Castells’ Network Society: Shaping Modern Economies
Castells’ Post-Industrial Economy Definition
Manuel Castells defines the “post-industrial” economy as synonymous with the Information/Technology Age. With the rise of new technologies, we find ourselves in a new economy characterized by three fundamental features:
- Informational: Based on information generation, processing, and transmission.
- Global: Activities are organized on a planetary scale.
- Networked: Productivity and competition occur within a global network of interaction.
When combined, Castells establishes the idea of a new type of social structure known as the ‘Network Society’. This new-aged economy, along with the contemporary capitalism resulting from it, continues to change the economic landscape of America and the rest of the world.
The Information Age Revolution
The age of information revolutionized the economic structure of today’s world. Technology developed the ability to create highly integrated systems, which continue to push the boundaries of business and labor. Through the internet, information is becoming increasingly available at the palm of our hands. On a daily basis, more and more companies are resorting to online services as methods of operation. The world continues to rapidly transform into a complex, technological era through which industries are run. Businesses are no longer geographically confined to a single building or office but are now extended through a whole new type of network reaching across continents. The ‘Network Society’ developed from this new age paved the way for new methods of labor and capitalism.
Labor Transformation in the Network Society
The “post-industrial” economy has changed how labor is performed. A network society transforms work into a flexible form. Online technologies reduce the need for physical labor in traditional settings like factories. Occupational mobility is becoming increasingly popular. Workers now have the ability to work from home or anywhere their laptops can connect to the network. Services are now entirely available over the web and can be extended to customers around the world.
Capitalism and Global Reach
The capability of extending business to every corner of the globe, along with a reduced need for physical labor, aligns perfectly with the mindset of capitalism. Businesses can now produce and share a product with more efficiency while obtaining a maximum amount of profit. As time progresses, the world will delve deeper into this technological age. Network societies will increasingly dominate the economy, and labor will continue to be transformed.
New Capital Forms and Social Alienation
The “post-industrial” economy also allows different forms of capital to develop. Drawing on the ideas of Pierre Bourdieu, social capital can be developed by being part of social groups and relationships. A network society fosters social capital as more people connect online, becoming part of online groups and forming relationships through these platforms. As people become members of certain groups, cultural capital also increases; individuals can be seen as having a special form of capital that seemingly raises their social status.
While this may be positive for numerous groups, those unable to sustain a technological lifestyle and adapt to the economic change will inevitably be alienated from the rest of society. Those who do not evolve with technological means will struggle to survive. Labor may become feudal, resulting in obtaining just enough means for survival. This alienates individuals as they can no longer relate to others or even their own selves. “Post-industrial” economies will prove beneficial to some but alienating to others in all aspects.