Professional Documents
Culture Documents
ECON
ECON
Globalization
Is increasingly omnipresent.
Conceptualizing Globalization
Why Solid?
Most likely nation – state create barriers to prevent the free movement of all
sorts of things. Example: Great Wall of China and Berlin Wall
According to Cartier (2001:269), the “forces of globalization have rendered many political
boundaries more porous to flows of people, money and things.”
Flows – movement of people, things, information, and places due, in part, to the
increasing porosity of global barriers.
Globalization
Transnationalism
Processes that interconnect individuals and social groups across specific geo-
political borders.
Trans nationality
Rise of new communities and formation of new social identities and relations that
cannot be defined as nation-states.
In the process, they are having both constructive and destructive effects (Scumpeter,
1976).
“the intensification of worldwide social relations which link distant localities in such a
way that local happenings are shaped by events occurring many miles away and
vice versa.”
Marshall McLuhan
While Starbucks opened its first branch in the Philippines back in 1997 in Makati City, it has
since then brought their “coffee experience” to other parts of the country including
Cagayan de Oro, Davao and General Santos.
Claudio writes: At first glance, the coexistence of the Starbucks and the shanty point to
the incompleteness of globalization in the global south. If one conceives of globalization
as the spreading and consumption of cultural/commercial signifiers, the shanty
represents the tenacity of the local, which is unable to participate in a cosmopolitan
culture represented by the Starbucks. The underdevelopment of the global south, it would
seem, prevents it from being globalized, revealing the inherent unevenness of the process.
March 16, 1521 – Portuguese explorer Ferdinand Magellan reaches
the island of Homonhon in the Philippines.
Nation
Nations
Interdependence
grew that enlarge their sense of community and from this grew the concept of a
nation.
A people who feel they share a common identity and belong together. The idea of nation
developed gradually as the way of identifying an “us”.
A social group that is linked through a common descent, culture, language, and
territorial contiguity”.
STATE
NATION-STATE
In modern times nation is recognized as 'the' political community that ensures the
legitimacy of the state over its territory, and transforms the state into the state of all its
citizens.
Nationality is supposed to bind the citizen to the state, a bond that will be increasingly
tied to the advantages of a social policy in as much as the Welfare State will develop.
Benedict Anderson’s seminal work, Imagined Communities: Reflections on the Origin and
Spread of Nationalism
Indicators:
Print media (i.e. novels and newspapers)
Digital media (i.e. cell phones, emails, internet, blogs).
Allow widely dispersed populations to maintain, create, and disseminate a
continuing sense of imagined community.
Largely in Europe, nations grew out of warfare. The continent experienced religious and
political wars.
As the wars raged, the idea of an empire (one ruler for all of humankind) became
unpopular and nationalism (the right of a group with a common identify and heritage to
govern itself) gained appeal.
NATIONALISM
- A doctrine or national movement that seeks to make the nation the basis of a
political structure, especially a state.
Peace of Westphalia:
Globalization
Internationalization
- The scholars study political, military and other diplomatic engagements between 2
or more countries.
- The deepening of the interactions between states, refer to the phenomenon of
internationalization.
*Not all states are nations and not all nations are states.*
Nation
- “A social group that is linked through a common descent, culture, language, and
territorial contiguity”.
State
- refers to a country and its government
Example:
1. Filipino by birth.
2. Filipino by naturalization which is the judicial act of adopting a foreigner and
clothing him with the privileges of a native-born citizen. It implies the renunciation
of a former nationality and the fact of entrance into a similar relation towards a new
body politic (2Am.Jur.561,par.188).
1. Education
2. Healthcare Services
3. Own a Sim Card
4. Work Legally
5. Open a bank account
6. Own or rent a home
7. Get married
Conflict
In the chaos of fleeing war, families can leave or lose the papers that are proof of ties to a
country that can make registering the birth of a child impossible, leaving them stateless.
Or borders can change or dissolve completely, for example, after the fall of the Soviet
Union.
In some countries, if your parents are stateless, so are you, it’s passed on generations.
Other countries prevent parents passing on their nationality if their child is born abroad.
Discrimination
Some countries discriminate against women and don’t let mothers pass on their
citizenship.
Ethnicity, language, religion, they’ve all been used as excuses to exclude entire groups
from being citizens. More than ¾ of all the people known to be stateless are minorities.
Rohingya Muslims of Myanmar, Roma communities around the world and others whose
families moved generations ago to the country where they now live but were never
acknowledged as citizens.
Nearly four decades ago, Rohingya Muslims have faced discrimination, persecution and
exile ever since.
GLOBAL ECONOMY
Globalization
- It is the expansion and intensification of social relations and consciousness across world-
time and across world-space infers that it has various forms of connectivity.
Economics
- It is the social science that studies how people choose to use limited or scarce resources in
attempting to satisfy their unlimited wants and needs."
Economic Globalization
You can buy a TV from China, car from Japan, clothes from Indonesia or Italy.
You can hire someone from India to write software or answer your telephone
Communication
Ideas
Recall: Nation-States
The most important and most obvious barriers to global flows are those constructed by nation -
states.
Specific examples of barriers created by the nation-state involve blocking economic transactions
that it regards as not in the national interest.
Example:
1. 2006 the US government blocked a deal in which a Dubai company was to purchase an
American company involved in the business of running America ’s ports.
2. early 2008 the US government blocked an effort by a Chinese company to purchase (in
conjunction with an American private equity firm) an American company (3Com)
manufactured software.
Trade
- 16th century to the 18th century: countries competed with one another to sell more goods as
a means to boost their country’s income (later called monetary reserves).
- Colonies are forbade to trade with other nations.
Colonialism
Imperialism
- It draws attention to the way that one country exercises power over another, whether through
settlement, sovereignty, or indirect mechanisms of control.
- It refers to the “various methods that one country employs to gain political, economic and
military control over another country or geographic area.
To sum up, imperialism and colonialism are the ways in which nations of the past asserted
dominance and influence on each other.
Key Difference:
Imperialism
- It means the practices, the theory, and the attitudes of the dominating core in ruling the
distant territory.
Colonialism
Galleon Trade
Colonialism had left the territories with environments severely ravaged (liquidated/
extracted).
Education of most populations were neglected.
Severe ethnic and religious tensions were sowed.
Most former colonies had economies and infrastructure based on the export of a of
agricultural crops and minerals.
most had weak to no democratic institutions, many of these colonies were unprepared for
statehood or economic prosperity.
Post-Colonial Period
- It is the era of when colonial masters depart from their former colonies.
Post-Colonial Era
- many nations define their borders based on the lines drawn by their former colonial masters.
(including Philippines).
- Ritzer and Dean reminds us, POSTCOLONIALISM relates “to the various developments that
take place in a former colony after the colonizing power departs.”
- colonial systems have largely disappeared, this power relationship continues through
global financial institutions
Silk Road
- It is a network of pathways in the ancient world that spanned from China to what is now the
Middle East and to Europe.
- It is the oldest known international trade route.
- It was not truly “global” because it had no ocean routes that could reach the American
continent.
Source: Map of the Silk Road trade routes during the Han Dynasty
Author: Wikimedia Commons User “ Коро ь” and Leo Timm Source: Wikimedia
Commons and The Epoch Times
Before: Now:
- *Answer*
Sulu
- the island group in the south west of the Mindanao and northeast of Borneo.
- First sultanate and supra-barangay state in the Philippine archipelago.
The economy was traditionally commercially oriented.
It participated in expansive maritime network of trade in southeast asia.
(more than a hundred years before Spaniards came)
By the middle of the 16th century, the Sulu Sultanate was already considered a de facto and de
jure nation state, having entered treaties with Spain in 1578, Britain in 1761, the French in 1843
and the American in 1842, 1899, and 1915.
After WWII, US and Great Britain, began planning for a more open international economy.
A great fear was:
The recurrence of the Depression after the end of WWII, especially because of the difficulties
those societies would have in absorbing the massive manpower created by the
demobilization of the military when the war ended.
The resurrection of barriers to trade and the free flow of money that had become
commonplace prior to WWII.
Three-week meeting in July 1944 at the Mount Washington Hotel in Bretton woods, New
Hampshire.
Focus of the planners was on reducing trade barriers and on creating conditions necessary
for the free flow of money and investment,
The creation of condition needed for financial stability around the globe.
5 Key Elements
1. Each participating state would establish a “par value” for its currency expressed in terms of
gold or (equivalently) in terms of the gold value of the IS dollar as of July 1944 (Boughton,
2007:106)
2. 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-per cent margin (Boughton, 2007:106-7).
3. The International Monetary Fund (IMF) was created (Babb 2007 : 128 – 64) to establish,
stabilize, and oversee exchange rates.
4. The member states agreed to eliminate, at least eventually, “all restrictions on the use of its
currency for international trade” (Boughton 2007 : 107).
5. The entire system was based on the US dollar (at the end of WW II the US had about three-
fourths of the world’s gold supply and accounted for over one-fifth of world exports).
2 Financial Institution
1. International Bank for Reconstruction and Development (IBRD) or World Bank
- Responsible for funding post-war reconstruction projects.
2. International Monetary Fund (IMF)
- Global lender of last resort to prevent individual countries from spiralling into credit crises.
High Point of Keynesian
- Disproportionately controlled by rich core countries, make loans to countries in the periphery
and semi-periphery.
- For example, the IMF has made loans to countries in the periphery where 90% of the loan
must be spent on infrastructure projects carried out by US corporations, thus ensuring
financial rewards flow back to wealthy countries.
Although 130 former colonies gained their independence over the course of the twentieth
century, exploitation continues today through neo-colonialism (new is Greek for “new”).
Neocolonialism
A new form of global power relationships involves not direct political control but economic
exploitation by multinational corporations.
A multinational corporation is a large business that operates in many countries.
Corporate leaders often impose their will on countries in which they do business to create
favorable economic conditions for the operation of their corporations, just as colonizers did
in the past.
And like many former colonies, the Philippines is a prime example of a nation struggling
economically as a result of hundreds of years colonial exploitation by the Spaniards and the
Americans.
Debt
With more than 1 billion dollars in debt to China, Sri Lanka handed over a port to companies
owned by the Chinese (2017) in a form of lease for 99 years.
The Hambantota port on Sri Lanka’s southern coast. China has been shoring up its presence
in the Indian Ocean.
Can the Trump administration stop China from taking over a key African port?
A Djibouti policeman stands guard during the opening ceremony of Dubai-based port
operator DP World’s Doraleh container terminal in Djibouti port on Feb. 7, 2009. (Ahmed
Jodallah/Reuters)
Colonization established a legacy that forms the basis of the global economy by positioning
some countries as sources of resources, cheap labor, and markets. It left a political legacy
of weak governments run by oligarchies, monarchies, or dictators eager for the rewards that
resource wealth and strategic alliances can bring.
An excellent way of understanding how colonialism shaped global political and economic
hierarchy of societies of today is through Immanuel Wallerstein’s model of the capitalist
world economy, which suggests that the prosperity of some nations and the poverty and
dependency of other countries is intentional as a result of the global economic system.
Wealthy nations are designated by Wallerstein as the core of the world economy.
Core countries (e.g., U.S., Japan, Germany) are dominant capitalist countries characterized
by high levels of industrialization and urbanization.
Peripheral countries (e.g., most African countries and low income countries in South
America) are dependent on core countries for capital, and have very little industrialization
and urbanization.
- usually agrarian and have low literacy rates and lack Internet connection in many
areas.
Semiperipheral countries (e.g., South Korea, Taiwan, Mexico, Brazil, India, Nigeria, South
Africa) are less developed than core nations but are more developed than peripheral
nations.
Globalization made it possible for countries and people from all over the world to be more
connected and interdependent economically, politically, and socially.
Globalization affects internal changes in states through external and internal pressures.
External pressures on states compel conformity to global standards/ Globalization
pressures confront states with a variety of potential costs if they refuse to comply
and promise benefits if they do.
States conform global standards to gain admission to regional and interest-based
alliances, such as the ASEAN and APEC, to receive loans, attract investments, gain
trading partners, or simply maintain a good reputation and legitimacy in the eyes of
their domestic audience, their allies and the world generally.
Bestowing legitimacy on a state government is an important function of
globalization.
Internal pressures for change come from citizens and other state actors such as
institutions and NGOs.
GLOBAL DIVIDE
Classifying Countries
In the 1980s, the Brandt Line was developed as a way of showing how the world was
geographically split into relatively richer and poorer nations. According to this model:
Richer countries are almost all located in the Northern Hemisphere, with the exception of
Australia and New Zealand.
Poorer countries are mostly located in tropical regions and in the Southern Hemisphere.
However, over time it was realized that this view was too simplistic. Countries such as Argentina,
Malaysia and Botswana all have above global average GDP (PPP) per capital, yet still appear in
the “Global South”. Conversely, countries such as Ukraine appear to be now amongst a poorer set
of countries by the same measure.
Global Divides - “first world” and “third world” and today is more commonly called “north-
south divide”
Global North generally accepted as the economically developed and wealth countries, most of
whom are former colonizers.
Global South refers broadly to the regions of Latin America, Asia, Africa, and Oceania.
“Third World” and “Periphery,” that denote regions outside Europe and North America, mostly
(though not all) low-income and often politically or culturally marginalize.
- combines indicators of income, wealth and well-being the between nations in income,
wealth, and well-being reveals that the richest one fifth of the world’s population consume
86% of all the world’s goods and services, while the poorest one fifth consume just 1.3%.
- The MPI looks beyond income to understand how people experience poverty in multiple and
simultaneous ways.
- It identifies how people are being left behind across three key dimensions: health, education
and standard of living, comprising 10 indicators.
- People who experience deprivation in at least one third of these weighted indicators fall into
the category of multidimensionally poor.
Countries with majority of its population have experienced little to no income growth since
the 1980s and 1990s make up, what Peter Collier (2007).
Broadband (or high-speed) internet access is not a luxury, but a basic necessity for economic
and human development in both developed and developing countries.
Only about 35 percent of the population in developing countries has access to the Internet (versus
about 80 percent in advanced economies). Source: World Bank
1. Conflict trap
2. Natural resources trap
3. Trap of being landlocated with bad neighbors
4. Bad governance trap
Conflict Trap
Mindanao Sociologist, Mayong Aguja perfectly summarizes the cost of the war: “a lost
generation”. Mindanaons who could have been teachers, doctors or entrepreneurs have lost
their chances as their homes, schools and cities became battle grounds between the
government forces and the armed groups.
The roots of the conflict have been the clash of interests in land and other natural
resources.
Land conflict in Mindanao and its systematic tolerance transformed the landscape of the
island--- millions were displaced, natural resources were exploited by corporations,
and land claims infringed along with other claims.
A bad government with bad policies can not only inhibit an economy from growing, but it
can literally destroy the economy.
ASIAN REGIONALISM
What is Regionalism?
- In a broad terms, it may refer to as the structures, processes and arrangements that are
working towards greater coherence within a specific international region in terms of
economic, political, security, socio-cultural and other kinds of linkages.
- It arises either as a result of:
1. micro-level processes that stem from regional concentration of interconnecting
private or civil sector activities, and this may be specifically referred to as
regionalisation; or
2. Public policy initiatives, such as a free trade agreement or other stateled projects of
economic co-operation and integration that originate from inter-governmental
dialogues and treaties, which may be specifically referred to as regionalism.
Regionalism
Note:
Economic and Political definition of regions vary according to Edward D. Mansfield and Helen V.
Milner.
But, these are the Basic Features that everyone can agree:
Regionalization
Regionalism
Some are large enough and have a lot of resources to dictate how they participate in
process of global integration. Example: China
Other countries make up for their small size by taking advantage of their strategic location.
For other countries, forming Regional alliance (there is strength in numbers). Example:
Singapore
Regional Associations
There may be several reasons for this formation but one if for
1. Military Defense
The widely known defense grouping is NATO (North Atlantic Treaty Organization).
- It is formed during the cold war when several Western European countries plus the United
States agreed to protect Europe against the threat of the Soviet Union.
- In response of the Soviet Union also creates its regional alliance – Warsaw Pact –
consisting of the Eastern European countries under Soviet domination.
2. To pool respective resources, get better returns for their exports, expand leverage
against trading partners. Example: OPEC (Organization of the Petroleum Exporting
Countries)
- It is established in 1960.
- Members: Iran, Iraq, Kuwait, Saudi Arabia and Venezuela to regulate the production and
sale of oil.
- 1970’s member countries took over domestic production and dictated crude oil prices in the
world market.
- An additional nine other oil producing countries join the organization.
Reasons:
MINDANAO
BIMP-EAGA (Brunei Darussalam Indonesia Malaysia Philippines - East ASEAN Growth Area)
- Its goal is narrow the development gaps among its member states, the BIMPEAGA
economic cooperation focuses on four strategic pillars: (1) Enhanced Connectivity, (2)
Food Basket Strategy, (3) Tourism Development and (4) Environment.
One of the results of this agreement is the BIMP-EAGA Land Transport Memorandum of
agreements which exempted BIMP-EAGA Member Countries from customs duties,
customs security, taxes and other charges in the movement of products and passengers
through cross border bus and truck operations.
In 2020, Davao City hosted the 11th BIMP-EAGA Friendship Games.
From different corners of the world, people are trading ideas and everybody is benefiting
from it. This module guides the students in understanding:
“ideas are like goods and services, ideas also flow across borders all over the world. Then,
globalization is in progress.”
high - tech global flows and structures - are technology, the media, and the Internet.
Global Media System - A medium to distribute ideas, information, values and beliefs,
global media prevalently facilitates the distribution of cultural symbols that shape human
relationships in the globalized world.
● Media can impact societal norms, beliefs and values, technology, and the culture in
general.
● Media is a very powerful tool which can shape and influence human behavior.
Culture - “Culture… is that complex whole which includes knowledge, beliefs, arts, morals,
law, customs, and any other capabilities and habits acquired by [a human] as a member of
society.” (Tylor, 1871)
Constant advancement of media today, the future of our culture is ambivalent because
different generations are exposed to different ideas and information. Hence, could greatly
affect the way of life.
Mass media - As the name suggests, is a form of media which reach broader sphere
simultaneously.
Forms of Media
● Print Media - The oldest media are those printed in word or picture, which conveys
information through the sense of sight.
● Broadcast Media - Broadcast media is the most convenient and practical means to
spread information to reach the broader audience immediately.
● New Age Media - Various forms of electronic communication that is made feasible
using computer technology.
Cultural Difference
Pieterse (2009) asserted that there are only three perspectives on cultural difference:
1. cultural differentialism
2. cultural convergence
3. cultural hybridity
Cultural Differentialism
Cultural Convergence
The mixing of cultures as a result of globalization due to interaction of global and local, a
unique and new hybrid cultures that is completely different from global or local culture.
Internet, Social media, news, online platforms are institutions in such ideally bringing us
together to free us from the limitations of our media physical realities but instead its
pulling us a part.
Media:
-Source of entertainment
- Source of information
Risk, threat, challenges or can even harm and may cost not only property loss but including
life.
Cyber crimes