Republic of the Philippines

BATANGAS STATE UNIVERSITY

Alangilan Campus
Alangilan, Batangas City

COLLEGE OF ENGINEERING, ARCHITECTURE & FINE ARTS

THE CONTEMPORARY WORLD

INTRODUCTION TO GLOBALIZATION

GLOBALIZATION
⬗ Globalization is the process in which people, ideas and goods spread
throughout the world, urging more interaction and integration between the
world’s cultures, governments and economies.

⬗ Globalization is a process of interaction and integration among people,

companies, and governments of different nations, a process driven by
international trade and investment and aided by information technology (this
has effects on the environment, culture, political systems, economic
development and prosperity, and on human physical well-being in societies
around the world).

People are engaged in buying and selling from other places in far-away lands
like the famed Silk Road across Central Asia that connected China and Europe
during the Middle Age for thousands of years and they also invested in
enterprises in other countries for centuries.

ACCORDING TO MANFRED STEGER:

“Globalization is the expansion and intensification of social relations and
consciousness across world-time and world-space.”

⬗ Expansion: creation of new social networks and the increasing of existing

connection.

⬗ Intensification: stretching and acceleration of social networks.

⬗ Social relations: interactions between two or more people, groups, or

organizations. They are composed of social, physical, and verbal interactions
that create a climate for the exchange of feelings and ideas.

⬗ Time and Space: in the contemporary era, eople begin to feel that the world
has become smaller and distance has collapsed from thousand miles to just a
click away.
CHARACTERISTICS OF GLOBALIZATION
1. Globalization involves the creation of social networks that cut across
traditional, political, economic, cultural, and geographical boundaries.

⬗ Olympics: Today’s media combine conventional TV coverage with multiple

streaming feeds into digital devices that transcend nationally based services.

2. Globalization is reflected in the expansion and the stretching of social relations,

activities, and connections.

⬗ Opening of local fast food chains in other countries.

⬗ Existence of electronics around the globe.
⬗ Products whose various components were manufactured in different countries.

3. Globalization involves the intensification and acceleration of social exchanges

and activities.

⬗ The worldwide web relays distant information in real time.

⬗ Satellites provide consumers with instant pictures of remote events.
⬗ Social Media

4. Globalization processes do not occur merely on an objective, material level but

they also involve the subjective plane of human consciousness.

Globalization involves both the macro-structures of a global community and the micro-
structures of global personhood. It extends deep into the core of the self and its
dispositions, facilitating the creation of multiple individual and collective identities
nurtured by the intensifying relations between the personal and the global. They differ
from each other by acceleration in the speed of social exchanges and widening of
geographical scopes.

HISTORICAL PERIODS 0F GLOBALIZATION

⬗ The Prehistoric Period (10000 BCE-3500 BCE)

In this earliest phase of globalization, contacts among hunters and gatherers

were geographically limited. In this period due to absence of advanced forms
of technology, globalization was severely limited.

⬗ The Pre-modern Period (3500 BCE- 1500 CE)

In this period the invention of writing and the wheel were great social and
technological boosts that moved globalization to a new level. The invention of
wheel in addition to roads made the transportation of people and goods more
efficient while writing facilitated the spread of ideas and inventions.

⬗ The Early Modern Period (1500-1750)

It is the period between the Enlightenment and the Renaissance. During this
period, European Enlightenment project tried to achieve a universal form of
morality and law. This with the emergence of European metropolitan centers
and unlimited material accumulation which led to the capitalist world system
helped to strengthen globalization.

⬗ The Modern Period (1750-1970)

Innovations in transportation and communication technology, population

explosion, and increase in migration led to more cultural exchanges and
transformation in traditional social patterns. Process of industrialization also
accelerated.

⬗ The Contemporary Period (from 1970 to present)

 The creation, expansion, and acceleration of interdependencies around the
world occurred in a dramatic way and it was a kind of leap in the history of
globalization.

DIMENSIONS OF GLOBALIZATION
Economic Dimension

This refers to the extensive development of economic relations across the

globe as a result of technology and the enormous flow of capital that has
stimulated trade in both sources and goods.

Major players in the global economic order:

⬗ Huge international corporations (General Motors, Walmart, Mitsubishi)
⬗ International Economic Institutions (IMF, World Trade Organization, World Bank)

Political Dimension

This refers to an enlargement and strengthening of political interrelations

across the globe.

Political Issues that Surface in this Dimension:

⬗ The principle of state sovereignty
⬗ Increasing impact of various intergovernmental organization
⬗ Future shapes of regional and global governance

Cultural Dimension

This refers to the increase in the amount of cultural flows across the globe.
Cultural interconnections are at the foundations of contemporary globalization.

Cultural diversity often results hybridization (a constructive interaction process

between global and local characteristics which is often visible in food, music,
dance, film, fashion, and language). As a result, there is a scarcely any society
in the world that expresses itself in its own unique and authentic culture.

Media empires generated and directed the extensive flow of culture. Examples
of these are Yahoo, Google, Microsoft, and Disney. Advertisement plays an
important role in this cultural flow by featuring various celebrities in the
television aside from transforming newscast into entertainment shows.

Religious Dimension

Religion is a personal or institutionalized set of attitudes, beliefs, and practices

relating to or manifesting faithful devotion to an acknowledged ultimate reality
or deity. It is the most important defining element of any civilization as
contrasted with race, language, or way of life. As such, it is also portrayed as
a defining element in future conflicts. Religion is certainly central to much of
the strife currently taking place around the globe.

Ideological Dimensions

Ideology is a system of widely shared ideas, beliefs, norms and values among
a group of people. It is often used to legitimize certain political interests or to
defend dominant power structures. Ideology connects human actions with
some generalized claims.

Arjun Appadurai’s “Scapes”:

 “Globalization occur on multiple and intersecting dimensions of integration”

⬗ Ethnoscape: represent the movement of people around the world

(Ex: refugees: people who have seek asylum from danger in their
homelands/people moving to seek jobs elsewhere; tourists)

⬗ Technoscapes: refers to the ways that technologies help speed up cross-border

movements

(Ex: handheld devices: smart phones, cameras and personal computing

devices; internet: technology helped us to connect across the globe at an
unprecedented rate)

⬗ Financescapes: represent the movement of money across borders

(Ex: stock exchange: trades of capital occur in seconds all hours of the day
across the global stock exchanges; credit cards: for easier spending)

⬗ Mediascapes: media has an increasingly global reach

(Ex: blogging: people can now get their news from anyone with an internet
connection; BBC: People around the world rely on global news outlets like the
BBC to get their information)

⬗ Ideoscapes: refers to the ideas, symbols and narratives that have spread
around the globe.

(Ex: the ideas of liberal democracy as one of the most powerful ideologies in
the world.)

MISCELLANEA
Globalization vs. Globalism

⬗ Globalization is a social process of intensifying global interdependence while

globalism is an ideology that gives the concept of neo-liberal values and meanings
to globalization.

⬗ Globalization represents the many processes that allow for the expansion and
intensification of global connections while globalism is a widespread belief among
powerful people that the global integration of economic markets is beneficial for
everyone since it spreads freedom and democracy across the world.

Prepared by:

___________________________
Mr. Gian Nicolo Dexter M. Atienza
Lecturer
 Republic of the Philippines
BATANGAS STATE UNIVERSITY
Alangilan Campus
Alangilan, Batangas City

COLLEGE OF ENGINEERING, ARCHITECTURE & FINE ARTS

THE CONTEMPORARY WORLD

THE GLOBAL ECONOMY

ECONOMIC GLOBALIZATION
• Economic globalization is 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. This reflects the
continuing expansion and mutual integration of market borders, and is an irreversible
trend for the economic development in the whole world.
• According to the International Monetary Fund, economic globalization is a historical
process, the result of human innovation and technological progress. It refers to the
increasing integration of economies around the world, particularly through the movement
of goods, services, and capital across borders. It also refers to the movement of people
(labor) and knowledge (technology) across international borders.
• Economic globalization is a process making the world economy an ORGANIC SYSTEM
by extending transnational economic processes and economic relations to more and more
countries and by deepening the economic interdependencies among them.

Two Major Driving Forces for Economic Globalization

▪ The rapid growing of information in productive activities

▪ Marketization (a restructuring process that enables state enterprises to operate as

market-oriented firms by changing the legal environment in which they operate. This can
be achieved through organizational restructuring of management such as decentralization
(transfer of authority from a central government to a sub-national entity), and
privatization (transfer of industry, or service from public to private ownership and
control)).

Dimensions of Economic Globalization

▪ The globalization of trade of goods and services

▪ The globalization of financial and capital markets

▪ The globalization of technology and communication

▪ The globalization of production

INTERNATIONAL MONETARY SYSTEMS

• International Monetary Systems (IMS) refers to a system that forms rules and standards
for facilitating international trade among the nations.

• It helps in reallocating the capital and investment from one nation to another.

• It is the global network of the government and financial institutions that determine the
exchange rate of different currencies and set rules by which different nations exchange
currencies for international trade.
Evolution of the International Monetary System

▪ In 1870 to 1914, with the help of gold and silver, trade was carried without any
institutional support. Monetary system during that time was decentralized while market
based and money played a minor role in international trade in contrast to gold.
▪ Gold standard functioned as a fixed exchange rate regime, with gold as the only
international reserve.
▪ Gold Standard is a system of backing a country’s currency with its gold reserves. Such
currencies are freely convertible into gold at a fixed price, and the country settles all its
international trade transactions in gold.
▪ After World War I, the use of gold declined due to increased expenditure and inflation
which were caused by war. Major economic powers were on gold standards but could not
maintain it and failed because of the Great depression in 1929.
▪ In 1944, 730 representatives of 44 nations met at Bretton Woods, New Hampshire, United
States to create a new international monetary system called as the Bretton Woods
system, the aim of which is to create a stabilized international currency system and
ensure a monetary stability for all the nations.
▪ Since the United States held most of the world’s gold, all the nations would determine
the values of their currencies in terms of dollar. The central banks of nations were given
the task of maintaining fixed exchange rates with respect to dollar for each currency.
▪ The Bretton Woods system ended in 1971 as the trade deficit and inflation undermined
the value of dollar in the whole world. The gold standard has never worked satisfactorily
in controlling inflation or maintaining equilibrium in international transactions.
▪ In 1973, the floating exchange rate system, also known as flexible exchange rate system
was developed that was market based.

EUROPEAN MONETARY INTEGRATION

• European monetary integration refers to a 30-year long process that began at the end of
the 1960s as a form of monetary cooperation intended to reduce the excessive influence
of the US dollar on domestic exchange rates, and led, through various attempts, to the
creation of a Monetary Union and a common currency. This Union brings many benefits
to Member States.

• The European Monetary System (EMS) is a 1979 arrangement between several

European countries which links their currencies in an attempt to stabilize the exchange
rate. This system was succeeded by the European Economic and Monetary Union
(EMU), an institution of the European Union (EU).

• In June 1998, the European Central Bank was established and, in January 1999, a unified
currency, the euro, was born and came to be used by most EU member countries.

• According to the European Commission, the first ten years of the EMU were an evident
success for participating countries in terms of increased trade and capital transactions,
more integrated economies, and the utilization of Euro as the second most widely used
reserve currency.

• But in 2008 to 2009, EU is presented with dramatic challenges brought by global financial
and economic crisis.

• The EU in 2010 in response to the crisis, enacted the three-pillar financial rescue program
which includes: the European Financial Stability Mechanism, the European Financial
Stability Facility, and the Financial assistance of International Monetary Fund. The future
of EMU depends on the willingness of member states to agree on more fundamental
changes in the governance of Eurozone.

• The European Financial Stability Mechanism (EFSM) is a permanent fund to provide

emergency assistance to member states within the Union.
 • The European Financial Stability Facility (EFSF) is an organization which aids member
states with unstable economies. The EFSF is a special purpose vehicle (SPV) managed by
the European Investment Bank, a lending institution. The fund raises money by issuing
debt, and distributes the funds to eurozone countries

• The International Monetary Fund (IMF) is an international financial institution,

formed in July 1944, at the Bretton Woods Conference, and is now headquartered in
Washington, D.C. It consists of 190 countries working to foster global monetary
cooperation, secure financial stability, facilitate international trade, promote high
employment and sustainable economic growth, and reduce poverty around the world
while periodically depending on the World Bank for its resources.

INTERNATIONAL TRADE AND TRADE POLICIES

International Trade

• International trade is the exchange of goods, services and capital across national
borders. It is central to the Gross Domestic Product (GDP) of many countries, and is the
only way for people in countries to acquire resources.

• The economy of the world is also affected by the exchange of goods as dictated by supply
and demand, making goods and services obtainable which may not be available globally
to consumers.

• Trading globally gives consumers and countries the opportunity to be exposed to goods
and services not available in their own countries.

Two key concepts in the economics of international trade

▪ Comparative advantage (so long as the two countries have different relative
efficiencies, the two can benefit from trade)
▪ Specialization (countries as well as individual businesses can maximize their welfare by
specializing in the production of those goods where they are most efficient and enjoy the
largest advantages over rivals)

Two Types of Economies in International Trade

▪ PROTECTIONISM (Policy of protecting local industries against foreign competition by

means of trade barriers (measures that governments introduce to make imported goods
or services less competitive than locally produced goods and services, e.g. tariffs,
embargoes, and quotas).

▪ TRADE LIBERALIZATION (removal or reduction of restrictions or barriers on the free

exchange of goods between nations).

Types of Trade Policies

▪ National Trade Policy safeguards the best interest of its trade and citizen.

▪ Bilateral Trade Policy regulates the trade and business relations between two nations,
this policy is formed. Under the trade agreement the national trade policies of both the
nations and their negotiations are considered while bilateral trade policy is being
formulated.

▪ International Trade Policy defines the international trade policy under their charter like
the International economic organizations, such as World Trade Organization (WTO) and
International Monetary Fund (IMF). The best interests of both developed and developing
nations are upheld by the policies.

Trade Policy and International Economy

▪ In most developed countries where open market economy prevails, the international
economic organizations support free trade policies.

▪ In the case of developing nations partially-shielded trade practices are preferred to

protect their local trade industries
GLOBAL ECONOMY OUTSOURCING
▪ Outsourcing is a means of finding a partner with which a firm can establish a bilateral
relationship and having the partner undertake relationship-specific investments so that it
becomes able to produce goods and services that fit the firm’s particular needs.

▪ Often, the bilateral relationship is governed by a contract, but even in those cases the
legal document does not ensure that the partners will conduct the promised activities
with the same care that the firm would use itself if it were to perform the tasks.

Three essential features of a modern outsourcing strategy.

▪ Firms must search for partners with the expertise that allows them to perform the
particular activities that are required.

▪ They must convince the potential suppliers to customize products for their own specific
needs.

▪ They must induce the necessary relationship-specific investments in an environment with

contracting.

Possible Determinants of the Location of Outsourcing

▪ Size of the country can affect the “thickness” of its markets.

▪ The technology affects the cost and likelihood of finding a partner.

▪ The technology for specializing components determines the willingness of a partner to

undertake the needed investment

▪ The contracting environments can impact on a firm’s ability to induce a partner to invest
in the relationship.

Prepared by:

___________________________
Mr. Gian Nicolo Dexter M. Atienza
Lecturer
 Republic of the Philippines
BATANGAS STATE UNIVERSITY
Alangilan Campus
Alangilan, Batangas City

COLLEGE OF ENGINEERING, ARCHITECTURE & FINE ARTS

THE CONTEMPORARY WORLD

MARKET INTEGRATION

MARKET INTEGRATION
• Market integration refers to how easily two or more markets can trade with each other.

• It occurs when prices among different locations or related goods follow similar patterns
over a long period of time.

• The term is further used in identifying related phenomenon of market of goods and
services experiencing similar patterns of increase or decrease in prices of products.

• It may also refer to the movement of prices of related goods and services sold in a
defined geographical location in similar patterns.

• Market integration exists when there are exerted effects that prompt similar changes or
shifts in other markets that focus on related goods on events occurring within two or
more markets.

Types of Market Integration

• Negative integration: Implies the elimination of barriers that restrict the movement of
goods, services and factors of production.

• Positive integration: Refers to the creation of a common sovereignty through the

modification of existing institutions and the creation of new ones.

GLOBAL CORPORATION
• A global corporation is a business that operates in two or more countries. It also goes by
the name "multinational company".

• Several advantages are offered by global expansion of business over running a strictly
domestic company. Expanding revenue and diversifying business risk are the purposes of
becoming global corporation. Access to more customers and capital is obtained through
a model that works domestically well and translates foreign markets well.

FOREIGN DIRECT INVESTMENT

• Foreign Direct Investment is an investment made by a company or individual in one
country in business interests in another country, in the form of either establishing
business operations or acquiring business assets in the other country, such as ownership
or controlling interest in a foreign company.

• The key feature is that it is an investment made that establishes either effective control
of, or at least substantial influence over, the decision making of a foreign business.
BRICS ECONOMIES
• BRICS is an acronym for the combined economies of Brazil, Russia, India, China and
South Africa. These five countries were among the fastest growing emerging markets as
of 2011.

• China and India will, by 2050, become the world's dominant suppliers of manufactured
goods and services. On the other hand, Brazil and Russia will become similarly dominant
as suppliers of raw materials.

• Due to lower labor and production costs in these countries (including South Africa), many
companies have also cited BRICS as a source of foreign expansion opportunity.

GENERAL AGREEMENT ON TRADE IN SERVICES (GATS)

• GATS is the first multilateral agreement covering trade in services which came into force
in 1995.

• The GATS provides a framework of rules governing services trade, establishes a

mechanism for countries to make commitments to liberalize trade in services.

• Objectives:
o Creating a credible and reliable system of international trade rules
o Ensuring fair and equitable treatment of all participants
o Stimulating economic activity through guaranteed policy bindings
o Promoting trade and development through progressive liberalization

Prepared by:

___________________________
Mr. Gian Nicolo Dexter M. Atienza
Lecturer
 Republic of the Philippines
BATANGAS STATE UNIVERSITY
Alangilan Campus
Alangilan, Batangas City

COLLEGE OF ENGINEERING, ARCHITECTURE & FINE ARTS

THE CONTEMPORARY WORLD

THE GLOBAL INTERSTATE SYSTEM

GLOBALIZATION AND THE NATION-STATES

• Hedley Bull, a 20th century international philosopher stated that states are independent
political communities each of which possesses a government and asserts sovereignty in
relation to a particular portion of the earth’s surface and a particular segment of the
human population.

• Elements:
▪ Territory
▪ People
▪ Government
▪ Sovereignty

• Nation and State

▪ A nation can be defined as group of people who are bound together into a single
body, through history, customs, value, language, culture, tradition, art and religion.
▪ A state can be defined as a patch of land with a sovereign government.

• Nation-State

▪ a territorially bounded sovereign polity that is ruled in the name of a community of

citizens who identify themselves as a nation.

▪ The term nation-state has a dual concept:

▪ Nation–states: territorial organizations characterized by the monopolization of

legitimate violence (qua states).

▪ Nation–states: membership associations with a collective identity and a

democratic pretension to rule (qua nation).

STATE AND ECONOMIC INTERDEPENDENCE

• Thomas Friedman’s “Golden Straitjacket”

▪ The belief that globalization imposes a forced choice upon states either to conform to
free market principles or run the risk of being left behind

▪ Illustrate the forcing of states into policies that suit the preferences of investment
houses and corporate executives (Electronic Herd-live nervous system of the world's
capital markets such as New York, London, Paris, Hong Kong) who swiftly move
money and resources into countries favored as adaptable to the demands of
international business and withdraw even more rapidly from countries deemed
uncompetitive.

▪ Countries are compared to individual stocks where the states and their government
are rewarded and punished similar to buying and selling shares of individual
companies.
 ▪ States also have lost an important element of economic sovereignty and that neo-
liberalism is beyond contestation.

▪ There are two things that will happen if a country is in Golden Straitjacket: the
economy grows and politics shrinks.

▪ It is a straitjacket because it narrows the political and economic policy choices of

those in power to relatively tight parameters.

NEOLIBERALISM AND ECONOMIC SOVEREIGNTY

• Neoliberalism

▪ A contemporary economic ideology that emphasizes the value of free market

competition and is most commonly associated with laissez-faire.

▪ used to refer to market-oriented reform policies such as: eliminating price controls,
deregulating capital markets, lowering trade barriers, and reducing, especially
through privatization, state influence in the economy.

• Economic Sovereignty

▪ The power of the national governments to make decisions independently from those
made by other governments.

▪ Globalization as an increase in the international integration of markets for goods,

services, capital and labor, is also a counterpoint of national sovereignty.

• Four Different Concepts of Sovereignty:

▪ International Legal Sovereignty refers to the acceptance of a given state as a member

of the international community.

▪ Westphalian Sovereignty is based on the principle that one sovereign state should
not interfere in the domestic arrangements of another.

▪ Interdependence Sovereignty is the capacity and willingness to control flows of

people, goods and capital into and out of the country.

▪ Domestic Sovereignty is the capacity of a state to choose and implement policies

within the territory.

• The increase of the number of international organizations and the expansion of their
functions have undeniably restricted an individual country's sovereignty to certain extent.

• The most typical example is the increasingly extensive involvement of the world's three
leading financial institutions: The World Bank, the International Momentary Fund (IMF)
and the World Trade Organization (WTO) in domestic economic affairs of their members.

• Many underdeveloped nations that resorted to foreign assistance and interventions

resulted to the deprivation of government as regard control of their economy due to the
disorderly domestic economic establishments.

• More importantly, some of the world's leading economic entities, such as the United
States, the European Union and Japan, by taking advantage of their predominant
economic status, are affecting or infringing upon other countries' economic sovereignty.

• While countries inevitably cede some control over their economic sovereignty to external
actors, it is the “structural power” of sovereign states which still dictates the terms and
tenets of globalization.
EUROPEAN INTEGRATION
• European integration is the process of industrial, political, legal, economic, social, and
cultural integration of states wholly or partially in Europe and has primarily come about
through the European Union and its policies.

• European Union (EU), is an international organization comprising 27 European countries

(United Kingdom has left EU last January 2020) and governing common economic, social,
and security policies.

ECONOMIC INTEGRATION

• Economic integration can be described as a process and a means by which a group of

countries strives to increase their level of welfare.

• It is an arrangement between different regions that often includes the reduction or

elimination of trade barriers, and the coordination of monetary and fiscal policies.
Reducing costs for both consumers and producers and increasing trade between the
countries involved in the agreement are the aims of economic integration

Seven Stages of Economic Integration

▪ Preferential Trading Area (PTA)

▪ Free Trade Area
▪ Customs Union
▪ Common Market
▪ Economic Union
▪ Economic and Monetary Union
▪ Complete Economic Integration

• Preferential Trade Areas (PTAs)

▪ Areas having an agreement on reducing or eliminating tariff on selected goods

imported from other members of countries within the geographical region.

▪ Agreement can either be bilateral (between two countries), or multi-lateral (several

countries).

• Free Trade Areas (FTAs)

▪ Two or more countries in a region agree to reduce or eliminate barriers to trade on

all goods coming from other members.
• Custom Union

▪ Removal of tariff barriers between members, together with the acceptance of a

common or unified external tariff against non-members.

• Common Market (CM)

▪ To be defined as a common market, the following conditions must be satisfied:

o Tariffs, quotas, and all barriers regarding importing and exporting goods and
services among members are eliminated.

o Common trade restrictions such as tariffs on countries outside the group are
adopted by all members.

o Production factors such as labor and capital are able to move freely without
restriction among member countries.

• Economic Union

▪ Trading alliance that has both a common market between members, and a common
trade policy towards non-members, although members are free to pursue
independent macroeconomic policies.

▪ It requires coordinated monetary and economic policies as well as labor market,

regional development, transportation and industrial policies.

▪ In economic union the use of a common currency and a unified monetary policy is
considered.

• Economic and Monetary Union (EMU)

▪ Involves a single economic market, a common trade policy, a single currency and a
common monetary policy which represents a major step in the integration of EU
economies.

▪ EMU involves the coordination of economic and fiscal policies, a common monetary
policy and a common currency, the euro.

• Complete Economic Integration

▪ Final stage of economic integration in which member states completely forego

independence of both monetary and fiscal policies.

▪ States that participate in complete economic integration have no control of economic

policy including economic trade rules.

▪ There is full monetary union where regulations regarding labor and capital are shared
between member states and this includes a single currency. There is also a complete
harmonization of fiscal policy which includes shared regulation of tax and benefit
rates.

▪ Involved in complete economic integration are single economic market, a common

trade policy, a single currency, a common monetary policy, together with a single
fiscal policy, including common tax and benefit rates or the complete harmonization
of all policies, rates, and economic trade rules.

• Political integration

▪ Refers to the integration of components within political systems; the integration of

political systems with economic, social, and other human systems; and the political
processes by which social, economic, and political systems become integrated.

▪ Political integration is mainly based on welfare increasing effects of integrated policy

making according to the Economics of European integration. It brings economic
benefits by leading the recovery of effectiveness in policy making.
THEORIES OF EUROPEAN INTEGRATION
• Neo-functionalism (Ernst B. Haas and Leon Lindberg)

▪ It is a theory of regional integration which aimed at integrating individual sectors in

hopes of achieving spill-over effects. The core of neo-functionalism is the use of the
concept ‘spill–over’: situations when an initial decision by governments to place a
certain sector under the authority of central institutions creates pressures to extend
the authority of the institutions into neighboring areas of policy.

• Intergovernmentalism (Stanley Hoffmann)

▪ Theory which provides a conceptual explanation of the European integration process.

The main concept of the Intergovernmentalism is emphasizing on the role of national
states in the European integration. It argues that "European integration is driven by
the interest and actions of nation states". The theory proposed the Logic of Diversity:
“set limits to the degree which the ‘spill-over’ process can limit the freedom of action
of the governments…the logic of diversity implies that on vital issues, losses are not
compensated by gains on other issues”.

• Liberal Intergovernmentalism (Andrew Moravcsik)

▪ 'state-society relations (the relationship of state to the domestic and transnational

social context in which they are embedded) have a fundamental impact on state
behavior in world politics and that the 'universal condition of world politics is
globalization.’

▪ It is the web of globalized economic, social and political relationships that determines
the living conditions of individual citizens, corporations and civic groups and shapes
what they want and thus what their governments want.

• New Institutionalism

▪ Theory which emphasized the importance of institutions in the process of European

integration. Its three key strands are: rational choice, sociological and historical.

• Multi-level Governance (MLG) (Liesbet Hooghe and Gary Marks)

▪ This is a new theory of European integration.

▪ Dispersion of authority across multiple levels of political governance.

▪ Over the last fifty years, authority and sovereignty has moved away from national
governments in Europe, not just to the supranational level with the EU, but also to
subnational levels such as regional assemblies and local authorities.

TRANSNATIONAL ACTIVISM IN STATES

• Transnational activism

▪ The mobilization of collective claims by actors located in more than one country
and/or addressing more than one national government and/or international
governmental organization or another international actor.

▪ It is a social movements and other society organizations and individuals operating

across state borders. It also refers to the coordinated international campaigns on the
part of networks of activists against international actors, other states, or international
institutions.

• Social Movement

▪ It refers to the organizational structures and strategies that may empower oppressed
populations to mount effective challenges and resist the more powerful and
advantaged elites".

▪ They are large, sometimes informal, groupings of individuals or organizations which

focus on specific political or social issues. They carry out, resist, or undo a social
change.
 • The Global Justice Movement

▪ Describes the loose collection of individuals and groups often referred to as a

“movement of movements”, who advocate fair trade rules and are negative to current
institutions of global economics such as WTO.

• New Transnational Activism

▪ Although globalization and global neo-liberalism are frames around which many
activists mobilize, the protests and organizations are not the product of a global
imaginary but of domestically rooted activists who are the connective tissue of the
global and the local, working as activators, brokers and advocates for claims both
domestic and international.

SOCIAL MEDIA AND THE STATES

Social Media

• Social media is a computer-based technology that facilitates the sharing of ideas and
information and the building of virtual networks and communities.

• By design, social media is internet based and offers users easy electronic communication
of personal information and other content, such as videos and photos. Users engage with
social media via computer, tablet or smartphone via web-based software or web
application, often utilizing it for messaging.

Social Media and the States

• It “empowers” individuals to have a voice.

• Many social movements have increasingly seen social media as a means to collaboratively
crowdsource with diverse stakeholders.

• In large organizations, social media are often supported because the technology can help
foster the sense of a “digital village” where individuals are able to “see” the lives of others
within their organization and feel closer to them.

• Landscape of organizational communication within social movements is shaped and often

fundamentally influenced by social media.

• Social movements can and do draw from accumulated knowledge gleaned from previous
movements and activities.

• Social media have changed the ways in which this knowledge is being recorded and
passed on.

• New Media opens up potential for citizens to gain leverage.

Prepared by:

___________________________
Mr. Gian Nicolo Dexter M. Atienza
Lecturer
 Republic of the Philippines
BATANGAS STATE UNIVERSITY
Alangilan Campus
Alangilan, Batangas City

COLLEGE OF ENGINEERING, ARCHITECTURE & FINE ARTS

THE CONTEMPORARY WORLD

THE CONTEMPORARY GLOBAL GOVERNANCE

THE GLOBAL GOVERNANCE

• Global governance or world governance is a movement towards political integration of
transnational actors aimed at negotiating responses to problems that affect more than
one state or region.

• It is concerned with issues that have become too complex for a single state to address
alone. Humanitarian crises, military conflicts between and within states, climate change
and economic volatility pose serious threats to human security in all societies; therefore,
a variety of actors and expertise is necessary to properly frame threats, devise pertinent
policy, implement effectively and evaluate results accurately to alleviate such threats.

• It tends to involve institutionalization, and these institutions – the United Nations, the
International Criminal Court, the World Bank, etc. – tend to have limited or demarcated
power to enforce compliance.

• The two types of International Organizations

▪ Universal membership: United Nations (UN), Bretton Woods Institutions and World
Trade Organization (WTO)
▪ Limited membership: European Union (EU) and the North Atlantic Treaty
Organization (NATO)

• Global governance can be thus understood as the sum of laws, norms, policies, and
institutions that define, constitute, and mediate trans-border relations between states,
cultures, citizens, intergovernmental and nongovernmental organizations, and the
market.

THE UNITED NATIONS

• Coined by US Pres. Franklin D. Roosevelt when representatives of 26 nations pledged
their Governments to continue fighting together against the Axis Powers.

• The United Nations was established after World War II with the aim of preventing future
wars, succeeding the ineffective League of Nations (LON).

• In 1945, representatives of 50 countries met in San Francisco at the United Nations

Conference on International Organization to draw up the United Nations Charter.

• The Charter was signed on 26 June 1945 by the representatives of the 50 countries.
Poland, which was not represented at the Conference, signed it later and became one of
the original 51 Member States.

• There are 193 UN member states with the addition of South Sudan in July 14, 2011.

• Philippines joined UN on October 24, 1945, under the administration of Sergio Osmeña.
• Purpose:

▪ Maintaining worldwide peace and security

▪ Developing relations among nations
▪ Fostering cooperation between nations in order to solve economic, social, cultural, or
humanitarian international problems
▪ Providing a forum for bringing countries together to meet the UN's purposes and
goals

• Main Organs:

▪ General Assembly (GA)

▪ Main deliberative, policymaking and representative organ of the UN
▪ All 193 Member States
▪ Decisions on important questions (peace and security) require a two-thirds majority
▪ Decisions on other questions are by simple majority
▪ The General Assembly, each year, elects a GA President to serve a one-year term of
office (incumbent: Abdulla Shahid of Maldives)

▪ Security Council (SC)

▪ Responsible for the maintenance of international peace and security
▪ 15 Members (5 permanent and 10 non-permanent members).
▪ Takes the lead in determining the existence of a threat to the peace or act of
aggression
▪ The Security Council has a Presidency, which rotates, and changes, every month.

▪ Economic and Social Council (ECOSOC)

▪ Principal body for coordination, policy review, policy dialogue and recommendations
on economic, social and environmental issues, as well as implementation of
internationally agreed development goals.
▪ 54 Members, elected by the General Assembly for overlapping three-year terms

▪ International Court of Justice

▪ The International Court of Justice is the principal judicial organ of the United Nations.
▪ Its seat is at the Peace Palace in the Hague (Netherlands).
▪ Settle, in accordance with international law, legal disputes and to give advisory
opinions on legal questions

▪ Secretariat
▪ Comprises the Secretary-General (incumbent: Antonio Guterres) and tens of
thousands of international UN staff members
▪ The Secretary-General is chief administrative officer of the Organization, appointed
by the General Assembly on the recommendation of the Security Council for a five-
year, renewable term

▪ Trusteeship Council
▪ The Trusteeship Council was established in 1945 by the UN Charter, to provide
international supervision for Trust Territories that had been placed under the
administration of Member States, and ensure that adequate steps were taken to
prepare the Territories for self-government and independence.

CHALLENGES OF GLOBAL GOVERNANCE IN THE 21st CENTURY

• Issues that involve interwoven domestic and foreign challenges include threats at the
beginning of the century which include ethnic conflicts, infectious diseases, and terrorism
as well as a new generation of global challenges including climate change, energy
security, food and water scarcity, international migration flows and new technologies.

• Domestic politics creates tight constraints on international cooperation and reduces the
scope for cooperation.

• Diverse perspectives on and suspicions about global governance, which is seen as a

Western concept, add to the difficulties of effectively mastering the growing number of
challenges.
GLOBALIZATION’S IMPACT ON THE STATE
• Factors which lead to the increase and acceleration of movement of people, information,
commodities and capital:

1. Lifting of trade barriers

2. Liberalization of world capital markets
3. Swift technological progress

• Problems afflicting the world today which are increasingly transnational in nature, those
that cannot be solved at the national level or State to State negotiations:

1. Poverty
2. Environmental pollution
3. Economic crisis
4. Organized crime and terrorism

• The State has the roles in operating the intricate web of multi-lateral arrangements and
inter-governmental regimes, enter into agreements with other States, make policies
which shape national and global activities.

• This indicates political leverage of some States in shaping the international agenda while
developing countries have fewer active roles.

• Though State is required by globalization to improve its capacity to deal with greater
openness, it must remain central to the well-being of its citizens and to the proper
management of social and economic development

• The following can be guaranteed only by the States through independent courts:

▪ Respect of human rights and justice

▪ Promote the national welfare
▪ Protect the general interest

Prepared by:

___________________________
Mr. Gian Nicolo Dexter M. Atienza
Lecturer
 Republic of the Philippines
BATANGAS STATE UNIVERSITY
Alangilan Campus
Alangilan, Batangas City

COLLEGE OF ENGINEERING, ARCHITECTURE & FINE ARTS

THE CONTEMPORARY WORLD

THE WORLD OF REGIONS

THE GLOBAL DIVIDES

➢ The Global divides is “not strictly geographical”. The concept, Global North and Global
South, is used to describe a grouping of countries along socio-economic and political
characteristics.

➢ Global North refers to countries with the highest level of development and
industrialization. These nations are highly industrialized, have political and economic
stability and have high levels of human health. They are also called developed countries
(Australia, Canada, Europe, Russia, Israel, Japan, New Zealand, Singapore, South Korea,
Taiwan and the United States.)

➢ Global South refers to countries that’s mostly low-income, often politically or culturally
marginalized and having interconnected histories of colonialism, neo-imperialism, and
different economic and social change through which large inequalities in living standards,
life expectancy, and access to resources emerge. They are also called developing
countries (Africa, Latin America and the Caribbean, Pacific Islands, and the developing
countries in Asia, including the Middle East).

➢ The global South is not a directional designation or a point due south from a fixed north
but a symbolic designation meant to capture the semblance of interconnection that
emerged when former colonial entities engaged in political schemes of decolonization and
moved toward the realization of a post-colonial international order.
The Primary Concepts of Global South

1. It refers to economically disadvantaged countries and as a post-cold war alternative to

“Third World”.

2. It captures a deterritorialized geography of capitalism’s externalities and means to

account for subjugated peoples within the borders of wealthier countries, (there are
economic Souths in the geographic North and Norths in the geographic South).

3. It refers to the resistant imagery of a transnational political subject that results from a
shared experience of subjugation under contemporary global capitalism.
New Internationalism in the Global South
➢ Internationalism
 System of heightened interaction between various sovereign states, particularly the
desire for greater cooperation and unity among states and people.
 Principle of cooperation among states, for the promotion of their common good.
➢ Types of Internationalism
 Liberal Internationalism: cooperation among the state is inevitable for achieving
common goals in the world.
 Revolutionary Internationalism: conflicts within the societies are determined by
international factors.
 Hegemonic Internationalism: world is being integrated based on unequal term with
the dominance of one state over the other.
➢ The ill of the global south is being globalized. Underdeveloped states of the global south
are ravaged by merciless IMF policies in the 1980’s. The economic prescriptions of the
IMF as cures are recommended for countries in the global south. The global south has
provided model of resistance like critiques of international financial institutions from the
experiences and writings of intellectuals and activists from the global south.
➢ A similar globalization of the south’s concern is arising from the issue about global
environment. Amidst the existential threat of climate change the most radical notions of
climate justice are being articulated in the global south. As global problems increase, it
is necessary for people in the north to support people from the south.

ASIAN REGIONALISM

Regionalism
➢ Regionalism is an expression of a common sense of identity and purpose combined with
the creation and implementation of institutions that express a particular identity and
shape collective action within a geographical region.
➢ Edward D Mansfield and Helen Milner
 Regions are “a group of countries located in the same geographically specified area”
organized to regulate and “oversee flows and policy choices.”
 Regionalization and regionalism should not be interchanged. Regionalization refers
to “regional concentration of economic flows” while regionalism is a “political
process characterized by economic policy cooperation and coordination among
countries”

Views of Globalization in the Asia Pacific and South Asia

➢ The Asia Pacific and South Asia refer to the regions of East (Northeast) Asia, South Asia,
the Pacific Islands, and South East Asia.
➢ It includes some of the world’s most economically developed states such as Japan, South
Korea, Singapore, and Taiwan, and highly impoverished countries such as Cambodia,
Laos, and Nepal. It also includes the largest and most populous states like China and
India and some of the world’s smallest states such as the Maldives and Bhutan.
➢ The Asia and South Pacific has emerged over the past decade as a new force in the world.
The economies of Japan, Korea, Indonesia, Vietnam and Pakistan have strategic
relevance in today’s global system.
➢ A foreign policy shift called “Pacific Pivot” was implemented by the United States to
commit more resources and attention to the region. This shift which is also called “Atlantic
Century” was termed “Pacific Century” by US Secretary of States Hilary Clinton. She
stated that the Asia Pacific has become a key driver of global politics. It is the home to
several key allies and important emerging powers like China, India, and Indonesia.
➢ Globalization in the Asia Pacific and South Asia is a phenomenon being pushed into the
region by world powers like US and Europe. It can be viewed as a force bringing economic
development, political progress, and social and cultural diversity.
Asia Pacific and South Asia’s Impact on Globalization
➢ Asia was the central global force in the early modern world economy. It was the site of
the most important trade routes and in some places more advanced in technology than
West such as science and medicine. The following are the Asia Pacific and South Asia’s
impact on globalization:
 Japan embarked on procuring raw materials like coal and iron at unprecedented scale
allowing them to gain a competitive edge in the global manufacturing market as well
as globalized shipping and procurement patterns which other countries modeled.
 China pursues similar pattern of development at present and is now the world’s
largest importers of basic raw materials such as iron and surpassed Japan, the US
and Europe in steel production. It also surpassed the World bank in lending to
developing countries. It had an enormous impact on the availability and consumption
of goods around the world.
 India opened-up and emphasized an export-oriented strategy. Textiles and low wage
sectors have been a key part of the economy with highly successful software
development exports. It also plays a key role in global service provisions as trends
in outsourcing.
 India and China have also become a major source of international migrant labor. This
includes the migration of highly skilled labor into the high-tech industry based in
Silicon Valley (home to many start-up and global technology companies like Apple,
Facebook and Google). India, China and the Philippines were three of the top four
recipient states of migrant remittances.
 “Open Regionalism” in Asia Pacific and South Asia aims to develop and maintain
cooperation with outside actors. This is meant to resolve the tension between the rise
of regional trade agreements and the push for global trade as embodied by World
Trade Organization (WTO), the only global international organization dealing with the
rules of trade between nations.
 In culture and globalization, the source of a wide variety of cultural phenomena that
have spread outward to the West and the rest of the world is in the region. Examples
include Hello Kitty, Anime, Pokemon, (from Japan) which become regional and global
phenomenon; the regional and global rise of Korean popular culture called ‘K-Wave”
(Korean dramas and K-pop).
➢ Asia Pacific and South Asia serves as the source of many aspects of globalization process
which can be seen in history, economy, political structure and culture.

The Region-Making in Southeast Asia and Middle-Class Formation

➢ Regionalization entails complex and dynamic interactions between and among

governmental and nongovernmental actors which resulted to hybrid East Asia. The
successive waves of regional economic development are powered by developed states
and national and transnational capitalism.
➢ This nurtured sizeable middle-classes that share a lot in common in terms of professional
lives and their lifestyles, in fashion, leisure, and entertainment, in their aspirations and
dreams.
➢ The middle-class occupies different positions in their respective societies as well as in
relation to their nation-states as they constitute the expanding regional consumer market.
➢ The product of regional economic development in the post war era are the middle classes
in east Asia. Regional economic development took place within the context of the
American informal empire in “Free Asia”:

 The first wave of regional economic development took place in japan from mid-
1950’s to the early 1970s and led to the emergence of a middle-class by the early
1970s.
 The second wave took place between the 1960s and 1980s in South Korea, Taiwan,
Hongkong and Singapore and led to the formation of middle-class societies in these
countries by the 1980s
 Third wave: Middle class formation in Southeast Asia was driven by global and
regional transnational capitalism (regional trade). New urban middle classes in
Southeast Asia have created their own new lifestyles commensurate with their
middle-class income and status.
Middle Class in The Philippines
➢ New urban middle classes emerged in the post 1986 Philippines. They were created
through growth in retail trade, manufacturing, banking, real estate development, and an
expanding range of specialist services such as accounting, advertising, computing, and
market research.
➢ Fostered by government policies of liberalization and deregulation, the development of
these new enterprises has been oriented both toward the export and domestic markets
and has entailed increasingly diverse sources of foreign investment and variable
subcontracting, franchise, and service relationships, with a noticeable expansion of ties
connecting the Philippines to other countries in East and Southeast Asia.

Regional Implications of Middle-Class Formation in East Asia

➢ Middle classes are product of regional economic development:

 It has taken place in waves under the U.S. informal empire over a half century, first
in Japan, then in South Korea, Taiwan, Hongkong, and Singapore, Thailand, Malaysia,
Indonesia and Philippines, and China.
➢ They are product as well for the development of states:
 Their lifestyles have been shaped in very complex ways by their appropriation of
things. American, Japanese, Chinese, South Korean, Islamic and other ways of life,
often mediated by the market.

➢ Southeast Asian middle classes also exemplify the diversity and complexity of class
formation.
 Thai middle classes are clear socially, hegemonic culturally, and ascend politically.
 Malaysian and Indonesian middle classes are socially divided, dependent on the state,
politically assertive and vulnerable.
 Philippine middle classes are socially coherent, less dependent on the state, culturally
ascendant, but politically indecisive.

Prepared by:

___________________________
Mr. Gian Nicolo Dexter M. Atienza
Lecturer