Technology & Revolution

• The 1970's boom and bust
• Economic Rationalism And The Global Scale
• Modernisation, Westernisation and Urbanisation
• Globalisation and Technology

 

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The 1970's boom and bust
During this period growth was derived by massive foreign investment in the 3rd World, particularly Asia, described by economist McMichael as a "Loan binge". The emergence of the Asian tigers resulted, as industrial economies that became the growth engine for the global economy. However, the comparative size of national debts threatened currency values. US offshore capital had grown from $3 billion in 1960, to $75 billion in 1975. This was exacerbated by most debt being in terms of US dollars, which increased in relative value. Debt was hindering further development, because nations were borrowing funds to make earlier loan repayments.
 
Those nations who floated their currencies experienced recessions, as imported goods increased in value. However their own exports were relatively cheaper in the international market, and so export driven recoveries were viewed as essential to economic survival. The IMF and World Bank set the terms. Some nations chose to fix their currency to the US standard, in an effort to maintain their relative standard of living, and to reduce the impact of repayment of foreign investment. These nations such as Argentina have experienced hyperinflation, and extreme economic duress, which has rapidly reduced their standard of living and political stability.
 

Initially viewed as machines that would eliminate monotonous and potentially dangerous tasks, many workers would subsequently feel a sense of competition from automated devices. For instance, while the automated system shown above would reduce production time and cost at the European paper mill where it was installed, it would ultimately displace dozens of workers. Multiplying this scenario by the thousands (and possibly millions) of others that occur worldwide emphasizes the depth of the problem.

During the 1970's automation was viewed as a method of removing drudgery from the workplace. It was expected that work hours would decline as time required to maintain productivity was reduced, allowing people more free time to experience a new 'Golden Age' of technology. In reality the reverse has occurred, as the competition for employment increases, the level of performance has consistently increased.
 
Many developed world workers are now unwilling to take sick leave, or vacations, because they are aware of the many threats to their job security. Their position may be reduced, abolished, restructured or even taken offshore if it suits their employer's interests. The altered nature of labour relations has been a critical part of the change involved in globalisation. The traditions of skilled workmen forming a guild (union) to represent their common interests, and negotiate fair conditions for labour within the localised economy have been altered.
 
Workers now compete for labour at the global scale. They can no longer maintain the localised market as their bargaining context, even though this is the scale at which most people live, and act as consumers. There are very few people who genuinely 'live' a global lifestyle. They are extremely wealthy, mobile elite, who are highly involved in the global economy and its related systems of power, such as the EU parliament.
 
Previous skilled positions have been altered by new technologies, including engineering, architecture, graphic design, publishing, secretarial, accounting and many others. While new technologies have generated some new positions, particularly in Information technology, many others have been lost. This has rapidly altered the available union membership to unions, while the available options to improve working conditions have declined.
 

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How do you think the expanding realm of the labor market has influenced job availability? It allows businesses and individuals to better connect with potential projects. It presents unfair competition among regions with different economic needs. Show Results

Developed nations workplaces are regularly competing with those offshore, and the desire to retain employment negates demand for improved conditions. Recently Telstra, the major Australian telecommunications company, employed workers in India to perform previously Australian work. Although there was considerable public anger directed at the loss of jobs, in the service sector to Asia, Telstra argued that this would increase the competitiveness of the company.
 
Further unions have increasingly lost support within the workplace, as those with union membership may be penalised, or replaced by non-unionised workers, who are less likely to object to the reduced employment conditions.
 
Additionally unions are less able to ensure that workers receive their entitlements when companies go into liquidation. In the past wages and accrued leave had to be paid before other creditors, but this now favours institutional investors.

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Economic Rationalism And The Global Scale
High levels of unemployment accompanied the automation and mechanisation of industries throughout the developed world, following post-war full employment. Manufacturing industries rapidly retrenched their workforces, while professional and skilled positions were devalued as automation and computerisation expanded. The profit expansion from the consumer -driven advanced societies was no longer the economic driver. This changed to maximise the cost benefits found in multi-national production. These internal and international changes allowed companies to continue to produce goods at the required rate while decreasing their developed employees.
 
During the 1980's manufacturers realised that long-life appliances had reduced sales growth. This was overcome by redesign through obsolescence and preventing repair. Consequently today's major appliances are built to last 5-8 years, while those of the 1950-60's were designed to last 25 years with appropriate maintenance.
 

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Who should have the greatest voice in deciding a company's labor policies? Company Administration Shareholders Employees Government Show Results

Economic efficiency became a focus for traditionally service-driven activities. This was accentuated by de-regulation and privatisation of services. The banking and financial sectors became separated from prior national linkages. Many nations floated their currency, which allowed the market to adjust values, in response to economic indices. This exposed internal economies to fluctuations in relative values within the international market place. Governments of advanced economies were faced with declining revenue from taxation, while increasing numbers of the public required welfare assistance; consequently many developed nations have experienced a gradual decline in their standard of living in per capita.
 

Protestors --- many of them union employees --- gather outside the World Bank in the early 1990s to protest a declining job market. Jobs were lost at this time (particularly in the western world) due to advances in automation and a trickle of jobs offshore.

Unionised workforces were discouraged, and in some cases were either outlawed, or actively manipulated into major conflicts. Conservative governments have promoted the common belief that market forces will generate the best economic outcomes for society, and that attempts to protect wages, employment or industrial sectors are unproductive.
 
Large international companies sought resources and labour globally to generate the best return for their shareholders. The costs of production were dislocated from the labour and associated costs of localised production. Many of these production sites are the results of joint ventures between foreign investment and local governments or domestic capital. Funds are provided through international loans, increasing the indebtedness of these developing nations. Economic analysts have shown that such developments increase dependence and 3rd world debt . Ultimately the developed world is still exploiting the less developed economies.

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Modernisation, Westernisation and Urbanisation

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Does spreading the western economics model seem moral to you, or does it seem imperialistic? It sounds moral It sounds imperialistic Show Results

As communications improve traditional societies are exposed to Western dominated media. Images of Western/European lifestyles, comedy, and news became available to the poorest nations and influenced traditional mores.
 
Agricultural production altered as machinery replaced peasant labour, and displaced workers migrated to urban ghettos . Social discord increased as close family ties and traditional constraints eroded. Urbanisation is linked to increased educational levels, involvement in secondary and tertiary industries, and declining fertility within an aging community profile.
 
Women become involved in paid work, and delay pregnancies. These changes alter the dynamics of communities. Tourism, media and the expectations of the international business community has spread awareness of Western consumerism within the 3rd World. This can sit uncomfortably in communities where high levels of poverty and disadvantage prevail. Urbanisation increases resource consumption per capita, replacing traditional sustainable levels.
 
Pervasive western influences generate tension and altered aspirations within traditional communities. There has been a shift to increased participation in the cash economy with increased consumerism. Leaders of traditional groups perceive a declining support for their divergent value system, language, culture and religions.

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Globalisation and Technology

Advents in all fields of technology have been essential to the progression of globalisation to help manufacture, transport, and communicate information about products and services more efficiently. A tanker (above) is an example of one such innovation; following the days of small, conventional schooners, it is now possible to transport an enormous amount of material in a single trip.

Increased global trade would not have been possible without increasingly fast and specialised goods transport, improved communications and mass media, computerisation and data management.
 
Each innovation increased the competition for traditional markets between nations and their regions.
 
These technologies are derived from research and development programs. They are part of the Western business culture aimed to maximise profit through growth. Technologies are a critical part of the process of globalisation, but are not the fundamental cause, as some people suggest. These are also not inevitable as the saying 'you can't stop progress' would suggest. New technologies are deliberately developed for economic reasons, i.e. to generate growth for investors .

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