Globalization: The Politics of ‘We” and ‘Them’

Osita Agbu Ph.DResearch Professor

Nigerian Institute of International Affairs

25 May 2013

1.0 Introduction

Lecture segments: Introduction Historical Trajectory in the Growth of

Globalization Theoretical and Conceptual Issues Sites of Contestation Responses from the South Re – Negotiating Participation in the process Conclusion

1.0 Introduction Cont. What is ‘We’ and ‘Them’? Pre-eminence of Globalization today (overarching and multi-

dimensional concept) The thrust of this lecture is that globalization creates a dichotomy

between ‘We’ and ‘Them”, or the poor and rich, or the North and South, a dichotomy that feeds the embers of marginalization, distrust and insecurity in the world.

It forces people to negotiate and re-negotiate their identities in the global arena.

Globalization – a continuation of the historical and structural processes of capitalist and imperialist domination on a world scale and of the global diffusion or replication of its economic substructures and cultural and political superstructures.

1.0 Introduction cont. Is globalization powered by the invisible hand of the market or some

other forces? Globalization is ubiquitous – generating and reducing poverty,

threatening cultural and social formations and creating terrorists The literature on globalization is rich, making the phenomenon more

complex Literature presents two basic views:

Those who see in globalization opportunities and more efficient markets

Those who see disadvantages for late starters, mainly from the developing world

Economic and corporate globalization seen as eroding the powers of the state (What is the state?)

1.0 Introduction Cont.

The conclusion from a survey of the literature is that globalization is a site of contestation with supporters and opposers.

Proponents argue that globalization has led to better products, lower costs, job opportunities, increased productivity and improvement in quality of life.

Opposers believe that globalization actually accentuates class, regional, national and local inequalities and that it increases disparities in wealth, resources and power (Beberoglu, 1997).

What is obvious however, is that the phenomenon increasingly reflects contradictions between capital and labour, and the logic of accumulation between the local and the international.

2.0 A Historical Trajectory

Globalization, not necessarily a new phenomenon or concept – it is simply an important moment in the expansion of capital (finance capital propelled by new technologies).

We say that change is inevitable – this ordinarily should not be a problem, however, for capitalism to grow, there must be exploitation of either human or material resources.

Globalization could be equated to the movement of history and civilization.

Globalization could be traced to the expansion of European capitalism: From the first circumnavigation of the earth to early phases of the slave trade, through to colonization, imperialism and then to Economic globalization.

2.0 A Historical Trajectory

1519 -1521 first circumnavigation of earth 1600 Early phases of slave trade

1884 Colonization 1960s-1980s Neo-Imperialism 1990 Economic Globalization

2.0 A Historical Trajectory

The salient features of Globalization from the 1990s were characterized by the search for markets, raw materials and cheap labour.

Africa provided an extensive market for the purchase of slaves and raw materials (Africa integrated into the global capitalist system quite early).

Process became more global in the 19th century as capital moved from Europe to America and to Australia (building of rail road systems, and agriculture).

Indeed, the arrival of joint-stock coys and developments in the act of banking, industrial capital and technology enabled the scramble for and partitioning of Africa in 1884.

Interrupted by the Cold War, globalization re-asserted itself with the end of the Cold War in 1990.

Thus, it appears that capitalism had triumphed, as Communism collapsed.

2.0 A Historical Trajectory

The nature of Capitalism: It is characterized by the dogmas of promoting private initiatives regulated by market forces, free trade, and limited governmental intervention in public policy formulation and implementation, and also of individual or multinational accumulation of surplus, and its supportive procedural democracy.

Indeed, it has become the most important institution around which social progress or social change is currently organized.

Inherent in Capitalism are deep contradictions that create inequalities in society (conflicts between the rich and the poor).

Many therefore conclude that globalization is the continuation of the historical and structural processes of capitalism and imperialist domination on a world scale.

Against this backdrop, Africa is denied the possibility of independent development (unless she does something about it).

The industrial revolution/industrialization led to the production and manufacture of goods, a process that required raw materials and markets – necessitating a universalizing ideology like Globalization.

3.0 Theoretical and Conceptual Issues We approach the understanding of this phenomenon from the

Marxian Dependency perspective and the impact on disadvantaged societies.

The Marxian tradition includes other strands like the World Systems Theory, Marxist Political Economy and Neo-Marxism

Using historical materialism, and its basic assumption that history is a product of social forces of production and the contradictions generated by these forces, Marxists sort to explain the basis of exploitation.

Therefore, for Marxists globalization is a new age of imperialism where national, regional and global asymmetries characterized by social injustice and unequal exchanges are more pronounced.

For them, the internal contradictions of feudalism led to its downfall and the establishment of capitalism.

The conditions for Socialism were equally established by the contradictions in capitalism.

3.0 Theoretical and Conceptual Issues Experience indicates that capitalism could be a dislocating, destructive

force; but equally progressive one as it has the historical task to shepherd the destruction of backward social formations.

Hence, from a dependency perspective, Globalization is – a) A historical process of changeb) Generates domination and disempowermentc) Impacts differentlyd) Presently denotes less explicit control, but covert colonizatione) Embodies unequal bargaining powerf) Dominant states dictate economic policies of the weaker

states

Faces of globalization:

3.0 Theoretical and Conceptual Issues Positive Expectations Negative RealitiesMarket driven Tariff walls on products from developing

countriesWorld without borders Borderless only for capital and

technologyIncreased interdependence Competition has killed businesses in the

SouthOpportunities for economic growth Growth hampered by low tech. evolution

and lack of capital in developing countries

Reduces inefficiency Creates unemployment, small and local businesses threatened with extinction

Provides technology Has facilitated moral declineEnhances concerted global responses Increased capacity of external actors to

intervene in local governance

Source: Adapted : Adapted from Iman Ill – Hague, The Human Development Report, 1999.

Driving Forces of Globalization

- Transport and Communication- Computer data flow- Electronic Transfers

- Migration- Troops Movement

- Satellite communication- International focus:

- UN, WTO, WB, IMF etc.

The Driving Forces of Globalization

4.0 Sites of Contestation Globalization like capitalism generates contradictions and these are

played out at the various sites of contestation: (a) Issues of trade and Investments – competition, market access, WTO e.g. coffee free fall, protectionism, SAP, EU-ACP.(b) Information Communication Technologies (ICT) - A major force propelling globalization computing, telecommunications and broadcasting – global village, easier flow of information, flow/cheap transportation, tax barriers down, de-industrialization for weak economies and movement of finance capital difficult to control.(c) Finance Capital – struggle for access to finance capital, FDIs , World Bank loans etc. (d) Immigration – Cheap labour Vs strict immigration policies, brain drain, 2 to 3 million people emigrate to developed countries annually, about 130 million people presently living outside their native countries – this number increases by 2 % per annum. The point is that globalization is really about capital, not labour; it is about global accumulation rather than income-redistribution.

4.0 Sites of Contestation Cont.

(e)National Policy Formulation – Globalization of policy making has compromised national policy formulation, reducing state capacity.

(f)Poverty Reduction- There is increasing incidence of poverty around the world, about 1.3 billion people live on less than one dollar a day, and 3 billion (a little more than 50 % of world population) live on less than 2 dollars a day. This is in a world where the top three billionaires in the world have assets higher than the GNP of all least developed with over 600 million people.

(g)Knowledge and Technology - undermined indigenous knowledge, knowledge economy important, issues of Intellectual Property Rights (IPR) – the prices of technology raised.

(h) Democracy Reforms and Global Governance – Export of democracy as of capital, conditionalities required in the form of liberalization/deregulation, also global governance issues and representation.

4.0 Sites of Contestation Cont.

(i) Culture and Civilization – Globalization has impacted on organization of societies, it is fast eroding traditional cultures and traditional political organizations (social change is necessary, but countries should have some level of control – China, Japan), there is uncontrolled acculturation in Africa – music, dress style, food and social behaviour. Also erosion of African languages, religious and civilizational differences (religious fundamentalism and terrorism).

5.0 Responses from the South

What has been the response from the South countries? Globalization like capitalism by its character has attracted opposition. Opposition began in the1970s with calls for the overhaul of the international

Economic System (NIEO).- regulation and relegation of the market; introduction of radical redistributive mechanisms, North – South Debate and NIEO – Perhaps a later response is the emergence of South – South Corporation.

Today, we know of the WTO and the various Economic Forums. There are over 200 organizations with anti-corporate, anti-capitalist and

anti-globalization programmes and agenda. Sites of Resistance: SAP, grassroots, delinking,relocation,environmental

rights etc. Anti-Globalization Protests : World Bank, IMF, WTO and during G-8

meetings. [ Protests at Doha, Seattle, and Cancun in 2003]. At Davos at the World Economic Forum and against the World Bank and IMF at Washington.

6.0 Re-negotiating Participation in the Process That globalization has some positive elements is not in doubt,

what is worrisome is the depth of the negative impacts as we have seen.

Therefore, it does appear that the goal of the re-negotiation should be to counter these negative aspects or design ways through which they could be checked or reduced.

The economic gains from globalization must be matched with the social and political problems it has generated (Utomi, 2000).

But, how do we go about re-negotiating? We should re-negotiate at both national and global levels.

Although, globalization has been likened to a runaway train, there is a sense in which it could be 1. blocked or diverted 2. to a new destination (Define own destination) 3. decide route of diversion (in concert with other countries)

6.0 Re-negotiating Participation in the Process Cont. Developing countries must learn how to live with globalization,

engage with it constructively, conscious of the inherent inequalities in the distribution of power and values in the global system.

During trade negotiations at the WTO, developing countries should attack and alter conditions that give undue advantages to rich countries [economic, military and political leverages –offshoots of power]

Nigeria is beginning to get a few things right – acquisition of space technologies (NIGCOMSAT 1,NIGCOMSAT 11, NIGCOMSAT X, the reach of the NTA etc.

Others include financial power, production power and market power.

With the experience of the global financial crisis, the developed world started to realize that it is in everyone’s interest to accommodate the interests of the South.

7.0 Conclusion

Now, we know much about globalization? Still, we ask the question – What is the essence of any system, if

instead of promoting peace and civilizational progress, it destroys it?

I leave you on the note that developing countries should not stand aloof against this powerful force, but must re-orient their attitude and be prepared to re-negotiate their participation in the global political economy.

For Nigeria, it is important that it develops capacity and exploit its abundant resources in a way that adds value to its products (production).

Globalization should not mean that countries should not have national controls , rather, it challenges countries to be more vigilant, proactive and re-adapt national strategies in a way that enhances their competitiveness and survival.

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