The Contemporary World 2 REASON WHY COUNTRIES OPEN THEIR

CHAPTER 1 ECONOMIES
GLOBALIZATION 1. Financial returns of expanding markets offer new
• The continuous evolution and unstable global order economic opportunities to the capitalist
• Multinational corporation (MNC) – provides
• Social process of reshaping and remaking the world additional profit and income to countries
order where investments originated.
• Spread of worldwide practices, relations • Realists see economic alliance and
consciousness, and organization of social life cooperation as a medium of flourishing
• A phenomenon gave rise to the interconnectedness activities under favorable security conditions;
of human society that replaced the sovereign state partnership
system with a multilateral system of global 2. The continued centrality of political power and
governance (Justin Rosenberg) military strength are obvious forces of
• Refers to a multidimensional set of processes that interdependence and realistic behavior of the more
create, multiply, stretch, and intensity worldwide and most powerful countries.
social interdependencies and exchanges while at the LIBERALISM
same time fostering in people a growing awareness • Perspective in international relations where actors
of deepening connections between local and the and institutions emphasize relationship and
distant (Held and McGrew) negotiations.
GLOBALIZATION OR WESTERNIZATION? • Countries with democratic governance
• The idea of Westernization is deeply rooted in the LIBERAL ACCOUNTS DESCRIBE THE
Western world where is often associated with the TRANSFORMATION OF POLITICAL-ECONOMIC
Western culture and values STRUCTURE AND THE DEVELOPMENT OF GLOBAL
INTERCONNECTEDNESS IN TERMS OF THE FF:
• This concept is famously used in referring to the 1. Spread of Democracy and Institutions
Western value system as it influences countries • Not using harm threat to intimidate and
outside its territory and sovereignty
harm other nations.
• The world wide web (www) • Rule of law; self-respect and social stability
QUALITIES AND CHRACTERISTICS OF • Transparency – measurement in sustaining
GLOBALIZATION international cooperation and global
1. Creation and multiplication of social network and understanding.
cultural activities thus, breaking the traditional norms • A country with weak political institution is
and practices in political, economic, cultural realms more likely to experience social and civil
of most communities. unrest.
2. Expansion and stretching of social operations and 2. Global Economic Ties
connections. This is reflected on how the financial
• Liberals share common currency in
markets and trading operate around the globe.
explaining globalization within the scope of
3. Intensification and acceleration of human economic acceleration.
activities. It describes how the process of world and
• They see economic ties and corporations
individual connection works.
such as market integration and economic
4. Consciousness and awareness – people, as the
alliances.
primary actors of globalization are the frontliners as
reflected in their experience. • Core belief: economic alliance and
CHAPTER 2 integrating the domestic economy into
REALISM regional or economic bloc will deliver
prosperity and security.
• Focusses in the shifting distribution of power among
3. International Organizations
states.
• Liberals believe that the formation of
• In the global context, there is also an issue of who
leading regional and international
wields power among sovereign States; the core idea
organizations like global commerce and
of dominating the world is through the employment of
governance are main instruments in the
power.
maintenance of peace and solidarity.
• It affirms the idea that there is a shifting distribution
• Following the international norms set by
of power among States;
international bodies; emphasizing the
importance of international institutions.
IDEALISM • The significant increase in communication and
• Guided by ethical and legal standards. transportation; telegraph, telephone, radio, etc.
• Core belief: centrality of ideas and beliefs, emotions, • The development of International competitions.
and collective values that shape the political and Second phase (1800 – 1950)
economic landscape of the world. • World war II
• Value the importance of “appropriateness” and • Formation of market integrations and the
“Transparency” in reshaping and framing rules institutionalizations of major economic activities in
THE ROLES OF IDEAS AND TECHNOLOGY IN the global market.
GLOBALIZATION • The effect of Cold War and the rise of the Third
• IDEAS – are non-material entities of culture World in international arena.
➢ Idealist always emphasize the significance of • The increased attention to humanitarian works and
ideas over material realities in realities of the development aid.
world. • The introduction of global icons and American
➢ Realist claim that ideas matter and reality must consumerism.
be accepted. Third phase (1950 – 2000)
• KNOWLEDGE AND TECNOLOGY – they are • Influence of technology and internet; information age
significant determinants of wealth and power. • As part of modernity and the strong influences of
• Innovations as a product of technological individuals to dictate the operation of global economy.
development has rendered national borders • Invention of first communication satellite
irrelevant in international system. • The increasing power and influences of international
2 IMPORTANT INSTITUTIONS financial institutions; WB and IMF.
1. Political institutions • The rapid rise of the US and the expansion of
2. Economic institutions investments and multinational firms from the western
INSTITUTIONS world.
• consist norms, set of activities, regulative structures • The end of cold war and the formation of a new world
that provide meaning and stability to the social system and global order.
behavior of a group. • The relative increase of social movements and global
• A symbolic manifestation on the needs of society. civil society as well as transnational nongovernmental
(Meyer and Rowan) organizations.
• Institutions will not be recognized as institution if it • The introduction of world wide web
does not shape the behavior of individuals. • The increasing incidence of transnational crimes and
(Giddens) the growing role of migration in globalization.
INTERANTIONAL INSTITUTIONS
• The rise of global attention given to environmental
• Are classified as intergovernmental organizations concerns; global warming.
that are formed by national governments. THREE DIMENSIONS OF GLOBALIZATION (Anthony
• These are international formal org that sets rules Giddens)
with the purpose of regulating the flow of 1. World Capitalist – as the primary force of globalization.
communication and movement of resources. Capitalist states are the main engines of global
CHAPTER 3 production and distribution of goods and services.
GLOBALIZATION IN HISTORICAL PERSPECTIVE 2. Nation State system – The concept of sovereignty in a
(Thomas Friedman, Holton, Sholte, Lawson) globalized world is understood as the best form of
First phase (1492-1800) asserting the and operation of a state in order to be
• Period of mercantilism and the immediate rise of recognized.
British economy during the age of industrialization; 3. World military – most states in the world have shifted its
steam engine, printing press, railway system. focus in strengthening the military capability.
• The development of international networks and COLD WAR
regimes like the 1840 Anti-slavery Convention. • “First world”, “Second world”, “Third world”
• The beginning of international fairs such as the • This period of bloodless conflict lasted 45 years
London World Fair of 1851. between US and Soviet Union.
• The establishment of the International Committee of • The conflict was caused by the aggressive behavior
the Red Cross in 1863 (ICRC). and domestic policies of Soviet Union prompting other
• The increasing formalization of International countries esp. the US.
relations through agreements and treaties of some • “Russia on the march” – Henry Kissinger
countries in Europe and the birth and formation of • The cold war was a result of the United States
new states. economic system of expansionist-capitalism.
• The war was a consequence of security response from
the two countries on the power vacuum and threat of
central Europe.
• US won through arms race and deterrence that
bankrupted Soviet Union.
First World
• Powerful economies and having stable governments,
robust financial markets, advanced and modern
infrastructure, low poverty rates, and high standard of
living; US, Canada, Australia, Japan, Singapore, etc.
• The wealth and economic stability of a first world
country could be used in influencing the economic
operations as well as influencing key decisions in
international arena like UN and WTO.
Second World
• Soviet Union, China and allies were parts of the second
world during cold war.
• This idea of world order is associated with the role of
political and military power during cold war.
• The communist countries of the second world are found
to be trapped between poverty and prosperity.
Third World
• Neutral and non-aligned countries
• The use of this category of world order is less
appealing now because scholars prefer to describe
countries as less developed and developing economy
or global south as part of political and economic
condition of the world.
• Third world has challenges in political spectrum of
institutional-building; these includes human rights,
freedom and democracy, dictatorship and repressive
regime.
• The third world is having governments that demand and
receive aid from the first world.
CHAPTER 4