THE CONTEMPORARY

WORLD
MODULE 1
Maria Ester Excelsis D. Jaymalin, PhD

DISCLAIMER: No part of this module may be reproduced, stored in a retrieval system or transmitted in any form or by
any means, mechanical, electronic, photocopying, recording or otherwise without the prior written permission of the
author/s. This module is distributed for the students of Aklan State University intended for academic purposes only.
 The Contemporary World
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MODULE 1
TABLE OF CONTENTS
Preface i

CHAPTER 1: INTRODUCTION TO THE STUDY OF GLOBALIZATION

1. Introduction to the Meaning of Globalization 2
2. Nature of Globalization 3
3. Globalization Theories 5
4. Origins and History of Globalization 7
CHAPTER 2: THE STRUCTURES OF GLOBALIZATION 10
1. The Global Economy 10
2. Theories of Global Stratification 11
3. Market Integration 13
4. International Financial Institutions 14
5. The Global Interstate System 15
6. Contemporary Global Governance 16
7. Peace Treaties and Institutions Governing International Relations 18
8. Globalization and Regionalization 19
9. Global Divides: The North and the South 19
10. Asian Regionalism 19
MODULE 2

CHAPTER 3: A WORLD OF IDEAS: CULTURES OF GLOBALIZATION

A. World of Ideas 24
1. Global Media Cultures 24
2. The Globalization of Religion 28
B. Global Population and Mobility 29
1. The Global City 29
2. Global Demography 31
3. Global Migration 33
4. Global Experiences 33
CHAPTER 4: TOWARDS A SUSTAINABLE WORLD
1. Sustainable Development 35
2. Global Food Security 36
3. Environmental Challenges 37
4. Women and Reproductive Rights 38
5. Global Citizenship 39
6. Global Filipino 41

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Preface

There is imperative need for updated instructional materials in this particular field, The
Contemporary World. During this troubled times beset by a worldwide pandemic called COVID 19,
instructors are at a quandary on how to encourage students to pursue learning about the subject
outside the usual methods previously employed in the traditional classroom setting. Based on
CHED course syllabus for The Contemporary World, this instructional material using the modular
approach has been made to fill that need so that students will still be able to acquire adequate
knowledge on the subject even without the physical classroom setting having activities following
the three domains of learning from cognitive, affective, and psychomotor to enrich learning.

This module presents an introduction to the concept of globalization which can help us in our
endeavor to understand the contemporary world. Our world has been confronted with so many
issues and challenges such as poverty, inequalities in all forms including income, gender and race,
loss of culture and national identity, environmental degradation, lack of food security, war and
violence. These challenges were brought about by global forces that compelled people, religions,
cultures, economies, communication and transport systems, technologies, societies to change to
the way they are today.

Understanding our contemporary world will help us understand ourselves, our culture and our
country better as we interact with those from the other side of the world. If we are able to understand
ourselves and our world, we will be able to look for solutions or at least find ways to somehow
address the problems we face in the present times in order to survive and thrive even paving the
way for a brighter future with the goal of having a better world for tomorrow.

This study on the contemporary world will focus on the most critical issues affecting us and
our world today as we encounter the phenomenon of globalization. This Module is divided into four
chapters namely: (1) Introduction to the Study of Globalization; (2) The Structures of Globalization;
(3) A World of Ideas: Cultures of Globalization; and (4) Towards a Sustainable World.

It is hoped that this material will help students understand globalization and contemporary
world. Utmost care and effort is made to present the necessary concepts in relation to globalization
and contemporary world in simple, clear and concise manner as far as possible given the limitations
in the availability of resources.

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ACKNOWLEDGEMENTS

Any creative work has its source of inspiration. Nothing comes from nothing
because it has to come from something. It can be said that nothing is totally new
under the sun but things can be presented in a fresh manner to make it original
and suit the needs of the times as we strive to improve what was previously done.

This work would like to acknowledge all the efforts and contributions made by
all predecessors with a deeply grateful heart because without them this work would
not have been possible.

Special thanks and heartfelt gratitude to Prof. Wilmer N. Benito, MAT and
Prof. Jennie T. Zaragosa, M Ed of Aklan State University Ibajay Campus who have
been generous with their materials and made commendable initial efforts.

This work will not be complete without the review of a panel of experts.

To Dr. Sergio F. Tolentino, III, who graciously served as part of the expert
panel, thank you very much for advice and providing recommendations to make
this module better.

To Prof. May Ann R. Pastrana, our School of Arts and Sciences Chair of
Research and Development Services, who also served as an expert panel, thank
you very much also for your recommendations.

To all those who in one way or another helped in the production of this
instructional material, thank you very much.

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CHAPTER 1: INTRODUCTION TO THE STUDY OF GLOBALIZATION

Learning Objectives:
1. Differentiate competing conceptions of globalization, its nature, theories and approaches
2. Identify the underlying philosophies of the varying definitions of globalization
3. Agree on a working definition of globalization for the course
4. Provide initial observations, analysis and discussion on one aspect of globalization
5. Create a personalized overview on the salient points of issues involved in globalization
=========================================================================
Introduction

What is your idea of our contemporary world? What is the first thing that comes to mind when
you are asked what this modern world means to you? We may never have exactly the same ideas
but most probably there would be descriptions that are similar or common among them. The likely
answer would be changes in our planet reflected in our use of technology with communications
made faster because of internet. We can get in touch with family and friends wherever they may
be with our mobile phones and computers immediately. We can even see what is trending, listen
to music, watch our favorite shows and artists, and know what is happening in other parts of the
world. If you want anything that needs to be sent to you, the delivery can be done in less time than
it would in previous years because of improvement in shipment and transportation system. Today,
we have better roads, bridges, vehicles, ports, boats, etc. This is because of new inventions,
gadgets, and latest scientific discoveries that has made things more convenient in our lives.

If one is to ask why globalization is the first concept raised in the course of the contemporary
world, it is because a discussion of the contemporary world cannot be done without discussion of
globalization as they go hand in hand. When we talk of the contemporary world, globalization is
involved. The study of globalization and the contemporary world will help us understand not only
the world we live in but ourselves. It will allow us to compare our society from those of others. It
may give us ideas or solutions to challenges we face when we find out about certain beneficial
practices done by other societies with similar situations as we have. We can learn vicariously from
experiences of others serving as our models so we can apply the most appropriate action in our
specific situation. As social beings, we cannot live without interacting with other people. Many will
have to deal with people of different cultures especially when they go to work or live abroad that
may not be accepting of other cultures and some face discrimination so adjustments must be made
to survive. This is the reality commonly experienced by Overseas Filipino Workers or OFWs. Even
Filipinos who remain in the country cannot avoid the challenges brought about by globalization
because it affects their way of life.

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Introduction to the Meaning of Globalization

In this study of the contemporary world, the very first questions we are likely to ask are: Why
do we have to study the contemporary world? Why do we have to spend time studying this concept
of globalization? How can we appreciate these definitions and help us understand globalization?

In the first place, this contemporary world is our home where we all live at these extraordinary
and unexpected times. In order to survive or live well in these times, we ought to have an adequate
understanding of this world. We must spend some time studying the concept of globalization
because it is a reality that affects all of us and it is a concept highly intertwined with the
contemporary world.

The way globalization is viewed affects the definition that is formed. If we are able to
understand globalization, we can better understand this contemporary world. The search for the
exact meaning or definition of globalization is not a simple task to do as it has a complex nature.
The literature found relating to the definition of globalization could generally be classified either as:
(1) broad and inclusive which can include a variety of issues overcoming traditional boundaries e.g.
Ohmae stated “…globalization means the onset of a borderless world...” or a world without limits;
and (2) narrow and exclusive which can be thorough but restrictive following one specific definition
e.g. Robert Cox discussed that “the characteristics of the globalization trend include the
internationalizing of production, the new international division of labor, new migratory movements
from South to North, the new competitive environment that accelerates these processes, and the
internationalizing of the state…making states into agencies of the globalizing world” (as cited in
Aldama, 2018).

Other definitions of globalization, apart from the classification whether broad and inclusive or
narrow and exclusive, have been offered by different people. Some descriptions are:
a) “Globalization is a global movement towards integration of the economy, finance,
commerce, and communications opening up local and nationalistic perspectives to a
broader view of an interconnected world with free transfers of capital, goods, and services
across national borders” (Lobo, Ambida, Maliban and Mesinas, 2019, p. 1).
b) Robertson defined globalization as “world compression and global awareness
intensification” (Lobo, 2018, p. 2).
c) Ritzer defined globalization as a so-called transplanetary process containing increasing
liquidity and the growing flows of people, objects, places, information and structures
encountered and create barriers to those flows (as cited in Aldama, 2018, p. 1).
d) Martin Khor briefly described globalization as “colonization” (as cited in Aldama, 2018).

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e) Manfred Steger provided the description that globalization is the “expansion and
intensification of social relations and consciousness across world-time and across world-
space” (as cited in Claudio and Abinales, 2018).
Globalization can also mean either:
a) a formation of a global village with closer contact to other parts of the world due to faster
feedback from internet for real-time communication; and
b) economic globalization where free trade increases relations among members of an
industry in different parts of the world but this causes some loss of economic national
sovereignty since the state becomes obligated to follow trade agreements with other
countries even to the detriment of the less developed state (Tomas, 2015).

These definitions consistently points out that globalization is indeed a complex movement
functioning at many levels making it difficult to define in one particular manner because of its
changing nature. However, for the purposes of this course, we can agree to a certain working
definition of globalization or simply define it as an economic process where transfer of goods,
services, and information flow effortlessly across borders leading to strengthen social relations with
others across the globe. Globalization thereby creates more enduring and highly interactive
connection, and dynamic co-dependence among societies in various economies.

Nature of globalization

What is the nature of globalization? It is not something fixed because it is a broad concept that
involves a great number of things closely related to integration of people, places, goods, services,
and information but with many contradicting views about its nature. With regard to the nature of
globalization, Tomas (2015) gave the following nature, metaphors, advantages and disadvantages
of globalization:

Nature of globalization
 Liberalization
 Free Trade
 Globalization of economic activity
 Liberalization of Import/Export System
 Privatization
 Increased Collaborations
 Economic Reforms

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Metaphors of globalization
(1) Solidity – are obstacles that prevent movement of things e.g. landforms, bodies of water;
(2) Liquidity – growing ease of movement of people, things, and information e.g. stock market
(3) Flows – movement of people, things, and information brought by penetrability of global
limitations e.g. foods introduced by foreign cultures (Aldama, 2018).

Signs of globalization
 faster international trade
 surge in international flow of capital including foreign direct investment
 larger trans-border data flow using technologies e.g. internet, communication satellites
 greater international cultural exchange e.g. export of Hollywood movies
 terrorism has also undergone globalization e.g. Terrorists attacked places over the world
 loss of national sovereignty through international agreements and forming of organizations
 grander international travel and tourism
 expanded immigration including illegal immigration
 increase of global telecommunications infrastructure
 improvement of global financial systems
 more multinational corporations controlling an increased share of the world economy
 rising standards like copyright laws applied globally by international organizations

Advantages of globalization
(1) Peaceful relations;
(2) Employment;
(3) Education;
(4) Product Quality;
(5) Cheaper Prices;
(6) Communication;
(7) Transportation;
(8) GDP Increase;
(9) Free Trade;
(10) Travel and Tourism; and
(11) External Borrowing.

Disadvantages of Globalization
(1) Health Issues;
(2) Loss of Culture;
(3) Uneven Wealth Distribution;

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(4) Environment Degradation;

(5) Disparity;
(6) Conflicts; and
(7) Cut-throat Competition (Tomas, 2015).

The nature of globalization cannot be complete without discussing the types of globalization.
David McDonald (2017) introduced the following:
Types of globalization
(1) Financial globalization – interconnection of world’s financial systems e.g. stock markets;
(2) Economic globalization – worldwide economic system that permits easy movement of goods,
production, capital, and resources (free trade) e. g. NAFTA, EU, MNCs;
(3) Technological globalization – connection between nations through technology e.g. internet;
(4) Political globalization – countries attempting to adopt similar political policies and styles of
government to facilitate other forms of globalization e.g. move to secular governments;
(5) Cultural globalization – merging of world’s cultures e.g. food, entertainment, and language;
(6) Ecological globalization – seeing Earth as a single ecosystem where problems are global in
nature e.g. international environmental treaties like biodiversity or climate change; and
(7) Sociological globalization – growing belief that we are all global citizens and should be held to
the same standards and same rights e.g. growing international ideas that capital punishment is
immoral and that all women should have the same rights as men.

Globalization Theories

How can the existence of globalization be explained? The Political Science Notes (2020)
provided eight theories of globalization with some description and they are as follows:
(1) Liberalism – sees globalization as driven by the market and connectivity across the globe come
from human drives for material well-being and exercise of basic freedoms and rights; (2) Political
Realism – interested in questions of state power, national interest, and conflict between states.
This is characterized by a strong state or ‘hegemon’ state keeping international rules and
institutions that often cater to its own interests. Globalization has been a stratagem in the contest
for power between major states in contemporary world politics often focused on activities of China,
Great Britain, France, Japan and USA. Political realists emphasize issues of power struggles, and
role of states to bring about global relations;
(3) Marxism – concerned with forms of production, social exploitation through unjust distribution of
wealth, and social deliverance by going beyond capitalism. To Marxists, globalization happens due

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to trans-world connectivity increases opportunities of profit-making and surplus accumulation.

Class is a key bloc of power in globalization;
(4) Constructivism – way people have constructed the social world with language, symbols, images,
and interpretation from forms of consciousness by focusing on how social actors ‘construct’ their
world in their own minds and by conversing with others like dialogue and symbolic exchanges but
it neglects structural inequalities and power hierarchies in social relations;
(5) Postmodernism – stresses significance of structural power in creation of identities and
standards where the leading structure of knowledge in modern society is rationalism where
authoritarian logic leads to a kind of cultural imperialism;
(6) Feminism – places attention on masculinity and femininity with social order being influenced by
biological sex where women are oppressed and violated over the course of history;
(7) Transformationalism – was explicated by David Held and his associates where globalization
reflects increased interconnectedness in political, economic, and cultural matters across the world
creating a “shared social space”; and
(8) Eclecticism – Scholte combined the above social theories of globalization as forces of
production, governance, identity, and knowledge.

Other theories according to Aldama (2018) worth mentioning and just as significant have been
put forth to explain globalization specifically:
(a) Homogeneity – increasing sameness in the world as cultural inputs, economic factors, and
political orientations of societies to create common practices;
(b) Heterogeneity – creation of various cultural practices, new economies, and political groups;
(c) Cultural imperialism – a given culture influences other cultures;
(d) Media imperialism – undermines alternative global media from developing countries;
(e) Americanization – import by non-Americans of products closely associated with Americans;
(f) McDonaldization – process by which Western countries are led by principles of fast food
restaurants involving global spread of rational systems such as efficiency, calculability,
predictability and control;
(g) Grobalization – process where nations or corporations impose themselves on geographic areas
to gain profits; and
(h) Glocalization – coined by Roland Robertson in 1992 for global forces mingling with local factors
and “glocal” is produced.

In addition, Held and McGrew’s (as cited in The Political Notes, 2020; Parjanadze, 2009) also
introduced three globalization approaches namely:

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(1) Hyperglobalists approach – neo-liberal agenda viewing globalization as open market placing
importance of global marketplace with multinational enterprises (MNEs) and intergovernmental
organizations (IGOs) as key actors;
(2) Sceptical approach – questions usefulness of trading blocs and views issue through historic
angle considering most exchange takes place on regional than global; and
(3) Transformationalists approach – more balanced stance towards globalization in agreement
with hyperglobalists on growth of global interconnectedness promoting economic and political
integration causing stratification distancing where some nations and communities get full
advantage but others become more disadvantaged.

The above-given theories provides us with different perspectives in explaining the existence
of globalization. Which among them is most convincing for you? As theories, they do not tell you
the exact fact or truth because they have yet to be proven.

Origins and History of Globalization

How did globalization start? There are many versions on the origins and history of
globalization that can leave us confused on which among them is most credible. However, one
version brought up in The World Economic Forum Annual Meeting appears to be quite
comprehensive and updated. According to Peter Vanham (2019) globalization has the following
significant periods:
(1) Silk roads (1st century BC-5th century AD, and 13th-14th centuries AD) – luxury products from
China started to appear on European continent specifically in Rome;
(2) Spice routes (7th-15th centuries) – spices were important to Islamic trades in the Middle Ages
from Maluku islands in Indonesia;
(3) Age of Discovery (15th-18th centuries) – European explorers such as Columbus discovered
America and Magellan connected East and West circumnavigating the world;
(4) First wave of globalization (19th century – 1914) – British Empire conquered the world with
inventions like steam engine as era of First Industrial Revolution;
(5) World wars – World War I in 1914 destroyed Western high society followed by US Great
Depression even ending the thriving economy in South America and World War II from 1939-1945
affected trade by lowering of world GDP to 5%;
(6) Second and third wave of globalization – new global economy with revival of global trade at the
end of World War II under United States of America with technologies of Second Industrial
Revolution like car and plane, fall of the Iron Curtain in 1989, fall of wall dividing East and W est

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Germany, collapse of Soviet Union, creation of World Trade Organization and the internet or new
technology from Third Industrial Revolution connected people around the world; and
(7) Globalization 4.0 – US and China have become two global powers dominating the cyber world
as the new frontier of globalization.

Another interesting version that could be found is from Ethan Hawkley’s (2014) dissertation
entitled “The Birth of Globalization: The World and the Beginnings of Philippine Sovereignty, 1565-
1610” because it has direct connection to the Philippines as the birthplace of globalization. In this
version, the birth of globalization and Philippine sovereignty were connected closely. Though not
the conception, the birth of globalization occurred in the Philippines. Miguel Lopez de Legaspi,
Miguel Banal (Tagalog datu or chieftain) and Chinese merchant Eng Kang (christened as Juan
Baptista de Vera) helped form a new power and sovereignty with the final name ‘The Philippines’
which was an unclear extension of Malay archipelago occupied by various ethnic groups in
independent villages. Around 1610, these villages unified and became a multiethnic network of
combined sovereignty named after a Spanish King, Philip II. Between1565-1610, the Philippines
was not merely colonized but globalized. When both Legazpi with his European Christianity and
Banal’s Muslim ancestors met, a religious union with lasting effects on Southeast Asia occurred.
Eng Kang brought silk from China to Manila and exchanged it for Spanish imported silver from the
Americas. This coming together of goods influenced not only the Chinese and Spanish but also the
Philippines and other nations. The coming together of silk and silver in Manila influenced the
emerging global economy. Legazpi, Banal and Eng Kang moved the Philippine colony to be
controlled by three external systems: 1) the European imperial system; 2) Southeast Asian Muslim
system; and 3) Chinese tribute system making it a hybrid interdependent political community.

There is also the version that globalization started from movement of people from Africa into
other parts of the world (Dedering, 2002). Therborn speaks of waves through a sequence of
epochs: (1) Globalization of religion (4th to 7th centuries); (2) European colonial conquests (late 15th
century); (3) Intra-European wars (late 18th to early 19th centuries); (4) Heyday of European
imperialism (mid-nineteenth century to 1918); (5) Post-World War II period; and (6) Post-Cold War
period (as cited in Ritzer, 2011; Aldama, 2018).

It is an essential human need to make our lives better that drove globalization. Although there
are many views that can be found as to the beginning of globalization, it is our choice which among
those perspectives is most convincing for us given the evidence to support their claims. However,
it cannot be denied that Philippines played an active role in global trade as early as precolonial
times with the existence of Manila-Acapulco galleon trade or even as early as ancient biblical times
of King Solomon if The God Culture documentaries (2017) on youtube is to be believed.

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CHAPTER 1
Process Questions (Use separate sheet for your answers)
1. Based on the definitions, nature, and types of globalization given above, how do you
differentiate the competing conceptions of globalization? Provide examples.
2. Identify the underlying philosophies/theories of the varying definitions of globalization?
3. Do you agree with the working definition of globalization given above for the course? If not,
what would you suggest as the working definition of globalization for the course?
4. How do you appreciate the effects of globalization in the course of history? Make a short
evaluation of one significant period in the history of globalization that greatly affected our
contemporary world. Example could be the Spanish period which attempted to erase much
of our rich precolonial culture and traditions and introduced Christianity.
Learning Activity 1: Quick Write
Before you look into every major topic indicated in the syllabus, write down your initial ideas
about each one in few words or phrases in bullet form (minimum of 5 for definition of globalization).
Learning Activity 2: Misconception Check
Search online or in books to check whether your initial ideas (at least 2) are correct or not.
Also write down (at least 2) common misconceptions of people about the topic. Indicate sources.
Learning Activity 3: Web Article Browsing on Topic
Browse the web and look for at least 2 articles related to the history of globalization that is not
well-known but supported by evidence. Write a short description and your references.
Learning Activity 4: Video Collection and Sharing
Go online and look for 2 short videos that has to do with globalization that interests you most
and share the links with the class to learn vicariously. This can be another version of globalization
history not well-known but ought to be something we should be aware of to appreciate our Filipino
identity, culture, society and rich traditions. Submit the links with short reaction why you like it.
Learning Activity 5: Personalized Digital Reviewer
This Personalized Digital Reviewer must contain only key words and phrases in one page with
brief descriptions to help you remember important details in globalization. Be as creative as you
can using colorful photos, highlight the important words organized like a pamphlet in such manner
that everything is easy to read and remember. Go by chapter from given topics as an overview.
Learning Activity 6: Storytelling: How globalization affected your life in this modern world?
Share a story on how globalization affected you. Include a realization you arrived at that may
explain why our contemporary world is the way it is now affecting you and your family including
your challenges to survive and thrive. For example, you think everything happens for a reason. If
we have not been colonized by Spain and America respectively, we would probably be a Muslim
nation and not communicate in English well. You can elaborate on this as long as you relate it in
your own situation. This is also a chance to get to know you.

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CHAPTER 2 THE STRUCTURES OF GLOBALIZATION

Objectives:
1. Define economic globalization and identify the actors that facilitate economic globalization
2. Explain market integration and articulate a global integration stance
3. Identify institutions that govern international relations and explain the role of international
financial institutions.
4. Differentiate regionalization and globalization
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Introduction
The way to understand globalization is to know how it is structured. When it comes to the
structure of something, we have to consider the things it is comprised of including its characteristics
and its types or classifications. This chapter will discuss the following: (1) the global economy; (2)
the theories of global stratification; (3) market integration; (4) international financial institutions; (5)
the global interstate system; (6) contemporary global governance; (7) peace treaties and
institutions governing international relations; (8) globalization and regionalization; (9) global
divides: the North and the South; and (10) Asian regionalism.

The Global Economy

Let us first define the global economy. The global economy denotes the worldwide
interconnectedness of economic activities that occur between various countries which can either
have a positive or negative effect on the countries engaged in it. The global economy is
characterized by:
(1) Globalization – process by which national and regional economies have combined to create a
global network of trade, communication and transportation;
(2) International trade – exchange of goods and services between different states and aided
countries to focus in their leading products;
(3) International finance – is a principal feature of a global economy involving currency, exchange
rates, and monetary policy where money can be moved at quicker speeds between countries than
good, services, and people; and
(4) Global investment – venture scheme not controlled by national borders through foreign direct
investment. Global economy can be understood by looking at its importance in relation to emerging
markets from the smallest level or micro to the expanded macro level studying how people make
decisions, how these decisions affect price, demand, and supply of goods in the market. Rich
individuals often do not come from emerging markets but they have helped to bring higher of
income to these countries still afflicted by poverty and something must be done to help the poor
(Edology, 2020).

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The concept of economic globalization goes hand in hand with the global economy. Economic
globalization talks about the way people, goods, and services are able to move around the globe.
Nowadays, just about everything can be moved faster and with such ease unlike the past eras
since technology has improved by leaps and bounds.

When it comes to economic globalization, two types of economies are associated with it:
(1) Protectionism – a policy of where government intervenes in foreign trade to encourage local
production in the form of quotas and tariffs or fees on imports/exports; and
(2) Trade liberalization – free trade where goods and services move more easily. However, free
trade does not mean it is actually free since some inequalities tend to develop. Those who control
much of trading are stronger nations. To lessen inequalities in the global world, the concept of “fair
trade” is raised where there is concern for social, economic, and environmental welfare of small
producers (Aldama, 2018).

In the global exchange of goods and services, there are the so-called actors that participate
to make economic globalization possible. These actors of economic globalization are as follows:
(1) Transnational corporations or TNCs; (2) State; (3) Labor; (4) Consumers; and (5) Social groups
(Western University, 2020).

Theories of Global Stratification

When there is stratification, there is inequality out of limited resources and opportunities with
priority given to powerful and wealthy people based on social status. With global stratification,
individuals and groups are ranked in societies around the world. Three main theories are used to
evaluate stratification:
(1) Modernization theory – economic growth is stopped when people fail to change certain beliefs;
(2) Dependency theory – introduced by Hans Singer and Raul Prebisch placed fault on colonialism
and capitalist system as reasons for countries being left poor for being exploited;
(3) World Systems theory – sociologist Immanuel Wallerstein implied about a country’s place in the
world economy. Core or wealthy countries have the advantage of obtaining labor and natural
resources from periphery or poor nations who are colonies first then continued work relations with
those wealthy countries in multinational corporations under the concept of neocolonialism.
Four stages of development by Walt Rostow:
(1) Traditional stage – societies organized around small communities where people produce only
for their family or community with inadequate resources and technology forming stringent social
hierarchy where tradition rules how a society functions e.g. feudal Europe;

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(2) Take off stage – new markets were formed and people began to use their abilities to produce
things outside their family to exchange goods with and status in society became associated with
how much wealth you have;
(3) Technological maturity – stage where industrial development started to prosper with increased
population, lesser number of people in extreme poverty, and more opportunities for leading to social
and economic change; and
(4) High mass consumption – whatever is produced is more on wants than needs and having social
support systems arranged to ensure citizens have access to basic needs.

Modernization theory does not recognize outside forces that pull back poor countries but
reasons out that if you invest in better technologies, you will prosper eventually. For critics, it is only
another name for capitalism as the way to progress economically. It puts blame on poor countries
for unwillingness to change cultural beliefs that made them stagnant. This theory led to
Dependency theory which sees poor countries having difficulty developing due to colonization and
exploitation of their natural and human resources by core/rich countries and even after de-
colonization, free trade made things worse making them much poorer by relying on labor and export
of raw materials to wealthy countries that later sell them at a higher price. For critics, this is not
enough to explain why some countries remain poor. If this is due to colonialism, why are some non-
colonized countries considered poorest like that of Ethiopia? And why have some former colonies
like Singapore and Sri Lanka prospered? Dependency theory blamed the capitalist market as the
main culprit of inequality but no attention is paid to culture and political governments having an
effect to a nation’s poverty. No proper way out to global poverty can be found from this theory which
makes no sense if poor countries are urged to stop interactions with wealthy countries or convert
into socialism globally. Inconsistencies in this theory led to World Systems Theory inspired by
Wallerstein who spoke of a capitalist world economy where wealthy countries are the core of world
economy and those with low income are considered the periphery providing them labor and
resources. (Aldama, 2018).

The above-mentioned three main theories provided an explanation on the existence of global
stratification and inequality but there were flaws in their arguments that paved for the next one.
Another theory can later come up because there are many factors that can explain inequality or
why a country remains poor even when not colonized and a former colony can rise to become a
core country. It is possible that a country can move up the global economic ladder due to
innovations coming from the talents of its people like K-Pop Idols or from important discoveries
useful in modern times like rare earth elements for many computer and electronic devices.

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Market Integration

We already know what a market is and it is a place where people buy or sell products or
services. If you want to buy something to eat or want clothes to wear, you go to a market. To know
market integration, we can easily search for its meaning in a dictionary. One definition that can be
found is from the Cambridge Business English Dictionary (2020) and it says “Market integration is
a situation in which separate markets for the same product become one single market.” It is also a
process to the expansion of a corporation by merging other market activities in one organization
structure (Lobo, et al., 2019). For example, if you own a milk tea stall and you want to expand your
business to include your friend who sells milk tea but with other flavors you don’t sell, you make an
agreement with your friend so you will share in the profits by merging your products in one store to
add variety and greater opportunity to earn a larger income. This is called market integration.

The level of market integration can be in different degrees and different types namely:
(1) Horizontal integration – a competitive scheme raising marketability over distributors and
suppliers, intensifies product differentiation, and help companies expand their market which can be
through an acquisition by buying a smaller company or merging with rivals in a certain industry to
lessen competition and gain more profit. One example is Disney as a large company fused with
two smaller companies, Miramax in 1993 and Pixar in 2006;
(2) Vertical Integration –a company becomes engaged in other parts on the value chain of the
industry. It becomes necessary when suppliers or buyers get more at the cost of the company so
the company purchases the buyer or supplier to remove their leverage and produce more profit.
For instance, Apple have their own Apple stores or eBay bought PayPal;
(3) Backward Vertical Integration – company going back or up the value chain by becoming a
supplier to its own production to escape higher supply prices or substandard materials to the
company’s product. One example is a motor company creating subsidiaries;
(4) Forward Vertical Integration – refers to a company moving down the value chain of the business
to become a buyer. One example is a company attempting retailing by means of automated vending
machines at selected malls and airports to make more profit than selling its products to a retail
store;
(5) Conglomerate Integration – is the union of companies with unrelated business activities.
Conglomerate mergers are of two kinds: a) pure – mergers of companies with nothing in common
and b) mixed – mergers of companies looking for extensions of their product. These mergers could
allow a monopoly in a particular market. One advantage of mergers is that they can allow
companies to double their reach for customers and increase their financial growth. On the other
hand, the disadvantage for mergers is that they can lead to a weakening of individual businesses
for scattering to several zones (Lobo, et al, 2019).

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International Financial Institutions

In our contemporary world, there are instances like a financial crisis brought about by a global
pandemic or calamity that compels a certain state or country to look outside its national borders for
financial assistance than what is available within its country. This is where international financial
institutions come in.

International financial institutions (IFIs) were created by groups of countries to make a pool
out of a portion of their financial resources to be utilized by any member country at a time of need
for a specific purpose mostly to help rebuild or improve a country’s economic condition. These
institutions were established to support public and private investment to encourage social and
economic development in developing countries afflicted by poverty.

The important IFIs in the world in the present times are as follows (Aldama, 2018):
1) Bretton Woods System – was established in 1944 after World War II to lessen trade
restrictions and help stabilize global finance with five key elements: (1) currency is
expressed in gold values for establishment of par value; (2) central bank serves as the
official monetary authority of a state; (3) International Monetary Fund (IMF) was established
to oversee exchange rates; (4) remove restraints on money of member states in
international trade; and (5) US dollar became global currency.
2) General Agreement on Tariffs and Trade (GATT) – a system that came out of Bretton
Woods as a forum for 23 countries to trade goods out of multinational trade agreements.
3) World Trade Organization (WTO) – is an independent multilateral organization in charge
of trade in terms of services, non-tariff related restrictions to trade, and other broader areas
of trade liberalization for the purpose of reduction of trade barriers.
4) International Monetary Fund (IMF) – established for peace advocacy to help economic
stability of the world that functions as banks but serves as lender of last resort for countries
in need.
5) World Bank (WB) – like IMF but has a long-term approach for eradication of poverty funding
to help poor countries.
6) Organization for Economic Cooperation and Development (OECD) – an extremely
powerful club that encompasses the wealthiest nations in the world with 35 member
countries having Lattvia as the last member as of 2016.
7) Organization of Petroleum Exporting Countries (OPEC) – was established at the beginning
with Saudi Arabia, Iraq, Kuwait, Iran, and Venezuela as founding members being major
exporters of oil even in the present times. Algeria, Indonesia, Libya, Qatar, and United Arab

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Emirates were added later. The organization was formed to increase the price of oil
because of its low price in the past to keep up with inflation.
8) European Union (EU) – has 28 member countries in Europe which adopted the euro as
currency with the exception of Denmark, Great Britain, and Sweden. The euro elevated
prices of goods in Europe and caused the economic depression of Greece, Portugal, and
Spain but the policies of the European Central Bank helped greatly in these circumstances.
9) North American Free Trade Agreement (NAFTA) – was initially a trade agreement to widen
international cooperation between Canada and the United States but in January 1, 1994,
Mexico decided to join them in order to expand world trade. It caused manufacturers to
transfer to Mexico for less cost in productions called ‘outsourcing’ but around two million
farmers left their farms and consumer prices went up with 25% of Mexicans becoming poor
and hungry but US became rich with $127 billion yearly.

The Global Interstate System

The state is regarded as “the institution that creates warfare and sets economic policies for a
country” (Aldama, 2018). This appears to be a negative or unfavorable statement but let us dig a
little deeper to understand it. The state, being a political unit, has the power to determine its
boundaries and whatever has to take place in their country in accordance to the idea of state
sovereignty agreed upon in the 1648 Treaty of Westphalia.

A state or a country is likely to interrelate or have trade relations with other countries to
exchange their goods. When there is an expanding interaction with other countries, the
phenomenon of internationalization occurs. Although internationalization does not mean
globalization, it plays a major part in globalization (Claudio, 2018).

When it comes to Global Interstate System, it is a systematized institution that oversees

trading across the globe for shared advantage where both sides are able to profit (Lobo et al, 2019).

In an interstate system, there are four key characteristics according to Claudio and Abinales
(2018) that can be found circulating in global politics specifically:
(1) Independent countries that manage themselves;
(2) Nations relate with other nations by way of peaceful negotiations or diplomacy;
(3) United Nations (UN) or other international institutions help these relations;
(4) International organizations proceeds with their own agendas.

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How did a Global Interstate System originate? We can start with the idea of a nation-state
which is a fairly modern marvel in the course of human history for people did not always identify or
organize themselves as countries but as tribes or villages in some regions or members of the
Christian world. The nation-state is comprised of two words that cannot be interchanged. This
means that not all nations are states and not all states are nations. For example Scotland as a
nation belongs to the United Kingdom as a state. How, then, is a nation different from a state?
‘Nation’ is an “imagined community” for Benedict Anderson that lets one feel the connection with a
community of people that they may never meet in their lifetime but people have taken in a specific
culture, speak a common language, and reside in a particular territory. If this makes you confused,
it can be simplified by referring to the state as a country with its government having four features
from Claudio and Abinales (2018) namely:
(1) It exercises power over its people or citizens;
(2) It rules over a definite territory;
(3) It has a government that create laws for people to follow; and most importantly,
(4) It has sovereignty or dominion over its territory whether internally or externally.

The Global Interstate System started with the Westphalian system providing stability in
European nations but with Napoleon Bonaparte, things changed when he spread the principles of
liberty, equality, and fraternity challenging the power of kings, nobility, and religion. The period from
1803 to 1815 were Napoleonic Wars implementing a Napoleonic Code that does not allow birth
rights for noblemen, promoted freedom and religion, and supported advancement by merit or
meritocracy in government service for every country they conquered. However, this code changed
in 1815 when Napoleon lost in the Battle of Waterloo. This led to restoration of Westphalian system
where monarchs revived their birth rights and religious privileges in the Concert of Europe uniting
great powers consisting of Austria, Prussia, Russia and United Kingdom. From 1815 to 1914
restoration of state sovereignty called the Metternich system after Austrian diplomat Klemens von
Metternich as main founder. Today, states are regarded as self-governing and violent imposition of
government systems in other countries were frowned upon. The Concert system influenced the
present world politics by forming an alliance in the UN and the Security Council with five permanent
members who can veto over the decision of the council (Claudio and Abinales, 2018).

Contemporary Global Governance

What is contemporary global governance? If we know how each country is governed, then,
we can surmise that contemporary global governance is at the global level composed of different
countries joined together to govern themselves even when there is no actual global government at

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these present times. It means a collective of countries or nations agree and allow themselves to
follow the same set of rules in this day and age. This term has been described in other ways:

Global governance in these contemporary times speaks of several overlapping procedures

that produce international order. There may not be an actual global government yet but there are
organizations like United Nations that can resemble it. It runs global developments despite the lack
of global government. It can take the form of laws or properly established organizations to bring
about combined dealings by diverse issues including states, intergovernmental organizations,
NGOs, other societal actors including groups and individuals. (Claudio and Abinales, 2018).

Global governance unifies varied actors to harmonize shared action at a global level. It
endeavors to provide global public goods like security, peace, justice, and mediation systems for
markets that works with and integrated criteria for trade and industry. One vital global public good
is disaster risk management that places proper tools in place to greatly lessen the possibility and
effect of any incident that could cause the death of 1 billion persons through the world, or harm of
the same scale. The foremost organization in custody of global governance today is the United
Nations founded in 1945 at the time the Second World War was brewing to evade impending
clashes on a global magnitude (Global Challenges Foundation, 2020).

The most simple definition comes from WHO (2015): Global governance is understood as
“…the way in which global affairs are managed.” WHO even mentions that global governance cover
a range of actors comprising countries and even regional and international organizations. It is also
described as ‘consensus-forming’ in initiating agreements that affect states and TNCs.

What are the sources of global governance? How can global governance occur? Global
governance can only happen when states sign an agreement called treaties and when they form
organizations and create international rules or law governing states.

Global governance has its drawbacks and was criticized by WHO (2015) to have three primary
gaps: (1) jurisdictional gap; (2) incentive gap; and (3) participation gap. Thakur & Weiss (2015)
contended that there are five specific gaps: (1) knowledge gaps; (2) normative gaps; (3) policy
gaps; (4) institutional gaps; and (5) compliance gaps. Look at the above source for more details.

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Peace Treaties and Institutions Governing International Relations

The world has been ravaged by wars since time immemorial and one way to end it is a peace
treaty or an agreement from each side of the conflict expressing the terms and conditions that will
make them withdraw and not pursue the conflict anymore. It can be said that war is quite a barbaric
and destructive way of settling conflict because it is costly to the lives and resources of the warring
parties or sides. Let us look into other definitions of peace treaties:
(a) A peace treaty is a legal document between two or more hostile parties, usually countries or
governments, which formally ends a state of war between the two parties (American Bar, 2018).
(b) Peace treaties have been the common instrument of mankind to end war (Lesaffer, 2018).

The most important peace treaties in world history are as follows: (Pillalamarri, 2016)
(1) Treaty of Tordesillas (1494)
(2) The Peace of Westphalia (1648)
(3) The Treaty of Paris (1783)
(4) The Congress of Vienna (1814-15)
(5) Treaty of Versailles (1919)

When we talk about global politics and governance, it involves diplomatic relationships
between and among different countries to foster peace and friendly engagement with each other.
There are six international organizations established after World War II that are considered most
important when we talk about those that govern international relations (Global Era Issues, 2020):
(1) United Nations
(2) North Atlantic Treaty Organization (NATO)
(3) World Trade Organization (WTO)
(4) European Union (EU)
(5) Group of Twenty (G20)
(6) International Criminal Court (ICC)

It should come to no surprise that leading among these institutions is the United Nations (UN)
because it is the largest political organization in the world where different nation-states meet and
deliberate on whatever issues with international scope it wants to tackle without resorting to war. It
was established to restructure the world after devastation of World War II and its main objective is
to uphold peace and form friendships beginning with 50 member countries but now close to 200
having South Sudan as the latest member in 2011 (Aldama, 2018). For more details about UN and
each of the above-mentioned international institutions, you can search online for Global Era Issues.

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Globalization and Regionalization

We already discussed globalization earlier and from what we can gather from today’s news, it
seems globalization is losing its appeal because the United States can no longer afford to be a
global power with declining GDP and scaling down of its global commitments. As a consequence,
more countries are turning to regionalization. Before we can even discuss regionalization, we have
to define what regions are. Regions refer to a group of countries located in the same geographical
area or merged to two regions or combined to more than two regions that are organized to regulate
flows and policy. Now, ‘regionalization’ and ‘regionalism’ are two terms often interchanged with one
another but let us make a distinction. ‘Regionalization’ refers to the regional concentration of
economic flows whereas ‘regionalism’ is a political process characterized by economic policy
cooperation and coordination among countries according to Edward Mansfield and Helen Milner
(as cited in Claudio & Abinales, 2018). The phenomenon of regionalization started when countries
created regional associations for many reasons including military defense to protect themselves
from outside threats and to help counter economic crisis. The Philippines, being part of the
Association of South East Asian Nations or ASEAN, played a commendable active role to foster
cooperation and development within the region of Southeast Asia.

Global Divides: The North and the South

The difference of economic growth is what backed to the division of the North and the South
created at the start of nineteenth century and became two distinct regions. The North enjoyed
plenty of good soil and climate with abundant natural resources that made industry prosper and
children are able to attend school but it was opposite in the South and only a small number of white
Southerners are literate. Example of North – New York and example for South – New Orleans.

Asian Regionalism

It was Australia and New Zealand who pioneered open regionalism but the Asia-Pacific region
took a while later to catch on due to legislators not paying attention to the concept of regionalism.
In the next half century, Asian economies performed well by adopting outward-oriented strategies,
promoting trade and foreign investment. This led to the expansion of intra-regional trade and
investment with TNCs and large corporations added to the growth of Asian industrialization
process. Institutional arrangements followed market initiatives but regional initiatives varied in
success. Regionalism can coexist with globalism and serve as building blocs for economic welfare.

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CHAPTER 2
Essay Process Questions:
1. How do you define economic globalization in your own words? Who are the actors that
influence economic globalization?
2. Explain market integration. What is your stance in global integration on whether we should
participate in it or not since developing countries are often at a disadvantage compared to
dominant developed countries in global free trade?
3. What are the institutions that govern international relations? Explain the role of international
financial institutions.
4. How do you differentiate regionalization and globalization?

Learning Activity 1: Film Showing and Film Analysis

Search for a short on youtube or other online sources to show to the class any issue that has
connection with economic globalization that is most interesting to you, provide a reason why you
wish to bring awareness of this issue to the class and make a short analysis of at least one page.
When you analyze, look for value and meaning of what you are watching. For example, because
of COVID 19 pandemic, global economy changed and many people are going through hard times.
You can show a video of things people resort to stay positive and survive like a particular inspiring
drama, song, or event around inequalities or new gadgets paving the future in this contemporary
world. You can show your most favorite thing to watch online. Make sure to indicate your sources.
Learning Activity 2: Power Point Report
Power Point Presentations have become the common modern method for reporting replacing the
use of manila paper and chalkboards for visual aids. Make a power point presentation on your
assigned topic. To avoid duplication of work, syllabus topics will be distributed alphabetically
according to surnames in your class. The instructor will set the guidelines and schedule for it.
Learning Activity 3: Photo Collection/Montage on Globalization and Picture Analysis
Collect photos that you find that has connection with issues brought by globalization and make a
montage out of it. Make a one-page picture analysis of it.
Learning Activity 4: Problem Solving to Global Issues/Recommendations
Select at least two global issues that are seriously affecting this contemporary world that must be
solved. Make recommendations that will help solve these problems.

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REFERENCES
Aldama, P. (2018). The Contemporary World. Manila: Rex Book Store, Inc.

American Bar. (2018, November 20). Understanding Peace Treaties – American Bar
Association. Retrieved from https://www.americanbar.org > groups

Cambridge Business English Dictionary. (2020). Market Integration. Cambridge University Press.
Retrieved from https://www.dictionary.cambridge.org

Claudio, L. and Abinales, P. (2018). The Contemporary World. Quezon City: C & E Publishing, Inc.

Dedering, T. (2002, October 1). Globalization, Global History, and Africa. Sage Journals: Journal
of Asian and African Studies. Retrieved from https://doi.org/10.1177/002190960203700302

Edology (2020). How does the global economy work? Edology. Retrieved from
https://www.edology.com

Global Challenges Foundation. (2020). What is Global Governance? Jens Orback. Retrieved from
https://globalchallenges.org>global

Global Era Issues. (2020). Globalization: Six Essential International Organizations You Need to Know. World101.
Retrieved from https://world101.cfr.org >

Hawkley, E. (2014). The Birth of Globalization: The World and the Beginnings of Philippine
Sovereignty, 1565-1610. Boston, Massachusetts: Northeastern University.

Lesaffer, R. (2018, March 28). Peace Treaties. Oxford Bibliographies. Oxford University Press.
Retrieved from https://www.oxfordbibliographies.com

Lobo, J., Ambida, M., Maliban, N. and Mesinas, M. (2019). The Contemporary World.
Mandaluyong City: Books, Atbp. Publishing Corp.

McDonald, D. (2017, February 27). What are the major types of globalization? Retrieved from
https://www.quora.com

Nobutaka, I. (2001). The Information Age and the Globalization of Religion. Kokugarin
University: Institute for Japanese Culture and Classics. Retrieved from
www2.kokugarin.ac.jp > global

Parjanadze, N. (2009). “Globalization Theories and Their Effect on Education,” IBSU Scientific
Journal. 2 (3), p. 77-88.

Pillalamarri, A. (2016, November 12). The 5 Most Important Treaties in World History. The National
Interest. Retrieved from https://nationalinterest.org > blog >

Ritzer, G. (2011). Globalization: The Essentials. USA: John Wiley & Sons Ltd.

Thakur, R. & Weiss, T.G. (2015) Cha & Weiss, T.G. (2015) Chapter 2, Framing Global Governance,
Five Gaps, pages 27-40, in Steger, M., The Global Studies Reader. New York, New York:
Oxford University Press.

The God Culture. (2017, February 14). Original Solomon’s Gold Series – Part 1: Where is Ophir?
Philippines? Sheba, Tarshish, Havilah. Retrieved from
https://www.youtube.com/watch?v=zMoEr

The Political Science Notes (2020, July 23). Retrieved from https://www.politicalsciencenotes.com

Thomas, B. (2015). Module 1 Contemporary World. Retrieved from https://www.scribd.com

Vanham, P. (2019, January 17). A Brief History of Globalization. World Economic Forum.
Retrieved from https://www.weforum.org > 2019/01

Watson, J. (2017). Cultural globalization. Retrieved from https://www.britannica.com > science

Western University. (2020). Globalization’s actors main actors 1tncs 2the state 3labour. Course
Hero, Inc. Retrieved from https://www.coursehero.com

World Health Organization (WHO). (2015). Global Governance. January 2015. Available Online:
http://www.who.int/trade/glossary/story038/en

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About the Author for Module 1

Dr. Maria Ester Excelsis D. Jaymalin is

presently teaching at the main campus of
Aklan State University, Banga, Aklan and the
School of Arts and Sciences Chair of
Curriculum and Instruction. She previously
held the position of Department Chair of
Communication, Languages, Humanities and
Culture. She has also taught in other
educational institutions specifically Aklan
Catholic College, De La Salle University, St.
Scholastica’s College, and Assumption
College. As a professor, she teaches The
Contemporary World, Readings in Philippine
History and other General Education subjects.
Dr. Jaymalin finished her Bachelor of Arts
major in Humanities and minor in French
Language studies at the De La Salle
University, Manila main campus. She obtained
her Master of Arts in Philosophy and complete
academic requirements (CAR) in Doctor of
Philosophy in the same institution. She is also
a LLB degree holder or Bachelor of Laws at
Aklan Catholic College. She finished her
Doctor of Philosophy in Social Science at West
Visayas State University, Iloilo City.

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