EXTENT OF GLOBALIZATION

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WHAT IS GLOBALIZATION? countries rather than on a global level.

(Altman et al, 2018)
GLOBALIZATION is the word used to describe the
growing interdependence of the world’s DEFINING GLOBALIZATION
economies, cultures, and populations, brought
about by cross-border trade in goods and • There are numerous definitions of
services, technology, and flows of investment, globalization in the development
people, and information. literature.

EXTENT OF GLOBALIZATION • According to Mir et l, (2014) for a

literature review on globalization
 How connected are we with the world? discourse some definitions focus on the
We start with an activity that asks “How world’s interconnectivity in terms of
are you connected with the world?” processes, events and decisions.
most of us will answer that we have
• Others focused more on economic and
family, friends or relatives living in other
financial integration, according to
countries.
Rodrik, 2008 and Cline 2010.
 Modern technologies are cheaper as
travel made possible this connection and • Pieterse (2019) highlights the cultural
flow of people and information. But how processes involved in the process of
do we measure global connectivity? globalization.
• Based of the global connectedness index • A word cloud of different definitions
(GCI) in 2020 report (Altman et al, 2018) found in the literature was generated.
the world’s level of connectedness in
terms of international trade, capital, • Keywords in these definitions include
information and people is as its peak in “movement”, “integration”, “free
2017. trade”, “capital” and “world”.

• The report indicates that the • Other kerywords include “economic”,

Netherlands is the world’s most globally “culture”, “products”, “process” and
connected country, while EUROPE is the “ideas”.
most highly globally connected • The stated definitions and figures shoes
continent. the different dimensions of
• Economic in Southeast Asia like globalization.
Cambodia, Malaysia, Singapore and • But according to Hebron and Stack
Vietnam have exceeded expectations for (2016) they have noted that most
global connectivity, particulary in trade definitions of globalization focused on
flow. the economic and trade dimensions of
• However, based on report, only 20 the concept.
percent of the global economic output of • However, one needs to look at the
the countries sociopolitical and sociocultural aspects
• is exported from the home countries of globalization (Steger,2003)
and only 3 percent of people are living • Globalization is seen as a process that
outside the countries they were born. focuses on the movement of trade,
• This shows that the material and social capital and ideas. This definition
flows are more within and between emphasizes “a hat is being moved or
EXTENT OF GLOBALIZATION
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traded across boarders” and “how it VIEWS OF GLOBALIZATION

could diverse economic processes,
cultures and world views”. • There are diverging views about
globalization.
SOCIOECONOMIC CHANGES IN
GLOBALIZATION Some authors highlight the positive
economic impacts of globalization such
• According to Scholte(2005) identifies as on the level of employment and
macro-structural changes in a globalize balance of trade
society such as product and services,
• On the other hand some highlight the
integration to commodity value chains,
negative impacts of globalization,
emerging institutional arrangements,
specifically the inequity among countries
pluralistic identity, and growth of
and between the rich and the poor.
supraterritorial relations.
• Vandermoorthel (2002), argues that the
• Also according to Scholte there are Four
globalization and exponential growth,
Key Shifts in Society.
theoretically, could reduce poverty, it
1. Growth of trans- and supra-territorial does not benefit all nations.
connectivity.
• Sub-Saharan Africa, where almost half of
2. The shift from capitalism to hyper- the world’s extremely poor population
capitalism focused on hybridity lives living below US $ 1.90 per day has
been specially marginalized by
3. A move from nationalism toward globalization (World Bank,2019).
identifying pluralism and hybridity
• Nevertheless, Beck (2018) contends the
4. From nationalism toward knowledge multi-dimensionality of globalization.
reflexivity These include the economic, political,
FACTORS DRIVING GLOBALIZATION cultural, ecological dimensions (Steger,
2017; Beck 2018).
• Globalization is the reduction of trade
barriers
• In 1947, Richer countries banded
together to reduce taxes on imports or
tariffs under the General Agreement on
Tariffs and Trade (GATT) which was later
transformed to the World Trade
Organization in 1994.
• Modern Technology developments as a
key driver of globalization that
facilitated faster communication and
access to data or information.
• Further promote as development of an
information society.
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GLOBAL TRADING’ MOVEMENT OF PEOPLE

• Global trading concerns importation • People can migrate to other countries
and exportation. in search for better employment
opportunities.
• The world saw an increase in world
trade from 1971 to 1999, the biggest • In the Philippines, the number of
increase was seen in the export of Overseas Pilipino Workers during the
manufactured goods. period April to September 2018 was
estimated at 2.3 million (Philippine
• On the other hand, export of primary
Statistics Authority, April 2019).
commodities such as food and raw
materials often produced by poor ECONOMIC GLOBALIZATION
countries declined (IMF,2000).
Economic globalization is a complex global
CAPITAL MOVEMENT process of expanding the market system all
throughout the world. The market economy,
• There was an increase of capital
the economic systems that gives freedom to
flows to poor countries during the
entrepreneurs to control productive process
1900s (IMF, 2000).
to pursue profits, is just one kind of economic
• One manifestation of capital system designed by human societies. It is a
movement is foreign investment. corporate–driven process of enhance
Foreign investment can be transnational exchange of products,
categorized as commercial loans, services, technologies, and capital creating
official flows, or foreign direct an increase interdependence of world
investment. economies.
• Commercial loans are money lent to CULTURAL GLOBALIZATION
foreign businesses or governments,
while official flows refer to Cultural globalization refers to the increasing
development aid or money granted “contact between people and their cultures-
by rich countries to developing their ideas, their values, their ways of life”.
nations. This significant change is getting deeply
entrenched in contemporary societies. It is
• Foreign direct investment refers to also linked to globalization of lifestyles such
buying or putting up a firm in a foreign as music, media, fashion, food, as well as
country or contributing to the globalization of knowledge, science, and
enhancement of an existing firm. technology.
• Transnational corporations, POLITICAL GLOBALIZATION
businesses that operate in more than
one country, primarily undertake Political globalization is the enlargement of
foreign direct investment. the international political system and its
establishments, where inter-regional
dealings, including trade, are managed.
Conventional politics usually happens within
national political spheres, in political
globalization on the other hand, political
decision-making can transcend the
boundaries of nations. When talking of
managing economic and trading matters,
security, environment and other
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transnational issues, some institutions come Globalization is not a random

into play such as the World Bank, phenomenon. It is devised by
International Monetary Fund, United Nations, humans, guided by several
among others. assumptions about development.
ASSUMPTIONS BEHIND THE PURSUIT • International businesses called
OF GLOBALIZATION transnational corporations are
important players in globalization.
As a paradigm of development,
globalization operates on certain • Other important actors and
assumptions about a desirable economy institutions ensuring globalization are
and development. However, these the international financial and trade
assumptions must be tested in the real institutions, as well as the United
world. Some critiques regarding the Nations agencies and regional
unreliability of these assumptions are organizations, such as the ASEAN.
summarized below: The roles of the international financial
and trade institutions, responsible
mainly for ensuring economic
globalization, are discussed briefly:

The World Bank, IMF, and the WTO aim

to make sure that quicker and easier
movement of products, capital, and trading
between countries is achieved by
implementing international policies, reforms,
and agreements. One objective of global
financial and trading institutions is to enforce
common trading and financial flow standards
and policies to all countries. Another
INSTITUTIONS AND ACTORS SHAPING
common goal is to "deregulate“ firms
ECONOMIC GLOBALIZATION
(deregulation). To deregulate businesses is
• The pursuit of fast-paced to reduce the control of government over
international economic transactions businesses, making them more powerful in
as well as movement of people and implementing their visions, goals, and
knowledge is driven by certain actors, operations.
in engagement with many sectors.
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THE IMPACTS OF GLOBALIZATION fast-paced flux of capital across

different countries has impacts on
Economic deregulation is met with places and social relations. These
disapproval from different groups such as restructuring in places and social
labor organizations, environmental groups, relations can have disintegrating
indigenous peoples, and even consumer effects for the development of
groups. Lessening government's control over communities (Katz, 2004). These
businesses led to outcomes such as neglect kinds of global interactions produce
of environment, low wages and unstable uneven development.
employment, under servicing of consumers,
and privatizing common resources. • Unequal playing field for local
producers and foreign producers
WORLD BANK, IMF, AND DEBTS from developed countries lead to
-Supporters of globalization carry several losses for local producers.
assumptions about it. Assumptions need to THE EFFECTS OF GLOBAL TRADING
be scrutinized against real-life conditions. ON THE PHILIPPINE LOCAL
-Proponents and guardians of globalization, ECONOMY
such as the IMF, acknowledge poverty and • Because of enhanced global
inequality existing alongside globalized trading, cheap imported
economies. However, globalization trend vegetables flood the local market.
must not be halted, but most be continued by Local consumers and businesses
embracing policy changes. find it cheaper to buy imported
-International production is conceived to agricultural products than locally
increase jobs created across countries. produced goods. Local producers
are unable to compete with the
-Poor countries need to catch up. But modern and highly-supported
countries in the world are divided according vegetable production from developed
to its role and power in the global system. A countries such as China, Australia,
country's poverty or development conditions New Zealand, and the Netherlands.
are heavily influenced by its position in the
world system. • Advertised to the world as a remedy
to all problems, globalization comes
CONTRASTING EVIDENCE OF short. It has not raised the poor from
POSITIVE EFFECTS poverty. Instead, it has widened the
gap between developed and
• Increased income developing countries and between
• More employment the wealthy and the disenfranchised.
It has hindered democracy and social
• Less poverty justice; it has damaged small
communities and displaced farmers
from their lands. Additionally, it has
GLOBALIZATION HAVE LOSERS sped up the largest environmental
AND GAINERS degradation known to mankind. The
only groups of people who truly
• Increased trading may result to wider benefited from globalization are the
choices of consumer goods in the top officials of the world's largest
market. However, international corporations and the bureaucracies
trading produces varying results. that sustain them (Cavanagh &
Restructuring of economy through Mander, 2004).
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ALTERNATIVES TO ECONOMIC
GLOBALIZATION
• An important impact attributed to
globalization is the nearly six-fold
increase in the income measured in
per capita GDP for the richest 25
percent
• Of the world population in the 20th
century. However, the poor
populations did not esperience this
exponential economic growth.
Income inequality worsened (IMF,
2000).
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DEFINITION OF TERMS and countries. We will also identify the global

institutions that govern international
relations. Here, we contend that these
MARKET INTEGRATION institutions include non-state organizations
and private sector. Lastly, we will
is a process by which economies are differentiate internationalism from globalism.
becoming more interdependent and Definitions of concepts are important in order
interconnected in terms of commodity flows for us to critically understand a certain
including internalities and spill over of impact phenomenon and as a basis of our opinion
(Genschel and Jacktenfuchs, 2017) and review of such cases.
INTERNATIONAL FINANCIAL Let us first define an interstate
INSTITUTIONS OR IFIS system. Chase-Dunn defines an interstate
system as a —"system of unequally powerful
are institutions that provide support
and competing states in which no single state
through loans or grants and technical
is capable of imposing control on all others.
advises to promote a country’s economic and
These states are in interaction with one
social development (Bhargava, 2006)
another in a set of shifting alliance and wars
CORPORATIONS and changes in relative power of states
upsets any temporary set of alliances,
are private institutions that produce or leading to a restructuring of the balance of
manufacture goods, products, and services power" (Chase-Dunn, 1981:20).Thus, an
for a more expanded market usually at reach interstate, system is the form of governance
of regions or the world. Transnational for a globalization (Chase-Dunn, 1981).
corporations (TNCs) have a more complex
setting where its foreign subsidiary is given The International Financial Institutions
some freedom to develop its own product And Their Role In The Global Economy
lines and marketing compared to
International Financial Institutions or
multinational corporations (MNCs), which
IFIs are institutions that provide support
have more of a home or country base taking
through loans or grants and technical
care of the R& D and marketing, and focus
advices to promote a country's economic and
more on exporting their products and
social development (Bhargava, 2006: 393).
services (Iwan 2017.)
Global and regional IFIs include International
INTRODUCTION Monetary Fund (IMF) and multilateral
development banks (MDBs) like the World
In a globalized society, we observe a Bank Group, the African Development Bank
greater flow of capitals, goods, services, and (ADO), the inter-American Development
people. This is supported by developments Bank, and the European Bank for
and modernization of transport, Reconstruction and Development
communication, and financial services in the (Bhargava, 2006).
world. However, with this, the traditional state
system is now becoming limited to address IFIs have a significant role in global
globalizing issues and patterns. economic development. Compared to private
Internationalist thinkers argue that the key financing institutions, IFIs provide financial
motivating principles of traditional state and technical services and products not for
systems of power and sovereignty runs profit but for overall economic and social
counter on the need for greater political and development (Buiter & Lankes, 2014).
economic cooperation among different
IFIs provide loans, technical assistance,
states and people (Daly, 1999). Thus, in this
and policy-based lending: macroeconomic
chapter, we will further unpack how
stability and providing the necessary
globalization affects national governments
infrastructure and systems, sectoral reforms,
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and creation of safety nets through policy- harmonization, alignment, and managing aid
based lending (Bhavarga, 2006). IFIs also for results including monitoring systems and
work with the private sector for investment indicators (OECD, 2005). In 2006, MDBs
and policy reforms to promote private sector agreed on a Common Performance
expansion (International Finance Assessment System to produce a
Corporation, 2011). consolidated data source on MDB's
contribution to development impacts
IFIs undeniably have been a critical actor (Bhagarva, 2006: 404)
in the contemporary world. Their
contributions to social and economic Third, the major products of IFIs are
development and progress in the modern loans to provide capital for development
times are recognized (International Finance initiatives of countries. However, it does
Corporation, 2011). However, there are four not come for free and comes with certain
key issues with 045, which include conditions that the borrowing country has to
legitimacy, effectiveness, support meet. This conditionality was set in place as
conditionality and financial capacity, and a form of safeguard to ensure that loans are
sustainability (Bhargava, 2006: 404). spent efficiently for its intended use.
Nevertheless, some conditions on
First, Bhargava argues that some critics privatization, trade liberalization, elimination
question IFIs' legitimacy given that majority of subsidy, and limits to public investments
of its shareholders and policy making are mostly contested and argued against by
powers lie with powerful, rich nations. some sectors (Dreher, 2009). Critics have
Leaders of these IFIs, also by default, have argued that these conditionalities impose
come from developed countries. Such heads Western free-market policies on developing
of the IMF have always been a European, countries which could be ill-timed,
an American for World Bank, and a inappropriate, or undesired by receiving
European for EDRD, thus a clamor for IFIs countries (Bhagarva, 2006: 405)
to select leaders based on merits and not on
national origin (Bhargava, 2006: 404). Lastly, the financial capacity and
Leadership roles in these powerful Ins are sustainability of IFIs is another concern,
critical in steering the institution's policy and The IFIs' income base has reduced
programs, including its reforms compared to what it was before, although the
demand from IFIs are increasing particularly
Second, different sectors have in contributing toward regional and global
questioned the effectiveness of the IFIs' development initiatives. Some middle
development assistance programs and income countries also limit their loans with
policy advices. Some of the IFIs' IFIs due to a higher transactional cost as well
investments have been controversial such as as the conditionality commonly attached to
support to large-scale land use these financial services. In addition, some
conversion (dam construction), which has concessional financing has been
displaced numerous indigenous peoples in transformed into grants from loans which
some areas like in the Philippines' case may be more attractive to the recipient
(Rivers Watch East and Southeast Asia country but could take a toll to the financial
(RWESA), 2003). Thus, social safeguards to sustainability of IFIs. In 2002, developed
ensure human rights, community, and countries pledged to provide further financial
environment well-being need to be instituted support to IFIs during the Monterrey
(Bhargava, 2006). Conference on Financing for Development
There are initiatives to address these (World Economic Forum, 2006).
concerns. Examples of these are the
adoption of the Paris Declaration on Aid
Effectiveness, which focuses on the
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A SUMMARIZED HISTORY OF THE integration. We see the advent of the modern

GLOBAL ECONOMY Internet, the WTO establishment, and formal
entry of China into the trading system
-The modern capitalist world economy through its accession to international
flourished between the 16th to 18th centuries financial institutions (Frieden, 2012). Despite
(Frieden, 2012). The start of the modern the world economy boom—where the world
global trade leading to 1914 was considered enjoyed increased growth—the global debt
the first period of globalization (Bhagarva, crisis, political and civil unrests even in
2006). It is when trade, capital, and developed countries like the US resulted to
immigration flows grew tremendously and in market crash and started the war on terror
large volume, but the global institutional that affected global diplomacy and economy
architecture to manage these were quite (Buiter, 2011).
limited (ibid.). International convention and
treaties also served as drivers for these -As the world enters what the World
large-scale global movements such as the Economic Forum argues as the "Fourth
International Telegraph Union in 1865, Industrial Revolution," Mueller (2010)
Universal Postal Union in 1874, International predicted that there will be slower economic
Association of Railway Congresses (1884), growth, political destabilization, and diffusion
and International Sanitary Convention in of power. Some of his recommendations to
1892 (Freiden, 2012). Wallerstein (2006:2) remedy these include reforms in work,
argues that this was driven by the paradigm economic spending, improving solidarity,
of capital accumulation that resulted to openness, and cooperation among
technological advances and expansion of countries.
places, knowledge, and discoveries
-From the Second World War to the late THE GLOBAL CORPORATIONS
1990s, the modern international economic Aside from IFIs and governments, one of
enabling architecture was established the major players in globalization and the
(Freiden, 2012). In addition, we see the modern capitalist market is the global
expansion of MNC5 across the globe, corporations. The number of global
supported by enabling policies and improved corporations from emerging market
communications and transport (Bhagarva, economies listed in the Fortune Global 500
2006). Political changes like the fall of the rose from 47 firms in 2005 to 95 in 2010
Berlin Wall, establishment of regional (Neubauer, 2014).
networks, and trade agreements resulted to
trade liberalization and free flow of capital in The modern global corporations are
the world (Neubauer, 2014). commonly referred to as multinational
corporations and transnational corporations.
-However, the euphoria on globalization More often, they are used interchangeably.
and global free trade was put into question wan (2007) offers categorizations to
with the 1994/95 Mexico crisis, when distinguish an MNC from a TNC. He argues
Mexico's multi-billion loan from IMF created that both types of corporations are importers
a negative spillover effect on US, Europe, and exporters, and have investments in many
Portugal, and Spain (Neubauer, 2014). This countries. Nevertheless, he further contends
was offset by the exponential rise of the that MNCs still provide central decisions
Asian economy and the advancement in compared to TNCs that provide individual
digitalization and technology that ushered in foreign market investment to have their own
a new wave of globalization (Neubauer, operations and systems (lwan, 2007).
2014).
With the growth of global corporations
-From the late 1990s until very recently, from emerging economies, the capital flows
Bhavarga (2006) contends and have now started to change from the
characterizes the third wave of market dominant North-North/ North-South to South-
Market Integration
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South and South-North capital flows, most of

the South-North coming from China and
India (Rajan, 2010). For instance, China's
Lenovo Corporation bought IBM's PC
business (NBC News, 2005).
These global entities, IFIs and global
corporations, play a significant role in global
wealth creation and distribution, including
global economic development (Neubauer,
2014). However, the significant growth of IFIs
and global corporations is complicated by
ever-dynamic context and patterns. These
trends include global inequality, systematic
stability and viability of the global financial
system and climate issues, and issues on
human security. Although IFIs have a
stronger societal development outlook, they
have a larger responsibility to safeguard
against unintended negative outcomes of
some of their investments and to balance
rapid economic growth with social well-being
and ensuring environmental health.
Similarly, global corporations need to
embrace that their impact to society and
environment goes beyond profit, products,
and employment but more so to social
development and ensuring environmental
integrity in the midst of their operations and
expansion (Neubauer, 2014).
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EFFECTS OF GLOBALIZATION ON INSTITUTIONS THAT GOVERN

GOVERNMENTS GLOBALIZATION
As the world becomes more With the growing globalization, the
interconnected through politics, trade, and governance of global relations goes beyond
communications, the role of nation-states nation-state governments. Nation-state
and government are also shifting. Thus, governments' scale and scope are limited in
national and local policies are not only based addressing regional and global issues like
on local context but also international and climate change, cybercrime, and global
global realities. One example of a global financial crises. Works by authors like Dryzek
treaty is the Montreal Protocol on (2012) and Castells (2008) show the growing
Substances that Deplete the Ozone Layer, emphasis on the role of non-state actors in
which aims to phase out the production of global governance. These non-state actors
numerous substances responsible for ozone include NGOs, advocacy networks, voluntary
depletion, signed in August 26, 1987 with 46 associations, and interest groups (Castells,
country signatories (US EPA, 2017). A 2008). Their congenial and more
definitive evidence of the Montreal Protocol's approachable strategies appeal the
success was discussed by NASA and community and even other state actors and
projected that ozone levels will return to 1980 has a potential to organize across areas
levels by 2032 (Watts, 2018). This is an (Dryzek, 2012).
example of how international agreements
and efforts could fight borderless challenges The shift of authority to actors above and
and issues specifically by domesticating below the state is termed as "glocalization"
international norms. or "internal globalization" (Roudomentof,
2005: 113). As the role of the nation-state
However, there is another side of and governments shifted, participation of
globalization that negatively affects local these new actors has opened up (Boli &
governments and local communities. A local Thomas, 1999). One of the most renowned
government would like to attract major global modern examples of the active role of non-
investors in their community by setting up for state actors in global movements is in the
instance their manufacturing firm in the area. 1992 UN Conference on Environment and
This could create jobs for the local people Development. The world saw the most active
and generate income for local businesses. and broadest role of non-state actors in
However, it entails converting tracks of pushing for more just and sustainable
agricultural land into an industrial zone. development (BoumanDentener & Devos,
Farmers will be displaced and agricultural 2015).
production of the area will be affected. The
global corporation is also demanding lower There are several institutions that govern
taxes and lower income wage in order to international relations and affairs. First and
finalize their investment in the area. They foremost is the United Nations. With 192
argue that they will create more jobs and member states, it is seen as the facilitator of
more income from the local community and global governance (Meyer, 2011). Another is
government. How could local governments regional commissions, which are group of
balance improved economic performance officials from different countries that instruct
and participation in the global economic and debate, and are in charge of making
scene without sacrificing local social and certain laws promulgate certain rights for
environmental well-being? Here, we see how economic social development (CEPAL et al.,
local governments are heavily influenced by 2015). Examples of these are the:
powerful corporate entities.
The Global Interstate system
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 Economic Commission for Africa

(ECA),
 Economic Commission for Europe
(ECE),
 Economic Commission for Latin
American, and the Caribbean
(ESCLAC),
 Economic an Social Commission
for Asia and the Pacific (ESCAP),
 and Economic and Social
Commission for Western Asia
(ESCWA) (ibid).
The World Bank (WE) is an international
financial institution that provide: loans to
countries of the world for capital projects,
established during the Bretton Woods
Conference in 1944 and include other
members like the International Bank for
Reconstruction and Development (IROB),
International Development Association
(IDA), International Finance Corporation
(IFC), and Multilateral Investment
Guarantee Agency (MIGA) (The World
Bank, n.d.). These institutions provide loans
to middle income countries and even private
sectors in developing countries to create
markets and improve local economies.

GLOBALISM VS INTERNATIONALISM
These two terms are commonly used
interchangeably and pertain to the increasing
interconnectivity of countries and people of
the world through communications,
transport, and technology (Roudometof,
2005). However, there are differences
between internationalism and globalism.
Internationalism is defined as political,
economic, and cultural cooperation between
nations, while globalism is an ideology based
on the belief that flow of people, goods, and
information should flow freely across national
The Global Interstate system
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borders (Roudometof, 2005), Sargent (2008)

argues that internationalism emphasizes
diversity and celebrates multiculturalism,
while globalism focuses more on the
economic aspect of the exchanges among
countries and society.
SUMMARY
In this chapter, we discussed how
globalization and the internationalization of
economics have affected traditional national
governance and government. Although there
are benefits of globalization for addressing
borderless challenges like climate change,
pollution, among others, there are also limits
and challenges posed in the local
sovereignty and self-determination of nations
and communities.
Here, we also discussed the different
institutions that assist in global governance.
This includes institutions like the UN and
international finance and development
organizations. Also, the growing recognition
of the role of non-state actors like civil society
groups in international affairs is highlighted.
Lastly, we briefly discussed the
difference between globalism and
internationalism. While the former focuses on
the economic dimensions on globalization,
the latter focuses on culture and social
interactions.
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UNDERSTANDING GLOBAL ECONOMY governments and now other private sectors

(Wood, 2019).
In the previous lessons we talked
about globalization in each economic INTERNATIONAL MONETARY FUND
dimension that include greater integration of
economic activities, products and systems - an international organization with 183
across the world. member countries that promotes
international monetary cooperation and
As Azentes (2003) argues, exchange stability to foster economic growth
globalization in economic terms extends and high employment and to provide short-
economic projects and relations term financial assistance to countries to help
transnationally and promotes economic ease balance of payments adjustments (IMF,
interdependencies among different 2019).
countries.
GLOBAL CIVIL SOCIETY
It is important to note that economic
globalization goes beyond - is a system of nongovernment institutions
internationalization. that operate across geographical borders
and organize and mobilize for a common
It involves the integration of functions issue or cause (Keane, 2003: 8).
and processes of economic activities
(Dickens, 2004). GLOBAL CORPORATION

This means that economic integration - is an "enterprise that engages in activities

requires not just having an international which add value (manufacturing, extraction,
consumer or exporting goods from one services, marketing, etc) in more than one
country to another, but also involves creating country" (UCTC, 1991).
institutions for market integration and WORLD SYSTEM
globalization.
- is based on the theory of Wallerstein (1974)
DEFINITION OF TERMS that recognizes that social and economic
change is not only endogenous to a county,
but is affected by its interaction to exogenous
ECONOMIC GLOBALIZATION institutions, thus the focus on world-systems
(Chase-Dunn, 2018).
- is the expansion of national economies, the
global market driven by modern technologies ECONOMIC INTEGRATION
and institutional set ups that promote faster
and easier flow of goods and capital (Sugden - is a process of combining or increasing or
and Wilson, 2005). global economies interconnectivity of
national economies to the regional
GLOBAL ECONOMY economies (Clark et al., 2018).
- denotes that the economies of various
countries are more interconnected from
extraction, production, distribution, ECONOMIC GLOBALIZATION
consumption, to disposal of goods and Most of the definitions of globalization
services (Carfl and Schilire, 2018). centers on its economic dimensions.
INTERNATIONAL FINANCIAL Economic globalization is driven by the
INSTITUTIONS "growing scale of cross-border trade of
commodities and services" (Shangquan,
- are global financial institutions that support 2000:1). Critical to economic globalization is
a country's economic growth through global economic Integration. Economic
support (i.e., loans, technical assistance) to integration means that separate production
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operations are functionally related to each Who Are The Actors That Facilitate
other and form a unified product or service. Economic Globalization?
This requires efficient management of
economic operations from different areas in Globalization has opened the doors
the world. In current times, this is made for other non-state authority. and actors in
possible by innovations in transport logistics, driving economic globalization (Madsen &
modernization of communication and Christensen, 2016; Sassen, 2006). Non-
transport systems, policies supporting state actors include international economic
Integration of different process along the organizations, private sector led by
globe, among others. multinational companies, central banks, and
civil society. Let us discuss how each actor
The various definitions of the contributes to economic globalization.
economic globalization focus on increasing
economic trade interrelations among First are international economic
countries (Steger, 2010; Al-Rodhan, et al., organizations such as the International
2006; Shangquan, 2000). This is governed Monetary Fund (IMF), World Bank, and
by neoliberal principles with the role of the Organization for Economic Cooperation and
market as a central driver of economic Development (OECD). These organizations
activities, with less government interventions are critical in developing and pushing for
(Martin, Schumann & Camiller, 1997). neoliberal policies among different countries.
Economic globalization entails global They also help facilitate trade and
industrial restructuring and readjustments development discussions among various
where developed countries play a dominant states. Another example are regional
role (Shangquan, 2000:3). organizations such as the Association of
Southeast Asian Nations (ASEAN) and North
However, the process of global American Free Trade Agreement (NAFTA).
economic integration Is not a modern These organizations promote regional
phenomenon. The voyages of earlier agreements and standards that facilitate
explorers including the formation of empire better trade and exchange of knowledge,
(i.e., Roman empire) were critical in human resources, and regional cooperation.
intercontinental trade and were also a The Group of 8 (G8) and G20 are advisory
precursor of modern economic globalization. organizations that discuss current economic
and
Chinese, and even earlier, trades in Asia also political problems and transfer the ideas
serve as first-forms of economic expansion from the groups' forum to national legislative
and later integration. Gills and Thompson regulations (Shangquan, 2000:
(2006: 1) argues that the globalization
processes "have been ongoing ever since Second are multinational
Homo sapiens began migrating from the companies (MNCs), which are considered
African continent ultimately to populate the to be the main carriers of economic
rest of the world." Explorations in earlier globalization (Shangquan, 2000:2). In 1996,
times tend to focus on a relatively smaller there were 44,000 MNCs in the world with
target of commodities of high value like 280,000 overseas subsidiaries and branch
spices, tea, gold, or other precious metals. offices (ibid). In 2006, there were 88,000
The difference now is the extent and reach of MNCs identified (UNCTAD, 2007). In earlier
economic globalization, restructuring of times, trade companies such as the Dutch
economic systems, and the dominant and British East India, Muscovy Company,
influence of the private sector in the global Royal African Company, and Hudson Bay
economy (Shangquan, 2000). Company were precursors of the modern day
MNCs (Hirst & Thompson, 2002). MNCs
started to emerge during World War II when
US industrial production increased by 44
percent (Strange, 1996).
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Other prime movers of economic INTERNATIONAL FINANCIAL

globalization are central banks. They are INSTITUTIONS (IFIS)
considered one of the most powerful
institutions in the world economy since they The generic name given to all
can lead economic development, and some financial institutions operating on an
authors contend that central bank governors international level, ranging from
are more influential in their own national development banks, such as the World Bank
economy than some politicians (Shangquan, and the European Bank for Reconstruction
2000: 280). and Development (EDB), and monetary
authorities, such as the International
Lastly is the global civil society as a major Monetary Fund. These organizations give
driver of economic globalization. The global loans to governments for large-scale
civil society has made its mark in global projects, restructuring and balance of
development arena particularly during the payments on condition that they make
UN Conference on Environment and specific changes that IFIs believe will boost
Development in 1992 (Keane, 2003). Global economic growth (Shangquan, 2000).
civil society seen as either composed of
individuals or groups of individuals TRANSNATIONAL CORPORATIONS
disadvantaged by the effects of the "Enterprise that engages in activities which
globalization of the world economy, they add value (manufacturing. extraction,
protest and seek alternatives while on the services, marketing, etc.) in more than one
other hand, global social movement country (UCTC, 1991)."
constituting a basis for an alternative to a
new world order (Gherghel, n.d.). Part of the G8 AND G20
global civil society are Transnational
Group of nations that serve as an advisory
Advocacy Networks (TAN), networks which
organization that discuss current economic
are "organized to promote causes, principled
and political problems and transfer the ideas
ideas, and norms, and they often involve
from the forum in national legislative
individuals advocating policy changes that
regulations (Weiss, 2018)
cannot be easily linked to a rationalist
understanding of their 'interests'" (Keck & GLOBAL CIVIL SOCIETY
Sikking, 1998:8-9
Either composed of individuals or groups of
INTERNATIONAL MONETARY FUND individuals disadvantaged by the effects of
(IMF) the globalization of the world economy, they
protest and seek alternatives while on the
Let us think about how economic
other hand, global social movement
globalization affects the community. The
constituting a basis for an alternative to a
important institutions related to global
new world order (Gherghel, n.d.; Keane,
economy are provided below.
2003)
The IMF is an international
What Is The Modern World System?
organization of 183 member countries to
promote international monetary cooperation The seminal work of Immanuel
and exchange stability; to foster economic Wallerstein on the world-system theory
growth and high employment; and to provide (1974) is a critical reference in the
short-term financial assistance to countries theorization of globalization. In this work,
to help ease balance of payments he expounded on the theory on how the
adjustments (IMF, 2019). core came to dominate the periphery
areas particularly in the economic world
system as a basis of his analysis. This
transgresses from the traditional analysis of
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colonization with nation-state as starting

point.
For Wallerstein, a world system
constitutes a social system composed of
boundaries, structures, member groups,
rules of legitimation, and coherence
(Wallerstein, 2011). World economy,
according to Wallerstein (2011), is divided
into core states and peripheral areas
including semi-peripherals. According to the
world-system theory, the peripherals are
mostly where production or raw materials
are sourced out, while the semi-
peripherals processed or distributed the
products to the core areas—sites of major
demands for goods and services
(Wallerstein, 2011). There are significant and
meaningful movements of resources,
products, people in different economies
facilitated by modern transport and
communication (Chase-Dunn, 2018).