GENERAL EDUCATION: THE CONTEMPORARY WORLD
GLOBALIZATION - The intensification of all the interactions (economic,
political, social) among the different actors in the international system.
Globalization is a term used to describe how trade and technology have made
the world into a more connected and interdependent place. Globalization also
captures in its scope the economic and social changes that have come about
as a result. It may be pictured as the threads of an immense spider web formed
over millennia, with the number and reach of these threads increasing over
time.
1. Development of Globalization
- Traders traveled vast distances in ancient times to buy commodities that were rare
and expensive for sale in their homelands.
- The Industrial Revolution brought advances in transportation and communication in
the 19th century that eased trade across borders.
- The critical steps in the path to globalization came with the North American Free
Trade Agreement (NAFTA), signed in 1993. One of NAFTA's many effects was to
give American auto manufacturers the incentive to relocate a portion of their
manufacturing to Mexico where they could save on the costs of labor.
- The Bretton Wood Conference where GATT or the General Agreement on Tariff
and Trade was born.
- Governments worldwide have integrated a free market economic system through
fiscal policies and trade agreements over the last 20 years. The core of most trade
agreements is the removal or reduction of tariffs
2. Pros and Cons of Globalization
A. Pros
- A larger market for goods and services
- Cheaper consumer prices
- Outsourcing can benefit both domestic firms and foreign labor
- Increased standard of living
B. Cons
- Concentrates wealth in richer countries
- Some poorer countries can be left behind
- Poorer countries can be exploited of their labor and physical & intellectual
resources
- Cultures and the products consumed around the world can become homogenized.
3. Perspectives in Globalization
A. Hyperglobalist
- View globalization as purely economic
- Positive Effects of Globalization
B. Skeptics
- View globalization as Not ‘Globalization’ but Americanization or Westernization
C. Transformationalist
- Middle-ground
- Globalization as Transformation of Human lives
- Both Positive and Negative sides Negative Effects of Globalization
2. Ways to achieve Globalization
A. Liberalization of Trading Policies
B. Foreign Direct Investment
C. Privatization
D. Presence of Multinational Companies
E. Contractualization
3. Global Economy
A. HISTORICAL BACKGROUND
WORLD WAR II
- War between the Allied Powers (USA, Britain, France, and USSR) and the
Axis Powers (Germany, Italy, and Japan)
- Political (World Domination) and Economic (Resources)
- Allied powers win in 1945
- Devastation after the war = Developmental problems
- The need for global cooperation for development
- Establishment of International Institutions due to the intensified relationships
among the different members of the community (Globalization)
B. BRETTON WOOD CONFERENCE
- 1944 – Bretton Woods, New Hampshire; 44 delegates
- GOLD STANDARD based on US Dollars
- Adjustable-peg exchange rate system
- Created the International Bank of Reconstruction and Development (IBRD) –
now known as the World Bank – and the International Monetary Fund (IMF)
- 1947 – Attempt to create an International Trade Organization (ITO)
- The US Congress vetoed the ITO. Alternatively, the General Agreement on
Tariffs and Trade (GATT) was created. This would later become the World
Trade Organization (WTO).
C. PROBLEMS ENCOUNTERED AFTER THE BRETTON WOOD CONFERENCE
- Cold War
- 1971 – Abandonment of the Gold Standard
- Triffin Dilemma – international liquidity ➔ US provides more dollars <- risk in
converting dollars into gold
- Vietnam War, Korean War, US Deficits, Oil Crisis
D. THE GLOBAL FINANCIAL INSTITUTION
I. THE WORLD BANK
5 Institutions under the World Bank (worldbank.org)
1. International Bank of Reconstruction and Development – loans for middle-
income and deserving low-income countries
2. International Finance Corporation (IFC) – loans for the private sector
3. International Development Association (IDA) – interest-free loans (credits) to
poorest
4. Multilateral Investment Guarantee Agency (MIGA) – encourage foreign
direct investments
5. International Center for Settlement of Investment Disputes (ICSID) –
conciliation and arbitration of investment disputes
II. INTERNATIONAL MONETARY FUN FUNCTIONS:
1. Foster global monetary cooperation
2. Secure financial stability
3. Facilitate international trade
4. Promote higher employment
5. Reduce poverty
III. WORLD TRADE ORGANIZATION
- Formerly the General Agreement on Tariffs and Trade (GATT)
- Became the WTO in 1995
- Facilitation of international trade is the main goal of the WTO
- Rules-based system was established
Functions
- Trade Negotiations
- Dispute Settlement
- Implementation and Monitoring
- Building Trade Capacity
Basic Information
MEMBERSHIP: 164 members and 24 observers
DIRECTOR-GENERAL: Ngozi Okonjo-Iweala HEADQUARTERS: Geneva,
Switzerland
Definition of Terms:
1. Triffin Dilema
- In October 1959, a Yale professor sat in front of Congress' Joint Economic
Committee and calmly announced that the Bretton Woods system was doomed.
- The dollar could not survive as the world's reserve currency without requiring the
United States to run ever-growing deficits. This dismal scientist was Belgium-born
Robert Triffin, and he was right.
- The Bretton Woods system collapsed in 1971, and today the dollar's role as the
reserve currency has the United States running the largest current account deficit in
the world Concentrates wealth in richer countries Some poorer countries can be left
behind
- Poorer countries can be exploited of their labor and physical & intellectual
resources Cultures and the products consumed around the world can become
homogenized
2. Floating Currency
- A floating exchange rate is a regime where the currency price of a nation is set by
the forex market based on supply and demand relative to other currencies. This is in
contrast to a fixed exchange rate, in which the government entirely or predominantly
determines the rate.
- A floating exchange rate is one that is determined by supply and demand on the
open market.
- A floating exchange rate doesn't mean countries don't try to intervene and
manipulate their currency's price, since governments and central banks regularly
attempt to keep their currency price favorable for international trade.
- A fixed exchange is another currency model, and this is where a currency is
pegged or held at the same value relative to another currency.
- Floating exchange rates became more popular after the failure of the gold standard
and the Bretton Woods agreement.
3. International Liquidity
- The term ‘International liquidity’ refers to the supply of certain categories of
financial assets or claims which are created by all the different countries and
international financial organizations in the international community, as receptacles of
calculable ready purchasing power over all the domestic currencies in vogue”
4. Privatization
- transfer of government services or assets to the private sector. State-owned
assets may be sold to private owners, or statutory restrictions on competition
between privately and publicly owned enterprises may be lifted. Services formerly
provided by government may be contracted out. The objective is often to increase
government efficiency; implementation may affect government revenue either
positively or negatively.
THE INTER-STATE SYSTEM
1. Configuration of World Power
A. BIPOLARITY
- Two dominant powers in the world
- USA and USSR emerged as world powers after WWII
- Engaged in the COLD WAR
B. UNIPOLARITY
- A single world power exists (hegemon)
- USA became the sole power after the disintegration of USSR
C. MULTIPOLARITY
- There are multiple world powers
- Our situation today can be described as such
- Unlike before, power is measured by economic prosperity
2. INTERNATIONAL LAW
- Usually, these refers to treaties and agreements among the different actors
- Not the same as domestic laws
- Due to the sovereignty of state actors, they are based upon CONSENT
- No assurance of COMPLIANCE especially from powerful states
3. UNITED NATIONS
- Predecessor: League of Nations (after WWI in 1920)
- Established after WWII in 1945 (San Francisco Charter of 1945)
HEADQUARTERS: New York
MEMBERSHIP: 193 states
LEADERSHIP: António Guterres
MANDATE: to end international war and promote social and economic
development
ORGANS OF UNITED NATIONS
1. GENERAL ASSEMBLY
- Meeting of all member states
- Recommendatory function only
- appointing the Secretary-General on the recommendation of the Security
Council
- electing the non-permanent members of the Security Council approving the
UN budget
2. SECURITY COUNCIL
- Composed of 5 permanent members (USA, Russia, France, UK, China)
- 10 elected members – 2-year term
- Intervention arm (international security)
- Legitimate use of force
3. INTERNATIONAL COURT OF JUSTICE
- To decide legal disputes among states
Recommend sanctions
- The seat of the Court is at the Peace Palace in The Hague (Netherlands).
- The Court is composed of 15 judges, who are elected for terms of office of nine
years by the United Nations General Assembly and the Security Council. It is
assisted by a Registry, its administrative organ. Its official languages are English and
French.
- Secretariat
- Composed of the Secretary-General (presides the General Assembly meeting) and
Staff
- Manages the general assembly
- Record keeper of the sessions
VII. ASEAN
The Secretariat is organized along departmental lines, with each department or
office having a distinct area of action and responsibility. Offices and departments
coordinate with each other to ensure cohesion in the UN’s programme of work.
1. Basic Information
- Establishment: August 8, 1967 (Bangkok Declaration or ASEAN Declaration)
- Founding Members: Indonesia, Malaysia, Singapore, Thailand and
Philippines
- Other members: Brunei Darussalam (January 4, 1984); Viet Nam (July 28,
1995); Laos and Myanmar (July 23, 1997); Cambodia (April 30, 1999); Timor
Leste (2023)
2. Objectives
- 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;
- To promote regional peace and stability through abiding respect for justice and
the rule of law in the relationship among countries of the region and adherence to the
principles of the United Nations Charter;
- To promote active collaboration and mutual assistance on matters of common
interest in the economic, social, cultural, technical, scientific and administrative fields
- To provide assistance to each other in the form of training and research facilities
in the educational, professional, technical and administrative spheres;
3. 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
THE WORLD DIVISION
1. Division after the Cold War
- The EAST and WEST Dichotomy was created
- Western countries are considered to be more advanced as compared to Eastern
counterparts
- The West promoting their VALUES as UNIVERSAL; the East trying to adapt these
values OR trying to resist (to find own identity)
2. Clash of Civilization
- Samuel Huntington believed that the conflicts after the Cold War are not
IDEOLOGICAL but, CULTURAL
- More particularly, it will be based on RELIGIOUS BELIEFS
- The September 11 attack on the World Trade Center gave this theory more
credence
- Different Division of the World
1. Sinic: the common culture of China and Chinese communities in Southeast Asia.
Includes Vietnam and Korea.
2. Japanese: Japanese culture as distinctively different from the rest of Asia.
3. Hindu: identified as the core Indian civilization.
4. Islamic: Originating on the Arabian Peninsula, spread across North Africa, Iberian
Peninsula and Central Asia. Arab, Turkic, Persian and Malay are among the many
distinct subdivisions within Islam.
5. Orthodox: centered in Russia. Separate from Western Christendom.
6. Western: centered in Europe and North America.
7. Latin American: Central and South American countries with a past of a corporatist,
authoritarian culture. Majority of countries are of a Catholic majority.
8. Africa: while the continent lacks a sense of a pan-African identity, Huntington
claims that Africans are also increasingly developing a sense of African Identity.
Decline of the Western Power
1. The current Western decline is a very slow process and is not an immediate threat
to World powers today.
2. Decline of power does not occur in a straight line; it may reverse, speed up, or
pause.
3. The power of a state is controlled and influenced by the behavior and decisions of
those holding power.
CLASHES OF CIVILIZATION
1. The West's ability to maintain military superiority through the nonproliferation of
emerging powers.
2. The promotion of Western political values such as human rights and democracy.
3. The Restriction of non-Western immigrants and refugees into Western societies.
4. The West's ability to maintain military superiority through the nonproliferation of
emerging powers.
5. The promotion of Western political values such as human rights and democracy.
6. The Restriction of non-Western immigrants and refugees into Western societies.
4. The Division using Brandt Line
The world is divided by an imaginary line called the Brandt Line
Incidentally, most of the countries NORTH of this line are developed ones.
Meanwhile, those SOUTH of this line are developing ones.
There is a strong anti-globalization (homogenizing) movement from the Global
South
CHARACTERISTICS OF THE NORTH AND SOUTH
Global North Global South
1/4 of the world's people 3/4 of the world's people
4/5 of world's income 1/5 of world's income
Average life expectancy more than 70 years Average life expectancy of 50 years
Most people have enough to eat 1/5 or more suffer from hunger and
malnutrition
Most people are educated 1/2 of the people have little chance
of any education
Over 90% of the world's manufacturing less than 10% of the world's
industry manufacturing industry
About 96% of the world's spending on 4% of the world's research and
research and development development
GLOBAL ISSUES
1. The climate crisis
- This is the big one. A toxic combination of dependence on fossil fuels and
unsustainable industrial practices has created extremely dangerous weather events
that threaten to destroy terrestrial and marine ecosystems as well as our access to
basic resources like food and water.
- Most of the world’s recent natural disasters – including superstorms, freak floods
and out of control fires, as well as some of hottest and coldest seasons on record –
are the direct result of man-made, fossil-fuel induced global warming.
2. Marine ecosystem deterioration
- Our oceans aren’t doing much better. Global warming has caused an increase in
coral bleaching, killing ecosystems sustained by the nutrients the coral provides,
including fishing grounds on which local communities across the world depend.
- We are also endangering countless marine species with unsustainable fishing
practices like overfishing and bycatch, where dolphins and turtles are caught in
commercial fishing nets and later discarded as waste. Meanwhile, pollutants like
boat fuel, pesticides, fertiliser, sewage and plastics are causing ocean dead zones –
spots where no organism can live.
3. The hunger crisis and water scarcity
- One in nine people in the world go hungry each day and suffer from nutritional
deficiencies as a result. Current estimates show that 957 million people across 93
countries do not have enough to eat.
- The problem isn’t that we aren’t producing enough food; it’s that people lack access
to food. Many people don’t have enough money to buy basic foodstuff and cannot
grow their own. And the number of displaced persons who suffer from food insecurity
is increasing too. According to the World Food Programme (WFP), countries with the
highest level of food insecurity also have the highest outward migration of refugees.
4. The hunger crisis and COVID-19
- The ongoing COVID-19 pandemic severely exacerbated the food and water crisis,
seeing food and fuel prices rise dramatically due to supply chain issues, failing
economies, and an energy crisis brought on by forced lockdowns and closed
borders.
- The hunger crisis and the war in Ukraine . The recent Russian invasion of Ukraine
further complicates this problem. Sanctions against Russia, one of the world’s
biggest producers of fossil fuels, have further increased energy prices, causing food
prices to rise too, ultimately making it much harder on people already struggling to
afford food. Ukraine is also one of the world’s largest exporters of grain, which it has
had to stop producing due to the war. Most of these exports were due to countries
suffering food shortages. Together, Russia and Ukraine are also the world’s largest
exporter of fertilizer. The war has caused a lack of supply, creating higher prices for
farmers that ultimately translate to higher food prices.
5. Health Issues
- The current overwhelming threat to our overall global health and well-being is the
COVID-19 pandemic.
- Even though we now have access to effective vaccines and treatment is better
understood, more than six million people have died, and the virus continues to
threaten vulnerable populations across the world, especially in those areas where
access to healthcare is limited. There have also been serious socio-economic side
effects that will further contribute to health issues, including mental health issues, for
a long time to come.
6. GENDER INEQUALITY
- There are well-established historic and social barriers to economic and personal
freedom for women across the world. While much has been done to alleviate this,
there is still quite a way to go, especially in communities where women are
disempowered from a young age, held back from attending school for financial
reasons or because of the perception that their education does not matter.
- Globally, women still earn less than men, and women with children tend to earn
even less. Meanwhile, it is estimated that one in three women are subjected to
physical or sexual violence. This places women at greater risk of mental health
issues caused by trauma, as well as sexually transmitted infections.
- Other diseases also affect health on a global scale. Fortunately, increased access
to clean water and improved education around proper sanitation has resulted in an
overall decrease in the prevalence of some communicable diseases like hepatitis,
cholera, malaria, tuberculosis and HIV. And while the focus of the global healthcare
community has now shifted to non-communicable diseases like cancer, diabetes,
chronic respiratory and cardiovascular diseases, all of these health problems remain
a concern in countries that lack healthcare resources.
INTERNATIONAL ORGANIZATION
ORGANIZATI NATURE DIRECTOR MEMBERS
ON
- NATO promotes ALBANIA (2009)
NORTH democratic values and BELGIUM (1949)
ATLANTIC enables members to consult Jens BULGARIA (2004)
TREATY and cooperate on defense Stoltenberg CANADA (1949)
ORGANIZATI and security-related issues CROATIA (2009)
ON to solve problems, build CZECHIA (1999)
trust and, in the long run, DENMARK (1949)
prevent conflict. ESTONIA (2004)
FRANCE (1949)
- NATO is committed to the GERMANY (1955)
peaceful resolution of GREECE (1952)
disputes. If diplomatic efforts HUNGARY (1999)
fail, it has the military power ICELAND (1949)
to undertake crisis- ITALY (1949)
management operations. LATVIA (2004)
LITHUANIA (2004)
LUXEMBOURG
(1949)
MONTENEGRO
(2017)
NETHERLANDS
(1949)
NORTH
MACEDONIA
(2020)
NORWAY (1949)
POLAND (1999)
PORTUGAL
(1949)
ROMANIA (2004)
SLOVAKIA (2004)
SLOVENIA (2004)
SPAIN (1982)
TÜRKIYE (1952)
THE UNITED
KINGDOM (1949)
THE UNITED
STATES (1949)
- To support sustainable Australia; Brunei
economic growth and Darussalam;
ASIA PACIFIC prosperity in the Asia- Dr. Rebecca Canada; Chile;
ECONOMIC Pacific region. Fatima People's Republic
COOPERATIO - United in our drive to build of China; Hong
N a dynamic and harmonious Kong, China;
Asia- Pacific community by Indonesia; Japan;
championing free and open Republic of Korea;
trade and investment, Malaysia; Mexico;
promoting and accelerating New Zealand;
regional economic Papua New
integration, encouraging Guinea; Peru; the
economic and technical Philippines; the
cooperation, enhancing Russian
human security, and Federation;
facilitating a favorable and Singapore;
sustainable business Chinese Taipei;
environment. Our initiatives Thailand; the
turn policy goals into United States of
concrete results and America
agreements into tangible
benefits.
- to coordinate and unify the HE Al Ghais Republic of Iran,
petroleum policies of its Iraq, Kuwait, Saudi
OPEC Member Countries and Arabia and
(Organization ensure the stabilization of oil Venezuela are the
of Petroleum markets in order to secure Founder Members
Exporting an efficient, economic and of the
Countries) regular supply of petroleum Organization.
to consumers, a steady
income to producers and a These countries
fair return on capital for were later joined
those investing in the by Qatar (1961),
petroleum industry. Indonesia (1962),
Libya (1962), the
United Arab
Emirates (1967),
Algeria (1969),
Nigeria
(1971), Ecuador
(1973), Gabon
(1975), Angola
(2007), Equatorial
Guinea (2017) and
Congo
(2018).
- NAFTA provides coverage Mexico, Canada,
to services except for and the United
NORTH aviation transport, maritime, Shri State
AMERICAN and basic Steephen
FREE TRADE telecommunications. The
AGREEMENT agreement also provides
(NAFTA intellectual property rights
protection in a variety of
areas including patent,
trademark, and copyrighted
material. The government
procurement provisions of
the NAFTA apply not only to
goods but to contracts for
services and construction at
the federal level.
Additionally, U.S. investors
are guaranteed equal
treatment to domestic
investors in Mexico and
Canada.
- The G8 is a forum that France, Germany,
provides the opportunity for Italy, the United
G8 its members to co- operate Gary Carroll Kingdom, Japan,
in addressing global the United States,
challenges. The standards it Canada, and
sets, commitments it makes Russi
and steps it takes aim to
drive prosperity and
economic growth all over
the world.
- Brunei Daruessalam, Brunei
BIMP EAGA Indonesia, Malaysia, and Daruessalam,
the Philippines created the Dato’ Ahmad Indonesia,
East ASEAN Growth Area to Zamri bin Malaysia, and the
shift economic activities Khairuddin Philippine
from resource extraction to
higher levels of processing
and value- added
production, focusing on
industries that adopt clean
and green technologies.
EU - The common principles European Austria, Belgium,
(EUROPEAN and values that underlie life Parliament Bulgaria, Croatia,
UNION) in the EU: freedom, president – Republic of
democracy, equality and the Roberta Cyprus, Czech
rule of law, promoting peace Metsola Republic,
and stability. European Denmark, Estonia,
Council Finland, France,
president – Germany, Greece,
Charles Hungary, Ireland,
Michel Italy, Latvia,
European Lithuania,
Commission Luxembourg,
president – Malta,
Ursula von Netherlands,
der Leyen Poland, Portugal,
Romania,
Slovakia,
Slovenia, Spain
and Swede
SUSTAINABLE DEVELOPMENT GOAL
1. Eliminate Poverty
2. Erase Hunger
3. Establish Good Health and Well-Being
4. Provide Quality Education
5. Enforce Gender Equality
6. Improve Clean Water and Sanitation
7. Grow Affordable and Clean Energy
8. Create Decent Work and Economic Growth
9. Increase Industry, Innovation, and Infrastructure
10. Reduce Inequality
11. Mobilize Sustainable Cities and Communities
12. Influence Responsible Consumption and Production
13. Organize Climate Action
14. Develop Life Below Water
15. Advance Life On Land
16. Guarantee Peace, Justice, and Strong Institutions
17. Build Partnerships for the Goals
