20th Century Globalization

Year

1450 - 1750

The Age of Exploration

Exploration and colonization began the process of early globalization. The discovery of new lands and resources led to trade between peoples. Colonization brought ideas, customs, political systems, and religions from European nations and enforced their practice on existing cultures in all corners of the world.

The establishment of colonies, and the beginning of the international slave trade on a large scale, led to a rapid increase in resource extraction and economic growth. Some positive cultural exchange did occur, and educational advancements led to an increasingly literate world population.

1750 - 1800

Beginning of Industrial Revolution

During this period, the process of transition from an agrarian society to an industrial society occurred. The use of machines allowed for faster and greater extraction of resources. Early factories were established and the large-scale production of consumer goods led to increasing urbanization.

1800 - 1914

First Wave of Globalization

Technological advancements in transportation such as the steam powered ship and locomotives increased the speed at which goods were exchanged. Major discoveries such as electricity revolutionized technology across all sectors, leading especially to advancements in communication.

The ability to communicate quickly across long distances fundamentally sped up the pace at which the world operated and connected people in places that would have otherwise been unreachable or taken long periods of time to reach.

All of this led to an unprecedented period of economic growth and development.

1914 - 2000

20th Century Globalization

The World Wars altered the course that globalization had taken, redirecting it toward international cooperation, stability, and peace. The march of capitalism continued, and countries such as China and India rose to rival Western economic dominance.

The rapid development of new technology continued and accelerated even further. Medical and scientific advancements occurred at an astonishing rate, with computers allowing the development of previously unimaginable inventions. The internet transformed communication and education, making information available to anyone with internet access.

The exploitation of the global South by corporations drove up inequality between countries. The exploitation of the environment by industry led to the catastrophic destruction of ecosystems, and to global warming, which will direct the course of human history to come.

Organization

Year Established

Purpose

International Monetary Fund (IMF)

1944

In the wake of World War 2, the IMF was founded to foster monetary cooperation between countries and to stabilize international markets.

World Bank

1944

Originally called the International Bank for Reconstruction and Development.

The World Bank was created to channel loans from wealthy countries into poor ones, although those loans came at the price of the World Bank’s influence over the recipient country’s monetary and political actions. Ultimately, the organization was a powerful tool for shaping economies in ways that further entrenched the power of wealthy western countries.

World Trade Organization (WTO)

1995

A worldwide group that works to liberalize and monitor international trade. While the WTO was only established in 1995, it’s the successor to the General Agreement on Tariffs and Trade, which was created in 1947 with the similar aim of removing barriers to global markets.

Fig. 4 World Trade Organization

United Nations (UN)

1945

Formed to promote peace, cooperation, and social progress between nations. The United Nations has several agencies operating autonomously beneath its umbrella. These bodies pursue more specific objectives, such as humanitarian relief or agricultural development.

World Health Organization (WHO)

1948

A specialized agency of the United Nations, the WHO was created to improve public health conditions. World Health Day, on April 7th, commemorates the founding of the organization.

Organization for European Economic Cooperation (OEEC)

1948

Established to coordinate the development of European economies in the wake of WW2.

Organization for Economic Cooperation and Development (OECD)

1960

This organization was founded as a replacement for the OEEC which could apply to countries outside of Europe.

North Atlantic Treaty Organization (NATO)

1949

NATO is a defensive military alliance between several western-allied countries and was established to counter and deter the nearby Soviet forces in the wake of WW2.

Organization of Petroleum Exporting Countries (OPEC)

1960

OPEC was established as an oil cartel, uniting the trade forces of Saudi Arabia, Iran, Iraq, Kuwait, and Venezuela. OPEC regulates the price and supply of oil and has applied political pressure to other countries by way of trade embargoes.

Example

Explanation

Transportation

As markets around the world became interdependent, the long-distance transportation of people and goods became vital. The development of faster, cheaper means of transportation throughout the 1900s both enabled and was spurred forth by the increase in globalization.

The Internet

The Internet both facilitates greater access to international markets for individuals, as well as a greater exchange of culture and ideas worldwide.

Capitalism

Throughout the 20th century, globalization was largely developed in a way that suited the ideals and advantages of developed Western nations. As a result, the spread of the free market capitalism currently seen around the world is both a byproduct and instigator of globalization.

Fig. 5 Capitalism Poster

Wars

While 20th century globalization facilitated cooperation between many nations, it also caused tension between others in an increasingly complex world stage. These tensions fueled both World Wars, The Cold War, and numerous proxy wars throughout the 20th century.