CONTEMPORARY WORLD PRELIM TOPICS

1.0 Intended Learning Outcomes

The Structures of Globalization

At the end of this lesson, you should be able to:

1. differentiate the competing conceptions of globalization;

2. explain the structure of globalization; and
3. narrate personal experience of globalization.

The Globalization of World Economics

At the end of this lesson, you should be able to:

1. define economic globalization;

2. identify the factors that facilitate economic globalization;
3. articulate a stance on global economic integration; and
4. explain the role of international financial institutions in the creation of a global economy.

5. The definition of Globalization is one of the greatest miracles or phenomena in this world since in
this particular event we see the so called fusion of many continents, nations, nationalities from
the different parts of the globe to create a single international community connected
by modern technology. It links multi cultural people that aims to promote the advancement of many
essential field of specializations, professions and industries.

6. The Story of Gio, Latif and the Laksa

7. Please watch the video about Gio, Latif and the Laksa and then see how globalization works in
the story.

8. Gio, Latif and the LaksaLinks to an external site.

9. The Global Experiences

10. Gio and Latif's story is fictional but very plausible since it is, in fact, based on the real -life
experience of one of the authors. it was through such friendships that one was able to appreciate
the meaning and impact of globalization.

11. The story of Gio and Latif shows how globalization operates at multiple, intersecting levels
through mass media. For example, the spread of Filipino TV in Malaysia suggests how fast this Filipino
popular culture has proliferated and crisscrossed all over Asia.

12. The Model UN activity that Gio and Latif participated in is an international competition about
international politics. Gio met Latif (a Malaysian involved in the model UN) in Sydney, a global city
that derives its wealth and influence from the global capital that flows through it. Sydney is also a
metropolis of families of international immigrants or foreigners working in the industries that also
sell their products abroad. After the two had gone back to their home countries, Gio and Latif kept
in touch through Facebook, a global social networking site that provides instantaneous
communication across countries and continents. They preserved their friendship online and then
rekindled this face-to-face in Singapore, another hub for global commerce, with 40 percent of the
population being classified as "foreign talents."
 13. Some Descriptions

14. Gio's story is a very privileged way of experiencing global flows, but for other people, the
shrinking of the world may not be as exciting and edifying. For example, it common for young
women in developing countries to be recruited in the internet as "mail-order brides" for foreign men
living in other countries. After being promised a good life once married to a kind husband in a rich
city, they ended up becoming sexual and domestic servants in foreign lands. Some were even sold
off by their "husbands" to gangs which run prostitute rings in these cities. Like Gio, they too have
experienced the shrinking of the world, albeit negatively.

15. Governments that decide to welcome foreign investments on the belief that they provide jobs
and capital for the country offer public lands as factory or industrial sites. In the process, poor people
living in these land, also called "urban poor communities," are being evicted by the government. The
irony is that these people forcibly removed from their "slums" are also the labor force sought by
foreign companies. They had to be kicked out of their homes, and then told that they could take an
hour or two of bus travel from their relocated communities back to the "old home" for minimum-
wage work. Different people encounter globalization in a variety of ways.

1.2 The Structures of Globalization

The structure of globalization talks about the wheels of social sciences such as Economics, Politics
creating a common international community or society connected by modern technology to connect the
world's continents with more than seven billion population. In history, we noticed that nations are separated
by different types of boundaries. Now we are in the new age where mankind's existence on this planet is
confronted by many challenges and issues making the means of survival a little complicated while
challenging people around the globe.

People choose to cross seas, continents just to support life and with the help of technology
mankind was able to create devices that can make people one. There is now the normal norm
of transporting finished goods and products from one place to another. People from different places of
the globe can now work and study from one place to another and the sharing of cultures best practices from
one place to another has become easy like passing a ball from one team mate to another. Indeed,
globalization has become the special connecting device of multi-culture and multi-practice of social science
in this modern world.

Globalization: A Working Definition

Most accounts view globalization as primarily an economic process. When a newspaper reports that
nationalists are resisting "globalization," it usually refers to the integration of the national markets to a wider
global market signified by the increased free trade. When activists refer to the "anti-globalization"
movement of the 1990's they mean resisting the trade deals among countries facilitated and promoted by
global organizations like the World Trade Organization (WTO).

Globalization scholars do not necessarily disagree with people who criticize unfair international trade
deals or global economic organizations. In fact, many are sympathetic to the critique of economic
globalization. Academics differ from journalists and political activists, however, because they see
globalization in much broader terms.

The best scholarly description of globalization is provided by Manfred Steger who described the process
as "the expansion and intensification of social relation and consciousness across world-time and across-
space. Expansion refers to both the creation of new social networks and the multiplication of existing
connections that cut across traditional political, economic, cultural and geographic boundaries.
Intensification refers to the expansion, stretching and acceleration of these networks.

Steger posits that his definition of globalization must be differentiated with the ideology he
calls globalism. If globalization represents the many processes that allow for the expansion and
intensification of global connections, 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.

For anthropologist Arjun Appadurai, different kinds of globalization occur on multiple and intersecting
dimensions of integration that he calls "scapes." An "ethnoscape" for example refers to the global movement
of people, while "mediascape" is about the flow of culture. A "technoscape" refers to the circulation of
mechanical goods and software; a "financescape" denotes the global circulation of money; and the
"ideoscape" is the realm where political ideas move around.

Appadurai's argument is simple: there are multiple globalizations. Hence, even if one does not agree that
globalization can be divided into five "scapes," it is hard to deny Appadurai's central thrust of viewing
globalization through various lenses.

1.3 The Globalization of World Economics

International Trading System and the Bretton Woods System

Hi everyone! In this lesson, you will learn the historical background of international trading system.

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 the increasing
integration of economies around the world through the movement of goods, services, and capital across
borders. These changes are the products of people , organizations, institutions, and technologies. As with all
other processes of globalization, there is a qualitative and subjective element to this definition.

Even while the IMF and ordinary people grapple with the difficulty of arriving at precise definitions of
globalization, they usually agree that a drastic economic change is occurring throughout the world.
According to the IMF, the value of trade (goods and services) as percentage of world GDP increased from
42.1 percent in 1980 to 62.1 percent in 2007. Increased trade also means that investments are moving all
over the world at faster speeds. According to the United Nations Conference on Trade and Development
(UNCTD), the amount of foreign direct investments flowing across the world was $57 billion in 1982. By
2015, the number was $1.76 trillion. These figures represent a drastic increase in global trade in the span
of just a few decades. It has happened not even after one lifespan.

Apart from the sheer magnitude of commerce, we should also note the increased speed and frequency
of trading. These days, supercomputers can execute millions of stock purchases and sales between different
cities in a matter of seconds through a process called high-frequency trading.
International Trading Systems

International trading systems are not new.

1. Silk Road - the oldest known international trade route. It refers to a network of pathways in the
ancient world that spanned from China to Middle East and Europe. It was called as such because
one of the most profitable products traded through this network was silk, which was highly
prized especially in the area that is now the Middle East as well as in the West (today's Europe)
Traders used the Silk Road regularly from 130 BCE when the Chinese Han dynasty opened
trade to the West until 1453 BCE when the Ottoman Empire closed it.

2. Galleon Trade - According to historians Dennis O. Flynn and Arturo Giraldez, the age of
globalization began when "all important populated continents began to exchange products
continuously - both with each other directly and indirectly via other continents - and in values
sufficient to generate crucial impact on all trading partners." Flynn and Giraldez trace this back
to 1571 with the establishment of the galleon trade that connected Manila in the Philippines
and Acapulco in Mexico. This was the first time that the Americas were directly connected to
Asian trading routes. For Filipinos, it is crucial to note that economic globalization began on the
country's shore. The galleon trade was part of the age of mercantilism.
3. Gold Trade - A more open trade system emerged in 1867 when, following the lead of the United
Kingdom, the United states and other European nations adopted the gold standard at an
international monetary conference in Paris. Broadly, the goal was to create a common system
that would allow for more efficient trade and prevent the isolationism of the mercantilist era.
The countries thus established a common basis for currency prices and a fixed exchange rate
system -all based on the value of gold.

4. Fiat currencies- These are currencies that are not backed by precious metals and whose value
is determined by their cost relative to other currencies. It also refers to a system in 20th century
that allows governments to freely and actively manage their economies by increasing or
decreasing the amount of money in circulation as they see fit.
The Bretton Woods System (BWS)

After the two world wars, world leaders sought to create a global economic system that would ensure
a longer-lasting global peace. They believe that one of the ways to achieve this goal was to set up a network
of global financial institutions that would promote economic interdependence and prosperity. The Bretton
Woods system was inaugurated in 1944 during the United Nations Monetary and Financial Conference to
prevent the catastrophes of the early decades of the century from recurring and affecting international ties.

The Bretton Woods System was largely influenced by the ideas of British Economist John Maynard
Keynes who believed that economic crises occur not when a country does not have enough money, but
when money is not being spent and, thereby, not moving. When economies slow down, according to Keynes,
governments have to reinvigorate markets with infusion of capital. This

active role of governments in managing spending served as the anchor for what would be called a system
of global Keynesianism.

Two Financial Institutions created during the Bretton Woods Conference:

1. International Bank for Reconstruction and Development (IBRD or World Bank) is responsible
for funding a reconstruction projects of countries affected by world wars.
2. International Monetary Fund (IMF) is a lending institution that helps each country to recover
from financial crises.

Neoliberalism and its Discontents

Keynesianism is an economic theory that assumed three things 1) Economic crisis occur when a country
does not have enough money, but when money is not being spent and, thereby, not moving 2) If the
economies slow down then government should infuse money to reinvigorate the market 3) Proponent
argued that as prices increased, companies would earn more, and would have more money to hire workers.
Friedrich Hayek and Milton Friedman challenged the Keynesian theory and argued that government
intervention in economies distort the proper functioning of the market.

The Washington consensus advocates for minimal government spending to reduce government debt. They
also called for the privatization of government-controlled services like water, power, communications and
transport, believing that the free market can produce the best result.

The Global Financial Crisis and the Challenge to Neoliberalism

Neo-liberalism came under significant strain during the global financial crisis 2007-2008 when the world
experienced the greatest economic downturn since the great depression. The crisis can be traced back to
the 1980s when the United State systematically removed various banking and investment
restrictions. Financial experts wrongly assumed that even if many of the borrowers were individuals and
families who would struggle to pay, a majority would not default. The crisis spread beyond the United States
since many investors were foreign governments, corporations and individuals. The loss of their money
spread like wildfire back to their countries.

Economic Globalization Today

"The world has become too integrated. Whatever one's opinion about the Washington Consensus is, it is
undeniable that some form of international trade remains essential for countries to develop in the
contemporary world." Export, not just the local selling of goods and services, make national economies grow
at present. In the past, those that benefited the most from free trade were the advanced nations that were
producing and selling industrial and agricultural products.

In the recent decades, partly as a result of these increased export, economic globalization has ushered in an
unprecedented spike in global growth rates.

Economic globalization remains an uneven process, with some countries, corporations and individual
benefiting a lot more that others". (Claudio et al. 2018) The beneficiaries of global commerce have been
mainly transnational corporations (TNCs) and not government.

Module 1 Summary

International economic integration is a central tenet of globalization. In fact, it is so crucial to the process
that many writers and commentators confuse this integration for the entirety of globalization. As a
reminder, economics is just one window into the phenomenon of globalization; it is not the entire thing.

Nevertheless, much of globalization is anchored on changes in the economy. Global culture, for example, is
facilitated by trade. Filipinos would not be aware of American culture if not for the trade that allows locals
to watch American movies, listen to American music and consume American products. The globalization of
politics is likewise largely contingent on trade relations. These days, many events of foreign affairs are
conducted to cement trading relations between and among states.

Depending on what is being globalized, a different dynamic (or dynamics) may emerge. So while it is
important to ask "What is globalization?" it is likewise important to ask "What is/are being
globalized?" Depending on what is being globalized , the vista and conclusions change.

The lessons in the next modules will reflect the multidimensional understanding of globalization. Each of the
lessons will focus on a particular kind of globalization. Every one of them will be about different networks
and connections that are expanding and intensifying in the contemporary world.

Treat each lesson not as an end in itself but as window to the broader phenomenon of globalization.

2.1 A History of Global Politics

In this lesson, you will learn the historical background of global politics. I'm sure you are excited to
have a glimpse of global politics that leads to the creation of international order. Relax and enjoy the lesson!

The world is composed of many countries or states, all of them having different forms of government.
Some scholars of politics are interested in individual states and examine the international politics of these
countries. For example, a scholar is studying politics of Japan may write about the history of its bureaucracy.
Other scholars are more interested in the interactions between states rather than their internal politics.
These scholars look at trade between deals between states. They also study political, military and other
diplomatic engagements between two or more countries. These scholars are studying international
relations. Moreover when they explore the deepening of interactions between states, they refer to the
phenomenon of internationalization.

How does internationalization differ from globalization of politics?

Internationalization refers to the deepening of interactions between states. Globalization of politics refers
to the multiple interactions or relations between states.

According to Claudio et al. (2018, p. 27), there are four attributes of today's global system.

1. There are countries or states that are independent and govern themselves.
2. Countries interact with each other through diplomacy.
3. There are international organizations, like the United Nations (UN) that facilitate the
interactions.
4. International organizations also take on lives of their own.

How did global system originate?

1. Village/Tribe- people in various regions of the world were identified according to respective
units.
2. Christian world - started by apostles of Jesus Christ until Christianity became a state religion.
3. Nation-State - refers to state governing a nation.

What is the difference between nation and state?

State refers to a country and its government. It has four attributes: 1) It exercises authority over a
specific population (citizens). 2) It governs a specific territory 3) It has a structure of government 4) It has
sovereignty over its territory.
 Nation is defined as an "imagined community" or group of people who shared a common culture,
language, history etc. (Benedict Anderson)

The Interstate System

The origins of the present-day concept of sovereignty can be traced back to the Treaty of Westphalia,
which was a set of agreements signed in 1648 to end the Thirty Years' War between the major continental
powers of Europe. After the brutal religious war between Catholics and Protestants, the Holy Roman Empire,
Spain, France, Sweden, and the Dutch Republic designed a system that would avert wars in the future by
recognizing that the treaty signers exercise complete control over their domestic affairs and swear not to
meddle in each other's affairs.

1. Westphalian system - a system that gives stability to European nations through direct control
of their domestic activities - free from interference of other nations.
2. Napoleonic Code - a principle that spread "liberty", "equality" and "fraternity" as themes for
creation of new form of government in France.
3. Metternich system- an alliance of "great powers" - United Kingdoms, Austria, and Prussia that
restored monarchical, hereditary, and religious privileges of rulers.

Internationalism

Internationalism is an imagined system of heightened interaction between various sovereign states

particularly the desire for greater cooperation and unity among states and people. It comes in different
forms, but the principle may be divided into two broad categories: liberal internationalism and socialist
internationalism.

Liberal internationalism

Achievement: Foundation of United Nation

Proponents:

1. Immanuel Kant - argues that citizens in the state must give up some freedom and establish a
continuously growing state consisting of various nations which will ultimately include the
nations of the world". Since, if there is no form of world government then international system
will be chaotic.
2. Jeremy Bentham- says that the objectives of the global legislators should aim to propose
legislation that would create " the greatest happiness of all nations taken together".
3. Giuseppe Mazzini- believes that free, unified nation-state should be the basis of global
cooperation.
4. Woodrow Wilson- forwarded the principle of self-determination and advocate for the creation
of League of Nations to prevent a world war II.

Socialist internationalism

Achievement: Declaration of International women's Day and Labor Day

1. Karl Marx -claimed a premium economic equality among the classes of citizens in the world.
2. Friedrich Engels and Karl Marx established a socialist revolution through a battle cry "Workers
of the world, Unite! you have nothing to lose but your chains."
3. Vladimir Lenin - established the communist international (Comintern) in 1919 to serve as central
body for directing communist parties all over the world.
4. Stalin re-stablished the Comintern as Communist Information Bureau (Cominform) in order to
direct the various communist parties that had taken power in Eastern Europe.
 This lesson examined the roots of the international system. In tracing these roots, a short history of
internationalism was provided. Moreover, internationalism is but one window into the broader
phenomenon of globalization. Nevertheless, it is a very crucial aspect of globalization since global
interactions are heightened by the increased interdependence of states. This increased interdependence
manifests itself not just through state-to-state relations. Increasingly, international relations are also
facilitated by international organizations that promote global norms and policies. The most prominent
example of this organization, of course, is the United Nations.

2.2 The Roles and Functions of the United Nations

What is an International Organization

When scholars refer to the groups like the UN or institutions like the IMF and the World Bank, they
usually call them international organization. International Organization (IO) refers to international
intergovernmental organization or groups that are primarily made up of member-states. International
relations scholars Michael N. Barnett and Martha Finnemore listed the following powers of IOs.

1. IOs have the power of classification.

2. IOs have the power to fix meanings.
3. IOs have the power to diffuse norms.

The United Nations

After the collapse of the League of Nations at the end of 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 the United Nations on October 24,1945. 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. And
because of this reason the United Nations should be considered as a success.

Five active Organs of the United Nations:

1. General Assembly (GA)

2. Security Council (SC)

3. Economic and Social Council (ECOSOC)

4. International Court of Justice (ICJ)

5. Secretariat -UN Admin

The General Assembly (GA) is the United Nations' main deliberative policy making and representative
organ. According to the its charter, the 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 a 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 a Filipino diplomat
named Carlos P. Romulo was elected GA President from 1949-1950.

Although the GA is the most representative organization in the United Nations, many
commentators consider the U.N. Security Council (SC) as the most powerful. According to the U.N., this
body consists of 15 member states. the G.A. elects ten of these 15 to two-year terms.
The Five Permanent Members of the U.N. Security Council are -

1. The United States of America

2. China

3. Russia

4. France

5. The United Kingdom

The above-mentioned states are permanent members since the founding of the United Nations 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 discussion on sustainable development.

The fourth is the International Court of Justice whose 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.

Finally, the secretariat consists of the "Secretary-General and tens of thousands of international UN staff
who carry out the day-to-day work of the UN as mandated by the General Assembly and the organization's
other principal organs."

Challenges of the United Nations

The United Nations is not a world government and it functions primarily because of
voluntary cooperation from states. If states refuse to cooperate, the influence of the UN can be severely
circumscribed. Perhaps, the biggest challenge of the United Nations is related to the issues of security.

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 1990s when the United States sought to intervene in the
Kosovo war.
 On September 2005, the Philippines was part of the powerful U.N Security council as one of the
10 non-permanent members. The Philippines served as the chair/head of the UN Security Council. In the
file photo, then Philippine President Gloria Arroyo was presiding the UN Security Council meeting - one of
the shining moments in our nation's history.

Module 2 Summary

This lesson examined the roots of the international system. In tracing these roots, a short history of
internationalism was provided. Moreover, internationalism is but one window into the broader
phenomenon of globalization. Nevertheless, it is a very crucial aspect of globalization since global
interactions are heightened by the increased interdependence of states. This increased interdependence
manifests itself not just through state-to-state relations. Increasingly, international relations are also
facilitated by international organizations that promote global norms and policies. The most prominent
example of this organization, of course, is the United Nations.

Global governance is such a complex issue that one can actually teach an entire course in itself. This
lesson has focused on the IOs and the United Nations in particular. International organizations are
highlighted because they are the most visible symbols of global governance. The UN, in particular, is the
closest to a world government. What is important to remember is that international institutions like the UN
are always in a precarious position. On the one hand, they are groups of sovereign states. On the other, they
are organizations with their own rationalities and agendas. It is this tension that will continue to inform the
evolution of these organizations. However, note that there are many institutions, groups, and ideas that hold
international and global politics together. In your own time, you may want to explore these topics on your
own.