Incidences of Modern Globalization: The Historic & Current Review Dr. Anil P. Dongre Department of Management Studie

1. Incidences of Modern Globalization: The Historic & Current Review Dr. Anil P. Dongre Department of Management Studies North Maharashtra University Jalgaon (MS) India- 425001

2. Incidences of Modern Globalization • Globalization in a wider context began shortly before the turn of the 16th century, with global explorations by Europeans. The exploration by the Portuguese and Spaniards connected the economies, cultures and continents as a whole around the globe to a substantial extent. It is inquisitive and notable fact that, the wide contacts throughout the world possible due to great exploration and discoveries in modern time by European and not by the Chinese or Indians or Islamic peoples. These explorations made it possible to carry out The Trade with most of the coast of Africa, Eastern South America, and Southern and Eastern Asia. Hence it was considered as the first major form of modern global trade or Economic Globalization of Modern Era.

3. First Phase of Modern Globalization (1500 AD – 1815 AD) The first phase of modern globalization is characterized by Colonization & Imperialism. The major European countries that were involved in the process Colonization were Britain, France, Spain, The United Netherlands and Portugal. Portuguese established their trading centers or colonies at India, Malaya archipelago, Spice Irelands, Mozambique and across the Atlantic in Brazil. The Spain confined their colonies mostly in western hemispheres and Philippine was the only Spanish colony located in the south East Asia. The French colonial empire was consisted of the heartlands of America and Canada. The late entrant in the process of colonization was the Dutch & theyexplored Tasmania and Newzeland.

4. The development occurred in the first phase of globalization due to global trade of European with the other parts of the world, bought sea changes in global commercial activity and impacted politically, socially, intellectually to a great extent and gave birth to the Mercantilism. Emergence of thought like regulation of economic affairs of the nation under control and hence the control over the national wealth, European monarchies and people thought of to have economic supremacy over the other parts of the world, this gave birth to Imperialism. During the 19th century and from the Franco-Prussian War in 1871 AD, aggressive competition for overseas territorial acquisitions set in motion and the imperial power started to subjugate the colonial nation for self-government. This resulted into the beginning of new era that is the era of New Imperialism

5. Second Phase of Modern Globalization (1815 AD – 1930 AD) The second phase of modern globalization is characterized by New Imperialism, Technological Innovation and Finance capitalism. The New Imperialism is the process whereby the imperialist powers enjoy the complete control over the subjugated nation and rule for the benefit of the mother country by establishing the self government on the basis of racial superiority and unfitness of subject countries people. The prominent features of the New Imperialism is the adaptation of monopolistic capital financing and massive colonial expansion, propelled by the imposition of tariff barriers aimed at exclusion of economic rivals from markets.

6. The era of New Imperialism had emerged because of Technological Supremacy of the European which resulted into the Industrial & Agriculture Revolution from the periods 1740 to the end of 19th century. With James Watt’s invention of the steam engine in 1765 (18) & steamship in 1807 and steam locomotives in 1825 decreased transportation time and increased transport volumes (19). With the introduction of electric telegraph by Gauss, Weber, and Morse and its subsequent up gradation between 1830 and 1850 resulted splitting up of the speed of communication from transportation for the first time and the resultant was the decreased distances in space and time. Thus technological innovation enforced the process of globalisation all through the New Imperialism. The new imperialist power introduced the system of Commercialization of Land by using the cultivation of cash crops such as cocoa, coffee, tobacco, groundnut, sugar etc. The cultivation of cash crops increased the value of land and hence the utilization of land gained momentum. This in turn improved the purchasing power of the people of subject country

7. The enormous geographical expansion and technological advancement occurred all through the colonial periods gives rise to the commercial revolution. The commercial revolution created much pressure on the supply of goods & services and this was probably the beginning of Capitalism. As a result we can call 19th century, is "The First Generation of Globalization" and was characterized by rapid growth in international trade, international investment and commercialization of crops, industrial revolution in European imperial powers, in their colonies and later in United States

8. Third Phase of Modern Globalization (1930 AD – 1994 AD) The third phase of modern globalization is characterized by Trade Contraction, establishment of International Economic Agencies & Agreements & Technological Advancement and the picture of this phase is quite obscure as this phase travelled through two world wars. The third phase consider here though began with 1930, in actuality it started with the eruption of First World War in 1914. The periods of thirty years in between 1914 to 1944 might be called it as the period of Trade Contraction and attains its culmination in 1930. The restoration of global economic activity initiated with occurrence of International Economic Agencies & Agreements which began with the establishment of International Monitory Fund in 1945 and was conceptualised in International Monetary and Financial Conference held at Breton Woods, New Hampshire in July 1944.

9. Consequently many national governments became conscious about the fact that international co-operation is necessary to have competitive business environment which is an essential characteristic for Continuance of Globalization. Along these lines to accelerates the process of globalization the International Bank for Reconstruction & Development (1945) and International Development Agency (1960) collectively known as World Bank came into existence, to avoid the protectionist trading polices of the then industrialised nation The General Agreement On Tariff & Trade (GAAT) originated in 1947, to promote sustainable private sector investment in developing countries as a way to reduced poverty & to improve peoples’ lives The International Finance Corporation started in 1956 and to assist the development of the developing countries number of regional development bank like Asian Development Bank (ADB) (26), African Development Bank, Caribbean Development Bank, Inter- American Development Bank came into existence. Beside the establishment of Economic Agencies and global institution, emergence of Trade Agreement and Trading Blocs among the different nation is also the common feature of this phase which spurs the process of globalisation dramatically.

10. The rapid growth in worldwide trade & diminished protectionism was sprouted from the Technological Advancement. Discovery of computer and the successive advancement into it start with the first software controlled computer and first electronic digital computer by KonradZuse's Z3 in 1941 and John Atanasoff and Clifford Berry in 1942 and the development of the microprocessor using microchip by Intel in 1971 1957 marked the most important step in the history of globalization when USSR launched its Sputnik as the first man-made satellite. Satellites made it possible to build a fully reliable global network. However stronger, faster and reliable global networks with solid connections started when first transatlantic fiber cable TAT-8 was laid in 1988. Further innovations and applications of the microchip have show the way to the worldwide application of the Internet and other computer communication systems and therefore provide the impetus to the process of globalization

11. One can understand the comprehensive changes occurred because of the technological advancement by knowing the functioning of the Society for Worldwide Interbank Financial Telecommunication (SWIFT), which is the organization to assure a reliable global electronic financial system. Thus this phase has caused unbelievable expansion of boundaries around globe within the reach of human being due to technological advancement that helps to do research, invest, manufacture goods and provides services, buy and sell, store and consume, teach and learn, read and write to reap up the profit, which led foundation of the process of Permanent Globalization

12. Fourth Phase of Modern Globalization (1994 onwards) The fourth phase of modern globalization is characterized by Trade liberalization or Era of Barrier Free Trade. The idea of barriers free trade materialized since the inception of the World Trade Organization (WTO) which came into being on 1st January 1995 after the completion of the General Agreement on Tariffs and Trade (GATT) Uruguay Round in 1994. World today is became the global market. The international trade has been growing faster than world output, indicates that, the international market is expanding faster than the domestic markets. All forces in global market are on resurging way and are imparting tremendous impact on all sphere including technological, Economic, Societal, Political & cultural. With the interlinked effect of technology there is no more national boundaries appeared due to information flow & foreign investment mobility

13. Globalization broke shackle of trade regulation and stereotype course of action & framework of the nation. It also compelled to have divergence of macroeconomic policies and relaxed confined agreements and regulatory bodies and knowledge thereof. It extremely inclined towards structural economic changes and trade liberalisation, access to foreign markets, technological development & access to technology and knowledge, speedy flow of capital, increased foreign direct investment and accessibility of funds, development of mass production facilities, and increasingly rapid means of transport and information propagation. These trends are associated with both positive and negative impacts on human societies across the nation states.

14. Conclusion Looking at the timeline and the traces of globalization, it revolutionised, evolutionied and finally transformed into continuous process. Thus, initially at the beginning of the recorded human civilisation the Idea & culture of the distant civilisation first globalized in classical history then Business & Tradingactivities globalized then Regions of the different part globalized. The beginning of 16th century witnessed the extended from of globalisation, with imperialism & colonialism, the stronghold nation started to control the least civilised nation hence from 16th century Nations Across TheGlobe start in on to globalized under the domination of some other countries and this process remain till the end of world war II. But most significantly with technological innovation and advancement there occurred stratified changes in social & economic life of individual & human being as a whole. Thus in current age the Individualsis also globalized and world became single marketplace which functions relentlessly 24×7.

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