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Introduction

Prepared By: Ken M. Villamartin, MPA

Globalization
GLOBALISM - points to aspirations for an end
state of affairs wherein values are shared by or
pertinent to all the world’s five billion people,
their environment, their roles as citizens,
consumers or producers with an interest in
collective action designed to solve common
problems.
UNIVERSALISM – which values embrace all
humanity, hypothetically or actually.

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Globalization
GLOBALIZATION – constitutes a multiplicity of
linkages and interconnections that transcend the
nation states (and by implication the societies)
which make up the modern world system. It
defines a process through which events, decisions
and activities in one part of the world can come to
have a significant consequence for individuals and
communities in quite distant parts of the globe.
-Anthony McGrew-

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Globalization
GLOBALIZATION - redefines the relationship between
territoriality and authority, shifting authority from the level of
the state to supranational and subnational units, perhaps
offering more to grasp onto in operational terms but precious
little in causal terms.
GLOBALIZATION - is defined here as a set of economic and
political structures and processes deriving from the changing
character of the goods and assets that comprise the base of
the international political economy—in particular, the
increasing structural differentiation of those goods and assets
-Philip Cerny-

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Globalization
GLOBALIZATION - shifts authority to specifically
the local and the regional level.

-Robert Z. Lawrence-

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Globalization Definition, Process and
Concepts
The term globalization comes from English, as base of
the word ”globalization” which refers to the emerging of
an international network, belonging to an economical
and social system1 . One of the earliest uses of the term
"globalization", as known, was in 1930 - in a publication
entitled Towards New Education - to designate an
overview of the human experience in education
Near Term “giant corporations” was used in 1897
Charles Russell Tazel to describe the big national trusts
and other large enterprises of the time.
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Globalization Definition, Process and
Concepts
Since 1960 both terms (Globalization and Giant
Corporations) began to be used interchangeably
by economists and researchers in social sciences
and were used until about mid 1980.

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Globalization Definition, Process and
Concepts
Vladislav Inosemtsev defines globalization as one
of the most popular social studies of today, but is
at the same time an empty term. Mentioned in
literature in the mid 1940s, but up until the mid
1980s it was mentioned only occasionally
After the Cold War the term began to be used to
describe the world becoming more interdependent
in its economical and informational dimension

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Globalization Definition, Process and
Concepts
Roland Robertson, a professor of sociology at the
University of Aberden, was the first person who
defined globalization as "the understanding of the
world and the increased perception of the world as a
whole.“
Martin Albrow and Elizabeth King, sociologists,
define globalization as "all those processes by which
the peoples of the world are incorporated into a
single world society.

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Globalization for Development
International Trade Perspective
 Globalization is increasing the integration of national
markets and the interdependence of countries worldwide for
a wide range of goods, services, and commodities.
 In the past 30 years, international trade flows have
expanded dramatically and, generally, at a rate faster than
global output, with a doubling of the value of trade in a 10-
year period since the mid-1990s.
 In 2006, the dollar value of world merchandise exports
reached US$11.98 trillion (as compared to about US$5.17
trillion in 1995), and that of commercial services exports
rose to US$2.71 trillion, thus raising total world trade to over
US$14 trillion.
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Globalization for Development
International Trade Perspective
Several Factors that played an important role in the recent
expansion of trade growing integration of economies and
increasing contribution of trade to development;
liberalization of tariffs and other barriers to trade
foreign direct investment through trade and investment
negotiations and agreements
autonomous unilateral structural reforms; technological
innovations in transport and communications
international solidarity through supportive measures (like trade
preferences);
the strategic use of policies, experimentation and innovation
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Globalization for Development
International Trade Perspective
Trade-driven globalization is also manifested in the
changing geography of the world economy today.
Trade-driven globalization has reached unprecedented
pace, scope, and scale.
Trade-Driven globalization has spawned new
opportunities and realities as well as persistent
challenges to the acceleration of economic growth,
development, and poverty reduction.

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Globalization for Development
International Trade Perspective
Some developing countries are beginning to realize the
prospects of a more beneficial integration – both
quantitative and qualitative – into the global economy
and the international trading system. For many others,
an increased quantitative integration has not had
positive results. Often, their viii Globalization for
Development liberalization has not translated into
qualitative gains with widespread and structural
developmental impact.

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The New Waves of Globalization and
Its Economic Effects
 Since about 1980 there has been unprecedented
global economic integration. Globalization has
happened before, but not like this. Economic
integration occurs through trade, migration, and
capital flows.
 Since 1980 many developing countries—the “new
globalizers”— have broken into world markets for
manufactured goods and services.

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Previous Waves of Globalization and Reversals
1. The first wave of globalization: 1870–1914
It was triggered by a combination of falling transport
costs, such as the switch from sail to steamships, and
reductions in tariff barriers, pioneered by an Anglo-
French agreement.
Cheaper transport and the lifting of manmade barriers
opened up the possibility of using abundant land.
New technologies such as railways created huge
opportunities for land-intensive commodity exports.

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Previous Waves of Globalization and Reversals
The production of primary commodities required
people. Sixty million migrated from Europe to North
America and Australia to work on newly available
land.
The production of primary commodities for export
required not just labor but large amounts of capital.
Globally, growth accelerated sharply. Per capita
incomes, which had risen by 0.5 percent per year in
the previous 50 years, rose by an annual average of
1.3 percent.
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Previous Waves of Globalization and Reversals
The impact of globalization on inequality within countries depended in part on
the ownership of land. Exports from developing countries were land-intensive
primary commodities. Within developing countries this benefited
predominantly the people who owned the land. Since most were colonies, land
ownership itself was subject to the power imbalance inherent in the colonial
relationship. Where land ownership was concentrated, as in Latin America,
increased trade could be associated with increased inequality. Where land was
more equally owned, as in West Africa, the benefits of trade were spread more
widely. Conversely, in Europe, the region importing land-intensive goods,
globalization ruined landowners. For example, Cannadine (1990) describes the
spectacular economic collapse of the English aristocracy between 1880 and
1914. In Europe the first wave of globalization also coincided with the
establishment for the first time in history of the great legislative pillars of social
protection—free mass education, worker insurance, and pensions (Gray 1998).

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Previous Waves of Globalization and Reversals
Ever since 1820—50 years before globalization—world income
inequality as measured by the mean log deviation had started
to increase drastically (figure 1.2).2 This continued during the
first wave of globalization. Despite widening world inequality,
the unprecedented increase in growth reduced poverty as
never before. In the 50 years before 1870, the incidence of
poverty had been virtually constant, falling at the rate of just
0.3 percent per year. During the first globalization wave, the
rate of decline more than doubled to 0.8 percent. Even this
was insufficient to offset the increase in population growth, so
that the absolute number of poor people increased.
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Previous Waves of Globalization and Reversals
The retreat into nationalism: 1914–45
“The twentieth century began with a highly efficient
international monetary system that was destroyed in World
War I, and its bungled recreation in the inter-war period
brought on the great depression.”
Globally, rising protectionism drove international trade back
down.
By 1950 exports as a share of world income were down to
around 5 percent—roughly back to where it had been in 1870.
Technology continued to reduce transport costs: during the
inter-war years sea freight costs fell by a third.
Protectionism had undone 80 years of technical progress in
Previous Waves of Globalization and Reversals
2. The second wave of globalization: 1945–80
Developing countries faced severe barriers.
Most developing countries erected barriers
against each other and against developed
countries.
Economies of Agglomeration – introduced by the
second wave Second wave of globalization.
Economies of agglomeration - refer to the
benefits that firms and individuals obtain by
locating near one another.
Previous Waves of Globalization and Reversals
3. The New Wave of Globalization
Began in 1980 and is very distinctive
First, and most spectacularly, a large group of developing
countries broke into global markets.
Second, other developing countries became increasingly
marginalized in the world economy and suffered declining
incomes and rising poverty.
Third, international migration and capital movements, which
were negligible during second wave globalization, have
again become substantial.
We take these features of the new global economy in turn.
Development and Globalization
Globalization and the shifting balance in the world
economy.
Economically, globalization means closer
integration of national economies through trade
and financial flows as well as cross-border
migration of people.
As national economies “open up” and lower
their external barriers, they become more
exposed – and more vulnerable – to global forces
and influences.
 Development and Globalization

National Trade and

Integration
Economies Financial Flows

Cross-Border Migration of People

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Development and Globalization
Global imbalances, crisis, and the lack of global
Global crisis saw rising imbalances in international trade and
financial flows that starkly contradicted traditional
development theory and the conventional wisdom of
policymaking of that very era.
The global crisis had a severe impact on global economic
activity, incomes and employment; though more lastingly so in
key developed countries than in many developing countries.
Unbalanced competitiveness positions provide the background
to financial stresses that continue to plague parts of the
developed world today, especially in the euro area.
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Development and Globalization
Development challenges and policies to
overcome the crisis
The role of macroeconomic policies to mitigate the effects of
the crisis and to reinvigorate economic growth, while reducing
unemployment and inequality, and putting the global economy
on a sustainable growth path.
Macroeconomic policies are strategies and actions
implemented by a government or monetary authority to
manage the economy and achieve specific economic
objectives.
Fiscal Policy - involves the use of government spending and
taxation to influence the economy.
Monetary Policy - involves the management of the money
Development and Globalization
Long – Standing Challenges
The relation between the ongoing globalization process and its
associated policies is an important element in the evaluation of
the progress towards the Millennium Development Goals
(MDGs)
Poverty
Educational
Gender Attainment Goals
Other Targets such as, reduction in child mortality, improvement
of maternal health, reducing major diseases, attaining
environmental sustainability and improving the conditions for
development in particular finance and debt reduction, have
seen less marked progress.