1.1 Defining Globalization: The Story of Gio, Latif and The Laksa
1.1 Defining Globalization: The Story of Gio, Latif and The Laksa
1.1 Defining Globalization: The Story of Gio, Latif and The Laksa
1 Defining Globalization
Some Descriptions
Gio's story is a very privileged way of experiencing global flows, but for other
people, the shrinking of the world may not be as exciting and edifying. For example, it
common for young women in developing countries to be recruited in the internet as
"mail-order brides" for foreign men living in other countries. After being promised a good
life once married to a kind husband in a rich city, they ended up becoming sexual and
domestic servants in foreign lands. Some were even sold off by their "husbands" to
gangs which run prostitute rings in these cities. Like Gio, they too have experienced the
shrinking of the world, albeit negatively.
Governments that decide to welcome foreign investments on the belief that they
provide jobs and capital for the country offer public lands as factory or industrial sites. In
the process, poor people living in these land, also called "urban poor communities," are
being evicted by the government. The irony is that these people forcibly removed from
their "slums" are also the labor force sought by foreign companies. They had to be
kicked out of their homes, and then told that they could take an hour or two of bus travel
from their relocated communities back to the "old home" for minimum-wage
work. Different people encounter globalization in a variety of ways.
The structure of globalization talks about the wheels of social sciences such as
Economics, Politics creating a common international community or society connected
by modern technology to connect the world's continents with more than seven billion
population. In history, we noticed that nations are separated by different types of
boundaries. Now we are in the new age where mankind's existence on this planet is
confronted by many challenges and issues making the means of survival a little
complicated while challenging people around the globe.
People choose to cross seas, continents just to support life and with the help of
technology mankind was able to create devices that can make people one. There is
now the normal norm of transporting finished goods and products from one place
to another. People from different places of the globe can now work and study from one
place to another and the sharing of cultures best practices from one place to another
has become easy like passing a ball from one team mate to another. Indeed,
globalization has become the special connecting device of multi-culture and multi-
practice of social science in this modern world.
1. Silk Road - the oldest known international trade route. It refers to a network of pathways in
the ancient world that spanned from China to Middle East and Europe. It was called as such
because one of the most profitable products traded through this network was silk, which was
highly prized especially in the area that is now the Middle East as well as in the West
(today's Europe) Traders used the Silk Road regularly from 130 BCE when the Chinese Han
dynasty opened trade to the West until 1453 BCE when the Ottoman Empire closed it.
2. Galleon Trade - According to historians Dennis O. Flynn and Arturo Giraldez, the age of
globalization began when "all important populated continents began to exchange products
continuously - both with each other directly and indirectly via other continents - and in values
sufficient to generate crucial impact on all trading partners." Flynn and Giraldez trace this
back to 1571 with the establishment of the galleon trade that connected Manila in the
Philippines and Acapulco in Mexico. This was the first time that the Americas were directly
connected to Asian trading routes. For Filipinos, it is crucial to note that economic
globalization began on the country's shore. The galleon trade was part of the age of
mercantilism.
3. Gold Trade - A more open trade system emerged in 1867 when, following the lead of the
United Kingdom, the United states and other European nations adopted the gold standard at
an international monetary conference in Paris. Broadly, the goal was to create a common
system that would allow for more efficient trade and prevent the isolationism of the
mercantilist era. The countries thus established a common basis for currency prices and a
fixed exchange rate system -all based on the value of gold.
4. Fiat currencies- These are currencies that are not backed by precious metals and whose
value is determined by their cost relative to other currencies. It also refers to a system in
20th century that allows governments to freely and actively manage their economies by
increasing or decreasing the amount of money in circulation as they see fit.
The Bretton Woods System (BWS)
After the two world wars, world leaders sought to create a global economic system
that would ensure a longer-lasting global peace. They believe that one of the ways to
achieve this goal was to set up a network of global financial institutions that would
promote economic interdependence and prosperity. The Bretton Woods system was
inaugurated in 1944 during the United Nations Monetary and Financial Conference to
prevent the catastrophes of the early decades of the century from recurring and
affecting international ties.
The Bretton Woods System was largely influenced by the ideas of British
Economist John Maynard Keynes who believed that economic crises occur not when a
country does not have enough money, but when money is not being spent and, thereby,
not moving. When economies slow down, according to Keynes, governments have to
reinvigorate markets with infusion of capital. This active role of governments in
managing spending served as the anchor for what would be called a system of global
Keynesianism.
Neo-liberalism came under significant strain during the global financial crisis 2007-2008
when the world experienced the greatest economic downturn since the great depression.
The crisis can be traced back to the 1980s when the United State systematically
removed various banking and investment restrictions. Financial experts wrongly
assumed that even if many of the borrowers were individuals and families who would
struggle to pay, a majority would not default. The crisis spread beyond the United States
since many investors were foreign governments, corporations and individuals. The loss
of their money spread like wildfire back to their countries.
Module 1 Summary
1. There are countries or states that are independent and govern themselves.
2. Countries interact with each other through diplomacy.
3. There are international organizations, like the United Nations (UN) that facilitate the
interactions.
4. International organizations also take on lives of their own.
Internationalism
Internationalism is an imagined system of heightened interaction between various
sovereign states particularly the desire for greater cooperation and unity among states
and people. It comes in different forms, but the principle may be divided into two broad
categories: liberal internationalism and socialist internationalism.
Liberal internationalism
Achievement: Foundation of United Nation
Proponents:
1. Immanuel Kant - argues that citizens in the state must give up some freedom and
establish a continuously growing state consisting of various nations which will
ultimately include the nations of the world". Since, if there is no form of world
government then international system will be chaotic.
2. Jeremy Bentham- says that the objectives of the global legislators should aim to
propose legislation that would create " the greatest happiness of all nations taken
together".
3. Giuseppe Mazzini- believes that free, unified nation-state should be the basis of
global cooperation.
4. Woodrow Wilson- forwarded the principle of self-determination and advocate for the
creation of League of Nations to prevent a world war II.
Socialist internationalism
Achievement: Declaration of International women's Day and Labor Day
1. Karl Marx -claimed a premium economic equality among the classes of citizens in
the world.
2. Friedrich Engels and Karl Marx established a socialist revolution through a battle
cry "Workers of the world, Unite! you have nothing to lose but your chains."
3. Vladimir Lenin - established the communist international (Comintern) in 1919 to
serve as central body for directing communist parties all over the world.
4. Stalin re-stablished the Comintern as Communist Information Bureau (Cominform) in
order to direct the various communist parties that had taken power in Eastern
Europe.
This lesson examined the roots of the international system. In tracing these roots, a
short history of internationalism was provided. Moreover, internationalism is but one
window into the broader phenomenon of globalization. Nevertheless, it is a very crucial
aspect of globalization since global interactions are heightened by the increased
interdependence of states. This increased interdependence manifests itself not just
through state-to-state relations. Increasingly, international relations are also facilitated
by international organizations that promote global norms and policies. The most
prominent example of this organization, of course, is the United Nations.
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Module 2 Summary
This lesson examined the roots of the international system. In tracing these roots,
a short history of internationalism was provided. Moreover, internationalism is but one
window into the broader phenomenon of globalization. Nevertheless, it is a very crucial
aspect of globalization since global interactions are heightened by the increased
interdependence of states. This increased interdependence manifests itself not just
through state-to-state relations. Increasingly, international relations are also facilitated
by international organizations that promote global norms and policies. The most
prominent example of this organization, of course, is the United Nations.
Global governance is such a complex issue that one can actually teach an entire
course in itself. This lesson has focused on the IOs and the United Nations in
particular. International organizations are highlighted because they are the most visible
symbols of global governance. The UN, in particular, is the closest to a world
government. What is important to remember is that international institutions like the UN
are always in a precarious position. On the one hand, they are groups of sovereign
states. On the other, they are organizations with their own rationalities and agendas. It
is this tension that will continue to inform the evolution of these organizations. However,
note that there are many institutions, groups, and ideas that hold international and
global politics together. In your own time, you may want to explore these topics on your
own.