globalization. Analogically, globalization as a set of multiple processes is more like a spider web, within which in the case of globalization these aspects interconnects each other. Among the prime examples of this process are the revival of nationalism and the robust persistence of ethnicity.36 To get a better understanding of this process, there are three approaches of cultural globalization that briefly happen in our contemporary world.
The first would be cultural globalization seen as uniformity. What remarkable of culture in contemporary world is that it is shaped or determined by companies, not countries. The most popular culture trend is uniformity in the form of standardized consumers styles.37 The globalists argue that corporations have replaced states and theocracies as the central producers and distributors of cultural globalization.38 It is basically because of a brilliant marketing and acceptance of variation39 alongside the high quality product offered by companies. Coca-cola company and Nokia brand for cellular phone represents this case. Thus, as a result of globalization's interconnectedness, such as the innovation of technology and communications, and mobility of MNCs across the world, has created 'cultural uniformity'. Holton analyzed this approach as a homogenization within which arguments connecting globalization with cultural dominance may take a number of forms.40
Linked to this approach is Americanization, which is seen as American cultural Imperialism.41 Globalists describe that the homogenization of the world under the auspices of American popular culture or Western consumerism in general.42 Cultural homogenization is associated with the dominance of US in export of television, film and news information. The first example is the famous American situation comedy, Friends, which is diffused from US to most of the world. The Friends series in Japan is even dubbed by Japanese dubbers, wherein on an interview, each dubber admitted that they felt attached to each own character. The second example is called Mcdonalization or McWorld. As world leading fast food, McDonald's has become more to American cultural icon.
Secondly, it is cultural globalization as diversity wherein it shapes a new mixed-culture, and also feasible to bring either tolerances or conflicts within its complexity. Holton identifies this as Polarization theory, that is more alert to divergent trends, in particular the co-presence of global and particularistic national, tribal, and ethnic cultural affiliations.43 In essence, this approach emphasizes that, within the process of globalization, cultural globalization is not only seen as a one-way process thus it also raises conflict as it is very complex.
This approach refers to Huntingtion's prediction that a clash will happen within civilizations, which is still questioned until today. Rather than political or economic terms, primary division is in terms of culture and civilizations and divided into eight major civilizations.44 He argued that the world is fragmenting into civilization blocs and cultural and ethnic enclaves,45 thus these differences will be the basis for future confrontations.46 When the clash arises, in coping with identity crisis, he argued, what counts for people are blood and belief, faith and family,47 as for Muslims in Indonesia or Malaysia may feel solidarity with Palestinian Muslims. Another feasible example is the publication of book by Dan Brown, the Da vinci Code, wherein it illustrates the conflict between Christian and Jew, has brought up debates since part of the book is claimed to be based on some facts.
Finally, cultural globalization is seen as hybridization. Placed between the first two, it is a mixing of culture. Holton emphasizes this as cross-cultural borrowings and intercultural fusing and blending to create hybridized or mixed culture forms.48 The globalists interprete hybridization of cultures as evidence of a radically new order, an order which prefigure the demise of the nation state,49 while transformationalists describe the intermingling of cultures and peoples as generating cultural hybrids and new global cultural networks.50 For example, Coca-cola is acknowledged as the pioneer of coke, thus, because of its popularity, many often refer to coca-cola when it comes to coke, although there are other brands such as Pepsi. It is named as Coca-colanization.
In conclusion, globalization is a set of processes in many aspects that happens as life moves forward and the world becomes more modern, which can not be denied nor be ignored. The ever-increasing Economic activities in economics globalization bring benefits for people, while it also brings suffer. It has also made a vast change in reconfiguration of contemporary world politics wherein the role of nation states is debated. In cultural context, globalization brings uniformity, diversity, and hybridization. Therefore, in the simplest way, globalization is set of processes in many aspects as a result of world's improvement that brings advantages and disadvantages to contemporary world. It can be good if well-managed, and can be bad if managed in the other way.
David Held and Anthony McGrew, David Goldblatt and Jonathan Perraton, Global Transformations: Politics, Economics, and Culture (Cambridge: Polity Press, 1999) p. 1.
2 Hirst and Thompson in Paul Hirst and Grahame Thompson, Globalization in Question, (Cambridge: Polity Press, 1999), chapter 1.
3 Jan Aart Scholte, Globalization: A Critical Introduction, (London: Macmillan Press Ltd, 2000), p. 3. Try also ch. 1 - 4.
4 David Held and Anthony Mcgrew, Globalization / Anti-Globalization (Cambridge: Polity Press, 2002), p. 1.
5 As stated by David Held in an intewrview by Montserrat Guibernau, "Globalization, Cosmopolitanism, and Democracy: An Interview", http://www.polity.co.uk/global/held.htm
6 Held and McGrew, Goldblatt and Perraton, p. 27.
7 Colin Hay and David Marsh (Eds), Demystifying Globalization, (London: Palgrave Macmillan, 2000/1), p. 3.
8 Scholte, p. 14-15.
9 Held and McGrew, Goldblatt and Perraton, p. 2.
0 Anthony McGrew, "Globalization and Global Politics", in John Baylis and Steve Smith (eds), The Globalization of World Politics: An Introduction to International Relations (Oxford: Oxford University Press, 2005), p. 26. Try also Hirst and Thompson, chapter 1: "Globalization - a Necessary Myth?".
1 11 Nicola Jo-Ann Smith, Showcasing Globalisation?: The Political Economy of the Irish Republic, (Manchester: Manchester University Press, 2005), p.13-14.
2 Ibid.
3 Held and McGrew, Goldblatt and Perraton, p. 7.
4 Peter Dicken, Global Shift: Reshaping the Global Economic Map in the 21st Century, (London: Sage Publications Ltd, 2003), p. 9.
5 Jagdish Bhagwati, In Defense of Globalization, (New York: Oxford University Press, 2004), p. 3.
6 Held and McGrew, Goldblat and Perraton; p. 2. Also try Hirst and Thompson, ch.1; Ohmae, introduction and ch. 1.
7 Hirst and Thompson, p. 8.
8 Hirst and Thompson, p. 4.
9 Ibid.
20 Kenichi Ohmae, The End of The Nation State, (London: HarperCollins Publishers, 1996), p. 2.
21 Hirst and Thompson, p. 1.
22 Dicken, p. 122.
23 Explanations taken from a hand out of Globalization and Governance module by Nicki Smith
24 Held and McGrew, p. 24.
25 Definitions taken from a hand out of Globalization and Governance module by Nicki Smith.
26 McGrew, p. 25.
27 Held and McGrew, Goldblatt and Perraton, p. 85
28 Held and McGrew, p. 23.
29 Held and McGrew, Goldblatt and Perraton, p. 6. Try also Hirst and Thompson, p. 270
30 Held and McGrew, Goldblatt and Perraton, p.
31 Thomas Christiansen, "European Integration and Regional Cooperation", in Baylis and Smith, p. 595.
32 Ibid.
33 What Ohmae means as The four "Is" is investment, industry, individual, and information, which all flow relatively unimpeded across national borders as globalization happens. Ohmae, p. viii, try also p. 2 - 5.
34 Robert J. Holton, Globalization and the Nation-State, (New York: Palgrave Publishers, 1998), p. 83.
35 Hirst and Thompson, p. 96.
36 Holton, p. 135.
37 Holton, p. 156.
38 Held and McGrew, p. 36.
39 Holton, p. 169.
40 Holton, p. 163.
41 Ibid, p. 166.
42 Held and McGrew, Goldblatt and Perraton, p. 327.
43 Holton, p. 184.
44 For detailed information of the clash divisions by Huntington, try Samuel P. Huntington, The Clash of Civilizations and the Remaking of World Order, (London: The Free Press, 2002).
45 Held and McGrew, Goldblatt and Perraton, p. 6.
46 Ronald M. Bosrock, "As Political Borders Fade, Cultural Differences Re-emerge", http://www.globalpolicy.org/globaliz/cultural/cultur1.htm
47 Huntington, p. 126.
48 Holton, p. 179.
49 Held and McGrew, Goldblatt and Perraton, p. 4.
50 Held and McGrew, Goldblatt and Perraton, p. 327.
