Book Outline: Network Power
Outline:
Network Power, The Social Dynamics of Globalization
By David Singh Grewal
Copyright 2008, ISBN 978-0-300-11240-5.
Published by Caravan, www.caravanbooks.org, Yale University Press
This outline created 9/17/08, Brian Jacobs
Note: In outlines, I try to just convey what the author said and minimize my personal bias, neither agreeing nor disagreeing with what they say.
Intro:
This book is about how one standard (out of several available) can become the dominant one not because it is a great standard, but because everyone is using it.
Chapter 1, Defining Network Power
Theory
• Ways we organize our social lives: Sovereignty versus “relations of sociability”.
Focal Points: These are common reference points that someone might fall back on in the absence of prior agreement. Example: Guessing where and when to meet a friend if no chance to arrange it. Answer: Grand Central Station at noon if in New York.
Negative rights versus positive rights
• Addresses situations of the individual as related to government, doesn’t address situations between individuals.
• Negative rights: Government stays out of your way (Ex: Freedom of speech)
• Positive rights: Government actively provides a service (free public education, police & fire service)
Globalization (process of)
• First, geographic compression of space happens (invention of plane travel, telecommunications).
• Second, then comes social coordination (converging on standards of cooperation, such as language or units of measure
Types of standards
• Mediating (languages, units of measure), self regulating
• Membership based (The WTO, UN), require regulation
Factors in deciding to switching “networks”:
networks are groups that use a common standard. Example: Switching between English and metric units.
• Switching costs (buy new measuring equipment that use metric units)
• Opportunity costs (people who use English less likely to do business with you)
Reasons to switch networks:
• Intrinsic reasons – Something about the standard is better (easy to use, efficient) and makes you want to switch separate from interacting with others.
• Extrinsic reasons – Switch not because the standard is so great, but because everyone is using it.
Stages of network growth towards dominance
• Threshold of visibility
• Threshold of inevitability
Chapter 2, The Power of Sociability
Globalization: Social relations are becoming global, sovereignty is not. Source of conflict.
“Older” classification of networks: Agency dominated versus structure dominated
New classification (the author’s): Structuralism
Standards as public goods
Rival goods – not everyone can eat the one sandwich
Anti-rival goods – More value as more people “consume” it, such as the TCP/IP standard that underlies the Internet
There are two urges in natural tension:
• The urge towards unification
• The urge towards parochialism
A “Hobson’s Choice”: Choose an option from a “set” of one
Domination:
• By virtue of authority
• By “a constellation of interests”
Chapter 3, English & Gold
An example
Discusses the English language as gaining momentum towards becoming the world’s language. Other languages are spoken by a greater number of people (Chinese). Discusses why the world would nevertheless settle on English due to network power.
Discusses the Gold Standard.
Chapter 4, Power & Choice in Networks
Theory
4 Ways to get others to do things for you
• Activation of commitments
• Persuasion
• Inducement
• Coersion
3 views of power
• One dimensional – direct force (vote on something)
• Two dimensional – the power of nondecision (“table the motion”)
• Three dimensional – Nobody even brings the issue up
Concerns regarding coercion
Distribution concerns (of benefits or costs)
Identity concerns
Counterfactual reasoning = unrealized possibilities/futures. “What could have been”
Chapter 5: Evaluating Network Power
Theory
Social recognition is important in the sense of identity
Characteristics that determine the level of Network Power of a standard
• Compatibility
• Availability
• Malleability
Chapter 6: Countering Network Power
Theory
Social Network Analysis is discussed.
Network Characteristics
• Size
• Type of ties
o Reciprocal or one way
o Strong or weak
• Density of ties (# of connections between nodes)
Is it a hub network?
Is it a chain network?
In a hub network, central nodes have more influence
Basically, author says that only the government can counter network power. It must alter the compatibility/availability/malleability to have affect.
Chapter 7, Network Power in Technology
Author recommends that techno anarchists embrace politics, not abandon it.
Every new mode of production (industrial revolution, IT revolution) has a period of unusual freedom, followed by dominance by powerful private interests. This is why we must participate in politics, not disengage.
Chapter 8, Global Trade & Network Power
Example chapter
The WTO’s history, emergence, it’s network power
Chapter 9, Global Neoliberalism
Case Study
Neoliberals: Dislike government, but love private property (right wing anarchism)
Techno utopians: dislike government, but also dislike private property (left wing anarchism)
Neoliberalism: No budget deficits, no using monetary policy in ways that cause inflation, cutting marginal tax rates, let markets determine interest rates, exchange rates managd to encourage exports, equal treatment of foreign & domestic firms, deregulation, strong property rights protection.
Neoliberalism has been shown not to have network power, spreads through political action
The East Asia countries & China rejected neoliberalism yet still grew, which is an argument against neoliberalism
Capitalists hate 1) nationalization, 2) Regulation
OECD: Organization for Economic Cooperation & Development.
Members are rich, capital exporting countries.
MAI (Multilateral Agreement on Investment). An OECD initiative. 1998? Considered a failure, as no agreement has been reached and talks have ceased. It was created through the OECD rather than WTO because it was intended as a way for all the lending countries to become a monopoly against borrowing countries. If the initiative was brought up in the WTO, the developing (borrowing) countries could have blocked it.
Chapter 10, Network Power & Cultural Convergence
Case Study
Can network power explain cultural convergance? Author says “hard to say”, “not really”.
The 4 types of global culture, per Mr. Berger’s theories:
• Business culture (“Davos” culture)
• Faculty Club Culture (also NGO’s)
• McWorld (Recognition plays a part)
• Missionary Evangelical Protestantism