GLOBALIZATION

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Globalization makes societies more creative

and prosperous, but also more vulnerable.
Lord Robertson
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What is Globalization?

 It is a word used to describe the growing

interdependence of the world’s economies,
cultures, and population brought about by
cross-border trade in good and services,
technology and flows of investment, people
and information
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 It is the process by which ideas, knowledge,

information, goods and services spread
around the world.
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 In business the term is used in an economic

context to describe integrated economies
marked by free trade, the free flow of capital
among countries and easy access to foreign
resources, including labor markets, to
maximize returns and benefit for the
common good.
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 It is driven by the convergence of cultural and

economic systems. This convergence
promotes increased interaction, integration
and interdependence among nations. The
more countries and regions of the world
become intertwined politically, culturally and
economically, the more globalized the world
becomes.
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What is globalization to you?

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 Types of Globalization
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POLITICAL GLOBALIZATION

 It refers to the diplomatic negotiations

between nation-states. It includes the
standardization of global rules around trade
and the rule of law.
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 International bodies including the United

Nations, European Union and World Trade
Organization are key multinational
organizations designed to facilitate increasing
political globalization. This includes growing
free trade and multilateral agreements on
investment.
 Onez of the biggest positives of political
globalization is that it creates international rule
of law. It helps prevents war crimes and
polices bad actors on the international stage.
It can also help speed up other forms of
globalization, like economic globalization
because standardized rules around food and
trade standards make it easier for companies
to sell their goods overseas.
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 An argument against political globalization is

that it involves countries meddling in each
other’s businesses. Many people think we
shouldn’t interfere in the decisions of other
nations.
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Another criticism is that it led to the spread of

political ideology of neoliberalism that
increases the gap between the rich and the
poor.
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SOCIAL GLOBALIZATION

 It refers to the integration of our societies. It

refers to the idea that we now live in a shared
society. (There are many different cultures
within a society. But a society is a group of
people who all live together.)
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 And now more than ever, it feels as if we all

live in one society instead of a group of
different societies. For example…..
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 What happens in Afghanistan can affect what

happens in the United States.
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 A contagion in China spreads to all corners of

the world.
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 A nuclear weapon in North Korea can

threaten lives in South Korea.
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 Republic of China’s “One China Policy” or the

“One Country Two Systems Plan” can affect
Republic of China or Taiwan.
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 So, it appears, we are now all a common

society who need to learn to get along despite
our different cultures and beliefs because
what we do affects people all around the
world.
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 Another aspect of social globalization is the

movement of people. People can go from one
country to another easily and those who are
most highly educated can get jobs in different
nations with more ease than ever.
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ACTIVITY:
MAIN ISSUES OF SOCIAL GLOBALIZATION

Explain a main issue on social globalization.

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ECONOMIC GLOBALIZATION

It refers to the ways corporations do

business as multinational corporations
(MNCs) nowadays.
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 Whereas once McDonald’s only existed in the

United States of America and HSBC only
existed in the United Kingdom , now these
companies are all over the world in ‘a
globalized economy.’
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 You will also notice the movement of

manufacturing industries to developing
nations to make the most of low wages and
lowers the prices of goods.
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 This can help developing nations increase

overall employment but can be considered
exploitation of nations with poor working
conditions. It also takes good paying jobs
away from developed nations.
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TECHNOLOGICAL GLOBALIZATION

It refers to the spread of technology around the

world. Examples of this include the spread of
the internet, solar panel and medical
technologies which can all help improve the
lives of the people around the world.
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 The spread of technologies can be interpreted
as the ‘rising tide lifts all boats’ argument.

 Globalization means we can make the most

of the best technologies from all around the
world to make everyone’s lives better and
improve economies of the world.
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 Technological globalization is closely

connected to the anthropological “scapes
of globalization” theory by Arjun Appadurai.
He came up with the term “technoscapes” to
explain how technology spreads around the
world.
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What are the Scapes of Globalization?

Ethnoscape refers to the flow of people across

boundaries. While people such as labor
migrants or refugees travel out of necessity or
in search of better opportunities for themselves
and their families, leisure travelers are also part
of this scape.
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Technoscapes refer to the global

arrangement and movement of all sorts of
technology across worldwide boundaries.
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FINANCIAL GLOBALIZATION

 It refers to the ease at which money can be

spread around the world. The growth of stock
exchanges like the NYSE and FTSE as well
as internationalization of financial markets has
made it easier for people to transfer money
internationally.
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 The benefit of this is that it’s easy and cheap

to get investments for new business
ventures. You can find Chinese, French or
Canadian investor to wire you some money
to start your business instead of just relying
on local investors.
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 But many nations also face backlash

because of the sense that overseas
companies buy out too much of their
businesses, real estates and farming lands
which could be a threat to a nation’s
sovereignty.
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CULTURAL GLOBALIZATION

 It refers to the spread and mixing of cultures

around the world.
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 Arjun Appadurai talks about the possible

effect of ‘homogenization’ of culture, where
dominant nations like the United States
spread their cultures through television and
movies, which leads to the dilution and loss
of local and indigenous cultures and the rise
of a global culture.
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 One example is the spread of punk music

from the United Kingdom and United States
of America around the world in the 70’s.
Other examples include the spread of Disney
music, secularism, and consumer culture.
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ECOLOGICAL GLOBALIZATION

 It refers to the idea that the world needs to be

considered one interconnected ecosystem.
This means that the world needs to work
together to address ecological issues that
cross the borders of nation-states.
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 The hole in the Ozone layer, which requires

the world to ban CFCs.
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Climate change which will affect the poorest

nations in the Pacific and South East Asia even
though much of the damage is caused by
developed nations like the United States.
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To address these issues, climate accords like

the Kyoto protocol and the Paris Climate
Agreement have been put into place, where
each nation agrees to invest in lowering its
carbon emissions.
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GEOGRAPHICAL GLOBALIZATION

It refers to the idea that the world is no longer

seen as groups of distinct nations as much as
it once was.
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 We now work in a multinational blocs to make

decisions and nations work together to solve
problems.
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It also refers to the fact that we’re now able to

travel between nations with increasing ease.
You can go from the United States to Europe
within a day, for example. People can identify
as belonging to multiple geographic regions,
especially if they hold multiple passports.
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ACTIVITY: CHALLENGES OF
GLOBALIZATION

In what ways does globalization challenge

the world and the Philippines?
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What are the Waves of Globalization?

 First wave of Globalization is a phrase used

by economists to describe the world’s first
major period of globalization of trade and
finance which took place between 1870 and
1914.
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This period from 1870 to 1914 represents the

peak of 19th century globalization. First
globalization is known for increasing transfers
of commodities, people, capital and labor
between and within continents.
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First wave of globalization also includes

technological transfers and the rise of
international, cultural and scientific cooperation.
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The 1876 World Fair in Philadelphia was the

first not to take place in Europe.

The modern Olympics began in 1896.

The first Nobel prizes were awarded in 1901.

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International trade grew for several reasons.

Constant technological improvement and
increased usage associated with the decline
in international freight rates.
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The development of railways lowered the

transport costs which resulted in a massive
migration within Europe and from the Old
World to the New World.
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Peace between main powers and reduction of

trade barriers promoted trade.
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Exchange-trade stability and reduction of

uncertainty in trade made possible by the gold
standard.
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The period 1870-1914 is also known as the

laissez-faire period. Laissez-faire is a policy of
minimum governmental interference in the
economic affairs of individuals and society.
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Laissez-faire is a policy of minimum

governmental interference in the economic
affairs of individuals and society. The doctrine
of laissez-faire is usually associated with the
economists known as Physiocrats who
flourished in France from about 1756 to 1778.
The term laissez-faire in French means,
“allow to do”.
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The period saw financial crises comparable

to the late 20th and early 21st centuries and
the end of the first globalization is associated
with the collapse of international trade when
World War 1 started.
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In the second wave of globalization, the

International regulations and organizations to
support economic integration at the global
level were created after World War II.
Cooperation was based on the Bretton
Woods Agreement of 1944.
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The Bretton Woods Agreement established a

system through a fixed currency exchange
rate could be created using gold as the
universal standard.
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The agreement involved representatives from

44 nations and brought about the creation of
the International Monetary Fund (IMF) and
World Bank.
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The second wave of globalization covers the

period of intensive internationalization of
transportation systems, communication,
commerce, science and many other human
activities that unfolded between the middle of
the 19th century and the collapse of second
phase of globalization that resulted from the
outbreak of war.
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The fall of the Berlin Wall in 1989 can be seen

as a suitable starting point then for the third
wave of globalization. In the last few decades,
international trade has grown significantly
faster than total production. The export of
goods amounted to 31 percent of global GDP
in 2006 as compared to 12 percent in 1970.
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The third wave of globalization was first

identified in the early 1990’s and is marked by
declining emphasis on industrial attraction
and retention and an increasing focus on
strategies such as public-private partnerships,
establishing regional networks, developing
industrial clusters and increasing human
capital.
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ACTIVITY: Public Private Partnership (PPP)
Approach in Local Governance

Give an example of an LGU experience on

PPP approach in local governance. Explain
your answer.
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ACTIVITY: The Impacts of the IMF’s SAP on the
Philippines: An Overview

1. Read the article, “The Impacts of the IMF’s SAP on the Philippines.”
2. Discuss the salient points of the article with your group members.
3. Explain five impacts of the International Monetary Fund’s (IMF’s)
Structural Adjustment Program (SAP) on the Philippines.
How did it affect the Philippine economy and the Filipino in general?
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What are the Theories of Globalization?

1. Theory of Liberalism

Liberalism sees the process of globalization as

market-led extension of modernization. It is the
result of “natural” human desires for economic
welfare and political liberty. Connectivity is derived
from human drives to maximize material well-being
and to exercise basic freedom.
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This relates in the form of:

1. Technological advances particularly in the
area of transport, communications and
information processing; and,
2. Suitable legal and institutional arrangements
to enable markets and liberal democracy to
spread on a Transworld scale.
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Liberalists stress the necessity of

constructing institutional infrastructure to
support globalization. All this has led to
technical standardization, administrative
harmonization, translation arrangement
between languages, laws of contract and
guarantees of property rights.
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Theory of Political Realism

Advocates of this theory are interested in
questions of state power, the pursuit of
national interests and conflict between states.
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States are inherently acquisitive and self-

serving and heading for inevitable competition
of power. Some of the scholars stand for a
balance of power, where any attempt by one
state to achieve world dominance is
countered by collective resistance from other
states.
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That a dominant state can bring stability to

world order. The ‘Hegemon’ state (presently
the US or G7/8) maintains and defines
international rules and institutions that both
advance its own interests and at the same time
contain conflicts between other states.
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Globalization has also been explained as a

strategy in the contest for power between
several major states in contemporary world
politics.
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The point of concentration is on the activities

of Great Britain, China, France, Japan, USA,
and some other large states. Thus, the
political realists highlight the issues of power
and power struggles and the role of states in
generating global relations.
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States are not equal in globalization, some

being dominant and others subordinate in the
process. But they fail to understand that
everything in globalization does not come
down to the acquisition, distribution and
exercise of power.
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Globalization has also cultural, ecological,
economic and psychological dimensions that
are not reducible to power politics. It is also
about the production and consumption of
resources, about the discovery and
affirmation of identity, about the construction
and communication of meaning, about
humanity shaping and being shaped by
nature. Most of these are apolitical.
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ACTIVITY: Stronger Open Trade Policies
enable Economic Growth for All

1. Read the article, “Stronger Open Trade

Policies enable Economic Growth for All”
individually.
2. Discuss the article with your group members.
3. Explain five salient points in the article.
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Theory of Marxism
Marxism is principally concerned with the
modes of production, societal exploitation
through unjust distribution and social
emancipation through the transcendence of
capitalism.
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What is Capitalism?

An economic and political system in which a

country’s trade and industry are controlled by
private owners for profits, rather than by the
state. It is an “Era of free-market capitalism.”
The essential feature of Capitalism is the
motive to make profits.
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According to Marxists, globalization happens

because Transworld connectivity enhances
opportunities of profit-making and surplus
accumulation.
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Marxists reject both liberalist and political

realist explanations of globalization. Liberal
talk of freedom and democracy make up a
legitimating ideology for exploitative global
capitalist class relations.
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The neo-Marxists in dependency and world-

system theories examine capitalist
accumulation on a global scale on lines of
core and peripheral countries.
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Theory of Constructivism
Globalization has also arisen because of
the way that people have mentally constructed
the social world with particular symbols,
language, images and interpretation. It is the
result of particular forms and dynamics of
consciousness.
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Patterns of production and governance are

second-order structures that derive from
deeper cultural and socio-psychological
forces. Such accounts of globalization have
come from the fields of Anthropology,
Humanities, Media of Studies and Sociology.
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Constructivists concentrate on the ways that

social actors ‘construct’ their world. Both
within their own minds and through inter-
subjective communication with others.
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Conversation and symbolic exchanges lead

people to construct ideas of the world, the
rules for social interaction and ways of being
and belonging in that world.