TITLE OF THE LESSON: History of Globalization

Introduction
Globalization is one of the most debated topics in the field of Social
Sciences. Scholars still argue on the issue as to when and where it started. In
the previous lesson, we mentioned that globalization is a process which
cannot be defined clearly with beginning and an ending.
This lesson will discuss different factors related to globalization and put
them into a historical perspective. The different periods that contributed to the
emergence of globalization will also be included in the lesson.

Lesson Proper/Course Methodology:

Technology is always evolving, it is never regressive. It also provides

efficiency and enables us to perform tasks in less time. Over the years, we
have seen how globalization brought convenience in our lives in the form of
technological innovations. But the question is where do we attribute the
beginning of globalization?
According to Kenneth Waltz as cited by Brawley (2008), many of those
who argue that globalization is something quite new underestimate the extent
to which the present looks like the past. Is globalization all that new? In this
lesson we will look into several eras which can be seen as periods when
globalization is seen as powerful political, economic, cultural and historical
responses.

Trade is measured as one of the most important factors that started the
cross- border relationship among nations. This process involves transfer or
exchange of goods and services from one person to another or one country
to another. The following are the most important periods in the emergence of
globalization.

Silk roads

Silk roads
are ancient
network of trade
routes that
connect the east
and the west. (as
shown in figure
1)These routes
have been useful
to carry out goods
and services. Silk
is one of the most
common products
for trading at that
Image source: https://www.weforum.org/agenda/2019/01/how-
globalization-4-0-fits-into time. Silk is a fiber
-the-history-of-globalization/
Figure 1. The Silk Road
obtained from
silkworms which
can be woven into
textiles.

People have been trading goods from the very start. Yet in the 1st
century BC, an incredible phenomenon occurred. Luxury products from China
started to appear in Rome. They got there after being hauled for thousands of
miles along the Silk Road. Trade had stopped being a local or regional affair
and started to become global (Vanham, 2019).

This is not to conclude that globalization started intense. Silk was

considered a luxury good, together with the spices that were added to the
intercontinental trade between Asia and Europe. The value of these exports
was tiny, in relation with the total income of the economy, yet many middlemen
were involved to get the goods to their destination. But because of this, global
trade links were established. Silk road served as the key to people‘s
movements and open the doors for trans-border relations among countries.

According to Kuzmina (2008) this was the road that for many centuries
saw the movement of people, object and ideas. Ethnic migrations, trade that
was first conducted in stages and later by caravan, the spread of advanced
technologies and ideological conceptions- all were part of the process by
which the achievements of the different people of Eurasia blended into a
universal stream.

16th century

During this period, Europeans was recognized worldwide by building

trade connections on their own terms, bringing their culture to different regions
by settling vast areas, and defined the ways in which different people were to
interact with each other.
The main focus of the Islamic trade in the Middle Aged was spices.
The spices were traded mainly by sea since ancient times, unlike silk. But
by the Medieval Era spices had become the focus of international trade.
Leading among them were the mace, nutmeg, and cloves from the Maluku
islands in Indonesia. These spices were extremely expensive and in high
demand, not only in Indonesia but also in Europe. But compared with silk,
they remained a luxury product, and trade remained relatively low volume.
Globalization at this time still didn‘t take off, but the original Belt (sea route)
and Road (Silk Road) of trade between East and West did now exist
(Vanham, 2019).

During this period, colonization took place in different parts of the world.
Several sponsored expeditions were made by European countries in search
for spices. Spices are also popular goods for trading at that time. They are
considered highly valuable goods because they are very hard to obtain.
Because of minimal technological advancements, spices are being used as
medicine and food preservatives.

First wave of globalization (19th century)

This marked the period of intense globalizations, when millions

migrated, trade greatly expanded, and new norms and organizations came to
govern international conduct.

International relations and cross-border activities started to change with

the first wave of globalization, which roughly occurred over the century ending
in 1914. By the end of the 18th century, Great Britain had started to dominate
the world both geographically, through the establishment of the British Empire,
and technologically, with innovations like the steam engine, the industrial
weaving machine and more. It was the era of the First Industrial Revolution.
This period is characterized by machine manufacturing and industries. During
these times, cities grew as people shifted from farming/agriculture to industry
and commerce.

According to Allen (2017), Industrial Revolution refers to the far-

reaching transformation of British Society that occurred between the mid-18th
and mid-19th centuries. Some of the advantages of this period are:

• Invention of machines to spin and weave cloth.

• Steam engine was widely used as a source of power.
• Using of coal in smelting and refining iron.
• Construction of railways.
However, the Industrial revolution also had a downside for it brought
poverty along with progress. Some of the disadvantages are:
• Technical change threw people out of work.
• The cities were polluted.
• The provision of education was limited.
• Worker‘s housing condition was poor.

Allen (2017) added that the Industrial Revolution made for a fantastic
twin engine of global trade. On another note, trains and steamships could
transport goods, both within countries and across countries. Moreover, its
industrialization authorized Britain to produce products that were in demand
all over the world, like manufactured goods, textiles, and iron. With its
advanced industrial technologies, Britain was also able to bombard a huge
enlarging international market. The result of globalization could be seen
through numbers. Trade grew on average 3% per year, for about a century.
That growth rate drove exports from a share of 6% in the early 19th century,
to 14% in the eve of WW I. As stated by the Economist, John Maynard Keynes,
London could order through telephone the goods and services it wants while
sipping tea and lying on bed.

While Britain was the country who benefited most from globalization, as
it had the most technology and capital, other countries did benefitted too, by
exporting goods. For instance, the invention of the refrigerated cargo ship
or ―reefer ship‖ in the 1870s, allowed countries like Uruguay and Argentina,
to enter the golden age of globalization. They started to mass export meat,
from cattle grown on their vast lands. Other countries, too, started to specialize
their production in those fields in which they were most competitive.

For More (2000), Industrial Revolution implies industrialization- that is

both the absolute growth of industry and its expansion relative to the other
sectors of the economy, those being agriculture and services. Industry in this
context covers manufacturing, mining and building.

Image source: https://www.google.com/search?q=industrial+revolution&tbm=isch&ved

Figure 2. Illustration of the Industrial Revolution

Yetthe first wave of industrialization and globalization also coincided

with darker events, too. Many workers in the industrialized nations did not
benefit from globalization, for their work is commoditized by industrial
machinery, or their output undercut by foreign imports.

Figure 2 shows the illustration of how industrial revolution brought rapid

changes in our world today. As they say, it took centuries for us to reach this
golden age. Several waves of industrialization bring us to today, when a new
era of globalization is once again upon us.

According to Schwab (2016), the first industrial revolution traversed

around 1760 to 1840. It is triggered by the invention of steam engine and
construction of railroads. The second industrial revolution which started in
 the late 19th century and into the early 20th century, made mass production
possible, fostered by the advent of electricity and the assembly line. The third
industrial revolution began in the 1960‘s. It is usually called the computer or
the digital revolution because it was catalyzed be the development of semi-
conductors, main frame computing and the internet. Nowadays, we are at the
beginning of the fourth industrial revolution or the globalization 4.0. It is
characterized by a much more present mobile internet, by smaller and more
powerful sensors that have become cheaper, and by artificial intelligence and
machine learning.

Globalization 4.0 (20th Century)

Globalization in the 20th century is considered as the golden age of

globalization. Movement of people, goods and services across national
borders was at least as free and significant as it is today.

In a world dominated by two powerful countries, China, and the US, the
new partition of globalization is the cyber world. Digital economy, in its early
years during the 3rd wave of globalization, is now becoming a strength to
reckon with through 3D printing, digital services, and e-commerce. It is further
empowered with artificial intelligence, but is threatened by cross-border
hacking and cyber-attacks (Vanham, 2019).

Moreover, a negative globalization is enlarging too, through climate

change. Pollution often leads to extreme weather events in another. This has
a further devastating effect not just on the world‘s biodiversity, but also in its
capacity to cope with hazardous greenhouse gas emissions. As they say, for
every production, there is destruction, and for every consumption, there is
waste.

Read the statements below. This is taken from the article ―How
Millennials Can Make Globalization 4.0 Work For All‖ by Luscombe (2018).