Globalisation – A brief overview
Origins and Evolution of Globalisation
Globalisation refers to the process of increasing interconnectedness between individuals, businesses, and countries across the world. This phenomenon has been driven by advancements in technology, transportation, and communication, which made it easier for people and goods to move across borders. Globalisation impacts every aspect of our lives, including the economy, culture, and politics. It has changed the way we work, play, travel and eat. All in all, it has changed how we conduct our lives.
<h6 class="textbox" font-size:14px>Whether directly or indirectly, globalisation affects us all. It is a process that drives social, political, and economic changes that transform our modern society.</h6>
While discussions of globalisation often focus on developments since the 1980s, many facets of global integration have much earlier origins. The exchange of ideas, beliefs and traditions between societies dates back thousands of years to ancient trade routes and empires, exemplifying early cultural and religious globalisation. The cross-border spread of technological innovations such as the printing press truly began to accelerate in the 15th century. Political convergence emerged regionally through imperial administration and legal systems. Rudimentary economic globalisation began in the 16th century as European trading companies and colonial plantations integrated international markets.
However, most scholars argue that the pace and scale of globalisation have increased significantly since the late 19th century, when industrialisation, rapid transportation, mass communications and political shifts opened up borders. This enabled unprecedented mobility of money, goods, people and information around the world. While certain processes of globalisation have been in motion for thousands of years, the current era is characterised by the intensity, speed and breadth of global flows.
Steger<span class="span"><span id=hint class="box-source">periodizes</span><div class="popover">Source:<br><br><div>Steger, M. B. Globalization: A very short introduction. Oxford University Press, 2023.</div></div></span>four great eras of globalisation, each marked by different "social formations," which refer to the prevailing forms of global connectivity. These four eras are, chronologically:
• Prehistoric (pre-3500 BCE) - early human migration and dispersion across continents
• Premodern (3500 BCE - 1500 CE) - emergence of ancient empires and trade routes
• Early Modern (1500-1750) - rise of European colonialism and capitalist world system
• Modern (1750-1980s) - industrialisation and rapid technological advances
However, Steger argues the world has entered a new era of globalisation since the 1980s. He calls it the “great convergence”. Indeed, the current era is characterised by different people and societies coming together and connecting more rapidly and intensely than ever before. The scale and intensity of contemporary globalisation are without historical precedent.
A few key developments have been largely responsible for continuing to drive global integration. The aftermath of industrialisation linked regions through trade networks. Advances in transportation technologies, like air travel and container shipping, enabled greater movement of people and goods over greater distances and at higher speeds. Policies promoting trade liberalisation, tariff reductions and free trade agreements helped to further break down national barriers. The information technology revolution, especially the rapid spread of the internet, mobile phones and digital communications, has also intensified globalisation.
Together, these factors have compressed time and space to generate unprecedented levels of global interconnection.
Types of globalisation
The most commonly discussed and visible types of globalisation, frequently mentioned in both media and political discourse, are:
• Economic Globalisation - integration of national economies through trade, investment, finance, migration, and corporate reach across borders.
• Political Globalisation - spread of political ideologies, policies, institutions, and agreements through intergovernmental organisations like the UN or the WTO.
• Cultural Globalisation - exchange of cultural ideas, traditions, and media through increased intercultural contacts. Cultural globalisation leads to cultural diffusion and influences beyond national borders.
• Technological Globalisation - cross-border transfer of knowledge, methods, and innovations, enabled by communication technologies.
• Ecological Globalisation - environmental interdependence through climate change, pollution, biodiversity loss.
These dimensions are often cited by scholars as the essential aspects of the globalisation process. However, they also have sub-branches and more specific dimensions that may be a little less obvious at first glance.
For instance, scholars have analysed the global spread of diseases, health risks, and wellness trends as an aspect of health globalisation. The emergence of international institutions, military alliances, and arms proliferation falls under military globalisation. The integration of financial systems through trade, banking, and investment markets is studied as financial globalisation. Other sub-branches look at the worldwide spread of religions, languages, innovations, Western consumer culture, and even criminal networks. The nuances are endless, but these examples demonstrate the diverse sub-types and spheres of activity that exhibit globalised patterns.
Major impacts of globalisation
Globalisation has had a major impact on the world economy. The increasing interconnectedness of countries has led to the growth of international trade and investment, with companies and states investing and doing business across borders. This led to the creation of new markets and opportunities for businesses and individuals. Globalisation has also enabled the creation of multinational companies and the development of new products and services.
For example, between 2000 and 2022, global merchandise exports<span class="span"><span id=hint class="box-source">grew</span><div class="popover">Source:<br><br><div>Statista. Trends in global export value of trade in goods from 1950 to 2022. 2023.</div></div></span>from $6.4 trillion to over $24.5 trillion. This shows a significant increase in the growth of global trade. During a similar period, China's exports alone<span class="span"><span id=hint class="box-source">increased</span><div class="popover">Source:<br><br><div>Macrotrends. China Exports 1960-2023. 2023.</div></div></span>from $249 billion to over $3.5 trillion. In 2021, there were over 60,000<span class="span"><span id=hint class="box-source">multinational corporations</span><div class="popover">Source:<br><br><div>World Atlas of Global Issues. Multinational Corporations. 2018.</div></div></span>(MNCs) operating worldwide. These global companies’ operations cover different sectors of the economy, such as technology, retail, financial services, automobile, etc. Notable examples of these multinational companies include Apple, Microsoft, Amazon, Coca-Cola, Toyota, Samsung, IBM, Adidas, to name just a few out of thousands.
Through these and other multinational companies, the development and distribution of innovative products and services across borders has grown rapidly. For example, because of globalisation, companies like Apple and Samsung have been able to introduce advanced smartphones that have become available and sold worldwide. Similarly, globalisation has enabled the development and expansion of e-commerce platforms, with companies such as Amazon, Alibaba, and Shopify, creating and expanding online shopping opportunities for people around the world. Social media platforms such as Facebook, Twitter (now known as X), and Instagram have further connected people around the world. Through these platforms, people around the world are now able to communicate easily and share information instantly.
These examples and statistics show how global trade, the presence of multinational companies, and the introduction of new products and services have been integral to the impacts of globalisation.
<h6 class="textbox" font-size:14px>Huntington, an American social scientist, argued that conflicts in the post-Cold War world would be mainly between civilisations with fundamentally different cultures and values. For example, he predicted growing conflict between Western and Islamic civilisations due to their different worldviews on issues such as the role of religion in society. Huntington suggested that with the end of the Cold War, which had divided the world into communist and capitalist camps, conflicts would now arise over cultural and religious differences rather than just ideology and economics. He believed that civilisations would be the new fault lines along which divisions and conflicts would emerge, as fundamental differences in values and social structures between them would be difficult or even impossible to reconcile through compromise or integration. Since its publication, his view has been at the centre of both academic and political debate.</h6>
Globalisation has also profoundly shaped culture and identity. Increased migration and travel between countries have accelerated the exchange of ideas, traditions, and beliefs. This cultural exchange has led<span class="span"><span id=hint class="box-source">grew</span><div class="popover">Source:<br><br><div>Held, D. et al. Global Transformations: Politics, Economics and Culture. Stanford University Press, 1999.</div></div></span>to more shared experiences and perspectives, blending together local cultural elements with Western consumer culture to create an emerging global culture. However, some<span class="span"><span id=hint class="box-source">argue</span><div class="popover">Source:<br><br><div>Amin, S. Capitalism in the Age of Globalization: The Management of Contemporary Society. Zed Books Ltd., 1996.</div></div></span>this global culture is defined largely by Western traditions, norms and consumption patterns. The concern is that the diverse local and indigenous cultures may disappear over time through cultural homogenisation and Americanisation. Another pessimistic view of multicultural encounters is that of a "clash of civilisations", as explained by Huntington in his 1996<span class="span"><span id=hint class="box-source">book</span><div class="popover">Source:<br><br><div>Huntington, S. The Clash of Civilisations and the Making of the New Order. Penguin, 1997.</div></div></span>of the same name.
Additionally, globalisation has fueled growing economic inequality between nations. While this new interconnected world has generally benefited industrialised countries of the 'Global North' like the United States and Europe, developing countries of the 'Global South' have often been left behind.
However, inequality has also risen within countries, even wealthy ones, as the gains of globalisation have disproportionately affected certain groups. For example, in the US, urban skilled workers have prospered<span class="span"><span id=hint class="box-source">from trade and outsourcing</span><div class="popover">Source:<br><br><div>Dicken, P. Global Shift: Mapping the Changing Contours of the World Economy. Sage Publications, 2019.</div></div></span>while rural unskilled workers and manufacturing communities suffered job losses. As a result of globalisation, the outsourcing of jobs and the import of cheaper goods from developing countries have resulted in the decline of local industries and the loss of jobs in such places.
<h6 class="textbox" font-size:14px>"Global North" and "Global South" are the terms used to refer to a divided world with the economically developed, industrialised countries located in the northern hemisphere (North America, Europe, and parts of Asia) and the less economically developed low-income countries located in the southern hemisphere (Africa, most of Asia, and Latin America). These terms are conceptual: the line between the South and the North has mostly been drawn by Western intellectuals, such as former German chancellor Willy Brandt who famously represented the North-South division with the Brandt Line.</h6>
In addition to economic effects, globalisation has profoundly impacted the environment and health on a global scale. Globalised trade and travel have enabled the quicker spread of diseases across borders, as evidenced by the worldwide spread of HIV or COVID-19. Factors like increased human mobility and transportation of goods have facilitated the transmission of viruses across continents.
At the same time, increased industrial activity, trade, transportation, and consumption contributed to issues like climate change, biodiversity loss, pollution, and resource depletion. It has been suggested that the concentration of carbon dioxide (CO2) in the atmosphere<span class="span"><span id=hint class="box-source">has increased</span><div class="popover">Source:<br><br><div>Intergovernmental Panel on Climate Change. AR5 Synthesis Report: Climate Change 2014. 2015.</div></div></span>by about 47% since the pre-industrial era. This increase is primarily due to human activities such as burning fossil fuels and deforestation. Average global temperatures are<span class="span"><span id=hint class="box-source">estimated to have risen</span><div class="popover">Source:<br><br><div>Intergovernmental Panel on Climate Change. AR5 Synthesis Report: Climate Change 2014. 2015.</div></div></span>by about 1.5 degrees Celsius since the late 19th century due to greenhouse gas emissions from industrial processes and transportation. For example, the burning of fossil fuels for electricity, heat and transportation is<span class="span"><span id=hint class="box-source">believed to be responsible for</span><div class="popover">Source:<br><br><div>EarthCharts. Climate Change: Causation - Emissions Sources.</div></div></span>about 62% of global greenhouse gas emissions in 2015. These environmental impacts in turn affect public health.
In summary, globalisation is a complex and multifaceted phenomenon that impacts virtually every aspect of our lives. While it has brought about many benefits, such as increased trade and investment and the spread of global culture, it also poses significant challenges, including income inequality, the decline of local industries, environmental issues, and the spread of diseases. Additionally, some view the spread of Western consumer culture under globalisation as detrimental to local traditions and identities.
As globalisation continues to evolve, societies worldwide grapple with balancing its opportunities and costs. There are complex challenges ahead in managing this increasingly interconnected world. Diverse voices across academia, government, business and civil society are exploring different ideas to pull back some of the negative aspects of globalisation while optimising its positive consequences.