Introduction to Globalization

Introduction to Globalization

• Globalization is an economic process that increases the linkage of national economies.
• It is a political process concerning state sovereignty, intergovernmental organizations, and global governance.
• Globalization is also a growing network of cultural interconnections and interdependencies.

Definitions of Globalization

• Economically, globalization involves fast trade, global economic organizations, multinational corporations, trade blocs, free trade, privatization, and less tariffs.
• Politically, it challenges the nation state, strengthens regional blocs, creates global norms, forms multilateral relations, and introduces international laws and world governance.
• Culturally, globalization establishes a "global village," shrinking the world, creating cultural imperialism, borderless world, and adoption of other cultures.

Attributes of Globalization

• Various forms of connectivity exist which are diverse (economic, political, cultural, etc.) and enabled by various factors and media.
• Connectivity is uneven, resulting in different degrees of interconnections.
• Expansion and stretching of social relations occur through regional and international NGOs, sister-cities, government associations, and multinational corporations.
• There is intensification, acceleration of social exchanges and activities.
• It objectively involves thinking about the world, aligning with global trends, and a sense of responsibility.

Six Core Claims of Globalization

• Globalization involves the liberalization and global integration of markets.
• It is considered inevitable and irreversible.
• No single entity is in charge of globalization.
• It is believed to benefit everyone in the long run.
• Globalization promotes the spread of democracy.
• It is believed to require a global war on terror.

Globalization as Globaloney

• Globaloney contradicts globalization by claiming accounts are incorrect, imprecise, or exaggerated.
• It cites everything linked to transnational processes as evidence for globalization.

Three Categories for the Arguments of Globaloney

• Rejectionists dispute the usefulness of globalization as a precise concept, suggesting it is a vacuous term used academically to refer to anything.
  • Additional examples would help in showing obscuring more than enlightenment.
  • Consider globalization through objective processes
• Skeptics emphasize the limited nature of current globalizing processes.
  • The world economy is centered on Europe, eastern Asia, and North America.
  • Economic activity remains primarily on financial flows.
  • There are warnings against global conclusions against the existence of economic globalization.
  • It assumes that globalization is primarily an economic phenomenon and other dimensions are reflections of deeper economic processes.
• Modifiers dispute the novelty of the process and proofs, acknowledging existence of moderate globalizing tendencies.
  • Globalization has often been applied in a historically imprecise manner.
  • The modern capitalist economy has been global since inception five centuries ago with globalizing tendencies proceeding along modernization.

Definitions of Globalizations

• Immanuel Wallerstein defines it as the triumph of a capitalist world economy tied by a global division of labor.
• David Harvey defines it as how the time and space that has to pass from different locations has compresses
• Martin Albrow defines it as the processes by which the people of the world is incorporated into a single world society.

The Global Economy

• Economic Globalization derives from historical development, evolving international markets, and corporations leading to intensified interdependence.
• General analysis is to understand manifestations of international trade, financial transfers, and foreign direct investment.

Indicators and Manifestations

• The indicators of economic globalization include:
• International Trade and Development
• Multilateral agreement on investment and related initiatives
• Transnational Corporations
• Foreign Direct Investment
• World Trade Organization
• World Bank
• International Monetary Fund
• Global Taxes
• They manifest through international trade, financial transfers, and foreign direct investment
• Representing the increasing interconnectedness of economies internationally.

International Trade and Development

• Trade agreements like FTAA, NAFTA, and CAFTA impact economies at all levels by facilitating international trade.
• Such agreements may slow development in poorer countries.

Multilateral Agreement on Investment and Related Initiatives

• Such an agreement or treaty has terms and conditions discussed by participating nations or private entities.

Transnational Corporations

• These have transformed into largest economic entities in the world.
• They push for liberalization while challenging environmental, health, and labor standards in many countries.

Foreign Direct Investment

• Foreign Direct Investments involve an investment in a nation state in the form of controlling its ownership.
• This has increased tenfold. Foreign capital is seen as a tool for growth but has increased instability.

World Trade Organization

• WTO sets and enforces rules of international trade.
• It is a target of civil society's criticism over undemocratic operating procedures and neo-liberal ideology.

World Bank

• World Bank eradicates poverty by loaning poor countries money for economic development.
• These loans often come with economic liberalization demands.

International Monetary Fund

• IMF is a lender of last resort for countries experiencing economic crises
• It facilitates international trades, assists global monetary cooperation, and reduces poverty to the borrowing

Global Taxes

• To implement, global taxes need democratic oversight and control in policy.
• Distributive effects and possible use of such taxes should be consider.
• UN and it's agencies and other programs should be use for worldwide human security and development.

Actors of Economic Globalization

• Economic globalization actors influences the global economic process.
• They can be classified as public or private organizations, economic forums, and regulatory systems.
• Most are represented by corporations and national leaders.
• Common to these groups are efficient market transactions that contribute to international economic growth.

International Chamber of Commerce

• The International Chamber of Commerce is historically functioned as the most comprehensive business forum committed to liberalization.
• It refers to itself as the World business association.
• ICC institutionalizes an international business perspective by providing a forum for capitalist’s profession.
• Related IOs are WTO, G20, and OECD

Bilderberg Group

• The Bilderberg Group provides a context for comprehensive international capitalist coordination and planning.
• It Assembles representatives of Right and Left, capital and organized labor in the spirit of corporate liberalism.
• The conferences furnish a confidential platform for elites from the North-Atlantic heartland for mutual understanding.
• Related IOs are CFR, IMF, World Bank, Trilateral Commission, EU, and NAFTA.

Trilateral Commissions

• Its goal is to foster leadership and closer cooperation among the core capitalist regions.
• It expands the regulatory sphere of capitalist discipline.
• Related IOs are CFR, Bilderberg Group, G7 summit, and G8 summit.

World Economic Forum

• Meetings secure the patronage of the European Communities and encourage Europe's Industry associations
• It establishes global initiatives to distinguish it as the most example of neo-liberal structionalism
• It's a transnational planning body and transcendental example of truly global network.
• The related IOs are World Bank, IMF, and GATT

World Business Council for Sustainable Development

• It's characterized in neo-liberal regulationist typology.
• Formed in Geneva-based Business Council for Sustainable Development; Paris-based World Industry Council for the Environment branch.
• It's a child of UN's Conference on Environment and Development 1992 Rio Earth Summit
• The related IOS are UNEP, UNCTAD, UNCED

Neo-Marxism

• Wallerstein demonstrates his perspective through his social theory.
• Capitalism is more negative than positive in nature.
• Neo-Marxism is also about examinations of what occurs. His world system theory emphasizes the connectedness of every economy.

World System Theory

• Today's modern world system is unique from any previous time in history, because of its reliance on total global economic control.
• there is instead only one world economy, comprised of core, semi-periphery, and periphery economies.

The Multiple Crises of Global Capitalism

• The crisis of Overproduction is the overcapacity that could portend tied to an increasingly integrated global production system and market.
• The crisis of Legitimacy is caused by the increasing inability of ideologies that serve as global capitalism's system of global economic governance.
• The crisis of liberal Democracy The importance of its legitimacy and stability cannot be understated.
• Overextension (Imperial overstretch) Recent expansion of US military influence into Afghanistan, Philippines, Central and south Asia may communicate strength.

The Rise of the Anti-corporate Globalization Movement

• These crises are unfolding even as the movement against corporate globalization, neo-liberalists, free trades and other policies.
• In 1990s, the resistance to neoliberalism was widespread throughout the South and North.

The world social forum and the construction of a Global community.

• The inability of a system to deliver its promises is its revelation of opposing interests between the elites and the vast majority
• the growing perception of a community of interests among the latter, distinct from that of the global corporate elites, manifested itself.

Market Integration

• Following roles are based on the context of East Asia

Role of international financial institutions in creating a global economy

• Macroeconomic and microeconomic policy Goal is to restore market confidence
• Financial restructuring less technical, legal, and institutional capacity for task

Preventing Crises by Controlling Capital Flows

• Creating a robust policy regime that minimizes the long-term consequences of economic activity
• Designing financial systems that buffer the economy against shocks rather than magnify the shocks is the goal

The importance and limitations of information

• Monitoring and surveillance are going to be especially challenging.
• The information aggregated without the need for any centralized collection of information or planning

The Role of the World Bank

• The World Bank is a development institution, not a crisis fighter: focus should be project lending and structural reforms

Short history of corporations in reaching its current state of influencing the economic governance

• Three periods of Global Corporations; period of Trade and exchanges, Colonialism and Imperialism, American, Japanese and European Corporations.

Trade and exchanges (17th Century)

• One of the earliest is the East India Company
• The company was formed for the exploitation of trade with East and Southeast Asia and India.

Colonialism and Imperialism (19th Century)

• Financial capitalist by Rodelf hilfredging (1910) stated Commercial capital was far more favorably inclined to an increase in the power

American, Japanese and European Corporations

• The international company's birth from 1900 especially after Security and Exchange organization (SEC) was founded in 1933 and law of establishment investing companies in 1940 in United States

Different types of Corporations

• International companies Import and export but no investment outside home country
• Invested in and present in many companies: Global Companies
• The company's products and services market to each individual local market
• Multinational Companies Investment in other countries
• They coordinate product offerings in each country
• Transnational Companies The companies have invested in foreign operations
• A central corporate facility gives decision making, research and development, and marketing powers to each individual market

Global Interstate System

• According to Schattle, 2014, the states are accountable and are in subordinate positions to protect their economy

Effects of Globalization on Governments

• Imposing a forced choice upon state: they conform to the neo-liberal ideas of free-market principles of deregulation and privatization or they are left behind

The growth of international law and universal principles is impacted by

• The rise of transnational activism
• Creation of new communication network

The Intergovernmental organizations (IGO)

• Institutes that govern international relations
• Refer to an entity created by treaty- involving two or more nations- to work in good faith on issues of common interest
• Its main goal is to bind nation-states and create strong economic, political, cultural
• The aim is to achieve educational and technical relationships
• Examples of IGOS are such as ASEAN, EU, UN, NAFTA and WTO and many others

Attributes and Functions of IGOS

• Multi-issue and single issuer organizations can be IGOs and can be regional or global in the scope.

Internationalism and Globalism

• The Intensification of relations among nation-states occurs through internationalism

Contemporary Global Governance is achieved through

• Balancing different interests and initiating cooperative action

• It encompasses the totality of institutions, policies, norms, procedures, and initiatives

The General Assembly

• the Main deliberative body, policymaking and representative organ of 193 member states."

The Security Council

• The Security Council, on the other hand, is responsible for the maintenance of peace and security.

Economic and Social Council

• It is the United Nations' central platform for reflection, debate, and innovative thinking on sustainable development.

International Court of Justice

• It is the UN's principal judicial organ.
• The Court's role is to settle, in accordance with international law, legal disputes submitted to it by States

The Secretariat

• The Secretariat comprises the Secretary-General and tens of thousands of international UN staff members who carry out the day-to-day work of the UN as mandated by the General Assembly

Trusteeship Council and the role

• it provides international supervision for 11 Trust Territories and ensure that adequate steps are taken for self-government and independence.

The United Nations has two main roles

• as an actor and as a venue.
• As an actor, United Nations confronts the 21st century challenges.

• As a venue, the United Nations establishes a space for members to manifest their opinions and perspectives

The functions of the UN are the following

• To maintain international peace and security
• To protect the human rights and to deliver humanitarian aid
• Promote the sustainability and uphold international law

Challenges of global governance in the 21st century include

• 1. Veto power of the five permanent members of the Security Council:
• 2. Police power to regulate actions of the member states and enforce orders and decisions:

Yes the state is relevant amid globalization of governance.

• there can be No intergovernmental organizations
• international and multinational arguments are designed by the states
• the exercise of sovereignty is from cooperation and concerted action

Global divides: North and South

• This refers to northern and southern part of the world divides
• the north and south divides is broadly considered a socio-economic and political divide

• generally, the classifications of the global north include the United States Canada Western Europe, Australia and New Zealand as well as developed parts of Asia

North hemisphere

• it is the home to all the members of the g8.

Global South

• This is made up of Africa, Latin
• America, and developing Asia including the Middle East

The difference between the north and the south

• the north mostly covers the West with world while the south with world

• the north controls population controls population
• the south is less stable or has economics that are disarticulated

Measurement of Economic development

• This is a measure of progress in a specific economy, advancements in technology, based of agriculture

Three factors that direct the economic development of states;

• 1. a line behavior within and between nation states integration and cooperation with some geographic areas
• 2. the resulting position of states and regions
• 3. Uneven immigration patterns lead to instability

Asian Response To Globalization And Regionalization can be achieved if:

• they establish the Asian Development Bank and loans
• they share information esp. on security like terror groups

Examine Japan with East Asia, ways the country

engages with how is state mark society

Political static:

• changes are in location including corporate restructurings, financial big bang and a generational Change in political class

Market:

• Japanese Corporate Capital is Expanding and upgrading its Asian production networks Accelerating manufacturing FLDI in China

Societies:

• Japanese government has attempted to capitalized Evidence of Japan’s soft power