THE CONTEMPORY WORLD
6 core claims:
BS ACCOUNTANCY - ACT 232
1ST SEM | AUG 2023
 Globalization
The expansion and intensification of social
relations and consciousness across world
time and across world space.
Globalization process do not occur merely
at an objective, material level but they
also involve the subjective plane of
human consciousness.
Globalism
-It is a widespread belief among powerful
people that the global integration of the
economic market is beneficial for
everyone since it spreads freedom and
democracy across the world.
•
Globalization as a process...
- It is viewed as a multidimensional set of
social processes that generate and
increase worldwide social
interdependencies and exchanges while
at the same time fostering in people a
growing awareness of deepening
connections between the local and
distant.
• exchange restriction, capital controls, and
Globalization as a condition...
It is also referred to by scholars as
globality. It refers to globality as social
condition characterized by trans-planetary
relations.
• spreading various objects, practices, and
Globalization as an ideology...
It exists in people's consciousness
because it consists of a set of coherent
and complementary ideas and beliefs
about the global order.
• Globalization as an ideology is defined by
It is about liberalization of markets.
It is inevitable and irreversible.
Nobody oversees globalization.
It benefits everyone in the long run.
It furthers the spread of democracy in the
world.
It requires a global war on terror.
• Globalization as Internationalization
Internationalization includes activities by
entities such as corporations, states,
international organizations, private
organizations, and even individuals with
reference to national borders and national
governments.
Globalization involves gamut of human
activities that do not require references to
a state's national borders.
•
Globalization as Liberalization
Liberalization is commonly understood as
the removal of barriers and restrictions
imposed by national government to
create an open and borderless world
economy.
• Globalization is realized when national
government "reduce or abolish regulatory
measures like trade barriers, foreign
visa requirements.
•
Globalization as universalization and
westernization
Universalization denotes a process of
experiences to different parts of the
planet.
•
Westernization is not the only path that
can be taken by globalization as shown by
the studies on oriental globalization.
 International Trading System
- The oldest known international trade
route was the Silk Road. It was a network
of pathways in the ancient world that
spanned from China to the Middle East
and to Europe
- The establishment of Galleon Trade in
the era of mercantilism
- The adoption of the Gold Standard lead
by UK and US and other European nation
 The Post – World War II Economic System
- One of the important highlights of this
event in history is the establishment on
the International Monetary Fund and the
World Bank
- Bretton Woods Conference (July 1944)
- 44 Delegates convened in Hampshire,
USA
- Bretton Woods Institutions are known as
keys international economic organization.
 International Monetary Fund
- The IMF is governed by and accountable
to its member countries. The IMF has
three critical missions: furthering
international monetary cooperation,
encouraging the expansion of trade and
economic growth and economic growth,
and discouraging policies that would harm
prosperity.
 Facts about IMPF
*1944- IMF is established
*190 -member countries
*150 – Nationalities among staff
*24- Executive Directors representing 190
countries
The role of the IMF
The IMF works to achieve sustainable
growth and prosperity for all its 190
member countries.
 World Bank
- also known as the International Bank for
Reconstruction and Development
- The World Bank is an international
development organization owned by 187
countries. Its roles to reduce poverty by
lending money to the governments of its
poorer members to improve their
economies and to improve the standard
of living of their people
- It was created to grant long-term loans
for the economic development of less
developed countries and the
reconstruction of war-torn countries in
Europe.
 Facts about World bank
- It is an international development
organization owned by 187 countries
- The bank is also one of the world’s
largest research centers in development.
It has specialized department that use this
knowledge to advice countries in areas
like health, education, nutrition, finance,
justice, law and the environment.
- It was established in 1944 to help rebuild
Europe and Japan after World War II.
- The bank money to middle- income
countries at interest rates lower that the
rates on the loans from commercial
banks, in addition, the Bank lends money
at no interest to the poorest developing
countries, those that often cannot find
other resources of loans.
- The Bank borrows the money it lends. It
has good credits because it has large,
well-managed financial reserves.
 The role of the World Bank
- Its role is to reduce poverty by lending
money to the governments of its poorer
members to improve their economies and
improve the standard of living of their
people. The bank is also one of the
world’s largest research centers in
developments.
 General Agreement on Tariffs and trade
and the World Trade Organization
- GATT was established to avoid trade
wars by raising protectionist barrier as
witnessed during the interwar period
- GATT was superseded by WTO in 1995.
 World Trade Organization (WTO)
- is the only global international
organization dealing with the rules of
trade between nations.
 Facts about World Trade Organization
- It is an organization for trade opening.
-It is a forum for governments to
negotiate trade agreements
- It is a place for them to settle trade
disputes.
- it operates a system of trade rules.
 International Monetary System
- It is a set of general rules, legal norms,
instrument, and institutions shaping
payments conditions in foreign trade.
- The Gold Standard adopted by England
in 1816.
THE GLOBAL FINANCIAL CRISIS AND THE
CHALLENGE OF NEOLIBERALISM
 Neoliberalism
- is contemporarily used to refer a market-
oriented reform policies such as
“eliminating price controls, deregulating
capital markets, lowering trade barriers”
and reducing, especially through
privatization and austerity, state influence
in the economy.
- Neoliberalism came under the significant
strain during global financial crisis of 2007
– 2008 when the world experienced the
greatest economic turndown since the
great Depression.
THE STRUCTURES OGF GLOBALIZATION
THE GLOBAL INTERSTATE SYSTEM AND
GLOBAL IGOVERANCE
The Attributes of Today’s Global System
- There are countries or states that are
independent and govern themselves
- These countries interact with each other
through diplomacy
- There are international organization that
facilities their interaction
- Beyond simply facilitating meeting
between states, international organization
also take on lives of their own.
The Attributes of Today’s Global System
- There are countries or states that are
Independent and govern themselves
- These countries interact with each other
through diplomacy
- There are international organization that
facilitates these interaction
- Beyond simply facilitating meetings
between states, international
organizations also take on lives of their
own.
State- refers to a country and its
governments. it has four elements –
people, territory, government and
sovereignty
Nation according to Anderson is an
‘imagined community.”
Nation-state is composed of two non-
interchangeable terms. Not all nation is
state.
Interstate System
- was a concept of sovereignty can be
traced be traced back to “Treaty of
Westphalia in 1648 “(end of Thirty Year’s
War between the major continental
power of Europe)
- The Westphalia System provided
stability for the nation of Europe until it
faced a major challenge by Napoleon
Bonaparte.
- The Concert of Europe was created. An
alliance of great powers comprised of UK,
Austria, Russia, and Prussia. It sought to
restore the world of monarchical,
hereditary, and religious privileges of the
time before the French Revolution and
Napoleonic Wars.
What is international Organization?
- The term is commonly used to refer to
international intergovernmental
organization or groups that are primarily
made up of member states
- The powers of international organization
include: power of classification, power to
fix meanings, and power to diffuse norms
- International government organization
can be sources of great good and great
harm
The United Nation
-it serves as the primary organization for
international cooperation, peace, and
security
- The United Nations is an international
organization founded on October 24 1945
and committed to maintaining
international peace ad security;
developing friendly relation among
nations; better living standards and
human rights.
Six Principal organs of the United Nation
* Economic and Social Council
- Under the overall authority of the
general assembly, coordinates the
economic and social work of the United
Nations and the UN family of
organization. As the central forum for
discussing international economic and
social issues and the formulating policy
recommendations, the Council plays the
role in fostering international cooperation
for development. It also consults with
non-governmental organization (NGOs),
thereby maintaining a vital link between
the United Nations, and civil society
-The Council has 54 members, elected by
the General Assembly for three-year
terms. It meets throughout the year and
holds a major session in July, during which
a high- level meetings of Ministers
discusses major economic, social and
humanitarian issues
* Trusteeship Council
*International Court of Justice
* Security Council
* General Assembly
*Secretariat
- Antonio Gutierrez - Present (Portugal)
Challenges of the UN
- The limits lace upon its various organs
and programs by the need to respect
state sovereignty
- Issue related to security