Globalization is the process of growing interaction between different parts of the world economically, culturally, and politically. Before the 1900s, the pace of global development had been accelerating rapidly for centuries, but the 20th century brought unparalleled change.
By 2000, the world looked entirely different than it had a century earlier. No aspect of human life was left untouched, as advances in technology, transportation, trade, and communications transformed the world's political, cultural, and economic face. Advances in medicine and public health saw the world population triple in this time, as capitalism shaped the growing world economy.
Fig. 1 US East Coast Nasa image
Timeline of 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. |
Causes of Globalization in the 20th Century
Technological innovation in:
Spread of capitalism as the dominant economic system
Increasing economic and political interdependence
Cultural and religious exchange
Fallout from the World Wars
Economy
The process of globalization altered everything from technology and trade to international relations, as well as social and cultural development. Capitalism became the dominant economic system and shaped the way people all over the world live and work.
The predominance of capitalism, which fueled the economic power of countries like the United States, brought about the dominance of Western nations throughout the 20th century. By the end of the century, the growing economic power of Eastern countries like China and India posed a challenge to the considerable power of the West.
Monetary and trade organizations such as the International Monetary Fund and the World Trade Organization grew out of a need to oversee the exchange of goods, resources, and money, as developments in industry and transportation allowed this exchange to happen rapidly on a global scale.
Politics and Human Rights
Cultural and informational exchange allowed for populations in entirely different parts of the world to interact and inform each other, and for social and human rights movements to spread with unprecedented speed. Organizations such as the United Nations took on the task of moderating new and contentious relationships between nations and regulating global standards for health and human rights.
Fig. 2 UNICEF Field Visit Malawi
Globalization also brought with it an increase in international conflict, as the interests of nations began to clash on a larger scale. It became easier for nations to interfere and intervene in foreign conflicts that they were not directly involved in.
With all of these changes came an increased questioning in belief systems, as religions across the world interacted and societies became more secular. The debate on the role of religion in government found a widening audience and democratic processes all over the world shifted.
Inequality and Global Warming
Globalization arguably increased global inequality as corporations exploited cheap labor in the South, while growing the economies of the West. This led to larger discussions of wealth inequality and international exploitation, and greater consciousness of issues central to poorer, less powerful countries.
Advances in transportation and resource extraction, along with free-market capitalism, also led to accelerated environmental change and to an unprecedented human-caused increase in global-warming.
Culture
Cultural exchange led to the Westernization of culture in much of the world, so that an American TV show or style of dress could be popular in a country with a very different culture and history. This was facilitated by the movement of people, information, and goods.
Immigration and emigration increased worldwide, leading to more and more multiculturalism within nations. Interracial marriage became common and accepted, adding to the process of cross-cultural exchange.
Early 20th Century Globalization
The first wave of globalization is considered to have taken place prior to 1914, beginning in 1800, after the early globalism that occurred during the Age of Exploration. This wave came to an end with the First World War.
The World Wars brought with them disaster on a global scale. The positive effects of globalization that the world had been enjoying found their end in conflict, destruction, and the loss of millions of lives.
Economies of some countries crashed due to the wars, while other countries profited off of them, and were even lifted out of economic depressions. The terrible wake of the wars called for an increase in cooperation for international peace and economic prosperity, leading to the formation of many organizations intended to create and maintain stability.
Fig. 3 United Nations flagGlobal Organizations
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. |
Examples of Globalization in the 20th Century
Transportation is the industry that connects other industries ... it is the key to globalization."
-Lawrence H. Summers, Secretary U.S. Department of Treasury, 2010
20th century globalization has made a mark on every aspect of modern life. These are some of the areas in which globalization can be most keenly felt:
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. |
Impact of Globalization in the 20th Century
Increased interconnectedness and interdependence of nations
Political conflict and cooperation
Unprecedented technological advancement
Economic growth
Increasing global literacy
Cultural exchange
Destruction of ecosystems and global warming
Conclusion
In the 20th century, the process of globalization accelerated from the pace seen throughout the industrial revolution. Over the course of a single century, the globe experienced extreme transformation, leading to a world in which no nation is independent, and in which the actions and economies of each one affects the others.
While the positive outcomes of globalization are undeniable, the increasingly complex relationships between nations, and the dominance of capitalism, have led to massive international conflicts and environmental destruction.
20th century Globalization - Key Takeaways
The World Wars altered the course of globalization, placing a focus on international peace, stability and cooperation.
Free-market capitalism became the dominant world economic force, leading to the economic success of the West.
Technological advancements in transportation, communication, and resource extraction and development facilitated the rapid economic growth and international connectedness of 20th century globalization.
Cultural exchange and immigration, as well as the spread of ideas and education across national borders, led to increasingly culturally diverse and educated nations.
Capitalist and corporate exploitation of the environment has led to irreversible climate change.
Explanations 
Textbooks 
Exams 
Magazine 
