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B. Evaluating Globalization's Contradictory Dynamics
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T.A. Tran
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Updated Apr 25, 2021
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Chapters
00:00
Evaluating Globalization's Contradictory Dynamics
00:06
Uneven --> winners & losers --> conflict & backlash
00:31
Globalization produces contradictions
00:36
Cultural exposure --> cosmopolitanism + parochialism
01:45
Globalization conflicts with national sovereignty but states guide extent & arenas of globalization
02:40
Human rights promoted by international community but enforced by states
03:37
Western industrialized states drive globalization while trying to protect themselves from it
06:23
Global norm of democracy + democratic erosion
08:02
Globalization has lowered poverty + increased wealth inequality within countries & globally
10:01
Globalization of production chains + monopolization
10:14
1/3 of world trade occurs within single firms rather than among different firms
11:09
Is the world flatter or spikier?
12:31
Under what conditions is globalization occurring?
12:33
Is the world flatter or spikier?
13:23
Under what conditions is globalization occurring?
13:27
Who/what is driving globalization, and for whose interests?
13:32
Who enjoys its benefits and who suffers its costs?
13:38
How should governments & communities mitigate these costs/harms?
13:46
What could an alternative globalization look like?
Audio Transcript
Auto-generated
00:00 - 00:04
the most important dynamic of globalization to understand is that
00:04 - 00:08
it's uneven across space and time and it's uneven across
00:08 - 00:12
different countries and across different social groups and communities.
00:13 - 00:15
And so different people benefit from it and just different
00:16 - 00:19
people are disadvantaged by, it creates different winners and losers.
00:19 - 00:22
And as a result there's conflict, there's going to be
00:22 - 00:25
conflict and there's going to be backlash against globalization from
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those who lose out on it.
00:27 - 00:29
Um and so as a result of these uneven dynamics,
00:30 - 00:32
globalization produces massive contradictions.
00:33 - 00:36
Um let me go over exactly what I mean by
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this. So if we first looked at the sociocultural dimension
00:39 - 00:43
of globalization, we find that while there is greater cosmopolitanism
00:44 - 00:47
as a result of greater cultural exposure, we also see
00:47 - 00:49
greater parochialism as well.
00:49 - 00:50
These two things are happening at the same time.
00:51 - 00:53
And when I say parochialism, I mean that's when people
00:54 - 00:59
prioritize their immediate community um and have strong internally linkages
00:59 - 01:01
but weak external linkages.
01:01 - 01:04
And so these are like very strong in group identities,
01:05 - 01:07
and out groups are dip prioritized under parochialism.
01:08 - 01:10
So it's very much the opposite of cosmopolitanism, right?
01:11 - 01:15
Which is all about greater inclusivity um and and sort
01:15 - 01:19
of like an open relationship right with the whole world?
01:20 - 01:26
No, uh we find this greater parochialism happening, for instance,
01:26 - 01:30
with Brexit with the rise of trump and trumpism, which
01:30 - 01:34
is all about closing oneself more so from the world
01:35 - 01:39
than opening oneself more to the world, particularly with the
01:39 - 01:42
anti immigrant sentiment that has driven both Brexit and trump
01:42 - 01:47
is um now let's talk about the political contradictions of
01:48 - 01:53
globalization. Um so we know that globalization conflicts with national
01:53 - 01:54
sovereignty right?
01:55 - 01:59
Uh in that it's, you know, the rising power of
01:59 - 02:04
these non state formations, like multinational corporations, like transnational movements,
02:05 - 02:10
like international organizations, regional trade blocs um that compete and
02:11 - 02:15
challenge, compete for and challenges state power, but at the
02:15 - 02:20
same time, states, yes, are faced with these challenges to
02:21 - 02:24
their authority, but they still ultimately have the authority to
02:24 - 02:25
do a lot.
02:25 - 02:30
States are still guiding and shaping and dictating the extent
02:30 - 02:34
to which globalisation happens and the arena on which globalization
02:35 - 02:38
unfolds. So I'll quickly touch on three examples of this
02:38 - 02:41
first is in the realm of human rights.
02:41 - 02:46
So increasingly, human rights are being defined by a global
02:46 - 02:47
community, right?
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The international community has been advocating for this idea of
02:50 - 02:56
universal human rights um and and has been formulating write
02:56 - 03:00
this as a global norm, but the international community can't
03:00 - 03:02
really guarantee human rights.
03:02 - 03:05
It's states that can guarantee human rights because states are
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the ones that have the law enforcement mechanisms and courts
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to guarantee this sort of thing.
03:10 - 03:14
So that's an interesting contradiction in that state still hold
03:14 - 03:16
the power at the end of the day.
03:16 - 03:19
But increasingly, these other non state global actors are shaping
03:20 - 03:22
what's important, right?
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What should be the priority?
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What should be, what should we talk about, what should
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be guaranteed right to people?
03:29 - 03:33
So another idea or an example of how states guide
03:33 - 03:38
globalization is when we look at um free markets and
03:38 - 03:44
how Western industrialized states, particularly formerly imperialist ones, or presently
03:45 - 03:49
imperialist ones dr globalization primarily by imposing free markets on
03:50 - 03:55
poor countries, because these industrialized states want to access the
03:55 - 03:57
labor force and the consumer markets and the natural resources
03:58 - 03:58
of poor countries.
03:59 - 04:02
At the same time, these industrialized states try to protect
04:03 - 04:07
themselves from free markets by subsidizing domestic industries, by erecting
04:08 - 04:10
all sorts of tariffs and other protectionist measures.
04:11 - 04:16
Um and also, probably what is most interesting to me
04:16 - 04:21
is that these industrialized states recognized that free markets are
04:21 - 04:27
extremely disruptive to people's lives, and so they will enact
04:28 - 04:29
some sort of social safety net, right?
04:29 - 04:33
So to help the domestic population, whether the economic uncertainties
04:34 - 04:37
and dislocations that come with globalization, so, for instance, unemployment
04:38 - 04:42
insurance, healthcare, um things like that at the same time,
04:43 - 04:47
industrialized states, particularly through its influence in the I.
04:47 - 04:50
M. F, will tell poor countries that they had to
04:50 - 04:53
cut their public spending and slash their social safety net.
04:54 - 04:57
Um And so what this does right is that it
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props up workers in industrialized states while leaving poor workers
05:04 - 05:05
to fend for themselves in other places.
05:06 - 05:11
Um And so it's almost as if industrialized states want
05:12 - 05:15
free markets for everyone else, but not themselves, and that,
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and the problem isn't even so much with free markets,
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but it is that it's free markets, combined with not
05:22 - 05:24
having any sort of measures in place that will protect
05:25 - 05:30
workers by ordinary people from the severe uncertainties and dislocations
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that come with free markets.
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So it's then really important to understand that different states,
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depending on the status that you have in the international
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power structure, will have different degrees of freedom to choose
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how much they want to integrate into the global economy
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and and whether to integrate in the first place.
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So some states, especially poorer ones, will have zero choice
05:57 - 05:59
in the matter as to whether they want to globalized
06:00 - 06:01
or integrate into the global economy.
06:01 - 06:06
Rather that choices forced upon them um under conditions that
06:06 - 06:09
are forced upon them by actors like the I.
06:09 - 06:10
M. F.
06:10 - 06:11
Or by the W.
06:11 - 06:11
T. O.
06:12 - 06:16
Or by um they're much larger, more powerful trading partners.
06:18 - 06:21
Now the last political contradiction that we find under globalization
06:23 - 06:27
is pretty simple and that's that there is now an
06:27 - 06:31
increasing global norm of democracy which is supposedly spread by
06:31 - 06:35
globalization. But at the same time there's this unsettling history
06:36 - 06:39
where neoliberalism has gone hand in hand with the erosion
06:40 - 06:43
of democracy and we know that neoliberalism and globalization go
06:44 - 06:48
together in this world and so yeah how can it
06:48 - 06:52
be then that they're you know, we're supposedly trying to
06:52 - 06:55
spread democracy through globalization but at the same time that
06:56 - 07:01
globalization has in particular new liberal globalization has eroded democracy.
07:02 - 07:05
This is nowhere more clear then under the U.
07:05 - 07:10
S. Sponsored Dictatorships in south America um which happened in
07:10 - 07:14
brazil chile Argentina Uruguay where neoliberal ideas was first imposed
07:15 - 07:18
in the world under um these dictators that the U.
07:18 - 07:22
S. You know sponsored propped up and and oftentimes they
07:22 - 07:27
overthrew democratically elected leaders for these dictators to put these
07:27 - 07:29
dictators in place in order to implement a neo liberal
07:30 - 07:32
policy transformation in the country.
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And so these countries were where neoliberalism was first imposed
07:37 - 07:39
in the world and has since spread from there and
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that the conditions under which neoliberalism was imposed was one
07:43 - 07:43
of dictatorship.
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Right? And so and in many ways democracy continues to
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be eroded by neoliberalism in these places.
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Um and we see this very clearly with one of
07:56 - 07:58
the first, probably the first reading that we did in
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this unit on Argentina.
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Now let's look at the economic um contradictions.
08:05 - 08:08
So globalization is greatest contribution has probably been to lower
08:09 - 08:12
poverty um in places that are most integrated into the
08:13 - 08:17
global economy, like china chile, Indonesia, India and South Korea.
08:17 - 08:21
At the same time, we also already know that the
08:21 - 08:26
wealth gap is increasing, so while poverty is diminishing wealth
08:27 - 08:30
inequality is increasing not only within countries but also globally
08:32 - 08:32
as well.
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And so this increasing inequality seems driven more by financial
08:37 - 08:41
globalization than trade globalization, because there's just too many offshore
08:41 - 08:45
corporate tax havens and there's these very globalized investment flows.
08:46 - 08:52
And so um financial globalization right is allowing people to
08:52 - 08:55
accrue amounts of wealth that we have never seen in
08:55 - 08:58
history and that this is greatly contributing to the rise
08:59 - 08:59
and wealth inequality.
09:01 - 09:06
Um there's one exception to this, all of this in
09:06 - 09:08
terms of the rising wealth inequality.
09:08 - 09:10
The one exception is that if you break up the
09:10 - 09:13
world the world into rich and poor countries, you actually
09:14 - 09:16
see that the income gap between rich and poor countries
09:17 - 09:20
have narrowed, but that this is largely or almost entirely
09:21 - 09:24
due to East Asia's economic search.
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So this means then that the benefits of globalization are
09:29 - 09:33
not as far reaching as the term globalization would imply,
09:34 - 09:37
and that the gains of globalization continue to be very
09:37 - 09:41
unevenly distributed, and they continue to accrue largely to industrialized
09:41 - 09:46
countries and urban areas over rural areas, and they tend
09:46 - 09:49
to benefit dominant racial or ethnic groups over historically marginalized
09:49 - 09:55
groups. Now, another way in which the benefits of globalization
09:55 - 09:58
aren't even better content are evenly distributed, but there are
09:58 - 10:02
concentrated is that, you know, we see that there's a
10:02 - 10:07
greater global organization of production chains, but that this globalization
10:08 - 10:12
of production is actually in um, almost entirely occurring within
10:12 - 10:13
a monopoly framework.
10:14 - 10:16
And what I mean by that is that a third
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of world trade occurs within single firms, rather than among
10:22 - 10:23
different firms.
10:23 - 10:27
So what this means is that most firms, right, are
10:27 - 10:31
not actually engaged in globalization at all, They're engaging in
10:31 - 10:34
trade and stuff within their own network, a network that
10:34 - 10:37
they entirely control and monopoly monopolize the entire space.
10:38 - 10:41
And so a third of world trade right happens within
10:41 - 10:42
the space of a monopoly.
10:43 - 10:48
Now, this means that in an intensely globalized world, such
10:49 - 10:52
as ours, transnational corporations are more powerful than they've ever
10:53 - 10:55
been, because they control so much of this global market
10:56 - 11:01
and that they can translate this economic power into social
11:02 - 11:04
power, political power and cultural power.
11:04 - 11:05
And that's what's really worrying, right?
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So while some say that globalization has flattened the world
11:12 - 11:14
and has created a more level playing field, so that
11:15 - 11:17
countries and peoples who used to be left out now
11:17 - 11:20
have access to global markets and resources through which they
11:20 - 11:21
can prosper, right?
11:21 - 11:23
The data actually shows that the world is not exactly
11:24 - 11:26
flat, but it is indeed more spiky.
11:27 - 11:30
This means that globalization does hold great promise to mitigate
11:31 - 11:35
poverty, but only if globalization is done right in that
11:35 - 11:38
only if globalization is gains and benefits are more equitably
11:39 - 11:43
distributed. In other words, if we're talking about trade, open
11:44 - 11:46
trade needs to happen on equitable terms so that poor
11:47 - 11:50
countries are not disadvantaged compared to rich countries and that
11:50 - 11:54
small businesses and the global workforce are not disadvantaged compared
11:54 - 11:55
to multinational corporations.
11:56 - 12:00
And this means that open trade needs to accompany fair
12:01 - 12:05
trade agreements that prioritized the development of poor countries and
12:05 - 12:10
and that prioritize um distributing resources globally in a fairer
12:11 - 12:14
way. Um and it means that, you know, there needs
12:14 - 12:17
to be governments to provide social services that can help
12:18 - 12:21
the poorest sectors of the poorest countries, whether all of
12:21 - 12:23
the economic disruptions of open trade.
12:25 - 12:30
So overall, as you can see globalization as complex city
12:31 - 12:37
and its multi dimensionality, um means that we can't really
12:37 - 12:38
talk about it as being good or bad.
12:39 - 12:41
It's good in some ways for some people in some
12:41 - 12:43
places that sometimes and it's bad for others.
12:44 - 12:47
So to give you more detail on texture on this
12:48 - 12:50
claim that I just made, I'm going to present to
12:51 - 12:53
you two case studies of globalization in the next two
12:53 - 12:55
segments, one is going to be on sweatshops and there's
12:55 - 12:56
going to be on migration.
12:57 - 13:00
And in one of these case studies I'll make a
13:00 - 13:04
stronger case against globalization and in the other case study
13:04 - 13:05
I'll make a stronger case for globalization.
13:06 - 13:11
And again this reflects the tension that globalization comes with
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a lot of good and a lot of harm.
13:13 - 13:15
And I want you to evaluate the info that I
13:15 - 13:16
present to you in.
13:16 - 13:19
These next segment's not based on the simple binary question
13:19 - 13:21
of whether globalization is good or bad.
13:21 - 13:24
But I want you to think about more nuanced questions
13:24 - 13:27
like under what conditions is globalization occurring?
13:28 - 13:32
Who or what is driving globalization and for whose interests,
13:33 - 13:37
who enjoys globalization is benefits and who suffers its costs?
13:39 - 13:43
How should the costs and the harms be mitigated by
13:44 - 13:44
governments and communities?
13:46 - 13:49
And what could an alternative globalization looked like?
13:49 - 13:53
So? In other words, how do we steer globalization in
13:53 - 13:56
a direction that doesn't harm the already most vulnerable in
13:57 - 14:00
our world, while we can still enjoy the numerous benefits
14:01 - 14:01
of globalization?
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