Global shift H1. Questioning globalization
What in the world is going on?
Globalization is rooted in the ideas of Karl Max since the 19 th century. Nowadays
globalization reflects the passive feeling that something fundamental is
happening. All under the broad umbrella of ‘globalization’. Industrial countries
fear that due to dual and connected forces of technical change and global shifts
in the location of economic activities are transforming employment prospects:
outsourcing and off shoring jobs in the IT. Manufacturing jobs are sucked into
China. Further the development gap (between rich & Poor) continues to widen.
Globalization has become a ‘catch all ’term with many definitions.
Conflicting perspectives on globalization
Hyperglobalist to the right and to the left
Hyperglobalist argue that we live in a borderless world in which the national is no
longer relevant. Globalization is the economic order! In this context homogenized
cultures and tastesand standardized global products are important. Global is
natural. The right globalizers argue there is too little globalization and want free
markets. The left say: globalization itself is a problem. They say current markets
create inequalities. Markets must be regulated in the wider interest.
Sceptical internationalists
They claim the world economy was more open in the half century prior to WW1
than it is today. There was more international trade. The evidence herefore is
quantative and aggregative based on national states as statistical units.
Grounding globalization
Quantative data tells nothing about qualative changes. Most important: changes
in both where and how of material production, distribution and consumption.
There has been a huge transformation in the nature and the degree of
interconnection in the world economy involving a stretching and intensification of
economic relationships.
The definition of globalization according to global Shift is: a super complex series
of multicentric, multiscalar, multitemporal, multiform and multicausal processes.
Important terms are: localizing, internationalization, globalizing and regionalizing
(page 8)
Unravelling the complexity of the new geo- economy: economies as
networks
The key lies in: to think of economic processes in terms of connection of activities
linked through flows of both, material and non- material phenomena into circuits
and networks. These circuits and networks constitute relational structures and
processes in which power relationships between key actors are uneven.
Macro structures of global economy
They are essentially the institutions, convertions and rules of the capitalist
market system. For example: IMF, WTO, World Bank, G8,. Which develop rules
and convertions for the capitalist market. System. They are also territorially
embedded.
Actor- centered networks
, Within the five actor- centered networks (fig. 1.3: cso’s, labour, states,
consumers, firms) transnational corporations (TNC’s) and states have significant
more influence on the changing ofgeographical configuration of the economy.
These actors are competitors and have collaborative relationships as well (TNC’s
with TNC’s, but also TNC’s with states).
Production circuits: production networks
There is only national data about economy. There is one way to break out of the
national ‘box’ thinking in terms of production circuits and networks.
Production chains or production circuits
Production changes are essentially linear, while economic processes are
circuitous; feedback loops which is connecting consumption. Element in a
production circuit depends on many hinds of input, both directly related to
production and related to circulation (fig. 1.4 page 14). Financiers fabricate and
shape production circuits.
Production networks
Production networks consist out of production circuits. In this chapter we note
three important networks:
1 Governance networks: Network coordinated and regulated by business firms
through intra- and inter organizational relationships. TNC’s play a key role and
have the power to control operations in more than one country, even if it does
not own the firms.
2 Spatially networks: Every production network has spatiality: geographical
configuration and extend of its component elements and the links between
them. Today production networks have become increasingly long and more
connected: global PN’s and transformation PN’s. This have led for some to claim
‘the end of geography’ or ‘death of distance’.
3 Territorial networks: TNC’s attempt to take advantage of national differences in
regulatory regimes. Therefore relationships with states are important, but other
relationships too: labor, consumers, CSO’s,
Consumption as driving force
People buy goods for satisfy their basic needs and wants. We need to distinguish
the consumption of producer and consumer goods and services.
Even in a globalizing world, economic activities are geographically
localized
The geo- economic map shows us tendencies of both, concentration and
dispersal, with a very strong propensity for economic activities to agglomerate
into localized geographical clusters.
The basis of Geographical clusters
2 types: 1. Generalized clusters: Human activities tend to agglomerate to
form urban areas.
2. Specialized clusters: Firms in the (closely) related and same
industries located in the same place (termed industrial districts)
Clusters generate two types of interdependency:
1. Traded: direct transactions between firms in a cluster.
2. Untraded: less tangible benefits such as: labor pool, particular
institutions as universities, business associations, government
institutions, broader socio- cultural phenomena.
Why do clusters develop in the first place?
What in the world is going on?
Globalization is rooted in the ideas of Karl Max since the 19 th century. Nowadays
globalization reflects the passive feeling that something fundamental is
happening. All under the broad umbrella of ‘globalization’. Industrial countries
fear that due to dual and connected forces of technical change and global shifts
in the location of economic activities are transforming employment prospects:
outsourcing and off shoring jobs in the IT. Manufacturing jobs are sucked into
China. Further the development gap (between rich & Poor) continues to widen.
Globalization has become a ‘catch all ’term with many definitions.
Conflicting perspectives on globalization
Hyperglobalist to the right and to the left
Hyperglobalist argue that we live in a borderless world in which the national is no
longer relevant. Globalization is the economic order! In this context homogenized
cultures and tastesand standardized global products are important. Global is
natural. The right globalizers argue there is too little globalization and want free
markets. The left say: globalization itself is a problem. They say current markets
create inequalities. Markets must be regulated in the wider interest.
Sceptical internationalists
They claim the world economy was more open in the half century prior to WW1
than it is today. There was more international trade. The evidence herefore is
quantative and aggregative based on national states as statistical units.
Grounding globalization
Quantative data tells nothing about qualative changes. Most important: changes
in both where and how of material production, distribution and consumption.
There has been a huge transformation in the nature and the degree of
interconnection in the world economy involving a stretching and intensification of
economic relationships.
The definition of globalization according to global Shift is: a super complex series
of multicentric, multiscalar, multitemporal, multiform and multicausal processes.
Important terms are: localizing, internationalization, globalizing and regionalizing
(page 8)
Unravelling the complexity of the new geo- economy: economies as
networks
The key lies in: to think of economic processes in terms of connection of activities
linked through flows of both, material and non- material phenomena into circuits
and networks. These circuits and networks constitute relational structures and
processes in which power relationships between key actors are uneven.
Macro structures of global economy
They are essentially the institutions, convertions and rules of the capitalist
market system. For example: IMF, WTO, World Bank, G8,. Which develop rules
and convertions for the capitalist market. System. They are also territorially
embedded.
Actor- centered networks
, Within the five actor- centered networks (fig. 1.3: cso’s, labour, states,
consumers, firms) transnational corporations (TNC’s) and states have significant
more influence on the changing ofgeographical configuration of the economy.
These actors are competitors and have collaborative relationships as well (TNC’s
with TNC’s, but also TNC’s with states).
Production circuits: production networks
There is only national data about economy. There is one way to break out of the
national ‘box’ thinking in terms of production circuits and networks.
Production chains or production circuits
Production changes are essentially linear, while economic processes are
circuitous; feedback loops which is connecting consumption. Element in a
production circuit depends on many hinds of input, both directly related to
production and related to circulation (fig. 1.4 page 14). Financiers fabricate and
shape production circuits.
Production networks
Production networks consist out of production circuits. In this chapter we note
three important networks:
1 Governance networks: Network coordinated and regulated by business firms
through intra- and inter organizational relationships. TNC’s play a key role and
have the power to control operations in more than one country, even if it does
not own the firms.
2 Spatially networks: Every production network has spatiality: geographical
configuration and extend of its component elements and the links between
them. Today production networks have become increasingly long and more
connected: global PN’s and transformation PN’s. This have led for some to claim
‘the end of geography’ or ‘death of distance’.
3 Territorial networks: TNC’s attempt to take advantage of national differences in
regulatory regimes. Therefore relationships with states are important, but other
relationships too: labor, consumers, CSO’s,
Consumption as driving force
People buy goods for satisfy their basic needs and wants. We need to distinguish
the consumption of producer and consumer goods and services.
Even in a globalizing world, economic activities are geographically
localized
The geo- economic map shows us tendencies of both, concentration and
dispersal, with a very strong propensity for economic activities to agglomerate
into localized geographical clusters.
The basis of Geographical clusters
2 types: 1. Generalized clusters: Human activities tend to agglomerate to
form urban areas.
2. Specialized clusters: Firms in the (closely) related and same
industries located in the same place (termed industrial districts)
Clusters generate two types of interdependency:
1. Traded: direct transactions between firms in a cluster.
2. Untraded: less tangible benefits such as: labor pool, particular
institutions as universities, business associations, government
institutions, broader socio- cultural phenomena.
Why do clusters develop in the first place?
