Kinasang-an

The
Contemporary
WorLd
 GE 319 – THE CONTEMPORARY WORLD

Welcome Message
Welcome to GE 319 - The Contemporary World

It has been more than four (4) years when the

Philippine education system set off on a track
that would require it to undergo major
transformation. It was a period filled with
excitement and uncertainties, particularly for
those in the field of education. Taking a plunge –
from the enactment of the K-12 law until its
implementation - into this new chapter was not
without serious concerns and birth pains, but,
these were somehow addressed by certain
measures adopted by national government and
allayed by the reformist vision and profound goals of the K – 12
program. We have seen a new generation of students ready to take on
the bigger stage, armed with more knowledge, competent, and
equipped with the skills and abilities needed in the 21st century yet
willing to learn more.

This general education course called The Contemporary World is a

discussion based course that aims to inform and discover the student’s
place in the growing world. It intends to impart the students with
knowledge needed to be competent and excel in their future
professions, to comprehend the complexities of the modern world, both
domestic and global levels, and adapt to these multiple levels of social
interactions. It also aims to turn the new generations of learners into
critical thinkers and agents of change, in other words, this course
prepares students to the new challenges that they will face after
college.

The module entitled KINASANG-AN: The Contemporary World captures the

essence of the reality where we find ourselves at this moment, where
distance has become irrelevant. Conversely, we
cherish and applaud our fellows’ acts of heroism,
scientific discoveries, and other milestones that
indicate the triumph of humanity. Globalization has
turned the fantasy of a global village into a reality.

Let our learning journey begin! Best of luck to you.

kinasang-an (noun)
intersection

Faculty Information:

Name: FRANCIS N. REGINIO

Email:
francis.reginio@usep.edu.ph
Contact Number: 2|Page
09153264281
Office: Social Sciences Department, College of Arts and
 GE 319 – THE CONTEMPORARY WORLD

TABLE OF CONTENTS

CONTENTS PAGE

Cover page ………………………………… 1

Welcome Message ………………………………… 2

Table of Contents ………………………………… 3

USeP Vision, Mission and Goals ………………….. 4

USeP Graduate Attributes ………………………… 5

USeP Core Values ……………………………….... 5

Course Overview ………………………………… 6

Course Assessment ……………………………….. 7

Course Map ………………………………… 8

Module 1 Overview ………………………………… 9

The Lessons ………………………………… 13-39

Module 2 Overview ……………………………….. 40

Lessons in Module 2………………………………. 41-79

Template for writing lessons ……………………..

Sample Lessons / modules ……………………...

Course Summary ………………………………

References ……………………………..

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UNIVERSITY OF SOUTHEASTERN PHILIPPINES

VISION
Premier Research University in the ASEAN.

MISSIO

USeP shall produce world-class graduates and relevant research and

extension through quality education and sustainable resource
management.

GOALS
At the end of the plan period, the University of Southeastern
Philippines (USeP) aims to achieve five comprehensive and
primary goals:

1. Recognized ASEAN Research University

2. ASEAN Competitive Graduates and Professionals
3. Vibrant Research Community
4. Proactive Research-based Economic
Empowering Extension Services
5. Capacity for Innovative Resource Generation

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INSTITUTIONAL GRADUATE ATTRIBUTES

LEADERSHIP SKILLS

Creates and inspires positive changes in the organization; exercises

responsibility with integrity and accountability in the practice of one’s
profession or vocation.

CRITICAL AND ANALYTICAL THINKING SKILLS

Demonstrates creativity, innovativeness, and intellectual curiosity in

optimizing available resources to develop new knowledge, methods,
processes, systems, and value-added technologies.

SERVICE ORIENTED

Demonstrates concern for others, practices professional ethics, honesty,

and exemplifies socio-cultural, environmental concern, and sustainability.

LIFELONG LEARNING

Demonstrates enthusiasm and passion for continuous personal and

professional development.

PROFESSIONAL COMPETENCE

Demonstrates proficiency and flexibility in the area of specialization

and in conveying information in accordance with global standards.

CORE VALUES OF THE UNIVERSITY

UNITY
STEWARDSHIP
EXCELLENCE
PROFESSIONALISM

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THE COURSE OVERVIEW

COURSE TITLE : GE 319 - The Contemporary World

CREDIT : 3 units
SEMESTER : First Semester 2020
TIME FRAME : One Semester

COURSE DESCRIPTION
The course introduces students to the contemporary world by
examining the multifaceted phenomenon of globalization. Using the
various disciplines of the social sciences, it examines the economic,
social, political, technological, and other transformations that have
created an increasing awareness of the interconnectedness of peoples
and places around the globe. To this end, the course provides an
overview of the various debates in global governance, development,
and sustainability. Beyond exposing the student to the world outside
the Philippines, it seeks to inculcate a sense of global citizenship and
global ethical responsibility.

COURSE OUTCOMES

On the completion of the course, student is expected to be able to do

the following:

Course Outcomes Graduate Outcomes

Aligned to

CO1 4.1 Demonstrates

Proficient and effective proficiency and
communication (writing, speaking, flexibility in the area
and use of technologies) of specialization
CO2 Application of different analytical
modes (qualitative and quantitative, 2.4 Apply scientific,
artistic and scientific, textual and systematic and
visual, experimental, observation, creative reasoning
etc.) in tackling problem
methodically
CO3 3.3 Articulate one’s
Capacity to personally interpret the possible
human experience contributions to
society and nation
building

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CO4 Capacity to reflect critically on 2.3 Demonstrate

shared concerns and think critical thinking skills
innovative, creative solution in problem solving
guided by ethical standards

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COURSE ASSESSMENT

Learning Evidence and Measurement Rubrics

As evidence of attaining the above learning outcomes, the student has to do and
submit the following:
Course
Learning
Description and other Details Outcomes it
Evidence represents
LE1 Case  Case studies are conducted
Studies at the end of every term to CO1, CO2,
(Proposal) assess what CO3,
the students really know and CO4
what they need to practice.
LE 2 Two-Minute TED  Students shall give a compact
Inspired informative speech on an idea
Talk//Two- that is worth spreading. This
Minute may focus on scientific, social,
Informative cultural or academic topics.
Short Students could also opt for a CO1, CO2,
Or two-minute informative short CO3,
TED Script Dialogue video presenting trivial CO4
information that is related to
the course-subject.
 Students shall give a compact
informative speech (script
dialogue) on an idea that is
worth spreading.

Learning Evidence: LE 1 Case Study

Evaluation Dimensions Accomplished Competent Beginning
6 5 4 3 2 1
Identification of Issues: Presents accurate With a few Does not recognize
This section should and detailed exceptions, the problems or
describe the descriptions of the identifies and issues of the case,
managerial, financial, problems and issues outlines the or identifies
marketing, legal, central to the case; principal problems problems and
ethical, economic, provides a well- and issues in the issues that are not
international, and focused diagnosis of case; based on facts of
social strategic issues and demonstrates an the case; displays
responsibility/sustainab key problems that acceptable little
ility issues relevant to demonstrates an understanding of understanding of
the case. The section excellent grasp of the the company’s the issues, key
should also include an company’s present issues, current problems, and the
executive summary situation and situation, and company’s present
that provides an strategic challenges; strategic situation and
overview of the key descriptions are challenges; strategic
issues and problems compelling and executive summary challenges;
that are central to the insightful; provides a provides an executive
case. thorough and adequate overview summary does not
effective executive of the case issues present a clear
summary. and problems; overview of the
summary is missing case issues; main
a few minor points, points are not
but meets outlined, or cannot
expectations. be
understood.
Links to Course Makes appropriate Makes appropriate Makes
Readings and Additional and powerful but somewhat inappropriate or
Research: This section connections between vague connections little connection
should describe the identified issues/ between identified between issues
ways in which problems and the issues/problems identified and the

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theoretical and strategic concepts and concepts concepts studied

empirical research are studied in the course studied in readings in the readings;
related and can be readings and lectures; and lectures; supplements case
applied to the central supplements case demonstrates study, if at all,
issues and problems in study with relevant limited command of with incomplete
the case. and thoughtful the analytical tools research and
research and studied; documentation.
documents all sources supplements case
of information. study with limited
research.

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Analysis and Presents a balanced, Provides an Simply repeats

Evaluation: This in- depth, and critical acceptable analysis facts identified in
section should present assessment of the of most of the the case and does
an analysis of the facts of the case in issues and not discuss the
central issues and light of relevant problems in the relevance of these
problems in the case. empirical and case; in most facts; fails to draw
This analysis should theoretical research; instances, analysis conclusions, or
be informed by develops insightful is adequately conclusions are not
relevant theory and and well-supported supported by justified or
empirical data and conclusions using theory and supported; does
should lead to a set of reasoned, sound, empirical data; not present
conclusions that are and informed appropriate relevant research
supported by judgments. conclusions are or data; shows no
appropriate outlined and critical examination
evidence. summarized. of case
issues.
Writing Mechanics and Demonstrates clarity, Occasional Writing is
Formatting Guidelines: conciseness and grammar or unfocused,
Writing mechanics correctness; spelling errors, but rambling, or
and formatting are formatting is still a clear contains serious
observed. appropriate and presentation of errors; poorly
writing is ideas; lacks organized and
free of grammar organization. does
and spelling not follow
errors. specified
guidelines

Learning Evidence: LE2: Two-Minute TED Inspired Talk//Two-Minute

Informative Short
Beyond Expected Satisfactory Acceptable Unacceptable
Area to Assess Expectation (4) (3) (2) (1)
(5)
The The content The content The The content
content of of the of the content of of the
the speech speech speech the speech speech
covers the covers the covers the covers the covers the
topic in topic topic topic topic is
depth includes includes includes severely
despite the essential most some lacking in
time facts and essential essential information
constraints information; facts and facts and and detail;
; Subject Subject information; informatio Subject
Content and knowledge knowledge Subject n; Subject knowledge
Organization is appears to knowledge knowledge appears to
excellent, be good, appears to appears to be clearly
organized organized in be good, be lacking,
in a a manner organized in acceptable organized is
manner that is a manner , organized haphazard
that it not understanda that is in a and
only bl e. understand manner confusing to
understand ab le. that is the
a ble but understan audience.
captures da ble.
audience
attention
and
inspiration.
The The content The content The The content
content of of the of the content of of the
the speech speech is speech is the speech speech is
is well- well-thought moderately is thought mediocre
thought out and has thought out out and is not
out and high and has a although a thought out
Informative and has a very informative good little well. It has

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Educational Value high and informative lacking. It very little or

informativ educational and has no
e and value. It is educational informativ informative
educationa very value. It is e and and
l value. It interesting interesting educationa educational
is highly to the to the l value. It value. It
interesting audience. audience. is does not
to the somewhat appear
audience. interesting interesting
to to the
the audience.
audienc
e.
Speaking Quality and The The The There The
Delivery speech speech speech are student
was very was was moment made no

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interesting, interesting, interesting, when the attempt

delivered delivered delivered speech at
smoothly generally generally was speaking
and smoothly, smoothly, uninteresti ;
flawlessly, keeping the keeping the ng
keeping audience audience , and
the relatively relatively distracting;
audience focused on focused on the
focused on the speaker the speaker speakers
the for most of for most of was able to
speaker the time; the the time; establish
from start speakers the some
to finish; was able to speakers rapport
rapport establish was able to with the
with the rapport with establish audience.
audience the audience rapport
was for the most with the
excellent part audience
for the
most
part.
The The student The student The The
student exhibited exhibited student student
exhibited preparation some exhibited made no
comprehen and practice preparation some attempt at
si ve for the and preparatio speaking;
preparatio speech; practice for n and
n and exhibiting the speech; practice
practice for confidence there were for the
Presence/Confidence the and stage 1 or two speech;
speech; presence for moments in exhibiting
exhibiting majority of the speech exemplary
exemplary the speech were confidence
confidence anxiety was and stage
and stage evident but presence.
presence. did not
distract the
overall
performanc
e
of the
speech.
The video The video is The video is The video The video
is of of very good of good needs has poor
excellent audio and audio and improveme audio and
audio and video quality video nt on audio video quality
video and made quality and and video and did not
quality and use of made use quality and make use of
Audio and Video made use effective of graphics made use effective
Quality of effective graphics and and of little graphics and
graphics transitions. transitions. graphics transitions.
and and
transitions. transitions
or has
ineffective
use of
graphics
and
transitions.

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Learning Evidence: LE2: Script Dialogue

Expected Satisfactory Acceptable Unacceptable
Area to Assess
(4) (3) (2) (1)
Writing shows high Writing is coherent Writing is Writing lacks
degree of and logically coherent and logical
attention to logic organized with logically organization.
and reasoning of transitions used organized. Some It shows some
Organization points. Unity between ideas and points remain coherence but
clearly leads the paragraphs to misplaced and ideas lack
reader to the create coherence. stray from the unity. Serious
conclusion and Overall unity of topic. errors.
stirs thought ideas is present. Transitions
regarding the evident but not
topic. used throughout
essay.
Content indicates Content indicates Content Shows some
synthesis of ideas, original thinking indicates thinking and
Level of in- depth analysis and develops ideas thinking and reasoning but
Content and evidences with sufficient and reasoning most ideas are
original thought and firm evidence. applied with underdevelope
support original thought d
for the topic. on a few and unoriginal.
ideas.
Main points well Main points well Main points are Main points lack
developed with developed with present with detailed
high quality and quality supporting limited detail development.
Development
quantity support. details and and Ideas are vague
Reveals quantity. development. with little
high degree of Critical thinking Some critical evidence of
critical thinking. is weaved into thinking is critical thinking.
points present.
Essay is free of Essay has few Most spelling, Spelling,
distracting spelling, punctuation, punctuation, and
spelling, punctuation, and and grammar grammatical
punctuation, and grammatical errors correct allowing errors create
Grammar and grammatical allowing reader to reader to distraction,
Mechanics errors; absent of follow ideas progress making reading
fragments, clearly. Very few though essay. difficult;
comma splices, fragments or run- Some errors fragments,
and run-ons. ons. remain. comma splices,
run-ons evident.
Errors
are
frequent
.
Shows Attains college Approaches Mostly in
outstanding style level style; tone college level elementary form
going beyond is appropriate usage of some with little or no
usual college and rhetorical variety in variety in
Style level; rhetorical devices used to sentence sentence
devices and tone enhance content; patterns, diction, structure,
used effectively; sentence variety and rhetorical diction,
creative use of used effectively. devices. rhetorical
sentence devices or
structure and emphasis.
coordination

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Meets all formal Meets format and Meets format Fails to follow
and assignment assignment and format and
requirements and requirements; assignment assignment
evidences margins, spacing, requirements; requirements;
attention to detail; and indentations generally incorrect
Format all margins, are correct; essay correct margins,
spacing and is neat and margins, spacing and
indentations are correctly spacing, and indentation;
correct; essay is assembled. indentations; neatness of
neat and correctly essay is neat essay needs
assembled with but may have attention.
professional look. some assembly
errors.

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Other Requirements and Assessment Activities (AA)

Aside from the final output, the student will be assessed at other times during the term by the
following:

Course
Assessment
Description and other Details Outcomes it
Activity
represents
AA1 Quizzes Quizzes will be given after
CO1, CO2,
each topic. Types of
CO3,
quizzes will vary depending
CO4
on the topic.
AA2 Critique Papers Activities may be bring home
CO1, CO2,
or in class. This is to be given
CO3,
after each topic.
CO4

Grading System

The final grade in this course will be composed of the following items and their weights
in the final grade computation:

Assessment Grade Source (Score or Rubric Percentage of Final

Item Grade) Grade
AA1 Score 25%
AA2 Score 25%
LE1 Rubric Grade 25%
LE2 Rubric Grade 25%
100%

Passing Grade 3.0

Passing Grade conditions: Submission of
complete requirements

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The Course Map

CONTEMPORARY WORLD

Module 4 Global Population and Mo

Module 1 Introduction toModule
Globalization
2 Structures of Globalization
Module 3 Sustainable Development
A World of Regions
and A World of Ideas

Lesson 1: Definition and Concepts

Lesson 1: The
of globalization
Global Economy
Lesson 1: Global Divides:Lesson
The North
1: Theand
Global
South
City

Lesson 2: Globalization Lesson

and its impact
2: Market
on Integration
political and economic
Lesson 2: Asian Regionalism
world Lesson 2: The Global Demography

Lesson 3: The Global Interstate System

Lesson 3: Globaland
Media
Global
Cultures
Governance
Lesson 3: Global Migration

Lesson 4: The Globalization of Religion

Lesson 4: Sustainable Developmen

Lesson 5: Global Food Security an

OUTCOME: A student who is able OUTCOME:

to reflect critically
A studenton who
shared
is able
concerns
to pers
a
OUTCOME: A student who is able to communicate proficiently and effectively

OUTCOME: A student who is able to apply different analytical modes (qualitati

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Module 1
INTRODUCTION TO GLOBALIZATION
Module Overview

The phrases of Arthur C. Clarke; “good things come in small

packages,” “it’s a small world after all,” “the world has shrunk”
describes our global conditions. The concept of the shrinking world
actually has to do with how much technology has impacted the world
we live in today. It has taken place because of the combination of
human feats including modern transportation, information and
communication technology, medical advancement, and technological
innovations. Experiences of people hundred years ago scoff at stories
of how they had to walk to the destination they wished to go or travel
by stage coach; no one could travel very far, which made the world
seem so big. In either case, it took a lot of time and required unusual
effort to get to one’s place of destination. All these discomforts related
to travelling have disappeared in the modern era. Nowadays, if
someone wanted to travel anywhere in the world, they can simply fly in
an airplane. In a number of hours, you have arrived at the destination
you are trying to reach. Similarly, since people take their phones with
them wherever they go, they have the whole world at their fingertips.
Technology is the foundation of our world. In effect, the world appears
smaller today than it actually is.

This module is largely devoted in establishing firmly the concept

of globalization. The phenomenon and practice associated with the
concept of globalization shall be discussed. This is imperative to
understand better the related concepts, topics and principles which
shall be discussed in the succeeding modules.

Module Outcomes

By the end of this module, we hope to achieve the following objectives:

 Define what Globalization is and what it stands for in our

contemporary world;
 Differentiate the competing conceptions of globalization and
undermine the various schools of thought and paradigms on
Globalization;
 Equip students with 21st century learning and develop higher
order thinking skills that will lead towards a deeper
understanding of Globalization and its role in the world; in the
Philippine society as well as its role in the individual formation
of the students in relation to their future respective professions.

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Lesson 1
Introduction to Globalization
Learning Outcomes

By the end of this lesson you should be able to:

 Define what Globalization is and what it stands for in our

contemporary world;
 Differentiate the competing conceptions of globalization and
undermine the various schools of thought and paradigms on
Globalization, and;
 Understand the raison d’être of Globalization, its goals and
aspirations;

Time Frame: 1 Week

Overview

In today’s constantly changing world, societies are becoming

increasingly interdependent and have more social, economic, political
and cultural relationships. Similarly, the problems and issues that
characterize the contemporary world are interconnected and
multidimensional. As a result, the various actors—states, organizations,
and citizens—are called upon to work
together to find global
solutions. To study these
problems and issues, one
must see them from both
geographic and historical
perspectives, and consider
the economic and political
dimensions.

This module is largely

devoted in establishing firmly
the concept of globalization.
In this chapter, the
phenomenon and practice
associated with the concept
of globalization will be
discussed. This is imperative
to understand better the
related concepts, topics and
principles which shall be
discussed in the succeeding
Activity (Let’s Get Started!) lessons of this module.

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Think of words or phrases that comes in your mind when we say of

Globalization.

 What is meant by globalization?

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Analysis (Let’s Think About it!)

Now think about the questions below:

 Why are theories on globalization important?

 What are some challenges faced by the contemporary world?

Abstraction (Let’s Explore!)

Globalization and its meaning

The term “globalization” has several contending meanings. We can

rundown some of the widely accepted definitions of globalization to
prove this point. For instance, the definition of Giddens explains the
term as the “intensification of worldwide social relations which link
distant localities in such a way that local happening is shaped by
events stirring many miles away and vice versa” (1990:64). The
interconnectedness of every human-person brought about by
technological changes seems to be a common understanding of
globalization. Also, the understanding of globalization as defined by
Robertson contributed to a concept that “refers both to the
compression of the world and the intensification of consciousness of
the world as a whole…” (Robertson, 1992: 8). Similarly, Harvey (1989)
introduced globalization as the compression of time of space and the
eradication of distance. The Sunny Levin Institute looks at globalization
as a process of interaction and integration among the people,
communities, and governments of different nations, a process driven
by international trade and investment and aided by information
technology. The said process has then effects on the environment, on
culture, on political systems, on economic development, and on every
human well-being in societies around the world (Steger, 2005).

On the other hand, a group of globalization scholars does not subscribe

to the sociological viewpoint. Instead, they argue that
internationalization and multi- nationalization are phases that precede
globalization because of the latter heralds the end of the state system
as the nucleus of human activities (Grupo de Lisboa, 1994, quoted in
DeSoussa Santos, 2002:68). They explain that the activities and
developments in globalization have taken place outside the formal
structures of the nation-state. Globalization marks the increasing
irrelevance of the nation-state, whose status as the dominant political
organization was acknowledge by the Treaty of Westphalia. In short,
accordingly to this group scholars, we might witness the end of the
nation-state. Others explain globalization from the economic
viewpoints; they think that the phenomenon is dominated by global
economic activities like the neoliberal, the reduction of tariffs, the
creation of transnational corporations, and improvement of multilateral

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trade organization. The existence of these several definitions of

globalization clearly point out that there can be as many definitions as
there are scholars studying it.

What can explain the existence of competing definition of

globalization? Primarily, this can be attributed to the diversity of
disciplines that have studied the phenomenon. Globalization was first
used as a term in the academic circles in the

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decades of 1960s and 1970s (Nederveen Peterse, 2012; Steger, 2005)

but had gained wide interest in the 1990s. Scholars from the traditional
disciples of political science, economics, history, sociology, and
philosophy have examined globalization using the analytical tools and
methods provided by their respective discipline. Apparently, their ideas
and analyses can only shed light on certain aspects of globalization.
Historians, for instance, are more interested in determining whether
globalization is really a modern phenomenon. Economists, on the other
hand, look into the changing patterns of international trade and
commerce as well as the unequal distribution of wealth. Meanwhile,
political scientists focus more on the impact of the forces of
globalization, such as the international non- governmental
organizations and international organizations, on the state and vice
versa. These diverse focal points and research interests across
disciplines have resulted in competing definitions of globalizations.

Globalization as a process, condition, and ideology

In the absence of a generally accepted definition, Steger (2005)

explains that globalization has been commonly understood either as a
process, a condition, or an ideology.

Globalization as a process. It is viewed as a multidimensional set of

social processes that generate and increase “worldwide social
interdependencies and exchanges while at the same time fostering in
people a growing awareness of deepening connections between the
local and the distant” (Steger, 2005:13). This view argues that
globalization is about the compression of time and space brought about
the changes in technology and political, cultural, and economic aspects
of human existence.

If globalization is viewed as a process, which denotes happening over a

stretch of time, can we trace its beginning? In short, when did
globalization start? Again, looking for an answer to this question is a
difficult task since globalization scholars disagree on an answer.
Scholars specializing in international relations, political science, media
studies, and economics date globalization from the 1970s, with the
formation of global value chains and accelerated communication
(Nederveen Pieterse, 2012). Another variant of this periodization refers
to the neoliberal globalization, 1980-2000. In sociology, the timeline
stretches wider since the point of interest is modernity, which began
the period of Renaissance, followed by the Enlightenment, then the
French Revolution and lasted up until the period of Industrialization in
the late 1700s and throughout the 1800s. In political economy, as well
as the Marxist perspective, the origin of globalization can be traced
back to the 150s, following Marx’s dictum “the conquest of the world
market marks the birth of modern capitalism” (Ibid: 3). Therefore, the
historic moments of globalization are 1500s and 1800s, considered by

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political economists as the birth of modern capitalism. However, critics

of these alternatives of contemporary periodization, which focus on
modernity, raise the issues of “Eurocentrism” and “intellectual
apartheid” (Hobson, 2004). Another issue raised is that by using
modern capitalism (1500s) as a cut-off is equivalent to ignoring earlier
forms and infrastructures of capitalism (Nederveen, Pieterse, 2012).

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Disciplines Time Agency/Domain Keywords

Political Science, 1980 “Internationalization of Competitor states,
International the State”, INGO’s post-
Relations international politics,
Global
civil society
Development IMF, World Bank Debt crisis,
Studies structural
adjustment policies
Geography Space, Place Local Global
interaction,
Glocalization
Economics 1970 Multinational Global corporations, world
corporations, product, global value
technologies, banks, chains, new economy,
finance hedge funds sovereign
wealth funds
Cultural studies Media, film, advertising, Global village,
ICT McDonaliation,
Disneyfication,
hyrbidization
Philosophy 1950 Ethics Global problems, global
ethics
Sociology 1800 Modernity Capitalism,
Political Economy 1500 Modern Capitalism
industrialism,
urbanization, nation-
states
Conquest of the World
Market

Table 1: Globalization according to Social Science and Humanities

Disciplines

A different way of tracing the roots of globalization is by looking for

signs of globality, which is explained earlier as the thickening of social
linkages between people from different parts of the world. What we
should look for are historical evidence of growing worldwide
connectivity. It implies a longer timeline because increasing
connectivity is not a recent trend (Nederveen Pieterse, 2012). Viewed
as such, globalization has no definite exact beginning. From the
perspective, globalization is spurred by innovations in transportation
and communication technologies, and creation of institutions of
commerce.

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Figure 1 Globalization from an economic perspective

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In this sense, economists emphasize that the beginning of globalization

was in the 1820s when commodity prices across continents converged
(O’Rourke and Williamson, 2002, 2004). For Flynn and Giraldez (2006),
globalization is synonymous to permanent global trade, which began
when all the major regions of the world “exchange products
continuously…and on a scale that generated deep and lasting impacts
on all trading partners” (Ibid: 244). Following the line of thinking of
economists, some scholars argue that the emergence of world
economy should be taken as a threshold of globalization.

Globalization as a Condition. Is also referred to by scholars as globality.

Scholte (2008) refers to globality as social condition characterized by
trans-planetary connectivity and supra-territoriality. In terms of trans-
planetary relations, globality is about the establishment of social links
between people located at different places of our planet. Here our
planet is not treated as a collection of geographical units but as a social
space or an arena of social life. Meanwhile, supra-territorial relations
are “social connections that transcend territorial geography” (Scholte,
2018: 1480). In other words, globalization as a social condition is
characterized by thick economic, political and cultural
inrterconnections and global flows that render political borders and
economic barriers irrelevant (Steger, 2008).

The experience of Bara’a and her family fled their home in Syria and
are currently living with her three children in a refugee camp in Bekaa
Valley, Lebanon. Her story was shared by Global One, which supports
mothers and children through hygiene and health supplies as well as
training local women as midwives to support long term development.

Bara’a still experiences trauma surrounding the birth of her youngest

child, Rouba, five years ago. Her hands shake as she recalls the
memory. Unable to breastfeed her daughter due to mental exhaustion,
Bara’a had to rely on donations to buy formula milk to feed Rouba. But
once the donations ran out after a week, Bara’a had no choice but to
feed her newborn a mixture of sugar and water. Alongside this, she had
to take out loans to provide nappies for all of her children, who still wet
themselves due to mental trauma. The uncertainty of their future
makes life even more difficult for Bara’a, but this doesn’t stop her from
dreaming: “My only dream is to send my children to school… I am so
worried about their future.”

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Figure 2 Source: https://www.globalgiving.org/projects/box-for-life/?rf=learn

This photo of Bara’a and her children, which was spread in various
social media networks, is a fine example of globalization as a process
and condition as it moved people from across the world to express
their concern over the plight of the Syrian refugees.

Globalization as an ideology. Steger (2005), following the line of

reasoning of globalization scholar Michael Freeden, explains that
globalization exists in peple’s consciences because it consists of a set
of coherent and complementary ideas and beliefs about the global
order. In other words, globalization is a political belief system that
benefits a certain class. He argues that globalization as an ideology is
defined by six (6) core claims.

As such, for Globalization as a process, condition, and ideology, please

refer to the file attached (re: Ideologies of Globalization.pdf)

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Application (Let’s Do It!)

Learner Worksheet 1 #Hash – tag this!

Student Name: Score:
Course/ Year/ Section:
Below are photos that depict the various negative facets associated with
Globalization. Each student must present a hash tag for each of the selected
photos. Student must focus on the following key questions.

1. How is Globalization depicted in the photo; how does this apply to

the Philippines?
2. If this is a perceived issue or problem, what do you think should
be done to address or solve them?

Using the selected photo; be able to craft/draw an illustration of your own

depicting a more constructive/positive version of the picture, and explains
why you come up with such illustration. Hash-tag your new picture
illustration.

A B

C D

E F

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Submitting Your Work. If you do not have Internet Connectivity, neatly detach
this page from your module and submit via University Drop Box or by courier/
mail together with your other Learner Activity Worksheets once you reach the
prescribed Learning Checkpoint. If you have Internet connectivity, you may
answer directly on the online version of this worksheet through the University
Virtual Environment.

Closure
Well done! You have just finished Lesson 1 of this module.

If you have questions or need to make clarifications take note of them in the
space provided below to ask your Course Professor through direct messaging
or through the University Virtual Environment (UVE).

Now that you have completed Lesson 1, let us move on to the next lesson
inNotes from this Lesson
this module.

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Lesson 2
Globalization and its Impact on
Political and Economic world
Learning Outcomes

Now let us move on to a closer examination on the theoretical

paradigms associated with globalization. By the end of this lesson you
should be able to:

 Identify the underlying philosophies of the varying

definitions of globalization;
 Evaluate the impact of globalization on political and economic world;
 Equip students with 21st century learning and develop higher
order thinking skills that will lead towards a deeper
understanding of Globalization and its role in the world; in the
Philippine society as well as its role in the individual formation
of the students in relation to their future respective professions.

Time Frame: 1 Week

Introduction

The advent of globalization in the 1970s had affected greatly the

academic world as it immediately gained the interest and attention of
most social scientists, who were occupied with social phenomena
related to globalization. The impact can be seen in the surge of
scholarly works about globalization. Over the years, the literature on
globalization has been enhanced with the inclusion of new research
areas and topics, such as studies on transnational sexualities, global
tourism, and evolution of state institutions, the restructuring of work
and the improvement of working conditions, transnational care-giving,
and the global media to name a few. Clearly, the wide array of
globalization-related research topics that scholars can choose from
points to the ubiquity of the effects of globalization (Appelbaum and
Robinson, 2005).
By way of reiteration, the increasing literature on globalization reflects
the enormity of human activities that can be studied. Also, it shows the
extent of globalization’s impact on human lives; it shows how different
we have become compared to our predecessors in terms of the level of
superiority, sophistication and cosmopolitanism. The globalization
literature suggests that there are two major branches of research: (1)
those studying specific problems or issues as they relate to
globalization; (2) those studying the concept of globalization itself –
theorizing the very nature of the process. Both areas entail a great deal

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of theorizing in order to make sense of the various phenomena

comprising globalization. How do we theorize on this phenomenon that
we call globalization? What types of theories have been developed to
explain social change in the 21 st century? Are the major theories of the
traditional social science disciplines adequate to explain the various
phenomena within globalization? Or, do we need new theoretical
models?

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Activity (Let’s Get Started!)

Create an image showing your connections to the rest of the world based
on the music you listen to, using the following questions.
1. Is the core of the process economic, political or cultural? Is there
an underlying material or an ideational determinacy? Are there
multiple determinacy and how would they be ordered?
2. What is the relationship between globalization and the nation-
state? Is the nation-state being undermined or has it retained its
primacy and relevance? Or, has the nation-state experienced
unprecedented transformation due to globalization? Does
globalization involved internationalization or transnationalization?
3. Lastly, to what extent is the relationship between social structure
and territoriality being redefined by globalization? What is the
relationship between the local and the global?

Analysis (Let’s Think About it!)

 What are factors that are having a major impact on the environment?

 What impact are economic development and rapid population

growth having on the environment?

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Abstraction (Let’s Explore!)

The questions mentioned in the activity and analysis shall form the
backbone of the discussion on the theoretical paradigms associated with
globalization.

1. World Systems Paradigm. As discussed by Immanuel Wallerstein,

globalization viewed not as a recent phenomenon but virtually
synonymous with the birth and spread of world capitalism. For him
the appropriate unit of analysis for macro-social inquiry in the
modern world is neither class, nor state/society, or country, but the
larger historical system, in which these categories are located. This
paradigm adheres to the ideas that capitalism has created a global
enterprise that swept the 19th century leading to the present time.
That is why the followers of this paradigm argue that globalization
is not at all a new process but something that is just continuing and
evolving.

A key structure of the capitalist world-system is the division of the

world into three great regions, or geographically based and
hierarchical organized tiers. The first is the core, or the powerful
and developed centers of the system, originally comprised of
Western Europe and later expanded to include North America and
japan. The second is the periphery, those regions that have been
forcibly subordinated to the core through colonialism or other
means, and in the formative years of the capitalist world-system
would include Latin America, Africa, Asia, the Middle East and
Eastern Europe. Third is the semi-periphery, compromised of those
states and regions that were previously in the periphery and are
moving up. Another key feature of this world-system is the
centrality and immanence of the inter-state system and inter-state
rivalry to the maintenance and reproduction of the world-system.
The world-system paradigm does not see any transcendence of the
nation-state system or the centrality of nation-states as the
principal component units of a larger global system.

2. Global Capitalism Paradigm. The theories under this school of

thought treat globalization as a novel stage in the evolving system
of world capitalism. As such, globalization has its own unique
features that distinguish it from earlier periods. They focus on new
global production and financial system; both are seen to have
superseded earlier national forms of capitalism. They also
emphasize the rise of processes that cannot be framed within the
nation- state/inter-state system, which lies at the core of the world-
system theory and most traditional macro-social theories. The
seminal studies of Sklair (2000, 2002) have showcased the theory
of the global system which espoused the transnational phenomena.
His theory argues that the TCC has emerged as a new class that
brings together several social groups who see their own interest in

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an expanding global capitalist system: the executives of

transnational corporations; globalizing bureaucrats, politicians, and
professionals, and consumerist elites in the media and the
commercial sector (Sklair, 2000).

Meanwhile, the major students Robinson (2003, 2004) have

advanced a related theory of global capitalism involving three
planks: transnational production, transnational capitalists and a
transnational state. For him, globalization creates new forms of
transnational class relations across borders

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and local communities, in ways quite distinct from the old national
class structures and international class conflicts and alliances.

3. The Network Society School of Thought. In its simplest explanation

this paradigm of globalization does not describe to the contention
that capitalism fuels globalization. Instead, it puts forth the
premise that technology and technological change are the
underlying causes of the several processes that comprise
globalization. In fact, this idea is articulated in the important
works of Manuel Castells called “The Rise of the Network Society
(1996, 1997, 1998), which features his technologistic approach to
globalization. He advanced the notion of the “new economy” as
(1) informational, knowledge- based; (2) global, in that
production is organized on a global scale; and (3) networked in
that productivity is generated through global networks of
interaction. In Castells’ view, (1996:188), the concept of the
network society is closely associated with interpretation of the
social implications of globalization and the role of electronic
communications technologies in society. The definition of a
network society given by Castells (2004 p. 3) is that it is 'a
society whose social structure is made up of networks powered
by micro-electronics-based information and communications
technologies.' As Castells shows in his book, historically, there
have always been social networks: the key factor that
distinguishes the network society is that the use of ICTs helps to
create and sustain far-flung networks in which new kinds of social
relationships are created.

Castells' analysis provides three processes in a broad historical

context for the development paradigms. (1) The significance of
economic restructuring that created the conditions for the
emergence of the open market development paradigm; (2)
weakening the nation state and deepening processes of social
inclusion, and; (3) exclusion between and within countries. The
cultural movements were significant because they created the
conditions for emergence of an opposing 'human-capabilities
centred' development paradigm that focuses on human rights.
The values of individual autonomy and freedom espoused by this
cultural change shaped the open network structure for
communication. As Castells concludes, 'the culture of freedom
was decisive in inducing network technologies which, in turn,
were the essential infrastructure for business to operate its
restructuring in terms of globalization' (Castells 2004 p. 22).

4. Space, Time and Globalization. For Anthony Giddens, the

conceptual essence of globalization is ‘time-space distanciation’.
Giddens (1990:64) defines time-space distanciation ‘as the
intensification of worldwide social relations which occurring many

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miles away and vice versa’ – social relations are ‘lifted out’ from
local contexts of interaction and restructured across time and
space. For him, the debate is about the consequences of
globalization, not about the reality of globalization, thus,
“globalization is fundamentally social, cultural, (and) political, not
just economic" (Giddens, 2000). Thus, globalization is about
macro-systemic changes in the global marketplace and the
nature of sovereignty, but it is also about the here and now,
about transformations that affect our daily and emotional lives.

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Giddens (2000) argued that the driving force behind globalization

is the information revolution. "Instantaneous communication
changes almost everything. It invades the texture of everyday
life, but it also provides for the restructuring of other
institutions." The outcome is a highly complex set of processes
that often take contradictory shapes, but one can simplify the
concept with a three-fold image. Globalization pulls away from
the nation- state, removing control from national governments in
such areas as economic and trade policy. But globalization also
pushes down from the state, allocating new resources for local
economies, facilitating the emergence of local cultural identities,
and strengthening sub-national units of governance. Finally,
globalization squeezes sideways, creating new cultural,
economic, and political regions that cut across national
boundaries.

Another key figure in the globalization theories involving space

and time is Saskia Sassen’s The Global City (1991), which has
had an exceptionally broad impact across the disciplines and left
an indelible mark on the emergent field of globalization studies.
His study is grounded in a larger body of literature on world cities
that view world-class cities as sites of a major production,
finances, or coordinating of the world economy within an
international division of labor, and more recent research on
‘globalizing cities’. Sassen proposes that a new spatial order is
emerging under globalization based on a network of global cities.
These cities are sites of specialized services for transnationally
mobile capital that is so central to the global economy.

Another concept introduced and popularized by Roland

Robertson is the term ‘glocalization’. This catchy term means
that the ideas about home, locality and community have been
extensively spread around the world for the local be globalized.
And, the stress upon the significance of the local can be viewed
as one ingredient of the overall globalization process (Robertson,
1995). He suggests replacing the concept of globalization with
the concept of "glocalization". In using "glocalization" rather than
globalization, Robertson wishes to blur the boundaries between
the local and the global. Former views in sociology saw
globalization as a contrast between the local and the global as
theorized it in terms of action-reaction patterns (Robertson,
2014). Robertson offers instead to see the local itself as one of
the aspects of globalization. For example, the search for "home"
and "roots" are a counter reaction to globalization but rather a
need structured by it.

One of the ramifications of using the term glocalization instead of

globalization is that claims of homogeneity of culture under

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globalization lose ground. Even though intercultural ties are

increasingly fastened throughout the world, Robertson believes
that we are definitely not heading for a united human culture.
The reason is that in glocaliztion these ties and influences are
selected, processed and consumed according to the local
culture's needs, taste and social structure (Robertson 2014, 447-
459).

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5. Transnationality and Transnationalism. In the globalization

literature, transnationalism generally refers to an umbrella
concept encompassing a wide variety of transformative
processes, practices and developments that take place
simultaneously at the local level and global level. Transnational
processes and practices are defined broadly as the multiple ties
and interactions – economic, political, social and cultural – that
link people, communities and institutions across the borders of
nation-states. As stated by William Robinsons in his paper on the
‘Theory of Globalization’, scholars such as Levitt (2001), Smith and
Guarnizo (1998) and Portes and his colleagues (1999) point to
the novel character of transnational links in the era of
globalization. Transnational ties among recent immigrants are
more intense than those of their historical counterparts due to
the spread and relatively inexpensive character of travel and
communications and that the impact of these ties are increased
by the local and national context in which they occur (Levitt,
2001: Portes, 1995; Portes et al, 1999).

Robinson (1998) states that, just as “social structure is becoming

transnationalized; an epistemic shift is required in concurrence
with this ontological shift.” The major topics addressed by
transnational studies include: economic globalization, the
transnationalization of the state, classes, political processes, and
culture, and the current integration processes taking place
around the world through formal organizations such as NAFTA
and the European Union (Robinson 1998).

Transnational perspectives provide deeper understanding into a

number of globally contingent social, economic, and political
processes including social movements, governance and politics,
terrorism, political violence, and organized crime among others.

Example: One of the most fruitful areas of study has been

transnational migration. Research in this area looks at issues
such as the salient interaction with the receiving society’s
institutions, the migration policies of states, the role of
discrimination in limiting access to the institutions of the
receiving society’s civil society, access to computers within
the home and receiving societies, and the costs and other
hardships that affect groups of migrants (Kivisto 2001). A
growing research agenda concerns the emergence of civil
society, state, and non-state organizations, developed in
order to respond to issues of transnational immigration.
Identity is continually challenged by the fluid legal and social
characterizations of migrants created and adapted to local,
national, and international organizations.

6. Global Culture paradigm. Stresses its definition as a group of

human beings whose members identify with each other, on the

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basis of distinctiveness measured by combinations of cultural,

linguistic, religious, behavioral and/or biological traits. This
definition borrows from the UNESCO (2005) philosophy, which
reaffirmed their famous ’15 points’, namely: “National, religious,
geographic, linguistic and cultural groups do not necessarily
coincide with racial groups: and the cultural traits of such groups
have no demonstrated genetic connection with racial traits.”
(UNESCO, 1950, p. 6). Such theory emphasize the rapid growth of
the mass media and

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resultant global cultural flows and images in recent decades,

evoking the image famously put forth by Marshall McLuhan of
‘the global village’. Cultural theories of globalization have
focused on such phenomena as globalization and religion,
nations and ethnicity, global consumerism, global
communications and the globalization of tourism. For instance,
Ritzer (1993, 2002) coined the now popularized term
‘McDonalization’ to describe the sociocultural processes by which
the principle of the fast-food restaurant came to dominate more
and more sectors of US and later world society. Ritzer, in this
particular homogenization approach, suggest that Weber’s
process of rationalization became epitomized in the late 20 th
century in the organization of McDonald’s restaurants along
seemingly efficient, predictable and standardized lines – an
instrumental rationality (the most efficient means to a given end)
– yet results in an ever deeper substantive irrationality, such as
alienation, waste, low nutritional value and the risk of health
problems, and so forth.

These mentioned approaches are just some of the major theoretical

underpinnings that seek to provide a clear conceptualization of
globalization. While it cannot be denied that the formulation of these
theories have resulted in seemingly endless academic debates
centered on the correct way of interpreting globalization, they have
also helped us in correcting some of the wrong notions and
misconceptions about globalization. The discussion that follows is
focused on these misconceptions.

NOTE: for theoretical paradigms please refer to the file attached (re:
Theories of Globalization.pdf)

Misconceptions about globalization

Scholte (2008) in his attempt to clarify the meaning of globalization,

criticizes the several flawed analyses of globalization pointing out that
they end in failure to produce new knowledge. In other words, he
defines globalization by telling us what it is not. Below are the
misconceptions of globalization.

a. Globalization as internationalization

Although the terms internationalization and globalization are

interchangeable there is a big difference in their meanings.
Internationalization includes activities by entities such as corporation,
states, international organizations, private organizations and even
individuals with reference to national borders and national
governments. Globalization, on the other hand, includes a gamut of

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human activities that do not require reference to a state’s national

borders. For instance, exchanges of romantic words in social media
platform such as Facebook between a Filipino located in the Philippines
and a German residing in the country fall within globalization do not
need their respective government’s permission to do so.

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Globalization occurs in this

“Facebook era”, where
social networking sites
have drawn people closer
more than ever. Facebook
is a social networking site
with at over 2.7 billion
active users in the second
quarter of 2020, and there
were 73 170 000 Facebook
users in Philippines in
January 2020, which
accounted for 65.9% of its
entire population. The
Figure 3 Source: https://www.facebook.com/ majority of them were
women - 53%.
People aged 18 to 24 were
the largest user group (24
000 000).
The highest difference between men and women occurs within people
aged 18 to 24, where women lead by 2 000 000.

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Structurally, globalization is made both possible and necessary by the

development of two transforming technologies – transportation and
communication (Boyd & Mitchell, 2005). Simultaneously,
communication technologies carrying hundreds of simultaneous high-
fidelity, real-time, voice and video channels by satellites and over the
internet are giving global reach to political ideas, competitive
price/value comparisons, instant news, social organization networks
and dozens of other innovations in the way people access events,
ideas, information and opinions. Transportation and communication
technology innovations are no longer optional attributes to be used
primarily by cultural or political elites. Ordinary citizens have nearly
universal access to these technologies and are reaping substantial
social, political, cultural and economic benefits. Virtually all important
social institutions, as well as entrepreneurs, intellectual, political and
cultural leaders, ignore the global reach of ideas and material things
now available to nearly everyone at their peril.

Another example, from the social process transformation perspective,

globalization is having a transformative effect on the core functions of
institutions of higher education. Under the influence of social
interaction globalization, higher educational institutions are developing
a consumerist mentality which transforms education into a product
exchangeable in an open market (Marginson & Considine, 2000;
Altbach, 2004, Slaughter & Rhoades, 2004). Slaughter and Leslie argue
that “the academy has shifted from a liberal arts core to an
entrepreneurial periphery,” in which “marketization” of the academics
leads to the rise of “research and development with commercial
purpose” (1997, p. 208). This commercial purpose allows higher
education institutions to compete for the monetary or human resources
available globally to benefit their institutions (Slaughter & Rhoades,
2004).

Economic globalization is also turning knowledge into a commodity; a

commodity whose value depends on the ease and security with which
it is created, stored and transferred from producers to users, as well on
its utility in the production of other goods and services. As knowledge
is being commodified, however, social, political and cultural
globalization turn knowledge production and distribution into symbolic
status and power resources with significant consequences. Seeking the
power and prestige of symbolic knowledge, higher education
institutions are encouraged to pursue internationalization of
recruitment faculty and students and to secure recognition for
knowledge production. Importantly, the Nielsen (2011) study shows,
however, that the faculty and administrators pursuing this
internationalization remain largely unconscious of how this activity is
reinforcing the very globalization forces that are reshaping their work
force and productive processes.

Globalization in academy also constitutes of a wide variety of

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components including higher education institutions, the academic

fields, scholars, and students as contributing factors. These
components each hold a different position in the identification of
globalization in higher education. In sum, this brief analysis of
globalization reveals that wide-ranging interconnectedness trends are
evident, and they directly have an influence on higher education
institutions (Altbach, 2004). Many of these institutions, however,
struggle as they have to respond to an ever- increasing set of global
challenges such as competition or handling increasing

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international populations while remaining confined by institutional

structural principles passed on from an earlier, more state-centered
world.

On the other hand, as distinguished from globalization with its

emphasis on worldwide conditions that influence perceptions of space,
mobility of actions, the nature of communication and orientations to
social interaction, internationalization focuses attention on the
intentional actions of individual, groups and social institutions as they
actively seek to cross national borders in pursuit of social, economic,
political or cultural benefits. Looking at higher education institutions,
Knight (1999) offers a working definition of internationalization in this
domain. She sees internationalization as a matter of integrating
transnational elements into the, “purpose, functions or delivery of post-
secondary education” (p. 2). That is, colleges and universities are
internationalizing their behavior when they reshape their purposes to
attract international students, to deploy their programs across national
borders, concentrate on internationally advantageous educational
program niches, restructure work roles or compensation systems to
recruit, retain or manage employees, etc.

Internationalization has become more complex and comprehensive in

recent decades. As noted during Congressional hearings on the
International Education Act (IEA) there is now a broad consensus that
internationalization of education encompasses three major areas: a)
movement of scholars and students seeking training and research, b)
convergence in curricular content, and c) structural arrangements that
provide cross-border technical assistance and educational cooperation
programs (IEA, 1966). In 1994, Kerr, Gate & Kawaoka gave less
emphasis to the structural components of international cooperation,
but otherwise reaffirmed these components of internationalization, In
research reports prepared for ACE (2002) and the International
Association of Universities (IAU) (2003) the mobility of students and
faculty were seen as the primary mechanisms of internationalization
(Knight, 2003).

b. Globalization as liberalization

Another misconception in the analyses of globalization is treating it as

synonymous to liberalization. Liberalization is commonly understood
as the removal of barriers and restrictions imposed by national
governments so as to create an open and borderless world economy.
In this sense, according to Scholte (2008:1475) globalization is realized
when national governments “reduce or abolish” regulatory measures
like trade barriers foreign exchange restrictions, capital controls and
visa requirements”.

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Let us talk of the impact of trade on employment level and structure in

the Philippines as example of this analysis. While globalization is
regarded as a key to economic development, it is also argued that it
increases concerns on poverty, threatens employment and living
standards of the poor. Similar to many other developing countries,
Philippines also attempted to integrate its economy in the global
economy through liberalizing its investment and trade regime within
the framework of the World Bank and the IMF. A review of literature
specifies that although a number of cross-country studies have
shown a positive association

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between trade openness and economic growth, the recent work

suggests that openness has robust link with long-term growth from the
1990s to 2010s globalization indicators. Thus, constructive effects of
liberalization on growth remain controversial. Evidence shows that
numerous highly attractive incentives offered to foreign investors,
Philippines' performance in attracting the foreign investment has been
improved. Also, despite the intensive trade liberalization, the trade
performance has been sufficient, though the stabilization initially
proved to be short-lived due to the slippages in reform procedure
transpired in the form of range of tax exemption and concession
leading to the execution and implementation of further stabilization
methods. The recurrent efforts to stabilize the economy together with
liberalization and persistent devaluation of domestic currency pushed
the economy in a good circle. These developments together with
liberalization contributed to higher per capita GDP growth in the
Philippines, reduction in income inequality, and lower unemployment,
but has no significant impact on the reduction of poverty during the
period of liberalization. This outcome is a consideration of the fact that
Philippines was asked by the IMF to cut its tariff rates quickly before
adopting to a new system of domestic taxation. The structural
adjustment programs designed by the World Bank/IMF take the
poverty as a residual issue. Hence, existing anti-poverty programs in
Philippines reached a small fraction of the poor because of poor
targeting. Thus, for future growth and poverty reduction strategies, the
issue of achieving higher growth must be mutual with overall pattern
of social progress and distribution.

Please check: https://www.bis.org/publ/bppdf/bispap100_q.pdf

The problem with this, Scholte explains that it confines the study of
globalization within the debate concerning the neoliberal
macroeconomic policies. On the other side of the discussion are the
business executives, academics and policymakers that have supported
neoliberal policies of liberalization, privatization, deregulation, and
fiscal restraint would in time bring prosperity, freedom, peace and
democracy for all. And on one side, the critics in the so-called anti-
globalization movement have opposed neoliberal policies arguing that
a laissez faire world economy produces greater poverty, social conflict,
inequality, cultural destruction, democratic deficits and ecological
damage (Ibid: 1475). In addition, this misconception carries with it a
political implication – that neoliberalism is the only available policy
framework for a truly global world. Finally, debates about the
advantages and disadvantages of laissez faire economics have gone
on for centuries without involving the language of globalization.

c. Globalization as universalization and westernization

In the case of international developments have different aspects in

today’s world so that some terms like “Universalization,”

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“Westernization” find interferences in social sciences and humanities

studies. But these terms can generally be distinguished by two
different categories of study as some experts have emphasized that
the above developments are in the process (Globalization) while the
others considered them on the project (To Globalize). The main
problem is that how we can find out the focal point of both studies
through which the accuracy of these claims to be verified to know
whether contemporary changes and evolutions are formed in a process
or a project. It seems that the focal point in the sphere of

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both claims (processes and projects) is the issue of “identity” since

both spheres agree that the concept of “identity” has passed a series
of changes and developments, although each one renders the path and
goal of “identity” changes by its own specific interpretations.

While some thinkers like Giddens (1991), Wallerstein (1999), Bhawuk

(2002), Sklair (1994-1999), and others consider expanding
communication and access to information as a modern phenomenon,
Robertson (1992), Waters (1995), and Held (1999) believe that the
history of this situation goes back to pre-modernity era. In this regard,
it can be traced that various definitions and conflicting views have
been insisted on massive expansion of communication along with the
broad and rapid access to information. Universalization denotes a
process of spreading various objects, practices, and experiences to the
different parts of the planet. Hence, there is globalization when things,
values, and practices have spread worldwide. This interpretation of
globalization entails homogenization of culture, politics, economy, and
laws. As homogenization progresses, globalization destroys several
indigenous cultures and practices. If Western modernity spreads and
destroys local cultures, this variant of universalization is known as
Westernization, neo- colonialism, Americanization, or
McDonalidazation.

Scholte (2008) notes that there are issues arising from these
misconceptions. First, universalization is not a new feature of world
history. The migration of the human species that took place a million
years ago is one great example of globalization in the ancient times.
The continuous spread of the major religions like Christianity and Islam
since their foundation constitutes another instance of globalization
which is not confined to contemporary period.

This is how Karl Marx and Friedrich Engels described in 1909 the
modernization of industry, trade and consumption - in a word
“civilization”, which they perceived as an expression of the progressive
role of bourgeoisie in history:

“The need of a constantly expanding market for its products

chases the bourgeoisie over the entire surface of the globe. It
must nestle everywhere, settle everywhere, and establish
connections everywhere.

The bourgeoisie has through its exploitation of the world market

given a cosmopolitan character to production and consumption in
every country. To the great chagrin of Reactionists, it has drawn
from under the feet of industry the national ground on which it
stood. All old/established national industries have been destroyed
or are daily being destroyed. They are dislodged by new
industries, whose introduction becomes a life and death question
for all civilized nations, by industries that no longer work up
indigenous raw material, but raw material drawn from the
remotest zones; industries whose products are consumed, not

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only at home, but in every quarter of the globe. In place of the old
wants, satisfied by the production of the country, we find new
wants, requiring for their satisfaction the products of distant lands
and climes. In place of the old local and national seclusion and
self-sufficiency, we have intercourse in every direction, universal
interdependence of nations. And as in material, so also in
intellectual production. The intellectual creations of individual
nations become common property. National one/sidedness and
narrow-mindedness become more and more impossible, and from
the numerous national and local literatures, there arises a world
literature.

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The bourgeoisie, by the rapid improvement of all instruments of

production, by the immensely facilitated means of
communication, draws all, even the most barbarian, nations into
civilization. The cheap prices of commodities are the heavy
artillery with which it batters down all Chinese walls, with which it
forces the barbarians’ intensely obstinate hatred of foreigners to
capitulate. It compels all nations, on pain of extinction, to adopt
the bourgeois mode of production; it compels them to introduce
what it calls civilization into their midst, i.e., to become bourgeois
themselves. In one word, it creates a world after its own image”.

Second, westernization is not only path that can be taken by

globalization as shown by the studies on oriental globalization. From
the fact that the term of westernization was shaped by an American
(the sociologist Daniel Lerner, from the Massachusetts Institute of
Technology), to the today’s explosion of Internet and of all services
afferent thereto (that are used in English language and convey the
values of the “American lifestyle”). The Westernization of the world
unfolded in a constant rhythm and in spite of the Soviet opposition; as
a matter of fact, the very denouement of the Cold War must be seen as
a product of the “westernization of the world”. But many people prefer
to talk about the “Americanization of the world”, leading to the anti-
American reactions.

Please check:
Marx, Engels, Manifesto of the Communist Party, ed. a IX-a, Political
Publishing House, Bucharest,1969, p. 40-41.

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Application (Let’s Do It!)

Learner Worksheet 2
Student Name: Score:

Course/ Year/ Section:

Case in Point: Tweeting and War; a Child’s Voice from Aleppo

https://www.bbc.com/news/av/world-middle-east-38073349

Bana Alabed was just three-years-old when the war started in Syria.
She was living in Aleppo with her family when bombs started to drop
around her. She says the worst moment for her is remembering when
her best friend Yasmin died after an air attack in their neighbourhood.

"They were digging and they held a body and it was Yasmin. She was
like sleeping, but she wasn't. She was dead."

In 2016, the city of Aleppo came under siege. The roads in and out
were blocked cutting off food and supplies. The family had stockpiled
some rice and macaroni and ate that every day as the bombs
continued to fall around them.

It was during this siege that Bana, with the help of her mom Fatemah,
started sending messages out, on social media.

"Today my school bombed, my home bombed, my friend died, and my

mom and me decided to tweeting," says Alabed.

Some of her tweets are shown in the next page.

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“I am very afraid I will die tonight. This bombs will kill me now”. –
Bana #Aleppo 1:00 AM – Oct 3, 2016

Alabed’s posts helped bring a seemingly intractable civil war into the
perspective of a child’s eyes view. It was December of 2016 when
Alabed was able to leave Aleppo during a ceasefire. She remembers
the moment when they finally got to eat something other than rice and
macaroni.

“It is the first time I ate chicken and I have stomach ache and I vomit
because I ate fruit and chicken and bread. And I feel happy very
much,” says Alabed.

Now Alabed lives in Turkey with her mom, dad and two younger
brothers. She’s back at school and wants to be a teacher. She still
misses Syria and hopes to be able to go home one day.

Meanwhile, her mom Fatemah marvels at how brave and strong her
daughter was during the war.

“You are a hero, Bana, and I am so proud to be your mother.”

Inquiry Based Learning Guide Questions:

1. How is war depicted in the eyes of a child as shown in the town

of Aleppo, Syria?
2. How are the interplay of Globalization through technology and
the horrors of war depicted in the case? How vital was this
correlation?
3. How did Globalization, through social media awakened and
moved people from around the world to the harsh conditions of
the people in Syria?
4. Consider the war in Marawi, if you were trapped in the midst of
the war and armed with mobile phone with a battery almost
dying out, give at least 3 tweets or FB posts that you would like
to tell the world at the moment and explain your reasons for
each.

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Submitting Your Work. If you do not have Internet Connectivity, neatly detach
this page from your module and submit via University Drop Box or by courier/
mail together with your other Learner Activity Worksheets once you reach the
prescribed Learning Checkpoint. If you have Internet connectivity, you may
answer directly on the online version of this worksheet through the University
Virtual Environment.

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Closure
Well done! You have just finished Lesson 2 of this module.

If you have questions or need to make clarifications take note of them

in the space provided below to ask your Course Professor through
direct messaging or through the University Virtual Environment (UVE).

Notes from this Lesson

Now that you have completed Lesson 2, let us move on to the next lesson
in this module.

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Just a Quick Recap!

o Globalization as the process leading to the growing interdependence of
nation - states across political, economic and social spheres. This
interrelationship is characterized by massive daily commercial
transactions, the homogenization of culture worldwide concurrently with
the resurgence of emphasize on ethnic and communal identity, some
erosion of the political clout of many states and finally, the increasing
reliance on communication technology to perform more tasks.
o Globalization here is defined as internationalization, that is, an enlarged
and growing flows or movement of trade, capital investment, people,
messages, information and ideas between countries. It is thus a growth of
international exchange and interdependence. This definition of
globalization is mainly economic in nature. Material exchanges are involved
and information is needed to be able to adhere to high economic exchange
and interests in terms of labor, capital, raw materials and so on.
o Globalization as liberalization refers to the process of removing or reducing
government
- imposed restrictions on movement of goods, services, capital and people
between countries in order to create an ‘open’, ‘borderless’ world
economy. This is in order to facilitate international economic integration.
Here liberalization serves as a vehicle for the success of globalization as
internalization. We can then say that globalization as liberalization is an
extension of globalization as internalization in that political wills and ideas
are used to extend territories in order to enhance free flow of trade, ideas,
people, messages, information and capital investment between countries.
o Lastly, the phenomenon of globalization can be defined as universalization.
Here, it refers mainly to a planetary synthesis of cultures, a process of the
worldwide spread of culture, ideas, objects and experiences. This is the
idea of globalization that this paper suggests as the philosophy for
globalization. The synthesis of cultures, ideas, objects and experiences
should be world –wide and really global. In this regard we can talk of
globalization of ideas, economics, politics, decolonization and policies that
will develop humanity. This does not rule out cultural identity as a world
phenomenon in that it is a philosophy which expects the global world to be
structured along respect for others, their cultures, ideas, and goals and de-
emphasizes of competition for the sake of it: That is, a universalization of
ideas that will lead to heterogenization of cultures and not homogenization.

In conclusion, we can say that globalization calls for a universalism that

envelope the whole world. A way of thinking that concerns not only the “I”
but the WE”, one that is not self centered but encompassing, that thinks of
the common -good, the effect of one’s action on all. This philosophy will help
to see what is good in globalization, the benefits and advantages of
contributing to globalization. There is no doubt that this will help globalization
however what is the essence of converging when there is nothing to
contribute, when the relationship is not symbiotic, when the relationship is
one of master servant or the inferior and the superior. The modification to the
philosophy of globalization is that it should have a contributory role, that is,
symbiotic in nature a role that calls for heterogenization of cultures, mutual
respect and gains. This is the sense in which Philippines can be called upon to
rethink globalization.

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NOTE: Now that you have completed all the lessons in this module, it is time
to assess your learning and move on to the next module.

Check your work and prepare for submission and assessment. The
succeeding page will give you instructions on completing your requirements
for this module.

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Learning Checkpoint
Module Assessment

Now that you have completed the first module, it is time to

submit your learning output and take the module assessment. A
checklist is provided for you below.

☐ Learning Worksheets 1-2

o For students with no Internet Connectivity use the

University Drop Box/ Courier/ Mail for submission.
Neatly detach only the Learner Worksheets from this
module.

o Answer the Learning Activities through the

University Virtual Environment (UVE) platform.

☐ Module Assessment

o For students with no Internet Connectivity, contact

your Course Professor to make arrangements on taking
the Module Assessment (Quiz).

o Take the quiz on the University Virtual

Environment (UVE) platform.

END OF MODULE 1

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If you have completed all the items on the

checklist, you may move on to the next
module.

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Module 2
THE STRUCTURES OF GLOBALIZATION
Module Overview
The previous unit introduced us to some basic concepts of
Globalization. We are now equipped with various definitions as well as
theoretical anchorage that extensively cover the dynamic and complex
nature of the concept. In this Module, we shall try to proceed with a
more detailed understanding of other important facets associated with
Globalization as we embark on a fuller appraisal of the structures of
Globalization. Susan Strange (as cited in Balaam & Dillman, 2014)
defines the underlying foundations of the system of the international
political economy into four structures: production and trade; money
and finance; security; and knowledge and technology. She describes
these structures as "webs" of complex arrangements constituted of
rules, conventions, norms that govern and facilitate the interactions of
state and non-state actors with each other (as cited in Balaam and
Dillman, 2014, p. 15). Module Two aims to introduce the reader to
these structures that govern political and economic relations at the
international level. The readers will be guided in learning on how
institutions such as the IMF, WB, GATT/WTO, and the UN were created
and transformed overtime at whose terms and whose expense, and
which groups are trying to change these structures.

Module Outcomes

By the end of this module, we hope to achieve the following objectives:

 Define economic globalization, and identify the actors that
facilitate economic globalization;
 Articulate a stance on global economic integration;
 Explain the effects of globalization on governments and the
relevance of the state amid globalization;
 Identify the institutions that govern international relations;
 Differentiate internationalism and globalism, and;
 Identify the challenges of global governance in the 21st century.

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Lesson 1
The Global Economy
Learning Outcomes
 Define economic globalization;
 Understand why nations trade with each other.
 Summarize the different theories explaining trade flows between nations,
and;
 Identify the policy instruments used by governments to influence
international trade flows.

Time Frame: 1 Week

Overview
Globalization involves the "broadening and deepening of interdependence among
peoples
and states” (Cohn, 2011: 6). It leads to an extension of geographic linkages,
encompassing societies and states and deepens interaction among them
such that policies and events of one state also affect distant ones.
Globalization is a multidimensional phenomenon comprised of political,
economic and cultural features. To dismiss the multifaceted nature of the
globalization would be inappropriate; the same goes as to how it would be
incorrect to dismiss the essential and crucial role that economic dimension
plays in as much as it as a driving force of globalization (Benczes, 2014).
Szentes (2003) defines
economic globalization as
"a process making the
world economy an
"organic system" by
extending transnational
economic processes and
economic relations to
more and more countries
and by deepening the
economic
interdependencies
among them" (p. 69).
Benczes (2014) follows
this definition and
emphasizes that
interpretation of the
current trends in the
world economy must be
understood in the global
context of an integrated
world economy.
Moreover, while the state
does not remain as the
sole unit of analysis; non-
state actors such as
international

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organizations,

non- governmental
organizations, and
multinational or
transnational
corporations
play significant roles in the international economic processes. This chapter
will primarily discuss the concept of economic globalization, the actors that
facilitate it and the modern global economic system it has built today.

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Activity (Let’s Get Started!)

In the COVID-19 crisis, governments have struggled to find the right national
policies— and also to coordinate an effective global response. They’ll have to
do better when it comes to confronting the biggest challenges of the age:
fracturing world economy. This activity focuses on the workings of the global
economy from a very macroeconomic viewpoint and looks at the impact of
globalization on individual economies.
 Discuss the impact of globalization and trade liberalization
(removal of trade barriers) on the global economy.
 Discuss the advantages and disadvantages of free trade and analyze
how technology has increased the quantity of world trade.
 Explain how globalization has led to variations in the standard of
living and differences in the level of development between nations.

Analysis (Let’s Think

About it!)
Now think about
the questions
below:
 Can trade in services
deliver for
developing nations?
 Is trade an
opportunity or threat
to workers? Does
trade create or
destroy jobs?
 If an economy overall
benefits from trade,
why do governments
often restrict trade?
 In what sense is it a
fallacy that exports
are good and imports
are bad?

Abstraction (Let’s Explore!)

In today’s borderless economy, the workings of the “invisible hand” have a

reach and strength beyond anything Adam Smith ever could have imagined.
In Smith’s day, economic activity took place on a landscape largely defined—
and circumscribed—by the political borders of nation-states: Ireland with its
wool, Portugal with its wines. Now, by contrast, economic activity is what
defines the landscape on which all other institutions, including political
institutions, must operate. Business and government are just beginning to live
with the consequences.

This inquiry begins by defining the term global economy. The global economy
is the result of the development of an economy that rises above borders and
is free moving between the different nation states of the world. A direct result
of an economy that defies borders or governments is that it has openly called

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into question not only how much room governments have to maneuver but
how much they can affect such an economy in the future. States are
beginning to see themselves playing a diminished role when it comes to their
own economies (Shively, 2012). Although this economic reallocation of power
may be symbolic in nature it is representative of a loss of control not only in
the economic arena

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but also potentially in the social arena as the concept of “globalization” takes
a hold on the world. In this particular case, there are whole areas of economic
policy in which states may wish to act on, but in the end is ultimately proven
impossible for it to control. A state remains a state and its governments
remain in power of said state however the range of things the state has the
capacity to control is greatly diminished and part that diminishment can be
seen as a diminishment of sovereignty. In this sense, while globalization has
led to the convergence of more developed economies, many argue that the
welfare gap between the more and less developed economies is growing.
‘Global economics’ looks at how trade has shaped the global economy and
considers the costs and benefits of free trade – it also provides an analysis of
the major problems facing the global economy in the 21st Century, and
provides an analysis of the financial crisis and the rise of powerful trading
blocs.

But why do countries trade? Countries trade with each other when, on their
own, they do not have the resources, or capacity to satisfy their own needs
and wants. By developing and exploiting their domestic scarce resources,
countries can produce a surplus, and trade this for the resources they need.
Goods and services are likely to be imported from abroad for several reasons.
Imports may be cheaper, or of better quality. They may also be more easily
available or simply more appealing than locally produced goods. In many
instances, no local alternatives exist, and importing is essential. This is
highlighted today in the case of Japan, which has no oil reserves of its own,
yet it is the world’s fourth largest consumer of oil, and must import all it
requires.

The production of goods and services in countries that need to trade is based
on two fundamental principles, first analyzed by Adam Smith in the late 18th
Century (in The Wealth of Nations, 1776), these being the division of labor
and specialization. In its strictest sense, a division of labor means breaking
down production into small, interconnected tasks, and then allocating these
tasks to different workers based on their suitability to undertake the task
efficiently. When applied internationally, a division of labor means that
countries produce just a small range of goods or services, and may contribute

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only a small part to finished products sold in global markets. For example, a
bar of chocolate is likely to contain many ingredients from numerous
countries, with each country contributing, perhaps, just one ingredient to the
final product.

On the other hand, specialization is the second fundamental principle

associated with trade, and results from the division of labor. Given that each
worker, or each producer, is

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given a specialist role, they are likely to become efficient contributors to the
overall process of production, and to the finished product. Hence,
specialization can generate further benefits in terms of efficiency and
productivity.

Specialization can be applied to individuals, firms, machinery and technology,

and to whole countries. International specialization is increased when
countries use their scarce resources to produce just a small range of products
in high volume. Mass production allows a surplus of goods to be produced,
which can then be exported. This means that goods and resources must be
imported from other countries that have also specialized, and produced
surpluses of their own.

Countries specialize in producing commodities where they have an advantage

in production over other countries. How do we know which commodities
countries will specialize on?

a. Principle of absolute advantage – supposed there are two countries, A and B,

producing only two commodities, potatoes and clothes. Let us assume that
given the raw materials, the productivity of labor in producing potatoes
and clothes determines the quantity of commodities actually produced.
How will trade occur?

In general, trade between the two countries will likely take place of country A
can produce one good more efficiently than country B and country B can
produce the other good more efficiently than country A. Consider table 2.1

Country Sack of Pieces

potatoes of
clothes
A 6 4
B 3 12
Table 2.1 Output of potatoes and clothes by a worker per
day

Country A can produce six sacks of potatoes for every worker it employs in
one day. On the other hand, it can produce four pieces of clothes per day if
that worker was employed in the clothes industry. Looking at country B, we
see that each of its workers can produce 3 sacks of potatoes or twelve pieces
of clothes per day. It is obvious that country A is more efficient in producing
potatoes that country B since it can produce more sacks of potatoes for every
worker it employs than country B can. Country B is more efficient in the
production of clothes than country A since it can produce more pieces of
clothes for every worker it hires than country A can. We see from our
example that country A has an absolute advantage over country B in the
production of potatoes and country B has an absolute advantage over country
A in the production of clothes. We can say that a country has absolute
advantage in one commodity over another country if that country can produce
the commodity more efficiently than the other country can. If the two
countries are allowed to trade, countries A and B will specialize in producing
commodities that each can produce more efficiently relative to the other
country. Why?

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Suppose that each country is endowed with units of labor. Countries A and B
have the option of either specializing in one commodity or dividing their labor
resources for the production of both potatoes and clothes. Let us examine the
case where the countries are not allowed to trade. This means that both
commodities to satisfy domestic demand. To make things simple, let us
assume that preferences are such that labor is divided equally between the
two industries in each country. Table 2.2 shows the production schedules of
countries A and B for potatoes and clothes.

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Country Labor Potatoes Labor Clothes

Allocated produced Allocated produced
(Potatoes) (Clothes)
A 5 30 5 20
B 5 15 5 60
Total 10 10
Table 2.2 Production schedule for potatoes and clothes
without trade

Country Labor Potatoes Labor Clothes

Allocated produced Allocated produced
(Potatoes) (Clothes)
A 10 60 0 0
B 0 0 10 12
0
Total 10 10
Table 2.3 Production schedule for potatoes and clothes
with trade

In a situation without trade, the amount of potatoes available for country A is

30 while the amount of clothes available is 20. For country B, available
potatoes is 15 sacks and clothes produced is 60 pieces. Now suppose that the
countries are allowed to trade and each country specializes in the commodity
where it is relatively more efficient in production. Country A, therefore, will
specialize in the production of potatoes and country B will specialize in
production of clothes. Table 2.3 shows the resulting production schedule with
specialization and trade.

Notice from table 2.3 that potato production for country A doubles from 30 to
60 sacks with the reallocation of labor from clothes to potato production. For
country B, the production of clothes also doubles from 60 to 120 pieces.
Suppose that the countries trade with each other with the assumption that
one piece of cloth exchanges for one sack of potatoes. Will both countries be
better off? If country A exports the additional sacks of potatoes it produces
(30 sacks) and exchanges them for clothes, then more clothes would be
available for the domestic market of country A. The same thing will be true
for country B. More potatoes are now available for domestic market of
country B. Clothes available in country A increase from 120 pieces to 30
pieces while potatoes available in country B expand from 15 sacks to 30
sacks. Specialization and trade expand production and consumer choices
because more commodities become available.

b. Principle of comparative advantage - David Ricardo took Adam Smith’s theory

one step further by exploring what might happen when one country has an
absolute advantage in the production of all goods. Smith’s theory of
absolute advantage suggests that such a country might derive no benefits
from international trade. In his 1817 book Principles of Political Economy,
Ricardo showed that this was not the case. According to Ricardo’s theory of
comparative advantage, it makes sense for a country to specialize in the
production of those goods that it produces most efficiently and to buy the
goods that it produces less efficiently from other countries, even if this
means buying goods from other countries that it could produce more
efficiently itself.

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We have structured the above situation in such a way that one country would
have absolute advantage in one commodity and the other country will have
absolute advantage on the other commodity. What if one country has
absolute advantage in both commodities? Would trade and specialization still
occur? Obviously a country like the United States has absolute advantage
over the Philippines in almost all commodities. But why is it that

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trading still occurs? Let us take the case of two countries C and D with rice and
shoes as the commodities. Table 2.4 shows the productivity of one unit of labor
per day.

Country Rice Shoes

produced produced
C 12 6
D 2 4
Table 2.4 Output of rice and shoes by a worker per day

According to table 2.4, in country C, a worker can produce 12 sacks of rice or

6 pairs of shoes for a day’s work. In country D, one worker can produce two
sacks of rice or four pairs of shoes. Thus, country C can produce both
commodities more efficiently relative to country D. Clearly, we can see that
country C has absolute advantage in producing rice and shoes because it can
produce more of both commodities per unit of labor than country
D. Would there be benefits accruing to both countries if they were to trade?
What would be their bases for trading?

Note that a worker in country C can produce six times as many sacks of rice
as a worker in country D. However, country C can only produce one and a half
times more pairs of shoes. Country C is more efficient in producing rice than
shoes while country D is more efficient in the production of shoes relative to
the production of rice. Country C has comparative advantage in the
production of rice while country D has comparative advantage in the
production of shoes. To further illustrate the concept of comparative
advantage, let us look at the opportunity costs for each country in producing
the two commodities. To produce 6 more pairs of shoes, country C has to give
up producing 12 sacks of rice. Thus, the opportunity cost of producing one
pair of shoes, country C is two sacks of rice. In country D, to be able to
produce 4 additional pairs of shoes, it must sacrifice producing 2 sacks of
rice. In other words, the opportunity cost in producing one more pair of shoes
is only ½ sack of rice. Country D has lower opportunity cost in producing
shoes than country C. Hence, country D has comparative advantage over
country C in the production of shoes. We say that a country has comparative
advantage in the production of a commodity if that country can produce that
commodity more efficiently (or at a lower opportunity costs) than another
commodity relative to another country.

Each country will specialize in the production of a commodity where it has

comparative (not absolute) advantage. Country C will specialize in the
production of shoes. The basis, therefore, for specialization and trade, in
general, is comparative advantage and not absolute advantage. Absolute
advantage could only be used as a basis in special cases like one we ha
earlier. Thus, countries specialize in and export those goods and services
where they have comparative advantage and import those commodities
where they do not have comparative advantage. This is the law of
comparative advantage.

What would the countries gain from trading? Using the same example, let us
again assume that each country is endowed with ten units of labor. Suppose
initially, that there is no trade. Table 2.5 shows each country’s production
without trade and specialization.

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Country Labor used Rice Labor used Shoes

for rice produced for shoe produced
production production
C 8 96 2 12
D 4 8 6 24
Table 2.5 Production schedule for rice and shoes without trade

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Country Rice Shoes

produced produced
C 120 0
D 0 40
Table 2.6 Production schedule for rice and shoes with trade

Without trade, country C produces 96 sacks of rice and 12 pairs of shoes.

Country D produces 8 sacks of rice and 24 pairs of shoes. If the countries
were to trade and specialize, will they be better off? Table 2.6 gives the
situation where trading and specialization occurs.
With specialization, country C produces 120 sacks of rice as compared to 96
sacks without specialization. Country D, on the other hand, is able to produce
40 pairs of shoes as compared to only 24 pairs before. Assuming again that
all the increase in the production of each commodity brought about by
specialization is exported at the rate of one sack of rice for one pair of shoes.
We see that shoes available in country C increases by 4 (16- 12) while rice for
country D increases by 8 (16-8) sacks compared to pre- trade/specialization
levels. Again, production and consumption possibilities are expanded.

After all the adjustments in international trade have taken place, assuming
that there are no barriers to trade like tariffs and that there are no
transportation costs, we will see that prices of rice and shoes equalize across
countries. Rice will cost the same in country C and D and so will shoes. Our
example does not permit us to calculate the exact prices of the commodities.
However, we are sure that the trading prices of the goods will be between the
pre-trade prices.

The advantages of trade

International trade brings a number of valuable benefits to a country, including:

 The exploitation of a country’s comparative advantage, which means

that trade encourages a country to specialize in producing only those
goods and services which it can produce more effectively and
efficiently, and at the lowest opportunity cost.
 Producing a narrow range of goods and services for the domestic and
export market means that a country can produce in at higher volumes,
which provides further cost benefits in terms of economies of scale.
 Trade increases competition and lowers world prices, which provides
benefits to consumers by raising the purchasing power of their own
income, and leads a rise in consumer surplus.
 Trade also breaks down domestic monopolies, which face competition
from more efficient foreign firms.
 The quality of goods and services is likely to increases as competition
encourages innovation, design and the application of new technologies.
Trade will also encourage the transfer of technology between
countries.
 Trade is also likely to increase employment, given that employment is
closely related to production. Trade means that more will be employed
in the export sector and, through the multiplier process, more jobs will
be created across the whole economy.

The disadvantages of trade

Despite the benefits, trade can also bring some disadvantages, including:

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 Trade can lead to over-specialization, with workers at risk of losing their

jobs should world demand fall or when goods for domestic consumption
can be produced more

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cheaply abroad. Jobs lost through such changes cause severe

structural unemployment.
 Certain industries do not get a chance to grow because they face
competition from more established foreign firms, such as new infant
industries which may find it difficult to establish themselves.
 Local producers, who may supply a unique product tailored to meet the
needs of the domestic market, may suffer because cheaper imports
may destroy their market. Over time, the diversity of output in an
economy may diminish as local producers leave the market.

The Pattern of International Trade

The theories of Smith, Ricardo, and Heckscher–Ohlin help explain the pattern
of international trade that we observe in the world economy. Some aspects of
the pattern are easy to understand. Climate and natural resource
endowments explain why Ghana exports cocoa, Brazil exports coffee, Saudi
Arabia exports oil, and China exports crawfish. However, much of the
observed pattern of international trade is more difficult to explain. For
example, why does Japan export automobiles, consumer electronics, and
machine tools? Why does Switzerland export chemicals, pharmaceuticals,
watches, and jewelry? Why does Bangladesh export garments? David
Ricardo’s theory of comparative advantage offers an explanation in terms of
international differences in labor productivity. The more sophisticated
Heckscher–Ohlin theory emphasizes the interplay between the proportions in
which the factors of production (such as land, labor, and capital) are available
in different countries and the proportions in which they are needed for
producing particular goods. This explanation rests on the assumption that
countries have varying endowments of the various factors of production.
Tests of this theory, however, suggest that it is a less powerful explanation of
real-world trade patterns than once thought.

One early response to the failure of the Heckscher–Ohlin theory to explain the
observed pattern of international trade was the product life-cycle theory.
Proposed by Raymond Vernon, this theory suggests that early in their life
cycle, most new products are produced in and exported from the country in
which they were developed. As a new product becomes widely accepted
internationally, however, production starts in other countries. As a result, the
theory suggests, the product may ultimately be exported back to the country
of its original innovation.

In a similar vein, during the 1980s, economists such as Paul Krugman

developed what has come to be known as the new trade theory. New trade
theory (for which Krugman won the Nobel Prize in economics in 2008) stresses
that in some cases, countries specialize in the production and export of
particular products not because of underlying differences in factor
endowments but because in certain industries the world market can support
only a limited number of firms. (This is argued to be the case for the
commercial aircraft industry.) In such industries, firms that enter the market
first are able to build a competitive advantage that is subsequently difficult to
challenge. Thus, the observed pattern of trade between nations may be due
in part to the ability of firms within a given nation to capture first-mover
advantages. The United States is a major exporter of commercial jet aircraft
because American firms such as Boeing were first movers in the world
market. Boeing built a competitive advantage that has subsequently been

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difficult for firms from countries with equally favorable factor endowments to
challenge (although Europe’s Airbus has succeeded in doing that). In a work
related to the new trade theory, Michael Porter developed a theory referred to
as the theory of national competitive advantage. This attempts to explain
why particular nations achieve international success in particular industries.
In addition to factor endowments, Porter points out the importance of country
factors such as domestic demand and domestic rivalry in explaining a
nation’s dominance in the production and export of particular products.

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Trade Theory and Government Policy

Although all these theories agree that international trade is beneficial to a
country, they lack agreement in their recommendations for government
policy. Mercantilism makes a case for government involvement in promoting
exports and limiting imports (and Donald Trump seems to advocate such
policies). The theories of Smith, Ricardo, and Heckscher– Ohlin form part of
the case for unrestricted free trade. The argument for unrestricted free trade
is that both import controls and export incentives (such as subsidies) are self-
defeating and result in wasted resources. Both the new trade theory and
Porter’s theory of national competitive advantage can be interpreted as
justifying some limited government intervention to support the development
of certain export oriented industries.

Evidence for the Link between Trade and Growth

Many economic studies have looked at the relationship between trade and
economic growth. In general, these studies suggest that as predicted by the
standard theory of comparative advantage, countries that adopt a more open
stance toward international trade enjoy higher growth rates than those that
close their economies to trade. Jeffrey Sachs and Andrew Warner created a
measure of how “open” to international trade an economy was and then
looked at the relationship between “openness” and economic growth for a
sample of more than 100 countries from 1970 to 1990. Among other findings,
they reported:

We find a strong association between openness and growth, both within the
group of developing and the group of developed countries. Within the group of
developing countries, the open economies grew at 4.49 percent per year, and
the closed economies grew at 0.69 percent per year. Within the group of
developed economies, the open economies grew at
2.29 percent per year, and the closed economies grew at 0.74 percent per year.

A study by Wacziarg and Welch updated the Sachs and Warner data through
the late 1990s. They found that over the period 1950–1998, countries that
liberalized their trade regimes experienced, on average, increases in their
annual growth rates of 1.5–2.0 percent compared to pre-liberalization times.
An exhaustive survey of 61 studies published between 1967 and 2009
concluded: “The macroeconomic evidence provides dominant support for the
positive and significant effects of trade on output and growth.” The message
seems clear: Adopt an open economy and embrace free trade, and your
nation will be rewarded with higher economic growth rates. Higher growth will
raise income levels and living standards. This last point has been confirmed
by a study that looked at the relationship between trade and growth in
incomes. The study, undertaken by Jeffrey Frankel and David Romer, found
that on average, a 1 percentage point increase in the ratio of a country’s
trade to its gross domestic product increases income per person by at least
0.5 percent. For every 10 percent increase in the importance of international
trade in an economy, average income levels will rise by at least 5 percent.
Despite the short-term adjustment costs associated with adopting a free
trade regime, which can be significant, trade would seem to produce greater
economic growth and higher living standards in the long run, just as the
theory of Ricardo would lead us to expect.

Trading with Many Commodities among Many Countries

To simplify things, we have confined ourselves to a two-country, two-
commodity case in discussing international trade. This, obviously, is not the

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situation in the real world. The Philippines has more than one trading partner
and our exports are not just confined to one good like handicrafts. Also,
trading nowadays, is usually done between regions. Will our principles still be
applicable to reality? The many goods-many countries case is, in general, no
different from our previous example. Countries simply have to rank
commodities according to which good the country has the most comparative
advantage down to the good with which it has the least comparative
advantage. The law of comparative advantage still holds. Countries will
export commodities where they have comparative advantage in production
over its trading partner. The question of which commodity to

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export given a ranking of comparative advantage, however, is another area of

concern. Generally, the choice would depend on the demand conditions
prevailing in the international market. If demand is high for a commodity and
if the country has comparative advantage in that commodity, it will export
that good. What about the case of many countries? This could still be treated
like a two-country case. Trade occurs between the exporting country on one
side and the rest of the world on the other. It is just like trading with a very
big country.

Another fact that we have to contend with in reality is the truth that countries
do not only trade bilaterally (i.e., between two countries). In fact, most of the
trading that occurs in the international market is multilateral trade (i.e.,
among many countries). How does this affect our principle of comparative
advantage? Countries will still export commodities where they do not have
comparative advantage regardless of the origin of those imports. We must be
careful, though, in making generalizations about the impact of trade. While it
is true that countries will gain from trade, matters of policy like what to do
with labor that is displaced as industries shut down because specialization
cannot be answered by our theory. But as we have seen, trade is better than
no trade at all. Policymakers only need to put up a system of safety nets so
that the gains from trade will be maximized.

Trade: Free Trade Vs Protectionism Overview

One view says that we should make it as easy as possible for goods and
services to move between countries. This approach is based on the argument
that more trade makes us wealthier and is therefore a good thing. It is known
as free trade.

Another approach says that we should restrict trade. We might do this to

protect certain jobs. We might think that we need certain industries – such as
food production or steel- making – just in case things go wrong in the wider
world. We might want to restrict imports from countries with lower labor or
environmental standards so they can’t undercut our industries. This approach
is known as protectionism.

Many economists agree that some restrictions on trade are desirable, but that
we should be careful, as such restrictions can make us poorer overall. For
example, limits on agricultural imports may be good for British farmers, but
they also increase food prices.

The following sections set out some of the arguments in more detail.

Arguments for Free Trade

There are several key arguments in favor of free trade:
 Free trade increases the size of the economy as a whole. It allows goods
and services to be produced more efficiently. That’s because it
encourages goods or services to be produced where natural resources,
infrastructure, or skills and expertise are best suited to them. It increases
productivity, which can lead to higher wages in the long term. There is
widespread agreement that rising global trade in recent decades has
increased economic growth.
 Free trade is good for consumers. It reduces prices by eliminating tariffs
and increasing competition. Greater competition is also likely to improve
quality and choice. Some things, such as tropical fruit, would not be

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available in the UK without trade.

 Reducing non-tariff barriers can remove red tape, thus reducing the cost
of trading. If companies that trade in several countries have to work with
only one set of regulations, their costs of ‘compliance’ come down. In
principle, this will make goods and services cheaper.
 In contrast, protectionism can result in destructive trade wars that
increase costs and uncertainty as each side attempts to protect its own
economy. Protectionist rules can tend to favor big business and vested
interests, as they have the resources to lobby most effectively.

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Arguments for Protectionism

While free trade increases the size of the economy as a whole, it isn’t always
good for everyone:

 As more countries experience industrial development, traditional domestic

industries can decline. In the UK, for example, the shipbuilding industry
has declined in the face of international competition since the 1950s and
currently steel production faces increasing competition. Protectionism can
help preserve jobs in these sectors, or at least slow the process of change.
 Protectionism can also help build up new industries. In sectors with high
start-up costs, new firms might find it difficult to compete if there is not
support from government in the form of tariffs or subsidies. Once they
have become competitive, such barriers can be removed.
 Protectionism can be used to safeguard ‘strategic’ industries such as
energy, water, steel, armaments and food. For example, ‘food security’
may be seen as important so that we can feed ourselves if something
terrible happens to disrupt the system of world trade.
 Some people worry that free trade deals can lead to a lowering of
standards. Such deals might require us to let in goods and services even
though they don’t meet our standards, which might then be cheaper than
those made by domestic industries. For example, some people have been
worried recently that a free trade deal with the US might let in imports of
chlorine-washed chicken. There might also be pressure to reduce our
standards for workers’ rights or environmental protection so that our
companies can compete with companies in countries that have lower
standards.

NOTE: Please read the attached file in the UVE.

re: Global Outlook–Pandemic–Recession.pdf

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Application (Let’s Do It!)

Learner Worksheet 3
Student Name: Score:

Course/ Year/ Section:

1. Give at least ten partners of the Philippines?

2. In what commodities do you think the Philippines has comparative

advantage? Why?

3. Does the Philippines practice protectionism? In what ways?

4. Why do countries adopt protectionist policies?

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Submitting Your Work. If you do not have Internet Connectivity, neatly detach
this page from your module and submit via University Drop Box or by courier/
mail together with your other Learner Activity Worksheets once you reach the
prescribed Learning Checkpoint. If you have Internet connectivity, you may
answer directly on the online version of this worksheet through the University
Virtual Environment.

Closure
Well done! You have just finished Lesson 1 of this module.

If you have questions or need to make clarifications take note of them in the
space provided below to ask your Course Professor through direct messaging
or through the University Virtual Environment (UVE).

Now that you have completed Lesson 1, let us move on to the next lesson
inNotes from this Lesson
this module.

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Lesson 2
Market Integration
Learning Outcomes
 Identify the actors that facilitate economic globalization;
 Explain the role of international financial institutions in the creation
of a global economy, and;
 Equip students with 21" century learning and develop higher order
thinking skills that will lead towards a deeper understanding of Global
economic structures as well as articulate a stance on global economic
integration and how it impacts the Philippines.

Time Frame: 1 Week

Overview

The social institution that has one of the biggest impacts in society is the
economy. You might think of the economy in terms of number – number of
unemployed, gross domestic product (GDP), or whatever the stock market is
doing today. While we often talk about it in numerical terms, the economy is
composed of people. It is the social institution that organizes all production,
consumption, and trade of goods in the society. There are many ways in
which products can be made, exchanged, and used. Think about capitalism or
socialism. These economic systems – and the economic revolutions that
created them – shape the way people live their lives.

Economic systems vary from one society to another. But in any given
economy, production typically splits into three sectors. The primary sector
extracts raw materials from natural environments. Workers like farmers or
miners fit in the primary sector. The secondary sector gains the raw materials
and transforms them into manufactured goods. This means, for example, that
someone from the primary sectors extracts oil from the earth then someone
from the secondary sector refines the petroleum to gasoline. Whereas, the
tertiary sector involves services rather than goods. It offers services by doing
things rather than making things. Thus, economic system is more
sophisticated or at least, more sophisticated than the way things used to be
for much of human history.

This lesson will show the

contributions of the different
financial and economic
institutions that facilitated the
growth of the global economy.
The history of the global
market will be discussed by
looking at the different
economic revolution. The
growth and dynamics of
multinational corporations that
are emerging in today’s world
economy will also be

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examined.

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Activity (Let’s Get Started!)

At this point, markets will be assessed through your own perspective provided
that you already had a good grasp of the different concepts in economic and
financial globalization. This activity will help you understand the benefits and
harms of global economic processes, structures, and technologies.
 Analyze the "global" nature of multinational corporations.
 Do you think the positive effects of multinational corporations
outweigh the negative effects? Why or why not?
 What do you think are the ways to lessen, if not eliminate, the
negative consequences of multinational corporations?
Analysis (Let’s Think About it!)
Now think about the questions below:

 What does the world think about globalization?

 Are multicultural/multi-ethnic societies more positive about
globalization than monocultural/monoethnic societies?
 Why is Global Integration necessary in a capitalist economy/

Abstraction (Let’s Explore!)

The Post-World War II Economic System and The Role of international financial
institutions in the creation of a global economy -The Bretton Woods Conference
in July 1944, formally known as the United Nations Monetary and Financial
Conference, marked the birth of a new international economic framework.
Delegates from 44 countries convened in Bretton Woods, New Hampshire,
United States and agreed on the creation of two international economic
organizations: International Monetary Fund (IMF) and World Bank or the
International Bank for Reconstruction and Development. These institutions
are known as the Bretton Woods Institutions. It also includes a third entity,
the General Agreement on Tariffs and Trade
(GATT). Albeit created in 1947
after the Bretton Woods
Conference, this much more
informal institution than the IMF
and WB served as the primary
global trade organization. The
postwar institutional framework
was created to address the
problems that occurred during
the interwar period, trade
protectionism and exchange
controls, which led to the Great
Depression and the World War II
(Cohn, 2011).

The Bretton Woods institutions were

known keystone international economic organizations (KIEOs) due to their
central role in trade, development, and monetary relations (Cohn, 2011;
Jacobson and Oksenberg, 1990). The functions of these institutions will be
discussed in detail, as well as how their roles have changed in the

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contemporary period.

International Monetary Fund (IMF) - The primary purpose of the IMF is to

promote global monetary cooperation and international financial stability. The
institution, created in 1945, was designed to monitor the system of pegged
or fixed exchange rates. In this system,

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official exchange rates of currencies were related to gold and U.S. dollar. It
was designed to prevent the trade wars that occurred during the interwar
period due to competitive devaluations of states of their currencies (Cohn,
2011). When states suffer from balance- of-payments deficits, they reduce
the value of their currencies to boost exports with cheaper products and
decrease imports. A balance-of-payment deficit occurs when a country spends
more than it takes in. The role of IMF is to provide short-term loans to prevent
devaluation and retain the state's fixed exchange rate in instances of the
temporary balance of payment deficits. The institution was designed for the
mandate of ensuring international financial cooperation and reinforces
international trade (Benczes, 2014). IMF's role changed when the fixed-
exchange-rate system collapsed and was replaced by floating exchange rates
in 1971.It still had the role of providing liquidity but has more focus on
countries tied to major currencies instead of countries supplying them
(Garber, 1993).

The IMF is an institution

based on quotas which
determine the maximum
amount of financial
resources that a state is
obliged to provide to the
fund. The quota of states
reflects their relative
position is the global
economy and determines
the voting power of states
in IMF decisions. The IMF
has since been dominated
by the West and has been
much criticized for
marginalizing the South
and failing to include
emerging economies in its
decision-making. The
Global Financial Crisis of
2007-2009 has prompted
the IMF to undergo a
reform process consisting
of two elements: (1) IMF
resource expansion to
enhance capacity for
financial crisis
management, and (2)
increase in quota and
voting
power of emerging economies within the institution (Lesage et al., 2013). The
2010 reform structure package involved doubling of the IMF quota, shifting of
quota shares; and preserved quota and voting shares of poorest member
states. The reform shifted more than six percent from over-represented to
under-represented member countries, and to developing and dynamic
emerging market and reshuffling seats of the Executive Board to both restore
the institution' legitimacy and crisis management capacity.

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Lesage et al. (2013) explain the outcome of the reform negotiations as a

trade- off between money and power. It was an agreement particularly
between the BRIC grouping among Brazil, Russia, India, and China to
contribute to the Fund's resources in exchange to quota and governance
reforms about the redistribution of the quota and Executive Board seats from
the West to the South. The 2010 reform, however, has not led to the long-
expected reform and strengthening of the IMF. While the IMF resources have
tripled with the doubling of the quota complemented by the New
Arrangements to Borrow (NAB), a supplementary source of funding from
countries that are not tied to voting-rights, there are still doubts on the
capacity of the Fund to bailout larger countries (Lesage et.al., 2013).

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Moreover, the quota and governance reform have not been revolutionary,
with the status quo of power relations remain intact as the USA remains to
vote shares constituting its veto power but not in the case of the BRIC
countries as a bloc (Lesage et al., 2013).

International Bank for Reconstruction and the Development or World Bank - While
IMF was designed to provide short-term loans to aid countries facing balance-
of-payments deficits, the role of International Bank for Reconstruction and
Development (the World Bank) was created to grant long-term loans for the
economic development of less developed countries and the
reconstruction of war-torn
countries in Europe. The World
Bank today is made up of two
institutions. One is the
International Bank for
Reconstruction and
Development (IBRD) which
provides International
Development Association (IDA)
which grants credits and loans
to lowest income countries. The
World Bank is only a
component of the World Bank
Group which is comprised of
three other institutions:
International Finance Corporation (IFC), Multilateral Investment Guarantee
Agency (MIGA), and the International Centre for Settlement of Investment
Disputes.

The renewed role of the World Bank in the modern economy is to reduce
extreme poverty while addressing the imperfections of global capital markets
continues to be secondary importance (Clemens & Kremer, 2016), Donor
countries with recipient countries that involve policy changes. Its policy
influence is grounded on the legitimacy and credibility enhanced by its
commitment to reducing poverty, along with its technocratic staff and its
status as a multilateral organization (Clemens & Kremer, 2016).

Contrary to the Bank's supposed normative commitment, the Bank's impact

on growth outcomes has been contested. Easterly (2005) finds severe
macroeconomic distortions suffered by loan recipients and no statistical
evidence of per capita growth improving from increased structural adjustment
lending. More than that, the programs have been accused of worsening the
state of poverty and underdevelopment of recipient countries. Shandra et al.
(2011) find empirical evidence that the Bank's structural adjustment resulted
in adverse effects on children in Sub-Saharan Africa. Furthermore, there
exists robust evidence in the literature that structural adjustment programs
not only of the Bank but also other international financial institutions such as
IMF, and the African Development Bank (ADB) have detrimental effects on
child and maternal health in the developing world (Thomson, Kentikelenis, &
Stubbs, 2013). Such policy reforms significantly undermine access to health
care and adversely impact on income and food availability which are social
determinants of health (Thomson, Kentikelenis, & Stubbs, 2013).

General Agreement on Tariffs and Trade (GATT) and the World Trade Organization

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(WTO) - The purpose of the GATT was to avoid trade wars by raising
protectionist barriers as witnessed during the interwar period. The forum was
created years after the Bretton Woods due to the refusal of the U.S. to sign
the Havana Charter that would create an International Trade Organization
(ITO) at par with that of the IMF and GATT. The agricultural sector in the US
feared for losses that may be brought by the ITO and pressures in the US
Congress resulted to the failure of reaching an agreement, thus resulting to
the informal GATT. States who took part in the GATT were "contracting
parties" instead of formal members due to the nature of the agreement as a
provisional treaty (Cohn, 2011: 23).

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While it was effective in

liberalizing trade, GAT T was
unable to address the
expansion of trade in services,
investment, and intellectual
property. It was also incapable
of providing a strong and
efficient system for dispute
settlement. GATT was
eventually superseded by a
more formal World Trade
Organization (WTO) in 1995
that managed to address these
issues.

The establishment of a global

economic order was heavily
influenced by the Western
developed countries. The South, comprising of less developed economies,
were marginalized while the Soviet Union refused to participate, with
attempts to create an alternative economic framework and institutions. Less
developed economies The South and the Soviet Union, however, gradually
became integrated into the liberal economic order at the end of the twentieth
century.

The Organization for Economic Cooperation and Development (OECD), the

Organization of Petroleum Exporting Countries (OPEC), and the European Union
(EU) - The most encompassing club of the richest countries in the world is the
Organization for Economic Cooperation and Development (OECD) with 35
member states as of 2016, with Latvia as its latest member. It is highly
influential, despite the group having little formal power. This emanates from
the member countries' resources and economic power. In 1960, the
Organization of Petroleum Exporting Countries (OPEC) was originally
comprised of Saudi Arabia, Iraq, Kuwait, Iran, and Venezuela. They are still
part of the major exporters of oil in the world today. OPEC was formed
because member countries wanted to increase the price of oil, which in the
past had a relatively low price and had failed in keeping up with inflation.
Today, the United Arab Emirates, Algeria, Libya, Qatar, Nigeria, and Indonesia
are also included as members.

The European Union (EU) is made up of 28 member states. Most members in

the Eurozone adopted the euro as basic currency but some Western European
nations like the Great Britain, Sweden, and Denmark did not. Critics argue
that the euro increased the prices in Eurozones and resulted in depressed
economic growth rates, like in Greece, Spain, and Portugal. The policies of the
European Central Bank are considered to be a significant contributor in these
situations.

North American Free Trade Agreement (NAFTA) - (NAFTA) is a trade pact

between the United States, Mexico, and Canada created on January 1, 1994
when Mexico joined the two other nations. It was first created in 1989 with
only Canada and the United States as trading partners. NAFTA helps in
developing and expanding world trade by broadening international

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cooperation. It also aims to increase cooperation for improving working

conditions in North America by reducing barriers to trade as it expands the
markets of the three countries.

The creation of NAFTA has caused manufacturing jobs from developed nations
(Canada or the United States) to transfer to less developed nations (Mexico)
in order to reduce the cost of their products. In Mexico, producer prices
dropped and some two million farmers were forced to leave their farms.
During this time, consumer food prices rose, causing 20 million Mexicans,
about 25% of their population, to live in "food poverty."

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The free trade, however, gave a modest impact on US GDP. It has become
$127 billion richer each year due to trade growth. One can argue that NAFTA
was to blame for job losses and wage stagnation in the United States because
competition from Mexican firms had forced many U.S. firms to relocate to
Mexico. This is because developing nations have
less government
regulations and cheaper
labor. This is called
outsourcing. As an
example, the United
States outsourced
approximately 791,000
jobs to Mexico in 2010.

As for Canada, 76% of

Canadian exports go to
the United States and a
quarter of the jobs in
Canada are dependent in
some way on the trade
with the United States.
This means that if NAFTA
changes or is eradicated,
it would be devastating
for Canada's economy.

Generally, NAFTA has its positive and negative consequences. It lowered

prices by removing tariffs, opened up new opportunities for small- and
medium sized businesses to establish a name for itself, quadrupled trade
between three countries, and created five million U.S. jobs. Some of the
negative effects, however, include excessive pollution, loss of more than
682,000 manufacturing jobs, exploitation of workers in Mexico, and moving
Mexican farmers out of business.

International Monetary System - The International Monetary System is defined

as "a set of general rules, legal norms, instruments, and institutions shaping
payment conditions in foreign trade (international scale)" (Mikita, 2015, p.
505). It is brought by the multilateral international agreements of trading
participants, facilitated by international financial organizations. The Gold
Standard adopted by England in 1816, being the first country to industrialize,
was the first international monetary system (Mikita, 2015). It would later be
joined by European countries and the United States. It functioned as a fixed
exchange rate regime where countries determined the gold content of their
national currencies which would define the fixed exchange rates (Benczes,
2014).

The primary features of the gold standard were the unlimited convertibility of
currencies into gold and high stability facilitated by trade among countries
that eliminated exchange rate fluctuations and risks (Mikita, 2015). The
system maintained the equilibrium of the trade balance automatically. The
deficit in balance-of-payments due to gold reserve outflows would result inthe
fewer money supply in the domestic market, causing a decline in domestic
prices. This is beneficial to exporting cheaper goods but not on imports of
higher priced goods, which then contributes to the balance. This can be

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derailed by financial policies of raising interest rates to promote capital inflow

and to maintain the gold reserves at a fixed level, reversing the downward
pressures on prices and influencing demands for imports and exports (Mikita,
2015). The Gold Standard was also non- inflationary because the issuance of
money is dependent on a state's gold resources. Price fluctuations would
occur due to gold outflows or discovery of gold mines. This, however, also
served as the primary weaknesses of this fixed exchange rate system are
limited cash flow and curbed economic development (Cohn, 2011). World War
I marked the dissolution of the classical gold standard and the shift to paper
money that is not tied to gold reserves

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and whose exchange ratewas determined by the supply and demand in the
foreign exchange market. Military spendings of states could not be backed up
by gold reserves anymore (Mikita, 2015).

An attempt to return to modify the gold started was held in a 1922

conference in Genoa. The new international monetary system was named the
"Gold Bullion Standard." In this standard, bank notes were exchangeable for
gold bullion of fixed weight, therefore involving only the exchange of large
sums of money. The system failed to facilitate the

free convertibility of currencies to gold, and it collapsed in 1931 with the

outbreak of Great Depression in the 1930s (Mikita, 2015). The first symptoms
of the economic crisis were the Great Crash or the Wall Street Crash of 1929,
of stock market prices which delivered a wave of bankruptcies, a decrease in
trade and production, and unemployment in the United States, also hitting
hard cities around the world.

The period of the 1930s interwar period would increase intensity beggar-thy-
neighbor policies, trade protectionism, competitive devaluation, rigid capital
controls among states. The harsh impacts of these policies to the society
steered economic policy toward state interventionism, with primary
objectives of increasing employment, income and production based on
Keynesian principles of state intervention.

In the Bretton Woods Conference of 1994, 44 countries agreed in creating a

new international system that would prevent the chaos that occurred during
the interwar period. The Bretton Woods System was established, an
adjustable-peg system that is also known as the dollar-gold standard or gold-
exchange standard, with the US dollar as the only convertible currency that is
considered to be as good as gold. As the emerging hegemon, US committed
itself to purchase and sell gold at US$35 dollar an ounce without restrictions,
while other currencies, in turn, were fixed to the dollar (Benczes, 2014). The
stability of currency exchange rates was maintained, and the system
bounded member states to maintain the narrow limits of their currency
exchange rate within the +/- 1% range (Mikita, 2015).

As the world leader sustaining the new regime, US managed to maintain its
balance-of- payments surplus. With the restoration and reemergence of the
economic powers in Europe and (Japan), US gradually faced persistent deficits
which were an inevitable consequence of serving as the world's reserve

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currency (Benczes, 2014). The stability of operations of the Bretton Woods

System was conceived to have only lasted from 1959 to 1968 (Garber, 1993).
The growth of private and official private liquid dollar claims of foreigners,
reduction in official gold holdings especially that of the US, persistent
balance- of-payments problems of the US contributed to the collapse of the
system (Cohn, 2011; Garber, 1993; Mikita, 2015). Problems of the Bretton
Woods system would be exposed in

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the 1960s when the United States began to suffer from its balance-of-
payments deficits. It was difficult to maintain the stable price of gold -
maintaining the fixed gold price in the face of constant price increase globally
resulted in its reduction of production (Mikita, 2015). International reserve of
gold had stagnant growth due to low official price while most of the growth
was seen in foreign-owned US dollars – the growth encountered problems due
to deficits and states started losing confidence in the strength of the dollar
and began purchasing gold reserves from the US.

In the 1960s and the 1970s, a series of changes were introduced to maintain
the operations of the Bretton Woods system and to resolve its deficiencies.
The series of interventions involved solutions such as the formation Gold Pool
and the Special Drawing Rights to expand resources and means for payment
(Garber, 1993; Mikita, 2015). However, these changes were insufficient in the
face of worsening US deficit, currency speculation, and inflation. The
problems would eventually result to US abandonment of the gold-exchange
standard and the eventual collapse of the Bretton Woods system in 1973,
forcing states to fluctuate their exchange rates to be determined by market
forces. Succeeding attempts to return to a regulated exchange rate system
would be pursued but to no avail.

With the shift from a pegged-system to a floating one, IMF allows flexibility
among member states to determine their exchange rates or tie them to major
currencies such as the dollar or the SDR. The IMF also allows a managed float
system where central banks are allowed to intervene to address the
fluctuations in the exchange rate by buying and selling currencies. However,
countries are not allowed to manipulate their currencies to achieve short-term
gains at the expense of other economies.

History of Market Integration: From a Unilateral to a Multilateral Trade Order

The mercantilist period during the seventeenth and eighteenth centuries in
European international trade was marked with colonial expansionism and
surplus accumulation of gold stocks in the balance of payments which
boosted exports and curtailed imports (Benczes, 2014). This period was
situated in a zero-sum game in economic relations, the pursuit of beggar-thy-
neighbor policies with led to trade wars. Industrialization in the 19th century
advanced trade liberalization under the leadership of United Kingdom, the
first country to industrialize and the hegemon, particularly in 1846 during the
Repeal of the British Corn Laws (Benczes, 2014). Not all states, however,
embraced free trade during the era of industrialization. The United States
together with Germany initially pursued import substitution industrialization,
imposing tariffs on manufactured goods to protect their infant industries.

The outbreak of World War I resulted to the overturning of the free trade
regime and the return of protectionism. The US was unwilling to take over as
hegemon after the decline of British hegemony and served as the primary
drivers of protectionist policies during the Great Depression of 1929-33
(Benczes, 2014). Other states would respond through a cycle of retaliation,
severely reducing the extent and amount of trade among countries. The US
Reciprocal Trade Agreements Act in 1932 addressed the decline in
international trade by transferring authority to decide on trade matters to the
US president, freeing the Congress from pressure coming from protectionist
interest (Benczes, 2014).

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The post-World War II trade regime was established in the backdrop of what
Ruggie (1983) calls as "embedded liberal compromise," an offshoot of
Keynesianism economics where the promotion of an open global economy
was accompanied by government safeguards that would protect the domestic
economy and social policies. The trade regime was unique because it was
informal and constituted by multilateral trade agreements. Negotiations are
guided by the following principles: trade liberalization via tariff reductions;
nondiscrimination, reciprocity, safeguards, and development (Cohn, 2011).
The

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development principle, however, has not been sufficiently prioritized by major

trading powers. GATT was unable to fully impose the limitations of free trade
in exceptional cases concerning essential policy objects such as health, and
public moral grounds, which ought to trump over the market goals (Ala'i,
2011)

Other criticisms pertained to the inadequate the dispute settlement

mechanisms of the institution. Moreover, while GATT was successful in
substantively reducing tariffs, these were eventually replaced with non-tariff
barriers (NTBs) in forms such as environmental regulations and health and
safety requirement, constituting new challenges and limitations to global
trade (Ala'i, 2011).

The creation of the WTO as "a legitimate multilateral institution, with formal
legal status as an international organization and formal diplomatic status for
its secretariat" was a development from the informal "club" of Western
trading nations in GATT (Barton, Goldstein, Josling, & Steinberg, 2008, p. 1).
Detailed rules extensively covered not only goods but also intellectual
property, investment, services. WTO has also become "one of the most
legalized international institutions in the world" with its binding and automatic
dispute settlement mechanism.

The developing states, however, were disillusioned by the outcomes of the

Uruguay round where less developed countries were perceived to have given
up more with the inclusion of services trade and intellectual property than
what they have reaped from limited agreements for textile and agriculture
(Cohn, 2011). The Uruguay round would then proceed to the Doha round,
dubbed as the “development round, which was unable to produce successful
agreements. The increasing membership of the organization made it more
difficult to reach consensus and countries were not willing to make significant
concessions to avoid the failure of the negotiations (Cohn, 2011). The
opposing positions of parties also led to its demise. Demands of developing
countries to fully implement the Uruguay agreement particularly in the
agricultural sector, and demands of the US and EU focusing on matters such
as labor, environment, and investment concerns became irreconcilable
matters (Benczes, 2014).

From Keynesianism to Neoliberalism

During the Great Depression in the 1930s, the ideas of John Maynard Keynes,
a prominent British economist, have been influential in shaping the economic
policy of developed countries. In his seminal work entitled The General Theory
of Employment, Interests, and Money (1936), Keynes argued that market-
generated equilibrium results in unemployment which causes a decrease in
demand. This, in turn, is related to the decrease in investment and
production. He sees government spending as a solution to revive the
economy by bolstering aggregate demand through fiscal and monetary
policies. The Keynes' liberal interventionism approach influenced states to
invest in big governments and shaped the post-war global economic order
that is grounded on the Keynesian compromise in of promoting open markets
without undermining the protection of the society and the domestic market.
This allowed exceptions to be accepted in the form of capital controls and
domestic trade protections (Balaam & Dillman, 2014).

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The Keynesian paradigm, however, would be challenged during the economic

crisis of stagflation (a combination of rising unemployment and inflation) that
occurred in the 1970s (Heywood, 2011). This would mark the entry of
resurgence of liberalism through neo- liberalism on a global scale due to the
technological advancement that allowed the free flow of capital and goods
across the globe. Grounded in the ideas of Friedrich Hayek and Milton
Friedman, the neoliberal solution was to have an unregulated market with as
little state intervention as possible. It involved the having the market take
over tasks and services that ought to be provided by the government.

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The key neoliberal policies were comprised of privatization, deregulation,

lesser public spending, and reduced corporate taxes. The economic paradigm
would expand through British Prime Minister Margaret Thatcher and U.S.
President Ronald Reagan who popularized the policies and ideas dubbed as
Thatcherism and Reaganism, which would then be followed by the emerging
economies of East and Southeast Asia (Balaam & Dillman, 2014). The United
States and Great Britain, together with the industrialized nations, would
promote globalization and integration into the global economy with the
promise that capitalism would lead to economic prosperity alongside
democratization. The IMF and World Bank also aligned their policies to neo-
liberalism through the "Washington Consensus," a set of ten economic policy
prescriptions for the recovering and crisis-ridden countries implemented by
Washington-based institutions: the IMF, WB, and the US Treasury. The term
was coined by John Williamson (2004) which constituted the following
principles:

1. Fiscal discipline
2. Reordering Public Expenditure Priorities
3. Tax Reform
4. Liberalizing Interest Rates
5. A Competitive Exchange Rate
6. Trade Liberalization
7, Liberalization of Inward Foreign Direct Investment
8. Privatization
9. Deregulation
10.Property Rights

These policies were applied through the structural adjustment programmes

(SAP) of the IMF and the WB that imposed conditionality clauses attached to
loans which have been criticized for its adverse effects on developing nations.
With the expansion of globalization came the reaction from the civil society in
the form of transnational and national resistance due to the widening gap
between the North and the South. The Zapatista Movement in Mexico against
the North American Free Trade Agreement and the Battle of Seattle during
the WTO Ministerial Conference in the 1990s were the prominent
transnational movements that first sought to challenge against global
capitalism and neoliberal globalization. Offshoots of these movements would
emerge in the twenty-first century, with the Spanish Indignados Movement,
the Arab Spring, and the Occupy Movement. Such movements are part of the
broader collective resistance known as the "global justice movement" that
fights against inequality and the concentration of wealth among the wealthy
minority. These movements have yet to produce strong enough pressure to
these international institutions. However, the global civil society continues to
persistently and relentlessly expose the ills of today's global economic
system.

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Application (Let’s Do It!)

Learner Worksheet 4
Student Name: Score:

Course/ Year/ Section:

Case In Point: The Filipino Farmer and GATT; Quo Vadis?

Mang Rene is a 48 year old farmer who rotationally plants rice and corn
in a small subsistence farm land. This morning however, he cannot go
on his daily farming routine as his farm and crops which were
scheduled to be harvested were all wiped out by Typhoon Pablo. He
laments at how he can feed his family of 3, not to mention that his son
who is taking up a college course in the city is scheduled to pay his
tuition fee at the end of the month. He said that the farm earnings has
severely depleted to the point that he never wished his eldest son to
be a farmer like him who only finished fifth grade, that is why he is
doinghis very best to see that his son will become an engineer
someday. When asked why his earnings dipped, he has this to say,
"mababa ang bilihan ng palay, madali kasi makapasok yung mga bigas
galing Vietnam tsaka Thailand ba yun? Kaya kami binabarat ng husto,
kapos sa Suporta ng gobyerno tapos eto babagyuhin pa. Kawava talaga
kaming magsasaka lang...

Weak government policies and programs, an excessive reliance on

agricultural imports, and corruption, have taken their toll on the
agricultural sector, say experts. According to the 2012 Bureau of
Agricultural Statistics, the agricultural sector employs an estimated 12
million people, making up 33 percent of the country's labor force.
About 70 percent of the rural poor are farmers and fishermen.

The Philippine government's formal accession to the GATT-WTO was

made possible by the ratification of the Philippine Senate of the GATT-
UR in December 1994. Along with it, the government’s commitments to
the various agreements embodied in the Uruguay Round including the
Agreement on Agriculture were made legally binding. To pursue the full
completion of its commitments to the embodied in the Uruguay Round
including the Agreement on Agriculture were organization, the
government has subsequently amended and revised existing laws and
policy measures that were not in congruence with the rules of the WTO

Through RA 8178 or the law on quantitative restrictions on agricultural

products, which repealed the Magna Carta of Small Farmers of 1991
(which protected the small farmers and replaced all quantitative
restrictions with tariffs), the Philippines surrendered completely to WTO

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thus endangering rice, corn, coconut, sugar and other food products to
its mandate.

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'Billions of Promises

The hype for people to accept WTO included: P3.4 billion annual
agricultural export earnings; P60 billion increase in annual gross value
added of agriculture and 500,000 jobs to be created annually. But all
these were promises.

In reality, agricultural output as measured by GVA has minimally

increased at 1.38 percent lower than the average rate of 1.62 percent
from 19991-1994 due to declining agriculture's capacity to supply the
food needs of the population. But Agriculture officials blamed the
weather disturbances for the overall decline in crop production.

Prices of coconut, sugar, rice and corn post GATT showed declines
since the seventies due to insufficient support and investments,
declining hectarage and surging importation of cheaper products. This
resulted in the ballooning of trade deficit for agriculture.

Consequently, the promised millions of jobs under the post GATT era
never materialized and the livelihoods of farmers were threatened by
globalization.

Because of government's commitment to remove trade distorting

subsidies and support to agriculture, it left the sector to fend for itself
and reduced its price support, credit, research and development and
infrastructure support.

Back in the early 2000, the study called for Congress to thoroughly
review the Philippine commitments to WTO from the perspective of the
small peasants and their organizations, not by agribusinesses and
traders. Agriculture, being a major pillar of the economy, is where an
overwhelming number of peasants are vulnerable to the vagaries of
the world trading system. Of the small peasants that constitute 95
percent of the agricultural labor force, 50 percent till the land as
tenants or owner cultivators. The other half work as itinerant labor
force moving from one area to another.
Courtesy of http://www.opinyon.com.ph

Inquiry Based Learning Guide Questions:

1. How does the experience of Mang Rene mirror the sad plight of
Philippine agriculture in particular and reflect the conditions of
the national economy in general with reference to Globalization.

2. If you will be able to talk to Mang Rene, how are you going to
explain to him (in the simplest way possible) the workings of the
GATT- WTO, what it stands for and how Globalization can
positively affect him?

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3. Research on the advantages and disadvantages of the GATT, be

able to construct a matrix showing which of these has directly
impacted the Philippines. Be able to weigh your findings and
assess whether the GATT WTO has indeed been instrumental for
us or not in our quest for development.

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Submitting Your Work. If you do not have Internet Connectivity, neatly detach
this page from your module and submit via University Drop Box or by courier/
mail together with your other Learner Activity Worksheets once you reach the
prescribed Learning Checkpoint. If you have Internet connectivity, you may
answer directly on the online version of this worksheet through the University
Virtual Environment.

Closure
Well done! You have just finished Lesson 2 of this module.

If you have questions or need to make clarifications take note of them in the
space provided below to ask your Course Professor through direct messaging
or through the University Virtual Environment (UVE).

Now that you have completed Lesson 2, let us move on to the next lesson in this
Notes from this Lesson
module.

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Lesson 3
The Global Interstate System and
Global Governance
Learning Outcomes
 Understand the structure and dynamics of the Interstate System;
 Explain the challenges of global governance in the 21st century;
 Identify possible solutions to the problems in the United Nations
structure and dynamics, and;
 Equip students with 21" century learning and develop higher order
thinking skills that will lead towards a deeper understanding of Global
Interstate System and Global Governance as well as articulate a
stance on these concepts while demonstrating effectively how these
ideas impact the Philippines.

Time Frame: 1 Week

Overview
In a world where there is anarchy, where no overpowering state-like entity
imposes rules
and order, it is imperative that the nation state impose its sovereign power
within it domain. The state is the legitimate user of physical violence (Weber,
1964), through its military and police apparatus, together with its territorial,
fiscal, and ideological monopolies (Wallensteen, 2012). The global system
is anarchic, and this necessitates global
governance to maintain
international peace and
security.

How do we govern in the

absence of a cosmopolitan
state? This chapter aims to
answer this question by
focusing on the United
Nations as the primary venue
and formal arrangement for
global governance involving
states and non-state actors,
In sum, global governance is
defined as "the formal and
informal arrangements that
produce a degree of order
and collective action above
the state in the absence of a
global
government," that involve coordination among state and non-state actors
(Young, 1999: 2). However, governance in an anarchic setting has been
challenged by the self-interest of major states and has exposed the
limitations which this lesson intends to discuss.

Activity – Experiential Learning (Let’s Get Started!)

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1. On a piece of paper, write at least 3 concepts that you remembered the

most from modules 1 and 2. Write one sentence description of the
concept you chose for each of the three.
2. Grab Bag – after writing the description of the concept you chose for
each the three, draw an object from your bag, and explain or illustrate
how the object is related to what you have learned.

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Example: The object grabbed was a mobile phone. The student can
then explain that the mobile phone represent either the presence of
necessary communication or a breakdown in communications that may
result in international conflicts.

Analysis (Let’s Think About it!)

Now think about the questions below:
 How can we explore the interconnectedness of global systems through a
closer look at some of the world’s most pressing global issues and their
impact on children?
 What is the role of the United Nations (UN), and what it has achieved so
far in addressing global conflict?

Abstraction (Let’s Explore!)

Global governance brings together diverse actors to coordinate collective
action at the level of the planet. The goal of global governance, roughly
defined, is to provide global public goods, particularly peace and security,
justice and mediation systems for conflict, functioning markets and unified
standards for trade and industry. One crucial global public good is
catastrophic risk management – putting appropriate mechanisms in place to
maximally reduce the likelihood and impact of any event that could cause the
death of 1 billion people across the planet, or damage of equivalent
magnitude.

The leading institution in charge of global governance today is the United

Nations. It was founded in 1945, in the wake of the Second World War, as a
way to prevent future conflicts on that scale. The United Nations does not
directly bring together the people of the world, but sovereign nation states,
and currently c ounts 193 members who make recommendations through the
UN General Assembly. The UN’s main mandate is to preserve global security,
which it does particularly through the Security Council. In addition the UN can
settle international legal issues through the International Court of Justice, and
implements its key decisions through the Secretariat, led by the Secretary
General.

The United Nations has added a

range of areas to its core
mandate since 1945. It works
through a range of agencies and
associated institutions
particularly to ensure greater
shared prosperity, as a desirable
goal in itself, and as an indirect
way to increase global stability.
As a key initiative in that regard,
in 2015, the UN articulated the
Sustainable Development Goals,
creating common goals for the
collective future of the planet.

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Beyond the UN, other institutions

with a global mandate play an
important role in global
governance. Of primary
importance are the so-called
Bretton Woods institutions: the
World Bank and the IMF, whose
function is to regulate the global
economy and credit
markets. Those institutions are not without their critics for this very reason,
being often blamed for maintaining economic inequality.

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Global governance is more generally effected through a range of

organizations acting as intermediary bodies. Those include bodies in charge
of regional coordination, such as the EU or ASEAN, which coordinate the
policies of their members in a certain geographical zone. Those also include
strategic or economic initiatives under the leadership of one country – NATO
for the US or China’s Belt and Road Initiative for instance – or more generally
coordinating defense or economic integration, such as APEC or ANZUS.
Finally, global governance relies on looser norm-setting forums, such as the
G20, the G7, and the World Economic Forum: those do not set up treaties, but
offer spaces for gathering, discussing ideas, aligning policy and setting
norms. This last category could be extended to multi-stakeholder institutions
that aim to align global standards, for instance the Internet Engineering
Taskforce (IETF) and the World Wide Web Consortium (W3C).

In summary, global governance is essential but fragmented, complex and

little understood. In this context, the key questions raised by the Global
Challenges Foundation are, how to reform institutions, how to develop
alternative institutions, and how to use the new possibilities of technology to
improve governance.

The United Nations

The United Nations (UN) serves as the primary organization for international
cooperation, peace, and security. It is the only international organization that
can authorize the use of force against an aggressor. Its primary concern is
collective military security (Chapter VII of the UN Charter) through the
facilitation of peaceful settlement of disputes among member states (Chapter
VI) or by [commanding allegiance of the entire UN membership; sanctions).
While its primary objective is to ensure peace and order, the UN as an
organization can be a conflict actor in itself or an instrument for action driven
by the interests of particular states. With that, it must be emphasized that
"UN is a membership- directed organization and the members are all states.
This strongly affects what it can do" (Wallensteen, 2012: 241).

The United Nations Charter established six principal organs in 1945. These
organs are Economic and Social Council, Trusteeship Council, and the
International Court of Justice, General Assembly, Security Council, and the
Secretariat (Article 7, Chapter III)

The Economic and Social Council's (ECOSOC) primary objective is to advance

the economic, social and environmental dimensions of sustainable
development. It serves as a gateway of the UN's partnership with the rest of
the world for the coordination, policy review, dialogue, recommendations, and
implementation of international development goals. The organ is composed of
54 elected members by the General Assembly for overlapping three-year
terms (Chapter X).

The IMF and WB are specialized agencies and independent organizations that
are affiliated with the UN. These two institutions issue yearly reports to the
ECOSOC but the WTO, since it is a related agency and not a specialized one,
is not required to do the same. UN has little authority over these institutions,
and a significant reason to this is that they do not seek for UN funds (Cohn,
2011). Developed countries channel funding to these institutions because of
the weighted voting system of the IMF and WB, contrary to the one- nation,

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one-vote system found in the UN (Cohn, 2011).

The Trusteeship Council was established as a main organ of the UN (Chapter

XIII) to provide international supervision of Trust Territories that are under the
administration of seven member states, to ensure that adequate steps are
being made to prepare the peoples of Trust Territories for self-governance. All
11 Trust Territories achieved independence in 1994. The council's operation
was suspended and will meet whenever an occasion necessitates it.

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The International Court of Justice is the United Nation's principal judicial organ
(Chapter XIV). Its role is to settle legal disputes between states (contentious
cases) and to provide advisory opinions on legal questions referred by the UN
organs and specialized agencies, in accordance to international law (adviso
proceedings) (International Court of Justice, 2018).

The Security Council (SC) is the most potent organ with the power to make
legally binding resolutions. It is comprised of the strongest military states and
is a concrete manifestation of the reality of power dynamics. The council is
composed of 15 members, among them would be the five states which are
granted permanent seats by the UN Charter (Chapter V). The five permanent
members (PM), also known as the Permanent Five or P-5, are China, France,
Great Britain, Russia, and the United States - all of which are allies in the
Second World War and are nuclear states. The remaining seats are for the ten
elected non-permanent members (NPM) elected by the General Assembly
(GA) for overlapping two-year terms. The ten non-permanent seats are
divided among regions: five states from African and Asian states, one seat
from the Eastern European States, two states from Latin American states and
last two from Western European and other States (UNGA Resolution 1991
(XVIII) of 17 December 1963).

Article 24 of the UN Charter states that the SC is mandated to act on behalf of

the entire UN body to fulfill its primary responsibility for maintaining
international or threat; impose economic sanctions and other measures;
determine the existence of a peace and security. Functions may include
investigating any situation that has the breach of peace and actions to be
pursued.

The council has the authority to determine breach in international as

stipulated in Article 39 under Chapter VII. Crisis situations can be categorized
as a threat to the peace,' a 'breach of the peace' or an act of aggression. The
UN agenda expanded during the World Summit of 2005 in crises urging
international responsibility to protect exposed populations against mass
violation of human rights, ethnic cleansing or genocide. State sovereignty is
viewed as conditional based on the state's fulfillment of its responsibility to
protect its people. If the state is incapable of unwilling to fulfill such
responsibility, the intervention of the international community is called upon
to address the violations of human rights. The
doctrine of
Responsibility to
Protect (R2P) principle
was first was first
executed in 2011 in
Libya under Muammar
Gaddafi with the
implementation of a
no-fly zone and
authorization of air
strikes. The military
intervention's legal
status remains
contested and is
considered to be "a

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failed case of
international law and
R2P since the
international
community saved
Benghazi but lost
Libya" (Teimouri &
Subedi, 2018: 31)

Such measures, however, can challenge the independence of sovereign

states. The structural feature of the SC - the power to veto of the PMs to vote
against a substantive resolution - serves as a measure to protect states from
possible threats to independence

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and to ensure that the UN will not be used to serve the interest of particular
states. Apart from this, there is also a 'sixth veto' or 'hidden veto' of at least
seven non-permanent members of the council to prevent the nine needed
votes from reaching a decision (Wallensteen, 2012).The voting system ideally
aims to foster and emphasize the importance of unity, consensus, and
compromise, which were not present in the League of Nations where it was
used as an instrument by major powers to target Germany, Italy and Japan,
and why countries such as the United States opted out from the membership.
However, the UN Charter was never intended to espouse sovereign equality;
the structural feature of the UN Charter-veto-is a result of an international
compromise allied powers of Second World War (Carswell, 2013).

These safeguards to sovereignty - the veto - also serve as a severe problem.

When major powers are directly or indirectly involved in a conflict, it renders
the body unable to take action in addressing conflict as seen in the inaction of
the UN in the Syrian armed conflict. Frequent vetoes would often come from
the United States and Russia on issues concerning the Middle East; for China
issues related to countries expressing recognition of Taiwan. The P-5 also act
outside the UN charter and undermine the interest of the larger UN body as in
the case of the US-led military intervention in Iraq in 2003 or the intervention
of Russia in Georgia in 2008. The bypassing of the UN renders it as a mere
rubberstamp on interventions led by the major powers. This
overrepresentation and power concentration has resulted in demands to
reform the structures of the SC, which dramatically serves and benefits the
interests of the P-5 (Permanent Five).

To maintain peace and order, the SC adopts a set of instruments such as

sanctions, peacekeeping, and peace enforcement. Sanctions can take in
forms of non-military measures of economic, trade or diplomatic sanctions,
and targeted measures on groups or particular individuals such as travel
bans, financial and diplomatic restrictions. These are enforcement tools
applied when diplomatic relations have been fruitless, and the threat to
international security persists, and if deemed inadequate, military sanctions
may be taken (Articles 41 and 42).

Aside from sanctions, peacekeeping is also a useful tool employed by the UN

to assist host countries struggling from armed conflict. UN peacekeepers are
deployed to provide security to populations and political and peace building
support to countries transition from conflict to peace. Ramsbotham et al.
(2016) outline the transformation of peacekeeping operations across three
phases. The first generation of classical peacekeeping from the 1950s to
1980s and the multidimensional and multilateral second generation were
guided by the principles of consent, impartiality, and the non-use of force
except for self-defense. However, due to the incapacity of the UN
peacekeeping forces in preventing mass killings in cases of the civil war in
Yugoslavia and the genocides in Somalia and Rwanda, the UN was forced to
rethink its principles. These failures would lead to the development of the
third generation of peacekeeping, which departed from the traditional
principles of the traditional practice. It viewed the use of force as necessary
to fulfill the mandate, the consent of exposed populations as enough consent
needed to intervene, and the digress from neutrality when a party refuses to
the adhere to the UN mandate.

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The more robust and more encompassing mandate of the third generation
peacekeeping has often been interchanged with the peace enforcement
(Ibidem), which involves for direct military intervention as seen in the military
intervention Iraq's invasion of Kuwait in the 1990s and Libya in 2011. The
blurring of lines between peacekeeping and peace enforcement and the
boundary between UN and non-UN peacekeeping has amalgamated UN
intervention with war-fighting (Ramsbotham et al., 2016). The current state of
UN peacekeeping is marred with concerns over the legitimacy of the military
interventions.

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The General Assembly (GA) is the only UN organ with universal representation,
with all 193 member states represented in the body. The GA decides on
essential questions with a simple majority, while concerns related to peace
and security, budgetary matters, and new membership admissions require a
two-thirds majority Yearly, the GA meets for the annual General Assembly
Session and general debate participated by several heads of state. Moreover,
the body also elects a GA President and 21 Vice-President (elected according
to equitable geographical representation) every session for a one-year term.
While the assembly may discuss questions relating to international peace and
security, it can only make recommendations when a dispute is already being
discussed by the SC. In reality, the SC remains to be the primary decision-
maker of the UN in all matters of international peace and security However,
the "Uniting for Peace Resolution of 1950 ensures that divisive issues in the
SC are blocking the members to take action may be assumed by the
assembly, to bypass the vetoes of the council and recommend measures
including the use of force. This resolution, however, has been criticized for
being unconstitutional, as it allowed the assembly to usurp the SC's primary
role in maintaining international peace and security (Carswell, 2013).

Collective action in times of crises may be coursed through the Security

Council and the General Assembly, as well as the Office of the Secretary-
General. The Secretary-General is the chief administrative officer of the
United Nations Secretariat. As stipulated in Article 97, the SC sends a
recommendation to the GA which will appoint the Secretary-General for two
five-year terms at most. Article 99 mandates the Secretary-General to call for
the attention of the members of the SC on threats to international peace and
security, or when the inability of SC members to be responsive or to take
responsibility is present. Wallensteen (2012) states that "the three organs of
the UN are interrelated in ways which support the viability of the United
Nations” (p. 247). The shifting responsibilities of the three organs ensure that
the organization will not collapse. However, since the Cold War, the SC has
been paramount when it comes to decision making, leaving the other organs
with little involvement and influence in international issues (Ramsbotham et
al., 2016; Wallensteen, 2012).

Reforming the United Nations

Reform has only been met once in 1963 when the UNGA voted for the
expansion of the UNSC from 11 to 15 member-states (UNGA Resolution of
1963). In 1994, the Open-ended Working Group on the Question of Equitable
Representation and Increase in the Membership of the Security Council was
created where members were invited to submit comments on the reformation
and review of the Security Council. Since then, the negotiations have been
fruitless, and it has been dubbed as a "Never-ending Working Group” for the
endless years of consecutive deliberations (Gould and Rablen, 2017).

Gould and Rablen (2017) state two distinct sets of criticisms relating to the
efficiency of the council and the degree of equity regarding power allocation.
For the inequity in the country level, the problem lies in overrepresentation of
the PM countries, in the regional level, there is lack of representation for Asia
and Africa while Eastern and Western Europe are overrepresented - an overt
manifestation of the North and South divide (Gould and Rablen, 2016).
Several demands have been presented by established of India, Brazil,
Germany, and Japan in the G-4 proposal calling for permanent seats in the
council, while smaller states demand equitable representation for the South

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(Hosli & Dorfler, 2017).

Contrary to these recurring demands, however, Gould and Rablen (2017) call
for caution in pursuing structural reforms related to expand the UNSC
membership. Their quantitative appraisal shows that UNSC membership
enlargement is no panacea; it permits enhancement of equity in diminishing
returns, at the expense of efficiency at increasing returns. They find that
reform of requiring two PM votes to constitute a veto would be more
promising, in improving both equity and efficiency and break the status
quo (Gould &

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Rablen, 2017). Furthermore, they also see the difficulty in finding a reform
that would break the 20-year impasse in the negotiations.

The difficulty for the UNSC to include rising powers into the power-sharing
arrangement in the UNSC is due to the absence of the prospect for change.
According to Hosli and Dorfler (2017), this is brought by not only the
diverging preferences of the permanent members but also of structural
hurdles in the UN Charter locking in the current institutional arrangement and
preventing any reforms from seeping in. These institutional hurdles are the P-
5 inclusion requirement and the two-thirds majority requirement in UNGA
substantive decisions. The likelihood of reform to succeed depends on the
feasibility of acquiring the necessary support and votes.

If reforms are unforeseeable in the near future, what can be done? The
awakening of the latent potential of the General Assembly to counteract the
powers of the Security Council through the "Uniting for Peace" resolution
serves as a potential solution. This is imperative especially with two
permanent members ensuring that no international intervention would occur
in the Syrian armed conflict. As argued by Carswell (2013), "the General
Assembly, representing the entire international community, has a moral
authority that should not be downplayed, particularly where the issues at
hand have a direct impact on state sovereignty" (p. 478). The resolution
ought to be fully realized and maximized for it has bestowed the assembly
the capacity to check the Security Council in its proper and rightful exercise
of veto, in accordance to what is mandated by the UN Charter.

NOTE: Please read the attached file in the

UVE. re: The Globalization of Economic
Relations.pdf

Formation of an Asian Interstate System

We can obtain matrices of interstate relationship in Asia by accumulating all
of the bilateral diplomatic relationship, six cases of which were observed. The
matrices render us some findings on the formation and deformation of an
interstate system in East Asia. In the mid- 1960s the framework of the Cold
War was dominant in the region, where the Communist and the ‘Liberal’ blocs
were clearly demarcated. In the mid-1970s, especially after the unification of
Vietnam (1976), some kind of an interstate system should have been formed
on the initiative of ASEAN member states. However, it was the invasion of
Cambodia by Vietnam (at the end of 1978) that destroyed the new dynamism.
As a result, in the 1980s, Vietnam and Cambodia under Hen Samrin’s and Hun
Sen’s premiership respectively came to be isolated from the rest of the Asian
countries. The emergent system in Asia became chaotic. However, since the
end of the 1980s, Japan, China, Thailand and other ASEAN members practiced
a kind of concerted diplomacy, persuading that Vietnam should withdraw its
military forces from Cambodia and political factions in Cambodia should
cooperate with each other to restore order in an appropriate way. Eventually,
the Vietnamese forces withdrew back home in September 1989, and in
Cambodia the United Nations Transitional Authority in Cambodia (UNTAC) was
set up in March 1992 as an intermediary for the nation rebuilding. In
September 1993 Kingdom of Cambodia started anew.

In the 1990s, locally the détente in the Indo-Chinese Peninsula, and globally

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the end of the Cold War and the domestic as well as international collapse of
the former Soviet bloc brought about the conditions that enabled East Asia to
construct an interstate system based on equality. In the late-1990 the system
appeared on the surface, provided that Taiwan enjoyed not formal (political)
but informal (economic and cultural) relations with all nations in the region
and that North Korea had diplomatic relations with Asian nations except
South Korea, Japan and Myanmar. Thus in principle a network of diplomatic
relations is well established, connecting almost all nations in East Asia.

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The basis of the Asian system is a modified version of the Western State
System, deprived of the function of Western dominance. The Western State
System was quintessentially Western-centric, where legitimate actors were
limited to the sovereign states in the West. While it brought development,
wealth, and state-building to Western nations, it destroyed non-Western
nations in terms of politics, economics, society, and culture. The system
embraced a practical code of inter-state behavior, comprising a double
standard of behavioral code, one applied to Western nations, and the other to
non-Western nations. While Western nations acted as equals to each other in
principle, they treated polities outside the West in such discriminatory ways
as they considered appropriate. The core of the inward code was threefold:
national sovereignty, the balance of power, and international law. The ideal
type of states was nation-states. Dependent on the outward code, the
Westerner would never easily admit that the non-Western nations also have
sovereignty. The West regarded non-Western nations as a target of Western
mercantilism, colonialism, and imperialism. Moreover, they tried to destroy
any indigenous industrialization in the rest of the world, particularly that in
Asia which had been far more ahead of the West in this respect until the mid-
eighteenth century. Globally speaking, the 1960s was epoch-making in the
international system, as was expressed in such significant incidents as the
emergence of ‘African years,’ the finding of ‘the North-South problem,’ the
impasse of ‘the nuclear stalemate,’ or the assertion of ‘international
interdependence.’ In the current international system, the outward code in
the Western State System has ceased to function, and the equality principle
applies to all the states. (Hatsuse 1993: 279- 288)

Association of Southeast Asian Nations (ASEAN)

ASEAN was established on 8 August 1967 in Bangkok by the five original
member countries: Indonesia, Malaysia, Philippines, Singapore, and Thailand.
Brunei Darussalam joined on 8 January 1984, Vietnam on 28 July 1995, Laos
and Myanmar on 23 July 1997,
and Cambodia on 30 April 1999.

The ASEAN Declaration

states that the aims and
purposes of the Association
are:
1. to accelerate the
economic growth,
social progress and
cultural development
in the region through
joint endeavors in the
spirit of equality and
partnership in order to
strengthen the
foundation for a
prosperous and
peaceful community of
Southeast Asian
nations, and;
2. to promote regional
peace and stability

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through abiding
respect for justice and
the rule of law in the
relationship
among countries in the
region and adherence
to the principles of
the United
Nations Charter. In 1995, the ASEAN Heads of State and Government re-
affirmed that “Cooperative peace and shared prosperity shall be the
fundamental goals of ASEAN.”

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Fundamental Principles
The Treaty of Amity and Cooperation (TAC) in Southeast Asia, signed at the
First ASEAN Summit on 24 February 1976, declared that in their relations with
one another, the High Contracting Parties should be guided by the following
fundamental principles:

 Mutual respect for the independence, sovereignty, equality, territorial

integrity, and national identity of all nations;
 The right of every State to lead its national existence free from external
interference, subversion, or coercion;
 Non-interference in the internal affairs of one another;
 Settlement of differences or disputes by peaceful manner;
 Renunciation of the threat or use of force; and
 Effective cooperation among themselves.

Political Cooperation
The TAC stated that ASEAN political and security dialogue and cooperation
should aim to promote regional peace and stability by enhancing regional
resilience. Regional resilience shall be achieved by cooperating in all fields
based on the principles of self-confidence, self-reliance, mutual respect,
cooperation, and solidarity, which shall constitute the foundation for a strong
and viable community of nations in Southeast Asia.

Some of the major political accords of ASEAN are as follows:

 ASEAN Declaration, Bangkok, 8 August 1967
 Zone of Peace, Freedom and Neutrality Declaration, Kuala Lumpur, 27
November 1971
 Declaration of ASEAN Concord, Bali, 24 February 1976
 Treaty of Amity and Cooperation in Southeast Asia, Bali, 24 February 1976
 ASEAN Declaration on the South China Sea, Manila, 22 July 1992
 Treaty on the Southeast Asia Nuclear-Weapon-Free Zone, Bangkok, 15
December 1997
 ASEAN Vision 2020, Kuala Lumpur, 15 December 1997
 Declaration on Joint Action to Counter Terrorism, 5 November 2001
 Declaration of ASEAN Concord II, Bali, 7 October 2003
 ASEAN Convention on Counter Terrorism (ACCT), 11 January 2007
 Cebu Declaration on the Acceleration of the Establishment of an ASEAN
Community by 2015, 11 January 2007

ASEAN Declaration on Joint Action to Counter Terrorism, 5 November 2001;

and Joint Declaration of the ASEAN Defense Ministers on Promoting Defense
Cooperation for a Dynamic ASEAN Community, 25 May 2016. Although ASEAN
States cooperate mainly on economic and social issues, the organization has
a security function, with a long-discussed program for confidence-building
measures and for establishing a nuclear-weapon-free zone in Southeast Asia,
with the objective of implementing ASEAN’s 1971 Declaration on a Zone of
Peace, Freedom and Neutrality (ZOPFAN), and a Southeast Asia Nuclear
Weapon-Free Zone (SEANWFZ), which would be a component of ZOPFAN.

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Application (Let’s Do It!)

Learner Worksheet 5
Student Name: Score:

Course/ Year/ Section:

Case In Point: A tale of a Filipino Fisherman in the Scarborough Shoal

It was a clear sunny August midday of 2016. In the past years, Dodong recalls how
this time of the year spells bountiful catch for him and other groups of fishermen in
Bajo De Masinloc or Panatag shoal. He also narrated how rich the fishing grounds of
the Kalburo is (kalburo is their native name for the Scalborough Shoal). When asked
about the fishes that abound the shore of the shoal situated just 124 nautical miles
off Zambales. Madaming isda doon, maganda and mga black and orange lapu-lapu,
bakalaw, tanigue, and damas o bisugong bato, tsaka galunggong. Dati, kaya naming
makakuha ng dalawang tonelada ng galunggong doon dalawang araw lang, dito
ngayon sa amin kase nga di na kami makapalaot doon, mga isang jeep lang isang
lingo, di pa kayang punuin. Mahirap talaga.

This came several months after the July, 2016 rendering of the decision of the
Permanent Arbitration Tribunal regarding the UNCLOS based claim of the Philippines.
The landmark ruling of the Permanent Court of Arbitration (PCA) in favor of the
Philippines over its maritime entitlements in the South China Sea. The ruling is
considered landmark because it sets a historic precedent in international law with a
pronouncement that historical right does not exist under the Constitution of the
Oceans, or the United Nations Convention on the Law of the Sea (Unclos). In simple
terms, it means that China cannot claim the entire breadth of the South China Sea
part of its maritime territory based on historical right under the so- called "nine-dash-
line," which basically makes the South China Sea a Chinese lake (inquirer.net).

Dodong recalls how this decision made them very happy thinking that they can
already fish again without harassment from the Chinese coast guards patrolling their
area. Nothing has changed according to him, Wala, ganun pa din, andun pa rin sila sa
lagoon, nagpapatrol, araw gabi yun, pag lumapit ka, Ilabas nila yung dilaw na
bandera sabay sabi na alis daw kami dun. This has been the plight of our poor Filipino
brothers in Panatag shoal. In fact, it was only in October of 2016 that Filipino
fishermen were allowed again to fish in the area. This came after the bilateral
meeting and talks between Pres. Rodrigo Duterte and Pres. Xi Jinping of the People's
Republic of China. However, recently reports of Chinese coast guard harassment have
resurfaced again as some Chinese coast guards are again accused of harassing our
Filipino fishermen.

Inquiry Based Learning Guide Questions:

1. Did the Philippines really "win" this dispute in the West Philippine Sea?
2. Explain why the UN cannot enforce the decision, what impression does it give
about the UN brand of Global Governance.
3. Research on other conflicts around the world. Highlight the role played by the
UN in these conflicts. On a scale of 1-10 with 10 being the highest, come up
with your rating for the UN in each of these conflicts and state your reason for
such.
4. Reflect on the following: Has the UN successfully fulfilled its mandate in the realm
of Global governance?

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Submitting Your Work. If you do not have Internet Connectivity, neatly detach
this page from your module and submit via University Drop Box or by courier/
mail together with your other Learner Activity Worksheets once you reach the
prescribed Learning Checkpoint. If you have Internet connectivity, you may
answer directly on the online version of this worksheet through the University
Virtual Environment.

Closure
Well done! You have just finished Lesson 3 of this module.

If you have questions or need to make clarifications take note of them in the
space provided below to ask your Course Professor through direct messaging
or through the University Virtual Environment (UVE).

Now that you have completed Lesson 3, let us move on to the next
Notesinfrom
lesson thisthis Lesson
module.

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Just a Quick Recap!

o Countries trade with each other because they gain from trading. Countries
specialize in the production of commodities where they have comparative
advantage. With specialization and trading, production and consumption
possibilities are expanded.
o We say that a country has comparative advantage in producing a
commodity over another country if it can produce that commodity at
relatively lower cost than the other country can. This means that in terms
of commodities that have to be given up, a country with comparative
advantage on the commodity will give up less of the other commodity
than the other country will.
o International trade policy can be looked upon as a spectrum of policies
with the policy of free trade at one extreme and the policy of
protectionism on the other. Simply defined, free trade means that there is
no government interference with the flow of international trade. Any
departure from free trade designed to give some protection to local or
domestic industries from foreign competition is called protectionism.
o Some countries adopt protectionist trade policy because they want to
achieve social goals other than increasing national income. Others adhere
to the infant industry argument.
o Economic globalization can be understood as a process of absorbing
national economies into an interlinked and interdependent global market
economy.
o The Bretton Woods institutions created by the victors of the World War II in
1944 are the International Monetary Fund, World Bank and the General
Agreement on Tariffs and Trade. These institutions were created to aid the
recovery of war-torn countries and to foster economic cooperation among
states.
o The international economic system has been anchored in the neoliberal
paradigm since the 1980s. It involves reducing the government regulation
in order to extend the role of the private sector in the market and the
society. Global justice movements have sought to expose the
inadequacies of the system in addressing the needs of the developing
world and its frailties and vulnerability to financial crises.
o The United Nations (UN) was created in 1945 by the Allied Powers, the
victors of the Second World War. The mandate of the organization is to
maintain international peace and security and to foster international
cooperation in addressing humanitarian, social, economic, and cultural
issues,
o The United Nations Charter is comprised of six principal organs. These are
the Economic and Social Council, Trusteeship Council, and the
International Court of Justice, General Assembly, Security Council, and the
Secretariat.
o The Security Council is the most potent organ with the power to make
legally binding resolutions. However, it becomes easily incapacitated
whenever security interests involving the permanent members are at
stake.
o Reforms have long been raised to change the structure of the Security
Council to distribute the concentration of power and to foster inclusive
decision making for marginalized and excluded member-states.

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NOTE: Now that you have completed all the lessons in this module, it is time
to assess your learning and move on to the next module.

Check your work and prepare for submission and assessment. The succeeding
page will give you instructions on completing your requirements for this
module.

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Learning Checkpoint
Module Assessment

Now that you have completed the first module, it is time to

submit your learning output and take the module assessment. A
checklist is provided for you below.

☐ Learning Worksheets 3-5

o For students with no Internet Connectivity use the

University Drop Box/ Courier/ Mail for submission.
Neatly detach only the Learner Worksheets from this
module.

o Answer the Learning Activities through the

University Virtual Environment (UVE) platform.

☐ Module Assessment

o For students with no Internet Connectivity, contact

your Course Professor to make arrangements on taking
the Module Assessment (Quiz).

o Take the quiz on the University Virtual

Environment (UVE) platform.

END OF MODULE 2

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If you have completed all the items on the

checklist, you may move on to the next
module.

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