MODULE: SS02: THE CONTEMPORARY WORLD

ACTIVITY

Directions: In the concept map below, describe and explain briefly how
globalization happens in its 5 dimensions.

SOCIAL
In the social context, the spread of capitalism around the world has affected changes in the class
structure of societies. As a result, global capitalism is the primary contributor of class conflict
throughout the world. In my view the consequences of these have been reflected on increasing levels
of migration of economic and civil unrest refugees to the Western world. This has been an issue of
large debate as many stakeholders believe that Western societies should take an active role in the
solution, as majority of the countries in conflict are regions where low-cost labour have been
exploited with the end goal of prosperous global trade. For instance, in developing and emerging
economies, globalization is often associated to debt, ramping exploitation of resources and poverty. It
has been extensively viewed by a faction of opinion leaders that inequality as a result of post-cold war
era globalization to be linked to mass protests, demonstrations and strikes in countries with significant
presence of transnational corporations.
TECHNOLOGICAL
The introduction of the World Wide Web in 1991 was transformative in the post-Cold War Era.
Commercial internet has contributed massively to the expansion of the global economy, experiencing
a 4.4-fold growth from US$11.1 trillion to US$73.5 trillion since 1980. Further, the ease by which
information flows has enhanced the sharing of ideas and knowledge, largely contributing to
unprecedented technological advancements. Over 3.2 billion people have access to and use the
Internet, a phenomenon that has posed recent questions concerning data privacy, competition and
security. The likely trend may involve further regulation and restrictions that may result in increase to
business cost and limitations in innovation. Consequences of such policy changes are yet firmly
forecasted; however, one analysis suggests a negative impact on the EU of up to 1.3 percent of GDP.
ECONOMIC
The global expansion of capital Post-Cold War Era has had varied effects on the global economy and
state relations on a global scale. Undoubtedly the world has experienced significant lowering of trade
barriers that historically inhibited cross border transactions. The level of high interconnectedness was
made evident in the high level of contagion experienced in the financial markets in recent decades.
With the recent hit being the Global Financial Crisis GFC of 2008, the worst since the great
depression of the 1930’s. “While it took weeks for the impact of the 1929 financial crisis to reach the
shores of Europe, the impact of the 2008 financial crisis was almost instantaneous” - Baylis, Smith &
Owens, 2017:18. It has become increasingly important for policy makers to ensure that the necessary
tools are put in place from a regulatory perspective to avoid global economic meltdowns. The almost
immediate contagion of the markets following the GFC was nothing less of a reminder of the
increased cross-border linkages. The systemic risks emerging from the Post-Cold War Era extended
beyond finance, being felt also in infrastructure, example being “the blackout in the United States
Northeast that occurred on August 14, 2003 cascading throughout a production network in the energy
sector” (Verkhivker, A. 2015.). Ian Goldin, a professor of globalisation and development at the
University of Oxford highlighted the unquestionable need for all players of the globalization process
to adopt prudent risk management policy instruments.
ENVIRONMENTAL
Growing global trade and the ramping up of extraction of natural resources has caused great strain on
the environment. Prominent environmentalists have highlighted this in the past decade resulting to
several global accords to limit carbon emissions including the Paris Climate accord and Kyoto
Protocol. Increasing activism for the environment has been particular of the post-cold war
globalization debate as global warming has becoming a real concern with devastating consequences.
Accelerated economic integration fuelled by reduced trade barriers has led to quickening of resource
depletion also widening the income equality gap translating to increased migration from least
developed regions. Concerns regarding globalization has surged a faction of anti-globalization
movements. Last but not least, anti-globalization movements pose great strain to the current trajectory
of globalization, having a devastating environmental impact if governments and policymakers do not
intervene and regulate trade.
POLITICAL
In the later decades Post-Cold War, emergence of new powers aside from the US and allies such as
China meant that foreign policy coordination has become ever important, as ideologies differ in an
ever-interconnected world. High-level global interconnection of the post-Cold War Era also
contributes to the enhancing of bargaining power of developing and emerging countries in their
negotiation with the West, with yet unclear resulting outcomes. In my opinion the dilution of power
may bring rise to a more democratic globalization process that may reduce localized discontent that
may result from lack of representation in the global setting. Important to note that many perceive
globalization as leading to diminishing of nation’s sovereignty to exert independent decisions
concerning political and economic affairs. With the rise of Transnational companies majorly lead by
the West, market forces have proven powerful in the neoliberal economy, which values free market
sovereignty, limited government intervention, individual autonomy and economic self-interest.
Reacting to this matter, recent events include United States’ President Trump being critically
protectionist against growing links across borders, and in the UK similarly with Brexit widely seen as
a rejection of the European Union's policies and the UK inclining towards protectionism. In the digital
era the contributions from NGO’s and civil societies have become increasingly important in the
debate, fuelled by the seamless flow of information and data.