Lesson 1: Introduction to the Study of Globalization
1.1 COMPETING CONCEPTIONS OF GLOBALIZATION
Globalization, as a theory lies in in the works of many
19th and 20th century scholars and intellectuals like Karl
Marx, MacKinder, and Robertson who then began to
introduce the term “globality”. However, it was in the 1960s
and 1970s when this term gained worldwide attention (Held
and McGrew,2002).
1.2 UNDERLYING PHILOSOPHIES OF THE VARYING
DEFINITIONS OF GLOBALIZATION
A. Realism
The realists’ perspective in explaining globalization focuses
on the shifting distribution of power among states (Walt,
1998 and Snyder, 2004). They explained that the core idea
of dominating the world is through the employment of
power.
B. Liberalism
Liberalism is a perspective in international relations where
actors and institutions emphasize relationship and
negotiations. Liberalists observe the importance of
interaction and communication and focus on solving
problems and conflicts affecting them.
Liberal accounts describe the transformation of political-
economic structures and the
development of global interconnectedness in terms of the
following factors:
a. Spread of democracy and institutions
b. Global economic ties
c. International organizations
C. Idealism
The advent of globalization, formation of institutions, and
the interplay of nations should be guided by ethical and
legal standards. Idealists and constructivists hold the notion
that values and norms play pivotal roles in sustaining and
reforming the process and works of individuals, groups, or
nations. This theory emphasizes on the functions of
ideologies, frameworks, systems, and identities in
understanding globalization and international order. Its core
beliefs centers on the centrality of ideas, beliefs, and
collective values that shape the political and economic
landscapes of the world.
1.3 DIMENSIONS OF GLOBALIZATION
a. Economic globalization
It refers to the mobility of people, capital, technology,
goods and services internationally. It is also about how
integrated countries are in the global economy. It refers to
how interdependent different countries and regions have
become across the world.
b. Cultural globalization
It refers to the transmission of ideas, meanings, and values
around the world in such a way as to extend and intensify
social relations. This process is marked by the common
consumption of cultures that have been diffused by the
internet, popular culture media, and international travel.
c. Political globalization
It refers to the growth of the worldwide political system,
both in size and complexity. The creation and existence of
the United Nations has been called one of the classic
examples of political globalization.
1.4 REASONS FOR GLOBALIZATION
Why do we have to globalize especially at this
contemporary world? Here are the reasons:
1. Rapid shrinking of time and distance across the globe.
One can easily cross the bridge going to the other side of
the market place due to advance tools of technology than
before.
2. Domestic markets are no longer rich as a consequence of
many interlocking factors.
3. Companies and institutions go global to find political and
economic stability which is relatively good in other
countries than the country of origin.
4. To get technological and managerial know-how of other
countries due to their advancement in science and
technology, education, health and other fields of discipline.
5. To reduce high transportation costs if one goes globally
using the advance tools of communication and information.
6. To be close to raw materials and to markets of their
finished products which are not available in the country of
origin.
1.5 PROS AND CONS OF GLOBALIZATION
Pros of Globalization
1. It encourages free trade. Without borders in place,
consumers can purchase items from anywhere in the world
at a reduced cost.
2. More trade means the potential for more jobs. When
there are fewer barriers in place to purchase items, then
consumers will generally purchase more things. This creates
the foundation that businesses need to create more jobs.
3. Open borders mean more opportunities to develop poor
areas of the world. There are many nations in the world
today that are in a state of entry-level industrialization.
Poverty is a feature in many of these developing countries.
Through the process of globalization, the removal of
borders allows the people in these areas to experience
greater prosperity because each area gains the ability to
access what they need.
4. It allows for open lines of communication. When borders
are removed, people have the ability to communicate with
one another more freely. There is a greater intermingling of
cultures, which allows people to have a greater perspective
about the world.
Cons of Globalization
1. It generally makes the rich become rich and the poor to
become mired in poverty. This means the rich can access
what they want or need to become richer, but the poor get
trapped in poverty because they don’t have the means to
access success.
2. Jobs get transferred to lower-cost areas. Jobs can be
created through globalism, but they tend to be created in
the areas where labor costs are the cheapest.
3. It creates a political system where the biggest and the
richest have influence. The biggest businesses and
wealthiest people could hoard global resources for
themselves through whatever government was put into
place, enhancing the social inequalities that are already
being seen on smaller scales.
4. Diseases travel faster in a world that is globalized. When
people stay within their own regions, there are fewer
problems with communicable diseases. If there were no
borders and people could travel freely to wherever they
wished to go, this issue would cause even the most remote
parts of the world to be exposed to potentially deadly
health concerns.
5. It could have a negative impact on the environment. Let’s
say that production levels increase because everyone sees a
boost in their economic circumstances. This would
potentially increase pollution levels that could acidify the
air, the ocean, and cause more issues with global warming.
Cons of Globalization
1. It generally makes the rich become rich and the poor to
become mired in poverty. This means the rich can access
what they want or need to become richer, but the poor get
trapped in poverty because they don’t have the means to
access success.
2. Jobs get transferred to lower-cost areas. Jobs can be
created through globalism, but they tend to be created in
the areas where labor costs are the cheapest.
3. It creates a political system where the biggest and the
richest have influence. The biggest businesses and
wealthiest people could hoard global resources for
themselves through whatever government was put into
place, enhancing the social inequalities that are already
being seen on smaller scales.
4. Diseases travel faster in a world that is globalized. When
people stay within their own regions, there are fewer
problems with communicable diseases. If there were no
borders and people could travel freely to wherever they
wished to go, this issue would cause even the most remote
parts of the world to be exposed to potentially deadly
health concerns.
5. It could have a negative impact on the environment. Let’s
say that production levels increase because everyone sees a
boost in their economic circumstances. This would
potentially increase pollution levels that could acidify the
air, the ocean, and cause more issues with global warming.
Lesson 2: The Global Economy
2.1 ECONOMIC GLOBALIZATION
According to the United Nations, economic globalization
refers to the increasing interdependence of world
economies as a result of growing scale of cross-border trade
of commodities and services, flow of international capital,
and wide and rapid spread of technologies. It reflects the
continuing expansion and mutual integration of market
frontiers, and as an irreversible trend for economic
development of the whole world. Economic globalization
primarily comprises the globalization of production,
finance, markets, technology, organizational regimes,
corporations, and people. Nation-states, international
governmental and non-governmental organizations, global
corporations, and international financial institutions are
global actors that facilitate the economic activities
of the world economy. There are two different types of
economic policies associated with economic globalization -
protectionism and trade liberalization. Protectionism means
“a policy of systematic government intervention in foreign
trade with the objective of encouraging domestic
production. This encouragement involves preferential
treatment to domestic producers and discriminating against
foreign competitors”. Trade protectionism usually comes in
the form of quotas and tariff. Tariffs are required fees on
imports or exports. World War II heavily influenced the
shifting of the dominant economic policy from
protectionism to trade liberalization or free trade. Free
Trade agreements and technological advances in
transportation and communication mean goods and
services move around the world more easily than ever.
2.2 INTERNATIONAL TRADE
International Trade is the process and system when goods,
commodities, services cross national economy and
boundaries in exchange for money or goods of another
country (Balaam and Veseth, 2008). Global trade has grown
dramatically since the post-cold war era as a result of
increasing demand of goods and services of countries. This
global norm is a reflection of growing practice of
internationalizing and globalizing local products and
services. Why countries engage in international trade?
1. Use of excess capacity in demand.
The inadequate domestic demand pushes business
organizations to expand their market base outside the
national territory. This is usually done by firms and
companies that have the sources and capital to operate in a
transnational market.
2. Cost reduction and increase of profit.
A market leader for a particular good or service may garner
a lower production cost by increasing its market in global
rather than domestic. This enables a firm to increase its
profit while reducing its operating costs.
3. Cheaper supplies.
A country imports goods from other countries because of
inexpensive raw materials and supplies used for production.
The availability of buying cheaper materials from other
materials from other countries lowers the costs in
production which might result to an increase in the profit of
businesses.
4. Addition to product line.
Economies usually aim for a variety of products and services
available in the market. It offers consumer to choose and
buy products that are of competitive prices, having a high
degree of importance and will offer higher satisfaction.
5. Reduction of risk.
Importing products is seen as an alternative to countries
that are vulnerable to supply shortage. These countries that
have high volume of imported goods are economies that
confront the demand and supply condition of the local
market.
6. Foreign policy tool.
The membership of a country to regional market integration
and economic relationships is part of its foreign policy.
Enhancing the economic and political affiliation of a country
is a very important move in sustaining its international
status in a global environment.
2.3 MODERN WORLD SYSTEM
The Modern World System (MWS) theory developed by
Immanuel Wallerstein, is an approach to world history and
social change that suggests there is a world economic
system in which some countries benefit while others are
exploited. The world systems theory is established on a
three-level hierarchy consisting of core, periphery, and semi
periphery areas. This theory emphasizes the social structure
of global inequality.
a. Core Countries - are dominant capitalist countries that
exploit peripheral countries for labor and raw materials.
They are strong in military power and not dependent on
any state or country. They are focused on higher skill and
capital-intensive production.
b. Semi-periphery - plays a significant role when it comes to
stabilizing world systems since it facilitates interactions and
connections between high-income states and low-income
states. Also referred to as the middleclass, they exist to
divide the economic power between periphery and core
areas.
c. Periphery Countries - lack a strong central government
and possesses a disproportionately small share of the
world’s wealth. These areas are less developed than the
core and semi-periphery. These countries export raw
materials to the core countries; are often dependent on
more developed nations for capital; and have
underdeveloped industry. These countries also have low-
skill, labor-intensive production, or in other words, cheap
labor.
2.4 MARKET INTEGRATION
Economic Integration
The formation of economic integration is designed to
address and enhance the level of competitiveness of
member economies in trade. Free trade is the primary
consideration of regional economic integrations. Free Trade
Area (FTA) is a trading bloc which involves the reduction of
internal tariffs to zero of member economies but retaining
its different external affairs.
Market Integration
Market Integration occurs when prices among different
locations or related goods follow similar patterns over a
long period of time. Groups of goods often move
proportionally to each other and when this relation is very
clear among different markets, it is said that the markets
are integrated. History of Global Market Integration in the
20th Century. The late 19th century and early 20th century
witnessed the advent of globalization approaching its
modern form. It is said that industrial revolution marks the
most fundamental transformation of human life in the
history of the world.
Types of Market Integration:
1. Horizontal Integration
- This occurs when firms or agency gains control of other
firms or agencies performing similar marketing functions at
the same level in the marketing sequence. In this type of
integration, some marketing agencies combine to form a
union with a view to reducing their effective number and
the extent of actual competition in the market. (Examples:
Walt Disney’s acquisition of 21st Century Fox and Pixar
Animation Studios, Facebook’s acquisition of Instagram)
2. Vertical Integration
- This occurs when firms perform more than one activity in
the sequence of the marketing process. It is a linking
together of two or more functions in the marketing process
within a single firm or under a single ownership. This type
of integration makes it possible to exercise control over
both quality and quantity of the product from the beginning
of the production process until the product is ready for the
consumer.
a. Forward Integration
- It occurs when a company decides to take control of the
postproduction process.
b. Backward Integration
- It occurs when a company decides to buy another
company that makes an input product for the acquiring
company’s product.
3. Conglomeration
- The process whereby a firm expands by supplying a range
of different products
and, as such, operates in several markets rather than a
single market. (Example: In addition to phones and other
electronics, Samsung builds ships, undertakes major
construction projects, and is involved in businesses that
include food processing, textile manufacturing, insurance,
financial products, and consumer retail).
2.5 INTERNATIONAL FINANCIAL INSTITUTIONS
The Bretton-Woods System
After the two world wars, world leaders sought to create a
global economic system that would ensure a longer-lasting
global peace.
International Financial Institutions
International Financial Institutions are international non-
profit agencies, one of the major sources of financing like
regional development banks or banks globally. Major role is
to finance productive development projects or to promote
economic development.
A. World Bank
The World Bank promotes long-term economic
development and poverty reduction by providing technical
and financial support to help countries reform certain
sectors or implement specific projects - such as building
schools and health centers, providing water and electricity,
fighting disease, and protecting the environment
B. International Monetary Fund (IMF)
International Monetary Fund (IMF) is responsible in
supervising exchange rate system, providing loan programs
to economies experiencing balance of payments
adjustments, and review domestic monetary policies. It is
mandated to ensure the stability of the international
monetary system including exchange rates and international
payments. IMF is keen in monitoring foreign monetary
transactions as it has a direct effect on a country’s financial
climate.
C. Asian Development Bank (ADB)
The Asian Development Bank is a multilateral development
bank dedicated to reducing poverty in the Asia-Pacific
region by means of sustainable economic growth, social
development, and good governance. The ADB’s main
financial instruments are loans, technical assistance, and
grants. Most lending is in the public sector, primarily for
large infrastructure projects.
2.6 GLOBAL/TRANSNATIONAL CORPORATIONS
As the global economy is becoming complex and
competitive, Multinational Corporations continue to offer
innovations, new products, and services. For several years,
the term Multinational Corporations was used to describe a
firm operating in different countries around the world.
Because of the magnitude of global production and
networks, the term Transnational Corporations became the
more acceptable name. This refers to business organizations
and firms that compete in regional or global markets. It
operates in countries and makes investments in research,
technology, facilities, distribution, and production. TNC can
control and monopolize the global market especially if it has
a huge pool of resources.
Attributes of Global Corporations
1. Very high assets and turnover – the business must be
large and must own a huge amount of assets, both physical
and financial and they are able to generate substantial
profits.
2. Network of branches – global corporations maintain
production and marketing operations in different countries.
3. Control – the management of offices in other countries is
controlled by one head office located in the home country.
Therefore, the source of command is found in the home
country.
4. Continued growth – even as they operate in other
countries, they strive to grow their economic size by
constantly upgrading and by conducting mergers and
acquisitions.
5. Sophisticated technology – to achieve substantial growth,
they need to make use of capital-intensive technology,
especially in their production and marketing activities.
6. Right skills – global corporations aim to employ only the
best managers, those who are capable of handling large
amounts of funds, using advanced technology, managing
workers, and running a huge business entity.
7. Good quality products – because they use capital-
intensive technology, they can produce top-of-the-line
products.
Lesson 3: The Global Interstate System
The origins of the present-day concept of sovereignty can
be traced back to the Treaty of Westphalia, which was a set
of agreements signed in1648 to end the Thirty Year’s War
between the major continental powers of Europe. After a
brutal religious war between Catholics and Protestants, The
Holy Roman Empire, Spain, France, Sweden, and the Dutch
Republic designed a system that would avert wars in the
future by recognizing that the treaty signers exercise
complete control over their domestic affairs and swear not
to meddle in each other affairs.
3.1 Effects of globalization on government
Positive Effects:
1. Communications – Subscribers and users of the internet
are remarkably increasing.
2. Education- Easy access of ideas and information from
best libraries around the globe.
3. Media Coverage- Awareness of issues on health, gender,
environment, and inequality.
4. Culture- Clear and deeper understanding of the different
communities that leads to sympathy and demonstrations
with one another.
5. Resources- Growing interdependence among countries as
countries need natural and human resources and capital.
6. Investment- core countries flow investment to semi-
peripheral countries which pushes up the reserve of foreign
exchange.
7. Competition- Global and local cooperation improved
their products and services to compete globally.
Negative Effects:
1. Culture- challenge to culture and language. Language
wipes out and reshapes sense of identity of many
individuals, especially the migrants.
2. Developing Countries- cooperation have tendency to
cause damage to the environment. The global pillage
instead of global village. Widens the gap between rich and
poor.
3. Religion- Religious values lose their influence on people’s
due to the promotion of pure secular values.
4. Morals- people wasting a lot of time on the internet for
unnecessary purposes. Due to lack to parental guidance, a
lot of criminalities have emerged in the
present times.
5. International Politics- countries are individualistic and
tries to defend their own national interests globally.
6. Economy- countries economics collapsed due to
emergence of global corporations that offer cheaper
products and services. The emergence of electronic trade
and online businesses.
7. Science- The new scientific revolutions in many fields.
The genetically modified organisms (GMO) and cloning
emerged.
3.2 Institutions that govern international relations:
A. United Nations
The United Nations (UN) was designed to be an
organization where countries could come to discuss their
issues without resorting to war and violence which had
plagued our planet for several years in the past.
B. Non- Governmental Organizations
Non-governmental organizations (NGO’s) and global
economic associations also govern international relations.
NGO’s are not tied to any country or nation-state. A non –
profit group that functions independently of any
government. Sometimes called civil societies-organized on
community, national and international levels to serve a
social or political goal such as humanitarian causes or the
environment.
Examples of International NGO’s
1. Red Cross or Red Crescent
The Red Cross is an international organization that helps
people who suffering, for example because of war, floods,
or disease.
2. Doctors without Borders
A group which sends physicians and other health workers to
some of the most destitute and dangerous parts of the
world and encourages them not only to care for people, but
also to condemn the injustices they encounter.
3. Amnesty International
It is a global movement of more than 10 million people in
over 150 countries and territories who campaign to end
abuses of human rights.
C. Global Economic Associations
It is a professional association, which promotes a pluralistic
approach to economics. Its key principles include worldwide
membership and governance, and inclusiveness towards
the variety of theoretical perspective and applications of
economics.
3.3 Internationalism vs Globalism:
Internationalism
Nations decide to cooperate with one another in political,
economic and cultural aspects for promotion of common
good.
Types of Internationalism
1. Hegemonic Internationalism- The dominance of country
over a nation or nation state.
2. Liberal Internationalism- Nation states should give up
their freedoms and establish a continuously growing global
system working together to prevent lawlessness in the
world.
3. Revolutionary Internationalism- conflict in the society are
due to international factors and alliances.
4. Socialist Internationalism- working class nation unite to
protect themselves against exploits, abuses, and
oppressions done by the capitalist class.
 Globalism
The belief that peoples, goods and information ought to be
able to cross national borders freely. It is the attitude of
putting the interest of the entire world above the
interest of individual nations.
Types of Globalism:
1. Economic Globalism- The long-distance flows of good,
services, capital and information that accompanies market
exchange.
2. Environmental Globalism- The distant transportation of
materials in the aerial, fluvial or terrestrial aspects.
3. Military Globalism- the long-distance networks in which
force, and the threat or promise of force are deployed.
4. Social and Cultural Globalism- Movement of information,
ideas, images, and of people who carry those people
themselves.
Lesson 4: Contemporary Global Governance: The United
Nations
4.1 Global Governments and Governance
Ann Florini of Brookings Institution described the global
order that is not under the control and umbrella of a
particular political body. The term global government is a
response on the actions of various stakeholders on finding
out pressing global problems like climate change and issues
on peace and security. The world has no global government
and global authority. There are political and economic
bodies operating worldwide but no single organization
possesses a global authority in enforcing and compelling
others to follow. What the world has is the idea of global
governance. This term refers to domestic institutions
and governments on how large-scale problems and public-
policy issues are being solved at a global level. It involves a
range of actors including states, national and regional
bodies that have the willingness and commitment to
confront a particular problem (WHO, 2015). Global
Governance involves management, authority, cooperation,
and mechanisms that are aimed to attain certain goals. This
international process is bounded by consensus and
agreements where members are expected to perform
based on the guidelines and policies. United Nations, World
Trade Organization, and World Health Organization are
examples of governments that operate globally.
The downside of global governance is establishing its
sovereignty and accountability to all decisions framed and
actions implemented. States may not conform and deviate
from the norms set by international institutions like UN and
WTO especially if it will compromise their economic and
political interests.
4.2 Role and Functions of the United Nations
The primary role of the United Nations in global economic
governance is as a political forum for dialogue concerning
the major issues on the global economic agenda and as an
integrator of the different perspectives on the economic,
social, and environmental pillars of sustainable
development. The United Nations has made numerous
positive contributions in maintaining international peace
and security, promoting cooperation among states and
international development. According to Delbriuck, the UN,
has become a global actor with a meaningful role to play in
the process of globalization. It should serve as forum for the
determination of international public interest, promote the
participation of non-state actors, and works to expand and
reshape the international legal framework.
4.3 Challenges in Global Governance
1. Jurisdiction Gap. The lack of global governance in taking
actions to problems affecting key sectors arises from the
absence of authority. This involves the need to create
power and jurisdiction to governments and international
organizations that have the commitment in confronting
issues like unemployment, human rights, peace and crimes.
2. Incentive Gap. Global governance is formed with the
participation of countries that have the interests to deal
problem affecting their sovereignty. Incentive gap is an issue
between the rich and the poor countries of the world
because of uneven distribution of authority and control
over decisions and policies. Poor countries usually do not
receive much attention and support from the coalition of
body due to its contributory constraints. Countries that do
not provide higher material contribution usually receive
lesser amount of incentives.
3. Participation Gap. Almost all international organizations
are facing the problem of consensus in decision-making.
Member -states sometimes disagree on issues that harmful
to their interest. They do not involve in decisions that are
critical to the economic and political welfare of their
sovereignty.
4.4 Organs of United Nations
a. General Assembly
This is UN’s main deliberative and decision-making body
represented by all its 193 members. The assembly holds
general debate from September-December in its
headquarters in New York City. Two thirds of votes are
required to decide range of issues like peace and security,
budget, and admission of new members to the
organization.
b. Security Council
The Security Council is responsible in the maintenance of
peace and security. All member-states of UN are obligated
to follow decisions made by the council. In some cases, the
council has the power to impose sanctions or punish
members or other bodies for destabilizing international
peace and security. Security Council is composed of 15
members, five are permanent members and ten are non-
permanent members elected for two-year term. China,
France, Russia, United Kingdom, and the United States are
the council’s permanent members.
c. Economic and Social Council
This body is commonly called as ECOSOC. Its main function
is to coordinate, review, and recommend policies relating to
economic, social, and environmental issues. It serves as the
main agency of UN in monitoring and evaluating key results
on sustainable development. The 54 members of ECOSOC,
composed of experts from various fields and disciplines, is
elected by the General Assembly.
d. International Court of Justice
The ICJ is the principal judicial body of UN. Its role includes
settling legal disputes among concerned states and provides
opinions on legal matters. This is the only UN organ that
operates outside United States with headquarters in the
Peace Palace, Netherlands.
e. The Secretariat
The Secretariat is headed by the UN Secretary-General who
sits as its Chief Administrative Officer. The appointment of
the Secretary-General is done through the recommendation
of the Security Council for a five-year term. This organ is
responsible for the UN’s peacekeeping mission and its day-
to-day work and operation having thousands of
international staff stationed in different countries.
4.6 Development of UN and its Challenges and
relationship in the Philippines
The Philippines is one of the original 51 charter members
that created the United Nations in 1945. The UN Country
Team (UNCT) in the Philippines consists of eleven resident
funds, programs, and specialized agencies (FAO, IFAD, ILO,
IOM, UNDP, UNFPA, UNHCR, UNICEF, UNIDO, WFP, and
WHO), six project offices (UNAIDS, UNESCO, UN Habitat,
UNODC, UNOPS, UN Women), five non-resident agencies
(UNEP, OHCHR, UNOCT, DCO and ITC), and three secretariat
offices (OCHA, UNIC and UNDSS). Standing invitees are ADB,
IMF, and the World Bank. The UN assists and supports the
Government of the Philippines in its important
development, peacebuilding and humanitarian priorities.
The UN has been a partner of the Philippine government for
over seven decades, supporting state institutions to respect,
uphold and implement the international treaty obligations
and agreed development goals that the Philippines has
voluntarily adhered to over the years. To this partnership,
the UN has brought normative policy support, technical
assistance and advocacy, but most importantly, its ability to
convene, coordinate and mobilize stakeholders from across
the political spectrum in support of the country’s
development agenda. In the Philippines, the quality of its
technical assistance and its effectivity and neutrality as
convener and coordinator has earned the UN the trust of
claim holders and duty-bearers, both government and
nongovernment, national and international.
Lesson 5: Global Divides: The North and the South (focus
on Latin America)
5.1 THE GLOBAL SOUTH
South has a geographical connotation described as largely
equivalent, but not identical with Third World (Pagel, Ranke,
et. al. 2014). However, the term south does not refer to
countries outside USA and Europe, Australia and New
Zealand no doubt, do not belong the “South”. There is also
an explanation of the term that it refers to countries that
are excluded if not deprived from socioeconomic
prominence and reputation like Africa, Middle East, South
America, South Asia and countries within Pacific. The
inequalities and global divide between the rich and the
poor countries part of globalization and territorializing is
also part on the reality of global south
(Lopez, 2007). The idea of global south is a contemporary
issue in socioeconomic and political divide. Countries like
the USA, Canada, outermost and western parts of Europe,
Japan, Australia and New Zealand are giant economies parts
of the global north. These countries are described as highly
industrialized, developed and most advanced economies in
the world. It rests on the fact that the entire world’s
industrially developed countries (with the exception of
Australia and New Zealand) lie to the north of its developing
countries. According to Kegley (2009), differences in
technological aspects has separated significantly the
global north countries from the south. South countries have
not advanced or progressed from their indigenous culture.
This means south countries have not advanced and/or
progressed technologically speaking and global north
countries have advanced rapidly in this aspect. Because
south countries have not advanced technologically, they
have to depend in corporations from the north. According
to Marie (2014), the dependency south countries have with
north countries is bad because south counties are
vulnerable to cultural penetration. Cultural penetration is
when the foreigners (corporations from the north)
introduce their culture and try to replace it instead of the
culture of the country. Countries belonging to the global
south possess various political and economic descriptions
and experiences. In Africa, debts, poor infrastructure,
education, employment, healthcare, and peace and security
are the key impediments. The region’s problem on poverty
is the fundamental challenge of governments and
institutions providing key support to these countries.
Asian countries are found to be a combination of emerging
and developing economies. Central Asia consists of
countries that have experience transitioning governments.
These are former territories of the Soviet Union and
stabilizing the economy brought by the damage of the
former communist Soviet regime is still evident. Political
and economic reforms are insufficient to address the fabrics
of communism during the Cold War era. West Asian region
has its unique social struggle. The region is confined in a
costly conflict involving territorial insecurity, peace and
order, and competing extreme ideological clashes.
Though the region is an oil-rich hub, it is confronted with
regional issues that serve as impediments to the developing
process of West Asia. Natural disasters and the absence of
sufficient investment as major source of the economy make
countries in the Pacific Islands a victim of slow growth. Its
economies are dependent with the influx of businesses and
commercial activities of nearby countries in the Pacific as
well as countries in Oceania, Asia, and America. Countries
belonging to Latin America are trapped in a turbulent
economic environment. Regional matters like unstable
democratic governance and fiscal problems are known
challenges facing countries of the region.
THIRD WORLD
A Third World country is an outdated and offensive term for
a developing nation characterized by a population with low
and middle incomes, and other socio-economic indicators.
The neutral and non-aligned countries during the Cold War
formed part of the Third World. The use of this category of
world order is less appealing now because scholars prefer
to describe countries as less developed and developing
economy or global south as part of the political and
economic condition of the world. Countries that have
colonial history as seen as part of the Third World like
Africa, Asia, and Latin America. Having common historical
backgrounds, the Third World has challenges in the political
spectrum of institutional-building; these include human
rights, freedom and democracy, dictatorship and repressive
regimes.
5.2 CAUSES OF GLOBAL DIVIDE
a. Globalization in the 1990
The economic intensification observed in the 90’s fueled
countries to establish boundaries. Poor countries that
cannot cope with the demands of the rich and developed
countries suffer most on the potential damage of
globalization. Countries of the global south especially under
unstable governments and weak economies failed to
produce outputs as a response to the internalization system
of economy and government.
b. Uneven Immigration
The pattern of migration in the last three decades saw an
unprecedented rise of migrant workers and citizens seeking
greener opportunities in other countries. People from Asia
targeted Western Europe and America as ideal points of
employment. Developed countries that are on the height of
technological development, advancement, and high quality
of social services became the main venues accepting
migrants.
c. The hegemonic nature of international economic
relations Structural inequality in the international monetary
system and heavy indebtedness of undeveloped countries
are some of the chronic issues facing the international
system. Countries in the global south are trapped in the
hands of developed countries where rising financial
obligations like loan programs are continuously punishing
economies of the south.
5.3 CRISIS AND DEVELOPMENT OF LATIN AMERICA
After World War II, Latin American countries decided to end
its membership with General Agreement on Tariffs and
Trade system and based its economic strategies on imports.
Most businesses and firms were dependent with domestic
market because of the absence of competition with foreign
businesses. The movement of development was at a very
low pace due to poor export capacity. This economic
stagnation worsens when the 1970’s oil crisis hit the region.
Governments had to borrow money to finance higher
priced-oil imports. Most economies were heavily indebted
to western countries and financial institutions like IMF and
World Bank. Based on the 2013 World Bank Economic
Situation and Prospect Report, most Latin American
countries are classified as developing economies. This
includes economies of Argentina, Brazil, Chile, Colombia,
Costa Rica, Ecuador, El Salvador, Paraguay, Peru, Uruguay,
Venezuela, Guatemala, Mexico, and Panama. Bolivia,
Honduras, and Nicaragua fall under the Heavily Poor
Indebted Countries, as of 2013. The problem of economic
protectionism did not work well as formula in managing the
entire region during the 70s. In the case of Brazil and
Mexico, they were able to perform well using protectionist
policies as their saving grace, but these economies were
fortunate to found an option in its large population and
market. The 15-year period (1973-1987) of economic crisis
in Latin America was described as a lost decade. This is a
period of economic stagnation brought on by domestic
policies, high debt, and oil crisis. Argentina, Brazil, Chile,
Colombia, Mexico, and Peru incurred a drastic increase of
debt from $53 to $248 billion. These economies were hurt
also by rising unemployment rate, inflation, and
investments. To make the matter worst, inequality and
income gap widened resulting to the increase of poverty
incidence among Latin Americans. This decade of lost
development was a learning curve for all countries in the
region. In the late 80s, numerous reforms were initiated;
inflation was dealt with sound measurements, economic
liberalization was introduced, and foreign investment
started to operate.
Lesson 6: Asian Regionalism
ASIAN REGIONALISM
Regionalism is the manifestation or expression of a
common sense of cultural identity and purpose combined
with the creation and implementation of institutions that
express a particular identity and shape collective action
within a geographical region. It also refers to the
institutional arrangements designed to facilitate the free
flow of goods, services, and to coordinate foreign economic
policies in the geographic region. Why are nations
participating in Regionalism? Opportunities, threats, and
challenges prompt nation states to bond together and forge
ties and alliances built on solid, legal frameworks with other
nations. Nations believe that regionalism can boost and
support their national interest in economic, military,
political, and even cultural contexts.
6.1 Regionalism in Asia
Asia’s region is home to over half the world’s population,
produces three tenths of global outputs, and consistently
records the world’s highest economic growth rates. Asia’s
economies are increasingly connected through trade,
financial transactions, direct investment, technology, labor,
tourist flows, and other economic relationships. The
regional order that is present in the Asian region is spurred
by the fact that there exist patterns of similarities too great
to escape scrutiny. Asia’s strength derives from the
openness, diversity, and dynamism of its interconnected
economies. Asian regionalism could bring huge benefits to
Asia, and ultimately to the world. It could help sustain the
region’s growth, underpin its stability, reduce inequality,
and address perennial problem of poverty.
6.2 Advantages of Regionalism in Asia:
1. Generate productivity gains, new ideas, and competition.
2. Contribute to the efficiency and stability of global
financial markets.
3. Diversity sources of global demand, helping to stabilize
the world economy and diminish the risks posed.
4. Provide leadership.
5. Create regional mechanisms.
6.3 Organizations Emerged in the Asian Region:
a. Association of Southeast Asian Nation (ASEAN)
A regional intergovernmental organization comprising ten
Southeast Asian countries which seeks to promote
intergovernmental cooperation and facilitates economic,
political, security, military, educational and socio-cultural
integration amongst its members.
Aims and Purposes:
a. To accelerate economic growth, social progress, and
cultural development in the region.
b. To promote regional peace and stability.
c. To collaborate more effectively for the greater utilization
of their agricultural and industries, the expansion of their
trade, including the study of the problems of international
commodity trade.
d. To maintain close and beneficial cooperation with existing
international and regional organizations with similar aims
and purposes and explore all avenues for closer
cooperation.
b. Asia-Pacific Economic Cooperation (APEC) The APEC is a
regional economic forum established in the year 1989. It
aims to create greater prosperity for the people of the
region by promoting balanced, inclusive, sustainable.