“ates CONTEMPORARY WORLD LISANDRO E. CLAUDIO PATRICIO N. ABINALES Ee C & E Publishing, Inc.The Contempo it © 2018 by C & E Publishing, Inc., Lisandro Claudio, and Patricio Abinales ALL RIGHTS RESERVED. No part of this publication m: be reproduced, stored in a retrieval system, or transmitte in any form, or by any means—electronic, mechanic photocopying, recording, or otherwise—without the pri written permission of the publisher. Cataloguing-in-Publication Data IZ. Claudio, Lisandro E. a ‘The contemporary world / Lisandro E. Claudio and 2018 Patricio N. Abinales.—Quezon City: C & E Publishing, Inc., ©2018. xii, 182 p.: ill. ; cm. Includes bibliography and index. ISBN: 978-971-98-0862-6 1. Globalization. 2. World Economics. I. Abinales, Patricio N. II. Title. Book and Cover Design: Lynzel S. NaguitUnit 1 1HON 1 sublication maj LESSON 2 or transmittes ic, mechanical thout the priol E. Claudio and & E Publishing, LESSON 3 cs. I, Abinales, Contents An Introductory Note to the Student ix The Relevance of this Course x This Book's Approach xi The Structures of Globalization 1 What is Globalization? 2 Global Experiences 5 Some Description 6 Globalization: A Working Definition 7 Conclusion: Globalization from the Ground Up 9 The Globalization of World Economics 12 International Trading Systems 13 The Bretton Woods System 16 Neoliberalism and Its Discontents 17 The Global Financial Crisis and the Challenge toNeoliberalism 19 Economic Globalization Today 22 Conclusion 24 A History of Global Politics: Creating an International Order 26 The Attributes of Today's Global System = 27 The Interstate System 30 Internationalism 31 Conclusion 37LESSON 4 LESSON 5 Unit 2 LESSON 6 LESSON 7 LESSON 8 The United Nations and Contempor; Unit 3 Global Governance 39 What is an International Organization? 40 The United Nations 42 Challenges of the United Nations 45 Conclusion 46 LESSON 9 A World of Regions 50 Countries, Regions, and Globalization 51 Non-State Regionalism 53 Contemporary Challenges to Regionalism 56 Conclusion 58 LESSON 10 A World of Ideas: Cultures of Globalization 61 The Globalization of Religion 62 Realities 65 Religion for and against Globalization 66 Conclusion 69 LESSON 11 Media and Globalization 72 Media and Its Functions 73 The Global Village and Cultural Imperialism 75 Critiques of Cultural Imperialism 77 Social Media and the Creation of Cyber Ghettoes 78 Conclusion 81 Mov and Globz The“Pe It's the Womer The Fer Popula Conclu Globs What i: Benefit Cou The Pre Integre Envi and | The W Man-n “Catch Climat Comb; Conch Conclusion: The The Global City 83 Endnotes 135 Why Study Global Cities? 34 Defining the Global City 85 Bibliography 1 Indicators for Globality 86 Index 172 The Challenges of Global Cities 89 The Global City and the Poor 91 Conclusion 93 About the Authtemporal {jnit3 © Movement Lg and Sustainability 95 iwsson9 Global Demography 96 The “Perils” of Overpopulation 98 It’s the Economy, Not the Babies! 101 Women and Reproductive Rights 102 The Feminist Perspective 104 Population Growth and Food Security 105 m 56 Conclusion 107 twason10 Global Migration 109 What is Migration? 109 Benefits and Detriments for the Sending 61 Countries 112 The Problem of Human Trafficking 114 62 Integration 115 \wsson11 Environmental Crisis and Sustainable Development 119 The World's Leading Environmental Problems 120 Man-made Pollution 122 "Catching Up" 125 m 75 Climate Change 127 Combating Global Warming 128 Conclusion 130 56, Conclusion: The Global Filipino 132 Endnotes 135 Bibliography 155 Index 172 About the AuthorsAn Introductory Note to the Student Why do you need to study the world? At first glance, the world, as a concept, is abstract. After all, your daily experiences uve considered interactions with your country. When you read the news, you read about the Philippines. When you engage in an official transaction like paying taxes, you deal with the Philippine government. Almost all of your classmates and teachers are Hilipino. However, you only need to step back a little bit to see that the World “out there” is already here. For example, you likely have felatives who are overseas Filipino workers (OFWs). Every time these relatives visit or send something home, they are bringing part of the world with them. Even if you have not traveled outside the Philippines, you have likely heard stories about foreign countries from these family members. Some relatives might have {old you about the wonders of Rome. Others may have shown you pictures of San Francisco's Golden Gate Bridge. Others may have dlescribed the lights and towering buildings of Shinjuku. Needless to say, the media and the internet are also your windows to the contemporary world. You watch American movies and can probably sing at least one K-pop song. If a major political event occurs, you don’t even need to go to CNN.com to find out more details; friends are already posting articles on Facebook. Finally, your consumption habits are global. You have dined in a McDonald’s, ridden in a Japanese car, maybe owned a Korean mobile phone, and eaten Australian beef. You are already a citizen of the world whether you are aware of \\ or not. Just by living your life, you automatically think about the contemporary world. This course will be your guide.The Relevance of this Course As the semester progresses, we expect you to realize the relevance of the material gradually. The succeeding lessons will introduce you to the major themes in the study of the world while providing opportunities for you to connect this knowledge with your experiences as a Filipino student. At the outset, though, why study this course? Why is it required for all students in higher education? First, studying the outside world is a cure to parochialism or an outlook that is limited to one’s immediate community. A Person who is concerned only with his/her family, village, or even country is parochial. The parochial person is, thus, close-minded. By teaching you about the world, this course aims to stretch the limits of your imagination and outlook. We will share with you unfamiliar ideas and cultures that may spark new interests and concerns. Not everything in this book will excite you, and that is fine. However, we hope that, at the end of the semester, you would have discovered new intellectual interests that you will continue to pursue. We also wish for you to explore the places, peoples, ideas, and cultures that you care about and value. This expansion of one’s ethical horizons, as you will see, is the very core of what it means to be a global citizen. Second, it is important to study the world because it can teach you more about yourself. Knowing about other countries allows you to compare your society with others. The experiences of communities outside the Philippines may provide solutions to many of the country’s current problems. They may also provide warnings about what not to do. Everyone, for example, desires economic growth. Isn’t it beneficial if policymakers know what economic models and policies have worked for other countries and what have not? Philippine national hero Jose Rizal said that anyone who has learned about the world will be haunted by the “ghost of comparisons.” Once you know about other societies, he says, you will not be able to look at your own in the same way: You will start comparing and asking various questions. This drive to compare will happen even when } {hat suddenly appears. Lastly, you need te Jolt to become OFWS. | More and more Filipino af you who plan to we this course can serve a who choose to remait phenomenon of globali sompanies operating i growth of call centers a industry as a whole. Du larger trade of goods jnterdependent. Filipin interdependence. You « 4 well study it. This Book’s App This book will not the world. Such an app any good world alma: countries. Instead, thi jnnues. The goal is not hut also to expose you that “out there.” Centr jlobalization—the dee ideas, economies, cult s concept further. 1 ying globalization yy, on in our world As the study of § attention deliberately core courses of the rlize the ons will Id while ge with gh, why | higher hialism nity. A or even ninded, tch the ith you sts and that is would inue to , ideas, of one’s means it can intries iences ons to rovide lesires what sand nyone ost of 5, You [start apare will happen even when you least expect its the urge is like a ghost {hat suddenly appears. Lustly, you need to study the world because you will be Jnleracting with it. In 2009, an average of 4,018 Filipinos per day Jeli to become OFWs. In 2015, that number increased to 6,092. More and more Filipinos are living and working abroad. For those of you who plan to work in another country after graduation, {ils course can serve as an orientation. Nevertheless, even those who choose to remain in the Philippines must confront the jlenomenon of globalization. Many of you will work for foreign tompanies operating in the country, especially because of the jyow'th of call centers and the busines process outsourcing (BPO) jndustry as a whole. Due to the internet, cheaper travel costs, and larger trade of goods and services, the world has grown more {nterdependent. Filipinos are increasingly becoming aware of this interdependence. You cannot avoid globalization so you might at a well study it. This Book’s Approach [his book will not take you on a country-per-country tour of the world, Such an approach is impractical and tedious. Moreover, Any good world almanac can give you quick overviews of these countries, Instead, this book will focus on themes, problems, and {sues. The goal is not simply to tell you about what is “out there,” jnut also to expose you to the ideas that allow you to make sense of that “out there.” Central to the study of the world is the concept of ylobalization—the deepening global interconnectedness of places, ideas, economies, cultures, and people. The first lesson will discuss this concept further. However, for now, it is sufficient to say that studying globalization allows one to step back and ask: “What is yoing on in our world today?” As the study of globalization progresses, we will take your attention deliberately away from the Philippines. Most of the core courses of the new general education (GE) curriculum ask xiquestions about yourself in a national context, You study Rizal; examine primary readings in Philippine history; and, in the course Understanding the Self, a section leads you to reflect on national identity. These courses are all necessary; you should reflect about yourself and your country. This course, however, will challenge you to think beyond your country and ask what it means to be a citizen of the world. Thus, most of the examples and case studies will be about peoples and places outside of the Philippines, Nevertheless, we acknowledge the need to connect the study of globalization to local experiences. For this reason, we will use the boxed text with the label “Localizing the Material” to provide examples that are relatable to the Filipino reader. As for classroom activities, it will be up to your teacher to integrate, conduct, and facilitate them. After each lesson, however, we provide guide questions which you may wish to answer before the class. As you answer these questions either on a notebook or just in your own mind, please do not lose sight of the main question of the course: What does it mean to be a citizen of the world? The course will be challenging. Much of the materials you will find are new and unfamiliar. Despite this, we hope that you will enjoy reading this book and taking this course. This may be one of the few times in your life as a college student when you are explicitly challenged to transcend the borders of your nation, your countrymen, and ultimately, your imagination. ~ Lisandro E. Claudio Patricio N. Abinalestudy Rizal; 1 the course on national flect about | challenge ans to bea ase studies hilippines. e study of re will use to provide teacher to , however, wer before notebook the main zen of the rials you > that you is may be n you are ion, your Claudio Abinales The Structures of Globalization This unit will introduce you to the various drivers of the globalization process, with specific focus on economics and politics. Although it emphasizes that you experience globalization on an “everyday” level, you must also realize that there are big institutions that create large-scale changes. This unit will first trace the emergence of these institutions historically. It will then move on to explain how they affect the countries and people today. The major learning outcomes of this unit are to: + analyze the various contemporary drivers of globalization; and + describe the emergence of global economic and political systems.©) Learning Outcomes ‘At the end of this lesson, you should be able to: |. agree on a working definition of globalization for the course; 2. differentiate the competing conceptions of globalization; and 3. _ narrate a personal experience of globalization, A Story: Gio, Latif, and the Laksa When Gio was a second-year internation: a university in Cebu City, he obtained fu team participating in an internati in Sydney, plenty of n the Malaysi al affairs student in nding to join the school ional Model UN competition Australia. At the height of the competition, Gio made ew friends and became Particularly close to Latif from ian team. The two first started talking when Latif asked Gio where he was from, Upon discovering that the Gio was from the Philippines, Latif lit up and declared that he was a big fan of Filipino actors Jericho Rosales and Kristine Hermosa. Gio was pleasantly surprised to learn that Latif had seen every episode of the ABS-CBN telenovela Pangako sa ‘Yo ("The Promise”). The show had aired on Malaysian TV a few years back, and its two stars had developed a modest following, Ashamed that he did not know as much about Malaysia as Latif knew about the Philippines, Gio asked Latif what his country was like. Latif, he discovered, was from a Muslim university in Kuala Lumpur. Gio asked him what he liked best about living in *KL," and Latif immediately mentioned the food. Latif explained that in Kuala Lumpur, one can find Chinese, Indian, and Malay cuisines. He told Gio that this assortment of foodways was the result of How the British reo fives, The British d who were the orig te work in the rub help manage the k core of a potential groups were identi According to | these cuisines whic ‘acioss the nation’s in outdoor food p Malaysia, from nasi Gio interrupte ashamed at his lac is and how itis pre The next day, blocks away from: Malaysian food w this, Latif explaine more and more Malaysian restaura fot only to these as well, whose ct diverse. Gio finally ha @ spicy coconut ¢ ike most Filipino deference to his f enjoying the hot ¢ After the me ordered “flat whi Usually served in what flat whites v both Kuala Lump:What is Globalization? | 3 a oe ee jiow the British reorganized Malaysian society during the colonial Jinves. The British did little to change the way of life of the Malays who were the original residents, but brought in Chinese laborers fo work in the rubber plantations and tin mines, and Indians to Hielp manage the bureaucracy and serve as the initial professional ‘ore of a potential middle class. One of the ways that these ethnic «groups were identified was through their foodways. According to Latif, Malaysia eventually became famous for {hese cuisines which can be found in the various “hawker centers” ‘acioas the nation’s cities and towns. These food stands are located in outdoor food parks where locals and tourists taste the best of Malaysia, from nasi lemak to laksa. Glo interrupted Latif and asked, “What is laksa?” He felt more amed at his lack of knowledge. “Ahh. ..let me show you what it “ Js and how it is prepared!” replied Latif. ue The next day, Latif 100k Gio to @ Malaysian restaurant a few eitont blocks away from the university Gio was surprised to discover that pee. Malaysian food was readily available in Sydney. Having noticed if from this, Latif explained to lis Filipino friend that, over the years, as ‘ashe more and more Malaysian students moved to Sydney to study, to art ay, nd Id ler What is Globalization? | 5 Ahawker center in Singepore One Saturday, while Gio was checking his Facebook feed along the very busy Orchard Road—Singapore’s main commercial foad—he noticed that Latif had just posted something 5 minutes earlier, It was a picture from Orchard Road. Surprised but also excited, Gio sent Latif a private message. Latif replied immediately | aying that he too had moved to Singapore and was, at that moment, standing in front a department store just a few blocks \way from where Gio was. The two friends met up, and after a long hug and quick questions as to what each was up to, they ducked into a café and renewed their international friendship...by | ordering a pair of flat whites. Global Experiences Gio and Latif’s story is fictional but very plausible since it is, in fact, based on the real-life experience of one of the authors. It was through such friendships that one was able to appreciate the meaning and impact of globalization. We begin our definition of globalization with this narrative to illustrate how concrete the phenomenon is. The story shows how globalization operates at multiple, intersecting levels. The spread of Filipino TV into Malaysia suggests how fast this popular culture has proliferated and criss-crossed all over Asia.6 | The Structures of Globalization The Model UN activity that Gio and Latif Participated in ig an international competition about international politics. Gio met Latif (a Malaysian involved in the model UN) in Sydney, a global city that derives its wealth and influence from the global capital that flows through it. Sydney is also a metropolis of families of international immigrants or foreigners working in the industries that also sell their Products abroad. After the two had gone back to their home countries, Gio and Latif kept in touch through Facebook, a global social networking site that provides instantaneous communication across countries and continents, They preserved their friendship online and then rekindled this face-to-face in Singapore, another hub for global commerce, with 40 percent of the population being classified as “foreign talents.” What other hints of globalization did you find in the story? Some Description Our discussion should begin with this intuitive sense that something is happening, and it is not affecting everyone in the same way. Gio’s story is a very privileged way of experiencing global flows, but for other people, the shrinking of the world may not be as exciting and edifying. For example, it is very common for young women in developing countries to be recruited in the internet as “mail-order brides” for foreign men living in other countries. After being promised a good life once married to a kind husband in a rich city, they end up becoming sexual and domestic servants in foreign lands. Some were even sold off by their “husbands” to gangs which run Prostitute rings in these cities. Like Gio, they too have experienced the shrinking of the world, albeit negatively. Governments that decide to welcome the foreign investments on the belief that they provide jobs and capital for the country offer public lands as factory or industrial sites. In the Process, poor People living in these lands, also called “urban poor communities,” are being evicted by the government. The irony is that these people {yyeibly removed fi ly foreign compar and then told tha {vom their relocat jninimum-wage w Because differ af ways, it is dec lobalization goo dliscussion begins complex phenome 4n uneven process Globalizatio Most accoun process, When a "ylobalization,” i markets to a wic trade. When acti of the 1990s, the facilitated and p Trade Organizat: Globalizatio who criticize un organizations. I economic globa political activist broader terms. consider multig an interdiscipli general educati this one. The best si by Manfred St and intensificain is . Gio ley, a lobal is of n the » had ouch vides ents. this with that the cing may non the her ind stic reir ike eit nts Dor 26” ple What is Globalization? | 7 forcibly removed from their “slums” are also the labor force sought by foreign companies. They had to be kicked out of their homes, and then told that they could take an hour or two of bus travel from their relocated communities back to the “old home” for minimum-wage work. Because different people encounter globalization in a variety of ways, it is deemed useful to ask simple questions like: “Is globalization good or bad? Is it beneficial or detrimental?” The discussion begins with two premises. First, globalization is a complex phenomenon that occurs at multiple levels. Second, it is an uneven process that affects people differently. Globalization: A Working Definition Most accounts view globalization as primarily an economic process. When a newspaper reports that nationalists are resisting “globalization,” it usually refers to the integration of the national markets to a wider global market signified by the increased free trade. When activists refer to the “anti-globalization” movement of the 1990s, they mean resisting th trade deals among countries facilitated and promoted by global organizations like the World Trade Organization. Globalization scholars do not necessarily disagree with people who criticize unfair international trade deals or global economic organizations. In fact, many are sympathetic to the critique of economic globalization. Academics differ from journalists and political activists, however, because they see globalization in much broader terms. They view the process through various lenses that consider multiple theories and perspectives. Academics call this an interdisciplinary approach, and it is this approach used by the general education (GE) courses thet you will be taking alongside this one. The best scholarly description of globalization is provided by Manfred Steger who described the process as “the expansion and intensification of social relations and consciousness across8 | The Structures of Globalization world-time and across world-space.”! Expansion refers to “both the creation of new social networks and the multiplication of existing connections that cut across traditional political, economic, cultural, and geographic boundaries.”® These various connections occur at different levels. Social media, for example, establish new global connections between people, while international groups of non-governmental organizations (NGOs) are networks that connect a more specific group—social workers and activists— from different corners of the globe. In the story, Gio was able to join a Model UN competition because his university was part of an international network. Intensification refers to the expansion, stretching, and acceleration of these networks.’ Not only are global connections multiplying, but they are also becoming more closely-knit and expanding their reach. For example, there has always been a strong financial market connecting London and New York. With the advent of electronic trading, however, the volume of that trade increases exponentially, since traders can now trade more at higher speeds. The connection is thus accelerating. Apart from this acceleration, however, as the world becomes more financially integrated, the intensified trading network between London and New York may expand and stretch to cover more and more cities. After China committed itself to the global economy in the 1980s, for example, Shanghai steadily returned to its old role as a major trading post. It is not only in financial matters that you can find these connections. In 2012, when the monsoon rains flooded much of Bangkok, the Honda plant making some of the critical car parts temporarily ceased production. This had a strong negative effect on Honda-USA which relied heavily on the parts being imported from Thailand. Not only was it unable to reach the sales targets it laid out, but the ability of the service centers nationwide to assist Honda owners also suffered. As a result, the Japanese car company’s global profits also fell. The final attribute of this definition relates to the way people perceive time and space. Steger notes that “globalization processes do not occur mer involve the subjec words, people beg place and distance mouse-click away. and get a reply ins their distance as le also exposed one t this greater sense « Steger posits differentiated wit represents the m: intensification of belief among po economic marke freedom and den forwarded in mec realize why it is p For now, wh journalists critic not, criticizing s criticisms are wa “globalization” a cannot simply be been integrated. Conclusion: the Ground All this talk Indeed, it may b because it is so: therefore, found a whole. Instead instead of just orWhat is Globalization? | 9 do not occur merely at an objective, material level but they also involve the subjective plane of human. consciousness.”* In other words, people begin to feel that the world has become a smaller place and distance has collapsed from thousands of miles to just a mouse-click away. One can now e-mail a friend in another country and get a reply instantaneously, and as a result, begins to perceive their distance as less consequential. Cable TV and the internet has also exposed one to news from across the globe, so now, he/she has this greater sense of what is happening in other places. Steger posits that his definition of globalization must be differentiated with an ideology he calls globalism. If globalization represents the many processes that allow for the expansion and intensification of global connections, globalism is a widespread belief among powerful people that the global integration of economic markets is beneficial for everyone, since it spreads freedom and democracy across the world.‘ It is a common belief forwarded in media and policy circles. In the next lesson, you will realize why it is problematic. For now, what is crucial to note is that when activists and journalists criticize “globalization,” they are, more often than not, criticizing some manifestations of globalism. Often, these criticisms are warranted. Nevertheless, it is crucial to insist that “globalization” as a process refers to a larger phenomenon that cannot simply be reduced to the ways in which global markets have been integrated. Conclusion: Globalization from the Ground Up All this talk of large, intersecting processes may be confusing. Indeed, it may be hard to assess globalization or comment on it because it is so diffuse and almost fleeting. Some scholars have, therefore, found it simpler to avoid talking about globalization as a whole. Instead, they want to discuss “multiple globalizations,” instead of just one process.0 | The Structures of Globalization For anthropologist Arjun Appadurai, different kinds of globalization occur on multiple and intersecting dimensions of integration that he calls “scapes.” An “ethnoscape,” for example, refers to the global movement of people, while a “mediascape” is about the flow of culture. A “technoscape” refers to the circulation of mechanical goods and software; a “financescape” denotes the global circulation of money; and an “ideoscape” is the realm where political ideas move around. Although they intersect, these various scapes have differing logics, They are thus distinct windows into the broader phenomenon of globalization, Appadurai’s argument is simple: there are multiple globalizations. Hence, even if one does not agree that globalization can be divided into the five “scapes,” it is hard to deny Appadurai’s central thrust of viewing globalization through various lenses, Depending on what is being globalized, a different dynamic (or dynamics) may emerge. So while it is important to ask “What is globalization?” it is likewise important to ask “What is/are being globalized?” Depending on what is being globalized, the vista and conclusions change, The structure of the lessons that follow will reflect this multidimensional understanding of globalization, Each of the lessons will focus on a particular kind of globalization, Every one of them will be about different networks and connections that are expanding and intensifying in the contemporary world. ‘Treat each lesson not as an end in itself but as window to the broader phenomenon of globalization, é (P) Guide « 1. Howhave 2. Whyisitc 3. Whatisth Deen @% Learn we How ( Go to your in your possessi the “things” inj cell phones, tele student, you m not to mention : Organize y are made in the brands. List the Do the sam should include: In class, ce to determine \ personal needs for Philippine- products are m abroad.s of s of ple, tion otes alm ect, net ion ai’s nic rat ng is ne 1e re What is Globalization? | 11 (P} Guide Questions 1. How have you experienced globalization? 2. Whyisit crucial to emphasize that globalization is uneven? 3. Whats the difference between globalization and globalism? aw Learning Activity: © How Globalized is Your Home? Go to your room and do an inventory of everything you have in your possession. You will find out that the most essential among the “things” in your room are footwear, clothes, computers (if any), cell phones, television (if possible), and maybe a radio. If you are a student, you may also notice books, newspapers, news magazines, not to mention school supplies and equipment. Organize your inventory into two types: first, “things” that are made in the Philippines and second, those that are of foreign brands. List the countries of origin of your foreign-brand items. Do the same thing for the kitchen and the living room. These should include appliances. In class, compare your lists with those of your classmates to determine which countries make the most household and personal needs you and your families have. Make a similar list for Philippine-made stuff. In the process, discuss why certain products are made in the Philippines while others are produced abroad.© Learning Outcomes At the end of this lesson, you should be able to: 1. define economic globalization; 2. _ identify the actors that facilitate economic globalization; 3. _Narrate a short history of global market integration in the twentieth century; and 4. “articulate your stance on global économie integration, Tea ARTE DAE APO TEP ETSY PST The International Monetary Fund (IMF) regards “economic globalization” as a historical process representing the result of human innovation and technological progress. It is characterized by the increasing integration of economies around the world through the movement of goods, services, and capital across borders. These changes are the products of People, organizations, institutions, and technologies.’ As with all other Processes of globalization, there is a qualitative and subjective element to this definition. How does one define “increasing integration”? When is it considered that trade has increased? Is there a particular threshold? Even while the IMF and ordinary people grapple with the difficulty of arriving at precise definitions of globalization, they usually agree that a drastic economic change is occurring throughout the world. According to the IMF, the value of trade (goods and services) as a percentage of world GDP increased from 42.1 percent in 1980 to 62.1 percent in 2007 Increased trade also means that investments are moving all over the world at faster speeds. According to the United Nations Conference on ‘Trade and Developme investments flowing : By 2015, that number dramatic increase in § It has happened not e Apart from the also note the increa: days, supercomputer and sales between di a process called high- and traded are chang or music indicates a “book” can be digite and a music “album” purchase and downlo This lesson aim: about. It will also as who benefits from it International 1 International tra international trade pathways in the anci now the Middle Eas‘ one of the most pro: was silk, which was ! the Middle East as ' used the Silk Road Han dynasty opene: Ottoman Empire clo However, while truly “global” becau American continenThe Globalization of World Economics | 13 ‘Trade and 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 trillion.’ These figures represent a dramatic increase in global trade in the span of just a few decades. It has happened not even after one human lifespan! Apart from the sheer magnitude of commerce, we should also note the increased speed and frequency of trading. These days, supercomputers can execute millions of stock purchases and sales between different cities in a matter of seconds through a process called high-frequency trading. Even the items being sold and traded are changing drastically. Ten years ago, buying books or music indicates acquiring physical items. Today, however, a “book” can be digitally downloaded to be read with an e-reader, and a music “album” refers to the 15 songs on mp3 format you can purchase and download from iTunes. This lesson aims to trace how economic globalization came about. It will also assess this globalization system, and examine who benefits from it and who is left out. International Trading Systems International trading systems are not new. The oldest known international trade route was the Silk Road—a network of pathways in the ancient world that spanned from China to what is now the Middle East and to Europe. It was called as such because one of the most profitable products traded through this network was silk, which was highly prized especially in the area that is now the Middle East as well as in the West (today’s Europe). Traders used the Silk Road regularly from 130 BCE when the Chinese Han dynasty opened trade to the West until 1453 BCE when the Ottoman Empire closed it. However, while the Silk Road was international, it was not truly “global” because it had no ocean routes that could reach the American continent. So when did full economic globalizationt | The Structures of Globalization begin? According to historians Dennis O. Flynn 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 values sufficient to generate crucial impacts on all trading partners.” Flynn and Giraldez trace this back to 1571 with the establishment of the galleon trade that connected Manila in the Philippines and Acapulco in Mexico."' This was the first time that the Americas were directly connected to Asian trading routes. For Filipinos, it is crucial to note that economic globalization began on the country’s shores. The galleon trade was part of the age of mercantilism. From the 16th century to the 18th century, countries, primarily in Europe, competed with one another to sell more goods as a means to boost their country’s income (called monetary reserves later on). To defend their products from competitors who sold goods more cheaply, these regimes (mainly monarchies) imposed high tariffs, forbade colonies to trade with other nations, restricted trade routes, and subsidized its exports. Mercantilism was thus also a system of global trade with multiple restrictions. A more open trade system emerged in 1867 when, following the lead of the United Kingdom, the United States and other European nations adopted the gold standard at an international monetary conference in Paris. Broadly, its goal was to create a common system that would allow for more efficient trade and prevent the isolationism of the mercantilist era. The countries thus established a common basis for currency prices and a fixed exchange rate system—all based on the value of gold. Despite facilitating simpler trade, the gold standard was still a very restrictive system, as it compelled countries to back their currencies with fixed gold reserves. During World War I, when countries depleted their gold reserves to fund their armies, many were forced to abandon the gold standard. Since European countries had low gold reserves, they adopted floating currencies that were no longer redeemable in gold. ye gold standard, though Returning to a the global economi during the 1920s an government coffers recession ever exper ‘gued that it was limited the amount demand and: const money that was equ increase the money | Economic hist recovery of the Unit the gold standard, t spend on reviving t other major industr ‘Though more i until as late as the standard of the ea operates based ont are not backed by | by their cost relat governments to fr increasing or decr they see fit.turo tant — ling the the that For 1on ‘om in ans on). ore ffs, ade ing her nal ea nd ies ed yas ick il es, an ies nomics | 15 The Globalization of Worl 3 joven to be a very restrictive form 0 ye gold standard, though once common, has globalizing tra Returning to a pure standard became more difficult as the global economic crisis called the Great Depression started during the 1920s and extended up to the 1930s, further emptying government coffers. This depression was the worst and longest recession ever experienced by the Western world. Some economists argued that it was largely caused by the gold standard, since it limited the amount of circulating money and, therefore, reduced demand and consumption. If governments could only spend money that was equivalent to gold, its capacity to print money and increase the money supply was severely curtailed. conomic historian Barry Eichengreen argues that the recovery of the United States really began when, having abandoned the gold standard, the US government was able to free up money to spend on reviving the economy.” At the height of World War Il, other major industrialized countries followed suit. Though more indirect versions of the gold standard were used until as late as the 1970s, the world never returned to the gold standard of the early 20th century. Today, the world economy operates based on what are called fiat currencies—currencies that are not backed by precious metals and whose value is determined by their cost relative to other currencies. This system allows governments to freely and actively manage their economies by increasing or decreasing the amount of money in circulation as they see fit.18 | The Structures of Globalization affected the Western economies that were reliant on oil." To make matters worse, the stock markets crashed in 1973- 1974 after the United States stopped linking the dollar to gold, effectively ending the Bretton Woods system." The result was a phenomenon that Keynesian economics could not have predicted—a phenomenon called stagflation, in which a decline in economic growth and employment (stagnation) takes place alongside a sharp increase in prices (inflation). Around this time, a new form of economic thinking was beginning to challenge the Keynesian orthodoxy. Economists such as Friedrich Hayek and Milton Friedman argued that the governments’ practice of pouring money into their economies had caused inflation by increasing demand for goods without necessarily increasing supply. More profoundly, they argued that government intervention in economies distort the proper functioning of the market. Economists like Fricdman used the economic turmoil to challenge the consensus around Keynes's ideas. What emerged was a new form of economic thinking that critics labeled neoliberalism. From the 1980s onward, neoliberalism became the codified strategy of the United States Treasury Department, the World Bank, the IMF, and eventually the World Trade Organization (WTO)—a new organization founded in 1995 to continue the tariff reduction under the GATT. The policies they forwarded came to be called the Washington Consensus. The Washington Consensus dominated global economic policies from the 1980s until the early 2000s. Its advocates pushed for minimal government spending to reduce government debt. They also called for the privatization of government-controlled services like water, power, communications, and ‘transport, believing that the free market can produce the best results, Finally, they pressured governments, particularly in the developing world, to reduce tariffs and open up their economies, arguing that it is the quickest way to progress. Advocates of the Washington Consensus conceded that, along the way, certain industries would be affected and die, but they considered this “shock therapy” necessary for long-term economic growth. The appeal of neo like US President Re Margaret Thatcher spending by compa Thatcher, in particula who reined in overspe ‘The problem with are not households. F households cannot. } governments provide them to pay and refin: Despite the init ‘Thatcher and Reagar became immediately post-communist Rus the 1990s, the IMF « government industri¢ free these industries to the more dynami happened, however, v accumulated wealth | money to purchase tl clites relied on easy | industries. This pra dominates the Russia The Global Fin to Neoliberalis Russia’s case was of neoliberalism did economists who bel: recent repudiation o sis of 2008-2009.oil? 1973- gold, result have ecline place Z was mists at the omies thout rgued roper vil to d was alism. lified Vorld ation tariff ne to omic ished debt. olled port, rally, orld, s the nsus cted y for The Globalization of World Economics | 19 ‘The appeal of neoliberalism was in its simplicity. Its advocates like US President Ronald Reagan and British Prime Minister Margaret Thatcher justified their reduction in government spending by comparing national economies to households. ‘Thatcher, in particular, promoted an image of herself as a mother, who reined in overspending to reduce the national debt. ‘The problem with the household analogy is that governments are not households. For one, governments can print money, while households cannot. Moreover, the constant taxation systems of governments provide them a steady flow of income that allows them to pay and refinance debts steadily. Despite the initial success of neoliberal politicians like ‘Thatcher and Reagan, the defects of the Washington Consensus became immediately palpable. A good early example is that of. post-communist Russia. After Communism had collapsed in the 1990s, the IME called for the immediate privatization of all government industries. The IMF assumed that such a move would. free these industries from corrupt bureaucrats and pass them on to the more dynamic and independent private investors. What happened, however, was that only individuals and groups who had accumulated wealth under the previous communist order had the money to purchase these industries. In some cases, the economic clites relied on easy access to government funds to take over the industries. This practice has entrenched an oligarchy that still dominates the Russian economy to this very day. The Global Financial Crisis and the Challenge to Neoliberalism Russia's case was just one example of how the “shock therapy” ‘of neoliberalism did not lead to the ideal outcomes predicted by economists who believed in perfectly free markets. The greatest fecent repudiation of this thinking was the recent global financial crisis of 2008-2009.) | The Structures of Globalization Neoliberalism came under significant strain during the global financial crisis of 2007-2008 when the world experienced the greatest economic downturn since the Great Depression. The crisis can be traced back to the 1980s when the United States systematically removed various banking and investment restrictions. The scaling back of regulations continued until the 2000s, paving the way for a brewing crisis. In their attempt to promote the free market, government authorities failed to regulate bad investments occurring in the US housing market. Taking advantage of “cheap housing loans,” Americans began building houses that were beyond their financial capacities. To mitigate the risk of these loans, banks that were lending houseowners’ money pooled these mortgage payments and sold them as “mortgage-backed securities” (MBSs). One MBS would be a combination of multiple mortgages that they assumed would pay a steady rate. Since there was so much surplus money circulating, the demand for MBSs increased as investors clamored for more investment opportunities. In their haste to issue these loans, however, the banks became less discriminating. They began extending loans to families and individuals with dubious credit records—people who were unlikely to pay their loans back. These high-risk mortgages became known as sub-prime mortgages. Financial experts wrongly assumed that, even if many of the borrowers were individuals and families who would struggle to Pay, a majority would not default. Moreover, banks thought that since there were so many mortgages in just one MBS, a few failures would not ruin the entirety of the investment. Banks also assumed that housing prices would continue to increase. Therefore, even if homeowners defaulted on their loans, these banks could simply reacquire the homes and sell them at a higher price, turning a profit. Sometime in 2007, however, home prices stopped increasing as supply caught up with demand. Moreover, it slowly became apparent that families realization triggered th investors tried to get rid cycle reached a tipping stment banks lik depleting major investm im The crisis spread investors were foreign gi The loss of their money ‘These series of inter effect that sent ripples banks heavily depende them, they failed to refi crunch, three of Icelan 2007 to 2008, Iceland’s Until now, count indebted (almost like has come at a high pri by Germany and the spending. Affecting ser forms of social securit the poor. Moreover, th slowed down growth at The United States large Keynesian-style Obama pushed for in F be said for many ot! economic crisis has 5] right parties like Mari risen to prominence | woes, claiming that th movements blend po racism. We will discus:g the enced ssion, Inited tment 000s, mote ulate aking Iding ding sold Id be d pay , the more Dans, egan redit ‘hese f the le to that lures ie to ans, ata sing ame The Globalization of World Economics | 21 apparent that families could not pay off their loans. This realization triggered the rapid reselling of MBSs, as banks and investors tried to get rid of their bad investments. This dangerous cycle reached a tipping point in September 2008, when major investment banks like Lehman Brothers collapsed, thereby depleting major investments. ‘The crisis spread beyond the United States since many investors were foreign governments, corporations, and individuals. The loss of their money spread like wildfire back to their countries. ‘These series of interconnections allowed for a global multiplier effect that sent ripples across the world. For example, Iceland’s banks heavily depended on foreign capital, so when the crisis hit them, they failed to refinance their loans. As a result of this credit crunch, three of Iceland’s top commercial banks defaulted. From 2007 to 2008, Iceland’s debt increased more than seven-fold. Until now, countries like Spain and Greece are heavily indebted (almost like Third World countries), and debt relief has come at a high price. Greece, in particular, has been forced by Germany and the IMF to cut back on its social and public spending. Affecting services like pensions, health care, and various forms of social security, these cuts have been felt most acutely by the poor. Moreover, the reduction in government spending has slowed down growth and ensured high levels of unemployment. The United States recovered relatively quickly thanks to a large Keynesian-style stimulus package that President Barack Obama pushed for in his first months in office. The same cannot be said for many other countries. In Europe, the continuing economic crisis has sparked a political upheaval. Recently, far- right parties like Marine Le Pen’s Front National in France have risen to prominence by unfairly blaming immigrants for their woes, claiming that they steal jobs and leech off welfare. ‘These movements blend popular resentment with utter hatred and racism. We will discuss their rise further in the final lesson.22 | The Structures of Globalization Economic Globalization Today The global financial crisis will take decades to resolve. The solutions proposed by certain nationalist and leftist groups of closing national economies to world trade, however, will no longer work. The world has become too integrated. Whatever one’s opinion about the Washington Consensus is, it is undeniable that some form of international trade remains essential for countries to develop in the contemporary world. Exports, not just the local selling of goods and services, make national economies grow at present. In the past, those that benefited the most from free trade were the advanced nations that were producing and selling industrial and agricultural goods. The United States, Japan, and the member-countries of the European Union were responsible for 65 percent of global exports, while the developing countries only accounted for 29 percent. When more countries opened up their economies to take advantage of increased free trade, the shares of the percentage began to change. By 2011, developing countries like the Philippines, India, China, Argentina, and Brazil accounted for 51 percent of global exports while the share of advanced nations— including the United States—had gone down to 45 percent." The WTO-Ied reduction of trade barriers, known as trade liberalization, has profoundly altered the dynamics of the global economy. In the recent decades, partly as a result of these increased exports, economic globalization has ushered in an unprecedented spike in global growth rates. According to the IMF, the global Per capita GDP rose over five-fold in the second half of the 20th century. It was this growth that created the large Asian economies like Japan, China, Korea, Hong Kong, and Singapore.'* And yet, economic globalization remains an uneven process, with some countries, corporations, and individuals benefiting a lot more than others. The series of trade talks under the WTO have led to unprecedent but these processes First, develop repeatedly refuse products that coul the developing wo Japan’s determine: to protect its farn sacred.” Ultimate economy that allo sector. ‘The United St forcing consumer prices instead of g America. Faced with powerful countric to make econom therefore, charact developing countr The benefici transnational — cc And like any of! with profits tha governments hos laws, which prev and environmen members of theit to countries’ lo protection of wor high profit mar; weaken environ consequences on their finite resourThe ger ne’s hat s to “es, hat ns ral of bal for ies ed ed al th es ot e The Globalization of World Economics | 23 \ed to unprecedented reductions in tariffs and other trade barriers, but these processes have often been unfair. First, developed countries are often protectionists, as they repeatedly refuse to lift policies that safeguard their primary products that could otherwise be overwhelmed by imports from the developing world. The best example of this double standard is Japan’s determined refusal to allow rice imports into the country to protect its farming sector. Japan's justification is that rice is sacred.” Ultimately, it is its economic muscle as the third largest economy that allows it to resist pressures to open its agricultural sector. ‘The United States likewise fiercely protects its sugar industry, forcing consumers and sugar-dependent businesses to pay higher prices instead of getting cheaper sugar from plantations of Central America. Faced with these blatantly protectionist measures from powerful countries and blocs, poorer countries can do very little to make economic globalization more just. Trade imbalances, therefore, characterize economic relations between developed and developing countries. The beneficiaries of global commerce have been mainly transnational corporations (TNCs) and not governments. And like any other business, these TNCs are concerned more with profits than with assisting the social programs of the governments hosting them. Host countries, in turn, loosen tax laws, which prevents wages from rising, while sacrificing social and environmental programs that protect the underprivileged members of their societies. The term “race to the bottom” refers to countries’ lowering their labor standards, including the protection of workers’ interests, to lure in foreign investors seeking high profit margins at the lowest cost possible. Governments weaken environmental laws to attract investors, creating fatal consequences on their ecological balance and depleting them of their finite resources (like oil, coal, and minerals).24 | The Structures of Globalization Localizing the Material Many Philippine industries were devastated by unfair trade deals under the GATT and eventually the WTO. One sector that was particularly affected was Philippine agriculture. According to Walden Bello and a team of researchers at Focus on the Global South, the US used its power under the GATT system to prevent Philippine importers from purchasing Philippine poultry and pork—even as it sold meat to the Philippines. Although the Philippines expected to make up losses in sectors like meat with gains in areas such as coconut products, no significant change was realized. In 1993, coconut exports amounted to $1.9 billion, and after a slight increase to $2.3 billion in 1997, it returned to $1.9 billion in 2000, Most strikingly, Bello and company noted that the Philippines became a net food importer under the GATT. In 1993, the country had an agricultural trade surplus of $292 million. It had a deficit of $764 million in 1997 and $794 million in 2002, « Bello, Walden, Herbert Docena, Marissa de Guzman, and Mary Lou Malig, The Anti-Development State: The Political Economy of Permanent Crisis in the Philippines. London and New York: Zed Books, 2006, 140-142. See pene eee emer SOIOISV: Conclusion International economic integration is a central tenet of globalization. In fact, it is so crucial to the process that many writers and commentators confuse this integration for the entirety of globalization. As a reminder, economics is just one window into the phenomenon of globalization; it is not the entire thing. Nevertheless, much of globalization is anchored on changes in the economy. Global culture, for example, is facilitated by trade. Filipinos would not be as aware of American culture if not for the trade that allows locals to watch American movies, listen to American music, and consume American products. The globalization of politics is likewise largely contingent on trade relations. These days, many events of foreign affairs are conducted to cement trading relations between and among states. Given the stak perennially imports just. Although som back, policies cann policymakers, ther trading deals fairer ways of cushionin globalization, while Guide Qu 1. _Howdo econ 2, Howis the Ph 3. Compare and system with t senna ® ae Learning Global E With the help | trip to and famil organization (Asi company (Honda, as you can during ' If this activit accomplish these of the institution connections it has of this institution interconnections. ‘Then answer t global economic | Philippines?trade or that ling to Global revent y and ses in ducts, ports billion pines puntry ficit of 1 Malig, in the net of many ntirety w into ranges ted by sure if 10vies, s. The trade jucted The Globalization of World Economics | 25 Given the stakes involved in economic globalization, it is perennially important to ask how this system can be made more just. Although some elements of global free trade can be scaled back, policies cannot do away with it as a whole. International policymakers, therefore, should strive to think of ways to make trading deals fairer. Governments must also continue to devise ways of cushioning the most damaging effects of economic globalization, while ensuring that its benefits accrue for everyone. (?) Guide Questions 1. How do economic forces facilitate the deepening of globalization? How is the Philippines central to the history of economic globalization? Compare and contrast the assumptions of the original Bretton Woods system with those of the Washington Consensus. a E 2 “AS Learning Activity: Global Economic Institutions With the help of the school administration, organize a school trip to and familiarization tour of an international economic organization (Asian Development Bank) or an international company (Honda, McDonald’s, etc.). Gather as much information as you can during the tour. If this activity cannot be arranged, go to the web and accomplish these tasks: (a) research the origins and history of the institution you have chosen; (b) map the international connections it has created; (c) identify the major country-leaders of this institution; and (d) locate the Philippines in this map of interconnections. ‘Then answer this question: How does this institution influence global economic activity? How does it affect economics in the Philippines?“esor A History of Global - Politics: Creating a International Orde @ Learning Outcomes At the end of this lesson, you should be able to: identify key events in the development of international relations; differentiate internationalization from globalization; define the state and the nation; AWN distinguish between the competing conceptions of internationalism; and 5. discuss the historical evolution of international politics. Walla eee ee ee The world is composed of many countries or states, all of them having different forms of government. Some scholars of politics are interested in individual states and examine the internal politics of these countries. For example, a scholar studying the politics of Japan may write about the history of its bureaucracy, Other scholars are more interested in the interactions between states rather than their internal politics. These scholars look at trade deals between states. They also study political, military, and other diplomatic engagements between two or more countries. These scholars are studying international relations. Moreover, when they explore the deepening of interactions between states, they refer to the phenomenon of internationalization. Internationalization does not equal globalization, although it is a major part of globalization. As we explained in Lesson 1, globalization encompasses a multitude of connections and interactions that cannot be reduced to the ties between governments. Nevertheless, it is important to study international relations as a facet of globalization, because states/governments A Histor are key drivers of global internationalization as | politics. Although this | we cannot avoid histor is largely defined by ¢ years ago. Don’t worry; world politics. But to d his lesson will begin contemporary global. this system emerge? In| to understand the maje lesson, The Attributes of World politics toda countries or states that Second, these countr diplomacy. Third, ther: United Nations (UN), beyond simply facilitat organizations also take part from being a mee of state, also has task Organization (WHO) a (ILO). What are the ori unpacking what one m¢ icademics also call the s it seems. The nation in human history, and 1s countries. At differe in various regions of t units as small as their they see themselves as Ch stendom” (the enta a Je em tics tics tics her ates ade her ese hey r to igh 11, ind een nal nts A History of Global Politics: Creating an International Order | 27 are key drivers of global processes. In this lesson, we will examine internationalization as one window to view the globalization of politics, Although this course is about the contemporary world, we cannot avoid history. What international relations are today is largely defined by events that occurred as far back as 400 years ago. Don’t worry; we will eventually discuss contemporary world politics. But to do that, we need first to work backward. This lesson will begin with identifying the major attributes of contemporary global politics and then proceed to ask: How did this system emerge? In doing so, you will have a solid foundation to understand the major issues of global governance in the next lesson. The Attributes of Today’s Global System World politics today has four key attributes. First, there are countries or states that are independent and govern themselves. Second, these countries interact with each other through diplomacy. Third, there are international organizations, like the United Nations (UN), that facilitate these interactions. Fourth, beyond simply facilitating meetings between states, international organizations also take on lives of their own. The UN, for example, part from being a meeting ground for presidents and other heads of state, also has task-specific agencies like the World Health Organization (WHO) and the International Labour Organization (ILO). What are the origins of this system? A good start is by unpacking what one means when he/she says a “country,” or what academics also call the nation-state. This concept is not as simple it seems. The nation-state is a relatively modern phenomenon in human history, and people did not always organize themselves 4s countries. At different parts in the history of humanity, people in various regions of the world have identified exclusively with units as small as their village or their tribe, and at other times, they see themselves as members of larger political categories like Christendom” (the entire Christian world).28 | The Structures of Globalization The nation-state is composed of two non-interchangeable terms. Not all states are nations and not all nations are states, The nation of Scotland, for example, has its own flag and national culture, but still belongs to a state called the United Kingdom. Closer to home, many commentators believe that the Bangsamoro is a separate nation existing within the Philippines but, through their elites, Tecognizes the authority of the Philippine state. Meanwhile, if there are states with multiple nations, there are also single nations with multiple states. The nation of Korea is divided into North and South Korea, whereas the “Chinese nation” may refer to both the People’s Republic of China (the mainland) and Taiwan. What then is the difference between nation and state? In layman’s terms, state refers to a country and its government, i.e, the government of the Philippines, A state has four attributes, First, it exercises authority over a specific Population, called its citizens. Second, it governs a specific territory. Third, a state has a structure of government that crafts various rules th: (society) follow. Fourth and the most crucial, Sovereignty over its territory. Sovereignty here refer: external authority. Internally, at people , the state has 's to internal and no individuals or groups can operate ina given national territory by ignoring the state. This means that groups like churches, civil society organizations, corporations, and other entities have to follow the laws of the state where they establish their parishes, offices, or headquarters. Externally, Sovereignty means that a state’s Policies and procedures are independent of the interventions of other states. Russia or China, for example, cannot pass laws for the Philippines and vice versa. On the other hand, the nation, according to Benedict Anderson, is an “ima; gined community.” It is limited because it does not go beyond a given “official boundary,” rights and responsibilities are mi of the citizens of that nation.” nation has its boundaries, This ct and because ainly the privilege and concern Being limited means that the naracteristic is in stark contrast to many religious imagined communities. Anyone, for example, can become a Catholic if one chooses to. In fact, Catholics want more people to joi to discipleship. Bu An American can “convert” into a Ph to people who have language, and live i Calling it “ima up. Rather, the na community of peo in his/her lifetime. Olympics, for exan athlete. Rather, you the same Filipino Philippine archipel: people living in it a become states. Nati when that national authority and powe Moreover, if there 2 seek some form of is why, for example the state of Canade French-speaking a1 their citizens). It is. of the United King¢ by the Scottish Nati Nation and stat that facilitates state era, it has been the the creation of nai sovereign because ¢ independence. Sovereignty is, modern state politi entails going back asA History of Global Politics: Creating an International Order | 29 more people to join their community; they refer to it as the call to discipleship. But not everyone can simply become a Filipino. An American cannot simply go to the Philippine Embassy and “convert” into a Philippine citizen. Nations often limit themselves to people who have imbibed a particular culture, speak a common language, and live in a specific territory. Calling it “imagined” does not mean that the nation is made- up. Rather, the nation allows one to feel a connection with a community of people even if he/she will never meet all of them in his/her lifetime. When you cheer for a Filipino athlete in the Olympics, for example, it is not because you personally know that athlete. Rather, you imagine your connection as both members of the same Filipino community. In a given national territory like the Philippine archipelago, you rest in the comfort that the majority of people living in it are also Fillipinos. Finally, most nations strive to become states. Nation-builders can only feel a sense of fulfillment when that national ideal assumes an organizational form whose authority and power are recognized and accepted by “the people.” Moreover, if there are communities that are not states, they often seek some form of autonomy within their “mother states.” This is why, for example, the nation of Quebec, though belonging to the state of Canada, has different laws about language (they are French-speaking and require French language competencies for their citizens). It is also for this reason that Scotland, though part of the United Kingdom, has a strong independence movement led by the Scottish Nationalist Party. Nation and state are closely related because it is nationalism that facilitates state formation. In the modern and contemporary era, it has been the nationalist movements that have allowed for the creation of nation-states. States become independent and sovereign because of nationalist sentiment that clamors for this independence, Sovereignty is, thus, one of the fundamental principles of modern state politics. Understanding how this became the case entails going back as far as 400 years ago.30 | The Structures of Globalization The Interstate System The origins of the present-day concept of sovereignty can be traced back to the Treaty of Westphalia, which was a set of agreements signed in 1648 to end the Thirty Years’ War between the major continental powers of Europe. After a brutal religious war between Catholics and Protestants, the Holy Roman Empire, Spain, France, Sweden, and the Dutch Republic designed a system that would avert wars in the future by recognizing that the treaty signers exercise complete control over their domestic affairs and swear not to meddle in each other’s affairs. The Westphalian system provided stability for the nations of Europe, until it faced its first major challenge by Napoleon Bonaparte. Bonaparte believed in spreading the principles of the French Revolution—liberty, equality, and fraternity—to the rest of Europe and thus challenged the power of kings, nobility, and religion in Europe. The Napoleonic Wars lasted from 1803-1815 with Napoleon and his armies marching all over much of Europe. In every country they conquered, the French implemented the Napoleonic Code that forbade birth privileges, encouraged freedom or religion, and promoted meritocracy in government service. This system shocked the monarchies and the hereditary elites (dukes, duchesses, etc.) of Europe, and they mustered their armies to push back against the French emperor. Anglo and Prussian armies finally defeated Napoleon in the Battle of Waterloo in 1815, ending the latter’s mission to spread his liberal code across Europe. To prevent another war and to keep their systems of privilege, the royal powers created a new system that, in effect, restored the Westphalian system. The Concert of Europe was an alliance of “great powers”—the United Kingdom, Austria, Russia, and Prussia—that sought to restore the world of monarchical, hereditary, and religious privileges of the time before the French Revolution and the Napoleonic Wars. More importantly, it was an alliance that sought to restore the Sovereignty of states. Under this Metternich system (named after the Austrian diplomat, Klemens von Metternich, who was the AHis system’s main architec from 1815 to 1914, at tl Klemens Von Mett Despite the chall and the eventual col War I, present-day i history. Until now, st attempts to violenth countries are frowne reat powers” still h Vor example, the mo: Council, has a core | powers over the coun Internationali The Westphalia into separate, sove interstate system, threignty can vas a set of far between al religious an Empire, ed a system t the treaty affairs and he nations Napoleon iples of the to the rest bility, and 1803-1815 of Europe. rented the d freedom rvice. This tes (dukes, ies to push poleon in nission to other war created a stem. The he United to restore vileges of nic Wars. store the med after ) was the A History of Global Politics: Creating an International Order | 31 system’s main architect), the Concert’s power and authority lasted from 1815 to 1914, at the dawn of World War I. Klemens Von Metternich was the architect of the ‘Concert of Europe: Despite the challenge of Napoleon to the Westphalian system and the eventual collapse of the Concert of Europe after World War I, present-day international system still has traces of this history. Until now, states are considered sovereign, and Napoleonic attempts to violently impose systems of government in other countries are frowned upon. Moreover, like the Concert system, sreat powers” still hold significant influence over world politics. Vor example, the most powerful grouping in the UN, the Security Council, has a core of five permanent members, all having veto powers over the council’s decision-making process. Internationalism he Westphalian and Concert systems divided the world into separate, sovereign entities. Since the existence of this te system, there have been attempts to transcend it. Some,32 | The Structures of Globalization like Bonaparte, directly challenged the system by infringing on other states’ sovereignty, while others sought to imagine other systems of governance that go beyond, but do not necessarily challenge, sovereignty. Still, others imagine a system of heightened interaction between various sovereign states, particularly the desire for greater cooperation and unity among states and peoples. This desire is called internationalism. Internationalism comes in different forms, but the principle may be divided into two broad categori and socialist internationalism, : liberal internationalism ‘The first major thinker of liberal internationalism was the late 18th century German philosopher Immanuel Kant. Kant likened States in a global system to people living in a given territory. If People living together require a government to prevent lawlessness, shouldn’t that same Principle be applied to states? Without a form of world government, he argued, the international system would be chaotic. Therefore, states, like citizens of countries, must give up some freedoms and “establish a continuously growing state consisting of various nations which will ultimately include the nations of the world.” In short, Kant imagined a form of global government. Writing in the late 18th century as well, British philosopher Jeremy Bentham (who coined the word “international” in 1780), advocated the creation of “international law” that would govern the inter-state relations. Bentham believed that objective global legislators should aim to Propose legislation that would create “the greatest happiness of all nations taken together.” To many, these proposals for global government and international law seemed to represent challenges to states. Would not a world government, in effect, become supreme? And would not its laws overwhelm the sovereignty of individual states? The first thinker to reconcile nationalism with liberal internationalism was the 19th century Italian patriot Giuseppe Mazzini. Mazzini was both an advocate of the unification of the various Italian-speaking mini-states and a major critic of the AHi Metternich system. (without kings, queen system of free nations international system. be the basis of an eq) He argued that if the could scale up the sys Europe. Mazzini wa: that free, unified n: cooperation. Mazzini influenc (1913-1921) Woodro century’s most prom saw nationalism as « of his faith in natio determination—the | free, and sovereign g would become dem« they be able to build on international law « most notable advoca At the end of Worl League into a venue another war. For his Prize in 1919. ‘American Presic advocaAHistory of Global Politics: Creating an International Order | 33 Metternich system. He believed in a Republican government (without kings, queens, and hereditary succession) and proposed a system of free nations that cooperated with each other to create an international system. For Mazzini, free, independent states would be the basis of an equally free, cooperative international system. He argued that if the various Italian mini-states could unify, one could scale up the system to create, for example, a United States of Europe. Mazzini was a nationalist internationalist, who believes that free, unified nation-states should be the basis of global cooperation. Mazzini influenced the thinking of United States president (1913-1921) Woodrow Wilson, who became one of the 20th century's most prominent internationalist. Like Mazzini, Wilson saw nationalism as a prerequisite for internationalism. Because of his faith in nationalism, he forwarded the principle of self- determination—the belief that the world’s nations had a right to a free, and sovereign government. He hoped that these free nations would become democracies, because only by being such would they be able to build a free system of international relations based on international law and cooperation. Wilson, in short, became the most notable advocate for the creation of the League of Nations. At the end of World War I in 1918, he pushed to transform the League into a venue for conciliation and arbitration to prevent another war. For his efforts, Wilson was awarded the Nobel Peace Prize in 1919. ‘American President Woodrow Wilson became the most prominent ‘advocate for the creation of the League of Nations,34 | The Structures of Globalization The League came into being that same year. Ironically and unfortunately for Wilson, the United States was not able to join the organization due to strong opposition from the Senate. The League was also unable to hinder another war from breaking out, It was practically helpless to prevent the onset and intensification of World War II. On one side of the war were the Axis Powers— Hitler's Germany, Mussolini’s Italy, and Hirohito’s Japan— who were ultra-nationalists that had an instinctive disdain for internationalism and preferred to violently impose their dominance over other nations. It was in the midst of this war between the Axis Powers and the Allied Powers (composed of the United States, United Kingdom, France, Holland, and Belgium) that internationalism would be eclipsed. Despite its failure, the League gave birth to some of the more task-specific international organizations that are still around until today, the most popular of which are the World Health Organization (WHO) and the International Labour Organization (ILO). More importantly, it would serve as the blueprint for future forms of international cooperation. In this respect, despite its organizational dissolution, the League of Nations’ principles survived World War II. The League was the concretization of the concepts of liberal internationalism. From Kant, it emphasized the need to form common international principles. From Mazzini, it enshrined the principles of cooperation and respect among nation-states. From Wilson, it called for democracy and self-determination. These ideas would re-assert themselves in the creation of the United Nations in 1946 (see next lesson). One. of Mazzini’s biggest critics was German socialist philosopher Karl Marx who was also an internationalist, but who differed from the former because he did not believe in nationalism. He believed that any true form of internationalism should deliberately reject nationalism, which rooted people in domestic concerns instead of global ones. Instead, Marx placed a premium on economic equality; he did not divide the world into countries, AHi but into classes. The factories, companies, the proletariat class it production, but instea Marx and his co a socialist revoltutio the economy, the pro famous battle cry, “W to lose but your chai believed it prevente Instead of identifying workers in individual countries. Marx died in 188 vision concrete by e: ‘The Socialist Interna and labor parties es lived, the SI’s achieve Labor Day and the cr importantly, it initia workday. The SI collapsed refused or were unat for the war. Many o: each other. It was a c¢ and their organizatic each other, their long As the SI colla the so-called Russia overthrown and repl Bolshevik Party and called the Union of S majority of the mem believe in obtaining | Rather, they exhortIronically and not able to join he Senate. The n breaking out, intensification Axis Powers— hito’s Japan— nective disdain impose their ist of this war posed of the and Belgium) ne of the more > still around World Health Organization blueprint for spect, despite ns’ principles epts of liberal need to form enshrined the \-states. From 1ation. These f the United lan socialist alist, but who | nationalism. lism should in domestic da premium to countries, A History of Global Politics: Creating an International Order | 35 but into classes. The capitalist class referred to the owners of factories, companies, and other “means of production.” In contrast, the proletariat class included those who did not own the means of production, but instead, worked for the capitalists. Marx and his co-author, Friedrich Engels, believed that in 4 socialist revoltution seeking to overthrow the state and alter the economy, the proletariat “had no nation.” Hence, their now- famous battle cry, “Workers of the world, unite! You have nothing to lose but your chains.” They opposed nationalism because they believed it prevented the unification of the world’s workers. Instead of identifying with other workers, nationalism could make workers in individual countries identify with the capitalists of their countries. Marx died in 1883, but his followers soon sought to make his vision concrete by establishing their international organization. The Socialist International (SI) was a union of European socialist and labor parties established in Paris in 1889. Although short- lived, the ST’s achievements included the declaration of May 1 as Labor Day and the creation of an International Women's Day. Most importantly, it initiated the successful campaign for an 8-hour workday. The SI collapsed during World War I as the member parties refused or were unable to join the internationalist efforts to fight for the war. Many of these sister parties even ended up fighting each other. It was a confirmation of Marx’s warning: when workers and their organizations take the side of their countries instead of each other, their long-term interests are compromised. ‘As the SI collapsed, a more radical version emerged. In the so-called Russian Revolution of 1917, Czar Nicholas Il was overthrown and replaced by a revolutionary government led by the Bolshevik Party and its leader, Vladimir Lenin. This new state was called the Union of Soviet Socialist Republics, or USSR. Unlike the majority of the member parties of the SI, the Bolsheviks did not believe in obtaining power for the working class through elections. Rather, they exhorted the revolutionary “vanguard” parties to36 | The Structures of Globalization lead the revolutions across the world, using methods of terror if necessary. Today, parties like this are referred to as Communist parties. Russian revolutionary Viadimir Lenin founded the Comintern to spread socialist revolutions across the world To encourage these socialist revolutions across the world, Lenin established the Communist International (Comintern) in 1919. The Comintern served as the central body for directing Communist parties all over the world. This International was not only more radical than the Socialist International, it was also less democratic because it followed closely the top-down governance of the Bolsheviks. Many of the world’s states feared the Comintern, believing that it was working in secret to stir up revolutions in their countries (which was true). A problem arose during World War II when the Soviet Union joined the Allied Powers in 1941. The United States and the United Kingdom would, of course, not trust the Soviet Union in their fight against Hitler’s Germany. These countries Adis wondered if the Sovice in their backyards. To Stalin, dissolved the C After the war, ho as the Communist In, Union took over the ¢ States, the Soviet Un Europe into their res like the Comintern bi parties that had taken With the event whatever existing tho practically disappear 1951, but its influenc has never been consi to this very day. For the postwa would once again be rise of the United Na Conclu This lesson exa In tracing these ro provided. Moreove the broader phenc a very crucial asp. are heightened by increased interdep state-to-state relati also facilitated by global norms and organization, of cotods of terror if as Communist read socialist ss the world, omintern) in for directing tional was not t was also less governance of believing that \eir countries r II when the United States ist the Soviet ese countries ‘A History of Global Politics: Creating an International Order hey? wondered if the Soviet Union was trying to promote revolutions in their backyards. To appease his allies, Lenin’s successor, Joseph Stalin, dissolved the Comintern in 1943. ‘After the war, however, Stalin re-established the Comintern ‘as the Communist Information Bureau (Cominform). The Soviet Union took over the countries in Eastern Europe when the United States, the Soviet Union, and Great Britain divided the war-torn Europe into their respective spheres of influence. The Cominform, like the Comintern before it, helped direct the various communist parties that had taken power in Eastern Europe. With the eventual collapse of the Soviet Union in 1991, whatever existing thoughts about communist internationalism also practically disappeared. The SI managed to re-establish itself in 1951, but its influence remained primarily confined to Europe, and has never been considered a major player in internat ional relations to this very day. For the postwar period, however, liberal internationalism would once again be ascendant. And the best evidence of this is the rise of the United Nations as the center of global governance. Conclusion ‘This lesson examined the roots of the international system. In tracing these roots, a short history of internationalism was provided. Moreover, internationalism is but one window into the broader phenomenon of globalization. Nevertheless, it is a very crucial aspect of globalization since global interactions are heightened by the increased interdependence of states. This increased interdependence manifests itself not just through state-to-state relations. Increasingly, international relations are also facilitated by international organizations that promote global norms and policies. The most prominent example of this organization, of course, is the United Nations.| The Structures of Globalization (2) Guide Questions ‘What remnants of the Westphalian system can still be felt at this day and age? In what sense has the world gone beyond the Westphalian system? 2. What are the differences between liberal and socialist internationalism? What are their strengths and weaknesses? 3. Doyou think internationalization erodes the sovereignty of states? we “Learning Activity: Imaginary Interview Further research/read on Giuseppe Mazzini, Woodrow Wilson, Karl Marx, or Vladimir Lenin. Conduct an imaginary interview with one of them. In this interview, have your selected figure answer the following questions: 1. What do you think of nationalism? 2. What is necessary for the development of an international order? 3. What do you think of the League of Nations? 4, What is the role of revolution in internationalism? At the end of this lessc 1. define global go 2. identify the roles 3. determine the ch century. Although many imagined the possibi sort exists today. The are accountable to. compel a state to 0 however, some regu! example, they more more often than not Moreover, when they 2014—it becomes a that states in an inte global norms mean despite the lack of a refers to the various i There are many {treaties and form or international law (i between states as op} non-governmental | formal state power,_ The United Nations , and Contemporary - Global Governance | © Learning Outcomes At the end of this lesson, you should be able to: 1. define global governance; 2. identify the roles and functions of the United Nations; and 3, determine the challenges of global governance in the twenty-first century. Although many internationalists like Bentham and Kant imagined the possibility of a global government, nothing of the sort exists today. There is no one organization that various states are accountable to. Moreover, no organization can militarily compel a state to obey predetermined global rules. There is, however, some regularity in the general behavior of states. For example, they more or less follow global navigation routes and, more often than not, respect each other’s territorial boundaries. Moreover, when they do not—like when Russia invaded Crimea in 2014—it becomes a cause for global concern and debate. The fact that states in an international order continue to adhere to certain global norms means that there is a semblance of world order despite the lack of a single world government. Global governance refers to the various intersecting processes that create this order. There are many sources of global governance. States sign treaties and form organizations, in the process legislating public international law (international rules that govern interactions between states as opposed to, say, private companies). International non-governmental organizations (NGOs), though not having formal state power, can lobby individual states to behave in a0 | The Structures of Globalization certain way (for example, an international animal protection NGO. can pressure governments to pass animal cruelty laws). Powerful transnational corporations can likewise have tremendous effects on global labor laws, environmental legislation, trade policy, etc. Even ideas such as the need for “global democracy” or the clamor for “good governance” can influence the ways international actors behave. One lesson will not be able to cover the various ways global governance occurs. As such, this lesson will only examine how global governance is articulated by intergovernmental organizations. It will focus primarily on the United Nations (UN) as the most prominent intergovernmental organization today. What is an International Organization? When scholars refer to groups like the UN or institutions like the IMF and the World Bank (see Lesson 2), they usually call them international organizations (IOs). Although international NGOs are sometimes considered as IOs, the term is commonly used to refer to international intergovernmental organizations or groups that are primarily made up of member-states."* One major fallacy about international organizations is that they are merely amalgamations of various state interests. In the 1960s and 1970s, many scholars believed that IOs were just venues where the contradicting, but sometimes intersecting, agendas of countries were discussed—no more than talk shops. What has become more evident in recent years, however, is that IOs can take on lives of their own. For example, as seen in Lesson 2, the IMF was able to promote a particular form of economic orthodoxy that stemmed mainly from the beliefs of its professional economists, TOs can thus become influential as independent organizations. International relations scholars Michael N. Barnett and Martha Finnemore listed the following powers of IOs. The First, IOs have can invent and app standards.” For exal Refugees (UNHCR) for more). And since their borders, this po Second, IOs have function related to “development” neec and individuals view such, the meanings t example, recently, th as not just safety fi environmental harm Finally, 10s h are accepted codes nevertheless produ: classify and fix mea world, thereby est: are, as Barnett an¢ of our time. Their that IOs are staffe considered experts economists come t thus carry some fe norms regarding t development projec Because of the great good and gr like environmenta other entrenched communities that the Nobel Prize criticized the IMF | economists made re