CONTEMPORARY WORLD

Lecture 1

MA. SOLITA J. VIRTUDAZO

Asst. Professor IV
Unit 1 – UNDERSTANDING GLOBALIZATION
Lesson 1 – Defining Globalization
What is globalization?
Definition: The process of expanding various sociocultural and socio-
ecological processes from the national to international and transcultural level (Al-
Rodhan, 2006)

Global Connected Index – measurement of the flows and interconnectedness

of a country to other global players through exchanges in trade, capital, people, and
information (Altman, et al., 2018)

Extent of globalization – How connected we are to the rest of the world?

Unit 1 – UNDERSTANDING GLOBALIZATION
Lesson 2 – Interrogating Globalization
GLOBALIZATION

a term used to describe how trade and technology made the

world into a more connected and interdependent place; the speed-up of
movements and exchanges; the growing interdependence of the world's
economics, cultures and populations; the process by which ideas,
knowledge, information, goods and services spread around the world;
commutative and cumulative process; spread of new forms of non-
territorial social activity; the connection of different parts of the world;
the process of expanding various sociocultural and socio-ecological
processes from national to international and transcultural level.
Word Cloud
Unit 1 – UNDERSTANDING GLOBALIZATION
Socio-economic changes in globalization
Major structural changes in globalized society:
– growth of trans- and supra-territorial connectivity
– shift from capitalism to hyper-capitalism focused on production
– a move from nationalism toward identifying pluralism and hybridity
– from rationalism toward knowledge reflexivity

Factors driving globalization

– reduction of trade barriers
- GATT organized by rich countries in 1947; later become the WTO.
– technological developments – facilitating faster communication & access to data
Unit 1 – UNDERSTANDING GLOBALIZATION
Some authors highlight the + impacts
– high employment and balance of trade (BOT)

Others exposed its negative impacts

– growing inequities between countries
– widening the gap between the rich and the poor
– increased exploitation
Unit 1 – UNDERSTANDING GLOBALIZATION
Lesson 2 – Interrogating Globalization
Definition
Development paradigm – an idea of prescribed path to attain development through a certain set of
activities (Bellu, 2011).

Economic Globalization, Cultural Globalization, and Political Globalization

– Globalization is primarily an economic process; the drive toward the integration of economies
throughout the world. This is achieved through trading and financial flows across countries’
borders (IMF, 2000).
- Globalization and its accompanying processes point to a paradigm about development
(Pongsapich). It is built on the belief that development can be achieved through rapid economic
growth, made possible because of economic integration; growth-oriented model of development,
based on GDP.
Unit 1 – UNDERSTANDING GLOBALIZATION
Lesson 2 – Interrogating Globalization
Flows in the Age of Globalization
Trading
– International trading, or the economic exchanges and deals between countries, is enabled by
international fiscal payments where private banks and the central banks of particular nations play
important roles (Encyclopedia Britannica, n.d.).
- Global trading: importation and exportation; increase world trade from 1971-1999; biggest
increase in the export of manufactured goods while export of primary commodities (e.g., food and
raw materials) often produced by poor countries declined (IMF, 2000).
Capital Movement
Increase in capital flows to poor countries during the 1990s, particularly foreign investments.
Foreign investment = commercial loans (money lent to foreign businesses or governments),
official flows (development aid or money granted by rich countries to dev countries), or foreign
direct investment (foreign businesses/investments in another country, including TNCs).
Unit 1 – UNDERSTANDING GLOBALIZATION
Lesson 2 – Interrogating Globalization
Movement of People
– People migrating to other countries in search of better employment, opportunities, and quality of
life.
– OFWs, Filipino diaspora

Cultural Globalization and Political Globalization

Increased interdependence of economies in the world also continues with globalization
of culture and politics.
Cultural globalization = increasing contact between people and their culture
Political globalization = enlargement of the international political system and its
establishments, where interregional dealings, including trade, are managed (Modelski,
Devezas and Thomson, 2007:59).
Unit 1 – UNDERSTANDING GLOBALIZATION
Assumptions Behind the Pursuit of Globalization
ASSUMPTION
Rapid econ growth will lead to dev
Trading will bring prosperity
Poor countries will benefit from borrowed funds
Poor countries need to catch up with rich countries by
implementing econ policies toward econ integration
Removal of tariffs, quota can ease global trading and will
lead to econ integration
CRITICISM
Econ growth is just one aspect of dev, other aspirations
are:
- Achievement of material needs and broader soc
objectives;
- Social and econ justice and equity;
- Welfare, adequate provision of basic services;
- Equitable distribution of opportunities, income, and wealth
Trading benefits some more than others
Borrowing of poor countries are coupled with conditions
(SAP) which will make poor countries compromise
spending for social services and welfare.
It will be difficult for poor countries to catch up because
they are caught in unequal exchanges and
underdevelopment.
Reduction of tariffs in the Phil since the 1980s led to unfair
competition of local industries with imports.
 Textbook Reference

Botor, NJB, et al. (2020). Course Module for Contemporary World. Rex Book
Store. 305 pp.