Geography Reference
In-Depth Information
Globalization's dimensions
Twelve dimensions of trends in globalization can be identified that are
changing the scale of influence on, and political economic power over,
people's livelihoods and their interactions. The previous era's political
economic systems and networks functioned largely at the level of the
state or within state boundaries. This post-1980s era functions at the
supranational and transnational levels, with global-to-local interactions
occurring too. Though not in order of descending importance, they are:
•
Financial globalization
The 24-hours-a-day, 7-days-a-week world
market for international financial transactions among world cities,
moved capital (money) in quantities and at speeds never previously
encountered. A complete deregulation of international financial
markets occurred, which encouraged the growth of unscrupulous
financial intermediaries to manage hedge funds, subprime
mortgage-debt bundles and other kinds of 'fictitious capital' (Roberts,
1995). Though the ensuing investment practices brought spectacular
gains to the privileged insiders and investor classes playing the mar-
kets, there was a general lack of global, or even national, account-
ability in such unruly trading practices.
•
Globalization of corporate power
Mega-mergers and oligopolies have
increased transnational corporations' political power over nation
states. The wealth of major global corporations now exceeds that of
most nations. This extremely rapid capital accumulation is encour-
aging global investments, corruption, natural resources expropria-
tion and 'predatory capitalism' (Annan, 2000).
•
Technological globalization
Combinations of information and com-
munication technologies (including satellite links) are producing and
transferring data and information across the cyber-connected world
at unprecedented rates. Communications and IT technology innova-
tions are unevenly shared globally, thereby causing a 'digital divide'
between the 'haves' and the 'have nots'.
•
Political globalization
The diffusion of the political-economic ideol-
ogy of neoliberalism, or laissez-faire free-trade economic agendas,
has promoted deregulation, privatization, and the opening of pro-
tected national economies to create free markets. The role of nation
state governments is to create and preserve institutional frame-
works appropriate to the above practices.
•
Economic globalization
The development of new, flexible, integrated
production and commercial systems is enabling transnational
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