Laguna State Polytechnic University

GEC 103: The Contemporary World

Noel A. Viray, Jr

Notes on Contemporary World

Why is this subject important?

Contemporary World is an important subject because it provides a comprehensive understanding of the world
we live in today. This subject encompasses a wide range of topics, including global politics, social and cultural
issues, economic trends, and environmental challenges. Understanding these issues is crucial for several reasons:

1. Awareness: Studying contemporary world issues helps us become more aware of the world around us,
including the challenges and opportunities we face as individuals and as a society. It allows us to better
understand the causes and consequences of various global events and to make informed decisions about
how we want to engage with the world.

2. Critical thinking: Contemporary world issues require critical thinking and analysis, as they often
involve complex and nuanced problems that cannot be easily solved. Engaging with these issues helps
students develop critical thinking skills that will serve them well in their personal and professional lives.

3. Global citizenship: Studying contemporary world issues helps students become more engaged and
responsible global citizens. It teaches them about the interconnectedness of the world and how their
actions can have an impact beyond their immediate environment. It also promotes cultural awareness
and understanding, which is crucial in a world that is becoming increasingly diverse.

4. Career opportunities: Finally, studying contemporary world issues can open up a range of career
opportunities, including jobs in international development, diplomacy, journalism, and global business.

Overall, studying Contemporary World is important because it helps students become more informed, engaged,
and responsible citizens of the world. It also prepares them for the challenges and opportunities of a rapidly
changing global landscape.

I. State and its Elements

A state is a political entity that has a defined territory, a government, and a population. It is characterized by the
authority it exercises over its citizens, the power to make and enforce laws within its boundaries, and its
sovereignty or independence from other states. The state is responsible for providing public services, ensuring
the security and welfare of its citizens, and representing its people in international affairs. It is a fundamental
unit of political organization and plays a key role in shaping the social, economic, and cultural life of a society.
 Laguna State Polytechnic University
GEC 103: The Contemporary World
Noel A. Viray, Jr

There are several elements of a state, which include:

Population: A state must have a permanent population that resides within its boundaries. The population can
be of any size, but it must be stable and defined.

Territory: A state must have a defined territory, which includes land, water, and air space. The territory must be
recognized by other states and must be subject to the jurisdiction of the state.

Government: A state must have a government that is responsible for managing and regulating the affairs of the
state. The government must have the authority to make and enforce laws, maintain order, and provide public
services.

Sovereignty: A state must have sovereignty, which means that it has the supreme authority within its territory
and is free from external control or influence.

International recognition: A state must be recognized by other states as a sovereign entity. This recognition is
typically granted through diplomatic channels.

These elements are considered the basic components of a state, and they are interrelated and mutually
dependent. A state cannot exist without all of these elements being in place.

II. Theories on the Origin of State

The Divine Right Theory: This theory suggests that the state was created by a divine power, and that the
rulers of the state were chosen by this power to govern on its behalf. According to this theory, the power of the
state was absolute and could not be challenged by the people.

The Social Contract Theory: This theory suggests that the state was created through a voluntary agreement
among individuals to give up some of their individual freedom in exchange for protection and security provided
by the state. According to this theory, the state exists to serve the needs and interests of the people, and the power
of the state is derived from the consent of the governed.

The Force Theory: This theory suggests that the state was created through the use of force, either by a group or
an individual who seized power and established a government. According to this theory, the power of the state is
derived from the ability of the ruling group to maintain control over the population through the use of force
and coercion.
 Laguna State Polytechnic University
GEC 103: The Contemporary World
Noel A. Viray, Jr

The Evolutionary (Patriarchal) Theory: This theory suggests that the state developed gradually over time as
human societies became more complex and organized. According to this theory, the state emerged as a natural
outgrowth of human social and political evolution, and the power of the state is derived from its ability to
provide order and stability to society. Some references that may be outdated posit that male members of society
evolved to be the natural leaders. Such theories are frowned upon for having sexist undertones.

These theories provide different explanations for the origins of the state, and each has its own strengths and
weaknesses. Many modern scholars believe that the origins of the state are likely to be more complex and
multifaceted than any single theory can explain.

Q: Is the study of the state important in the study of Contemporary World?

Answer:

Yes, the study of the state is important in the study of the Contemporary World for several reasons:

Understanding political systems: The state is the fundamental unit of political organization in the
Contemporary World, and the study of the state helps us understand the political systems that exist in different
countries. This knowledge is essential for understanding the political dynamics of different regions and for
analyzing the factors that shape political outcomes.

Understanding international relations: The state is the primary actor in international relations, and the
study of the state is essential for understanding how states interact with each other in the Contemporary World.
This includes the study of issues such as diplomacy, international trade, and global governance.

Understanding social and economic systems: The state plays a critical role in shaping the social and
economic systems of different countries. The study of the state helps us understand the policies and institutions
that affect economic growth, social welfare, and inequality, among other issues.

Understanding global challenges: The state is a key player in addressing global challenges such as climate
change, pandemics, and terrorism. The study of the state is important for understanding how different states
approach these challenges, and for analyzing the effectiveness of different policy approaches.

Overall, the study of the state is essential for understanding the political, social, and economic dynamics of the
Contemporary World. It helps us make sense of the complex interplay of factors that shape the world we live in
and provides a foundation for developing informed and effective policy solutions to global challenges.
 Laguna State Polytechnic University
GEC 103: The Contemporary World
Noel A. Viray, Jr

III. The Philippine Government

I. Executive Branch
A. Overview

● Headed by the President

● Responsible for implementing and enforcing laws
● Composed of various departments and agencies

B. Office of the President

●
● Headed by the President
● Responsible for setting policies and priorities for the government
● Includes the Cabinet, which is composed of the heads of various departments and agencies

C. Departments and Agencies

● Responsible for implementing policies and programs

● Examples include the Department of Finance, Department of Education, and Department of
Transportation

D. Executive Orders and Proclamations

● Issued by the President to implement policies and programs

● Have the force of law

II. Legislative Branch

A. Overview

● Composed of the Senate and the House of Representatives

● Responsible for making laws
● Exercises oversight over the Executive branch

B. Senate

● Composed of 24 Senators
 Laguna State Polytechnic University
GEC 103: The Contemporary World
Noel A. Viray, Jr

● Responsible for passing bills and confirming presidential appointments

● Exercises oversight over the Executive branch

C. House of Representatives

● Composed of 300 members

● Responsible for passing bills and initiating impeachment proceedings against officials of the
government
● Exercises oversight over the Executive branch

D. Committees

● Responsible for conducting hearings and investigations

● Examples include the Committee on Finance, Committee on Education, and Committee on
Transportation

III. Judicial Branch

A. Overview

● Headed by the Supreme Court

● Responsible for interpreting and applying the law
● Adjudicates disputes between individuals and the government

B. Supreme Court

● Composed of 15 Justices
● Responsible for interpreting the Constitution and other laws
● Has the power of judicial review to declare laws or executive acts unconstitutional

C. Lower Courts

● Composed of regional trial courts, municipal trial courts, and other lower courts
● Responsible for hearing and deciding cases
 Laguna State Polytechnic University
GEC 103: The Contemporary World
Noel A. Viray, Jr

IV. Globalization

Globalization refers to the interconnectedness and interdependence of the world's economies, societies, and
cultures. It is a process that has been driven by advances in technology, transportation, and communication,
which have made it easier and faster to exchange goods, services, ideas, and information across borders.

Studying globalization is important for several reasons:

Economic interdependence: Globalization has led to greater economic interdependence among nations,
which has important implications for trade, investment, and the distribution of wealth and resources.

Cultural exchange: Globalization has enabled the exchange of cultural practices, ideas, and values across
national borders, leading to greater cultural diversity but also concerns about cultural homogenization.

Political cooperation: Globalization has created new opportunities for political cooperation and collaboration,
but also challenges to sovereignty, democracy, and human rights.

Environmental challenges: Globalization has contributed to global environmental challenges, such as climate
change and resource depletion, which require international cooperation to address.

Career opportunities: Studying globalization can also lead to career opportunities in fields such as
international business, diplomacy, and development.

In summary, studying globalization is important for understanding the complexities and challenges of our
globalized world and for preparing individuals to engage effectively in a variety of personal and professional
contexts.

V. Aspects of Globalization

There are several aspects or dimensions of globalization, including:

Economic globalization: This involves the integration and interdependence of national economies through
increased trade, foreign direct investment, and the movement of capital and labor across borders.

Cultural globalization: This involves the spread of cultural practices, beliefs, and values across national
borders through media, technology, migration, and travel.
 Laguna State Polytechnic University
GEC 103: The Contemporary World
Noel A. Viray, Jr

Political globalization: This involves the emergence of global governance institutions, such as the United
Nations, the World Trade Organization, and regional organizations, as well as the growth of transnational
activism and advocacy.

Environmental globalization: This involves the recognition of global environmental challenges, such as
climate change, biodiversity loss, and pollution, and the need for international cooperation to address them.

Technological globalization: This involves the development and diffusion of technology across national
borders, including the internet, social media, and other digital platforms, as well as the impacts of technological
change on employment, inequality, and social relations.

These aspects of globalization are interconnected and reinforce one another. They have both positive and
negative impacts, and understanding them is important for navigating the opportunities and challenges of our
increasingly interconnected world.

Economic Globalization

Economic globalization refers to the integration and interdependence of national economies through increased
trade, foreign direct investment, and the movement of capital and labor across borders. It has been driven by
advances in technology, transportation, and communication that have made it easier and faster to exchange
goods, services, and information across borders.

There are several key features of economic globalization, including:

Increased trade: Economic globalization has led to a significant increase in international trade, with countries
exporting and importing goods and services to a greater extent than ever before. This has been facilitated by a
reduction in trade barriers, such as tariffs and quotas, through international trade agreements.

Foreign direct investment: Economic globalization has also led to an increase in foreign direct investment, where
companies invest in and own businesses in other countries. This has enabled companies to access new markets,
resources, and labor pools, and has contributed to the growth of multinational corporations.

Movement of labor: Economic globalization has led to greater movement of labor across borders, with more
people migrating for work or seeking opportunities in other countries. This has contributed to the growth of
diaspora communities and has been facilitated by the growth of global labor markets.
 Laguna State Polytechnic University
GEC 103: The Contemporary World
Noel A. Viray, Jr

Financial globalization: Economic globalization has led to greater financial interdependence among nations,
with capital flowing more freely across borders. This has led to an increase in cross-border investments, currency
fluctuations, and financial crises.

Economic globalization has had both positive and negative impacts. On the positive side, it has led to increased
economic growth, greater efficiency in production, and access to new markets and resources. It has also
facilitated the transfer of technology and knowledge across borders. However, economic globalization has also
contributed to growing inequality between and within countries, as well as to social and environmental
challenges such as job losses, exploitation of labor, and environmental degradation.

Critics of economic globalization argue that it has benefited large corporations and wealthy individuals at the
expense of ordinary workers and the environment. Some have called for a more equitable and sustainable form
of globalization that promotes social and environmental justice.

Overall, economic globalization is a complex and dynamic process that has transformed the global economy over
the past few decades. Understanding its impacts and challenges is crucial for policymakers, business leaders, and
individuals who want to engage effectively in a globalized world.

Global Economic Actors

World Trade Organization (WTO): The WTO is an intergovernmental organization that regulates and
promotes international trade between nations. Its main functions include negotiating and enforcing
international trade agreements, resolving trade disputes between member countries, and providing technical
assistance and training to developing countries to help them participate in the global trading system.

International Monetary Fund (IMF): The IMF is an international organization that works to promote global
economic stability and growth. Its main functions include providing financial assistance to member countries
facing balance-of-payment difficulties, promoting international monetary cooperation, and providing policy
advice and technical assistance to member countries to help them strengthen their economies.

World Bank: The World Bank is an international financial institution that provides loans, grants, and technical
assistance to developing countries for projects aimed at reducing poverty and promoting economic
development. Its main functions include providing financial and technical support for infrastructure
development, poverty reduction programs, and social services such as healthcare and education.

Together, these institutions play important roles in shaping and regulating the global economy. While they have
been criticized for promoting a form of globalization that favors the interests of wealthy nations and
 Laguna State Polytechnic University
GEC 103: The Contemporary World
Noel A. Viray, Jr

corporations, they also have the potential to support more equitable and sustainable forms of economic
development through their lending and technical assistance programs.

Other important terms in the discussion on economic globalization:

Tariff

A tariff is a tax or duty that is imposed by a government on imported or exported goods. Tariffs are typically
used as a means of protecting domestic industries from foreign competition by making imported goods more
expensive than locally produced goods. They can also be used to raise revenue for the government. Tariffs are
usually specific, meaning they are a fixed amount per unit of a good, or ad valorem, meaning they are a
percentage of the value of the good being traded.

Protectionism vs Trade Liberalization

Protectionism and trade liberalization are two opposing views on how to manage international trade.
Protectionism is the practice of using measures such as tariffs, quotas, and other restrictions to protect domestic
industries from foreign competition. In contrast, trade liberalization is the process of reducing barriers to trade,
such as tariffs and quotas, to increase the flow of goods and services across international borders.

Proponents of protectionism argue that it can help protect domestic industries and jobs from foreign
competition. They argue that without protective measures, foreign companies could flood the domestic market
with cheap goods, causing local industries to shut down and workers to lose their jobs. They also argue that
protecting domestic industries can help to build up strategic industries, such as defense or technology, which are
essential to national security.

However, opponents of protectionism argue that it can actually harm domestic industries in the long run. They
argue that protectionism can create inefficiencies and prevent domestic companies from competing globally,
ultimately making them less competitive and less innovative. Protectionist policies can also lead to retaliation
from other countries, resulting in a trade war that can harm global trade and economic growth.

In contrast, proponents of trade liberalization argue that it can lead to economic growth and increased
competition, ultimately benefiting consumers by providing them with more choices and lower prices. Trade
liberalization can also help to promote innovation and efficiency, as companies must compete on a global scale.
Additionally, it can lead to increased international cooperation and diplomatic relations between countries.
 Laguna State Polytechnic University
GEC 103: The Contemporary World
Noel A. Viray, Jr

Opponents of trade liberalization argue that it can lead to job losses and exploitation of workers in developing
countries. They argue that without protections for domestic industries, companies may move production to
countries with lower labor costs, resulting in job losses in developed countries. They also argue that trade
liberalization can result in a race to the bottom in terms of labor and environmental standards, as countries
compete to attract investment.

In conclusion, protectionism and trade liberalization represent two different approaches to managing
international trade. While protectionism aims to protect domestic industries and jobs from foreign competition,
trade liberalization seeks to increase the flow of goods and services across international borders, ultimately
benefiting consumers and promoting economic growth.

Most Favored Nation Principle

The most favored nation (MFN) principle is a fundamental principle of the World Trade Organization (WTO)
that requires member countries to extend equal treatment to all other member countries regarding trade in
goods and services.

This principle requires that any advantage, favor, privilege or immunity granted by one member to a product
originating from or destined for any other country must be immediately and unconditionally granted to the
same product originating from or destined for all other WTO members.

In simpler terms, this means that a country cannot discriminate between its trading partners by giving
preferential treatment to one country over another. For example, if a country lowers its tariff rate for a certain
product for one trading partner, it must also lower the tariff rate for the same product for all other trading
partners.

The MFN principle is considered essential to the functioning of the global trading system as it promotes
non-discrimination and ensures a level playing field for all countries. It also helps to prevent the formation of
exclusive trading blocs that could undermine the multilateral trading system.
 Laguna State Polytechnic University
GEC 103: The Contemporary World
Noel A. Viray, Jr

The Bretton Woods System

The Bretton Woods system was a global monetary system created after World War II that established rules for
commercial and financial relations among the world's major industrial countries. It was named after the town in
New Hampshire, USA, where it was created.

Under this system, the US dollar was pegged to gold, and other currencies were pegged to the US dollar. The
exchange rate between currencies was fixed, and countries had to maintain their exchange rates within a narrow
margin of fluctuation.

The International Monetary Fund (IMF) was also created under this system to oversee the international
monetary system and provide loans to member countries experiencing balance of payment difficulties.

However, the Bretton Woods system collapsed in 1971, as the US was unable to maintain the gold peg due to its
spending on the Vietnam War and social welfare programs. This led to the shift towards a floating exchange rate
system, where exchange rates are determined by market forces rather than being fixed by governments.

VI. Political Globalization

Political globalization refers to the increasing interconnectedness and interdependence of political systems across
national boundaries. It is driven by various factors, including advancements in communication technologies, the
growth of international organizations, and the rise of global issues such as climate change and terrorism.

Political globalization has resulted in the emergence of various forms of global governance, such as the United
Nations and other international organizations, that address issues that affect countries around the world. These
organizations work to promote cooperation and coordination among member countries to address global
challenges.

Another aspect of political globalization is the spread of democratic ideals and institutions across the world. This
has led to an increase in the number of democratic governments and a decline in authoritarian regimes in many
parts of the world.

However, political globalization has also been met with challenges and criticisms, including concerns over the
loss of national sovereignty and the perceived lack of accountability of global governance institutions.
Additionally, there have been concerns over the uneven distribution of power and influence among countries in
the global political system.
 Laguna State Polytechnic University
GEC 103: The Contemporary World
Noel A. Viray, Jr

Political globalization involves the increasing interdependence of governments and their policies on a global
scale. Some key actors in political globalization include:

● National Governments: National governments are the primary actors in political globalization as they
negotiate, form and implement international policies.

● International Organizations: These include intergovernmental organizations like the United Nations,
the World Trade Organization (WTO), and the International Monetary Fund (IMF), among others.
These organizations work to promote international cooperation and provide a forum for countries to
discuss and coordinate on global issues.

● Non-Governmental Organizations (NGOs): These are organizations that operate independently of

governments and work to promote various causes such as human rights, environmental protection, and
social justice, among others. They often exert pressure on national governments and international
organizations to take action on global issues. Here are some examples of NGOs: Amnesty International:
Amnesty International is a global human rights organization that advocates for the protection of
human rights around the world. Greenpeace: Greenpeace is an environmental organization that works
to protect the planet's natural resources and promote sustainable development. Oxfam International:
Oxfam is a global organization that works to address poverty and inequality by providing aid and
advocating for policy changes.

● Multinational corporations (MNCs) are businesses that operate in more than one country. They have a
presence in multiple countries and often have production, marketing, and distribution facilities in
several different locations around the world. MNCs are typically large companies with substantial
resources and significant influence on the global economy. They often engage in activities such as
international trade, foreign direct investment, and outsourcing to take advantage of lower labor costs or
to access new markets.Examples of multinational corporations include Coca-Cola, Apple, Toyota, and
ExxonMobil. These companies operate in many different countries and have a significant impact on the
global economy.

Here are some of the more important talking points in the discussion concerning political globalization.

Sovereignty: One of the key issues in political globalization is the tension between national sovereignty and
international cooperation. As countries become more interconnected, they may have to give up some control
over their policies and decision-making processes in order to participate in global governance.
 Laguna State Polytechnic University
GEC 103: The Contemporary World
Noel A. Viray, Jr

Power dynamics: Political globalization can also be seen as a reflection of power dynamics on the global stage.
Developed countries and their corporations often have greater influence in international organizations and
global governance structures, which can create inequities in decision-making and policy implementation.

Global governance: With the increasing interdependence of countries and their policies, there is a need for
global governance structures to address issues that transcend national borders, such as climate change, trade, and
public health. The effectiveness of global governance structures and their ability to address these issues is a
subject of ongoing debate.

Human rights: Political globalization also has significant implications for human rights. As countries become
more interconnected, there is greater pressure to uphold universal human rights standards, and international
organizations such as the United Nations play an important role in promoting and protecting these rights.

Nationalism: Some argue that political globalization has led to a rise in nationalism and populism in many parts
of the world. Nationalist movements often reject the idea of global governance and prioritize national interests
over international cooperation.

Global inequalities: Political globalization can exacerbate existing global inequalities, as developed countries
and their corporations often benefit disproportionately from global economic integration, while developing
countries may struggle to compete or may be left behind altogether.

Cultural or social globalization

Cultural or social globalization refers to the process by which cultural practices, beliefs, values, and ideas are
transmitted across national borders and become integrated into global culture. It involves the spread and
exchange of cultural products and practices, such as music, art, literature, cuisine, and fashion, as well as the
dissemination of cultural beliefs and values, such as human rights, democracy, and environmentalism. Cultural
globalization is facilitated by advances in technology, such as the internet and social media, which enable people
to connect and share information across the world more easily than ever before. It has both positive and negative
effects, such as the promotion of cultural diversity and understanding, but also the potential for cultural
homogenization and the loss of local traditions and identities.
 Laguna State Polytechnic University
GEC 103: The Contemporary World
Noel A. Viray, Jr

Cultural or social globalization theories

Homogenization Theory: This theory suggests that cultural or social globalization leads to a convergence of
cultures and the creation of a global culture that is dominated by Western values and practices.

Hybridization Theory: This theory suggests that cultural or social globalization leads to the creation of new,
hybrid cultures that are influenced by both local and global cultural practices.

Cultural Imperialism Theory: This theory suggests that cultural or social globalization is a form of imperialism,
where dominant cultures use their power to impose their cultural values and practices on other societies.

Glocalization Theory: This theory suggests that cultural or social globalization leads to the simultaneous
localization and globalization of cultures, where global cultural practices are adapted to suit local contexts.

Clash of Civilizations Theory: This theory suggests that cultural or social globalization will ultimately lead to
conflicts between different civilizations or cultures, as they struggle to maintain their unique cultural identities
in the face of globalization.
Laguna State Polytechnic University
GEC 103: The Contemporary World
Noel A. Viray, Jr