lOMoARcPSD|51946977

Contemporary-Notes-Final

Bachelor of Science in Information Technology (Eastern Visayas State University)

Scan to open on Studocu

Studocu is not sponsored or endorsed by any college or university

Downloaded by Aubrey Rose Atenta (atentaaubreyrose7@gmail.com)
 lOMoARcPSD|51946977

INTRODUCTION TO GLOBALIZATION • Political Globalization- refers to the

(PPT NOTES) intensification and expansion of political
interrelations across the globe
• Globalize- the emergence of an
• Geographical Globalization- Globalization
international network of economic systems.
is moving towards the trend of a borderless
• Theodore Levitt- A former professor at the
world.
Harvard Business School. Credited with
• GLOBALIZATION AS A PROCESS -
coining the term “globalization” It first
Globalization is viewed as multidimensional
appeared in his Harvard Business Review
set of social processes that generate and
article "The Globalization of
increase “worldwide social
Markets.”
interdependencies and exchanges while at
• Globalization is the word used to describe the same time fostering people a growing
the growing interdependence of the awareness of deepening connections
world’s economies, cultures, and between local and the distant.”
populations, brought about by cross-border
• GLOBALIZATION AS A CONDITIONS
trade in goods and services, technology, and
(GLOBALITY) - A social condition
flows of investment, people, and
characterized by trans-planetary
information (Peterson Institute for
connectivity and supra-territoriality.
International Economics, 2018).
• GLOBALIZATION AS AN IDEOLOGY-
• Globalization can thus be defined as the
Globalization exists in people’s
intensification of worldwide social
consciousness because is a set of coherent
relations which link distant localities in
and complementary ideas and belief of
such a way that local happenings are shaped
social order (Steger, 2005).
by events occurring many miles away and
1. Globalization is about the
vice versa (Giddens,1990).
liberalization and global integration
• Globalization can be defined as the of markets.
increasing interaction among and 2. Globalization is inevitable and
integration of diverse human societies in all irreversible.
important dimensions of their activities-- 3. Nobody is in charge of Globalization
economic, social, political, cultural, and 4. Globalization benefits everyone
religious (Aninat, 2021).
5. Globalization furthers the Spread
• Globalization is essentially the means by of Democracy in the World
which individuals, governments, companies, 6. Globalization requires a
and countries interact with and affect one global war on terror.
another, with the goal of helping to build
strong alliances that mutually benefit one CHARACTERISTICS OF GLOBALIZATION
another (CFI Eductation Inc., 2015). 1. Free Trade- Free trade occurs when goods and
• Economic Globalization- refers to the services can be bought and sold between countries
increasing interdependence of world or sub-national regions without tariffs, quotas or
economies as a result of the growing scale other restrictions being applied (Organization for
of cross-border trade of commodities and Economic Co-operation and Development, 2004).
services, flow of international capital and • Tariff- A tax on a good entering a given
wide and rapid spread of technologies county's market.
(Shangquan, 2000). • Quota- Specify a maximum amount of a
• Military Globalization- the process which foreign product that can enter a country in a
embodies the growing extensity and given year.
intensity of military relations among the 2. Liberalization- The freedom for businesspeople
political units of the world system (Held & or industrialists to incept or establish a business,
Mcgrew, 1998). commerce, or trade anywhere in his country of
• Environmental Globalization- involves an origin or a different country abroad (Bhasin, 2020).
intensifying, deepening and expansion of 3. Increase in Employment- Globalization helps
global networks leading to increasing companies increase their production capacity and
global uniformity and connectedness in set up operations in different parts of the world.
regular environmental management 4. Connectivity- Globalization allows an
practices (Grainer, 2011). international exchange of technology, literature,
and culture knowledge information and
treatment.

Downloaded by Aubrey Rose Atenta (atentaaubreyrose7@gmail.com)

 lOMoARcPSD|51946977

5. Interdependence- With the advent of • Modern Globalization

➢
globalization, countries have become more reliant Covers the period from the
on each other. seventeenth to early twentieth century
6. Cultural Exchange- Cross-cultural contacts (up until the First World War) and is
closely connected with the spread of
drastically increased because of cultural
all modernization transition effects.
globalization. ➢
Outlines the rise of nation state and
7. Urbanization- One of the consequences of the spread of industrialization.
globalization is the increase in urban centers.
GLOBALIZATION AND REGIONALISM
8. Standard of Living- With increased economic
• Regionalism is often seen as a political
activity and opportunities for employment, people
and economic phenomenon; however, this
have more money in their pockets.
encompasses a broader area. It can be
9. Production Cost- In a globalized world,
examined in relation to identities, ethics,
companies are free to establish their operations
religion, ecological sustainability, and
in areas where the cost of production is low.
health. Regionalism is also a process, and
10. Outsourcing- Globalization allows companies
must be treated as an “emergent, socially
to bring in third parties from outside the country to
constituted phenomenon”. This lesson will
manage specific processes.
look at regions as political entities and
examine what brings them together as they
WHAT CAUSED GLOBALIZATION?
interlock with globalization. The lesson will
• Improved Transport
be concluded by asking where all these
• Containerization
regionalisms are bringing us as members of
• Improved Technology a nation and citizens of the world. The
• Growth Of Multinational Companies official regional association now covers vast
• Growth Of Global Trading Blocks bindings of the world. The population of the
• Reduced Tariff Barriers countries that joined the Asia Pacific
• Firms Exploiting Gains from Economies of Council (APEC) alone comprised 37 percent
Scale of the world’s population in 2007. These
• Growth Of Global Media countries are also part of “smaller”
• Financial System Increasingly Global in organizations that include the Association of
Nature. Southeast Asian Nations, the Shanghai
• Improved Mobility of Capital Cooperative Organization, the North
• Increased Mobility of Labour American Free Trade Agreement, the
• Internet Caribbean and Pacific Group of States, and
the Union of
HISTORY OF GLOBALIZATION South American Nations. Even “isolationist”
• Archaic Globalization North Korea is part of the Regional Forum,
➢
refers to a predecessor state of the which discuss security issues in the region.
world before the appearance of
industrialization and nation state
• In the same way, the countries will find it
• Proto-Globalization difficult to reject all forms of global
➢
A period of the history of integration, it will also be hard for
globalization roughly spanning the
years between 1600 and 1800, them to turn their backs on their regions.
following the period of archaic Even if the UK leaves the EU, it must
globalization. continue to trade with its immediate
➢
The term describes the phase of neighbors and will, therefore, be forced to
increasing trade links and cultural implement many EU rules. None of this is to
exchange that characterized the say that regional organizations will remain
period immediately preceding the unaltered. The history of regionalism shows
advent of so-called "modern
globalization" in the 19th century. that regional organizations emerge as new
global concerns arise. The future of
• RISE OF EUROPEAN EMPIRES, AGE
regionalism will be contingent on the
OF EXPLORATION- Globalization
immense changes in global politics that will
became also a private business phenomenon
emerge in the 21st century
when chartered companies like British East
India company and Dutch East India
company were established.

Downloaded by Aubrey Rose Atenta (atentaaubreyrose7@gmail.com)

 lOMoARcPSD|51946977

The following are some of the examples of MILLENIUM DEVELOPMENT GOALS

Regional Organizations in Asia: (MDG’S)
• Eradicate extreme poverty and hunger.
• African Union (AU), • Achieve universal primary education.
• Association of Southeast Asian Nations • Promote gender equality and empower
(ASEAN), women.
• Arab League (AL), • Reduce child mortality.
• Caribbean Community (CARICOM), • Improve maternal health.
• Council of Europe (CoE), • Combat HIV/AIDS, malaria, and other
• Eurasian Economic Union (EEU), diseases.
• European Union (EU), • Ensure environmental sustainability.
• South Asian Association for Regional
Cooperation (SAARC), MULTI-LATERAL DEVELOPMENT BANKS
• Asian-African Legal Consultative • Multilateral development banks, or MDBs,
Organization (AALCO),
are supranational institutions set up by
• Union for the Mediterranean (UfM),
sovereign states, which are their
• Union of South American Nations (USAN).
shareholders. Their remits reflect the
PRODUCT LIFE CYCLE development aid and cooperation policies
➢
A product life cycle is the amount of time a established by these states. They have the
product goes from being introduced into the common task of fostering economic and
market until it's taken off the shelves.
➢
There are four stages in a product's life cycle social progress in developing countries by
—introduction, growth, maturity, and financing projects, supporting investment
decline. and generating capital for the benefit of all
➢
The introduction phase is the first time
customers are introduced to the new product. global citizens.
➢
If the product is successful, it then moves to • MDBs also play a major role on the
the growth stage. This is characterized by international capital markets, where they
growing demand, an increase in production,
and expansion in its availability. raise the large volume of funds required to
➢
The maturity stage of the product life cycle finance their loans.
is the most profitable stage, while the costs • Multilateral development banks (MDBs)
of producing and marketing decline. With originated in the aftermath of World War II
the market saturated with the product, to rebuild war-ravaged nations and stabilize
competition now higher than at other stages,
the global financial system.
and profit margins starting to shrink, some
analysts refer to the maturity stage as when • Today, MDBs fund infrastructure, energy,
sales volume is "maxed out". education, and environmental sustainability
➢
As the product takes on increased in developing countries.
competition as other companies emulate its • While commercial banks seek to make profits
success, the product may lose market share
on loans and other financial services, the goal
and begin its decline. Product sales begin to
decline due to market saturation and of MDBs is to issue grants and low-cost loans
alternative products, and the company may to improve the economic conditions of
choose to not pursue additional marketing impoverished or developing nations.
efforts as customers may already have • MDBs now operate throughout the world
determined themselves loyal to the and control trillions of dollars in assets.
company's products or not.
➢
A company often incurs higher marketing • There are two main forms of multilateral
costs when introducing a product to the development banks. The first, which includes
market but experiences higher sales as the largest and best-known institutions, makes
product adoption grows.
➢
Sales stabilize and peak when the product's loans and grants. These banks often
adoption matures, though competition and distinguish between poorer, borrowing
obsolescence may cause its decline. members and wealthier, non-borrowing
➢
The concept of product life cycle helps members. Examples include the World Bank,
inform business decision-making, from
pricing and promotion to expansion or cost- founded in 1945, and the Inter-American
cutting. Development Bank (IDB), founded in 1959.
• The second type of multilateral development
bank is formed by governments of low-
income countries that can then borrow
collectively via the MDB in order to secure
more favorable rates. The Caribbean
Development Bank (CDB), founded in
1969, is an example of this type.

Downloaded by Aubrey Rose Atenta (atentaaubreyrose7@gmail.com)

 lOMoARcPSD|51946977

CHAPTER 1: THE NATURE OF creates an imagery that the world is

GLOBALIZATION shrinking. Distance was a hindrance to
communication, but with innovations in
A. Defining Globalization
technology, communication becomes a lot
• The best scholarly description of easier, faster, and cheaper (Quiñanola &
globalization is provided by Manfred Fernandez, n.d.)
Steger who described the process as: “the
B. Localizing Globalization
expansion and intensification of social
relations and consciousness across world- • In the Philippines, globalization found
time and across world-space” (Steger, its way into the heart of Philippine
2013). society during the presidency of Fidel
• Expansion refers to “both the creation of Ramos in 1992-1998. He envisioned
new social networks and the multiplication Filipinos to be self-reliant and globally
of existing connections that cut across competitive by fostering ties with
traditional political, economic, cultural, and neighboring foreign economies, and by
geographic boundaries” (Steger, 2013). exploring other avenues for expanding
• Globalization has stretched and expanded international trade and investments.
relationships among nations and even • In achieving this, the Ramos
among people over the years. One of the administration dismantled monopolies in
agents for expanding such relationships is the communications and transportation
the emergence of non-government networks, privatized basic utilities
organizations (NGOs). These organizations provider like water, and liberalized trade
are mostly aid groups whose main objective (Bernardo & Tang, 2008 as cited in
is to alleviate the lives of people especially Fernandez et al., 2018). This paved the
those in distress (Fernandez et al., 2018). way for a cheaper travel and affordable
• Intensification refers to “the expansion, local and overseas communications that
stretching, and acceleration of these enabled people relations across and
networks” (Steger, 2013). beyond boundaries to thrive (Fernandez
• In most part of the contemporary world, et al., 2018).
social exchanges and activities have • Nevertheless, the way people relate and
already been intensified and accelerated interact with each other across
through the advancement of communications boundaries and borders has led the way
and transportation technologies. Years back, to the rise of an international society
it would take time for the recipient of a letter centering on cooperation among states
to receive it even if the sender lived not very with shared values as playing a key role
far. At present, everything has changed. in states’ policy outcomes (Michael,
Communication can be sent in a split of a 2001 as cited in Fernandez et al., 2018).
second and is readily available at the tip of Yet, globalization’s essence would be
the finger of the sender. One recent more understood if one looks at it in a
innovation that influences a large The variety of lenses since globalization is
Contemporary World 8 number of the inherently interdisciplinary in relation to
present generation is the social media. It the aspect that it could be learned and
makes people connected since it serves to appreciated by the people directly and
facilitate split second transfer of information indirectly affected by its impact
or communication from one person to (Fernandez et al., 2018).
another (Fernandez et al., 2018).
C. Globalization and its Effects To World Politics
• The final attribute of this definition relates to
the way people perceive time and space. • States formed themselves into an
Globalization is described as the pattern of association of states for the past decades so
growing interconnectedness of individuals that they could address together with their
and groups, whether in economic, political, political, economic, and even social issues.
or social realms. It has been suggested that This is seen as rise of strength of regional
because of globalization, the world is blocks (Fernandez et al., 2018).
reduced into a “global village” where time • For countries located along the West
and space seem to become increasingly Philippine Sea, the Association of South East
irrelevant (McLuhan & Powers, 1989). The Asian Nations (ASEAN) was established on
development in the contemporary world August 8, 1967 in Bangkok by the five

Downloaded by Aubrey Rose Atenta (atentaaubreyrose7@gmail.com)

 lOMoARcPSD|51946977

original member-countries: such organizations is to promote economic

Indonesia, prosperity.
Malaysia, Philippines, Singapore, • Aside from HFT, Global Economic
Thailand Organizations (GEO) have also played an
• While other ASEAN countries joined on: important role on the spread and influence
Brunei (January 8, 1984) Vietnam (July 18, of globalization in the economic arena. The
1995), Laos (July 23, 1997) Myanmar (July three major international economic
23, 1997), Cambodia (April 30, 1999). organizations are the World Bank, the
• The ASEAN Declaration states that the aims International Monetary Fund (IMF), and
of the and purposes of the association are: the World Trade Organization (WTO).
1. to accelerate the economic growth, The WTO emerged out of the General
social progress and cultural Agreement on Tariffs and Trade (GATT)
development in the region through in 1995, which delves more on the
joint endeavors in the spirit of equality arrangement The Contemporary World 13
and partnership in order to strengthen across countries that serve as a forum for
the foundation for a prosperous and negotiations on trading rules as well as a
peaceful community of Southeast mechanism for dispute settlements in trade
Asian Nations; and issues (Krueger, 1998 as cited in Fernandez
2. promote regional peace and stability et al., 2018).
through abiding respect for justice and • If globalization represents the many processes
the rule of law in relationship among that allow for the expansion and intensification of
countries in the region and adherence global connections, globalism is the widespread
to the principles of the United Nations belief among powerful people that the global
Charter (Fernandez et al., 2018). integration of economic markets is beneficial for
• In 1995, the ASEAN Head of State and everyone, since it spreads freedom and
Government re-affirmed that, “Cooperative democracy across the world (Steger, 2005)
peace and shared prosperity shall be the
E. Globalization in Relation to Culture and
fundamental goals of ASEAN.” Moreover, the
Communication
Treaty of Amity and Cooperation (TAC) in
Southeast Asia, signed at the First ASEAN • Globalization affected the realm of culture
Summit on February 24, 1976, declared that in and communication in many societies
their relations with one another, the High throughout the world. It has greatly changed
Contracting Parties should be guided by the how people live. It changed the way people
following fundamental principles: communicate to each other since they have
1. Mutual respect for the independence, been empowered to communicate fast even
sovereignty, equality, territorial if they are thousands of miles away from
integrity, and national identity of all each other. This also manifests that people’s
nations. culture has also been affected by
2. The right of every State to lead its globalization as manifested by the way
national existence free from external people live. People have behave differently
interference, subversion, or coercion. now as compared to the past (Fernandez et
3. Non-interference in the affairs of one al., 2018).
another. • Real time audio and visual communication
4. Settlement of differences or disputes by from almost everywhere in the world to
peaceful manner. almost anywhere in the world facilitates
5. Renunciation of the threat or use of interaction among people thousands of miles
force; and apart. People who have never met may
6. Effective cooperation among participate in one another’s lives through
themselves social media (Fernandez et al., 2018).
D. Globalization and its Effects on Economics • With this, it is already apparent that
technology is “shrinking the world” of the
• Globalization also has great effects in the present generation of the world’s citizens.
realm of economics. For one, it greatly People, in one way or another, are going into a
increased free trade. The rise of regional direction in which they act in concert and
blocks all over the world lead to facilitate easy cohort creating the conditions through which
trade relations among member-states of many of them imagine themselves as part of
regional blocks since one of the objectives of one world – global imaginary, which Marshal

Downloaded by Aubrey Rose Atenta (atentaaubreyrose7@gmail.com)

 lOMoARcPSD|51946977

McLuhan (1962) called the global village mandatory military service. In 2010, he
(Fernandez et al., 2018). started his comeback in South Korea. He
• Yet, globalization is also construed as potent picked up where he left off with K-pop fans,
medium for cultural imperialism. In many but it wasn’t until two years later that PSY
parts of the world, western culture is very rose to fame in the U.S. (Benjamin, 2012 as
noticeable. From music, to food, to fashion, to cited in Fernandez et al., 2018).
sports, to show businesses, and to almost • Political connectivity is also a product of
every aspect of human life. This is a globalization. A recent manifestation of this
manifestation of cultural imperialism. It refers connectivity was the Arab Spring, a series of
to the imposition by one usually politically or anti-government protests, uprisings and
economically dominant community of various armed rebellions that spread across the
aspects of its own culture onto another, non- Middle East in early 2011 (Manfreda, 2017
dominant community. It is a form of as cited in Fernandez et al., 2018).
imperialism in that the imposing community • The movement was triggered by an appeal
forcefully extends the authority of its way of to the Arabs to take back their country from
life over the other population by either the traditional corrupt elites that rule their
transforming or replacing aspects of the country. It was, in part, fueled by a sense of
nondominant community’s culture (Tobin, patriotism and social message that united the
2018 as cited in Arabs whether they were secularists or
Fernandez et al., 2018). Islamist, left wing groups or advocates of
liberal economic reforms, middle class or
F. Various Forms of Connectivity Brought by
poor (Manfreda, 2017 as cited in Fernandez
Globalization
et al., 2018).
• There are various forms of connectivity that • Social media had proven itself to be a good
have been brought about by globalization. mobilization tool to even a thousand people
They are diverse and affect society in a since it connected people in a variety of
variety of ways. This connectivity can be ways. The first mass protest in Egypt was
economic in the sense that when the West announced on Facebook, which convinced
experiences financial crisis in their thousands of people to protest. It spread
homeland, many other countries would also across other Arab nations, manifesting
be affected by such crisis (Fernandez et al., globalization’s role of connecting people
2018). even in the realm of politics (Manfreda,
• One should take note that every country’s 2017 as cited in Fernandez et al., 2018).
economy is intertwined with every other • Yet, one must take note that the effects of
country’s economy. Hence, when the United the degrees of interconnection are uneven
States almost experienced an economic and unequal. The effects of Arab Spring may
meltdown in 2008, the rest of the world stated be more impactful on one country but not in
to be in chaos as well. The reason for this is another. One nation may be greatly affected
that most countries in the world have financial by a financial crisis while one may not be
connectivity with the United States. affected at all. This manifests the uneven
• For instance, many foreign producers nature of the effects of globalization.
depend on exports to the United Sates for Globalization is a process, and in a process,
their own economic health. If the United effects are often, not uniform and mostly
States is in a recession, and American unequal (Fernandez et al., 2018).
consumers cut back spending on things like CHAPTER 2. THE GLOBAL ECONOMY
computers or clothes, the countries that
manufacture those products are in trouble. A. Defining Economic Globalization
• Connectivity can be felt not only in
• The International Monetary Fund (IMF)
economics but also in the music industry
(2008) regards “economic globalization” as
(cultural). An example of this is the popularity
a historical process representing the result of
of Psy, triggered by his pop song, Gangnam
human innovation and technological
Style, when it garnered 1 billion views on
process. It is characterized by the increasing
YouTube in 2012. For the South Koreans, Psy
integration of economies around the world
is not new to them. In fact, Psy, has been
through the movement of goods, services,
around for more than a decade, but in 2006, he
and capital across borders. These changes
took time off from music to get married and
are the products of people, organizations,
complete two years of
institutions, and technologies.

Downloaded by Aubrey Rose Atenta (atentaaubreyrose7@gmail.com)

 lOMoARcPSD|51946977

• Economic globalization has several Paris. The countries thus established a

interwoven dimensions, such as (1) the common The Contemporary World 5 basis
globalization of trade of goods and for currency prices and a fixed exchange
services; (2) the globalization of financial rate system – all based on the value of gold.
and capital markets; (3) the globalization • Keynesian Liberal Wave - During the last
of technology and communication; (4) the phase of the Second World War, delegates
globalization of production (Fernandez et from different states assembled in the United
al., 2018). States for the Bretton Woods Conference
(Quinañola & Fernandez, n.d.). The world
B. Waves of Economic Globalization
leaders sought to create a global economic
• The waves of economic globalization are system that would ensure a longer-lasting
categorized into three – Early Wave, global peace. They believed that one of the
Keynesian Liberal Wave, and Neo- ways to achieve this goal was set up a
Liberal Wave. network of global financial institutions that
• Early Wave- According to historians Dennis would promote economic interdependence
O. Flynn and Arturo Giraldez, the age of and prosperity.
globalization began when “all important • The Bretton Woods system was
populated continents began to exchange inaugurated in 1944 during the United
products continuously –both with each other Nations Monetary and Financial Conference
directly and indirectly via other continents– to prevent the catastrophes of the early
and in values sufficient to generate crucial decades of the century from reoccurring and
impacts on all trading partners” affecting international ties.
• The famous of which that lasted for 2,000 • The Bretton Woods system was largely
years, from ancient times into the 16th influenced by the ideas of British economist
century was known as the Silk Road. The John Maynard Keynes who believed that
coverage of this trade was so vast economic crises occur not when a country
connecting by land and sea from Asia to the does not have enough money, but when money
far end of Europe, Middle East as well as is not being spent and, thereby, not moving.
Africa. During this period traded goods were This active role of governments in managing
predominantly artisan goods, silk, spices, spending served as the anchor for what would
ceramics, textile, compasses, gun powder be called a system of global
from India and China. Keynesianism.
• The Age of Exploration, from early 15th to • Economic setbacks in the inter-war years
17th century was the pivotal era that from 1918-1938 such as the Great
“changed the shape of the world and the Depression in 1929 and 1930s motivated
course of history.” European made an political and financial leaders to set the
unprecedented level of exploration because institutional foundations for the
of the growing numbers of professional establishment of three international
explorer and navigators. European ships economic organizations-World Bank,
travelled around the world in search for International Monetary Fund (IMF),
trading routes and new lands to colonize. World Trade Organization (WTO)
New age of global commercial capitalism 1. Delegates at Bretton Woods agreed to
was laid during this period. create two financial institutions. The first
• Flynn and Giraldez (1995) traced back to was the International Bank for
1571 with the establishment of the galleon Reconstruction and Development (IBRD,
trade that connected Manila in the or World Bank) to be responsible for
Philippines and Acapulco in Mexico. This funding postwar reconstruction projects. It
was the first time that the Americas were was a critical institution at a time when
directly connected to Asian trading routes. many of the world’s cities had been
For Filipinos, it is crucial to note that destroyed by the war). The World Bank was
economic globalization began on the primarily designed for the Marshall Plan to
country’s shores extend financial loans to reconstruct the
• A more open trade system emerged in 1867 devastated economies in Europe. By 1950s,
when, following the lead of the United loans were expanded to the developing
Kingdom, the United States and other countries in the world to provide funds to
European nations adopted the gold standard finance various industrial projects
at an international monetary conference in

Downloaded by Aubrey Rose Atenta (atentaaubreyrose7@gmail.com)

 lOMoARcPSD|51946977

2. The second institution was the investment measures, and food safety
International Monetary Fund (IMF), standards.
which was to be the global lender of last • The Bretton Woods goals and strategies were
resort to prevent individual countries from macroeconomic stability, import
spiraling into credit crises. If economic substitution, and governance reform.
growth in a country slowed down because 1. Macroeconomic Stability- To maintain
there was not enough money to stimulate the macroeconomic stability, the US dollar was
economy, the IMF would step in. It was also the only international standard currency of
established to administer responsibility to choice peg at $35 per ounce of gold. The IMF
coordinate and regulate international was expected to maintain an equilibrium
monetary transaction as well as to promote functioning of the gold standard that if a
global economic prosperity and political certain country gets short of its balance of
stability. Unfair trade practices that might payments, financial assistance is provided.
harm worldwide stability are discouraged The monopolization of US dollars led to the
(Fernandez et al., World Bank International over valuation relative to other currencies to
Monetary Fund (IMF) World Trade the extent that some countries doubted the
Organization (WTO) (formerly known as supply of gold in the United States treasury.
GATT) The Marshall Plan, also known as As a response, foreign countries converted
the European Recovery Program, was a U.S. their US dollars into gold thereby depleting
program providing aid to Western Europe US gold reserves. With the pressure mounting
following the devastation of World War II. It President Nixon of United States announced
was enacted in 1948 and provided more than on August 15, 1971 to abandon the gold-
$15 billion to help finance rebuilding efforts exchange standard.
on the continent. The brainchild of U.S. 2. Import Substitution- Domestic industries
Secretary of State George C. Marshall, for were built in the 50s and 60s to replace
whom it was named, it was crafted as a four- imported products and promote domestic
year plan to reconstruct cities, industries and industrial development and eventually achieve
infrastructure heavily damaged during the industrialization. This will move people from
war and to remove trade barriers between primary industry into manufacturing and
European neighbors—as well as foster better jobs. Improvement of jobs create
commerce between those countries and the substantial demand for goods and services.
United States. In addition to economic The availability of financial capital was a
redevelopment, one of the stated goals of the defining factor. Countries that adopted a
Marshall Plan was to halt the spread combination of import substitution
communism on the European continent. The industrialization and export promotion
implementation of the Marshall Plan has perform better than those who did not. This
been cited as the beginning of the Cold War was the case of the Asian Tiger neighbors
between the United States and its European when they aggressively built their local
allies and the Soviet Union (History.com industries and unceasingly promoted exports.
Editors, 2009).8 The Contemporary World 7 3. Governance Reform- Loans extended to
2018). To this day, both institutions (World poor countries from IMF often comes with
Bank and IMF) remain key players in conditions such as they should adopt market
economic globalization. oriented economic models and open up their
3. Shortly after Bretton Woods, various economies to the foreign competition and
countries also committed themselves to further gradual opening of markets. Another reform
global economic integration through the instituted by IMF is to foster good
General Agreement on Tariffs and Trade governance through eradicating corruption.
(GATT) in 1947. GATT’s main purpose was Prosperity is impossible to attain if public
to reduce tariffs and other hindrances to free funds coming from foreign loans intended to
trade. The provisional GATT endured for improve social services end up in private
nearly fifty years, until it was replaced by the pockets. The practice of crony capitalism
World Trade Organization (WTO) in 1995. was rampant among developing countries.
The WTO opened a new forum within which a Crony capitalism is a term describing an
broad range of international issues would be economy in which success in business
negotiated, including not just traditional trade depends on close relationships between
issues on tariff and non-tariff barriers, but also business people and government officials. It
intellectual property rights, trade related may be exhibited by favoritism in the
distribution of legal permits, government

Downloaded by Aubrey Rose Atenta (atentaaubreyrose7@gmail.com)

 lOMoARcPSD|51946977

grants, special tax breaks, or other forms of leverage in the post-war peace negotiations.
state interventionism. Arab OPEC members also extended the
• Neo-Liberal Wave - In early 1970s, the embargo to other countries that supported
prices of oil rose sharply because of the Israel including the Netherlands, Portugal, and
Organization of Arab Petroleum Exporting South Africa. The embargo both banned
Countries’ (OAPEC, the Arab member- petroleum exports to the targeted nations and
countries of the Organization of Petroleum introduced cuts in oil production. Several
Exporting Countries or OPEC) imposition of years of negotiations between oil-producing
an embargo in response to the decision of the nations and oil companies had already
United States and other countries to resupply destabilized a decades-old pricing system,
the Israeli military with the needed arms which exacerbated the embargo’s effects
during the Yom Kippur War. Arab countries (Office of the Historian, n.d.).9 The
also used the embargo to stabilize their Contemporary World 11 believing that the free
economies and growth. The “oil embargo” market can produce the best results. Finally,
affected the Western economies that were they pressured governments, particularly in
reliant on oil (Office of the Historian, n.d.). To the developing world, to reduce tariffs and
make matters worse, the stock markets crashed open their economies, arguing that it is the
in 1973-1974 after the United States stopped quickest way to progress
linking the dollar to gold, effectively ending • The Global Financial Crisis and the
the Bretton Woods system. Challenge to Neoliberalism- Neoliberalism
• The result was a phenomenon that Keynesian came under significant strain during global
economics could not have predicted – a financial crisis of 2007-2008 when the world
phenomenon called stagflation, in which a experienced the greatest economic downturn
decline in economic growth and employment since the Great Depression. The crisis can be
(stagnation) takes place alongside a sharp traced back to the 1980s when the United
increase in prices (inflation) States systematically removed various
• Economists like Friedman used the economic banking and investment restrictions.
turmoil to challenge the consensus around • The scaling back of regulations continued
Keynes’s ideas. What emerged was a new until the 2000s, paving the way for a brewing
form of economic thinking that critics crisis. In their attempt to promote the free
labeled neoliberalism. From the 1980s market, government authorities failed to
onward, neoliberalism became the codified regulate bad investments occurring in the US
strategy of the United States Treasury housing market. Taking advantage of "cheap
Department, the World Bank, the housing loans,” Americans began building
International Monetary Fund (IMF), and houses that were beyond their financial
eventually the World Trade Organization capacities. To mitigate the risk of these loans,
(WTO). The policies they forwarded came banks that were lending house owners' money
to be called the Washington Consensus pooled these mortgage payments and sold
• The term Washington Consensus was named them as "mortgage-backed securities”
after the key players in Washington headed (MBSs). One MBS would be a combination
by President Ronald Reagan of US and of multiple mortgages that they assumed
Prime Minister Margaret Thatcher of would pay a steady rate. Since there was so
England (Fernandez et al., 2018). much surplus money circulating, the demand
• The Washington Consensus required for MBSs increased as investors clamored
governments to implement the structural for more investment opportunities. In their
adjustments measures to qualify for loans haste to issue these loans, however, the
(Steger, 2009). It advocates pushed for banks became less discriminating. They The
minimal government spending to reduce Contemporary World 12 began extending
government debt. They also called for the loans to families and individuals with
privatization of government-controlled dubious credit records-people who were
services like water, power, communications, unlikely to pay their loans back. These high
and transport, During the 1973 Arab Israeli risk mortgages became known as sub-prime
War, Arab members of the Organization of mortgages.
Petroleum Exporting Countries (OPEC) • Financial experts wrongly assumed that, even
imposed an embargo against the United if many of the borrowers were individuals and
States in retaliation for the U.S. decision to families who would struggle to pay, a majority
re-supply the Israeli military and to gain would not default. Moreover, banks

Downloaded by Aubrey Rose Atenta (atentaaubreyrose7@gmail.com)

 lOMoARcPSD|51946977

thought that since there were so many a liberal global economy (Gilpin & Gilpin,
mortgages in just one MBS, a few failures 2001). The US emerged as a superpower
would not ruin the entirety of the investment. that was willing to shape the global
Banks also assumed that housing prices would economy according to its preferences.
continue to increase. Therefore, even if Today’s economic globalization, the level of
homeowners defaulted on their loans, these global economic interconnectedness, and the
banks could simply reacquire the homes and presence of many multinational corporations
sell them at a higher price, turning a profit. could be traced back to the efforts by the US
Sometime in 2007, however, home prices to put in place a liberal economic order.
stopped increasing as supply caught up with • The neo-liberal institutionalist theory
demand. Moreover, it slowly became apparent explains that international institutions, such
that families could not pay off their loans. This as the IMF, World Bank, and the GATT,
realization triggered the rapid reselling of have an independent impact on the global
MBSs, as banks and investors tried to get rid economy. Governing arrangements called
of their bad investments. This dangerous cycle regimes, as Robert Keohane (1984) argued,
reached a tipping point in September 2008, explain the endurance of international
when major investment banks like Lehman cooperation in the absence of a hegemon.
Brothers collapsed, thereby depleting major Neo-liberal institutionalists maintain that
investments. regimes create regularity in actors’ behavior
• The crisis spread beyond the United States and expectations, which is why the three
since many investors were foreign institutions persisted as the hegemon
governments, corporations, and individuals. (referring to United States) experienced
The loss of their money spread like wildfire economic and political decline.
back to their countries. These series of
D. The Economic Globalization Today
interconnections allowed for a global
multiplier effect that sent ripples across the • Exports, not just the local selling of goods and
world. Until now, countries like Spain and services, make national economies grow at
Greece are heavily indebted and debt relief present. In the past, those that benefited the
has come at a high price. Greece has been most from free trade were the advanced
forced by Germany and the IMF to cut back nations that were producing and selling
on its social and public spending. Affecting industrial and agricultural goods. When more
services like pensions, health care, and various countries opened their economies to take
forms of social security, these cuts have been advantage of increased free trade, the shares of
felt most acutely by the poor. Moreover,10 the percentage began to change. The WTO-led
The Contemporary World 13 the reduction in reduction of trade barriers, known as trade
government spending has slowed down liberalization, has profoundly altered the
growth and ensured high levels of dynamics of the global economy.
unemployment. The United States recovered • In the recent decades, partly because of these
relatively quickly thanks to a large increased exports, economic globalization has
Keynesian-style stimulus package that ushered in an unprecedented spike in global
President Barack Obama pushed for in growth rates. According to the IMF, the global
his first months in office. The same cannot per capita GDP rose over five-fold in the
be said for many other countries. second half of the 20th century. It was this
C. Perspectives on Economic Globalization growth that created the large Asian
economies like Japan, China, Korea, Hong
• The hegemonic stability theory (HST) Kong, and Singapore.
indicates that the international system is • Economic globalization remains an uneven
more likely to remain stable when a single process, with some countries, corporations,
nation-state is the dominant world power, or and individuals benefitting a lot more than
hegemon. When a hegemon exercises others. The series of trade talks under the
leadership, either through diplomacy, WTO have led to unprecedented reductions in
coercion, or persuasion, it is actually tariffs and other trade barriers, but these
deploying its "preponderance of power." processes have often been unfair.
• The hegemonic stability theory argues that 1. First, developed countries are often
the preponderance of power and the protectionists, as they repeatedly refuse
willingness of the United States to act as a to lift policies that safeguard their
hegemon made possible the establishment of primary products that could otherwise be

Downloaded by Aubrey Rose Atenta (atentaaubreyrose7@gmail.com)

 lOMoARcPSD|51946977

overwhelmed by imports from the neo-liberal framework of globalization –

developing world. The best example of deregulation of markets, liberalization of
this double standard is Japan’s trade, privatization of state-owned
determined refusal to allow rice imports enterprises, and very recently, the global war
into the country to protect its farming on terror.
sector. Faced with these blatantly
B. The Five Core Claims of Market Globalism
protectionist measures from powerful
countries and blocs, poorer countries can • Manfred Steger (2009) as cited in Fernandez
do very little to make economic et al. (2018) has stressed that globalization
globalization more just. Trade could be summarized into five core claims:
imbalances, therefore, characterize 1. Globalization is about the liberalization and
economic relations between developed global integration of markets.
and developing countries. 2. Globalization is inevitable and irreversible.
2. The beneficiaries of global commerce 3. Nobody is in charge of globalization.
havebeenmainlytransnational 4. Globalization benefits everyone in the long
corporations (TNCs) and not governments. run
And like any other business, these TNCs 5. Globalization furthers the spread of
are concerned more with profits than with democracy in the world
assisting the social programs of the
governments hosting them. Host countries, 1. Globalization is about the liberalization
in turn, loosen tax laws, which prevents and global integration of markets.
➢
wages from rising, The first core claim of
while sacrificing social and globalization’s essence is that it simply
environmental programs that protect the espouses the idea of the inevitability of the spread
underprivileged members of their of the ideals of free trade and free enterprise to as
societies. The term “race to bottom” many states and nations across the globe.
refers to countries’ lowering their labor ➢
However, one of its sad effects is that it
standards, including the protection of paved the way to many governments’
workers’ interests, to lure in foreign “hands off” attitude towards the interest of
investors seeking high profit margins at large transnational and multi-national
the lowest cost possible. Governments corporation. During the late Gina Lopez’
weaken environmental laws to attract stint as DENR secretary, she made a stir by
investors, creating fatal consequences on requiring mining companies –many of them
their ecological balance and depleting transnational corporations– to strictly
them of their finite resources (like oil, follow Philippine laws with regards the
coal, and minerals). environment
CHAPTER III. MARKET GLOBALISM AND 2. Globalization is inevitable and irreversible
➢
INTEGRATION For the market-globalist
perspective, the coming of
A. Defining Market Globalization globalization would be an absolute certainty. In
fact, once it happens, there is no turning back
• Market globalism is a hegemonic system of
since globalization is inevitable and irreversible.
ideas that makes normative claims about a ➢
set of social processes called globalization. As a process, globalization
• In the 1990s, globalization took center stage did not happen overnight. It is a product of the
ever-increasing innovativeness of human spirit.
to cater the agenda of the global social
The advancement of science and technology
elites. The era saw the emergence of a
facilitated globalization’s encroachment to many
movement that espoused the creation of a
aspects of people’s lives whether collectively or
global free market and the spread of
individually since the products of globalization
consumerist values around the globe. The
are, often, employed as means to address problems
movement was not just about the free
that have confronted humanity as a whole
exchange of material things, it also
influenced people’s attitudes and values.
It aimed to shrink the world. 3. Nobody is in charge of globalization.
➢ The claim is based on the classical
• After the collapse of the Soviet Union in the concept of “self-regulating” market.
early 1990’s, power social elites in Globalists would just accomplish the
industrialized countries pushed to sell their ought and the aspect of what must be
version globalization. It popularized the

Downloaded by Aubrey Rose Atenta (atentaaubreyrose7@gmail.com)

 lOMoARcPSD|51946977

done as dictated by the waves of the legitimate challenge to globalization –

process of globalization. terrorism.
➢
The question on who owns • September 11 attacks, also called 9/11
responsibility for whatever its effects attacks, were a series of airline hijackings
would strongly be taken into and suicide attacks committed in 2001 by
consideration since globalization would 19 militants associated with the Islamic
not pin point who is in charge. This is extremist group al-Qaeda against targets in
where corporate social responsibility the United States, the deadliest terrorist
comes in. Even if no one is technically attacks on American soil in U.S. history
in charge in globalization, the players
(Bergen, 2020)
should be responsible for its effects
since those who are affected are human • Al-Qaeda, meaning “the base”, is a broad-
beings who are the recipients of the based militant Islamist organization
good and bad effects of this process. founded by Osama bin Laden in the late
4. Globalization benefits everyone in the long 1980s. Al- Qaeda began as a logistical
run. network to support Muslims fighting
➢
With globalization bringing a lot of against the Soviet Union during the
improvements on the things that people Afghan War; members were recruited
use on the way they live, it would be logical through the Islamic world. When the
to assert that globalization would benefit Soviets withdrew from Afghanistan in 1989,
the organization dispersed but continued to
everyone in the long run. Globalization
oppose what its leaders considered corrupt
could bring economic growth and progress
Islamic regimes and foreign (i.e., U.S.)
to the non-affluent nations as well as
presence in Islamic lands.
provide them with an opportune space to
• Market globalism morphed into imperial
get involved with the great benefits that it
globalism. Claims 1 and 4 which are the
has provided to the world.
➢
backbone of market globalism remained
Nevertheless, there is also the danger that
largely intact but the determinist language
the poorer nations and its citizens would of Claim 2, however, came under sustained
also have greater chances to be exploited criticism by commentators who read the al-
since globalization could also break a Qaeda attacks as exposing the dark side of
nation’s protective barriers on the realm of globalization. Some proclaimed the
trade and commerce. This is quite true and imminent ‘collapse of globalism’, worrying
it has already happened. After all, one of the that the terrorist attacks would usher in a
basic characteristics of globalization is that its new age of cultural particularism and
economic protectionism.
effects are uneven. Yet the globalist would
• This paves the way for the Claim 6 of
assert that weighing the positive and
globalization: you need a war on terror to
negative effects of globalization, it would
market globalization’s discursive arsenal
positively affect many people in the long run. (Fernandez et al., 2018). Lastly, it also worth
5. Globalization furthers the spread of noting that one observation by many
democracy in the world. scholars of globalization is that
➢
The most obvious strategy by which globalization is Americanization or
neo-liberals generate popular support for
McDonaldization of the world.
the equation of democracy and the market is
discrediting traditionalism and socialism McDonaldization is a global phenomenon,
➢
A globalist logically regards freedom, free driven by Western corporations, the
markets, and democracy as one and the same economic power and cultural dominance
terms of the West, and as such it leads to a global
C. Challenges of Market Globalism and homogenization of economic and social
Integration life.
• In the 1990’s, the social power elites of D. Global Corporation
industrialized countries use the soft • In early historical periods as both cities
language, “market globalization” to define and countries extended their reach beyond
their imperial activities. After the September their own borders, this view holds a form
11th attacks, the power elites saw a of globalization was initiated, which then
followed complex patterns of interactive
engagements organized through trade and
directly influenced by

Downloaded by Aubrey Rose Atenta (atentaaubreyrose7@gmail.com)

 lOMoARcPSD|51946977

the emergent and subsequently dominant transnational, manufacturers

technologies. play the central roles in
• The contemporary global corporation is coordinating production
simultaneously and commonly referred to networks. This is the
either as a multinational corporation characteristic of a capital-and-
(MNC), a transnational corporation technology intensive industries
(TNC), an international company, or a such as automobiles aircraft,
global company. Those offered by Iwan computers, semiconductors,
(2012) are practically useful. and heavy machinery.
• Global Corporation Manufacturing plants would
1. International Companies are operate in economies of scale not
importers and exporters, only confined in their home
typically without investment countries but to different parts of
outside of their home country. the world in which comparative
2. Multinational Companies have advantage warrants (Gereffi,
investments in other countries, 1999).
but do not have coordinated 3. The increasing role performed through
product offerings in each country. the global system by financial elements
They are more focused on adapting and emergence of the global financial firm
their products and services to each • Transactions done within and
individual local market. abroad are facilitated with ease and
3. Global Companies have invested assured securely due to the
in and are present in many coordination of international banking
countries. They typically market system. Transfer of funds is smooth
their products and services to each sailing regardless of the volume of
individual local market. amount.
4. Transnational Companies are E. 25 U.S MEGACORPORATIONS
more complex organizations which
have a central corporate facility • The following are the 25 major American
corporations whose 2010 revenues
but give decision making,
surpass the 2010 Gross Domestic
research and development (R&D)
Product (GDP) of entire countries, often
and marketing powers to each
with a few billion to spare
individual foreign markets.
1. Yahoo! is an American web services
• There are three fundamental
provider headquartered in Sunnyvale,
innovations that have substantially
California, and owned by Verizon
changed the character of global
Media. Yahoo was one of the pioneers of
corporation:
the early Internet era in the 1990s
1. The advent and impact of
(“Yahoo”, n.d.).
digitalization in instantaneous
2. Visa Inc. is an American
global communication
multinational financial services
• Production of goods and
corporation headquartered in Foster
services can now be forecasted
City, California, United States. It
with greater accuracy because
facilitates electronic funds transfers
orders from other countries can
throughout the world, most commonly
be booked through the use of
through Visa-branded credit cards,
digital multimedia.
gift cards, and debit cards
2. The structural transformation
3. eBay Inc. is an American
of global commerce from
multinational e-commerce
producer driven commodity to
corporation based in San Jose,
buyer-driven.
California that facilitates consumer-to-
•A commodity chain refers to the
consumer and business-to-consumer
whole range of activities involved
sales through its website.
in the design, production, and
4. Nike, Inc. is an American
marketing of a product
multinational corporation that is
• While producer-driven engaged in the design, development,
commodity chains are those in
manufacturing, and worldwide
whichlarge,usually marketing and sales of footwear,

Downloaded by Aubrey Rose Atenta (atentaaubreyrose7@gmail.com)

 lOMoARcPSD|51946977

apparel, equipment, accessories, and 14. General Motors Company is an

services. American multinational corporation
5. Consolidated Edison Inc., headquartered in Detroit that designs,
commonly known as Con Edison or manufactures, markets, and
Con Ed, is one of the largest investor- distributes vehicles and vehicle parts,
owned energy companies in the and sells financial services, with global
United States, with approximately $12 headquarters in Detroit's Renaissance
billion in annual revenues as of 2017, Center
and over $48 billion in assets. 15. Berkshire Hathaway Inc. is an
6. McDonald's is an American fast American multinational conglomerate
food company, founded in 1940 as a holding company headquartered in
restaurant operated by Richard and Omaha, Nebraska, United States. It is a
Maurice McDonald, in San holding company for a multitude of
Bernardino, California, United States. businesses. It's run by Chairman and
7. Amazon.com, Inc., is an American CEO Warren Buffett.
multinational technology company 16. The Federal National Mortgage
based in Seattle, Washington that Association, commonly known as
focuses on e-commerce, cloud Fannie Mae, is a United States
computing, and artificial intelligence. government sponsored enterprise and,
8. Morgan Stanley is an American since 1968, a publicly traded company.
multinational investment bank and Fannie Mae does not originate or provide
financial services company mortgages to borrowers. It purchases
headquartered at 1585 Broadway in the and guarantees them via the secondary
Morgan Stanley Building, Midtown mortgage market
Manhattan, New York City 17. ConocoPhillips is an American
9. Cisco Systems, Inc. is an American multinational energy corporation. It
multinationaltechnology is the world's largest independent
conglomerate that develops, exploration and production (E&P)
manufactures and sells networking company based on proved reserves and
hardware, telecommunications production of liquids and natural gas.
equipment and other high-technology 18. Chevron Corporation is an
services and products American multinational energy
10. Pepsi is a carbonated soft drink corporation. One of the successor
manufactured by PepsiCo. Originally companies of Standard Oil, it is
created and developed in 1893 by Caleb headquartered in San Ramon, California,
Bradham and introduced as Brad's and active in more than 180 countries.
Drink, it was renamed as Pepsi-Cola on 19. Exxon Mobil Corporation is an
August 28, 1898, and then as Pepsi in American multinational oil and gas
1961. corporation headquartered in Irving,
11. Apple Inc. is an American Texas
multinational technology company 20. The Procter & Gamble Company
headquartered in Cupertino, California, (P&G) is an American multi-national
that designs, develops, and sells consumer goods corporation. It
consumer electronics, computer specializes in a wide range of personal
software, and online services. health/consumer health, and personal
12. Microsoft Corporation is an care and hygiene products
American multinational technology 21. Ford Motor Company is an
company with headquarters in American multinational automaker.
Redmond, Washington. It develops, It was founded by Henry Ford and
manufactures, licenses, supports and incorporated on June 16, 1903. The
sells computer software, consumer company sells automobiles and
electronics, personal computers, and commercial vehicles under the Ford
related services. brand and most luxury cars under the
13. Costco Wholesale Corporation, Lincoln brand.
doing business as Costco, is an 22. The Bank of America Corporation
American multinational corporation is an American multinational
which operates a chain of investment bank and financial services
membership-only warehouse clubs company based in Charlotte, North

Downloaded by Aubrey Rose Atenta (atentaaubreyrose7@gmail.com)

 lOMoARcPSD|51946977

Carolina with central hubs in New York 3. A state has a structure of government
City, London, Hong Kong, that crafts various rules that people
Minneapolis, and Toronto. (society) follow. 4. The state has
23. General Electric Company is an sovereignty over its territory.
American multinational conglomerate Sovereignty refers to internal and
where its products and services range external authority.
from aircraft engines, power • Internally, no individuals or groups can
generation, and oil and gas production operate in each national territory by ignoring
equipment to medical imaging, the state. This means that groups like
financing and industrial products churches, civil society organizations,
24. Wells Fargo & Company is an corporations, and other entities must follow
American multinational financial the laws of the state where they establish
services company headquartered in San their parishes, offices, or headquarters.
Francisco, California, with central • Externally, sovereignty means that a state's
offices throughout the United States. It policies and procedures are independent of
is the world's fourth-largest bank by the interventions of other states. Russia or
market capitalization and the third China, for example, cannot pass laws for the
largest bank in the US by total assets. Philippines and vice versa.
25. Walmart Inc. is an American • According to Anderson (1983), the nation is
multinational retail corporation that an "imagined community.” It is limited
operates a chain of hypermarkets, because it does not go beyond a given
discount department stores, and "official boundary” and because rights and
grocery stores responsibilities are mainly the privilege and
CHAPTER IV: GLOBAL INTERSTATE concern of the citizens of that nation.
SYSTEM • Most nations strive to become states.
A. Attributes of Today’s Global System Nation-builders can only feel a sense of
fulfillment when that national ideal assumes
• Claudio and Abinales (2018) stated that the an organizational form whose authority and
world politics today has four key attributes: power are recognized and accepted by “the
1. There are countries or states that are people.” If there are communities that are
independent and govern themselves. not states, they often seek some form of
2. These countries interact with each other autonomy within their “mother states.” This
through diplomacy. is why, for example, the nation of Quebec,
3. There are international organizations, like though belonging to the state of Canada, has
the United Nations (UN), that facilitate these different laws about language. They are
interactions. French speaking and require French
4. Beyond simply facilitating meetings language competencies for their citizens
between states, international organizations • There are also single nations with multiple
also take on lives of their own. The UN, for states. The nation of Korea is divided into
example, apart from being a meeting ground North and South Korea, whereas the
for presidents and other heads of state, also “Chinese nation" may refer to both the
has task-specific agencies like the World People's Republic of China (the mainland)
Health Organization (WHO) and the and Taiwan.
International Labor Organization (ILO). • There are states with multiple nations. The
B. Defining Nation-State nation of Scotland, for example, has its own
flag and national culture but still belongs to
• The nation-state is composed of two non- a state called the United Kingdom
interchangeable terms. Not all states are • Nation and state are closely related
nations and not all nations are states. In because it is nationalism that facilitates
layman's terms, state refers to a country and state formation. In the modern and
its government (i.e. the government of the contemporary era, it has been the15
Philippines). Claudio and Abinales (2018) nationalist movements that have allowed for
articulated that a state has four attributes: the creation of nation-states. States become
1. It exercises authority over a specific independent and sovereign because of
population called its citizens. nationalist sentiment that clamors for this
2. It governs a specific territory. independence. Sovereignty is, thus, one of

Downloaded by Aubrey Rose Atenta (atentaaubreyrose7@gmail.com)

 lOMoARcPSD|51946977

the fundamental principles of modern state • The Metternich system, also known as the
politics. Congress system, was a series of meetings
called among the great powers of Europe to
C. The Interstate System
discuss problems and attempt to resolve
• The origins of the present-day concept of issues without violence. Klemens von
sovereignty can be traced back to the Treaty Metternich was the architect of the Vienna
of Westphalia, which was a set of Congress of 1814 that initiated the Congress
agreements signed in 1648 to end the Thirty system.
Years' War between the major continental
D. Internationalism
powers of Europe. After a brutal religious
war between Catholics and Protestants, the • The Westphalian and Concert systems
Holy Roman Empire, Spain, France, divided the world into separate, sovereign
Sweden, and the Dutch Republic designed a entities. Some, like Bonaparte, directly
system that would avert wars in the future challenged the system by infringing on other
by recognizing that the treaty signers states' sovereignty. While others imagine a
exercise complete control over their system of heightened interaction between
domestic affairs and swear not to meddle in various sovereign states, particularly the
each other's affairs. desire for greater cooperation and unity
• The Westphalian system provided among states and peoples. This desire is
stability for the nation of Europe, until it called internationalism. Internationalism
faced its first major challenge by Napoleon comes in different forms, but the principle
Bonaparte. Bonaparte believed in spreading may be divided into two broad categories:
the principles of the French Revolution – Liberal Internationalism, Socialist
liberty, equality, and fraternity– to the rest of Internationalism.
Europe and thus challengeThe Napoleonic • Liberal Internationalism
Wars lasted from 1803-1815 with Napoleon ➢ The first major thinker of liberal
and his armies marching all over much of internationalism was the late 18th century
Europe. In every country they conquered, German philosopher Immanuel Kant. Kant
the French implemented the Napoleonic argued that without a form of world
Code that forbade birth privileges, government, the international system would be
encouraged freedom or religion, and chaotic. Therefore, states must give up some
freedoms and
promoted meritocracy in government
service. This system shocked the monarchies “establish a continuously growing state
and the hereditary elites (dukes, duchesses, consisting of various nations which will
etc.) of Europe, and they mustered their ultimately include the nations of the
armies to push back against the French world.” In short, Kant imagined a form of
global government.
emperord the power of kings, nobility, and ➢
British philosopher Jeremy Bentham
religion in Europe. (who coined the word “international” in
• Anglo and Prussian armies finally defeated 1780), advocated the creation of
Napoleon in the Battle of Waterloo in 1815, international law that would govern the
ending the latter's mission to spread his interstate relations. Bentham believed
liberal code across Europe. To prevent that objective global legislators should
another war and to keep their systems of aim to propose legislation that would
privilege, the royal powers created a new create “the greatest happiness of all
system that, in effect, restored the nations taken together”
Westphalian system. The Concert of ➢
To many, these proposals for global government and
Europe was an alliance of “great powers” international law seemed to represent challenges to
–the United Kingdom, Austria, Russia, and states. “Would not a world government, in effect,
Prussia– that sought to restore the world of become supreme? And would not its laws overwhelm
monarchical, hereditary, and religious the sovereignty of individual states?” The first
thinker to
privileges of the time before the French
Revolution and the Napoleonic Wars. More reconcile nationalism with liberal
importantly, it was an alliance that sought to internationalism was the 19th century Italian
restore the sovereignty of states. Under this patriot Giuseppe Mazzini. He believed in a
Metternich system, the Concert's power and Republican government (without kings, queens,
authority lasted from 1815 to 1914, at the and hereditary succession) and
dawn of World War I.

Downloaded by Aubrey Rose Atenta (atentaaubreyrose7@gmail.com)

 lOMoARcPSD|51946977

proposed a custom of free nations that form common international principles.

cooperated with each other to create an From Mazzini, it enshrined the principles
international system. For Mazzini, free, of cooperation and respect among nation-
independent states would be the basis of an states. From Wilson, it called for
equally free, cooperative international system. democracy and self-determination. These
Mazzini was a nationalist internationalist, who ideas would re-assert themselves in the
believes that free, unified nation states should creation of the United Nations in 1946.
be the basis of global cooperation. • Socialist Internationalism
➢
➢
Mazzini influenced the thinking of United One of Mazzini's biggest critics was
German socialist philosopher Karl
States President (1913-1921) Woodrow
Wilson, who became one of the 20th century's Marx who was also an
most prominent internationalist. Like internationalist, but who differed
Mazzini, Wilson saw nationalism as a from the former because he did not
prerequisite for internationalism. Because of his believe in nationalism. Marx placed a
faith in nationalism, he forwarded the principle premium on economic equality. He did
of self-determination – the belief that the world's not divide the world into countries but
nations had a right to a free, and sovereign into classes. The capitalist class referred
government. He hoped that these free nations to the owners of factories, companies,
would become democracies, because only by and other means of production. In
being such would they be able to build a free contrast, the proletariat class are those
system of international relations based on who did not own the means of
international law and cooperation. Wilson production but instead worked for the
became the most notable advocate for the capitalists
creation of the League of Nations. At the end ➢
Marx and his co-author, Friedrich
of World War I in 1918, he pushed to transform Engels (The Communist Manifesto)
the League into a venue for conciliation and believed that in a socialist revolution
arbitration to prevent another war. seeking to overthrow the state and
➢ Ironically and unfortunately for Wilson, the alter the economy, the proletariat
United States was not able to join the “had no nation.” Hence, their now-
organization due to strong opposition from the famous battle cry, "Workers of the
Senate. The League was also unable to hinder world, unite! You have nothing to lose
another war from breaking out. It was practically but your chains.” They opposed
helpless to prevent the onset and intensification of nationalism because they believed it
World War II. On one side of the war were the Axis prevented the unification of the world's
Powers – Hitler's workers. Instead of identifying with
Germany, Mussolini's Italy, and Hirohito’s other workers, nationalism could make
Japan – who were ultranationalists that had an workers in individual countries identify
instinctive disdain for internationalism and with the capitalists of their countries
preferred to violently impose their dominance ➢
Marx died in 1883, but his followers
over other nations. It was amid this war soon sought to make his vision concrete
between the (composed of United States, by establishing their international
United Kingdom, France, Holland, and organization. The Socialist
Belgium) that internationalism would be International (SI) was a union of
eclipsed. European socialist and labor parties
➢
Despite its failure, the League gave birth to established in Paris in 1889. Although
some of the more task specific international short-lived, the SI's achievements
organizations that are still around until today, included the declaration of May 1 as
the most popular of which are the World Labor Day and the creation of an
Health Organization (WHO) and the International Women's Day. Most
International Labor Organization (ILO). importantly, it initiated the successful
More importantly, it would serve as the campaign for an 8-hour workday
blueprint for future forms of international ➢ The SI collapsed during World War I as
cooperation. In this respect, despite its the member parties refused or were
organizational dissolution, the League of unable to join the internationalist efforts
Nations' principles survived World War II. to fight for the war. As the SI collapsed,
➢ The League was the concretization of the a more radical version emerged. In the
concepts of liberal internationalism. so called Russian Revolution of 1917,
From Kant, it emphasized the need to
Czar Nicholas II was overthrown and

Downloaded by Aubrey Rose Atenta (atentaaubreyrose7@gmail.com)

 lOMoARcPSD|51946977

replaced by a revolutionary government would once again be ascendant. And

led by the Bolshevik Party and its the best evidence of this is the rise of
leader, Vladimir Lenin. This new state the United Nations as the center of
was called the Union of Soviet global governance.
Socialist Republics or the USSR.
Unlike most of the member parties of
the SI, the Bolsheviks did not believe in
obtaining power for the working class
through elections. Rather, they exhorted
the revolutionary “vanguard” parties to
lead the revolutions across the world,
using methods of terror if necessary.
Today, parties like this are referred to as
communist parties.
➢
To encourage these socialist revolutions
across the world, Lenin established the
Communist International
(Comintern) in 1919. The Comintern
served as the central body for directing
Communist parties all over the world.
This international was not only more
radical than the Socialist International,
it was also less democratic because it
followed closely the top-down
governance of the Bolshevik.
➢
Many of the world's states feared the
Comintern, believing that it was working
in secret to stir up revolutions in their
countries (which was true). A problem
arose during World War II when the
Soviet Union joined the Allied Powers in
1941. The United States and the United
Kingdom would, of course, not trust the
Soviet Union in their fight against Hitler's
Germany. These countries wondered if
the Soviet Union was trying to promote
revolutions in their backyards. To
appease his allies, Lenin's successor,
Joseph Stalin, dissolved the Comintern
in 1943.
➢
After the war, however, Stalin re-
established the Comintern as the
Communist Information Bureau
(Cominform). The Soviet Union took
over the countries in Eastern Europe
when the United States, the Soviet Union,
and Great Britain divided the war
– torn Europe into their respective
spheres of influence. The Cominform
helped direct the various communist
parties that had taken power in Eastern
Europe.
➢
With the eventual collapse of the Soviet
Union in 1991, whatever existing
thoughtsaboutcommunist
internationalism also practically
disappeared. For the postwar period,
however, liberal internationalism

Downloaded by Aubrey Rose Atenta (atentaaubreyrose7@gmail.com)