CONTEMPORARY WORLD REVIEWER Introduction of Globalization - 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 - - - - - 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 CONTEMPORARY WORLD REVIEWER PEOPLE, WHILE NGO'S ARE NETWORKS THAT CONNECT A MORE SPECIFIC GROUP. ECONOMIC GLOBALIZATION - 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. - - INTERNATIONAL TRADE - Structures of Globalization - - 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. - - 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 CONTEMPORARY WORLD REVIEWER 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 - 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 CONTEMPORARY WORLD REVIEWER 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 - - 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 - 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 - - 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) - - - 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. CONTEMPORARY WORLD REVIEWER International Monetary Fund and the World Bank - - - 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. - North American Free Trade Agreement(NAFTA) - The Organization for Economic Cooperation and Development (OECD), the Organization of Petroleum Exporting Countries (OPEC), and the European Union (EU) - - 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 - The origins of the present-day concept of Sovereignty can be traced back to the CONTEMPORARY WORLD REVIEWER 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 - - 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 - The fourth effect is the rise of transnational activism (TNA) - First, globalization is seen to impose a forced choice upon nation-states. - 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. - 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 - 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. CONTEMPORARY WORLD REVIEWER Peace Treaties and Military Alliances: The UN and NATO - - 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) - European Union (EU) - Global Economic Associations: The WTO and NAFTA - - 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) - 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 CONTEMPORARY WORLD REVIEWER 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 - - - - - - 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 CONTEMPORARY WORLD REVIEWER 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: - - - - 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 - Governments, Associations, Societies, and groups form regional organizations and/or networks as a way of with the challenges of globalization. REGIONALISM - - - 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 - - - - 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 CONTEMPORARY WORLD REVIEWER - - - 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 - - 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 - - - - - - - CHALLENGES TO 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.