Globalization and Development

Read this text about globalization and its effects. About ⅔ of the way through, it brings in Rostow's ideas and how it informs the Human Development Index (HDI). It then explains how, together, the HDI and Rostow's stages of growth combine to create a way to understand development.

Globalization

U.S. President George H. W. Bush gave a speech during his presidency (1988–92) indicating the real possibility of a New World Order. The speech, given during the Persian Gulf War when Iraq occupied Kuwait, was quite surprising to many, and it created questions about what he meant. Geographers and professionals in other disciplines understand that the world is not static. Cultural forces continue to act on human activities as globalization creates new alliances and global networks. The goal is to understand globalization and to make sense of what is happening. The better we understand the world and human dynamics, the better we will be prepared to address the changes that are occurring. Geography provides a means to spatially examine these changes.

Globalization is a process with a long history. People have been exploring, migrating, and trading with each other throughout human history, and these activities have created interactive networks connecting the different parts of the planet and producing dependent economic relationships. In modern times, globalization can be recognized by noting iconic global corporations, such as Walmart, McDonald's, or Toyota, that trade across international borders and integrate labor and resources from different countries to sell a product or service in the global marketplace. In a number of countries, people have protested against the building of new Walmarts or McDonalds', and such protests exemplify concerns about globalization and the growing expansion of dominant global economic units into local communities.

These ubiquitous corporations represent corporate interests that are primarily concerned with company profits. Global corporations tend to view countries or communities as either markets for their products or sources of labor or raw materials. Globalization can seriously impact local communities for better or for worse, depending on local circumstances. The main force that encourages globalization is economic activity based on technological advancements. Cultural and societal changes often occur as a consequence and are no less significant.

Political geography examines geography's influence on political systems and globalization, which are related to issues concerning the development of borders and the distribution of government types. One of the most significant events in political geography was colonialism, which is connected to the development of capitalism. Eric Wolf, in his book Europe and the People without History, details the expansion of European powers throughout the world to control both human and natural resources as well as expand a country's world power and promote Christianity. The British parliamentary system of government was exported to various areas of the British Empire. Now the parliamentary system is used throughout the world in former British colonies and throughout the British Commonwealth. Additionally, colonialism helped spread the English language throughout the world, for example, to India and the United States.

European colonialism was an early wave of globalization that changed the planet and shaped most of the world's current political borders. This early wave of global conquest was fueled by the Industrial Revolution. Colonialism transferred technology, food products, and ideas around the globe in merchant ships that centered on the European power bases of the colonial empires of Europe - mainly Britain, Spain, France, Portugal, and the Netherlands. When the United States became independent of these European colonial powers, it began to extend its power and influence around the world. Thus the first major wave of globalization was a result of European colonialism.

 Image of a ship representing European Colonialism

Figure 1.30 European colonialism changed many things. The expansion of European empires was driven by the search for profits from resources and labor in the acquisition of new lands. European colonialism had a significant impact on people and cultures.


The space race and the information age of the latter portion of the twentieth century initiated a second major wave of globalization. The space race was a competition between the United States and the Soviet Union to develop space-related technologies, including satellites, and to land on the moon. The end of the Cold War, with the collapse of the Soviet Union in 1991, coincided with advancements in computer technology that fueled the second major wave in modern globalization. Technology and corporate activity have stimulated a wave of globalization that is impacting the economies of countries around the world. In European colonialism, the land and people were physically conquered by the mother country and became colonies ruled by the European colonizer's government.

Great Britain was the most avid colonizer and amassed great fortunes through its colonial possessions. One difference between European colonialism and globalization today is that globally active multinational corporations do not wish to own the country or run the government directly. Corporations are not concerned with what government type is in power or who is running the country as long as they can operate and make a profit. This neocolonialism (new colonialism or corporate colonialism), like European colonialism, continues to exploit natural resources, labor, and markets for economic profits. Its critics claim that corporate colonialism is nothing more than a legal method of pillaging and plundering, and its supporters claim it is the most efficient use of labor and resources to supply the world with the lowest-priced products.

 Photo of a Walmart store.

Figure 1.31 After the turn of the 21st century, Walmart became the world's largest corporation. Its global expansion and economic relationships are good examples of the activities of corporate colonialism.


Examples of corporate colonialism can be seen in the trade relationships between the United States and places such as Mexico and China. US corporations move their manufacturing plants to Mexico to earn more profits by exploiting cheap labor. The corporations do not take over Mexico politically; they exploit it economically. The many US corporations that have started manufacturing their products in China do not attempt to overthrow the Communist Chinese government; they want to exploit the cheap Chinese labor pool and open up markets to sell products to Chinese consumers. Desire for profits drives corporate colonialism.