CONTEMPORARY WORLD

UNIT 1: The Structures of Globalization

Introduction
In this unit, you will learn about the different structures globalization that includes
global economy, market integration, global interstate system and contemporary
global governance. The focus of this unit will be related to economics and politics.

What do you understand about no man is an island? Would this hold to different
countries as well? Globalization is everywhere. People may not be aware that
everyday they experience globalization. The food they eat, the gadgets they use,
the clothes they wear, the books they read, the movies they watch and the way
they talk and act, these are being influenced by globalization. How does
globalization change the perspective of the people?

Before, people can live as long as they satisfy their needs. Simple living is a virtue
to them. Today, the lives of the people become complex. Having a simple living
is already a threat to people because of many existing demands that need to be
satisfied. Considering their demands, these will push them to be competitive in
order for them to survive. People don’t just look into the products that were
produced by their country but also they are very particular with the label of the
products that they are buying, as most of us coined the term “state sides” which
means it is made from other countries. See how globalization affects the
perception of the people.

This reminds us that our consumption of goods has a strong international

character which implies that people are no longer confined with patronizing their
own products but to engage in what the world can offer to them.

LEARNING OUTCOMES

At the end of this unit, you are expected to:

1. identify the various definitions and philosophies of globalization;
2. analyze the various structures of globalization;
3. describe the emergence of global economic and political system and
4. share insights about how do globalization affects your everyday life.

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LEARNING OBJECTIVES:

At the end of the lesson, you are expected to:

 define globalization;
 identify underlying philosophies of the varying definitions of
globalization;
 participate in news reports critiquing globalization

PRESENTATION OF CONTENT
GLOBALIZATION FROM DIFFERENT PERSPECTIVES

Nowadays people view globalization as primarily an economic process that

affects the integration of national products to the world markets. Others may refer
this to the continuing integration of technological processes to many countries
and the uprising of business from the developed, developing and under develop
countries. Definitions of globalization by academics is differ from the journalist and
to the political activist considering they view globalization in a broader term.

In general term, globalization refers to the development of global or worldwide

business activities, competition and markets and the increasing global
interdependence of national economies. Other scholars believe that
globalization is the process by which the world, previously isolated through
physical and technological distance, becomes increasingly interconnected.

It is manifested by the increase in interaction between peoples around the world

that involves the sharing of ideas, cultures, goods, services and investment.

Among the underlying definitions of globalization, the best descriptions are

provided by Manfred Steger who described globalization as “the expansion and
intensification of social relations and consciousness across world-time and across
world-space”. Based on the definition it’s been refers that expansion is both the
creation of new social networks and the multiplication of existing connections
that cut across traditional political, economic, cultural, and geographic

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boundaries” while intensification refers to the expansion, stretching and

acceleration of these networks.

PHILOSOPHIES OF THE VARYING DEFINITIONS OF GLOBALIZATION

Read the following Philosophies to the varying definitions of globalization by

Manfred B. Steger and after which answer the following questions:

1. Globalization is about the Liberalization and Global Integration of

Markets.
This is anchored in the neo-liberal ideal of the self-regulating market as the
normative basis for a future global order. According to this, the vital functions of
the free market- its rationality and efficiency, as well as its alleged ability to bring
about greater social integration and material progress -can only be realized in a
democratic society that values and protects individual freedom. (Steger, 2005)

2. Globalization is Inevitable and Irreversible.

 According to the market-globalist, globalization reflects the spread of
irreversible market forces driven by technological innovations that make
the global integration of national economies inevitable. (Steger, 2005)

3. Nobody is in Charge of Globalism.

 Globalization hinges on the classical liberal concept of the “selfregulating
market. According to Rebert Hormats (1998) vice chairman of Goldman
Sachs International, emphasized that” The great beauty of globalization is
that no one is in control. The great beauty of globalization is not controlled
by any individual, any government, any institution (Steger, 2005). However,
this idea that nobody is in charge serves the neo-liberal political agenda of
defending and expanding global capitalism.

4. Globalization benefits everyone in the long run.

This lies at the heart of market globalism which is unpacked on in material terms
such as economic growth and prosperity. In terms f the globalism concept, it taps
not only liberalism progressive worldview, but also draws on the powerful socialist
vision of establishing economic paradise on earth (Steger, 2005). 5. Globalization
Furthers the Spread of Democracy in the World - This links ‘globalization’ and
‘markets” to the concept of democracy which plays a significant role in liberalism,
conservatism, and socialism. Globalist tend to treat freedom, free markets, free
trade and democracy as synonymous terms. According to Francis Fukuyama
(2000) ‘there exist a clear correlation between country’s level of economic
development and successful democracy”. Though it is true that globalization and
capital development do not automatically create democracies Fukuyaman
believe that the “level of economic development resulting from globalization is
conducive to the creation of complex civil societies with a powerful middle class
which facilitates democracy”. (Steger, 2005:32)

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LEARNING OBJECTIVES:
At the end of the lesson, you are expected to:
 define economic globalization;
 define the modern world system;
 identify the three level hierarchy of the modern capitalist world economy and
 articulate a stance on global economic integration.

PRESENTATION OF CONTENT
DEFINITION OF ECONOMIC GLOBALIZATION

The International Monetary Fund (IMF) regards “economic globalization” as a

historical process representing the result of human innovation and technological
progress. It is characterized by increasing integration of economies around the
world through the movement of goods, services, and capital across borders.
The global economic system, beginning in 1896, had reached its peak in 1914.
There are various changes and improvements that characterize economic
globalization past and present. Structure of transportation, communication, and
capital are comparable then and now.

With the emergence of transnational companies these brought changes to our

country’s economy. For example Sony, Time Warner, Comcast, Vivendi SA,
Televisa, and Grupo Globo. Their collective vision is the media that transcends
physical barriers including national borders to reach as many people as possible.
Such companies can provide work and enrich our economy. TNMC (transnational
media corporation) production creates media commodities, ideologies, and
profit, as it also produces and reproduces the capital relation itself. (Therborn,
2008, p.137) the underlying motivation for capitalist cultural hegemony.

Transnationalizing production to local sites does not disturb the TNMC

“organizational hierarchy or the forms of specialization which stratify the working
class and create a social layer of administrators and overseers who rule in the
name of capital over the day to day operations in the workplace” (Harvey, 1999,

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p.31) no matter what nationality, ethnicity, or gender supplies the workforce or

management. The global restructuring of media production has created giant,
regional enterprises “with complex links between film, video, television,
telecommunications, animation, publishing, advertising, and game design”
(Davis & Yeh, 2008, p.65) all based on acquiring multinational talent and the
cheapest creative labor possible. TNMC production forces national governments,
small media firms, and local workers to compete among themselves over wages,
benefits, and working conditions. In China for example, Mattel requires workers to
be on the job 10-16 hours a day, seven days a week (Asian Monitor Resource
Center, in Miller, et al., 2005, p.122).

Beyond the bright side of so-called mental and immaterial labor, one discovers its
seamier counterpart - the production of the actual material infrastructure for new
media. In this space, rather than illustrating how indigenized media and
information technologies contribute to cultural diversity and human freedom, the
TNMC environments that localize flexible production appear as nothing less than
crasser exploitation maximizing corporate control over labor. The production of
media and their content are not “merely a simple reflection of the controlling
interests of those who own or even control the broad range of capital plant and
equipment which make up the means by which cultural goods are made and
distributed. Within the media are men and women working within a range of
codes and professional ideologies, and with an array of aspirations, both personal
and social. The ambitions can be idealized; much cultural productionis routine,
mundane, and highly predictable” (Golding & Murdoch, 1991, p.25-26). The
autonomy and creative contribution of these workers is curtailed within
transnational production structures that prescribe who does what and who makes
decisions on what will be done.

The TNMCs are constantly on the lookout for creative initiatives that can be
herded into their own cultural hegemony, while willing academics and
entrepreneurs eagerly line up for the chance to join the ranks of profiteers. The
transnational production regime, Internet and all, keeps the average consumer
blogger on the margins.
For countries and firms that depend on outsourcing for income, their chief asset is
low paid skilled labor, their chief benefit is access to the techniques and norms of
TNMC production. Ultimately, the cultural hegemony of transnational media is the
economic and political reward obtained from rapacious free market policies that
encourage individual entrepreneuralism and undermine social solidarity among
workers on all levels by temporarily but repeatedly subcontracting abroad will
smaller independent studios and employing workers in different countries.

In terms of transportation, in the past railroads and steamships are the significant
inventions but today airplanes have been transporting humans around the world.
In terms of communication, the internet today made the world open to everyone.

In the recent decades, as a result of increased in exports, economic globalization

has ushered in an unprecedented spike in global growth rates.

According to the IMF, the global per capita GDP rose over five-fold in the second
half of the 20th century. It was this growth that created the large Asian economies
like Japan, China, Korea, Hong Kong, and Singapore. And yet, economic
globalization remains an uneven process, with some countries, corporations, and
individuals benefiting a lot more than others.

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THE MODERN WORLD SYSTEM

One of the famous works that captures the socio-historical and economic nexus
of pre-capitalist economies and the present world was that of Immanuel
Wallerstein’s research on the modern world system.

His analysis focused on the broad economic entity with a division of labor that is
not circumscribed by political or cultural boundaries. His idea of the world system
is larger than workers, classes, or even states. Through the global economic
activity, countries around the world have been divided according to their
economic power in the global arena.

It should be noted that the world-systems have existed before and not a unique
feature of the contemporary world. What is significant is the transformation of this
world-system. In the past, the system that binds the world together is based on
political and military domination. This was the world empire.

The modern world-system is also known as the modern capitalist worldeconomy.

It is a system which relies on economic domination. It encompasses many states
and a built-in process of economic stabilization. This means that it is economic
forces (and the economy of the world) that pull people, states, and societies
toward the arena of worldwide economic transactions.

THE THREE LEVEL HIERARCHY OF THE MODERN CAPITALIST WORLD-ECONOMY

Not all countries or areas are equal in the modern world-system according to
Wallerstein. A three-level hierarchy is a remarkable feature of the modern
capitalist world-economy.

Based on the Wallerstein’s World System Theory Model, the world is now divided
into three categories and thereby creating the worldwide division of labor. These
are:

a. Core – These are areas that dominate the capitalist world-economy and
exploit the rest of the system (e.g., US, Japan and Germany). This means that the
core regions benefited the most from the capitalist world economy.

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b. Periphery – These are areas that provide raw materials to the core and are
heavily exploited (e.g., many countries in African region, Eastern Europe
(especially Poland) and Latin America). These areas lacked strong central
governments or were controlled by other states, exported raw materials to the
core, and relied on coercive labor practices. The core expropriated much of the
capital surplus generated by the periphery through unequal trade relations.
c. Semi-periphery – It is a residual category that encompasses a set of regions
somewhere between exploiting and the exploited (e.g., India, China, Indonesia,
Mexico, Iran and Brazil). They often also served as buffers between the core and
the peripheries.

The international division of exploitation is defined not by state borders but by the
economic division of the world. There are three things necessary for the rise of the
capitalist world-economy. These are geographical expansion, worldwide division
of labor and core state’s development.

Why are countries being pulled toward this system? Can the countries or areas of
the world “resist” being part of it? Ritzer (2010-310) explained:

“The pressure for incorporation into the world-economy comes not from the
nations being incorporated but rather from the need of the worldeconomy to
expand its boundaries, a need which was itself the outcome of pressures internal
to the world economy” (Wallerstein 1989:129).

In maintaining a good balance between maintaining state powers and being

part of the modern world-system, the states must be strong enough to protect
their own economies from external threats. However, this strength of theirs which
comes from, perhaps, their external sovereignty should not be too much for them
to be able to stand on their own and refuse to act in accord with the demands
of the capitalist worldeconomy. It is a matter of striking a balance between the
state’s power and the pressures of the global economy.

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LEARNING OBJECTIVES:
At the end of the lesson, you are expected to:
 define market integration;
 identify the features of the Bretton Woods System;
 determine the role of the international institutions in the creation of
global economy; and
 give importance of integrated market and;
 share insights about the award winning documentary film The
Corporation.

PRESENTATION OF CONTENT
DEFINITION OF MARKET INTEGRATION

Market integration is a term that is used to identify a phenomenon in which

markets of goods and services that are somehow related to one another being
to experience similar patterns of increase or decrease in terms of the prices of
those products. The term can also refer to a situation in which the prices of related
goods and services sold in a defined geographical location also begin to move
in some sort of similar pattern to one another.

Market integration allows price signals to be transmitted from one market to

another. It is the fusing of many markets into one. In one market a commodity has
a single price such as the price of banana would be the same in East Germany
and West Germany if these areas were part of the same market.

If the price of banana in West Germany was higher, sellers of banana would move
from the east to the west and prices would equalize. The price of banana in
Germany and in Portugal might be different, though, and high transport costs and
other kinds of expenses might mean that it would be uneconomical for
Portuguese sellers to move their stocks to France if prices were higher there. In
distinct markets the price of the same good can be different for long periods of
time.

THE BRETTON WOODS SYSTEM

After World War II, the Bretton Woods system was established. In fact, the
agreement to create a new international monetary system was negotiated
among the allied powers even before the end of WW2, leading to the Bretton
Woods Agreement in 1944. Bretton Woods is the name of a small tourist spot in the
mountains of New Hampshire, USA. There, the delegates gathered to design a
new global economic system. Their most important goal was to prevent each
country from pursuing selfish policies, such as competitive devaluation,
protectionism and forming trade blocks, which damaged the world economy in
the 1930s.

The British delegation was headed by John M. Keynes, the famous economist,
while Harry D. White of the US Treasury Department represented the American
side. As a dominant military and economic power, the US took the leadership

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away from Britain. Because the United States at the time accounted for over half
of the world's manufacturing capacity and held most of the world's gold, the
leaders decided to tie world currencies to the dollar, which, in turn, they agreed
should be convertible into gold at $35 per ounce.

Under the Bretton Woods system, central banks of countries other than the United
States were given the task of maintaining fixed exchange rates between their
currencies and the dollar. They did this by intervening in foreign exchange
markets. If a country's currency was too high relative to the dollar, its central bank
would sell its currency in exchange for dollars, driving down the value of its
currency. Conversely, if the value of a country's money was too low, the country
would buy its own currency, thereby driving up the price.

The Bretton Woods Agreement established the World Bank (International Bank for
Reconstruction and Development). The IMF and the World Bank were called the
Bretton Woods sister organizations. One more organization (International Trade
Organization) was also planned but not created at that time.

Instead, the General Agreement on Tariffs and Trade (GATT), a nonorganizational

entity, played the role of promoting free trade for four decades. GATT became
institutionalized as WTO in 1995. So we now have three sisters.

FEATURES OF THE BRETTON WOODS SYSTEM

The features of the Bretton Woods system are as follows:

First, it was a US dollar-based system. Officially, the Bretton Woods system was a
gold-based system which treated all countries symmetrically, and the IMF was
charged with the responsibility to manage this system.

In reality, however, it was a US-dominated system with the US dollar playing the
role of the key currency (the dollar's dominance still continues today). The
relationship between the US and other countries was highly asymmetric. The US,
as the center country, provided domestic price stability which other countries

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could "import," but did not itself engage in currency intervention (this is called
benign neglect; i.e., the US did not care about exchange rates, which was
desirable).

By contrast, all other countries had the obligation to intervene in the currency
market to fix their exchange rates against the US dollar.

Second, it was an adjustable peg system. This means that exchange rates were
normally fixed but permitted to be adjusted infrequently under certain conditions.
As a consequence, exchange rates were supposed to move in a stepwise
fashion. This was an arrangement to combine exchange rate stability and
flexibility, while avoiding mutually destructive devaluation. Member countries
were allowed to adjust "parities" (exchange rates) when "fundamental
disequilibrium" existed. However, "fundamental disequilibrium" was not clearly
defined anywhere.

In reality, exchange rate adjustments were implemented far less often than the
builders of the Bretton Woods system imagined. Germany revalued twice, the UK
devalued once, and France devalued twice. Japan and Italy did not revise their
parities.

Third, capital control was tight. This was a big difference from the Classical Gold
Standard of 1879-1914, when there was free capital mobility. Although the US and
Germany had relatively less capitalaccount regulations, other countries imposed
severe exchange controls.

Fourth, macroeconomic performance was good. In particular, global price

stability and high growth were simultaneously achieved under deepening trade
liberalization.

Stability in tradable prices (wholesale prices or WPI) from the mid 1950s to the late
1960s was almost perfect and globally common. This macroeconomic
achievement was historically unprecedented.

THE ROLES of the INTERNATIONAL INSTITUTIONS in the CREATION of GLOBAL

ECONOMY

The World Trade Organization (WTO)

The WTO is a multilateral organization headquartered in Geneva, Switzerland with

152 member nations as of 2008 (Krueger 2000; Trachtman 2007:1308-15). Its focus
on trade places it at the heart of economic globalization and has made it a
magnet for those opposed either to the broader process of trade liberalization
and promotion or to some specific aspect of WTO operations.

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.

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The WTO has many roles: It operates a global system of trade rules, acts as a forum
for negotiating trade agreements, settles trade disputes between its members
and it supports the needs of developing countries.

The WTO comes to focus more on non-tariff related barriers to trade. One
example is the differences between nations in relation to regulations on such
items as manufactured goods or food. A given nation can be taken to task for
such regulations if they are deemed to be an unfair restraint on the trade in such
items.

The WTO continues to be concerned with tariff barriers, as well as restrictions on

trade in services. The WTO also deals with other types of protectionism.

Overall, WTO operations are premised on the neoliberal idea that all nations
benefit from free trade and open trade and it is dedicated to reducing and
ultimately eliminating barriers to such trade.

The International Monetary Fund (IMF)

The International Monetary Fund (IMF) was created on 1945 which is based in
Washington, D.C. It is governed by and accountable to the 189 countries that
make up its near-global membership.

With its near-global membership of 189 countries, the IMF is uniquely placed to
help member governments take advantage of the opportunities and manage
the challenges posed by globalization and economic development more
generally. The IMF tracks global economic trends and performance, alerts its
member countries when it sees problems on the horizon, provides a forum for
policy dialogue, and passes on know-how to governments on how to tackle
economic difficulties.

The IMF focuses on the functioning of the international monetary system, and on
promoting sound macroeconomic policies as a precondition for sustained
economic growth. The IMF provides policy advice and financing to members in
economic difficulties and also works with developing nations to help them
achieve macroeconomic stability and reduce poverty.

The IMF could give adjustment loans to nations in disequilibrium so that they are
able to meet their international obligations. The fund was created on the basis of
quotas for member nations.

Marked by massive movements of capital and abrupt shifts in comparative

advantage, globalization affects countries' policy choices in many areas,
including labor, trade, and tax policies. An important task for the IMF is helping a
country to benefit from globalization while avoiding potential downsides. The
global economic crisis has highlighted just how interconnected countries have
become in today’s world economy.

The World Bank (WB)

The World Bank, officially the International Bank for Reconstruction and
Development (BRD) is the most important element of the World Bank Group
(WBG) (Gilbert and Vines 2000; Bradlow 2007:1262-7).

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The Bank was set up in 1944 as the International Bank for Reconstruction and
Development to act as facilitator of post-World War II reconstruction and
development. The number of member countries increased sharply in the 1950s
and 1960s, when many countries became independent nations. It was created
to help restore and sustain the benefits of global integration, by promoting
international economic cooperation. All support to a borrowing country is guided
by a single strategy (called the 'Country Assistance Strategy') that the country
itself designs with help from the World Bank and many other donors, aid groups,
and civil society organizations.

The goal of the World Bank is to reduce poverty and to improve the living
standards of the people in low and middle-income countries.

The World Bank is one of the world’s largest sources of funding and knowledge to
support governments of member countries in their efforts to invest in schools and
health centers, provide water and electricity, fight disease and protect the
environment. This support is provided through project or policy-based loans and
grants, as well as technical assistance like advice and studies. The World Bank is
not a ‘bank’ in the common sense.

The World Bank is an international organization owned by the 184 countries ¾ both
developed and developing ¾ that are its members.

Globalization implies changes through political, social and economic reforms by

offering many incentives in developing countries. World Bank, IMF and WTO have
played important role in promoting the globalization minded agenda and
developed countries particularly USA and Japan determine the rules of the
game. As a result state power has been drastically reduced and developed
countries shape political, social and economic decisions for their own benefits. In
this sense, developed countries enjoy more benefits than developing countries.

LEARNING OBJECTIVES:
At the end of the lesson, you are expected to:
 differentiate nation and state;
 define internationalism and globalism;
 distinguish the competing conceptions of internationalism and
 determine the institutions that govern international relations.

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PRESENTATION OF CONTENT
DIFFERENCE BETWEEN NATION AND STATE

Many people are confused when the word state is mentioned. Some of them will
relate it to a nation. Although many people think they are the same, the words
nation and state are entirely different from one another. In terms of territory, a
state is comprised of four elements: government, territory, population, and
sovereignty. If one element is absent, it disqualifies the area from being called a
state. However, a nation can be defined as a population who shares a similar
culture and ideals. A nation is formed as a result of a common race, religion,
language, territory, history, culture or political aspirations. These elements are not
essential and are ever-changing. In terms of political and social organization,
state is a political term and refers to an area that is organized for the security of
people. It is a legal entity with human actions. On the contrary, a nation tends to
focus less on the people’s physical needs and more on metaphorical or
emotional terms.

A state has police power and individuals who disobey are punished. A state is a
political organization and it orders, coerces and punishes. On the other hand, a
nation doesn't possess strong powers.

A nation is backed by spiritual, emotional and moral power and it appeals to its
citizens and persuades them. It is a unity rather than a political organization.

INTERNATIONALISM AND GLOBALISM

Other terms to consider in this topic will be globalism and internationalism.

Globalism means “networks of connections spanning multicontinental distances,

drawing them close together economically, socially, culturally and
informationally” (Das 2011:18). Looking at the definition of the economic
globalism can increase our understanding of globalism. It is a constructive and
creative dimension of globalism and visualizes global economy as an integrated
marketplace. In its most fundamental form, it implies that cross-border flows of
goods and services, factors of production, financial assets; as well diffusion of
technology takes place in a frictionless manner.

The phenomenon of economic globalism has arguably developed into one of

the most important economic policy challenges of the 21st century. It has
become a ubiquitous force that is affecting, if not shaping the contours of major
global economic and financial trends.

On the other hand, internationalism is only in the same line as Globalization, but
to limited field. Though internationalism is also a process among countries but it is
not as wide as Globalization for example, WTO agreements have effects of
Globalization as it involves all economic players, whereas in SAARC (South Asian
Association for Regional Cooperation), the agreement will affect internationalism
as limited to some countries.

COMPETING CONCEPTIONS OF INTERNATIONALISM

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Internationalism comes in different forms, but the principle may be divided into
two broad categories: liberal internationalism and socialist internationalism. The
first major thinker of liberal internationalism was the late 18th century German
philosopher Immanuel Kant. Kant likened states in a global system to people living
together require a government to prevent lawlessness, shouldn’t that same
principle be applied to states? Without a form of world government, he argued
the international system would be chaotic. Therefore, states, like citizens of
countries, must give up some freedoms and establish a continuously growing
state consisting of various nations which will ultimately include the nations of the
world. In short, Kant imagined a form of global government.
German socialist philosopher Karl Marx who was also an internationalist did not
believe in nationalism. He believed that any true form of internationalism should
deliberately reject nationalism, which rooted people in domestic concerns
instead of global ones.

He placed a premium on economic equality; he did not divide the world into
countries but into classes. He referred to the capitalist class or bourgeoisie as the
owners of the factories, companies, and other means of production. In contrast
the proletariat class included those who did not own the means of production,
but instead, worked for the capitalists. In connection to this, there is a power
struggle between the capitalists class or bourgeoisie and the proletariat. Due to
exploitation, at the peak of capitalism, the proletariat will rise to have a bloody
revolution.

Marx and his co-author Fried Engels, believed that in a socialist revolution seeking
to overthrow the state and alter the economy, the proletariat “had no nation.”
They opposed nationalism because they believed it prevented the unification of
the world’s workers. Instead of identifying with other workers, nationalism could
make workers in individual countries identify with the capitalist of their countries.

THE INSTITUTIONS that GOVERN INTERNATIONAL RELATIONS

Of growing significance in the realm of global civil society is the wide range of
organizations dealing primarily with issues that relate to the environment, human
rights, and economic development. Among the most notable of these are
INGOS, CARE International, Worldwide Fund for Nature, Greenpeace and
Amnesty International.

International Nongovernmental Organizations (INGOS)

These are international not-for-profit organizations that perform public functions

but are not established or run by nation-states but are not established or run by
nation-states. They are private, voluntary, and nonprofit and most are oriented to
bringing about some sort of social and political change.

INGOS are often grassroots organizations and therefore are much more in touch
with the needs and interests of their membership than larger, more formal, and
more bureaucratized organizations associated with nation-states or the
international community.

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CARE International
CARE International is a global force and partner of choice within a world-wide
movement dedicated to ending poverty. It is known everywhere for its
unshakable commitment to the dignity of people.
It works with the world’s poorest and least developed countries, fragile states,
where the government and institutions are unable to provide for the basic needs,
or protect the rights, of the majority of the people, countries affected by conflict,
crises or natural disasters, poor communities in ‘middle income countries’ –
countries which are experiencing economic growth, but where inequality means
that many people are left behind, and remain trapped in extreme poverty.

World Wide Fund for Nature

WWF works with its partners worldwide to develop and implement lasting solutions
to the environmental challenges we face and in order to achieve this mission,
WWF focuses its efforts on two broad areas:

Biodiversity to ensure that the earth's web of life - biodiversity - stays healthy and
vibrant for generations to come.

Footprint, to reduce the negative impacts of human activity. WWF is working to

ensure that the natural resources required for life - land, water, air - are managed
sustainably and equitably.

Greenpeace

Greenpeace is an independent, campaigning organization which uses non-

violent, creative confrontation to expose global environmental problems, and to
force solutions for a green and peaceful future. Greenpeace's goal is to ensure
the ability of the earth to nurture life in all its diversity.

Amnesty International

It is a global movement of more than 7 million people who take injustice

personally. We are campaigning for a world where human rights are enjoyed by
all. It is independent of any political ideology, economic interest or religion.

What does Amnesty do?

o It investigates and exposes the facts whenever and wherever abuses happen.

o It lobby governments, and other powerful groups such as companies, making

sure they keep their promises and respect international law.

o It mobilizes millions of supporters around the world to campaign for change and
to stand in defense of activists on the frontline.

o It supports people to claim their rights through education and training.

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UNIT 1: The Structures of Globalization

LEARNING OBJECTIVES:
At the end of the lesson, you are expected to:
 define global governance;
 distinguish the functions of the United Nations;
 identify the five active organs of the United Nations and
 determine the challenges of the United Nations.

PRESENTATION OF CONTENT

DEFINITION OF GLOBAL GOVERNANCE

Global governance refers to the various intersecting processes that create this
order. There are many sources of global governance. States sign treaties and form
organizations, in the process legislating public international law. International non-
governmental organizations (NGOs), though not having formal state power, can
lobby individual states to behave in certain way. Even ideas such as the need for
global democracy or the clamor for good governance can influence the ways
international actors behave.

FUNCTIONS OF THE UNITED NATIONS

The United Nations is the most prominent International Organization in the

contemporary world. It was founded shortly after World War II. After the collapse
of the League of Nations at the end of the World War II, countries that worried
about another global war began to push for the formation of a more lasting
international league. The result was the creation of UN. Although the organization
is far from perfect, it should be emphasized that it has so far achieved its primary
goal of averting another global war.

Essentially it functions to moderate the disputes between nation. It also serves to

protect the freedoms and human rights of people around the world. The United
Nations offers a forum for nations to discuss and resolve issues and conflicts
diplomatically.

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UNIT 1: The Structures of Globalization

FIVE ACTIVE ORGANS OF THE UNITED NATIONS

The UN is divided into five active organs. The General Assembly (GA) is UN’s main
deliberative policy making and representative organ. According to the UN
charter, “Decisions on important questions, such as those on peace and security,
admission of new members, and budgetary matters, require a two-thirds majority
of the General Assembly. Decisions on other questions are done by simple
majority. Annually, the General Assembly elects a GA President to serve a one-
year term of office.” All member states (currently at 193) have seats in the GA.
The Philippines played a prominent role in the GA’s early years when Filipino
diplomat Carlos P. Romulo was elected GA President from 1949-1950.

Although the GA is the most representative organization in the UN, many

commentators consider the Security Council (SC) to be the most powerful.
According to the UN, this body consists of 15 member states. The GA elects 10 of
these 15 to two-year terms. The other 5 which are sometimes referred to as the
Permanent 5 (P5) are China, France, Russia, the United Kingdom, and the United
States. These states have been permanent members since the founding of UN,
and cannot be replaced through election.

The SC takes the lead in determining the existence of a threat to the peace or an
act of aggression. It calls upon the parties to a dispute to settle the act by
peaceful means and recommends methods of adjustment or terms of settlement.
In some cases, it can resort to imposing sanctions or even authorizing the use of
force to maintain or restore international peace and security. Because of these
powers, states that seek to intervene militarily in another state need to obtain the
approval of the SC. With the SC’s approval, a military intervention may be
deemed legal. This is an immense power.

The third UN organ is the Economic and Social Council (ECOSOC), which is the
principal body for coordination, policy review, policy dialogue, and
recommendations on social and environmental issues, as well as the
implementation of internationally agreed development goals. It has 54 members
elected for three-year terms. Currently, it is the UN’s central platform for discussions
on sustainable development.

The fourth is the International Court of Justice which task is to settle, in accordance
with international law, legal disputes submitted to it by states and to give advisory
opinions referred to it by authorized United Nations organs and specialized
agencies. The major cases of the court consist of disputes between states that
voluntarily submit themselves to the court for arbitration.

The court as such, cannot try individuals (international criminal cases are heard
by the International Criminal Court, which is independent of the UN), and its
decisions are only binding when states have explicitly agreed to place themselves
before the court’s authority.

Finally, the secretariat consists of 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. As such, it is the bureaucracy of the

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UNIT 1: The Structures of Globalization

UN, serving as a kind of international civil service. Members of the secretariat serve
in their capacity as UN employees and not as state representatives.

CHALLENGES OF THE UNITED NATIONS

Given the scope of the UN’s activities, it naturally faces numerous challenges.
Chief among these are the limits placed upon its various organs and programs by
the need to respect state sovereignty. The UN is not a world government, and it
functions primarily because of voluntary cooperation from states. If states refuse
to cooperate, the influence of UN can be severely circumscribed.

For example, the UN Council on Human Rights can send special rapporteurs to
countries where alleged human rights violation is occurring. If a country does not
invite the rapporteur or places conditions on his/her activities, however, this
information-gathering mechanism usually fails to achieve its goals.

However, perhaps the biggest challenge of the United Nations is related to

issues of security. As mentioned, the UN Security Council is tasked with
authorizing international acts of military intervention. Because of the P5’s veto
power, it is tough for the council to release a formal resolution, much more
implement it. This became an issue, for example, in the late 1990’s when the
United States sought to intervene in the Kosovo war. Hundreds and thousands of
Albanians were victims of massacres, mass deportations, and internal
displacement. Amid this systematic terror, members of the North Atlantic Treaty
Organization (NATO), led by the United States, sought SC authorization to
intervene in the Kosovo war on humanitarian grounds. China and Russia,
however, threatened to veto any action, rendering the UN incapable of
addressing the crisis. In response, NATO decided to intervene on its own. Though
the NATO intervention was largely a success, it nevertheless, left the UN
ineffectual.

REFERENCES

Abinales, Patricio and Claudio, Lisandro. 2018. “The Contemporary World.” C & E
Publishing, Inc.

Aldama,PK.R., (2018). The Contemporary World (pp.36-59). 84-86 P. Florentino St.,

Mesa Heights, Quezon City: Rex Printing Company Inc.

Claudio, L.E., Abinales, P.N. (2018). The Contemporary World (pp. 12-25). 839
EDSA, South Triangle, Quezon City: C & E Publishing, Inc.

Manfred, Steger B. “ Ideologies of Globalization .” 2005. Journal of Political

Ideologies

Manfred Steger, Paul Battersby, and Joseph M. Siracusa, eds. 2014. The Sage
handbook of Globalization. Two Vols. Thousand Oaks: SAGE

Steger,M. B,. The SAGE Handbook of Globalization (Chapter 9- The Globalization

of Economic Relations by Istvan Benczes). Thousand Oaks, California: SAGE
Publications Ltd.

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St., Mesa Heights, Quezon City: Rex Printing Company Inc.

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http://www.grips.ac.jp/teacher/oono/hp/lecture_F/lec02.htm

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http://web.worldbank.org/archive/website01016/WEB/0__CO85.HTM

https://www.thoughtco.com/the-bretton-woods-system-overview1147446

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