Université d’Alger
14 Mai 2005
|
Faculty of Economics and Management
|
Historical overview:
The Information Age
3rd revolution in capitalist production
Basis of “globalization” and “post-modern” society
Thomas W. O’Donnell
The University of Michigan
Presented:
Université d´Alger
Faculty of Graduate Economics
14 Mai 2005
[email protected]
http://www.umich.edu/~twod/courses
1
Université d’Alger
14 Mai 2005
|
Faculty of Economics and Management
|
Historical overview:
i.e.,
The Information Age
Historical
Stagesinof
Human
Economic,
3 revolution
capitalist
production
Basis of “globalization”
and “post-modern” society
Political
and
Thomas W. O’Donnell
The University
of Michigan
Social
“Development”
rd
Presented:
Université d´Alger
Faculty of Graduate Economics
14 Mai 2005
[email protected]
http://www.umich.edu/~twod/courses
2
Université d’Alger
14 Mai 2005
|
Faculty of Economics and Management
|
In my first lecture I began with this slide:
Does the U.S. have a global “empire”?
Aspects of American hegemony include:
• Advanced industry & information technology
• Finance & monetary – $US dollar, International Monetary Fund, World
Bank, Wall Street, ...
• Trade – U.S. dominates WTO (OCM), NAFTA, …
• Military – Navy & Air superiority, Army with Information technology, new
methods & tactics …
• Culture – global English; U.S. music, film, television, …
• Science – Biology, physics, information theory, social …
• Energy – Global oil and natural gas

•…
3
Université d’Alger
14 Mai 2005
|
Faculty of Economics and Management
|
Today’s lecture: “Historical overview of the Information Age”
… from the perspective of “globalization” as framework of the “New Empire”
… and Information Revolution as globalization’s material-economic base.
Does the U.S. have a global “empire”?
Aspects of American hegemony includes:
• Advanced industry & information technology  
• Finance & monetary – $US dollar, International Monetary Fund, World
Bank, Wall Street, ...
• Trade – U.S. dominates WTO (OCM), NAFTA, …
• Military – Navy & Air superiority, Army with Information technology, new
methods & tactics …
• Culture – global English; U.S. music, film, television, …
• Science – Biology, physics, information theory, social …
• Energy – Global oil and natural gas
•…
4
Université d’Alger
|
Faculty of Economics and Management
14 Mai
2005 characteristics of three bourgeois eras in production, …
Compare
|
(D. Bell, 1999)
5
Université d’Alger
14 Mai 2005
|
Faculty of Economics and Management
|
Today’s lecture:
I.
What is “The Information Revolution” ?
-- Contrast: What was the 2nd Industrial Revolution ?
Transport
Trade
Industry
Pop.
(mill.)
Mercantil
Railways e fleet
(thousand (mill.
km.)
tons)
Output
Imports
(mill. tons)
& exports
(billion
Coal
Iron
marks)
Number
of cotton
spindles
(mill)
Principal
economic
areas
Area
(mill sq.
km.)
1) Central
Europe
27.6
(23.6)
388 (146)
204
8
41
251
15
26
2) Britain
28.9
(28.6)
398 (355)
140
11
25
249
9
51
3) Russia
22
131
63
1
3
16
3
7
4) Eastern
Asia
12
389
8
1
2
8
0.02
2
5)
America
30
148
379
6
14
245
14
19
(The figures in parantheses show the area and population of the colonies)
(V. Lenin, 1914)
6
Université d’Alger
14 Mai 2005
|
Faculty of Economics and Management
|
Today’s lecture outline:
What is “The Information Revolution” ?
As the material-economic base of “Globalization,” and
“Postmodern Society”
III. Competition of U.S.A. vs. developed and developing
countries (apropos ‘The New Empire’)
I.
II.
7
Université d’Alger
14 Mai 2005
|
Faculty of Economics and Management
|
Today’s lecture:
I.
What is “The Information Revolution” ?
-- Contrast: What was the 2nd Industrial Revolution ?
Groups in the electrical industry
Prior to
1900
Felten &
Lahmeyer
Guillaume
Union
AEG
AEG
(GEC)
Felten & Lahmeyer
Siemens
& Halske
Schuckert
Bergmann
& Co.
Kummer
Bergmann
(Failed in
1900)
Siemens &
Halske-Schuckert
By 1912:
AEG (GEC)
Siemens & Halske-Schuckert
(In close "cooperation" since 1908)
(V. Lenin, 1914)
8
Université d’Alger
14 Mai 2005
|
Faculty of Economics and Management
|
Today’s lecture:
I.
What is “The Information Revolution” ?
-- Contrast: What was the 2nd Industrial Revolution ?
Groups in the electrical industry
America:
General
Electric Co.
(GEC)
Germany:
General
Electric Co.
(AEG)
Turnover
Number of
(Mill. marks) employees
Net profits
(Mill. marks)
1907
252
28,000
35.4
1910
298
32,000
45.6
1907
216
30,700
14.5
1911
362
60,800
21.7
(V. Lenin, 1914)
9
Université d’Alger
14 Mai 2005
|
Faculty of Economics and Management
|
Today’s lecture:
I.
What is “The Information Revolution” ?
-- Contrast: What was the 2nd Industrial Revolution ?
Percentage of territory belonging to the European colonial powers
(including the United States)
1876
1900
Africa
Polynesia
Asia
10.8
56.8
51.5
90.4
98.9
56.6
Increase or
decrease
+79.6
+42.1
+5.1
Australia
America
100.0
27.5
100.0
27.2
-0.3
(V. Lenin, Op. Cit, A. Supien [geographer], 1914)
10
Université d’Alger
14 Mai 2005
|
Faculty of Economics and Management
|
Today’s lecture:
I.
What is “The Information Revolution” ?
-- Contrast: What was the 2nd Industrial Revolution ?
Colonial possessions
Percentage of territory belonging to the European colonial powers
Great Britain
France
(including the United States)
Year
Area
(mill.
sq.m.
Pop.
(mill.)
Area
(mill.
sq.m.
1815-30
1860
?
2.5
126.4
145.1
1880
1899
7.7
9.3
267.9
309.0
Germany
Pop.
(mill.)
Area
(mill.
sq.m.
Pop.
(mill.)
0.02
0.2
0.5
3.4
-
-
0.7
3.7
7.5
56.4
1.0
14.7
(V. Lenin, Op. Cit, A. Supien [geographer], 1914)
11
Université d’Alger
14 Mai 2005
|
Faculty of Economics and Management
|
Data we look at today – the Networked society, increasingly the basis of
all production, commerce, sales, social interactions, …, power.
(D. Bell, 1999)
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Université d’Alger
14 Mai 2005
|
Faculty of Economics and Management
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M. Castells, 2001
13
Université d’Alger
14 Mai 2005
|
Faculty of Economics and Management
|
M. Castells, 2001
14
Université d’Alger
14 Mai 2005
|
Faculty of Economics and Management
|
M. Castells, 2001
15
Université d’Alger
14 Mai 2005
|
Faculty of Economics and Management
|
M. Castells, 2001
16
Université d’Alger
14 Mai 2005
|
Faculty of Economics and Management
|
M. Castells, 2001
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Université d’Alger
14 Mai 2005
|
Faculty of Economics and Management
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(M.Castelles, 2001)
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Université d’Alger
14 Mai 2005
|
Faculty of Economics and Management
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(J. Beninger, 1986)
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Université d’Alger
14 Mai 2005
|
Faculty of Economics and Management
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(D. Bell, 1999)
20
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Faculty of Economics and Management
“Modern values – Industrial Age”
Université d’Alger
14 Mai 2005
|
NB USA
Inglehart
& Baker, 2000)
“Post-modern values – Information Age”
21
Université d’Alger
14 Mai 2005
|
Faculty of Economics and Management
|
Today’s lecture:
What is “The Information Revolution” ?
As the material-economic base of “Globalization,” and
“Postmodern Society”
III. Competition of U.S.A. vs. developed and developing
countries (apropos ‘The New Empire’)
I.
II.
22
Université d’Alger
14 Mai 2005
|
Faculty of Economics and Management
|
Today’s lecture:
What is “The Information Revolution” ?
As the material-economic base of “Globalization,” and
“Postmodern Society”
III. Competition of U.S.A. vs. developed and developing
countries (apropos ‘The New Empire’)
I.
II.
-----------------------Forms of Human Social Production:
In order for persons to use a certain technologies (tools, machines, computers, …
specific forms of social organization are required
These forms of organization bring forth different ways of life, different
ideologies and ways of seeing the world at different periods in history
The different people have different relations to these means of production
this is the basis of different classes
Same today – consequences of new information economy
23
Université d’Alger
14 Mai 2005
|
Faculty of Economics and Management
|
The Information Age and Globalization:
I.
What is the Information Revolution (IR)?
a.
Its place in history
Forms of social production -- Pre-history

Paleolithic (Stone Age)  Bronze Age  Iron Age

Hunting and gathering  herding  agriculture

Nomadic life  permanent communities
24
Université d’Alger
14 Mai 2005
|
Faculty of Economics and Management
|
The Information Age and Globalization:
I.
What is the Information Revolution (IR)?
a.
Its place in history
Forms of social production -- Recorded history
Slave (e.g., European ancient empires of Rome, Greece, …)
Feudal (European)
1. The Medieval “industrial” and agricultural revolution(s)” (ca. 1000)
C. Bourgeois
1. The Commercial Revolution (ca. 1450-1750)
2. The 1st Industrial Revolution (ca. 1780 – 1870)
3. The 2nd Industrial Revolution
 Phase I: Mass Production / Electrical (ca. 1880 – 1930)
 Phase II: Automation / Electronic I (ca. 1945-1970)
4. The Information Revolution / Electronic II
 Phase I: Computerized manufacturing (ca. 1970-1980s)
 Phase II: Computerized communications & networks (1990-…)
 Phase III: ??
A.
B.
25
Université d’Alger
14 Mai 2005
|
Faculty of Economics and Management
|
C. Bourgeois
1. The European Commercial Revolution (ca.1450-1750)
 Internal
- Based on handicraft production methods,
not new machinery or new tools
- Aristocracy and some free farmers in agriculture
- Division of labor is the key to increased productivity
- Demand for raw materials increased
- Development of banks, credit, joint stock companies, etc.
 External
- Raw materials sought by Europe from around the world,
“mercantile” system
- Innovations in navigation:
compass, ships, longitude, clocks,
- Led to “discovery” of New World; European trade and
colonialism in Africa and Asia; primitive accumulation
1st ‘globalization’- The beginning of the capitalist “world market”
- Developed surplus of raw materials from trade / colonies
 Social classes
 Ideology and politics
26
Université d’Alger
14 Mai 2005
|
Faculty of Economics and Management
|
C. Bourgeois
1. The European Commercial Revolution (ca.1450-1750)
 Internal
 External
 Social classes
- Landed aristocracy and peasants, serfs
- Guild masters, journeymen and laborers
- Clergy and monks
- Bourgeois* merchants, bankers small and large
(oppressed / rising class)
- Kings and queens, as absolute bourgeois monarchs
 Ideology and politics
_________________
•“Bourgeoisie” were the people who lived on the “bergs” (hills) around the landed aristocracy’s castles
•and engaged in handicraft manufacturing and merchant trade. Mostly came from serfs who became
•free from the land. In general, they are the new class of towns people in mid-feudal Europe.
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Université d’Alger
14 Mai 2005
|
Faculty of Economics and Management
|
C. Bourgeois
1. The European Commercial Revolution (ca.1450-1750)
 Internal
 External
 Social classes
 Ideology and politics
- Previously: Feudal, 11th-century system
- Relationships of personal authority, of
obligations to one’s lord / master (everywhere),
- Hereditary social rank (for masters and serfs alike)
- Labor-in-kind owed by surfs, enslaved to land
- Hereditary social ranks, property ownership,
- No politics as such: all politics through religious
differences, all law through religion,
divine rights of kings, etc.
- The class interests between people hidden,
preserved position of aristocratic classes
- Bourgeois of 17th century:
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Université d’Alger
14 Mai 2005
|
Faculty of Economics and Management
|
C. Bourgeois
1. The European Commercial Revolution (ca.1450-1750)
 Internal
 External
 Social classes
 Ideology and politics
- Feudal 11th century
- Bourgeois of 17th century:
- Individual rights: Rights of Man, Declaration of
Independence, democracy
- Expressed bourgeois aspirations for “Free Market”
and against aristocracy’s domination of
commerce, property and individuals
- Protestant Reformation had changed Christian ideology
from a religion of 11th-century feudal aristocracy
into a religion of bourgeois merchants
- Bourgeois revolutions (U.S., France, …) ended bourg.
absolute monarchs; bourgeois
itself took over state directly, consolidated
internal markets in the bourgeois nation
29
Université d’Alger
14 Mai 2005
|
Faculty of Economics and Management
|
C. Bourgeois
1. The Commercial Revolution (ca. 1450-1750)
2. The 1st Industrial Revolution (ca. 1780 – 1870)
 Internal
- Revolution in social production
- Division of labor from period of Commercial Revolution allowed
placing new machines into individual steps in production
- Logic of division of labor was based on human capabilities
with many machines, needed system based on machines’
capabilities; purely on scientific-technical basis, not human
- Led to systems of machines, with division of labor based on
the machines – this was Modern Industry
- Use of machines required non-human, non-animal motive force,
first water and wind power, then steam engines using coal
which had no requirements of weather or location
- Heightened capitalist competition drove innovation in machines
and social organization of production to optimize their use
 External
 Social classes
 Ideology and politics
30
Université d’Alger
14 Mai 2005
|
Faculty of Economics and Management
|
C. Bourgeois
1. The Commercial Revolution (ca. 1450-1750)
2. The 1st Industrial Revolution (ca. 1780 – 1870)
 Internal
 External
- Surplus of colonial raw materials drove innovation as insufficient
labor to process with handicraft methods
- Modern Industry could process with machines cheaper than native
traditional labor – cheap commodities broke down the barriers
of all ancient, traditional nations (military assistance if resisted)
- Story of “Victorian Holocausts”
- Colonial and European markets to absorb new industrial
commodities.
- Uneven development of capitalism
- Between industrialized nations (capitalist competition)
- Between industrialized and non-industrialized (colonial)
 Social classes
 Ideology and politics
31
Université d’Alger
14 Mai 2005
|
Faculty of Economics and Management
|
C. Bourgeois
1. The Commercial Revolution (ca. 1450-1750)
2. The 1st Industrial Revolution (ca. 1780 – 1870)
 Internal
 External
 Social classes
- Weakening of landed aristocracy. Capitalist agriculture grows.
- Requires less peasants. Peasants pushed from land by aristocracy,
go to cities (or die).
- Free small farmers engage in cottage industry, machine innovations
force them to factories in cities
- Proletariat working class grows rapidly in cities with industry
- First large cities (e.g., Manchester). Bourgeoisie further eliminates
power of aristocracy.
- Proletariat is concentrated, similar conditions, accustomed to
cooperation at factories; first laboring class capable of organizing
domestically and internationally, unions, political parties
 Ideology and politics
- I will show this below – differences between pre-industrial, and
post-industrial ideology and social values
32
Université d’Alger
14 Mai 2005
C.
|
Faculty of Economics and Management
|
Bourgeois
1.
The Commercial Revolution (ca. 1450-1750)
2.
The 1st Industrial Revolution (ca. 1780 – 1870)
3.
The 2nd Industrial Revolution

Phase I: Mass Production / Electrical (ca. 1880 – 1930)

Phase II: Automation / Electronic I (ca. 1945-1970)
- The Electronic Revolution and Ford-Taylor automated mass
production: analog-controls and mechanical business machines
to programmable logic computers (PLC) and mainframe
computers
- Development of large middle class (majority in ~1957)
and democratizing experience of WW II led to
- The social and cultural movements in especially the U.S.A. and
Western European countries (late-1960s-early-1970s)
movements which undermined traditional, personal authority
relationships in favor of democratization:
- Undermined: Personal authority of man over woman, parents
over children, of teacher over pupils, of minister/priest over
faithful, of majority over minority nationalities, of
political leaders over citizens, etc.
(Examples: wife beating, divorce rights, work outside; spanking,
orders; rote learning, explanations required, dress codes;
reasoned faith; civil rights movements; Watergate, legitimacy crisis)
33
Université d’Alger
14 Mai 2005
C.
|
Faculty of Economics and Management
|
Bourgeois
1.
The Commercial Revolution (ca. 1450-1750)
2.
The 1st Industrial Revolution (ca. 1780 – 1870)
3.
The 2nd Industrial Revolution

Phase I: Mass Production / Electrical (ca. 1880 – 1930)

Phase II: Automation / Electronic I (ca. 1945-1970)
- The Electronic Revolution and Ford-Taylor
- Development of large middle class
- The social and cultural movements
- Science: The intellectual-scientific history of information: from
symbolic logic, incompleteness, and algorithms to universal
computing machines (the Church-Turing Thesis), the modern
theories of information, communication, and control
- Technology: The realization of universal computing devices:
1. mechanical (Babbage); and single-purpose machines
2. electric (relays and solenoids)
3. electronic (i. vacuum tubes, ii. semiconductors).
Dependent on quantum physics and material science: to
develop electronic engineering.
- Social-Organizational: evolution of computer architecture, applications,
languages, software and interfaces.
4. The Information Revolution / Electronic II
34
Université d’Alger
14 Mai 2005
C.
|
Faculty of Economics and Management
|
Bourgeois
4.
The Information Revolution / Electronic II

Phase I: Computerized manufacturing (ca. 1970-1980s)
- Marriage of electronic semiconductor universal processors
with single-purpose machines to get smart machines
robotics, CAD-CAM, digital-semiconductor controls, …
- Japan & N. Europe develop lean management; “infomated”
(Zuboff); broke Fordist “automate” imperative
- Re-opening post-war industrial competition, Japanese and
north European tactic of variety/quality,
- The collapse of U.S. Fordist manufacturing monopoly,
“rust belt” (biological-ecology analogy); US refused adapt
- The continued lag of USA - sociology vs. Japan & N. Europe
- Social: The demise of the industrial proletariat and its labor, socialist,
and communist parties; not primarily lost to 3rd world.
- The differential effects on sections of the capitalist classes,
the new inter-capitalist conflict
- Political: The collapse of mass-industrial era’s liberal politics, and
energizing of the Right.

Phase II (1990s): Computerized communications and networks
35
Université d’Alger
14 Mai 2005
C.
|
Faculty of Economics and Management
|
Bourgeois
4.
The Information Revolution / Electronic II

Phase I: Computerized manufacturing (ca. 1970-1980s)

Phase II: Computerized communications and networks (ca. 1990s-…)
- The marriage of universal processors with communications and
the network revolution in bureaucracies of production, commerce,
finance, and personal networks
- American government role in developing internet
- The elaboration (2000s) of information society from inside
businesses to B2B and B2-the-public.
The digital divide compared to the inequalities of previous mass I
ndustrial era:
within nations of the Information Revolution, between these and the
information-underdeveloped world.
- Education. US immigrant Vs. N. European welfare state strategies
Phase III (20XX): The monopolist blocking of Information-Age
revolutions in transportation;
the persistence of cheap oil.
The persistence of the uneven development of capitalism (the digital
divide)

Phase III: ??
characteristics 
36
Université d’Alger
14 Mai 2005
|
Faculty of Economics and Management
|
Today’s lecture:
What is “The Information Revolution” ?
As the material-economic base of “Globalization,” and
“Postmodern Society”
III. Competition of U.S.A. vs. developed and developing
countries (apropos ‘The New Empire’)
I.
II.
37
Université d’Alger
14 Mai 2005
|
Faculty of Economics and Management
|
The Information Revolution – globalization and post-modern
society
Summary:
To be continued … but, for whom?
The “Digital Divide”
- How can developing nations participate on own
terms?
- There is a Digital Divide within developed nations too
- Not North-South now (Castells, 2001)
-Other key issues:
New social movements, trajectory of classes, …
38
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