1.1 Defining Globalization: The Story of Gio, Latif and The Laksa

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1.

1 Defining Globalization

The definition of Globalization is one of the greatest miracles or phenomena in this


world since in this particular event we see the so called fusion of many continents,
nations, nationalities from the different parts of the globe to create a single international
community connected by modern technology. It links multi cultural people that aims to
promote the advancement of many essential field of specializations, professions and
industries.

The Story of Gio, Latif and the Laksa


Please watch the video about Gio, Latif and the Laksa and then see how
globalization works in the story.
Gio, Latif and the Laksa (Links to an external site.)
The Global Experiences
Gio and Latif's story is fictional but very plausible since it is, in fact, based on the
real -life experience of one of the authors. it was through such friendships that one was
able to appreciate the meaning and impact of globalization.
The story of Gio and Latif shows how globalization operates at multiple, intersecting
levels through mass media. For example, the spread of Filipino TV in Malaysia suggests
how fast this Filipino popular culture has proliferated and crisscrossed all over Asia.
The Model UN activity that Gio and Latif participated in is an international
competition about international politics. Gio met Latif (a Malaysian involved in the model
UN) in Sydney, a global city that derives its wealth and influence from the global capital
that flows through it. Sydney is also a metropolis of families of international immigrants
or foreigners working in the industries that also sell their products abroad. After the two
had gone back to their home countries, Gio and Latif kept in touch through Facebook, a
global social networking site that provides instantaneous communication across
countries and continents. They preserved their friendship online and then rekindled this
face-to-face in Singapore, another hub for global commerce, with 40 percent of the
population being classified as "foreign talents."

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.

1.2 The Structures of Globalization

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.

Globalization: A Working Definition

Most accounts view globalization as primarily an economic process. When a


newspaper reports that nationalists are resisting "globalization," it usually refers to the
integration of the national markets to a wider global market signified by the increased
free trade. When activists refer to the "anti-globalization" movement of the 1990's they
mean resisting the trade deals among countries facilitated and promoted by global
organizations like the World Trade Organization (WTO).
Globalization scholars do not necessarily disagree with people who criticize unfair
international trade deals or global economic organizations. In fact, many are
sympathetic to the critique of economic globalization. Academics differ from journalists
and political activists, however, because they see globalization in much broader terms.
The best scholarly description of globalization is provided by Manfred Steger who
described the process as "the expansion and intensification of social relation and
consciousness across world-time and across-space. Expansion refers to both the
creation of new social networks and the multiplication of existing connections that cut
across traditional political, economic, cultural and geographic boundaries. Intensification
refers to the expansion, stretching and acceleration of these networks.
Steger posits that his definition of globalization must be differentiated with the
ideology he calls globalism. If globalization represents the many processes that allow
for the expansion and intensification of global connections, globalism is a widespread
belief among powerful people that the global integration of economic markets is
beneficial for everyone, since it spreads freedom and democracy across the world.
For anthropologist Arjun Appadurai, different kinds of globalization occur on
multiple and intersecting dimensions of integration that he calls "scapes." An
"ethnoscape" for example refers to the global movement of people, while "mediascape"
is about the flow of culture. A "technoscape" refers to the circulation of mechanical
goods and software; a "financescape" denotes the global circulation of money; and the
"ideoscape" is the realm where political ideas move around.
Appadurai's argument is simple: there are multiple globalizations. Hence, even if
one does not agree that globalization can be divided into five "scapes," it is hard to deny
Appadurai's central thrust of viewing globalization through various lenses.

1.3 The Globalization of World


Economics

International Trading System and the Bretton Woods System


Hi everyone! In this lesson, you will learn the historical background of international
trading system.
The International Monetary Fund (IMF) regards "economic globalization" as a
historical process representing the result of human innovation and technological
progress. It is characterized by the increasing integration of economies around the
world through the movement of goods, services, and capital across borders. These
changes are the products of people , organizations, institutions, and technologies. As
with all other processes of globalization, there is a qualitative and subjective element to
this definition.
Even while the IMF and ordinary people grapple with the difficulty of arriving at
precise definitions of globalization, they usually agree that a drastic economic change is
occurring throughout the world. According to the IMF, the value of trade (goods and
services) as percentage of world GDP increased from 42.1 percent in 1980 to 62.1
percent in 2007. Increased trade also means that investments are moving all over the
world at faster speeds. According to the United Nations Conference on Trade and
Development (UNCTD), the amount of foreign direct investments flowing across the
world was $57 billion in 1982. By 2015, the number was $1.76 trillion. These figures
represent a drastic increase in global trade in the span of just a few decades. It has
happened not even after one lifespan.
Apart from the sheer magnitude of commerce, we should also note the increased
speed and frequency of trading. These days, supercomputers can execute millions of
stock purchases and sales between different cities in a matter of seconds through a
process called high-frequency trading.

International Trading Systems


International trading systems are not new.

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.

Two Financial Institutions created during the Bretton Woods Conference:

1. International Bank for Reconstruction and Development (IBRD or World Bank) is


responsible for funding a reconstruction projects of countries affected by world wars.
2. International Monetary Fund (IMF) is a lending institution that helps each country to recover
from financial crises.
Neoliberalism and its Discontents
Keynesianism is an economic theory that assumed three things 1) Economic crisis
occur when a country does not have enough money, but when money is not being spent
and, thereby, not moving 2) If the economies slow down then government should infuse
money to reinvigorate the market 3) Proponent argued that as prices increased,
companies would earn more, and would have more money to hire workers.
Friedrich Hayek and Milton Friedman challenged the Keynesian theory and argued that
government intervention in economies distort the proper functioning of the market.
The Washington consensus advocates for minimal government spending to reduce
government debt. They also called for the privatization of government-controlled
services like water, power, communications and transport, believing that the free market
can produce the best result.

The Global Financial Crisis and the Challenge to Neoliberalism

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.

Economic Globalization Today


"The world has become too integrated. Whatever one's opinion about the Washington
Consensus is, it is undeniable that some form of international trade remains essential
for countries to develop in the contemporary world." Export, not just the local selling of
goods and services, make national economies grow at present. In the past, those that
benefited the most from free trade were the advanced nations that were producing and
selling industrial and agricultural products.
In the recent decades, partly as a result of these increased export, economic
globalization has ushered in an unprecedented spike in global growth rates.
Economic globalization remains an uneven process, with some countries, corporations
and individual benefiting a lot more that others". (Claudio et al. 2018) The beneficiaries
of global commerce have been mainly transnational corporations (TNCs) and not
government.

Module 1 Summary

International economic integration is a central tenet of globalization. In fact, it is so


crucial to the process that many writers and commentators confuse this integration for
the entirety of globalization. As a reminder, economics is just one window into the
phenomenon of globalization; it is not the entire thing.
Nevertheless, much of globalization is anchored on changes in the economy. Global
culture, for example, is facilitated by trade. Filipinos would not be aware of American
culture if not for the trade that allows locals to watch American movies, listen to
American music and consume American products. The globalization of politics is
likewise largely contingent on trade relations. These days, many events of foreign
affairs are conducted to cement trading relations between and among states.
Depending on what is being globalized, a different dynamic (or dynamics) may emerge.
So while it is important to ask "What is globalization?" it is likewise important to ask
"What is/are being globalized?" Depending on what is being globalized , the vista and
conclusions change.
The lessons in the next modules will reflect the multidimensional understanding of
globalization. Each of the lessons will focus on a particular kind of globalization. Every
one of them will be about different networks and connections that are expanding and
intensifying in the contemporary world.
Treat each lesson not as an end in itself but as window to the broader phenomenon of
globalization.

2.1 A History of Global Politics


In this lesson, you will learn the historical background of global politics. I'm sure
you are excited to have a glimpse of global politics that leads to the creation of
international order. Relax and enjoy the lesson!
The world is composed of many countries or states, all of them having different
forms of government. Some scholars of politics are interested in individual states and
examine the international politics of these countries. For example, a scholar is studying
politics of Japan may write about the history of its bureaucracy. Other scholars are more
interested in the interactions between states rather than their internal politics. These
scholars look at trade between deals between states. They also study political, military
and other diplomatic engagements between two or more countries. These scholars are
studying international relations. Moreover when they explore the deepening of
interactions between states, they refer to the phenomenon of internationalization.
How does internationalization differ from globalization of politics?
Internationalization refers to the deepening of interactions between states. Globalization
of politics refers to the multiple interactions or relations between states.
According to Claudio et al. (2018, p. 27), there are four attributes of today's global
system.

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.

How did global system originate?

1. Village/Tribe- people in various regions of the world were identified according to


respective units.
2. Christian world - started by apostles of Jesus Christ until Christianity became a state
religion.
3. Nation-State - refers to state governing a nation.

What is the difference between nation and state?


State refers to a country and its government. It has four attributes: 1) It exercises
authority over a specific population (citizens). 2) It governs a specific territory 3) It has a
structure of government 4) It has sovereignty over its territory.
Nation is defined as an "imagined community" or group of people who shared a
common culture, language, history etc. (Benedict Anderson)
The Interstate System
The origins of the present-day concept of sovereignty can be traced back to the
Treaty of Westphalia, which was a set of agreements signed in 1648 to end the Thirty
Years' War between the major continental powers of Europe. After the brutal religious
war between Catholics and Protestants, the Holy Roman Empire, Spain, France,
Sweden, and the Dutch Republic designed a system that would avert wars in the future
by recognizing that the treaty signers exercise complete control over their domestic
affairs and swear not to meddle in each other's affairs.

1. Westphalian system - a system that gives stability to European nations through


direct control of their domestic activities - free from interference of other nations.
2. Napoleonic Code - a principle that spread "liberty", "equality" and "fraternity" as
themes for creation of new form of government in France.
3. Metternich system- an alliance of "great powers" - United Kingdoms, Austria, and
Prussia that restored monarchical, hereditary, and religious privileges of rulers.

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.

PreviousNext

2.2 The Roles and Functions of the


United Nations

What is an International Organization?


When scholars refer to the groups like the UN or institutions like the IMF and the
World Bank, they usually call them international organization. International Organization
(IO) refers to international intergovernmental organization or groups that are primarily
made up of member-states. International relations scholars Michael N. Barnett and
Martha Finnemore listed the following powers of IOs.

1. IOs have the power of classification.


2. IOs have the power to fix meanings.
3. IOs have the power to diffuse norms.

The United Nations


After the collapse of the League of Nations at the end of World War II, countries
that worried about another global war began to push for the formation of a more lasting
international league. The result was the creation of the United Nations on October
24,1945. 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. And because of
this reason the United Nations should be considered as a success.
Five active Organs of the United Nations:
1. General Assembly (GA)
2. Security Council (SC)
3. Economic and Social Council (ECOSOC)
4. International Court of Justice (ICJ)
5. Secretariat -UN Admin
The General Assembly (GA) is the United Nations' main deliberative policy
making and representative organ. According to the its charter, the 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 a 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 a Filipino diplomat named Carlos P.
Romulo was elected GA President from 1949-1950.
Although the GA is the most representative organization in the United
Nations, many commentators consider the U.N. Security Council (SC) as the most
powerful. According to the U.N., this body consists of 15 member states. the G.A.
elects ten of these 15 to two-year terms.
The Five Permanent Members of the U.N. Security Council are -
1. The United States of America
2. China
3. Russia
4. France
5. The United Kingdom
The above-mentioned states are permanent members since the founding of the
United Nations 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 discussion on sustainable
development.
The fourth is the International Court of Justice whose 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.
Finally, the secretariat consists of the "Secretary-General and tens of thousands of
international UN staff who carry out the day-to-day work of the UN as mandated by the
General Assembly and the organization's other principal organs."

Challenges of the United Nations


The United Nations is not a world government and it functions primarily
because of voluntary cooperation from states. If states refuse to cooperate, the
influence of the UN can be severely circumscribed. Perhaps, the biggest challenge of
the United Nations is related to the issues of security.
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
1990s when the United States sought to intervene in the Kosovo war.

On September 2005, the Philippines was part of the powerful U.N


Security council as one of the 10 non-permanent members. The Philippines served as
the chair/head of the UN Security Council. In the file photo, then Philippine President
Gloria Arroyo was presiding the UN Security Council meeting - one of the shining
moments in our nation's history.

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.

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