READING 

2:

Foundations of
Globalization
JOANN CHIRICO.   CHAPTER 3. GLOBALIZATION. PROBLEMS AND PROSPECTS

General Learning Objective:  To understand the foundations of
the global economic, political, and cultural systems.
Specific Learning Objectives:
• Analyze the diffusion of the nation­state from the Treaty of Westphalia to the wave of contemporary nation­
state building;
• Evaluate constitutions in relation to their conformity to global ideals of state structure, function, and the
rights of citizens;
• Assess the role of colonialism in shaping a global political and economic hierarchy  of societies;
• Evaluate the long­term impacts of colonialism and the Cold War on economics and political development;
• Understand the emergence of global culture related to sovereignty, nationhood, human rights,
constitutionalism, liberalism, and rationality;
• Analyze the course of economic globalization from simple patterns of trade to early interdependence in
production and markets;
• Evaluate the relationship between political and economic liberalization;
• Identify the influence of convergence on specific state forms and values in constitution; and
• Assess early attempts of global governance related to the global system of states.
Globalization in Context
Globalization is the integration
and interdependence among
people across societies.
In the early stages of contact
among societies, resources,
products, and ideas were
exchanged through trade and
travel, but this did not constitute
globalization,
because the internal systems of
one society were not dependent
on the other, even though they
were related.
Factors that facilitated the early stages of globalization:

• Decline of religious authority
• Assertions of national sovereignty
• The influence of political and economic liberalization
• Establishment of colonies
• Homogenization of constitutions; and
• Rationalization of institutional structures
Waves of Nationhood
 Waves of Nationhood: The Germinal Phase
• The Treaty of Westphalia

              (Ratification of the Peace of Münster (Gerard ter Borch, Münster, 1648)
Principles of the Westphalia System of States:
The Foundation of Global Governance
• States were all free and equal.
• There was no temporal authority higher than the state.
• States had ultimate authority over the conduct of their internal and external affairs.
• The capacity to exercise rule over a territory bestowed the right to rule – might
makes right.
• Whoever gained or seized power had authority to act as the head of state and enter
into agreements on behalf of the people, regardless of their constitutional standing.
• How a state maintained it power did not reflect on the state’s legitimacy in the view
of the world community.
• The activity of a state outside of its own boundaries and the treatment of individuals
who were not citizens were not expected to conform to the same standards as a
state’s activity within its borders  or the treatment of its own citizens.
• Groups and other non­state actors had no right to contest territorial borders.
 FIRST WAVE
THE TREATY OF
WESTPHALIA

1. Community as the basis of nation

2. Political and religious warfare
3. Treaty of Westphalia
- strengthened the concepts
of nation and sovereignty
- established the foundations
of global governance of the time
 TREATY OF WESTPHALIA

• Removal of secular political power from religious authority

• Hapsburg and Roman Empire were diminished
• Power was decentralized from monarchy
• Religious membership became voluntary
• State membership became mandatory
• Nations gained sovereignty
• Gave shape to an association of states
 IRONIES OF TREATY OF WESTPHALIA

• Recognition as a sovereign depends on the

recognition of other states
• States are required to control their territory
and be willing to participate in a system of
international law. (Donnelley 2007, 250)
 The Rise of the Nation­State and the Principle of Sovereignty
State     : government ­> politics
Nation
Society    Culture
Community
 The history of globalization reveals that nations and states
grew out of warfare.
Through these wars, the Nation became the protector of its
people and national identity became the source of individual
personal identity.
 SECOND WAVE:
INDEPENDENCE OF AMERICAN COLONIES

1. After the Treaty of

Westphalia, the state
model was transposed to
colonized lands.
2. Beginning of the Age of
Exploration (the French,
English, Spanish and
 COLONIALISM IN THE AMERICAS
• In the Americas, the Indigenous North Americans were
treated by the British as other sovereign states and they
set up a plantation system and farm base on slave labor.
• South and Central America primarily colonized by Spain
was used for their mineral and agricultural wealth.
• Resulted to extreme inequality that persists today. Why?
• Independence from colonists in the late 18 th and mid-19 th
led to a democratic republic in the United States.
 COLONIALISM IN ASIA & AFRICA

th
• Started with the Russian incursions in the 16 &
Portuguese incursions in the 17 th.
• In Asia, the Dutch, British and French East Indian
companies competed for control on spices, porcelain,
silks, teas, gems and ivory.
• In Africa, the interest is to establish trading posts and
routes for slave trade.
 COLONIALISM IN ASIA & AFRICA

• The French, English, Portuguese, Spanish, Italian,

Belgian and Dutch drew political borders across the
continents, ignoring the ethnic and religious
identities and geographic boundaries that provided
the basis for nationhood throughout Europe.
 LASTING EFFECTS OF COLONIALISM

• It positioned some countries as sources of resources, cheap labor,

and markets.
• Left a legacy of weak governments run by oligarchies, dictators
and monarchies.
• Neglected Education
• Resentment among indigenous groups occurred in Africa
(Hutu and Tutsi tribe in Rwanda, tribal wars and genocide of
1994 which resulted to the death of quarter a million.)
 COLONIALISM
• Colonization created a politico-economic-system around the
globe, however it was based on forceful domination.
• After WWII colonization in Africa and South East Asia was not
sustainable.
• Colonization violated the Universal Declaration of Human Rights.
• 1960 when UN general assembly adopted the Declaration on the
Granting of Independence to Colonial Countries and Peoples.
• Independence movement occurred.
 SPREADING THE NATION­STATE EAST
• The Third Wave of Nation State Building
• Fall of Russian and Ottoman Empires
• Mustafa Kemal Ataturk led the Turkish war for independence
from 1919 to 1923. He was inspired by ideals of sovereignty
and democracy.
• In Iran and Egypt nationalistic fervor was accelerated by
foreign domination.
• China adopted the nation­state form in the early 20th century.
• Japan adopted the state form with a constitution after their
defeat in World War II.
 EARLY WAVES OF ECONOMIC
GLOBALIZATION:
• Economic systems produce and distribute the goods and
services needed by people to survive which always include a
trade.
• Silk Road resulted to the cultural diffusion from East to West.
• Military exploitation expanded feudal territories and
enriched aristocracies but Feudal economic system did not
require globalization. Why?
 EARLY WAVES OF ECONOMIC
GLOBALIZATION:

• It was the unraveling of the feudal system and growth of

capitalism that propelled economic globalization. (Rise
of merchants)
• Contractual labor began to replace obligatory manual labor
and money was used as a form of exchange.
• Money rather than land became the source of wealth.
 EXPANSION OF MERCANTILE CAPITALISM

• The capitalist system changed the nature of trade and

globalization.
• Seeks to maximize profit
• Trade routes became militarized
• The First multi-national corporations were the Dutch and British
East India companies.
• The capitalist dimension of their enterprises was limited to trade.
 EXPANSION OF MERCANTILE CAPITALISM

• New quest for new forms of profit was critical to the expansion of capitalism.
• New ways of generating profits such as acquiring resources as cheaply as possible,
finding cheap labor and locating where taxes are low and laws lax became possible.
• global capitalist economy
 PLANTING THE SEED OF THE GLOBAL
ECONOMY: 1500S TO 1860S

• Colonialism paved the way for the expansion of economic trade.

• Land inequalities were prevalent and only the few elite and the
colonizers were able to benefit from it. (Brazil & Latin America Africa)
• Proliferation of Tribal wars and dictatorship to ensure control
• Urban became more improved and left the rural area through tax and
rent.
 PLANTING THE SEED OF THE GLOBAL
ECONOMY: 1500S TO 1860S

• Colonies like South Korea, Taiwan, Hong Kong and Singapore

were first to develop due to family structure, hard work and
persistence.
• There is a reverse in Economic status of the colonized
territories which is a reflection on the type of institutions that
were established at the time of colonization.
• Rich to Poor (Brazil, Mexico & India) - Poor to Rich (United
States)
 NEO­COLONIALISM AND COLD WAR
STRATEGIC ADVANTAGE

• Competition and Proxy Wars between the U.S and the USSR
• In exchange of Alliance the superpower will provide economic and
political support (financial favor and military support)
• Provided loans which furthers inequality and poverty
• Supported dictators to gain access to resources and ensure the
communism does not rise.
• Main supplier of arms for dictators (part of the UN security council)
 NATION BUILDING

• The first political achievement of globalization is when the state system blanketed
more of humanity and the world moved closer to integration as a global system of
choices.
• Nation building is an important globalization process as it put nations on a more
equal footing as they acquire the recognition and the capability to interact with
autonomy on the global scene.
• Globalization processes makes national identity and self rule taken for granted
rights.
 NATION BUILDING

• As a result, there are Nationalist movements the arises in response to globalization.

• The indigenous people or the oppressed minorities were demanding for a state and
a home. (The ethno-nationalist movement)
• Membership in the UN has swelled from 5 countries in WWII to 192 in 2006.
 SHAPING THE MODERN STATE

• Due to increasing size and complexity power was

rationalized between the administrative, legislative and
judiciary and it eventually included a constitution.

• Following WWII, UN became the sea of approval for

statehood and by becoming a state it requires to conform on
a set of norms.
 STATES AND HUMAN RIGHTS CONCERNS

• Among the global expectation from a state is its protection to its nation and John
Locke’s philosophy became the basis for rights.

• 1. The first generation of rights established the protection of the individual from
power of the state such as the protection from abuse, oppression, cruel and unusual
punishment, and freedoms for individuals such as freedom of press, assembly and
religion.
• 2. The second generation of rights assures
protection to particular groups such as women,
minorities, the elderly and it provided for things
such as the right to healthcare, social security, and
education.
 THE EVOLUTION OF CONSTITUTIONS

• The constitution institutionalizes the powers and responsibilities of states and citizens.
• Reflection of one’s tradition and heritage.
• The first to be enacted is the U.S constitution (U.S tradition of Local Democracy)
• Constitution has been globalized and it delineates a series of civil, political and
democratic rights.
• Constitutional homogeneity is a significant effect of globalization.
 THE EVOLUTION OF CONSTITUTIONS

• An increase it the embeddedness of the United

Nations Declaration of Human Rights to the
constitution after the influence of the United
Nations.
• Eastern and Middle Eastern governments have
objected the claim of universality due to its
Western Understanding and sympathies.
 ESTABLISHING INTERNATIONAL LAW AND
ORGANIZATION

• The League of Nations and the United

Nations
• Intended to facilitate global governance
through treaties, resolutions , the
activity of its agencies, and the Court of
International Justice.
 LEAGUE OF NATIONS
• Formed by victorious allies of WW1. ()
• Purpose is to settle conflicts, maintain peace, and promote their
collective security.
• Invention of Woodrow Wilson (limited to an Int’l Security Org.)
• U.S did not join, Germany is not eligible (started WW1), Russia is not
eligible (Communist Government)
• Generally ineffective but it advanced international law through a series
of multilateral treaties and conflict resolution.
 THE UNITED NATIONS

• Successor of League of Nations

• Not a world power, super state, world government
and does not act independently on global states.
• It applies the collective measures and the principle
of the sovereign equality of all its members.
 THE UNITED NATIONS

• Its objective is to promote national and international

development, human rights and the global environment.
• Its general assembly is limited only to making
recommendations.
• The International Court of Justice hears cases of disputes
among states only if they agree to.
 System of Structural
Nation-states Homogeneity
of States

Globalization
Democratic
Expansion of
Ideals &
Capitalism &
Reflection of
Diffusion of Ideas
Rights in their
of Liberalization
Constitution
Thank
You