NOTES IN CONTEMPORARY WORLD
Relevance of this course
1. Studying the outside world is a
cure to parochialism or an
outlook that is limited to one’s
immediate community.
2. It can teach you more about
yourself.
3. You will be interacting with it.
LESSON 1: WHAT IS GLOBALIZATION?
The story of Gio, Latif and the Laksa
 Gio – a second year international
affairs student in a University in
Cebu City.
 Latif – from a Muslim University in
Kuala Lumpur
 International Model UN
competition in Sydney Australia –
competition about international
politics.
 Hawker centers – food park
 Nasi lemak and laksa – best
Malaysia cuisine
 Laksa – a rice noodle soup in
spicy coconut curry sauce.
 Flat whites – an expresso drink
similar to latte.
 Still connected to other through
Facebook and Instagram.
 Gio moved to Singapore as an
OFW.
 Orchard Road – Singapore’s main
commercial road.
TWO PREMISES:
1. Globalization is a complex
phenomenon that occurs at
multiple levels.
2. It is uneven process that affects
people differently.
GLOBALIZATION
 primarily an economic process.
5 Characteristics of Globalization
1. The expansion and intensification
of social relations and
consciousness across world-time
and across world-space. –
Manfred Steger
2. Globalization involves the
creation of new social networks
and the multiplication of existing
connections.
3. Expansion, stretching and
acceleration of these networks.
4. Intensification and acceleration
of social exchanges and
activities.
5. Globalization processes do not
occur merely at an objective,
material level but also involve the
subjective plane of human
consciousness.
GLOBALISM
 Is a widespread belief among
powerful people that the global
integration of economic markets
is beneficial for everyone.
GLOBALITY
 is a social condition
characterized by globalization,
political, cultural, environmental
interconnectedness, borderless
irrelevant.
 Manifestation – value of
individualism and competition.
 Existence of economic system of
private property.
 Communal and Cooperative –
social relations which is less
capitalistic.
Hyperglobalists
 Pro-globalist
Nationalist and Activist
 Anti-globalist
Kinds of globalization according to
Arjun Apparudai
1. Ethnoscape – global movement
of people
2. Mediascape – flow of culture
3. Technoscape – circulation of
mechanical goods and software
4. Financescape – global
circulation of money
5. Ideoscape – political ideas move
around
LESSON 2: THE GLOBALIZATION OF
WORLD ECONOMIC
Economic Globalization
 The International Monetary Fund
(IMF) defines it as a historical
process representing the result of
human innovation and
technological process.
 According to IMF, the value of
trade (goods and services) as a
percentage of world GDP
increased from 42.1 percent in
1980 and 62.1 percent in 2007.
 Increased trade means that
investments are moving all over
the world at faster speeds.
 According to the United Nations
Conference on Trade
Development (UNCTAD), the
amount of foreign direct
investments flowing across the
world was US$ 57 billion in 1982.
By 2015, that number was $1.76
billion.
International Trading Systems
 SILK ROAD
 Oldest known international
trade route
 A network of pathways
that spanned China to
Middle East and Europe.
 Traders used the Silk Road
regularly from 130 BCE
when the Chinese
 Han Dynasty open trade
to the West until 1453 BCE
when the Ottoman Empire
closed it.
 Silk Road was
international, it was not
truly “global” because it
had no ocean routes.
 According to historians DENNIS O.
FYLNN and ARTURO GIRALDEZ
“the age of globalization began
when all important populated
continents began to exchange
products continuously both with
each other directly and indirectly
via other continents and in value
sufficient to generate crucial
impacts on all trading partners”
 1571 – establishment of the
galleon trade that connected
Manila in the PH and Acapulco in
Mexico.
 Mercantilism Era
 Countries primarily in
Europe, competed with
one another to sell more
goods as means to boost
their country’s income
(called monetary reserves)
 To defend their products
from competitors who sold
goods more cheaply,
imposed high tariffs,
 forbade colonies to trade
with other nations.
The Bretton Woods System
 A system of global trade
with multiple restrictions
 GOLD STANDARD
 A more open trade system
that emerged in 1867
 Its goal was to create a
common system that
would allow more efficient
trade.
 Established a common
basis for currency prices
and a fixed exchange rate
system – all based on the
value of gold
 During WW1, when
ocountries depleted their
gold reserves to fun their
armies, many were forced
to abandon the gold
standard.
 Great Depression – caused
by the gold standard and
was the worst and longest
recession ever
experienced by the
Western World.
 Economic historian Barry
Eichengreen argues that
the recovery of the US
really began when having
abandoned the gold
standard.
 At the height of WW2,
other major industrialized
countries followed suit.
 Fiat currencies –
currencies whose value is
determined by their cost
relative to other
currencies.
 After the two world wars, world
leaders sought to create a global
economic system that would
ensure a longer-lasting global
peace.
 Was inaugurated in 1944 to
prevent the catastrophes of the
early decades of the century
from reoccurring and affecting
international ties.
 It was largely influenced by the
ideas of British economist John
Maynard Keynes who believed
that economic crises occur not
when a country does not have
enough money, but when money
is not being spent and not
moving.
 Oil Embargo – affected the
Western economies that were
reliant on oil.
 The stock markets crashed in
1973-1974 after US stopped
linking the dollar to gold,
effectively ending the Bretton
Woods System.
 Stagflation – a phenomenon in
which a decline in economic
growth and employment
(stagnation) takes place along
side a sharp increase in prices
(inflation)
 Economists such as Friedrich
Hayek and Milton Friedmen
argued that government
intervention in economies distort
the proper functioning of the
market.
 Neoliberalism – a new form of
economic thinking and became
the codified strategy of US
 treasury department world bank Neoliberalism and Its Discontents
and IMF.
 The high point of Global
 World Trade Organization (WTO) –
Keynesianism came in the mid-
a new organization founded in
1940’s to the early 1970’s.
1995 to continue the tariff
Governments poured money into
reduction under the GATT.
their economies, allowing people
 Washington Consensus –
to purchase more goods and
dominated global economic
increase demand for these
policies, it advocates pushed for
products. As demand increased,
minimal government spending to
so did the prices of these goods.
reduce government debt.
 The theory went that, as prices
 US Pres. Ronald Reagan and
increased, companies would
British Prime Minister Margaret
earn more, and would have
Thatcher – justified their reduction
more money to hire workers.
in government spending by
 Keynesian Economists believed
comparing national economies
that all tis was a necessary trade-
to households.
off for economic development.
 Global Keynesianism – a system
 In early 1970s, the prices of oil
of the active role of governments
rose sharply as a result of the
in managing spending served as
Organization of Arab Petroleum
the anchor.
Exporting Countries (OAPEC)
 TWO FINANCIAL INSTITUTIONS
imposition of an embargo in
 International Bank for
response of the decision of US
Reconstruction and
and other countries to resupply
Development (IBRD or
the Israel military.
world bank) – too be
responsible for funding
postwar reconstruction
projects.
 International Monetary
Fund (IMF) – which was to
be the global lender of last
resort to prevent individual
countries from spiraling
into credit crises.
 After Bretton Woods, various
countries also committed
themselves to further global
economic integration through
the General Agreement on Tariffs
and Trade (GATT) in 1947. Its main
purpose was to reduce tariffs and
other hindrances to free trade.