Contemporary

World
(2GED-SS05)

A toolkit for OBTEC-1-6

Prof. Rachel C. Payapaya

Term 3, 2020-2021
 Module 2

The Structures of Globalization

https://

theconversation.com/reaching-its-limits-can-the-global-economy-keep-growing-21191

What to Learn
This module is consisting of four lessons: (1) Global Economy, (2) Market
Integration, (3) The Global Interstate System and (4) United Nations and Contemporary
Global Government

Objectives
1. Analyze and explain the factors that facilitate economic globalization through the
articulation of facts based on research and online article
2. Examine the roles of each international financial institution in relation to the
country’s economy.
3. Explain the effects of globalization on governments
4. Explain the identified roles and functions of the United Nations

8
 Lesson 1: THE GLOBAL ECONOMY

Ask

1. What is Global Economy? Is it a concept that all people can relate to?
2. Who and what is included in the Global Economy?
3. If you are asked to define the modern world system, how would you describe it?
4. What could be the goals of all economies in constructing the modern world system?
5. If these goals are met, how come there is a great divide between the developed countries
and the developing countries in the world today?

Analyze

Activity 9 SEE- THINK – WONDER (5 groups)

Direction: Examine the editorial cartoons and feel free to express what you see, think and wonder.
Connect your answer to the concept of global economy.

https://

www.cartoonistgroup.com/cartoon/Matt+Wuerker%27s+Editorial+Cartoons/2008-03-01/22116

9
 https://coreybradshaw.files.wordpress.com/2010/11/drowning-in-shit.jpg

https://mizzouthinkglobal.files.wordpress.com/2015/02/povertyreductiontanzania-cartoon.jpg

https://www.cartoonistgroup.com/subject/The-Global+Economy-Comics-and-Cartoons.php

10
 https://www.google.com/search?q=editorial+cartoons+about+global+economy+concept&tbm=isch&ved=2ahUKEwja9sK6-anwAhU4xYsBHbUiBN8Q2-
cCegQIABAA&oq=editorial+cartoons+about+global+economy+concept&gs_lcp=CgNpbWcQAzoCCAA6BQgAELEDOgQIABBDOgcIABCxAxBDUJS3b1iLo3Bg1KZwaABwAHgAgAHVAYgBhiuSAQYwLjQ2LjGYAQCgAQGqAQtnd3Mtd2l6
LWltZ8ABAQ&sclient=img&ei=JA6OYNrUL7iKr7wPtcWQ-A0&bih=665&biw=1375

Peruse

 GLOBAL ECONOMY
A global economy is an economic interdependence established between the most influential
countries that drive the worldwide economic environment. It is also the aggregate economic
output, movement and influence of all countries. It provides linkages between the regions and
nations of the world in a system of economic relationships. These relationships involve the
exchange of goods and services, financial flows across borders, exchanging different nations'
currencies, movement of people in search of better standards of living.

Production Networks in The Global Economy

In the 1990s, a new framework, called GLOBAL COMMODITY CHAINS (GCC), tied the concept of
the value-added chain directly to the global organization of industries (see Gereffi and
Korzeniewicz 1994; Gereffi 1999, 2001). This work was based on an insight into the growing
importance of global buyers (mainly retailers and brand companies, or ―manufacturers without
factories‖) as key drivers in the formation of globally dispersed production and distribution
networks. Gereffi (1994a) contrasted these buyer-driven chains to what he termed producer-driven
chains. The trade data alone mask important organizational shifts because they differentiate
neither between intrafirm and interfirm trade nor between the various ways in which global
outsourcing relationships were being constructed.

A variety of overlapping terms has been used to describe the complex network relationships that
make up the global economy. Each of the contending concepts, however, has a particular
emphasis that is important to recognize for a chain analysis of the global economy:

Supply Chains. A generic label for an input-output structure of value-adding activities, beginning
with raw materials and ending with a finished product International production networks. A focus
on the international production networks in which TNCs act as ―global network flagships‖ (Borrus,
Ernst, and Haggard 2000)

11
Global Commodity Chains. An emphasis on the internal governance structure of supply chains
(especially the producer-driven vs. buyer-driven distinction) and on the role of diverse lead firms in
setting up global production and sourcing networks (Gereffi and Korzeniewicz 1994) French
―filière‖ approach. A loosely-knit set of studies that used the filière (i.e., channel or network) of
activities as a method to study primarily agricultural export commodities such as rubber, cotton,
coffee, and cocoa (Raikes, Jensen, and Ponte 2000)

Global Value Chains. Emphasis on the relative value of those economic activities that are
required to bring a good or service from conception, through the different phases of production
(involving a combination of physical transformation and the input of various producer services),
delivery to final consumers, and final disposal after use (Kaplinsky 2000; Gereffi and Kaplinsky
2001)

FACTORS THAT HAVE CONTRIBUTED TO GLOBALIZATION

 https://www.tutor2u.net/business/reference/factors-that-have-contributed-to-globalisation

Containerisation. The costs of ocean shipping have come down, due to containerization, bulk
shipping, and other efficiencies. The lower unit cost of shipping products around the global
economy helps to bring prices in the country of manufacture closer to those in export markets, and
it makes markets more contestable globally
Technological change. Rapid and sustained technological change has reduced the cost of
transmitting and communicating information – sometimes known as “the death of distance” – a key
factor behind trade in knowledge products using web technology.
Economies of scale. Many economists believe that there has been an increase in the minimum
efficient scale (MES) associated with some industries. If the MES is rising, a domestic market may
be regarded as too small to satisfy the selling needs of these industries. Many emerging countries
have their transnational corporations
Differences in tax systems. The desire of businesses to benefit from lower unit labor costs and
other favorable production factors abroad has encouraged countries to adjust their tax systems to
attract foreign direct investment (FDI). Many countries have become engaged in tax competition
between each other in a bid to win lucrative foreign investment projects.
Less protectionism. Old forms of non-tariff protection such as import licensing and foreign
exchange controls have gradually been dismantled. Borders have opened and average import
tariff levels have fallen. That said, it is worth knowing that, in the last few years, there has been a
rise in non-tariff barriers such as import quotas as countries have struggled to achieve real
economic growth and as a response to persistent trade and current account deficits.
Growth Strategies of Transnational and Multinational Companies. In their pursuit of revenue
and profit growth, increasingly global businesses and brands have invested significantly in
expanding internationally. This is particularly the case for businesses owning brands that have
proved they have the potential to be successful globally, particularly in faster-growing economies
fueled by growing numbers of middle-class consumers.

12
The Modern World-System
This history of colonialism inspired American sociologist Immanuel Wallerstein's model of what he
called the capitalist world economy. Wallerstein described high-income nations as the "core" of the
world economy. This core is the manufacturing base of the planet where resources funnel in to
become the technology and wealth enjoyed the Western world today. Low-income countries,
meanwhile, are Wallerstein called the “periphery", whose natural resources and labor support the
wealthier countries, first as colonies and now by working for a multinational corporation under
neocolonialism. Middle-income countries, such as India or Brazil, are considered the semi-
periphery due to their closer ties to the global economic core.
In Wallerstein's model, the periphery remains economically dependent on the core in several
ways, which tend to reinforce each other. First, poor nations tend to have few resources to export
to rich countries. However, the corporation can buy these raw materials cheaply and then process
and sell them in richer nations. As a result, profits tend to bypass the poor countries. All of these
unequal trade patterns lead to poor nations owing lots of money to richer nations and creating
debt. For example, the Philippines was recently approved of a $100 million loan from World Bank
for Covid-19 Emergency Response Project to help meet urgent healthcare needs in the wake of
pandemic and bolster the country’s public health preparedness.

Explore

Activity 10
Direction: Watch the youtube videos:
https://www.youtube.com/watch?v=aemiFHJXrHI
https://www.youtube.com/watch ?v=Y9zThcMJzQU

Activity 11 TED talk Presentation

Direction: TED stands for Technology, Entertainment, Design. TED talks are 5-minute
presentations based on the concept of "ideas worth sharing." Kindly create/ innovate a
TED talk presentation designed to describe the modern world system and how it came about.
The expected output by each group could be video lectures of your team talking about the topic
that could be presented in an online platform like Zoom, Google Meet, or Messenger. Or, it
could be PowerPoint slides or narrated PowerPoint slides with a voice-over by one of the
members. It will be a 5-minute presentation per team.

Topics:
Group 1: What is Global Economy all about? Is it still relevant and can be related to
everyone?
Group 1: Who and what is included in the Global Economy?
Group 2: Will a country grow if it will not depend on other countries for help?
Group 3: Does the Global Economy exist in our locality/ community?
Cite specific evidence to support your answer.
Group 4 : What could be the goals of all economies in constructing the modern world
systemIf these goals are met, how come there is a great divide between the
developed countries and the developing countries in the world today?

13
Criteria:
 50 points max (per group) - factual, complete, accurate, concise, comprehensive, and
efficient relay of ideas.
 50 points max (each member) - the level of participation to the group discussion and
knowledge construction (to be identified by the group leader)
 Assess

Activity 12
Direction: Answer the following:

_______1. It is the economy of all humans of the world, considered as the international exchange
of goods and services that is expressed in monetary units of account.
_______2. This is the cost of ocean shipping that has come down due to containerization which is
a contributing factor of globalization.
_______3. Who is an American sociologist who modeled what is called a capitalist world
economy?
_______4. What are the names of the two “banks" created after WW2 to help countries in need?
_______5. How much was the recent loan of the Philippines from the World Bank for Covid-19
Emergency Response Project?

Activity 13 Reflection
Direction: Express your thought on this:

How do you think the Global Economy and communities adapt to the present life under the ‘curse’
of the pandemic?

14

Lesson 2: MARKET INTEGRATION

 Ask

1. Do you have any idea about MARKET INTEGRATION?

2. What are the international financial institution that you know?
3. Did you know how dollar become the global currency?
4. Can you cite differences between capitalism and socialism?
5. Can you name a particular global corporation? How does this corporation help the
economy of the country?

Analyze

Activity 14
Direction: Identify the logo of the following international financial institutions.ogo of
the following international financial institutions

a. _______________ b. _______________ c. _____________ d. _______________

e. ___________________ f. ____________________

logos taken from: https://www.google.com/search?sxsrf=ALeKk02uQrvjDLYiFP8ybY6D0LOysfRWNw%3A1595399097574&ei=udsXX-

rDIrqNr

15

Peruse
The International Financial Institutions

World economies have been brought closer together by globalization. It is reflected in the phrase
“when the American economy sneezes, the rest of the world catches a cold”. But it is not only the
economy of America that has impact to the world economy. Other countries have also significant
contribution to global market and finance. --(Adapted from: Aldama (2018) The Contemporary World)--

The Bretton Wood System

The major economies in the world had suffered because of World War I, the Great Depression in
the 1930’s and the World War II. Because of the fear of the recurrence of lack of cooperation
among nation state, political instability, and economic turmoil, reduction of barriers to trade and
free flow of money among nations became the focus to restructure the world economy and ensure
global financial stability (Ritzer, 2015). Thus the creation of the Bretton Woods System.

Bretton Woods System generated the expression of currency in terms of gold value to establish a
par value (Boughton). For instance a 35 U.S dollar pegged by the United States per ounce of gold
is the same as 175 Nicaraguan cordobas per ounce of gold. Secondly, two 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 one-percent
margin‖ ( Boughton 2007:106-7). This made international trade possible at or near the exchange
rate for the currencies of the countries involved without the need for any outside intervention.
Thirdly the international Monetary Fund (IMF) was created (Babb 2007:128-64) to establish,
stabilize, and oversee exchange rates. Forty states became IMF members in 1946 and were
required to deposit some of their gold reserves with the IMF. The IMF was empowered to approve
the par values of currencies and member states could not change that value by more than 10
percent. If a currency was destabilized, the IMF was prepared to lend member states the money
needed to stabilize their currency. Fourthly, the member states agreed to eliminate, at least
eventually all restrictions.-- Adapted from:Aldama (2018) The Contemporary World)—

The General Agreement on Tariffs and Trade (GATT) and the World Trade Organization
(WTO)

One of the system born out of Bretton Woods was the General Agreement on Tariffs and Trade
(GATT) that was established in 1947 Goldstein et.al, 2007). GATT was a forum for the meeting
of 23 member countries. It focused on trade goods through Multinational trade agreement. ---
Adapted from: Aldama (2018) The Contemporary World) ---

It operated until 1995 when it was superseded by the World Trade Organization (WTO). While
GATT focused on Trade and Goods, the WTO also took for the responsibility for the increasingly
important trade in service. While GATT was simply a forum for the meetings of representatives of
countries, the WTO is an independent organization. GATT was deemed more acceptable than the
International Trade Organization (ITO) by the US and other countries; and in 1947, a number of
initial trade agreements were negotiated by 23 nations. Since then multinational trade agreement
have been negotiated under GATT‘s (and later the WTO‘s) institutional umbrella. Over the years a
number of ―rounds‖ of negotiation were completed. It was out of the Uruguay Round (1986-1983)
that an agreement that reached to create the WTO.

16
World Trade Organization (WTO)
The headquarter of WTO is located in Geneva, Switzerland with 152 members states as of 2008
(Trachtman, 2007) It is an independent multilateral organization that became responsible for trade
in services, non-tariff-related barriers and other broader areas of trade liberalization.
--Adapted from: Aldama (2018) The Contemporary World)—

While GATT focused on tariff reduction, the WTO has come to focus more of non-tariff related
barriers to trade. One example is the differences between nation in relation to regulations on such
items as manufactured foods or food. A given nation can be taken to task for such regulations if
they are deemed to be an unfair restraint to the trade in such items. However, the WTO has been
criticized for not going far enough in countering the trade barriers retain by developed countries in
such domains as agricultural products and some services.

The International Monetary Fund (IMF) and the World Bank

IMF and World Bank were founded after the World War II. Their establishment was mainly
because of peace advocacy after the war. IMF and World Bank were designed to complement
each other.

The IMF’s main goal was to help countries in trouble at the time and who could not obtain money
by any means. Both institutions are basically banks. The IMF is lightning rod for critics who see it
as supporting developed countries and their efforts to impose their policies on less developed
countries. It supporters see it as key to emergence and further development of the global
economy. As a result of changes of the global economy, the nature and functions of the IMF have
changed since its creation in 1944. In the beginning, it managed the exchange rate system
created in Bretton Woods. The IMF closely watch a nation‘s balance in order to be sure it could
sustain the agreed upon exchange rate for its currency. If there were problems in the latter, the
IMF concerned itself with two matters. The first was policy errors by the nation, which presumably
could be corrected. The second was fundamental economic problems (relating, for example the
productivity). Above all, the IMF wanted to be sure that a nation did not use such problems as an
excuse to lower its exchange rate and therefore improve its competitive position vis-ȁ-vis other
nations. If a fundamental disequilibrium occurred, the IMF had the power to authorize a change in
the exchange rate of the nation ‘s currency.

The World Bank, officially the International Bank for the Reconstruction and Development (IBRD)
is the most important element of the World Bank Group (WBG) (Gilbert and Vines 2000; Bradlow
2007:1262-7). The IBRD or the bank was established in 1944 at Bretton Woods and began
operations in 1946. Membership is open to all member states of the IMF, and as of this writing, it
includes 184 nations. It provides funds to government-sponsored or guaranteed programs in so-
called Part II countries (member states that are middle income or creditworthy poorer nations).
Among the missions of the bank are:

● encourage development of productive facilities and resources in less developed

countries;
● funding for productive purposes when private capital cannot be obtained or reasonable
terms;
● encouraging international investment in order to promote international trade and
development and equilibrium in balance of payments; and
● helping member countries improve their productivity, standard of living, and labor
conditions (Bradlow 2007:1264)

17
The Organization for Economic Cooperation and Development (OECD), Organization of
Petroleum Exporting Countries (OPEC) and the European Union (EU).

The most encompassing club of the richest countries in the world is the Organization for
Economic Cooperation and Development (OECD) with 35 member states as of 2016.

In 1960, the Organization of Petroleum Exporting Countries (OPEC) was originally

comprised of Saudi Arabia, Iraq, Kuwait, Iran and Venezuela. They are the major exporters of oil
in the world. OPEC was organized because they wanted to increase the price of oil.

The European Union (EU) is made up of 28 member states. Member countries adopted
the euro as basic currency. Critics argue that the euro increased the prices in Eurozone and
resulted in depressed economic growth rates like Greece, Spain and Portugal.

North American Free Trade Agreement (NAAFTA)

The North American Free Trade Agreement (NAFTA) is a trade pact between the
United States, Mexico, and Canada created on January 1, 1994 when Mexico joined the two other
countries. Originally in 1989 only Canada and United States were trading partners. NAFTA helps
in developing and expanding world trade by broadening international cooperation. Its creation
cause manufacturing jobs in developed countries to transfer to less developed nations in order to
reduce the cost of their products.

GLOBAL CORPORATIONS
The increase in international trade has both created and been supported by international
regulatory groups, WTO. The regulatory groups and agreements regulate the flow of goods and
services between countries. Thus, companies can produce their goods and services across many
different countries. For instance, you can have a backpack that was designed in US but the
materials came from China and put together in Mexico.

These companies that extend beyond the borders of one country are called Multinational or
Transnational Corporations (MNCs or TNCs) They intentionally surpass national borders and take
advantage of opportunities in different countries to manufacture, distribute, market and sell their
products. Global corporations locate their factories in countries with cheap labor to save up
expenses of the product.

By most accounts, the other major player in economic globalization (beyond the nation-state
and the organizations discussed above) is the multinational corporation (MNC). Also of importance
are transnational corporations (TNCs). While TNCs involve operations in more than one country,
MNCs operate in more than two countries. We will generally use the term MNC in this module to
encompass both MNCs and TNCs. There are many who believe that the MNC has grown more
powerful, perhaps much more powerful, than the nation-state and any of the organizations
described above that are based on nation-states. For example, dela Dehesa (2006:85) argues:
―We have to get used to the fact that, thanks to the globalization process, companies rather than
states will be the lead in g actors in the world economy. " There is no question that MNCs are
increasingly important on the global scene. Adapting Dicken's (2007:106) definition of a TNC, an
MNC is "a firm that has the power to coordinate and control operations" in more than two
countries, "even if it does not own them. This means that they operate in an array of economic,
political, social and cultural environments. While MNCs have proliferated and grown in recent
years, companies that operate, have interests, and have activities outside a home country are not
new, and this was exemplified by, among others, the East India Trading Company and the
Hudson's Bay Company.
 18
Why do companies become multinational or transnational? One set of reasons relates to
market-oriented investments made necessary by the geographic unevenness of markets. A
company may reach a saturation point in its domestic market.

Explore
Sa ating panahon, ang midya ay nauungkat kapag
ang paksang pag-uusap at ugnayan (komunikasyon) ay
tinatalakay. Bilang imbakan at daluyan ng
impormasyon o kabatiran, ang midya ang nag-uugnay
sa naghahatid (sender) ng mensahe at tumatanggap
(receiver) nito. Kaya naman natatalakay sa usaping
midya ang mga sumusunod: 1) ang mga uri ng
pakikipag-ugnayan o komunikasyon, 2) ang ibat-ibang
uri ng midya bilang imbakan at daluyan ng
impormasyon, 3) ang hayag na impormasyon o
nilalaman na mensahe ng komunikasyon, at 4) ang
pahiwatig o di-hayag na mensahe na nasa likod ng
midya at sa likod ng mga tao o institusyon na
gumagamit ng midya
Sa ating panahon, ang midya ay nauungkat kapag
ang paksang pag-uusap at ugnayan (komunikasyon) ay
tinatalakay. Bilang imbakan at daluyan ng
impormasyon o kabatiran, ang midya ang nag-uugnay
sa naghahatid (sender) ng mensahe at tumatanggap
(receiver) nito. Kaya naman natatalakay sa usaping
midya ang mga sumusunod: 1) ang mga uri ng
pakikipag-ugnayan o komunikasyon, 2) ang ibat-ibang
uri ng midya bilang imbakan at daluyan ng
impormasyon, 3) ang hayag na impormasyon o
nilalaman na mensahe ng komunikasyon, at 4) ang
pahiwatig o di-hayag na mensahe na nasa likod ng
midya at sa likod ng mga tao o institusyon na
gumagamit ng midya.
Sa ating panahon, ang midya ay nauungkat kapag
ang paksang pag-uusap at ugnayan (komunikasyon) ay
tinatalakay. Bilang imbakan at daluyan ng
impormasyon o kabatiran, ang midya ang nag-uugnay
sa naghahatid (sender) ng mensahe at tumatanggap
(receiver) nito. Kaya naman natatalakay sa usaping
midya ang mga sumusunod: 1) ang mga uri ng
pakikipag-ugnayan o komunikasyon, 2) ang ibat-ibang
uri ng midya bilang imbakan at daluyan ng
impormasyon, 3) ang hayag na impormasyon o
nilalaman na mensahe ng komunikasyon, at 4) ang
pahiwatig o di-hayag na mensahe na nasa likod ng
midya at sa likod ng mga tao o institusyon na
gumagamit ng m

Activity 15
Direction: Watch the videos:
 https://youtu.be/5C8hLIpZcXo
https://youtu.be/RP0FvlTGuvo
Activity 16
Direction: Based on your reading, fill in the chart below with the details.

International With whom Where By When What Goal

Financial
Institution
1. IMF

Activity 17 Match the PIC

Direction: Match the pictures in column A to the descriptions in column B.

A B
a.
When people learned how to domesticate plants and animals,
they realized that it was much more productive than hunting. So
agricultural economy became the new trend. Farming helped
societies build surpluses and provide food for everyone.

1.
b. In 1800, industry came the new economic tool, like steam
engines, manufacturing and mass production. Factories popped
up and changed how work functioned. Productivity went up,
standard of living rose and people had access to a wider variety
of goods due to mass production.

2.
c. Technology has reduced the role of human labor and shifted it
from a manufacturing based economy to one that is based on
service work and the production of ideas rather than goods. This
has had a lot of residual effects on our economy. Computers
and other technologies are beginning to replace many jobs
because of automation or outsourcing jobs offshore.

3.

19

d. There are two competing economic models, that sprung up

around the time of the industrial revolution, as economic capital
became more and more important to the production of goods.
These were capitalism and socialism. Capitalism is a system in
which all natural resources and means of production are
privately owned (Aldama, 2018). Capitalism is an economic
system where private entities own the factors of production. The
4. four factors are entrepreneurship, capital goods, natural
resources, and labor. The owners of capital goods, natural
resources, and entrepreneurship exercise control through
companies. The individual owns his or her labor. The only
exception is slavery, where someone else owns a person's labor.
 Although illegal throughout the entire world, slavery is still widely
practiced. Socialism is an economic system where everyone in
society equally owns the factors of production. The ownership is
acquired through a democratically elected government. It could
also be a cooperative or a public corporation where everyone
owns shares. The four factors of production are labor,
entrepreneurship, capital goods, and natural resources(Kimberly
Amadeo, 2020)

Assess

Activity 18

Identification
Direction: Identify the following questions below

_______1. A forum for the meeting of representatives from 23 member countries. It

focused on trade goods through multinational trade agreements
conducted in many “rounds” of negotiation.
_______2. When was Bretton Wood system established?
_______3. It is an independent multilateral organization that became responsible
for the liberation of trade.
_______4. It is the second major economic revolution
_______5. A trade pact between the US, Mexico and Canada

TRUE or FALSE
Directions: Write TRUE if the statement is True, write the correct answer if the statement is False.

______1. Capitalism is a system in which all natural resources and means of

Production are privately owned.
______2. Robber Barons made distinction between two systems of globalization.
______3. OECD means Organization for Economic Corporation and Development
______4. The European Union is the world’s largest common market, composed of
28 European nations
______5. The Organization of Petroleum Exporting Countries (OPEC) was formed
because member countries wanted to increase the price of oil.

20

Lesson 3: GLOBAL INTERSTATE SYSTEM

Ask
1. Are there negative and positive outcomes in favor of all nations? Site possible outcomes.
2. Do you think political globalization will help nations in solving issues and crises to this
day? Why?
3. How can you describe the political structure of the Philippines in our local settings?
 Analyze

Activity 19 Narrative Essay

Direction: Write a narrative essay regarding about the current political situation of the Philippine
government. Essay will be composed of 300-500 words.

Rubric:

IDEAS VOICE WORD CHOICE CONVENTIONS

100% 5 5 5 5
The narrative shows an The writer’s voice The writers exceptional Punctuation and grammar are
unforgettable creates an word choice captures the correct. The writing is free from
experience. The details unforgettable experience. spelling errors. # of words are
make the story truly experience for the meet.
memorable. reader.
90% 4 4 4 4
The writer shows an The writer’s personal Specific nouns, strong The narrative has a few minor
interesting experience. voice creates interest verbs, and well-chosen errors in punctuation, spelling
Details help create the in the story. Dialogue modifiers create vivid grammar. # of words are meet.
interest. is used. pictures and express clear
feelings.
80% 3 3 3 3
The writer tells about an The writer’s voice Specific nouns, strong The writing has several errors
interesting experience. creates interest in the verbs are used. Modifiers in punctuation, spelling, or
More details are needed. story. More dialogue is are needed to create a grammar. # of words did not
needed. clearer picture. meet.
70% 2 2 2 2
The writer needs to A voice can usually be Strong nouns, verbs and Some errors confuse the
focus on one heard. More dialogue modifiers are needed to reader. # of words did not
experience. Some is needed. create a clear picture. meet.
details do not relate to
the story.

60% 1 1 1 1
The writer needs to The voice is weak. General and overused Many errors makes the writing
focus on one Dialogue is needed. words do not create a confusing and hard to read. #
experience. Details are clear picture. of words did not meet.
needed.

21

Peruse

Political Globalization
Political globalization refers to the growth of the worldwide political system, both in size and
complexity.

Political Institutions in International Relations

We will begin with the nation-state with emphasis on its conceptualization from the link of its two
components: nation and state. The next discussion will be devoted for the civil society and
international nongovernmental organization (INGOs). How these actors interact with one another
shapes the global interstate system.

A. The Nation-State
The nation-state has two basic components: nation and state. Nation "refers to a social group that
is linked through common descent, culture, language, or territorial contiguity" (Cerny 2007:854).
Also important in this context is national identity, the "fluid and dynamic form of collective identity,
founded upon a community's subjective belief that the members of the community share a set of
characteristics that make them different from other groups" (Guibernau 2007:849-53). While the
notion of a nation was highly circumscribed in the Middle Ages from the seventeenth century on
the idea of nation was broadened and enlarge by a number of forces (political leaders,
bureaucrats, the bourgeoside, the proletariat, intellectuals, etc.) that pushed for "nationalism," a
doctrine and/or political movement that seeks to make the nation the basis of a political structure,
especially a state.

The state emerged as a new institutional form in the wake of the demise of the feudal system. The
state offered a more centralized form of control (in comparison to, say, city-states) and evolved an
organizational structure with "relatively autonomous office-holders outside other socioeconomic
hierarchies, with its own rules and resources increasingly coming from taxes rather than from
feudal, personal, or religious obligations" (Cerny 2007:855). Also coming to define the state was its
claim to sovereignty. This involved the ability to engage in collective action both internally such as
collecting taxes and externally such as dealing with other states, to engage in warfare, among
others. The nation-state can therefore be seen as an integration of the subgroups that define
themselves as a nation with the organizational structure that constitutes the state.

In layman’s terms, state refers to a country and its government, i.e. the government of the
Philippines. A state has four attributes. First, it exercises authority over a specific population called
citizens. Second, it governs a specific territory. Third, a state has a structure of government that
crafts various rules that people (or society) follow. Fourth and the most crucial, the state has
sovereignty over its territory.

On the other hand, the nation, according to Benedict Anderson, is an “imagined community”. It is
limited because it does not go beyond a given “official boundary”, and because rights and
responsibilities are mainly the privilege and concern of the citizens of that nation.

B. Civil Society
While civility and civil society have ancient roots and examples (e.g., in Aristotle), John Keane
(2003) traces what we now consider civil society to the appearance of the West on the global
stage beginning around 1500. Until the nineteenth century (Lipshutz 2007:304-8), civil society was
not distinguished from a state dominated by laws. The philosopher G. W. F. Hegel played a key
role in

22
redefining civil society as that which exists between the family and the state; a realm that is not
only separated from them, but one where an individual can participate directly in various social
institutions. To Hegel, like Marx, Engels and Keane, the economy was considered part of civil
society.

John Keane (2003:8, italics in original) offers a definition of global civil society as: ―a dynamic
nongovernmental system of interconnected socio-economic institutions that straddle the whole
earth, and that have complex effects that are felt in its four corners. Global civil society is neither a
static object nor a fait accompli. It is an unfinished project that consists of sometimes thick,
sometimes thinly stretched and networks, pyramids and hub-and-spoke clusters of socio-
economic institutions and actors who organize themselves in new ways. These nongovernmental
institutions and actors tend to pluralize power and to problematize violence; consequently, their
peaceful or civil ‘effects are felt everywhere, here and there, far and wide, to and from local areas,
through wide regions, to the planetary level itself.

C. International Nongovernmental Organization (INGOS)

It is an international not-for-profit organization that perform public functions but are not established
or run by nation-states. INGOs are advocates for any number of things, but they also ―routinely
influence the domestic policies of states, participate in multilateral forums and institutions, promote
interstate cooperation, and facilitate political participation on the part of governments and the
public‖ (Warkentin 2007:883-7). The first modern INGOs are traceable to the nineteenth century
(the International Red Cross was founded in Switzerland in 1865), but they have boomed in recent
years. As their number, influence, and power have grown, they have become highly controversial.
Some see them as the harbingers of a future democratic civil society. Others are highly critical of
them. While many INGOs have grown highly influential, their power does not involve rational-legal
authority (Weber 1921;1968) such as having their leadership elected, but rather comes from
rational-moral authority (Thomas 2007:84-102).

Globalism
Globalism, at its core, seeks to describe and explain nothing more than a world which is
characterized by networks of connections that span multi-continental distances. Without science
neither globalism nor globalization would be conceivable; without technology they would not be
practical possibilities. The extent to which the internal ethics of science and the codes of behavior
of various engineering professions influence globalism and globalization, or the degree to which
independent ethical assessments should be brought to bear on all science, technology, and
globalist synergies, remains open to critical discussion. What follows is an analysis that aims to
provide a background for such considerations.

Globalization: Its Characteristics

There are innumerable definitions of the term globalization in the academic literature, but all, in
one way or another, refer to essentially the same phenomena. These are:
● The increased depth of economic integration or interdependence in the world economy as a
whole. Increased depth here usually refers to the integration of different parts of the world
and different working populations in the world in the process of economic production itself
(Dicken 2003).
● The central role played by electronic means of communication and information transmission
in facilitating this new deep integration of the world economy.
● The much-increased importance of global markets in both money and capital in the world
economy as a whole (Thurow 1996).
● The historically unprecedented scale of international population migration occurring in the
world economy in response (primarily) to new work opportunities created by the
development of a genuinely global economy.
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Globalization: Its Causes
There is broad unanimity on the origins and causes of globalization. As an economic process
globalization dates from the mid- or late 1970s when the postwar "long economic boom" came to
an end. The ending of the boom, and the initiation of a much slower growth trajectory for the world
economy as a whole, created much more competitive conditions for all firms operating in that
economy. The most common firm responses to these heightened competitive conditions were to:
Reduce labor costs by increased automation and "technologization" of production; Subcontract or
"outsource" design, transport, customer service, and even some managerial functions to
"independent" consultancy or other firms, thereby reducing "core" labor and payroll costs; Transfer
labor-intensive production activities, that could not be automated to lower wage regions, either in
the "home" country or outside the home country altogether.

Sharply increased economic inequalities both within and between different parts of the globe
occurring primarily as a result of the very social and spatial "unevenness" of the globalization
process.

What is Informationalism?

Technology, understood as material culture, is a fundamental dimension of social structure and

social change (Fischer, 1992: 1-32). Technology is usually defined as the use of scientific
knowledge to set procedures for performance in a reproducible manner. It evolves in interaction
with the other dimensions of society, but it has its own dynamics, linked to the conditions of
scientific discovery, technological innovation, and application and diffusion in society at large.
Technological systems evolve incrementally, but this evolution is punctuated by major
discontinuities, as Stephen J. Gould convincingly argued for the history of life (Gould, 1980).

Informationalism is the technological paradigm that constitutes the material basis of early 21st
century societies. Informationalism is a technological paradigm based on the augmentation of the
human capacity of information processing and communication made possible by the revolutions in
microelectronics, software, and genetic engineering. Computers and digital communications are
the most direct expressions of this revolution. Indeed, microelectronics, software, computation,
telecommunications, and digital communications at large, are all components of one same and
integrated system. Thus, in strict terms, the paradigm should be called ―electronic informational-
communicationalism. Reasons of clarity and economy advise however, to keep the concept of
informationalism, as it is already widely employed, and resonates in close parallel to industrialism.
Because information and communication are the most fundamental dimensions of human activity
and organization, a revolutionary change in the material conditions of their performance affects the
entire realm of human activity.

What is Industrialism?

Industrialism, associated with the Industrial Revolution, is a paradigm characterized by the

systemic organization of technologies based on the capacity to generate and distribute energy by
human-made machines without depending on the natural environment - albeit they use natural
resources as an input for the generation of energy. Because energy is a primary resource for all
activities, by transforming energy generation, and the ability to distribute energy to any location
and to portable applications, humankind became able to increase its power over nature, taking
charge of the conditions of its own existence (not necessarily a good thing, as the historical record
of 20th century barbarian acts shows).

24

Explore

Activity 20 FACT or BLUFF

Direction: Read the statements then each group will decide whether the answer will be “FACT” if
the statement is correct and “BLUFF” if the statement is wrong. If the statement is wrong,
kindly justify. A representative in each round shall answer the given statements.
 BLUFF BOARD

STATEMENTS ANSWERS

1. The United Nations is an international

organization founded in 1945 after the
Second World War by 51 countries committed
to maintaining international peace and
security, developing friendly relations among
nations and promoting social progress, better
living standards and human rights..In present
there are 200 countries in the United Nations
already. Is it a fact or a Bluff?

2. Working for a World Free of Poverty is World

banks motto. Is it a fact or a Bluff

3. North Atlantic Treaty Organization or

NATO has a fundamental goal that safeguard
the Allies' freedom and security by political
and military means. FACT OR BLUFF?

4. The United States is a member of European

Union. FACT OR BLUFF?

5. The World Trade Organization (WTO) is the

only international organization dealing with
the global rules of politics. Its main function is
to ensure that trade flows as smoothly,
predictably and freely as possible.

6. Why was g20 formed?

The G20 was created in response to both to
the financial crises that arose in a number of
emerging economies in the 1990s and to a
growing recognition that some of these
countries were not adequately represented in
global economic discussion and governance.
Fact or Bluff?

7. The International Criminal Court ICC was

established on june 24,2001 at Florence, Italy. 25
Fact or Bluff?

8. the 3 main goals of the United Nations?

What is the main goal of the United Nations?
Maintaining international peace and security,
developing friendly relations among nations
and promoting social progress, better living
standards and human rights. Fact or Bluff

9. The World Trade Organization is an

intergovernmental organization that was
established on January 1, 1995 and iis
concerned with the regulation of international
 trade between nations.

10. The World Intellectual Property Organization

is one of the 15 specialized agencies of the
United Nations with the Pursuant to the 1967
Convention Establishing the World Intellectual
Property Organization, WIPO was created to
promote and protect intellectual property (IP)
across the world by cooperating with
countries as well as international
organizations.

Activity 21
Direction: Further research/read on John Keane, Alexis de Tocqueville, and Mary Kaldor. Conduct
an imaginary interview with one of them. What do you think when we speak about
nationalism?

● What is necessary for the development of an international order?

● What do you think when we speak about League of Nations?
● What is the role of revolution in internationalism/globalism?

Supplemental learning materials:

https://www.youtube.com/watch?v=ppoKyDh4VK8 - a political war, The Treaty of Westphalia (1648)
https://www.youtube.com/watch?v=2vUrvugQrmk
https://www.youtube.com/watch?v=00ZEyubkQkM&t=355s
https://www.youtube.com/watch?v=Wm0Dzq-l4D8

Assess

Activity 22
Direction: Give what is asked per item:

_______1, It refers to a technological paradigm that replaces and subsumes the previous
paradigm of industrialism (Castells 1996). From metallurgy to transportation, industrialism was
marked by a revolution in materials engineering triggered by the Industrial Revolution.

26

_______2. Refers to the space for collective action around shared interests, purposes and values,
generally distinct from government and commercial for-profit actors

_______3. Not-for-profit voluntary associations operating at the international, transnational, or

global level, with members or participants from many countries.

_______4. People who wish the process of globalization to continue, and indeed intensify,
although they may also wish to have it politically regulated or controlled in various ways.

_______5. It is the whole system of human interactions and it is the main focus of the field of
International Relations.
______6. A society whose social structure is made of networks powered by microelectronics-
based information and communication technologies.

______7. A technological paradigm based on the augmentation of the human capacity of

information processing and communication made possible by the revolutions in
microelectronics, software, and genetic engineering?

______8. It is an international not-for-profit organization that perform public functions but are not
established or run by nation-states.

______9. A dynamic nongovernmental system of interconnected socio-economic institutions that

straddle the whole earth, and that have complex effects that are felt in its four corners.

______10. Refers to a social group that is linked through common descent, culture, language, or
territorial contiguity

27

Lesson 4: THE UN AND CONTEMPORARY GLOBAL GOVERNANCE

Ask

1. What is global governance? Is there a governing body to which global states adhere?
 Who are these global leaders?
2. What significant event led to the creation of the United Nations? Does the United Nations
able to deliver what it is created for? What benefits does it give to its member nations?
How about those non-member nations?
3. What are the roles and functions of the United Nations? Which of these functions is
prominent and has a greater impact on our nation considering our present economic
situation?
4. What are the challenges of global governance in the 21 st century?

Analyze

Activity 23

What is Global
governance?

Peruse

WHAT IS GLOBAL GOVERNANCE?

Global governance or world governance is a movement towards political cooperation

among transnational actors, aimed at negotiating responses to problems that affect more than one
state or region. Institutions of global governance—the United Nations, the International Criminal
Court, the World Bank, etc.—tend to have limited or demarcated power to enforce
compliance. Global governance involves multiple states including international organizations with
one state having more of a lead role than the rest. The modern question of world governance
exists

28

in the context of globalization and globalizing regimes of power: politically, economically, and
culturally. In response to the acceleration of worldwide interdependence, both between human
societies and between humankind and the biosphere, the term "global governance" may name the
process of designating laws, rules, or regulations intended for a global scale.

What is the role of global governance?

Global governance or world governance is a movement towards political cooperation among
transnational actors, aimed at negotiating responses to problems that affect more than one state
or region.
Global Governance in the Twenty-First Century

There is a series of specific factors behind the emergence of global governance. The first on the
list must be the declining power of nation-states. If states themselves were "highly contingence
and in flux" ( Cerny,2007), it would open the possibility of the emergence of some of the global
governance to fill the void.

A second factor is the vast flows of all sorts of things that run into and often right through the
borders of nation-states. This could involve the flow of digital information of all sorts through the
internet. It is difficult, if not impossible, for a nation-state involved in such flow, and in any case, it
is likely that such action would be politically unpopular and bring much negative reaction to the
nation-state involved in such an effort. For example, China's periodic efforts to interfere with the
internet have brought great condemnation both internally and externally.

Then, there is a mass migration of the people and their entry, often illegally, into various nation-
states. If states are unable to control this flow, then there is a need for some sort of global
governance to help deal with the problem. The flow of criminal elements, as well as their products
(drugs, laundered money, those bought and sold in sex trafficking, etc.), is strong in the call for
global governance( Levy and Sznaider,2006). In these cases and others, there is a need for some
degree of order, some sort of effective authority, and a least some potential for the improvement of
human life. These are but a few of things that can be delivered by some form of global
governance.

There are global problems that single nation-state cannot hope to tackle on their own. One is the
global financial crises and panic that sweep the world periodically, which nations are often unable
to deal with on their own ( Strange,1996), some nations(e.g., the nations of Southeast Asia) have
often been, and are being, victimized by such crises. Unable to help themselves such nations
require assistance from some type of global governance.

Traditional Challenges

External intervention can generally be described as an invasion by other countries. For example,
when Saddam Hussein was the ruler of Iraq in 1990, he decided he was going to take over the oil
field of Kuwait. He invaded Kuwait and took it over. As a result, he was dislodged by an
international coalition led by the United States.

Challenges form National/Identity movements

The next challenges are part of a national identity or movement. It is important to know that a
nation has a cultural identity that people attached to while a state is a definite entity due to its
specific boundaries. However, different people with different identities can live in different states.

29

Global Economics

The third major source of challenge from global economics. The global economy demands that
states conform to the rules of free-market capitalism. Government austerity comes from
developments of organizations that cooperate across countries, such as WTO and regional
agreements, such as NAFTA, the European Union(EU), and the Association of Southeast Asian
Nations(ASEAN).

Global social movements

We have global social movements. Most of the time they are not seen as a threat but they
challenge state sovereignty. Social movements are movements of the people that are
spontaneous or that emerge through enormous grassroots organization. These social movements
are transnational movements which means they occur across countries' borders. Therefore, states
have less control over them.

THE UNITED NATIONS

The United Nations (U.N.) is a global diplomatic and political organization dedicated to
international peace and stability. The U.N. was officially established in 1945 following the horrific
events of World War II when international leaders proposed creating a new global organization to
maintain peace and avoid the abuses of war. The U.N. initially had just 51 member states; today,
the organization, which is headquartered in New York City, has 193 members. Major U.N.
initiatives include preventing conflict by exploring options to ensure peace, providing food and
medical assistance in emergencies, and offering humanitarian support to millions of people around
the world. While the United Nations is sometimes criticized for its policies, bureaucracy, and
spending, the organization has accomplished hundreds of successful peacekeeping missions.

DIVISIONS OF THE UN

1. The General Assembly

The General Assembly (GA) is the UN's ―main deliberative policymaking 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 are made by a simple majority of votes by the
member-nations which currently has 193 members. The General Assembly elects the
president which will serve for one year. All the member-nations have their seats in the
assembly.

2. The Security Council

The Security Council is considered as the most powerful organization in the UN. This body
consists of (15) member states. The General Assembly elects the (10) members while the
remaining (5) are permanent members namely; China, France, Russia, the United Kingdom, and
the United States. They have been permanent members of this organization since the creation of
the U.N. and cannot be replaced through an election. U.N. charter provides for the pacific
settlement of disputes through the Security Council's intervention using negotiation, mediation,
arbitration, and judicial decision. The Security Council is tasked to investigate any dispute or
situation where it is likely to put international peace and security at risk and to call upon parties in
dispute to settle peacefully and thus recommends methods of adjustment. In worst scenarios, the
Council may resort to imposing sanctions and even to authorize the use of force. Member nations
who attempt to use military interventions will seek the approval of the Security Council and thus
make it legal. Hence, the Security Council has immense power.

30

3. The Economic and Social Council

The Economic and Social Council is U.N.'s principal body for coordination, policy review,
policy dialogue, and recommendation 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 ECOSOC is at the heart of the United Nations system to advance the three dimensions of
sustainable development – economic, social, and environmental.  

4. The International Court of Justice

 The International Court of Justice is tasked 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 specializedagencies. The major court cases 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. The SC may enforce the rulings of the
ICJ, but this remains subject to the P5's veto power.

 5. The Secretariat
 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 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.

Explore

To have a better understanding of the topic, let us view this PowerPoint presentation using this
link.
https://www.slideshare.net/ebbf/global-governance-in-the-21st-century-the-future-at-risk-
augusto-lopez-claros

Assess

Activity 24
A. Direction: Identify the word/words being referred to in every item.
______1. It is the process of designating laws, rules, or regulations intended for a global
scale.
______2. It is the demands of states to conform to rules of free-market capitalism.
______3. They are not seen as a threat but they definitely challenge state sovereignty.
______4. It is a prominent International Organization dedicated to peace and security.
______5. It is considered as the most powerful organization in the United Nations.

31
B. Direction: Choose the letter of the correct answer.

1. He was the ruler of Iraq in 1990.

a. Cerny c. Sario Huller
 b. Saddam Hussein d. Bauman

2. These are the organizations that cooperate across countries, EXCEPT;

a. NFTA c. EU
b. ASEAN d. WTU

3. One of the major sources of challenges in the twenty-first century.

a. Global social movement’s c. Global economics
b. Traditional Challenges d. Identity movements

4. It involves multiple states including international organizations with one state having
more of a lead role than the rest.
a. Global c. Global economy
b. Global governance d. Global social movements

5. It aimed at negotiating responses to problems that affect more than one state or region.
a. Global economy c. Global governance
b. Traditional challenges d. Global social movements.

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