Handout for GEC 003 (The Contemporary World)
Lesson 1: Definition, Origin, and History of
Globalization
Globalization – (Manfred Steger) the expansion
and intensification of social relations and
consciousness across world-time and across world
space.
Expansion refers to the creation of new social
networks and multiplication of existing connections
that cut across traditional political, economic,
cultural and geographic boundaries.
Intensification refers to the expansion, stretching,
and acceleration of the aforementioned networks.
Metaphors of Globalization:
1. Solid - rigid
i) Natural – ex. Mountain ranges, oceans
ii) Man-made – ex. Berlin Wall, Great Wall
of China
iii) Imaginary – ex. National borders
2. Liquid – increased fluidity
Five Perspectives on the Origin and History of
Globalization:
1. Hardwired – the human need to make our
lives better made Globalization possible
2. Cycles – Globalization follows a long-term
cyclical process
3. Epoch – the origin of Globalization could be
traced from what are called “waves”
4. Events – specific events in history could be
considered as the start of Globalization
5. Broader, More Recent Changes – the events
during the latter half of the 20th Century could
be considered as the start of Globalization
Lesson 2: Economic Globalization
Economic Globalization – (IMF) a historical
process representing the result of human innovation
and technological progress.
Prepared by: Mr. Justin Paul D. Gallano
Faculty Member – College of Arts, T.I.P. Manila
PRELIM
Silk Road – the first international, but not global,
trade route. Not global because the Americas were
not included.
Manila-Acapulco Galleon Trade – traced back to
1571. Eastern goods (spices, tea, silk, etc.) were
shipped by galleons via the Pacific Ocean to
Acapulco. In turn, South American silver is shipped
to Manila as payment. The first true global trade
route because of ocean routes, and it included the
Americas.
Mercantilism – from 16th to 18th century. Countries
aimed to sell more goods than other countries in
order to boost their income. Processing of raw
materials to finished products and sell at a higher
price.
Gold Standard – the financial system establishing a
common basis for currency prices and a fixed
exchange rate system – all based on the value of gold.
Because of World War I, countries were forced to
abandon the Gold Standard to increase their money
supply.
Great Depression – a global financial crisis that
happened during the 1920s to 1930s. Solved through
Pres. Franklin D. Roosevelt’s “New Plan.”
Keynesian Economics – economic crises do not
happen because countries do not have money, but
because money is not spent – meaning, it is not
moving. Governments should reinvigorate
economies by infusing of capitals (stimulus) to
kickstart the economy – increasing the purchasing
power of people, and eventually demand.
Bretton Woods System – July 1944 at the United
Nations Monetary and Financial Conference (Bretton
Woods, New Hampshire, USA). Led by Harry
Dexter White and John Maynard Keynes. Value of
currencies shall be linked to US Dollar, and the US
Dollar shall be pegged to the value of gold ($35.00
per ounce fixed). Established two financial
institutions, namely IMF (International Monetary
Fund) and IBRD (International Bank for
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Handout for GEC 003 (The Contemporary World)
Reconstruction and Development), later renamed to
WB (World Bank). Ended on August 15, 1971.
IMF – intended to be the lender of last resort to
prevent countries from spiraling into credit/economic
crises.
IBRD (WB) – responsible for funding postwar
reconstruction projects.
Neoliberalism – (Friedrich Hayek and Milton
Friedman) answer to the problems caused by the
dependence on Keynesian Economics. According to
them, Keynesian Economics will cause inflation but
not necessarily increases the supply/production.
1970s oil embargo – economic sanction by members
of OAPEC (Arab members of OPEC) against US and
its allies due to American support on Israel during the
Yom Kippur War
Stagflation – portmanteau of stagnation (decline in
growth and employment) and inflation (rise of prices
of goods)
Washington Consensus – set of policies adopted
centering on neoliberalism. Has two parts – first,
reduction of public spending to pay off debt and
second, privatization of government owned and
operated corporations. US President Ronald Reagan
adopted this (especially reduction of public
spending), along with UK PM Margaret Thatcher.
Referred to as a “shock therapy.” Also adopted in
Russia after the fall of USSR – led to oligarchy.
2008 Global Financial Crisis – September 2008,
caused by the fall of Lehman Brothers (investment
bank). Seen as the result of the flaws of
neoliberalism. Caused debt problems in Europe
(Greece, Portugal, and Iceland). US recovered
quickly by reverting to Keynesian-style stimulus
programs under Obama.
Economic Globalization Today – developed
countries tend to be protectionist (US sugar, Japan
rice). Rise of nationalism (President Donald J. Trump
of USA). Also, economies are too integrated.
Prepared by: Mr. Justin Paul D. Gallano
Faculty Member – College of Arts, T.I.P. Manila
PRELIM
Race to the Bottom – countries deliberately
lowering the labor standards and wages to lure
investors seeking cheap labor for higher profit. Also
includes issues with the environment.
Lesson 3: Political Globalization
Internationalization – the phenomenon
characterized by the deepening of interactions
between states.
International Organization - international
intergovernmental groups primarily made up of
nation-states or member-states.
Attributes of Global System:
1. Countries/states are independent and govern
themselves.
2. The countries interact with each other
through diplomacy.
3. International Organizations (like UN)
facilitates the interactions of states.
4. International Organizations take on lives of
their own.
Difference of a Nation from a State:
Nation – focuses on the “imagined community” that
is focused on culture, language, beliefs, etc.
State – a political entity.
• A state could be composed of multiple
nations (ex. United Kingdom – English,
Welsh, Scotts, and Northern Irish)
• Also, a nation could be distributed to multiple
states (ex. Korean Nation – North Korea
(DPRK) and South Korea (ROK))
Attributes/ Elements of a State:
1. Population – the citizens
2. Territory
3. Government
4. Sovereignty (both internal and external)
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Handout for GEC 003 (The Contemporary World) PRELIM
Treaty of Westphalia (1648) – a set of agreements Principle of Self-determination – the belief that
to end the Thirty Years’ War between major states had a right to a free, sovereign government.
continental powers of Europe. Parties to the Treaty
League of Nations – predecessor of UN. US did not
recognized that countries should have complete
participated due to the fierce opposition of US
control over their domestic affairs and swore not to
Senate. Helpless during the onset of World War II.
meddle in each other’s’ affairs (concept of
Gave birth to task-specific international
sovereignty).
organizations like the World Health Organization
Napoleon Bonaparte – first major challenge of the (WHO) and the International Labor Organization
Westphalia system. Believes in the principles of (ILO).
French Revolution (liberty, equality, fraternity).
Socialist Internationalism:
Launched the Napoleonic Wars (1803-1815).
Defeated by Anglo (UK) and Prussian armies in the Karl Marx – German philosopher, critic of Mazzini.
Battle of Waterloo, 1815. Believed that the true form of internationalism
should reject nationalism, and give focus instead on
Napoleonic Code – implemented on the occupied
economic equality. He divided the world into
countries of Napoleon. Forbade the birth privileges,
classes, not by states. Bourgeois (capitalist owner of
encouraged freedom of religion, and promoted
means of production) and Proletariat (laborers,
meritocracy in government service.
those who do not own the means of production).
Concert of Europe/ Metternich System (after
Socialist International (SI) – union of European
Klemens von Metternich) – after the defeat of
socialist and labor parties established in Paris in
Napoleon, royal powers created a system that, in
1889. Achieved the declaration of May 1st as Labor
effect, reinstated the Westphalian System. Restored
Day, 8-hour workday, and the International
the monarchical, hereditary, and religious privileges.
Women’s Day. Collapsed during World War I.
Lasted from 1815-1914 (dawn of World War I).
Czar/ Tsar Nicholas II – Russian leader ousted
Liberal Internationalism:
during the Russian Revolution of 1917.
Immanuel Kant – he likened the states in a global
Bolshevik Party – led by Vladimir Lenin. Replaced
system to people living in a given territory.
the government of Tsar Nicholas II with a
Advocated for a World Government.
revolutionary government and called the new
Jeremy Bentham – coined the word “international.” government as the Union of Soviet Socialist
Promoted the creation of international law. Republics (USSR).

Giuseppe Mazzini – Italian patriot, advocated for Communist International – (Comintern)

the unification of Italian-speaking mini-states.
Communist Information Bureau – (Cominform)
Believed in Republican system and proposed a
system of free nations that cooperated with each
other to create an international system. Highly
Lesson 4: The United Nations
influenced the thinking of President Woodrow
Wilson. International Organizations (IO) – refers to the
international intergovernmental organizations or
President Woodrow Wilson – lead advocate for the
groups primarily made up of member-states or
creation of the League of Nations
nation-states.

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Prepared by: Mr. Justin Paul D. Gallano
Faculty Member – College of Arts, T.I.P. Manila © 2020 | NOT FOR SALE
Handout for GEC 003 (The Contemporary World) PRELIM
Powers of International Organizations Regionalism – political process characterized by
economic policy cooperation and coordination
1. IOs have the power of classification
among countries
2. IOs have the power to fix meanings
3. IOs have the power to diffuse norms NATO – (North Atlantic Treaty Organization) –
formed during Cold War between Western Europe
United Nations – primary goal is to prevent another
countries and the US against the threat of Soviet
global war. Divided into 5 organs.
Union. USSR (Union of Soviet Socialist Republics)
Five Organs of UN responded with the creation of its own alliance – the
Warsaw Pact. The members of the Warsaw Pact are
1. General Assembly (GA) – main deliberative
the USSR, and its satellite states in Eastern Europe.
policymaking and representative organ.
Filipino diplomat Carlos P. Romulo was OPEC – (Organization of Petroleum Exporting
elected as president of GA from 1949-1950. Countries) established in 1960 to regulate the
2. Security Council (SC) – consisted of 15 production and sale of oil.
members, 10 elective members and 5
Non-Aligned Movement – established in 1961 to
permanent members (US, UK, Russia, China,
pursue world peace and international cooperation,
and France). Only permanent members have
human rights, national sovereignty, equality,
the veto power. Calls for parties to a dispute
nonintervention and peaceful conflict resolution. Did
to settle the act by peaceful means.
not side on either the First World (Western Europe
3. Economic and Social Council (ECOSOC)
and US) or Second World (USSR and allies).
– principal body for coordinating policy
review, policy dialogue, and
recommendations on social and
environmental issues.
4. International Court of Justice (ICJ) – to
settle legal disputes submitted to it by states
and to give advisory opinions referred to it by
UN organs.
5. Secretariat – consists of Secretary-General
and the staff members who carry the day-
today work of UN mandated by the GA and
other organs.

Lesson 5: A World of Regions

Regions – a group of countries located in the same
geographically specified area, or an amalgamation of
region to regulate and oversee flows and policy
choices.
Regionalization – regional concentration of
economic flows

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Prepared by: Mr. Justin Paul D. Gallano
Faculty Member – College of Arts, T.I.P. Manila © 2020 | NOT FOR SALE