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| "The Rise of the Network Society" by Manuel Castells (Source: Amazon.com) |
Manuel Castells is an expert on the phenomenon of globalization and the impact of the information revolution on the global economy. He is also an enthusiastic “true believer” in a new and better world order resulting from evolution of human society based on global integration of capitalism with information technology. He details the new social and economic dynamics wrought by globalism and advances in communication technology that are now irrevocably changing society in his book “The Rise Of The Network Society,” the first book of his "The Information Age" trilogy.
Castells examines the nature of finance in a globalized world presenting the idea that finance is fickle, profit driven, and knows no national loyalties. Finance is the Achilles heel of globalism and the global economy, specifically the fluid nature of capital in a networked world. Castells discusses the huge capital flows across borders, as occurred during the Asian Flu crisis in 1997, which many consider as the first global financial crisis of the new era of globalization. He suggests that the flow of capital across state borders is at the heart of the "new world order", and that such flows represent both opportunity and weakness. Castells observes that multinational corporations, in a world with open markets, are driven by the desire to search out low-cost producers and low-cost labor, with little if any loyalty to a "home country." If a state becomes unattractive to business and capital, business and capital will have a tendency to flow out of the country to find a friendlier home somewhere else in this networked world.
The ripple effects of financial tsunamis diffuse throughout the world, very rapidly. Volatility and unpredictable side effects are an inherent risk in integrated, networked global financial systems, concentrated in time and space, which Castells describes as "timeless time" and a "space of flows". Castells suggests that the technological and networking revolution is a reinforcing feedback loop that produces ever-accelerating change. He was prescient in warning against the dangers of hedge funds and trading firms dealing in unregulated securities and points out that the interdependence of global unregulated financial markets puts not just financial markets at risk, but the monetary policies of entire countries and national economies (See Castells, p106) as well as global economies.
"Globalism", is the new and revolutionary international economic system that represents a clear departure from the post-WWII era. Castells discusses various factors in his book, such as the information and technology revolution, the dominant initial influence of the United States, the free flows of capital across state boundaries, and the pervasive influence of the Internet on business and individual behavior and identity. Castells explains his theoretical approach as analyzing the interaction of two axes, the axis of technology with the axis of economics (See Castells, p14), describes several phases, beginning with microprocessor technology in the '70's, the information revolution beginning in the '80's (internet), and the global integration of finance in the '90's and beyond (See Castells, p105-105). Castells specifically mentions the possibility (albeit remote) of a global crash of financial markets, and expresses concern as to the effects on globalism of the West’s unilateralism and recklessness in world affairs (See Castells, "The Power of Identity").
According to Castells, globalization is the result of complex interactions of many forces, including both traditional historical tends as well as economic forces and new technology, that has created a new global world order, one which will continue to exist and evolve. He recognizes the driving, greedy imperative of free-market capitalism, as well as the backlash against it. Information and access to the global network have become as important, if not more so, than traditional sources of power ("Power of flows takes precedence over the flows of power" [See Castells, p500]) and the advent of the internet as a transformative event in human society.
Globalism is not merely an economic phenomenon, but is also transforming human society. For example, Castells believes that the conflict between "Net and Self" is a major tension inherent within globalism (See Castells, p23), and that job insecurity and other insecurity related to economic factors, like food and self-sufficiency are major drawbacks of globalism. Castells background as a sociologist allows him to focus on the dangers of globalization, particularly the loss of the “true self” in the face of the Internet. The tension between Net and Self are instrumental in changing people's individual and group identity. Castells believes that a sense of identity (or identities) is a fundamental aspect of human existence. In a networked world undergoing an information revolution (See Castells, p22), people may have multiple, and simultaneous, individual and group identities. These societal changes amount to a qualitative change in the human experience.
Castells is verbose and well written, but he is not completely convincing; either in the sense of explaining the nature and consequences of "globalism", or in the sense of convincing me that our brave new world is inevitably going to be either happier or morally better than our flawed old world. The present-day economic woes of the global system is an obvious factor in such skepticism toward what appears to me to be a flimsy, unequal, unstable and in many ways unfair social and economic order.
Castells includes many caveats to his evaluations and specifically claims not to make predictions, but he does mention the possibility of a system-wide crash, but offers a similarly optimistic overall view, including many of the same bromides used by proponents of globalism like Thomas Friedman (e.g., that the solution to the problem of unceasing competition and no job security is more training and more education). However, it would be interesting if Castells were to collaborate with an expert in edge theory and networking mathematics. The question of a crisis of identity stemming from the information revolution raised by Castells offers a fascinating non-economic consideration in considering the everyday effects of globalization.
Castells examines the nature of finance in a globalized world presenting the idea that finance is fickle, profit driven, and knows no national loyalties. Finance is the Achilles heel of globalism and the global economy, specifically the fluid nature of capital in a networked world. Castells discusses the huge capital flows across borders, as occurred during the Asian Flu crisis in 1997, which many consider as the first global financial crisis of the new era of globalization. He suggests that the flow of capital across state borders is at the heart of the "new world order", and that such flows represent both opportunity and weakness. Castells observes that multinational corporations, in a world with open markets, are driven by the desire to search out low-cost producers and low-cost labor, with little if any loyalty to a "home country." If a state becomes unattractive to business and capital, business and capital will have a tendency to flow out of the country to find a friendlier home somewhere else in this networked world.
The ripple effects of financial tsunamis diffuse throughout the world, very rapidly. Volatility and unpredictable side effects are an inherent risk in integrated, networked global financial systems, concentrated in time and space, which Castells describes as "timeless time" and a "space of flows". Castells suggests that the technological and networking revolution is a reinforcing feedback loop that produces ever-accelerating change. He was prescient in warning against the dangers of hedge funds and trading firms dealing in unregulated securities and points out that the interdependence of global unregulated financial markets puts not just financial markets at risk, but the monetary policies of entire countries and national economies (See Castells, p106) as well as global economies.
"Globalism", is the new and revolutionary international economic system that represents a clear departure from the post-WWII era. Castells discusses various factors in his book, such as the information and technology revolution, the dominant initial influence of the United States, the free flows of capital across state boundaries, and the pervasive influence of the Internet on business and individual behavior and identity. Castells explains his theoretical approach as analyzing the interaction of two axes, the axis of technology with the axis of economics (See Castells, p14), describes several phases, beginning with microprocessor technology in the '70's, the information revolution beginning in the '80's (internet), and the global integration of finance in the '90's and beyond (See Castells, p105-105). Castells specifically mentions the possibility (albeit remote) of a global crash of financial markets, and expresses concern as to the effects on globalism of the West’s unilateralism and recklessness in world affairs (See Castells, "The Power of Identity").
According to Castells, globalization is the result of complex interactions of many forces, including both traditional historical tends as well as economic forces and new technology, that has created a new global world order, one which will continue to exist and evolve. He recognizes the driving, greedy imperative of free-market capitalism, as well as the backlash against it. Information and access to the global network have become as important, if not more so, than traditional sources of power ("Power of flows takes precedence over the flows of power" [See Castells, p500]) and the advent of the internet as a transformative event in human society.
Globalism is not merely an economic phenomenon, but is also transforming human society. For example, Castells believes that the conflict between "Net and Self" is a major tension inherent within globalism (See Castells, p23), and that job insecurity and other insecurity related to economic factors, like food and self-sufficiency are major drawbacks of globalism. Castells background as a sociologist allows him to focus on the dangers of globalization, particularly the loss of the “true self” in the face of the Internet. The tension between Net and Self are instrumental in changing people's individual and group identity. Castells believes that a sense of identity (or identities) is a fundamental aspect of human existence. In a networked world undergoing an information revolution (See Castells, p22), people may have multiple, and simultaneous, individual and group identities. These societal changes amount to a qualitative change in the human experience.
Castells is verbose and well written, but he is not completely convincing; either in the sense of explaining the nature and consequences of "globalism", or in the sense of convincing me that our brave new world is inevitably going to be either happier or morally better than our flawed old world. The present-day economic woes of the global system is an obvious factor in such skepticism toward what appears to me to be a flimsy, unequal, unstable and in many ways unfair social and economic order.
Castells includes many caveats to his evaluations and specifically claims not to make predictions, but he does mention the possibility of a system-wide crash, but offers a similarly optimistic overall view, including many of the same bromides used by proponents of globalism like Thomas Friedman (e.g., that the solution to the problem of unceasing competition and no job security is more training and more education). However, it would be interesting if Castells were to collaborate with an expert in edge theory and networking mathematics. The question of a crisis of identity stemming from the information revolution raised by Castells offers a fascinating non-economic consideration in considering the everyday effects of globalization.
Sources:
Castells, Manuel. (2010). "The Rise of the Network Society 2nd Edition." Singapore: Blackwell Publishing.
Castells, Manuel. (2004). “The Power of Identity.” Singapore: Blackwell Publishing.
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