THE CONTEMPORARY WORLD

STRUCTURES OF GLOBALIZATION
Lesson 3 "The Global Economy"
DEFINITION OF TERMS
Economic Globalization. the global market driven by modern technologies and institutional
set ups that promote faster and easier flow of goods and capital.
Global Economy. denotes that the economies of various countries are more interconnected
from extraction, production, distribution, consumption to disposal of goods and service.
International Financial Institution. are global financial institution that support a country's
economic growth
International Monetary Fund. is an international organizations with 183 member countries
that promotes or provide short-term financial assistance to countries to help ease balance of
payments adjustments.
Global civil society. is a system of non government institution that operate across
geographical borders.
World System. is based on the theory of Wallerstein 1979 that recognizes that social and
economic change is not only endogenous to a country, but is affected by its interaction to
exogenous institution.
Economic Integration. is a process of combining or increasing the interconnectivity of
national economics to the regional or global economies.
Global civil society. is a system of non government institution that operate across
geographical borders.
World System. is based on the theory of Wallerstein 1979 that recognizes that social and
economic change is not only endogenous to a country, but is affected by its interaction to
exogenous institution.
Economic Integration. is a process of combining or increasing the interconnectivity of
national economics to the regional or global economies.
DEFINITION OF ECONOMIC GLOBALIZATION
Most of the definition of globalization centers its economic dimensions. Economic
Globalization is driven by the "growing scale of cross-border trade of commodities and
services". Critical to economic globalization is global economic integration. Economic
integration means that the separate production operations are functionally related to each
other and form a unified products or services.
The various definitions of the economic globalization focus on increasing economic trade
interrelations among countries. Also, economic globalization entails global industrial
restructuring and readjustments where developed countries play a dominant role.
Who are the Actors that Facilitate Economic Globalization?
Globalization has opened the doors for other non-state authority and actors in driving
economic globalization.
 Non-state actors include:
 international economic organization
 private sector led by multinational companies
 central banks; and
 civil society

International Economic Organization- they are the organizations such as the International
Monetary Fund (IMF), World Bank, and the Organization for Economic Cooperation and
Development (OECD). These Organizations are critical in developing and pushing for
neoliberal policies among different countries.
Multinational Companies (MNCs)- are considered to be the main carriers of economic
globalization. MNCs started to emerge during World War II when US industrial production
increased by 44 percent.
Central Bank- They are considered as one of the most powerful institution in the world
economy since they can lead eonomic development.
Global Civil Society- a major driver of economic globalization. Global civil society see as
either composed of individuals or groups of individuals disadvantaged by the effects of the
globalization of the world economy, they protest and seek alternatives while on the other
hand, global social movement constituting a basis for an alternatives to a new world.
What is the Modern World System?
For Wallerstein, a world system constitutes a social system composed of boundaries,
structures, member groups, rules of legitimation, and coherence. World economy according to
Wallerstein (2011), is divided into core states and peripheral areas including semi peripherals.
LESSON 4:
The Global Interstate System
DEFINITION OF TERMS
Global Interstate System- is an institutional arrangement of governance that address regional
or globalized issues that go beyond the scope of nation-state.
Internationalism- puts emphasis on diversity and celebrate multiculturalism while globalism
focuses more on the economic aspect of the exchange among countries and society.
INTRODUCTION
In a global society, we observed a greater flow of capitals, goods, services, and people. This is
supported by developments and modernization of transport, communication, and financial
services in the world. However with this, the traditional states system is now becoming
limited to address globalizing issues and patterns.
In this capter, we will further unpack how globalization affects national government and
countries. We will identify the global institution that govern international relations. And
lastly, we will differentiate internationalism from globalism.
What is Interstate System?
"System unequally powerful and competing states in which no single states is capable of
imposing composing in all others. These state are in interaction with one another in a set of
shifting alliance and wars and changes in relative power of states upsets any temporary set of
alliances leading to a restructuring of the balance of power."
Effects of Globalization on Governments
As the world becomes more interconnected through politics, trade, and communications, the
role of nation-state and government are also shifting. Thus, national and local policies are not
only based on local context but also international and global realities.
One of the global treaty is the Montreal Protocol on substances that deplete the ozone layer
which aims to phase out the production of numerous substances responsible for ozone
depletion, signed in August 26, 1987 with 46 country signatories (US EPA, 2017).
However, there is another side of globalization that negatively effects local government and
local communities. A local governments would like to attract major global investors in their
community by setting up for instance their manufacturing firm in the area. This could create
jobs for the local people and generate income for local businesses but it entails converting
tracks of agricultural land into an industrial zone.
INSTITUTIONS THAT GOVERN GLOBALIZATION
There are several instiutions that govern international relations and affairs, first and foremost
is the
(1). United Nations with 192 members states, it seems as the facilitator of global governance.
Another is (2). Regional Commission, which are group of official from different countries
that instruct and debate, and are in chargge of making certain laws that promulgate certain
rights for economic and social development, for example are the:
• Economic Commision for Africa (ECA)
• Economic Commision for Europe (ECE)
• Economic Commision for Latin American and the Caribbean (ESLAC)

(3). The World Bank (WB), is an international financial institution that provides loans to
countries of the world for capital projects established during the Bretton Wood Conference in
1994 and include other members like the IRDB, IDA, IFC, MIGA. These are institutions
provide loans to middle income countries and even private sectors in developing countries to
create market and improve local economies.

Some other examples are listed below:

International Organization Key Roles Source/Websites

International Monetary Fund looks at the stability of the www.imf.org

(IMF) international monetary
system by monitoring global
economy.

Word Trade Organization regulates international trades, www.wto.com

(WTO) ensures smooth flow of
trades

World Health Organization esponsible for global www.who.com

(WHO) researches on medicine and
vaccines

Globalism Vs. Internationalism

These two terms are commonly used in interchangeably and pertain to the increasing
interconnectivity of countries and people of the world through communication, transport, and
technology. However, there are difference between internationalism and globalism.
Internationalism is a defined political, economic, and cultural cooperation between nations
while Globalism is and ideology based on the belief that flow of people, goods, and
information should flow freely across national borders.

Sargent (2008) argues that internationalism emphasizes diversity and celebrates

multiculturalism while globalism focuses more on the economic aspect of the exchange
aming countries and society

LESSON 5:
Market Integration
DEFINITION OF TERMS
Market Integration- is a process by which economies are becoming more interdependence and
interconnected in terms of commodity flows.
International Financial Institution (IFIs)- are institution that provide support throigh loan or or
grants and technical advices to promote a country's economic and social development.
Corporations- are private institution that produce or manufacture goods, products, and
services for a more expanded market.

INTRODUCTION
Look at the common products sold in your local grocery stores. Where they manufactured or
made? Who marketed or distributed the product? Where do the companies source their raw
materials? Most of the products sold in the market are either sourced from one country, or
imported and manufactured in another and distributed worldwide.
Check out the proliferation of call centers and Business Processing Outsourcing (BPO)
companies in the Philippines. Most of these companies cater to to international consumers
based in US, Australia, New Zealand, and Europe.

The International Financial Institutions (IFIs) and their Role in the Global Economy
International Financial Institutions or IFIs are institutions thay provide support through loans
or grants and technical advices to promote a country's economic and social development.
Globak and Regional IFIs include International Monetary Fund(IMF) and Multilateral
Development Banks (MDBs) like World Bank Group, the African Development Bank (ADB)
etc.
IFIs provide technical services and products not for profit but foroverall economic and social
development, also it provides loans, technical assistance, and policy-based lending.

A Summarized History of Global Economy

The modern capitalist world economy flourished between the 16th to 18th centuries. The start
of the modern globaleading to 1914 was cosidered the first period of globalization. It is when
trade, capitak, and immigration flows grew tremendously and in large volume, but the global
institutional architecture to manage these were quiet limited. International convention and
treaties also served as drivers for these large-scale global movements such as the International
Telegram Union 1865.

From the second World War to the 1990s, the modern international economic enabling
architecture was established. In addition, we see the expansion of MNCs across the globe
supported by enabling policies and improved communications and transport.
From the late 1990s until very recently, Bhavarga(2006) contends and characterizes the third
wave of market integration. We see the advent of the modern internet, the WTO
Establishment, and formal entry of china into the trading system through its accession to
international financial institution.
The Global Corporations
Aside from IFIs and governments, one of the major players in globalization and the modern
capitalist market is the "global corporations". The number of globak corporations from
emerging market economies listed in the fortune global 500 rose from 47 firms in 2005 to 95
in 2010.
The modern global corporations are commonly referred to as multinational corporations and
transitional corporations. More often they are used interchangeably.
Iwan (2007) offers categorization to distinguish an MNC from a TNC. He argues that both
types are importers and exporters and have inventions in many countries. He further contends
that MNCs still provide central decisions compared to TNCs that provide individual foreign
market investments to have their own operation and system (Iwan 2007).

LESSON 6:
Contemporary Global Governance
Definition of Terms
Global Governance- collective efforts to identify, understand and addresses worldwide
problems that go beyond the problem-solving capacities of states.

INTRODUCTION
Global Governance- is the capacity within the intervention system, at any given moment to
provide government like services and public goods in the absence of a world government. It is
a combination of informal and formal ideas, values, rules, norms, procedures, practices,
policies, and organizations that help actors, states, IGOs, civil society and NGOs, TOCs, and
individuals– identify, understand, address transboundry problem.
Global governance is a set of questions that enable us to work out of how the world is, was,
and coyld be governed and how changes in grand and not-so-grand pattern of governance
occured, are occuring, and ought to occur.

The Uncertainty of the Sovereignty Territorial State or Non-State

Since the end of the Cold War, the world is heading toward a less centralized form of
governance. As the United States is facing serious setbacks in the wara in Iraq and
Afghanistan, many emerging power such as China, Russia, and Brazil have formed regional
alliances to create a multipolar and anti-hegomic order. This development is being referred to
as the beginning of "the post-amerifan world" in which the United States retreats and the rest
of the world advances in economic power and political influence.

This is in stark contrast to the kind of political entity which determined our lives: the
sovereign territorial state or "non-state". In fact, most western countries have lived under this
kind of state has become the universal framework of social development.
As a review, the notion of "nation-state" has the following elements:
a. Continuos and broken territory
b. Sovereign territory
c. The state has the monopoly both of law and powers of coercion
d. The national state rules its citizens or subjects directly and not through intermediates
authorities.
e. Direct government and administration of inhabitants by the central authorities of the
"nation state"
f. The state is considered to represent the people and the people serve as a source of
sovereignty or at least give the state legitimacy.
g. The citizenry was or ought to form a homogenous population.

The Rise of Non-State Actors

A huge rise of non-state actors resulted from the occurrence above- mentioned. These
international organizations in the public and private sectors are set with higher objectives and
goals to participate in global governance and improving lives. This rise also created a new
landscape and new architectures of global governance wherein multi-sector partnerships are
present, such as transnational businesses. Further, the loose structures of these organizations
allow more efficient courses of action than the bureaucracies of nations or states can attain.

The growth of non-state actors has meant more diversity in potential players and partners. The
proliferation of actors that are legitimately representing stakeholders and contributing
concretely to contemporary global problem-solving means that we have come a long way
from the state-centric model of traditional age of globalpartnerships between private and
public bodies on specific issues.

The United Nation

One important example of a non-state actor, an international government organization (IGO)
playing a vital role in the world's affairs, is the United Nations (UN). The United Nations is
an IGO designed to make the enforcement of international law, security, human rights,
economic development, and social progress easier for countries around the world.

The UN today is divided into five branches:

1. The UN General Assembly - is the main decision-making and representative assembly and
is responsible for upholding the principles of the UN through its policies and
recommendations. It is composed of all member states and headed by a president elected by
the member states.
2. The UN Security Council - can authorize the deployment of UN member states' militaries,
can mandate a cease-fire during conflicts, and can enforce penalties on countries if they do
not comply with given mandates. It is composed of five permanent members and 10 rotating
members.
3. International Court of Justice- can settle, according to international law, legal disputes
between States and give opinions, mostly advisory, on legal questions brought to it by UN
organs and agencies
4. The Economic and Social Council- assists the UN General Assembly in promoting
economic and social development, as well as cooperation of member states
5. The Secretariat- headed by the Secretary General, provides studies, information, and other
dates when needed by other UN branches for their meetings