Global Organisations

Globalisation and global organisations

Within the topic of globalisation and global organisations, we'll be looking at the following:

• Defining globalisation
• Economic globalisation
• Political globalisation, and
• Cultural globalisation

What is globalisation?

We will start by defining globalisation.

Globalisation has been brought about by:

1. Faster and further-reaching methods of communication such as telephones, the internet, social media platforms, etc.

2. Quicker and cheaper methods of transport such as mass commercial air travel, larger container ships, etc.

3. The introduction of global organisations such as the United Nations and the World Health Organisation (WHO.

4. A growing global economy; look at the increasing number and increasing power of transnational corporations (TNCs).

5. An increase in global social movements such as the debate over climate change policy, debt relief, and health outcomes.

To understand globalisation and its influence on the economic, political, and cultural relationships between societies we shall look at the following:

1. Economic globalisation

2. Political globalisation

3. Cultural globalisation

We will go through each in turn and consider examples as we go.

Economic globalisation

Economic globalisation is the growing economic connection between different countries in all parts of the world, typically highlighted by the international trade of goods. It is the emergence of a global marketplace: 'a single world market'.

Signs of a fully integrated global economy

• The international spread of neoliberal policies. These remove international trade and production regulations, which in turn reduce the costs of global trade.

• Increase in the growth and power of TNCs, e.g., Unilever, Apple, or Shell. These drive a 'single world market' by bridging the production of goods in developing nations and selling them in developed countries.

• The 'McDonaldisation' (George Ritzer, 1993) of economic and cultural life. Ritzer highlighted that there had been a 'westernisation' of production, work, and consumption. This has become standardised globally. This westernisation, or McDonaldisation, has four organising principles: efficiency, calculability, predictability, and control.

• Reduced power of national governments in controlling their economies. The increase in TNCs and the increase in international organisations shift power beyond national borders.

Political globalisation

Political globalisation refers to the amount of political cooperation that exists between different countries. It is the growth of a worldwide political system, both in size and complexity.

From the mid-20th century, new global forms of governance were created. In large part, these new global forms of governance led to institutions that set the rules for cooperation within the new global economy. These include the UN, the IMF, the WHO, the World Bank, etc.

Signs of political globalisation

• Increase in decisions made by global organisations rather than national governments. As an example, the European Union and its regulations/laws affect all EU member states.

• Increase in global problems that require international political cooperation to solve. Climate change and the UN Conference of Parties (COP) meetings, the ongoing refugee crisis, human trafficking, and the drugs trade are all examples of global problems that require international political cooperation.

• The rise in transnational social movements. In other words, current global issues require arrangements between countries. Debt relief, global health (think COVID-19), the environment (think climate change policies) are all examples of global issues that have led to planet-wide movements.

Fig. 1 - The UN is a well-known global form of governance

Limits of political globalisation

• National Governments can still decide policies like tax rates, and the kinds and amounts of social welfare individuals are entitled to.

• The power of global organisations like the UN is dependent on the wilful cooperation of each national government. Just think about how little countries like China, India and the US have achieved in their most recent climate change pledges set by COP26. All three refused to sign a pledge to phase-out coal - responsible for producing 1/3 of all global greenhouse gas emissions. China refused to limit methane output. The US refused to support increasing green-development funds for poorer, less developed countries.

• There has been a resurgence of nationalism. Look at Britain's decision to leave the EU in 2016, and the general increase in far-right parties being elected in Europe. What connects these is an increase in sentiment around anti-immigration policy.

Cultural globalisation

First, we need a working definition. We can think of it as 'the movement of ideas, norms, values, beliefs and cultural products (ideologies) across national borders'. (Livesey and Blundell, Cambridge 2014).

In short, it is the spread and diffusion of ideologies. Importantly, this is not a neutral process. It is the ideologies of more powerful nations that spread, and it is these which frame political and economic globalisation. In the context of the 20th century and the beginning of globalisation, this can be seen with the spread of 'Western' ideologies.

Signs of cultural globalisation

• The existence of worldwide information and media technologies, such as the internet.

• The spread of American culture and consumption: e.g. McDonald's, hip-hop, or Starbucks.

• Cultural homogenisation: e.g. the spread of Hollywood movies and beauty standards.

• Spread of religions: 2.2 billion people are Christians, while Islam has 1.9 billion believers globally.

• English as the unofficial 'global' language.

• Sport and tourism with global participation, such as the Olympics.

Evaluating cultural globalisation

• The cultural flow of ideas can go both ways; there are mutual cultural influences between the East and West.

• Greater access to the internet has allowed many to obtain information and ideas from people everywhere.

• Cultural globalisation can be seen as cultural imperialism. Global development policies of the 20th century have led to Western values, such as democracy and gender equality, being imposed on non-western cultures.

• The spread of Western ideologies degrades developing countries' local cultures and values.

Theoretical perspectives on globalisation

Broadly speaking, there are three theoretical perspectives towards globalisation as a force. Anthony McGrew (2007) saw these as:

1. The neoliberals

2. The radicals

3. The transformationalists

Neoliberalism and globalisation

Neoliberals are those who see globalisation as a positive force. This is because they view:

1. The spread of a capitalist 'single world market' as leading to global economic growth.

2. Western values such as democracy, gender equality, and the eradication of poverty as forces for good.

3. The whole population will benefit from raised standards of living by a 'trickle-down' effect of wealth produced by the profits of TNCs and private companies.

Radicalism and globalisation

They are neo-Marxists. They view globalisation as a negative force in alignment with Andre Frank's (1971) dependency theory and Wallerstein's world-systems theory. Radicals argue that:

1. Economic globalisation primarily benefits developed, rich countries.

2. Globalisation has increased global inequality:
   1. Wealth has not 'trickled down'.
   2. TNCs have increased in power and influence which favours further exploitation of developing countries and their low labour costs.
3. The model of globalisation is based on consumerism which is not environmentally sustainable.
4. Cultural globalisation is viewed as cultural imperialism.

Transformationalism and globalisation

Transformationalists see globalisation as uncertain. They lie between the Radicals and the Neoliberals in how they view globalisation. They highlight:

1. New hybrid cultures that blend a variety of both western and non-western cultures is occurring ( 'glocalisation').

2. Cultural globalisation is a two-way process; there is not merely a process of cultural imperialism.

3. Globalisation may slow or even reverse.

4. Globalisation may act to transform old hierarchies between North/South and First World/Third World.

   • Think about the development of the UAE and Qatar through the global exporting of their oil.

   • Think about the increase in the size of India's economy.
   • Think about the global power that is modern China.

Global organisation: definition

Let's consider a definition of global organisations.

Global organisations are those that operate internationally and/or have branches in multiple countries. They are instrumental in providing different strategies for local and global development.

We've already provided some examples above of what global organisations are, but we will be looking at more specific examples below.

Types of global organisations

Let's study the different types of global organisations. Note that the following section is a brief overview of each type of global organisation. You will find a separate article on each of these.

Transnational corporations as a type of global organisation

Transnational corporations (TNCs) are businesses that have a global reach. Their large size gives them leverage and negotiating power with countries, which often compete with each other for TNCs to invest in them.

However, whilst modernisation theorists and neoliberals view TNCs positively, dependency theorists argue that they are exploitative, unethical, and immoral.

Fig. 2 - Apple is an example of a transnational corporation.

Non-governmental organisations as a type of global organisation

Non-governmental organisations (NGOs) are non-profit organisations that operate to address a social or political issue. They are not associated with any particular government(s).

NGOs frequently work to solve issues of welfare, empowerment, education, and development.

Advantages of NGOs include their success and trustworthiness; however, they often have limited reach and sometimes have agendas attached to aid.

International organisations as a type of global organisation

International organisations (IGOs) work across multiple countries to solve problems of development. IGOs can be split into the categories of economic IGOs and political IGOs, depending on their focus and effect.

Examples of global organisations

Since we have looked at different types of global organisations, now let's examine some examples of each type of global organisation.

Functions of global organisations

The broad function of global organisations is to address worldwide problems that, through globalisation, now require transnational action to address. However, 'global organisations' is an umbrella term. Therefore, to understand the exact nature of global organisations, we must look into the role of each individually.

Although global organisations share certain key characteristics, the function of global organisations depends greatly on the type of global organisation in question.

For example, the function of a TNC is business, and it is profit-orientated. For an NGO, the function is to alleviate human suffering - NGOs function to improve the quality of life of those most in need, etc. They therefore have very different, and even conflicting, practical functions.

What are global organisational structures?

A company's functions, teams, and personnel are outlined in a hierarchical framework called the organisational structure. Organisational structures outline the duties of employees, who they answer to, and how corporate decisions are made.

Global organisational structures simply refer to the hierarchies within global organisations such as TNCs and IGOs. These, like their individual functions, can often vary significantly.