Understanding the uneven effects of globalisation

Globalisation refers to the increasing interconnectedness of places around the world through flows of goods, services, money, people, and information. While globalisation affects most places to some degree, its impacts are not felt equally everywhere. Some locations benefit greatly from global connections, while others experience limited involvement.

Factors contributing to uneven globalisation

• Historical influences - Some countries have struggled to form global connections due to past events, such as colonisation, which restricted their ability to trade freely and build independent networks.
• Geographical barriers - Physical features, like remote locations far from coastlines, mountain ranges, or deserts, can make it harder for places to establish transport and trade links.
• Deliberate choices - Nations may opt for isolation through policies that prioritise self-reliance over international engagement, reducing their exposure to global influences.

These factors mean that places with weaker connections in the past are often less integrated today, creating a cycle of uneven development.

Measuring the extent of globalisation

Assessing how much a place is affected by globalisation is challenging because it involves multiple dimensions, such as economic ties, social interactions, and political involvement. However, specialised indices provide a way to quantify these elements by combining various indicators into overall rankings or scores. These tools help compare levels of globalisation across cities or countries.

AT Kearney Global Cities Index (GCI)

The AT Kearney Global Cities Index ranks over 150 cities based on their degree of globalisation, focusing on how well they connect to the wider world.

Key components of the GCI:

• Business activity - Measures the level of business activity in a city.
• Political engagement - Assesses the extent of political engagement with global institutions and processes.
• Cultural experience - Evaluates the diversity and richness of cultural experience available.
• Information flow - Considers infrastructure for information flow, such as internet connectivity.
• Human capital - Looks at the number of foreign-born residents who foster international links through migration and networks.

According to the index, the top five most globalised cities are New York, London, Paris, Tokyo, and Beijing.

KOF Globalisation Index

The KOF Globalisation Index evaluates around 190 countries on their overall level of globalisation, producing a score from 1 (low) to 100 (high).

Key features of the KOF Index:

• It incorporates a range of variables across three main categories: economic globalisation, social globalisation, and political globalisation.
• The variables are combined into a single score.
• Higher scores indicate stronger global integration, while lower scores suggest detachment.

Countries detached from globalisation

Some countries remain relatively detached from globalisation, meaning they have minimal involvement in global flows and are largely unaffected by worldwide trends.

Reasons for detachment from globalisation

• Historical factors - Former colonies might have been restricted from developing independent trade links, leaving them with weak global ties.
• Physical geography - Isolation caused by natural barriers, such as mountains or deserts, can hinder infrastructure development and connectivity.
• Political decisions - Nationalist policies may prioritise domestic interests over international engagement, deliberately limiting foreign influences.
• Lack of economic development - High poverty levels can prevent countries from competing in global markets or investing in necessary technology.
• Environmental vulnerability - Vulnerability to climate change can disrupt agriculture and trade, especially for nations reliant on cash crops.

Case study: North Korea's detachment from globalisation

North Korea provides a clear example of a country that has remained largely detached from globalisation due to its political ideology and policies.

Background and methods of isolation

• Since its establishment in 1948, North Korea has followed an isolationist, socialist regime aimed at minimising external influences.

• The economy focuses on producing goods for domestic needs rather than building trade links, reducing reliance on other nations.

• Political choices limit trade, diplomatic relations, and physical infrastructure, such as internet cabling, to control information flow and prevent exposure to foreign ideas.

Limited external influences and engagements

• Despite its isolation, North Korea has experienced some globalisation through necessity and selective interactions.
• Following famine and economic decline in the 1990s, the country has sought and received humanitarian assistance from capitalist nations like South Korea and the USA.
• North and South Korea have formed unified teams for events, such as ice hockey at the 2018 Winter Olympics, fostering limited cultural exchange.
• In 2018, leader Kim Jong-Un met US President Donald Trump in Singapore, leading to commitments on denuclearisation of the Korean Peninsula and improved relations.