THE CONTEMPORARY WORLD
THE CONTEMPORARY WORLD
OSAMA BIN LADEN
• A Suadi Born
• Studied Business Administration at King
Abdul Aziz University (Seddah)
• Founder of the militant Islamist organization
“Al Qaeda” means “the base”.
o He was successful in spreading his
principles/ ideologies because he
used his education and knowledge.
• Mastermind of numerous terrorist attacks
against the US and other Western Power.
o He is against US because he believes
that the are trying to destroy Islamic
place
o He wanted to create an Islamic state
with Islamic leaders to preserve
Islam.
• Al Jazeera is in Quatar (a local network)
GLOBALIZATION
• Globalization is ubiquitous
(everywhere omnipresent)
• Globalization has complex social and
dynamics (not one sided even made up with
contradictions)
o The tension between particularism
(when value is only significant in
particular part) and universalism
(values truth that are accepted
universaly, ex. value of life) have
already reached is only
unprecedented levels.
o Interdependencies that connect the
local to the global have been growing
faster than any fame in history.
• Used to describe a process, a condition, a
system, a force, and an age.
GLOBALITY – a social condition that makes
boundaries irrelevant.
GLOBALIZATION – a set of social process that
are thought to transform our 3 present social
condition into one globality.
Relationship of Globality & Globalization
➢ The process always has results.
Globalization leads to more Globality.
Relationship of Globalization, Globality, &
Planetarity
➢ An on-going process
➢ Curiosity also leads to Planetarity
GLOBALISM – an ideology reflecting shared idea,
norms, values, and accepted truth.
• Market Globalism – advocate the promise
of a consumerist, neoliberal, tote-market
world.
• Justice Globalism – believes in global civil
society with fairer relationship for
environmental safeguards.
• Religious Globalism – strives for global
religious community with superiority over
secular structures.
QUALITIES OF GLOBALIZATION
1. Creation & Multiplication (ex. Al Jazeera,
Mcdo, Starbucks)
2. Expansion & Stretching (ex.
Intergovernmental Association; ASEAN, Red
Cross)
3. Intensification & Acceleration
(subjective, for awareness)
Areas of Contestation
• Globalization is an uneven process
o The Blind men and the
Elephant life real story in India.
• “Maybe a geographically limited and uneven
process”
THE GLOBAL ECONOMY
• Different financial exercises among various
nation with negative or beneficial outcomes.
• The idea of world economy is identified with
regular day-to-day existence dependent on
the interconnected idea of the different
countries around the world
• The growth of globalization of the world’s
economies to great extent in dependent on
the advancement of science and technology.
ECONOMIC GLOBALIZATION
• A historical process representing the result of
human innovation and technological
progress. It is characterized by the increasing
integration of economies around the world
through the movement of goods, services,
and capital across borders (International
Monetary Fund)
• Increasing interdependence of world
economies as a result of the growing scale of
 THE CONTEMPORARY WORLD
cross border trade of commodities and
service flow of international capital and wide
rapid spread of technologies. It reflects the
continuing expansion and mutual integration
of market frontiers and is an irreversible
trend for the economic development in the
whole world at the turn of millennium
(United
Nations).
• In economic terms, globalization is nothing
but a process making the world economy an
“Organic System” by extending transactional
economic progresses and economic relations
to more and more countries by depending the
economic interdependencies among them
(Szentes, T. (2003)).
o Note: If 1 part of multifunction is
affected, therefore the other parts are
also affected.
(because we are interconnected,
means by
“organic system)
INTERNATIONAL TRADE
• A process and systems when goods,
commodities, services across national
economy, and boundaries in exchange for
money or goods of another country.
THE GLOBAL TRADING ROUT
• All-important populated continents began to
exchange products continuously ---- both
with each other directly or indirectly via
other continents --- and in values significant
to generate crucial impacts on all trading
process.
o e.g., Manila Acapulco Galleon Trade
(Global Trade)
THEORETICAL FOUNDATION ON
INTEKNAMONA TRADE
1. DESCRIPTIVE TRADE THEORY
• deals with the natural order and movement of
trade.
• Describes the pattern of trade under the idea
of “laissez faire”, a French term means
“leave alone”
• Refers to the notion that individual are the
best economic agents to solve problem
through.
2. PRESCRIPTIVE TRADE THEOREM
• Prescribe whether government, an important
economic institution, should interfere and
restrict with the movement of goods and
services.
Absolute Advantage
• When a producer can provide a good or
services in greater quantity for the same cost,
or the same quantity at a lower cost than its
competitors.
• Show how countries can gain from trade by
specializing in producing and exporting the
goods that they can produce more efficiently
than other countries
Comparative Advantage
• David Ricardo
• Free trade efficiency is attainable if two
countries can produce more goods and trade
product separately at a low cost.
• Specialization of labor (focus on the product
with much efficient
production) (focus on competition)
Mercantilism
• Dominant economic system in the
16th – 18th century.
• Benefits of colonial power
• Higher export is more important that import
Characteristic of Mercantilism
1. Belief in the static (stable) nature of wealth.
• the more gold → the wealthier → the
powerful they are.
2. The need to increase the supply of gold.
3. The need to maintain a trade surplus. (Important
to export, to trade, and gain more gold)
4. The importance of a large population.
• More workers → more production → more
gold.
5. The use of colonies to support wealth.
(3G’s: God, Gold, Glory)
6. The use of protectionism.
• Establish tariffs taxes so the products from
other countries wouldn’t be easier to import
in Spain. (To protect the local market)
 THE CONTEMPORARY WORLD

________________________________________ 2) International Monetary Fund (IMF)

Much of globalization is anchored on the role global • It maintains the international monetary
economy plays in the different nation system
→many occurrences of foreign affairs • It enables smooth trading for all around the
are…… world
• E.g., The World Trade Organization ADB -
Main Agents of Global Economy: Asian Development Bank
International Financial Institution (IFIs) Goals of IMF:
• A financial institution established by more reduce global poverty
than one country, and hence are subjects of
international law. support economic, social and institutional
• set of rules on how to run exchange properly development promote co-operation and Integration
• Its owners or shareholders (owners: national
government)
Multinational Corporation (MNC)
• Located in Mount Washington Hotel
• Create global financial institution financial Positive Impacts of MNC:
conferences • Reduces prices and increases the purchasing
power of consumers world wide
• Creation of Jobs
-United Nations Monetary and Financial • Increase variety of goods
Conference- • Creation and expansion of new markets
Location: Mount Washington Hotel • Diversity of work culture
• Promote foreign direct investment
(FDI)
BRETTON WOOD SYSTEM • Promote the transfer of knowledge and
• Made after WW1 & WW2 technology
o Because of war, there is global Negative Impacts of MNC:
economic instability. They need to
restructure. • Exploitation of cheap labor
• Created an international exchange rate • Violate certain occupational safety and
system where in currencies pegged its value environment protection laws
to the US Dollar, consequently removing the • Domestic just move overseas creating
value of stone/gold in the system (IMS after shortage in its home base
the Gold standard) • Creates Monopoly
• Could overpower small and local business

(The term Floating Exchange Rate is the currency

price of a nation is set by the forex market based on MARKET INTEGRATION
supply and demand
- expansion of firms and business activities under a
relative to other currencies)
single management

The 2 institutions:
THE 3 TYPES OF MARKET INTEGRATION:
1) International Bank for Reconstruction and
1) Horizontal Integration
Development (IBRD)
• involves some business by combining business
• E.g., The World Bank
to reduce competition
o One of the BIGGEST fund sources out
there.
 THE CONTEMPORARY WORLD

2) Vertical Integration FOUR ATTRIBUTES:

• A business acquires another business or supply 1. Exercises authority over a specific

source to control the process directly and population
thus having to control the quality and a. Citizens
quantity of a product or business 2. Governs a specific territory 3.
Government that craft laws.
(Backward integration is the process before hand,
while Forward integration is the process ahead) 4. Sovereignty

3) Conglomerate
- Merger between firms that involves totally
NATION
unrelated business activities
• “A group of people who see themselves as a
cohesive and coherent unit based on shared
cultural or historical criteria”(Rock, nd.)
The Global Interstate System • Special constructed units
INTERNATIONAL RELATION • Their existence, definition, and members can
change dramatically based on circumstances.
• Study of interaction of states with one another • “imagine community” (Benedict
and with international organizations. Anderson)
o State/ government are key drivers of Extend our Sense of
global processes. sense of nationalism
→ Explains: nation extends
beyond the
➢ Behavior that occurs the boundaries of states words
➢ The broader relationship of which such o Ex. of state and nation
behavior is part. ▪ The Philippines (but we became
➢ And the institution (private, state, non- 1 state
government, and because of Rizal)
intergovernmental) ▪ (Sense of nationalism)
Attribute of Today’s GLOBAL SYSTEM • E.g. nation of muslims (for them they are
not part of citizen)
1. There are countries or states that are ▪ Korea (1 nation but has 2 states,
interdependent and govern themselves. the North & the South)
2. These countries interact with each other • Nationalism that facilitates state formalism
through diplomacy.
3. There are international organizations that • Not every nation is a state
facilitate these interactions.
4. International organization take lives of their
own and has its own function. NATION-STATE
NATION STATE • The idea of homogenous nation governed
by its own sovereign state – where each
• NATION VS. STATE o Not all states are
state contains one nation. This idea is not
nation and not all nation are states. fully achieved. (Rock, n.d.)
STATE • Until now it remains as an “idea”.

• Independent sovereign government exercising

control over a certain spatially defined and SOVEREIGNTY
bounded area, whose borders are usually
clearly defined and internationally • “supreme authority within a territory”
recognized by other states. HISTORY OF SOVEREIGNTY
 THE CONTEMPORARY WORLD

➢ The Treaty of Westphalia

o Set of agreements signed in 1648 to Nationalism is a pre-requisite to

end the Thirty Year’s war in Europe. Internationalism.
▪ Cause: because of religious
differences
➢ Recognized that the treaty signers exercise Contemporary:
complete control over their domestic affairs Nation states are forced to submit
and swear not to meddle in each other affairs themselves to demands of
------ globally accepted free-market principles.
SOVEREIGNTY (walang
pakealamanan)
Effects of Globalization

NAPOLEON BONAPARTE • Imposed a forced choice upon nation-states.

Contemporary:
• Believe in spreading the principles of French o Nation states are forced to submit
Revolution themselves to demands of globally
Liberty Equality Fraternity accepted freemarket principles.
Lead to Napoleonic Wars (1803 – 1815) • Establishment of economic and political
integration.
➢ Ended with his defeat by Anglo and Prussian
• Establishment of International Laws and
Armies during the Battle of Waterloo (1815)
Principles
▪ Waterloo means
• Rise of transnational activism
“defeat” – (weakness)
• His defeat led to the creation of a new system
called the “Concert of Europe”. INSTITUTION THAT GOVERNS
The Concert of Europe INTERNATIONAL RELATIONS

• An alliance of great powers --- the UK, 1. Intergovernmental Organization (IGO)

Austria, Russia, and Prussia. • Peace Treaties and Military
• Sought to restore the sovereignty of states. Alliances o Provide
• Lasted from 1815 – 1914. security
▪ Ex. United Nation, NATO OTAN
TODAY:
2. Global Economic Association
• states are considered sovereign • Trade agreement
➔ Great power still holds significant influence • Selling trade disputes
over world politics. o Ex. World Trade
The desire for greater cooperation and unity Organization, ASEAN
among state and people. 3. Regional Organization
|v ➔ Promote regional cooperation
and integration o Ex. United European
Internationalism | Union, ASEAN
v

Interstate system NON-GOVERNMENTAL ORGANIZATION

(NGO)

Giuseppe Mazzini – Free independent state would E.g. (Red Cross, Green Peace, AMNESTY
be basis of an equally free, cooperative international INTERNATIONAL)
system.
➔ Also called civil society
Woodrow Wilson – Principle of
➔ Independent from government o Allows
selfdetermination…. Belief that the worlds nations
them to operate freely
had a right to a free….
 THE CONTEMPORARY WORLD

➔ Active in humanitarism TYPOLOGIES/ CLASSIFICATION

o Provide food, water, medical
1. Typology after WW2 a. FIRST WORLD
supplies.
(Green)
➔ Champion human rights and
➔ Western Capitalist
environmental causes.
Democracies o North America o
Western Europe o Other
nations such as New Zealand,
WORLD’S GLOBAL GOVERNMENT
Australia, Japan.
➢ NONE o Often used to describe
power economies.
b. SECOND WORLD (Red)
GLOBAL GOVERNANCE
➔ Communist Nation o USSR
➢ A framework institutions, rules, norms, and (Union of Soviet
procedures that facilitate collective action Socialist Republic) Soviet
and co-operation among countries and other Union o Eastern European
actions. Allies
Ex. • Bulgaria, The
Czech Republic,
❖ The Universal Declaration of Human Hungry, Poland,
Rights Romania, Russia, and
❖ PARIS 2015 ON CLIMATE CHANGE China
CONFERENCE c. THIRD WORLD (Yellow)
❖ INTERNATIONAL MONETARY FUND ➔ Remaining non allied nation
(IMF) ➔ Central America
❖ WORLD TRADE ORGANIZATION – set of
rules FW
❖ UNITED NATIONS – comprises a range of
Political
specialized agencies, programmers and funds SW
Division
that work together.
TW

Principal Organizations
d. FOURTH WORLD (Violet)
1. General assembly ➔ Synonymous with the stateless, poor,
2. Security Council and marginal nations
3. Economic and Social Council ➔ Popularized by George Manuel
4. International Court of Justice (The Fourth World. An Indian
5. The UN secretariat Reality in 1974)
6. Trusteeship council COLD WAR

The world is divided geographically, culturally, • George Orwell (novelist, journalist)

politically etc.
GLOBAL STRATIFICATION
• Hierarchical arrangement of nationstates
around the world based on their resources,
power, status, and influence.
GLOBAL INEQUALITY
• Unequal distribution of resources, power,
status, and influence.
• October 19, 1945 – used term “cold war” on
his energy “You and the Atom Bomb”
• Orwell considered social and political
implication of a state which war at once
unconquerable and in a permanent state of
“cold war” with its neighbor.
Note: FW, SW, TW, FW became obsolete
The new term that divides the Global North and
Global South → Global Divides
 THE CONTEMPORARY WORLD

As Immanuel Wallerstein shows, a system - Established - Societies and

stratification exists among the world nations. democracy agrarian economies
- Technological - Less stable
advancement economy and politics
GLOBAL NORTH - Political stability compared to the Global
- Aging North - Experiences
❖ Wealthiest and most powerful nationstates population - Zero turmoil, war, conflict,
❖ Highest status in the world population growth - poverty, anarchy and
Dominance in tyranny
GLOBAL SOUTH world trade and - Mostly former
politics colonies of colonial
❖ Nation-states with lesser power, prestige and
imperial powers
wealth
❖ Belongs with terms like “Third world and
Periphery”

GLOBAL NORTH VS GLOBAL SOUTH

GLOBAL NORTH GLOBAL SOUTH
THE BRANDT LINE (imaginary line) 5. Seek to quantify aa countries’ level of
prosperity base on both
➢ Proposed by William Brandt economic and non-economic
➢ A way of visualizing the division of factors.
the world between rich and poor nation-states.

UN STRATIFICATION

1. High Income
2. Upper Middle Income

3. Lower Middle Income

4. Low Income

Level of development as measured per capita Gross

National Income (GNI)
GNI – total of all income generated by the local
overseas business minus the outward foreign
remittances by the foreigners staying with a country

➔ Total production locally and internationally

GDP – income/ production in PH only

HUMAN DEVELOPMENT INDEX

➢ Is a summary of measurement of key dimensions of human

development.
Key Dimensions

1. Life Expectancy on Birth

2. Adult Literacy
3. Educational Enrollment Rates
 THE CONTEMPORARY WORLD

4. Gross National Income

Implication of HDI

1. Used to question national policy choices

2. Change the focus on policy makers, media, and
NGO form economic statistics to human outcomes
3. Determine how countries with same income per
person can have different human development
outcomes.
4. Used to highlight differences with countries,
between provinces or states, and across gender
ethnicities and other socioeconomic groupings.