THEORIZING

GLOBALIZATION
MS. KRIZL KISH FLORIA DELIMA
THEORY
Deals with the set of ideas and theories that will be
helpful in thinking about globalization.
What will be presented below will analyze
globalization as a process that increase either
HOMOGENEITY or HETEROGENEITY.
IMPERIALISM

 Methods employed by one nation-state to

gain power over an area/s and then exercise
control over it.
 More on economic control.
Q: How it is associated to globalization?

Overtime, the nation of an empire, the process

of imperialism, came to be associated with
rulership over vast geographic spaces and the
people who lived there. Like migration, trade
and communication these process under the
heading of globalization existed between the
imperial power and the geographic areas that it
controlled.
EX. US Imperialism
 COLONIALISM

• It is related to imperialism.
• It is the creation by the colonial power
of an administration in the area that has
been colonized to run its internal
affairs.
• Almost always a consequence of
imperialism.
• It is the implanting of settlements on
distant territory (cited on Ashcoft,
Griffiths, and Tiffin 1998: 45).
COLONIALISM
Decolonization
• the process of revealing and
dismantling colonialist power
in all its forms.
• achievement of political
independence.
Neo-Colonialism
• efforts at control over the
former colonies, and other
nation-states, grew much more
indirect, subtle (e.g. through
cultural and educational
institutions) and focused on
economic control and
exploitation.
• colonialist having indirect
control
Post-Colonialism
• the era in once-colonized
areas after the colonizing
power has departed. In
recent years, it relates to
various developments that
take place in a former colony
after the colonizing power
departs.
• gains national identity.

Critical Issues in Globalization
studies in relation to Post-
Colonialism:
1. Issue on National Identity (esp.
the difficulty of gaining identity)
2. Negative Stereotypes developed
in the West about those who live
in the east.
Even after political independence and development has been installed and former colonies building its national
identity, there are still tentacles of control (we see it in our way of talking, educational system standard, and
standard of beauty and sexy, the way of dressing and a lot more). In which in the purpose of decolonization as to
dismantle the hidden aspects of those institutional and cultural forces that still indirectly controlling the former
colony.

Neo-Colonialism – study of Mr. Alinor S. Datumanong. Neo-colonialism is subtle because it is insidious and
harder to detect and therefore more difficult to resist and combat (since it is also very enticing – scholarship
given)

Post Colonialism – issue on National Identity (are we united as one), do we consider ourselves as Filipinos?
Look at Japan (they wont blame someone in WWII)
issue of gaining identity

Negative Stereotypes - that we are uncivilized, that we intellectually inferior, that we are exotic (different from
the rest of the world), that we are less talented, that Filipinos are the World's slaves------------this is very clear in
the history of western literature (in writings, books, poems, articles, films/movies, etc.
Q? Where does imperialism and colonialism became similar
and where do they part from each other?

While both imperialism and colonialism involve economic and

political as well as cultural control, imperialism is more defined
by economic control (exploitation), while colonialism is more
about political control.
Imperialism- WTO, WB, IMF – exert so much influence in our policy
making system without making colonizing us territorially (reducing
tariffs (taxes levied to foreign products) before they will let you lend
money)
MNCs – monopolization of our market thus they can set the price
they produce so high

Colonialism – Just like what the Spaniards, Americans, and the

Japanese did when they colonized our country. The Royal Crown of
Spain sent Spaniards in the Philippines including Friars or Priest to
govern the Filipinos. It started our colonial mentality that the whiter
you are, the superior you are, the beautiful you are , the brighter you
are. [make up and way of dressing]
 DEVELOPME
NT
• Historically, it preceded the global age (McMichael 2008: 21).
• It is regarded as a “PROJECT” primarily concerned with the economic
development of specific nation-states not regarded as sufficiently developed.

Q: Is development project applicable to all nation-states?

No, as Andre Gunder Frank (1969), the developed countries were never in the same
position as less developed countries today; the developed countries were
UNDEVELOPED while the less developed countries were UNDERDEVELOPED. The
result is that the path followed by the former is not necessarily the best one for the latter.
To summarize the “one-size-fits-it all concept (development project) is not feasible to all
state.
DEVELOPMENT

 Foreign Direct Investment  Foreign Aid

 Import-Substitution
Countries (usually in the South)
“encouraged” to develop their
own industries: instead of
producing for export, and relying
on imports from other countries,
especially the North.
(FDI )
Is an investment by a firm in one
nation-state in a firm in another
nation-state in order gain control.
this encompasses assistance, as well
as aid in terms of food (example,
the US shipping its excess wheat to
developing countries)
Development- USAID, AUSAID, JAPAN AID, etc. (there is no such thing
as freelunch). This became a tool for the CORE country to remain in their
place and refrain the PERIPHERY from developing. It is like a
euphemism of how to control the development for rest of the world.

Import-Substitution –example: developing countries were urged to

develop an automobile industry to “develop”, however, the North will
also benefit this policy thousand fold.

However, the North will also benefit from Import Substitution

development by increasing Foreign Direct Investment (FDI) in the
industries that emerged in less developed countries.
 The South – needs capital by borrowing or inviting the North to invest in their
country.

Foreign Aid - good in the short run but in the longer run, it often adversely
affected the ability of some countries to grow and produce their own food (e.g
wheat) and therefore led to greater food dependency.

Dependency Theory - just like in military aspect. Underdevelopment is not an

aberrant (abnormal) condition, or one cause by the less developed countries
themselves, but it is built into development project (as well as global capitalism).
It also involves the idea that instead of bringing economic improvement,
development brings with it greater impoverishment (poor state)
 DEPENDENCY THEORY
• Development of the nation-states of the South
contributed to a decline in their independence and
to an increase in their dependence on the North
(Cardoso and Falleto, 1979).
• The idea of the developed countries being
independent and the less developed countries being
dependent.
Q: Is underdevelopment caused by the
less developed countries themselves?
No, under the development project, the developed
countries, with the global capitalist system as a tool
made the undeveloped countries underdeveloped or
less developed.
Why is it that the path followed by the developed countries today is
not necessarily the best one for the underdeveloped countries today?

Answer: The developed countries today were undeveloped

while the less developed countries today are
“underdeveloped”.

Undeveloped – lacking in development or not developed at all

Underdeveloped – not adequately developed but on the process of being a developed on.
Andre Gunder Frank argues that behind the whole idea of development is the notion that the present of less
developed countries resembles the past of the developed countries. Thus, if the less developed countries simply
follow the same path taken by developed countries, they too will become developed.
Were UNDEVELOPED (the developed countries today) VS UNDERDEVELOPED (the less developed
countries today)
Frank further argued that underdevelopment is a product of a capitalist system and of the relationship between
developed and underdeveloped countries within that system.

He contends that the less developed countries can only develop if they are independent of most of these
capitalist relationships, which, after all, are really the cause of their lack of development.
 WORLD SYSTEM THEORY

• It sees the world divided mainly between the

CORE and the PERIPHERY with the nation-states
associated with the latter being dependent on the
and exploited by the core nation-states.

PROPOSITION IN EXCHANGE TO
Q: In analyzing using world system DEVELOPMENT PROJECT
theory, is development project a success? According to Ritzer, GLOBALIZATION
PROJECT at least sounded equitable since it
According to Ritzer, development project is a failure was inherently multi-lateral and multi-
and it did not change the system. It is offensive directional while DEVELOPMENT
because it tended to elevate the North while PROJECT is unilateral and undirectional,
demeaning the SOUTH. with money and other assistance flowing
from the North to the South.
The development project was a failure since:

1. The world today is characterized by great inequalities (esp.

economic)
2. The South did not develop to any appreciable degree (they
even fell further behind)
3. It tended to elevate the North while demeaning everything
with the South
AMERICANIZATION

• It is related to globalization, but not identical or

reducible, to it.
• Richard Kuisel (1993)- It is the import by non-
Americans of product, images, technologies, practices
and behavior that are closely related to America
(i.e.McDonalization [Ritzer 2008), Coca-Colanization
(Kuisel 1993), Disneyization (Bryman 2004) Wal-
Martization Starbuckization (Ritzer 2008)]. US Sec. Henry Kissinger
(1999), says that
Q: Is America still an industrial giant?
“globalization is another
According to Ritzer (2008), that beginning the 21 st century
Americanization was no longer about America as an name for the dominant
industrial giant but more on as a CONSUMPTION giant.
role of United States.
Anti-Americanism as Global Process

Anti-Americanism - an amorphous concept that both opposition to US cultural,

economic, and political policies, as well as more sweeping negative generalization
about the US.
-being critical to US social, economic, political institutions,
traditions, and values
- contempt of American National Character
- the dislike of American people, manners, behavior, dress and so on
- rejection of American Foreign Policy
- a firm belief in the malignity of American influence and presence
anywhere in the world,
 1. Japanization 2. Asian
Threats to US Tigers (e.g. Singapore)
dominance: 3. European Union 4.
China
NEO-LIBERALISM

• Liberal commitment to individual liberty, a belief in

the free market and opposition to state intervention.
• Radically individualistic.
• Often referred as “WASHINGTON CONSENSUS”
• The idea of FREE MARKET
Deregulation-commitment by nation-states to limit or
eliminate restraints on the free market and free trade.
Low taxes and to tax cuts.
Minimize spending on welfare and safety
net.
Idea of tax cuts for business and industry.
 Having a neo-liberal state where state is to be subordinate to the economy .
Privatizing various sectors; profit-making; reduce barriers; glorify virtue of free
competition.

Q: DOES NEO-LIBERALISM MADE THE STATE OR INSTITUTIONS

IRRELEVANT?

According to Harvey (2006: 28) argues that “neo-liberalism has not made the state or particular
institutions and practices of the states irrelevant. Rather, the institutions and practices of the state
have been transformed to better attune them to the needs and interests of the neo-liberal market
economy. “

CRITIQUE
Double Movement- coexistence of the laissez-faire market and the reaction against it.
 NEO-LIBERALISM

Milton Friedman – played a key role in the effort to protect traditional liberal ideas, to develop neo-liberal theory,
and to sponsor its utilization by countries throughout the world.
- helped spreading to the whole world neo-liberal ideas.

“Chicago Boys”- they spread the neo-liberal doctrine taught at Chicago by Friedman and played a central role in it
becoming policy in a number of nations.

“Shock Doctrine”- the view that a total overhaul of an economy required a shock; and the economic policies put in
place were designed to change the economy dramatically. (involves privatization of industry, the deregulation of the
economy, and the reductions in a nation’s spending on social welfare programs).
- that’s why we should embrace neo-liberal ideas.
Shock Therapy

Laws and regulations were dismantled.

The nation’s capitalists were the main beneficiaries of the therapy.

Much of the World came to accept, or was coerced into accepting, neo-liberalism.

The International Monetary Fund (IM) and the World Bank (WB) both were heavily staffed by the products of
the Chicago Economics Department practiced a form of shock therapy known as structural adjustment.

Structural Adjustment- in order to receive aid from these organizations, receiving nations had to restructure
their economies and societies in line with neo-liberal theory.

Neo-liberalism is often referred to as “Washington Consensus”. The term “Washington Consensus” means
“unimpeded private market forces are the driving agents of growth. Absent was any concern in equity,
redistribution, social issues, and the environment.
 Neo-Liberalism: Basic Ideas

William Easterly is opposed to any form of collectivism and state

planning because it inhibits, if not destroys, freedom.

ECONOMIC FREEDOM is related to

ECONOMIC SUCCESS
CENTRAL PLANNING is an ECONOMIC
FAILURE
Easterly offers several reasons why ECONOMIC FREEDOM is related to
ECONOMIC SUCCESS:

1. It is extremely difficult to know in advance what will succeed and what will fail. Economic
Freedom permits a multitude of attempts and failures are weeded out.
2. Markets offer continuous feedback on what is succeeding and failing; central planners lack
such feedback.
3. Economic Freedoam leads to the ruthless reallocation of resources to that which is
succeeding; central planners often have vested interests that prevent such reallocation.
4. Economic Freedom permits large and rapid increases in scale by financial markets and
corporate organizations.
5. Individuals and corporations are willing to take great risks; central planners are risk-averse
because of their personal vulnerability if things go wrong.
 CENTRAL IDEAS OF NEO-LIBERALISM

1. FREE MARKET- a market free of any impediments

2. FREE TRADE
3. DEREGULATION- commitment by nation states to limit or eliminate
restraints on free market and free trade.

Note: The Principles of free market are not restricted to the economy but
can be applied to every sphere of society, including CULTURE,
POLITICS, and the SOCIAL WORLD.

NEO-LIBERALIM is radically INDIVIDUALISTIC

 The Neo-liberal State

 The state is subordinated to the economy.

 The focus is on those who gain from capital accumulation (the capitalists).
 Commitment to LOW TAXES and to TAX CUTS.
LOW TAXES and to TAX CUTS are believed to stimulate the economy by encouraging people to earn more and ultimately to invest and to spend more.
 Tax Cuts for business and industry, businesses would use tax savings to invests more in their operations and infrastructure, thereby generating more business, income,
and profits.
 High Profits would trickle down and benefits most people in society.

“Trickle-down Theory”- a theory that financial benefits given to big business will in return pass down to smaller business and consumers.

o Trickle Down – like domino effects theory. Everyone will benefits. Multiplier effect.

 Spending on welfare should be minimized and the safety net for the poor should be minimized
o 4ps/ minimum wage/ philhealth – harming the people (dependent)
The Neo-liberal State

 Limited Government
Wolf (2005) argues that the state must not only be limited, but its job is to cooperate with open
global market.

 Neo-liberal state is interested in Privatization (Transportation, Telecommunications, oil and other resources,
utilities, social housing, education)
 Neo-liberal state extols the virtuous of free competition. And it is opposed to, and works against, groups, (e.g.
unions, social movements) that operate to restrain business interest.

In summary, Harvey (2006) argues that Neo-liberalism has not made the state or particular institutions (e.g. courts)
of the state irrelevant. Rather, the institutions and practices of the state have been transformed to better attune
them to the needs and interests of the neo-liberal market economy.
Critiquing Neo-Liberalism: Karl Polanyi

Karl Polanyi is the great critic of Neo-liberalism.

- If laissez-faire system is left to itself, it threatened to destroy society.

- The reaction of laissez-faire system is called “Double Movement”.
- Polanyi saw “counter-reactions” as necessary and desirable to the evils of the free market.
- Polanyi believed that collective planning and control would produce more freedom, more freedom for all,
than was the available in the liberal economic system.
Contemporary Criticisms of Neo-liberalism

Problems of Neo-liberalism

1. Neo-Liberalism assumes that everyone in the world wants very narrow and specific types of economic
well-being and political freedom.
2. Neo-Liberalism conceals or obscures the social and material interests of those who push such an
economic system with its associated technological, legal, and institutional systems.
3. Neo-Liberalism produced financial crisis in various countries throughout the world (e.g. Mexico,
Argentina)
4. Neo-Liberalism adheres to “creative destruction”- the essence of capitalism is the need to destroy in
order to create.
5. Neo-Liberalism led to inequality, marginalization, and the lowest economic growth rates ever recorded
and in some cases negative growth.
6. Politically, Neo-Liberalism has led to the decline of the state.
In relation to our topic- GLOBALIZATION:

1. Neo-Liberalism is global in the sense that it has become an economic and

political system that characterize a wide range of societies throughout the world.
2. Neo-Liberalism is an idea system that flowed around the world.
3. International Organizations especially the IMF, WTO, and the World Bank as
dominated by Neo-Liberal ideas and as imposing them, in the form of various
demands for restructuring.
4. Opposition to Neo-Liberalism is also global.
NEO-MARXIAN THEORIES

 Neo-Marxists have done more than critique to neo-liberalism, they have developed their own perspectives
on, and theories of, capitalism.
NEO-MARXIAN THEORIES

Transnational Capitalism
LESLIE SKLAIR DISTINGUISHES TWO
SYSTEM OF GLOBALIZATION:
1. NEO-LIBERAL CAPITALIST
SYSTEM
2. SOCIALIST SYSTEM
Theories are guides in
understanding things.
Ritzer, George. Globalization: The
Essentials. 2011. John Wiley &
Sons Ltd.