Module 1: The Structures of Globalization

I. Introduction

Globalization is a complex and uneven process. It is a result of

integration of forces around the world, whether it is in economics, politics, or

culture. It changed and shaped the countries of the world into one economy,

one government, and one culture. No wonder why over a period of time, the

world came up with a universal language, English. It also came up with a

universal currency, the US dollar. Countries of the world are governed by

international navigation routes respecting territorial jurisdiction. Conflicts of

the countries are settled in the International Court of Justice. For countries

that cannot cope with economic crisis, the International Monetary Fund

(IMF) and the World Bank (WB) will come to the rescue. In case of wars of

countries, the United Nations will look into it. Aside from that, the world has

international organizations connected with the national organizations of

laborers, women, human rights, and many more. For whatever reasons,

everybody wants to have global or world peace. Everybody wants to create a

world that is humane for everyone to enjoy life in harmony with nature.

Whether you like it or not globalization has taken its course, a

common place of destination. Unknowingly you are globalized, when you

adapt changes in society like the use of cell phones, internet connections,

media, and all sorts of modern technology. You are unknowingly connected

to the global world.

 A. Definition of Globalization

According to Manfred Steger, globalization is “the expansion and

intensification of social relations and consciousness across world-time and

across world-space.”

Expansions refer to: 1) the creation of new social networks, 2) the

multiplication of existing connections that cut across traditional political,

economic, cultural and geographic boundaries. These various connections

occur at different levels using social media and international organization

that has linkages with the national or local organizations.

Intensification refers to the expansion, stretching, and acceleration of

these networks (NGO’s, Social Workers and Activists Groups which have

linkages abroad). They are connected globally and more interlinked or

closely-knitted and expanding their reach.

The advent of electronic trading brought about a strong financial

market connection which is accelerating rapidly over a period of time. The

world becomes more financially integrated and intensified. When there is

recession in the US, or changes in economic policies in UK, the world will be

affected directly or indirectly. When Iloilo opens her ports to globalization,

the City of Iloilo steadily progress and will possibly become Metro Iloilo.

The connection is not just only for economic or financial matters but

also in calamities and disasters. When the Philippines was hit by typhoon

Yolanda, the province of Samar and Leyte were totally devastated. So, many
countries sent their relief goods, health care service, all forms of aids, and

financial support to help the rehabilitation process.

Steger notes that “globalization processes do not occur merely as an

objective, material level but they also involve the subjective plane of human

consciousness.” It means that the world has become a small place and the

distance collapse from a thousand miles to just a mouse-click away.

B. Differences between Globalization and Globalism

Steger also posits that globalization is different from globalism and

here are the differences:

Globalization Globalism

is a process. is an ideology.

represents the many processes that is widespread belief among powerful

allow for the expansion and people that the global integration of

intensification of global connections. economic markets is beneficial for

everyone, since it spreads freedom

and democracy across the world.

is accepted and tolerated. is highly criticized and considered

problematic.

C. Brief Summary

Globalization is a process that has to be accepted. It has to take place

whether you want it or not. In fact it has taken place already. You have to

welcome and accept it tolerantly or else you will be dismayed. You cannot
change the course of history although you can make a difference out of it. It

has taken place so rapidly and intensely in many forms. It goes with the

saying, “the old has gone the new has come”.

Module II: The Global Economy & Global Governance

The Global Economy

There are two major players of global economy: 1) The International

Monetary Fund (IMF), and 2) the World Bank (WB) or the International Bank

for Reconstruction and Development (IBRD). Although each country has its

own independent or dependent economic policy, in case of financial crisis the

country affected seeks the help of the IMF or the WB to avoid liquidity trap

or bankruptcy.

The IMF is the global lender of last resort to prevent individual

countries from escalating into credit crises. If the economic growth of the

country is slowing down due to the reduction of money supply, the IMF could

come to rescue by releasing an amount of money loaned to stimulate the

economy.

The WB or the IBRD is responsible for the funding of post war

reconstruction projects. However, to some extent they may also grant

financial aid to developing countries of the world through their subsidiaries,

the World Health Organization (WHO), and the World Trade Organization

(WTO).
 A. Market Integration

The integration of market is not new. It started when people began to

exchange and trade their products continuously and spontaneously, directly

or indirectly with other countries and established among themselves a

partnership in trading.

According to historians Dennis O. Flynn and Arturo Giraldez, the

establishment of the Galleon Trade in 1571 has connected Manila in the

Philippines and Acapulco in Mexico. That was when the time the Americans

were directly connected to Asian trading routes. It was then when the

Philippines became the market for the surplus products in America during

the galleon trade or the age of mercantilism (16th century to 18th century).

B. Global Interstate Trading

The oldest international trade is the Silk Road (130 BCE-1453 BCE). It

is known as the network of pathways in the ancient world that spanned or

bridged over from China to the Middle East and to Europe. The most

profitable product traded through this network was silk. The Silk Road was

then considered international but not yet global because it had no ocean

routes that could reach all countries of the world.

Aside from mercantilism as a system of global trade with multiple

restrictions, there are other global trade systems such as:

1. The Gold Standard System

 When the open trade system was led by the United States and other

European nations, they called an international monetary conference in Paris

in 1867 purposely to adopt the Gold Standard as a common basis for

currency prices and fixed the exchange rate system. All trading must be

based on the value of gold. Its goal was primarily to create a common

system that would allow for more efficient trade and to prevent the

isolationism of the mercantilist era. However, it compelled the countries to

back their currencies with corresponding fixed gold reserves. Governments

were restricted to print their own money or currencies without the

corresponding amount of gold reserves.

During World War I, most of the countries depleted their gold reserves

to fund their armies. The governments could only spend money that was

equivalent to available gold reserves. Although they adopted the floating

currencies rate, the supply of gold became scarce. The gold standard has

limited the amount of money circulating in the economy that reduced the

aggregate demand and consumption of goods and services. The global

economic crisis in the 1920s and 1930s called the Great depression worsen

the condition. As a result many countries were forced to abandon the gold

standard.

In order to mitigate or revive the global economy, the world economy

operated based on fiat currencies, or the currencies that were no longer

backed up with gold reserves. Its value was determined by the relative cost
to other countries’ currencies depending on the production cost of goods and

services produced. The fiat currencies system allowed the governments to

freely and actively manage their economies by increasing or decreasing the

supply of money circulating in the economy as long that it is guaranteed by

the monetary agency of the government.

2. Bretton Woods System

After World War II, the United Nations called for a Monetary and

Financial Conference in 1944. The world leaders created a global economic

system that would ensure long lasting global peace. They set up a network

of global financial institutions to promote economic interdependence and

prosperity, globally known as the Bretton Wood System.

The Bretton Wood System was influenced by the ideas of a British

economist John Maynard Keynes who deeply believed that economic crises

occur when a country does not have enough money to stimulate the

economy, or the country has enough money but it was not being spent or

circulated in the economy. As a result the economy will be sluggish or there

will be a slowdown of the level of economic activity. The economy will be in

recession and later followed by depression. According to Keynes, the

government using its intervening power has to perform its active role to

bring the economy to expansion by using its expansionary fiscal policy

thereby releasing a substantial amount of money from its autonomous

investment to finance government projects to solve the economic crisis.

 The delegates of the Bretton Wood conference created the two

financial institutions to achieve its goals: 1) IMF and 2) WB or IBRD. They

also agreed to advance global economic integration through the General

Agreement on Tariffs and Trade (GATT) in 1947 purposely to reduce tariffs

and other custom duties that hinder free trade.

3. Neo-liberalism

The world economy experienced the worst world economic depression

in 1973-1974. The world economy was suffering from a very low economic

growth and high rate of unemployment (stagnation) coupled with a high rate

of inflation known as “stagflation”. The high price of oil in Arab countries

reduced the production of goods and services of the other countries reliant

on oil supply from OPEC (Organization of Petroleum Exporting Countries) or

OAPEC (Organization of Arab Petroleum Exporting Countries). In order to

arrest the economic depression, the United States and other countries

supplied the Israeli military with the needed weapons to have an oil embargo

to stabilize the economies of the world especially the western economies

which resulted to the Yom Kippur War in the Middle East.

Due to the stagflation, the Keynesian economics which influenced the

Bretton Wood System was challenged by Neo-Classical economists such as

Friedrich Hayek and Milton Friedman. They argued that the increase of

money supply in the market to stimulate the economy had caused inflation

due to high aggregate demand while the supply of goods was relatively low.
There was a shortage in the market. They also argued that government

intervention in the economy distorted the proper functioning of the market.

The market has its way of correcting itself. Such a new form of economic

thinking is called neo-liberalism.

Beginning in the 1980s until 2000s, the neo-liberalism became the

codified strategy of the United States Treasury Department, IMF, WB, WTO,

GATT, and the policies that they forwarded came to be called the

Washington Consensus.

The Washington, Consensus dominated the global economic policies

and it follows these contentions:

1. Privatization of government-controlled utilities and corporations,

2. Favorable to free market system or free enterprise or Laisse Faire or let

alone policy,

3. Minimal government spending to reduce government debt,

4. Reduction of tariffs and open economies for developing countries.

C. The Economic Globalization Today

Today the world has become too integrated and the international trade

or export and import remain essential for countries to develop in the present

globalized world. In the past decades free trade benefited only the

developed countries but when the WTO led the reduction of trade barriers

known as trade liberalization, the developing countries like China, India,

Argentina, Brazil, and the Philippines opened up their economies, and took
advantage of increasing free trade. As a result, their shares of the

percentage in the global market began to notably increase from 29% to 51%

of global exports in 2011. The global growth rates also increase over a

period of time especially among Asian economies. Yet economic globalization

remains an uneven process. There are still countries benefited from it more

than others.

Most developed and protectionist countries like Japan, US and Arab

Countries repeatedly refused to make some compromise of their

protectionist measures to safeguard their primary products like rice for

Japan, sugar for US, and petroleum for Arab countries. As a result there is

no balance of trade.

The Global Governance

The world is composed of many countries or nation-states, and all of

these have their own forms of government. They have diplomatic

engagements between two or more countries of the world- it is called

international relations. The deepening interaction between states is known

as the phenomenon of internationalization. Internationalization is a major

part of globalization. The state and its government are the key drivers of the

global processes.

A. History of Global Politics

In the different stages of the evolution of human histories, people in

various regions of the world have identified themselves exclusively with units
like a small village or tribe. Eventually they themselves united together to

form a larger community and later on became a nation-state. The nation is

different from the state but both are products of amalgamation or union.

Nation State

is an ethic concept, is a political concept,

is not free from external control. is free from external control.

D. Interstate System

1. Westphalian System

A brutal religious war between Catholics and Protestants brought the

Roman Empire, Spain, France, Sweden, and the Dutch Republic to design a

system that would avert or prevent wars in the future and they called it- the

Westphalian System. The system recognized that the signatory countries

exercise complete control over their domestic or national affairs and swear

not to meddle in each other’s affair. Such system has restored the stability

of Europe.

The Westphalian System was challenged by Napoleon Bonaparte who

headed the French Revolution advocating liberty, equality, and solidarity or

unity to the rest of Europe. He challenged the powers of kings, nobility, and

religion in Europe.
 2. Napoleonic Code

The Napoleonic War (1803-1815) implemented the Napoleonic Code in

every country the French Napoleonic armies conquered. The Code forbade

birth privileges, encouraged freedom of religion, and promoted meritocracy

in government service. The code system shocked the monarchies, the

hereditary elites, the duchesses, and the dukes of Europe. As a response to

this, they gathered together to fight the French emperor.

3. Concert of Europe

In 1815 at the Battle of Waterloo, the Anglo and Prussian armies

defeated Napoleon. The great powers of the United Kingdom, Austria,

Russian, and Prussia, allied together and created a new system called the

Concert of Europe. The new system sought to restore the world monarchical,

hereditary, and religious privileges of the time before the French Revolution

and the Napoleonic Wars.

Under the Concert of Europe, the Matternich System named after the

Austrian diplomat, Klemens von Matternich- the main architect of the system

sought also to restore the sovereignty of the state. The Concert of Europe’s

power and authority lasted until the dawn of World War 1.

E. Internationalism and Nationalism

Internationalism is the desire for greater cooperation and unity among

states and people. It is divided into categories: 1) liberal internationalism,

and 2) socialist internationalism.

Liberal Internationalism Socialist Internationalism

Immanuel Kant (German Karl Marx (German Socialist

Philosopher) Philosopher)

He believed that the states are like He placed a premium on economic

citizens of the countries, and must equality; did not divide the world into

give up some freedom and establish countries but into classes, 1) the

a global government and adopt a capitalist class, and 2) the

global system to prevent proletariat.

lawlessness. Karl Marx and Friedrich Engels

believed in socialist revolution to

overthrow the state and alter the

economy because the proletariat

“had no nation”

They opposed nationalism because

they believed that it prevented the

unification of the world’s workers.

These resulted to May 1, Labor Day

Celebration, International Women’s

Day, 8 hours as working hours.

Jeremy Bentham (British Vladimir Lenin (Leader of

Philosopher) Bolshevick Party/USSR- Union Soviet

He coined the word “international” Socialist Republics)

and advocated the creation of The party did not believe in obtaining

“international law” that would govern power for the working class through

the interstate relations. He further election. Instead it exhorted for

believed that global legislators should revolutionary vanguard parties to

aim to propose a legislation that lead the revolutions across the world,

would create the greatest happiness using methods of terror when

of all nations taken together. necessary- the present day

Communist Parties

Lenin established the Communist

International (Comintern) working in

secret to stir up revolution among

the countries of the world.

Nationalism according to Guiseppe Mazzini (Italian Patriot) a free

and unified nation-states is the basis of global cooperation. Nationalism is

the prerequisite for internationalism. In his principle of self-determination he

believed that the world nations had the right to have a free and sovereign

government. When nation-states became free and democratic they may be

able to build a free system of international relations based on international

law and cooperation. Woodrow Wilson the United States President (1913-

1921) was influenced by Mazzini and advocated the creation of the League

of Nations. At the end of the World War I in 1918, he pushed to transform

the League of Nations into a venue for reconciliation and arbitration to

prevent another war. However, the League was unable to prevent another

war. Nevertheless, the principles of the League of Nations survived after

World War II. The League of Nations gave birth to the following international

organizations. The World Health Organization (WHO), and the International

Labor Organization (ILO).

On the other side of the war, the ultra-nationalists namely 1) the Axis

Power- Hitler’s Germany, 2) Mussolini’s Italy, and 3) Hirohito’s Japan had an

instinctive disdain for internationalism and they preferred to violently impose

dominance over other nations.

F. World of Regions

The Philippines is a member of the Association of Southeast Asian

Nations (ASEAN). ASEAN is a regional organizations or networks of countries

in Asia for economic and political cooperation to cope with the challenges of

globalization.

Regionalism is also a process and a phenomenon in a regional or

national perspective. It is a conglomeration among Asian countries in Asia

like the European Countries (EU) in Europe, United States (US) in America.

Regions are not natural or instinctive but are constructed, defined, and

agreed by legislators, economic players, and even influenced by social

movements. Regions are group of countries located in the same

geographical area. Regionalization refers to the regional concentration of

economic flows. Regionalism is a political process characterized by economic

policy cooperation and coordination among countries.

Countries form regional organization for the following reasons:

1. Military Defense,

2. Pool Resources for Better Economic Returns or Leverage

3. Protect Economies during Economic Crisis

4. Territorial Sovereignty

1. Non- State Regionalism

Non-State Regionalism are communities or organizations engaged in

regional organizing that agree to work together for the same cause. It is

called the “new regionalism”. It can be a small association, a militant/activist

group, or movements that focus on a single issue like gender equality. It can

also be a big continental union that addresses multiple problems like

territorial sovereignty, food security, and economic protectionism.

Organizations representing this “new regionalism” are supported by

Non-Governmental Organizations (NGO’s), powerful and influential

individuals, and associations with the same pursuit of interest. They are

identified with reformists who share the same value, norms, and with

institutions that exist outside the government systems.

Below are some of the examples of Non-State Regionalism or the “New

Regionalism:

Organizations created by NGO’s and Goal/s

Civil Groups or Trade Unions

1) ASEAN Parliamentarians for To prevent discrimination, human

Human Rights rights, political freedom, and

democracy in the region.

2) The Migrant Forum in Asia To protect and promote the rights

and welfare of migrant workers

3) Rainforest Foundation in Central To protect indigenous peoples and

and South America the rainforest in Panama, Guyana,

Brazil, and Peru.

4) Regional Interfaith Youth Networks To promote conflict prevention,

resolution, peace, education, and

sustainable development.

G. Brief Summary

Globalization is a process of change, and is evolving over time. The

various changes of the economies had something to do with economic

integration among counties of the world. The integration of countries is not

only economic but also political and cultural. The Philippines is an import

dependent country. Its reliance on imported products exposes the Filipinos

to global culture. The products exported from other countries reflect the

culture of the producing countries. To the Philippines Mc Donald’s,

Starbucks, Hello Kitty, Hip hop, and the like introduced a global culture.
Trade relations while political in nature are invariably needed in international

trading with other foreign countries.

Despite the challenges of Napoleon Bonaparte to the Westphalian

System, and the collapse of the Concert of Europe after the World War 1,

the present day international system still has traces of history. Until this

time, states are considered sovereign or free from external control. The

monarchical, hereditary, and religious privileges are still recognized as state

symbols, and religious freedom is respected.

Countries, regions, organizations, associations, and all forms of

cooperation globally cannot reject global integration. They cannot ignore the

need to participate in regional assimilation for mutual economic stability and

political empowerment. Even if a country will abandon its membership to

regionalization, such country is still bound or forced to implement the

regional rules.

Regionalism even at present time is facing multiple challenges. The

ASEAN country members continue to disagree over which member countries

should sacrifice their sovereignty for the sake of regional stability. They also

disagree over dealings with China. The Philippines is unable to convince the

other countries to support its condemnation of China’s occupation of the

West Philippine Sea despite the decision of the International Court Justice

that the West Philippine Sea belongs to the Philippines.

H. Learning Activity 2
 Among the trading partners of the Philippines, choose one trading

partner and go to the web and accomplish these tasks. 1) Identify the major

imported products. 2) Identify the major exported products. 3) Map the

international connections and the means of transportation used. 4) Locate

the Philippines in this map of interconnections. 5) Identify the common Asian

cultures.

Using the world map or almanac, organize the countries of the world

according to their regional divisions. (North America, Southeast Asia,

Europe, and Middle East)

Module 3: The United Nations and the Contemporary Governance

There is no global government in this contemporary world. Although,

there are many internationalists that support the idea, and it is still an

imaginary possibility. With the advent of globalization processes, such may

become a reality. There is no nation-state, organization, country, or region

that can compel or force a state or states to obey predetermined or

inevitable global rules. However, there are some regulatory rules in the

general behavior of the states such as:

1) To follow global navigation routes,

2) To respect territorial boundaries, or sovereignty, and

3) To adhere to global norms- to have an international order despite

the lack of a single world government.

 Global governance is governed by the following sources: 1. Signing of

agreements or treaties for mutual understanding, 2. Joining regional and

international organizations, 3. Adhering to international laws, 4. Observing

global labor laws, trade policies, and environmental legislations, and 5.

Promoting global democracy and global governance.

A. Creation of International Order

After the collapse of the League of Nations at the end of the World War

II, countries were worried about another global war. They began to push for

the formation of a more lasting and dynamic international league. They

formed the creation of the United Nations (UN) and it became the most

prominent and influential International Organization of the Contemporary

World.

1. International Organization

One of the primary purposes of creating an international order is to

have peace, amity, and unity among nations. International Organizations

refers to international intergovernmental organizations or groups that are

primarily made up of member-states. The IOs are the prime movers of

globalization process. And to achieve the goal of IOs, they are given the

following powers:

1. Power of classification by creating powerful global standards.

Example:
 The UN High Commissioner for Refugee can require the

states to accept refugees entering their borders.

2. Power to fix meanings such as, “inclusive growth”, “economic

development”.

Example:

“security” need to be defined as not just security from

military violence, but also safety from environmental

harm.

3. Power to diffuse norms to produce regularity in behavior because

IO’s are staffed by various experts of the field and carry some form of

authority, like the World Bank and the IMF. They created norms regarding

the implementation and conceptualization of development projects. They can

also promote relevant norms like environmental protection, human rights,

and food security.

2. The United Nations

The UN is not a perfect organization, it has also its weaknesses and

limitations but so far it has achieved its primary goal of averting another

global war and for this, the creation of UN is considered a success.

The UN is divided into five vibrant and active organs:

1. The General Assembly. This is the UN’s main policymaking and

representative organ. Every year there is a General Assembly for the

election of GA President to serve one-year term office. In 1948, Carlos P.

Romulo, a Filipino Diplomat was elected as GA president from 1949-1950.

2. The Security Council. This is the most powerful organ composed of

15 member states. The GA elects ten of these 15 member-states to two-

year term but the other five member states are permanent and they are

referred to as “P5” which includes: 1) United States, 2) United Kingdom, 3)

France, 4) Russian, and 5) China. These states have been permanent

members since the foundation of UN, and cannot be replaced through

election.

The 5P has the following eminent powers:

1. Each country hold veto power,

2. One veto vote to stop SC action,

3. Economic and Social Council (ECOSOC). This 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.

4. The International Court of Justice (ICJ). This has the task of settling

disputes in accordance with international law. Its decision is binding when

states explicitly submit and agree to place themselves before the court’s

authority. However, it is still subject to the Security Council. The SC may

enforce the ICJ rulings but remain subject to the 5P’s veto power. The UN
created the United Nations Commission on Human Rights and in 1960,

Salvador P. Lopez, a Filipino Diplomat and other Filipinos helped design the

system whereby any citizen of any state may petition UN to look into human

rights violations in a country. The system exists until today and it is known

as the Commission on Human Rights (CHR). It is considered a national

Filipino heritage.

5. The Secretariat. These are the ten thousands of international UN

staff members who carry the work of the UN headed by the Secretary

General.

C. Challenges of the United Nations

The UN is not a world government but rather an international

organization formed by voluntary cooperation among the states of the

world- it has a global function thus naturally faces numerous challenges.

Among these are:

1. The powers of its various organs and programs are limited by the

need to respect the individual sovereignty of the nation-states.

2. The functions of the UN are limited depending on the cooperation of

the states.

3. It is very difficult for the UN to release a formal resolution to

authorize international acts of military intervention because of the P5’s veto

power. Even the United States cannot intervene in any war without the

authorization of SC.
 Historically there were military interventions made by the United

States of America for instance during the Kosovo War (Serbian Leader

Slobodan Milosevic against ethnic Muslim Albanians in the province of

Kosovo). The North Atlantic Treaty Organization (NATO) led by the United

States sought SC authorization to intervene the Kosovo War for

humanitarian reasons but China and Russia threatened to veto any action-

rendering the UN incapable of addressing the crisis. The NATO decided to

intervene on its own and it was a success.

Also in 2001, the United States sought to evade Iraq. It claimed that

Saddam Hussein had Weapons of Mass Destructions (WMD) that threatened

the whole world. However, the UN P5 members, China, Russia, and France

were not convinced. They vetoed the UN resolution for intervention, forcing

the United States to lead a small coalition of the willing with its allied

countries evaded Iraq. During the engagement it was found out or

discovered that there were no weapons of mass destructions.

D. Brief Summary

The International Organizations (IOs) and the United Nations (UN) are

the most visible symbols of global governance. The IOs have their own

rationalities and agendas in their participation in the global arena of world

affairs and politics while the UN is always occupying a significant position in

global governance.

E. Learning Activity 4
 Answer the following questions:

1. What is the significance of the United Nations Day Celebration?

2. Identify and list down as many national organizations connected

directly or indirectly to International Organization in your locality. What are

their programs of activities, and projects implemented?

3. How did these organizations or associations improve the living

economic conditions of the community? Do they empower the people in the

community to actively participate in global governance? (Support your

answer/s)