CHAPTER 3: THEORETICAL FRAMEWORK
3. Introduction
3.6. Dimensions of globalization related to the four institutions of modernity
The global capitalist financial state is a centre for commercializing merchandise and services which comprises the commodifying of labour power in class relations that separates employees from control of their resources of manufacturing (Giddens, 1990: 72). The latter is filled with consequences for worldwide disparities (Ibid., 72). Giddens (1990: 70) notes that capitalist nations are the primary point of power in the global economy – countries in which capitalist economic pursuits (with the class relations that this involves) constitute the principal type of production.
Corporations are the ruling actors within the global economy (Ibid., 71). In their dealings with each other, with countries and clients, firms (manufacturing, financial and banks) rely on production for interest (Ibid., 71). Corporations, particularly those that operate across national boundaries, have considerable economic influence in terms of worldwide spread of commodity markets, involving
money markets (Ibid., 70, 71). In addition, they have the ability to impact political policies at their home base and in other places (Ibid., 70). However, despite the influence of corporations, there are three crucial points in which they cannot compete with nations (Ibid., 70). Giddens, points out that nations rule territories; they have control over both the structure of the legal system and the means of violence while corporations do not possess these powers (USC Annenberg, 2008: 39:09-39:27).
Nation states are therefore more powerful than companies in this regard (Ibid., 38:56-39:00).
3.6.2. Nation-state
Nation-states originated in Europe, but in the present-day are found worldwide (Giddens, 2006:
1026). The managerial co-ordination of the nation state depends on the formation of surveillance capabilities which were not present in traditional societies (Giddens, 1990: 57). The modern state or nation state is a specific kind of state, where a government reigns over a specified region, and whose power to give orders is supported by the judicial system and the ability to use military power to enforce policies (Giddens, 2006: 844, 1026). Countries are the main agents within the global political order (Giddens, 1990: 71). The impact of nations within the global political structure is powerfully conditioned by the degree of their wealth (Ibid., 72). Countries prioritize their territorial privileges; they are focused on promoting their regional customs, and they can conclude plans for geopolitical collaboration with other countries or alliances of countries (Ibid., 72). Other features of the nation state include the following: sovereignty, citizenship and nationalism (Giddens, 2006:
845). Sovereignty is the idea that the government has the power to give orders over a region with definite boarders (Ibid., 844). These states comprise a large number of people: many of these are citizens who have common rights such as freedom of speech and consider themselves to be a part of one state (Ibid., 844). Nationalism is another feature of nation states and it can be defined as a collection of symbols and views giving the sense of belonging to a nation (Ibid., 845). The composite of all these aspects has made Western advancement an apparently desirable goal (Giddens, 1990: 63).
3.6.3. The World Military order
The spread of military power includes the spread of weapons and practices, as well as partnerships between the military of different nations and the conducting of actual wars, such as for example the two world wars (Giddens, 1990: 75). These wars demonstrated the way in which regional clashes can become events involving global participation (Ibid., 75). In the two wars, participants came from nearly all areas of the world (Ibid., 75). After World War II there has been a worldwide mutual reliance with regards to the division of labour (Ibid., 76). The wars in a few Asian countries are examples of the global military order (Siapera, 2012 :29). Globally, the ability to collect data may possibly differ due to the wars waged in different parts of the world. The militaries’
involvement in defense and security and its relevance for the study was discussed in Section 3.2.
3.6.4. International Division of Labour
The fourth dimension of globalization is the international division of labour which comprises the distinctions between more and less industrial parts of the globe (Giddens, 1990: 71, 75). This might include the differences between more developed countries and LDCs. Division of labour is seen on various fronts, for example, the level of career responsibilities, kinds of industry, possession of skills and the manufacture of raw materials (Ibid., 76). Using PSNSs, employers can identify candidates with particular skills and locate candidates in different industries worldwide. Since the second World War, there has been an extension of worldwide interdependence in the division of labour (Ibid., 76). This has assisted to trigger changes in the global distribution of production, including the deindustrialization of some areas in the developed nations and also the development of the ‘Newly Industrialized Countries’ in the Third World (Ibid., 76) which Giddens (2006: 1027) defines as Third World economies which have started to form a stable manufacturing base over the past 20 or 30 years.
Industrialism has had both a negative and a positive impact (Giddens, 1990: 76, 77). It has brought negative ecological changes that affect everyone in the world (Ibid., 77). However, it has also affected our very sense of living in “one world” because one of the key effects of industrialism has been changes in communication technologies (Ibid., 77). These changes are not limited to production, but are also impacting the nature of daily life (Ibid., 76). However, not all societies in
the world have fully experienced these technological innovations that are brought about by capitalism and industrialism. One can therefore argue that modernity produces both difference and exclusion (Giddens, 1991: 6). For example, as is seen in the studies by ITU there are differences in internet usage among developed, developing and LDCs (ITU, 2016b).