TCW REVIEWER (GLOBAL ECONOMY)

Economic globalization
 It refers to the increasing integration of economies around the world, particularly through
the movement of goods, services, and capital across borders
 is a historical process that is the result of human innovation and technological progress.
To explain, economic globalization is the economic mixing and interdependence of economies
across the world through an escalation of cross-cultural movement of goods, services,
technologies, and wealth (Joshi, 2009).
The phenomenon can thus have several interconnected dimensions, such as
1. the globalization of trade of goods and services;
2. the globalization of financial and capital markets;
3. the globalization of technology and communication, and
4. the globalization of production.

 In economic terms, globalization is nothing but a process of making the world economy an
organic system

Actors of Globalization

International Economic and Financial Organization

 provide the structure and funding for many unilateral and multilateral development projects.
 Their activities promote sustainable private and public sector development primarily by:
 financing private sector projects located in the developing world;
 helping private companies in the developing world mobilize financing in international
financial markets;
 providing advice and technical assistance to businesses and governments. Example:
International Monetary Fund (IMF) and World Bank.
International Governmental Organizations (IGOs)
 IGOs have international membership, scope and presence.
 Their primary members consist of sovereign states.
 These organizations bring member states together to cooperate on a particular theme or
issues that have global impacts and implications such as human rights, trade,
development, poverty, gender or migration. Example: World Trade Organization (WTO)
Media
 As the world becomes ever more complex and interconnected, access to information must
play an increasingly central role in every problem facing development specialists.
 At the individual level, access to information allows people to make informed choices-to
decide how to vote, to educate themselves on critical health issues, to get the market data
they need to sell their products, and ultimately to participate in the global community.
  African Media Development Initiative
 Global Forum for Media Development
 UNESCO Media Development
 ALJAZEERA
 CNN
 BBC
 TV PATROL
 24 ORAS
Multilateral Development Banks
 Are international financial institutions owned by countries.
 In addition to the World Bank Group, there are four regional multilateral development
banks:
 the Inter-American Development Bank,
 the African Development Bank,
 the Asian Development Bank, and
 the European Bank for Reconstruction and Development.
Nation-states
 refer to a certain form of state that derives its political legitimacy from serving as a
sovereign entity for a nation within its sovereign territorial space.
 A nation-state is a nation (a tightly-knit group of people which share a common culture)
which has the same borders as a State
 When a nation of people have a State or country of their own, it is called a nation-
state. Places like France, Egypt, Germany, and Japan ar excellent examples of nation-
states. There are some States which have two nations, such as Canada and Belgium. Even
with its multicultural society, the United States is also referred to as a nation-state
because of the shared American "culture."
State
In layman's term, state refer to a country and its government, A State (note the capital "S") is a
self-governing political entity. i.e., the government of the Philippines A state has four elements:
 Population– community of persons
 Territory - the space that's under state's sovereignty
 Government - a body that crafts various rule that people (society) follow
 Sovereignty - refers to internal and external authority of a state
Nation
 On the other hand, the nation according to Benedict Anderson is an imagined community.
 It is a community of people formed on the basis of a combination of shared features such
as language, history, ethnicity, culture and/or society. A nation is thus the collective
identity of a group of people understood as defined by those features.
  Nations are culturally homogeneous groups of people, larger than a single tribe or
community.
Non-governmental organization

 (NGO) refers to a legally constituted organization created with no participation or

representation of any government.
 In many jurisdictions these types of organization are defined as "civil society
organizations.“ Example: Philippine Red Cross, Philippine Animal Welfare Society, and
Child Hope Asia

Transnational corporation

 (TNC) is any enterprise that undertakes foreign direct investment, owns or controls
income gathering assets in more than one country, produces goods or services outside its
country of origin, or engages in international production
 Example: Nestle, Cadbury, Unilever, and BP-Amoco

Role of International Financial Institutions in the creation of Global Economy

WORLD BANK GROUP

 (WBG) emphasized its two goals. "to end extreme poverty and promote shared prosperity
in a sustainable way.
 The World Bank is a component of the World Bank Group of the following entities;
 International Bank for Reconstruction and Development (IBRD)
 International Development Association (IDA)
 International Finance Corporation (IFC)
 Multilateral Investment Guarantee Agency (MIGA)
WBG composed of five entities, namely
 International Bank for Reconstruction and Development (IBRD), a global
development cooperative owned by 189 member countries that provides loans,
guarantees risk management products, and advisory services to middle income and credit
worthy low income countries.
 International Development Association (IDA) that "aims to reduce poverty by
providing loans (called credits) and grants for programs that boost economic growth,
reduce inequalities, and improve people's living conditions" to complement IBRD by
lending money on concessional terms, credits with zero or very low interest charge
payable for 25 to 40 years, with a 5 to 10 year grace period
 International Finance Corporation (IFC), which is the largest global development
institution focused exclusively on the private sector in developing countries.
 Multilateral Investment Guarantee Agency (MIGA) that promotes foreign direct
investment (FDI) into developing countries.
 International Center for Settlement of Investment Disputes (ICSID), the world's
major arena, devoted to international investment dispute settlement.
 Essentially, WB- especially the IBRD and the IDA lends money to developing countries
for projects that will help them alleviate poverty and achieve sustainable development.

International monetary fund

 Its primary purpose is to ensure the stability of the international monetary system.
 The system of exchange of rates and international payments that enables countries (and
their citizens) to transact with each other.

Immanuel Wallerstein, 1930-2019

 He was an American sociologist and economic historian.
 He is perhaps best known for his development of the general approach in sociology
which led to the emergence of his world-systems approach
World System Theory model
 In his book, Wallerstein explains that the "world - economy...is a large geographic zone
within which there is a division labor and hence significant internal exchange of basic or
essential goods as well as flows of capital and capital labor.
 What unifies the structure most is the division of labor which is constituted within it."
Every "world" or "large unit" of countries - Wallerstein points out – is composed of a
core and a periphery.
 Core regions/countries typically treat their
peripheries as source of raw materials and laborers, and
as market for their surplus products.
 Hence, the economies of core regions/countries –
seemingly grow at the expense of peripheral
regions/countries.
 The latter are seemingly made permanently dependent
on the core regions/countries as they fail to or are
hindered from using their natural resources for
industrialization and – achieving
capability in production and innovation that requires
higher levels of labor and professional skills.