Module 1- Discussion 3- Structure of Different points of view are believed by academics, In 2012, Monsoon rains flooded much of Bangkok
Monsoon rains flooded much of Bangkok that
Globalization
What is Globalization?
The Gio and Latif Story, their global experience, has an
impact on Globalization.
Other Examples: * Before there is Mail-order Bride in the
Phil. for men living in foreign countries. That through writing,
Filipina women married foreigners. but it takes a long
period, with complication.
Now, through internet, the same format as well but shorter
to process.
*Foreign Investments in the country provide jobs and
capitals. The question: Is globalization good or bad? Is it
beneficial or detrimental?
We will begin with two premises:
1. Globalization is a complex phenomenon that
occurs at multiple levels.
2.It is an uneven process that affects people
differently.
Globalization is primarily an economic process.
When a newspaper reports that nationalists are
resisting "Globalization". It usually refers to the
integration of the national markets to wider global
market signified by the increased free trade.
When activists refer to the “anti-globalization"
movement in 1990, the main resisting force to deal
among countries facilitated and provided a global
organization, like the WHO.
Globalization scholars do not necessarily disagree with
people who criticize unfair international trade, or global
economic organizations.
journalists, or political activists. They see it in
globalization in broader sense.
The best scholarly description of globalization is
provided by Manfred Steger. He described
the process in three ways:
1. Expansion
2. Intensification of social relations
3. Consciousness across world-time and across world
space.
1. Expansion- refers to both the creation of new social
networks and existing connections that cut across
traditional political, economic, cultural, and geographic
boundaries. These various connections appear in
different levels. social media for example, establishes
new global connections between people, while
international groups of non-governmental organizations
(NGO), connects more on more specific groups.
2. Intensification- refers to the expansion, stretching
and acceleration of these networks. Not only on global
connections multiplying but are also becoming more
closely-knit and expanding in reach.
Ex.
1) The strong financial market connecting London and
New York. With the advent of electronic trading, the
volume of the trade increases exponently since traders
can trade more at higher speeds.
The connection is accelerating, the world becomes more Although they intersect, they have different reasons.
integrated, and the intensified trading network between
them may expand and stretch. to cover more and more Appadurai's argument is simple: There are many
cities.
2)It is not only on financial Markets but, another
example:
the Hondo critical car parts temporarily stopped
production. This created a negative effect of Honda USA
because they relied on the parts imported from Thailand.
Honda owners suffered, and the Japanese global profit
also suffered.
3). The way people perceive time and place- that
globalization processes don’t occur merely at an
objective material level but also involve the subjective
name of human consciousness.
This means people begin to feel that the world has
become a smaller place and distance has cut short
thousands of miles to just a mouse-click
away. Ex. when you email a friend, you got the reply
in an instant. Thus, one begins to perceive their
distance as less consequential.
For Arjun Appadurai, an Anthropologist, the different
kinds of globalizations occur on multiple and
interacting dimensions of integration
called “scapes”. They are:
1. Ethnoscape - the global movement of people
2. Mediascape - the flow of culture
3. Technoscape - circulation of mechanical goods and
software
4. Financescape - global circulation of money
5. Ideoscape - the place where political ideas are
circulated.
globalizations.
Even if one does not agree on the five divisions, it is
hard to deny his central thrust of viewing
generalization through various lenses.
Module 1- Discussion 4--The Bretton Woods System: in the process, increase demand for the products. As demand From 1980 onwards - Neoliberalism became the codified
Neoliberalism and Challenges increased, so did the prices. strategy of US Treasury Department, World Bank and IMF
and eventually, the WTO (World Trade Organization) in
Western and Some Asian economies like Japan-accepted the 1995- a new organization to continue the tariff reduction
The Bretton Woods System rise in prices because it means general economic growth and
under GATT. Their policies were called Washington
reduced unemployment. The theory was as prices
After two world wars, leaders decided to create a global Consensus-
increased, companies would earn more and would have more
economic system to insure a longer-lasting global peace. They
money to hire workers. The Washington Consensus - dominated global economic
believed that one of the ways to achieve this to set up a
network of global financial institutions that would promote Keynesian economists believed that all this was a policies to year 2000's. Its advocates reduced
economic interdependence and prosperity thus. necessary trade-off for economic development. government spending, reduced government debts.

Bretton Woods was inaugurated in 1944 during UN Monetary In early 1970's--prices of oil rose very high as result Privatization of government-controlled services like water,
and Financial Conference- to prevent problems of the century of Organization of Arab Petroleum exporting power, communications, and transportation is necessary--in
that is affecting international ties. Countries (OAPEC) - Arab member countries of order to produce the best results. Also, they pressured
the Organization of Petroleum Exporting Countries or government, particularly in the developing world to reduce
John Meynard Keynes - British economist who influenced tariffs and open their economies, as the quickest way to
Bretton Woods System. He believed that economic crises occur OPEC). Imposition of an embargo in response to the decision progress.
not because a country does not have enough money, but of US and other countries resupply of the Israeli military with
when money is not being spent, then it is not moving. So, when arms needed during the Yom Kippur War. Advocates of Washington Consensus -conceded that along
economies slow down, governments have to invigorate markets the way, certain industries would be affected and die, but
with infusion of capital. The active role of the government in
Arab countries used the embargo to stabilize their economy
and growth. The "oil embargo" affected the they considered this "shock therapy" necessary for long
managing, spending gives way to the system called-global term economic growth.
Keynesianism. Western economies that were reliant on oil. To make matters
worse, in 1973-74, US stopped linking dollar to gold- The appeal of Neoliberalism--simply it advocates
Delegates of Bretton Woods create two financial institutions: effectively ending the Bretton Woods System. (during the time of Pres. Reagan/Thatcher)
1). International Bank for Reconstruction and The result was a phenomenon that Keynesian economics had Thatcher talk of household analogy, that she promoted the
Development (IBRD, or World Bank) - for funding postwar not predicted. The term is called "stagflation"- image of herself as a mother who reined in overspending to
reconstruction projects- when many world cities were reduce the national debt”, but government is not
destroyed by war. in which decline in economic growth and employment
a household for: governments can print money, while
(stagnation)
households cannot. Also, the constant taxation systems of
2). International Monetary Fund (IMF)- the global lender of governments provide them a steady flow of income that allows
last resort to prevent individual countries spiraling into credit takes place alongside a sharp increase in prices (inflation). them to pay debts readily.
crises. Friedrich Hayek and Milton Friedman - the new economic
thinkers, used the economic turmoil to challenge the Despite the initial success of neoliberal politicians, the defects
Today, these two remain key players in economic
globalization. After Bretton Woods, many countries consensus around Keneys' ideas. What emerged was a new of Washington consensus were immediately felt. Privatization
of industries of Russia (after communism had collapsed in the
committed themselves to further economic form of economic thinking that created new form of economic
1990's, economic elites relied on easy access to government
integration through the General Agreement on thinking that challenged Keynesian orthodoxy.
funds to take over the industries.
Tariffs and Trade (GATT) in 1947 - the main purpose was They argued that the government's practice of pouring money This practice has the oligarchs dominate the Russian economy
to reduce tariffs and other obstacles to free trade. into their economies had caused inflation by increasing to this present time.
demands of goods without increasing supply.
Neoliberalism And Its Discontent Russia's case was one example oh how "shock
They said that government's intervention of economies distorts therapy" on Neoliberalism did not lead to ideal outcomes
The high point of Keynesianism- was in mid-1940's and early the proper functioning of the market. Friedman used economic predicted by economists who believed in perfectly free
1970's, when the government poured money into their turmoil to challenge consensus around Keynes' ideas. So, a markets.
economies, for more people to purchase more goods and new form of economic thinking is called Neoliberalism.
Module 1- Discussion 5---Global Financial
Crisis and the Challenge of Neoliberalism
The Global Financial Crisis and the Challenge
of Neoliberalism
Neoliberalism came under significant pain during
the global financial crisis in 2007-2008-when the
world experienced greatest economic downturn
since Great Depression Tracing back in 1980's--
when US systematically removed various banking
and investment restrictions.--until 2000's, paving
back to brewing crisis, in an attempt to
promote free market, where government agencies
failed to regulate bad investment in US housing
market, on "cheap housing loans". They build
houses beyond their capabilities.
To mitigate the risk of their loans, banks were
lending the house-owners money as mortgage
payments (called mortgage-backed securities-
MBSs). One mortgage is a combination of
multiple mortgages that they assumed to pay a
steady rate.
Many of this type were circulating, thus the
demand increase and the investors clamored for
more investment opportunities. In the haste to
issue the loans, banks became
less discriminating, even for dubious credit
records to people who cannot pay back. This
is called "sub-prime mortgages".
Wrong assumption of financial experts, we say.
that entirely ruined the whole investment. Banks
assumed that houses would continue to increase.
Banks to reacquire the homes and sell them at Exports - not just local selling of goods and
higher prices. services, it also helps national economies grow. In
the past, those that benefitted the most from free
This cycle reached a point in September 2008, trade were the advanced nations that
when major investment banks like Lehman were producing and selling industrial and
Brothers collapsed, depleting major investments. agricultural goods. US, Japan, and member
The crisis spread beyond US since some investors countries of the European Union were responsible
were foreign governments, corporation, and for 65 % of global exports, while developing
individuals. The loss of their money spreads like countries only accounted for 29%. When many
wildfire back to their countries. countries opened up their economies to take
advantage of free trade, the shares of percentage
Even until now, countries like Spain and Greece began to change. By 2011, developing countries.
are heavily indebted (almost like Third like Philippines, India, China, Argentina and Brazil,
World Counties). Greece has been forced by accounted 51 % of local exports, Us had gone
Germany and the IMF to cut back on its down to 45%. The WTO-led reduction of trade
government spending, affecting services like barriers is called trade liberalization. It was this
pensions, health care, and various forms of social growth that created the large Asian economies like
security. Japan, China, Korea, Hongkong and Singapore.
The very much affected were the very poor. Localizing The Material
Reduction of government spending also resulted
to level of unemployment. Global culture is facilitated by trade. Filipinos
would not be aware of foreign culture- the
The US have relatively recovered quickly to a American Japanese, or Korean if not for trade that
large Keynesian style stimulus package that Pres. allow us to be aware of them., American movies,
Obama pushed for on his first months of office. consume the Italian products, see Korean movies,
The same cannot be said of other countries. or dine Chinese foods. These days, events of
In Europe, the continuing economic crisis has foreign affairs are conducted to smoothen trading
sparked political upheaval. relations between and among countries.
Economic Globalization Today
Global financial crisis will take decades to end.
Whatever your opinion about
Washington Consensus is, some form of
international trade remains essential to develop in
the contemporary world.