5. GLOBALIZATION: The term was coined in 1961 an is not easy to define because it means different things to different people. The conventional definition is: the advance of transplanetary connexion among people but some will argue that it emphasizes people and that globalization is more about economic interest. // When did globalization started? Some people defend Juan Sebastián Elcano was one of the precursors of globalization because he sailed the world at the same moment as Europeans where discovering America. // We can separate contemporary globalization in 3 waves:
1.1850 > WWI: European and American phenomenon with industrialization, technological innovation (steam engine, railway), urbanization and development of big cities. It comes to an end with the WWI and the Great Depression of 1929.
2.1945-1970’s: US is the protagonist. They create new institutions that start shaping the rules of globalization. For example the Bretton Woods agreements that established the rules for commercial and financial relations among US, Canada, Europe, Australia, and Japan. It provided a frame for globalization. But the oil crisis starts and troubles the economy (countries depended on oil) causing the end of this wave of globalization.
3.Post 1990’s (post Cold War): there’s a debate going on whether it’s still there or not. Some authors predicted that countries like Brazil and India would be the new economic powers. The 3º wave is different than the rest because it’s truly global (it reaches Latin America, Asia and Africa), it’s much more intense and fast and there are more people living in the cities than in rural areas. // The question going on now is: is globalization going down? Secular stagnation is happening today, we have low levels of growth, inflation and population. The 2008 crisis gives some evidences of deglobalization. It’s like the waves process: globalization continues to develop but is going down. // The IMF (International Monetary Fundation) published an article in 2008 and gave 4 dimensions of globalization: