Globalization Concepts

• Globalization is a process of increasing cross-border interactions and transactions in economic and socio-cultural spheres.
• Globalization includes worldwide integration of markets for goods and services.
• Globalization encompasses the global organization of production processes through transnational companies.
• Globalization shows increasing integration of financial and labor markets.
• Globalization details an increase in cross-border information flows.
• Quantitative vs. Qualitative approaches exist.
• Market (neo-liberal) vs. Politically-controlled processes exist.
• There are non-zero-sum games (all can win) vs. zero-sum games (victory for some = loss for others).

Center-Periphery

• Center-periphery dynamics exist at the world level.
• These dynamics can occur among countries with similar development levels and within every state.
• There is share-holding vs. stake-holding approaches in decision-making.
• Limited state suggestion vs. Fragile (failed) state danger also exist.
• Politics (democratization) and culture should also be included within globalization.
• The role for regional cooperation (defense against globalization or just another name of globalization e.g. EU) is also important.
• At the beginning of the globalization current process (1980s-1990s), the state (state economy relationship) presented different models resulting in different challenges. These models include:
  • Liberal
  • Neo-corporatist
  • Social-democratic
  • “South European"
  • Export-oriented
  • Import-substituting
  • State socialism (communism)

Liberal Model

• This model, seen in the USA, UK, and Canada, prioritizes market forces.
• It minimizes relations between politicians and business leaders.
• The main credit source is the stock exchange.
• This model tolerates higher unemployment but not higher inflation.
• Organized business interests and the labor movement are not viewed as necessary.
• Priority is given to profits over market share.
• This model is highly receptive to globalization.
• The framework premises are free goods, services, capitals, and labor movement.

Neo-Corporatist Model

• This model, seen in Germany, Austria, and Italy, prioritizes politics over market forces.
• Relations between politicians and business leaders are welcome.
• The main source of credit is banks.
• This model does not tolerate high unemployment and is ambivalent toward high inflation.
• Organized business interests and the labor movement are necessary.
• Market share is prioritized over profits.
• The model is not highly receptive to globalization, especially concerning free goods, services, capitals, and labor movement.

Social Democratic Model

• This model, seen in Scandinavian countries, places emphasis on social egalitarianism.
• Market forces work within universal insurance programs.
• The main source of credit is the stock exchange.
• This model is ambivalent toward high unemployment and does not tolerate high inflation.
• Organized business interests and the labor movement are possible but not necessary.
• Market share is prioritized over profits.
• This model is receptive to globalization premises of free goods, services, and capital movement.

“South European” Model

• This is seen in Spain, Portugal, and Greece.
• Society is divided into those who work for the government (high security) and the rest where market rules.
• The source of credit is foreign investments and foreign bank credits.
• It traditionally tolerates toward high unemployment and high inflation.
• Organized business interests and the labor movement are unnecessary in this.
• The model is receptive to different degrees to globalization premises of free goods, services, capitals and labor movement.

Export-Oriented Model

• The economy, seen in Far East Asia, is divided into two parts; those working for the foreign market (market forces) and those working for the domestic market (politics).
• Credit sources are foreign investments or banks.
• Ambivalence is shown toward high unemployment and inflation.
• Organized business interests and the labor movement are not necessary.
• This model is partially receptive (export-oriented) and partially non-receptive (domestic-oriented) to globalization

Import-Substituting Model

• This is seen in Latin America, 1930-1980s, Argentina intermittently until 2023.
• Politics, not market forces, are emphasized.
• Relations between politicians and business leaders are welcome.
• Credit comes from banks under state control.
• This model does not tolerate high unemployment but ambivalence is shown toward high inflation.
• Organized business interests and the labor movement are not necessary.
• There is domestic market protectionism, making this model completely non receptive to globalization premises.

State Socialism Model

• Under state socialism (USSR, Soviet bloc, China until the late 1970s), state ownership of main industries and a planned economy (no market) exist.
• There is no business community independent from the state with organized labor.
• Credit comes from state-owned banks.
• High unemployment and inflation are not tolerated.
• There is a domestic market protectionism and this model is completely non receptive to globalization premises.
• States are either considered winners (no need of profound internal reforms) or losers (incompatible with globalization) with in between shades (according to state-economy model).
• Winners are liberal and social-democratic.
• Losers are state socialism, and import-substitution.
• Ambivalent states (need profound internal reforms) are export-oriented, neo-corporatist, and “Southern Europe.”
• New opportunity for state revival in the age of globalization (since the 1990s) is the emergence of failed (fragile) states and international mobilization and international terrorism). The recent financial crisis of 2008, the migration crisis of 2015, the COVID-19 pandemic of 2020, the environmental crisis, and the recent wars in Ukraine, Caucasus and the Middle East are a part of it.

International Organizations(IOs) and Globalization

• Realist vs. liberal-institutional approaches are different.
• In international relations, IOs can have an ordered world, where order does not exclusively rely on power distribution.
• Globalization empowers IOs (existing and new).
• It then has moving away from power as physical force toward creating international institutions based on common values.
• First established in the 19th century, thousands of IOs exist now and the multiplication process has accelerated after World War II.
• Most IOs are purely intergovernmental with some exceptions.
• Organizations with permanent bodies (e.g. secretariats, expert committees) do not have autonomous power over member states.
• These organizations acknowledge state sovereignty.

Models of IOs

• Intergovernmental Model: States cooperate while maintaining their sovereignty.
• Functional and Neofunctional Model: States delegate functions (with or without further spillover effects) to an international organization.
• Supranational Model: States transfer sovereignty to a higher organization.

United Nations(UN)

• The UN was established following World War II.
• UN now includes almost all independent states plus some autonomous territories.
• Followed the failure of the League of Nations (purely intergovernmental organization).
• The UN goals are to prevent military conflict and to promote international development and cooperation.
• Member states are free to join binding treaties and conventions.
• The Security Council (especially Chapter VII) is the only element within UN with supranational authority.

EU vs UN

• The UN has an increased role in globalization through specialized agencies (WB, IMF) or organizations with a cooperation agreement with UN (GATT/WTO), also acknowledging state sovereignty.
• UN, 80 years following the end of World War II, does not replace nation-states.
• The UN acknowledges states sovereignty and uses “soft power” to induce state behavior in desired directions.
• The EU has the same reasons as UN: keeping peace and promoting prosperity (development), since 1957 (from 6 to 27 European states now, more candidates).
• The European Commission has supremenational powers (agreed by member states), 3 pillars (economic, home affairs and justice, international security), only economic.
• The Economic pillar is subject to supranational authority (qualified majority), other 2 pillars require consensus among EU members.
• The EU promotes limited supranationalism.
• The EU protects itself from unlimited market globalization.
• The UN concentrates on peace and cooperation, universality, and unlimited state sovereignty within its model.
• Regarding the UN, implementing decisions on states happens in very specific situations and those decisions are imposed rarely imposed.
• The states of the EU focus on peace and corporation but states are regional and limited.
• In the EU states maintain sovereignty, but states have the possibilit to increase and decrease the scope of activities where the states are not in control.
• This means that EU decisions can be imposed frequently, but must be by consensus.
• Neofunctional Model creates supranational authority authority in particular sectors, with (EU) or without UN possibility of enlargement (spillover).
• Supranational transfers political decision making from state level to supremenational authority.
• Supranational authority is very rare.

Civil Society

• Civil society is a community of citizens linked by common interests and (possible) collective action (working together to achieve common goal), means vary from peaceful discussion to violent revolution and anything in between.
• Globalization empowers civil society compared to state actors.
• Globalization increases "problem of collective action” which is also known as "free-rider problem”.
• Increased difficulty for particular policy outcomes (public good) due to individuals not feeling driven to participate.
• People do not participate in individual action (time, money, other resources) because globalization creates free-riders, without creating more people who collectively promote and maintain public goods.

State-Society Models

• Liberal Model: the state allow civil society self-organization as long as it does not threatens the public order.
• Neo-Corporatist Model: the state allows civil society organization, but these organizations are frequently monopolistic in particular area.
• State Dirigiste Model: the state tolerates independent civil society organization, these organizations are highly politicized, state tries to promote public policy independently from social pressures.
• Authoritarian Model: Independent civil society organizations are not tolerated for their organized social pressure.
• Totalitarian Model: State enforces all aspects and participation of social organization. Policy comes from centralized leadership.
• In globalization, the following state-civil society models also fall into large groups of winners and losers with intermediate shades:
  • Winners are liberal
  • Losers are authoritarian and totalitarian.
  • Ambivalent are neo-corporatism, dirigisme.

Local Communities and Globalization

• Local communities are a group of people living in a specific area (smaller than nation-state), sharing common interests and values which is different from civil society.
• Globalization empowers local communities.
• Globalization is the rise of multiculturalism (interculturalism) and a global cultural melting-pot.
• Trends since 1945 include
  • National-liberation movements (a.k.a. decolonization)
  • UN members increase from 51 to 193 (only 20 ethnically homogeneous states), over 3,000 ethnic groups.
  • There are over 7,000 languages (e.g. Kurds - 30 million; Romani - 12 million)
  • The recent revival of local cultures in different areas (European Union, Americas, Russia)
• United Nations
  • Declares international decades of indigenous peoples (1995-2004; 2005-2014).
  • Declared the international decade of indigenous languages (2022-2032.

Relationship Models and effects on local communities

• Liberal model: a 19th-century trend to assimilate minorities was considered progressive and the process took over 100 years. Liberal democracy is synonymous with majoritarianism were some minority groups remain permanently in minority.
• Since World War II
• Majortarian vision of liberal democacy has gradually been replaced by consensual representation.
• Canada shows that the path in the last 2 centuries includes assimilation of minorities to official multiculturalism. In Quebec, Indigenous people have been progressively enfranchised and recognized with autonomy.
• Authoritarian model: The state does not tolerate local communities, opting instead for support from the (always) largest ethnic group.
• Totalitarian Model: To treat the treatment reserved to local communities under totalitarian control.

Cultural Effect of Globalization

• Cultures may be affected by use of global languages.
• Local communities may lack the resources to keep cultures alive.
• 3,000 languages (43% ) spoken by 88 million people are considered endangered and most likely to extinct in 50-100 years

Explore core concepts of globalization, including non-zero-sum game perspectives, political and cultural dimensions, and the stake-holding approach. Understand the role of regional cooperation agreements and the relationship between globalization and local communities. Examine models of state-society relationships and the evolving landscape of the United Nations.