HIST 207 – 2009 Part 1

MODERN HISTORY

KOÇ UNIVERSITY

PROF. ZAFER TOPRAK

www.ata.boun.edu.tr

GLOBAL HISTORY

The course puts the phenomenon of globalization into historical perspective and introduces students to the big themes and questions that arise from global

perspectives on the past.

It covers globalization as a set of processes that operate simultaneously and unevenly on several

historical levels and in various dimensions.

Emphasis is given to the political, economic, social, and cultural changes that transformed Europe

during the 19th and 20th centuries. Europe has been characterized by extraordinary waves of

transformation:

From colonialism / imperialism to decolonization, alongside increasing cultural & ethnic diversity;

from division between capitalism and communism, between dictatorship & democracy, to a striking

convergence of socioeconomic & political systems.

Course Requirements:

Grading will be as follows:

1) a) attendance: 15 %

b) pop quizzes: 15 %

2)      mid-term exam: 35 %

3)      final exam: 35 %

100 %

Week I:

Globalization a new phenomenon

Manfred B. Steger “Is globalization a new phenomenon ? in Globalization – A Very Short

Introduction, OUP, 203, s. 17-36

“The economic dimension of globalization,” ibid., s. 37-55.

“The political dimension of globalization,” ibid., s. 56-69-68.

Week II:

Overseas Expansion and Imperialism

Jürgen Osterhammel and Niels P. Petersson, “1750-1880 Imperialism, Industrialization, and Free Trade,” chapter in Globalization: A Short History, Princeton University Press, 2005, pp. 57-80.

Week III:

Global Capitalism and Global Crises

Jürgen Osterhammel and Niels P. Petersson, “1880-1945: Global Capitalism and Global Crises,” chapter in Globalization: A Short History, Princeton University Press, 2005, pp. 81-111.

Week IV:

Globalization Split in Two

Jürgen Osterhammel and Niels P. Petersson, “1945 to Mid-1970s: Globalization Split in Two,” chapter in Globalization: A Short History, Princeton University Press, 2005, pp. 113-139.

Week V:

World Economy in the Twentieth Century

Rondo Cameron, “Overview of the World Economy in the Twentieth Century,” chapter in A Concise Economic History of the World, Oxford University Press, 1991, pp.322-344.

Week VI:

Deglobalization or Economic Disintegration

Rondo Cameron, “International Economic Disintegration,” chapter in A Concise Economic History of the World, Oxford University Press, 1991, pp.345-368.

Week VII:

Rebuilding the World Economy

Rondo Cameron, “Rebuilding the World Economy,” chapter in A Concise Economic History of the World, Oxford University Press, 1991, pp. 369-395.

Review Session

Mid-Term Exam

Week VIII:

Laissez-faire system before World War I

“Europe’s Laissez-faire system and its impact before World War I,” chapter in An Economic History of Twentieth-Century Europe, Cambridge University

Press, 2006, pp. 10-41.

.

Week IX:

Decline of laissez-faire and the rise of the regulated market

Decline of laissez-faire and the rise of the regulated market system,” chapter in An Economic History of Twentieth-Century Europe, Cambridge University Press, 2006, pp. 42-91.

Week X:

Economic dirigisme in authoritarian-fascist regimes

“Economic dirigisme in authoritarian-fascist regimes,” chapter in An Economic History of Twentieth-Century Europe, Cambridge University Press, 2006, pp. 92-132.

Week XI:

The centrally planned economic system

“The centrally planned economic system,” chapter in An Economic History of Twentieth-Century Europe, Cambridge University Press, 2006, pp. 133-189.

Week XII:

Mixed economy and welfare state

“Mixed economy and welfare in an integrated post-World War II Western Europe,” chapter in An Economic History of Twentieth-Century Europe, Cambridge University Press, 2006, pp. 190-262.

Week XIII:

The Era of Globalization

“Globalization: Return to laissez-faire ?” chapter in An Economic History of Twentieth-Century Europe, Cambridge University Press, 2006, pp. 263-326.

Week XIV:

Challenges to globalism

Manfred B. Steger “The Ideological dimension of globalization,” in Globalization – A Very Short

Introduction, OUP, 203, s. 93-112

“Challenges to globalism,” ibid., s. 113-135.

FINAL EXAM

GLOBALIZATION AND HISTORY

Globalization is international integration. It can be described as a process by which the people of the

world are unified into a single society.

Globalization refers to a multidimensional set of social processes

that

create, multiply, stretch, and intensify worldwide social interdependencies & exchanges

while

at the same time fostering in people a growing awareness of deepening connections between the

local and the distant.

Globalization in its literal sense is the process of transformation of local or regional phenomena into

global ones.

It can be described as a process by which the people of the world are unified into a single society and

function together.

Globalization is often used to refer to economic globalization,

that is,

integration of national economies into the international economy

through

trade, foreign direct investment [FDI], capital flows, migration, and the spread of technology.

Globalization is an uneven process,

meaning that

people living in various parts of the world are affected very differently

by

this gigantic transformation of social structures and cultural zones.

One defining characteristic of the process:

Movement towards greater interdependence & integration.

This process is a combination of economic, technological, socio-cultural and political forces.

“Globalization compresses the time and space aspects of social relations.”

James Mittelman

“Globalization can be defined as the intensification of worldwide social relations

which

link distant localities

in such a way that

local happenings are shaped by events occurring many miles away

and vice versa.”

Anthony Giddens

Scholars not only hold different views with regard to proper definitions of globalization,

they also disagree on its scale, causation, chronology, impact, trajectories, and policy

outcomes.

The word "globalization" has been used by economists since 1981;

however, its concepts did not permeate popular consciousness

until the later half of the 1990s.

Various social scientists have tried to demonstrate continuity between contemporary trends of

globalization and earlier periods.

Globalization is viewed as a centuries-long process, tracking the expansion of human population and the

growth of civilization,

that has accelerated dramatically in the past 50 years.

The global integration of humankind had its beginnings under Portuguese auspices in the 15th

century.

.

The process of globalization had its origins in Europe,

through the Portuguese, Spanish, Dutch, French, and English territorial and maritime expansion

into all habitable continents,

&

included the discovery and colonization of the New World.

Proto-globalization

Early forms of globalization existed during the Roman Empire, the Parthian Empire, & the Han

Dynasty,

when

the silk road started in China, reached the boundaries of the Parthian Empire & continued

onwards towards Rome.

The Islamic Golden Age

Muslim traders and explorers established an early global economy across the Old World resulting in a

globalization of crops, trade, knowledge and technology;

&

later during the Mongol Empire, when there was greater integration along the Silk Road.

Business Phenomenon

Globalization became a business phenomenon in the 17th century.

The Dutch East India Company is described as the first multinational corporation.

An important driver for globalization: Sharing risk through joint ownership

Because of the high risks involved with international trade,

The Dutch East India Company became the first company in the world to share risk

&

enable joint ownership through the issuing of shares.

The First Era of Globalization

Liberalization in the 19th century is The First Era of Globalization,

a period characterized by rapid growth in international trade & investment,

between the European imperial powers, their colonies, semi-colonial countries & United States.

.

The Era of Colonization - Imperialism

It was in this period that areas of sub-saharan Africa and the Island Pacific were incorporated into the

world system.

The decades preceding the outbreak of World War I

witnessed an era of extensive globalization.

The first era of globalization

during the 19th century

was the rapid growth of international trade between the European imperial powers, the European

colonies, and the United States.

Belief in the superiority of their own nation [nationalism] has supplied the mental enery required

for large-scale warfare.

The enormous productive capacities of the modern state [nation state] have provided the material means

necessary

to fight the two ‘total wars’ of the last century.

The End of the First Era of Globalization

The First Era of Globalization began to break down at the beginning with the first World War,

&

collapsed during the gold standard crisis in the late 1920s and early 1930s.

Great Depression

The Era of Deglobalization - Regulation

1914-1944

The Dark Age for humanity due to World Wars I&II

1929 World Depression

Protectionism [ National Economies & Economic nationalisms]

&

declining international economic integration

The Second Era of Globalization

After World War II, globalization was restarted

&

was driven by major advances in technology,

which led to lower trading costs.

Regulation

Globalization in the era since World War II was first the result of planning by economists, business

interests, & politicians

who

recognized the costs associated with protectionism & declining international economic integration.

Their work led to the Bretton Woods conference (1944)

&

the founding of several international institutions

to oversee the renewed processes of globalization, promoting growth and managing adverse

consequences.

These were :

the International Bank for Reconstruction and Development (the World Bank)

&

the International Monetary Fund (IMF).

Globalization has been facilitated by

a) advances in technology which have reduced the costs of trade,

b) trade negotiation rounds,

originally under the auspices of General Agreement on Tariffs and Trade (GATT),

then World Trade Organization (WTO)

which led to a series of agreements to remove restrictions on free trade.

Since World War II, barriers to international trade have been considerably lowered through

international agreements - (GATT).

The Uruguay round (1984 to 1995) led to a treaty to create the World Trade Organization (WTO),

a)to mediate trade disputes

b)to set up a uniform platform of trading.

Other bi- and multilateral trade agreements:

including Maastricht Treaty in Europe

&

the North American Free Trade Agreement (NAFTA)

They have also been signed in pursuit of the goal of reducing tariffs and barriers to trade.

Three Ages of Capitalism

Commercial Capitalism – Commercial Revolution

16th to mid-18th century

Industrial Capitalism – Industrial Revolution

Mid-18th to 1970s

Financial Capitalism

– Financial Revolution

Late 1970s onwards

The Globalization of Finance

The globalization of finance is one of the most striking political economy developments of post

WWII era.

Financial Revolution

.

Two significant aspects to the development:

a)Financial capital has become truly global

aided by modern means of communication,.

.

Possibility to move huge sums of money from one currency or investment to another instantaneously.

b) Capitalism is no loger primarily industrial but speculative . (from the 1980s),

Financial (speculative) Capitalism

concerned with dealing in stocks & shares & currencies not with trade or industrial investment.

The collapse of Bretton Woods system.

Before the collapse of the Bretton Woods system,

% 90 of all currency exchange were commercial transactions or long-term investments.

After the collapse,

Almost % 90 of such transactions were speculative in nature.

Financial trading exceeded $ 1 trillion per day for the first time in 1995

which was about fifty times the total volume of world trade for the year.

Arrival of a new kind of capitalism.

Global nature of financial capitalism.

A quantum leap in the history of globalization

occurring since the early 1970s

The dramatic a) creation, b) expansion, & c) acceleration

of worldwide interdependencies & global exchanges

However

Particular initiatives carried out as a result of GATT and the World Trade Organisation (WTO)

have included both promotion and “restriction” of free trade:

Promotion of free trade: a) Reduction or elimination of tariffs; construction of free trade zones with small or no tariffs,

b) Reduced transportation costs, especially from development of containerization for ocean shipping,

c) Reduction or elimination of capital controls,

d) Reduction, elimination, or harmonization of subsidies for local businesses,

Restriction of free trade: Intellectual Property Rights

a)Harmonization of intellectual property laws across the majority of states, with more

restrictions.

b) Supranational recognition of intellectual property restrictions

The nature of these developments has been criticized by many intellectuals, including Noam Chomsky

“Globalization,“ is a term of propaganda used conventionally to refer to a certain particular form of

international integration that is beneficial to its designers: i.e.

multinational corporations and the powerful states to which they are closely linked.”

The Era of Keynesianism

Keynes, the architect of the Bretton Woods system.

In the decades following W W II,

even the most conservative political parties in Europe and the US

a) rejected the classical laissez-faire ideas

&

b) embraced an extensive version of state interventionism

The Era of Hayek ( Nobel 1974)

Neoliberal Revolution

against Keynesianism

In the 1980s, British Prime Minister Margaret Thatcher & US President Ronald Reagan ( &

Turgut Özal in Turkey)

led the neoliberal revolution.

linking the notion of globalization to the ‘liberation’ of economies around the world.

Concrete neoliberal measures include:

1. Privatization of public enterprises

2. Deregulation of the economy

3. Liberalization of trade and industry

4. Massive tax cuts

5. ‘Monetarist’ measures to keep inflation in check, even at the risk of increasing unemployment

6. Strict control on organized labour

7. The reduction of public expenditures, particularly social spending

8. The down-sizing of government

9. The expansion of international markets

10. The removeal of controls on global financial flows

The Collapse of Communism

The new neoliberal economic order

received further legitimation with

the 1989-91 collapse of communism in the Soviet Union and Eastern Europe.

Since then up to the 2008 crisis

the three most significant developments related to economic globalization have been:

a)The internationalization of trade and finance

b)The increasing power of transnational corporations

c) The enhanced role of international economic institutions like the IMF, the World Bank, and the WTO.

Effects of globalization

Globalization has various aspects which affect the world in several different ways such as:

a) Industrial

b) Financial

c) Economic

Industrial :

Emergence of worldwide production markets and broader access to a range of foreign products for

consumers and companies

Financial :

Emergence of worldwide financial markets and better access to external financing for corporate,

national and subnational borrowers.

Economic:

Realization of a global common market, based on the freedom of exchange of goods and capital.

Problems arising from Globalization

Poorer countries are sometimes at disadvantage:

Prices & Monoculture

While it is true that globalization encourages free trade among countries on an international level,

there are also negative consequences because some countries try to save their national markets.

The main export of poorer countries is usually agricultural goods.

It is difficult for these countries to compete with stronger countries that subsidize their own farmers.

Because the farmers in the poorer countries cannot compete,

they are forced to sell their crops at much lower price than what the market is paying.

Outsourcing

Exploitation of foreign impoverished workers:

The deterioration of protections for weaker nations by stronger industrialized powers

has resulted in the exploitation of the people to become cheap labor in those nations .

Due to the lack of protections,

companies from powerful industrialized nations are able to force workers

to endure

a)extremely long hours,

b) unsafe working conditions,

c) just enough salary to keep them working.

Inequality between States

The abundance of cheap labor is giving the countries in power incentive not to rectify the inequality

between nations.

If these nations developed into industrialized nations, the army of cheap labor would slowly disappear

alongside development.

Poverty Trap

With the world in this current state,

it is impossible for the exploited workers to escape poverty.

It is true that the workers are free to leave their jobs,

but in many poorer countries, this would mean starvation for the worker & his/her family.

Shift from Manufacturing to Service Work

The low cost of offshore workers have enticed corporations to move production to foreign

countries.

The laid off unskilled workers are forced into the service sector

where wages & benefits are low, but turnover is high.

This has contributed to the widening economic gap between skilled and unskilled workers.

Decline of the Middle Class

The loss of these jobs has also contributed greatly to the slow decline of the middle class

which is a major factor in the increasing economic inequality in the United States.

Families that were once part of the middle class are forced into lower positions by massive layoffs and

outsourcing to another country.

Lack of Social Mobility

This also means that people in the lower class have a much harder time climbing out of poverty

because of the absence of the middle class as a stepping stone.

The Rise of Contingent Work

As globalization causes more and more jobs to be shipped overseas,

&

the middle class declines,

there is less need for corporations to hire full time employees.

Declining Social State or Welfare State

Companies are less inclined to offer benefits

(health insurance, bonuses, vacation time, shares in the company, & pensions),

or

inclined to reduce benefits to part time workers.

Most companies don’t offer any benefits at all.

Decline in the Purchasing Power

Even though most of the middle class workers still have their jobs,

the reality is that their buying power has decreased due to decreased benefits.

Job security is also a major issue with contingent work.

Weakening of Labor Unions:

The surplus in cheap labor coupled with an ever growing number of companies in transition has

caused a weakening of labor unions.

Unions loss their effectiveness when their membership begins to decline.

As a result,

unions hold less power over corporations

that are able to easily replace workers, often for lower wages,

&

have the option not to offer any jobs to unionized workers .

Political Globalization

Political globalization refers to the intensification and expansion of political interrelations across the

globe.

These processes raise an important set of political issues pertaining to

the principle of state sovereignty,

the growing impact of intergovernmental organization, i.e. WTO, IMF

& the future prospects for regional & global

governance, i.e. EU

Humans have organized their political differences along territorial lines,

that generate a sense of ‘belonging’ to a particular nation-state in the last few centuries.

This artificial division of planetary social space into ‘domestic’ and ‘foreign’ spheres

corresponds to people’s collective identities

based on the creation of a common’us’

&

unfamiliar ‘them’.

[demonizing the images of the ‘other’]

The modern nation-state system has rested on psycological foundadions & cultural assumptions

that convey a sense of existential security and historical continuity.

Origins of Modern Nation-States

The origins of the modern nation-system can be traced back to 17th-century political developments in

Europe.

The Peace of Westphalia in 1648 concluded a series of religious wars among the main European powers

following the protestant Reformation.

Treaties of Westphalia,

a)ended the Thirty Years’ War among medieval or post-medieval state structures

b) paved the ground for modern nation states

the new model of self-contained, impersonal states

based on the newly formulated principles of sovereignty & territoriality,

challenged the medieval mosaic of small polities.

[with local & personal political power but still subordinated to a larger imperial authority.]

The Westphalian model

The eclipse transnational character of vast imperial domains.

Strengthening of a new conception of

international law

based on the principle that all states had an

equal right to self-determination.

The unified territoral areas constituted the foundation for modernity’s secular & national

system of political power.

Absolutist kings in France and Prussia

Constitutional monarchs and republican leaders in England and the Netherlands,

Following the Peace of Westphalia

a) further centralization of political power

b) expansion of state administration

c) development of professional diplomacy

d) successful monopolization of the means of coercion in the hands of the state

States also provided the military means required for the expansion of commerce,

which

contributed for the spread of the European form of political rule around the globe.

The mature expression of the modern nation-state system at the end of World War I:

US President Woodrow Wilson’s ‘Fourteen Points’ based on the principle of national self-determination.

All forms of national identity should be given their territorial expression

Enshrining the nation-state as the ethical & legal pinnacle of his proposed interstate system.

Extremely difficult to enforce in practice

Wilson lent some legitimacy to those radical ethnonationalist forces

that pushed the world’s main powers into another war of global proportions.

The League of Nations

Wilson’s commitment to the nation-state coexisted with internationalist dream of establishing a global system of collective security under the auspices of a

new international organization:

the League of Nations.

The United Nations

His idea of giving international cooperation an institutional expression was eventually realized with

the founding of the United Nations in 1945.

While deeply rooted in a political order based on the modern nation-state system,

the UN and other fledgling intergovernmental organizations served a catalyst for the gradual extension of political activities across national

boundaries,

thus undermining the principle of national sovereignty.

As globalization tendencies grew stronger

during the 1970s,

it became clear that the international society of separate states was rapidly turning into a global web

of political interdependencies

that challenged the sovereignty of nation-states.

In 1990, at the outset of the Gulf War,

US President George H. W. Bush pronounced

the Westphalian model dead

by announcing the birth of a ‘new world order’.

In 1924, İş BankasıIn 1925, Sanayi ve Maadin

BankasıIn 1927, Teşvik-i Sanayi Kanunu

Porous Borders

Contemporary manifestiations of globalization have led to the partial permeation of these old territorial

borders

The process softened hard conceptual boundaries & cultural lines of demarcation.

In 1924, İş BankasıIn 1925, Sanayi ve Maadin

BankasıIn 1927, Teşvik-i Sanayi Kanunu

Hyperglobalizers & Deterritorialization

Hyperglobalizers

have suggested that the period since tle late 1960’s has been marked

by

a radical ‘deterritorialization’ of politics, rule, and governence.

In 1924, İş BankasıIn 1925, Sanayi ve Maadin

BankasıIn 1927, Teşvik-i Sanayi Kanunu

Globalization sceptics

Globalization sceptics have not only affirmed the continued relevance of the nation-state as the

political container of modern social life

but have also pointed to

the emergence of regional blocks as evidence for new forms of territorialization.

Question:

Is it really true that the power of nation-state has been curtailed by massive flow of capital, people, and

technology across territorial boundaries ?

Political globalization is the creation of a world government which regulates the relationships among nations and guarantees the rights arising from social

& economic globalization.

Politically, the United States has enjoyed a position of power among the world powers; in part because of

its strong and wealthy economy.

With the influence of globalization & with the help of The United States’ own economy,

China has experienced some tremendous growth within the past decade.

If China continues to grow at the rate projected by the trends,

it is very likely that in the next twenty years,

there will be a major reallocation of power among the world leaders.

China will have enough wealth, industry, & technology

to rival the United States for the position of leading world power.

Informational globalization

Increase in information flows between geographically remote locations

Cultural globalization

Growth of cross-cultural contacts; advent of new categories of consciousness and identities such as

globalism

Globalism

embodies

cultural diffusion,

the desire to

consume and enjoy foreign products and ideas,

adopt new technology and practices,

&

participate in a “world culture”.

Greater international cultural exchange

Spreading of multiculturalism,

&

better individual access to cultural diversity

(e.g. through the export of Hollywood and Bollywood movies).

However, the imported culture can easily supplant the local culture,

causing reduction in diversity through hybridization or even assimilation.

The most prominent form of this is Westernization,

but Sinicization of cultures has taken place over most of Asia for many centuries.

Ecological globalization

The advent of global environmental challenges that can not be solved without international cooperation,

such as climate change, cross-boundary water & air pollution, over-fishing of the ocean, and the spread

of invasive species.

Many factories are built in developing countries where they can pollute freely.

Social globalization

The achievement of free circulation by people of all nations.

Greater international travel & tourism

Greater immigration, including illegal immigration.

Spread of local consumer products (e.g. food)

to other countries (often adapted to their culture)

Universal Values

World-wide fads and pop culture such as Pokémon, Sudoku, Numa Numa, Origami, Idol series, YouTube, Orkt, Facebook , and MySpace.

World-wide sporting events such as FIFA World Cup and the Olympic Games.

Formation or development of a set of universal values.

Double Revolution

The second half of the 18th century

A “double revolution” ushered in the “modern world”:

The Industrial Revolutution starting in England about 1760

The French Revolution of 1789

The French Revolution

introduced a new age of political order initially in Europe and later throughout the world.

The Political Revolution

The political revolution only gradually had an impact on the world.

The Industrial Revolution

The industrial revolution required more than a century to affect all the areas that are industrial

countries today.

The dynamics of state-building & preindustrial colonialism fueled an early era of globalization.

Atlantic Revolution - High-seas Navigation

During the early modern period, the Europeans managed to take control of the world’s seas,

although no one European power held a dominant positition over its competitors.

The Portuguese, Spanish, Dutch, English, and French, and even multinational pirate crews were

far superior to every other sea power.

European Naval Supremacy

European naval supremacy extended to all branches of high-seas navigation:

exploration, commerce, & warfare.

The ties between naval power & commercial shipping were closer in Europe

than they had ever been in any civilization in history.

The Role of Navies

The role of navies acquired a completely new dimension as instruments of the early modern state.

Much of Europe’s innovative talent was spent for perfecting naval & navigation techniques

&

in establishing and running such complex organization as the British East India Company, &

the Royal Navy.

Shipbuilding: The Most Dynamic Sector

Once Europe had secured control of the high seas, the stage was set for the rise of the most dynamic

economic sector in the 18th century.

Shipbuilding & shipping became important economic sectors each in its own right.

Emancipation of Military from Commerce

At first, military branch of seafaring was subordinate in importance to commercial shipping.

Around the middle of the 18th century, the military branch emancipated itself from its supporting role

&

became an instrument of a form of politics unknown until then.

Supremacy of Britain

The strongest adversaries considered the entire world to be a theater of war.

Large infantry units were shipped overseas. Britain pioneered this new strategic concept.

British forces drove the French out of Canada, fought them and their indigeous allies in India, & attacked Manila and Havana, two of the wealthiest

cities in the Spanish colonial empire.

The same phenomenon repeated itself in the larger conflicts between Britain and revolutionary, later

Napoleonic, France, from 1793-1815.

Britain occupied many strategically vital ports in the wake of Napoleonic Wars, including Gibraltar, Malta, the Cape of Good Hope, and Singapore.

The British completed their military conquest of India

&

attempted for the very first time to establish diplomatic relations with China.

In 1788, Australia became the destination of the first British penal transports

turning the continent into another colony.

Fiscal Military State

Britain - The first “fiscal military state”

Britain was capable of mobilizing a greater amount of financial resources at home

compared to the “absolutistic” monarchies of the Eurasian continent.

Efficient Taxation & Debt Financing

The improved capacity of naval warfare was one of the results of British efforts

to rationally organize the state’s policies of taxation and debt financing.

France and Russia quickly copied the British model.

The Great Crisis

The concentration of power in the Atlantic region was one of the most important reasons for the great

crisis of the Western Hemisphere.

In the 1760s both the British state & the Spanish crown attempted to strengthen their respective holds

over their American colonies.

Response: Wars of Independence

(1)The United States of America

Thirteen British colonies declared their independence in 1776

&

fought against the British

&

defeated them in 1783.

(2)Latin America

In the Spanish colonies the first attempts by the Creole elite to free themselves proved too week.

Creole: mixed European & African race

But they finally succeded in becoming independent as the Spanish monarchy fell apart in the wake of

Napoleon’s invasion.

By 1825 the Spanish colonial empire had disappeared altogether from the American

continent.

(3) Haiti

A third war of independence started in 1791 by the mulatto planters and black slaves in St. Dominique –

the most importannt sugar producing area of the world.

Mulatto: one black, one white parent

Civil war – French & British intervention

independence in 1804 under the name of Haiti, the first black republic in history.

The crises in the Atlantic

that went back and forth between the Old and New Worlds

from about 1765 to 1825

were the result of intense processes of integration in this maritime region.

Paradoxical consequences in the long-term.

The revolts of settler and slaves destroyed some of the existing links.

Once its sugar-exporting economy collapsed, slave-free Haiti dropped out of the global economy

In the USA the political elite directed the nation’s attention westward, away from the Atlantic.

Great adventure of settling the North American continent began.

The new republics of South and Central America wanted to have as little to do with Spain as possible.

New international links were forged between the two sides of the Atlantic.

In place of Spain, Latin American countries established new economic relations with the leader of

globalization, i.e. Britain.

The economic, social, and cultural relations between the USA and the Britain survived the political split

and developed over time into the “special relationship”.

The US claimed very early to be a model for the rest of the World.

Revolutionary France reverted to dictatorship & monarchy.

Napoleon’s short-lived empire reached the height of its power around 1810,

uniting Europe for a brief historical moment.

Napoleon’s global repercussion: The invasion of Egypt in 1798.

a) Alarmed the entire Muslim world.

b) Spurred British imperialism on

to further expansion in Asia.

Far-reaching Impact of the Industrial Revolution [IR]

What changes occurred in long-distance economic relations as a result of the spread of

industrialization ?

The Industrial Revolution [IR]

The IR did not cause a sudden change in intercontinental economic relations.

The IR originated in one quite small economic sphere &

spread gradually and unevenly around the world.

Five aspects of the IR from the standpoint of globalization

1. The IR began in Britain,

a country that already enjoyed an unusually well-developed network of

a) foreign trade relations

b) colonial connections.

This in itself was not a necessary and defining prerequisite.

Otherwise the IR would have started in the Netherlands.

However

The IR occurred in what was already a well-developed center of dynacmic economic

development.

Distinction between IR and “industrious revolution”

Industrious Revolution : a mobilization of previously unused labor for marketable but not yet

industrial production,

A mobilization spurred on by an increasingly individualized consumer demand.

The industrious revolution

reached the limits of its potention in the 18th century,

due to

a) the impact of political crisis

&

b) lack of

ı) an efficently operationg financial system

ıı) legal institutions to protect private ownership & property.

2. The IR did not emerge from within a self-contained economic system.

The leading economic sector: the cotton industry of northern England.

It strove to compete with the quantitatively and qualitatively superior Indian textiles produced for

the British market.

From the very beginning, the cotton industry was involved in global markets.

All of its raw material, cotton, had to be imported from abroad.

As early as the 1830 textiles comprised

more than % 70 of Britain’s exports.

British business also had global contacts in the Atlantic slave economy.

3. There was only one IR.

What followed were numerous industrialization processes within national, regional, or

international frameworks.

Others without industry were able to achieve wealth by specializing in the export of agricultural

products (Denmark, New Zealand)

4. Industial means of production did not spread simply by imitation of the British model.

A complex process of creative adaptation.

The second generation of industrializing countries lacked some of the important conditions inherent

in British development, such as “agricultural revolution”.

Japan, the third generation country.

Developed institutions advantageous of its industrialization as eary as the 17th and 18th

centuries.

However, it did not begin to industrialize until 1880s.

5. It took quite a while for the industrial means of production to prevail in the economy

&

for its attendant phenomena to become predominant in society.

Britain become the first country around 1820s which nearly all areas of life were influenced by

industry.

Except politics,

where the agrarian nobility & aristocratic financiers remained more influential than bourgeois

manufacturers and intustrialists

Everywhere in Europe, small areas of regional industry arose like islands of dynamic

development within agricultural environments.

Important for the globalization:

Factories were using steam engines & mechanization to produce an increasing supply of consumer goods, such as cotton textiles, at

decreasing cost.

Equally significant was the mass production of complicated, mechanized equipment and

machinery.

The most important of these were:

Steamships,

trains,

& more accurate & destructive guns and cannons.

In the mid-19. century

The impact of the industrialization of war & transportation felt far from the centers of

industrial production.

Industries were established in areas where a number of natural, technological, political, and social

resources & conditions converged.

Many of their products spread from Europe & North America throughout the entire world.

This was possible because:

a) Effective trading networks already existed in & between many economies that could be intensively used to expand global trade.

b) The use of steamships drastically reduced the transportation costs of long-distance trade for

mass goods & products of heavly industry

c) A demand gradually emerged for those prestige-conferring goods that were emblematic of

Western civilization.

Firearms

produced in Europe, had reached the interior of both Africa & North America before the IR.

The industrialization of arms production had contradictory effect.

a) It increased the output & made weapons, particularly light ones, more readily available.

b) The best products of the arms industry, such as heavy artillery & the slowly emerging warships built from iron, were becoming more and more

expensive.

The previousy “democratic” world of muskets now split into two:

a) The world consisting of the “great powers” who could afford the most modern weapons produced

by Krupp or Vickers.

b) Those would could not affort to buy such weaponry.

Further correlation between technology and power:

A gun simply built could be repaired by an African or Indian village blacksmith.

However,

the Maxim, [machine gun] invented in 1884 and immediately deployed in colonial wars, almost

never reached the hand of the “natives”

&

gave the imperialist user, colonizer, an incomparable advantage.

A renewed democratization of violence:

the submachine gun invented at the end of WWI

&

spread throughout the world.

The Industrialization of Transportation.

The use of steam enery to mechanize movement.

1830s: a breakthrough for the steamship

Its utility first proved in inland and coastal waters.

Then

Transatlantic steamship.

Steamships even appeared in non-Western countries:

in 1835 on the Euphrates.

In 1850:

A steamship was traveling from Shanghai to London.

The age of the sailing ship ended in the 20-year period between 1860 & 1880.

The opening of the Suez Canal in 1869,

built primarily for steamship use,

halved the time it took to travel

from London to Bombay.

The emergence of the major freight routes.

Scheduled trips

In the 18th century, sugar / the most important commodity traded in overseas commerce.

The second half of 19th century:

Huge amounts of wheat, rice, cotton & coal are shipped across the seas.

For decades most of the vessels hauling these products were built in English shipyards.

Railway Transportaion:

Originally served only local and regional purposes.

Then the railways started to shape each society.

The Age of the Railroad began in Europe in the mid-1840s.

By the turn of the century, railway transportation made an impact on only a few non-European

countries: India, Argentina, Japan, China, South Africa, Turkey.

Rails were laid as much for military as for economic purposes, as in India.

However;

The effect was still the same: It helped integrate the region into international commerce.

Major technical challenges, such as the Transcontinental Railroad connecting the

eastern and western coasts of the US in 1867, extended the influence of urban centers to areas

previously inaccessible.

Tourist began to replace the traveler.

Organized group excursions to the Ottoman Empire [Orient Express] & North Africa were nothing

special or exotic any longer.

The technological invention having the most dramatic effects on globalization: the telegraph.

Cables were easier to lay than railroad tracks.

Samual Morse’s first patent in 1839.

By 1866: the first transatlantic cable was in use.

In 1880: a telegram could be sent from London to any any place in the entire British empire,

whatever the continent.

Thanks to telegraph,

The speed with which news was transmitted between Europe and the US increased by a factor of ten

thousand.

This accelerated developments on the financial & commodities markets.

The volume of mail service increased tremendously:

Thanks to the transportation of mail by rail,

A drastic reduction of postage fees.

Modern postal service.

The repeal of Corn Laws

Free trade was implemented when Britain unilaterally repealed its most important duties in

1846.

Other states soon followed suit.

By 1870 all of Europe west of the Czarist Russia

had become a free trade zone.

Outside of Europe, the establishement of the utopia of global free trade required political and military

intervention.

Free trade and Challenges

Britain, by far, the world’s leading colonial power, introduced free trade to its colonies.

Non-European empires and states were not readily willing to abandon their own traditional orders and join in the effort of establishing a world of

“free” trade.

Such initial protest was overcome through pressure or military force (the Ottoman Empire, China, Japan,

and Siam [Thailand])

Free Trade Imperialism

“Unequal treaties” opened up markets that previously had been closed to products of

European industry.

By the end of the 19. century, the dominions of Canada and Australian were sufficiently

independent to introduce protective tariffs.

The Opening of Japan

The second pioneer of modernization outside of Europe was Japan.

Opened to the world only in 1853-54 as a result of a U.S. naval action,

Japan started down the path of resolute self-reform following the “Meiji Restaration” of 1868.

The First Constitutional State in Asia

During this period of reform, Western elements were adopted on a grand scale

&

then mixed with authentic or cleverly invented domestic traditions.

Japan did not become a genuine democracy, but in the 1880s it did become the first constitutional

state in Asia.

Private Space versus Public Space

Core institutions of social life such as the family remained Japanese,

while more formal institutions such as the military, police, governmental administration, and

universties either were restructured along the lines of carefully selected Western models,

or introduced for the first time.

.

Japan : Britain of the East

The foreign model was seldom left in its original form.

By the turn of the century, Japan was already being called

the “Britain of the East” or the “Prussia of Asia”

Intervention force

Britain possessed a worldwide dominion of the seas, an extensive intervention force, & the world’s

most lucrative colonies.

Once Britain has established itself economically as the world’s most dynamic force featuring the

highest standard of living per capita & attractive, free institutions, every other society, in

comparison, was a latecomer and potential imitator.

Britain as Model

Britain saw itself as both model & ordained policing power of the world.

By the 1860s, no ruling group could afford to close its eyes to Britain’s power, success, and

determination to civilize the rest of the world.

This led to a wave of reform movements everywhere from Latin America to the Ottoman Empire, from

Egypt to Siam.

Ruling Elites

By taking at least some steps towards accomadating the British, ruling elites hoped to ensure a place

for themselves & their countries in a world dominated by Western Europe, specifically

Britain.

This globalization via adaptation was marked by a similar ambivalence between compliance and

resistance, admiration and abhorrence.

Unipolarity in Culture

For the first time in history, a trend evolved toward unipolarity in the cultural realm.

The Western European-British path of development seemed to promise the greatest success.

It appeared that only a homogeneous, rationally organized, and powerful nation-state could

handle the new forces of the age.

The Age of Progress

What is relevant for the history of globalization is the new perspective from which the world viewed the

British-dominated West.

This view was underpinned by a universal history of progress.

Every country could be a part of this progress

&

there appeared no real alternative to this path.

Limits to cultural universalization

Still, the degree of cultural universalization must not be exaggerated.

Nationalism & nation-state-building

made the Enlightenment’s idea of the world citizen appear antiquated in Europe.

Science was housed within the university system of each nation.

Only a few ever talked about “world literature” after Goethe’s death in 1832.

“World history” was superseded by national histories.

World Expositions

World expositions were held on a regular basis starting in 1851 in Europe or the US.

These expositions celebrated the technical and material feats and achievements of the

“developed” peoples & those that “primitive” peoples had managed to accomplish with the help

of the West.

The First News Agency: Reuter

Julius Reuter founded in London in 1851 the first news agency.

He had set up within a decade a network of correspondents on six continents.

As the world became cabled, it became possible to supply the growing readership of daily

newspapers with current news reports from around the world.

Modern Press

A modern press began to emerge about 1870 in countries such as Japan, China, the Ottoman

Empire, & Egypt,

marking the beginning of a global trend in media development.

People, for the first time, were witness to international media events.

Documented Wars

The Crimean War & the American Civil War were the first wars to be documented by special

correspondents & photographers.

Other manifestations of Western high culture also spead to a similar degree worldwide,

such as popular theater or bel canto [soap] operas.

English as lingua franca

Following the colonial period, people continued to speak Spanish and Portuguese in South America.

Portuguese lost its role as lingua franco to English in maritime Asia around 1830.

English rose to become the number one global language.

This resulted from the demographic expansion of the Anglophone United States, the success of the

British Dominions, and the early expansion of the British into multilingual regions, such as

India and South Africa.

They were in need of a common language.

In the 20th century the triumphant advance of the English language was also aided by the culture

industry & the mass media.

The emergence of World Economy

During the age of free trade (1846-80), a significant number of economic relationships were

established worldwide,

usually unimpaired by governmental regulation.

The four basic features of the 19th century:

a) Migration – Migratory Patterns

b) Volume of world trade

c) Long distance transportation of mass commodities goods.

d) The appearance of economic cycles

Migration

Those who settled in a foreign part of the world experienced intensively the process of

globalization.

A new topography of cross-border migration evolved within Europe in the course of the 19th century.

People left southern, southeastern, and eastern Europe to move most often to Germany, France,

& Switzerland.

However,

the significance of these migratory movements pales in comparison to the migrations that accurred in

other parts of the world.

Between 1850 & 1914, about 60-70 million people left their homelands, never to return.

Overseas Migration

Among these were 40-45 million Europeans who migrated overseas, primarily to north and south America, 7 million immigrants to Asian Russia,

& 11 million Indians, Chinese, and Japanese,

most of whom became contract laborers (coolies) in foreign countries (Southeast Asia, the US, the

Caribbean, East and South Africa)

Slave Trade

Although the slave trade shrank steadily once it was outlawed by the British parliament in 1807,

no fewer than 2.7 million African were still sold as slaves to America between 1811 & 1867.

Isolated communities

Immigrants seldom blended immediately into their new environment.

They created ethnic communities – in extreme cases, self-sufficient “Chinatowns” – and enhanced the multiethnic character of their adopted countries.

Transoceanic kinship

Since the immigrants usually maintained contact with their homelands,

the long-distance migration of the 19th century covered the globe

with a netting of transoceanic kinship connections.

The migrants also contributed economically to global integration.

They settled the frontiers,

They were good customers for products from their homeland,

They increased the total global productivity by an efficient use of resources,

&

They often established new companies and branches of business.

The Immigrants in the US

The rise & continual success of the US as the world’s leading economic power cannot be explained

without acknowledging

the contributions of immigrants during the 19th century.

2. World Trade Volume

Between 1800 & 1913 the volume of world trade increased 25-fold.

One major boom in the expansion of commerce started in the 1850s, followed by another

extraordinary acceleration of growth starting in the mid-1870s.

World trade was growing much faster than world production.

However, ¾ of all international trade was concentrated withing Europe and within the

triangle of Western Europe, North America, & Australia-New Zealand.

The only colonies to become important economic subcenters were India & South Africa.

Masters & Organizers

The industrializing countries, led by Britain,

were the masters & organizers of this new phase of worldwide economic intergration.

3. Transportation of long distance

It was possible for the first time in history to transport mass commodities goods over long

distances.

In 1875 the attempt to bring refrigerated American meat to Britain succeeded.

Transcontinental distribution of goods

Steamships, railways, refrigeration technology & transatlantic telegraphy had now become mature technologies that could be employed profitably in

the transcontinental distribution of bulky, low-value goods.

The centers of production, trade, and consumption of commodities like wheat & meat were closely

connected.

Single World Market

Information on prices, supply, & demand now traveled considerably faster than did the goods

themselves,

a development that completely transformed long-distance trade & created a single world market.

Global division of labor

The decline of British grain production

&

the country’s transition to exporting finished products & importing grain

after the repeal of the Corn Laws in 1846

are the first examples of structural change caused by this new form of

a global division of labor.

Regional markets reacted to one another with until then unkown speed & sensivity. Convergence of

prices & wages

The advancing intergration of the Atlantic region began to make itself evident

in an increasing convergence of commodity prices & real wages

between Western Europe & North America.

4) Economic cycles.

The most unmistakable indication of closer global connections was the appearance of economic

cycles that affected the entire world.

The Great Depression that began in 1873 caused the prices of goods to fall world-wide.

Even more enduring was the favorable impact of an expansion in demand after 1896 on all

continents: the first worldwide economic boom.

Global Economic Cycles

The effects of these fluctiations spread quickly & widely on increasingly integrated markets held

together by efficient transport & communication networks.

By the late 19th century, almost every place on earth was affected by global economic cycles.

End of Part 1