MINDANAO STATE UNIVERSITY-Main Campus, Marawi City

COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY

Department of Marketing-Entrepreneurship
GEC103 | CONTEMPORARY WORLD

NOTES FOR THE FIRST DISCUSSION:  Governance - process - In order to scape from the state of nature,
- there is always a governance without people made compact to surrender and submit
What is Politics? government their will to the LEVIATHAN who will act as
the ruler.
According to: STATE - Proposed RULE OF ONE (monarchy or
Key Lawson - seeking and using power of the - State is a community of PERSONS tyranny).
state to make allocations of same resources more or less numerous, permanently
throughout a given policy. occupying a definite portion of JOHN LOCKE
Harold Laswell - involving as to who gets, TERRITORY, having a GOVERNMENT - People in the state is not necessarily bad,
what, when, and how? of their own to which the great body of some or few of them are rational and good.
Ricardo Lazo - a struggle to power, control inhabitants render obedience, and enjoying - Because of fear of war, people formed a
and influence FREEDOM from external control (Legal contract to entrust the peace and security to a
Definition taken from the book of Cruz). group of representatives who will compose the
KEY CONCEPTS: government.
 Power GOVERNANCE VS GOVERNMENT - Obligation: PROTECTION is the duty of the
 Influence government towards the people while
 Legitimacy - condition in correctly THEORIES ON THE ORIGIN OF SUPPORT is the obligation of the people
been particularly role STATE towards the government.
 Coercion  Divine night theory - Proposed RULE OF THE FEW (aristocracy
 Persuasion - using  Necessity or force theory and oligarchy).
words/communication  Paternalistic theory
 Physical force -  Social contact theory JEAN-JACQUES ROUSSEAU
 Authority - People in a state of nature are not necessarily
 Governance THREE VERSION OF SOCIAL bad, some of them are of them are rational and
 Inducent - giving something to CONTACT THEORY good.
someone with exchange - Because of fear of war, people formed a
 Example: Vote buying THOMAS HOBBES government, government by which the people
 Coercion - act of treating someone - Men by nature are evil. are the ones directly managing the day to day
 Physical force - applying the coercion affairs of the society.
 MINDANAO STATE UNIVERSITY-Main Campus, Marawi City
COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
Department of Marketing-Entrepreneurship
GEC103 | CONTEMPORARY WORLD

- Government shall promote general will. 2. Ministrant Function

- Propose RULE OF THE MANY (democracy Monarchy 2 CATEGORIES IN DEFINING
and mobocracy). 1. Absolute Monarchy - above law GLOBALIZATION:
2. Limited Monarchy - still following 1. Broad and Inclusive
Leviathan - sea monster or mortal god law 2. Narrow and Exclusive
Tyranny
ELEMENTS OF THE STATE Aristocracy - Latin word Aristo “best” racy Aldamas Explanation- this agreement
- People “intelligence” presents that globalization can either or both
- Teritory Oligarchy - wealthy family/government bring integration or fragmentation
a. Internal wealthy people
b. Teritorial / domain Democracy- Multinational
c. Area / domain Mobocracy Multi international
d. Fovial / domain a) Varbarian Transnational
- Government b) Law people Supranational
- Sovereignty
1. Internal Sovereignty TWO TYPES OF DEMOCRACY Constractive-
2. External Sovereignty 1. Pure / Direct Destructive effect-
2. Indirect / representative (Philippine
example) LIQUIDITY- movement of people, things,
Geographical type of Philippines?
 Archipelago state THREE INHERENT POWERS OF ZYGBAUMAN’S IDEAS OF INCREASED
STATE LIQUIDITY
3 TYPES OF GEOGRAPHICAL TYPE OF 1. Police power 1. Liquid phenomena is difficult to stop.
STATE 2. Eminent domain 2. Liquids tend to melt whatever stands in its
 1st Archipelago state 3. Taxation pain.
 2nd Peninsular state
 3rd Continental state Add. Info: 3 KINDS OF GLOBAL FLOW
The constitutions of the Philippines
GOVERNMENT FUNCTIONS ORIGIN AND HISTORY OF
1. Constituent Function Chapter 1: GLOBALIZATION GLOBALIZATION
 MINDANAO STATE UNIVERSITY-Main Campus, Marawi City
COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
Department of Marketing-Entrepreneurship
GEC103 | CONTEMPORARY WORLD

1. Hardwired the imperial power and the geographic areas Post-colonialism

2. Cycles
3. Epoch/Waves
4. Events
5. Broad and more recent changes
6. Questions
CHAPTER II
THEORIZING GLOBALIATION
Theory- Deals with the set of ideas and
theories that will be helpful in thinking about
globalization.
What will be presented below will analyze
globalization as a process that increase either
HOMOGENEITY or HETEROGENEITY.
IMPERIALISMS
-Methods employed by one nation-state to gain
power over an area/s and then exercise control
over it.
-More on economic control.
Q: How it is associated to globalization?
- Overtime, the nation of an empire, the
process of imperialism, came to be associated
with rulership over vast geographic spaces and
the people who lived there. Like migration,
trade and communication these process under
the heading of globalization existed between
that it controlled.
EX. US Imperialism
COLONIALISM
-It is related to imperialism.
I-t is the creation by the colonial power of
an administration in the area that has been
colonized to run its internal affairs.
-Almost always a consequence of
imperialism.
-It is the implanting of settlements on
distant -territory (cited on Ashcoft,
Griffiths, and Tiffin 1998: 45).
3 TYPES OF COLONIALISM
Decolinialism
- the process of revealing and dismantling
colonialist power in all its forms.
- achievement of political independence.
Neo-Colonialism
- efforts at control over the former colonies,
and other nation-states, grew much more
indirect, subtle (e.g. through cultural and
educational institutions) and focused on
economic control and exploitation.
- colonialist having indirect control
- the era in once-colonized areas after the
colonizing power has departed. In recent years,
it relates to various developments that take
place in a former colony after the colonizing
power departs.
- gains national identity.
Q? Where does imperialism and colonialism
became similar and where do they part from
each other?
- While both imperialism and
colonialism involve economic and political as
well as cultural control, imperialism is more
defined by economic control (exploitation),
while colonialism is more about political
control.
Imperialism- WTO, WB, IMF – exert so
much influence in our policy making system
without making colonizing us territorially
(reducing tariffs (taxes levied to foreign
products) before they will let you lend money)
MNCs – monopolization of our market thus
they can set the price they produce so high.
Colonialism- Just like what the Spaniards,
Americans, and the Japanese did when they
colonized our country. The Royal Crown of
Spain sent Spaniards in the Philippines
 MINDANAO STATE UNIVERSITY-Main Campus, Marawi City
COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
Department of Marketing-Entrepreneurship
GEC103 | CONTEMPORARY WORLD

including Friars or Priest to govern the
Filipinos. It started our colonial mentality that
the whiter you are, the superior you are, the
beautiful you are , the brighter you are. [make
up and way of dressing].
DEVELOPMENT
Historically, it preceded the global age
(McMichael 2008: 21).
It is regarded as a “PROJECT” primarily
concerned with the economic development of
specific nation-states not regarded as
sufficiently developed.
Q: Is development project applicable to all
nation-states?
- No, as Andre Gunder Frank (1969),
the developed countries were never in the same
position as less developed countries today; the
developed countries were UNDEVELOPED
while the less developed countries were
UNDERDEVELOPED. The result is that the
path followed by the former is not necessarily
the best one for the latter. To summarize the
“one-size-fits-it all concept (development
project) is not feasible to all state.
 Import-Substitution
Countries (usually in the South)
“encouraged” to develop their own industries:
instead of producing for export, and relying on
imports from other countries, especially the
North.
The South – needs capital by borrowing or
inviting the North to invest in their country.
 Foreign Direct Investment (FDI )
Is an investment by a firm in one
nation-state in a firm in another nation-state
in order gain control.
 Foreign Aid
this encompasses assistance, as well as aid
in terms of food (example, the US shipping
its excess wheat to developing countries)
DEPENDENCY THEORY
- Development of the nation-states
of the South contributed to a decline in their
independence and to an increase in their
dependence on the North (Cardoso and
Falleto, 1979).
The idea of the developed countries
being independent and the less developed
countries being dependent.
Q: Is underdevelopment caused by the less
developed countries themselves?
- No, under the development project,
the developed countries, with the global
capitalist system as a tool made the
undeveloped countries underdeveloped or less
developed.
WORLD SYSTEM THEORY
- It sees the world divided mainly
between the CORE and the PERIPHERY with
the nation-states associated with the latter
being dependent on the and exploited by the
core nation-states.
Q: In analyzing using world system theory, is
development project a success?
- According to Ritzer, development
project is a failure and it did not change the
system. It is offensive because it tended to
elevate the North while demeaning the
SOUTH.
PROPOSITION IN EXCHANGE TO
DEVELOPMENT PROJECT
- According to Ritzer,
GLOBALIZATION PROJECT at least sounded
equitable since it was inherently multi-lateral
and multi-directional while DEVELOPMENT
PROJECT is unilateral and undirectional, with
money and other assistance flowing from the
North to the South.
 MINDANAO STATE UNIVERSITY-Main Campus, Marawi City
COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
Department of Marketing-Entrepreneurship
GEC103 | CONTEMPORARY WORLD

 Liberal commitment to individual liberty,

THE DEVELOPMENT PROJECT WAS A
FAILURE SINCE:
1. The world today is characterized by great
inequalities (esp. economic)
2. The South did not develop to any
appreciable degree (they even fell further
behind)
3. It tended to elevate the North while
demeaning everything with the South
\ Character
AMERICANIZATION
- It is related to globalization, but not identical
or reducible, to it.
- Richard Kuisel (1993)- It is the import by
non-Americans of product, images,
technologies, practices and behavior that are
closely related to America (i.e.McDonalization
[Ritzer 2008), Coca-Colanization (Kuisel
1993), Disneyization (Bryman 2004) Wal-
Martization Starbuckization (Ritzer 2008)].
Q: Is America still an industrial giant?
- According to Ritzer (2008), that
beginning the 21st century Americanization
was no longer about America as an industrial
giant but more on as a CONSUMPTION giant.
ANTI-AMERICANISM AS GLOBAL
PROCESS
Anti-Americanism - an amorphous
concept that both opposition to US cultural,
economic, and political policies, as well as
more sweeping negative generalization
about the US.
- being critical to US social,
economic, political institutions, traditions,
and values
- contempt of American National
- the dislike of American people,
manners, behavior, dress and so on
- rejection of American Foreign
Policy
- a firm belief in the malignity of
American influence and presence anywhere
in the world.
Threats to US dominance:
1. Japanization
2. Asian Tigers (e.g. Singapore)
3. European Union
4. China
China- Is a sleeping giant
NEO-LIBERALISM
a belief in the free market and opposition
to state intervention.
 Radically individualistic.
 Often referred as “WASHINGTON
CONSENSUS”
 The idea of FREE MARKET
Deregulation-commitment by nation-
states to limit or eliminate restraints on the free
market and free trade.
Low taxes and to tax cuts.
Minimize spending on welfare
and safety net.
Idea of tax cuts for business and
industry.
 Having a neo-liberal state where state is to
be subordinate to the economy .
Privatizing various sectors; profit-
making; reduce barriers; glorify virtue of
free competition.
Q: does neo-liberalism made the state or
institutions irrelevant?
- According to Harvey (2006: 28)
argues that “neo-liberalism has not made the
state or particular institutions and practices of
the states irrelevant. Rather, the institutions
and practices of the state have been
transformed to better attune them to the needs
 MINDANAO STATE UNIVERSITY-Main Campus, Marawi City
COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
Department of Marketing-Entrepreneurship
GEC103 | CONTEMPORARY WORLD

and interests of the neo-liberal market
economy. “
CRITIQUE
Double Movement- coexistence of the laissez-
faire market and the reaction against it.
NEO-LIBERALISM
Milton Friedman – played a key role
in the effort to protect traditional liberal ideas,
to develop neo-liberal theory, and to sponsor
its utilization by countries throughout the
world.
- helped spreading to the whole world
neo-liberal ideas.
“Chicago Boys”- they spread the neo-liberal
doctrine taught at Chicago by Friedman and
played a central role in it becoming policy in a
number of nations.
“Shock Doctrine”- the view that a total
overhaul of an economy required a shock; and
the economic policies put in place were
designed to change the economy dramatically.
(involves privatization of industry, the
deregulation of the economy, and the
reductions in a nation’s spending on social
welfare programs).
- that’s why we should embrace neo-
liberal ideas.
SHOCK THERAPY
 Laws and regulations were dismantled.
 The nation’s capitalists were the main
beneficiaries of the therapy.
Much of the World came to accept, or was
coerced into accepting, neo-liberalism.
The International Monetary Fund (IM) and
the World Bank (WB) both were heavily
staffed by the products of the Chicago
Economics Department practiced a form of
shock therapy known as structural
adjustment.
Structural Adjustment- in order to receive
aid from these organizations, receiving
nations had to restructure their economies
and societies in line with neo-liberal theory.
Neo-liberalism is often referred to as
“Washington Consensus”. The term
“Washington Consensus” means
“unimpeded private market forces” are the
driving agents of growth. Absent was any
concern in equity, redistribution, social
issues, and the environment.
-
NEO-LIBERALISM: BASIC IDEAS
- William Easterly is opposed to any
form of collectivism and state planning
because it inhibits, if not destroys, freedom.
Easterly offers several reasons why
ECONOMIC FREEDOM is related to
ECONOMIC SUCCESS:
1. It is extremely difficult to know in
advance what will succeed and what will
fail. Economic Freedom permits a
multitude of attempts and failures are
weeded out.
2. Markets offer continuous feedback on
what is succeeding and failing; central
planners lack such feedback.
3. Economic Freedoam leads to the ruthless
reallocation of resources to that which is
succeeding; central planners often have
vested interests that prevent such
reallocation.
4. Economic Freedom permits large and
rapid increases in scale by financial
markets and corporate organizations.
5. Individuals and corporations are willing to
take great risks; central planners are risk-
 MINDANAO STATE UNIVERSITY-Main Campus, Marawi City
COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
Department of Marketing-Entrepreneurship
GEC103 | CONTEMPORARY WORLD

averse because of their personal

vulnerability if things go wrong.

CENTRAL IDEAS OF NEO-LIBERALISM

1. FREE MARKET- a market free of

any impediments
2. FREE TRADE
3. DEREGULATION- commitment by
nation states to limit or eliminate
restraints on free market and free
trade.

Note: The Principles of free market are not

restricted to the economy but can be applied to
every sphere of society, including CULTURE,
POLITICS, and the SOCIAL WORLD.

NEO-LIBERALIM is radically
INDIVIDUALISTIC