In his book Globalization: A Basic Text, George Ritzer describes globalization as “a trans planetary process or set of processes involving increasing liquidity and the growing multidirectional flows of people, objects, places, and information as well as the structures they encounter and create that are barriers to, or expedite, those flows.”[1] Essentially, this process involves the flow of people, goods, services, and knowledge across borders. The process of globalization can be divided up into 3 waves.
Wave 1: Colonization
In the early 16th century, the first colonies were established by Spain in Asia and the Americas, creating the first truly global empire. Before this time nations did partake in trade and people did immigrate across borders. However, since Spain was able expand its territory passed its immediate borders, it signified to other nations that they could also further their influence and gain more resources if they did the same. Other powerful nations, seeing the value in resources and status that these colonies brought to Spain, followed suit, and colonization continued on until the late 19th century.[2] Nations managed to establish necessary pockets of political and social control in their colonies to prevent major resistance. These nations felt that their “superior” culture was essential, as well as beneficial to the “inferior” cultures they had colonized.
Wave 2: Imperialism/Industrial Revolution
After establishing political control, nations turned to a different goal: economic control. There was a shift towards more imperialist views. Imperialism involves control without the creation of colonies per se, but is “the practice, the theory, and the attitudes of dominating an area of distant territory.”[3] To exercise economic control, European countries used military power to gain resources and capital throughout much of what was Asia and eventually into Africa. This foreshadows the current economic inequalities between wealthy Western nations and the rest of the world that exist today. A prime example of this is the economic control exercised by Great Britain on India. The British East India Company (EIC) held a monopoly on the sale of all commodities imported into England from the “East Indies”, which expanded freely with support of the Indian government.[4] Within half a century the EIC had transformed into an aggressive colonial power. The company expanded to have 250 company clerks, a military force of around 260,000 locally recruited Indian soldiers and managed to secure economic control over all land in India south of Delhi. During this time, “economic imperialism” was a standard policy for nation states looking to expand their influence.[5] This trend continued until the industrial revolution sparked further interest and easier access to other economies.
The Industrial Revolution, which began in 18th century Great Britain, marked a chance from an agrarian and handicraft economy to one that valued industry and machine manufacturing.[6] Industries like iron and textiles, which dominated Western economies saw massive benefits. On the flip side, industries like the small-scale agricultural practices of Latin America, Africa and Asia fell behind. Improved systems of transportation, communication, and banking were also a result of the industrial revolution. All these improved systems benefited those industrial economies (Western powers).
Wave 3: Institutions
As a result of particular industries excelling, the majority of the world’s capital wealth and industrial production accumulated in the US and European Powers. Despite this distinction the world was more interconnected than ever before. When the Great Depression hit the United States in 1929, it negatively affected the global economy. Nearly every country in the world saw drastic declines in output, a spike in unemployment rates and severe deflation. In order prevent further negative social, political and economic consequences, the major powers created formal global institutions. Such institutions included the World Bank, the International Monetary Fund, and the World Trade Organization.[7] The goal was wanted to promote the construction of a unified world with respected norms and laws that allow it to function. The result of such institutions was the creation of a modern world, that leaves almost no nation unaffected or immune to their rules and policies.
With globalization consolidating power in the developed world, capitalism spread from Western society outward. Nations prioritized economic benefits and associated that with power and success. With pockets of extreme wealth consolidated in Europe and the US, as well as extreme poverty being the norm in Asia, Africa, and Latin America, massive inequality permeated. Over time there became terms for both these regions: Global North and Global South respectively. The Global North refers to highly industrialized, wealthy countries with a similar political ideology. The Global South refers to less industrialized, more impoverished, more rural nations. The terms are roughly geographic, though not all of the wealthy, developed nations are in the north and vice versa. Today some of the least profitable industries have commodities like crops, oil, and raw materials, that are commonly produced in the Global South and exported to benefit those in the Global North.[8] The fact that the industries that produce the least profit are in the Global South is not a coincidence, but rather a contribution systematic factors that has put workers here at a disadvantage. Goods and services that were tangible are now mass produced or digital. There was an adjustment away from physical items and a movement towards the value of skills. As a result, those, specifically in the Global South, who can only offer products that are mass produced or skills to accomplish tasks that technology can solve, find their opportunities stifled. This disadvantage is not easy to overcome for nations just struggling to keep up, and as a result income inequality persists. Countries have a need for economic control and globalization (through colonization, imperialism, and the creation of institutions) has allowed those who reap the benefits to continue to do so. This capitalistic view has allowed the spread of globalization which can be seen through movements of colonialism, imperialism, and institutionalism, and has created unfair distribution of wealth and income.
[1] Ritzer, George. Globalization : A Basic Text. Wiley Desktop Editions. Chicester: Wiley, 2012.
[2] “The Global Generation.” The McGill International Review, February 3, 2018.
[3] Amsden, Alice H. Escape From Empire : The Developing World’s Journey Through Heaven and Hell. Cambridge, Mass: The MIT Press, 2007.
[4] Ludden, David. “A Quick Guide to the World History of Globalization,” 2004.
[5] Ludden, 2004
[6] History.com Staff. “Industrial Revolution.” HISTORY.com, 2009.
[7] “The Global Generation.” The McGill International Review, February 3, 2018.
[8] Manyika, James, Susan Lund, Jacques Bughin, Jonathan Woetzel, Kalin Stamenov, and Dhruv Dhingra. “Digital Globalization: The New Era of Global Flows | McKinsey & Company.”