Economic v Cultural Globalisation Flashcards
define economic globalisation
economic globalisation is the increasing integration of national economies to create a single global economy of cross-border movement and trade in goods and services
define cultural globalisation
cultural globalisation is the ‘flattening out’ of cultural differences, leading to the development of a single global culture, often referred to as a monoculture
differences between economic and cultural globalisation
the driving forces behind each type
the impacts of each type
the backlashes and protests against each type
the driving forces behind each type: what is the difference?
one of the main differences between economic and cultural globalisation is the different driving forces behind each type of globalisation
the driving forces behind each type: economic globalisation
on one hand, economic globalisation has been driven by the establishment of the Bretton Woods system just after WW2, which was a system of fixed exchange rates and regulations that aimed to promote trade and stability in the international system
it was an attempt to prevent the conditions that led to the pre-war economic catastrophe as well as the war itself by fostering deeper economic integration
through the Bretton Woods system, a greater global commitment to free markets and free trade developed, which linked more and more economies together and encouraged greater connectivity, thus advancing economic globalisation
the driving forces behind each type: cultural globalisation
however, the biggest driving force behind cultural globalisation has been technological innovation, which has broken down the barriers of space and time and allowed for the transmission of information across the world almost instantaneously
developments such as the internet, social media networks and other methods of communication like email has meant that people are now able to communicate with people across the globe, sharing their cultural traditions and beliefs on a wide scale
as more and more people are exposed to different cultures, a global monoculture has begun to develop as people now eat the same foods, watch the same films, listen to the same music and all on the same devices
the impacts of each type: what is the difference?
another difference between economic and cultural globalisation is the differing impacts of each type of globalisation
the impacts of each type: economic globalisation
economic globalisation has led to the establishment of numerous intergovernmental organisations, including the IMF, World Bank and World Trade Organisation, collectively known as the Bretton Woods institutions
the IMF is an IGO that aims to secure economic stability in the international system by publishing regular reports on the economic policies of national governments and warning them against any policy decisions that may threaten their economic growth
economic globalisation has also led to the rise in transnational corporations (TNCs) that design, manufacture, produce and sell products across borders
for example, Apple is a TNC that designs its products in the USA, sources the components for its products from Eastern Asia, manufactures its products in China and sells across the globe, it now has over 1.3 billion products being actively used worldwide
the impacts of each type: cultural globalisation
contrastingly, cultural globalisation has had different impacts
one of the most obvious has been that it has led to the spread of individualism, which is the belief in the importance of the individual over the wider community
previously, people had been tied to groups such as their family or local village, but cultural globalisation has meant that people are now far less tied to any specific group
for example, a study by Santos, Varnum and Grossmann has found that both individualistic practices and values have increased, with individualism increasing by around 12% worldwide since 1960
only 4 of the countries studied showed a decrease in individualist practices (Cameroon, Malawi, Malaysia and Mali), while 34 out of the 41 studies showed a notable increase
the backlashes and protests against each type: what is the difference?
finally, one further difference is the different backlashes and protests against each type of globalisation
the backlashes and protests against each type: cultural globalisation
cultural globalisation has, arguably, led to the rise of militant Islam as a backlash against the perceived cultural imperialism and Westernisation of cultural globalisation
some parts of the Muslim world have seen cultural globalisation as attempts by the West, specifically the USA, to forcefully impose their values and customs onto non-Western cultures without considering their history, traditions and customs
this has stimulated and exacerbated abhorrence towards the West and led to the view that it is morally bankrupt and an enemy of Islam, destabilising the world order and leading to an increased chance of conflict
the backlashes and protests against each type: economic globalisation
on the other hand, while economic globalisation has also received a lot of backlash and criticism, it has attracted different criticism to cultural globalisation
this backlash has primarily come from anti-globalisation and anti-capitalist movements who argue that economic globalisation encourages poverty and inequality rather than resolving it
for example, the 1988 annual meetings of the IMF and World Bank were met with huge protests in West Berlin that attracted international support
these movements point to the Structural Adjustment Programmes (SAPs) given out by the IMF and the World Bank, which are loans with conditions attached
such loans require developing countries to undertake policy objectives such as privatisation, deregulation and opening up their markets to the world
however, rather than encouraging economic growth, anti-globalisation movements argue that these loans create a poverty cycle by encouraging developing economies to open up their markets to exploitation by much larger economies and TNCs, leading local businesses and infant industries to be at best side-lined and at worst completely destroyed
they also encourage developing countries to produce cash-crops such as coffee and cocoa, which leaves them vulnerable to exploitation by TNCs who control the production, manufacturing and distribution of such products
