Friday 10 January 2014

How advanced was globalisation by 1914?

Globalisation has been perceived by some observers to be a recent phenomenon which has led to a more integrated world; as Hopkins points out the term ‘globalisation’ is a fairly recent addition to the academic lexicon.¹ However several of these academics in question such as Clark point out that, ‘there is not a single globalisation; only globalisations.’² Globalisation is by no means a recent occurrence but a historical process to which a considerable amount of scholarly work has tried to establish it in a historical framework. For example Hopkins separates globalisations into four stages of advancement of Archaic Globalisation, Proto-Globalisation, Modern Globalisation and Post-colonial Globalisation which have been present for over a millennium.³
Within this discussion the diverse discourse of globalisation will be analysed in order to establish what globalisation is and to what degree it has developed throughout the stages which attempt to structure it. The initial aim of this discussion will be to define what globalisation is by contemplating the numerous theories that have been composed in the globalisation argument. The arguments that globalisation has been a product of the opposing philosophies of Liberalism and Realism will then be considered as a means of seeing how globalisation has advanced which will help explain the issues of globalisation where it is limited or harmful to a society. Then by using a historical framework the issue of how advanced globalisation was during the period before 1914 will be compared to contemporary globalisation.

Academics who define globalisation can be highly focused on a particular process in order to classify it and then feel any other aspects following on from it but are not necessarily part of the procedure. For example Hobsbawn’s definition focuses on a globalisation of economics which is, ‘an increasingly elaborate and intricate worldwide division of labour in a increasingly dense network of flows and exchanges that bound every part of the world economy to the global system.’ McLuhan would instead point to a process of advancement in transport, technology and communications that lead to a compression of time-and-space which creates a more intimate worldwide community which he terms a ‘Global Village’ which allows for development of things like a world economy. Others however do not like to make specific assumptions about what Globalisation involves preferring a ambiguous term which can apply to a broad degree of subjects. McGrew for example feels that globalisation is, ‘simply the widening, deepening and speeding up of worldwide interconnectedness.’ This definition does touch upon exactly what globalisation is, it is not the progress of a single system or entity but the advancement of everything that makes up human behaviour on a global scale, however its minimalist nature does then raise the question of what ‘worldwide interconnectedness’ means? Should it be employed as a word that has to be applied to different systems and entities like economic and social relations or can it exist independently? Baylis, Smith and Owens also provide broad definition of Globalisation while establishing what fields of worldwide human activity it interconnects when they say, ‘A globalised world is one in which political, economic, cultural and social events become more and more interconnected and also one in which they have more impact.’ Although not the most elegant definition it does identify what events are affected by the process of globalisation and provide a classification of what globalisation involves. It may ignore some activities such as the importance of technology, which McLuhan’s ‘Global Village’ emphasises, but in reality technology is only a tool created by human activity which may allow for tighter interconnectedness but it is not a reason for it.  This definition will therefore apply to the rest of this discussion as the fixed classification of what globalisation is.
To provide this article with a historical framework for Globalisation, Robertson’s three waves of globalisation theory will be acknowledged. Robertson’s analyse states that Globalisation has been an evolving process over the previous five centuries; beginning with the first wave between 1500 and 1800 which saw the globalisation of regional trade, followed by the second wave between 1800 and the early twentieth-century in which industrialisation provided an impetus for further globalisation and finally the third wave which accounts for the years of following 1945 which lead up to the present day. This theory differs from Hopkins’ account by stressing that Globalisation during the second wave collapsed which helps explain how contemporary globalisation has been perceived to be unique, because while it has developed from previous waves of Globalisation it is not a direct descendant.⁹ This also implies that between the second and third waves there has not been a stable advancement in globalisation, which means that the assumption that the contemporary world is more globalised is idle speculation.

Liberalism has been one of the core principles of the modern era’s economy, society and politics. Its core philosophy rests on the ideal of progress in fields of human undertaking such a working towards democratic government and providing an unrestricted economy which in turn helps the progress of a society or individual in terms such as wealth, freedom or happiness.¹⁰ While Liberalism is not opposed to the ideas of states, in fact it encourages the sovereignty of states, it does aspire to the idea of internationalisation and greater global interconnections by everyone whether they be states or individuals.¹¹ Realism on the other hand feels that humanity is not so enlightened or innovative, especially in regards to States. Realists believe the State is the most powerful actor in an international scene of anarchy, in which there is no global institution which can effectively control or regulate the activities of the States on the international arena, unlike a national government on a domestic stage.¹² States are motivated by a central desire to survive and in order to accomplish such a thing a strong national framework will be created in order for it to effectively pursue and react to policies which put national interests first.¹³ This means that a State may avoid seeking policies which establish a more internationalised world and may work against other States in order to pursue their own benefits even if they go against ideals of human progress. It may seem that Liberalism is a theme that fits in most with Globalisation because it seeks interconnectedness; but Realism can create a globalised world too. States may have to interact with other states in order to secure themselves; this maybe done in a hostile manner by conquest or by trying to preserve the balance of power between states in order to prevent being intimidated. Alternatively states may cooperate in order to pursue mutual interests which affect them or that are part of their concern such as defence or prosperity. Both Liberalism and Realism have been ideals present during the last two waves of Globalisation and have both been significant in its progress.

The first wave of Globalisation between the sixteenth and eighteenth-century was based upon trade links throughout the world, especially those in the maritime ports of Eurasia and Africa.¹⁴  While its extent was limited it provided the basis for future development because it was an era dominated by competitive trade and enterprising in which there was a wealth of capital, ideas from across the globe and resources being amassed, especially in Europe yet not exclusively.¹⁵ In Britain there was a general desire to rise above the competition, therefore several innovative manufactures were encouraged to utilize the capital, resources and technological ideas available to them in order to revolutionise industry.¹⁶
 Industrialised manufacturing spread providing further impulsion to be innovative and was able to revolutionise technology by producing original manufactured products like the steam-engine and the telegraph which improved the mobility and communicative ability of industrialised society which widened its scope and intensity.¹⁷ Industrialisation was a defining feature of first world countries by 1914 as it granted states with the ability to produce items necessary for self-sufficiency, modernisation and security for the state against rivals.¹⁸ Industrialisation also led to an increase of output and demand for raw materials which encouraged economic actors to look globally for sources of materials and markets to sustain growths of production and trade.¹⁹ The initial method of providing such opportunity was the increasing adoption of liberal economics in which free or freer trade encouraged imports and exports to flow more easily and rapidly on a global scale and provided an increasingly mutual economic understanding of prosperity amongst industrialised states.²⁰ Desire of prosperity encouraged trading and investment even between economic rivals due to the mutual desire of economic progress, for example before 1914 the City of London had investments in the USA worth a potential £1billion.²¹ While colonisation was nothing new there was an increasing aspiration in the second half of the nineteenth-century to colonise and exert stronger influence over non-industrialised countries like South Africa and China amongst the industrialised powers which led to over half the globe being under the formal or informal influence of a few Great Powers by 1914.²² There were multiple reasons for imperialism, partially it was still a way of finding new markets and sources of raw materials but also the idea they could and wanted to dominate territories so their trade would remain secure and could be conducted on their terms so they could sell manufactured goods for as high as possible and either bought resources for as little as possible or controlled the source itself, essentially they exploited the undeveloped world as it lacked the powers of reisistance.²³ The capitalist economy of industrialised countries of the nineteenth-century at first persuaded and then dragged countries into a global economic network which was to touch and transform every country by 1914.²⁴
In political terms the principal of liberalism was becoming increasingly accepted as a necessary component of government in the industrialised world with every country, including autocracies like Turkey and Russia, granting liberal concessions by 1914.²⁵ However political relations between states were largely still based on realist ethics such as balance of power or imperialism; the Concert of Europe from 1814 onwards provided the Great Powers with a framework for conducting diplomatic relations which helped decide things like debates over territorial possessions such as during the Conference of Berlin in 1885 which established order to imperial expansion in Africa.²⁶ Imperialism coerced a quarter of the globe into obeying their authority which forced them into a global political system led by the Great Powers which would erupt in 1914 with the outset of world war. Global politics did exist before 1914 but it was far from harmonious or even voluntary.
Society was becoming more aware of its globalised nature; the chief indicator of an increasingly globalised society would be the rates of migration before 1914 which brought more people from different backgrounds together, for example over 15 million emigrated to the USA between 1899 and 1914.²⁷ However while improved communications and transport such as the telephone made it easier for social interactions between countries, international social movements were still in their infancy as only those who could afford the means for regular correspondence between states could do so, there was for example no popular international working-class movement.²⁸ Culture was beginning to spread too, a global consumer culture was beginning to emerge and ideas such as Christianity, race and liberalism were becoming known throughout the world; however with the exception to Christianity this cultural extension could only be enjoyed by those who could afford it.²⁹
Every human activity was becoming increasingly globalised but this was a trend that was to be impeded by the outbreak of two world wars and economic collapse after 1914 which led to less faith in economic, social, cultural and political interconnectedness and an increasing feel that states could only rely on themselves which led to a breakdown in globalisation.³⁰

The third wave of globalisation accounts for the contemporary world, one in which several historians regard as less globalised economically as opposed to the 1870 to 1914 period.³¹ In terms of flows of capital and labour it does appear that contemporary globalisation is less expansive than its predecessor.³² However economically globalisation appears to be more intense with improved communications and transport, led by revolutions in software and aviation, making financial and material transactions easier, cheaper and more frequent.³³ There has also been a shift in actors since 1914; the USA is now the centre of financial interactions, several third world countries are now the primary suppliers of manufactured goods due to the availability of cheap labour, trans-national corporations oversee the vast majority of international trade and investment as opposed to the national corporations of the nineteenth-century and now economic production is primarily focused on providing material for consumption by the masses.³⁴ These economic connections do not heavily rely on imperialism, and while the USA is the only world superpower and can deploy coercive measures like manipulating decisions by the International Monetary Fund about where money should be distributed, economic liberalism is the primary reason for such connections.³⁵
In political terms liberalism has also advanced as a basis of domestic politics and is providing a global framework for relations in multiple fields such as economics and diplomacy with the United Nations, which helps intensify interconnectedness still further.³⁶ However states have by no means reached completely mutual understandings and can pursue their own policies like the USA’s ‘war on terror’ which shows division still exists in international interests even if it is less intense.³⁷
While rates of migration may not have advanced beyond its pre-1914 levels, the world is becoming more socially interconnected, with more international social interactions and organisations.³⁸ Alongside this there has been the massive advancement since 1914 of a global culture, due to a economic focus in providing consumer products for the masses leading to a spread in a cultural demand and availability of things like film, music and sport which are principally western in their orientation.³⁹ In combination with improved technology that provided the ease and ability for such advancements, the improved liberal interconnectedness of politics and economics provided the increasingly harmonious and expansive will to encourage  this social and cultural advance.

The world was highly globalised by 1914; in fact in some areas like the global economy the contemporary world has only recent surpassed the levels of interconnectedness experienced before 1914. The nature of it has certainly changed though, the cultural and social interconnections before 1914 have advanced due to innovations in technology, transport and communications which made such things more readily available to the masses. Also despite tags like Americanisation being applied to contemporary global politics and economics, the increased emphasis on liberalism throughout the globe has made contemporary interconnections more voluntary unlike the system before 1914, even if they have not alleviated disparity. The period before 1914 saw the whole world globalised for the first time, its collapse in the inter-war years meant that it has to have been reconstructed which has enabled globalisation to advance beyond its 1914 levels in a different yet uneven manner.











Endnotes
1.       A.G.Hopkins, Globalization in World History (Pimlico, 2002), p.13
2.       I.Clark, Globalization and International Relations (Oxford, 1999),p.35
3.       Hopkins, World History, pp.3-9
5.       M.McLuhan, Understanding Media (London, 1964), p.6
6.       A.McGrew, ‘Globalization and Global Politics’,  in John Baylis, Steve Smith, & Patricia Owens (eds),The Globalization of World Politics, (New York, 2004), pp.16-32
7.       J.Bayliss, S.Smith, and P.Owens, The Globalization of World Politics (New York, 2004), p.8
8.       R.Robertson, The Three Waves of Globalization: A History of a developing global consciousness’ (London, 2003),p.9
9.       Ibid., pp.151-167
10.   Baylis, World Politics, pp.4-8
11.   Ibid., pp.4-8
12.   T.Dunne, and B.C.Schmidt, ‘Realism’, in John Baylis, Steve Smith, & Patricia Owens (eds), The Globalization of World Politics, (New York, 2004), pp.92-105
13.   Ibid., pp.92-105
14.   Robertson, Three Waves, pp.105-106
15.   Ibid., pp.105-106
16.   Ibid., p.106
17.   Ibid., pp.130-148
18.   Ibid., pp.130-148
19.   Ibid., pp.130-148
20.   T.Dunne, ‘Liberalism’, in John Baylis, Steve Smith, & Patricia Owens (eds), The Globalization of World Politics, (New York, 2004), pp.110-121
21.   D.Peter, War and Progress: Britain 1914-1945 (London, 1997),p.43-46
22.   E.J.Hobsbawm, The age of empire, 1875-1914  (London,1987), pp.56-65
23.   Robertson, Three Waves, pp.117-167
24.   Hobsbawn, Extremes, p.204
25.   Ibid., p.110
26.   D.Armstrong, D., ‘The Evolution of International Society’, in John Baylis, Steve Smith, & Patricia Owens (eds), The Globalization of World Politics, (New York, 2004), pp.38-51
27.   Hobsbawn, Extremes, p.88
28.   Hobsbawn, Empire, pp.112-142
29.   Hopkins, World History, pp.38-40
30.   Hobsbawn, Extremes, pp.88-111
31.   P.Hirst, and G.Thompson, Globalization in Question (2nd edn, Cambridge, 1999), pp.19-96
32.   D.Cohen, Globalization and its Enemies (The MIT Press, 2006), p.27
33.   D.Reynolds, ‘American globalism: mass, motion and the multiplier effect’, in A.G.Hopkins (ed),Globalization in world history (Pimlico, 2002), pp.243-257
34.   Ibid., p.245
35.   N.Lowe, Mastering Modern World History (4th  edn, London, 2005), pp.583-602
36.   McGrew, ‘Global Politics’, pp.16-32
37.   Dunne, ‘Realism’, pp.92-105
38.   Clark, International Relations, pp.35-47

39.   Hobsbawn, Extreme, pp.190-198

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