Europe and Globalization

Images of Globalization



Definition of Globalization

Globalization can be understood as a new stage in world integration. Joseph Stiglitz had defined it as “the removal of barriers to free trade and the closer integration of national economies” (Joseph Stieglitz: Globalization and its Discontents, p. IX). Theoretically, it is based upon two economic laws:

Globalization as a Political Concept

The following three main theories claim to offer an understanding of world politics:

Each of the three theories respond to globalization in their own way (John Baylis and Steve Smith: The Globalization of World Politics, p. 6):

Pro Globalization

Contra Globalization

A rapid economic transformation made the world more interdependent

Globalization is a mere buzz word, or globaloney. There is actually nothing new under the sun.

Communications have revolutionized our transactions and interactions

Globalization is very uneven in its effects. Globalization mainly applies to the developed world.

There is now a global culture with urbanization and resemblance

Globalization may simply be the latest stage of Western (American?) imperialism

The world is becoming more homogeneous

Globalization is not a win-win strategy but a win-lose strategy with significantly more losers than winners. Globalization thus is exploitative.

Time and space become relative

Globalization has its dark sides. Drug cartels, prostitution rings, international terrorism, etc. can now operate globally.

There is emerging a global polity, with transnational social and political movements

There is a lack of democratic control and accountability

A cosmopolitan culture is developing in which people think globally

There seems to be a paradox at the heart of the globalization thesis: the most successful national economies do NOT subscribe to Western values

A risk culture is emerging

Globalization and Europe

Globalization does not only come in the form of a higher volume of real international trade and more interconnectedness but also in the form of virtual wealth based on future expectation. As this system has some resemblance with a pyramid scheme, it can only function if constantly new markets are opened up. In the process the Old World Order is being destroyed and a “New Whirled Order” (Daniel Hamilton and Joseph Quinlan: Globalization and Europe: Prospering in the New Whirled Order) created. Europe's answer to this is “Managed Globalization” (first used by Pascal Lamy in 1999, then European Commissioner for Trade and now Director-General of WTO). It is a European response to globalization to protect European interests without protectionism.

Global Economics - Global Exchange: Free Trade & Protection