Context of Globalization
Context of Globalization
Introduction
This paper examines how the concept of globalization is useful in comprehending changes in our society, and also explores how neoliberalism has driven the direction of these transformations. It discusses the notion of globalization, historical concepts that led to social changes and philosophical tenets that form neoliberalism.
Globalization is a term which explains transformations in the economy, politics, culture and social aspects around the world. The concept of globalization eliminates geopolitical boundaries between countries and promotes the global movement of products, services, and labor. Although many sociologists have explored the idea of globalization, they have not adopted a single definition. Thus, there are different definitions of globalization.
Robertson (2014) holds that globalization is an idea that compresses the world and intensifies its consciousness as a whole. He further notes that the concept results in substantial global interdependence. Conversely, most economists define globalization as the integration of domestic economy with the international economy via trade, the extension of innovations, foreign direct investment and other exchange programs. Dicken (1998) states that globalization is a geographical process that needs people to consider how space, regions, and time are viewed based on the advancements in technology, economy, and politics. Importantly, globalization has different definitions based on the context of use, but the various sociologists seem to agree that this concept is responsible for the significant social, political and economic changes that exist in the world today. Notably, globalization is the concept whereby the global space becomes interconnected due to improvements in technology.
In the 1980s, globalization was mainly used in the spheres of trade and economy. Afterward, the notion was adopted in other areas such as politics due to the emergence of influential global leaders. Also, it spread to cultural aspects which explain the culture homogeneity that is observed in the world today. After decolonization, the notion of globalization spread fast to different parts of the world including Africa and Asia. Evidently, most countries adopted the term neo-colonialism to commemorate globalization. Despite the extensive use of the phrase globalization, most sociologists do not define whether it is destructive or if it promotes civilization. In the modern world, the idea of globalization has evolved to neo-liberalization, and it is propagated by the IMF and the World Bank. Western political leaders also spread this notion through the elimination of trade barriers, foreign investment and cutting the expenditure on social services.
Specific historical concepts that led to social change due to neoliberal policies
Deregulation
In the 1980s, governments turned emphasis on laws and regulations to development an enabling environment that would motivate businesses. The result was a reduction in state regulations and less involvement in the trade. Supporters of deregulation hold that less government involvement in business creates economic prosperity as well as benefits to consumers. Deregulation is thought to enhance competitiveness which leads to improved productivity, effectiveness, and reduced prices overall. Those who oppose deregulation cite issues of environmental pollution which arise due to improved production (Daly and Goodland, 1994). Deregulation led to social change since it increased competition in the global market and impacted employment trends. Ideally, deregulation introduced the notion of capitalism which forces individuals to strive towards the realization competitiveness. It led to the alteration of social structures leading to two-income families.
Privatization
Privatization gained momentum in the 1980s during the reign of Ronald Reagan in the US and Margaret Thatcher in the UK (Gills, 2013). The growth of privatization was as a result of liberal economic policies. Most importantly, in the 1980s – 90s public amenities such as transport system, telecommunication firms, and water supply structures were privatized. This trend led to the emergence of powerful private companies that play a vital role in the economy since they account for a significant percentage of the GDP. Notably, economist analysis indicates that privatization in the US is favorable. However, the increased public protest in the nation suggests that most people are discontented with or hold opposing views of privatization (McKenzie and Mookherjee, 2003). Under privatization, provision of essential social services is left to the private sector. This fact resulted in social changes since necessary services become unreachable.
Liberalization
Liberalization involves reduction of government regulations and constraints in the economy so as to allow increased participation of the private sector. The notion of liberalization aims at removing barriers with an objective of achieving economic development. Low taxes, incentives and market flexibility are some factors that drive liberalization. In the dawn of neoliberalism, western countries including the US sought to make their markets more open and flexible. This aspect led to the enactment of policies that encourage investment both domestically and internationally. Also, the concept of liberalization leads to competitiveness in both domestic and international market. Importantly, liberalization was a major contributor to social changes.
Philosophical tenets that form neoliberalism
Classical liberalism
Classical liberalism is a political concept which recommends freedom liberty in politics and civil rights and also, it favors democracy and economic liberalization. The idea of classical liberalism emerged in the 1980s but took a momentum in the 1990s.This concept urges for particular policies that respond to industrialization and urbanization. Classical liberals believe that the government is structured by citizens to protect them and even eliminate conflicts between individuals. Also, they held belief that individuals should have the right to seek economic freedom without government regulation (Dickerson, Flanagan, and O’Neill, 2009). Hence, some classical liberals disregard any policies aimed at regulating the free market. The dawn of classical liberalism saw significant changes in the social domains. There was the introduction of policies and guidelines that promote equality such as minimum wage, child labor rights and workplace safety (Schumpeter, 2010). Additionally, production processes were configured to meet consumer rights and demands.
Economic planning
Economic planning entails resource allocation systems, and it is a systematize mechanism of socialism. This concept emerged as a result of liberalization and deregulation whereby countries became more concerned with economic development and prosperity. Planning can either be centralized or decentralized, and both levels are distinguishable. In a central planning, the resources are allocated following an in-depth plan of production which defines the production essentials. In the U.S., economic planning began during the World War I. In a bid to create economic stability; the Federal established policies and agencies to control vital economic spheres including food and fuel management.
Conclusion
The concept of globalization led to the economic interdependence between countries due to the free movement of products, services, and labor. Globalization was spark by industrialization and spread by Western leaders, and international institutions including the IMF and the World Bank. After decolonization, countries adopted neocolonialism to commemorate their freedom. Ideally, that led to the idea of neoliberalism. Deregulation, liberalization, and privatization are the three core principles of neoliberals that led to social change. The philosophical tenets that form neoliberalism include classical neoliberalism and economic planning.
References
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McKenzie, D., & Mookherjee, D. (2003). The distributive impact of privatization in Latin America: Evidence from Four countries. Economía, 3(2), 161–218.
Robertson, R. (2014). Roland Robertson. Globalizations, 11(4), 447-459.
Schumpeter, J. A. (2010). Capitalism, socialism and democracy (Routledge classics). London: Routledge.
