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									Université d’Alger   |    Faculty of Economics and Management               |         14 Mai 2005
   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

                                                                           twod@umich.edu
                                                                 http://www.umich.edu/~twod/courses   1
Université d’Alger   |        Faculty of Economics and Management          |         14 Mai 2005
   Historical overview:
          i.e.,          The Information Age

                     3 Stages capitalist production
           Historical revolution inof Human Economic,
                         rd

              Basis of “globalization” and “post-modern” society
                                  Political
                                     and
                            Thomas W. O’Donnell
                             The “Development”
                       Social University of Michigan

                                                                      Presented:

                                                                Université d´Alger

                                                         Faculty of Graduate Economics

                                                                      14 Mai 2005

                                                                          twod@umich.edu
                                                                http://www.umich.edu/~twod/courses   2
Université d’Alger    |    Faculty of Economics and Management      |     14 Mai 2005


   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           
       •…


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Université d’Alger    |    Faculty of Economics and Management      |     14 Mai 2005


   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
    Compare characteristics of three bourgeois eras in production, …




                                                                       (D. Bell, 1999)

                                                                                         5
Université d’Alger             |      Faculty of Economics and Management                    |         14 Mai 2005

   Today‟s lecture:
      I.     What is “The Information Revolution” ?
      -- Contrast: What was the 2nd Industrial Revolution ?




                                         Transport                Trade        Industry


                                                   Mercantil      Imports          Output                  Number
 Principal    Area                       Railways e fleet         & exports      (mill. tons)              of cotton
 economic     (mill sq.     Pop.         (thousand (mill.         (billion                                 spindles
 areas        km.)          (mill.)      km.)      tons)          marks)    Coal         Iron              (mill)
 1) Central   27.6
                            388 (146)    204          8           41           251          15             26
 Europe       (23.6)
              28.9
 2) Britain                 398 (355)    140          11          25           249          9              51
              (28.6)
 3) Russia    22            131          63           1           3            16           3              7
 4) Eastern
              12            389          8            1           2            8            0.02           2
 Asia
 5)
              30            148          379          6           14           245          14             19
 America
                       (The figures in parantheses show the area and population of the colonies)
                                                                                                   (V. Lenin, 1914)    6
Université d’Alger   |   Faculty of Economics and Management   |   14 Mai 2005




   Today‟s lecture outline:

       I.   What is “The Information Revolution” ?
       II.  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‟)




                                                                             7
 Université d’Alger     |    Faculty of Economics and Management      |        14 Mai 2005

     Today‟s lecture:
        I.     What is “The Information Revolution” ?
        -- Contrast: What was the 2nd Industrial Revolution ?


Groups in the electrical industry

Prior to   Felten &                  Union     Siemens     Schuckert
                     Lahmeyer                                        Bergmann       Kummer
1900       Guillaume                 AEG       & Halske      & Co.


                                      AEG                                           (Failed in
                                                                     Bergmann
                                     (GEC)         Siemens &                          1900)
             Felten & Lahmeyer                  Halske-Schuckert
By 1912:

                      AEG (GEC)                   Siemens & Halske-Schuckert

                             (In close "cooperation" since 1908)



                                                                          (V. Lenin, 1914)   8
 Université d’Alger        |    Faculty of Economics and Management   |       14 Mai 2005

    Today‟s lecture:
       I.     What is “The Information Revolution” ?
       -- Contrast: What was the 2nd Industrial Revolution ?




Groups in the electrical industry


                                       Turnover      Number of             Net profits
                                       (Mill. marks) employees             (Mill. marks)
America:            1907               252                28,000           35.4
General
Electric Co.        1910               298                32,000           45.6
(GEC)
Germany:            1907               216                30,700           14.5
General
Electric Co.        1911               362                60,800           21.7
(AEG)
                                                                          (V. Lenin, 1914)   9
 Université d’Alger     |     Faculty of Economics and Management           |       14 Mai 2005

    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)

                                                                           Increase or
                       1876                     1900
                                                                           decrease
Africa                 10.8                     90.4                       +79.6
Polynesia              56.8                     98.9                       +42.1
Asia                   51.5                     56.6                       +5.1
Australia              100.0                    100.0                       -
America                27.5                     27.2                       -0.3


                                                   (V. Lenin, Op. Cit, A. Supien [geographer], 1914)
                                                                                                10
 Université d’Alger    |     Faculty of Economics and Management           |      14 Mai 2005

    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                         Germany
(including the United States)
             Area                      Area                          Area
                           Pop.                     Pop.                             Pop.
Year         (mill.                    (mill.                        (mill.
                           (mill.)                  (mill.)                          (mill.)
             sq.m.                     sq.m.                         sq.m.
1815-30      ?             126.4       0.02         0.5               -               -
1860         2.5           145.1       0.2          3.4              -               -
1880         7.7           267.9       0.7          7.5              -               -
1899         9.3           309.0       3.7          56.4             1.0             14.7




                                                 (V. Lenin, Op. Cit, A. Supien [geographer], 1914)
                                                                                               11
Université d’Alger   |    Faculty of Economics and Management     |     14 Mai 2005
     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   |   Faculty of Economics and Management   |       14 Mai 2005




                                                                   M. Castells, 2001
                                                                                       13
Université d’Alger   |   Faculty of Economics and Management   |       14 Mai 2005




                                                                   M. Castells, 2001
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Université d’Alger   |   Faculty of Economics and Management   |       14 Mai 2005




                                                                   M. Castells, 2001
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Université d’Alger   |   Faculty of Economics and Management   |       14 Mai 2005




                                                                   M. Castells, 2001
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Université d’Alger   |   Faculty of Economics and Management   |       14 Mai 2005




                                                                   M. Castells, 2001
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Université d’Alger   |   Faculty of Economics and Management   |      14 Mai 2005




                                                                   (M.Castelles, 2001)
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Université d’Alger   |   Faculty of Economics and Management   |      14 Mai 2005




                                                                   (J. Beninger, 1986)
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Université d’Alger   |   Faculty of Economics and Management   |     14 Mai 2005




                                                                   (D. Bell, 1999)

                                                                                     20
Université d’Alger                    |   Faculty of Economics and Management   |   14 Mai 2005

   “Modern values – Industrial Age”




                                                                                    NB USA




                                                                                    Inglehart
                                                                                    & Baker, 2000)
                                      “Post-modern values – Information Age”                   21
Université d’Alger   |   Faculty of Economics and Management   |   14 Mai 2005




   Today‟s lecture:

       I.   What is “The Information Revolution” ?
       II.  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‟)




                                                                             22
Université d’Alger   |    Faculty of Economics and Management     |     14 Mai 2005




   Today‟s lecture:

       I.   What is “The Information Revolution” ?
       II.  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‟)


       ------------------------
       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     |   Faculty of Economics and Management   |   14 Mai 2005


   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      |   Faculty of Economics and Management   |    14 Mai 2005


   The Information Age and Globalization:
        I.      What is the Information Revolution (IR)?
             a.   Its place in history

   Forms of social production -- Recorded history
   A. Slave (e.g., European ancient empires of Rome, Greece, …)
   B. 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: ??

                                                                                 25
Université d’Alger    |    Faculty of Economics and Management         |     14 Mai 2005
  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


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Université d’Alger         |     Faculty of Economics and Management                |       14 Mai 2005
   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.
                                                                                                           27
Université d’Alger   |   Faculty of Economics and Management     |    14 Mai 2005
  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:




                                                                                28
Université d’Alger   |   Faculty of Economics and Management    |     14 Mai 2005
  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   |   Faculty of Economics and Management     |     14 Mai 2005
  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   |    Faculty of Economics and Management      |    14 Mai 2005
  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   |    Faculty of Economics and Management      |     14 Mai 2005
  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    |    Faculty of Economics and Management      |     14 Mai 2005
  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)
          - 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    |    Faculty of Economics and Management      |     14 Mai 2005
  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)
                 - 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     |    Faculty of Economics and Management        |     14 Mai 2005
  C.    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   |    Faculty of Economics and Management     |     14 Mai 2005
  C.    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   |   Faculty of Economics and Management   |   14 Mai 2005




   Today‟s lecture:

       I.   What is “The Information Revolution” ?
       II.  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‟)




                                                                             37
Université d’Alger    |    Faculty of Economics and Management        |   14 Mai 2005




   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, …


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