5 DIMENSIONS OF GLOBALISATION POST-COLD WAR ERA (2024)

With the dissolution of the USSR globalization impact on social, technological, economic, environmental and political forces begun to propagate to unprecedented levels. In general, the propagation of democracy as a universal paradigm has had an impactful effect on the nature and structure of globalization process post-Cold War Era. In this article I highlight the general themes in the post-Cold War Era under the scope of the five dimensions of globalization, namely: Social, Technological, Economic, Environmental and Political.

SOCIAL

In the social context, the spread of capitalism around the world has affected changes in the class structure of societies. As a result, global capitalism is the primary contributor of class conflict throughout the world. In my view the consequences of these have been reflected on increasing levels of migration of economic and civil unrest refugees to the Western world. This has been an issue of large debate as many stakeholders believe that Western societies should take an active role in the solution, as majority of the countries in conflict are regions where low cost labour have been exploited with the end goal of prosperous global trade. For instance, in developing and emerging economies, globalization is often associated to debt, ramping exploitation of resources and poverty. It has been extensively viewed by a faction of opinion leaders that inequality as a result of post-cold war era globalization to be linked to mass protests, demonstrations and strikes in countries with significant presence of transnational corporations.

TECHNOLOGICAL

The introduction of the World Wide Web in 1991 was transformative in the post-Cold War Era. Commercial internet has contributed massively to the expansion of the global economy, experiencing a 4.4-fold growth from US$11.1 trillion to US$73.5 trillion since 1980. Further, the ease by which information flows has enhanced the sharing of ideas and knowledge, largely contributing to unprecedented technological advancements. Over 3.2 billion people have access to and use the Internet, a phenomena that has posed recent questions concerning data privacy, competition and security. The likely trend may involve further regulation and restrictions that may result in increase to business cost and limitations in innovation. Consequences of such policy changes are yet firmly forecasted, however one analysis suggests a negative impact on the EU of up to 1.3 percent of GDP.

ECONOMIC

The global expansion of capital Post-Cold War Era has had varied effects on the global economy and state relations on a global scale. Undoubtedly the world has experienced significant lowering of trade barriers that historically inhibited cross border transactions. The level of high interconnectedness was made evident in the high level of contagion experienced in the financial markets in recent decades. With the recent hit being the Global Financial Crisis GFC of 2008, the worst since the great depression of the 1930’s. “While it took weeks for the impact of the 1929 financial crisis to reach the shores of Europe, the impact of the 2008 financial crisis was almost instantaneous” - Baylis, Smith & Owens, 2017:18. It has become increasingly important for policy makers to ensure that the necessary tools are put in place from a regulatory perspective to avoid global economic meltdowns. The almost immediate contagion of the markets following the GFC was nothing less of a reminder of the increased cross-border linkages. The systemic risks emerging from the Post-Cold War Era extended beyond finance, being felt also in infrastructure, example being “the blackout in the United States Northeast that occurred on August 14, 2003 cascading throughout a production network in the energy sector” (Verkhivker, A. 2015.). Ian Goldin, a professor of globalisation and development at the University of Oxford highlighted the unquestionable need for all players of the globalization process to adopt prudent risk management policy instruments.

ENVIRONMENTAL

Growing global trade and the ramping up of extraction of natural resources has caused great strain on the environment. Prominent environmentalists have highlighted this in the past decade resulting to several global accords to limit carbon emissions including the Paris Climate accord and Kyoto Protocol. Increasing activism for the environment has been particular of the post-cold war globalization debate as global warming has becoming a real concern with devastating consequences. Accelerated economic integration fueled by reduced trade barriers has lead to quickening of resource depletion also widening the income equality gap translating to increased migration from least developed regions. Concerns regarding globalization has surged a faction of anti-globalization movements. Last but not least, anti-globalization movements pose great strain to the current trajectory of globalization, having a devastating environmental impact if governments and policymakers do not intervene and regulate trade.

POLITICAL

In the later decades Post-Cold War, emergence of new powers aside from the US and allies such as China meant that foreign policy coordination has become ever important, as ideologies differ in an ever-interconnected world. High-level global interconnection of the post-Cold War Era also contributes to the enhancing of bargaining power of developing and emerging countries in their negotiation with the West, with yet unclear resulting outcomes. In my opinion the dilution of power may bring rise to a more democratic globalization process that may reduce localized discontent that may result from lack of representation in the global setting. Important to note that many perceive globalization as leading to diminishing of nation’s sovereignty to exert independent decisions concerning political and economic affairs. With the rise of Transnational companies majorly lead by the West, market forces have proven powerful in the neoliberal economy, which values free market sovereignty, limited government intervention, individual autonomy and economic self-interest. Reacting to this matter, recent events include United States’ President Trump being critically protectionist against growing links across borders, and in the UK similarly with Brexit widely seen as a rejection of the European Union's policies and the UK inclining towards protectionism. In the digital era the contributions from NGO’s and civil societies have become increasingly important in the debate, fuelled by the seamless flow of information and data.

CONCLUSION

The forces driving the Post-Cold War era is characterized by an increasing need for global cooperation by all states towards sane resolutions concerning all stakeholders. The need for all voices to be heard is exacerbated by the devastating effects of contagion experienced in all dimensions covered in the globalized setting.