“Deglobalization”? Not a Chance

In a recent (November 13, 2016) New York Times essay, Ruchir Sharma argued that the lesson of globalization’s past, and of President-elect Donald Trump’s proposals that relate to globalization, “is that just as night follows day, deglobalization follows globalization- and can last as long”. This, of course, is a deterministic “grand narrative”. It is derived from generalizing from a single historical case of the great wave of globalization in the early 20th century (there were a number of other epochs, or phases, before that) and its descent into what might be termed deglobalization with the start of WWI. Determinism, grand narratives, and generalizing from a single case are all “no-nos” in contemporary sociology and most other social sciences.

A more nuanced view requires a perspective on globalization that views it as a dialectic of a series of “flows” and “barriers”. We have recently experienced a period in which the flows (of people, money, ideas, etc.) have been in increasing ascendancy over the barriers. These flows have gone through, around, under and over many different kinds of barriers (especially national borders in Europe). However, the pendulum is now swinging back in the direction of strengthening some of those barriers- and creating new ones- in at least some sectors of society and parts of the world. However, that shift should not be seen as deglobalization, but rather as an aspect of the globalization process itself. Thus, we are not undergoing a process of deglobalization, but rather we are at the early stage of another phase of the globalization process.

Sharma, Chief Global Strategist at Morgan Stanley Investment Management, not only fails to see this, but he has a limited view of globalization as primarily an economic phenomenon (with a little politics thrown in). Such a narrow perspective means that he fails to see that globalization has continued apace, and even accelerated, in many other sectors of society, especially on the internet and, more generally, in the cultural, social, and intellectual realms (among many others).

We may be an era in which there is increasing interest in creating barriers in some sectors of society (e.g., trade, migration), but that is decidedly not the case in many others. Sharma, and those who adopt his perspective, need to develop a broader (especially less economistic) and less deterministic view of globalization. Yes, night does follow day (at least for the foreseeable future), but one should not leap from that to the idea that deglobalization follows globalization. There are trends, but no inevitabiities, in the social world.

The “Sharing” Economy, Uber, and the Triumph of Neo-Liberalism

Ride-sharing is a form of prosumption- those who are using (consuming) their cars provide (produce) rides for those in need of them. Ride-sharing can also be seen as part of the sharing (of cars in this case) economy, a collaborative system (the collaboration of those with rides to offer and those who need them), and a peer-to-peer (p2p) systems (drivers providing rides mainly to other drivers who happen to be without their cars). These ideas and systems associated with the sharing economy (another is airbnb) were, in principle, not based on a profit-making model, but were generally more communal and altruistic in nature. However, they all have, at least in part, been transformed by the entry of profit-making businesses that in the pursuit of profit are altering these systems, especially their more romantic characteristics.
Many drivers can, and do, engage in ride-sharing free of charge for altruistic and communal reasons. However, the rise of profit-making companies like Uber and Lyft that charge drivers a portion (roughly 20%) of every transaction for use of their online platforms has transformed ride-sharing into a job (at least part-time) and a profitable business. Unlike most forms of prosumption- using ATMs, scanning one’s groceries, using self-check-in kiosks at airports and hotels- the “producers” (the companies and the drivers) earn a money from the process.
These ride-sharing businesses been proliferating despite the fact that they have encountered opposition nationally, and to some degree globally, from taxicab companies and local governments. This is because their app-based system accessible via smartphone is highly attractive, especially to younger people, who can summon a car more quickly without standing on corners and hailing, sometimes fruitlessly, taxicabs. The latter characteristics make the taxicab seem old-fashioned to younger people. Thus, they are likely to continue to shift in the direction of ride-sharing, while the older generation will likely remain wedded, at least for a time to the taxi industry. However, while the taxi industry will not disappear, this generational difference suggests a long-term shift away from taxi industry and in the direction of the ride-sharing industry. While the traditional taxicab industry is being threatened, it is difficult to defend it because it has tended to be monopolistic and has successfully resisted unionization efforts. For their part, drivers are not well-paid and must deal with difficult (sometimes dangerous) work, with little in the way of job protection and benefits.
Yet, ride-sharing through Uber and similar companies is not without its problems. Uber drivers would seem to be even more powerless and difficult to unionize than traditional taxi drivers. Among other things, they work on their own, are widely dispersed and have little opportunity to come into contact with one another. This gives Uber great power to release them and to alter the percentage they earn from each ride. The income of Uber drivers is limited because unlike taxi drivers, they are not supposed to accept tips. While the income is attractive for those who now do this in their spare time, it might be less satisfactory for those who try to do it on a full-time basis
Another point worth mentioning is that unlike in paid jobs, those working for the ride-sharing business provide many of their own “means of production”. Uber does provide the crucial (and expensive) online system that supports and drives ride-sharing, but the drivers provide and maintain their own cars as well as the smartphones that connect them to the online system.
This a near-perfect neo-liberal system in which capitalist organizations earn profits while giving those who work for them relatively little and leaving them largely on their own to fend for themselves.