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CONTEMPORARY WORLD (GNED 07)CHAPTER 1: GLOBALIZATIONGlobalization - is the process of interaction and integration among people, companies, and governments worldwide.Multitude of process but these are the main facets: Economy – most dominant facet Political system Culture Has many definitions because...

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CONTEMPORARY WORLD (GNED 07) CHAPTER 1: GLOBALIZATION Globalization - is the process of interaction and integration among people, companies, and governments worldwide. Multitude of process but these are the main facets: •

Economy – most dominant facet

•

Political system

•

Culture

Has many definitions because: •

It depends on the people defining it.

•

Ever-changing world.

METAPHORS TO USE  Liquid:  Characteristic of globalization.  Because of this we can say that globalization: o changes quickly (e.g. stock market or forex trading). o Difficult to stop (e.g. video going viral over the internet).  “Domino effect”  Flow:  The movement of people, things, places and information.  We could say that this is the process of globalization.  Solid: 

Barriers that prevent/make difficult the movements of things or the movement of globalization.

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It’s either natural or man-made

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Have the tendency to “melt”

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For ex. Great Wall of China.

CLASSIFICATION OF DEFINITION OF GLOBALIZATION 

Broad and Inclusive -

Somehow vague definition.

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Does not specify specific facet of globalization.

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For example: “…globalization means the onset of the borderless world…” (Ohmae, 1992). “…the compression of time and space” (Harvey, 1998).

Narrow and Exclusive - Adhere to only particular definitions. -

Specific facet is involved.

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For example: “globalization represents the triumph of a capitalist world economy tied together by a global division of labor” (Wallerstein, 1998).

EFFECTS OF GLOBALIZATION  GLOBALIZATION CAN EITHER INCREASE THE:  Homogeneity ➢ Increasing sameness in the world ➢ Often linked to cultural imperialism ￫ Culture influences other culture.  Heterogeneity  Creation of various cultural practices, new economies, and political groups because of the interaction of elements from different societies in the world.  Contrary to cultural imperialism, heterogeneity in culture is associated with cultural hybridization.

CHAPTER 2: ECONOMIC GLOBALIZATION

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Economic Globalization - Spread of trade transportation and communication system on a global scale in the interest of promoting international commerce.

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TYPES OF ECONOMIC POLICY Protectionism - Protecting one’s own economy from foreign competition by imposing trade barriers. ⮚

Trade Liberalization - Reduce trade barriers to make international trade easier between countries ⮚

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Tariffs – required fees on imports / exports.

Practices free trade. ⮚ Trading of goods / services between 2 or more countries with reduced or without trade barriers. ⮚ Trade bloc – group of nations/countries that have agreement to each other to practice free trade. ⮚ e.g. North American Free Trade Association (NAFTA)

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⮚ North America ⮚ Mexico ⮚ Canada Leads to outsourcing – transferring jobs or buying goods/ services to developing countries because of its cheap prices.

INSTITUTIONS THAT FACILITATE ECONOMIC GLOBALIZATION  INTERNATIONAL GOVERNMENTAL ORGANIZATION (IGO) - Refers to an entity created by treaty, involving two or more nations, to work in good faith, on issues of common interest. - Strive for peace, security and deal with economic and social questions - Examples: The World Bank, International Monetary Fund (IMF), World Trade Organizations, Association of South East Asian Nations (ASEAN).

 MULTINATIONAL CORPORATIONS (MNC)

Also referred as Transnational Corporations (TNC) Corporations that have overseas branches Greatest contribution is the use of automation o use of various control systems for operating equipment such as machinery with minimal or reduced human involvement. Examples: Ford Motor Corporation, Fujitsu, General Electric, Adidas, etc.

 INTERNATIONAL NON-GOVERNMENTAL ORGANIZATIONS - Performs various services and humanitarian functions. - They also deal with problems or damages that globalization inflict on poor nations. - Bring citizen concerns to governments. - Examples: Red Cross, Greenpeace, and Amnesty International SOME ADVANTAGES and DISADVANTAGES of ECONOMIC GLOBALIZATION ADVANTAGES ⮚

Increased standard of living - IGO could help one’s nation

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Access to New Markets - Allows the people to have variety of products from different countries

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Increased Employment - Due to outsourcing

DISADVANTAGES ⮚

Widening Disparity in incomes - Educated individuals get more income that those who are not.

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Decreased Employment - Due to automation

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Environmental Degradation - Most damaging effect of economic globalization to the world -

Caused by MNCs Damages Sustainable Development o The idea that progress is needed in our world but we also need to save the resources for the future generation.

CHAPTER 3: MARKET INTEGRATION

Market Integration - Process whereby countries coordinate and link their economic policies.

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Bretton Woods System -

Conducted to promote peace after the destruction of the world caused by the second world war. - Established global currency by using the gold standard - Established an overseer for these exchange rate ⮚ International Monetary Fund – main function is to lend short-term loans.

LEVELS / STAGES OF MARKET INTEGRATION 1.) Preferential Trading Area ⮚

A bloc that gives preferential access to certain products from certain countries ⮚ Carried out by reducing, but not completely eliminating tariffs. 2.) Free Trade Areas ⮚

An arrangement made between countries, where the countries agreed to reduce or eliminate trade barriers on all their goods.

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The World Bank – main function is to eradicate worldwide poverty by 2030 by advocating developmental programs to poor nations.

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E.g. NAFTA

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General Agreement on Tariffs and Trade (GATT) was established

Africa

3.) Customs Union ⮚

Agreement made between countries where countries agreed to trade freely among themselves and they also agreed to adopt common external trade barriers against nonmember countries.

4.) Common Markets ⮚

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5.) Economic and Monetary Union is a common market with a common currency and a common central bank

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E.g. European Union

ADVANTAGE AND DISADVANTAGE OF HAVING MORE INTEGRATED MARKET ADVANTAGE ⮚ Reduction in costs because of single currency. ⮚ Currency is more stable DISADVANTAGE -

loss of one nation-state’s autonomy/authority to control their own economic and monetary policy.

INTERNATIONAL FINANCIAL INSTITUTIONS

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Agreement between nations to promote free trading

Agricultural Revolution 

E.g. working abroad.

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Predecessor of World Trade Organization

HISTORY OF GLOBAL MARKET INTEGRATION

is a custom union with common policies on product regulation and free movement of goods, services, capital, and labor.

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People learned how to domesticate plants and animals Farming led to vast surpluses

Led to major developments: - Permanent settlements - Trade networks - Population growth

Industrial Revolution  Led to mass production because of innovations on technology -

Productivity went up Standards of living rose More access to a wider variety of goods

Led to sweatshop conditions: Low wage Unsafe working condition Very long working hours During industrial revolution, capitalism and socialism also sprung up: ⮚

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Capitalism – economic model in which all-natural resources and means of production are privately owned, - Emphasizes profit maximization and competition as the main drivers of efficiency. - The idea is that; if you left a capitalist economy alone, consumers will regulate things themselves by selecting goods and services that provide the best value. - In reality, this could lead to market failure. E.g. monopoly Socialism – production is under collective ownership. - Owned by the government but must be allocated equally to all citizen - Emphasizes collective goals - Expect everyone to work for the common good - Placing higher value on meeting everyone’s basic needs than individual profit.

Karl Marx predicted that this will lead to communism but on the contrary, the opposite happened: it gave massive power and privilege to political elites. ⮚

Information Revolution - Shifted from manufacturing-based economy to one that is based on service work and the production of ideas rather than goods. - Also referred as post-industrial society. - One of the evidences of this is the decline of agricultural jobs in Philippines. - Focused on tertiary sector of economy. - Key part is the rise of multinational corporations.

NATION-STATE - Refers to the people with collective identity that lives within the state. Bounded by the laws and rules set by the government. ELEMENTS OF NATION-STATE ▪ Permanent population ▪ Clear boundary of territory ▪ Government that manages the territory and the population living inside of it. ▪ Sovereignty ⮚

Has a power and authority over the people living inside of territory (internal sovereignty).

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Has the power to manage itself and not to be intervened by other state (external sovereignty).

INSTITUTIONS THAT GOVERN INTERNATIONAL RELATIONS UNITED NATIONS (U.N.) - Made up of 193 countries called member states - Maintaining peace and building alliances with other nations is the main goal  Main Organs: ▫ General Assembly – meeting held every year to discuss all kinds of things that promotes the peace and the betterment of all human lives ▫ Security council – group of countries that act as the military power or enforcer of U.N. -

Consists of 5 permanent members (U.S., U.K., China, Russian Federation, and France) and 10 non-permanent members elected for 2-year term in General Assembly.

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Can pass sanctions to a member of U.N. that did not followed the rules.

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The permanent members have the power to veto a decision from other members.

CHAPTER 4: THE GLOBAL INTERSTATE SYSTEM Global Interstate System - It is the whole system of human interactions. The modern world-system is structured politically as an interstate system – a system of competing and allying states.  NATION - Refers to people with collective identity Shared history Shared culture  STATE - Refers to the government itself - Territory / boundary - Internal and external sovereignty

▫ Economic and Social council – economic aspect of U.N. focuses more on the sustainable development of the world while the social council deals mostly on the equal treatment of human (human rights).

▫ International Court of Justice – this is where the countries settle disputes in a court of law and also a place where war criminals and rulers who have done terrible things to their people can be put to trial for their crimes. ▫ Trusteeship Council – group of countries that manages the trust territories. ▪ Trust territories – are countries that were weak and can’t manage its own people once but with the help of trusteeship council, they gained prosperity and independence when they showed that they can stand on their own feet.

▪ Save the Children WHEN SHOULD THE GLOBAL GOVERNMENT MUST INTERVENE? -

WHY IS THE POWER OF NATION-STATE’S GOVERNMENT DECLINING?  Traditional challenges: ▫ External intervention – another nation-state intervenes with one’s nation-state ▫ Internal political challenges – different political beliefs lead to conflict which leads to the weakening of nation-state ▫ Regional/international organization intervention – when an international organization intervenes a nation-state’s affairs.

▫ Secretariat – staff of U.N. that makes all other organ functions. ▪ Led by the Secretary-General, elected in General Assembly with 5-year renewable term. NORTH ATLANTIC TREATY ORGANIZATION (NATO) -

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Military alliance between U.S., Canada, and 25 European countries Based on the idea of collective security • If one member of NATO is being attacked, the other members will surely help. More decisive and powerful than the Security Council since NATO is more focused on military operations than advocating peace like the Security Council. Made mostly of U.S. military personnel.

Declining power of nation-states Stopping the “flow” of globalization Mass migration Horrendous and/or uncontrollable events occurring within nation-states Global problems

 Challenges from national / identity movements -

 Global Economics -

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NON-GOVERNMENTAL ORGANIZATION -

Established for the betterment of humans all over the world Mostly do humanitarian services Neutral on all nations ▪ Their loyalty is not for the country/government but on the human itself.

▪ Some examples are: ▪ Red Cross ▪ Doctors Without Borders ▪ Oxfam ▪ Amnesty International

Different identity or nations living inside a state may lead to conflicts which in turn lead to the weakening of the government of nation-state.

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Adhering to the wants and needs of private corporations may lead to decline of power of government. Following the standard of the global government’s economic rules leads to the decline of autonomy of nation-state’s government when it comes to their own economic policy.

Global Social Movements -

Adhering to the social movements such as advocating every kind of rights may lead to the weakening of nation-state’s government.

CHAPTER 5: GLOBAL DIVIDES: THE NORTH AND SOUTH FIRST WORLD AND THIRD WORLD COUNTRIES

trip, over 80% of the population died due to smallpox and measles. 2. INDUSTRIAL REVOLUTION (18th to 19th century)   

Rich and poor Old terms Capitalist Vs. Communists (Cold War)

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2nd world countries? New terms are: developed, developing, and undeveloped.

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Measured using Human Development Index by United Nations  Health (life expectancy index)  Education (education index)  Living Standards (Gross national income per capita / income index)

THEORIES OF GLOBAL STRATIFICATION MODERNIZATION THEORY ⮚ Global stratification is viewed from technological and cultural differences. •

Progress vs. Tradition ▫ Winner: Progress

Consists of two historical events (Western Europe) 1. COLUMBIAN EXCHANGE - Refers to the spread of goods, technology, education, and diseases between America and Europe after Christopher Columbus discovered America. ⮚

Did well with the European countries

▫ Gained agricultural advantages Population growth and new opportunity for trade - Specifically, with potatoes and tomatoes ⮚

Did not went well for Native Americans -

Population were ravaged / depleted by the diseases from Europe

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Estimated that 150 years ago, following Columbus’ 1st

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Machines were the trending, replacing humans with machines. - Massive increase in productivity - Gradually improve standards of living for everyone. Why did Industrial Revolution did not take hold everywhere?  Tensions between tradition and technological advances is the biggest barrier towards growth  Traditionalist rejects or less willing to adopt new technologies because they value their culture over changes.

Walt Rostow’s Stages of Modernization: 1. Traditional Stage – structured around small, local communities with production typically being done in family setting. - Because technology is not yet invented, most of time spent on laboring to produce food. 2. Take-off Stage – people begin to use their individual talents to produce things beyond the necessities. - People in this stage starts to innovate new ways to produce that’s why it creates new markets for trade - From family setting to individualism - Social status is more closely linked with material wealth 3. Drive to technological maturity – technological growth from earlier periods begins to bear fruit in the form of: Population growth Reduction in absolute poverty levels More diverse job opportunities  Typically begin to push for social change like implementing social support system like: - Basic schooling for everyone - Developing more democratic political systems

4. High Mass Consumption – production becomes more wants than needs. - Have social support system to ensure that all citizens have access to basic necessities. - E.g. Free foods for the poor, housing projects for the poor Issues with Modernization Theory: ⮚ Capitalism is the only way for a country to develop - Capitalism is not the only way for a country to develop. Take China for example – their economic model is communism yet they are considered as one of the most powerful nation today. ⮚

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Did not consider the business context at the time Countries like the U.S. and U.K. prospered from a position of global strength during a period when there were little to no laws against slavery and concerns about natural resource depletion. Blaming the victims - This theory essentially blames poor countries for not embracing to accept change.

DEPENDENCY THEORY ⮚ Dependency – condition in which the development of the nation-states of the South contributed to a declining in their independence and to an increase in economic development of the North. ⮚ Trade liberalization causes greater poverty to less developed countries ⮚ Rather than focusing on what poor countries are doing wrong, this theory focuses on how poor countries have been wronged by richer nations ⮚ Asks the question: “If the resources are finite, how come the developed nations today became rich?” ⮚ Answer is because they exploit the poor nations. MODERN WORLD-SYSTEM ⮚ Proponent is Immanuel Wallerstein ⮚ Consists of two nations (sometimes three) Wallerstein stated how the global economy works today:

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Core Nations – receives majority of the wealth Periphery Nation – receives unequal distribution of world’s wealth Semipheriphery Nation – ease the tension between core and periphery when it gets heated - either they came from core nation or periphery nation

Core Nation (A)

Core Nation (B)

Periphery Nation

Process: 1. Core nation (A) buys good/services from periphery nation because of its cheap prices. 2. Periphery sells good/services to core nation (A) because core nation (A) ordered the goods/services from them. 3. Core nation (B) will buy goods from core nation (A) that came from periphery nation because of its fine quality. 4. Core nation (B) will sell the product to Periphery Nation because of the high demand. 5. Periphery nation will be indebted because of the high price that core nation (B) set. 6. Periphery nation’s economy will become stagnant because of its debts. Issues with Dependency Theory: ⮚ Colonialism / Capitalism may have left a scar, but it is not the only reason why poor countries are poor today. - E.g. Ethiopia was not colonized and had very little contact with richer nations yet their economy collapsed. ⮚ Ignore other factors why poor nations are poor today: - E.g. politics - Soviet Union’...