1:00 PM – 3:00 PM / MIDTERM PERIOD

THE CONTEMPORARY WORLD (GECTW)

JOHN MARK H. VILLANUEVA

Lesson 1: GLOBALIZATION IS AN IDEOLOGY.

– it is a system of widely shared ideas, patterned
CONCEPTIONS AND DEFINITION
beliefs, guiding norms, and values and ideals accepted
OF GLOBALIZATION as truth by some groups.
▪ It is about liberalization and global integration of
I. DEFINITION OF GLOBALIZATION
markets.
A. FROM A POLITICAL SCIENCE EXPERT ▪ It is inevitable.
Globalization is a challenge to the nation-state. ▪ Nobody is in charge of it.
▪ Strength of regional blocs. ▪ It benefits everyone (in the long run).
▪ Emergence of global political norms. ▪ It furthers the spread of democracy.
▪ Multilateral and bilateral relations among
nation-states. Globalization is experienced by economists, political
▪ Emergence of corporations.
scientists, and culture experts. They have their own
▪ International laws.
definitions or descriptions of globalization.
B. FROM AN ECONOMIC EXPERT
Globalization means: Globalization is the expansion and intensification of
▪ Fast speed of trade social relations and consciousness across world times
▪ Global economic organizations and world space (Steger, 2014).
▪ Multinational and transnational corporations
▪ Trade blocs
III. ATTRIBUTES OF GLOBALIZATION
▪ Free trade
▪ Privatization
▪ Less tariffs
A. VARIOUS FORMS OF CONNECTIVITY
▪ They are diverse (economic, political, cultural,
C. FROM A CULTURE EXPERT etc.)
▪ They are enabled by various factors, pressures,
Globalization means:
▪ To establish a “global village”.
media, etc.
▪ They are uneven (different degrees of
▪ “Shrinking world”
▪ Cultural imperialism.
interconnections).
▪ Borderless world.
▪ Adoption of other cultures.
B. EXPANSION AND STRETCHING OF SOCIAL
RELATIONS
▪ Regional and international NGOs
II. IS GLOBALIZATION A PROCESS,
▪ Sister-cities mechanism
CONDITION, OR AN IDEOLOGY?
▪ Government associations
▪ MNCs & TNCs
GLOBALIZATION IS A PROCESS
– is a social process that create, multiply, intensify, C. INTENSIFICATION AND ACCELERATION OF
worldwide interdependence (Waters, 2001) SOCIAL EXCHANGES AND ACTIVITIES.
– it denotes processes nestling under one rather • Door-to-door mail delivery to FB messages –
unwieldy epithet. IG, Snapchat, Twitter.
– we also call this a “domino effect.” • Live TV telecast.
• Travel capacities brought about by low airfares.
GLOBALIZATION IS A CONDITION
– it signifies a social condition characterized by thick D. IT OCCURS OBJECTIVELY.
economic, political, and cultural interconnections and • Think about the world.
global flows that make existing political borders and • Associate ourselves with global trends.
economic barriers IRRELEVANT (Steger, 2014). • Sense of responsibility.

GLOBALIZATION IS AN UNEVEN PROCESS.

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 Lesson 2:
THE GLOBAL ECONOMY
I. GLOBALIZATION
▪ It is a worldwide interconnectedness in all
aspects of contemporary social life.
▪ It is a multi-dimensional phenomenon.
▪ Economic dimension is one of the major driving
forces.
FOUR ECONOMIC RESOURCES
▪ Land
▪ Capital
▪ Labor
▪ Entrepreneurial Management
ECONOMIC GLOBALIZATION
▪ It is a historical process.
▪ It is the increasing integration of economies
around the world through movements of goods,
services, and capitals across borders.
▪ The process of making the world economy an
“organic system” by extending transitional
economic processes and by deepening the
economic interdependency among them.
(Szentes, 2003).
II. ATTRIBUTES OF ECONOMIC GLOBALIZATION
1. The Globalization of Trade of Goods and Services.
2. The Globalization of Financial and Capital Markets.
3. The Globalization of Technology and
Communication.
4. The Globalization of Production.
III. ACTORS OF ECONOMIC GLOBALIZATION
A. THE NATION-STATES
▪ For hyper globalists, nation-states ceased to be
a primary economic organization.
▪ People consume highly standardized global
products and services produced by global
corporations in a borderless world.
▪ There are no national products and national
companies.
Peace Of Westphalia (1618-1648)
▪ Established the notion of state as SOVEREIGN.
- Legal equality
- Non-intervention
- A repudiation of supranationalism as
law-making bodies.
B. THE GLOBAL CORPORATIONS
▪ Multinational Corporations
⎯ They have investment in other
countries, but do not have coordinated
product offerings in each country.
⎯ They are more focused on adapting
their products and services to each
individual local market.
⎯ E.g., Jollibee
⎯ They have branches all around the
world, but their control center is coming
from their mother company.
▪ Transnational Corporations
⎯ They are more complex organizations
which have invested in foreign
operations, have a central corporate
facility but give decision making,
research and development, and
marketing powers to each individual
foreign market. (E.g., Toyota Asia)
C. INTERNATIONAL MONETARY SYSTEM (IMS)
▪ Rules, customs, instruments, facilities, and
organizations for effecting international
payments.
▪ Facilitates cross-border transactions
involving trade and investments.
► The Gold Standard
— In the 19th century, the UK, France, USA, Italy,
Germany, and other European nations adopted the
Gold Standard as a fixed exchange rate regime until
the 1930s.
► Bretton Wood Standards
— It adopted the gold-dollar exchange standard.
Various currencies were fixed to the US dollar until
1971.
o International Banks for Reconstruction and
Development
o International Monetary Fund
— If there is a war in the country or the government
officials go into a fight, the value of money will
decrease.
► European Monetary Integration
— Germany, France, Italy, The Netherlands, Belgium,
and Luxembourg created a common market where
goods and services, capital and labor moved freely.
— European Economic Community, 1957.
— European Monetary System, 1979
— European Exchange Rate & Monetary Union, 1992.
— European Central Bank, 1999
— EURO as a reserved currency.
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► International Finance Institutions
— World Bank
— International Monetary Fund
— Asian Development Bank
— African Development Bank
Lesson 3:
MARKET INTEGRATION
I. INTERNATIONAL FINANCIAL INSTITUTIONS
The role of these institutions helps facilitate the global
economy.
They facilitate the lending of money and provide
financial grants to nation-states and global
corporations.
These institutions exist because we are trying to
integrate the market.
A. PRIVATE
▪ Citigroup
▪ Merril Lynch
B. INTERNATIONAL GOVERNMENTAL
ORGANIZATIONS
▪ WORLD BANK. Purpose: to fight poverty.
INSTITUTIONS:
► International Bank for Reconstruction and
Development
⎯ We lend money to states to create
infrastructure that a state needs.
⎯ Lends to governments of middle-income
and creditworthy low-income countries.
► International Development Association
⎯ We help other states by giving them
seminars or what we called “capacity
building”.
⎯ Provides interest-free loans (credits)
and grants to governments of the
poorest countries.
► International Financial Corporation
⎯ Provides exclusive help to the private
sector by financial investments,
mobilizing capitals, and providing
advisory to businesses and
governments.
► Multilateral Investment Guarantee Agency
⎯ Promote direct investments into
developing countries.
► International Center for Settlement &
Investment
⎯ Provides facilities for conciliation and
arbitration of investment.
⎯
▪ INTERNATIONAL MONETARY FUND.
Purposes: to stabilize the economy, restore
sustainable growth, and balance payment
problems.
► Regional Development Banks
⎯ Asian Development Bank
⎯ African Development Bank
II. GLOBAL CORPORATIONS
They are inseparable from the phenomenon of
globalization.
THE THREE PERIODS OF GLOBAL
CORPORATIONS
1. Trade and Exchanges
2. Colonialism and Imperialism
3. American, Japanese, & European Corporations
CONTEMPORARY GLOBAL CORPORATIONS
1. International
a. Importing and exporting products.
b. They do not have investments outside their
home country.
2. Global
a. They are invested in and present in many
companies.
b. Market products & services to each individual
local market.
c. Transnational
⎯ They are more complex organizations which
have interest in foreign operations, have a
central corporate facility but give decision
making, research and development, and
marketing powers to each individual foreign
market.
d. Multinational
⎯ They have investment in other countries, but do
not have coordinated product offerings in each
country. They are more focused on adapting
their products and services to each individual
local market.
I. ATTRIBUTES OF GLOBAL CORPORATIONS
1. They are agents or actors of economic
development.
2. They gain their economic prominence.
3. They set the balance resulting from greater
global wealth inequality, income inequality, lack
of effective workers protection, environmental
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 degradation, and in some cases, threatened
national sovereignty.
4. They are so powerful that they can create a
financial crisis if they want to.
Global corporations have brought global inequality, the
systematic stability and viability of the global financial
system, and there can be a positive and negative
contribution in the contemporary world.
Lesson 4:
GLOBAL INTERSTATE
I. NATION-STATE
STATE
A compulsory political organization with continuous
operations if and in so far as its administrative staff
successfully upholds a claim on the monopoly of the
legitimate use of physical force in the enforcement of
its orders.
NATION
Emphasizes the organic ties that hold groups of people
together and inspire a sense of loyalty and belonging -
i.e., ethnicity, language, religion, and others. (Schattle,
2014)
NATION-STATE
A political community that emanates from civic society
to execute peace legitimately.
• Coercive authority over specific territories (Max
Weber)
• Independent political communities with
governments (Hedley Buff)
• An imagined political community (Benedict
Anderson)
The NATION:
1. Imagined community (e.g., Pacman, Pia
Wurtzbach)
2. Limited (different from religion and geography)
3. Self-govern (Muslims of Mindanao)
PEACE OF WESTPHALIA (1618-1648)
Established the notion of state as SOVEREIGN.
▪ Legal equality
▪ Non-intervention
▪ A repudiation of supranationalism as law-
making bodies
WESTPHALIA VS NAPOLEON BONAPARTE
Napoleonic Code of the French Empire
▪ Forbade birth privileges.
▪ Freedom of religion
▪ Meritocracy in government
CONCERT OF EUROPE (1815-1914)
▪ Sought to restore Europe to the world before
the French Revolution and Napoleon
▪ Austria, Russia, UK (reactionary countries vs.
Napoleon)
Basic Tenets:
1. Return to monarchy.
2. Return of Christian values in Europe.
3. Refusal to accept the Napoleonic Code.
4. Renewed peace in Europe through great
power.
Scholars like Apparudai and Ohmae claimed that
globalization has supplanted the states, but it has not.
There is no global government because the global
government would undermine the sovereignty of
states.
The states are accountable to a host of international
norms and standards, find themselves in subordinate
positions to protect their economy and face a new kind
of pressures of supranational integration and focus of
local fragmentation (Schattle, 2014)
Globalization has not displaced the state.
II. EFFECTS OF GLOBALIZATION ON
GOVERNMENTS
1. Seen as imposing a forced choice upon states
either they conform to the neo-liberal ideas of
free-market principles of deregulation,
privatization, and free trade or run the risk of
being behind.
2. Establishment of economic and political
integrations (e.g., ASEAN)
3. The growth of international law and universal
principles.
4. The rise of transnational activism.
5. Creation of a new communication network.
III. THE IGO
In order to facilitate international connections,
intergovernmental organizations (IGOs) were
established.
Their aim is to bind nation-states and to create strong
economic, political, cultural, educational, and technical
relationships. (e.g., United Nations, ASEAN)
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 • The World Trade Organization (WTO) is an
intergovernmental organization that regulates
international trade.
• The United Nations is an intergovernmental
organization tasked to promote international
cooperation and to create and maintain
international order.
• The North Atlantic Treaty Organization, also
called The North Atlantic Alliance, is an
intergovernmental military alliance between
several North American and European states
based on the North Atlantic treaty.
• The Association of Southeast Asian Nations is
a regional intergovernmental organization
comprising ten southeast Asian states which
promotes Pan-Asianism and intergovernmental
cooperation.
• The Organization of the petroleum exporting
countries is an intergovernmental organization
of 14 nations.
• A supranational union is a type of multinational
political union where negotiated power is
delegated to an authority by governments of
member states.
• The commonwealth of Nations, also known as
simply, the commonwealth, is an
intergovernmental organization of 52 member
states that are mostly former territories of the
British empire.
• The international criminal court is an
intergovernmental organization and
international tribunal that sits in the Hague in
the Netherlands.

GLOBALIZATION GLOBALISM

It refers to the It seeks to understand all the

increase or interconnections of the modern
decline of the world and to highlight patterns
degree of that underlie them.
globalism.

It focuses on the It seeks to describe and explain

forces, dynamism, more than a world which is
and the speed of characterized by a network of
changes. connections that span multi-
continental distance.

It refers to the It seeks to know the basic

dynamic shrinking network.
of world-space It is a relationship between two
and world-time. states.
There are state &
non-state actors.