TOPIC 1

DEFINITIONS OF GLOBALIZATION

Globalization was given various yet acceptable definitions over the years. None of the definitions
given is considered wrong. In fact, when you define globalization based on the concepts you listed
above, and you could support them with facts or experiences, then you could add to other existing
definitions available now.

One definition you might have encountered is this, globalization is a 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 (Peterson Institute of International Economics). Based on this definition, it can be
perceived that globalization could be the result of the interdependence of countries among
countries when it comes to economy, culture, and population.

Another definition is given by Daly (1999) in which globalization is considered to be an inevitable

wave of the future. It means that it is an integral part of the development of a certain country or a
nation. In this sense, globalization is seen as the same as internationalization. However, Daly
(1999) provided a clear line that separates the two. According to him, internationalization refers to
the increasing importance of international trade, international relations, treaties, alliances, etc.
Inter-national, of course, means between or among nations. The basic unit remains the nation,
even as relations among nations become increasingly necessary and important. While,
globalization refers to global economic integration of many formerly national economies into
one global economy, mainly by free trade and free capital mobility, but also by easy or
uncontrolled migration. It is the effective erasure of national boundaries for economic purposes.

Based on the two definitions above, globalization is seen as something that is mainly related to
economics hence coining the concept global economy.

However, Claudio & Abinales (2018) claim that globalization is best described or defined by Steger
(2005). In fact, Claudio & Abinales consider the definition scholarly. “Globalization, says Steger
(2005), is the expansion and intensification of social relations and consciousness across world-
time and across world-space.” In the definition of Steger (2005), there are two concepts mentioned
that you have not encountered in the first two definitions presented earlier, expansion and
intensification. Moreover, social relations and consciousness are other concepts that tell us how
globalization affects people. While world-time and world-space show the globalization makes the
world borderless.

Steger (2005) explains how expansion and intensification work in globalization. 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.” In addition,
intensification refers to the expansion, stretching, and acceleration of these networks. Not only are
global connections multiplying, but they are also becoming more closely-knit and expanding their
reach (Claudio & Abinales, 2018).

GLOBALIZATION VS. GLOBALISM

With the definition postulated by Steger, he suggests that globalization must be differentiated from
the ideology, globalism. He explains that while globalization represents the many processes that
allow for the expansion and intensification of global connections, globalism, on the other hand, 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. It is a common
belief forwarded in media and policy circles.
PHILOSOPHIES OF THE VARYING DEFINITIONS OF GLOBALIZATION

Philosophies of the Varying Definitions of Globalization (Steger, 2005)

1. Globalization is about the liberalization and global integration of markets

Globalization means opening doors to free market. This ideology is anchored in neoliberalism
where it supports the importance of free markets and free trade. This idea, as explained by Steger,
can only be realized in a democratic society that values and protects individual freedom.

2. Globalization is inevitable and irreversible

“Today we must embrace the inexorable logic of globalization .... Globalization is irreversible.
Protectionism will only make things worse.” “Globalization is inevitable and inexorable and it is
accelerating .... Globalization is happening, it’s going to happen. It does not matter whether you
like it or not, it’s happening, it’s going to happen.” “We cannot simply wish away the process of
globalization. It is a reality of a modern world. The process is irreversible.” Claim President Bill
Clinton, Frederick W. Smith and Manuel Villar, respectively.

3. Nobody is in charge of globalization

The third mode of decontesting globalization hinges on the classical liberal concept of the ‘self-
regulating market’. The semantic link between ‘globalization market’ and the adjacent idea of
‘leaderlessness’ is simple: if the undisturbed workings of the market indeed preordain a certain
course of history, then globalization does not reflect the arbitrary agenda of a particular social
class or group. In other words, globalists are not ‘in charge’ in the sense of imposing their own
political agenda on people. Rather, they merely carry out the unalterable imperatives of a
transcendental force much larger than narrow partisan interests (Steger, 2005).

4. Globalization benefits everyone (…in the long run)

Economic growth and progress in today’s interdependent world are bound up with the process of
globalization. Globalization provides great opportunities for the future… Its many positive aspects
include an unprecedented expansion of investment and trade; the opening up to international
trade of the world’s most populous regions and opportunities for more developing countries to
improve their standards of living; the increasingly rapid dissemination of information, technological
innovation, and the proliferation of skilled jobs. These characteristics of globalization have led to a
considerable expansion of wealth and prosperity in the world. Hence, we are convinced that the
process of globalization is a source of hope for the future (Lyon, 1996).

5. Globalization furthers the spread of democracy in the world

The fifth decontestation chain links ‘globalization’ and ‘market’ to the adjacent concept of
‘democracy’, which also plays a significant role in liberalism, conservatism, and socialism.
Globalists typically decontest ‘democracy’ through its proximity to ‘market’ and the making of
economic choices—a theme developed through the 1980s in the peculiar variant of conservatism
Freeden calls ‘Thatcherism’. Indeed, a careful discourse analysis of relevant texts reveals that
globalists tend to treat freedom, free markets, free trade, and democracy as synonymous terms
(Steger, 2005).

6. Globalization requires a global war on terror

Like the previous philosophies, this final decontestation chain attests to globalism’s political
responsiveness and conceptual flexibility. It combines the idea of economic globalization with
openly militaristic and nationalistic ideas associated with the American-led global War on Terror.
At the same time, however, it possesses a somewhat paradoxical character. If global terror were
no longer a major issue, it would disappear without causing globalism to collapse. In that case, it
seems that this last philosophy is a contingent one and thus less important than the previous five.

TOPIC 2

GLOBAL ECONOMY

Global economy is the result of worldwide economic activities. 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
(Claudio and Abinales, 2018).

Global economy or economic globalization happens or occurs because of the integration of

economies between and among multiple countries. The movement of goods, services, and even
capital across borders strengthens the existence of global economy.

As we discuss more about global economy, we can always go back to the ancient international
trade route—The Silk Road.

While the Silk Road was international, it was not truly “global” because it had no ocean routes that
could reach the American continent (Claudio & Abinales, 2018).

Now, when did global economy begin? Do you “galleon trade” that connected Manila in the
Philippines and Acapulco in Mexico? The galleon trade was established in 1951. According to
Flynn and Arturo (n.d.), the age of globalization began when “all-important populated continents
began to exchange products continuously—both with each other directly or indirectly via other
continents—and in values sufficient to generate crucial impacts on all trading partners. Hence, this
age can be traced back to 1951 when galleon trade was established. Galleon trade was
considered the age of mercantilism from the 16th to 18th century where countries, primarily in
Europe, competed with one another to sell more goods as a means to boost their country’s
income.

Soon after, in 1867, a more open trade system emerged. This was later on called the gold
standard. This was led by the United Kingdom, the United States, and other European countries.
Its goal was to create a common system and establish a common basis of currency which was all
based on the value of gold—hence, the gold standard.

Today, 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
currencies.
DRIVERS OF ECONOMIC GLOBALIZATION

As discussed above, economic globalization stands for the economic interconnectedness of

countries with the global economy as a whole. This interdependence relates both to the exchange
of factors of production (labor, capital, technologies, know-how) and the exchange of products
(material goods and services, finished and unfinished products, consumer and capital goods).
Looking closely, we can say that there are three main drivers for economic globalization and its
different characteristics such as trade, international capital markets, currency markets, migration,
and more:

1. Demography:

The size of the population of a country is important for factor endowment differences between
countries. If a certain economy has a large number of workers but only a small stock of physical
capital, the country is labor-abundant and capital-poor. Such a country has an international
competitive advantage in manufacturing labor-intensive products. Concerning the international
division of labor, it will specialize in the production and export of labor-intensive products.

2. Technology:

Due to technical progress, the costs of transportation and communication decreased strongly
during the last decades. Without these reductions in costs, phenomena such as outsourcing, long-
distance trade, and global value chains would not be possible.

3. Political decisions:

Economic processes are not operating in a political or institutional vacuum. Reducing or even
eliminating barriers to trade in goods, services, labor, and capital are political decisions. At the end
of the day, whether economically motivated cross-border activities do actually take place or not
depends on the policy frameworks in place. It is this framework that decides whether cross-border
activities are facilitated, made more difficult, or even completely forbidden.

MODERN WORLD SYSTEM

The Three-Level Hierarchy of Modern World Economy (Wallerstein, 2004)

World systems theory was proposed by sociologist Immanuel Wallerstein. This lesson discusses
the three-level hierarchy approach to economics, which consists of core, periphery, and semi-
periphery countries, in the context of global inequality.
The world systems theory, developed by sociologist Immanuel Wallerstein, is an approach to
world history and social change that suggests there is a world economic system in which some
countries benefit while others are exploited. Just like we cannot understand an individual’s
behavior without reference to their surroundings, experiences, and culture, a nation’s economic
system cannot be understood without reference to the world system of which they are a part.

The main characteristics of this theory include:

➢ The world systems theory is established on a three-level hierarchy consisting of core, periphery,
and semi-periphery areas.

➢ The core countries dominate and exploit the peripheral countries for labor and raw materials.

➢ The peripheral countries are dependent on core countries for capital.

➢ The semi-peripheral countries share characteristics of both core and peripheral countries.

➢ This theory emphasizes the social structure of global inequality.

Based on Wallerstein’s World System Theory Model, the world is divided into three categories.
These categories are placed in a hierarchy. The division of labor worldwide is derived from his
model.

Hence, we have the following:

1. Core Countries:

Core countries are dominant capitalist countries that exploit peripheral countries for labor and raw
materials. They are strong in military power and not dependent on any state or country. They
serve the interests of the economically powerful. They are focused on higher skill and capital-
intensive production. Core countries are powerful, and this power allows them to pay lower prices
for raw goods and exploit cheap labor, which constantly reinforces the unequal status between
core and peripheral countries.

The first core region was located in northwestern Europe and made up of England, France, and
Holland. Today, the United States is an example of a core country. The U.S. has large amounts of
capital, and its labor forces are relatively well paid.

2. Periphery Countries:

Periphery countries is the term used to describe countries that are neither core nor semi-periphery
countries. They have just a small share of the world’s wealth. These nations are not just
dependent on other nations but are often exploited by more developed countries. Some
characteristics of periphery countries include unstable governments, poor education systems, and
poor health systems. According to socialist Salvatore Babones, the world’s periphery countries
include Bangladesh, Benin, Bolivia, Burkina Faso, Burundi, Central African Republic, Chad, Chile,
China, Congo, Gambia, Ghana, Guinea-Bissau, Haiti, Honduras, Indonesia, Kenya, Lesotho,
Madagascar, Malawi, Mauritania, Nepal, Niger, Nigeria, Papua New Guinea, Philippines, Rwanda,
Senegal, Sierra Leone, Solomon Islands, Sri Lanka, Sudan, Togo, Zambia,

Periphery countries are countries that possess a disproportionately small share of the world’s
wealth. These areas are less developed than the core and the semi-periphery. They have weaker
state institutions and are often dependent on more developed nations. Some critics argue that
periphery countries are regularly exploited by countries in the core. Periphery countries may have
an unstable government, inferior technologies, and poor health and educational systems. At times,
the exploitation of these countries with regard to cheap labor, agriculture, and natural resources
may help the core countries remain wealthy. 3. Semi-periphery Countries: Semi-peripheral
countries share characteristics of both core and periphery countries. Semi-peripheral countries
exploit peripheral countries, just as core countries exploit both semi-peripheral and peripheral
countries. Semi-peripheral countries (e.g., South Korea, Taiwan, Mexico, Brazil, India, Nigeria,
South Africa) are less developed than core nations but more developed than peripheral nations.
They are the buffer between core and peripheral countries.

TOPIC 3

MARKET INTEGRATION

In the International Encyclopedia of the Social & Behavioral Sciences (Second Edition, 2015),
Market Integration hypothesis proposes that market norms emphasizing fair treatment of
anonymous others have culturally evolved to sustain mutually beneficial exchanges in contexts
demanding frequent interaction with strangers. In turn, as individuals increasingly interact with
markets, they adopt and internalize these norms (Henrich et al., 2010a). Reciprocally, markets
spread more successfully in places with such norms.

According to this hypothesis, individuals with greater market exposure will be more likely to have
adopted or internalized these norms and thus will treat anonymous others more fairly.

Market integration basically refers to how easily two or more markets can trade with each other
and a situation in which separate markets for the same product become one single market, for
example when an import tax in one of the markets is removed. Moreover, market integration
allows price signals to be transmitted from one market to another. It is the fusing of many markets
into one. In one market a commodity has a single price. For instance, the price of rice would be
the same in the Philippines and Vietnam if these areas were part of the same market. Hence,
market integration helps equalize commodity prices among countries or areas that are part of the
same market.

➢ High integration = low barriers to trade = prices are similar in these markets ➢ Low integration =
high barriers to trade = prices fluctuate between these markets Foreign trade helps the integration
of markets because it reduces barriers to trade and increases fluidity between markets.

THE BRETTON WOODS SYSTEM

The Bretton Woods System was established after the two world wars and was inaugurated in 1944
during the United Nations Monetary and Financial Conference. The world leaders sought to create
a global economic system to prevent the catastrophes of the early decades of the century from
reoccurring and affecting international ties. The Bretton Woods System was largely influenced by
the ideas of British economist John Maynard Keynes. He believed that economic crises occur not
when a country does not have enough money, but when money is not being spent and, thereby,
no moving. Delegates at Bretton Woods created two financial institutions: International Bank for
Reconstruction and Development (IBRD or World Bank) and International Monetary Fund (IMF).
Both have unique role to play in the economic globalization. International Bank for Reconstruction
and Development (IBRD) is responsible for funding postwar reconstruction projects. It was a
critical institution at that time when many world’s cities had been destroyed by World War II.
International Monetary Fund (IMF), on one hand, was to be the global lender of last resort to
prevent individual countries from spiraling into credit crises. If economic growth in a country
slowed down because there was not enough money to stimulate the economy, the IMF would step
in.

ROLES OF INTERNATIONAL INSTITUTIONS IN THE CREATION OF GLOBAL ECONOMY

1. The World Trade Organization (WTO)

World Trade Organization is the only international organization dealing with the global rules of
trades. Its main function is to ensure that trade flows as smoothly, predicably, and freely as
possible. It does this by administering trade agreements, acting as a forum for trade negotiations,
settling trade disputes, reviewing national trade policies, building the trade capacity of developing
economies, and cooperating with other international organizations.

2. The International Monetary Fund (IMF)

The IMF helps countries implement sound and appropriate policies through its key functions of
surveillance, technical assistance, and lending.

Surveillance: Every country that joins the IMF accepts the obligation to subject its economic and
financial policies to the scrutiny of the international community. The IMF’s mandate is to oversee
the international monetary system and monitor economic and financial developments in and the
policies of its 189 member countries. This process, known as surveillance, takes place at the
global level and in individual countries and regions. The IMF assesses whether domestic policies
promote countries’ own stability by examining risks they might pose to domestic and balance of
payments stability and advises on needed policy adjustments. It also proposes alternatives when
countries’ policies promote domestic stability but could adversely affect global stability.

Data: The IMF is working with members, the Financial Stability Board, and other organizations to
fill data gaps important for global stability.

Technical assistance: The IMF helps countries strengthen their capacity to design and implement
sound economic policies. It provides advice and training in areas of core expertise—including
fiscal, monetary, and exchange rate policies; the regulation and supervision of financial systems;
statistics; and legal frameworks.

Lending: Even the best economic policies cannot completely eradicate instability or avert crises. If
a member country faces a balance of payment crisis, the IMF can provide financial assistance to
support policy programs that will correct underlying macroeconomic problems, limit disruption to
both the domestic and the global economy, and help restore confidence, stability, and growth. The
IMF also offers precautionary credit lines for countries with sound economic fundamentals for
crisis prevention.

3. The World Bank (WB)

The World Bank Group is one of the world’s largest sources of funding and knowledge for
developing countries. Its five institutions share a commitment to reducing poverty, increasing
shared prosperity, and promoting sustainable development.

Together, International Bank for Reconstruction and Development (IBRD) and International
Development Association (IDA) form the World Bank, which provides financing, policy advice, and
technical assistance to governments of developing countries. IDA focuses on the world’s poorest
countries, while IBRD assists middle-income and creditworthy poorer countries.

International Finance Corporation (IFC), Multilateral Investment Guarantee Agency (MIGA), and
International Centre for Settlement of Investment Disputes (ICSID) focus on strengthening the
private sector in developing countries. Through these institutions, the World Bank Group provides
financing, technical assistance, political risk insurance, and settlement of disputes to private
enterprises, including financial institutions. The World Bank Group works with developing countries
to reduce poverty and increase shared prosperity.
The World Bank Group provides financing, policy advice, and technical assistance to
governments, and also focuses on strengthening the private sector in developing countries.

TOPIC 4

NATION AND STATE

Perhaps, when you are asked to define what a nation and a state are, you might have almost the
same definition. You might have thought of checking your dictionary to see how they actually
differ.

Nation and state are, in fact, entirely different concepts. How could that be? Actually, they differ in
many aspects.

State refers to a country and its government. A state has four attributes.

1. A state exercises authority over a specific population called its citizens.

2. A state governs a specific territory.

3. A state has a structure of government that crafts various rules that people (society) follow.

4. A state has sovereignty over its territory.

The fourth aspect is the most crucial since sovereignty refers to internal and external authority.
Internally, no individuals or groups can operate in a given national territory by ignoring the state,
therefore, groups like churches, civil society organizations, corporations, and other entities follow
the laws of the state where they establish their parishes, offices, or headquarters. Externally,
sovereignty means that a state’s policies and procedures are independent of the interventions of
the other states.

Nation, on one hand, is limited to the given “official boundary.” Nations often limit themselves to
people who have imbibed a particular culture, speak a common language, and live in a specific
territory. Nation allows you to feel connected with a community of people even if you will never
meet all of them in your lifetime. When you cheer for a Filipino singer competing in an international
singing contest does not mean that you know the singer personally, rather you feel the connection
between you because you are members of the Filipino community. Finally, most nations strive to
become states.

State Nation
Has four elements: population, territory, A nation is a group of people who have a
government, and sovereignty strong sense of unity and common
consciousness- common territory, race,
religion, culture, history and political
aspirations
A political organization A social, cultural psychological, emotional
and political unity
Possession of a definite territory is A nation territory is not an essential
essential requirement
Sovereignty is an essential element Sovereignty is not essential, rather, strong
bonds of emotional unity among its
people.
Limited to a fixed territory May or may not remain within the bounds
of a fixed territory
 Less stable More stable
Can be created Always the result of evolution- emerges
slowly and steadily
Uses police power for preserving unity Bound by strong cultural and historical
and integrity links

INTERNATIONALISM AND GLOBALISM

Although the two terms may appear to be similar, yet there exists a conceptual difference between
the two. Globalism is much wider term in terms of its meaning, scope, and outcome. While
Internationalism lays stress only on the solidarity and cooperation among the Nations, while
acknowledging their Sovereign Character, Globalism on the other hand not only emphasizes the
dilution of the Sovereign Expression of the Nations but demonstrates the conflicts arising out of
this dilution as well.

This however does not mean that Globalism is a negative concept because surrender of national
sovereignty (to some extent) is aimed to moderate the barriers to international exchanges. In spite
of these conceptual differences between the two terms, practically we witness an amalgam of the
two phenomena. In the contemporary world order, international and transnational exchanges
witness both Globalism and Internationalism with varying degrees.

For example, in International Organizations like WTO, the mode of exchange we witness is a
blend of both Internationalism and Globalism. However, Globalism tends to dominate the scene.
While the countries seek cooperation for by international trade and respect each other’s
independence in decision making, yet, it is often the by southern nations that have to compromise
their national interests. Subsequently, a conflict arises between the interests of various nations
and in the name of global cooperation practices like neo-colonialism are undertaken.

Similarly, United Nations that seeks International Cooperation and sorts out various conflicts,
witnesses both the phenomena, but it is again the Globalism that gets a little more edge. Though
there are various conflicts over a wide dimension of issues (such as the expansion of Security
Council, dominance of the West, and many more), yet, the organization seeks to build consensus
among various stakeholders and enforce cooperation in the matters of Global Importance. The
historic Climate Conference in Paris testifies this aspect wherein several nations agreed to put
their foot down for the sake of Global Good.

Also, even though the conflicts exist and sovereignty is surrendered (to some extent) yet they get
overshadowed in pursuit of Global Interests. Similarly, organizations like SAARC, BRICS, and
IBSA, etc. tend to have a dominance of internationalism. The interdependence (regional) of the
nations (especially regional) and the need for cooperation among them justifies the existence of
such international institutions.

COMPETING CONCEPTIONS OF INTERNATIONALISM

Internationalism has two broad categories: Liberal internationalism and Socialist internationalism.

Liberal Internationalism

The first major thinker of liberal internationalism was the late 18th-century German philosopher
Immanuel Kant. Global system was likened to people living in a given territory. Kant thought of
establishing a world or global government to prevent chaos in the international system as he
believed that if people living together require a government to prevent lawlessness, so as with
states.
British philosopher in the 18th century Jeremy Bentham advocated the creation of “international
law” that would govern the inter-state relations. Bentham believed that objective global legislators
should aim to propose legislation that would create “the greatest happiness of all nations taken
together.”

19th-century Italian patriot Giuseppe Mazzini was the first thinker to reconcile nationalism and
internationalism. Mazzini was both an advocate of the unification of the various Italian-speaking
mini-states, a major critic of the Metternich system, and promoting a republican government. He
believed that free, unified nation-states should be the basis of global cooperation.

Mazzini influenced the thinking of the United States president (1913-1921) Woodrow Wilson, who
became one of the 20th century’s most prominent internationalists. Like Mazzini, he saw that
nationalism is a prerequisite for internationalism. Woodrow forwarded the principle of self-
determination—the belief that the world’s nation had a right to a free, and sovereign government,
that nations would become democracies to build a free system of international relations. This
made Wilson a notable advocate for the creation of the League of Nations for conciliation and
arbitration to prevent another war. Soon after, Woodrow was awarded the Nobel Peace Prize in
1919 for his efforts.

Despite the failure of The League, since it was unable to hinder another war from breaking out, the
League gave birth to some of the more task-specific international organizations that are still
around until today, the most popular of which are the World Health Organization (WHO) and the
International Labor Organization (ILO).

The League was the concretization of the concepts of liberal internationalism. It emphasized the
need to form common international principles (Kant). It enshrined the principles of cooperation and
respect among nation-states (Mazzini). And it called for democracy and self-determination
(Wilson).

Socialist Internationalism

One of Mazzini’s greatest critic was German socialist philosopher Karl Marx who was also an
internationalist, but who differed from the former because he did not believe in nationalism. He
believed that any true form of internationalism should deliberately reject nationalism. Instead, he
placed a premium on economic equality—dividing the world into classes: capitalists/bourgeoisie—
the owners of factories, companies, and other “means of production” and proletariat—did not own
the means of production, instead, worked for the capitalists.

Marx and his co-author, Friedrich Engels opposed nationalism because they believed it prevented
the unification of the world’s workers. Hence, their now-famous battle cry, “Workers of the world,
unite! You have nothing to lose but your chains.” Instead of identifying with other
workers, nationalism could make workers in individual countries identify with the capitalist of their
countries.

INSTITUTIONS GOVERNING INTERNATIONAL RELATIONS

After World War II, the United States helped build a global economic order governed by mutually
accepted rules and overseen by multilateral institutions. The idea was to create a better world with
countries seeking to cooperate with one another to promote prosperity and peace. Free trade and
the rule of law were mainstays of the system, helping to prevent most economic disputes from
escalating into larger conflicts. These international organizations are tools for prosperity and
peace. The institutions established include:

1. International Monetary Fund (IMF):

It was established in 1945 with its headquarters at Washington DC. The most important objective
of the IMF is to help member countries to overcome the adverse balance of payment and
development. It brings about international monetary cooperation among member-nations by
maintaining exchange-stability, remove exchange restrictions, and facilitate world trade.

2. United Nations (UN):

The adoption of the UN declaration of January 1, 1942, by representatives of 26 nations was

based on the principle of the Atlantic Charter. It was followed by another meeting at Moscow by
the Foreign Secretaries of four big countries (USA, UK, USSR, and China) on the necessity of
founding an international organization, the United Nations (UN). Subsequently, the Dumbarton
Oaks Conference was held on October 7, 1944, where the USA drew up a plan and placed it
before the other big powers. After sometimes the plan for founding the UN was presented to all
governments for approval. The UN Charter was drafted at the Dumbarton Oaks Conference. A
conference of 51 nations was held at San Francisco during the spring of 1945 and it completed the
draft of the UN charter. This Charter was signed by all these nations, and on October 24, 1945,
the UN was formally inaugurated. The UN headquarters is in New York. The official languages of
the UN are English, French, Spanish, Russian, Chinese, and Arabic.

The UN became an association of sovereign nations wedded to the cause of maintaining peace
and security, and settlement of disputes through negotiations or arbitration through the good
offices of the UN. Today, the UN is having 191 member states on its roster (the last to be admitted
was East Timor). All sovereign nations are eligible to apply for admission to UN membership. They
are admitted by the General Assembly on the recommendation of the Security Council. They have
to sign the UN Charter. The UN Charter contains 111 articles and includes four clear objectives:

(1) To maintain international peace and security.

(2) To promote friendly relations among nations on the basis of equal rights and self-
determination of people,

(3) To achieve international cooperation in solving various problems, and

(4) To promote respect for human rights, dignity, and freedom.

The UN adopted a Charter of Economic Rights in December 1974, containing 34 articles. This
Charter envisages a New International Economic Order (NIEO).

3. North Atlantic Treaty Organization (NATO):

During the cold war, the North Atlantic Treaty Organisation (NATO) was established as a result of
the Czecho-Slovakian coup and the Berlin blockade carried out by the Soviet Communists. The
United States feared that without a strong military defensive system (tactics) Western Europe was
threatened by Soviet expansion. NATO was a regional military alliance. Its main treaty was that
“an armed attack against one member would be interpreted as an attack against all”. In response,
the Warsaw Pact was a defensive military regional alliance of Eastern European countries
[Eastern Germany, Bulgaria, Romania, Albania, and Czechoslovakia) headed by the USSR. It was
created to try to maintain a bipolar balance of power between communist and democratic
countries.

During the Berlin blockade in 1958, both NATO and the WARSAW Pact took a stand. There were
tensions between East and West Berlin. West Germany was thriving economically (capitalist
economy) and a member of NATO while East Germany [Socialist economy] was economically and
politically repressed. In 1958, two million Germans fled to the West.
President Khruschev of the Soviet Union demanded the Western Powers occupying Berlin to
evacuate within six months. NATO refused to bulge and in March, 59, Khruschev had to back
down (out)? The West Berlin remained free of communism. Furthermore, in 1962, tensions
shifted from Europe to Cuba in Latin America, when Khruschev strived to install missiles in Cuba,
this occupied a strong position in the American sphere of influence. It was clear that the Soviet
Union was planning to use the missiles bases in Cuba to threaten the United States which
was repelled.

4. World Trade Organization (WTO):

The World Trade Organisation came into being in 1995 as one of the youngest of the
international organizations. The WTO is the successor to the General Agreement on Tariffs and
Trade (GATT) established in the wake of World War II. It all began with trade in goods from 1947
to 1994. GATT was the forum for negotiating lower customs duty rates and other trade barriers
since 1995, the updated GATT became the WTO‟s umbrella agreement for trade in goods, it
annexed dealing with specific issues such as state trading, product standards, subsidies, and
actions taken against dumping.

The WTO overriding objective is to help trade flow smoothly, freely, fairly, and predictably. It does
this by

• Administering trade agreement

• Acting as a forum for trade negotiations

• Settling trade dispute

• Relieving national trade policies.

• Assisting developing countries in trade policy issues, through technical assistance and training
programs

• Cooperating with other international organizations.

The WTO has 153 members accounting for almost 95% of world trade, about 30 others, are
negotiating still membership status. Decisions are made by the entire membership. This is typically
by consensus. A majority vote is also possible but it has not been used in the WTO and was
extremely rare under WTO‟s predecessor, the General Agreement of Tariffs and Trade (GATT).
The WTO’s agreements have been rectified in all members‟ parliaments.

The WTO’s top decision-making body is the Ministerial Conference which meets at least once
every two years. Below this, is the General Assembly (normally ambassador and heads of
delegation in Geneva, but sometimes officials sent from members‟ capital) which meet several
times a year in the Geneva headquarters. The General Council also meets as the trade policy
review body and the dispute settlement body.

At the next level, the Goods Council, Services Council, and Intellectual Property (TRIPs) Council
report to the General Council.

5. World Bank:

It started functioning in 1946. It was initially started to help countries whose economies were
severely affected by the World War. In the course of time, IBRD extended its financial assistance
to developing countries for increasing their production, raising their standard of living, and for
securing better balances in international trade. It gives loans to member states for the execution of
specific projects like the expansion of power projects, transportation, agriculture, and
communication.

TOPIC 5

GLOBAL GOVERNANCE

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

INTERNATIONAL ORGANIZATIONS

Institutions like the IMF, the World Bank and groups like the UN are referred by scholars as
International Organizations (IOs). The term IO is commonly used to refer to international
intergovernmental organizations or groups that are primarily made up of member-states.

FUNCTIONS OF THE UNITED NATIONS

After the collapse of the League of the 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 UN. The United Nations’ role is to promote international co-
operation and to create and maintain international order. The United Nations aims to maintain
international peace and security, protect human rights, deliver humanitarian aid, promote
sustainable development, and uphold international law.

The UN is divided into five active organs.

1. General Assembly (GA):

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 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.” Currently, there are 193 member states
of the UN and all of them have seats in the GA. In the GA’s early years, the Philippines played a
prominent role when Filipino diplomat Carlos P. Romulo was elected GA president for 1949-1950.

2. Security Council (SC):

SC is considered by many commentators to be the most powerful despite that GA is the most
representative organization in the UN. According to the UN, this body consists of 15 member
states. The GA elects ten of these 15 to two-year terms. The other five—sometimes referred to as
the Permanent 5 (P5)—are China, France, Russia, the United Kingdom, and the United States.
These states have been permanent members since the founding of the UN, and cannot be
replaced through an 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 of 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
another state need to obtain the approval of the SC. With SC’s approval, military intervention may
be deemed legal. This is an immense power.
3. Economic and Social Council (ECOSOC):

ECOSOC is the “principal body for coordination policy review, policy dialogue, and
recommendations on social and environmental issues, as well as the implementation of the
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.

4. International Court of Justice (ICJ):

ICJ’s task “is to settle, in accordance with international law, legal disputes submitted to it by states
and to give advisory options referred to it by authorized United Nations organs and specialized
agencies.” The major cases of the court consist of disputes between states that voluntarily submit
themselves to the court for arbitration. The court, as such, cannot try individuals (international
criminal cases are heard by the International Criminal Court, which is independent of the UN), and
its decisions are only binding when states have explicitly agreed to place themselves before the
court’s authority. The SC may enforce the rulings of the ICJ, but this remains subject to the P5’s
veto power.

5. Secretariat:

It 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 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.

CHALLENGES OF THE UNITED NATIONS

Given the scope of the UN’s activities, it naturally faces numerous challenges. Chief among these
are the limits placed upon its various organs and programs by the need to respect state
sovereignty. The UN is not a world government, and it functions primarily because of voluntary
cooperation from states. If states refuse to cooperate, the influence of the UN Council on Human
Rights can send special rapporteurs to countries where alleged human rights violations are
occurring.

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

Today, a similar dynamic is evident in Syria, which is undergoing a civil war. Russia has
threatened to veto any SC resolution against Syria; thus, the UN has done very little to stop state-
sanctioned violence against opponents of the government. Since Syrian President Bashar al-
Assad is an ally of Russian dictator Vladimir Putin, the latter has shied away from any policy that
could weaken the legitimacy of the former. As a result, the UN is again ineffectual amid a conflict
that has led to over 220,000 people dead and 11 million displaced.
Despite these problems, it remains important for SC to place a high bar on military intervention.
The UN Security Council has been wrong on issues of intervention, but it also has made the right
decisions. When the United States sought to invade Iraq in 2001, it claimed that Iraq’s Saddam
Hussein had weapons of mass destruction (WMD) that threatened the world. However, UN
members, Russia, China, and France were unconvinced and vetoed the UN resolution for
intervention, forcing the United States to lead a small “coalition of the willing” with its allies. It has
since been discovered that there were no weapons of mass destruction, and the invasion of Iraq
has caused problems for the country and the region that last until today.

TOPIC 6

REGIONALISM

Regionalism occurs to address and cope with the challenges of globalization. Governments,
associations, societies, and groups form these regional organizations.

Regionalism

➢ It is seen as a political and economic phenomenon.

➢ It can be examined in relation to identities, ethics, religion, ecological sustainability, and health.

➢ In addition, regionalism also considers a process and emergent socially constituted

phenomenon. This means that regions are not natural or given; rather, they are constructed and
defined by policymakers, economic actors, and even social movements.

This lesson will look at regions as political entities and examine what brings them together as they
interlock with globalization. The other facets of regionalism will then be explored, especially those
that pertain to identities, ethics, religion, ecological sustainability, and health. The lesson will
conclude by asking where all these regionalisms are bringing us as members of a nation and as
citizens of the world.

COUNTRIES, REGIONS, AND GLOBALIZATION

According to Mansfield & Milner (1993), definitions given to region vary; however, there are certain
features that everyone can agree on.

REGIONS

➢ Regions are group of countries located in the same geographically specified area.

➢ Regions are likewise amalgamation of two regions [or] a combination of more than two regions
organized to regulate and oversee flows and policy choices.

Regionalization vs. Regionalism

Regionalization is the regional concentration of economic flows.

Regionalism is a political process characterized by economic policy coordination among countries.

Countries form regional associations for several reasons.

1. For military defense:

Countries or governments seek regional associations to defend their resources and people. There
were several grouping defenses that were formed, e.g. North Atlantic Treaty Organization (NATO),
Warsaw Pact.

2. To pool their resources, get better returns for their exports, and expand their leverage
against trading partners:

Countries such as Iran, Iraq, Kuwait, KSA, and Venezuela, for instance, established the
Organization of the Petroleum Exporting Countries (OPEC) to regulate the production and sale of
oil.

3. To protect their interdependence from the pressures of superpower politics:

In 1961, the presidents of Egypt, Ghana, India, Indonesia, and Yugoslavia created the Non-
Aligned Movement (NAM). It was called non-aligned because members of this organization
refused to side either the First World capitalist democracies in Western Europe and North America
or the communist states in Eastern Europe. Hence, NAM in 1962 was created to pursue world
peace and international cooperation, human rights, national sovereignty, racial and national
equality, non-intervention, and peaceful conflict resolution.

4. To address economic crisis:

When the Thai economy collapsed in 1996, the International Monetary Fund (IMF) tried to reverse
the crisis, nonetheless, it was only after the ASEAN countries along with China, Japan, and South
Korea agreed to establish an emergency fund to anticipate a crisis that the Asian economies
stabilized. While it may appear that ASEAN acts as a military alliance, but in the past, there were
also beginning of economic cooperation.

Non-State Regionalism

Communities, other than the states, also engage in regional organizing. They are considered
“new regionalism”. This “new regionalism” varies in form.

New Regionalism can be tiny associations that include no more than a few factors and focus on a
single issue or huge continental unions that address a multitude of problems from territorial
defense to food security. It also relies on the power of individuals, non-governmental organizations
(NGOs), and associations to link up with one another in pursuit of a particular goal/s. Moreover,
new regionalism is identified with reformists who share the same values, norms, institutions, and
systems that exist outside of the traditional established mainstream institutions and systems.

Organizations representing new regionalism vary their strategies and tactics. Some organizations
partner with governments to initiate social change. Other regional organizations dedicate
themselves to specialized causes. These organizations’ primary power lies in their moral standing
and their ability to combine lobbying with pressure politics. Unfortunately, most of them are poorly
financed, which places them at a disadvantage when dealing with their official counterparts who
have large state funds. Their impact in global politics is, therefore, limited.

New regionalism differs significantly from traditional state-to-state regionalism when it comes to
identifying problems. For example, states treat poverty or environmental degradation as technical
or economic issues that can be resolved by refining existing programs of state agencies, making
minor changes in economic policies, and creating new offices that address these issues as
reflections of flawed economic development and environmental models.

CONTEMPORARY CHALLENGES TO REGIONALISM

Today, regionalism faces multiple challenges.

1. Resurgence of militant nationalism and populism:

This is considered the most serious challenge that regionalism has to deal with. The refusal to
dismantle NATO after the collapse of the Soviet Union, for example, has become the basis of the
anti-NATO rhetoric of Vladimir Putin in Russia. Now, even the relationship of the United States—
the alliance’s core member—with NATO has become problematic after Donald Trump
demonetized the organization as simply leeching off American military power without giving
anything in return.

2. Financial Crisis:

Perhaps the most crisis-ridden regional organization of today is the European Union. The
continuing financial crisis of the region is forcing countries like Greece to consider leaving the
Union to gain more flexibility in their economic policy.

3. Disagreement over the extent of member’s sacrifice of sovereignty for the sake of
regional stability:

This challenge is true to ASEAN members. ASEAN countries disagreed over how to relate to
China, with the Philippines unable to get the other countries to support its condemnation of
China’s occupation of the West Philippine Sea.

Differing visions of what regionalism should be for: Western governments may see regional
organizations not simply as economic formations but also as instruments of political
democratization. Non-Western and developing countries, however, may have a different view
regarding globalization, development, and democracy.