CHAPTER 1: NATURE OF GLOBALIZATION

Manfred Steger – Globalization “the expansion and intensification of social relations and consciousness across world-time and across
world-space”
Expansion - the creation of new social networks and the multiplication of existing connections that cut across traditional political,
economic, cultural, and geographic boundaries
Intensification - “the expansion, stretching, and acceleration of these networks”
Global Village – ( the world is reduced to global village) term used as a result of globalization where time and space seem to become
increasingly irrelevant
Marshal McLuhan (1962) – conditions which many of them imagine themselves as part of one world-global imaginary
Fidel V. Ramos - 8th president of the Philippines. Envisioned Filipinos to be self-reliant and globally competitive by fostering ties with
neighbouring foreign economies, and by exploring other avenues for expanding international trade and investments
- dismantled the monopolies in the communications and transportation networks, privatized basic utility providers and liberalized
trade.
Trade liberalization – paved the way for multinational corporations (MNCs) and transnational corporations (TNCs) to become major
players in most states’ local economy
Regional blocks – formed so that member-state could address political, economic, and social issues together.
ASEAN Association of Southeast Asian Nations – established August 08, 1967 in Bangkok. Bankok Declaration.
- Five original member countries: Thailand, Indonesia, Malaysia, Philippines, Singapore
- Other Asean countries: Brunei (01/08/84), Vietnam (07/28/95), Cambodia (09/30/99), Laos (07/23/97), Myanmar (07/23/97)
- Asean aims and purposes of the association: 1. To accelerate the economic growth, social progress and cultural
development in the region
Treaty of Amity and Cooperation (TAC) – the TAC was signed at the first ASEAN Summit on February 24, 1976 declaring relations
with one another
- mutual respect for the independence, sovereignty, equality, territorial integrity, and national identity of all nations. – right
of every state to lead its nation and be free from external interference
Free Trade Agreement (FTAs) – remove trade barriers such as tariffs and import quotas among member-states
Three (3) major international economic organization – World bank, International monetary Fund (IMF), World Trade Organization
(WTO)
World Trade Organization – emerged out of the General Agreement on Tariffs and Trade (GATT) in 1995 – serves as a form for
negotiations on trading rules as well as a mechanism from dispute settlement in trade issues.
Globalism – 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
Technology is shrinking the world of the present generation of the world’s citizens.
Cultural Imperialism – the imposition by one usually politically or economically dominant community of various aspects of its own
culture onto another, non-dominant community

CHAPTER 2 THE GLOBAL ECONOMY

Economic Globalization – Increasing integration of economies around the world through the movement of goods, services and
capital across borders.
Waves If Economic Globalization
Early Wave : Silk road – lasted 2000 years. Vast trade connecting by land and sea from Asia to the far end of Europe (war fare
products), Middle East & Africa. Goods were silk, ceramics, textile, compasses, spices, gun powder from India and China.

Age of exploration – 15th to 17th century. Sea routes. Europeans travel around the world to search for trading routes and new lands
to colonize
Galleon trade – Connects Manila, Philippines and Acapulo, Mexico.Monopolized by Spaniards.
Gold Standard – US and other European nations have adopted at an International monetary conference in Paris. Countries
established a common basis for currency prices and a fixed exchange rate system – all based on the value of gold.
Keynesian Liberal Wave: Bretton Woods Conference – leaders from diff. states assemble in US to create a global economic system
that ensure a longer-lasting global peace. – Set up a network of global financial institutions that promotes economic
interdependence and prosperity.

Bretton Woods System – Inaugurated in 1994 @ United Nations Monetary and Financial Conference to prevent the catastrophes of
the early decades of the century from reoccurring and affecting international ties.
- influenced by the ideas of British economist John Maynard Keynes – Father of Macroeconomics. 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.
Keynesianism - active role of governments in managing spending served as the anchor
The Great Depression (1929-1930) – motivated political and financial leaders to set the institutional foundations for the
establishment of three international economic organizations: World Bank, International Monetary Fund (IMF), World Trade
Organization (former GATT)

Delegates of Bretton woods agreed to create financial institution:

1. International Bank for Reconstruction and Development (IBRD or World Bank) – funding postwar reconstruction projects
 - Designed for the Marshall Plan [ George C. Marshall (originated in US)] to extend financial loans to reconstruct the devastated
economies in Europe. Start of Cold War between US and EU
2. International Monetary Fund (IMF) functions as a global lender of last resort to prevent individual countries from spiralling
into credit crises.
3. General Agreement on Trade and Tariffs (GATT) main purpose was to reduce tariffs and other hindrances to free trade, then
it was replaced by the World Trade Organization after 50 years

Bretton Woods Goals and Strategies:

1. Macroeconomic Stability - maintain macroeconomic stability, the US dollar was the only international standard currency of
choice peg at $35 per ounce of gold.
President Richard Milhous Nixon of U.S. – announced on August 15, 1971 to abandon the gold-exchange standard
2. Import Substitution - Domestic industries were built in the 50s and 60s to replace imported products and promote domestic
industrial development and eventually achieve industrialization. Countries that adopted a combination of import substitution
industrialization and export promotion perform better than those who did not.
Four Asian Tiger – aggressively build local industries & increasingly promoted exports. Hong Kong, Singapore, South Korea,
and Taiwan
Tiger Cub Economies – developing countries [Malaysia, Philippines, Thailand, Vietnam]
3. Governance Reform – IMF extended loans to poor countries which often comes with conditions.
Another reform instituted by IMF is to foster good governance through eradicating corruption.
Crony capitalism – term describing an economy in which success in business depends on close relationships between business
people and government officials. Rampant among developing countries.

Neo-liberal Wave : Organization of Arab Petroleum Exporting Countries (OAPEC) imposed “oil embargo” in response to the decision
of US and other countries to resupply Israeli military with the needed arms during the Yom Kippur War.

- Arab countries used embargo to stabilize their economies and growth. – Affected western economies & stock markets crashed
in 1973 – 1974 after US stop linking dollar to gold
- End of Bretton Woods System

Stagflation – phenomenon, a decline in economic growth and employment (stagnation), and a sharp increase in prices (inflation)
Neoliberalism – emerged and became the codified strategy of the United Nations Treasury Department, the World Bank, IMF, and
WTO.The policies they forwarded came to be called the
Washington Consensus – pressured governments, particularly in the developing world, to reduce tariffs and open up their
economies, arguing that it is the quickest way to progress

- Advocates pushed 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 results.

The Global Financial Crisis and the Challenge to Neoliberalism

- promotion of a free market caused government authorities to fail in regulating bad investments occurring in the US housing
market
- to mitigate, banks that were lending house owner’s money pooled these mortgage payments and sold them as “mortgage-
backed securities” (MBSs)
- the high-risk mortgage known as sub-prime mortgage
- in 2007, home prices stopped increasing as supply caught demand
- Lehman Brothers, major investment bank collapsed in 2008
- US recovered relatively quickly thanks to a large Keynesian-style stimulus package that President Barack Obama pushed for in
his first month of office

Perspectives on Economic Globalization

Hegemonic Stability Theory (HST) – indicates that the international system is more likely to remain stable when a single nation-state
is the dominant world power, or hegemon.
Hegemony – a state’s ability to single-handedly dominate the rules and arrangements of international political and economic ties
Neo-liberal Institutionalist Theory – explains that international institutions, such as the IMF, World Bank, and the GATT, have an
independent impact on global economy. Governing arrangements called regimes.

Robert Keohane, argued the endurance of international cooperation in the absence of hegemon

Economic Globalization Today : large Asian Economies like Japan, China, Korea, Hong Kong, and Singapore
Economic globalization remains an uneven process

1. Developed countries are often protectionists

2. The beneficiaries of global commerce have been mainly transnational corporations (TNCs) not government

Chapter 3: Market Globalism and Integration

Market globalism is a hegemonic system of ideas that makes normative claims about a set of social processes called globalization.
“Creation of a global free market and the spread of consumerist values around the globe”

THE FIVE CORE CLAIMS OF MARKET GLOBALISM

1. Globalization is about the liberalization and global integration of markets.

 the inevitability of the spread of the ideals of free trade and free enterprise to as many states and nations across the
globe.
 governments’ “hands off” attitude towards the interest of large transnational and multi-national corporation
Tax holiday is a government incentive program that offers a tax reduction or elimination to businesses.

2. Globalization is inevitable and irreversible

 Globalization is a product of the ever increasing innovativeness of human spirit.
 the products of globalization are, more often than not, employed as means to address problems that have
confronted humanity as a whole.
3. Nobody is in charge of globalization.
 This based on the classical concept of “self-regulating” market
corporate social responsibility - Even if no one is technically in charge in globalization, the players should be responsible for
its effects since those who are affected are human beings who are the recipients of the good and bad effects of this process

4. Globalization benefits everyone in the long run

 Brought improvement on the things that people use on the way they live
 Led to economic growth and progress to the non-affluent nations providing them an opportunity to experience its
benefits
5. Globalization furthers the spread of democracy in the world.
Neoliberals generate support for the equation of democracy and the market is discrediting traditionalism and socialism
Generalist regards freedom, free markets, and democracy as one and the same terms

“Market globalism” used to define the imperial activities of the industrialized countries
Terrorism posed a serious threat to globalization after the September 11th attacks 9/11 Attacks
Al-Qaeda – the base. Founded by Osama Bin laden. Caleb Mohamed – Chief Implementer
th
6 Claim of Globalization – You need a war on terror to market globalization’s discursive arsenal.
McDonaldization/ Americanization by George Ritzer is a global phenomenon, driven by Western corporations, the economic power
and cultural dominance of the West, and as such it leads to a global homogenization of economic and social life
Global Corporation

1. International Companies – import/export without investment to other country

2. Multinational companies – have investment but do not have coordinated product offerings in each country. Depends on the
demand and supply of the global market
3. Global companies – have invested in and are present in many countries. Not dependent on the demands of the local market
4. Transnational Companies – have a central corporate facility but give decision making, research and development and marketing
powers to each individual foreign markets.Not dep. on central branch
Three Fundamental Innovations
 The advent and impact of digitalization in instantaneous global communication
 The structural transformation of commerce from producer driver commodity chain to buyer-driven.
o commodity chain refers to the whole range of activities involved in the design, production, and marketing of a
product
o producer-driven commodity chains are those in which large, usually transnational, manufacturers play the central
roles in coordinating production networks.
 The increasing role performed through the global system by financial elements and emergence of the global financial firm

CHAPTER 4 : THE GLOBAL INTERSTATE SYSTEM

Attributes of Today’s Global System
1. There are countries or states that are independent and govern themselves.
2. These countries interact with each other through diplomacy.
3. There are international organizations, like the United Nations (UN), that facilitate these interactions.
4. Beyond simply facilitating meetings between states, international organizations also take on lives of their own. The UN, for example, apart from being a meeting
ground for presidents and other heads of state, also has task-specific agencies like the World Health Organization (WHO) and the International Labor Organization
(ILO)
Nation- State
- Refers to a country and its government
- Fuses principles of National Sovereignty and State sovereignty
- Not all states are nations and not all nations are state
State – a political unit that has sovereignty over an area of territory and the people within it.
Elements of a State
 A. Population – A state is a community of persons. Citizens shall enjoy rights and freedom and perform their duties towards the
state. Shall be no limit of the population size.
B. Territory – a territorial unit is fixed. The whole territory of the state is under the sovereignty or supreme power of the state.
State can be lease out its territory
C. Government – an organization or agency of the state which makes, implements, enforces, adjudicates the laws of the states.
Government has 3 organs or branches
1. Legislature
2. Executive
3. Judiciary
D. Sovereignty – Most exclusive element of the state. Without it, no state can exist. Has the exclusive and prerogative to
exercise supreme power over all its people and territory. Freedom to govern their own state.

Nation – An imagined community. Cultural organization. Speaks the same language, and live in a specific territory.
Most nations strive to become states
 single nations with multiple states – different head of the government. Ex. Korea, China
 states with multiple nations – one government, one flag and culture. Ex. United Kingdom

The Interstate System

Treaty of Westphalia – Origin of the concepts of sovereignty. set of agreements in 1648 end the Thirty Year’s War between major
continental powers of Europe
Principles of the French Revolution: Liberty, Equality, and Fraternity
Napoleonic Code – freedom of religion and meritocracy
Battle of the Waterloo – Napoleons-‘s defeat ended his mission to spread the liberal code across Europe
Concert of Europe - alliance of “great powers” –the United Kingdom, Austria, Russia, and Prussia
Metternich system or Congress system – series of meetings called among the great powers of Europe to discuss problems and
attempt to resolve issues without violence. Klemens von Metternich
Internationalism - a system of heightened interaction between various sovereign states
Can be divided into two broad categories:
Liberal Internationalism

1. Immanuel Kant (German Philosopher) – Global Government. major thinker. “establish a continuously growing state
consisting of various nations which will ultimately include the nations of the world.”
2. Jeremy Bentham (English Philosopher) – International Law . govern the interstate relations
3. Giuseppe Mazzini (Italian Politician) – Republican Government (without kings, queens, and hereditary succession) free,
independent states would be the basis of an equally free, cooperative international system
4. Thomas Woodrow Wilson (United states president) Principle of self-determination - world's nations had a right to a free,
and sovereign government. Advocate of the League of Nation. – Unable to hinder the breaking out of the war and its
intensification
- US was not able to join the organization due to strong opposition from the Senate.
Allied Powers – United States, United Kingdom, France, Holland, and Belgium
Axis Powers – Germany, Italy, Japan
- Despite the dissolution of the League of Nations, it gave birth to task-specific organizations:
World Health Organization (WHO), International Labor Organization (ILO)
- United Nations was a creation and re-assertion of the ideas of Kant, Mazzini and Woodrow

Socialist Internationalism

1. Karl Heinrich Marx (German Socialist Philosopher) he did not believe in nationalism. Economic equality. Divide the world
into classes: Capitalist Class - the owners of factories, companies, and other means of production.
Proletariat Class- Laborers, workers. Those who work for capitalist.
2. Friedrich Engels (German Philosopher) . Socialist Revolution. Opposed nationalism because they believed it prevented the
unification of the world's workers.
The Communist Manifesto – Co-author with Marx
Socialist International (SI)
- International organization of Marx followers.
- union of European socialist and labor parties established in Paris in 1889
- SI’s achievement: 1)declaration of May 1 as Labor day,2) International Women’s Day,3) 8-hour workday
- Vlademir Lenin, leader of the Bolshevik Party overthrown Czar Nicholas II, replaced with revolutionary government
- new state was called the Union of Soviet Socialist Republics or the USSR
- Lenin established the Communist International (Comintern) in 1919 which serve as the central body for directing
Communist Parties
3. Joseph Vissarionovich Stalin. Lenin’s successor, dissolved the Comintern in 1943.
- Stalin re-established the Comintern as the Communist Information Bureau (Cominform).