Globalization and Capitalism in the Twenty-First Century

Tetsunori Koizumi, Director

What is the driving force behind globalization, behind dramatic and multi-dimensional changes taking place in the world around us? One interpretation of globalization would be to see it as the latest phase of “modernization,” which Karl Polanyi characterized as the “Great Transformation”1. The initial thrust of this Great Transformation, which would cover all aspects of people’s lives, took place in the late eighteenth century when the Industrial Revolution ushered in a revolutionary change in the capitalist mode of production with the adoption of assembly lines in factories, which made it possible to for capitalists to exploit economies of large-scale production, thus prompting them to seek markets globally beyond their domestic markets for their products.

While the Industrial Revolution was no doubt a transformative event in the evolution of modern societies, the invention of capitalism as a mode of organizing economic life goes back much further than the eighteenth century. As Immanuel Wallerstein points out, capitalism was an invention of late-fifteenth-century Europe: “My own view is that the genesis of this historical system is located in late-fifteenth-century Europe, that the system expanded in space over time to cover the entire globe by the late nineteenth century, and that it still today covers the entire globe.”2 Involving, as it does, economic change brought about by powerful transnational corporations from the West under the banner of capitalism, or “global capitalism” as it is called today, globalization can thus be seen as the culmination of the capitalistic expansion of Western nations that goes back, at least, five centuries.

The late fifteenth century, it may be recalled, is also known as the start of the Age of Great Exploration in the history of civilizations. As symbolized by Columbus’ voyage to what would become the New World in 1492, Western nations, headed by Spain first but soon followed by Portugal, England and France, started to explore new territories beyond their national borders to reap economic bounties with the military and technological prowess they possessed at the time compared with nations in other parts of the world. Seen in this historical context, globalization, whether driven by the acquisitive motive of capitalists or the religious zeal of Christian missionaries, can be seen as the triumph of Western civilization that became apparent with the emergence of the United States as the dominant power in world affairs in the second half of the twentieth century.

That globalization in the second half of the twentieth century can be seen as representing the triumph of Western civilization over other civilizations is well summarized in the following words of Arnold Toynbee: “Future historians will say, I think, that the great event of the twentieth century was the impact of the Western civilization upon all the other living societies of the world of that day. They will say of this impact that it was so powerful and so pervasive that it turned the lives of all its victims upside down and inside out—affecting the behavior, outlook, feelings, and beliefs of individual men, women, and children in an intimate way, touching chords in human souls that are not touched by mere external material forces—however ponderous and terrifying.”3

It is to be noted that Toynbee, with his uncommon insight as a historian, expressed these words as early as in 1958 when the word “globalization” was hardly mentioned in intellectual discourses, let alone in daily conversations. Toynbee’s choice of words “upside down and inside out” suggests that the impact of Western civilization and, by implication, of globalization on the lives of people in the rest of the world has been quite extensive and extremely disruptive. Whether they can be characterized as “victims,” globalization for the people living in the non-Western world can be said to have been the change imposed on their lives “from above” by the First World and by supra-national organizations such as the World Bank and the International Monetary Fund, which are seen by them as promoting the interests of the First World. Globalization for these people has also been the change brought into their lives by foreigners and foreign organizations “from outside” beyond their national borders.

Given the nature of globalization as representing the triumph of Western civilization, it is not surprising that anti-globalization movements sprung up in the rest of the world in the last decades of the twentieth century, and are still continuing into the twenty-first century. These movements that mostly reflect the efforts of local and regional communities to regain their autonomy can be seen as representing globalization “from below,” in the sense that they reflect the efforts of lower entities in the traditional hierarchy of political control within the nation-state. They represent globalization “from below,” also in the sense that they are grass-roots movements, with the initiative for opposition and resistance to globalization coming from NGOs, civic groups, and ordinary people in varied walks of social life. Indeed, recent development in UK and US suggest that anti-globalization sentiments, if not movements, are now spreading to the people living in the bastion of Western civilization.

Toynbee’s words, in addition to globalization “from below,” suggest another direction in which anti-globalization can take: globalization “from within.” In the first place, globalization “from within” is a useful—and meaningful—way of interpreting the nature of anti-globalization movements, because civilization as a social system has a topological structure that has the upside-downside dimension as well as the outside-inside dimension. Globalization “from within” is also a useful—and indeed meaningful—way of capturing anti-globalization movements as they represent the effort of the individual to find a stable sense of belonging as a member of a civilization that is being threatened and eroded by dramatic and multi-dimensional changes under globalization. The challenge for capitalism in the twenty-first century is, therefore, whether it can address itself to the individual’s need to find a stable sense of belonging in the world in which the violent clash of civilizations has become, unfortunately, a constant in our lives.

  1. Polanyi, Karl, The Great Transformation: The Political and Economic Origins of Our Time, Boston: Beacon Press, 1957.
  2. Wallerstein, Immanuel, Historical Capitalism with Capitalist Civilization, London: Verso, 1983, p. 19.
  3. Toynbee, Arnold, Civilization on Trial and the World and the West, 1958, p. 278.

Protestantism and Capitalism: Strange Bedfellows Then and Now

Tetsunori Koizumi, Director

One of the important ideas the Protestant reformer Martin Luther (1483-1546) emphasized in his interpretation of Christianity was the idea of “calling,” the task set by God for man to accomplish. According to Luther, fulfilling worldly duties for man was, in fact, fulfilling the will of God. The individual is asked to accept his station in life, for doing so is following the will of God. As Max Weber put it in his authoritative work, The Protestant Ethic and the Spirit of Capitalism, the individual is asked to strive to fulfill the will of God by restraining “his worldly activity within the limits imposed by his established station in life.”1

Luther’s idea of calling has been responsible for the development of intense belief in the divine will of God on the part of the individual Christian, which, in turn, has bred an attitude to accept things as they are, including the secular authority which bounds his worldly activities. After all, even the king, or the prince, can be regarded, to the extent that he is a Christian, as performing his “calling” for the benefit of all members of society.

The idea promulgated by Jean Calvin (1509-1564), known today as Calvinism, has also played an important role in the formulation of ideas behind capitalist development. A salient feature of Calvinism lies in its assertion of “predestination.” According to Calvin, “we call predestination that eternal decree of God, whereby He hath determined what the fate of every man shall be. For not to the same destiny are all created: for, to some is allotted eternal life; to others, eternal damnation. According as a man is made for one end or for the other, we call him predestined to life, or to death.”2 Salvation for man is thus regarded entirely as a matter of predetermined gift of God.

According to Calvin, the world exists only to glorify God. The Christian who has been predetermined to receive the grace of God through salvation can fulfill God’s command only if he performs his duty to the best of his abilities. God also wills that social relations be organized for the purpose of promoting His glorification: “The social activity of the Christian in the world is solely activity in majorem glorium Dei. This character is hence shared by labour in a calling which serves the mundane life of the community.”3 The accomplishment of worldly duty is thus seen as identical with the accomplishment of God’s command. The accomplishment of worldly duty is further supported by another Calvinistic theme that the universe is “designed by God to serve the utility of the human race.”4

An examination of Calvinism naturally raises the question of how one knows whether one is predestined to life, whether one is part of the elect. Max Weber notes two principles relevant in answering this question. First, it is one’s duty to consider oneself chosen. Second, once this duty is realized, it becomes incumbent on him to engage in his worldly activity to the best of his abilities. “In practice this means that God helps those who help themselves. Thus the Calvinist, as it is sometimes put, himself creates his own salvation, or, as would be more correct, the conviction of it.”5

With its emphasis on the duty on the part of the individual Christian to engage in worldly activity with the conviction that the success in it leads to his salvation, it is easy to see how Calvinism came to embody the spirit of capitalism and laid the foundation for capitalist development. Material success thus came to be interpreted as a sign that an individual is among the elect. This emphasis on material success for a faithful Christian is also shared by Pietism, which is known for its express effort to “make the invisible Church of the elect visible on this earth.”6 There are two important beliefs of Pietism which bear direct bearing on the spirit of capitalism. First, the development of one’s own grace to a higher degree of certainty is, in itself, regarded as a sign of God’s grace. Second, God gives signs to the elect, success for their labor being a notable example of such signs. Material wealth can thus be regarded as a sign of God’s grace. And labor, being the activity willed by God, is now rewarded by material success.

One other individual whose is worth mentioning in our discussion of Protestantism and capitalism is John Wesley (1703-1791), the leader of Methodism. Of direct relevance to our discussion is Wesley’s assertion that the works accomplished as a result of worldly duties are not the cause, but rather the means of knowing one’s state of grace. Material accomplishment, just as in Pietism, is regarded in Methodism as a sign of one’s state of grace, a sign that one is among the elect.

The Protestant Reformation, needless to say, is a historical event that took place five centuries ago. To be sure, individuals back then needed these ideas of Protestantism if they were to maintain their Christian faith in the conduct of their worldly affairs of life. But are these ideas of Protestantism no longer needed in today’s world of global capitalism where people from a variety of faith traditions, including market fundamentalism and secular rationalism, are engaged in economic activities? To the extent that those who have amassed enormous material wealth, those who occupy the top 0.1 percent of the world’s population, attribute their success to their faith, we can infer that Protestantism, though it may not go by that name, still plays an important role in the world of global capitalism.

  1. Weber, Max, The Protestant Ethic and the Spirit of Capitalism, New York: Scribner and Sons, 1958, p. 105.
  2. Moeller, J.A., Symbolism, London: Dolman, 1943, p. 115.
  3. Weber, op.cit., p. 108.
  4. ibid., p. 109.
  5. ibid., p.115.
  6. ibid., p. 130.