SOC 2601
THEORIES OF SOCIAL CHANGE
Assignment 2 - 861477
Abstract/short summary
Author:
Ashleigh Naidoo
62806250
2 April 2019
SOC 2601 ASSIGNMENT 2 – 861477 6280 6254
Table of contents
1. Introduction 2
2.2 Hyperglobalists 3
2.3 Transformationalists 3
5. Conclusion 9
6. List of Sources 10
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1. Introduction
Hoogvelt draws on the ideas of different currents in globalisation. Though these currents
are often seen to be at odds with each other, Hoogvelt contends that they may complement
each other. Her work explores how the expansion of capitalism has driven the world to
occupy a single social space, and how that single social space is driving further capital
world, but, the extent and nature of these transformations are debated. Three main currents
The Sceptics view of globalisation focuses primarily on economics, and they understand
globalisation theory, contend that present levels of economic interdependence are not
Sceptics point to the regionalisation within the world economy as evidence that the world
is less integrated than it once was (Giddens 2006:61). The formation of trading blocs in
Europe and Asia-Pacific means that the bulk of trade happens between countries that are
culturally, and economically similar, and generally, geographically close. They believe that
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economic activity remains nationally and regionally based, and directed by national
A common controversy associated with this view is that the sceptics often underestimate
2.2 Hyperglobalists
The focus of Hyperglobalists tends toward political power, and the changing role of the
nation state (Giddens 2006:61). Hyperglobalists hold a declinist view of the state, arguing
that transnational institutions have become predominant over nation-states, and rendered
financial powers, Hyperglobalists argue that the power of national governments is also
challenged by international organisations like the European Union and the World Trade
2.3 Transformationalists
pay special attention to cultural influences. The role of global migration, media and
Social phenomena and cultural change is seen as influencing the globalisation process, and
further facilitating the integration of economic, social, cultural, and political activity of
cognisant of the different aspects contributing to, and resulting from, the process of
globalisation.
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scientists. Roland Robertson is one such influence. His globalisation theory is influenced
2012:182).
Robertson contends that political and economic integration was a feature of pre-capitalist
period, while cultural integration faced the hindrance of 3 main obstacles, until recently.
between developed and developing nations have, in recent decades, been minimized
(Thomas 2012:182). Robertson credits the “compression of the world”, with the
Harvey and Anthony Giddens. David Harvey, asserts that the organization of space defines
social relationships (Hoogvelt 2001:123), and that time defines the value of money itself:
in capitalist economies, interest rates are calculated as “the time value of money”
(Hoogvelt 2001:124). The relationship between space and time is explored in Anthony
community to “overcome space through the mastery of time” (Thomas 2012:183). The
electronic age, and the advent of the internet, has facilitated increasing global social
interaction. The transformation in space and time allows for “action at a distance” to
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conduct business, and the real-time operation of the world’s financial markets (Thomas
advancements in technology. He suggests that the rules of global capitalism have changed
to embrace new information technologies that have essentially “compressed time and space
In Castells understanding, power that used to flow from corporations and states, now flows
through informational hierarchies and codes that connect the corporations and states to the
world. The Information Age has not made the world flat, but through new hierarchies, has
created a “market deepening” in some places, and an exclusion in others (Hoogvelt 2001).
In Globalisation and the Postcolonial World, Hoogvelt warns that globalisation must not
globalisation has proceeded in the last few decades, the geographical reach of world
capitalism has receded” (Hoogvelt 2001:115). The core countries in the capitalist economy
have greater access to systems that allow them to compress space through time, conduct
business at a distance, and participate fully in the global market. The access to these
systems gives them power that the periphery does not have.
Technological advancements at the end of the 20th century have allowed core regions to
replace raw materials, and services, previously provided by the periphery (Thomas
2012:190). These advancements render South Africa, and other raw material-rich countries
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In this way, the periphery has become less and less significant to capitalism, evident in the
withdrawal of trade and capital linkages from the periphery, and the intensification of these
Ankie Hoogvelt’s theory suggests that time-space compression drives the economics of
globalisation in 3 ways. Firstly, the “shared phenomenal world” supports the emergence of
economic activity (Hoogvelt 1997:121). The third way is the transformation of money into
market exchange between different goods and services, produced in different countries.
This complementary system, allowed countries access to goods that they did not produce
themselves. The dominant international trade in the pre- and post-war era was that of a
intra-product trade – the production and export of the same product by different countries.
This eroded the international division of labour, and created export competition (Hoogvelt
2001:122).
The global market principle is when dominant standards of price, quality, and efficiency is
imposed on the domestic supply of consumer goods, raw materials, labour, and technology
(Hoogvelt 2001). businesses in South Africa needing to compete with global standards of
quality, and reduced prices, in order to survive in the marketplace is an example of the
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According to Hoogvelt, the emergence of a new global division of labour has been fostered
Corporations in the core countries are able to export low value-added manufacturing jobs
to the periphery; although new technologies also permit the relocation of certain high
value-added knowledge work (Thomas 2012:193). Core and periphery regions, says
Hoogvelt (2001:135), now also refers to a social relationship, rather than just a geographic
location.
The early period of capitalism was characterized by expansion or widening; the extension
of trade and productive investment into more and more areas of the globe. This phase of
1997:115).
Financial deepening refers to the increased provision of financial services with broader
alternatives of services available to people and domestic or foreign investors (Post 2019).
This financial deepening in the core countries results in the growth of financial transactions
far exceeding the growth of actual production and trade in those countries (Hoogvelt
1997:128). This process of financial deepening has largely been facilitated by deregulation,
and technological advancements that allow the compression of space and time (Hoogvelt
1997:129).
Money is increasingly being made out of the circulation of money itself, rather than trade
and production, unrestricted by the traditional constraints of space and time. The removal
of the friction of space and time disentangles social relationships in which money and
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massive increase in the international mobility of capital, and removed the need to anchor it
in national social relationships. Rational economic interests in the global economy do not
promote social responsibility. Relieving money from social relationships results in the
greatest proportion of financial capital flows mainly to the core regions, regions that
guarantee a quick and substantial profit (Thomas 2012:196). Hoogvelt calls this deepening
In the age of the informational economy, economic growth has become dependent on high
value-added inputs and expansion in the core markets. Periphery economies are able only
to offer limited, difficult markets, and primary commodities – largely devalued in the
industrialized economy – and thereby become less relevant to the global economic
Labour costs have become less and less important as a competitive factor. Historically,
cheap labour has allowed exploitation of the periphery; in the new economy the role of the
periphery proves obsolete to the core, resulting in the shift from exploited to “excluded”
(Castells 1993).
Castells defines exclusion as, “the process by which certain individuals and groups are
systemically barred from access to positions that would enable them to an autonomous
livelihood within the social standards framed by institutions and values in a given context”
(Castells 2010). Exclusion in the network society concerns both people and territories.
Under certain conditions, entire countries, regions, cities, and neighbourhoods become
excluded, embracing in this exclusion most, or all, of their populations (Castells 2010).
Sub-Saharan Africa, barring a few countries, are deprived of the basic technological
infrastructure that would allow them to communicate, innovate, produce, consume, and
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With lower access to information technologies than the rest of the world, capital
investment in Africa is incompatible with the quick capital turnover, and the accumulation
exports, have decreased considerably since 1980 (Castells 2010), and are still largely
commodity-based; although commodities no longer form the basis of the world economy.
more significant scale. New technologies, though not available to the masses, are an asset
of the African elite. Also seeking certain and substantial returns, the tendency of the
African elite to invest in core regions exacerbates the increased flow of wealth out of
5. Conclusion
The extension of economic activity into more areas of the world, also known as the
“overcome the friction of space”, and in this way, cause the exclusion of periphery regions
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6. List of Sources
Gibbon, P. 1992. The World Bank and African Poverty, 1973-91. The Journal of Modern
African Studies, 30(2).
Thomas, CG. 2012. Theories of Social Change. Pretoria: University of South Africa.
Castells, M. 1993. The New Global Economy in the Information Age. New York: The
Pennsylvania State University Press
Castells, M. 1996. The Rise of the Network Society. In: The Information Age. Cambridge,
Mass. & Oxford: Blackwell.
Castells, M., 1998. End of Millenium. In: The Information Age. 1st ed. Oxford &
Massachusetts: Wiley-Blackwell.
Post, T. 2019. Analysis: The importance of financial deepening in Indonesia. [Online] The
Jakarta Post. Available at: https://www.thejakartapost.com/news/2015/02/18/analysis-the-
importance-financial-deepening-indonesia.html [Accessed 20 March 2019].
Hoogvelt, AMM. 1997. Globalisation and the Postcolonial World: The New Political
Economy of Development. London: Macmillan.
Hoogvelt, AMM. 2001. Globalisation and the Postcolonial World: The New Political
Economy of Development. 2nd ed. London: Macmillan.
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