This Learning Module on The Contemporary World is the Sorsogon

State College’s response to providing flexible learning contents and

outcomes-based assessment to students.

This module which integrates independent and collaborative tasks

exposes learners to the contemporary world which encompasses the
emergence of economic, political, social and cultural systems amid
globalization. This module aims to develop among learners critical and
analytical thinking skills as they reflect on their roles and responsibilities
as global citizens.
 This course introduces students to the contemporary world by
examining the multifaceted phenomenon of globalization. Using the various
disciplines of the social sciences, it examines the economic, social, political,
technological, and other transformations that have created an increasing
awareness of the interconnectedness of peoples and places around the
globe.

To this end, the course provides an overview of the various debates

in global governance, development, and sustainability. Beyond exposing the
student to the world outside the Philippines, it seeks to inculcate a sense of
global citizenship and global ethical responsibility.

This course also includes mandatory topics on population education

in the context of population and demography.
 FELINO S. JASMIN, Jr.
SSC-Education-Accountancy Department
Introduction to Globalization

The Structures of Globalization

The Global Economy
Market Integration
The Global Interstate System
Contemporary Global Governance

A World of Regions
The Global Divides: The North and the South
Understanding Global Stratification

A World of Ideas
Media and Globalization
The Globalization of Religion

Global Population and Mobility

Global City
Global Demography
Global Migration

Towards a Sustainable World

Sustainable Development
Food Security

Global Citizenship
Global Citizenship
LESSON 1: WHAT IS GLOBALIZATION?
Different scholars have different viewpoints of what globalization is. Some would view
globalization as a positive phenomenon, some would see its detrimental effects on society which
cannot be separated from issues of global economic and cultural imperialism.

OBJECTIVES:

At the end of this lesson you are expected to:

• describe the contemporary world.

• craft one’s own working definition of globalization based on the different meanings
of globalization
• differentiate the meaning of globalization, globality and globalism from one another
• be familiarized with the dimensions and characteristics of globalization

PRE-READING ACTIVITY

Before reading the text below, choose whether to create a poster/collage, compose and perform
a song, or compose poem and deliver spoken poetry which depicts your concept of the world
today. Writing a short paragraph of description of our present world is also an option. Document
your choice and what you did.

READING

Giddens (1990) points out that globalization is the intensification of worldwide social
relations which link distant localities in such a way that local happenings are shaped by events
occurring many miles and away. In a conference in 2000, Giddens explained, “globalization is not
a single set of processes and does not lead into a single direction. It produces solidarities in some
places and destroys them in others. It has quite different consequences on one side of the world
from the other. In other words, it is a wholly contradictory process. It is not just about
fragmentation. I see it more as a shake-out of institutions in which new forms of unity go along
with new forms of unity go along with new forms of fragmentation.” Wallerstein (1998) believes
that globalization is a reflection of the triumph of a capitalist world economy bonded by a global
division of labour. Khor (1995) in discussing the world politics expressed that globalization has
long been experienced by the Third World called colonization.

For Mcgrew (1990) globalization is composed of multiple sameness and

interconnectedness that go beyond nation states where individuals and organizations in one part
of the world is affected by the activities, affairs, and convictions on another part of the globe. Holm
and George (1998) described globalization as the intensification of economic, social and cultural
relations across borders. Similarly, it is the processes by which the peoples of the world are
incorporated into a single world society, global society (Albrow, 1990). Simply, Kanter (1995) said
that it is a condition where the world is becoming a global shopping mall in which ideas and
products are available everywhere at the same time.

One of the most popular definitions of globalization is provided by Steger (2009) which
defined globalization as a set of social processes that appear to transform our present social
condition of weakening nationality into one globality. It is about the unprecedented compression
of time and space as a result of political, economic and cultural change, as well as powerful
technological innovations. Manfred further differentiated globalization, globality and globalism.
While globalization is a process, globality signifies a future social condition characterized by thick
economic, political and cultural interconnections and global flows that make currently existing
political borders and economic barriers irrelevant. On the other hand, globalism means
globalization as an ideology reflecting shared ideas, norms, values accepted as truth. He adds
that there are three kinds of globalism namely:

• Market globalism advocates promise a consumerist, neoliberal, free-market world. This

ideology is held by many powerful individuals, who claim it transmits democracy and
benefits everyone. However, it also reinforces inequality, and can be politically motivated.
• Justice globalism envisages a global civil society with fairer relationships and
environmental safeguards. They disagree with market globalists who view neoliberalism
as the only way.
• Religious globalism strives for a global religious community with superiority over secular
structures.
Steger (2009) further defines globalization as the expansion and intensification of social
relations and consciousness across world-time and world space. He explained that globalization
has several dimensions:

Economic: ‘The economic dimension of globalization’ explores how the way people have
undertaken economic production has changed. The global economic order emerged after
World War II, when the Bretton Woods Conference laid the foundations for the IMF, World
Bank, and WTO. In the 1980s neoliberalism liberalized financial transactions. However,
this unstable growth led to the Great Financial Crash, where banks traded toxic assets
without regulation. Transnational corporations rival nation-states in economic power, and
 have had a profound effect on the structure and function of the global economy. The
Washington Consensus was drafted to reform indebted developing countries, but it has
thus far rarely helped countries develop.

Political: The political dimension of globalization’ looks at political arrangements beyond

the nation-state. Traditional politics harboured an ‘us’ and ‘them’ mentality. Contemporary
globalization has led to a permeation of those borders. The modern nation-state came into
being after the Protestant Reformation, characterized by centralized government and self-
determination. The rise of organizations such as the United Nations has threatened the
nation-state, according to globalization sceptics. However, national governments still hold
significant powers. There has been a rise in the number of supra-territorial institutions,
operating from the local level all the way to the global level

Cultural: The cultural dimension of globalization’ explores the intensification and

expansion of cultural flows across the globe. Critics of cultural globalization claim that the
world is being homogenized or ‘Americanized’. However, advocates say that globalization
reinvigorates niche cultures instead of eliminating them. The existence of the global
imaginary is linked to the rise of global media networks. These networks are owned by a
small group of transnational corporations, which can affect journalistic integrity. Several
different hypotheses exist about the effects of language globalization. Some say that it
leads to protection of native tongues. On the other hand, some foresee the rise of a
‘Globish’ language.

Ecological: ‘The ecological dimension of globalization’ examines the effects of global

alliances on ecological issues. There is an inexorable link between all humanity and the
planet Earth. The Industrial Revolution has caused many ecological problems, including,
resource and food shortages, overpopulation, reduced biodiversity, pollution, and climate
change. All these problems are global — the result of aggregated human action — and
require a coordinated response. However, there are still debates about the seriousness
of ecological issues, and, whilst progress has been made, few multilateral measures
have been implemented.

Furthermore Cox (1999) provides the characteristics of globalization trend:

▪ internationalizing of production
▪ globalizing of finance and securities trading
▪ changing international division of labor
▪ vast migratory movements from South to North
▪ competitive environment that accelerates these processes
▪ internationalizing of the state making states into agencies of the globalizing
world
POST READING ACTIVITY

Reflective discussion and written output with a classmate, relative, friend, or

household member. Present your answers in a matrix/table form :

1. Craft your own personal definition of globalization based on how you have experienced it.
Relate your definition to your outputs about depicting the contemporary world.

2. What is the difference between globality and globalism?

Assignment: Write an Essay of Analysis composed of 6 paragraphs on : How can

a globalizing world of differing countries – rich and poor, democratic and authoritarian – best
promote inclusive growth and human security by meeting the challenges of inequality, climate
change, rising populism, and global disease?

REFERENCES AND READINGS

Albrow, Martin (1990). Globalization, Knowledge and Society. London: Sage.

Giddens, Anthony (1990). The Consequences of Modernity. Cambridge: Polity Press.

Holm, Hans-Henrik and Georg Sorensen (1995) “Introduction: What Has Changed?” in Hans-
Henrik Holm and Georg Sorensen, eds., Whose World Order? Uneven Globalization and the
End of the Cold War (Boulder, CO: Westview), 1–17.

Kanter, Rosabeth Moss (1995). World Class: Thriving Locally in the Global Economy (New
York: Simon and Schuster, as cited in J. A. Scholte, “The Globalization of World Politics”, in
J. Baylis and S. Smith (eds.), The Globalization of World Politics, An Introduction to
International Relations. New York: Oxford University Press, 1999.

Khor, Martin (1995). "Address to the International Forum on Globalization," New York City.

Mcgrew, A. (1990). A Global Society: Modernity and its Futures as cited by Brazalote and
Leonardo (2019) The Contemporary World: Outcome-Based Module. Quezon City: C & E
Publishing Inc.

Steger, Manfred. B. (2009). Globalization: A very short introduction. Oxford: Oxford University
Press.

Wallerstein, Immanuel (1974). The Modern World-System: Capitalist Agriculture and the Origins
of the European World-Economy in the Sixteenth Century. New York: Academic Press.

https://gened.fas.harvard.edu/urgent-problems-enduring-questions
LESSON 2: THE GLOBAL ECONOMY
The Global economy alludes to different financial exercises among various nations with
either negative or beneficial outcomes. The idea of a world economy is identified with regular day
to day existence dependent on the interconnected idea of the different countries around the world.
Exchange interrelations are noteworthy pointers of the worldwide economy. Thus, the growth of
globalization of the world's economies to a great extent is dependent on the advancement of
science and technology. Notwithstanding the drawbacks, globalization is still changing the world.
Socially, it has encouraged the trading of thoughts and societies, adding to a world view wherein
individuals are progressively open and lenient of each other.

OBJECTIVES:

At the end of this lesson you are expected to:

1. Define economic globalization;

2. Reflect on the various theories and perspectives explaining the practice of international trade;
3. Collect information about a foreign product being sold in the Philippines.

HELPFUL POINTS

Economic Globalization
The International Monetary Fund (IMF) regards “economic globalization’ as 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. These changes are the products of people,
organizations, institutions, and technologies. As with all other processes of globalization, there is
a qualitative and subjective element to this definition.
According to the United Nations (as cited by Shangquan, 2000), economic globalization
refers to the increasing interdependence of world economies as a result of the 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 is an irreversible trend for the economic development in the whole world at the turn
of the millennium.

International Trade
The conclusion of World War ll signaled the beginning of trade facilitation around the
globe. Economies set rules and guidelines for international trade which led to the formation of
General Agreement on Tariffs and Trade (GATT). These trade rules were developed through
series of rounds or meetings of member ‘economies.
International Trade (IT) 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.

Trade Theories
There are two types of trade theories explaining international trade.
• Descriptive Theory. It deals with the natural order and movement of trade. it describes
the pattern of trade under the idea of laissez faire, a French term which means "leave
alone". It refers to the notion that individuals are the best economic agents to solve the
problems through invisible hand rather than the government ‘policies. Descriptive theory
addresses the questions of which product to trade, how much product to offer and
produce, and which country to trade in the absence of government restrictions.
• Prescriptive Theory. This prescribes whether government, an important economic
institution, should interfere and restrict with the movement of goods and services. This
theory views government to have participation in deciding which countries to alter the
amount, composition and direction of goods. The pressing question describing descriptive
theory is ”Should the government control trade?”

Three Perspectives on International Trade

• Economic Liberals
David Ricardo and Adam Smith were known critics of late-eighteenth century on the abuses of
mercantilism in England. Their liberal ideas and contribution in understanding global trade are still
relevant until today. For Ricardo, his influential work Law of Comparative Advantage explains that
free trade efficiency is attainable if two countries can produce more goods and trade products
separately. The advantage of this theory in international trade is deriving from the principle of
specialization and division of labor (Nau, 2009). Countries have different resources and talents;
they are better in performing in that economic activity than other economic activities

• Mercantilism
An economic theory emerged from about 1500-1800. This period was the emerging eras of
nations-states and the formation of more central governments. This system flourished due to the
following reasons:
▪ Higher export than import.
▪ Export less high valued product and import less high valued product
▪ The benefits of colonial powers.

• Structuralists
The earliest wave of mercantilism was described as classical imperialism. The drive of European
countries to explore and colonize underdeveloped countries originated from the aggressive
mercantilist behavior of European economies. This idea was extended to the practice of modern
capitalist-imperialist approach by countries and economies that have the immense resource
through the use of hard power over developing and less developed countries.
The Modern World System (MWS) theory deveIoped by Immanuel Wallerstein, explains the
contact of economies between core, semi peripheral, and peripheral countries in the world. The
core states have the absolute advantage over the other through unequal exchange and extraction
of raw materials from periphery and semi-periphery.

Thus, the economic globalization and market integration of the 21 st century are extensions of the
same economic motives of imperial powers of the nineteenth and twentieth centuries (Balaam
and Veseth, 2008)

ACTIVITY

Follow the product!

Globalization allows for a worldwide exchange of most of the commodities that we consume.
This activity will allow you to investigate the origin and spread of the products and services sold
in our country. You will also be able to know the countries involved in the production,
distribution, and consumption of the products being sold and consumed in the country. The
following are the steps to accomplish this activity:

1. Choose a specific foreign product/brand that is being sold in the Philippines.

2. List down the main ingredients or raw materials in manufacturing the chosen product. Identify
the corresponding country from which each ingredient or raw material came from.

3. Identify the countries involved in the manufacturing of the chosen product. Indicate the
corresponding service the country does for the product (e.g., Costa Rica planting of coffee
beans).

4. Aside from the Philippines, list other countries where the product is being sold. Cite the kinds
of technology that made the creation of the product possible. Consider communications and
transportation.

5. Write one to three statements about the creation of the product and answer the following
questions:
• How do economic trading institutions influence global economic activity?
• How does it affect the Philippine economy?
• Does the position of rich countries as giants in the economic chain threaten the status of
less developed countries in the global market?
REFERENCES

Balaam, D and Vesseth, M. (2008), Introduction to International Political Economy, 4th ed.
Pearson Prentice Hall, Pearson Education, Inc.

De Ocampo, F., Ramos, B., Llomora, R.,Macaraeg, A., David, M.A. (2018), Introduction to
Contemporary World. St. Andrew Publishing House.

Claudio, L., Abinales, P. (2018), The Contemporary World. C & E Publishing, Inc.,

Shangquan, G. (2000). Economic Globalization:Trends, risks and risk prevention. CPD

background paper no.1. United Nations Development Policy and Analysis Division.

Nau, H. (2009). Perspectives on International Relations: Power, Institutions, and Ideas. 2 nd

edition. Washington DC: CQ Press Sage Publishing. 2009
Lesson 3: MARKET INTEGRATION
Much of globalization is anchored on the role global economy plays in the different nations.
We often think of economy as something that covers a wide variety of financial aspects like
employment, Gross Domestic Product (GDP) or the stability of stock markets. However, we must
understand that the economy is composed of people. It is the social institution that organizes all
productions, consumptions and trade of goods in the society. World economies have been
brought closer together by globalization. These days, many occurrences of foreign affairs are
conducted to cement trading relations between and among nations. Thus, this chapter will show
the contributions of the different financial and economic institutions in the growth of the global
economy.

OBJECTIVES:

At the end of this lesson you are expected to:

1. Discuss the role of International Financial Institutions;

2. Relate the importance of International Financial Institutions to the creation of a global
economy;
3. Write an essay on how International Financial Institutions influence global economic activity.

HELPFUL POINTS

International Financial Institutions

An international financial institution (IFI) is a financial institution that has been
established (or chartered) by more than one country, and hence are subjects of international law.
Its owners or shareholders are generally national governments, although other international
institutions and other organizations occasionally figure as shareholders.

The Bretton Woods System

The major economies in the world had suffered because of World War I, the Great
Depression in the 1930, and World War II. Because of the fear of the recurrence of lack of
cooperati0n among nation-states, political instability, and economic turmoil (especially after the
Second World War), reduction of barriers to trade and free flow of money among nations became
the focus to restructure the world economy and ensure global financial stability (Ritzer, 2015).
These consist the background for the establishment of the Bretton Woods system.
In general, the Bretton Woods system has five key elements. First element is the
expression of currency in terms of gold or gold value to establish a par value (Boughton, 2007).
Another element is that “the official monetary authority in each country (a central bank or its
equivalent) would agree to exchange its own currency for those of other countries at the
established exchange rates, plus or minus a one-percent margin" (Boughton, 2007, pp. 106-107).
The third element of the Bretton Woods system is the establishment of an overseer for these
exchange rates; thus, the International Monetary Fund (IMF) was founded.

The General Agreement on Tariffs and Trade (GATT) and the World Trade Organization
(WTO)
According to Feet (2003), global trade and finance was greatly affected by the Bretton
Woods system. One of the systems born out of Bretton Woods was the General Agreement on
Tariffs and Trade (GATT) that was established in 1947 [Goldstein et al., 2007). GATT was a forum
for the meeting of representatives from 23 member countries. It focused on trade goods through
multinational trade agreements conducted in many rounds of negotiation. However, “it was out of
the Uruguay Round (1986-1993) that an agreement was reached to create the World Trade
Organization (WTO)” (Ritzer, 2015).
The WTO headquarters is located in Geneva, Switzerland with 152 member states as of
2008 (Trachtman, 2007). Unlike GATT, WTO is an independent multilateral organization that
became responsible for trade in services, non-tarriff-related barriers to trade, and other broader
areas of trade liberalization, an example cited by Ritzer (2015) was that of the “differences
between nations in relation to regulations on items as manufactured goods or food. A given nation
can be taken to task for such regulations if they are deemed to be an unfair restraint on the trade
in such items”.

The International Monetary Fund (IMF) and the World Bank

IMF and the World Bank were founded after the World War II. Their establishment was
mainly because of peace advocacy after the war. These institutions aimed to help the economic
stability of the world. Both of them are basically banks, but instead of being started by individuals
like regular banks, they were started by countries. Most of the world’s countries were members
of the two institutions. But, of course, the richest countries were those who handled most of the
financing and ultimately, those who had the greatest influence. IMF and the World Bank were
designed to complement each other. The IMF’s main goal was to help countries which were in
trouble at that time and who could not obtain money by any means. Perhaps, their economy
collapsed or their currency was threatened. IMF, in this case, served as a lender or a last resort.

The Organization for Economic Cooperation and Development (OECD),

the Organization of Petroleum Exporting Countries (OPEC), and the European Union (EU)
The most encompassing club of the richest countries in the world is the Organization for
Economic Cooperation and Development (OECD) with 35 member states as of 2016, with Latvia
as its latest member. It is highly influential, despite the group having little formal power. This
emanates from the member countries’ resources and economic power.
In 1960, the Organization of Petroleum Exporting Countries (OPEC) was originally
comprised of Saudi Arabia, lraq, Kuwait, Iran, and Venezuela. They are still part of the major
exporters of oil in the world today. OPEC was formed because member countries wanted to
increase the price of oil, which in the past had a relatively low price and had failed in keeping up
with inflation. Today, the United Arab Emirates, Algeria, Libya, Qatar, Nigeria, and Indonesia are
also included as members.
 The European Union (EU) is made up of 28 member states. Most members in the
Eurozone adopted the euro as basic currency but some Western European nations like the Great
Britain, Sweden, and Denmark did not. Critics argue that the euro increased the prices in
Eurozones and resulted in depressed economic growth rates, like in Greece, Spain, and Portugal.
The policies of the European Central Bank are considered to be a significant contributor in these
situations.

North American Free Trade Agreement (NAFTA)

The North American Free Trade Agreement (NAFTA) is a trade pact between the United
States, Mexico, and Canada created on January 1, 1994 when Mexico joined the two other
nations. It was first created in 1989 with only Canada and the United States as trading partners.
NAFTA helps in developing and expanding world trade by broadening international cooperation.
It also aims to increase Cooperation for improving working conditions in North America by
reducing barriers to trade as it expands the markets of the three countries.

ACTIVITY

Go for a virtual Tour!

Go to the web and accomplish these tasks:

a. Choose an international economic organization (Asian Development Bank, European

Investment Bank, etc.) or an international company (Honda, McDonalds, Kimberly Clark,
etc.);

b. Research the origin and history of the institution you have chosen;

c. Identify the major country-leaders of this institution, and

d. Then write an essay on how International Financial Institutions influence global

economic activity. Mention the Philippines’ role in the interconnected global economic
activities.
REFERENCES

Aldama, P. (2018). The Contemporary World. Rex Book Store, Inc.

Boughton, J. (2007) Bretton Woods System. In Scholte, J.A & Robertson, R. (eds.) Encyclopedia
of Globalization. New York: MTM Publishing

Claudio, L., Abinales, P. (2018), The Contemporary World. C & E Publishing, Inc., Goldstein,
J.L., Rivers, D.& Tomz, M. (2007). Institutions in international relations: Understanding the
effects of the GATT and the WTO. International Organization.

Ritzer, G. (2015). Globalization: The essentials. MA: Wiley Blackwell.

Trachtman, J.P (2007). Encyclopedia of globalization. New York: MTM Publishing