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How And Why Does Globalisation In The 21st Century Differ From Globalisation In The 20th Century?
Human Geography
Date : 13/11/2021
How and why does globalisation in the 21st century differ from globalisation in the 20th century? In the broadest sense, globalisation refers to the processes that promote, increase or improve the interaction and integration of human affairs and cultures around the world. Through the years, but particularly in the 20th and 21st centuries, globalisation involves multiple dimensions, combining technological, social, economic, political and cultural factors. This fusion of factors from multiple areas has evolved and matured with time but is equally present whether we look at early historic trade routes, modern industrial and technological advances or present examples such as today s digital economy or the recent pandemic.
It is in these evolving levels of maturity and influence of the various aspects of globalisation that we find the biggest differences between 20th and 21st centuries. To better identify these differences, we need to compare the rate of change of their key elements. I will examine some of the differences in the areas of trade, transportation and technology to exemplify these changes. Trade
According to the IMF [1]: the growth in trade is in turn the result of both technological developments and concerted efforts to reduce trade barriers [1]. Some developing countries have opened their own economies to take full advantage of the opportunities for economic development through trade [1]. Trade liberalization would help the poorest escape from extreme poverty while also benefiting the industrial countries themselves [1]. In the 20th century, the establishment of international institutions (e.g. IMF, WTO, World Bank) contributed towards this direction. The global international exports rose from an approximate level of 12% in 1960 to almost 30% in 2007 and 2013[2]. This is also a result of: laissez-faire policies , reduction of import/export tariffs, less protectionism of domestic industries, free trade agreements between countries. Transportation Transportation improvements have contributed to faster movement of goods, human labour and services. According to the economist s view [3], changes in transportation technology have reduced transportation costs substantially helping to fuel the globalization process [3]. What has changed in the recent decades, is the modernisation, the speed and the efficiency of transportation. Improvements in aviation, road and railways networks and shipping, have increased interconnectedness and trade between different areas of the world. Technology Technological improvements have led to great global connectivity and communication. The internet has changed dramatically the level of maturity of technological influence on globalisation. Not only goods and money, but also, ideas, knowledge and labour are spread rapidly today. Global communication has become easier than ever before. The internet is not only used for military and university purposes, as in the 20th century. Conclusion What differs today, compared to the 20th century, is the levels of maturity, influence and access of socioeconomic, political and technological factors exemplified by the role of international institutions and TNCs in national politics and, the numbers of countries participating in this process or the mass advances and adoption of digital devices and the internet. Finally, the need for global solidarity to work together towards a Green Growth future represents a more mature and developed expression of our globalisation when compared to the 20th century. References: 1. International Monetary Fund. (November 2001) Global Trade Liberalization and the Developing Countries. Retrieved from
https://www.imf.org/external/np/exr/ib/2001/110801.htm 2. Economics Help. Charts: 1. Growth of exports. World Exports as % of GDP 2. Exports in Real terms. World Exports of goods and services. Retrieved from
https://www.economicshelp.org/blog/401/trade/what-caused-globalization/
Source: World Bank NE.EXP.GNFS.ZS Accesses 8 Sep. 2017 3. Economist s View. (23 March 2006). Transportation Costs and Globalization. Retrieved from
https://economistsview.typepad.com/economistsview/2006/03/transportation_.html Other bibliography and sources Mitchie, J. (2017) Advanced Introduction to Globalisation, Unit 3.1, Edward Elgar Publishing, Cheltenham, UK. Northampton, MA, USA. National Geographic, Resource Library Encyclopedic Entry ,
Retrieved from https://www.nationalgeographic.org/encyclopedia/globalization/print/#:~:text=Globalization%20is%20a%20term%20used%20to%20describe%20how%20trade%20and,come%20about%20as%20a%20result. Keohane R. O. and Nye J. S. Jr. (2000) Introduction. In Joseph S. Nye, Jr and John D. Donahue (Eds), Governance in a Global World, pp. 1-41. Washington, D.C.: Brookings Institution Press UK Essays. (November 2018) Drivers for Globalisation.
Retrieved from
https://www.ukessays.com/essays/economics/lowering-trade-barriers-a-factor-in-driving-globalisation-economics-essay.php?vref=1 Petersen, T. (August 15, 2017) GED. New Perspectives on Global Dynamics. What are the Drivers Behind Economic Globalization?
Retrieved from
https://ged-project.de/globalization/what-are-the-drivers-behind-economic-globalization/ OECD. (May 2011). Toward green growth. A summary for policy makers. A brochure which was prepared for the OECD Meeting of the council at Ministerial Level, 25-26 May 2011, Paris.
Retrieved from
https://www.oecd.org/greengrowth/48012345.pdf TEDx Talks. (19 September 2019). Why will future globalisation be so different | Richard Baldwin | TEDxLausanne.
Retrieved from
https://www.youtube.com/watch?v=qHBoxRdd08o A-LEVEL GEOGRAPHY REVISION: EDEXCEL , 3.1B: Transport Technology and Globalisation, Retrieved from
https://geographyrevisionalevel.weebly.com/31b-transport-technology-and-globalisation.html Material provided by:Course: Globalisation (online), University of Oxford, Department for Continuing Education Friendman, T. L. The World is Flat: The Globalized World in the Twenty-First Century, Penguins Books, p. 5-49 Paul James Manfred B. Steger (2014) A Genealogy of Globalization : The Career of a Concept, Globalizations, 11:4, 417-434, DOI: 10.1080/
http://dx.doi.org/10.1080/14747731.2014.951186 Viral V. Acharya Matthew Richardson (2009) CAUSES OF THE FINANCIAL CRISIS, Critical Review, 21:2-3, 195-210, DOI: 10.1080/08913810902952903
http://dx.doi.org/10.1080/08913810902952903 Hogson, G. (2011) Reforming Economics after the Financial Crisis, Source: Global Policy, Vol. 2 (May 2011) pp. 190-195 , 2011 London School of Economics and Political Science and John Wiley Sons Ltd , Published by: Wiley Online Library Milner, H. Globalization, Development, and International Institutions: Normative and Positive Perspectives, Source: Perspectives on Politics, Vol. 3, No. 4 (Dec., 2005), pp. 833-854, Published by: American Political Science Association. Stable URL: http://www.jstor.org/stable/3688183 Glossary IMF: International Monetary FundWTO: World Trade OrganizationThis resource was uploaded by: Sergio
It is in these evolving levels of maturity and influence of the various aspects of globalisation that we find the biggest differences between 20th and 21st centuries. To better identify these differences, we need to compare the rate of change of their key elements. I will examine some of the differences in the areas of trade, transportation and technology to exemplify these changes. Trade
According to the IMF [1]: the growth in trade is in turn the result of both technological developments and concerted efforts to reduce trade barriers [1]. Some developing countries have opened their own economies to take full advantage of the opportunities for economic development through trade [1]. Trade liberalization would help the poorest escape from extreme poverty while also benefiting the industrial countries themselves [1]. In the 20th century, the establishment of international institutions (e.g. IMF, WTO, World Bank) contributed towards this direction. The global international exports rose from an approximate level of 12% in 1960 to almost 30% in 2007 and 2013[2]. This is also a result of: laissez-faire policies , reduction of import/export tariffs, less protectionism of domestic industries, free trade agreements between countries. Transportation Transportation improvements have contributed to faster movement of goods, human labour and services. According to the economist s view [3], changes in transportation technology have reduced transportation costs substantially helping to fuel the globalization process [3]. What has changed in the recent decades, is the modernisation, the speed and the efficiency of transportation. Improvements in aviation, road and railways networks and shipping, have increased interconnectedness and trade between different areas of the world. Technology Technological improvements have led to great global connectivity and communication. The internet has changed dramatically the level of maturity of technological influence on globalisation. Not only goods and money, but also, ideas, knowledge and labour are spread rapidly today. Global communication has become easier than ever before. The internet is not only used for military and university purposes, as in the 20th century. Conclusion What differs today, compared to the 20th century, is the levels of maturity, influence and access of socioeconomic, political and technological factors exemplified by the role of international institutions and TNCs in national politics and, the numbers of countries participating in this process or the mass advances and adoption of digital devices and the internet. Finally, the need for global solidarity to work together towards a Green Growth future represents a more mature and developed expression of our globalisation when compared to the 20th century. References: 1. International Monetary Fund. (November 2001) Global Trade Liberalization and the Developing Countries. Retrieved from
https://www.imf.org/external/np/exr/ib/2001/110801.htm 2. Economics Help. Charts: 1. Growth of exports. World Exports as % of GDP 2. Exports in Real terms. World Exports of goods and services. Retrieved from
https://www.economicshelp.org/blog/401/trade/what-caused-globalization/
Source: World Bank NE.EXP.GNFS.ZS Accesses 8 Sep. 2017 3. Economist s View. (23 March 2006). Transportation Costs and Globalization. Retrieved from
https://economistsview.typepad.com/economistsview/2006/03/transportation_.html Other bibliography and sources Mitchie, J. (2017) Advanced Introduction to Globalisation, Unit 3.1, Edward Elgar Publishing, Cheltenham, UK. Northampton, MA, USA. National Geographic, Resource Library Encyclopedic Entry ,
Retrieved from https://www.nationalgeographic.org/encyclopedia/globalization/print/#:~:text=Globalization%20is%20a%20term%20used%20to%20describe%20how%20trade%20and,come%20about%20as%20a%20result. Keohane R. O. and Nye J. S. Jr. (2000) Introduction. In Joseph S. Nye, Jr and John D. Donahue (Eds), Governance in a Global World, pp. 1-41. Washington, D.C.: Brookings Institution Press UK Essays. (November 2018) Drivers for Globalisation.
Retrieved from
https://www.ukessays.com/essays/economics/lowering-trade-barriers-a-factor-in-driving-globalisation-economics-essay.php?vref=1 Petersen, T. (August 15, 2017) GED. New Perspectives on Global Dynamics. What are the Drivers Behind Economic Globalization?
Retrieved from
https://ged-project.de/globalization/what-are-the-drivers-behind-economic-globalization/ OECD. (May 2011). Toward green growth. A summary for policy makers. A brochure which was prepared for the OECD Meeting of the council at Ministerial Level, 25-26 May 2011, Paris.
Retrieved from
https://www.oecd.org/greengrowth/48012345.pdf TEDx Talks. (19 September 2019). Why will future globalisation be so different | Richard Baldwin | TEDxLausanne.
Retrieved from
https://www.youtube.com/watch?v=qHBoxRdd08o A-LEVEL GEOGRAPHY REVISION: EDEXCEL , 3.1B: Transport Technology and Globalisation, Retrieved from
https://geographyrevisionalevel.weebly.com/31b-transport-technology-and-globalisation.html Material provided by:Course: Globalisation (online), University of Oxford, Department for Continuing Education Friendman, T. L. The World is Flat: The Globalized World in the Twenty-First Century, Penguins Books, p. 5-49 Paul James Manfred B. Steger (2014) A Genealogy of Globalization : The Career of a Concept, Globalizations, 11:4, 417-434, DOI: 10.1080/
http://dx.doi.org/10.1080/14747731.2014.951186 Viral V. Acharya Matthew Richardson (2009) CAUSES OF THE FINANCIAL CRISIS, Critical Review, 21:2-3, 195-210, DOI: 10.1080/08913810902952903
http://dx.doi.org/10.1080/08913810902952903 Hogson, G. (2011) Reforming Economics after the Financial Crisis, Source: Global Policy, Vol. 2 (May 2011) pp. 190-195 , 2011 London School of Economics and Political Science and John Wiley Sons Ltd , Published by: Wiley Online Library Milner, H. Globalization, Development, and International Institutions: Normative and Positive Perspectives, Source: Perspectives on Politics, Vol. 3, No. 4 (Dec., 2005), pp. 833-854, Published by: American Political Science Association. Stable URL: http://www.jstor.org/stable/3688183 Glossary IMF: International Monetary FundWTO: World Trade OrganizationThis resource was uploaded by: Sergio