0% found this document useful (0 votes)
1 views26 pages

Modified Module Unit 1

Uploaded by

dandon.2919
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
1 views26 pages

Modified Module Unit 1

Uploaded by

dandon.2919
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Unit 1: The Structures of Globalization

The Structures of
UNIT 1
Globalization

INTRODUCTION

In this unit, you will learn about the different structures globalization that
includes global economy, market integration, global interstate system and
contemporary global governance. The focus of this unit will be related to
economics and politics.

What do you understand about no man is an island? Would this hold to


different countries as well? Globalization is everywhere. People may not be
aware that everyday they experience globalization. The food they eat, the
gadgets they use, the clothes they wear, the books they read, the movies
they watch and the way they talk and act, these are being influenced by
globalization. How does globalization change the perspective of the
people?

Before, people can live as long as they satisfy their needs. Simple living is a
virtue to them. Today, the lives of the people become complex. Having a
simple living is already a threat to people because of many existing demands
that need to be satisfied. Considering their demands, these will push them to
be competitive in order for them to survive. People don’t just look into the
products that were produced by their country but also they are very
particular with the label of the products that they are buying, as most of us
coined the term “state sides” which means it is made from other countries.
See how globalization affects the perception of the people.

This reminds us that our consumption of goods has a strong international


character which implies that people are no longer confined with patronizing
their own products but to engage in what the world can offer to them.

LEARNING OUTCOMES

At the end of this unit, you are expected to:


1. identify the various definitions and philosophies of globalization;
2. analyze the various structures of globalization;
3. describe the emergence of global economic and political system
and
4. share insights about how do globalization affects your everyday life.

Contemporary WORLD 1
Unit 1: The Structures of Globalization

ACTIVATING PRIOR KNOWLEDGE

What do I know about globalization? Below is a list of words. Try to tell


something about each word on the list to test whether you are familiar or not
to those terms.

Globalization Capitalist

Economy Trade

World economy

Topic 1: Introduction to the study of Globalization

Learning Objectives:

At the end of the lesson, you are expected to:


• define globalization;
• identify underlying philosophies of the varying definitions of
globalization;
• participate in news reports critiquing globalization and

Contemporary WORLD 2
Unit 1: The Structures of Globalization

PRESENTATION OF CONTENT

GLOBALIZATION FROM DIFFERENT PERSPECTIVES

Nowadays people view globalization as primarily an economic process that


affects the integration of national products to the world markets. Others may
refer this to the continuing integration of technological processes to many
countries and the uprising of business from the developed, developing and
under develop countries. Definitions of globalization by academics is differ
from the journalist and to the political activist considering they view
globalization in a broader terms.

In general term, globalization refers to the development of global or


worldwide business activities, competition and markets and the increasing
global interdependence of national economies. Other scholars believe that
globalization is the process by which the world, previously isolated through
physical and technological distance, becomes increasingly interconnected.

It is manifested by the increase in interaction between peoples around the


world that involves the sharing of ideas, cultures, goods, services and
investment.

Among the underlying definitions of globalization, the best descriptions is


provided by Manfred Steger who described globalization as “the expansion
and intensification of social relations and consciousness across world-time
and across world-space”. Based on the definition it’s been refers that
expansion is both the creation of new social networks and the multiplication
of existing connections that cut across traditional political, economic,
cultural, and geographic boundaries” while intensification refers to the
expansion , stretching and acceleration of these networks.

PHILOSOPHIES OF THE VARYING DEFINITIONS OF GLOBALIZATION

Read the following Philosophies to the varying definitions of globalization by


Manfred B. Steger and after which answer the following questions:

1. Globalization is about the Liberalization and Global Integration of


Markets.
▪ This is anchored in the neo-liberal ideal of the self-regulating market as
the normative basis for a future global order. According to this, the vital
functions of the free market- its rationality and efficiency , as well as its
alleged ability to bring about greater social integration and material
progress -can only be realized in a democratic society that values and
protects individual freedom. (Steger, 2005)

Contemporary WORLD 3
Unit 1: The Structures of Globalization

2. Globalization is Inevitable and Irreversible.


▪ According to the market-globalist, globalization reflects the spread of
irreversible market forces driven by technological innovations that
make the global integration of national economies inevitable.(Steger,
2005)

3. Nobody is in Charge of Globalism.


▪ Globalization hinges on the classical liberal concept of the
“selfregulating market. According to Rebert Hormats (1998) vice
chairman of Goldman Sachs International, emphasized that” The great
beauty of globalization is that no one is in control. The great beauty of
globalization is not controlled by any individual, any government, any
institution (Steger, 2005).However, This idea that nobody is in charge
serves the neo-liberal political agenda of defending and expanding
global capitalism.

4. Globalization benefits everyone in the long run.


▪ This lies at the heart of market globalism which is unpacked on in
material terms such as economic growth and prosperity. In terms f the
globalism concept, it taps not only liberalism progressive worldview, but
also draws on the powerful socialist vision of establishing economic
paradise on earth (Steger, 2005). 5. Globalization Furthers the Spread of
Democracy in the World - This links ‘globalization’ and ‘markets” to the
concept of democracy which plays a significant role in liberalism ,
conservatism, and socialism. Globalist tend to treat freedom, free
markets, free trade and democracy as synonymous terms. According
to Francis Fukuyama (2000) ‘ there exist a clear correlation between
country’s level of economic development and successful democracy”.
Though it is true that globalization and capital development do not
automatically create democracies Fukuyaman believe that the “level
of economic development resulting from globalization is conducive to
the creation of complex civil societies with a powerful middle class
which facilitates democracy”. (Steger, 2005:32)

APPLICATION

Recall a personal experience about globalization either at home, school or


within the community. Write it in a narrative form (3-5 paragraphs only) and
the best experience will be shared in the class.

FEEDBACK

Directions: Read the following statements provided below and identify


whether it is TRUE or FALSE. Write T if the statement is correct and F if not. Put
your answer on the space provided before each number.

Contemporary WORLD 4
Unit 1: The Structures of Globalization

______1. Globalization is also known as colonization.


______2. Globalization is a larger phenomenon that cannot simply be reduce
to the ways in which global markets have been integrated.
______3. The interdependence of countries worldwide means globalization.
______4. Globalization is a single set of processes which also leads to a single
direction.
______5. The adoption of K-Pop Music among Filipinos shows globalization.

REFERENCES

Abinales, Patricio and Claudio, Lisandro. 2018. “The Contemporary World.” C


& E Publishing, Inc.

Manfred, Steger B. “ Ideologies of Globalization .” 2005. Journal of Political


Ideologies

Manfred Steger, Paul Battersby, and Joseph M. Siracusa, eds. 2014. The Sage
handbook of Globalization. Two Vols. Thousand Oaks: SAGE

Topic 2: Economic Globalization

Learning Objectives:

At the end of the lesson, you are expected to:


• define economic globalization;
• define the modern world system;
• identify the three level hierarchy of the modern capitalist world economy
and
• articulate a stance on global economic integration.

Contemporary WORLD 5
Unit 1: The Structures of Globalization

PRESENTATION OF CONTENT

DEFINITION OF ECONOMIC GLOBALIZATION

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 increasing integration of
economies around the world through the movement of goods, services, and
capital across borders.
The global economic system, beginning in 1896, had reached its peak in
1914. There are various changes and improvements that characterize
economic globalization past and present. Structure of transportation,
communication, and capital are comparable then and now.

With the emergence of transnational companies these brought changes to


our country’s economy. For example Sony, Time Warner, Comcast, Vivendi
SA, Televisa, and Grupo Globo. Their collective vision is the media that
transcends physical barriers including national borders to reach as many
people as possible. Such companies can provide work and enrich our
economy. TNMC (transnational media corporation) production creates
media commodities, ideologies, and profit, as it also produces and
reproduces the capital relation itself. (Therborn, 2008, p.137) the underlying
motivation for capitalist cultural hegemony.

Transnationalizing production to local sites does not disturb the TNMC


“organizational hierarchy or the forms of specialization which stratify the
working class and create a social layer of administrators and overseers who
rule in the name of capital over the day to day operations in the workplace”
(Harvey, 1999, p.31) no matter what nationality, ethnicity, or gender supplies
the workforce or management. The global restructuring of media production
has created giant, regional enterprises “with complex links between film,
video, television, telecommunications, animation, publishing, advertising, and
game design” (Davis & Yeh, 2008, p.65) all based on acquiring multinational
talent and the cheapest creative labor possible. TNMC production forces
national governments, small media firms, and local workers to compete
among themselves over wages, benefits, and working conditions. In China for
example, Mattel requires workers to be on the job 10-16 hours a day, seven
days a week (Asian Monitor Resource Center, in Miller, et al., 2005, p.122).

Beyond the bright side of so-called mental and immaterial labor, one
discovers its seamier counterpart - the production of the actual material
infrastructure for new media. In this space, rather than illustrating how
indigenized media and information technologies contribute to cultural
diversity and human freedom, the TNMC environments that localize flexible
production appear as nothing less than crasser exploitation maximizing

Contemporary WORLD 6
Unit 1: The Structures of Globalization

corporate control over labor. The production of media and their content are
not “merely a simple reflection of the controlling interests of those who own or
even control the broad range of capital plant and equipment which make
up the means by which cultural goods are made and distributed. Within the
media are men and women working within a range of codes and
professional ideologies, and with an array of aspirations, both personal and
social. The ambitions can be idealized; much cultural productionis routine,
mundane, and highly predictable” (Golding & Murdoch, 1991, p.25-26). The
autonomy and creative contribution of these workers is curtailed within
transnational production structures that prescribe who does what and who
makes decisions on what will be done.

The TNMCs are constantly on the lookout for creative initiatives that can be
herded into their own cultural hegemony, while willing academics and
entrepreneurs eagerly line up for the chance to join the ranks of profiteers.
The transnational production regime, Internet and all, keeps the average
consumer blogger on the margins.
For countries and firms that depend on outsourcing for income, their chief
asset is low paid skilled labor, their chief benefit is access to the techniques
and norms of TNMC production. Ultimately, the cultural hegemony of
transnational media is the economic and political reward obtained from
rapacious free market policies that encourage individual entrepreneuralism
and undermine social solidarity among workers on all levels by temporarily
but repeatedly subcontracting abroad will smaller independent studios and
employing workers in different countries.

In terms of transportation, in the past railroads and steamships are the


significant inventions but today airplanes have been transporting humans
around the world. In terms of communication, the internet today made the
world open to everyone.

In the recent decades, as a result of increased in exports, economic


globalization has ushered in an unprecedented spike in global growth rates.

According to the IMF, the global per capita GDP rose over five-fold in the
second half of the 20th century. It was this growth that created the large
Asian economies like Japan, China, Korea, Hong Kong, and Singapore. And
yet, economic globalization remains an uneven process, with some countries,
corporations, and individuals benefiting a lot more than others.

THE MODERN WORLD SYSTEM

One of the famous works that captures the socio-historical and economic
nexus of pre-capitalist economies and the present world was that of
Immanuel Wallerstein’s research on the modern world system.

Contemporary WORLD 7
Unit 1: The Structures of Globalization

His analysis focused on the broad economic entity with a division of labor
that is not circumscribed by political or cultural boundaries. His idea of the
world system is larger than workers, classes, or even states. Through the global
economic activity, countries around the world have been divided according
to their economic power in the global arena.

It should be noted that the world-systems have existed before and not a
unique feature of the contemporary world. What is significant is the
transformation of this world-system. In the past, the system that binds the
world together is based on political and military domination. This was the
world empire.

The modern world-system is also known as the modern capitalist


worldeconomy. It is a system which relies on economic domination. It
encompasses many states and a built-in process of economic stabilization.
This means that it is economic forces (and the economy of the world) that
pull people, states, and societies toward the arena of worldwide economic
transactions.

THE THREE LEVEL HIERARCHY OF THE MODERN CAPITALIST WORLD-ECONOMY

Not all countries or areas are equal in the modern world-system according to
Wallerstein. A three-level hierarchy is a remarkable feature of the modern
capitalist world-economy.

Based on the Wallerstein’s World System Theory Model, the world is now
divided into three categories and thereby creating the worldwide division of
labor. These are:

Contemporary WORLD 8
Unit 1: The Structures of Globalization

a. Core – These are areas that dominate the capitalist world-economy and
exploit the rest of the system (e.g., US, Japan and Germany). This means that
the core regions benefited the most from the capitalist world economy.

b. Periphery – These are areas that provide raw materials to the core and are
heavily exploited (e.g., many countries in African region, Eastern Europe
(especially Poland) and Latin America). These areas lacked strong central
governments or were controlled by other states, exported raw materials to
the core, and relied on coercive labor practices. The core expropriated
much of the capital surplus generated by the periphery through unequal
trade relations.
c. Semi-periphery – It is a residual category that encompasses a set of regions
somewhere between exploiting and the exploited (e.g., India, China,
Indonesia, Mexico, Iran and Brazil). They often also served as buffers between
the core and the peripheries.

The international division of exploitation is defined not by state borders but by


the economic division of the world. There are three things necessary for the
rise of the capitalist world-economy. These are geographical expansion,
worldwide division of labor and core state’s development.

Why are countries being pulled toward this system? Can the countries or
areas of the world “resist” being part of it? Ritzer (2010-310) explained:

“The pressure for incorporation into the world-economy comes not from the
nations being incorporated but rather from the need of the worldeconomy to
expand its boundaries, a need which was itself the outcome of pressures
internal to the world economy” (Wallerstein 1989:129).

In maintaining a good balance between maintaining state powers and


being part of the modern world-system, the states must be strong enough to
protect their own economies from external threats. However, this strength of
theirs which comes from, perhaps, their external sovereignty should not be
too much for them to be able to stand on their own and refuse to act in
accord with the demands of the capitalist worldeconomy. It is a matter of
striking a balance between the state’s power and the pressures of the global
economy.

APPLICATION

In Just-A-Minute (JAM) you write your own understanding about economic


globalization and modern world-system. Be prepared to share and discuss it
in our online class.

Contemporary WORLD 9
Unit 1: The Structures of Globalization

FEEDBACK

Directions: Identify the countries that fall in each category.

India Indonesia Mexico

Poland China Japan

Philippines Iran Brazil Germany

CORE PERIPHERY SEMI-PERIPHERY

REFERENCES

Aldama,PK.R., (2018). The Contemporary World (pp.13-34). 84-86 P. Florentino


St., Mesa Heights, Quezon City: Rex Printing Company Inc.

Claudio, L.E., Abinales, P.N. (2018). The Contemporary World (pp. 12-25). 839
EDSA, South Triangle, Quezon City: C & E Publishing, Inc.

Steger,M. B,. The SAGE Handbook of Globalization (Chapter 9- The


Globalization of Economic Relations by Istvan Benczes). Thousand Oaks,
California: SAGE Publications Ltd.

[Link]

[Link]

[Link]

Contemporary WORLD 10
Unit 1: The Structures of Globalization

Topic 3: Market Integration

Learning Objectives:

At the end of the lesson, you are expected to:


• define market integration;
• identify the features of the Bretton Woods System;
• determine the role of the international institutions in the creation of
global economy; and
• give importance of integrated market and;
• share insights about the award winning documentary film The
Corporation.

PRESENTATION OF CONTENT

DEFINITION OF MARKET INTEGRATION

Market integration is a term that is used to identify a phenomenon in which


markets of goods and services that are somehow related to one another
being to experience similar patterns of increase or decrease in terms of the
prices of those products. The term can also refer to a situation in which the
prices of related goods and services sold in a defined geographical location
also begin to move in some sort of similar pattern to one another.

Market integration allows price signals to be transmitted from one market to


another. It is the fusing of many markets into one. In one market a commodity
has a single price such as the price of banana would be the same in East
Germany and West Germany if these areas were part of the same market.

Contemporary WORLD 11
Unit 1: The Structures of Globalization

If the price of banana in West Germany was higher, sellers of banana would
move from the east to the west and prices would equalize. The price of
banana in Germany and in Portugal might be different, though, and high
transport costs and other kinds of expenses might mean that it would be
uneconomical for Portuguese sellers to move their stocks to France if prices
were higher there. In distinct markets the price of the same good can be
different for long periods of time.

THE BRETTON WOODS SYSTEM

After World War II, the Bretton Woods system was established. In fact, the
agreement to create a new international monetary system was negotiated
among the allied powers even before the end of WW2, leading to the
Bretton Woods Agreement in 1944. Bretton Woods is the name of a small
tourist spot in the mountains of New Hampshire, USA. There, the delegates
gathered to design a new global economic system. Their most important
goal was to prevent each country from pursuing selfish policies, such as
competitive devaluation, protectionism and forming trade blocks, which
damaged the world economy in the 1930s.

The British delegation was headed by John M. Keynes, the famous economist,
while Harry D. White of the US Treasury Department represented the
American side. As a dominant military and economic power, the US took the
leadership away from Britain. Because the United States at the time
accounted for over half of the world's manufacturing capacity and held
most of the world's gold, the leaders decided to tie world currencies to the
dollar, which, in turn, they agreed should be convertible into gold at $35 per
ounce.

Under the Bretton Woods system, central banks of countries other than the
United States were given the task of maintaining fixed exchange rates
between their currencies and the dollar. They did this by intervening in foreign
exchange markets. If a country's currency was too high relative to the dollar,
its central bank would sell its currency in exchange for dollars, driving down
the value of its currency. Conversely, if the value of a country's money was
too low, the country would buy its own currency, thereby driving up the price.

The Bretton Woods Agreement established the World Bank (International


Bank for Reconstruction and Development). The IMF and the World Bank
were called the Bretton Woods sister organizations. One more organization
(International Trade Organization) was also planned but not created at that
time.

Instead, the General Agreement on Tariffs and Trade (GATT), a


nonorganizational entity, played the role of promoting free trade for four

Contemporary WORLD 12
Unit 1: The Structures of Globalization

decades. GATT became institutionalized as WTO in 1995. So we now have


three sisters.

FEATURES OF THE BRETTON WOODS SYSTEM

The features of the Bretton Woods system are as follows:

First, it was a US dollar-based system. Officially, the Bretton Woods system was
a gold-based system which treated all countries symmetrically, and the IMF
was charged with the responsibility to manage this system.

In reality, however, it was a US-dominated system with the US dollar playing


the role of the key currency (the dollar's dominance still continues today). The
relationship between the US and other countries was highly asymmetric. The
US, as the center country, provided domestic price stability which other
countries could "import," but did not itself engage in currency intervention
(this is called benign neglect; i.e., the US did not care about exchange rates,
which was desirable).

By contrast, all other countries had the obligation to intervene in the currency
market to fix their exchange rates against the US dollar.

Second, it was an adjustable peg system. This means that exchange rates
were normally fixed but permitted to be adjusted infrequently under certain
conditions. As a consequence, exchange rates were supposed to move in a
stepwise fashion. This was an arrangement to combine exchange rate
stability and flexibility, while avoiding mutually destructive devaluation.
Contemporary WORLD 13
Unit 1: The Structures of Globalization

Member countries were allowed to adjust "parities" (exchange rates) when


"fundamental disequilibrium" existed. However, "fundamental disequilibrium"
was not clearly defined anywhere.

In reality, exchange rate adjustments were implemented far less often than
the builders of the Bretton Woods system imagined. Germany revalued twice,
the UK devalued once, and France devalued twice. Japan and Italy did not
revise their parities.

Third, capital control was tight. This was a big difference from the Classical
Gold Standard of 1879-1914, when there was free capital mobility. Although
the US and Germany had relatively less capitalaccount regulations, other
countries imposed severe exchange controls.

Fourth, macroeconomic performance was good. In particular, global price


stability and high growth were simultaneously achieved under deepening
trade liberalization.

Stability in tradable prices (wholesale prices or WPI) from the mid 1950s to the
late 1960s was almost perfect and globally common. This macroeconomic
achievement was historically unprecedented.

THE ROLES of the INTERNATIONAL INSTITUTIONS in the CREATION of GLOBAL


ECONOMY

The World Trade Organization (WTO)

The WTO is a multilateral organization headquartered in Geneva, Switzerland


with 152 member nations as of 2008 (Krueger 2000; Trachtman 2007:1308-15).
Its focus on trade places it at the heart of economic globalization and has
made it a magnet for those opposed either to the broader process of trade
liberalization and promotion or to some specific aspect of WTO operations.

The World Trade Organization (WTO) is the only global international


organization dealing with the rules of trade between nations. At its heart are
the WTO agreements, negotiated and signed by the bulk of the world’s
trading nations and ratified in their parliaments. The goal is to ensure that
trade flows as smoothly, predictably and freely as possible.

The WTO has many roles: It operates a global system of trade rules, acts as a
forum for negotiating trade agreements, settles trade disputes between its
members and it supports the needs of developing countries.

The WTO comes to focus more on non-tariff related barriers to trade. One
example is the differences between nations in relation to regulations on such
items as manufactured goods or food. A given nation can be taken to task

Contemporary WORLD 14
Unit 1: The Structures of Globalization

for such regulations if they are deemed to be an unfair restraint on the trade
in such items.

The WTO continues to be concerned with tariff barriers, as well as restrictions


on trade in services. The WTO also deals with other types of protectionism.

Overall, WTO operations are premised on the neoliberal idea that all nations
benefit from free trade and open trade and it is dedicated to reducing and
ultimately eliminating barriers to such trade.

The International Monetary Fund (IMF)

The International Monetary Fund (IMF) was created on 1945 which is based in
Washington, D.C. It is governed by and accountable to the 189 countries that
make up its near-global membership.

With its near-global membership of 189 countries, the IMF is uniquely placed
to help member governments take advantage of the opportunities and
manage the challenges posed by globalization and economic development
more generally. The IMF tracks global economic trends and performance,
alerts its member countries when it sees problems on the horizon, provides a
forum for policy dialogue, and passes on know-how to governments on how
to tackle economic difficulties.

The IMF focuses on the functioning of the international monetary system, and
on promoting sound macroeconomic policies as a precondition for sustained
economic growth. The IMF provides policy advice and financing to members
in economic difficulties and also works with developing nations to help them
achieve macroeconomic stability and reduce poverty.

The IMF could give adjustment loans to nations in disequilibrium so that they
are able to meet their international obligations. The fund was created on the
basis of quotas for member nations.

Marked by massive movements of capital and abrupt shifts in comparative


advantage, globalization affects countries' policy choices in many areas,
including labor, trade, and tax policies. An important task for the IMF is
helping a country to benefit from globalization while avoiding potential
downsides. The global economic crisis has highlighted just how
interconnected countries have become in today’s world economy.

The World Bank (WB)

The World Bank, officially the International Bank for Reconstruction and
Development (BRD) is the most important element of the World Bank Group
(WBG) (Gilbert and Vines 2000; Bradlow 2007:1262-7).

Contemporary WORLD 15
Unit 1: The Structures of Globalization

The Bank was set up in 1944 as the International Bank for Reconstruction and
Development to act as facilitator of post-World War II reconstruction and
development. The number of member countries increased sharply in the
1950s and 1960s, when many countries became independent nations. It was
created to help restore and sustain the benefits of global integration, by
promoting international economic cooperation. All support to a borrowing
country is guided by a single strategy (called the 'Country Assistance
Strategy') that the country itself designs with help from the World Bank and
many other donors, aid groups, and civil society organizations.

The goal of the World Bank is to reduce poverty and to improve the living
standards of the people in low and middle-income countries.

The World Bank is one of the world’s largest sources of funding and
knowledge to support governments of member countries in their efforts to
invest in schools and health centers, provide water and electricity, fight
disease and protect the environment. This support is provided through project
or policy-based loans and grants, as well as technical assistance like advice
and studies. The World Bank is not a ‘bank’ in the common sense.

The World Bank is an international organization owned by the 184 countries ¾


both developed and developing ¾ that are its members.

Globalization implies changes through political, social and economic reforms


by offering many incentives in developing countries. World Bank, IMF and
WTO have played important role in promoting the globalization minded
agenda and developed countries particularly USA and Japan determine the
rules of the game. As a result state power has been drastically reduced and
developed countries shape political, social and economic decisions for their
own benefits. In this sense, developed countries enjoy more benefits than
developing countries.

APPLICATION

Recall the different international institutions mentioned above and choose


one (1) to discuss. After the discussion you will answer the following questions:

1. How do the international institutions help the member states?


2. Why these international institutions were created?
3. How do these international institutions facilitate local development?

Contemporary WORLD 16
Unit 1: The Structures of Globalization

FEEDBACK

Answer the following questions briefly but substantially:

1. What is your understanding about market integration?


2. What are the features of the Bretton Wood System?
3. What are the roles of the international institutions in the creation of global
economy?

REFERENCES

Aldama,PK.R., (2018). The Contemporary World (pp.36-59). 84-86 P. Florentino


St., Mesa Heights, Quezon City: Rex Printing Company Inc.

Claudio, L.E., Abinales, P.N. (2018). The Contemporary World (pp. 12-25). 839
EDSA, South Triangle, Quezon City: C & E Publishing, Inc.

[Link]

[Link]

[Link]

[Link]

[Link]

[Link]

Topic 4: Global Inter-State System

Contemporary WORLD 17
Unit 1: The Structures of Globalization

Learning Objectives:

At the end of the lesson, you are expected to:


• differentiate nation and state;
• define internationalism and globalism;
• distinguish the competing conceptions of internationalism and
• determine the institutions that govern international relations.

PRESENTATION OF CONTENT

DIFFERENCE BETWEEN NATION AND STATE

Many people are confused when the word state is mentioned. Some of them
will relate it to a nation. Although many people think they are the same, the
words nation and state are entirely different from one another. In terms of
territory, a state is comprised of four elements: government, territory,
population, and sovereignty. If one element is absent, it disqualifies the area
from being called a state. However, a nation can be defined as a population
who shares a similar culture and ideals. A nation is formed as a result of a
common race, religion, language, territory, history, culture or political
aspirations. These elements are not essential and are ever-changing. In terms
of political and social organization, state is a political term and refers to an
area that is organized for the security of people. It is a legal entity with human
actions. On the contrary, a nation tends to focus less on the people’s physical
needs and more on metaphorical or emotional terms.

A state has police power and individuals who disobey are punished. A state is
a political organization and it orders, coerces and punishes. On the other
hand, a nation doesn't possess strong powers.

A nation is backed by spiritual, emotional and moral power and it appeals to


its citizens and persuades them. It is a unity rather than a political
organization.

INTERNATIONALISM AND GLOBALISM

Other terms to consider in this topic will be globalism and internationalism.

Globalism means “networks of connections spanning multicontinental


distances, drawing them close together economically, socially, culturally and
informationally” (Das 2011:18). Looking at the definition of the economic
globalism can increase our understanding of globalism. It is a constructive

Contemporary WORLD 18
Unit 1: The Structures of Globalization

and creative dimension of globalism and visualizes global economy as an


integrated marketplace. In its most fundamental form, it implies that cross-
border flows of goods and services, factors of production, financial assets; as
well diffusion of technology takes place in a frictionless manner.

The phenomenon of economic globalism has arguably developed into one


of the most important economic policy challenges of the 21st century. It has
become a ubiquitous force that is affecting, if not shaping the contours of
major global economic and financial trends.

On the other hand, internationalism is only in the same line as Globalization,


but to limited field. Though internationalism is also a process among countries
but it is not as wide as Globalization for example, WTO agreements have
effects of Globalization as it involves all economic players, whereas in SAARC
(South Asian Association for Regional Cooperation), the agreement will affect
internationalism as limited to some countries.

COMPETING CONCEPTIONS OF INTERNATIONALISM

Internationalism comes in different forms, but the principle may be divided


into two broad categories: liberal internationalism and socialist
internationalism. The first major thinker of liberal internationalism was the late
18th century German philosopher Immanuel Kant. Kant likened states in a
global system to people living together require a government to prevent
lawlessness, shouldn’t that same principle be applied to states? Without a
form of world government, he argued the international system would be
chaotic. Therefore, states, like citizens of countries, must give up some
freedoms and establish a continuously growing state consisting of various
nations which will ultimately include the nations of the world. In short, Kant
imagined a form of global government.
German socialist philosopher Karl Marx who was also an internationalist did
not believe in nationalism. He believed that any true form of internationalism
should deliberately reject nationalism, which rooted people in domestic
concerns instead of global ones.

He placed a premium on economic equality; he did not divide the world into
countries but into classes. He referred to the capitalist class or bourgeoisie as
the owners of the factories, companies, and other means of production. In
contrast the proletariat class included those who did not own the means of
production, but instead, worked for the capitalists. In connection to this, there
is a power struggle between the capitalists class or bourgeoisie and the
proletariat. Due to exploitation, at the peak of capitalism, the proletariat will
rise to have a bloody revolution.

Marx and his co-author Fried Engels, believed that in a socialist revolution
seeking to overthrow the state and alter the economy, the proletariat “had

Contemporary WORLD 19
Unit 1: The Structures of Globalization

no nation.” They opposed nationalism because they believed it prevented


the unification of the world’s workers. Instead of identifying with other workers,
nationalism could make workers in individual countries identify with the
capitalist of their countries.

THE INSTITUTIONS that GOVERN INTERNATIONAL RELATIONS

Of growing significance in the realm of global civil society is the wide range
of organizations dealing primarily with issues that relate to the environment,
human rights, and economic development. Among the most notable of
these are INGOS, CARE International, Worldwide Fund for Nature,
Greenpeace and Amnesty International.

International Nongovernmental Organizations (INGOS)

These are international not-for-profit organizations that perform public


functions but are not established or run by nation-states but are not
established or run by nation-states. They are private, voluntary, and nonprofit
and most are oriented to bringing about some sort of social and political
change.

INGOS are often grassroots organizations and therefore are much more in
touch with the needs and interests of their membership than larger, more
formal, and more bureaucratized organizations associated with nation-states
or the international community.

CARE International
CARE International is a global force and partner of choice within a world-
wide movement dedicated to ending poverty. It is known everywhere for its
unshakable commitment to the dignity of people.
It works with the world’s poorest and least developed countries, fragile states,
where the government and institutions are unable to provide for the basic
needs, or protect the rights, of the majority of the people, countries affected
by conflict, crises or natural disasters, poor communities in ‘middle income
countries’ – countries which are experiencing economic growth, but where
inequality means that many people are left behind, and remain trapped in
extreme poverty.

World Wide Fund for Nature

WWF works with its partners worldwide to develop and implement lasting
solutions to the environmental challenges we face and in order to achieve
this mission, WWF focuses its efforts on two broad areas:

Biodiversity to ensure that the earth's web of life - biodiversity - stays healthy
and vibrant for generations to come.

Contemporary WORLD 20
Unit 1: The Structures of Globalization

Footprint, to reduce the negative impacts of human activity. WWF is working


to ensure that the natural resources required for life - land, water, air - are
managed sustainably and equitably.

Greenpeace

Greenpeace is an independent, campaigning organization which uses non-


violent, creative confrontation to expose global environmental problems,
and to force solutions for a green and peaceful future. Greenpeace's goal is
to ensure the ability of the earth to nurture life in all its diversity.

Amnesty International

It is a global movement of more than 7 million people who take injustice


personally. We are campaigning for a world where human rights are enjoyed
by all. It is independent of any political ideology, economic interest or
religion.

What does Amnesty do?

o It investigates and exposes the facts whenever and wherever abuses


happen.

o It lobby governments, and other powerful groups such as companies,


making sure they keep their promises and respect international law.

o It mobilizes millions of supporters around the world to campaign for change


and to stand in defense of activists on the frontline.

o It supports people to claim their rights through education and training.

APPLICATION

Answer the following briefly:

1. What is necessary for the development of an international order?


2. What is the role of revolution in internationalism?
3. What can you say about the functions of the institutions that govern
international relations?
4. How does internationalism somehow contradictory in achieving
sovereignty and national identity?

Contemporary WORLD 21
Unit 1: The Structures of Globalization

FEEDBACK

1. Differentiate the following terms using the Venn diagram:

NATION STATE

2. Identify the institutions that govern international relations. Do you think


these institutions can affect the relationship of the different states? How?

REFERENCES

Aldama,PK.R., (2018). The Contemporary World (pp.61-77). 84-86 P. Florentino


St., Mesa Heights, Quezon City: Rex Printing Company Inc.

Claudio, L.E., Abinales, P.N. (2018). The Contemporary World (pp. 26-37). 839
EDSA, South Triangle, Quezon City: C & E Publishing, Inc.

[Link]

[Link]

[Link]

[Link]

[Link]

[Link]

Contemporary WORLD 22
Unit 1: The Structures of Globalization

Topic 5: Contemporary Global Governance

Learning Objectives:

At the end of the lesson, you are expected to:


• define global governance;
• distinguish the functions of the United Nations;
• identify the five active organs of the United Nations and
• determine the challenges of the United Nations.

PRESENTATION OF CONTENT

DEFINITION OF GLOBAL GOVERNANCE

Global governance refers to the various intersecting processes that create


this order. There are many sources of global governance. States sign treaties
and form organizations, in the process legislating public international law.
International non-governmental organizations (NGOs), though not having
formal state power, can lobby individual states to behave in certain way.
Even ideas such as the need for global democracy or the clamor for good
governance can influence the ways international actors behave.

FUNCTIONS OF THE UNITED NATIONS

The United Nations is the most prominent International Organization in the


contemporary world. It was founded shortly after World War II. After the
collapse of the League of Nations at the end of the World War II, countries

Contemporary WORLD 23
Unit 1: The Structures of Globalization

that worried about another global war began to push for the formation of a
more lasting international league. The result was the creation of UN. Although
the organization is far from perfect, it should be emphasized that it has so far
achieved its primary goal of averting another global war.

Essentially it functions to moderate the disputes between nation. It also serves


to protect the freedoms and human rights of people around the world. The
United Nations offers a forum for nations to discuss and resolve issues and
conflicts diplomatically.

FIVE ACTIVE ORGANS OF THE UNITED NATIONS

The UN is divided into five active organs. The General Assembly (GA) is UN’s
main deliberative policy making and representative organ. According to the
UN charter, “Decisions on important questions, such as those on peace and
security, admission of new members, and budgetary matters, require a two-
thirds majority of the General Assembly. Decisions on other questions are
done by simple majority. Annually, the General Assembly elects a GA
President to serve a one-year term of office.” All member states (currently at
193) have seats in the GA. The Philippines played a prominent role in the GA’s
early years when Filipino diplomat Carlos P. Romulo was elected GA President
from 1949-1950.

Although the GA is the most representative organization in the UN, many


commentators consider the Security Council (SC) to be the most powerful.
According to the UN, this body consists of 15 member states. The GA elects 10
of these 15 to two-year terms. The other 5 which are sometimes referred to as
the Permanent 5 (P5) are China, France, Russia, the United Kingdom, and the
United States. These states have been permanent members since the
founding of UN, and cannot be replaced through election.

The SC takes the lead in determining the existence of a threat to the peace
or an act of aggression. It calls upon the parties to a dispute to settle the act
by peaceful means and recommends methods of adjustment or terms of
settlement. In some cases, it can resort to imposing sanctions or even
authorizing the use of force to maintain or restore international peace and
security. Because of these powers, states that seek to intervene militarily in
another state need to obtain the approval of the SC. With the SC’s approval,
a military intervention may be deemed legal. This is an immense power.

The third UN organ is the Economic and Social Council (ECOSOC), which is
the principal body for coordination, policy review, policy dialogue, and
recommendations on social and environmental issues, as well as the
implementation of internationally agreed development goals. It has 54
members elected for three-year terms. Currently, it is the UN’s central
platform for discussions on sustainable development.

Contemporary WORLD 24
Unit 1: The Structures of Globalization

The fourth is the International Court of Justice which task is to settle, in


accordance with international law, legal disputes submitted to it by states
and to give advisory opinions referred to it by authorized United Nations
organs and specialized agencies. The major cases of the court consist of
disputes between states that voluntarily submit themselves to the court for
arbitration.

The court as such, cannot try individuals (international criminal cases are
heard by the International Criminal Court, which is independent of the UN),
and its decisions are only binding when states have explicitly agreed to place
themselves before the court’s authority.

Finally, the secretariat consists of the “Secretary-General and tens of


thousands of International UN staff members who carry out the day-to-day
work of the UN as mandated by the General Assembly and the organization’s
other principal organs. As such, it is the bureaucracy of the

UN, serving as a kind of international civil service. Members of the secretariat


serve in their capacity as UN employees and not as state representatives.

CHALLENGES OF THE UNITED NATIONS

Given the scope of the UN’s activities, it naturally faces numerous challenges.
Chief among these are the limits placed upon its various organs and
programs by the need to respect state sovereignty. The UN is not a world
government, and it functions primarily because of voluntary cooperation
from states. If states refuse to cooperate, the influence of UN can be severely
circumscribed.

For example, the UN Council on Human Rights can send special rapporteurs
to countries where alleged human rights violation is occurring. If a country
does not invite the rapporteur or places conditions on his/her activities,
however, this information-gathering mechanism usually fails to achieve its
goals.

However, perhaps the biggest challenge of the United Nations is related to


issues of security. As mentioned, the UN Security Council is tasked with
authorizing international acts of military intervention. Because of the P5’s veto
power, it is tough for the council to release a formal resolution, much more
implement it. This became an issue, for example, in the late 1990’s when the
United States sought to intervene in the Kosovo war. Hundreds and thousands
of Albanians were victims of massacres, mass deportations, and internal
displacement. Amid this systematic terror, members of the North Atlantic
Treaty Organization (NATO), led by the United States, sought SC authorization
to intervene in the Kosovo war on humanitarian grounds. China and Russia,

Contemporary WORLD 25
Unit 1: The Structures of Globalization

however, threatened to veto any action, rendering the UN incapable of


addressing the crisis. In response, NATO decided to intervene on its own.
Though the NATO intervention was largely a success, it nevertheless, left the
UN ineffectual.

APPLICATION

In 5-7 sentences, discuss the important role of the United Nations and its way
to the realization of its role.

FEEDBACK

Answer the following substantially:

1. The GA is the most representative organization in the UN, but why does the
Security Council (SC) is considered to be the most powerful organ in the UN?

2. If the states refuse to cooperate, what will happen to UN?

3. Why is it tough for the UN Security Council to release a formal resolution?

4. Do you think United Nations can intervene with President Duterte’s war on
drugs?

REFERENCES

Claudio, L.E., Abinales, P.N. (2018). The Contemporary World (pp. 39-47). 839
EDSA, South Triangle, Quezon City: C & E Publishing, Inc.

[Link] The Un Challenge

[Link]

Contemporary WORLD 26

You might also like