Reading 2 - Foundations of Globalization PDF

3 Setting the Stage Foundations Globalization Objectives This chapter explains the foundations of the global economic, political, and cultural systems. It will help you analyze the diffusion of the nation-state from the understand the emergence of global culture related...

3 Setting the Stage Foundations Globalization Objectives This chapter explains the foundations of help you analyze the diffusion of the nation-state from the Treaty of Westphalia to the wave of contemporary nation-state building; evaluate constitutions in relation to their confor- mity to global ideals of state structure, the rights of citizens; assess the role of colonialism in shaping a global political and economic hierarchy of societies; evaluate the long-term impacts of colonialism and the Cold War on economic and political development; G lobalization is the integration and dence among people across societies. stages of contact among societies, resources, ucts, and ideas were exchanged through trade and travel, but this did not constitute globalization. For example, cultural diffusion occurred regularly along the Silk Road as societies adopted material items and religious beliefs of other societies. This in itself is not globalization because the internal systems of one society were not dependent on the other, even though they were related. In contrast, the decline of religious authority and assertions of national sovereignty, the 60 necessity and capacity of capitalism for expansion, and the diffusion of ideas of liberalization, rational- ization, and human rights integrated the world more and more tightly. Although theorists of globalization differ on when globalization as a distinct process began, as discussed in the first and second chapters in detail, the foundations of economic and political global- ization as presented in this chapter are important in understanding all of the dimensions and how the variety of theories apply to understanding the cur- rent state of the globe. Waves of Nationhood The Germinal Phase: The Treaty of Westphalia and the Principle of Sovereignty A community is a group of people who have something in common. Traditionally, that has been a land that they share, from which they derive sus- tenance and a common set of values and rules that arose as they figured out how they would share the land and its resources to ensure their survival. As the interactions among small communities increased, their interdependence did as well. This enlarged their sense of community and from this grew the concept of a nation. Community remains the basis of a nation, a people who feel they share a common identity and belong together (Weber 1921/1978, 395–398). The idea of nation developed gradually as the way of identifying an “us.” In some respects, nations and states grew out of warfare. Europe experienced near continual warfare, from the Hundred Years War between France and Britain in the 14th century to the Thirty Years War that engulfed all of Europe in the 17th. These were a series of religious and political wars that devastated Europe for centu- ries. Weakened by its own corruption, the Holy Roman Empire disintegrated as the patchwork of princely dominions in Europe fought against the empire and one another for sovereignty, ter- ritory, and freedom. Through these wars, the nation became the protector of its people against the Empire and other nations. National identity became a locus of individual identity. As the wars raged, the idea of empire—one rule or ruler 62——Globalization The activity of a state outside of its own boundaries and the treatment of individuals who were not citi- zens were not expected to conform to the same standards as a state’s activity within its borders or the treatment of its own citizens. Groups and other non-state actors contest territorial borders (Held Although peace in Europe was not lasting, the Treaty of Westphalia established the principle of state sovereignty and the basis of global for centuries to come. Monarchs granted and one another the authority to speak for, make commitments for, and sign treaties on behalf people they claimed to represent. In return, they obligated themselves to care for the common good, protecting people’s security, economy, interests. States granted themselves a monopoly the use of violence within their borders, and the right to use violence in protection of their Without the power to compel people to act, states could not make promises on the international To facilitate international relations and sovereignty, whoever controlled power within a territory—regardless of how it was acquired—w recognized as the head of state. The state an anthropomorphic character, as the primary on domestic and international fronts, straints and opportunities for other, sub-state and one another. Nations invented state sovereignty to to Europe. Ironically, the treaty presented challenge to sovereignty as well. Recognition sovereign depends on recognition by other sover- eigns. This always comes with conditions sovereignty at the same time that it grants “states are required to control their willing to participate in a system of internation law” (Donnelley 2007, 250). This is the of global governance and culture. Expanding the System of States System to the Americas Colonialism is the economic, political, and social domination of the people within a territory by another country. The mechanical revolution in Europe gave European states a competitive advantage to reach out and conquer people on other continents. At one time or another, Europeans, and in a more limited based on a constitution that has proved remark- ably resilient for well over two hundred years. In South and Central America, autocracy and oligarchy replaced colonial governments. In most Latin American countries, democracy did not stabilize— often hampered by external interference—until rela- tively recently, in the 1980s and 1990s. Colonization of Asia also began during this period, first with Russian incursions in the 16th century and Portuguese incursions in the 17th, followed by the Dutch, British, and French. The early colonization was very limited. Unlike their efforts in the Americas, European posts in Asia were means of facilitating and controlling trade, and were concentrated along the coasts. The Dutch East India Company, British East India Company, and French East India Company competed for control of the lucrative trade in Asian exotics, such as spices, silks, tea, porcelain, gems, and ivory. They were effectively the colonizers and administrators of their countries’ colonies. The situation was similar, but more das- tardly, in Africa. Europeans interest was primarily in establishing trading posts and routes; unfortunately, it was primarily for slave trade. Aside from a few colonies in Africa in the 17th and 18th centuries, most notably the Dutch and then British in Cape Town and the Portuguese in Angola, the real colonization of Africa was not until the 1870s, coinciding with the colonial push inland into Asian countries. As the North and South American colonies gained independence and industrialization created a pressing need for resources and markets, competition among Europeans for territory in Africa and Asia— continents of diverse cultures, but few modern state borders—was fierce. The French, English, Portuguese, and Spanish were joined by Italian, Belgian, and Dutch powers, staking out territories and drawing political borders across the continents, ignoring the ethnic and religious identities and geographic bound- aries that provided the basis for nationhood through- out Europe. (The USSR did the same as it moved through Central Asia and Eastern Europe in the 20th century.) Most of the colonies enclosed diverse cul- tures within the same arbitrarily drawn borders. Borders united disparate groups, binding them into a common political territory and bisected cultural groups, separating them into different political units. Border disputes remain today, pitting those who want a return to older, ethnically based areas against those who favor the colonial borders. 64——Globalization BOX 3.1 A Closer Look: Ethnic The abundant ethic mix of Africa stands and you can see how ethnic borders were could borders have been drawn differently? conflict-ridden and tense political dynamics. Source: Library of Congress. over another, was common and left a legacy of ethnic divide and strife throughout Africa. In 1945, over 750 million people were living in colonial or occupied territories. This was about one third of the world’s population. Following WWII, colonization in Africa and South East Asia was not sustainable. Europe’s and Japan’s energies were occu- pied with rebuilding their countries. Furthermore, colonization violated the normative standards of the Universal Declaration of Human Rights. However, independence did not follow immediately on the heels of the war. In 1960, the UN General Assembly most of the colonies through the mid-1960s into the 1970s. Left with environments ravaged by colonialism, the education of most populations neglected, severe ethnic and religious tensions, an infrastructure based on the export of a variety of agricultural crops and minerals, and weak or no democratic institutions, most colonies were unprepared for statehood or economic prosperity. Who could or would run the government and the industries? Who could lead the countries into the 21st century? Unfortunately, these questions were answered by continuing patterns of domination determined by the resource and strategic needs of richer countries. Colonization created a politico-economic sys- tem that encircled the globe but was based on forceful domination. It was a system founded neither on normative grounds nor on anarchy among equal and sovereign nation-states. It estab- lished a legacy that forms the basis of the global economy by positioning some countries as sources of resources, cheap labor, and markets. It left a political legacy of weak governments run by oli- garchies, monarchies, or dictators eager for the rewards that resource wealth and strategic alli- ances can bring. Spreading the Nation-State East Nationalism spread from Europe to the Ottoman Empire. Corruption of the sultanate and economic stagnation fueled nationalistic movements. Monarchies with bureaucratic struc- tures, similar to those that had developed in Europe, evolved within the Ottoman areas of Eastern and Central Europe. Greece declared independence in 1821, but in most of the empire, nationalism did not assert itself until part of the19th and early 20th centuries, marking the beginning of a third wave of nation-state building. The empire attempted to stave off rebel- lion by modernizing institutions, improving edu- cation, and introducing constitutional reforms to grant more autonomy and rights to various popu- lations—modeling Western forms—but they were not enough to hold the empire together. Corrupt, incompetent, and ineffective rule had damaged the authority of the sultanate beyond repair. 66——Globalization and among societies. Trade can be important for survival. If one person experiences drought and a neighbor experiences plenty, exchange may mean the difference between life and death, providing the person in need has something to trade, money to buy what is needed, credit, or the ability to appeal to the other’s humanitarian impulses. Trade over national borders can improve the quality of life by making goods available that are not produced domestically or are available at a lower cost/higher quality. Trade among societies is ancient. The Silk Road encompassed nearly all the world known to those who traveled it. For close to 2,000 years, from ancient times into the 16th century, it connected Asia, the Middle East, and Europe first by land and later by land and sea. Trade was extensive, extend- ing into Africa as well. Some theorists date global- ization to that era. Societies that traded along the Silk Road were not highly interdependent economi- cally, but cultural diffusion was high. During this period, goods flowed primarily from East to West. Asia—China and India in par- ticular—had developed export economies pro- ducing large quantities of artisan goods. Textiles, ceramics, glass, mechanical clocks, paper, gun- powder, compasses, and much more were eagerly sought by Europeans. Asia’s agricultural surplus was also valuable to Europe. By some accounts, Asia was producing upward of three quarters of the world’s gross national product (GNP), with BOX 3.2 A Closer Look: Oil and Coffee The modern economy runs on oil. It is products,” chocolate, coffee, and tea, ond most traded commodity. The story of global forces create micro effects. In agricultural worker. In 2000, coffee prices fell, pushing America out of business. The entry of coffee production had been increasing 1995 to 2000. This flood of coffee dramatically depend on coffee exports. Thousands of ing refugee camps. Although the World Bank has been accused tion in Vietnam, there were other forces financial markets determined coffee prices Coffee Producing Countries (ACPC). Competition resulted in expansion of low-grade coffee The Vietnamese government endorsed the (Greenfield 2004). Expansion of Mercantile Capitalism Although many ancient and medieval traders got very rich, the advent of capitalism changed the nature of trade and the nature of globalization. In a capitalist system, it is the obligation of a corporation to make a profit for shareholders. Striving to maxi- mize profit is more than an objective; it is an ethic. Profit accumulation is the goal of every phase of a capitalist enterprise. The first multinational corpora- tions were the Dutch and British East India Companies. In 1600, the British East India Company formed from a coalition of smaller British spice trad- ers. Their intent was to establish a monopoly and drive the Dutch—who had fought the Portuguese for the spice trade—out of business. The Dutch responded by forming the Dutch East India Company two years later. It was the first company to issue stock. Its charter gave it a monopoly and ity to coin money, establish colonies, and do what was needed to maximize profit, including wage war. Trade routes became militarized. The British East India Company followed suit, acquiring the same powers and a very privileged position in the British economy. The Dutch and British East India Companies are examples of merchant capital- ism. The capitalist dimension of their enterprises, aside from a few factories, was limited to trade. The Atlantic, the Mediterranean, and the Indian Ocean connected in a complex web of commodity trading and currency flows financed by merchants and bankers and under the protection of their states. The quest for new forms of profit was critical to the expansion of capitalism. With extensive colonization, industrialization, and urbanization, the quest for profit could be applied more extensively in economic 68——Globalization The legacy of colonial systems has been long lived, influencing economic development and the position of societies in the global economy to this day. European immigrants with varying motivations rushed to populate and settle the colonies in the Americas, some to escape their nation and some in the name of it. The sparse population, richness of resources, and clemency of weather made these lands amenable as settler colonies. Patterns of settle- ments varied. South America and the Caribbean were suitable for large-scale production of cash crops. Plantation systems developed using African slaves. This established land inequality well above the world norms and is reflected in high levels inequality today. Similar dynamics, stemming from the plantation system, slavery, and historic inequali- ties, have persisted in the southern states of the United States. The northern states, with conditions not as favorable to producing large cash crops via cheap indigenous or slave labor, adopted an agricul- tural system of small landowners and relied on more favorable distributions of land to attract more immi- gration. It remains more equal today. Maintaining the Americas as colonies was diffi- cult. Distance was one problem; another arose because they were primarily settler colonies, and settlers—particularly in the British colonies of North America—were infused with ideas of the rights of man. The American colonies achieved political independence in the late 18th century and first decades of the 19th. By then, the Industrial Revolution was well underway. As industrialization increased, European populations grew, rivalry among European nations intensified, and the demand for food and greater variety of raw materi- als reached unprecedented levels very quickly (Wells 1920/1956, 804). Demand, along with improve- ments in transportation and the emergence of inter national finance capital, doubled international trade from 1870 and 1890, despite adoption of protec- tionist policies by many European nations (Topik 2005, 3–4). Europe turned to the Americas to feed its demand. The Americas helped by supplying agricultural and other exports. Europe’s need made the plantations particularly valuable and further solidified the power of familial and multinational oligarchies. “The republics of South America, particularly the Argentine Republic began to feel in their cattle trade and coffee growing, the nearness of the European for settlers, large plantations, and cash crops. But there was still money to be made in these colonies. In these areas colonists did not intervene directly into the production process but concentrated their rent seeking [seeking money through exploitation or manipulation rather than by adding any value by your own work] efforts on collecting taxes, engag- ing in the trade and exploitation of natural resource. (Frankema 2006, 17) The elite class did not develop in the agricultural sector with large powerful landowners. It developed in the urban institutional bureaucracy, through seiz- ing political power to tax and control trade in resources. The urban class grew wealthy at the expense of the rural. In these cases, the bureaucratic apparatus of admin- istration generated inequality. Small groups were paid well to manage enterprises and maintain a military presence for the colonizing country. They became an extremely wealthy and powerful elite class. Often, eth- nic, religious, or tribal lines were exploited by coloniz- ers to divide indigenous populations, one group being chosen to manage the colony and the other(s) to work it. This also explains the somewhat better fate of colo- nies that were plantations than those that were rent- seeking bureaucracies. Where elites depended on control of the bureaucracy for wealth and power, they have been less willing to give up control and are willing to bear the costs of violent oppression and armed con- flict to maintain their power. Their income derives exclusively from coercive political power (Frankema 2006, 16). We are witness to this legacy in the extreme oppression and violent ethnic conflict in Africa today. In Asian colonies, Europeans were joined in imperialism by Russia, Japan, and the United States. However, on independence, some achieved dra- matic success in little time. The Asian Tigers sur- passed colonies of Latin America and Africa in BOX 3.3 Check It Out Yourself: For a quick idea of how colonization relationship between colonization and by date of their independence and their it appear that more recent dates of independence the ways that outliers have achieved 70——Globalization Societies that were wealthier and more densely populated had large populations that supplied labor for agriculture and mining. They could also be taxed. These societies developed sophisticated institutions that concentrated power European settlers, rather than disturb appropriated it and used it to enrich themselves. This left a legacy in which only a small elite had property rights. This is similar to the legacy of the plantation system and mining in South America and Africa. Where societies were less densely populated, many colonizers settled. In these cases, property rights were spread through the society. Institutions that protected the property rights of individuals aged entrepreneurship and investment. granted few rights for most of the population dis- couraged them. They are both essential for indus- trialization; the first significant opportunity for societies to enrich themselves. (Acemoglu et al. 2002, 1235–1236, 1279) BOX 3.4 A Closer Look: Kennedy On June 26, 1963, President John F. Kennedy the shadow of the Berlin Wall. As he paid crowd roared with approval on hearing Berliner). The Berlin Wall came down on Neo-Colonialism and Cold War Strategic Advantage As colonization was winding down, the Cold War was heating up. Competition between the United States, the USSR, and their allies shaped global geo- politics and economics through the making and breaking of strategic alliances. Decolonization pitted the United States against the USSR in a contest for the hearts, minds, and allegiance of the newly inde- pendent nations. In Latin America and in countries that had avoided becoming colonies, such as China, Iran, Ethiopia, and Afghanistan, the Cold War polar- ized efforts at political, economic, and social change (Painter 2007, 3). In exchange for an alliance with one of the superpowers, the leaders of a nation could expect to reap economic and political benefit. For the leaders of states, the benefits included financial favor and military support. Many dictators grew wealthy at the expense of their countries and Economies throughout South America, Southeast Asia, Latin America, and Africa grew skewed to the export of primary resources and low value-added manufacturing and the import of many foods and higher cost manufactured goods. International financial activity, including direct loans from the Soviet Union, Cuba, the United States, other devel- oped nations, and international financial organiza- tions, facilitated this. Although the World Bank and IMF are declared politically neutral, loans tended to BOX 3.5 A Closer Look: Revolutionary Hero Although called the “Cold” War, real wars were fought by proxy throughout the world. In countries such as Nicaragua and El Salvador, the United States and USSR supported revolutionary movements of the left (socialist or communist) as they tried to overturn dictators of the right (capitalist) and counter-revolu- tionary movements of the right fought to overturn dictators of the left. Western powers justified their support of dictators by arguing that the stability sup- plied by a dictator facilitated economic development and that democratic institutions could be encouraged and built gradually. More important, however, was the strategic argument. The United States needed a coun- try to be anti-communist. Communism threatened the power and access to cheap resources that the Western 72——Globalization In cases such as Korea and Vietnam, competition between the Soviet Union and the United States took the form of civil war, north against south. South Korea is now democratic and a separate country from communist North Korea. South Korea, home of Hyundai, Samsung, and Daewoo, was one of the original Asian Tigers, rising from being one of the poorest countries after WWII to BOX 3.6 A Closer Look: Cold War Map NATO Other allies of the United States Warsaw Pact Socialist Countries aligned with the Soviet Union Other allies of the Soviet Non-aligned nations Communist guerillas Anti-communist guerillas Although many countries switched allegiance scope of the allies of the United States and the non-aligned movement. Source: Aivazovsky (2008). During the Cold War, many of the newly inde- pendent states were held together, as in the colonial period, by military might and foreign support rather than shared identity based on ideals or heri- tage. The epidemic of failed and failing states and the proliferation of new states since the end of the Cold War highlight their fragility. Recognizing the vulnerability of the new states to the power plays of the Cold War, India, Egypt, and Yugoslavia led a movement of non-aligned nations. While membership in the non-aligned movement grew during the Cold War, many of the member states were engaged in conflict with one another, and others did align with one of the power blocs. The non-aligned movement never achieved 1947 promised to protect and defend free people fighting subjugation by communism—even against armed insurrection—the United States eventually protected any non-communist regime, in Latin America, Africa, Southeast Asia, and the Middle East, regardless of how morally repugnant they were. Ultimately, this policy worked against U.S. security interests and seriously damaged U.S. influence. This brief review of colonialism and the Cold War highlights the development of the global eco- nomic and political systems leading into the con- temporary period of globalization. The Westphalian ideal of equality of states and of non-interference was far removed from the political realities of hege- mony and forceful domination. The stability (not peaceful) of international governance was disrupted by the end of the Cold War and increasing demands for democracy, sovereignty, and human rights. However, the conditions for instability of the global system of states were firmly in place: the emergence of weak states with weak economies and deep eth- nic divides, along with food insecurity; environmen- tal destruction; population overload; inadequate educational, medical, or democratic infrastructure; and other risks to human security. The Cold War made decolonization more difficult and forestalled development in many countries. Consequentially, the United States damaged its reputation by sacri- ficing the principles of democracy in its Third World activities (Stiglitz 2002, 25). A new, fifth wave of nation building began follow- ing the dissolution of the Soviet Union, Yugoslavia, and Warsaw Pact in the 1990s. Table 3.1 The Contemporary Period Dates First 1648 Second Late 18th–19th century Third Late 19th–20th century Fourth Post-WWII Fifth 1990–present 74——Globalization Kurds or Roma, exist across boundaries of several states. Many ethno-nationalist movements are demanding and fighting for a “state” and a home- land of their own; others may be fighting for more autonomy within existing states, or just equal rights within the state. In most cases, these groups are indigenous people living as oppressed minori- ties within their native lands. BOX 3.7 A Closer Look: Two Faces There are two types of nationalism: nationalism 2003). When cast in terms of human rights arbiter of legitimate and non-legitimate sovereignty is a fundamental human right. dence cost from 100,000 to 250,000 lives received from the global community with UN in 2002 institutionalizes global norms When nationalism is merely a form universalizing perceptions regarding humanity world has persisted in an intense and oppression and violence practiced by nationalist label which excludes and is indeed hostile is political power. Genocides in Cambodia, throughout Europe, Asia, Africa, and the Membership in the UN swelled from just 51 when it was founded following WWII to 192 in 2006 when Montenegro was admitted (UN 2006). Nations were added in waves as colonies gained independence in the 1960s and 1970s and with the breakup of the Soviet Union, Czechoslovakia, and Yugoslavia in the 1990s. Others wrested independence through decades of vio- lent conflict. Regardless of these differences, each of these states confronts similar problems governance in combining nation and state. Even though the nation-state form has diffused globally, political equality on the global centerpiece of the Westphalia system, has never been achieved. As discussed earlier, Cold War strat- egizing of the super powers and collusion between local elites and global capital effectively controlled many states. Intergovernmental organizations, such as the UN Security Council, the IMF, and World Bank, can maintain the patterns of inequality. A sense of common interest and of belonging to a common people within a bounded territory has institutional matrices, becoming increasingly ratio- nalized and formalized (Weber 1921/1978, 905) as they evolved. With increasing size and complexity, and as knowledge of specialized functions devel- oped, state affairs became increasingly bureaucra- tized and administered by “professionals.” Power was rationalized and divided among administra- tive, legislative, and judicial offices, which became functionally specialized. Ministers of foreign affairs and secretaries of state became necessary posts for the conduct the business of the state in the global arena. Treasuries, judiciaries, parliaments, and con- gresses were institutionalized as state forms. Armies became professionalized, requiring a broader base of taxation to arm, and soldiers were no longer expected to carry their own muskets and ride their own horses into battle. States and sub-state institu- tions developed in tandem, adapting and conform- ing to the proper model of “actorhood” (Meyer 2000, 45). Following WWII, recognition by the UN became the seal of approval of statehood. Becoming a state requires conforming to a set of structural norms: A constitution, a head of state, various secretaries or ministers of administrative departments, a parlia- ment or congress, and a judiciary remain the vehi- cles of statehood. Adopting these structures of government conforms to global norms for external legitimacy and creates parallel channels for societies to conduct international relations. Foreign secretar- ies or secretaries of state deal with one another. Secretaries of the treasury, defense, commerce, and so on meet with their counterparts from other countries, facilitating dialog among states. The regulatory powers of the states—essential to the conduct of interstate relations—were strength- ened over the course of the centuries following Westphalia. As ideas related to sovereignty gained normative power, states had to legitimize their right to govern through their relationship to their people. In the case of authoritarian regimes, the state claims to embody the people. In the case of liberal democracies, the state represents the people (Mann 2003, 137). States and Human Rights Concerns Among the global expectations of a state are the link between nation and state, the state’s responsi- bilities to its people, the rights due people within 76——Globalization (Smith 2008, 1820–1821). Still, they remain elusive in many countries for many people. The Evolution of Constitutions Constitutions institutionalized the powers and responsibilities of states and of citizens. Toward the end of the 18th century, ideas of sovereignty, liber- alization, the power of reason, and the rights of humankind combined to form the constitutional state in Europe. The potentially unbridled powers of monarchies seen in light of these ideas ignited democratic aspirations. Constitutions were the way to institutionalize these ideals. Movements demand- ing rule of law, a constitution, and perhaps even democracy, arose. These afforded opportunity to wrest authority from the aristocracy. While democracy as a governmental form was poorly defined at that time, people understood what a “democrat” was: it was an anti-aristocrat (Markoff 1999, 664). A constitution was the tool a democrat could use to rein in the unbounded authority exercised by monarchs.3 The constitu- tional state became the counterweight to the power of monarchy. Constitutions replace traditional authority with legal-rational authority. Traditional monarchies give way to constitutional monarchies, presidents, and prime ministers. Rulers, their pow- ers defined by law, became office holders, not sim- ply power wielders. The U.S. Constitution was the first to be enacted. Poland quickly followed, each country building on its own tradition and heritage. The U.S. Constitution reflected the U.S. tradition of local democracy. In Poland, where monarchs were elected, the legisla- ture negotiated the powers of government with each ruler. France and its satellite states followed. In 1805, Haiti became the second American state to write a constitution after declaring its indepen- dence from France. Haiti’s constitution became an important model for Latin American nations, as they subsequently wrought independence from Spain. The Germanic states were next (Markoff 1999, 666–668). Constitutions and democracy developed in tan- dem. Constitutions derive their authority, as in the U.S. Constitution, from “We, the people,” or as in cases such as Poland, from the people and some divine source (Markoff 1999, 666). Although not all nations that developed constitutions became 2003, 54). Freedom of conscience or religion, asso- ciation, expression, and defendant’s rights in the judicial system appear as standard content in nearly every constitution. Mentioned frequently, but not as often, are rights to property, equality, and privacy. Constitutions as early as the 18th and 19th centu- ries provide for these basic rights (van Maarseveen and van der Tang 1978). Since 1948, the UN Declaration of Human Rights, along with its subsequent protocols and conventions, has proposed universal norms that function as a template for a number of constitu- tions and international treaties. Building from the elements of national constitutions that preceded it, the Declaration stipulates an international nor- mative model for states in terms of its values and its obligations to citizens. The Declaration serves as an external source of legitimacy. It has the advantage in some quarters of having been con- ceived by an international body, not by Western governments. India was very active in the formation of the UN and the drafting of the UN Declaration of Human Rights. Nehru and other political leaders promoted both and were able to invoke them to secure India’s position in the world (Bhavagan, 2010). India, trying to extract itself from British rule and declare itself non-aligned during the Cold War, was well served by the UN Declaration. More recently, other Eastern and Middle Eastern govern- ments have objected to the claim of universality, citing the Declaration's reflection of Western understandings and sympathies—particularly with respect to individualism. Table 3.2 Diffusion of Value and As nations developed constitutions and incorporated. The UN Declaration of Human Period Pre-1948 Value Statements 39.7% Personal and Not specified Political Rights Social Rights 30.8% Source: Van Maarseveen and van der Tang 78——Globalization diffuse to the extent that values and political and personal rights did. None of the former reached above a 70.1% adoption rate in any period (van Maarseveen and van der Tang 1978, 200). There is a remarkable degree of convergence on the most frequently mentioned values, political rights, and to a lesser extent social rights, which Table 3.3 Convergence in Constitutions Period Pre-1948 Top Five Value Human rights and fundamental References freedoms (of 19) Equal rights of man General welfare Protection from discrimination, family, will of people, suffrage, free or secret voting Top Five Freedom of religion, expression Political Rights References (of 19) Freedom of assembly, protection of private life Equality before law/equal protection, no arbitrary arrest/ fair and public hearing/presu innocence, etc. Top Five Social Right to work Rights References (of Eight) Right to social security, free choice of employment, Right to form and join trade unions Source: Van Maarseveen and van der Tang Early Globalization of Liberalism The links between liberalizing state structures and economic growth as they evolved in the Western European nation-states are important in under- standing the development of states. The opening of Atlantic trade routes in the late 15th century fac- tored significantly in the liberalization of gover- nance from 1600 to 1850. Most theories of European development and governance stress fac- tors of national heritage such as culture and religion to explain this. In contrast, economistic theories consider only trade. Some others examine the influ- ence of multiple external global factors in combina- tion with colonialism and slavery on liberalization (Acemoglu et al. 2005, 549–550). A more compelling explanation demonstrates that global economic factors such as trade inter- acted with states’ political institutional factors (Acemoglu et al. 2005) to liberalize state govern- ment. This explanation accounts for differences in the liberalization of states within the regional neighborhood of Western Europe. The two most critical factors turn out to be the nature of trade— the global factor—and the degree of absolutism exercised by the monarch—the internal political factor. Weighing the effect of these factors demon- strates that neither trade nor type of monarchy is significant enough as single factors to explain devel- opment in European countries. Together, however, they provide a persuasive account. Trade had a definitive impact on growth. Countries with access to Atlantic trade had economies that grew more rapidly and became more stable than countries without Atlantic Mediterranean trade produced growth but did not result in a comparable level of growth to the Atlantic trade states. That much is simple enough. But this does not explain liberalization because some countries with Atlantic trade and rapid eco- nomic growth liberalized while others did not. Political factors round out the explanation. Britain and the Netherlands, the monarchy was less absolutist than in other Atlantic trading states. The monarchy did not exert significant control over overseas trade. This enabled the merchant classes to accumulate wealth and subsequently power. Urban areas became centers of wealth. The rate of urban- ization accelerated increasing development and further increasing urbanization. The value of land 80——Globalization The victorious allies of WWI formed the League of Nations to settle conflicts, maintain peace, and promote their collective security. The League failed to capture the imagination or enlist the enthusiasm of the global community. Despite the League being an invention of Woodrow Wilson, the United States refused to join. Germany was not eligible for admis- sion because it started WWI, and Russia was not eligible for membership because of its communist government. With Europe weakened by the war and three powerful nations on the sidelines, the League was generally ineffective, but its few successes laid the groundwork for cooperative global governance. The League of Nations advanced international law through a series of multilateral treaties and BOX 3.8 Check It Out: International Law There are international treaties and ties, there are conventions, declarations, International agreements are so extensive career interest? Are you considering Environmental and human rights treaties hard to imagine any area of human activity it does not already. The UN keeps a database of treaties what you can discover about your anticipated http://treaties.un.org/pages/UNTSOnline.as You’ll see that you can search The World Treaty Index is another Political Science Department at the University http://worldtreatyindex.com/help.html Following WWII, the UN became successor to the League. They share some similarities. The UN is more limited in authority than might be imagined. It is not a world power, a super-state, or a world gov- ernment. It does not act independently on the global scene as do states. Everything that the UN accom- plishes is through the actions of states. It deliberately stipulates “collective measures” and the “principle of the sovereign equality of all its Members” (UN 2010, Charter Articles 1 and 2). The UN is very different from the League in having more expansive functions. The League limited its role to that of an international security organization. It avoided any action that would be construed as interference in the affairs of a sovereign nation (Meyer et al. 1997, 631). The UN including the decision to use force (Chapters V– VII). The Economic and Social Council operates the variety of programs and agencies of the UN that promote economic development, education, health care, and the other requisites of human develop- ment (Chapter IX). The International Court of Justice hears cases of disputes among states but only if they agree to be bound by the decisions of the court. the global economic, political, and cultural systems. It will understand the emergence of global culture related to sovereignty, nationhood, human rights, constitu- tionalism, liberalism, and rationality; analyze the course of economic globalization from function, and simple patterns of trade to early interdependence in production and markets; evaluate the relationship between political and eco- nomic liberalization; identify the influence of convergence on specific state forms and values in constitution; and assess early attempts of global governance related to the global system of states. interdepen- In early prod- influence of political and economic liberalization, establishment of colonies, homogenization of consti- tutions, and rationalization of institutional structures created conditions that facilitated interdependence and integration across societies, setting the stage for globalization. Even though the global system of states is one system among many systems, it is the foundation of globalization. It was based on the simple ideas of nation and sovereignty. As the system of nation-states came to blanket the world, the struc- tural homogeneity of states, democratic ideals and various rights reflected in their constitutions, the CHAPTER 3: Setting the Stage——61 for all of humankind faded; nationalism—the right of a group with a common heritage to gov- ern itself—ascended. The modern state and system of global gover- nance arose from the rubble of these wars. By 1648, most European princes and kings were bankrupt by the expense of war. Many had already signed trea- ties with one another. They met in the Westphalia region of Germany to broker a peace. As a conse- quence of the Treaty (or Treaties) of Westphalia, secular political power was stripped from religious authorities. The Hapsburg and Roman Empires were diminished, and power was decentralized to ruling or newly elected monarchs. Rather than the empire dictating the official religion of a territory, monarchies gained control over religion within their borders. France and Sweden gained disputed territories. Religious membership became voluntary for most individuals, but state membership became mandatory. Trade and commercial activities usurped power from religious authority and to some extent also from the crown. Religious and political free- doms from empire were established, not for indi- viduals, but for nations. In short, nations gained sovereignty. There was no longer any higher power on earth. The Treaty of Westphalia gave shape to an association of states, each of which claimed sover- eignty within its political boundaries and legiti- macy based on the nation within. Sovereignty over a politically defined territory and the citizens within remains the defining characteristic of the modern nation-state (Mann 2003, 137). The Westphalia system of states established the fol- lowing principles, the foundation of global gover- nance of the time. States were all free and equal. There was no temporal authority higher than the state. States had ultimate authority over the conduct of their internal and external affairs. The capacity to exercise rule over a territory bestowed the right to rule—might makes right. Whoever gained or seized power had authority to act as the head of state and enter into agreements on behalf of the people, regardless of their constitu- tional standing. How a state maintained its power did not reflect on the state’s legitimacy in the view of the world community. number of cases the Japanese, occupied or colonized nearly every bit of land on the globe. Whether colonial- ism was primarily economically motivated to secure resources, markets, and labor, or politically motivated to secure territory, subjects, and prestige, is an inter- had no right to esting debate. But regardless of which it was, colo- 2000, 162–163). nialism served both purposes well. After the treaty of Westphalia, the state model was transposed onto colonized lands. European states claimed land on other continents, drawing governance boundaries to mark their territory and exercise themselves dominion. During the first wave of colonization (the Age of Exploration) French, English, Spanish, and of the Portuguese settlers migrated in large numbers, pri- marily to the Americas. In the Americas, the British treated North American indigenous populations as and other other sovereign states. Treaties were used to justify on and legitimize land grabs from Native Americans. England negotiated treaties with Native Americans, people. although the treaties never granted equal benefits. The North American colonies and settlers pros- stage. pered, setting up a plantation system based on slave guarantee labor in the South of North America and small farms and industries in the North. as South and Central America, colonized primarily by assumed Spain, were also settler colonies, used primarily for actor their mineral and agricultural wealth. Rather than providing con- being isolated on reservations, indigenous populations actors, were vital, although disempowered, actors in the new economies and polities. The Latin American colonies bring peace and southern colonies of North America were similar the first in critical ways. As in the Southern plantation system, as a rich landowners and landlords, usually colonists, maintained large landholdings using slave labor and that limit poor tenant farmers. Also like the Southern United it. Minimally, States, much of the agricultural product was for territory and be export and benefitted a small segment of the popula- al tion. After independence, this pattern of colonialism foundation on both continents gave way to landed aristocracy and the extreme inequality that persists today. The distance between Europe and the Americas limited the degree to which the Americas were suit- able as colonies. Separated from Europe by oceans, American colonists developed a life of their own and eventual independence in the late 18th and early to mid-19th centuries. This was the second wave of nation-state building. Independence for the colonists in the United States led to a democratic republic, a system of checks and balances among branches of government, and federal and state governments CHAPTER 3: Setting the Stage——63 Ethiopia, one of the world’s oldest nations, was never colonized. Iran, Japan, and parts of China are the only other countries outside of Europe who can make that claim. Liberia, colonized by free black Americans in 1822, was established as a republic in 1847. Ethiopia and Liberia were the only independent nations in Africa at the turn of the 19th century. With few exceptions, such as Liberia and South Africa, the African and Asian colonies were not settler colonies. Relatively small contingents of administrators from the colonizing country ran government and commercial enterprises, often with the help of one faction of the indige- nous population. As in South America, indige- nous populations went to work for the benefit of the colonial powers. Only small contingents received educations and experience in business and government. Critical infrastructure for a developing society, such as transportation, com- munication, education, and sanitation was built to support the transfer of raw materials out of Africa, not to maintain a functioning society. Even India, which had a relatively large British administration,1 could not be considered a settler colony, as most of the administrative and military support rotated through India, few settling and building a new life there. This was strategic for the colonial powers and dysfunctional for indigenous peoples. Often, one cultural group, a numerical minority, was chosen for the higher status positions not filled by colo- nists. They served in the bureaucracy and reaped small share of the profits of colonialism, which represented considerable wealth in comparison to other groups. This was the situation in Rwanda. Hutu and Tutsi were stripped of their traditional livelihoods. The Tutsi, the smaller group numeri- cally, administered the interests of the Belgians; they prospered and controlled most of the coun- try’s wealth. This bred resentment among other indigenous groups. Violence began even before the Belgians left Rwanda in 1962, but intensified after independence and the Hutu rise to power. The intransigent inequality and deep divide led ultimately to decades of violence, thousands of deaths, and the genocide of 1994, when over three quarters of a million people were killed in just over three months. Similar playing of one ethnic group against another, giving one privilege Map of West Africa out in this map. Examine the borders of Nigeria, Ghana, and Cameroon, fractured. While the abundant diversity may prohibit mono-ethnic states, This, in combination with unequal treatment of groups, resulted in adopted the Declaration on the Granting of Independence to Colonial Countries and Peoples. This declares that “the subjection of peoples to alien subjugation, domination and exploitation constitutes a denial of fundamental human rights, is contrary to the United Nations Charter, and is an impediment to the promotion of world peace and cooperation” (UN 1960). In 1962, the UN established the Special Committee on Decolonization, and the rate of decol- onization accelerated. Independence movements, some peaceful and many others violent, secured the independence of CHAPTER 3: Setting the Stage——65 Ethnic and religious uprisings among the coun- tries of the empire, which had been gradually disengaging, led to their independence. The Balkan Wars and Russian and European incur- sions into the empire brought territorial losses and further loss of central control. Following WWI, the remainder of the Ottoman Empire col- lapsed and was divided as the spoils of war by Britain, France, and Russia. This exacerbated a nationalistic fervor in Turkey that diffused to the Middle Eastern countries. Mustafa Kemal Ataturk, inspired by ideals of sovereignty and democracy, led the Turkish war for independence from 1919 to 1923. Although Turkey was, and is, Islamic, Ataturk modeled Turkey after the secular European state, encour- aging Western-style education, dress, and other ways of life. In other parts of the former empire, such as Egypt and Iran, nationalistic fervor was accelerated by foreign domination. Most other Middle Eastern countries remained under European rule until mid-century. Diffusion of the nation-state form from West to East stopped at the Chinese border. Although China nominally adopted the nation-state form in the early 20th century and a capitalist economy in the latter part of the 20th, the tradition of empire con- tinues. The Chinese state acts much like an emperor. The government has a very active role in directing economic life, controlling political life, and to a somewhat lesser extent, it also controls religious life. Japan did not adopt a state form until after World War II. Following its defeat, Japanese devel- opment was controlled by the West. Then, Japan adopted the state form with a constitution that was largely a work of Western design and a Western economic system. the latter Early Waves of Economic Globalization The Silk Road Into the Middle Ages Economic systems produce and distribute the goods and services people need for survival and to improve the quality of their lives. This has always involved exchange among people within only about two thirds of the population (Frank 1998, 171, 126–127). In the Middle Ages, trade expanded rapidly, and nations signed treaties of commerce to make trade more secure. Military exploits expanded feudal territories and enriched aristocracies, but the feudal economic system itself did not encour- age or require globalization because feudal sys- tems are self-sustaining economically. Serfs worked the lands owned by the nobility and grew produce for their lords and for their own families. Aristocrats increased their wealth by expanding their territories and raising taxes on serfs and townspeople. It was the unraveling of the feudal system and growth of capitalism that propelled economic globalization. Ever-increasing taxation of serfs, merchants, and artisans ultimately led each to rebellion. Many serfs left the countryside for cities where they became wage laborers. Others bought or rented land to farm. At the same time, towns had grown in influence as merchants gained wealth, artisans organized into guilds, and both protested the taxations imposed by aristoc- racies. In some cases, new towns sprung up, inde- pendent of any nobility and others aligned with the monarchy directly, eliminating the nobility as a middle layer. Contractual labor began to replace obligatory, forced labor. Farm workers, now working for themselves rather than the aristoc- racy, brought excess produce to market. Money, rather than land, became the source of wealth. the most traded commodity. Many a modern person runs on coffee. “Wake- up became increasingly popular during industrialization. Coffee is now the sec- coffee on the world market is as intriguing as oil’s. It demonstrates how this case, how you can enjoy a cheap cup of coffee, but at the expense of an hundreds of thousands of small farmers and agricultural workers in Latin Vietnam into the coffee market is at the crux of the downfall. Although its slowly though out the 1990s, Vietnamese coffee production tripled from lowered prices of coffee for the 50 countries whose economies agricultural workers in other coffee-growing countries were displaced, fill- CHAPTER 3: Setting the Stage——67 of causing the drop in prices by offering loans for coffee produc- at work. State loans for coffee preceded the World Bank’s. International rather than allowing them to be regulated by the Association of by multinational corporations to get cheap coffee to market cultivation. Farmers overproduced and oversold to pay off their debt. expansion of deregulation and commercialization in the industry processes. New ways of generating profit by reducing costs became possible. There are many strategies and techniques to reduce production costs: acquire resources as cheaply as possible, find cheap labor, and locate where taxes are low and laws lax. The search for greater profits sent corporations all over the world. As they expanded, the global capitalist system expanded with them. It expanded over more territory and more phases of the economic system—acquiring resources, buying labor, constructing factories, trans- porting goods, trade, and securing investment capital. The expansion and integration of economies into a global capitalist economy took centuries, occurring in waves, sometimes increasing in intensity of interaction and integration and decreasing at other times. The Colonial Wave: Planting the Seed of the capac- generally the Global Economy, 1500s to 1860s Until the 18th century, every country was pretty much the same: poor and agrarian (Blinder 2006). Cultural and economic factors coalesced to make the colonial period a turning point. With respect to the economy, the capitalist economy began its global expansion in this era. With respect to culture, the era spread both Enlightenment ideals and ratio- nal thought. Societies that developed rationalized social structures, including fleets of ships (helped along with compass technology of the Chinese), strong militaries (helped along by the gunpowder invented by the Chinese), and state bureaucracies to support them were more able to explore and con- quer territories throughout large swaths of the globe. They found new and fertile lands to settle, plentiful resources, cheap labor, and new markets. market” (Wells 1920/1956, 804). Brazil expanded trade, becoming Britain’s third largest trading part- ner and the largest in the Americas. Its vast resources were undoubtedly a factor, but more important was the strength of the Brazilian state, which invested heavily in building rail transport and attracting for- eign investment (Topik 2005, 15). Brazil dominated two of the hottest commodities of the era, supplying 90% of rubber and half of the world’s coffee (24). This was the golden age of Latin America. Unfortunately, some Latin American societies became little more than indirect colonies, too reliant on European trade. Despite successes, the legacy of colonial oligar- chy and slavery in Brazil is at least in part respon- sible for the prolonged impoverishment of parts of the population and the persistence of great inequal- ity. The colonial legacy of land inequality and sub- jugation of African and indigenous populations impeded the progress of other Latin American soci- eties, as well as the U.S. South. Sixteen of the 20 most unequal land distributions are Latin American countries. These early and extraordinary amounts of land inequalities have had a lasting legacy in the distribution of non-land assets as well. Public investment in education, for example, runs counter to the interests of land-owning elites. It was in their interest to oppose, not facilitate expansion of public education (Frankema 2006, 8, 15–18). This main- tains power but impedes further development. This also is similar to the U.S. Southern plantation states. Independence in the Americas and the need for materials and markets sent Europeans on land grabs in Africa and Asia. One quarter of the land on earth was distributed or redistributed among the European powers between 1876 and 1915. In Africa, as in North America, a variety of patterns of colonization emerged. Eastern and southern African countries— Kenya, Tanzania, Zambia, Zimbabwe, Namibia, and South Africa—were suitable for cash crops and plantations. They developed high levels of land inequality. They remain very unequal. Central and West Africa, Uganda, Ghana, Sierra Leone, Togo, and Burkina Faso had lower than average land inequality. This region remains relatively equal (Frankema 2010, 427). Most of Northern Africa measured high in land inequality during colonialism and remains unequal (Frankema 2006, 9). However, much of Africa, in contrast to North and South America, did not present conditions attractive CHAPTER 3: Setting the Stage——69 development. First among them to develop were the former Japanese colonies of South Korea and Taiwan, and the former British colonies of Hong Kong and Singapore. These Asian societies are now among the most equal societies, known for having distributed the benefits of growth among classes. What explains their success? Family structure (extended), work values (hard), and sense of purpose (persistence) were critical. But so was their colonial experience with Japan. In cases such as Taiwan, land redistribution under Japanese rule dismantled the power of landed elites. As a whole, the Asian regions—East, South, and Southeast—have land inequality averages well below American and African averages. The maximum degree of land inequality in East Asia is well below the minimum of those regions. While Japanese colonialism was extraordi- narily cruel, it brought benefits of modernization, such as schools, railroads, and ports, to its colonies along with the tyranny (Landes 1999, 437, see foot- note 23 also). The British also built infrastructure, and those colonies were in better position, through education and administrative training, to expand and maintain the infrastructure, rather than wear it to ruin (434, 438). Economic reforms instituted after WWII, and the geopolitical position of Asian societ- ies during the Cold War bore significantly on their growth. These are discussed later in the chapter. Interestingly, colonialism accomplished a reversal of fortunes among lands colonized by Europeans. Many of the wealthier territories that were colonized are among the poorest today, whereas those that were poorer at the time of colonization are now wealthier. Indonesia, Brazil, Mexico, and India were all wealthier than the United States in 1700. By 1820, the United States had surpassed them in wealth (Acemoglu, Johnson, and Robinson 2002, 1256). The reversal of fortune thesis is related to the theory of land distribu- tion. A country’s current prosperity reflects the types of institutions established during colonization. Colonization, Independence, and GNP played a role in establishing a baseline for a country’s economic health, analyze the GNP. Graph the countries of Africa, Southeast Asia, and Latin and South America GNP. What does your graph look like? The correlation will not be perfect, but does are associated with lower GNP? What about the outliers? Discovering growth may shed light on reducing poverty in the poorest countries. A second chance for enrichment emerged follow- ing WWII, as industrialization moved from developed to developing societies. A third opportunity arose following the Cold War for those countries able to and wealth. attract and develop service industries. The Asian the system, Tigers, along with a few other South and East Asian societies such as Indonesia, Thailand, and Malaysia, were able to seize service opportunities as well. Land distribution and institutional policies are only part of the story. The factors that lead to suc- cess for former colonies are complex and involve economic, cultural, and political dynamics, along with population growth and density, international encour- relations, protectionism, international aid, geo- Policies that graphic location, access to trade, and human and natural resources. Analyzing the combinations that result in prosperity is critical in determining the most promising paths for globalization. We’ll explore some of those in the chapters that follow. at the Berlin Wall delivered a speech that electrified an adoring crowd gathered in tribute to the spirit of Berliners and to their quest for freedom, the the president’s dramatic pronouncement, “Ich bin ein Berliner” (I am a November 9, 1989, a fitting marker for the end of the Cold War. were able to maintain their wealth and position by building powerful militaries. In return for promise of alliance, governments received loans with which they build strong militaries to maintain their oligar- chy and lavish lifestyles, exacerbating poverty and inequality within many countries, such as Pakistan, Indonesia, South Africa, Zaire (now Democratic Republic of the Congo), Chile, Argentina, and so on. The benefits for the Soviet Union and United States ranged from locations for military bases and warheads, to access to valuable raw materials and markets for manufactured goods, and allegiance of a capitalist or socialist economy. Among the most traded goods were arms. The global powers made money by selling dictators arms with which they built strong militaries to protect themselves from rebellion. For decades, the main suppliers of arms to the devel- oping countries have included the permanent mem- bers of the UN Security Council, Russia (USSR #1), the United States (#2), the United Kingdom (#3), France (#4), and China (#7) (SIPRI 2010). CHAPTER 3: Setting the Stage——71 go to countries where significant international capi- talist interest was at stake or that were nudging toward political alliance with the United States (Thacker 1999, 46–47). Through these means, the Cold War was responsible for much of the onerous debt accumulated by developing nations (Stiglitz 2006). Third World debt grew to enormous propor- tions paying for ill-conceived and poorly executed programs and enterprises, arms purchases, and out- right cronyism. Augusto Cesar Sandino was a revolutionary who tried to throw the United States out of Nicaragua in the 1920s. His name and legacy was claimed 40 years later in 1961 by the Sandinista who fought the dictatorship of Anastasio Somoza DeBayle, a Cold War ally of the United States. Their revolution succeeded in 1979. Images of Sandino, such as this urban art, are plenti- ful in Nicaragua. world enjoyed. The USSR used similar strategies to their advantage. Occasionally, democratic leaders were deposed or assassinated, elections overturned or rigged. Britain and the United States, for example, toppled or assisted in toppling democratically elected governments such as those in Iran and Chile, in favor of dictators more friendly to the West. There are still some scholars who maintain that Pinochet of Chile, one of the cruelest dictators, paved the way toward progress. However, the atrocities through which it was accomplished and the complicity of the superpowers and their allies implicates high-income countries in his crimes against humanity, and others perpetrated against the people of many low-income countries. one of the wealthiest by the 1970s. South Vietnam lost its war with North Vietnam and was brought under communist rule. Although still poor, Vietnam instituted economic reforms in the 1990s, diversify- ing and liberalizing its economy with a flood of foreign investment. It is considered a “baby tiger,” one among a larger group of newly industrializing Southeast Asian nations. Union through the course of the Cold War, this map is a snapshot of the and USSR, the major domestic guerilla movements fighting against them, the status of the super-power blocs or formed a sig- nificant counterweight to them. The attempts of the non-aligned movement to strengthen states from the 1960s through the end of the Cold War were, how- ever, early globalization effects. The original goal of the non-aligned movement, to achieve universal human rights through sovereign states (despite some of these being multi-ethnic, such as Yugoslavia and India), has become mainstream, as Kofi Annan emphasized in a speech celebrating their partnering with the UN (UNIS 2006). A 1985 CATO Institute publication called the U.S. government to task for its Cold War strategy by invoking American’s self-image as a model of democ- racy for the world. While the Truman doctrine of CHAPTER 3: Setting the Stage——73 In each phase, the state system blanketed more of humanity, and the world moved closer to inte- gration as a global system of societies. Blanketing the globe with nation-state forms was arguably the first achievement of political globalization. The number of states continues to expand in the 21st century as some nations within states demarcate boundaries, claiming sovereignty and autonomy. Nation building is an important globalization pro- cess, putting nations on a more equal footing as they acquire the recognition and capability to interact with autonomy on the global scene. The global emphasis on human rights—rights owed to everyone on the globe because they are part of humanity—conditions people to demand greater autonomy and self-determination—a state for every nation. Globalization processes make national identity and self-rule taken-for-granted rights. The ideal typical nation-state guarantees sovereignty for a people who share a common identity and live in a bounded territory. The revival of nationalist fervor within ethno-national groups is also a globalization effect. Nationalist movements arise in response to the challenges that global economic, corporate, cul- tural, and possibly even civil society and other global systems pose to their autonomy and sover- eignty. Nationalism in these cases is an attempt to reestablish boundaries to protect identity and pro- tect or gain self determination. In 1990, there were over 800 ethno-nationalist movements (Scholte 2000, 167). Some operate within one state’s boundaries. Others, such as the of Nation Building Waves of Nation Building Event Treaty of Westphalia Independence of American colonies Fall of Russian and Ottoman empires Independence of African and Asian colonies Dissolution of USSR and dissolution of Warsaw Pact; separatist movements worldwide Some of these groups have been successful. Status as a state still depends on recognition by other states. This is granted individually by each state—and not every self-declared state is recognized by every other state. Membership in the UN acknowledges the legitimacy of the nation-state form, as well as grant- ing the closest thing there is to a seal of approval on the legitimacy of a new nation-states. of Nationalism based on ideas and ideals and nationalism based on labels (Kaldor or democratic values, nationalism is liberating. Human rights are the states and governments. All states are strengthened by assertions that In cases such as Timor-Leste, whose decades-long demand for indepen- out of a population of just over 1 million, the support and approval respect to their right to self-rule and their recognition as a state by the concerning sovereignty. of labeling “us” and “them,” it is destructive and intolerant. Confrontation with has unfortunately exacerbated “tribalism.” In the last decades, the bloody era of nation building. One of the tragedies of our time has been the movements who “make claims to political power based on an ethnic toward others with different label” (Kaldor 2003, 97). Their only concern Bosnia, Rwanda, and the Sudan, and violence against ethnic minorities Americas, are the result of the latter, labeling, form of nationalism. also been difficult to achieve. Inequality within soci- eties based on race, ethnicity, sect, remnants of caste, and other distinctions of assigned identity often prevent a common identity from developing. Many state boundaries, formerly colonial boundaries, con- tinue to defy the idea of nation by dividing national groups across state boundaries and combining oth- ers into unequal power relations within states. of identity and Shaping the Modern State stage, a Expectations for the internal shape and dynamics of the modern state developed from the Treaty of Westphalia. It ended the religious and nationalistic wars of Europe and established boundaries through Europe defining the territorial limits of monarchs’ powers. The need for states to act and interact on the international stage influenced the development of similar state structures. States assumed similar CHAPTER 3: Setting the Stage——75 states, structures of government, and legitimate forms of governance. In the 17th century, at about the same time that states were emerging from the aftermath of the Thirty and Eighty Years Wars, John Locke, a British philosopher, was expounding on natural rights. His rhetoric, along with that of other social and political philosophers, began to define the expectations of the role of a state. Locke argued that human rights are natural rights, rights that people have as God’s creation regardless of their station in life, the country in which they live, the creed they profess, or any other social factor. People have the natural right to anything that God gave them—life, which requires liberty, health, and any property derived from and necessary for one’s labor. No one may take any of those away. People thus acquire the obligation to respect the natural rights of others. The duty of government follows from this: to protect and enforce natural rights. Locke’s philosophy provided the basis for rights as they came to be understood during the period of the revolutions of the 18th century. The recognition of human rights unfolded in phases influenced by local culture and events of the times. In the United States’ Declaration of Independence and France’s Declaration of the Rights of Man and Citizen, uni- versal human rights are said to be inalienable and adhere to every person, by virtue of their humanity. However, at the time of the American and French revolutions, rights were largely associated with protecting property and voting. Rights for “all” referred in many states, as well as states within the United States, to property owners. It was well into the 19th century before slavery was abolished and universal male suffrage was achieved. It was into the 20th before women got the right to vote in most countries.2 The first generation of rights established the pro- tections of the individual from power of the state— such as protection from abuse, oppression, cruel and unusual punishment—and freedoms for indi- viduals—such as freedom of the press, assembly, and religion. The second-generation rights assure protections to particular groups such as women, minorities, and the elderly. Second-generation rights provide for things such as the right to health care, social security, and education. During the post- WWII period and following the 1968 cultural and political upheavals of the global civil rights move- ments, many of these rights were institutionalized democracies, constitutions themselves offer a degree of liberation from the potentially unlimited nature of traditional authority. Legitimacy as a state now depends on having a constitution or set of laws that rationalize the authority to exercise power and stipulates the people—or God and the people— as source of the state’s authority. Even autocrats and dictators justify their exercise of power on constitu- tional authority entrusted to them on behalf of the people. “What the international community accepts as a state is a state.... And that is closely connected with its having a constitution” (van Maarserveen and van der Tang 1978, 234). A constitution, whether a single document or a number of documents, specifies a society’s “funda- mental laws, distinguishable by their historical sig- nificance, the reverence and esteem in which they are held” (van Maarserveen and van der Tang 1978, 39). A constitution is a body of “meta-norms, higher order legal rules and principles that specify how all other legal norms are to be produced, applied, enforced and interpreted” (Sweet 2008, 219). Constitutions reiterate a country’s civil religion, embodying the values and ideals people hold sacred. There is no higher authority than a state’s constitu- tion. It has traditional authority emanating from the tacit agreement among states and its acceptance by the people of a state. Constitutions hold such sacred status that to question their values and beliefs is seen in most nations as heresy, and debates concerning the meaning of constitutional clauses are conducted with religious fervor. Other symbols of a country such as its flag, national anthem, and rituals such as a pledge of allegiance also acquire near sacred status, repre- senting as they do “the people.” Not only has the need for a constitution been globalized; the contents of constitutions converge in many fundamental respects. They stipulate the con- stitution itself as the source of authority, its place in the government, and how it may be amended. Constitutions all provide for central executive and legislative bodies, and most also provide for judi- ciary, elections, and representation in government. In addition to laying out the structure and function of government, nearly all constitutions delineate a series of civil, political, and democratic rights for individuals. Constitutional homogeneity is a signifi- cant globalization effect. Constitutions are tools for and reflections of major political formation and reform (Gavison CHAPTER 3: Setting the Stage——77 However, comparing the values embedded in the UN Declaration with national constitutions written afterward, the influence of the UN is clear. Nineteen statements of value embedded in the Declaration, ranging from general statements about the “dignity” of humankind to judicial indepen- dence, were found in only 39.7% of constitutions written before the Declaration, but are present in 56.1% of constitutions written from 1949 to 1975. As the period from 1948 to 1975 progressed, the rate of incorporation increased, as did the pressures of globalization. From 1967 to 1975, the rate of incorporation of the values was 64.1% (van Maarseveen and van der Tang 1978, 192). Of the 19 personal and political rights specified in the UN Declaration, the period 1967–1975 stands out as the period with the greatest percentage of adoption in states’ constitutions. During the period 1949–1957, the average rate at which constitutions adopted the rights specified in the Declaration was 63.1%. The period 1958–1966, a period of lull in globalization, had an average adoption rate of 55.4%, and in 1967– 1975, the beginning of the contemporary period of globalization, the average rate of adoption was 64.1% (van Maarseveen and van der Tang, 1978, 197). Social rights, in contrast, show their greatest rate of adoption in the period immediately following the UN Declaration. The eight social rights specified in the UN Declaration had an average incorporation rate of 30.8% in the constitutions written before the Declaration. Their average rate of adoption was 57.5% right after the Declaration was adopted, and only 38.1% and 44%, respectively, in the two decades after the Declaration. Social rights did not Rights Statements in National Constitutions similar values, personal, political, and, to a lesser extent, social values were Rights served as a template. 1948–1957 1958–1966 1967–1975 Not specified 64.1% 63.1% 55.4% 64.1 57.5% 38.1% 44% (1978, 192–193, 197, 200). received scant attention in the first generation of constitutions (see Table 3.3). Democratic innovations from competitive elec- toral parties, secret balloting, and representative institutions to universal men’s and women’s suffrage also followed a pattern of increasing diffusion as globalization forces increased (Markoff 1999). Number Number (Percentage) (Percentage) of of Constitutions 1948–1975 Constitutions 23 (82.1%) Human rights and 102 (92.7%) fundamental freedoms 22 (78.6%) Democratic society 94 (85.4%) 18 (64.3%) Equal rights of man 92 (83.6%) 13 (46.4%) Judicial independence 90 (81.8%) universal Protection against 89 (80.9%) discrimination 25 (89.3%) No arbitrary arrest/fair and 10 (90.9%) public hearing/presumed innocence, etc. Freedom of religion 97 (88.2%) 24 (85.7) Freedom of expression 96 (87.3%) Freedom of association 95 (86.4%) 22, (78.6%) Equality before law/equal 92 (83.6%) protection med 12 (42.8%) Right to form and join trade 74 (67.3%) unions 10 (35.7%) Right to work 63 (57.3%) education Right to education 60 (54.5%) Right to social security 50 (45.4%) 9 (32.2%) Right to rest and leisure 39 (35.4%) (1978, 193, 197, 200). CHAPTER 3: Setting the Stage——79 as a measure of wealth and power began to erode. New institutions that could support these new forms of growth were necessary. The newly wealthy urban classes pressured for more liberal political institutions, such as secure property rights, to sup- port sustained growth (Acemoglu et al. 2005, 550). International economic activity drove political effects within states, forcing transitions toward lib- eral and democratic political forms. Normative pressures toward liberalization were a function of internal pressure occasioned by the transition of the basis of wealth and power. Trade acted as an impor- tant conditioning factor in liberalizing the polity. Landed wealth gave aristocracy power. As it eroded, so did the power of the aristocracy. This allowed a new class structure to emerge. Where trade was not as lucrative the effect was different. Venice, Genoa, and other states with rela- tively non-absolutist regimes did not liberalize. Without access to the Atlantic, growth was depen- dent on Mediterranean trade, which brought much less prosperity (Acemoglu et al. 2005, 550). The commercial classes were not able accumulate the levels of wealth and power possible in the Atlantic trading states. As global interaction accelerated over the centuries, practical and normative con- straints compelled changes in the governance of other states. This is a different sort of globalization effect. States adjusted their internal governance in relation to one another and to their citizens; liberal- ization diffused, increasing homogeneity. These economic and political neighborhood effects oper- ate in the contemporary phase of globalization, pushing toward greater liberalization globally. trade. Establishing International Law and Organization The League of Nations and the United In Nations The foundation of global governance was set with the system of sovereign states. The former League of Nations and the UN are organizations of these presumptively equal and sovereign states intended to facilitate global governance through treaties, resolutions, the activity of its agencies, and the Court of International Justice, which hears dis- putes between willing nations. conflict resolutions.4 It established sanctions as a mechanism to enforce compliance, although sanc- tions were not wielded effectively at the time. The League inaugurated the use of sanctions to pre- serve the sovereignty (territorial integrity and independence) of countries when they failed to live up to their international obligations. Article 16 of the League Covenant required that when a treaty violation occurred, member countries immediately sever all trade, financial, and per- sonal relations with the offending country. The flurry of treaties facilitated by the League and backed by the force of sanctions of Article 16 established a global, self-monitoring system of nation-states (Giddens 1987, 256). agencies governing nearly every aspect of international life. In addition to trea- resolutions, and other instruments that have moral, if not legal, force. that they influence nearly every occupation. What is your area of international business or medicine? Trade? The ocean? Human rights? alone influence business, medicine, agriculture, and manufacturing. It is that will not eventually come under some form of global regulation, if where you can research laws that may govern your activities someday. See career. px?id=2 by the title of a treaty as well as by country. good resource. It is a project of Center for the Study of Complex Systems and of Michigan. was designed with a broad mandate, which gives it flexibility to evolve and respond to changing global conditions. Its objectives include promoting national and international development, human rights, and the global environment (631–632). This agenda invites the UN to develop global norms and work with and within nations to achieve them. The UN structure contains a General Assembly, Security Council, Economic and Social Council, a Trusteeship Council, the International Court of Justice, and a Secretariat—a rather standard gov- ernmental structure (UN Charter Article 7). The General Assembly is limited to making recommen- dations (Chapter IV). The Security Council decides on actions taken for the resolution of conflict, CHAPTER 3: Setting the Stage——81 water poor or threatened by water shortages. Aquifers, a source of groundwater, may cross the boundaries of several countries. If one country draws too heavily from the aquifer, it deprives the other countries. Many aquifers are running low on water. When the UN called for a global regime, it prompted countries to try to develop their own agreements concerning their specific cases. This has given rise to

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