The essentials
Globalisation refers to the growing interconnectedness of the world through the flows of ideas, capital, commodities and people across borders. It is a multi-dimensional process with political, economic and cultural aspects. Its main driving force has been technology: the telegraph, telephone, microchip and internet have made communication and movement of capital far faster and cheaper.
Economic globalisation involves greater trade in goods, more movement of capital and the growing role of international institutions such as the IMF and the WTO. Many countries have reduced restrictions on imports and foreign investment. The flow of people across borders, however, has remained more restricted than the flow of goods and capital.
Political globalisation affects the role of the state. Some argue that the state's capacity has declined and that the welfare state has given way to a more minimalist state focused on core functions such as law and order, while markets take over many economic and social decisions. Others argue that the state remains strong and that technology has even increased its ability to collect information about citizens.
Cultural globalisation affects what people eat, wear and think. Critics fear cultural homogenisation, in which the dominant culture of a powerful country spreads everywhere (sometimes called "McDonaldisation"). Others point to cultural heterogenisation, where cultures borrow and mix, producing new combinations and widening choices.
Key points
- Globalisation is not only economic; it has political and cultural sides.
- It does not affect all countries or groups in the same way.
- Example of mixing: young people may wear jeans with traditional clothing, creating a blend of styles.
Common mistakes
- Assuming globalisation means the free movement of people. Restrictions on migration have remained significant.