GNED 07 – The Contemporary World

LEC 01: INTRODUCTION TO GLOBALIZATION

GLOBALIZATION

➢ the development of an increasingly integrated global

economy marked especially by free trade, free flow of
capital, and the tapping of cheaper foreign labor
markets (Merriam-Webster Dictionary)
➢ the process by which businesses or other organizations
develop international influence or start operating on an
international scale. (Oxford Dictionary)
➢ A process of interaction and integration among the
people, companies, and governments of different
nations, a process driven by international trade and
investment and aided by information technology. This
process has effects on the environment, on culture, on
political systems, on economic development and
prosperity, and on human physical well-being in
societies around the world. (www.globalization101.org)
➢ Growth to a global or worldwide scale

Political

Social Globalization Economic

Cultural

Think about the world before globalization

✓ Distance mattered – space often measured in time

✓ Territorial boundaries more or less kept things in and
out
✓ Society and culture had spatial referents
✓ Everything had its “place” (literally)

Globalization

➢ “The process by which different parts of the world

interact economically, politically, and culturally.”

POINT TO PONDER

➢ Is globalization a force for economic growth,

prosperity, and democratic freedom? Or is it a force
for environmental devastation, exploitation of the
developing world, and suppression of human rights?
Does globalization only benefit the rich or can the
poor take advantage of it to improve their well-
being?

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LEC 02: ECONOMIC GLOBALIZATION Assumptions of the Modern World System

➢ [e]conomic globalization is a historical process, the
result of human innovation and technological progress. It
refers to the increasing integration of economies around
the world, particularly through the movement of goods,
services, and capital across borders. The term sometimes
also refers to the movement of people (labor) and
knowledge (technology) across international borders.
(IMF, 2008)
➢ It is nothing but a process making the world economy an
“organic system” by extending transnational economic
processes and economic relations to more and more
countries and by deepening the economic
interdependencies among them.’ Szentes (2003: 69)
Interconnected Dimensions of Economic Globalization
Globalization of trade of goods and services;
Globalization of financial and capital markets;
Globalization of technology and communication; and
Globalization of production.
SOME ACTORS OF GLOBALIZATION
• STATE – midwives of globalization
• UNITED NATIONS (UN)
• NON-GOVERNMENTAL ORGANIZATIONS (NGOs)
• TRANSNATIONAL CORPORATIONS (TNCs)
Social System: consists of cultural, political and
economical
World Economy: assumes that the world is divided into
three main zones (Core, Semi-Periphery and
Periphery)
Interpretation: understood in state strength and
cultural integration.
Periphery of World Economy
The advantages:
Workers from a country that belongs to the periphery
of World Economy can provide cheap labor of work
force.
Provided by aids whenever there is economic turmoil.
Materials provided by these countries are cheaper.
Disadvantages:
Jobs are not available for all.
Literacy rate is very low that is why not all people are
able to have a decent paying job.
Economic budget is being dragged to helping the less
fortunate people.

MODERN WORLD SYSTEM

➢ Established by Immanuel Wallerstein

➢ "multicultural territorial division of labor in which the
production and exchange of basic goods and raw
materials is necessary for the everyday life of its
inhabitants."

WORLD SYSTEM

"a world-system is a social system, one that has boundaries,

structures, member groups, rules of legitimation, and
coherence. Its life is made up of the conflicting forces which
hold it together by tension and tear it apart as each group
seeks eternally to remold it to its advantage. It has the
characteristics of an organism, in that is has a lifespan over
which its characteristics change in some respects and remain
stable in others… Life within it is largely self-contained, and
the dynamics of its development are largely internal"

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LEC 03: MARKET INTEGRATION
MARKET INTEGRATION
➢ Process by which economies are becoming more
independent and interconnected in terms of commodity
flows including externalities and spillover of impacts
(Genschel and Jacktenfuchs, 2017).
2 KINDS OF MARKET INTEGRATION (GROSSMAN AND HART,
1986)
1. Horizontal – happens when a firm gains control of
other firms performing similar marketing functions at
the same level in the marketing sequence
2. Vertical – when one company owns the operations and
products from one stage to the other along the supply
chain.
INTERNATIONAL FINANCIAL INSTITUTIONS (IFIS)
➢ Are institutions that provide support through loans or
grants and technical advices to promote a country’s
economic and social development (Bhargava, 2006:393)
Also includes:
International Monetary Fund (IMF)
Multilateral Development Banks (MDBs)
➢ Provide financial and technical services and products not
for profit but for overall economic and social
development.
➢ Work with private sector for investment and policy
reforms to promote private sector expansion
4 KEY ISSUES WITH IFIS
1. Legitimacy – majority of its shareholders and policy
making powers lie with powerful, rich nations.
leadership roles in these powerful IFIs are critical in
steering the institution’s policy and programs, including
its reforms.
2. Effectiveness – different sectors have questioned the
effectiveness of the IFIs’ development assistance
programs and policy advices.
Social safeguards to ensure human rights, community,
and environment well-being need to be instituted.
3. Support Conditionality – loans to provide capital for
development initiatives of countries.
GNED 07 – The Contemporary World
However, it does not come for free and comes with
certain conditions that the barrowing country has to
meet.
4. Financial Capacity and Sustainability – IFIs income base
has reduced compared to what it was before although
the demand from IFIs are increasing particularly in
contributing toward regional and global development
initiatives.
GLOBAL ECONOMY
SUMMARIZED HISTORY OF THE GLOBAL ECONOMY
✓ Modern capitalist world economy flourished between
16th to 18th centuries.
✓ The start of the modern global trade leading to 1914 was
considered the first period of globalization.
✓ From WW2 to the late 1990s, modern international
economic enabling architecture was established.
✓ Mexico crisis – created a negative spillover effect on US,
Europe, Portugal and Spain
✓ Rise of Asian economy and advancement in digitalization
and technology.
✓ Advent of modern internet, WTO establishment, formal
entry of China into the trading system
GLOBAL CORPORATIONS
➢ Private institutions that produce or manufacture
goods, products, and services for a more expanded
market usually at the reach of regions or the world.
➢ Transnational Corporations (TNCs) have more
complex setting. (given freedom to develop its own
product lines and marketing)
➢ Multinational Corporations (MNCs) have a more
home or country base and focus more on exporting
their products and services.
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LEC 04: THE GLOBAL INTERSTATE SYSTEM REGIONAL COMMISSIONS

Global Interstate System Group of officials from different countries

In charge of making laws to promulgate certain
It is an institutional arrangement of governance that rights for economic and social development.
addresses regional or global issues that go beyond the
scope of a nation-state (Chase-Dunn, 1981) WORLD BANK
“System of unequally powerful and competing states in
International financial institution that provide loans
which no single state is capable of imposing control on all
(IRDB, IDA, IFC, MIGA)
others. These states are in interaction with one another
in a set of shifting alliance and wars and changes in
INTERNATIONAL KEY ROLE/S
relative power of states us=psets any temporary set of
ORGANIZATIONS
alliances, leading to a restructuring of the balance of
1. International Monetary Looks at the stability of the
power.” Fund (IMF) international monetary
system by monitoring global
EFFECTS OF GLOBALIZATION ON GOVERNMENTS
economy, ends to countries,
➢ National and local policies are not only based on and provides policy and
technical advisory functions to
local context but also international and global
members.
realities. (ex. Montreal Protocol On substances that
2. World Trade Regulates international
deplete Ozone layer)
Organization (WTO) trades, ensures smooth flow
➢ Local government attracts major global investors in of trade, and provides forum
their community. This could create jobs for the local for negotiations for trade
people and generate income for local businesses. agreements among countries
➢ Entails converting tracks of agricultural land into an and regions of the world.
industrial zone. 3. World Health Responsible for global
➢ The global corporation demands lower taxes and Organization (WHO) researches on medicines and
lower income wage in order to finalize their vaccines including the World
investment in the area. Health Report and Survey.
4. Organization for 35 members countries aim to
INSTITUTIONS THAT GOVERN GLOBALIZATION Economic Cooperation stimulate economic progress
and Development (OECD) and world trade by providing a
➢ With the growing globalization, the governance of platform to compare a policy
global relations goes beyond nation-state experiences and identify good
government’s scale and scope are limited in practices in domestic and
addressing regional and global issues like climate international economic
change, cybercrime, and global financial crises. policies and programs of its
members.
NON-STATE ACTORS 5. International Labor Deals with labor problems and
Organization (ILO) international labor standards
✓ NGOs and social protection for
✓ Advocacy networks workers.
✓ Voluntary associations 6. Food and Agriculture Leads international efforts to
✓ Interest groups Organization of the defeat hunger, eliminate food
United Nations (FAO) insecurity and malnutrition,
GLOCALIZATION and increase resilience of
livelihoods and food.
The shift of authority to actors above and below the 7. UNESCO Contributes to peace and
state. security by promoting
Internal globalization international collaboration
through educational,
UNITED NATIONS scientific, and cultural
reforms.
✓ 192 member states
✓ Facilitator of global governance

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8. International Civil For regulations of
Aviation Organization international air transport;
(ICAO); shipping and prevention of
International Maritime pollution at sea; developing
Organization (IMO); standards on ICT;
International international intellectual
Telecommunication property rights standards.
UNION (ITU); The World
Intellectual Property
Organization (WIPO)

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LEC 05: CONTEMPORARY GLOBAL GOVERNANCE
GLOBAL GOVERNANCE
➢ Collective efforts to identify, understand, and address
worldwide problems that go beyond the problem-
solving capacities of states. (Weiss, 2010)
➢ It is the combination of informal and formal ideas,
values, rules, norms, procedures, practices, policies,
and organizations that help actors identify, understand
and address transboundary problems
➢ A gross disconnect is apparent between the nature of a
growing number of contested global problems and the
political structures for international problem-solving
and decision-making.
THE UNCERTAINTY OF THE SOVEREIGN TERRITORIAL STATE
OR NATION-STATE
Post-American World – US retreats and the rest of the
world advances.
Most western countries lived under a kind of nation-
state and has become the universal framework of social
development.
Elements of Nation-State
a. Continuous and broken territory.
b. Sovereign territory
c. Monopoly of law and powers of coercion
d. National state rules its citizens directly
e. Direct government and administration of
inhabitants by the central authorities.
f. The state is considered to represent the people.
g. The citizenry ought to form a homogenous
population.
Supranational forces have weakened the state in 3 ways:
1. Creation of supranational economy.
2. Rise of regional or global institutions.
3. Territorial borders had been made largely irrelevant by
technological revolution.
NON-STATE ACTORS
The rise of non-state actors created a new landscape
and new architectures of global governance wherein
multisector partnerships are present.
The loose of structures of these organizations allow
more efficient courses of action than the bureaucracies
of nations/states.
GNED 07 – The Contemporary World
THE UNITED NATIONS
An International Government Organization (IGO)
playing a vital role in the world’s affairs.
Designed to make an enforcement of international law,
security, human rights, economic development, and
social progress.
5 BRANCHES OF UN
1. UN GENERAL ASSEMBLY
• Main decision-making and representative assembly.
• Composed of all member states and headed by a
president elected by the members.
Tijjani Muhammad-Bande Nigerian diplomat, academic and
political scientist. He is the President of the United Nations
General Assembly since 17 September 2019. He previously
served as Vice President from September 2016.
for update: 2020 UN president: Volkan Bozkır of Turkey
2. UN Security Council
Can authorize the deployment of UN member
states’ militaries
Can mandate cease-fire during conflicts
Can impose penalties on member states if they do
not comply with the mandates.
5 permanent members:
a. China
b. France
c. Russian Federation (2020)
d. United Kingdom
e. United States of America
10 non-permanent members elected for 2-year terms by the
General Assembly
3. International Court of Justice
Can settle, according to international law, legal
disputes between States and give opinions on legal
questions brought in UN.
It is composed of 15 judges who serve nine-year
term
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In Conclusion Global governance is the capacity within the

international system at any given moment to provide
government-like services and public goods in the absence of a
world government.

4. The Economic and Social Council

Assists the UN General Assembly I promoting
economic and social development.

5. The Secretariat
Headed by the Secretary-General
Provides studies, information, and other dates when
needed by other UN branches for their meetings

The G-20+ and the New Framework for Global Cooperation

Aims to preserve global economic stability and to

ensure that the global economy continues to grow
inclusively to benefit all nations and peoples
equitably.

Integral functions:

Facilitate multi-stakeholder, cross disciplinary

dialogue and policy solutions.
Promote inclusive economic reform.
Enable global economic crisis response

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LEC 06: GLOBAL DIVIDES
Global disparities, often due to stratification due to differing
economic affluence but can also be in other aspects of
globalization
SOCIAL STRATIFICATION
The phenomenon of segregating, grouping, and ranking
people based on differences in class, race, economic status,
and other categories.
PERSPECTIVES IN GLOBAL STRATIFICATION
MODERNIZATION THEORY
suggests that all societies undergo a similar process of
evolution – from agricultural, industrial, and
urbanized and modern – that is motivated and
catalyzed by internal factors.
Well-functioning bureaucracy that will ensure welfare
among citizens is a necessary infrastructure to
achieve development.
Assumes that when these internal sources of
development – e.o., education, market-driven
economy, and political infrastructures – are present,
any society will progress and poverty will be resolved
DEPENDENCY THEORY
Suggest that countries are either “core; or
“peripheral” such that resources tend to floe from
peripheries to the core.
First, Second, and Third world
➢ US and Soviet Union entered a Cold War after
WWII.
➢ Cold ware yielded 2 chief political factions: Western
Bloc (US, NATO); Eastern Bloc (Russia, Albania,
Poland, Bulgaria, Romania, Czechoslovakia,
Hungary, and Afghanistan)
Teng Hsiao-Ping – vice – premier of the People’s Republic of
China.
➢ Noted the distinction among three worlds: “The
United States and the Soviet Union make up yhe
First World; The developing countries in Asia, Africa,
Latin America and other regions make up the Third
World; developed countries between the two make
up the Second World.
The Global South
“The global south, therefore, continues to be imagine and re-
imagined by those who dominate it even as movements from
GNED 07 – The Contemporary World
below reshape these constructions through resistance.” –
Lisandro Claudio Locating the Global South
GLOBAL NORTH – may refer to countries that are
geographically in the northern hemisphere or to countries
that are developed.
GLOBAL SOUTH – may refer to countries that are
geographically in the southern hemisphere or to countries
that are developing.
Aviation Technology – made it possible for humans to be
more connected as it speeds up transfer from one country to
another.
Internet Technology – brought undefeatable access to
information
Defining Global North and Global South
➢ The term Global North is used to refer to countries
that are economically developed, while the term
Global South is used to pertain to countries that are
economically struggling.
➢ Global South countries are generally oppressed and
deprived in terms of human development.
THE RISE OF GLOBAL SOUTH: The Latin America Experience
Latin America – group of countries in South America which
share the same language and culture.
➢ Comprises 13 percent of the earth’s land surface are
(Sawe, 2018)
Economic Conditions in the Latin Americas
ALIANZA DE PACIFICO MERCOSUR
“Pacific alliance” “Southern Common Market”
Founders: Chile, Colombia, Founders: Argentina, Brazil,
Mexico, and Peru Paraguay, and Uruguay
Nature: Inclusive integration Nature: Regional integration
process process
Goal: participatory Goal: common space for
integration for free mobility business generation and
in trade, inclusive and investment opportunities
equitable economic.
➢ The global South is a changing concept. For the
most part of the modern world the Global South has
been associated to poverty and dependency, some
of these countries are gaining momentum toward
achieving their economic and political goals.
➢ The phenomenon of the Global South encourages
us to reflect on the affordances and the challenges
that globalization poses for people across economic
strata.
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LEC 07: ASIAN REGIONALISM REGION AS AN ACTING SUBJECT – group of nations

REGIONALISM
Strengthened collective identity in a conglomerate of
nations occupying a particular geographical area or
aiming at shared goals
Dynamics in International Relations
concerned about peace, welfare, and prosperity of its
people.
ASIAN REGIONALISM
ASIA – largest and most populated continent in the world.
Separated from Europe by the Suez Canal from Africa
and by the Bering Strait from the North America

Resolving Regional Conflicts – pave ways for the ASIAN REGIONS

emergence of peacekeeping initiatives and regional trade
COASTAL SOME OVERVIEW
organizations.
REGIONS COUNTRIES
Emergence of Regional Cooperation – to achieve Central Asia Kazakhstan, Important in the
political and economic goals. Kyrgyztan, Silk Road trade,
Nation’s Commitment to their Cultural Identities – shift Tajikistan, the historical
of power from the West to groups of nations with similar Turkmenistan, economic and
cultural identity Uzbekistan cultural exchange
between Rome
Regionalism: A Necessary Phenomenon and China
East Asia China, Hong Cradle of Ancient
Global problems remained to be tackled in regional
Kong, Japan, civilizations such
spheres. Macau, as the Chinese
Collapse of alliances. Mongolia, North and Japanese
Attempt for resilience. Korea, South civilizations as
Growing insecurity within particular regions re quire Korea, and well as the
solutions. Taiwan Mongol Empire
South Asia Afghanistan, High population
2 Faces of Regionalism Bangladesh, density; cradle of
Bhutan, India, the Indian
OLD REGIONALSIM NEW REGIONALISM Pakistan, Sri civilization
Bipolar such that it was Multipolar as it is open for Lanka, The
produced in a schism multilateral engagement Maldives, Nepal
between opposing political and collaborations among Southeast Asia Brunei, Found in the Asia
alliances countries Cambodia, Pacific Ring of
Impose by the superpowers Spontaneous and sought Indonesia, Laos, Fire; historically
voluntarily by constituents Malaysia, the goal
Secures economic security Open in as much as it is Myanmar, destination of the
within alliances multipolar Philippines, European
Specific to economic and Comprehensive and Singapore, expeditions for its
political objectives multidimensional Thailand, Timor spices
Focused only on nation- Involves non-state actors Leste, Vietnam
states Western Asia Armenia, Many are arid
(Middle East) Azerbaijan, desert regions
Bharain, Cyprus, but serve as
Degrees of Regionness Georgia, Israel, gateways and
Iran, Iraq, Jordan, routes to major
REGION AS A GEOGRAPHICAL UNIT – can be construed
Kuwait, Lebanon, bodies of water
as a place/ physical environment. Oman, Palestine, in the world
REGION AS A SOCIAL SYSTEM – can be construed as a Qatar, Saudi
conglomerate of people occupying a particular space and Arabia, Syria,
possessing unique dynamics of interaction. Turkey, United
REGION AS ORGANIZED COOPERATION – can be Arab Emirates,
construed as a group of nations who agree to take part Yemen
and form a formal organization.
REGION AS CIVIL SOCIETY – a network of cultural and
social linkages among countries.
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“Asia learned the hard way in 1998 that the absence of

regional cooperation can cost an economic misfortune.”

~Sri Mulyanilndrawati

(Minister of Finance, Republic of Indonesia)

Factors of Integration

Enhanced dialogue between citizens of various

nations – growing tourism activities in the regions.
Expanding Intraregional Trade and Investments –
closer financial markets and interdependent
economies.
Increased Connectivity – regional infrastructure
projects

Benefits of Asian Integration

Members can integrate based on their capacity.

It opens up for collaboration and merging of
smaller groups.
It is responsive to business and open markets.
Harness the strengths of diverse economies
Provides platform for connecting financial markets

Challenges of Asian Integration

The need to establish compatible product

standards
The need to establish guidelines that buffer
financial contagion and ensure compatible
financial regulations
The need to coordinate macroeconomic policies
The need to manage cross-border environmental
and social policies

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