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.
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.
THE STRUCTURES OF
GLOBALIZATION
WHAT IS GLOBALIZATION?
INTENDED LEARNING OUTCOMES

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.
GLOBALIZATION MEANING

Watch this video about globalization.

https://www.youtube.com/watch?v=JJ0nFD19eT8&t=130s
GLOBALIZATION MEANING

What word can you give to describe globalization?

How does the video describe globalization?
MEANING OF GLOBALIZATION

Let’s start with the story of Gio and Latif and the Laksa.
https://www.youtube.com/watch?v=0AS65cI0pJA
GLOBALIZATION IN THE STORY

❑ It was through such friendship that one was able to appreciate the
meaning and impact of globalization.
❑ The story of Gio and Latif shows how globalization operates at multiple,
intersecting levels through mass media. The spread of Filipino TV into
Malaysia suggests how fast this popular culture has proliferated and
crisscrossed all over Asia.
GLOBALIZATION IN THE STORY

❑ The Model UN activity is an international competition about international

politics.
❑ The competition was held in Sydney – a global city that derives in 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.
GLOBALIZATION IN THE STORY

❑ After the competition, the two 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.
STRUCTURE OF GLOBALIZATION

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.
STRUCTURE OF GLOBALIZATION

Example:
Governments that decide to welcome the 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 lands,
also called “urban poor communities,” are being evicted by the government.
GLOBALIZATION: A WORKING DEFINITION

1. Is globalization good or bad? What do you think?

2. Is it beneficial or detrimental? What do you
think?
WHAT IS GLOBALIZATION?

• Globalization is a process of interaction and integration among the people,

companies, and governments of different nations, a process driven
by international trade and investment and aided by information technology.
This process has effects on the environment, on culture, on political systems,
on economic development and prosperity, and on human physical well-being in
societies around the world.

https://www.globalization101.org/what-is-globalization/
WHAT IS GLOBALIZATION?

Globalization is the word used to describe the growing

interdependence of the world’s economies, cultures, and populations,
brought about by cross-border trade in goods and services,
technology, and flows of investment, people, and information.

https://www.piie.com/microsites/globalization/what-is-globalization
GLOBALIZATION: A WORKING DEFINITION

Manfred Steger describes globalization as a process.

It refers to the expansion and intensification of social relations and
consciousness across world-time and world-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.
GLOBALIZATION: A WORKING DEFINITION

Connections occur at different levels.

Example:
1. Social media established new global connections between people.
2. International groups of non-governmental organizations (NGOs) are networks that
connect a more specific group – social activists and workers form different corners of
the globe.
GLOBALIZATION: A WORKING DEFINITION

Intensification refers to the expansion, stretching and acceleration of

these networks. Not only are global connections multiplying, they also
become more closely-knit and expanding their reach.
Example:
There is a strong financial market connecting London and New York.
GLOBALIZATION: A WORKING DEFINITION

Manfred Steger notes that “globalization processes do not occur

merely at an objective, material level but they also involve the
subjective plane of human consciousness.”
GLOBALIZATION: A WORKING DEFINITION

Manfred Steger posits that his definition of globalization must be

differentiated with an ideology he calls globalism.
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.
GLOBALIZATION: A WORKING DEFINITION

Arjun Appadurai describes globalization as 'scapes" manifests into" different

kinds of globalization occur on multiple and intersecting dimensions of
integration .
There are different kinds of scapes – ethnoscape, technoscape, mediascape,
financescape and ideoscape.
1. Ethnoscape refers to the global movement of people.
2. Technoscape refers to the circulation of mechanical goods and software.
GLOBALIZATION: A WORKING DEFINITION

3. Mediascape refers to the flow of culture.

4. Financescape denotes the global circulation of money.
5. Ideoscape refers to the realm where political ideas move around.
These various scapes are thus distinct windows into the broader phenomenon of
globalization.
Appadurai’s argument is simple: there are multiple globalizations.
The Globalization
of World
Economics
The Effects of COVID-19 to World Economy

Watch the video. Be able to explain the effects

of COVID 19 to World Economy

https://www.youtube.com/watch?v=f9v6givfTE
A&t=6s
What are the effects or impacts of
COVID-19 to world economy?
The Globalization of World Economics

What is Economic Globalization?

What is Economic Globalization?
Economic globalization is an Irreversible Trend

Economic globalization refers to the increasing

interdependence of world economies as a result of the
growing scale of cross-border trade of commodities and
services, flow of international capital and wide and rapid
spread of technologies.

Economic Globalization - the United Nations

www.un.org › policy › cdp › cdp_background_papers
Economic Globalization

► International Monetary Fund (IMF) regards it 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.
❑ There is a drastic economic change that is occurring throughout
the world.
❑ IMF – the value of trade (goods and service) increased as
percentage of world GDP.
Economic Globalization
Example:
World’s GDP in 1980 is 42.1%. In 2007, 62.1%
What does it mean?

1. There is an increase in trading system.

2. It means investments are moving all over the world at faster speeds.

❑ United Nations Conference on Trade and Development (UNCTAD)

- Foreign investments increased
- 57 Billion US Dollars in 1982. In 2015, the number increased to 1.76
Trillion Dollars
Economic Globalization

► There is also an increased in speed and

frequency of trading. At present,
supercomputers execute millions of stock
purchases and sales between different cities in a
matter of seconds through a process called high
frequency trading.
Historical Background of Economic
Globalization

How did economic globalization start?

Historical Background of Economic
Globalization

To trace the historical background of

economic globalization would start
with the earliest known international
trading system.
International Trading System

The oldest known international trade route was the Silk Road – a
network of pathways in the ancient world that spanned from China
to Middle East and Europe".
The most profitable products traded through this network was Silk.
Traders used the Silk Road regularly from 130 BCE when the Chinese
Han dynasty opened trade to the West until 153 BCE when the
Ottoman Empire closed it.
International Trading System

Was the international route,

Silk Road, truly global?
Why? Why not?
International Trading System
► No. It had no ocean routes that could reach the American continent.

When did full economic globalization

begin?
International Trading System

Galleon Trade

Historians Dennis Flynn and Arturo Giraldez claimed that 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"
International Trading System
1571 – Galleon was established. It connected Manila,
Philippines and Acapulco, Mexico. That was the first time
that the Americans were directly connected to Asian
trading routes.

Galleon Trade is considered as the first trading system that

connects Asian countries to America in general and the
Philippines and Mexico in particular.
The Galleon trade was part of the age of mercantilism.
International Trading System
th
16th-18 Century

Period of Mercantilism – a system of global trade with

❑
multiple restrictions.

❑ Countries in Europe with one another to sell more goods

as a means to boost their country’s income called
monetary reserves.

To defend their products, regimes (mainly monarchies)

❑
International Trading System
19th Century

❑ 1867 – an open trade system emerged.

❑ United States and United Kingdom adopted the gold standard at international
monetary conference in Paris.

❑ Gold Trade - The United Kingdom, United states and

other European nations adopted the gold standard as a
common basis for currency prices and fixed
exchange-rate system -all based on the value of gold.
❑ The goal was to create a common system that would allow for more efficient trade
and prevent the isolationism of the mercantilist era.

This compelled countries to back their currencies with fixed gold reserves.
International Trading System
❑ Many countries abandon the gold standard system when countries depleted
their gold reserves to fund their armies during World War 1.
❑ The global economic crisis called the Great Depression started in 1920 up to
1930 was considered the worst and longest recession ever experienced by the
Western world. Economist blamed the gold standard system as the caused of
depression since it limited the amount of circulating money and therefore
reduced demand and consumption.
❑ The US recovered from economic crisis when it abandoned gold standard
system according to Economist historian Barry Eichengreen.

20th Century
The world economy operates based on what are called fiat currencies –
currencies that are not backed by precious metals and whose value is
determined by their cost relative to other countries.
International Trading System

Fiat currencies – 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
❑ The Bretton Woods system was inaugurated in 1944 during the
United Nations Monetary and Financial Conference.
❑ The Bretton Woods System was "largely influenced by the ideas of
British Economist John Maynard Keynes who assumed three things:

1) Economic crisis occurs 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) As prices of commodities increased, companies would earn
more, and would have more money to hire workers .
The Bretton Woods System
2 Financial Institutions created by delegates of Bretton Woods Conference:

1. International Bank for Reconstruction and Development IBRD or World Bank) –

responsible for funding postwar reconstruction projects.

2. International Monetary Fund (IMF) – the global lender of last resort to prevent
individual countries from spiraling into credit crises.
To this day, both institutions remain key players in economic globalization
Shortly after Bretton Woods, General Agreement on Tariffs and Trade (GATT) was
created in 1947. The main purpose was to reduce tariffs and other hindrances to
free trade.
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.
► In early 1970s, the “oil embargo” by OAPEC and the crashed of the stock
markets affected the Western economies.
► The result was phenomenon that Keynesian economic predicted a
phenomenon called stagflation in which a decline in economic growth and
employment (stagnation) takes place alongside a sharp increase in prices
(inflation).
Neoliberalism and Its Discontents
► Neoliberalism emerged as a new form of economic thinking. The policies
forwarded came to be called Washington Consensus
► Economists 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 appeal of Neoliberalism was in its simplicity. Its advocates like US President
Ronald Reagan and British Prime Minister Margaret Thatcher justified reduction of
government spending by comparing national economies to households.
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.
► The challenges are countries like Spain and Greece are heavily indebted (almost like
Third World countries). (1) Learn from Greece has been forced by Germany to and the
IMF to cut back their social and public spending.
► The reduction in government spending has showed down growth and ensured high
levels of unemployment.
► In Europe, the continuing economic crisis has sparked a political upheaval.
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.
HISTORY OF GLOBAL POLITICS:
CREATING AN INTERNATIONAL ORDER
INTENDED LEARNING OUTCOMES

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

1. identify the key events in the development of international relations;
2. differentiate internationalization from globalization;
3. define state and nation; and
4. distinguish between the competing conceptions of internationalism.
HISTORY OF GLOBAL POLITICS:
CREATING AN INTERNATIONAL ORDER

What does the word politics mean?

HISTORY OF GLOBAL POLITICS:
CREATING AN INTERNATIONAL ORDER
Politics
- the activities associated with the governance of a country or other
area, especially the debate or conflict among individuals or parties
having or hoping to achieve power.
- the activities of governments concerning the political relations
between countries.
- the academic study of government and the state.
HISTORY OF GLOBAL POLITICS:
CREATING AN INTERNATIONAL ORDER

International relations refers to the study of the political,

military, and other diplomatic engagements between two or
more states.
Internationalization refers to the deepening interactions
between or among states.
HISTORY OF GLOBAL POLITICS:
CREATING AN INTERNATIONAL ORDER
Question:
Is internationalization just the same with globalization?
Is it equal with globalization?

Let’s have a poll survey of your answer.

HISTORY OF GLOBAL POLITICS:
CREATING AN INTERNATIONAL ORDER
HISTORY OF GLOBAL POLITICS:
CREATING AN INTERNATIONAL ORDER

❑ Internationalization does not equal globalization; it is rather a major

part of globalization.
❑ Internationalization is one window to view the globalization of politics.
❑ The international relations of states today can be largely defined by the
events as far as 400 years ago.
THE ATTRIBUTES OF TODAY'S GLOBAL SYSTEM

World politics today has four key attributes:

1. There are countries or states that are independent and govern
themselves.
2. These countries interact with each other through diplomacy.
3. There are international organizations, like United Nations (UN) that
facilitate these interactions.
4. Beyond simply facilitating meetings between states, international
organizations also take on lives of their own.
THE ATTRIBUTES OF TODAY'S GLOBAL SYSTEM

❑ What is the difference between nation and state?

❑ The nation-state is composed of two non-interchangeable terms.
❑ Not all states are nations and not all nations are states.
- E.g. Scotland has its own flag and national culture; however, it belongs to a state
called the United Kingdom.
❑ There are states with multiple nations, there are also single nations with multiple
states.
- E.g. Korea as a nation is divided into North and South, Chinese nation refers to both
the People’s Republic of China (Mainland) and Taiwan.
THE ATTRIBUTES OF TODAY'S GLOBAL SYSTEM
❑ State refers to a country and its government. E.g. Philippine government
❑ Nation is an “imagined community” according to Benedict Anderson.

❑ A state has four attributes:

1. It exercises authority over a specific population.
2. It governs a specific territory.
3. It has a structure of government and crafts various rules that people (society) follow.
4. It has sovereignty over its territory. Sovereignty refers to internal and external
authority.
THE INTERSTATE SYSTEM
❑ The Treaty of Westphalia
- The origin of the present-day concept of sovereignty
- It was a set of agreement signed in 1648 to end the thirty years’ war
among the major continental powers of Europe.
- It was a system designed or agreed upon by its members – Holy Roman
Empire, Spain, France, Sweden, and Dutch Republic.
THE INTERSTATE SYSTEM
The one who challenged the Treaty of Westphalia
THE INTERSTATE SYSTEM
❑ Napoleon Bonaparte
- He challenged the Westphalian system.
- He spread the principles of the French Revolution – liberty, fraternity, and equality –
to the rest of Europe and thus challenged the power of kings, nobility, and religion in
Europe.
- Napoleonic Wars lasted from 1803-1815 with Napoleon and his armies marching
all over much of Europe.
THE INTERSTATE SYSTEM
❑ The Concert of Europe System

- It was an alliance of great powers – The United Kingdom, Austria, Russia, and
Prussia.
- They sought to restore the world of monarchical, hereditary, and religious
privileges of the time before the French Revolution and the Napoleonic Wars.
- Austrian diplomat Klemens von Metternich was the system’s main architect.
INTERNATIONALISM
❑ Internationalism
- A system of heightened interaction between various sovereign states,
particularly the desire for greater cooperation and unity among states and
people.
- Its principle is divided into two broad categories: (1.) Liberal
Internationalism (2.) Socialist Internationalism
INTERNATIONALISM

❑ Liberal Internationalism
- Immanuel Kant, the 18th century German philosopher, was the first major thinker of
liberal internationalism.
- Kant likened states in a global system of people living in a given territory.
- He believed that without a form of world government, the international system would be
chaotic. Therefore, states must give up some freedoms and establish a continuously growing
states consisting of various nations which will ultimately include the nations of the world. In
short, Kant imagined a form of global government.
INTERNATIONALISM

❑ Giuseppe Mazzini
- The 19th century Italian Patriot. The first thinker to reconcile nationalism
with liberal internationalism.
- He was both an advocate of the unification of the various Italian-speaking
mini-states and a major critic of the Matternich system.
- He believed in a Republican government (without kings, queens, and
hereditary succession) and proposed a system of free nations that
cooperated with each other to create an international system.
INTERNATIONALISM
❑ Wilson Woodrow
-The 20th century’s most prominent internationalist.
- He saw nationalism as a prerequisite for internationalism.
- Because of his faith in nationalism, he forwarded the principle of self-determination, the
belief that the world’s nations had a right to a free, and sovereign government.
- He became the most notable advocate for the creation of the League of Nations.
- At the end of World War 1 in 1918, he pushed to transform the League into a venue for
conciliation and arbitration to prevent another war.
- For his efforts, Wilson was awarded the Nobel Peace Prize in 1919.
INTERNATIONALISM

❑ Kant emphasized the need to form common international principles.

❑ Mazzini enshrined the principle of cooperation and respect among
nation-states.
❑ Wilson called for democracy and self-determination.
❑ These ideas would re-asserts themselves in the creation of the
United Nations.
 INTERNATIONALISM
❑ Karl Max
- He was a German socialist philosopher; one of Mazzini’s biggest critic.
- He was an internationalist who did not believe in nationalism.
- He placed premium on economic equality; he did not divide the world into countries, but into
classes.
- The capitalist class referred to the owners of factories, companies, and other “means of
production.”
- The proletariat class included those who did not own the means of production, but instead,
worked for the capitalists.
INTERNATIONALISM
❑ The Socialist International
- Marx died in 1883. His followers concretized his vision by establishing international
organization.
- The Socialist International (SI) was a union of European socialist and labor parties
established in Paris in 1889. Although short-lived, the SI’s achievements included the
declaration of May 1 as Labor Day and the creation of an International Women’s Day.
- It campaigned for an 8-hour workday.
- Vladimir Lenin established the Communist International (Comintern)
- Joseph Stalin re-established the Comintern as the Communist Information Bureau
(Cominform)
Thank You!
THE UNITED NATIONS
AND CONTEMPORARY
GLOBAL GOVERNANCE
INTENDED LEARNING OUTCOMES

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

1. define global governance;
2. identify the roles and functions of the United Nations; and
3. determine the challenges of global governance in the 21st
century;
THE UNITED NATIONS AND
CONTEMPORARY GLOBAL GOVERNANCE

What does global governance refer to?

THE UNITED NATIONS AND
CONTEMPORARY GLOBAL GOVERNANCE
The fact that states in an international order continue to adhere to
certain global norms means that there is a semblance of world order
despite the lack of a single world government.
Global governance refers to the various intersecting processes that
creates an international order.
THE UNITED NATIONS AND
CONTEMPORARY 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. Wikipedia
THE UNITED NATIONS AND
CONTEMPORARY GLOBAL GOVERNANCE

Is there already an existing Global Government?

Let’s have a poll survey of your answer.

WHAT IS AN INTERNATIONAL ORGANIZATION
(IO)?
WHAT IS AN INTERNATIONAL ORGANIZATION
(IO)?

It refers to international intergovernmental organizations or groups

that are primarily made up of member-states.
It is not merely an amalgamations of various state interests.
It can thus become influential as independent organizations.
WHAT IS AN INTERNATIONAL ORGANIZATION?

International relations scholars Michael N. Barnett and Martha Finnemore

listed the following powers of IOs.
1. IOs have the power of classification.
They create powerful standard. Example: UN High Commissioner for
Refugees (UNHCR) defines what a refugee is. And since states are required
to accept refugees entering their borders, this power to establish identity
has concrete effects.
WHAT IS AN INTERNATIONAL ORGANIZATION?

2. IOs have the power to fix meanings.

This is a broader function related to the first. Terms like “security” or
“development” need to be well-defined. States, organizations and individual
view IOs as legitimate sources of information. Example: UN defined security
as not just safety from military violence, but also safety from environmental
harm.
WHAT IS AN INTERNATIONAL ORGANIZATION?

3. IOs have the power to diffuse norms.

Norms are accepted codes of conduct that may not be strict law, but
produce regularity in behavior. IOs do not only classify and fix meanings;
they also spread their ideas across the world, thereby establishing global
standards.
 THE UNITED NATIONS

What does UN do?

Mechanics:
1. Watch and enjoy the video.
2. Explain the important function of the United Nations according to the
video clip.
3. Prepare for a-minute presentation of your output.
Video link: https://www.youtube.com/watch?v=XucDIQXMp2c
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 to push for the formation
of a more lasting international league. The result was the creation of the
UN. Its primary goal is to avert another global war"
THE UNITED NATIONS

Five active Organs of UN

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 UNITED NATIONS

1. General Assembly (GA)

- The main deliberative policymaking and representative organ.
- Decisions on important questions require two-thirds majority of the GA.
- Annually, the assembly elects a GA President to serve a one-year term of
office.
- There are 193 member-states.
- Filipino diplomat Carlos P. Romulo was elected GA president from
1949-1950.
THE UNITED NATIONS

2. Security Council (SC)

- Considered as the most powerful organ
- The permanent 5 members (P5) are – China, France, Russia, United
Kingdom, and United States
- The GA elects 10 other members for a two-year term.
THE UNITED NATIONS

3. Economic and Social Council (ECOSOC)

- 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.
- It is the UN’s central platform for discussion on sustainable development.
THE UNITED NATIONS

4. International Court of Justice

- The task is to settle, in accordance with international law, legal disputes
submitted to it by states and to give advisory opinions referred to it by
authorized United Nations organs and specialized agencies.
THE UNITED NATIONS

5. The Secretariat
- It consists of the “Secretary-General” and tens of thousands of
international 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.
CHALLENGES OF THE UNITED NATIONS

The biggest challenge of the United Nations is related to issues of security.

The need to respect state sovereignty.
UN security Council is tasked with authorizing international acts of military
intervention.
• Kosovo War in late 90s
• Civil war in Syria
• 2001 War in Iraq