PDF Summary:The Ages of Globalization, by Jeffrey D. Sachs

We often think of globalization as a recent phenomenon driven by technological progress. But as Jeffrey D. Sachs reveals in The Ages of Globalization, our world's interconnectedness has evolved over thousands of years, shaped by momentous innovations in communication, transportation, politics, and economics.

This comprehensive exploration examines globalization's key drivers across seven distinct ages—from the Paleolithic migration of humans out of Africa to today's hyper-connected Digital Era. Sachs provides a thought-provoking perspective on how location, technological breakthroughs, and power structures transformed societies, sparked new conflicts, and yielded vast inequalities. He highlights the urgent need for international cooperation and equitable policies to ensure globalization's sustainability.

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Age of Exploration (1500-1800): European Colonial Expansion, Global Trade, Capitalism, Indigenous Devastation, Horrors of Enslavement and Transatlantic Trade

This period, which Sachs terms The Ocean Era (1500-1800), witnessed a profound shift in globalization, driven by European exploration, colonization, and the accompanying expansion of worldwide commerce. The expeditions of Christopher Columbus and Vasco da Gama, marking the rediscovery of the Western Hemisphere and the establishment of a direct sea route to Asia, ushered in an era of interconnectedness that had not been seen since the close of the most recent glacial period. This period saw the emergence of global capitalism, with privately chartered, profit-driven companies, such as the East India Company, engaging in vast multinational production and trading networks.

These voyages also led to what Alfred Crosby called the "Columbian Exchange," an unprecedented two-way transfer of plants, animals, and pathogens between the Eastern and Western Hemispheres. While the exchange of crops, such as maize and potatoes to Europe and wheat and rice to the Americas, led to agricultural intensification and population growth, the unintentional transfer of diseases, mainly originating in Europe and arriving in the New World, had devastating consequences. Indigenous groups across the Americas, with no prior exposure or immunity to Old World pathogens, experienced catastrophic mortality rates. Sachs highlights Alexander Koch's recent estimates suggesting a staggering 90 percent decline in the population of the Americas' Indigenous people during the sixteenth century.

This era also witnessed the tragic rise of the trade in enslaved people across the Atlantic, as European powers sought to exploit the resources of newly claimed lands in the Americas. Millions of people from Africa were forcibly transported to the Americas to work in plantations and mines, powering the production of sugar, cotton, tobacco, and other lucrative commodities. This brutal system, deeply connected to the emerging worldwide capitalist order, underscores the dark side of global integration. It serves as a stark reminder of the exploitation and intense human suffering that were part of creating today's global economy.

Practical Tips

• Create a global cuisine potluck with friends or family where each person brings a dish that represents a country affected by European exploration. This activity can lead to discussions about the historical connections between different regions and how exploration led to the exchange of food, spices, and cooking techniques.
• Start a virtual travel blog where you 'retrace' the routes of Columbus and da Gama using Google Earth and other online resources to virtually visit the places they explored. Share insights on how these locations have changed over time and the lasting impact of these historic voyages on today's world.
• Engage with local businesses to understand the modern supply chain. Visit local businesses and inquire about where they source their products. This hands-on approach will give you a better understanding of how global capitalism affects local economies and the challenges businesses face in a multinational production network.
• Volunteer at a local farm or botanical garden that focuses on preserving heirloom and indigenous species of plants and animals. This hands-on experience will connect you to the efforts to maintain biodiversity and heritage varieties, offering a deeper understanding of the importance of the exchange of species and the need to protect them.
• Participate in a community-supported agriculture (CSA) program to directly support and learn from local farmers. This not only helps you understand the importance of crop diversity and agricultural intensification but also connects you to the source of your food, providing insight into the relationship between farming practices and population support.
• Advocate for inclusive education in schools that covers the global impact of diseases throughout history. By encouraging schools to include this topic in their curriculum, you can help ensure that future generations understand the consequences of disease spread and the importance of cross-cultural respect and cooperation in preventing pandemics. You might start by attending school board meetings or writing to local education officials to express the importance of this subject matter.
• You can deepen your understanding of Indigenous cultures by learning a native language through language learning apps or online platforms. By doing so, you'll gain a more nuanced appreciation of the culture, worldview, and history of the people whose population declined significantly in the sixteenth century. For example, apps like Duolingo now offer courses in languages such as Navajo or Hawaiian, allowing you to connect with these cultures on a more personal level.
• Volunteer with or donate to organizations that work to combat modern slavery and human trafficking. By contributing your time or resources, you're actively participating in efforts to address the legacies of historical labor abuses. Look for local nonprofits that provide education, legal aid, or rehabilitation services to affected individuals, and consider how you can support their mission through fundraising, advocacy, or direct service.
• Educate yourself on the history of the slave trade and its economic impacts by reading articles and watching documentaries from diverse perspectives. This will help you understand the complexities of historical economic systems and their long-term effects on modern society. For example, you might watch a documentary on the role of the slave trade in the industrial revolution and then read a scholarly article on the same topic from a different viewpoint.
• Create a personal investment policy that aligns with historical awareness. Before investing in stocks, bonds, or funds, research to ensure your money supports companies that recognize and address their historical ties to exploitation. This approach to investing can help shift capital towards businesses committed to ethical practices.

Catalysts of the Industrial Age: Steam Engine & Technological Breakthroughs Leading To Rapid Industrialization & Global Hegemons (1800-2000)

The sixth period of globalization, spanning the 1800s and 1900s—is characterized by Sachs as the Age of Industry. This period, marked by rapid technological advancements that began with the steam engine designed by James Watt in 1776, and was soon accompanied by rapid innovations in fabric, metallurgy, transport, agriculture, and communications, prompted a decisive and sustained increase in production volume, population numbers, and national wealth. Sachs notes that this age of industrialization also yielded the initial global hegemonic powers: the United Kingdom, which rose to prominence in worldwide trade and finance in the 1800s, and subsequently the United States, which emerged as the a dominant economic and military power during the 1900s.

Sachs emphasizes that though the steam engine was an extraordinary invention, several factors contributed to its success and the subsequent industrial revolution. He identifies the confluence in Britain of an intellectual environment that revered scientific inquiry and empiricism; well-developed market institutions; accessible and abundant coal; and international commerce supported by multinational corporations, all of which provided both the incentive and ability to innovate and scale up production. Sachs argues that these innovations ignited "endogenous growth," meaning that technological breakthroughs generated larger markets, which consequently provided both the incentive and ability for further technology improvements.

This self-reinforcing cycle has persisted for over 200 years and remains the driving force behind worldwide economic expansion. However, as Sachs points out, industrialization also caused a "great global divergence." While the core industrial economies, primarily those around the North Atlantic, experienced an unprecedented escalation of economic growth and productivity, much of the world beyond, notably Africa, China, and India, fell behind. This "divergence," driven by imperialism, trade protectionism by the industrialized nations, and other factors, created a vast income and wealth gap between the industrial core and other regions.

Other Perspectives

• The Age of Industry was also propelled by other critical inventions and improvements in various fields, such as the spinning jenny, the power loom, and the process of coke smelting in metallurgy, which were as significant as the steam engine in driving industrialization.
• While technological advancements did increase production volume, they also led to environmental degradation and resource depletion, which are costs not accounted for in measures of national wealth.
• The rise of the United Kingdom as a global hegemonic power was not solely due to its dominance in trade and finance; it was also significantly influenced by its naval power and colonial empire, which allowed it to control key trade routes and resources.
• The concept of dominance can be subjective and varies depending on the metrics used; for example, some might argue that cultural influence or diplomatic leadership are also critical components of global dominance, areas where other countries may have had significant impact.
• While the intellectual environment, market institutions, coal, and international commerce were undoubtedly important, it could be argued that the role of government policies and the legal framework, such as patent laws and property rights, were also critical in fostering an environment conducive to innovation and industrial growth.
• The concept of "endogenous growth" may oversimplify the historical context, as it does not account for the role of colonialism, exploitation, and unequal power dynamics in the expansion of markets and the distribution of technological advancements.
• There is a risk that the pace of innovation could outstrip the ability of societies and regulatory frameworks to adapt, leading to potential negative consequences that are not accounted for by economic expansion alone.
• The impact of colonialism and imperialism by industrialized nations had a profound effect on the economies of regions like Africa, China, and India, which is a critical factor to consider when discussing their relative economic positions.
• It is also possible to argue that the divergence was not solely negative for less industrialized regions, as the global economic changes also created new opportunities for trade, investment, and technology transfer that some nations were able to capitalize on.

Governing 21st-Century Globalization: Sustainability, Global Political Strife, and Inequities

Digital Age: Ubiquitous Connectivity, Emerging Global Powers, Inequality Challenges, Environmental Degradation, Potential Great-Power Conflicts

The current era of globalization, which Sachs places within the twentieth century, is the Digital Era. This era, enabled by breakthroughs in computing, the web, cellular communication, and AI, is one of hyper-connectivity. Data travels worldwide at an incredible speed and scale, affecting worldwide economics, geopolitics, and every aspect of daily life. Sachs notes that this age also involves the relative decrease of the U.S., along with the emergence of new economic and military powerhouses, most prominently China. The developing world, particularly Asia and other regions, has experienced significant growth.

Sachs cautions, however, that this age of hyper-connectivity and technological progress arrives amidst several substantial difficulties: increasing inequality, significant ecological damage, and inherent risks of conflict stemming from shifting geopolitical relations. He warns that the uneven benefits of technological advancements contribute to skyrocketing worldwide inequality, both within and among nations. Furthermore, the remarkable progress of the global economy has generated a commensurate environmental crisis. The global economy, now exceeding $100 trillion per year, is having a devastating impact on the Earth's climate, species diversity, and natural systems.

Finally, Sachs identifies the emerging power dynamics between the US and China as a source of heightened risk of disputes. He notes that moving from one era of globalization to another is frequently marked by significant conflicts, and that the current geopolitical shift may follow that same perilous pattern.

Guiding 21st-Century Globalization: Sustainable Development Through Cooperation, Targeted Policies, and Institutional Reshaping

According to Sachs, the overarching challenge for the 21st century is sustainably managing globalization. This requires a commitment to the principles of “sustainable development,” a holistic approach that emphasizes the interconnectedness of a prosperous economy, inclusive society, and a sustainable environment. Sachs argues that for meaningful progress to occur, countries must move from simply pursuing economic growth to implementing targeted policies that address economic disparity and environmental harm.

In essence, this necessitates a move away from the limited principles of laissez-faire economics and toward a more equitable model, one that recognizes the need for government intervention and regulation. Sachs advocates for "directed technical change," where research and development are aimed at creating sustainable technologies, such as affordable zero-carbon energy, biodegradable waste products, and more efficient agriculture. Notably, Sachs identifies the necessity of international collaboration, knowledge sharing, and accountable governance. He emphasizes the importance of global organizations like the United Nations in facilitating this collaboration.

Context

• Globalization can exacerbate social justice issues, such as labor rights violations and exploitation in developing countries, where regulatory frameworks may be weaker.
• A prosperous economy refers to a system where there is stable growth, low unemployment, and equitable distribution of wealth. It involves not just increasing GDP but ensuring that economic benefits are shared across different segments of society.
• Implementing targeted policies means creating specific, strategic plans that address particular issues rather than broad, one-size-fits-all solutions. This can involve data-driven approaches, stakeholder engagement, and continuous monitoring and adjustment to ensure effectiveness.
• In more equitable models, governments play a crucial role in regulating industries, providing public goods, and ensuring that economic activities do not harm society or the environment.
• These are products designed to break down naturally in the environment, reducing pollution and waste. They are typically made from renewable resources and are an essential component of a circular economy, which aims to minimize waste and make the most of resources.
• The UN monitors global progress on various issues, providing data and reports that help countries understand challenges and successes, fostering informed collaboration.

Tackling Disparities and Uneven Tech Progress Requires Inclusive, Social Democracy-Based Economic Models

Sachs points out that while technological advancements hold enormous potential for improving overall well-being, they can also exacerbate inequality. Specifically, he notes that workers with higher levels of education and skills, who work in fields that cannot be easily automated, tend to benefit from technological advancements, while lower-skilled employees risk being replaced by intelligent machines. This tendency towards increasing income discrepancies has played out over the last 40 years, with job losses concentrated among those performing basic tasks in agriculture, resource extraction, and manufacturing. Sachs cautions that as AI systems become more sophisticated, even traditionally white-collar jobs in fields like truck driving, taxi driving, warehousing, and retail could be automated.

To mitigate this looming crisis, Sachs highlights the vital role of instruction and acquiring new capabilities. He argues that if workers can acquire new skills, they will have greater resilience in the changing job market. Furthermore, he argues that governments must implement policies to counteract the adverse market forces that promote inequality. He advocates for a "social-democratic" approach, meaning dedication to a robust public sphere, where taxation of high-earning individuals and corporations finances universal access to quality healthcare, education, and social protection for all citizens. This ethos, grounded in the principles of social justice and inclusion, is crucial, in Sachs's view, for handling the shifting landscape of technology, work, and globalization.

Practical Tips

• Enhance your adaptability by volunteering for projects that require tech collaboration. Look for opportunities within your current job or local organizations where technology is being implemented and offer to help. This could mean assisting with setting up a new digital filing system or helping to manage a social media campaign.
• Invest in a small-scale, home-based business that capitalizes on personal skills or hobbies. This can serve as a supplemental income source and reduce reliance on industries prone to job losses. For example, if you're good at crafting, consider selling your products on Etsy or creating a dedicated Instagram account to showcase and sell your work.
• Create a skill-building buddy system with a colleague or friend where you commit to learning one new skill every month. You can hold each other accountable, share resources, and practice together, turning skill acquisition into a social and collaborative effort.
• Consider volunteering for local organizations that advocate for policies like universal healthcare or education. While you might not have the power to change policies on your own, contributing your time to groups that are working towards these goals can make a difference. For instance, you could volunteer at a phone bank for a campaign that's pushing for the expansion of healthcare coverage in your area.
• Volunteer to mentor someone from a marginalized group in your professional field. Use online platforms like LinkedIn to connect with individuals seeking guidance and support. This one-on-one interaction not only helps bridge the inclusion gap but also provides you with insights into the systemic barriers others may face in the tech and work environment.

UN Reforms and Regional Empowerment Essential for Effective Governance of International Public Goods and Transnational Issues Resolution

Sachs emphasizes that numerous major challenges facing society today cannot be addressed by individual countries acting in isolation. These include the control of climate change, the management of large-scale ecosystems shared by multiple countries (for example, the Amazon Basin), the governance of global financial flows, aid for developing the poorest countries, the regulation of the Internet, and the global coordination needed for transport, power systems, and the protection of biodiversity. Sachs argues that these challenges highlight the necessity of cooperation across nations, undergirded by effective regional, continental, and worldwide organizations.

He calls for a rethinking of existing institutions, specifically the United Nations, to better reflect the current realities of economic and geopolitical power worldwide. Sachs observes that the UN, created in the aftermath of World War II, operates under a charter that grants unusual power to the five nations that hold permanent seats on the UN Security Council (the US, Russia, China, France, and the United Kingdom), which retain veto power over Security Council decisions. However, given the rising economic power and geopolitical influence of regions out beyond the North Atlantic, especially Asia, he argues that reforming the UN Security Council is vital for ensuring its legitimacy and effectiveness in tackling global issues like climate change, disease control, and sustainable development.

In conclusion, Sachs urges readers to face the complexities globalization brings with a sense of both urgency and optimism. He underscores the need for clear-eyed evaluations of the challenges and opportunities ahead, along with a dedication to cooperation, innovation, and a vision of inclusive and sustainable growth which benefits everyone.

Practical Tips

• Make a personal commitment to purchase products from companies that demonstrate a strong commitment to international standards and cooperation. This could mean buying from brands that source materials sustainably across borders, support fair trade, or contribute to international aid. By becoming a conscious consumer, you're voting with your wallet for a more cooperative and globally responsible economy.
• Start a virtual book club focused on global issues with members from different countries. Each month, select a book that addresses a global challenge and discuss it through an online platform. This encourages cross-cultural dialogue and understanding, as members share their diverse viewpoints and potential solutions to the issues at hand.
• Start a blog or social media page dedicated to discussing global governance and the UN Security Council, aiming to raise awareness among your peers. Use these platforms to share insights, break down misconceptions, and highlight the importance of an effective Security Council in managing global issues.
• Create an "Optimism Jar" where you drop a note of one positive global development each week. This could be a technological advancement, a successful environmental initiative, or a story of international cooperation. Regularly reflecting on these notes can help maintain a hopeful outlook on globalization's potential benefits.
• Use a decision-making app with a feature that allows you to weigh challenges against opportunities when faced with choices. By inputting the pros and cons, the app could help you visualize and quantify the potential impact of each decision. For instance, when considering a job change, the app could help you balance the challenge of leaving your comfort zone against the opportunity for career growth.
• Encourage innovation by initiating a "Problem-Solving Club" with friends or colleagues. Meet monthly to discuss a specific problem and brainstorm innovative solutions together. For instance, if the problem is reducing waste in the office, the group could come up with a plan to implement a recycling program or design a game to encourage less paper usage.