Comparing the Current Era of Globalization with the First Age of Globalization - Essay Example

Globalization Name of the Student: Name of the Instructor: Name of the course: Code of the course: Submission date: Compare and contrast the current era of globalization with the first age of globalization (1850s-1920s). What are the advantages and disadvantages of globalization in its current context? Introduction Recent decades, different scholars in diverse realms of academia have made attempts, with relative success to develop exclusive definitions of the term globalization in a variety of ways. Some schools of thought assert that this is unattainable, while others perceive that such an undertaking would constrain the meaning of this concept. Others have flouted the aforementioned beliefs and developed a working definition of globalization. This latter development is epitomized by Al-Rodhan (2006) who defined globalization as a process which encompasses the causes, course as well as the impacts of transnational and transcultural integration of both the human as well as the non-human activities. On the other hand, Karakasulu (2006) defined globalization as the integration of the socio-economic as well as the political relations across borders. Despite the diverse definitions of globalization by different scholars in the contemporary world, it is apparent that these perspectives underpin certain tenets in the political, socio-economic, cultural as well as the technological sense. These tenets can be used to distinguish the current era of globalization with the first age of globalization (1850s-1920s). Against this backdrop, this paper is a profound attempt to compare and contrast the current era of globalization with the first age of globalization (1850s-1920s). In addition, it will explore the advantages and disadvantages of globalization in its current context. Comparison In the economic context, the first age of globalization was characterized by elevated international trade whereby different states engaged in importation and exportation of goods and services. This resulted in countries exhibiting extensive dependence on each other as sources of goods and services which culminated in integration of their financial systems. Thus, economic fluctuations in one country was bound to affect the production of certain goods and services which would in turn have direct impacts on those countries which relied on the affected country for these particular goods and services. Economic dependence in this era is best exemplified whereby until the outbreak of World War I, there was prominence of protectionist pressures in the course of the ‘Great Depression’ of the 1870s. In this epoch, cheap grains from Russia and the United States caused extensive stress among the farmers in the European countries. The slower growth which emanated from this reality occasioned the demand for higher tariffs on importations of grains, even in Britain (Bordo et. al, 1999). The above reality exhibits a great level of economic integration between different countries which is central to the concept of globalization. This was well before increased economic integration which emerged by the end of the century. The aspect of economic integration is also evident in modern era whereby different states depend on each other for production of goods and services. This is exemplified in the contemporary era of globalization whereby countries in Africa extensive depend on countries in the developed world for mechanical products like cars among others. Nonetheless, it is imperative to note that the modern era of globalization has experienced more sophistication in terms of economic integration which has seen the expansion of trading blocs in different regions of the globe. Secondly, the first age of globalization (1850s-1920s) to a large extent experienced high level of cultural globalization as a result of immigration and emigration. During this highly active period of between 1850s to the 1920s, it is approximated that 55 million emigrants left Europe, crossing the ocean to other countries (Forsander et. al, 2002). As a result, this epoch saw great extent of cultural exchange between different countries as a result of immigration and emigration. This culminated in extensive cultural heterogeneity which characterizes one of the basic tenets of globalization. In addition, this early era of globalization saw the spread of cultural practices from one region to the other as many people migrated to other regions for different reasons. Similarly, modern era globalization has also seen increased cultural exchange between people from different regions. This has been propelled by increased movement of people from one place to another. However, the level of migration by people to other regions has heightened in the modern era globalization. This has been facilitated by enhancement of transport as well as transport infrastructure which have eased the movement of people in and out of various regions around the globe. Lastly, first age of globalization (1850s-1920s) also saw increased political alliances and shared political ideologies, mostly prior to the instigation of World War I in 1914. As a result, different countries came together to defend a common course based on shared interests between them. This is evidenced whereby the WWI was characterized by alliance of antagonistic political divides based on political similarities, whether capitalism or socialism. Similarly, globalization in the recent decades has seen increased trends towards ideological alliances, mostly with the advent of the cold war after WWI which stretched to early 1990s and ended with the collapse of USSR. Thus, the political inclination in a given region was influenced by the political developments in another region, based on the shared or contrasting political ideologies. Contrast Despite the above similarities of globalization in the first age of globalization (1850s-1920s) and the current era of globalization outlined in the preceding section, globalization in both of these epochs has also been marred by certain differences which will be explored in the subsequent section. Firstly, looking at the security aspect of globalization analysis, security has become sophisticated and multi-dimensional in the modern era, transcending the national border-setting type of perception which existed in the first age of globalization (1850s-1920s). This has to a great extent been occasioned by the rise of international terrorism which has threatened international peace. This is supported by Karakasulu (2006) who determined that the problem of international terrorism has evolved into becoming recognized not by only one nation but also in the modern era of globalization where the all the nations have become increasingly interdependent and connected, it has increasingly become a threat to international security and peace. International terrorism in the modern context of globalization has thus become a great concern among different nations. This was mostly after the September 11, 2001 terrorist attack on the United States. This has been perceived as a turning point as all the nations became aware of the threat of international terrorism and forged a united front to fight this confront this challenge to international security (Karakasulu, 2006). Secondly, the modern era has seen elevated establishment of international economic institutions which have heightened the level of economic integration between various states. This is best epitomized by the development of International Monetary Fund (IMF) in 1944 as well as World Bank among others. These institutions were absent in the first age of globalization (1850s-1920s) where different countries operated extensively from global economic integration. Thus, the establishment of these institutions has seen a greater paradigm shift towards a global economic set-up. Advantages and disadvantages of globalization in its current context In regard to the advantages, globalization in the current context has culminated in the reduction of poverty levels among the least developed countries. This has been occasioned by the establishment of international organizations like the World Bank which offers loans to these countries to better the living standards of their citizens. Moreover, globalization in the current context has seen an increased trend towards foreign direct investment (FDI) which has been key in enhancing the level of industrialization and employment in these countries which are categorized as developing. In addition, the increased competition between different countries which has been spearheaded by elevated economic integration and market liberalization has seen the production of high quality goods as well as lowering of prices of these goods as the levels of monopoly decrease. In regard to the disadvantages, globalization in the current context has contributed to the worsening of the living stands among certain nations which are categorized as being non-democratic. As a result, economic sanctions have been key in derailing the development efforts in these countries best epitomized in Zimbabwe. Lastly, the current context of globalization has seen increased exploitation of resources in the developing countries as multinational companies expand their interests in these regions, for instance, mining companies. As a result, the economic benefits which are gained from these ventures are transferred back to the mother countries, with little economic advantage to the developing countries. This has thus heightened the level of exploitation of these countries in the global economic set-up. Conclusion From the preceding discourse, it is apparent that the efforts of defining the concept of globalization have been problematic. In addition, there are several similarities as well as differences in the current era of globalization with the first age of globalization (1850s-1920s) as expounded in the preceding analysis. Moreover, there are several advantages in regard to current context of globalization, mostly related to modern international institutions like World bank as well as Foreign Direct Investment (FDI). Nonetheless, there are several disadvantages related to the current context of globalization, mostly in regard to economic sanctions as well as exploitation of the developing countries. References Al-Rodhan, N.R. (2006). Definitions of Globalization: A Comprehensive Overview and a Proposed Definition. Retrieved March 11th, 2013 from http://www.sustainablehistory.com/articles/definitions-of-globalization.pdf Bordo, M.D., et. al, (1999). Is Globalization Today Really Different Than Globalization a Hundred Years Ago?. In B. Eichengreen, D.A, Irwin and M.D. Bordo (eds.), Governing in a Global Economy. Paper presented at Brookings Trade Policy Forum, Washington, D.C., Washington, 5-16th April (pp. 1-74). Washington: Brookings Trade Policy Forum. Forsander, A., et. al, (2002). Immigration and Economy in the Globalization Process: The Case of Finland. Sitra: Sitra Report Series. Karakasulu, N. (2006). Security and Globalization in the Context of International Terrorism. Uluslararası Hukuk ve Politika, 2(5): 1-7. Read More