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WHAT IS GLOBALIZATION

In its broadest sense, globalization can be seen as an inherent part of human experience. Since prehistoric times humans have been growing in number; interacting with other groups, peacefully or not; building larger economic, social, and political organizations; discovering, using, and sometimes destroying the resources of the planet; and generating new knowledge and technologies. That process has led to the emergence of empires, with the ebb and flow over the centuries of explorers, crusaders, missionaries, merchants, and colonists.

The powerful wave of globalization associated with modern economic growth in the second half of the 1800s and early 1900s brought the level of world integration to a new peak, with convergence in commodity and, to a lesser extent, factor prices. It ended in pain and disintegration with two world wars and a global economic depression between them. The world emerged in the 1950s divided both politically and militarily. But soon, another pervasive wave of economic, political, and social integration was rolling forward. That process has been driven by important changes in the generation, adoption, and diffusion of technology, including major advances in communication and transportation. It has been further promoted and accelerated by economic deregulation and liberalization in many countries and by the end of the Cold War, which eliminated some of the geopolitical barriers to world integration. The dramatic increase in world population is also creating denser economic, social, and environmental linkages.

Here, we take a broad view of globalization to include three general dimensions, each with economic and non-economic components.

First, globalization refers to the multiplication and intensification of economic, political, social, and cultural linkages among people, organizations, and countries at the world level. This notion includes a greater flow of trade and finance; expansion of cross-border communications; greater international interactions among political groups, nongovernmental organizations (NGOs), and other members of civil society; and even increased levels of tourism.

A second dimension is the tendency toward the universal application of economic, institutional, legal, political, and cultural practices. It is related to the first dimension in that increased linkages generate a need for common institutions and rules. Examples in the economic arena include the codification of trade rules under the World Trade Organization (WTO) and its predecessor the General Agreement on Tariffs and Trade (GATT); common approaches to banking supervision, accounting, and corporate governance; the convergence toward economic policies based on similar standards of monetary and fiscal discipline; and reliance on free markets. Recent phenomena such as the spread of democracy, the increase in the number and coverage of environmental treaties, and even the controversial possibility of cultural homogenization in the areas of entertainment, food, and health, are examples of the major noneconomic aspects of this second dimension.

Finally, a third dimension is the emergence of significant spillovers from the behavior of individuals and societies to the rest of the world. Environmental issues such as cross-border pollution and global warming are inherently international. National economic crises may lead to financial contagion and ripple effects on the economies of other countries, requiring coordinated international responses. Health issues, such as the spread of HIV/AIDS, require an international approach, as do issues of global crime (for example, drug trafficking and money laundering). And there are also the problems of war and international violence. Again, the dimensions are linked. Spillovers occur because there are more channels of interaction. Then, global norms and institutions are required to provide a framework for coordinating responses.

The economic aspects of globalization usually receive the most attention. Indeed, some observers tend to equate globalization with policies of domestic and international market liberalization, and in the case of developing countries, with internationally coordinated structural adjustment and stabilization programs. Here, we take a broader view of both the drivers and the dimensions of globalization.

Full Text of all Briefs
Individual Briefs in Focus 08:

1. Introduction
   Eugenio Díaz-Bonilla and Sherman Robinson
2. The Nature of Disagreements
   Ravi Kanbur
3. Growth and Poverty
   Manohar Sharma, Sam Morley, and Eugenio Díaz-Bonilla
4. Trade and Food Security
   Eugenio Díaz-Bonilla and Marcelle Thomas
5. Nutrition
   Julie Babinard and Per Pinstrup-Andersen
6. High-Value Agriculture
   Christopher Delgado, Nicholas Minot, and Nikolas Wada
7. Food Safety and Food Quality
   Laurian J. Unnevehr
8. Technological Change
   Peter B. R. Hazell
9. Intellectual Property Rights and Agricultural R&D
   Philip G. Pardey and Brian D. Wright
10. Environment
    Stanley Wood
11. Democracy and Civil Society
    Marzia Fontana and Yukitsugu Yanoma
12. Conflict and Food Insecurity
    Ellen Messer and Marc J. Cohen
13. Governments and Public Policy
    Eugenio Díaz-Bonilla and Sherman Robinson