Chapter 1
CHAPTER 1 – INTRODUCTION TO THE STUDY OF GLOBALIZATION
Introduction to the Study of Globalization
Introduction
When the world was surprised by the birth of information technology, societies
became more eager to adopt the trends of the market. People across the globe
showed interest to be part of a community where connections and linkages are
available. When the World Trade Organizations (WTO) was formed, economies
responded quickly showing interest in this global network of countries. The same
thing Nokia when it successfully penetrated the worldwide market through offering
the most innovative cellular phones, millions of people were caught by this
technological breakthrough. When the Asian financial crisis hit some countries in
the region, economists, and governments became warier and keen in managing the
domestic and international flows of money. The series of attacks in the United
States on September 11, 2001 was seen as a result of western imperialism and a
response of violent groups in the Middle East. What do these events and situations
have in common? Are these signs of a borderless world where anything and
everything could be global? Is local becoming global?
The world is in a state of complexities and uncertainties. Small and big institutions
and communities are affected at a higher scale by these complex phenomena. No
one can accurately predict what the world would be like in the next 10 or 20 years.
What happened in the late 90s and early 2000s are remarkable events have defined
the future of man and its environment. Migration, economic organizations, political
alliances, and the digital world are common landmarks of the global society.
Networks and the formation of strong linkages will prevail over the conservative and
isolationist behavior.
The interconnected world economy is the forefront market of globalization. The
meeting point of developed and developing economies as well as the emergence of
economic institutions and organizations make everything easier and faster to hold
transactions globally. Global productions are scattered everywhere, operating in
countries where labor cost is cheap, and materials are available. For example,
Toyota manufactures its auto parts in countries like the Philippines and Indonesia
where there is high availability of cheap manpower. It offers finished and assembled
products in countries like Singapore and Malaysia where there is a higher demand of
cars. This kind of economic behaviors of countries shows how the cycle of economic
operation for a global commodity works. This is also evident in countries in the
western region where there are problems and challenges on the availability of
needs and demands. The strengths of materials of a country could be experienced
as weakness on the unavailability of the other economy or nation.
This topic discusses the relevance of economic system in globalization. It deals on
issues concerning the function of international trade, its benefits and damages. This
also explains the importance of domestic and foreign policies in international trade
and promotion of global economy. The topic will conclude by explaining the roles of
international economic organizations in globalization.
Dimensions of Globalization
Reasons for Globalization
Pros and Cons of Globalization
Lesson Proper
1.1 COMPETING CONCEPTIONS OF GLOBALIZATION
Globalization, as a theory lies in in the works of many 19th and 20th century
scholars and intelllectuals 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).
In the area of academe, no single currency or definition has acquired acceptance.
On the contrary, various competing interpretations emerged vying for dominance
and universal recognition. To define globalization is to simply put it as a social
process of reshaping and remaking the world order. Operations of social institutions
transcend across territories and boundaries with the goal of expanding its reach-
economic, political, and technological fibers. From the lens of Ritzer (2008), he
described this phenomenon as the spread of worldwide practices, relations,
consciousness, and organization of social life. The interconnectedness and social
segments from macro-institutions to the smallest sectors of the world have
coincided the fabrics of globalization.
In defining globalization, Justine Rosenberg argues that “globalization as a
phenomenon gave rise to the interconnectedness of human society that replaced
the sovereign state system with a multilateral system of global governance”. His
definition centers on the process, condition, time, and age of this condition.
On the other hand, Held and McGrew (2003) offer the following definition of
globalization: “Globalization refers to a multidimensional set of social processes that
create, multiply, stretch, and intensify worldwide social interdependencies and
exchange while at the same fostering in people a growing awareness of deepening
connections between the local and the distant”.
The best scholarly description of globalization is provided by Manfred Steger who
described the process as “the expansion and intensification of social relations and
consciousness across world-time and across world-space.” Expansion refers to “both
the creation of new social networks and the multiplication of existing connections
that cut across traditional political, economic, cultural, and geographic boundaries.”
Intensification refers to the expansion, stretching, and acceleration these networks.
Not only are global connections multiplying, but they are also becoming more
closely-knit and expanding their reach.
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.
This force comes from different angles, depending, on the power availability of a
nation. However, realists warn that countries may suffer and struggle to maintain its
power if it will be overarched and used wrongly. In globalization, countries that have
the power to dominate and control the world are those whose economies have the
“powers” to affect and influence the operation worldwide.
Realists argue that the reason why countries open their economies to the world is
because of two contending reasons. First, financial returns of expanding markets
offer new economic opportunities to the capitalist. Second, the political explanation
behind globalization is best described with the application of its founders like Hans
Morgenthau and Kenneth Waltz, realist-thinker John Mearsheimer and realist-doer
Henry Kissinger. The continued centrality of political power and military strength are
obvious forces of interdependence and realistic behavior of the more and most
powerful countries.
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. This idea is very evident in countries where democratic governance
and institutions play major roles in maintaining national cohesiveness in managing
domestic and international affairs.
Liberal accounts describe the transformation of political-economic structures and
the development of global interconnectedness in terms of the following factors:
Spread of democracy and institutions
Global economic ties
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.
REASONS FOR GLOBALIZATION
Why do we have to globalize especially at this contemporary world? Here are the
reasons:
Rapid shrinking of time and distance across the globe. One can easily cross the
bridge going to the other side of the marketplace due to advance tools of
technology than before.
Domestic markets are no longer rich because of many interlocking factors.
Companies and institutions go global to find political and economic stability which is
relatively good in other countries than the country of origin.
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.
To reduce high transportation costs if one goes globally using the advance tools of
communication and information.
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
It encourages free trade. Without borders in place, consumers can purchase items
from anywhere in the world at a reduced cost.
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.
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.
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
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.
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.
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.
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.
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.
Chapter 2
The Global Economy
Introduction
The interconnectedness of world economy is the forefront marker of globalization.
The meeting point of developed and developing economies as well as the
emergence of economic institutions and organizations make everything easier and
faster to hold transactions globally. It is undeniably true, global productions are
scattered everywhere, operating in countries where labor cost is cheap, and
materials are available.
The global economy is highly interdependent. Being such, global exchanges of
commodities create an opportunity to more sustainable and equipped economy
while pose a risk to the emerging and less performing country. Top gainers and
developed economies in the world are those that have the sufficiency of resources
to compete with other most powerful economies. They somehow control and
dictate the movement of global demand, investment and flow of technologies
worldwide. If such trend and condition continue to happen and exist, who shall be
blamed by this threatening effect of globalization? Will less developed and emerging
economies be under the stewardship of the biggest economies of the world?
This chapter discusses the relevance of economic system in globalization. It deals on
issues concerning the function of international trade, its benefits, and damages. This
also explains the importance of domestic and foreign policies in international trade
and the promotion of global economy. The chapter will conclude by explaining the
roles of international economic organizations in globalization.
Lesson Proper
CHAPTER 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.
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.
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 middle-class, they exist to divide the
economic power between periphery and core areas.
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. This policy aims to promote free flow of
goods and services as well as increase the volume of trade within the region.
However, there are criticisms on FTAs. One of which includes the unfair trade
practice. Countries that perform well in terms of trade dominance and its
contribution to the regions are considered winners. On the other side of the
structure, countries that do not have necessary materials, logistics, and systems to
compete with the more and most powerful countries end up depending on the
benefits of other countries and become free riders.
The world’s major free trade areas are North American Free Trade Agreement
(NAFTA), European Union (EU), Association of Southeast Asian Nations (ASEAN),
Common Market of Eastern and Southern Africa (COMESA), and Southern Common
Market/Mercado Comun del Sur (MERCOSUR).
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. In later
centuries, world economy began to emerge as single unit in which advanced regions
were linked to the colonies by certain division of economic activity. These
interactions may be described as a system of economic flows, trade, international
payments, migration, and capital transfer.
Industrial revolution strengthened capitalism and gave it a global character. Because
industrialization created a new kind of society and market relations, world capitalist
economy found a convenient circumstance to grow on a global scale. Capitalism
succeeded in establishing a world-wide market in which all parts of the world,
whether developed or underdeveloped, are getting integrated within the global
transactions.
From industrial revolution onwards, world economy got more integrated, and the
regions became more dependent to each other. The new information revolution is
truly transforming national markets into a single global market.
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 post-
production 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).
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.
The World Bank Group has set two goals for the world to achieve by 2030: (1) End
extreme poverty by decreasing the percentage of people living on less than $1.90 a
day to no more than 3% and (2) Promote shared prosperity by fostering the income
growth of the bottom 40% for every country.
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. They believed that one of the ways
to achieve this goal was to set up a network of global financial institutions that
would promote economic interdependence and prosperity. The Bretton-Woods
system was inaugurated in 1944 during the United Nations Monetary and Financial
Conference to prevent the catastrophes of the early decades of the century from
reoccurring and affecting international ties.
The Bretton Woods system was largely influenced by the ideas of British economist
John Maynard Keynes who believed that economic crisis occurs not when a country
does not have enough money, but when money is not being spent and thereby, not
moving. When economies slow down, according to Keynes, governments must
reinvigorate markets with infusions of capital.
Delegates at Bretton-Woods agreed to create two financial institutions. The first was
the International Bank for Reconstruction and Development (IBRD) to be
responsible for funding post war reconstruction projects. It was a critical institution
at a time when many of the world’s cities had been destroyed by the war. The
second institution was the International Monetary Fund (IMF), which was to be
global lender of last resort to prevent individual countries from spiraling into credit
crises. If economic growth in a country slowed down because there was not enough
money to stimulate the economy, the IMF would step in.
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. IFIs focus on long-term investment projects, institution-building, and
on social, environmental, and poverty issues, strengthen economic governance,
ensuring the stability of international financial system, and trade liberalization. IFIs
achieve these objectives through loans, credits, and grants to national governments.
Such funding is usually tied to specific projects that focus on economic and socially
sustainable development.
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.
CHAPTER 3 Lesson Proper
THE 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.
The Westphalian system provided stability for the nations of Europe, until it faced
its first major challenge by Napoleon Bonaparte. He believed in spreading the
principles of the French Revolution-liberty, equality and fraternity-to the rest of
Europe and thus challenge the power of kings, nobility, and religion in Europe.
3.1 Effects of globalization on government
Positive Effects:
Communications – Subscribers and users of the internet are remarkably increasing.
Education- Easy access of ideas and information from best libraries around the
globe.
Media Coverage- Awareness of issues on health, gender, environment, and
inequality.
Culture- Clear and deeper understanding of the different communities that leads to
sympathy and demonstrations with one another.
Resources- Growing interdependence among countries as countries need natural
and human resources and capital.
Investment- core countries flow investment to semi-peripheral countries which
pushes up the reserve of foreign exchange.
Competition- Global and local cooperation improved their products and services to
compete globally.
Negative Effects:
Culture- challenge to culture and language. Language wipes out and reshapes sense
of identity of many individuals, especially the migrants.
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.
Religion- Religious values lose their influence on people’s due to the promotion of
pure secular values.
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.
International Politics- countries are individualistic and tries to defend their own Internationalism
national interests globally.
Nations decide to cooperate with one another in political, economic and cultural
Economy- countries economics collapsed due to emergence of global corporations aspects for promotion of common good.
that offer cheaper products and services. The emergence of electronic trade and
online businesses.
Science- The new scientific revolutions in many fields. The genetically modified
organisms (GMO) and cloning emerged.
Types of Internationalism
Hegemonic Internationalism- The dominance of country over a nation or nation-
3.2 Institutions that govern international relations: state.
United Nations Liberal Internationalism- Nation states should give up their freedoms and establish a
continuously growing global system working together to prevent lawlessness in the
The United Nations (UN) was designed to be an organization where countries could world.
come to discuss their issues without resorting to war and violence which had
plagued our planet for several years in the past. Revolutionary Internationalism- conflict in the society are due to international
factors and alliances.
Non- Governmental Organizations
Socialist Internationalism- working class nation unite to protect themselves against
Non-governmental organizations (NGO’s) and global economic associations also exploits, abuses, and oppressions done by the capitalist class.
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. Globalism

Examples of International NGO’s The belief that people, 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
Red Cross or Red Crescent interest of individual nations.

The Red Cross is an international organization that helps people who suffering, for
example because of war, floods, or disease.
Types of Globalism:
Doctors without Borders
Economic Globalism- The long-distance flows of good, services, capital and
A group which sends physicians and other health workers to some of the most information that accompany market exchange.
destitute and dangerous parts of the world and encourages them not only to care
for people, but also to condemn the injustices they encounter. Environmental Globalism- The distant transportation of materials in the aerial,
fluvial or terrestrial aspects.
Amnesty International
Military Globalism- the long-distance networks in which force, and the threat or
It is a global movement of more than 10 million people in over 150 countries and promise of force are deployed.
territories who campaign to end abuses of human rights.
Social and Cultural Globalism- Movement of information, ideas, images, and of
Global Economic Associations people who carry those people themselves.
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.
CHAPTER 4 – CONTEMPORARY GLOBAL GOVERNANCE

3.3 Internationalism vs Globalism:

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.
4.5 Relevance of the state amid globalization.
Globalization is penetration into different aspects like business, politics, economics,
cultural identity, law, the environment and music. They argue that the state is
irrelevant because it cannot keep pace with economic forces. Globalization has also
a big part in the improvement of local and social culture in the Philippines.
Globalization is the process of increased interconnectedness among countries most
notably in the areas of economics, politics, and culture. An essential link between
globalization and the nation state is the concept of sovereignty, a term dating back
several centuries, well before the nation-state system was established in 1648.
In addition to, maintaining peace, the UN aims to protect human rights and provide
humanitarian assistance when, The UN Security Council has the primary
responsibility for international peace and security. While it was defined in several
ways, globalization is defined as the fading of economic. It is not the intention of this
study to give a complete account of globalization, but rather to highlight the most
important issues for public administration, government and development. Changes
in Politics, Economic and Sociocultural. The Philippines are also been friendly to the
foreign country and they now stay connected in terms of exchange of product and
some investment. First and foremost, globalization has spread American influence
throughout the world.
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 non-government, national and international.
CHAPTER 5 – GLOBAL DIVIDES
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.
Chapter 6 -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.
Trade- The world economy is intertwined with each other whether we like it or not.
We all want or need something from another part of the world, and global facilitate
that.
Similar Culture- The cultures of Asia is diverse but they do share many things. This
makes it an easier fir during times of negotiations.
Common Goals- The Asian region recognizes the mutual benefit a slow integration.
The territories involved are not from each other and the industriousness of its
population ca work as a powerful negotiating block against those from other part of
the world.

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, innovative, and secure growth and by accelerating regional
economic integration. The 21 APEC member economies work towards the
realization of free and open trade and investment in the Asia-Pacific.

c. East Asian Summit (EAS)

The East Asian Summit is a unique Leaders-lead forum of 18 countries of the Asia-
Pacific region. It is formed to further the objectives of regional peace, security, and
prosperity. Established in 2005, EAS allows the principal players in the Asia-Pacific
region to discuss the issues of common interest and concern, in an open and
transparent manner, at highest level.

6.4 The Difference of regionalization and Globalization

6.5 Factors that leads the Asian Region into greater integration
 Globalization Regionalization

Culture Promotes integration of Divides an area into

economies across state smaller segments
borders all around the
world

Market Allows many corporations Monopolies are more

to trade on international likely to develop.
level; it allows free Monopoly means one
market. producer controls supply
of a good or service, and
where the entry of new
producers is prevented or
highly restricted.

Cultural and Societal Acceleration to Does not support

Relations multiculturalism through multiculturalism.
free and inexpensive
movement of people

Aid Globalized international A regionalized area does

communities are more not get involved in the
willing to aid countries affairs of other areas.
stricken by disasters.

Technological Advances Globalization has driven Advanced technology is

great advances in rarely available in one
technology. country or region.