CONCEPTS OF GLOBALIZATION For Steger (2005 & 2014a),
➔ The term globalization should be limited to a set of intricate
Economic imperialism
● one nation assumes economic power or influence over the others.
Age of "Westernization" and/or "Americanization" of contemporary
Filipinos
● Filipinos adopt ideas and behavior that are characteristic of the
West and of North America while relegating the ideas and
behavior traditional in their culture.
● Filipinos have become alien to Filipino products.
● The internet has also made the world smaller and communication
faster.
- As a result, the consumption of Western ideas and adoption of
behavior have become rapid and widespread.
GLOBALIZATION
● is a phenomenon.
Reich (1998)
➔ term whose meaning is obscure.
Schottle (1995)
➔ states that "globalization stands for quite a large public spread
across the world as one of the defining terms of the
20th-century social consciousness."
➔ The term is often distinguished more by what it is not, rather
than by what it is.
Rosenau (1996)
➔ recognizes such a tendency when he states that
Globalization is not the same as globalism, which points our
aspirations for an end state of affairs wherein values are shared by or
pertinent to all the world's five billion people, their environment, their
roles as citizens, consumers and producers with an interest in
collective action designed to solve common problems. Nor is it
universalism—values that embrace all humanity.
For McGrew (1990)
➔ Globalization is described as something that is comprised of
multiple sameness and interconnectedness that go beyond
the nation-states.
➔ A process in which individuals and organizations in one part of
the world are affected by the activities, affairs, and convictions
on another part of the globe.
Cerny (1997)
➔ Cluster of economic and political frameworks and procedures
deriving from the changing marks of the interests and assets
that comprise the foundation of the international political
economy specifically, the expanding structural differences of
those interests and assets.
First decade of the 21st century some scholars argued that
globalization is a process. For some, it is a condition while others
describe it as an ideology.
Freeden (2003)
➔ posits that globalization denotes a range of processes nesting
under one rather unwieldy epithet.
➔ In part, its conceptual difficulty to handle or control arises from
the fact that global flows occur in different physical and mental
dimensions.
Appadurai (1996)
➔ proposed five dimensions of global cultural flow, namely
'ethnoscapes," 'technoscapes,' 'mediascapes, 'financescapes,'
and 'ideoscapes.'
➔ These landscapes are created due to movements of people,
technologies, information through media, money and
commodities, and political ideas.
social processes that modify prevailing social statuses based
on the modern regime of self-dependent nation-states.
A number of scholars define globalization as a multidimensional
group of social procedures that build, accelerate, elaborate, and
intensify worldwide interactions while, at the same time, nurturing in
people an increasing consciousness of deepening linkages between
the local and far-off.
Steer (2005)
➔ uses the term globality to mean globalization as a condition.
➔ For him, globality denotes "future social condition
characterized by thick economic, political, and cultural
interconnections and global flows that make currently existing
political borders and economic barriers irrelevant."
The condition that many are now experiencing is a result of the
existence of multinational and transnational companies, international
trading, economic blocks, the United Nations (UN), the European Union
(EU), and the like.
GLOBALIZATION IS DEFINED AS AN IDEOLOGY
For some, ideology is dogmatic. While for others, it connotes
political sophistication.
(Gerring, 1997)
➔ Ideology may also refer to the dominant modes of thought .
Steger (2014b)
➔ defines ideology as a system of widely shared ideas,
patterned beliefs, guiding norms and values, and ideals
accepted as truth by some groups.
An ideology is defined by core claims. Since globalization has core
claims; hence, it is an ideology.
Steger (2014b) uses the term globalism to mean globalization as an
ideology.
● He then identifies five core claims 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.
Globalization is also defined differently depending on someone else's
expertise, experience, and perspective.
For a political scientist,
➔ globalization serves as a challenge to nation-states.
➔ The strengthening of regional blocks like EU, Association of
Southeast Asian Nations (ASEAN), and the UN is gaining a
stable ground.
➔ Similarly, the emergence of global political norms is
evident—for instance, the norm that each country is entitled to
the exploitation of human natural resources for its own growth
(Giensen & Pijl, 2006). Subsequently, there is the emergence
of global corporations. Businessmen and investors can
already demand what they want from the nation-state that
would advance their interests. Some of them prefer to go to
countries where they can earn more with the least cost.
For an economist,
➔ globalization means increase of free trade, speed of trade,
global economic organization, and regional trade blocks.
➔ The expansion of free trade allows governments not to restrict
the importation of products nor impede the export of local
products. Importing and exporting are done in just a
millisecond through technology and the internet.
➔ There is also the intense establishment of economic
organizations such as the International Monetary Fund (IMF),
World Bank (WB), World Trade Organization (WTO),
LADICA, PADA |1
 International Labor Organization (ILO), European Free Trade
Area (EFTA), Mercusor, a customs union among Brazil,
Argentina, Uruguay, Paraguay, and Venezuela, ASEAN Free
Trade Area (AFTA), and Trans-Pacific Partnership
for Culture and Communications experts,
➔ globalization refers to the concept of a global village.
➔ Through globalization, the world has become a borderless
world.
➔ Communication technology makes the world shrink.
McLuhan (1964) believes that media has connected the world in
ways that created a global village.
● Global village was McLuhan's ideal in the 1960s that has become a
reality during the later part of the century.
● More so, globalization is referred to as cultural imperialism. It is the
conviction that there is a "better" culture. Some cultures see other
cultures as superior to theirs, forming inferior or nondominant
cultures. In cultural globalization, therefore, the spread of popular
culture (e.g., music, art, literature, fashion, lifestyle, etc.) flows from
dominant to nondominant cultures (i.e., from developed to
developing nations).
One objective working definition is that of Steger's (2013):
"Globalization refers to the expansion and intensification of social
relations and consciousness across world-time and world-space."
- From this definition, four attributes of globalization can be drawn.
1. Globalization has various forms of connectivity such that it
can be economic, political, or cultural. These forms,
enabled by various factors, pressures, or media, affect
different degrees of interconnection.
● To illustrate, a Filipino minimum wage earner may suffer
from a slight price hike of basic commodities while his
neighbor who earns above the minimum might not be
affected by the said increase. This adjustment in prices of
commodities can be caused by national and international
economic and political events.
2. globalization allows for the expansion and stretching of
social relations. These can be observed in the existence of
non-governmental organizations (NGOs) that operate in
the local, regional, and international setting.
● For instance, the Philippine National Red Cross is an
affiliate of the International Committee of the Red Cross, a
humanitarian institution based in Switzerland. Social
relations can also be seen in the establishment of
sister-city relationships such as the cooperation between
Cebu City and Haarlemmermeer City of the Netherlands.
● In addition, social relations manifest in the establishment
of government associations and presence of multinational
companies in the Philippines
3. Globalization intensifies and accelerates social exchanges
and activities. Live telecast and the shift from snail mail to
email and social media are proofs of this attribute.
● In the early 1990s, some Filipinos could watch
international television shows only a week after the
episode aired. But now, cable TV and internet live
streaming allow Filipinos to watch shows as soon as they
are released. More so, mail can be sent instantly unlike
the mail courier-delivered letters of the 1980s.
4. Globalization occurs worldwide.
● Every person is a global citizen because he or she thinks
about the issues of the world. Europeans and Americans
used #prayformarawi in social media to show their
concern for the victims of the Marawi City siege in May
2017.
● Another instance is when teenagers associate themselves
with global trends like K-Pop. They imitate the way their
K-Pop idols dress up, dance, and even talk.
● Global citizens also assume a sense of responsibility in
global matters. One good example is the participation of
global citizens in Earth Hour every 3rd Sunday of March
and the expression of concern from the international
community for the alleged human rights violations of the
current administration in the Philippines.
Globalization may be defined and conceptualized from different
lenses, but an interdisciplinary definition is necessary. Some scholars
consider it as a process, a condition, or an ideology. Experts from
different fields of social sciences also define globalization based on their
specialization or expertise. But a working definition has to encompass all
definitions of and notions about globalization. Steger's definition, for the
purpose of this module, is the most unbiased working definition.
THE GLOBAL ECONOMY
Steger's (2014)
● (Globalization) as the expansion and intensification of social
relations and consciousness across world time and space implies
that there are various forms of connectivity.
● Globalization is a multidimensional phenomenon, creating
economic, political, cultural, and even technological forms of
connectivity.
- This section focuses on the economic dimension.
ECONOMIC GLOBALIZATION
- refers to the expanding interdependence of world economies.
Shangquan (2000)
● Attributes this to the growing scale of cross-border trade
commodities and services, flow of international capital, and wide
and rapid spread of technology.
➔ In the Philippines, cross-border trading can be best illustrated
by the country's trading partnerships with China, the United
States, and Australia.
➔ Moreover, the flow of international capital can be observed in
foreign direct investments (FDI),
FOREIGN DIRECT INVESTMENTS (FDI)
● A type of investment in which a company establishes a business in
another country for production of goods or services and still takes
part in the management of that business.
● A good example of this is Toyota Motor Philippines Corporation
which is a subsidiary of Toyota Motor Corporation based in Toyota,
Japan. This flow of international capital can also be observed in
foreign portfolio investments, trade flows, external assistance and
external commercial borrowings, and private loan flows
In 2008, the International Monetary Fund (IMF)
➔ defined economic globalization as 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" (IME, 2008).
➔ Economic globalization can be traced from the time when there
was economic movement in Asia, Africa, and Europe through
the Silk Road,
SILK ROAD
● A network of trade routes that connected the East, particularly
China, and the West. Historically, these routes also led to the
discovery of the Philippine islands when Portuguese and Spanish
envoys were in search of spices, which then spawned colonization.
● In the contemporary period, foreign expatriates come to the
country to manage their company's foreign subsidiaries. Likewise,
the Philippines sends thousands of skilled workers to the Middle
East as construction workers, seafarers, and nurses.
4 INTERCONNECTED DIMENSIONS OF ECONOMY
- Benczes (2014)
1. Globalization of trade of goods and services;
2. Globalization of financial and capital markets;
3. Globalization of technology and communication
4. Globalization of production.
LADICA, PADA |2
 GLOBALIZATION OF TRADE OF GOODS AND SERVICES
● Demonstrated in the establishment of the World Trade
Organization (WTO) that eases trade among countries.
- established in 1995,
- "ensures that trade flows as smoothly, predictably, and freely as
possible" (WTO, 2012).
● Another indicator is the emergence of China as a major supplier
and exporter of manufactured goods that has affected the world
economy.
● China-made products or parts are sent to the United States.
- To meet this demand, China creates more jobs for its citizens.
● Another good example of economic globalization of trade and
services is the increasing number of business process outsourcing
(BPO) companies in the Philippines.
- Why do American companies set up subsidiaries in the
country? Cheap labor cost, English proficiency, and customer
service skills are the common reasons.
GLOBALIZATION OF FINANCIAL AND CAPITAL MARKETS
● Evident in the liberalization of financial and capital markets.
● This is seen in cross-listing of shares on one or more foreign stock
exchanges, cross-hedging and diversification of portfolio, and
round-the-clock trading worldwide (National Research Council,
1995).
GLOBALIZATION OF TECHNOLOGY AND COMMUNICATION
● Emphasizes that various transactions and interactivities that
transpire instantly due to the internet and communication
technology
GLOBALIZATION OF PRODUCTION
● Best illustrated by the existence of multinational corporations
(MNCs) and transnational corporations (TNCs).
● The Coca-Cola Company is an example of an MNC. Based in
Atlanta, Georgia, USA, the company only manufactures syrup
concentrates and sells them to various bottlers that hold exclusive
territories in different countries including the Philippines.
● Toyota Motor Corporation is also an MNC. Through its subsidiaries
in Japan and in the other parts of the world, it has been selling
millions of vehicles every year since 1998
The most fitting definition of economic globalization is that of
Szentes' (2003):
The process of "making the world economy an 'organic system' by
extending transnational economic processes and relations to more and
more countries and by deepening the economic interdependencies
among them."
➔ This implies that the world economy is no longer controlled by the
nation-states, but it must be seen from a global context—the
reliance and integration of world economies.
➔ To illustrate, the price movements of imported fuels in the
Philippines are affected not only by the national Tax Reform for
Acceleration and Inclusion's (TRAIN Law) excise tax on fuels, but
also by the peso-US dollar exchange rate. At the same time, this
exchange rate is also affected by the global market and the
international economy's interest rates like the European Union (EU)
and the United States Federal Government's interest rates. It
cannot be discounted that global corporations directly affect the
inflow of US dollars in the Philippines.
Boyer and Drache (1996)
● state that the role of nation-states as manager of the national
economy is being redefined by globalization.
● Although such is the case, nation-states still act as a buffer to
negative effects of globalization.
● In support, Brodie (1996) calls the government as the "midwives" of
globalization. It means that nation-states are still relevant despite
assuming a global perspective and act as mediators between the
effects of globalization and the national economy.
Government policies and regulations either permit or deny the smooth
connection among world economies. In the looming trade war between
China and the United States, each government imposes high tariffs on
goods and services. Thus, this trade war does not only affect their
economies but also the rest of the world. On the other hand, some
experts claim that the actors are now the global corporations.
Ohmae (1995)
● argues that the nation-state has ceased to exist as the primary
economic organization unit in the global market.
➔ Filipino consumers, for instance, prefer to consume and avail of
global products and services like H & M, Uniqlo, Accenture,
Amazon, Alibaba, and FedEx.
➔ As a result of transforming the national economy into a global
one,
- Reich (1999) posits that national products, technologies,
corporations, and industries become obsolete. San Miguel
Corporation and Jollibee Foods Corporation are good
illustrations of this effect. These two Filipino companies have
expanded outside their home country as they are present in
Europe, US, and the rest of Asia.
- According to Gereffi (2005), such TNCs are the main driving
force of economic globalization accounting for two-thirds of
the world's exports. Forbes lists down companies from 63
countries that together account for $35 trillion in revenue,
$2.4 trillion in profit, $162 trillion of assets and have a
combined market value of $44 trillion (Schaefer, 2016).
INTERNATIONAL MONETARY SYSTEM (IMS)
● was created in order to set a system in the financial and economic
relations in the modern day.
● The establishment of an international monetary system (IMS) is
one of the actors that facilitate economic globalization.
● refers to internationally agreed rules, conventions, and institutions
for facilitating international trade, investments, and flow of capital
among nation-states.
3 GLOBAL INTERNATIONAL MONETARY SYSTEM (IMS)
Historically, there are three global IMS: the gold standard, the Bretton
Woods System, and the European Monetary System (EMS).
THE GOLD STANDARD
● Functions as a fixed exchange rate regime, with gold as the only
international reserve and participating countries determine the gold
content of national currencies (Benczes, 2014).
BRETTON WOODS SYSTEM
● The US dollar was the only convertible currency.
● Thus, it was agreed by 44 countries to adopt the gold-exchange
standard.
● Also, two financial institutions were established: the International
Bank for Reconstruction and Development (IBRD) and the IMF.
The former, now known as the World Bank,
- is responsible for post-war reconstructions. The latter aims to
promote international financial cooperation and strengthen
international trade.
- Another form of integration is the establishment of the EMS. It
came about after the collapse of the Bretton Woods System.
EUROPEAN MONETARY SYSTEM (EMS)
● Was successful in the stabilization process of exchange rates.
● It then prompted the foundation of a new European Economic and
Monetary Union (EMU).
● National currencies were abandoned and member states delegated
monetary policy to a supranational level administered by the
European Central Bank (European Commission, 2008).
● The development of international trade and trade policy is also a
form of such economic integration.
● Trade patterns must not be stagnant.
● Flow of goods must be voluntary but restricting it might affect the
relationship between and among states.
Benzes (2014)
● Believes that economic globalization fosters universal economic
growth and development.
LADICA, PADA |3
 ● For one, globalization allows a worldwide distribution of incomes.
Australia,
- for instance, cannot provide all the raw materials they need for
certain products or services, so it needs other nation-states to
produce or provide these materials. Also, economic
globalization reduces poverty (World Bank, 2002).
- As foreign countries are in need of workforce and human
capital, Filipino nurses become overseas workers; they go to
Europe and other foreign countries to support their families in
the Philippines. Lastly, globalization creates mutual
dependence between developing and developed countries
(Arrighi, 2005). Some developing countries rely on developed
countries for employment and income while the latter relies on
the former for raw materials and services like labor.

On the other hand, some observers of economic globalization believe

that it divides the world further.
● First, one might observe that the sources of goods and services
are exploited. Since these economically poor nation-states depend
on industrialized countries for employment and income, these
industrialized countries compensate their labor with cheap cost.
These industrialized countries even source materials from natural
resources of poor nation-states as another form of exploitation.
➔ Some even destroy nature without doing anything to
rehabilitate it.
● Second, economic globalization does not benefit all nations (World
Bank, 2002).
➔ There is an uneven experience among nations. Workers in
NCs are paid less compared to their counterparts in the
companies' home countries. This shows how cheap labor is in
the Philippines.
● Third, Wallerstien (2005) claims that capitalism created the
different levels of wages in the economic arena of world systems. It
further divides the world for it leads to inequality according to
expertise, experience, and skills.

In conclusion, economic globalization affects all nations and citizens

through the increasing integration of economies around the borderless
world. It's important players are the nation-states, global corporations,
and the international monetary systems. Though some people believe
that economic globalization brings unity of all economic movements,
others believe that globalization furthers the separation among
nation-states around the world.

LADICA, PADA |4
 MARKET INTEGRATION
After the Second World War almost all countries around the world
faced the great challenge of bringing their feet back on the ground.
As a substitute to the unsuccessful League of Nations, the United
Nations (UN) was established on October 24, 1945.
- Primarily, it was tasked to promote international cooperation
and to restore international order
Earlier in 1944 at the Monetary and Financial Conference in Bretton
Woods, New Hampshire (US), the first government-sponsored
international financial institutions were established -the World Bank
(WB) and the International Monetary Fund (IMF).
There are 2 types of international financial institutions:
- Intergovernmental
- Private
WORLD BANK
● The WB is an intergovernmental institution.
● Its aim is to end extreme poverty and promote shared prosperity in a
sustainable way (worldbank.org).
● There are five organizations that belong to the WB Group, namely,
1. the International Bank For Reconstruction and Development,
2. International Development Association,
3. International Financial Corporation,
4. Multilateral Investment Guarantee Agency, and
5. International Center for Settlement and Investment Disputes.
These organizations facilitate the granting of loans and
financial assistance to developing countries.
INTERNATIONAL MONETARY FUND
● also an intergovernmental institution
● works to foster global monetary cooperation, secure financial
stability, facilitate international trade, and more (imf.org/en/ About.
Like the WB, it also grants financial assistance and loans to
developing countries.
1960s
Regional development banks were established: the Asian
Development Bank (ADB) in 1960 and the African Development
Bank (AfDB) in 1964.
➔ These two are intergovernmental financial institutions that were
created to spur social progress and economic growth in order to
address and reduce poverty. As financial institutions, ADB and
AfDB are anchored on the goal of fostering sustainable
development in their respective member countries.
CITI GROUP AND MERRILL LYNCH
- private international financial institutions
- provide investments around the world. Investments can be in
the form of foreign direct investments, stocks, or financial
loans.
CITI GROUP
● is an American multinational investment banking and financial
corporation.
● It is the fourth largest bank in the US (citigroup.com).
MERRILL LYNCH
● is the wealth management division of the Bank of America.
Both intergovernmental and private financial institutions help facilitate
the functionality of a global economy by lending money to their
member states and global corporations. For example, the World Bank
helps in project lending, establishes structural reforms, provides
support and technical assistance, and helps design modern and
durable social safety nets for the benefit of both developed and
developing nations (Stiglitz, 1998). It also provides international capital
like foreign direct investments, short-term capital, and long-term
investments.
A. THE INTERNATIONAL MONETARY FUND
● helps establish institutional bodies to address and reduce poverty
like the African Regional TechnicalCenters (AFRITACs) in 2001, and
assists in creating the conditions for mobilization of private domestic
and foreign capital and job generation growth (Kohler, 2002).
B. ASIAN DEVELOPMENT BANK
● lends Money for the building of infrastructures that leads to growth in
business (Oxfam.org.au, 2013).
Clearly, these global institutions are active agents in fostering social and
economic development by providing various forms of help to improve
the national and the global economies.
GLOBAL MARKET INTEGRATION
● It was the result of the establishment of a global economy that
involved the homogenization of trade and commerce. Prior to the
trends in globalization of the 20th century, international trade and
exchange of goods and services were already practiced.
● Harvey (1990) sees that cities and countries were able to extend
their reach beyond borders and patterns of trade and technology
because of developments in shipping and navigation.
- This was observable in the development of maritime transport
throughout history.
● Colonialism and imperialism rose as the new ways of putting order
to the economic interrelationships among countries. Equity,
corporate ownership, management subsidiaries, and central
headquarters which supply and distribute goods and services were
established through colonialism.
- The Spanish government in the 1600s, for instance, made use
of its colonies like the Philippines andMexico as suppliers of
its resources for trade.
The integration of the global market started when big American
corporations began to emerge after the Second World War with the rise
of new conglomerates. International Telephone and Telegraph Bought
Avis Rent-a-Car, ContinentalBanking, Sheraton Hotels, and Hartford
Fire Insurance (American History, 2018.
Later, Japan and Europe followed suit. Japanese global automobile
corporations like Toyota, Nissan, and Isuzu took off after the giant
American companies flourished.
➔ These companies prospered as the primary and global makers of
trucks for the Japanese military (Dower, 1992).
➔ Renault automobiles, a French multinational automobile
manufacturer, was also used to help in the military post- war
operations.
➔ The rise of American, Japanese, and European global
corporations paved the way for the further development of
international trade.
Iwan (2012) identifies the differences among international,
multinational, transnational, and global companies:
★ International companies are importers and exporters with no
investments outside their home countries.
★ Multinational companies (MNCs) 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.
★ Global companies have investments and are present in many
countries. They typically market their products and services to
each individual local market.
★ Transnational companies (TNCs) 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 individual foreign
market.
LADICA, PADA |5
 American corporations operating internationally were at a great
advantage after the war for they had no competition. They had the
capacity to produce, organize, and distribute products because America
was not devastated by the war. Literature officially traced the start of
contemporary market integration from the return of the Japanese and
European corporations to the global market. It was acknowledged in
1974 that the major global economic actors were MNCs. Collectively,
they were described to be a particular corporate form to dominate global
production and exchange (Neubauer, 2014). Caroll (2003) termed the
emergence of international, multinational, global, and transnational
companies in the United States (US), the European Union (BU), and
Japan as the triad--the major economies of the world.

Gereffi (2001) identifies three structural periods in the existence of

global corporations after the war
a. investment-based period (1950-1970)
b. trade-based period (1970-1995)
c. digital globalization (1995 onwards)

The development of global corporations can be examined from the

sources and the levels of foreign direct investments (FDIs). The United
Nations Conference on Trade and Development (UNCTAD) defines
FDIs as funding made to acquire lasting interest in enterprises operating
outside the economy of the investor in which their purpose is to gain an
effective voice in the management of the enterprise (UNCTAD, 2011). In
1960, UN cited FDIs as the major drivers of global corporate
development and in 1990, FDIs tripled (Hedley, 1999).
➔ With this, around 20,000 new corporate alliances were formed in a
span of two years (Gilpin,2000).
➔ During the trade-based period, global corporations were
controlled by producer-driven commodities.
- As a result, firms are characterized by large amounts of
concentrated capital focused on large-scale or capital-
intensive manufacturing.
- More so, digital globalization affected the operation of global
corporations since technology became integrated in both
production and consumption.
- Producer-driven value streams have integrated their
corporate structures to reduce the effects of time and distance
in the production and consumption of goods while
buyer-driven value streams have changed the behavior of
corporations in retailing their goods and services via the
internet (Neubauer,2014).
- As Cammett (2006) observed, designing, ordering, factory
processing, inventory, delivery, branding, and advertising are
driven by digital operations since the 1990s.

The ascent of global corporations is a reflection of a globalized market

integration. TNCs and MNCs are no longer limited to their home
countries. They are able to expand their reach to other continents and
countries.

These global corporations have common attributes. Neubauer (2014)

identifies three of them--an agent of desired economic development, an
economic prominence, and a very powerful entity that can create a
crisis. These corporations may hit their target of economic development
by making their consumer products available in many parts of the globe.
● An example isNestlé. SomeTNCs and MNCs were only able
to reach their global annual growth target by exploiting the
environment. In the Asian Financial Crisis of 1997, global
corporations brought chaos to the economy of the Asian
region by controlling the foreign direct investments that
resulted in the increase of real estate values, aggressive
government infrastructure projects, and huge corporate
spending all funded by bank borrowings.

On the whole, international financial institutions play an important role

in the social and economic development programs of developing and
transitional nations. They are instrumental in the functionality of the
global economy which is reliant on global corporations.

LADICA, PADA |6
 GLOBAL INTERSTATE SYSTEM
Weber (1997)
- describes the state as a compulsory political organization with a
centralized government that maintains the legitimate use of force
within a certain territory.
On the other hand, the concept of nation emphasizes the organic ties
that hold groups of people together and inspire a sense of loyalty and
belonging i.e., ethnicity, language, religion, and others (Schattle, 2014).
Combining these two, a nation-state can then be defined as a political
community that emanates from civic society to legitimately execute
peace. Thus, the civic society is the basis of the people's oneness.
SCHOLARS: APPADURAI AND OHMAE
● claim that globalization has superseded the individual function and
jurisdiction of nation-states, this is still arguable. In fact, they still play
vital roles in the way globalization establishes a borderless world.
Nation-states can manipulate competitive advantages with
international and political issues, transnational civil society
organizations, and multinational companies.
● On the other hand, they are also accountable for a host of
international norms and standards, find themselves in subordinate
positions to protect their economy, and face new kinds of pressures
of supranational integration and focus of local fragmentation
(Schattle, 2014).
● However, if nation-states no longer have power in today's globalized
world, then why does the United Nations (UN), with its increasing
number of states, remain relevant in global decision-making?
The 194 member states of the UN prove that globalization has affected
the dynamics of nation-states in the context of their agency as legitimate
holders of force in their jurisdiction.
Globalization has, in a way, reshaped the role and functions of
nation-states as governing bodies in their particular territories:
1 Globalization is seen to impose a forced choice upon
nation-states.
● Either they conform to the neo-liberal ideas and
free-market principles of deregulation, privatization, and
free trade or run the risk of being left behind in terms of
development.
● Nation-states, in this contemporary age, are forced to
submit themselves to the demands of globally accepted
free-market principles.
➔ Friedman in Steger (2005) claims that nation-states
are in danger of losing important elements of
economic sovereignty because of the notion that
neoliberalism is beyond contestation as an aspect
of globalization.
➔ In other words, nation-states still exist but lose a
part integral to their economic development and let
global corporations control their economic
movement. Though government policies can be put
in place, nation-states are forced to realign their
policies to be congruent with the principles of free
trade because of the pressures from global
corporations.
ASEAN Free Trade Area (AFTA)
- Established by the member states of the Association of
Southeast Asian Nations (ASEAN), including the
Philippines
- Its goal is to encourage the member-states to deepen
their commitments in investment, trade, and industrial
collaboration to brace them for the increase in the
region's economic activity.
2 The establishment of economic and political integrations.
● One good example is the European Union (EU) and the
North America Free Trade Agreement (NAFTA). EU has
become a supranational body with 28 members. It has a
single currency and monetary system among 17 states,
parliament with legislative powers, with common citizens'
rights to live, work, vote, and run for office, with developed
collective mechanism to resolve crises and assist those in
need, and with intercontinental jurisprudence in the case
of the European Court of Justice and the European Court
of Human Rights.
● The statehood of the members is not dissolved, what has
changed is only how the nation-states function, in terms of
economy and politics, as part of a whole (Schattle, 2014).
3 The establishment of international laws and principles.
● Observable in the establishment of the UN that operates
as a forum for nation-states to air their differences and try
to resolve them.
● The UN Security Council has powers that include the
creation of peacekeeping operations and international
sanctions and the authorization of military action.
● Also, UN's International Criminal Court (ICC) prosecutes
individuals accused of crimes against humanity such as
genocide.
● The founding of ICC is based on the adoption of the
Rome Statute of International Criminal Court in 1998, with
the vote of 120 to 7, with 21 abstentions.
➔ It began functioning in 2002 when the statute
officially came into force.
➔ However, the United States, China, and India are
not signatories.
Thus, the treaty is not binding to these economic powers. Moreover,
there are also universal principles that are adopted by nation-states
in relation to the dynamism of globalization. Two of them are the
Universal Declaration of Human Rights that affirms an individual's
rights and the other is the United Nations Convention of the Law of
the Sea that defines the rights of nation-states on the use of the
world's oceans.
These three mentioned effects are vertical effects. Aside from this,
globalization also has a horizontal effect which can be observed
in the formation of transgovernmental Networks (Slaughter, 2004).
National government offices connect with their counterparts in other
nation-states in order to establish linkages that would benefit all
parties. These linkages are informal institutions that connect
legislators, finance ministers, and other valuable individuals who are
significant in carrying out various aspects of global governance. As
institutions, policies are agreed upon and individual state-participants
are conscious that their home country policies should not be violated.
4 Effect of globalization is the rise of transnational activism
(TNA)
● Such happens when activist groups of nation-states
connect with their counterparts in other states.
● For example, an advocacy-based organization in the
Philippines may connect itself with and get support from
other human rights groups in Europe to pressure the
Philippine government to realign its stance and actions in
upholding human rights.
When a nation-state recognizes international interventions and
changes its behavior in response to international pressure, it
reconstitutes the relationship among the nation-state, its citizens, and
international actors (Keck & Sikkink, 1998)
5 The creation of a new communications network.
● Globalization binds communities through digital media.
With new technologies in communication, political
interaction can happen in a virtual sphere. People can
exchange political perspectives through the internet,
therefore stirring political discourse on an online platform.
Because of the so-called network society (Castells, 2009),
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nation-states must reshape themselves to become part of
global networks in the arena of finance, education,
science, technology, arts, and sports.
➔ This can be seen in the proliferation of online
education from universities outside the Philippines.
Conversely, Philippine universities offer online
courses to non-Filipinos.
➔ Thus, digital media has become the platform for
strategic communications at home and abroad
wherein the nation-states can utilize the internet to
gather feedback from the citizens.
➔ Social media gives people the power to air their
sentiments, and also, serves as an avenue to
discuss issues.
➔ Government websites can also be avenues to
formally forward concerns to particular government
offices. Many nation-states also establish their own
state-funded television networks for information
dissemination as alternatives to the
well-established privately-funded news networks. In
the case of authoritarian and repressive states like
China, Russia, and North Korea, the
governments make use of media technologies to
filter content that can be viewed by their citizens.
➔ On the other hand, digital media can also be used
by governments to gain public support in their
campaigns.
Thus, social media, in particular, can become an alternative to
mainstream media that advances its biased perspective
INTERGOVERNMENTAL ORGANIZATIONS (IGOs)
● Were established in order to facilitate connections among
nation-states
● Their aim is to foster strong economic, political, cultural, educational,
and technical intergovernmental relationships.
● EXAMPLES: The Association of Southeast Asian Nations (ASEAN),
European Union (EU), and World Trade Organization (WTO)
Association of Southeast Asian Nations (ASEAN)
● Has 10 member states: Indonesia, Malaysia, Philippines,
Singapore, Thailand, Vietnam,
● Its aims are:
1. to accelerate economic growth, social progress, and cultural
development in the region;
2. promote regional progression;
3. advance peace and sustainability;
4. promote active and beneficial cooperation and mutual
assistance on matters of common interest in the economic,
technical, cultural, administrative, and scientific fields;
5. provide assistance to each other in the framework of training and
research installations in the educational, professional, technical,
and administrative spheres;
6. work hand in hand for more effective and greater use of
agriculture and industries;
7. advance Southeast Asian research; and
8. preserve close and beneficial collaboration with current
international and regional institutions with similar aims and
purposes
European Union (EU)
● Has 28-state members, established in November 1993
● Its goals are
1. to promote peace, its values, and the well-being of its citizens;
2. offer freedom, security, and justice without internal borders;
3. uphold sustainable development based on balanced economic
growth and price stability;
4. combat social exclusion and discrimination;
5. promote scientific and technological progress;
6. enhance economic, social, and territorial cohesion and solidarity
among member countries;
7. respect cultural and linguistic diversity; and 8) establish an
economic and monetary union
World Trade Organization (WTO)
● has 164 member-states.
● It is the sole IGO that caters to rules of trade on a global scale. Its
objective is to ensure that trade runs as smoothly, predictably, and
freely as possible.
● It also encourages trade by lowering trade barriers that may hinder
how products and services flow from nation to nation.
Some other examples of IGOs are the:
- International Criminal Court (ICC),
- North Atlantic Treaty Organization (NATO)
- Organization of Petroleum Exporting Countries (OPEC).
All IGOs serve purposes based on the common interest of their
member-states that are deemed beneficial to all parties involved.
INTERNATIONALISM AND GLOBALISM
The intensification of relations among nation-states gave birth to the
idea of internationalism and globalism. The former is the theory and
practice of interdependent collaboration while the latter is an attitude.
Internationalism
● basically anchored on the opinion that nationalism should be outrun
because links that bind people of different countries are more
powerful than those that disconnect them (Anora, 2014).
● Moreover, in order to avert wars, Immanuel Kant (1795) stated that
agreements among nations must be reached.
Immanuel Kant
➔ conceptualized the idea of liberal internationalism which
proposes that nations must give up their freedom and submit to
a larger system of laws that is embodied by common
international principles.
➔ He believed that a form of global government is needed to
create and enforce these laws.
Giuseppe Mazzini (1805-1872)
➔ assumed that nationalism and international cooperation
complemented each other.
➔ He believed that cooperation among nation-states is essential.
US President Woodrow Wilson (1856-1924)
➔ thought that nations were subject to the universal laws of God
that could be discovered through reason.
➔ He adopted the principles of self-determination, democratic
government, collective security, international law, and a league
of nations in his concept of internationalism.
Socialist Internationalism
● contradicts liberal internationalism.
● This form of 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.
● The notion of socialist internationalism is linked to the goal of a
world revolution-to end class struggle globally.
● The Second International (1889-1916), the original socialist
international, was an organization of labor and social parties
established in Paris in 1889.
- It is best known for declaring the International Workers Day
(May 1) and International Women's Day (March 8) and for
initiating the campaign for the eight-hour work day.
Globalism
● emerged as an attitude that seeks to understand all the
interconnections of the modern world and to highlight patterns that
underlie them. It pursues to describe and explain a world that is
characterized by a network of connections that span
multi-continental distances.
Overall, 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. It is
rooted in the idea of internationalism. Experts on interstate relations
cannot discount the numerous effects of neoliberalism on the rise of new
communication networks utilized by governments.
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 GLOBAL INTERSTATE SYSTEM
GLOBAL GOVERNANCE
● Makes world affairs systematic, secured, and formulaic.
● Weiss & Thakur (2014) describe global governance as the totality of
norms, laws, policies, and bodies that define, comprise, and
facilitate transnational relations between citizens, states, cultures,
intergovernmental, and non-governmental organizations. Rules and
norms put everything in order.
● Though global governance is rule-based, it has no central authority.
● However, there are systems for international relationships that bind
the states, people, and society together.
UNITED NATIONS (UN)
● has the most number of members among the established global
systems
● composed of six organs:
General Assembly
is the central deliberative and the only organ where all member-states
have equal representation in discussion and consideration, and
policymaking
Security Council
The organ which has the commitment to preserve peace and security.
Economic and Social Council
Main organ for cooperation, policy review, policy dialogue, and advice
on social, economic, and environmental issues.
Trusteeship Council
Organ tasked to administer international oversight for 11 trust territories
and to make sure that adequate procedures are taken for independence
and self-government.
International Court of Justice
● UN's prime judicial organ.
● The Secretariat is the organ tasked to execute the daily activities as
assigned by the five other organs.
The United Nations was established after the Second World War with
one central mission--to maintain international peace and security.
Currently, with the world being faced with numerous issues that threaten
peace, the UN serves as an actor in confronting these.
➔ In 1948, the UN was responsible for bringing human rights
into the realm of international law through the Universal
Declaration of Human Rights.
➔ The UN is also a space for its members to manifest their
perspectives through its core organs and committees.
➔ The organization has become an instrument for governments
to identify spaces of agreement and resolve problems
collectively by enabling the exchange of opinions between
and among its members and by hosting consultations.
Aside from maintaining international peace and security and protecting
human rights, the UN also carries the functions of delivering
humanitarian aid, promoting sustainable development, and upholding
international law.
The organization utilizes good offices, diplomacy, and mediation. It
does peacekeeping processes in countries with domestic conflicts and
peace-building tasks in countries freed from conflict, lessening the risk
of reversing into conflict and setting the groundwork for sustainable
peace and development. It agrees on the global battle against terrorism
and works for the removal of nuclear weapons and other instruments of
mass destruction. All of these are executed to maintain international
peace and security.
In order to protect human rights, the UN scrutinizes situations and
issues reported to them and oversees the exercise of international
human rights agreements. It takes responsibility for reviewing,
monitoring, reporting, and commending human rights from a
country-based perspective. It approaches human rights energy within
the UN development system and boosts awareness of the reasons and
acts of genocides, warns relevant players where there is a danger of
genocide, promotes, and mobilizes for relevant action. Ultimately, it
governs the conceptual, institutional, political, and operational
advancement of the Responsibility to Protect.
In delivering humanitarian aid, the UN is responsible for
coordinating responses to emergencies and supports rapid humanitarian
response for people affected by natural disasters and armed conflict.
MILLENNIUM DEVELOPMENT GOALS
● was set to promote sustainable development.
● In 2015, this was changed into the Sustainable Development
Goals (SDGs).
● These goals are the blueprint to achieve a better and more
sustainable future for all.
● This collection of 17 global goals covers social and economic issues
including poverty, hunger, health, education, global warming, gender
equality, water sanitation, energy urbanization, environment, and
social justice.
In order for international laws to be upheld, the UN settles legal
disputes referred to it by the member-states. It also accords advisory
opinions on questions that are of legal nature submitted by legitimate
UN organs and particular agencies.
The Security Council's veto power over resolutions is one of the
challenges that the UN has been facing since the organization's
foundation. For example, the UN resolution in December 2017 that
required US President Donald Trump to withdraw the recognition of
Jerusalem as the capital city of Israel was vetoed by the United
States in the Security Council. In effect, the resolution was not
passed. Some states refuse to adopt resolutions and statements
especially since the membership is on a voluntary basis. The new
government of Lebanon openly defied the Security Council's many
resolutions on the Israeli-Lebanon conflict. In 2017, the Philippines
voted against a United Nations General Assembly committee draft
resolution on the human rights crisis in Myanmar concerning the
Rohingya people. These challenges seem to hinder some of the
functions of the UN. Furthermore, Weiss and Thakur (2014), in their
article titled, The United Nations Meets the Twenty-first Century:
Confronting the Challenges of Global Governance, identify challenges
confronting UN based on knowledge, norms, policy, institutions, and
compliance:
1. In terms of knowledge, the UN, is underappreciated 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.
2. The contrasting moral structures of social behavior in different
member-states complicate the formulation of a normative
standard that can be applicable to all.
3. In formulating propositions, problems occur when only the
member-states are heard. The UN belittles the helping hand
of nongovernmental organizations (NGOs) and the global
public opinion. Sometimes, recommendations are not
executed.
4. Institutions can also be places where ideas are cornered 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.
Despite the establishment of global norms and international laws that
nation-states should follow, the nation-states are still relevant for there
will be no intergovernmental organization without them. Also,
international and multinational agreements are designed by the states
and propelled by the initiatives that they undertake. As Bertucci &
Alberto (2018) affirm, the sovereignty of nation-states in the midst of
globalization has not been diminished for the cooperation and converted
action among nation-states represent the greater exercise of their
sovereignty. Furthermore, the nation-states remain to be active agents
of local and transnational realms of concern.
To conclude, contemporary global governance defines the political
scope of globalization. Cooperation among nation-states is the only way
to reform and advance the roles and functions of interstate relationships
despite real challenges being faced by the United Nations.
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