Globalisation History Gr12 PDF

Topic Unit X XX 31 A new world order Key question: What were the long-term effects of the ending of the Cold War? Globalisation What was the nature of the post-Cold War World? Many argued that the end of the Cold War represented a new beginning in international politics. Since both the Soviet Union...

Topic Unit X XX 31 A new world order Key question: What were the long-term effects of the ending of the Cold War? Globalisation What was the nature of the post-Cold War World? Many argued that the end of the Cold War represented a new beginning in international politics. Since both the Soviet Union had broken up and the Soviet Bloc collapsed, there was a belief that the West had ‘won’ the Cold War. For the 40 years during the Cold War people understood the world as divided into East and West, Communist and Democratic. What could replace this type of thinking after the Cold War? The American-Japanese thinker, Francis Fukuyama, offered a solution. He suggested two things would become important to people after the Cold War: 1 2 The right to participate in a market-based economy – he believed that an economic policy which supported the market contributed towards the end of Communism. Fukuyama’s thinking on the end of the Cold War influenced the course of events for more than ten years. The right to exercise democracy: citizens all over the world would want the right to elect the governments that would rule them. Fukuyama’s thinking reinforced the neo-liberal view that markets – rather than states – should be the primary factor in determining all economic relationships. So, while states were still central to the way in which the world was organised, internationally, another way of organising social relationships was necessary. This was to be through the market → called Globalisation. Globalisation Globalisation argued that all social relationships could take place across the world. States as political entities were no longer thought to be essential. It meant the end of the Cold War and the victory of the US over the USSR. Led to increased trade between countries as trade restrictions were removed. Electronic communication, e.g. the internet, the world wide web and e-mail led to globalisation. 140 © Via Afrika Publishers » History 12 Study Guide eBook Unit 3 Impact of electronic communication The impact of electronic communication was far-reaching, for example, money could be immediately transferred and traded without the consideration of working hours. Time was no longer a limitation in trading either in products, finance or services. It certainly seemed like the world became ‘smaller’. The change in international relations After the Cold War, the experience of the United States and its Western allies was of victory. The revival of The North Atlantic Treaty Organisation (NATO) While its Cold War opposite, the Warsaw Pact, was disbanded at a meeting of East European defence and foreign ministers in July 1991, NATO did not disband. NATO had been established in 1948 to defend the interests of North America and Europe. Former members of the Warsaw Pact, though not all of them, ended up joining NATO. Its revival suggested how the global ‘balance of power’ had changed: no longer was the world caught in a ‘balance’ of Cold War power. INSTEAD it had become dominated by a single country. Effectively, all power – political, economic, military and cultural – turned around a single country, the USA. This had serious implications for the Third World (or the Global South) countries: following the Bandung Conference of 1955, the Non-Aligned Movement (NAM) was formed, suggesting that – despite the intensity of the Cold War divide – it was possible for there to be a third position in international relations. The term ‘Non-Alignment’ captured this position: they were not aligned either with Communism or Capitalism. Although NAM undoubtedly had an impact on the ending of the Cold War, unfortunately a series of crises weakened the movement and it failed to influence the nature of international relations after the Cold War. SO: the world remained unipolar with the US as the leading power. But the impact of this across the world was significant because it seemed that Third World countries started to settle disputes. © Via Afrika Publishers » History 12 Study Guide eBook 141 Unit 3 The African context South Africa – The ending of the Cold War drove a process of accommodation and reconciliation. By the time Nelson Mandela became president of SA in 1994, Southern Africa, after decades of conflict, was at peace. Rwanda – As Mandela was taking the oath of office, Africa’s worst ever genocide was taking place. Between April – June of 1994, an estimated 800 000 Rwandans were killed. Most were members of the Tutsi tribe, with much of the violence perpetrated by the Hutus. The genocide caused deep trauma throughout the world, with the United Nations failing to intervene. Mozambique – It had a long-standing association with the Soviet Bloc, but after the Cold War, had to rethink both its foreign and economic policies. The growing importance of markets ended the state sponsorship of many areas of its national life, including health, education and welfare. The importance of democracy as a way to attract foreign investment and development aid, put pressure on the FRELIMO government to seek ways of accommodating its long-term rival, RENAMO. Eventually, its first-ever democratic elections were held in 1994, which were won by FRELIMO. Zambia – It also experienced its first-ever multi-party democratic election, where Kenneth Kaunda, who had been Zambia’s head of state since 1964, lost power after 27 years in power. Elsewhere in southern Africa – demands for multiparty democracy were on the move. In neighbouring Malawi, the first multiparty elections held in the country for 30 years saw the defeat of the country’s long-time president, Hastings Kamuzu Banda. North–South relations After the Cold War ended, North-South relations were instead determined by the belief that markets were the best way to guarantee economic development. Results: 142 State spending on welfare, education and health was cut. Where appropriate, state institutions were opened to private investment while Third World economies opened to market forces. There was also pressure to end one-party rule throughout Africa. © Via Afrika Publishers » History 12 Study Guide eBook Unit 3 Global capitalism and resistance Since the Second World War, the international economic system had been organised around the Bretton Woods institutions – the International Monetary Fund (IMF) and the World Bank (officially known as the International Bank for Reconstruction and Development). By the time the Cold War ended, they were enthusiastic supporters of neo-liberal, market-centred economic thought and strong supporters of globalisation. The Bretton Woods institutions and globalisation The IMF and World Bank developed policies that allowed market forces to determine political and economic outcomes. Their approach freed up the constraints on trade by removing national barriers, especially at the national level. It also encouraged individual countries to free up markets. The World Trade Organisation (WTO) played an important role in this opening up of global markets. Established in 1995, the WTO was responsible for making the rules of trade between countries and for the settlement of trade disputes between them. The WTO’s policies enthusiastically supported the idea of globalisation, which made it the target of mass demonstrations from anti-Globalisation groups. These groups were concerned that the process of globalisation increased the power of rich states and weakened the position of the poor. They also believed globalisation was destroying cultural diversity in the world, as the language of globalisation was English, with American culture in particular spreading throughout the world via television, leaving local culture unable to compete. The frequent anti-globalisation demonstrations suggested that the idea of neo-liberal globalisation, although it was seen to be the ‘logical’ way to run the world after the Cold War, was not accepted by everyone. Instead, it was viewed as a destructive force, increasing the power of the rich and weakening the power of the poor. New forms of capitalism: The rise of emerging markets Some countries even resisted efforts that encouraged them to embrace globalisation. Increasingly the following countries have been called ‘emerging markets’: places where economic growth is underway when, in the Global North, growth was slow and falling. Malaysia – In 1997 the government went against advice from the IMF who said that their approach would make their economic problems worse. In the end, however, the Malaysian government was shown to be correct. © Via Afrika Publishers » History 12 Study Guide eBook 143 Unit 3 China – Saw a different approach to the link between liberal democracy and economic growth. The Communist Party government promoted free market policies to improve the country’s economic performance, but it resisted any efforts that encouraged the development of liberal democracy. There was a brutal crackdown on pro-democracy demonstrators in Beijing’s Tiananmen Square in June 1989, with many killed, but despite this, the Chinese government soon resumed economic relations with the major world powers. The Chinese model of globalisation has changed the direction of the country’s economic fortunes. India – Regarded as one of the great economic success stories of the post-Cold War period. The lifting of government restrictions on trade, and especially on industry, ended a long period of socialist planning. However, India’s government has continued to support the development of roads and its educational system. The incomes of India’s people have increased overall but so has the gap between the rich and the poor. Russia – Here, policies that supported economic liberalisation were strongly promoted, But the Russian economic experience with neo-liberalism ended largely in failure: corruption was high and the gap between the rich and poor increased. Nevertheless, the country is rich in natural resources and the promises of its economic success have kept the Russian economy alive. Brazil – It, too, has had to carefully steer a path between opening up the country to market forces, while at the same time balancing government concern for the health, education and welfare of its people. Brazil is a country very rich in resources, but the divide between the country’s richest and poorest people is a cause for great concern. Fortunately, its efforts to bring democracy to the country have been a great success. BRICS Today, Brazil, Russia, India, China, together with South Africa, make up a loose international grouping called the BRICS: 144 The four countries (Brazil, Russia, India and China) showed that free markets alone were not the best way to provide for people or to ensure continuous economic growth. South Africa officially became a member nation on December 24, 2010. The idea of the grouping is based on the belief that by the year 2032, the economic power of these countries together will overtake the six largest Western economies. These countries showed that a ‘mixed’ economy could create jobs and satisfy social needs. This is a return to the ideas of Keynesian economics and is different from what Fukuyama argued and different too from the claims of globalisation. © Via Afrika Publishers » History 12 Study Guide eBook Unit 3 Challenges facing the ‘new’ South Africa The discussions around the best economic system to adopt after the end of the Cold War affected SA too. In the years immediately after Nelson Mandela’s inauguration on 10 May 1994, South Africa’s attention was focused on other issues: most importantly – how to bring previously conflicting groups together in order to build a united country. The idea that SA was a ‘Rainbow Nation’ – a country that embraced all colours (races) – was a powerful metaphor in the process. However there were particular challenges: Reconciliation Economic reconstruction. Reconciliation: The Truth and Reconciliation Commission (TRC): Established in 1994 the TRC was led by Archbishop Desmond Tutu. The country’s new Constitution reinforced the reconciliatory policy of President Mandela: → the establishment of the TRC went some way both to explaining what had happened during apartheid and finding a way to bring people to confront what had happened to them. It reported terrible cases of torture and killing by apartheid forces: was able to grant amnesty to people, from all sides, who had committed crimes that were politically motivated. Although it was strongly criticised, the TRC is considered to have contributed to the country’s way forward. Economic reconstruction It was far more difficult to decide on a policy that would address apartheid’s core legacy of white wealth and black poverty. Historically, both the ANC and the National Party had embraced Socialism. But from the 1970s onwards the National Party had moved towards freeing up certain areas of the country’s economy. This move quickened in the 1980s when, wishing to get close to the Cold War-thinking of both Margaret Thatcher and Ronald Reagan, the apartheid government embraced the idea of neo-liberal economics. © Via Afrika Publishers » History 12 Study Guide eBook 145 Unit ANC economic approach 3 Positioned on the other side of the Cold War divide, the ANC was distinctly Socialist in its economic thinking. As ideas around economics changed, so did the approach by many in the movement to the ways in which the economy should be managed. The United Democratic Front – said to be the internal wing of the ANC – embraced even wider thinking on the question of the economy and its future. On its election to power, the ANC announced an economic policy called the Reconstruction and Development Programme (RDP), which was Keynesian. The Reconstruction and Development Programme (RDP): It aimed to tackle the legacy of apartheid and to address the huge differences between education, health, housing and welfare between blacks and whites. It also aimed to develop the country’s infrastructure. But it was inconsistent in its approach to financing the policy because it hoped, on the one hand, to deliver more to the country’s citizens while, on the other, not collecting enough in taxes to pay for them. BUT Ultimately, in 1996, South Africa’s then Deputy President, Thabo Mbeki, announced a new policy, called Growth Employment And Redistribution (GEAR), which changed the direction of the country’s economic policy more towards the market. Pressured by the World Bank and IMF, its aim was to generate high economic growth, which would hopefully create jobs and higher incomes. Unfortunately, the policy was not a great success and, as it has in many parts of the world, increased the gap between South Africa’s rich and its poor. The country’s failure to grow economically increased the possibility for social unrest and instability. This resulted in a further change in thinking around economics, which fostered the idea of the role of government supporting a ‘Developmental State’. This returned the priorities of the government towards those that were imagined under the RDP, signalling a greater involvement by the state in the economy. 146 © Via Afrika Publishers » History 12 Study Guide eBook Unit 3 New threats to global order While the idea of globalisation got people to talk about what the post-Cold War world would look like, it generated a lot of resistance to it. A greater threat to the idea of globalisation came from the break-up of states, for example, the Soviet Union, and also Yugoslavia. The split of Yugoslavia led to the first war in Europe in almost 50 years. The events in the Balkans ran for 7 years between 1990 and 1997. It was a very cruel and bitter war and involved ‘ethnic cleansing’: a process in which people of one group are violently removed from one place to another. The Balkan Wars finally ended with a peace treaty signed in Dayton, in the American state of Ohio. The break-up both of Yugoslavia and of the Soviet Union presented an important challenge to post-Cold War thinking. → Were concerns for local issues more important than the common interests that seemed to be promoted by globalisation? Result: the idea of localisation – being concerned with the immediate surroundings – was set against the idea of globalisation. At the centre of this debate was the question of identity, and so came the rise of a new and powerful form of politics, identity politics. → Based on the ideas of Samuel P. Huntington in his book The Clash of Civilizations, written in response to Fukuyama’s idea of The End of History. = In the 1990s, the Balkans became a dividing line for a new issue in the post-Cold War world. This was the divide between the Western World and the Islamic World. Huntington’s ideas The future of the world would be determined by the failure of people to live together because they believed in different things: This was based on the extremes of belief on both sides of a divide between Christianity and Islam. In the United States in particular, Christian extremism was drawn into both democratic politics and the politics of America’s place in the world. → The idea of ‘Terrorism’ as a threat to the post-Cold War world would grow both in the US and elsewhere in the West. It increasingly referred to individuals or groupings that were opposed to the West and its way of life. This explains the name “terrorist organisation” given to the Muslim-based militant organisation called Al-Qaeda, led by Osama bin Laden. Interested in conducting a Jihad against the USA, bin Laden hoped to draw the country into a long conflict that would help to end America’s economic system. © Via Afrika Publishers » History 12 Study Guide eBook 147 Unit 3 9/11 and the “Global War on Terror” In 2001 it was Al-Qaeda who planned and executed the first attack on the US in 60 years: These were the air-born suicide attacks on 11 September 2001 on the twin towers of the World Trade Centre in New York. Together with the two other attacks on the same day these events are known as “9/11”. America’s president, George W. Bush, wasted global sympathy for the US by quickly declaring WAR. Five days after 9/11, Bush called for a ‘crusade’ against Al-Qaeda, which was an organised military campaign led by the USA and its closest ally, Great Britain. A month after the 9/11 attacks, the USA and its allies invaded Afghanistan, the country seen to be the main supporter of bin Laden and Al-Qaeda. Iraq invasion: In March 2003, the US, this time without its allies, invaded Iraq to oust their president, Saddam Hussein. America’s response to 9/11 led to the country fighting in many parts of the world: apart from Afghanistan and Iraq, they conducted operations in the Philippines, the Horn of Africa, the Sahara, Pakistan, Kashmir, and Yemen. The coming agenda The ‘War on Terror’ – which has spread across the world – may be worsening the two challenges that we all face: Economic: The gap between the rich and the poor, not only within individual countries, but globally as well, is constantly growing. The result of this uneven distribution of global wealth (known as ‘global apartheid’) is more violence, both within and between states. In addition: market-driven capitalism is in crisis with failing levels of confidence in the idea of debt, which for 20 years has fuelled global economic growth. The environment: It raises questions of the capacity of the planet Earth to carry and sustain life on Earth. Civil society responses to both these issues are increasingly organised on a global level. Some of these movements are organised around the idea of protestation, while others have involved themselves in the difficult task of educating people all over the world to live differently from the way they currently live. 148 © Via Afrika Publishers » History 12 Study Guide eBook