Understanding Globalization

Introduction to Globalization

• Globalization fundamentally increases the interconnectedness of human beings across the globe.
• This interconnectedness is driven by technological changes, modern transportation, and communications technology.

Metaphors/Aspects of Globalization

• Compression of the World: Distance becomes less of a barrier, information travels instantaneously, leading to an integrated global marketplace.
• Intensification of World Consciousness: People become more aware of the world and global issues.

Ways to Understand Globalization

• Globalization as Ideology: A belief system promoting interconnectedness, free trade, democratic values, and peace; it involves debates about who benefits.
• Globalization as Process: An ongoing, dynamic series of changes driven by increasing interconnectedness involving increased flows and global competition.
• Globalization as Condition: The current state of the world shaped by globalization, characterized by high interdependence and blurred national boundaries.

Key Questions About Globalization

• Globalization in Practical Terms: Affects daily life through interconnectedness.
• Start Date: Debated as either ancient trade, Age of Exploration, Post-WWII, or Digital Age.
• Participation: Difficult to avoid due to pervasive interconnectedness.
• Good or Bad: Complex with positive and negative consequences depending on perspective.

Theoretical Paradigms of Globalization

• World System Paradigm (Immanuel Wallerstein): Views the world as a single economic system based on capitalist production, creating inequality and exploitation.
  • CORE: Dominant, wealthy nations exploiting periphery for labor and raw materials, such as the USA, Germany, and Japan.
  • PERIPHERY: Less developed nations providing cheap labor and raw materials and often exporting commodities, such as countries in Sub-Saharan Africa, parts of Latin America and Asia.
  • SEMI-PERIPHERY: Intermediate position sharing characteristics of both core and periphery nations, acting as a buffer such as Brazil, India, South Africa, and China.
• Space, Time, Globalization Paradigm (Giddens, Harvey): Focuses on intensified social relations linking distant localities, shaped by events occurring far away.
  • Time-Space Compression: Technology shrinking perceived distance and speeding up life.
  • Disembedding: Social relations lifted from local contexts and restructured.
  • Russia-Ukraine war impacts Philippine fuel prices as an example.
• Network Society School of Thought (Manuel Castells): Technology and technological change drive globalization processes by creating global networks and organizing society around information flows.

Perspectives on Globalization

• Hyperglobalist: Globalization is a positive force heralding economic growth, democracy, decline of nation-states, and the rise of MNCs.
• Skeptics: Question the extent and novelty of globalization, emphasize regionalization, and highlight inequality and harm to the environment.
• Transformationalists: Globalization is a real force transforming societies, economies, and politics with both positive and negative outcomes.

Globalization from a Filipino Perspective

• Overseas Filipino Workers (OFWs): Driven by global labor demand and remittances are crucial but involve social costs.
• Cultural Globalization: Influx and popularity of global cultural products leading to glocalization.
• Business Process Outsourcing (BPO) Industry: A result of Western outsourcing creates jobs and growth but raises concerns about labor, wages, and dependency.

The Global Economy 2.0

• Fundamental Economic Philosophies:
  • Laissez-Faire: Advocated by Adam Smith. Minimal government intervention; the "invisible hand" guides the economy.
  • Keynesian Economics: Developed by John Maynard Keynes. Government intervention stabilizes the economy during recessions by managing aggregate demand.
• Keynesian Tools for Economic Management:
  • Fiscal Policy: Uses government spending and taxation, either expansionary or contractionary.
    • Expansionary Fiscal Policy aims to boost a slow economy.
    • Contractionary Fiscal Policy aims to cool down an economy.
  • Monetary Policy: Uses interest rates and money supply (managed by the Central Bank, BSP).
    • Expansionary Monetary Policy aims to boost a slow economy.
    • Contractionary Monetary Policy aims to cool down an economy.
• Philippine Economic Issues & Globalization Context:
  • Inequality: Significant wealth gaps exist and are exacerbated by global forces.
  • Cost of Living/Poverty: Global factors affect access to basic needs.
  • Traffic: Costs the economy billions daily and is linked to infrastructure.
  • Labor Issues: Tied to global labor markets and regulations.
  • Environmental Degradation: Linked to economic activities, as environmental issues are economic problems.
  • Resilience: Can mask systemic problems.
  • Debt & Influence: Infrastructure projects raise concerns about debt traps and geopolitical influence.

The Global Interstate System

• State Defined: Sovereign political entity with effective control over defined territory and population.
  • Elements of a State: Include People, Territory, Government, and Sovereignty
    • Example: PH-China South China Sea Dispute where Philippines won a landmark ruling based on UNCLOS in 2016.
• Inherent Powers of the State (Government):
  • Police Power: Regulates behavior and property.
  • Taxation: Levies taxes to fund government operations.
  • Eminent Domain: Takes private property for public use with compensation.
• The International System:
  • Anarchy: Absence of world government; states interact based on sovereignty.
  • World Government: Hypothetical single political authority.
  • International Law: Rules governing relations between states, based on treaties, conventions, and customary practices.
• The United Nations (UN): Established in 1945 with 193 member states, and maintains international peace/security.
  • Six Main Organs: - General Assembly (GA): All members represented make non-binding recommendations. - Security Council (SC): Primary responsibility for peace and security can authorize binding resolutions. - Economic and Social Council (ECOSOC): Coordinates economic, social, and environmental efforts. - Trusteeship Council: Established to supervise "Trust Territories". - International Court of Justice (ICJ): Settles disputes between states. - Secretariat: Administrative arm headed by Secretary-General.

A World of Regions / Global Divides

• Global North / Global South Divide: A socio-economic and political division with the North as wealthy and the South as poorer.
• Key Characteristics Comparison: Include Economy, Influence, Infrastructure/Technology, and Health/Education.
• Roots: Linked to colonialism and imperialism.
• Three Worlds Model (Historical Context - Cold War):
  • First World: US, Western Europe, and allies.
  • Second World: Soviet Union, China and allies.
  • Third World: Remaining, non-aligned nations.
• Developed vs. Developing Countries:
  • Developed: High economic development, industrialization, GDP per capita, advanced infrastructure, high HDI.
  • Developing: Lower levels of development, weak industrial base, infrastructure challenges, lower HDI.
• Philippine Perspectives on Global Divides (Internal Divides):
  • Socioeconomic Divide: High income inequality and poverty.
  • Regional Divide: Stark development differences between regions.
  • Technological Divide: Unequal access to technology and the internet.
  • Gender and Political Divides: Gaps like gender pay and dominance of political dynasties.

Introduction to the Study of Globalization

• Globalization increases the interconnectedness of human beings.
• Globalization as Interconnectedness leads to Compression of the World: People become more connected, distance becomes less of a barrier, information travels faster, leading to an integrated marketplace; the world shrinks.
• Globalization as Intensification of World Consciousness:
  • Increased awareness of the world.
  • See their lives linked to global processes.
  • Example: Knowing about international events almost instantly.
• Globalization as a Multi-faceted Concept:
  • Ideology: A belief system promoting interconnectedness emphasizing free trade. Involves debates about who benefits like tariff debates.
  • Process: Continuous flows and intensifying global competition.
  • Condition: Characterized by high interdependence and blurred boundaries.

Driving Forces Behind Globalization

• Includes technological advancements and economic liberalization.

Impact of Globalization on the Philippines

• Economy: Opportunities exist such as BPO growth and OFW remittances, but challenges remain.
• Culture: Both influx of global culture and the challenge of maintaining Filipino Identity occur.
• Society: Migration and labor changes shape society.

Role of Filipino Values in Responding to Globalization

• Family/ community focus
• Community spirit
• Adaptability
• Agriculture values

Challenges and Opportunities for the Philippines in Globalization

• Challenges include navigating tensions and addressing poverty.
• Opportunities include leveraging capital (BPO, OFWs) and promoting its culture.

Philippine Economy and the Global Economy

• Integrated in global economy
• Role in Global Trade
  • Exporter
  • Importer

Laissez-Faire vs. Keynesian Economics

• Laissez-Faire
  • Minimal government
  • Invisible hand guides the economy
• Keynesian Economics
  • Government intervention
  • Stabilizes the economy

Major International Organizations & Global Governance

• United Nations (UN)
  • promotes development
• World Bank (WB)
  • Reduces global poverty
• International Monetary Fund (IMF)
• Oversees and liberalizes, international trade.
• World Trade Organization (WTO)
  • Stability of international monetary

Philippine Foreign Policy in a Globalized World

• Protect National Sovereignty
• Promotes economic development
• challenges of the global interstate system

Rise of New Global Powers (China/US)

• US/China is a strategic competition

Future of Global Governance & Philippines' Role

• Trend possibilities
• increased role of regional blocs

North-South Divide

• North-Wealthy/industrialized has influence
• South-Less developed has less influence
• Role of colonialism is a lasting impac

Philippines Role in ASEAN Integration

• A founding member of ASEAN
• Supports economic integration

South China Sea Disputes & PH-China Relations

• Disrupted relations
• China rejects ruling

Philippines' Strategic Partnerships (US/China) & Balancing Act

• Maintains independent foreign policy