Globalization A Critical Introduction Second Edition Jan Aart Scholte GLOBALIZATION Also by Jan Aart Scholte ENCYCLOPEDIA OF GLOBALIZATION (co-editor, forthcoming) CIVIL SOCIETY AND GLOBAL DEMOCRACY (forthcoming) CIVIL SOCIETY AND GLOBAL FINANCE (editor) CIVIL SOCIETY VOICES AND THE INTERNATIONAL MONETARY FUND CONTESTING GLOBAL GOVERNANCE: Multilateral Economic Institutions and Global Social Movements (co-author) INTERNATIONAL RELATIONS OF SOCIAL CHANGE Globalization A Critical Introduction Second Edition Jan Aart Scholte © Jan Aart Scholte 2000, 2005 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No paragraph of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, 90 Tottenham Court Road, London W1T 4LP. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The author has asserted his right to be identified as the author of this work in accordance with the Copyright, Designs and Patents Act 1988. First edition 2000 Second edition 2005 Published by PALGRAVE MACMILLAN Houndmills, Basingstoke, Hampshire RG21 6XS and 175 Fifth Avenue, New York, N.Y. 10010 Companies and representatives throughout the world PALGRAVE MACMILLAN is the global academic imprint of the Palgrave Macmillan division of St. Martin’s Press, LLC and of Palgrave Macmillan Ltd. 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A catalog record for this book is available from the Library of Congress 10987654321 14 13 12 11 10 09 08 07 06 05 Printed in China Summary of Contents List of Boxes xi Preface to the Second Edition xiii Preface to the First Edition xvii Acknowledgements xix List of Abbreviations xx Introduction 1 PART I FRAMEWORK OF ANALYSIS 1 Globalization Debates 13 2 Defining Globalization 49 3 Globalization in History 85 4 Explaining Globalization 121 PART II CHANGE AND CONTINUITY 5 Globalization and Production: From Capitalism to Hypercapitalism 159 6 Globalization and Governance: From Statism to Polycentrism 185 7 Globalization and Identity: From Nationalism to Hybridization 224 8 Globalization and Knowledge: From Rationalism to Reflexivity 256 PART III NORMATIVE AND POLICY ISSUES 9 Globalization and (In)Security 279 10 Globalization and (In)Equality 316 11 Globalization and (Un)Democracy 348 12 (Re)constructing Future Globalizations 382 Conclusion 424 Bibliography 426 Index 477 v This page intentionally left blank Contents List of Boxes xi Preface to the Second Edition xiii Preface to the First Edition xvii Acknowledgements xix List of Abbreviations xx Introduction 1 Framework of analysis 2 Change and continuity 4 Normative and policy issues 6 PART I FRAMEWORK OF ANALYSIS 1 Globalization Debates 13 Main points of this chapter 13 Where to start? 15 Continuity or change? 22 Liberation or shackles? 29 What to do? 37 Conclusion 47 2 Defining Globalization 49 Main points of this chapter 49 Rise of the g-word 50 Starting premises for definition 52 Redundant concepts of globalization 54 A way forward 59 Qualifications 75 Conclusion 84 3 Globalization in History 85 Main points of this chapter 85 Intimations of globality: to the nineteenth century 87 Incipient globalization: to the mid-twentieth century 91 vii viii Contents Contemporary accelerated globalization 101 Conclusion 117 4 Explaining Globalization 121 Main points of this chapter 121 Contending theories 123 An eclectic synthesis 135 Conclusion 152 PART II CHANGE AND CONTINUITY 5 Globalization and Production: From Capitalism to Hypercapitalism 159 Main points of this chapter 159 Expanded commodification 161 Altered organization 177 Conclusion 183 6 Globalization and Governance: From Statism to Polycentrism 185 Main points of this chapter 185 The obsolescence of statism 188 The reconstructed state 192 Multi-scalar public governance 202 Privatized governance 214 (Global) civil society 218 Conclusion 221 7 Globalization and Identity: From Nationalism to Hybridization 224 Main points of this chapter 224 Globalization and the nationality principle 227 Plural national identities 231 Nonterritorial identities 239 Hybridization 252 Conclusion 254 8 Globalization and Knowledge: From Rationalism to Reflexivity 256 Main points of this chapter 256 Epistemology 258 Ontology 267 Contents ix Methodology 269 Aesthetics 273 Conclusion 274 PART III NORMATIVE AND POLICY ISSUES 9 Globalization and (In)Security 279 Main points of this chapter 279 Peace 281 Crime 284 Ecological integrity 285 Health 288 Poverty 289 Financial stability 294 Employment 296 Working conditions 300 Identity 304 Knowledge 306 Social cohesion 308 Conclusion 311 10 Globalization and (In)Equality 316 Main points of this chapter 316 Class inequalities 320 Country inequalities 325 Gender inequalities 334 Other inequalities 340 Conclusion 344 11 Globalization and (Un)Democracy 348 Main points of this chapter 348 The limits of statist liberal democracy 351 Citizen ignorance 355 Institutional process failures 361 Structural inequalities 371 Conclusion 380 12 (Re)constructing Future Globalizations 382 Main points of this chapter 382 General policy strategy 383 Enhancing human security 396 x Contents Enhancing social equality 404 Enhancing democracy 410 Towards implementation 417 Conclusion 421 Conclusion 424 Bibliography 426 Index 477 List of Boxes Core theses on globalization 8 Globalization debates in summary 47 Manifestations of globality in summary 74 Summary chronology of incipient globalization, 1850s–1950s 100 Summary indicators of accelerated globalization in contemporary history 117 Contending social explanations of globalization 135 Principal dynamics of globalization 153 Implications of globalization for production in summary 184 Implications of globalization for governance in summary 222 Implications of globalization for identity in summary 254 Implications of globalization for knowledge in summary 274 Globalization and (in)security in summary 312 Globalization and (in)equality in summary 345 Globalization and (un)democracy in summary 380 Towards more humane globalization 422 xi This page intentionally left blank Preface to the Second Edition Books on globalization date quickly in the early twenty-first century. It is only five years since the publication of the first edition, but rapid developments in the practice and research of globalization, as well as in my own thoughts and experiences of globality, have already necessitated a large-scale revision. In terms of concrete actions and trends, the first edition was completed only a few months after the anti-WTO protests in Seattle and before the subsequent upsurge of high-profile resistance against prevailing policy approaches to globalization. It was written before the striking militarization of globalization fuelled by the attacks of 9/11, wars in Afghanistan and Iraq, heightened disputes over nuclear proliferation, and intensified state surveil- lance of citizens. Moreover, it predated the Bush Administration’s retreat from multilateralism, the introduction of the euro, and the WTO impasse at Cancún. The intervening years have in addition brought further so-called ‘Post-Washington Consensus’ reforms of policies towards economic global- ization. Hence the book has required considerable updating to catch up with current events. Of course it is easy to overestimate the significance of the short-term beat of history. The immediacy of recent occurrences, crammed into our consciousness by 24/7 media saturation, can easily distract us from deeper, more pervasive, and more persistent features of social relations. Globalization is largely a matter of what the historian Fernand Braudel called the longue durée, the extended time frame of generations and centuries where the principal features and forces of societal development tend to reside (Braudel, 1958). Hence, although events of five years may put some aspects of globalization into sharper relief or a different light, it is unlikely that core attributes of the process would change in such a short period. Surface appear- ances of globality like the SARS health scare of 2003 come and go; the deeper trend of growing transplanetary social connectedness persists. Globalization still matters very much in 2005. Yes, certain calculations of a few types of global movements have of late shown a year-on-year decelera- tion. For example, foreign exchange turnover declined between 1998 and 2001 owing to developments such as the introduction of the euro, although these transactions had increased substantially again by 2004. The rate of foreign direct investment (FDI) inflows slowed for three years in 2001–3, although FDI too has since rebounded. In fact, almost all empirical indicators of globality have persisted and often risen further in significance since 2000. Daily life continues to be increasingly suffused with issues of global health,