STRUCTURES OF

GLOBALIZATION.
 Globalization of World Economics

What is economic globalization?

❖According to Szentes (2003:69), economic
globalization is the 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 (as cited by Coronacion, et.al, 2018:32).
❖ Nowadays, states are no longer the sole player in
international trade and world economy.
The following are the interconnected dimensions of
economic globalization according to Benczes (2014)
(as cited by Saluba, et. al (2018:24) :
1. Globalization of goods and services
2. Globalization of financial and capital markets
3. Globalization of technology and communication
4. Globalization of production
International Trading Systems
➢The origin of global trade can be traced since the
early days of the Chinese Silk Road to the creation of
the General Agreement on Tariffs and Trade
(GATT).
➢ Eventually, GATT was succeeded by the World
Trade Organization (WTO) in 1995.
➢ The creation of the WTO was considered as the
biggest change in international trading system since
the end of the World War II.
➢The WTO covers trade agreements for goods,
services as well as intellectual property. It also has
procedures for settlement of trade disputes. (World
Trade Organization)
The Bretton Woods System
➢ In July 1944, the Bretton Woods Conference was
conducted and started the new international
economic framework.
➢ It was participated by delegates from 44 countries at
Bretton Woods, Hampshire, United States and
created the two international economic
organizations, namely, International Monetary Fund
(IMF) and World Bank
➢ The main purpose of this institutions is to address
the Great Depression caused by the Second World
War. (Coronacion, et.al, 2018) In addition to these
two institutions, the World Trade Organization is
also result of this new framework.
International Monetary Fund (IMF)
➢ The IMF’s fundamental mission is to ensure the
stability of the international monetary system. It
does so in three ways: keeping track of the global
economy and the economies of member countries;
lending to countries with balance of payments
difficulties; and giving practical help to members.
World Bank
➢ The World Bank is also known as the International
Bank for Reconstruction and the Development. Its
primary purpose is to provide long-term loans for the
economic development of developing countries and
reconstruction of those affected countries caused by
the war. (Coronacion, et.al, 2018)
World Trade Organization
➢ The World Trade Organization (WTO) is the
only global international organization dealing with
the rules of trade between nations. At its heart are
the WTO agreements, negotiated and signed by the
bulk of the world’s trading nations and ratified in
their parliaments. The goal is to ensure that trade
flows as smoothly, predictably and freely as possible.
The Global Interstate System
➢ The study of the contemporary world is not just
about the globalization of economy but also of
governance.
➢ With the emergence of the study of international
relations, interactions among various actors in
international stage have become relevant in the
academic realm.
➢ The expanding of these interactions paved the way
to the phenomenon known as internationalization.
➢ What is internationalization?
Internationalization – internationalization is the process
increasing involvement in international operations,
both sides of inward and outward should be involved
in a broader concept of internationalization. (Welch &
Luostarinen, 1988 as cited by Dawei, 2008:9)
➢ What is internationalism?
Internationalism – it is the system of heightened
interaction between states with the desire for greater
cooperation and unity.
➢ What is interstate system?
Interstate system – interaction of modern states with
one another on the global system. This led the shifting
from international politics to “global politics.”
International Politics to “Global Politics”
The occurrence of problems and issues such as climate
change, terrorism, and pandemic has become global in
nature and eventually affect all the states. This has led
the states and other non-state actors to cooperate and
addressing these concerns.
Global Governance and International
Organizations
➢ What is Global Governance?
Global governance is the sum of laws, norms, policies,
and institutions that define, constitute and mediate
trans-border relations between states, cultures, citizens,
intergovernmental and non-governmental organizations
and the market-the wielders and the object of the
exercise of international public order. (Weiss and
Thakur, 2010 as cited by Saluba, et. al, 2018:75)
➢What are international organizations?
International organizations are institutions with formal
procedure and a membership comprising three or
more states. They are characterized by rules that seek
to regulate the relations amongst member states and by
a formal structure that implements and enforces these
rules. (Heywood, 2011 as cited by Saluba, et. al,
2018:76)
Examples of International Organizations/ Institutions
➢ United Nations
➢ World Trade Organization
➢ International Monetary Fund
➢ World Bank
➢ European Union (EU)
➢ ASEAN (Association of Southeast Asian Nations)
The United Nations and Contemporary Global
Governance

The United Nations (UN) is the primary international

organization responsible to maintain international
peace, cooperation and security (Coronacion, 2018).
As of now, it has 193 Member States which are all
members of the General Assembly.
Its purposes are enumerated in the Charter of the
United Nations Chapter I Article I which are as
follows:
1. To maintain international peace and security, and
to that end: to take effective collective measures for
the prevention and removal of threats to the peace,
and for the suppression of acts of aggression or
other breaches of the peace, and to bring about by
peaceful means, and in conformity with the
principles of justice and international law,
adjustment or settlement of international disputes or
situations which might lead to a breach of the peace;
2. To develop friendly relations among nations based
on respect for the principle of equal rights and self-
determination of peoples, and to take other
appropriate measures to strengthen universal peace;
3. To achieve international cooperation in solving
international problems of an economic, social, cultural,
or humanitarian character, and in promoting and
encouraging respect for human rights and for
fundamental freedoms for all without distinction as to
race, sex, language, or religion; ands
4. To be a center for harmonizing the actions of
nations in the attainment of these common ends.
The United Nations is composed of principal organs.
These are:
1. General Assembly - is the main deliberative,
policymaking and representative organ of the UN.
2. Security Council - has primary responsibility, under
the UN Charter, for the maintenance of international
peace and security
3. Economic and Social Council - is the 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.
4. Secretariat - comprises the Secretary-General and
tens of thousands of international UN staff members
who carry out the day-to-day work of the UN as
mandated by the General Assembly and the
Organization's other principal organs.
5. International Court of Justice - is the principal
judicial organ of the United Nations. Its seat is at the
Peace Palace in The Hague (Netherlands). It is the
only one of the six principal organs of the United
Nations not located in New York (United States of
America).
6. Trusteeship Council- was established in 1945 by the
UN Charter, under Chapter XIII, to provide
international supervision for 11 Trust Territories that
had been placed under the administration of seven
Member States, and ensure that adequate steps were
taken to prepare the Territories for self-government
and independence. By 1994, all Trust
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