Neoliberalism and Globalization
Globalization may be an overused word, although the new version of international capitalism is still so recent that the actual system on the ground has outrun the scientific and theoretical vocabulary that describes it. As a system, international capitalism is rapidly eliminating geographical and political boundaries, as Marx predicted in the 19th Century. In the global, postmodern economy, branding also involves relentless synergy and tie-ins between various diverse lines of products. Films and cartoons market their images to toy companies, fast-food restaurants and cereal manufacturers, generating billions of dollars of revenue annually, as does the commerce in seeds, genetic materials and even human body parts. Western science and technology have been synonymous with modernization and development in India and other Asian nations, even though this paradigm ignores the historical and cultural that has existed in many civilizations over the centuries. Marx also maintained that capitalism would become a global system that would eventually absorb the labor and resources of the entire planet into itself, and indeed that this process was already well underway in his lifetime. Traditional and tribal societies, old customs, religions and social arrangements, would give way to a capitalist system that broke down all barriers in its search for profits. Contemporary Marxist theorists like Immanuel Wallterstein and Leslie Sklair have also noted that this has been occurring for centuries and is accelerating today, as an international capitalist class, culture and corporate system now dominate the world, just as Marx predicted long ago.
In recent times, Marxist theorists like Immanuel Wallterstein and Leslie Sklair have taken the position that capitalism has now been transformed into a global or transnational system, due to continuing changes in technology, communications and transportation. A global capitalist class has come into existence, and a global culture and political system is also emerging. Western corporations, culture and images now pervade the planet, in a system characterized by "increasing connectivity and interdependency" (Appelrouth and Edles, 2011, p. 558). Wallerstein agreed with Marx that the process of globalization began with European colonization in the 16th and 17th Centuries and the development of modern capitalism in the 'core' Western nation-states. Today, through global organizations like the European Union, the World Trade Organization (WTO) and International Monetary Fund (IMF) it has established a form of capital control over most of the world. He and Sklair also maintain that Western capitalism is homogenizing the world, although quite clearly there has been considerable resistance from nationalists, traditionalists and religious fundamentalists to this 'McWorld' or 'Coco-colonization' (Appekrouth and Edles, 2011, p. 563). As in the past, the peripheral and semi-peripheral areas of the world are still being exploited for their cheap labor and raw materials, while history is being driven forward by capitalism's "never-ending drive for profit" (Appelrouth and Edles, 2011, p. 569).
In No Logo, Naomi Klein was highly critical of globalized capitalism and the consolidation of giant corporations and highly standardized brands and chain stores like Wal-Mart, the Gap and Starbucks. All of these companies are not attempting to become that "one overarching brand under which we consume, make art, [and] even build our homes" (Klein 1999, 2009, p. 130). Even the retail outlets are completely uniform and clone-like, with one Kinko's, Blockbuster or McDonald's looking basically like any of the others. By 1998, Wal-Mart had become the biggest retailer in the world by following these policies, with over $137 billion in sales. It always builds stores two or three times larger than its competitors and they buys its products in bulk from low-wage countries like China, reselling at prices with rich smaller retailers cannot match. Suburban malls and discount centers have now drained "community life and small businesses out of the town centers," and smaller retailers cannot even buy their products wholesale for the same price that Wal-Mart sells them retail (Klein, p. 134).
In his book The Information Bomb, Paul Virilio provides a more general and theoretical description of the technological underpinnings of global capitalism. He describes "extreme science" as a danger to all science as it has been known up to this point since it is in danger of becoming detached from reality (Virilio, 2005, p. 3). This has created new problems for governments and military and police organizations as well, since the new technology is rapidly abolishing specific political and social geographies. Just as the modern nation-state replaced the older feudal and monarchic states, so the new global, high technology version of capitalism is going to abolish the nation-state. For example, mobile phones have made drug dealing,...
Globalization arguably began even before Marco Polo’s expeditions, possibly being traceable to Alexander the Great’s establishment of overland routes between Eastern Europe and India. The assumption that globalization equals Americanization is profoundly arrogant, and is also ignorant of the history, meaning, and implications of globalization. Globalization implies integration and interdependence of the world. Predating the United States of America, globalization nevertheless reached a peak in the 20th century, when a
They might only be more efficient when externalities are not considered, but in the real world of globalization externalities are important. Understanding what to do about these problems and how to take advantage of the opportunities presented by globalization requires a strong understanding of what globalization is, and even that remains a point of some contention. Works Cited: Higgott, R. & Reich, S. (1998) Globalisation and sites of conflict: Towards definition
As a result, to not totally lose out to Vietnam and China, other countries are competing by extending their operations 24/7 without further adjustments to the current government-mandated wages of their workers. Competition remains, as Vietnam and China can deliver like the other countries, but with significantly lower wages. Looking at the bottom line, only the workers suffer and are greatly exploited as a result of this competition among
Thus, crises of capitalism have so far avoided provoking the alternative solution of a transition out of capitalism" (Wolffe 2009). Welfare state capitalism is merely one incarnation of capitalism, and neo-liberalism is not such a striking reformation of the capitalist system: it is merely one part of the cycle of managing capitalism without really changing the nature of neoliberal, state-protected capitalism. While the U.S. government's approach to the crisis may
In Social Problems, Coleman & Kerbo (2009) discuss ways globalization and neoliberalism have impacted global inequalities and disparities. Global inequalities are not caused by singular policies but are tremendously complex, requiring nuanced perspectives and points of view. Economists, sociologists, and scholars frequently debate whether neoliberalism and global capitalism are causing or exacerbating global inequalities, or whether the ideologies and practices of the free market may be used to promote global
Such a market should ideally be free from barriers and restrictions especially in regard to government regulation. Neo-liberalism in the words of Boulle (2009) "postulates the legitimacy of market economics, liberalized trade, privatization, deregulation and a limited state system." Therefore, as an economic approach, neo-liberalism seeks to facilitate economic development by encouraging the creation of a laissez-faire environment. It advocates for the opening up of markets to trade by
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