THE CONTEMPORARY WORLD

SUBJECT
INTRODUCTION: GLOBALIZATION
Globalization is the process by which
the world, previously isolated through
physical and technological distance,
becomes increasingly interconnected.

It is manifested by the increase in

interaction between people around the
world that involves the sharing of ideas,
cultures, goods, services, economic,
political, cultural, ideological,
investment in environmental and
processes aided by information
technology.
 GLOBALIZATION: A CONTESTED
CONCEPT
Globalization first appeared in the 1940s, but
did not gain widespread traction until the
1990s.
It is sometimes mistaken for an unstoppable
juggernaut ‘Americanizing’ the world.
However, a more nuanced understanding of the
interactions between the local, national,
regional, and global. Indiscriminate use of
the word ‘globalization’ is confusing.
GLOBALIZATION: A CONTESTED
CONCEPT
Globalization is a set of social
processes that lead to the social
condition of globality, through the
growing consciousness of global
connectivity.
There is no consensus on exactly what
processes constitute globalization, but
common themes include the creation
of networks, expansion of social
relations, and the acceleration of
social exchange.
 Globalization and history: is
globalization a new phenomenon?
Globalization is commonly thought of as a new
phenomenon, but contact between diverse
individuals is not new.

It began when prehistoric tribes settled and

were able to outmuscle wandering tribes.
The premodern period saw technological
advances that allowed trade and
communication to flourish.
Globalization and history: is
globalization a new phenomenon?
The early modern period saw the birth of
capitalism and regional markets.
The modern period saw the Industrial
Revolution provide massive advances in
technology at the expense of the
environment.
The contemporary era is an era of
convergence, with people coming together
through deregulated economic and ICT
systems.
3 components of economic globalization

Academic literature commonly

subdivides globalization into three
major areas:

1. Economic globalization
2. Cultural/social globalization
3. Political globalization
 I. Economic globalization

It refers to the widespread international

movement of goods, capital, services,
technology and information.
Economic globalization primarily comprises
the globalization of:
1. production 5. Organizational
2. finance 6. regimes
7. institutions
3. markets 8. corporations
4. technology 9. labour
Economic globalization

The economic globalization is one

most often mentioned in the media.
It is associated with massive
amounts of financial traded daily on
the different stock markets around
the label “NEW ECONOMY”.
 Economic globalization

In order to monitor the economy,

3 economic institutions were created:

1. THE INTERNATIONAL MONITARY FUND

(IMF) --would oversee the
international monetary system;
 Economic globalization

2. The International Banks for

Reconstruction and Development (IBRD
later named the WORLD BANK (WB) --
would provide loans for European
reconstruction but later expanded its
activities to the developing world;
 Economic globalization

The General Agreement on Tariffs and

Trade (GATT, renamed of the WORLD
TRADE ORGANIZATION in 1992) --would
oversee multilateral trade agreements.

• For about 30 years, this system

remained in place and provided
economic stability and prosperity to
Western nations.
The economic dimension of globalization

In the 1980s neoliberalism liberalized financial

transactions.
However, this unstable growth led to the Great Financial
Crash, where banks traded toxic assets without
regulation.
Transnational corporations rival nation-states in economic
power, and have had a profound effect on the structure
and function of the global economy.
The Washington Consensus was drafted to reform
indebted developing countries, but it has thus far rarely
helped countries develop.
The economic dimension of globalization

The economic dimension of

globalization’ explores how the way
people have undertaken economic
production has changed.
The global economic order emerged
after World War II, when the Bretton
Woods Conference laid the foundations
for the IMF, World Bank, and WTO.
II. CULTURAL GLOBALIZATION

Cultural Globalization refers to the

rapid transmission of ideas,
meanings, and values and cultural
products across around the world in
such a way as to extend and
intensify social relations.
CULTURAL GLOBALIZATION

This process is marked by the common

consumption of mono-cultures that have been
diffused by the Internet, popular culture media,
and international travel, entertainment
transnational marketing of particular brands and
international tourism – that transcends local
cultural traditions and lifestyles, and that shapes
the perceptions, aspirations, tastes and everyday
activities of people wherever they may live in the
world’.
CULTURAL GLOBALIZATION

1. MIGRATION is an important aspect of cultural

globalization.
This process has been going on for several
centuries, with languages, religious beliefs, and
values being spread by military conquest,
missionary work, and trade.
However, in the last 30 years, the process of
cultural globalization has dramatically
intensified due technological advances in both
transportation and communications technology.
CULTURAL GLOBALIZATION

THE GLOBALIZATION OF FOOD is one of the most

obvious examples of cultural globalization – food
consumption is an important aspect of culture and
most societies around the world have diets that
are unique to them, however the cultural
globalization of food has been promoted by fast food
giants such as McDonald’s, Coca-Cola and Starbucks.
The spread of these global food corporations has
arguably led to the decline of local diets and
eating traditions.
CULTURAL GLOBALIZATION

2. THE GLOBALIZATION OF SPORT is

another fairly obvious example of cultural
globalization – think of all the international
sporting events that take place – most
notably the World Cup and The Olympics,
and Formula 1, which bind millions
together in a shared, truly global, ‘leisure
experience’.
CULTURAL GLOBALIZATION

3. CONVERGING GLOBAL CONSUMPTION PATTERNS – today

you can go to pretty much any major city in the world and
share in a similar ‘consumption experience’.
Also, more and more people in Asia and South-America
are coming to enjoy high-consumption lifestyles like in
the West – car ownership and tourism are both on the
increase globally for example.
Central to this is the growth of similar styles of shopping
malls, and leisure parks which provide a homogeneous
cultural experience in different regions across the
world.
CULTURAL GLOBALIZATION

HOMOGENEITY comes to a society in a numbers of ways-

ethnically(Japanese), religiously(many Arab nationals),
culturally(Indians), politically(communism) etc.
Study has shown that the most prominent type of
homogeneity is ethnicity, where everybody share similar
physiological characteristics and cultural behavior .
Ethnic homogeneity still strong among many aboriginal
groups in USA, Latin countries, China, Japan, South Asia
and Africa.
CULTURAL GLOBALIZATION

FINANCIAL HOMOGENEITY also exists in many

countries. It was prevalent in many communist
countries-this type of homogenous society is in
decline now-a day.
North Korea is a great example of financial
homogeneity, at extreme level, another good
example is Scandinavian countries, where the
government make sure that every citizen of their
country enjoy high level of living standards.
CULTURAL GLOBALIZATION

THE GLOBAL VILLAGE/ GLOBAL

CONSCIOUSNESS-- Individuals and
families are now more directly
plugged into news from the
outside world – some of the most
gripping events of the past decade
have unfolded in real time in front
of a global audience.
CULTURAL GLOBALIZATION

According to Giddens this means that more and

more people have a more ‘global outlook’ and
increasingly identify with a global audience – for
example, television reporting of natural disasters in
developing countries result in people in wealthier
countries donating money to charities such as
Oxfam to assist with relief efforts. Giddens
developed the concept of ‘Cosmopolitanism’ to
describe this process of an emerging global
identity.
CULTURAL GLOBALIZATION

D ETRADITIONALISATION--In his
classic 1999 text, Runaway World,
Anthony Giddens argues that one
consequence of globalization is
detraditionalisation – where people
question their traditional beliefs
about religion, marriage, and
gender roles and so on.
CULTURAL GLOBALIZATION

GLOBAL RISKS/ GLOBAL RISK CONSCIOUSNESS--Ulrich

Beck (1992) argues that a fundamental feature of
globalization is the development of a global risk
consciousness, which emerges due to shared global
problems which threaten people in multiple countries
EXAMPLES: • the threat of terrorism,
• international nuclear war
• the threat of global pandemics
• the rise of organized crime funded primarily through
international drug trafficking
• the threat of planetary melt-down due to global
warming.
THE CULTURAL DIMENSION OF
GLOBALIZATION
The cultural dimension of globalization’
explores the intensification and expansion of
cultural flows across the globe.
Critics of cultural globalization claim that the
world is being homogenized or
‘Americanized’.
However, advocates say that globalization
reinvigorates niche cultures instead of
eliminating them.
THE CULTURAL DIMENSION OF
GLOBALIZATION
The existence of the global
imaginary is linked to the rise of
global media networks.
These networks are owned by a
small group of transnational
corporations, which can affect
journalistic integrity.
THE CULTURAL DIMENSION OF
GLOBALIZATION

Several different hypotheses exist

about the effects of language
globalization.
Some say that it leads to protection
of native tongues.
On the other hand, some foresee
the rise of a ‘Globish’ language.
III. political globalization

It refers to the growth of the worldwide

political system, both in size and complexity.
It includes:
1. national governments,
2. their governmental and
3. intergovernmental organizations
4. government-independent elements of global
civil society such as:
a. international non-governmental organizations
b. social movement organizations.
The political dimension of globalization

‘The political dimension of globalization’

looks at political arrangements beyond
the nation-state.
Traditional politics harboured an ‘us’
and ‘them’ mentality.
Contemporary globalization has led to a
permeation of those borders.
The political dimension of globalization

The modern nation-state came into being

after the Protestant Reformation,
characterized by centralized government
and self-determination.
The rise of organizations such as the United
Nations has threatened the nation-state,
according to globalization sceptics.
However, national governments still hold
significant powers.
The political dimension of globalization

There has been a rise in the number of

supra-territorial institutions, operating
from the local level all the way to the
global level.
Some commentators ultimately see a
global civil society, although critics
question the feasibility of this.
III. political globalization

One of the key aspects of the political

globalization is the declining
importance of the nation-state and the
rise of other actors on the political
scene.
The creation and existence of the
United Nations has been called one of
the classic examples of political
globalization.
UNITED NATIONS AND ITS ROLE IN GLOBALIZATION

Political globalization
It is an international organization created on
24th October of 1945 when the UN charter
was signed.
MAIN OBJECTIVES ARE:
1. to maintain international peace and security and
2. promoting human rights and global development.
Member states of the United Nations
Political globalization

The United Nations member states are

the 193 sovereign states that are
members of the United Nations (UN) and
have equal representation in the UN
General Assembly and 51 founding
countries.
The UN is the world's largest
intergovernmental organization which is
based in New York (Headquarter).
STRUCTURES: GLOBAL ECONOMY
I. What is Global Economy?

The world economy or global

economy is the economy of the
humans of the world,
considered as the international
exchange of goods and services
that is expressed in monetary
units of account.
Global Economy

Typical EXAMPLES of economic

globalization are the global supply
chains now standard for the
manufacture of many devices,
ranging from cars to smart phones;
the processes surrounding raw
materials, components, and assembly
may take place across multiple
countries.
What is the importance of Global Economy?

Because of its size and interconnectedness,

developments in the US economy are bound to
have important effects around the world.
The US has the world’s single largest economy,
accounting for almost a quarter of global GDP
(at market exchange rates), one-fifth of global
FDI, and more than a third of stock market
capitalization.
It is the most important export destination for
one-fifth of countries around the world.
FOREIGN DIRECT INVESTMENT
Global Economy
Changing Structure:

Since the end of World War II, the

global economy has steadily increased
its trade and financial openness,
enabled in part by the International
Monetary Fund (IMF), the World Bank,
and the General Agreement on Tariffs
and Trade (GATT), now the World Trade
Organization (WTO).
Changing Structure of the Global
Economy
In parallel, colonialism,
with its inherent
constraints on economic
development and its
built-in asymmetries,
collapsed.
Changing Structure of the Global
Economy

As formal barriers to trade

and capital flows declined, a
number of other trends
combined to accelerate the
growth and structural changes
in the developing economies.
Changing Structure of the Global
Economy
THEY INCLUDED:
1. advances in transportation and
communications technology
2. management innovation in
multinational companies
3. a process of learning about doing
business in multiple and diverse
environments
4. and the integration of multinational
supply chains.
Changing Structure of the Global
Economy
The shape of global supply
chains is constantly shifting.
Countries enter and engage
with the global economy at
different times and expand
at different rates.
Changing Structure of the Global
Economy
The early high-growth economies—
Japan, South Korea, and Taiwan—
initially exported labor-intensive
products, then graduated to more
capital-intensive products such as
automobiles and motorcycles, and then
to human capital intensive activities
such as design and technology
development.
Relating to us…

DO CHANGING
STRUCTURE OF THE
GLOBAL ECONOMY
AFFECT THE
PHILIPPINES?
 What kind of economy is the
Philippines?
The Philippines has a mixed economic
system which includes a variety of private
freedom, combined with centralized
economic planning and government
regulation.
Philippines is a member of the Asia-
Pacific Economic Cooperation (APEC) and
the Association of Southeast Asian Nations
(ASEAN).
COMPETING IN GLOBAL ECONOMY
PHILIPPINES:
The economy of the Philippines is the world's 34th
largest economy by nominal GDP according to the
2017 estimate of the International Monetary Fund's
statistics, it is the 13th largest economy in Asia, and
the 3rd largest economy in the ASEAN after Indonesia
and Thailand.
The Philippines is one of the emerging markets and is
the sixth richest in Southeast Asia by GDP per capita
values, after the regional countries of Singapore,
Brunei, Malaysia, Thailand and Indonesia.
NEW INDUSTIALIZED COUNTRY
PHILIPPINES:
The Philippines is primarily considered a
newly industrialized country, which has an
economy in transition from one based on
agriculture to one based more on services and
manufacturing.

A s of 2017, GDP by purchasing power parity

was estimated to be at $1.980 trillion.
PHILIPPINES: a tiger cub in economic
globalization

Primary exports include semiconductors and electronic

products, transport equipment, garments, copper
products, petroleum products, coconut oil, and
fruits.
Major trading partners include Japan, China, the
United States, Singapore, South Korea, the
Netherlands, Hong Kong, Germany, Taiwan and
Thailand.
The Philippines has been named as one of the Tiger
Cub Economies together with Indonesia, and
Thailand.
PHILIPPINES: ECONOMIC TRANSITION
World Bank Forecasts, Selected Asian
Economies

World Bank: Global Economy to Recover in 2017, Led by India,

Philippines, China and Vietnam
STRUCTURES: MARKET
INTEGRATION
What is global market integration?

Global market integration means that

price differences between countries
are eliminated as all markets become
one.
One way to the progress of
globalization is to look at trends how
prices converge or become similar
across countries.
The law of one price

states that the prices of identical security,

commodities or asset traded anywhere that are
exchanged in two or more markets must be the
same regardless of location and currency.
In an efficient market, there must be only one price
for commodities regardless of where they are
traded. Identical goods must have identical
prices.
For EXAMPLE, an ounce of gold must have the same
price expressed in terms of dollars in London as it
does in Tokyo.
The law of one price

The law of one price is a variation of Purchasing

Power Parity that relates to a single
commodity as opposed to a basket of goods.
This theory postulates that the difference in
prices for identical commodities in two
countries is due to the foreign exchange (FX)
rate between the two countries.
MARKET INTEGRATION in 21st century

Globalization—the integration of people

with world markets—is perhaps the most
significant and pervasive economic
development of the late 20th and early
21st Centuries.
It is the subject of a small but growing
body of empirical economic research at
the national and multi-national levels.
MARKET INTEGRATION

In economics research, globalization

means trade integration.
As market liberalization and trade
integration climb to the top of the
economic policy agenda in many
countries, development economists
increasingly focus their attention on
market imperfections that may inhibit
trade and create welfare losses.
MARKET INTEGRATION

As economic integration unfolds,

producers become inserted directly into
global markets on the output side,
through production of exports, and/or on
the input side, through imported
intermediate inputs, technologies, or
factors.
MARKET INTEGRATION: Migration

Migration is the principal mechanism

by which households in less
developed countries (LDCs),
especially in rural areas, become
directly inserted into the global
economy.
MARKET INTEGRATION: Migration

Globalization is not internationalization,

but the effective erasure of national
boundaries-opening the way not only to
free mobility of capital and goods but
also, in effect, to free movement (or
uncontrolled migration) of vast labor
tools from regions of rapid population
growth and the impacts on national
economies could be tragic.
MARKET INTEGRATION: MICROECONOMICS

“MICROECONOMICS OF GLOBALIZATION”
refers also to the myriad ways in which
economic actors also may become
inserted into the global economy
indirectly, through their relations with
other economic agents within local,
regional, and national markets.
MARKET INTEGRATION: MICROECONOMICS

It is the study of the economic

behavior of individuals, households
and firms.
Where macroeconomics looks at the
big picture of the economy,
microeconomics looks at the
individual behaviors that drive
economic processes.
Examples of microeconomics

1. Demand 9. Consumer Choice

2. Supply
10. Consumer Confidence
3. Prices
4. Elasticity 11. Business Confidence

5. Opportunity Cost 12. Information Economics

6. Labor Economics
13. Welfare Economics
7. Competition
8. Competitive Advantage 14. Productivity
Demand
Microeconomics
How demand for goods
is influenced by income,
preferences, prices and
other factors such as
expectations.
Supply
Microeconomics

How producers decide

Law of Supply and
to enter markets, scale Demand
production and exit
markets.
Demand
Demand
falls,
rises,
Supply
Supply
Rises
falls

supply
Prices
Microeconomics
How individuals, households and firms
react to prices and influence prices
with their supply and demand.
For EXAMPLE, the observation that
some customary prices appear to be
sticky in that consumers resist buying
above a particular historically
established price.
Microeconomics

Elasticity
Elasticity is how supply and
demand reacts to change.
For EXAMPLE, a household that
demands less of a good when
the price increases due to the
availability of substitutes.
Microeconomics
Opportunity Cost
The tradeoffs that individuals and firms make
to manage constrained resources such as time,
money, capital and land.

EXAMPLE, you spend time and money going to

a movie, you cannot spend that time at home
reading a book, and you can't spend the
money on something else. Time is
precious
Microeconomics

Labor Economics
humans use to produce goods and
Modeling the supply and demand for services

labor.
focus on human capital (referring to
the skills that workers possess, not
necessarily their actual work).
For EXAMPLE, looking at how
expectations for economic growth
impact the labour participation
rate.
Microeconomics
Competition
Modeling competition in markets.
Three types of competition
1) Direct competitors
2) Indirect competitor
3) Phantom competitors

For EXAMPLE, the use of game

theory to model a price war
between competitors.
Microeconomics
Competitive Advantage
Competitive advantage is the ability of certain
firms to outcompete all competition in a
particular area.
3 Tips to Determine YourCompetitive
Advantage
1. Price
2. Product
3. Customer experience
For EXAMPLE, a sporting goods company with
superior brand recognition and a positive brand
image that can charge premium prices and still
enjoy high demand for its products.
Microeconomics
Consumer Choice
How needs, perceptions and information shape
consumer choices. IT’S YOUR

2 influences on a person’s consumption choice:

1. their income
2. prices of the goods
For EXAMPLE, the idea that consumers
maximize their expected utility of purchases
meaning that they buy the things they expect
to be most useful to them.
Microeconomics
Consumer Confidence
How consumer expectations for the future
influence spending, saving, investment and
labor participation.
Is an economic indicator that measures the
degree of optimism that consumers feel
about the overall state of the economy and
their personal financial situation.
EXAMPLE, When consumer confidence is
high, consumers make more purchases.
Microeconomics
Business Confidence
How producer expectations for the future
influence hiring, capital investment and
supply.
Business confidence index (BCI) -provides
information on future developments,
based upon opinion surveys on
developments in production, orders and
stocks of finished goods in the industry
sector.
3 basic kinds of market integration
Horizontal integration

This occurs when a firm or agency gains

control of other firms or agencies
performing similar marketing functions
at the same level in the marketing
sequence.
This type of integration sometimes
combine agencies to form a union with
a view to reduce their effective number
and the extent of actual competition in
the market.
EXAMPLE OF HORIZONTAL
INTEGRATION

Two or more companies produce the same goods or services

It is also known as horizontal merger
EFFECTS OF HORIZONTAL
INTEGRATION
B u y ing out competitor in a time
bound way to reduce competition.
Gaining larger share of the market
and higher profits
Attaining economies of scale
Specializing in trade
ADVANTAGE OF HORIZONTAL
INTEFRATION
1. Lower cost
2. Higher efficiency
3. Increased differentiation
4. Increased market power
5. Reduced competition
6. Economics of scale
7. Economic of scopes
8. International trade
DISADVANTAGE OF HORIZONTAL
INTEFRATION

1. Destroyed value
2. Legal repercussions
3. Reduced flexibility
3 basic kinds of market integration
VIRTICAL INTEGRATION

Occurs when a firm performs more than one

activity in the sequence of the market process.
Linking together of 2 or more functions in the
marketing process within a single firm or under
a single ownership.
Makes possible to exercise control over both
quality and quantity of the product from the
beginning of the production process until the
products is ready for the consumer.
Reduces the number of middle men in the
marketing channel.
EXAMPLE OF VERTICAL INTEGRATION
diagram
End product--customer
Raw material
EXAMPLE OF VERTICAL
INTEGRATION
Apple Inc. is one of the best-known
companies for perfecting the art of
vertical integration.
The company manufactures its custom A-
series chips for its iPhones and iPads. It
also manufactures its custom touch ID
fingerprint sensor.
The company has also integrated forward
as much as backward.
VIRTICAL INTEGRATION

I. FORWARD INTEGRATION
a firm assumes another
function of marketing which is
closer to the consumption
function.
EXAMPLE: Wholesaler
assuming the function of
retailing.
EXAMPLE OF VERTICAL
INTEGRATION
diagram
VERTICAL INTEGRATION

II. BACKWARD INTEGRATION

This involves ownership or a
combination of sources of supply.
EXAMPLE: when a processing firm
assumes the function of
assembling/purchasing the product
from the villages.
VERTICAL INTEGRATION

III. BALANCED VERTICAL

INTEGRATION
The third type of vertical
integration is a combination of
the backward and the forward
vertical integration
3 basic kinds of market integration
CONGLOMERATION
A combination of agencies or activities not directly
related to each other may, when it operates under
a unified management.
A process whereby a business acquires a substantial
number of other unrelated businesses in order to
form a large and highly diversified corporation.
EXAMPLE: the merger between the Walt Disney
Company and the American Broadcasting Company.
Because a conglomerate merger is one between
two strategically unrelated firms, it is unlikely that
the economic benefits will be generated for the
target or the bidder.
EXAMPLE OF conglomerate
INTEGRATION diagram
REASONS FOR THEMARKET
INTEGRATION
To remove transaction cost
Foster competition
Provide better signals for optimal
generation and consumption
decisions
Improve security of supply
GLOBAL INTERSTATE
SYSTEM
The modern world-system is now a
global economy with a global
political system (the modern
interstate system).
Refers to the relationship between
different state union.
It also includes all the cultural
aspects and interaction networks of
the human population.
IMPORTANCE OF GLOBAL
INTERSTATE
SYSTEM
A hegemon is a core state
that has a significantly
greater amount of
economic power than any
other state, and that takes
on the political role of
system leader.
 GLOBAL INTERSTATE SYSTEM:
The Development of World-Systems

The world-systems perspective emerged

during the world revolution of 1968 and the
anti-war movement that produced a
generation of scholars who saw the peoples
of Global South (then called the “Third
World”) as more than an underdeveloped
backwater.
It became widely understood that a global
power structure existed and that the people
of the non-core had been active participants
in their own liberation.
 GLOBAL INTERSTATE SYSTEM:
The Development of World-Systems
The history of colonialism and decolonization
were seen to have importantly shaped the
structures and institutions of the whole global
system.
A more profound awareness of Eurocentrism was
accompanied by the realization that most
national histories had been written as if each
country were on the moon.
The nation state as an inviolate, pristine unit of
analysis was now seen to be an inadequate
model for the sociology of development.
The World-Systems Theory

World-systems theory is a macro-scale

approach to analyzing the world
history of the mankind and social
changes in different countries.
The definition of the theory refers to
the division of labor, be it inter-
regionally or transnationally.
Currently, the theory divides the world
into the core, semi-periphery and
periphery countries
 GLOBAL INTERSTATE SYSTEM:
The Development of World-Systems

World-systems are whole systems

of interacting polities and
settlements.
Systemness means that these
polities and settlements are
interacting with one another in
important ways – interactions are
two-way, necessary, structured,
regularized and reproductive.
Core nations

Core nations appear to be powerful, wealthy

and highly independent of outside control.
They are able to deal with bureaucracies
effectively; they have powerful militaries
and can boast with strong economies.
Due to resources that are available to them
(mainly intellectual), they are able to be at
the forefront of technological progress and
have a significant influence on less developed
non-core nations.
SEMI-PERIPHERAL NATIONS

These regions have a less developed

economy and are not dominant in the
international trade.
In terms of their influence on the world
economies, they end up midway between
the core and periphery countries.
However, they strive to get into a dominant
position of the core nation, and it was
proved historically that it is possible to
gain major influence in the world and
become a core country.
Peripheral nations

These are the nations that are the least

economically developed.
One of the main reasons for their peripheral
status is the high percentage of
uneducated people who can mainly provide
cheap unskilled labor to the core nations.
There is a very high level of social inequality,
together with a relatively weak government
which is unable to control country’s
economic activity and the extensive
influence of the core nations.
CONCEPT OF GLOBAL GOVERNANCE

Global governance or world

governance is a movement
towards political cooperation
among transnational actors,
aimed at negotiating responses to
problems that affect more than
one state or region.
ROLE OF GLOBAL GOVERNANCE

Trade, climate change and the role of

values in global governance.
The emerging field of global
governance has produced a number of
breakthroughs, as well as failures,
aimed at managing global problems
through the voluntary and ad hoc
cooperation of a diverse range of
international actors.
IS THERE A NEED FOR GLOBAL
GOVERNANCE?
Global governance is necessary because
humanity increasingly faces both
problems and opportunities that are
global in scale.
Today, transnational problems such as
violence and pandemics routinely reach
across borders, affecting us all.
T he most important challenge for
humanity to overcome is that of
existential risks.
IS GLOBAL GOVERNANCE MULTI
FACETED?
Global Governance aims to
prepare professionals to face
global challenges that require
specific legal and economic
competencies, as well as a wide
range of technical knowledge
and skills to manage cultural
mediations.
This is why global governance is
multi-faceted.
What are the forms of global
governance?
Rosenau discusses these six types of
global governance.
They are
1. top-down governance,
2. bottom-up governance,
3. market governance,
4. network governance,
5. side-by-side governance
6. complex web governance.
TOP-DOWN GOVERNANCE

A top-down approach to governance

presents a clear divide between top-level
policy formulation and the subsequent
implementation of these preset goals by
administrators and service providers.
The process of enacting policy is viewed
as an implementation chain where links
must be forged between various
agencies.
Bottom-up governance

The bottom-up implementation approach

initiates with the target groups and
service deliverers, because they find that
the target groups are the actual
implementors of policy.
The top-down implementation approach is
a clear-cut system of command and
control—from the government to the
project, which concerns the people.
Bottom-up governance
DIAGRAM
MARKET GOVERNANCE

Market governance mechanisms (MGMs)

are formal, or informal rules, that
have been consciously designed to
change the behaviour of various
economic actors.
This includes actors such as
individuals, businesses, organisations
and governments - who in turn
encourage sustainable development.
MARKET GOVERNANCE
DIAGRAM
Network Governance

Network governance is "interfirm

coordination” that is characterized
by organic or informal social
system, in contrast to bureaucratic
structures within firms and formal
contractual relationships between
them.
Network Governance
DIAGRAM
COMPLEX Web Governance

Web governance is the process of

maintaining and managing an
online presence in an organized
way.
The idea is to set certain
standards for your website and
hold yourself to them.
COMPLEX Web Governance

That can include both your own

organization’s standards and external
regulations or compliance standards,
such as WCAG 2.1 web accessibility
standards.
The ultimate goal is to provide the best
user experience possible for your
website visitors by ensuring quality,
consistency, accessibility,
searchability, and more.
GLOBALIZATION CAN
BE A GREAT
OPPORTUNITY
- Emmanuel Macron
END…