Unit I: Introduction to

Globalization

LESSON 2: THEORIES OF
GLOBALIZATION
 Theories of Globalization

World System
Theory

World Polity World Culture

Theory Theory

Neoliberalism
 A. World System Theory

⚫greatly associated with Immanuel

Wallerstein .
⚫is a perspective that globalization is
essentially the expansion of the
capitalist system around the globe.
⚫characterized by three interdependent
regions: core, semi-periphery and
periphery.
 A. World System Theory

⚫Core: refers to advanced or highly developed countries/

incorporate higher levels of education, higher salaries and
more technology/ generate more wealth in the world
economy. Examples: Western Europe, USA, Japan.
⚫Semi-periphery: acts as defense zone between core and
periphery, and has a mix of the kinds of activities and
institutions that exist on them/ may be exploited by the
core but in turn exploit the periphery. Examples: China,
Ireland, Mexico.
⚫Periphery: refers to less developed (Third World)
countries, incorporate lower levels of education, lower
salaries and less technology/ generate less wealth in the
world economy. Examples: Philippines, Vietnam, Africa
A. World System Theory
 Core vs. Periphery

PRODUCER CONSUMER

CORE manufactured resources

goods

PERIPHERY resources manufactured

goods
 A. World System Theory

⚫The core countries dominate the economy,

exploit the poor peripheral countries, and
depend on them in terms of cheap labor and
raw materials.
⚫The core countries are considered capital
intensive while peripheral countries are labor
intensive.
⚫Semi-peripheral region on the other hand acts
as a buffer zone between the two regions.
Generalization: World-System Theory

•We need to study the entire global

economy as a world system.
•We can’t understand the fate of a single country,
without understanding how it fits into the overall
system
•Countries are rich or poor because of their
position relative to others in the global
capitalist system.
 B. World Polity Theory

•Polity = associations and activities of the

public/political sphere

•The World Polity = political structures,

associations, & culture in the international
sphere.
 B. World Polity Theory

Question: Why do people vote?

 Why do people vote?

⚫interest-based action
⚫action governed by culture
and social norms
⯍ World Polity Theory: People
vote because they are
“supposed to”…
 B. World Polity Theory

⚫In this perspective, state remains an

important component of world society.

⚫ Societies were becoming more similar

in terms of government and policies.

⚫World polity theory emphasizes culture

not economy and focuses on how culture
affects us by providing norms.
 B. World Polity Theory

⚫Viewing the world society as "world polity",

which provides a set of cultural norms or
directions in which the actors of the world
society follow in dealing with problems and
general procedures.
•Associations, IGOs, NGOs, and other
states make up a “world society” or
“world polity”
 B. World Polity Theory

⚫Thus, world
polity theory
puts more of an
emphasis on
homogenization
than the other.
 B. World Polity Theory

⚫This is also considered as a response

to modernization theory.
⯍ The expectation that countries will march
through the same stages of development.
 B. World Polity Theory

•Key observation: While countries differ a

lot in their level of development, many
aspects of their governments look quite
similar…
•World Polity Theory argues that this
conformity reflects the existence of a
common global culture…
 C. World Culture Theory

⚫ Globalization refers to
"the compression of the
world and the
intensification of
consciousness of the
world as a whole" (R.
Robertson,
Globalization, 1992: 8).

⚫ In thought and action,

it makes the world a
single place.
⚫What it means to live in this
place, and how it must be
ordered, are universal
questions.

⚫World Culture Theory is

the formation of a “world
consciousness” that gives
meaning to living in the
world as a single place.
 C. World Culture Theory

⚫This does not mean

homogenization but
“organization of
diversity”
 C. World Culture Theory: How it works?

⚫Globalization is a process of relativization.

⚫Relativization. This means that each unit

emerging in the world order takes shape
depending on its surroundings.
Beauty: Relative
C. World Culture Theory: How it works?

⚫Emulation. Process of incorporation.

⚫Glocalization. Localizing ideas and

systems. It is a way of combining
heterogenization and homogenization
among cultures and countries.
Glocalization: The Case of Mc Donalds
D. Neoliberalism
 D. Neoliberalism

⚫a theory of political economic practices that

proposes that human well-being can best be
advanced by liberating individual
entrepreneurial freedoms and skills
characterized by strong private property
rights, free markets, and free trade.
⚫“revival of liberalism”. From the word “neo”
which means new or revived.
D. Neoliberalism: Free Market

with little or no
government
control

free to be an price is
investor or Free Market determined by
entrepreneur competition
p

free to own,
buy and sell
properties
Neoliberalism: Free Trade
 D. Neoliberalism: Other Characteristics

⚫open market
⚫limit subsidy
subsidy is the financial support given
by the government to the local producers.
⚫privatization (the transfer of state owned
properties or businesses to the private
sector).
⚫ 1992 1995
Thank you for listening! ☺