lunes, 21 de septiembre de 2009

GLOBALIZATION: WHAT IT MEANS ?

By: Felipe Argote

Often used as a crutch to justify the progress as well as the misfortunes of mankind. Globalization is a concept which we believe has not been clearly defined. We see that some authors with economic formation goes unacceptably from been superficial to generic. Some argue that globalization begins when Christopher Columbus began the invasion of America as it is at this time to globalizes economic, political and cultural relations. Nothing more extravagant. Other writers, some without the slightest suspicion of what a classroom of econonomy studies is, describe the processes that explain the productive relations, venture to mention how interesting it is the term global village, so disturbing that sounds contradictory.

However, it is worthwhile to clarify that the most diligent analysts in the field include a number of concepts that clarify the difference between the way we produce before and after globalization and come close without reaching the heart of this global phenomenon.

Speaking of those without economic training have to Lew Rockwell, a political commentator lawless capitalism booster who defines globalization as:

"A fundamentally economic process that involves the increasing integration of individual national economies into one global market economy"[1]

Too simple.

But let´s see the etymological definition. The term globalization is an anglicized. Globalization in its definition is Anglo-Saxon globalization or global setting. There is not a term coined by a conference of experts, only a bad translation of the English. In Spanish that translated the term globalization would be mundialization in any case.

But this is not simple grammar. Here are some most authoritative definitions:According to the International Monetary Fund:

"Globalization is a growing economic interdependence of all countries, resulting from increased volume and variety of cross-border transactions in goods and services as well as international capital flows, while the widespread diffusion of technology .[2]

In contrast to the Economic Commission for Latin America (ECLA) globalization is:

"The process by which a major and growing part of the wealth and value is generated or produced through interconnected private networks of production and supply".[3]

The prospect of World Trade Organization WTO can gather Approach by Pascal Lamy, director general of this organization:

"The World Trade Report this year focuses on the importancia trade in a world in recent decades has been characterized by a growing dependence between countries. This interdependence is now called globalization is a complex and multifaceted phenomenon that involves an intense political interaction, social and economic nationally and internationally. "[4]

All you have previous redeemable elements, however in our opinion the most accurate definition would be:

"Globalization is the transnationalization of the production process"

Let me explain. Before the industrial revolution in the Middle Ages, the production process were carried out by the guilds. These were productive partnerships where participants gathered in the small workshops of production as the hierarchical level, teachers, government servants and apprentices. Based on a rigid internal organization of teachers leading the group located in craft workshops where the officers could become teachers over time, while the servants were confined trainees to remain in its low level. The interesting thing is that the manufacturing process was carried out by a single officer or teacher assistants. For example, from leather officer or teacher cut, sewed and dyed the product hit, achieving a final product scale unlike any other.

The production process leaps to blow up the industrial revolution in the mid eighteenth century with the invention of spinning by John Kay helped to delineate several threads simultaneously. After the invention of the spinning frame for Richardd Arkwright and later by Crompton combination that gave the functionality that allows for lowering production costs so far as to gowns massify sale in Europe. Finally, most importantly, the emergence of the steam engine. The industrial revolution changed the production process and invariably led to specialization. It would be very long list of theoretical systematization Adam Smith gave primarily to the specialization. The interesting thing is, to follow our example, now each of the participants in the process will specialize in what they are more efficient. The spinners, cutters, stitchers, which stained, the saddlers, each in its area definitely helped by the leap in technology of the day, bringing production levels to the point where it is considered a revolution. Since then industry takes over the head of the productive sectors over trade and agriculture.
This jump is thus a phenomenon where technology were combined with favorable conditions and ultimately result in a new production system. The favorable conditions for the development of this process provides a new economic model: liberalism.

In the late 80s and early 90s of last century unfolds a phenomenon which also combines new technologies, some who had decades of existence. Recall that the spinner rack Kay and Arkwright had been useless without convincing the political and economic conditions for the invention of Crompton entered the market, and the steam required for the social conditions imposed over the system guilds, exercised a high level of power and against those who imposed the new production process.

Not all items arrived at the same time the industrial revolution. Many inventions took decades without being given a practical use. The same is true in the new leap in the production process called globalization. The invention of the chip was made in 1958 by Jack Kilby, Nobel Laureate in Physics, who worked for Texas Instruments. Like the internet, but whose development had its genesis in 1969 called ARPANET which communicate with the universities of Stanford and UCLA, the world wide web as we know it emerged in 1989 in the CERN (Conseil Européen pour la Recherche Nucléaire), ie the European Council for Nuclear Research in Geneva, where a group of physicists led by Tim Berners-Lee created HTML. In 1990 the same team built the first web client, called World Wide Web (www) and the first Web server.

The combination of these elements of technology together with warm, moist environment that resulted from the so-called Washington Consensus, a term coined by John Williamson, where systematize the actions that structure the implementation of the neoliberal model proposed by Friedrich von Hayek in his book "The Road to Serfdom" and then seconded by Milton Friedman. Before Washington Consensus many of these measures were applied haphazardly since 1982 in the countries under pressure from international financial institutions. The combination of warm, moist environments like the neoliberal model that reduces barriers and press the universal privatization, together with the existence of a leap in computer technology and robotics, determines the production process transnacionalice. It is true that there were multinationals since the late nineteenth century and were strengthened further after the Second World War, but its branches developed almost the entire production process in the countries where they would sell their production. This worked for a Keynesian economic model of import substitution orations, whose policy of high tariffs pressing for industrial enterprises were established in the place where stood the demand. By eliminating these barriers and with the leap in technology, multinationals produce the production in the area that is most convenient. The most obvious case is the computer. Its external components, hardware, can be produced in Malaysia, the chips in Taiwan, the software in the U.S. or Japan but was completed in the stores sold, depending on whether the customer wants to memory card 100 or 200 gigabytes if you want your video card, if you want Windows XP or professional, if you want output from usb or cd player. This is the fundamental element that defines globalization. The production process is fragmented and transnationalized. All the other elements are just fellow travelers.


[1] Lew Rockwell Web page. http://www.lewrockwell.com/. 2009.[2]Page of the International Monetary Fund. http://www.imf.ogr/. 2009.[3] Page of the Economic Commission for Latin America and the Caribbean CEPA. http://www.eclac.org/. 2009[4] Pascal Lamy. Director of the World Trade Organization WTO WTO website. http://www.wto.org/. 2009

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