Globalization and Economic Transformation

Globalization Process

The unification of the world drives the circulation of material and immaterial goods, leading to the re-globalization of economic, social, political, and cultural aspects. This globalization has unique characteristics that differentiate it from other stages of capitalism:

1. State reform and deregulation of economic and financial activities.
2. Productive restructuring and the emergence of new forms of labor organization.
3. Processes of regionalization and integration, leading to the formation of large economic blocs.

Fordism

Fordism is a specific way of organizing the production process that characterized the capitalist system from the 1930s. Using an assembly line, as pioneered by Ford Motors in the early 20th century, it represents a technical and social organization that dictates the types of tasks to be executed and who conceives and carries them out.

State Reform and Globalization

Globalization creates a new socio-political framework supported by state reform and changing state roles. It is based on economic liberalization and establishing the necessary conditions to boost growth and private capital accumulation. The reform includes:

1. Opening of the national economy to international markets.
2. Privatization of public companies.
3. Transfer of responsibilities and services to provincial and municipal governments.
4. Reduction of public spending.

Privatization Processes in Latin America

Privatization in Latin America has been extensive and varied across countries. It has differed in terms of transfer mechanisms (direct sales, stock offerings, etc.) and the amount of state ownership retained.

The New Economic Paradigm

The new economic paradigm presents several key features:

1. Information plays a central role, unlike the Fordist paradigm, which relied heavily on energy from oil.
2. Flexibility in production processes increases, and productivity gains no longer depend solely on economies of scale from mass production.
3. The proliferation of microprocessors and electronic interfaces leads to new products and transforms work processes.
4. The engineering sector is no longer the core of production. Instead, dynamic sectors like microelectronics, information technology, telecommunications, genetic engineering, biotechnology, programmable control systems, and inorganic chemistry emerge. This paradigm shift has profound impacts on all dimensions of economic, social, and cultural development.

Competitiveness and Territory

Companies compete for the same markets globally, seeking profit. The ability to incorporate technological innovation into the production of goods and services is crucial, creating winners and losers. This leads to competition among regions and global cities. Metropolitan areas with networks for international exchange of capital, goods, information, and technology thrive, while rural and less modern areas face challenges.

Integration and Regionalization Processes

Integration processes have multiple dimensions, primarily based on economic objectives. They also encompass political and cultural aspects that can influence the process. The current global trend is towards integration through establishing major economic blocs at both global and national levels.