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Introduction of Globalization
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WHAT IS GLOBALIZATION- Different scholars
have different viewpoints of what globalization
is. Some would view globalization as a positive
phenomenon, some would see its detrimental
effects on society which cannot be separated
from issues of global economic and cultural
imperialism
THREE KINDS OF GLOBALISM
GLOBALIZATION: A WORKING DEFINITION
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ONE OF THE MOST POPULAR
DEFINITIONS OF GLOBALIZATION IS
PROVIDED BY MANFRED STEGER (2009)
WHICH DEFINED GLOBALIZATION AS A
SET OF SOCIAL PROCESSES THAT APPEAR
TO TRANSFORM OUR PRESENT SOCIAL
CONDITION
OF
WEAKENING
NATIONALITY INTO ONE GLOBALITY. IT IS
ABOUT
THE
UNPRECEDENTED
COMPRESSION OF TIME AND SPACE AS A
RESULT OF POLITICAL, ECONOMIC AND
CULTURAL CHANGE, AS WELL AS
POWERFUL
TECHNOLOGICAL
INNOVATIONS.
MANFRED FURTHER DIFFERENTIATED
GLOBALIZATION, GLOBALITY AND
GLOBALISM
WHILE GLOBALIZATION IS A PROCESS,
GLOBALITY SIGNIFIES A FUTURE SOCIAL
CONDITION CHARACTERIZED BY THICK
ECONOMIC, POLITICAL AND CULTURAL
INTERCONNECTIONS AND GLOBAL
FLOWS THAT MAKE CURRENTLY
EXISTING POLITICAL BORDERS AND
ECONOMIC BARRIERS IRRELEVANT.
GLOBALISM MEANS GLOBALIZATION AS
AN IDEOLOGY REFLECTING SHARED
IDEAS, NORMS, VALUES ACCEPTED AS
TRUTH.
GLOBALISM MEANS GLOBALIZATION AS
AN IDEOLOGY REFLECTING SHARED
IDEAS, NORMS, VALUES ACCEPTED AS
TRUTH.
GLOBALISM MEANS GLOBALIZATION AS
AN IDEOLOGY REFLECTING SHARED
IDEAS, NORMS, VALUES ACCEPTED AS
TRUTH.
1. MARKET GLOBALISM ADVOCATES
PROMISE A CONSUMERIST, NEOLIBERAL
FREE-MARKET WORLD. THIS IDEOLOGY
IS HELD BY MANY POWERFUL
INDIVIDUALS,
WHO
CLAIM
IT
TRANSMITS DEMOCRACY AND BENEFITS
EVERYONE. HOWEVER, IT ALSO
REINFORCES INEQUALITY, AND CAN BE
POLITICALLY MOTIVATED.
2. JUSTICE GLOBALISM ENVISAGES A
GLOBAL CIVIL SOCIETY WITH FAIRER
RELATIONSHIPS AND ENVIRONMENTAL
SAFEGUARDS. THEY DISAGREE WITH
MARKET GLOBALISTS WHO VIEW
NEOLIBERALISM AS THE ONLY WAY.
3. RELIGIOUS GLOBALISM STRIVES FOR A
GLOBAL RELIGIOUS COMMUNITY WITH
SUPERIORITY
OVER
SECULAR
STRUCTURES.
STEGER
(2009)
FURTHER
DEFINES
GLOBALIZATION AS THE EXPANSION AND
INTENSIFICATION OF SOCIAL RELATIONS AND
CONSCIOUSNESS ACROSS WORLD-TIME AND
WORLD SPACE.
EXPANSION REFERS TO BOTH THE CREATION OF
NEW
SOCIAL
NETWORKS
AND
THE
MULTIPLICATION OF EXISTING CONNECTIONS
THAT CUT ACROSS TRADITIONAL POLITICAL,
ECONOMIC, CULTURAL AND GEOGRAPHICAL
BOUNDARIES.
THESE CONNECTIONS OCCUR AT DIFFERENT
LEVELS. SOCIAL MEDIA FOR EXAMPLE ESTABLISH
A NEW GLOBAL CONNECTIONS BETWEEN
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PEOPLE, WHILE NGO'S ARE NETWORKS THAT
CONNECT A MORE SPECIFIC GROUP.
ECONOMIC GLOBALIZATION
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INTENSIFICATION REFERS TO THE EXPANSION,
STRETCHING, AND ACCELERATION OF THESE
NETWORKS.
FOR EXAMPLE, THERE HAS ALWAYS BEEN A
STRONG FINANCIAL MARKET CONNECTING
LONDON AND NEW YORK, WITH THE ADVENT OF
ELECTRONIC
TRADING.
AFTER
CHINA
COMMITTED ITSEKF TO THE GLOBAL ECONOMY
IN THE 1980'S, SHANGHAI STEADILY RETURNED
TO ITS OLD ROLE AS A MAJOR TRADING POST. IT
IS NOT ONLY IN FINANCIAL MATTERS THAT WE
CAN FIND THESE CONNECTIONS. IN 2012, WHEN
THE MONSOON RAINS FLOODED MUCH OF
BANGKOK, THE HONDA PLANT MAKING SOME
OF THE CRITICAL CAR PARTS TEMPORARILY
CEASED PRODUCTION. HENCE, THIS HAD A
STRONG NEGATIVE EFFECT ON HONDA-USA
WHICH RELIED HEAVILY ON THE PARTS BEING
IMPORTED FROM THAILAND. THE FINAL
ATTRIBUTE OF THIS DEFINITION RELATES TO THE
WAY PEOPLE PERCEIVE TIME AND SPACE.
GLOBALIZATION PROCESSES DO NOT MERELY
OCCUR AT AN OBJECTIVE, MATERIAL LEVEL BUT
THEY ALSO INVOLVE SUBJECTIVE PLANE OF
HUMAN CONSCIOUSNESS. PEOPLE BEGIN TO
FEEL THE WORLD HAS BECOME A SMALLER
PLACE AND DISTANCE HAS COLLAPSED FROM
THOUSANDS OF MILES TO JUST A MOUSECLICK
AWAY.
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INTERNATIONAL TRADE
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Structures of Globalization
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The idea of a world economy is identified
with regular day to day existence
dependent on the interconnected idea
of the different countries around the
world.
the growth of globalization of the
world's economies to a great extent is
dependent on the advancement of
science and technology.
The International Monetary Fund (IMF)
regards “economic globalization’ as a
historical process representing the result
of human innovation and technological
progress. It is characterized by the
increasing integration of economies
around the world through the
movement of goods, services, and
capital across borders.
These changes are the products of
people, organizations, institutions, and
technologies. As with all other processes
of globalization, there is a qualitative
and subjective element to this definition
According to the United Nations (as cited
by Shangquan, 2000), economic
globalization refers to the increasing
interdependence of world economies as
a result of the growing scale of crossborder trade of commodities and
services, flow of international capital
and wide and rapid spread of
technologies.
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The conclusion of World War ll signaled
the beginning of trade facilitation
around the globe. Economies set rules
and guidelines for international trade
which led to the formation of General
Agreement on Tariffs and Trade (GATT).
These trade rules were developed
through series of rounds or meetings of
member ‘economies.
International Trade (IT) is the process
and system when goods, commodities,
services cross national economy, and
boundaries in exchange for money or
good of another country.
Global trade has grown dramatically
since the post-cold war era as a result of
increasing demand of goods and services
of countries. This global norm is a
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reflection of growing practice of
internalizing and globalizing local
products and services.
TRADE THEORIES: (2 types)
1. Descriptive Theory
- Deals with the natural order and
movement of trade. It describes the
pattern of trade under the idea of laissez
faire (leave alone).
- It refers to the notion that individuals
are the best economic agents to solve
problems through invisible hand rather
than the government policies.
- Addresses the questions of which
product to trade, how much product to
offer and produce, and which country to
trade in the absence of government
restrictions.
2. Prescriptive Theory
- Prescribes whether government, an
important economic institution, should
interfere and restrict with the
movement of goods and services.
- Views government to have a
participation in deciding which countries
to alter the amount, composition and
direction of goods.
- The pressing question describing
descriptive theory is “Should the
government control trade?”
Three Perspectives on International Trade
1. Economic Liberals
- David Ricardo and Adam Smith were
known critics of late-eighteenth century
on the abuses of mercantilism in
England. Their liberal ideas and
contribution in understanding global
trade are still relevant until today.
- For Ricardo, his influential work Law of
Comparative Advantage explains that
free trade efficiency is attainable if two
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countries can produce more goods and
trade products separately.
The advantage of this theory in
international trade is deriving from the
principle of specialization and division of
labor (Nau, 2009). Countries have
different resources and talents; they are
better in performing in that economic
activity than other economic activities
2. Mercantilism
- An economic theory emerged from
about 1500-1800. This period was the
emerging eras of nations-states and the
formation of more central governments.
This system flourished due to the
following reasons:
1. Higher export than import.
2. Export less high valued product and
import less high valued product
3. The benefits of colonial powers
3. Structuralists
- The earliest wave of mercantilism was
described as classical imperialism. The
drive of European countries to explore
and colonize underdeveloped countries
originated
from
the
aggressive
mercantilist behavior of European
economies.
- This idea was extended to the practice of
modern capitalist-imperialist approach
by countries and economies that have
the immense resource through the use
of hard power over developing and less
developed countries.
The Modern World System (MWS) theory
deveIoped by Immanuel Wallerstein, explains
the contact of economies between core, semi
peripheral, and peripheral countries in the
world. The core states have the absolute
advantage over the other through unequal
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exchange and extraction of raw materials from
periphery and semi-periphery.
Thus, the economic globalization and market
integration of the 21st century are extensions of
the same economic motives of imperial powers
of the nineteenth and twentieth centuries.
Market Integration
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Much of globalization is anchored on the
role global economy plays in the
different nations. We often think of
economy as something that covers a
wide variety of financial aspects like
employment, Gross Domestic Product
(GDP) or the stability of stock markets.
However, we must understand that the
economy is composed of people. It is the
social institution that organizes all
productions, consumptions and trade of
goods in the society.
International Financial Institutions
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An international financial institution
(IFI) is a financial institution that has
been established (or chartered) by more
than one country, and hence are
subjects of international law. Its owners
or shareholders are generally national
governments,
although
other
international institutions and other
organizations occasionally figure as
shareholders.
Bretton Woods System
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The major economies in the world had
suffered because of World War I, the
Great Depression in the 1930, and World
War II.
The recurrence of lack of cooperation
among nation-states, political instability,
and economic turmoil, reduction of
barriers to trade and free flow of money
among nations became the focus to
restructure the world economy and
ensure global financial stability.
The Bretton Woods System key elements.
1. Expression of currency in terms of gold
or gold value to establish a par value.
2. Official monetary authority in each
country (a central bank or its equivalent)
would agree to exchange its own
currency for those of other countries at
the established exchange rates, plus or
minus a one-percent margin.
3. Establishment of an overseer for these
exchange rates; thus, the international
monetary fund (IMF) was found.
Two General Agreement on Tariffs and Trade
(GATT) and the World Trade Organization
(WTO)
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Global trade and finance was greatly
affected by the Bretton Woods System.
One of the systems born out of Bretton
Woods was the General Agreement on
Tariffs and Trade (GATT) that was
established in 1947.
GATT was a forum for the meeting of
representatives from 23 member
countries. It focused on trade goods
through multinational trade agreements
conducted in many rounds of
negotiation.
The WTO headquarters is located in
Geneva, Switzerland with 152 member
states as of 2008. Unlike GATT, WTO is
an
independent
multilateral
organization that became responsible
for trade in services, non-tariff-related
barriers to trade, and other broader
areas of trade liberalization.
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International Monetary Fund and the World
Bank
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IMF and the World Bank were founded
after the World War II. Their
establishment was mainly because of
peace advocacy after the war. These
institutions aimed to help the economic
stability of the world. Both of them are
basically banks, but instead of being
started by individuals like regular banks,
they were started by countries.
Most of the world’s countries were
members of the two institutions. But, of
course, the richest countries were those
who handled most of the financing and
ultimately, those who had the greatest
influence.
IMF and the World Bank were designed
to complement each other. The IMF’s
main goal was to help countries which
were in trouble at that time and who
could not obtain money by any means.
Perhaps, their economy collapsed or
their currency was threatened. IMF, in
this case, served as a lender or a last
resort.
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North American Free Trade Agreement(NAFTA)
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The Organization for Economic Cooperation and
Development (OECD), the Organization of
Petroleum Exporting Countries (OPEC), and the
European Union (EU)
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The most encompassing club of the
richest countries in the world is the
Organization for Economic Cooperation
and Development (OECD) with 35
member states as of 2016, with Latvia as
its latest member. It is highly influential,
despite the group having little formal
power. This emanates from the member
countries’ resources and economic
power.
In 1960, the Organization of Petroleum
Exporting Countries (OPEC) was
originally comprised of Saudi Arabia,
lraq, Kuwait, Iran, and Venezuela. They
are still part of the major exporters of oil
in the world today. OPEC was formed
because member countries wanted to
increase the price of oil, which in the
past had a relatively low price and had
failed in keeping up with inflation.
Today, the United Arab Emirates,
Algeria, Libya, Qatar, Nigeria, and
Indonesia are included as members.
The European Union (EU) is made up of
28 member states. Most members in the
Eurozone adopted the euro as basic
currency but some Western European
nations like the Great Britain, Sweden,
and Denmark did not. Critics argue that
the euro increased the prices in
Eurozones and resulted in depressed
economic growth rates, like in Greece,
Spain, and Portugal. The policies of the
European Central Bank are considered
to be a significant contributor in these
situations.
The North American Free Trade
Agreement (NAFTA) is a trade pact
between the United States, Mexico, and
Canada created on January 1, 1994 when
Mexico joined the two other nations. It
was first created in 1989 with only
Canada and the United States as trading
partners. NAFTA helps in developing and
expanding world trade by broadening
international cooperation. It also aims to
increase Cooperation for improving
working conditions in North America by
reducing barriers to trade as it expands
the markets of the three countries.
INTERSTATE SYSTEM
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The origins of the present-day concept
of Sovereignty can be traced back to the
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TREATY OF WESTPHALIA, which was a
set of agreements signed in 1648 to end
the thirty years’ war between the major
continental powers of Europe.
Effects of Globalization to Governments
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One of the key aspects of state
sovereignty is the government. It is a
group of people who have the ultimate
authority to act on behalf of a state. Each
state has its own right to selfdetermination and that other country
should not intervene in the affairs of that
state unless there are extraordinary
reasons to do so.
Globalization has, in a way reshaped the
role and functions of nation-states as
governing bodies in their particular
territories.
function, in terms of economy and
politics, as part of a whole.
The third effect of globalization is the
establishment of international laws and
principles
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The fourth effect is the rise of transnational
activism (TNA)
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First, globalization is seen to impose a forced
choice upon nation-states.
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Either they conform to the neo-liberal
ideas and free-market principles of
deregulation, privatization, and free
trade or run the risk of being left behind
in terms of development. Of course,
nation-states, in this contemporary age,
are forced to submit themselves to the
demands of globally accepted freemarket principles.
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One good example is the European
Union (EU) and the North America Free
Trade Agreement (NAFTA). EU has a
single currency and monetary system,
parliament with legislative powers, with
common citizens’ rights to live, work,
vote and run for office. The statehood of
the members is not dissolved, what has
changed is only how the nation-states
Such happens when activist groups of
nation-states connect with their
counterparts in other states. For
example,
an
advocacy-based
organization in the Philippines may
connect itself with and get support from
other human rights groups in Europe to
pressure the Philippine government to
realign its stance and actions in
upholding human rights.
Institutions that Govern International
Relations
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Second is the establishment of economic and
political integrations.
This is observable in the establishment
of the UN that operates as a forum for
nation-states to air their differences and
try to resolve them.
There
are
several international
organizations that governments of
countries around the world and
individuals participate in. In order to
facilitate connections among nationstates, intergovernmental organizations
(IGOs) were established. Their aim is to
foster strong economic, political,
cultural, educational, and technical
intergovernmental relationships. There
are also nongovernmental organizations
promoting social and economic growth.
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Peace Treaties and Military Alliances: The UN
and NATO
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Global politics entails relationship of
countries and different governments
and non - governmental organizations,
The United Nations (UN) is one of the
leading political organizations in the
world where nation-states meet and
deliberate. However, it remains as an
independent actor in global politics.
Generally, it functions in four areas:
military issues, economic issues,
environmental issues, and human
protection. It is made up of close to 200
countries from around the world, 193
member states to be exact.
(United Nations, 2011)
Association of Southeast Asian Nations
(ASEAN)
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European Union (EU)
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Global Economic Associations: The WTO and
NAFTA
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The next group is an economic
association-WTO which was created
with the goal of increasing free trade.
Countries, therefore, can buy and sell
goods from one another without placing
takes on imports or tariffs. In addition,
tariffs are used to protect businesses
and companies inside their country.
Another famous economic organization
is NAFTA. This is an economic treaty
between the United States, Canada, and
Mexico in which the three countries
trade freely without taxing each other.
NAFTA is not without critics either.
Some American autoworkers protested
against NAFTA as several car companies
moved their factories to Mexico in
search for cheaper labor. NAFTA, like
WTO, represents the challenge in
America of keeping manufacturing
factories.
Established in 1967, now has 10 member
states. Its aims are to accelerate
economic growth, social progress and
cultural development in the region;
promote regional progression; advance
peace and sustainability; promote active
and beneficial cooperation and mutual
assistance on matters of common
interest in the economic, technical,
cultural, administrative and scientific
fields.
An IGO with 28- state members was
established in 1993. Its goals are to
promote peace, its values, and wellbeing of its citizens; offer freedom,
security and justice without internal
borders;
uphold
sustainable
development; combat social exclusion
and discrimination; promote scientific
and technological progress; enhance
economic; social and territorial cohesion
among member countries; respect
cultural and linguistic diversity; and
establish an economic and monetary
union.
Non-Governmental Organizations (NGOs)
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Another example of an international
organization that was developed out of
war is the Red Cross (Red Crescent in
Muslim countries). NGOs are not tied to
any country. This allows them to operate
freely throughout the world. They
provide emergency relief such as food,
water, and medical supplies for those
whose homes or towns have been
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destroyed by disaster or war. They also
monitor the treatment of prisoner of
wars and go to conflicts to make sure
that no war crimes are taking place. In
fact, the Red Cross began as an
organization to help those who were
wounded during wars.
CONTEMPORARY GLOBAL GOVERNANCE
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The world has no global government and
global authority. There are however,
political and economic bodies operating
worldwide that not all people are aware
of. Thus what the world has is the idea of
global governance.
This term refers to domestic institutions
and governments on how large-scale
problems and public-policy issues are
being resolved on a global level.
It involves a range of actors including
states, national and regional bodies that
have the eagerness and commitment to
deal with a particular challenge.
Today, global governance makes world
affairs
systematic,
secured
and
formulaic. Weiss & Thakur (2014)
describe global governance as the
totality of norms, laws, policies, and
bodies that define, comprise, and
facilitate
transnational
relations
between citizens, states, cultures,
intergovernmental
and
nongovernmental organizations.
Rules and norms put everything in order.
Though global governance is rule-based,
it has no central authority. However,
there are systems for international
relationships that bind the states,
people and society together.
Since the United Nations (UN) has the
most number of members among the
established global systems, this section
discusses its organs, roles and functions.
The six organs of the United Nations (UN)
1. GENERAL ASSEMBLY
- is the central deliberative and the only
organ where all member-states have
equal representation in discussion and
consideration, and policymaking.
2. SECURITY COUNCIL
- is the organ which has the commitment
to preserve peace and security.
3. ECONOMIC AND SOCIAL COUNCIL
- is the main organ for cooperation, policy
reviews, policy dialogue, and advice on
social, economic and environmental
issues
4. TRUSTEESHIP COUNCIL
- is the organ tasked to administer
international oversight for 11 trust
territories and to make sure that
adequate procedures are taken for
independence and self-government.
5. INTERNATIONAL COURT OF JUSTICE
- is UN’s prime judicial organ.
6. SECRETARIAT
- is the organ tasked to execute the daily
activities as assigned by the other
organs.
Aside from maintaining international peace and
security and protecting human rights, UN also
carries the functions of delivering humanitarian
aid, promoting sustainable development, and
upholding international law. The organization
utilizes good offices, diplomacy, and mediation.
In order to protect human rights, UN scrutinizes
situations and issues reported to them and
oversee the exercise of international human
rights agreements. In delivering humanitarian
aid, UN is responsible for coordinating responses
to emergencies and supports rapid humanitarian
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response for people affected by natural disasters
and armed conflict.
Weiss and Thakur (2014), in their article titles,
The United Nations Meets the Twenty-first
Century: Confronting the Challenges of Global
Governance, identify challenges confronting UN
based on knowledge, norms, policy, institutions
and compliance:
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In terms of knowledge, UN is
underappreciated regarding how its
convening capacity and mobilizing
power are utilized to help funnel and
consolidate knowledge from outside and
ensure its discussion and dissemination
among governments.
The contrasting moral structures of
social behavior in different memberstates complicate the formulation of a
normative standard that can be
applicable to all.
In formulating propositions, problems
occur when only the member-states are
heard. UN belittles the helping hand of
non-governmental organizations (NGOs)
and the global public opinion.
Sometimes, recommendations are not
executed.
Institutions can also be places where
ideas are cornered and left behind. The
modality and processes for enforcing
compliance with international norms
and laws are not present. In fact, some
UN staff members violate, cheat, and
challenge them.
Contemporary global governance defines
political scope of globalization. Cooperation
among nation-states is the only way to reform
and advance the roles and functions of interstate
relationships despite real challenges being faced
by United Nations.
A WORLD OF REGIONS
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Governments, Associations, Societies,
and groups form regional organizations
and/or networks as a way of with the
challenges of globalization.
REGIONALISM
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While regionalism is often see as a
political and economic phenomenon,
the term encompasses a broader area. It
can be examined in relation to identities,
ethics, religion, ecological sustainability,
and health.
It is also a process, and must be treated
as an “emergent, socially constituted
phenomenon.”
Regions are not natural or given;
rather, they are constructed and
defined by policymakers, economic
actors, and even social movements.
COUNTRIES, REGIONS AND GLOBALIZATION
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Edward D. Mansfield and Helen V.
Milner state that economic and political
definitions of regions vary, but there are
certain features that everyone can agree
on.
First, regions are “ a group of countries
located in the same geographically
specified area” or a combination of more
than two regions organized to regulate
and oversee flows and policy choices.
Second, regionalization and regionalism
should
not
be
interchanged.
Regionalization refers to the regional
concentration of economic flows. While
regionalism is a political process
characterized by economic policy
cooperation and coordination among
countries.
Countries form regional associations for
several reasons. One is for military
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defense. The most widely known
defense grouping is the NORTH
ATLANTIC TREATY ORGANIZATION
(NATO) formed during the Cold War
when several Western European
countries plus the United States agreed
to protect Europe against the threat of
the Soviet Union.
The SU responded by creating its
regional alliance, the WARSAW PACT,
consisting of the Eastern European
countries under Soviet Domination.
Countries
also
form
regional
organizations to pool their resources,
get better returns for their exports, as
well as expand their leverage against
trading partners.
There are countries that form regional
blocs to protect their independence
from the pressures of superpower
politics. The Presidents of Egypt, Ghana,
India, Indonesia and Yugoslavia created
the Non-Aligned Movement (NAM) in
1961 to pursue world peace and
international cooperation, human rights,
national sovereignty, racial and national
equality, non-intervention, and peaceful
conflict resolution.
Non-State Regionalism
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Organizations representing this ”new
regionalism” likewise rely on the power
of
individuals,
non-governmental
organizations (NGOs), and associations
to link up with one another pursuit of a
particular goal (or goals).
Identified with reformists who share the
same values, norms, institutions, and
system that exist outside of the
traditional, established mainstream in
institutions and systems.”
CONTEMPORARY
REGIONALISM
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CHALLENGES
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Today, regionalism faces multiple
challenges, the most serious of which is
the resurgence of militant nationalism
and populism.
The refusal to dismantle NATO after the
collapse of the Soviet Union, for
example, has become the basis of the
Anti-NATO rhetoric of Validmir Putin in
Russia.
Now, even the relationship of the United
States-the alliance’s core member- with
NATO has become problematic after
Donald
Trump
demonized
the
organization as simply leeching off
American military power w/o giving
anything in return.
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.
ASEAN members continue to disagree
over the extent to which member
countries
should
sacrifice
their
sovereignty for the sake of regional
stability.
ASEAN countries also disagreed over
how to relate to China, with the
Philippines unable to get the other
countries to support its condemnation.
A final challenge pertains to 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.