GEd 104 - Contemporary World
UNIT 1. Introduction to Globalization universal form of morality and law. This with the emergence of
Globalization Concepts, Meanings, Features, and Dimension
Globalization
• is the process in which people, ideas and goods spread
throughout the world, spurring more interaction and
integration between the world's cultures, governments and
economies.
• Is 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.
• Is about growing worldwide connectivity.
• Technolology - one principal driver of globalization
• Is considered a multi-dimensional process
• Suggests a dynamic process of change that results in either
positive or negative development
International Monetary Fund (IMF)
"Globalization is the growing economic interdependence of
countries worldwide through increasing volume and variety of
cross border transactions in goods and services and of
international capital flows and also through the more rapid and
wide diffusion of technology."
Globalization is an expansion, and intensification of social
relations and consciousness across world time and world space.
It is about growing worldwide connectivity
Attributes, Qualities or Characteristics of Globalization
Four (4) characteristics or qualities of globalization:
1. It involves both the creation of new social networks and the
multiplication of existing connections that cut across traditional,
political, economic, cultural, and geographical boundaries.
2. Globalization is reflected in the expansion and the stretching of
social relations, activities, and connections.
3. Globalization involves the intensification and acceleration of
social exchanges and activities.
4. Globalization processes do not occur merely or an objective,
material level but they also involve the subjective plane of human
consciousness.
Historical Periods of Globalization
1.The Prehistoric Period (10000 BCE-3500 BCE)
In this earliest phase of globalization, contacts among hunters and
gatherers - who were spread around the world - were
geographically limited. In this period due to absence of advanced
forms of technology, globalization was severely limited.
2.The Pre-modern Period (3500 BCE-1500 BCE)
In this period the invention of writing and the wheel were great
social and technological boosts that moved globalization to a new
level. The invention of wheel in addition to roads made the
transportation of people and goods more efficient. On the other
hand writing facilitated the spread of ideas and inventions.
3.The Early Modern Period (1500-1750)
In this period, European Enlightenment project tried to achieve a
European metropolitan centers and unlimited material
accumulation which led to the capitalist world system helped to
strengthen globalization.
4.The Modern Period (1750-1970)
Innovations in transportation and communication technology,
population explosion, and increase in migration led to more
cultural exchanges and transformation in traditional social
patterns. Process of industrialization also accelerated.
5.The Contemporary Period (from 1970 to present)
The creation, expansion, and acceleration of worldwide
interdependencies occurred in a dramatic way and it was a kind of
leap in the history of globalization.
Dimensions of Globalization
Six (6) dimensions in globalization: economic, political,
technological, cultural, religious and ecological dimensions.
1. Economic Dimension - refers to the extensive development
of economic relations across the globe as a result of
technology and the enormous flow of capital that has
stimulated trade in both sources and goods.
o Major player in the current century's global
economic order
Huge international corporations (General Motors,
Walmart, Mitsubishi)
o International Economic Institutions (IMF, World
Bank, The World Trade Organization)
o Trading Systems
Major Sources of Economic Growth across Countries
o Property rights
o Regulatory institutions
o Institutions for macro-economics
o Stabilization
o Institutions for social influence
o Institutions for conflict management
2. Political Dimension - refers to an enlargement and
strengthening of political interrelations across the globe.
Political Issues that Surface in this Dimension
o The principle of state sovereignty
o Increasing impact of various intergovernmental
organization
o Future shapes of regional and global governance
3. Cultural Dimension - refers to the increase in the amount of
cultural flows across the globe. Cultural interconnections are
at the foundation of contemporary globalization.
o Individualism and consumerism - the dominant
cultural characteristics of our age
o Hybridization - a constructive interaction process
between global and local characteristics which is
often visible in food, music, dance, film, fashion, and
language.
o Media empires - i.e. Yahoo, Google, Microsoft, and
Disney
o Advertisement
4. Religious Dimension
Religion - is a personal or institutionalized set of attitudes,
beliefs, and practices relating to or manifesting faithful
devotion to an acknowledged ultimate reality or deity.
 • Is the most important defining element of any civilization
as contrasted with race, language, or way of life.
o Jihadist globalism - is a religious response to the
materialist assault by the ungodly West in the rest of the
world.
• Pure form of Islam - destroy all alien influences
imposed on Muslim people
• Political agendas and terrorist tactics
• Christian Empire
Roman Catholic Teaching of Globalization
Eight (8) principles:
1. Commitment to universal human rights
2. Commitment to the social nature of the human person
3. Commitment to the common good
4. Solidarity - responsibility for one another
5. Preferential option of the poor - Theology of the Incarnation
6. Subsidiary - decisions should be made at the lowest level
7. Justice
8. Integral Humanism - concerned with the whole person
Three (3) categories of Justice:
1. Commutative justice
This aims at fulfilling the terms of contracts and
other promises on both personal and social level.
2. Distributive justice
This ensures a basic equity in how both the burden
and the goods of society are distributed and that
ensures that every person enjoys a basically equal
moral and legal standing apart from differences in
wealth, privilege, talent and achievements
3. Social justice
This refers to the creation of the conditions in which
the first two categories of justice can be realized and
the common good identified and defended.
According to catholic teaching, a just society is one which these
forms of justice are assured because they are required by human
dignity.
5. Ideological Dimension
Ideology - is a system of widely shared ideas, beliefs, norms
and values among a group of people.
• Often used to legitimize certain political interests or to
defend dominant power structures
• Connects human actions with some generalized claims
• Globalization - is a social process of intensifying global
interdependence
• Globalism - is an ideology that gives the concept of neo-
liberal values and meanings to globalization.
Major Ideological Claims of Advocates of Globalism:
1. Globalization is about the liberalization and global integration
of markets.
2. Globalization is inevitable and irreversible.
3. Nobody is in charge of globalization.
4. Globalization benefits everyone.
5. Globalization furthers the spread of democracy in the world.
UNIT 2. The Structures of Globalization
I. THE GLOBAL ECONOMY
Economic globalization
• refers to the increasing interdependence of world economies
as a result of the growing scale of cross-border trade of
commodities and services
• According to the International Monetary Fund - 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.
• It also refers to the movement of people (labor) and
knowledge (technology) across international borders.
• Globalization (economic terms) - 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
Two Major Driving Forces for Economic Globalization
1. The rapid growing of information in all types of productive
activities
2. Marketization - a restructing process that enables state
enterprises to operate as market-oriented firms
Dimensions 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
Difference between Economic Globalization from
Internationalization
Economic globalization - is a functional integration between
internationally dispersed activities which means that it is a
qualitative transformation rather than a quantitative change
Internationalization - is an extension of economic activities
between internationally dispersed activities.
International Monetary Systems and Gold Standard
International monetary system (IMS) - refers to a system that
forms rules and standards for facilitating international trade
among the nations.
European Monetary Integration
- Refers to a 30-year long process that began at the end of the
1960s as a form of monetary cooperation intended to reduce the
influence of the US dollar
European Monetary System (EMS) - is a 1979 arrangement
between several European countries which links their currencies
in an attempt to stabilize the exchange rate
• European Economic and Monetary Union (EMU) - an
institution of the European Union (EU), established a
common currency called euro.
Three-pillar financial rescue programs:
1. European Financial Stability Mechanism (EFSM) - is a
permanent fund created by the EU to provide emergency
assistance to member states within the Union.
2. European Financial Stability Facility (EFSF) - is an
organization created by the EU to provide assistance to
member states with unstable economies
• Special purpose vehicle (SPV)
 • managed by the European Investment Bank, a lending
institution.
3. International Monetary Fund (IMF)
International Trade and Trade Policies
International trade - is the exchange of goods, services and
capital across national borders.
Gross Domestic Product (GDP) - is the sum total of services
and goods produced by country per annum.
• Is the only way for many people in many countries to
acquire resources
The two key concepts in the economics of international trade:
1. Comparative advantage
2. Specialization
Trade policies - regulations and agreement of foreign countries
• It defines standards, goals, rules, and regulations that
pertain to trade relation between countries
Focuses of Trade Policy in International Trade
Tarrifs - taxes or duties paid for a particular class of imports or
exports
Trade barriers - measures that governments or public authorities
introduce to make imported goods or services less competitive
than locally produced goods and services
• Are state-imposed restrictions on trading a particular
product or with a specific nation
Safety - This ensures that imported products in the country are of
high quality
Types of Trade Policies
National Trade Policy - safeguards the best interest of its trade
and citizen.
Bilateral Trade Policy - to regulate the trade and business
relations between two nations
International Trade Policy - defines the international trade policy
under their charter like the International economic organizations:
o Organization for Economic Cooperation and
Development (OECD)
o World Trade Organization (WTO)
o International Monetary Fund (IMF)
• The best interests of both developed and developing
nations are upheld by the policies
Trade Policy and International Economy
The following are dependent on globalization:
sound trade policies for market changes,
establishment of free and fair trade practices and
expansion of possibilities for booming international trade
The World Trade Organization (WTO)
- deals with the global rules of trade between nations with the
main function of ensuring that trade flows smoothly, predictably
and freely. It is the only global international organization dealing
with the rules of trade between nations with WTO agreements,
negotiated and signed by the bulk of the world’s trading nations
and ratified in their parliaments at its heart. WTO is viewed as the
means by which industrialized countries can gain access to the
markets of developing count
Global Economy Outsourcing
Outsourcing - is an activity that requires search for a partner and
relation-specific investments
• is a means of finding a partner with which a firm can
establish a bilateral relationship and having the partner
undertake relationship-specific investments so that it
becomes able to produce goods and services that fit the
firm’s
Subcontracting - is a central element of the new economy,
the practice of assigning part of the obligations and tasks
under a contract to another party known as a
subcontractor
Three essential features of a modern outsourcing strategy.
1. Firms must search for partners with the expertise that allows
them to perform the particular activities that are required.
2. They must convince the potential suppliers to customize
products for their own specific needs.
3. They must induce the necessary relationship-specific
investments in an environment with incomplete contracting.
Possible Determinants of the Location of Outsourcing
1. Size of the country can affect the “thickness” of its markets.
2. The technology for search affects the cost and likelihood of
finding a suitable partner.
3. The technology for specializing components determines the
willingness of a partner to undertake the needed investment in a
prototype.
4. The contracting environments can impinge on a firm’s ability to
induce a partner to invest in the relationship.
II. MARKET INTEGRATION
• refers to how easily two or more markets can trade with each
other
• is further used in identifying related phenomenon of market
of goods and services experiencing similar patterns of
increase or decrease in prices of products.
• It may also refer to the movement of prices of related goods
and services sold in a defined geographical location in similar
patterns
• this exists when there are exerted effects that prompt similar
changes or shifts in other markets that focus on related goods
on events occurring within two or more markets.
Types of Related Markets where Market Integration Occurs
Stock Market Integration. This is a condition in which stock
markets in different countries trend together and depict same
expected risk adjusted return
Financial Market Integration. It is an open market economy
between countries facilitated by a common currency and the
elimination of technical, regulatory and tax differences to
encourage free flow of capital and investment across borders
Global Corporation
• Is a business that operates in two or more countries
• Also goes by the name "multinational company"
Historical Periods of Global Corporation

The Finance Function in a Global Corporation
• Capital markets
• Chief financial officers (CFOs)
Three functions can be created by CFOs through exploiting their
internal capital markets:
FINANCING. A group’s tax bill can be reduced by the CFO like
borrowing in countries with high tax rates and lending to
operations in countries with lower rates.
RISK MANAGEMENT. Global firms can offset natural currency
exposures through world wide operations instead of managing
currency exposures through financial markets.
CAPITAL BUDGETING. Getting smarter on valuing investment
opportunities CFOs can add value
Foreign Direct Investment (FDI)
• It is a major driver of extended global corporate
development.
• It is an investment made by a company or individual in one
country in business interests in another country, in the form
of either establishing business operations or acquiring
business assets in the other country, such as ownership or
controlling interest in a foreign company and the key feature
of foreign direct investment is that it is an investment made
that establishes either effective control of, or at least
substantial influence over, the decision making of a foreign
business.
BRICS Economies
Brazil, Russia, India, China and South Africa (BRICS) - is an
acronym for the combined economies
• BRIC (2003) - By 2050, these four economies will be the most
dominant.
• April 13, 2011 - South Africa was added - BRICS
• These five countries were among the fastest growing
emerging markets as of 2011.
• China and India will, by 2050, become the world's dominant
suppliers of manufactured goods and services, respectively
• Brazil and Russia will become similarly dominant as suppliers
of raw materials.
General Agreement on Trade in Services (GATS)
• Is a first multilateral agreement covering trade in services
which was negotiated during the last round of multilateral
trade negotiations, called the Uruguay Round
• provides a framework of rules governing services trade,
establishes a mechanism for countries to make commitments
to liberalize trade in services and provides a mechanism for
resolving disputes between countries
• GATS has similar principle with the General Agreement on
Tariffs and Trade (GATT) that deals with trade in goods.
• The two primary objectives of GATTS:
o to ensure that all signatories are treated equitably
when accessing foreign markets;
o to promote progressive liberalization of trade and
services
III. THE GLOBAL INTERSTATE SYSTEM
Globalization and the Nation-States
State
• a compulsory political organization with a centralized
government that maintains a monopoly of the legitimate use
of force within a certain territory. (Max Weber, a German
social theorist)
• are independent political communities each of which
possesses a government and asserts sovereignty in relation to
a particular portion of the earth’s surface and a particular
segment of the human population. (Hedley Bull, a 20th
century international philosopher)
Nation
• is an imagined political community and imagined as both
inherently limited and sovereign.
• It is imagined because the members of even the smallest
nation will never know most of their fellow- members, meet
them, or even hear of them, yet in the minds of each lives the
image of their communion.
• The nation is imagined as limited because even the largest of
them, encompassing perhaps a billion human beings, has
finite, if elastic, boundaries, beyond which lie other nations
• It is imagined as sovereign because the concept was born in
an age in which Enlightenment and Revolution were
destroying the legitimacy of the divinely ordained,
hierarchical dynastic realm…nations dream of being free, and
if under God, directly so. The gauge and emblem of this
freedom is the sovereign state
• It is imagined as community, because regardless of actual
inequality and exploitation that may prevail in each, the
nation is always conceived as a deep horizontal comradeship.
The terms nation and states are used interchangeably.
Nation-states - dual concept:
• are territorial organizations characterized by the
monopolization of legitimate violence (qua states)
• Are membership associations with a collective identity
and a democratic pretension to rule (qua nation)
The State and the Economic Interdependence
“Golden Straitjacket”- the belief that globalization imposes a
forced choice upon states either to conform to free market
principles or run the risk of being left behind (Thomas Friedman, a
neoliberalism journalist and advocate)
There are two things that will happen if a country is in Golden
Straitjacket: the economy grows and politics shrinks.
It is a straitjacket because it narrows the political and economic
policy choices of those in power to relatively tight parameters.
This is the reason of the difficulty of finding any real differences
today between ruling and opposition parties in those countries
that have put on the Golden Straitjacket
Neoliberalism and Economic Sovereignty
Neoliberalism - is the intensification of the influence and
dominance of capital. It is the elevation of capitalism as a mode of
production into an ethic, a set of political imperatives, and a
cultural logic.
Economic sovereignty - is the power or national governments to
make decisions independently of those made by other
governments
Four Different Concepts of Sovereignty
 o International Legal Sovereignty - It refers to the
acceptance of a given state as a member of the
international community.
o Westphalian Sovereignty - It is based on the principle that
one sovereign state should not interfere in the domestic
arrangements of another.
o Interdependence Sovereignty - It is the capacity and
willingness to control flows of people, goods and capital
into and out of the country.
o Domestic Sovereignty - It is the capacity of a state to
choose and implement policies within the territory
Economic and Political Integration (European Integration)
• European integration - is the process of industrial, political,
legal, economic, social and cultural integration of states
wholly or partially in Europe. European integration has
primarily come about through the European Union and its
policies.
• European Union (EU) - is an international organization
comprising 28 European countries and governing common
economic, social, and security policies
• Economic integration - can be described as a process and a
means by which a group of countries strives to increase their
level of welfare. It is an arrangement between different
regions that often includes the reduction or elimination of
trade barriers, and the coordination of monetary and fiscal
policies
Seven Stages of Economic Integration
1. Preferential trading area (PTA)
2. Free trade area
3. Customs union
4. Common market
5. Economic union
6. Economic and monetary union
7. Complete economic integration
Preferential Trade Areas (PTAs) - happens when there’s an
agreement on reducing or eliminating tariff (tax or duty to be paid
on a particular class of imports or exports) barriers on selected
goods imported from other members of countries within the
geographical region or areas. Agreement can either be bilateral
(between two countries), or multi-lateral (several countries). Free
Trade Areas (FTAs) are created when two or more countries in a
region agree to reduce or eliminate barriers to trade on all goods
coming from other members. The North Atlantic Free Trade
Agreement (NAFTA) is an example of such a free trade area, and
includes the USA, Canada, and Mexico.
Free Trade Agreements (FTAs) or Preferential Trade Agreements
(PTAs) eliminate import tariffs as well as import quotas between
signatory countries. These agreements can be limited to a few
sectors or can encompass all aspects of international trade. FTAs
can also include formal mechanisms to resolve trade disputes. The
North American Free Trade Agreement (NAFTA) is an example of
such an arrangement.
Custom Union - Removal of tariff barriers between members,
together with the acceptance of a common or unified external
tariff against nonmembers is involved. Single payment or duty is
made by countries exporting to customs union. Goods inside the
union can move freely with no additional tariffs. Members shared
tariff revenues while a small share is retained by the country that
the collects the duty. Removing internal barriers to trade and
requiring participating nations to harmonize their external policy
as well as building a free trade area are put up by customs union.
Common Market (CM) - One major step towards economic
integration. All barriers to the mobility of people, capital and
other resources within the area in question, as well as eliminating
non-tariff barriers to trade, such as the regulatory treatment of
product standards are removed by CM aside from containing the
provisions of a customs union. The extension of free trade from
just tangible goods, to include all economic resources which
means that all barriers are eliminated to allow the free movement
of goods, services, capital, and labor, including removal of tariffs
and reduced non-tariff barriers is the key feature of a common
market.
Economic Union - The trading bloc that has both a common
market between members, and a common trade policy towards
non-members, although members are free to pursue independent
macroeconomic policies. It requires coordinated monetary and
fiscal policies as well as labor market, regional development,
transportation and industrial policies. In economic union the use
of a common currency and a unified monetary policy is
considered. The best example of Economic union is the European
Union (EU).
Economic and Monetary Union (EMU) - As a key stage towards
complete integration, involves a single economic market, a
common trade policy, a single currency and a common monetary
policy. It represents a major step in the integration of EU
economies. EMU involves the coordination of economic and fiscal
policies, a common monetary policy and a common currency, the
euro. EMU is a means to provide stability and for stronger, more
sustainable and inclusive growth across the euro area and the EU
as a whole for the sake of improving the lives of EU citizens.
Complete Economic Integration is the final stage of economic
integration in which member states completely forego
independence of both monetary and fiscal policies. States that
participate in complete economic integration have no control of
economic policy including economic trade rules. There is full
monetary union where regulations regarding labor and capital are
shared between member states and this includes a single
currency. There is also a complete harmonization of fiscal policy
which includes shared regulation of tax and benefit rates.
• Political integration - refers to the integration of components
within political systems; the integration of political systems
with economic, social, and other human systems; and the
political processes by which social, economic, and political
systems become integrated. Creating common policy frame
work that creates equal conditions for the functions of the
integrated parts of the economy is the aim of policy
integration.
Theories of European Integration
NEO-FUNCTIONALISM. This theory focuses on the supranational
institutions of the EU of which the main driving forces of
integration are interest group activity at the European and
national levels, political party activity, and the role of
governments and supranational institutions. The European
integration is mostly seen as an upper class- driven process-
driven by national and international political and economic upper
crusts.
INTERGOVERNMENTALISM. This theory provides a conceptual
explanation of the European integration process. The main
concept of the Intergovernmentalism is emphasizing on the role
of national states in the European integration; in another words it
argues that "European integration is driven by the interest and
actions of nation states“.
LIBERAL INTERGOVERNMENTALISM. Liberal intergovernmental
stated that the bargaining power of member states is important in
the pursuit of integration, and package deals and side payments
also occur in the process of making deals.
NEW INSTITUTIONALISM. This theory emphasized the importance
of institutions in the process of European integration. Its three key
strands are: rational choice, sociological and historical.
MULTI-LEVEL GOVERNANCE (MLG). This is a new theory of
European integration. Writers Liesbet Hooghe and Gary Marks
defined MLG as dispersion of authority across multiple levels of
political governance. They stated that over the last fifty years,
authority and sovereignty has moved away from national
governments in Europe, not just to the supranational level with
the EU, but also to subnational levels such as regional assemblies
and local authorities.
Transnational Activism in States
Transnational activism can be defined as the mobilization of
collective claims by actors located in more than one country
and/or addressing more than one national government and/or
international governmental organization or another international
actor.
A social movement is a type of group action. It refers to the
organizational structures and strategies that may empower
oppressed populations to mount effective challenges and resist
the more powerful and advantaged elites.
The global justice movement describes the loose collection of
individuals and groups often referred to as a “movement of
movements”, who advocate fair trade rules and are negative to
current institutions of global economics such as the World Trade
Organization.
The new transnational activism is as multifaceted as the
internationalism. Although globalization and global neo-liberalism
are frames around which many activists mobilize, the protests and
organizations are not the product of a global imaginary but of
domestically rooted activists who are the connective tissue of the
global and the local, working as activators, brokers and advocates
for claims both domestic and international.
Social Media and the State
Social media - is a computer-based technology that facilitates the
sharing of ideas and information and the building of virtual
networks and communities.
• By design, it is internet based and offers users easy
electronic communication of personal information and
other content, such as videos and photos.
• Users engage with social media via computer, tablet or
smartphone via web-based software or web application,
often utilizing it for Messaging.
New forms of digital media are accompanied by globalization in
bringing to light the possibilities for merging new kinds of
communities via networks and creating new arenas for political
interaction, identity and belonging. The concept of network
society affirms that citizens and civil society organizations can
increasingly use networks to gain power relative states by
generating alternative discourses that have the potential to
overwhelm the disciplinary discursive capacity of the state as a
necessary step to neutralizing its use of violence.
IV. CONTEMPORARY GLOBAL GOVERNANCE
Global governance or world governance - is a product of neo-
liberal paradigm shifts in international political and economic
relations. It is a movement towards political integration of
transnational actors aimed at negotiating responses to problems
that affect more than one state or region.
• It tends to involve institutionalization.
These institutions of global governance tend to have limited or
demarcated power to enforce compliance: United Nations,
International Criminal Court, World Bank, etc.
• Is a tool to identify solutions to problems created by neo-
liberal globalization.
• is viewed as the sum of governance processes operating
in the absence of world government.
The Roles and Functions of the United Nations
United Nations (UN) - an intergovernmental organization, UN is
tasked to promote international co-operation and to create and
maintain international order.
• It is the largest, most familiar, most internationally
represented and most powerful intergovernmental
organization in the world.
• UN in the world of politics has the roles of preventing
and managing conflicts, regulating armaments,
championing human rights and international
humanitarian law, liberating the colonized, providing
economic and technical aid in newly liberated countries,
organizing elections, empowering women, educating
children, feeding the hungry, sheltering the disposed and
displaced, housing the refugees, tending the sick and
coordinating disaster relief and assistance. In policy
motivation, peacekeeping is the most important feature
of UN activity in peace and security.
• The UN aims to save succeeding generations from the
scourge of war; to reaffirm faith in fundamental human
rights; to establish conditions under which justice and
respect for the obligations arising from treaties and other
sources of international law can be maintained; and to
promote social progress and better standards of life in
larger freedom.
Four Main Purposes of the UN Charter - a written grant by a
country's legislative or sovereign power, by which an institution
such as a company, college, or city is created and its rights and
privileges defined.
1. Maintaining worldwide peace and security
2. Developing relations among nations
 3. Fostering cooperation between nations in order to solve
economic, social, cultural, or humanitarian international
problems
4. Providing a forum for bringing countries together to meet
the UN's purposes and goals
There were five stages or main gaps meet by UN in the 21st
century. These are: knowledge, norms, policy, institutions and
compliance. A critical hole in any of the five stages can cause
efforts at problem solving to collapse.
Challenges of Global Governance in the Twenty-first Century
The new governance challenges in the 21st century being related
to globalization entail multiple trajectories of change within
states, among actors inside and outside nation states, as well as
new forms of resource mobilization and risk allocation. Within
states the first trajectory or path is the depoliticization which can
be observed in the form of delegating decisions to independent
regulators and experts, central banks, or judiciaries. A second
trajectory is the rescaling of economic and social relations well
beyond the territorial boundaries of nation states, facilitated by
transnational legal arrangements that have their roots in national
law. Law is also a critical ingredient for transforming real assets
into commodities and ultimately financial assets, that is, the third
path which is the capitalization of assets. Different effects are
expected on different constituencies within and across domestic
polities (an organized society; a state as a political entity). Direct
participation or inclusion in these processes are benefitted by
some though others face exclusion. Considered important for
effective governance include recognition of these paths or
trajectories and their potentially destabilizing effects for polities.
The Role of the Nation-State in Globalization
Basic Elements of a State
1. Territory
2. People
3. Sovereign Power
Westernization - means that other nation-states are at a
disadvantage when dealing with the Americas and Europe, most
especially in the agricultural industry, in which second- and third-
world nations face competition from Western companies
Globalization’s Impact on the State
Factors which lead to the increase and acceleration of movement
of people, information, commodities and capital.
1. Lifting of trade barriers
2. Liberalization of world capital markets
3. Swift technological progress (information technology,
transportation and communication)
Problems afflicting the world today which are increasingly
transnational in naturethose that cannot be solved at the national
level or State to State negotiations.
1. Poverty
2. Environmental pollution
3. Economic crisis
4. Organized crime and terrorism
Effects of greater economic and social interdependence to
national decision- making processes.
1. It calls for a transfer of decisions to the international
level
2. It requires many decisions to be transferred to local
levels of government due to an increase in the demand for
participation
The following can be guaranteed only by the States through
independent courts:
1. Respect of human rights and justice
2. Promote the national welfare
3. Protect the general intere
UNIT 3. A World of Regions
GLOBAL DIVIDES: THE NORTH AND THE SOUTH
Global South - refers to the regions of Latin America, Asia, Africa,
and Oceania mostly low-income and often politically or culturally
marginalized.
• It may also be called the "developing World" such as
Africa, Latin America, and the developing countries in
Asia, "developing countries," "less developed countries,"
and "less developed regions” including poorer "southern"
regions of wealthy "northern" countries
Three Primary Concepts of Global South
1. It refers to economically disadvantaged nation-states and as a
post-coldwar alternative to “Third World”.
"Third World" - is a phrase frequently used to describe a
developing nation. It arose during the Cold War to identify
countries whose views did not align with NATO and
capitalism or the Soviet Union and communism
First World - countries whose views aligned with NATO and
capitalism
Second World - countries that supported communism and
the Soviet Union.
2. The Global South captures a deterritorialized geography of
capitalism’s externalities and means to account for
subjugated peoples within the borders of wealthier countries,
such that there are economic Souths in the geographic North
and Norths in the geographic South.
3. It refers to the resistant imaginary of a transnational political
subject that results from a shared experience of subjugation
under contemporary global capitalism.
New Internationalism in the Global South
As a symbol and metaphor, global south is not only relevant for
those who live in countries traditionally associated with it. The
global in global south does not only mean that the south is the
globe but also signifies that the south continues to be globalized.
The global south while embedded in specific geographic
imaginaries, represents emergent forms of progressive
cosmopolitanism. It is always emergent and provisional
internationalism.
ASIAN REGIONALISM
Regionalism - refers to the decentralization of political powers or
competencies from a higher towards a lower political level.
Views of Globalization in the Asia Pacific and South Asia
Asia Pacific and South Asia - refer together to the regions of East
(or Northeast) Asia, South Asia, the Pacific Islands, and South Asia.
It includes some of the world's most economically developed
states such as Japan, South Korea, Singapore, and Taiwan, and
highly impoverishes countries such as Cambodia, Laos, and Nepal.
It also includes the largest and most populous states on the globe
including China and India and some of the world's smallest such as
the Maldives and Bhutan.
Asia Pacific and South Asia’s Impact on Globalization
Asia was the central global force in the early modern world
economy. It was the site of the most important trade routes and
in some places more advanced in technology than West such as
science and medicine. Colonies in the Asia pacific and South Asia
influenced the West and vice versa. They were often “laboratories
of modernity”. Colonialism was not simply a practice of Western
Domination but a product of what one thinks of as Western and
modern.
The Region-Making in Southeast Asia and Middle-Class
Formation:
The Third Wave
Regionalization entails complex and dynamic interactions
between and among governmental and nongovernmental actors
which resulted to hybrid East Asia. The main engines of
hybridization are explained by the successive waves of regional
economic development that is powered by developmental states
and national and transnational capitalism that nurtured sizeable
middle-classes that share a lot in common in terms of professional
lives and their lifestyles, in fashion, leisure, and entertainment, in
their aspirations and dreams
Complex historical forces shaped new urban middle classes. They
are product of regional economic development, which has taken
place in waves under the U.S. informal empire over a half century,
first in Japan, then in South Korea, Taiwan, Hongkong, and
Singapore, Thailand, Malaysia, Indonesia and Philippines, and now
in China. They are product as well for development states. Their
lifestyles have been shaped in very complex ways by their
appropriation of things American, Japanese, Chinese, South
Korean, Islamic and other ways of life, often mediated by the
market.
The political consequences of the rise of East Asia middle classes
vary. The cultural and political hegemony of the South Korean
middle classes is embodied by single generation, while that of the
Taiwanese middle classes manifest itself in the political
assertiveness of an ethnic majority. Southeast Asian middle
classes also exemplify the diversity and complexity of class
formation. Thai middle classes are coherent socially, hegemonic
culturally, and ascend politically; their counterparts in Malaysia
and Indonesia are socially divided, dependent on the state,
politically assertive and vulnerable; and the Philippine middle
classes are socially coherent, less dependent on the state,
culturally ascendant, but politically vacillating.

Two salient points in the history of east Asian middle-class

formation.
1. Middle class formation in Southeast Asia was driven by global
and regional transnational capitalism working in alliance with
national states while middle class in Japan, South Korea, and
Taiwan were created by developmental states and national
capitalism.
2. New urban middle classes in East Asia, whether in Japan, South
Korea, Taiwan, or Southeast Asia, with their middle-class jobs,
education, and income, have in turn created their own new
lifestyles commensurate with their middle-class income and
status.

Middle Classes in The Philippines

New urban middle classes emerged in the post 1986 Philippines.
They were created through growth in retail trade, manufacture,
banking, real estate development, and an expanding range of
specialist services such as accounting, advertising, computing, and
market research.
Fostered by government policies of liberalization and
deregulation, the development of these new enterprises has been
oriented both toward the export and domestic markets and has
entailed increasingly diverse sources of foreign investment and
variable subcontracting, franchise, and service relationships, with
a noticeable expansion of ties connecting the Philippines to other
countries in East and Southeast Asia

Regional Implications of Middle-Class Formation in East Asia

LONG QUIZ
Which of the following is NOT aspect that led to a greater Asian
integration?
✓ Intergovernmental institutions were established.
It is for culture and arts, sports, disaster management, education,
environment, health, information, labor, rural development and
poverty eradication, women, youth, and civil service matters.
✓ Socio-cultural community
Which of following is an attribute of a nation?
✓ It highlights the organic ties that hold groups of people
together.
One principal driver of globalization is the social media. Social
media have changed the ways in which this knowledge is being
recorded and passed on.
✓ First statement is wrong, second statement is true
Europe was the central global force in the early modern world
economy. Globalization is an external phenomenon being pushed
into the region by world power particularly the United States and
Europe.
✓ First statement is wrong, second statement is true
Refers to the decentralization of political powers or competencies
from a higher towards a lower political level.
✓ Regionalism
This is the only global international organization dealing with the
rules of trade between nations.
✓ World Trade Organization
Globalization is spatial because it occurs in physical places. Which
of the following does not support the statement?
✓ Cities act on globalization and globalization acts on cities.
UN's prime judicial organ.
✓ International Court of Justice
It is the sum total of services and goods produced by country per
annum.
✓ GDP
In the 16th century world system analyst identify the origin of
modernity and globalization. In the 19th century the advent of
globalization approaching its modern form is witnessed.
✓ Both statements are true
Globalist claim to convince people to adopt the natural discipline
of the market if they want to prosper. While neoliberalist believe
that the spread of market force driven by technological
innovations is inevitable in globalization.
✓ Both statements are wrong
Which of the following is not a factor that led to the increase and
acceleration of movement of people, information, commodities,
and capital.
✓ Environmental Pollution
It is socio-economic and political divide primarily focused on the
southern hemisphere of the 1569-designed Mercatorian map.
✓ Global South
These countries were considered to be non-industrialized and
newly industrialized. They lacked the standard systems in banking,
finance, and trade.
✓ Third-world countries
TRUE/FALSE
Issues on global economy are the main concern of the United
Nations.
✓ FALSE
Both intergovernmental and private institutions help the
functionality of a global economic by lending money to their
member states and global corporations.
✓ TRUE
UN is appreciated regarding how its convening capacity and
mobilizing power are utilized to help funnel and consolidate
knowledge from outside and ensure its discussion and
dissemination among governments.
✓ FALSE
The contrasting moral structures of social behavior in different
member - states complicate the formulation of a normative
standard is not applicable to all.
✓ FALSE
✓ The terms Global South and Third World are conceptually
the same. They both refer to conditions usually found in
developing countries
✓ TRUE
Prehistoric- fire, hunting and gathering, language, agriculture
• In this period, contacts among hunters and gatherers
were spread around the world.
Pre Modern- Wheel, Compass, writing , paper printing
• This period moved globalization to a new level because
invention of the wheel was a great social and
technological boost.
• During this period, a devastating global epidemic occurs
which is the black death.
• Humans began using metal instead of stone as their
primary material.
• During this period the invention of cuneiform by the
Mesopotamians became a major leap in communication
technology.
Early modern- Water mills, postage systems, advanced navigation,
• Capitalism, governance, and the economic system arose
in this period.
• The invention of printing press, gun powder, and new
navigational techniques.
Modern- Coca-Cola, Sewing machine, telegraph
• During this period, population explosion, an increase in
migration, and industrialization accelerated happened.
• Expansion of transportation, railways, mechanized
shipping, intercontinental air transport enabled the
establishment of a genuine global infrastructure while
lowering transportation costs.
Contemporary - The creation, expansion, and acceleration of
worldwide interdependencies occurred in a dramatic way and it
was a kind of leap in the history of globalization.
OTHER SOURCES
He called for democracy and self-determination.
• President Woodrow Wilson
Which of the following is an attribute of today's global system?
• International organizations also take on lives of their
own.
Security Council's veto power over resolutions has minimal impact
to UN's functions.
• FALSE
Which of the following was not an initiative of the Socialist
International?
• Overtime and hazard pay
United Nation's Trusteeship Council is still operational.
• FALSE
Nation-states no longer have influences on IGOs since they also
take lives on their own.
• FALSE
Which of the following was not included in the Napoleonic Code?
• Fraternity among the nobilities
Which of the following is not a member state of ASEAN?
• Sri Lanka
The following states have permanent membership in the UN's
Security Council except for one.
• Germany
This is UN's central deliberative and the only organ where
member-states have equal representation in discussion and
consideration, and policymaking.
• General Assembly
Internationalization, also known as globalization, refers to the
deepening of interactions between states.
• FALSE
Which of the following is not an effect of globalization to nation-
states?
• Creation of standardized global government
Which of the following is ASEAN's motto?
• One Vision, One Identity, One Community
He conceptualized the idea of liberal internationalism.
• Immanuel Kant
Liberal Internationalism is based on the view that capitalism is a
global system and that the working class must unite as a global
class to forward the struggle against capitalism.
• FALSE
It sought to restore the sovereignty of states.
• The Concert of Europe
The creation of League of Nations was a big factor in ending World
War II.
• FALSE
Issues on global economy are the main concern of the United
Nations.
• FALSE
Which of following is not a primary function of the United
Nations?
• Promoting cultural heritages
With 164 member-states, it is the sole IGO that caters to rules of
trade on global scale.
• WTO
The global interstate system is a facet of contemporary political
globalization that seeks to form collaboration among nation states
through the establishment of intergovernmental organizations.
• TRUE
They have investments in other countries, but do not have a
coordinated product offering in each country. They are more
focused on adapting their products and services to each individual
local market.
• MNC
They are importers and exporters with no investments outside
their home countries.
• International Companies
They have investments and are present in many countries. They
typically market their products and services to each individual
local market.
• Global Companies
They are more complex organizations that have
investments in foreign operations, have a central corporate facility
but give decision - making, research and development, and
marketing powers to each individuals foreign market.
• TNC
It aims to end extreme poverty and promote shared prosperity in
a sustainable way.
• World Bank
It works to foster global monetary cooperation, secure financial
stability, facilitate international trade and more.
• International Monetary Fund
It is an American multinational investment banking and financial
corporation. It is the 4th largest bank in the US.
• Citigroup
Their missions are to spur social progress and economic growth in
order to address and reduce poverty.
• ADB and AfDB
Both intergovernmental and private institutions help the
functionality of a global economic by lending money to their
member states and global corporations.
• TRUE
It was the result of the establishment of global economy that
involved the homogenization of trade and commerce.
• Global market integration
It started when big American corporations began to emerge after
the second WW2 with the rise of new
conglomerates.
• Global market integration
Which of the following is NOT the structural periods in the
existence of global corporation after the war?
• target-based period
What are the three common attributes of global corporation?
• A, B, and C
It is an agreements between major continental powers of Europe
after a brutal religious wars bet Catholics and protestants;
exercise complete control over domestic affairs and swear not to
meddle in each other's affair.
• Treaty of Westphalia
He believed in spreading the principles of the French Revolution -
liberty, equality, and fraternity - thus challenge kings, nobility and
religion in Europe.
• Napoleon Bonaparte
It is a system of heightened interaction between various sovereign
states, particularly the desire for greater cooperation and unity
among states and people.
• Internationalism
The country that was not able to join the League of Nations.
 • US
He opposed nationalism because it prevented the unification of
the worlds workers.
• Friedrich Engels
It is an attitude that seeks to understand all the interconnections
of the modern world and to highlight patterns that underlie them.
• Globalism
It is a facet of contemporary political globalization that seeks to
form collaboration among nation - states thru the establishment
of intergovernmental organization.
• Global interstate system
It makes world affairs systematic, secured and formulaic.
• Global Governance
It is the central deliberative and only organ where all member-
states have equal representation in discussion, and consideration
and policymaking.
• General Assembly
It is the main organ for cooperation, policy review, policy
dialogue, advice on social, economic and environmental issues.
• Economic and Social Council
The organ which has the commitment to preserve peace and
security.
• Security Council
The organ tasked to execute the daily activities assigned by the
five other organs.
• Secretariat
The organ tasked to administer international oversight for 11
territories and to make sure that adequate procedure are taken
for independence and self-government.
• Trusteeship Council
UN's prime judicial organ.
• International Court of Justice
UN is appreciated regarding how its convening capacity and
mobilizing power are utilized to help funnel and consolidate
knowledge from outside and ensure its discussion and
dissemination among governments.
• FALSE
Institutions can be places where ideas are concerned and left
behind. The modality and processes for enforcing compliance with
international norms and laws are not present. In fact, some UN
staff members violate, cheat and challenge them.
• TRUE
It defines the political scope of globalization.
• Contemporary Global Governance
UN belittle the helping hand of non - governmental organizations
(NGOs) and the global public opinion.
• TRUE
The contrasting moral structures of social behavior in different
member - states complicate the formulation of a normative
standard is not applicable to all.
• FALSE
It is responsible for bringing human rights into the realm of
international law thru the Universal Declaration of Human Rights.
• United Nations
United Nations was established after ____________.
• World War 2
Their primary aim is to foster strong economic, political, cultural
educational, and technical intergovernmental relationships.
• Intergovernmental Organizations
Which of the following is NOT effect of globalization on nation-
states?
• rise of MNC
He is an internationalist but did not believe in nationalism. The
true form of internationalism reject
nationalism, he divided the world not into counties but into
classes: capitalist and proletariats.
• Karl Marx
It sustains consumer choice, private property, and economic
freedom.
• Capitalist
Economically poor families, underprivileged individuals, labor
practices, and suppression of human rights, and other violations
of basic rights in Europe, Australia, US, and Canada are the pieces
of evidence that people from developed countries also share
similar experiences with people from developing countries.
• TRUE
It is the growth of societal integration within a region and to the
often undirected processes of social and economic interaction
• Regionalization
It is the expansion and intensification of social relations and
consciousness across world-time and world-space.
• Globalization
The establishment of collaborations and cooperation based on
respect is what makes Asian nations stronger than ever.
• TRUE
It is process of intergovernmental collaborations between two or
more states.
• Regionalism
It gives importance to human rights, drugs, foreign relations,
defense, law, and transnational crimes.
• political security
It includes economic and finance ministers, central bank
governors, free trade area, investment area, agriculture and
forestry, transport ministers, etc.
• economic community
It is for culture and arts, sports, disaster management, education,
environment, health, information, labor, rural development and
poverty eradication, women, youth, and civil service matters.
• socio-cultural community
They created to help reduce trading costs, increase business
investment, and help North America be more competitive in the
global marketplace.
• NAFTA
ASEAN partnered with ASEAN +3 to address the 1997 Asian
financial crisis and help each other cope with the crisis. Which of
the following is not the country included in ASEAN +3?
• North Korea
It is a political and economic union established to ensure free
movement of people, goods, services, and capital within the single
market.
• EU
Initially, ADB focused by providing loans, technical assistance,
grants, and equity investments.
• ADB
The agency targets to promote international cooperation and the
development of the Japanese and global economy by supporting
the socio-economic development, recovery, or economic stability
of developing regions.
• JICA
Which of the following is NOT aspect that led to a greater Asian ABBREVIATIONS
integration?
• Intergovernmental institutions were established. IMF International Monetary Fund
It is the sum total of services and goods produced by country per
annum
UN United Nations
• GDP EU European Union
The term Third World ceased to exist when the Cold War ended.
ASEAN Association of Southeast Asian Nations
• TRUE
Association of Southeast Asian Nations 5/ASEAN 5: Indonesia, TNC Transnational corporations
Malaysia, Philippines, Singapore, and Thailand
GE General Electric
• FALSE
It is most probably because the continent comprises one-third of IMS International Monetary Systems
the world's land mass.
• Asia
EMS European Monetary Systems
The term Asia was originated from ________. EMU Economic and Monetary Union
• West (from Ancient Greece)
It is metaphor for interstate inequality and a product of Western EFSM European Financial Stability Mechanism
imagination EFSF European Financial Stability Facility
• Global South
These countries were considered to be non-industrialized and SPV Special purpose vehicle
newly industrialized. They lacked the standard systems in banking, GDP Gross Domestic Product
finance, and trade.
• Third World OECD Organization for Economic Co-operation and
It is characterized by state control of the means of production, Development
distribution, and exchange. WTO World Trade Organization
• Socialist
It is the home of all members of the Group of Eight (G8)-Canada, MNC Multinational corporations
France, Germany, Italy, Japan, United Kingdom, Russia, and the CFO Chief financial officers
United States of America.
• Global North FDI Foreign Direct Investment
The terms Global South and Third World are conceptually the BRICS Brazil, Russia, India, China and South Africa
same. They both refer to conditions usually found in developing
countries. GATS General Agreement on Trade in Services
• TRUE GATT General Agreement on Tariffs and Trade
It promotes social and economic development in Asia, composed
of 67 members, 48 of which are from the Asia-Pacific region. WB World Bank
• ADB PTA Preferential Trade Areas
Which of the following is NOT how do Asian countries respond
with regional alternatives to the challenges brought about by FTA Free Trade Agreements
globalization? NAFTA North American Free Trade Agreement
• as a local group
It has the 50-year-old ASEAN group and the failed East Asia NAFTA North Atlantic Free Trade Agreement
Economic Group (EAEG). CM Common Market
• Asian Regionalism
G8: MLG Multi-level Governance
• I, II,III, IV IO International organizations
It is socio-economic and political divide primarily focused on the
southern hemisphere of the 1569-designed Mercatorian map. NATO North Atlantic Treaty Organization
• Global South APEC Asia Pacific Economic Cooperation
ADB Asian Development Bank
JICA Japan International Cooperation Agency
OECD Organization for Economic Cooperation and
Development