CHAPTER EIGHT
Globalization Today

Study
Although globalization is nothing new, its latest incarnation—which Thomas Friedman calls "globalization 3.0"—has proved particularly controversial. But how did these new developments, such as the increasing "flatness" of the world and the growing ability of ideas to shape the world economy, come about? As usual, the perspectives offer different answers to that question.

According to realists, the America's rebound from the economic doldrums of the 1970s and its subsequent victory over the Soviet Union propelled it to hegemonic status. This preeminence paved the way for new technology and open markets, which has created a Pax Americana in the tradition of the nineteenth century's Pax Britannica. Liberals stress the information revolution, expanding trade relations, and the spread of international organizations as the sources of globalization 3.0. Identity perspectives, finally, look at the "victory" of economic liberalism over Marxism and aggressive Keynesianism. This shift in ideas led to the pursuit of market-oriented policies that created a conducive environment for the information revolution and globalization.

Study Questions

1. What are the three versions of globalization, according to Thomas Friedman, and what was the driving force in each one?
   



2. How did the information revolution contribute to the phenomenon of globalization, according to liberals?
   



3. What was the Washington Consensus? What perspective is likely to emphasize its impact on globalization?