Chapter 1-2-GE-3: Introduction to the Study of Globalization

**CHAPTER I** **Introduction to the Study of Globalization** **Intended Learning Outcomes** By the end of this topic/chapter, you must be able to: 1. Differentiate the competing conceptions of globalization 2. Identify the underlying philosophies of the varying definitions of globalizatio...

**CHAPTER I** **Introduction to the Study of Globalization** **Intended Learning Outcomes** By the end of this topic/chapter, you must be able to: 1. Differentiate the competing conceptions of globalization 2. Identify the underlying philosophies of the varying definitions of globalization **Lesson 1: Concepts and Its Underlying**  **Philosophies of Globalization** **Conceptions of Globalization** The emergence of globalization brought us to become more sociable and increases our awareness on technological aspect through this we have interactive movement on different sphere such as political, social, cultural, economic and technology which we best describe as " globalization". Before, the "global age," people, things, information, places, and objects tended to harden over time. Their common characteristics was "solidity," which is the characteristic of being limited to one place. Wherein solidity also refers to the persistence of barriers that prevented free movement of people, information, and objects in that period. Although solidity persists yet it is "fluidity" that is more describe the face of the "global age." Many years it seemed solid has tended to " melt " and become increasingly mobile or turn into liquid state. Consequently, a range of technological developments in transportation and communication have enabled far greater global movement of what was previously solid. " Globalization is increasingly characterized by flows of liquid phenomena including people, objects, decisions, information, and places. In spite of greater liquidity and ever - more flows of various types, the world is still characterized by great inequality. While globalization flows more easily through the developed world, it bypasses many locales in the less developed world. Such concept of globalization can be also assess through metaphors of heavy, light, and weightless. In the early years , there has been movement from that which is heavy to that which is light and most recently to that which approaches weightlessness. Pre - industrial and industrial societies were characterized as " heavy, " by that which is difficult to move. Moreover, advances in transportation and technology made goods, people, and places lighter. Since we are currently in an era defined not only by lightness but also increasingly by weightlessness. **Different definitions from the different authors:** Also the uprising of global economic, political, environmental and social activities. Expanding international capitalism, mainly through the reach of multinational corporations; the activities of the more important international political organizations such as the United Nations, World Bank, International Monetary Fund and World trade Organization Globalization can be thought of to be the result of the opening-up of the global economy and the concomitant increase in trade between nations. In other words, when countries that were hitherto closed to trade and foreign investment open-up their economies and go global, the result is an increasing interconnectedness and integration of the economies of the world. This is a brief introduction to globalization. Further, globalization can also mean that countries liberalize their import protocols and welcome foreign investment into sectors that are the mainstays of its economy. What this means is that countries multinational corporations. Globalization is an historical process that began with trade and migration in the distant past, but has recently accelerated as a result of the international spread of capitalism, rationalism, industrial production, and economic liberalism. Also in globalization used then to refer to the ongoing growth of interconnections and interdependencies in economics, politics, and culture in which social ties across boundaries have become more regularized and routine. Furthermore, there are broad approaches involved in globalization. In the first, it is a process that has been going on since the dawn of history, hence a 5,000--10,000 year time frame. In the second, it is a process coterminous with the spread and development of capitalism and modernity, hence a 500 year frame. In the third, it is a recent phenomenon associated with such processes of post-industrialization, post modernization or the restructuring of capitalism, hence a 20--30 year frame. These mentioned approaches are the manifestation of globalization in the global perspective. **FACTS about Globalization** **Global Issues** These are the contemporary issues involve multifaceted dimensions such as political, economic, social historical and geographic components. The interconnected and series of event happened in the global perspectives affected all human kind. - ***Population - Our population is growing that no one will be startled by that the rate of growth, and the fact that the present growth of population is in unprecedented in human history.*** - ***Food Production - How much food is produced in the world at present? Is there enough for everyone? The answer maybe surprising that we have enough food.*** - ***The Energy - Climate Crisis are we running out of energy? Of course not. Everything is made out of energy.These laws also state that energy cannot be created; all we can do is to transform it from one state to another.*** - ***Military issues- major force in managing peace and security, especially in inter - state relations.*** - ***Economic - promote actions that would lead to reductions in global inequality.*** - ***Environmental - (e.g. pollution, hazardous wastes) which are dealt with primarily through the United Nations Environment Programme.*** - ***Poverty - International trade generally increases wealth. But it does not always distribute that wealth equally. The International Monetary Fund (IMF) reported that the gap between rich and poor countries has grown within the past several decades. The gap between people within countries has grown as well.*** **Impact of Globalization** The wider effects of globalization, increased global awareness and the growth of illicit cross border activities. Moreover, the global interconnectivity which probably facilated the illegitimate transaction of activities such black market and other human trafficking. For the people living in deprived parts of the world , global awareness raises their expectations and lower their tolerance of the situation they are in. this is probably a factor in the spread of democracy and growing demands for political freedoms where these are still denied. For people in richer countries, the information revolution is helping to forge a sense of global community and transnational solidarity. This is a manifestation of global coalitions among nation states involving different universal issues such as human rights, humanitarian aid and labor exploitation. Unskilled and indigenous people are particularly the vulnerable one. The high rising building and increase mobility of economic enterprise lead them to displaced and massive dislocation , environmental degradation and violations of human rights.  **Lesson 2: Theorization of Globalization** **Theorizing Globalization** These are the underlying philosophies of the varying definitions of globalization 1. **Imperialism** **-** is a broad concept that describes various methods employed by one country to gain control (sometimes through territorial conquest) of another country (or geographic area) and then to exercise control, especially political, economic, and territorial, over that country (or geographic area), and perhaps many other countries. 2. **Colonialism** ***Decolonization*** or "the process of revealing and dismantling colonialist power in all its forms. This includes dismantling the hidden aspects of those institutional and cultural forces that had maintained the colonialist power and that remain even after political independence is achieved". 3. **Neo -- Liberalism** Neo-liberal and laissez-faire economic ideologies favoring free trade, free circulation of capital, and freedom to invest anywhere have encouraged the growth of a complex international system of economic interdependence that transcends national borders. (Filmer 1995). In the context of modernization theory it tends to view the West as a map for global development. There are more modern practices and modes of thought developed over the traditional ways which modern societies adopted and these can be introduced from without, so that the West has a central role to play in the modernization of developing social orders (Hulme and Turner, 1990) Also in the study of Robinson, 2007, Globalization theories there are three broad approaches. In the first, it is a process that has been going on since the dawn of history, hence a 5,000--10,000 year time frame. In the second, it is a process coterminous with the spread and development of capitalism and modernity, hence a 500 year frame. In the third, it is a recent phenomenon associated with such processes of post-industrialization, post -modernization or the restructuring of capitalism, hence a 20--30 year frame.  **CHAPTER II** **The Structures of Globalization** **Lesson 1: The Global Economy** a. **Actors in Globalization** b. **Modern World System** c. **Global Economic Integration** **Intended Learning Outcomes** By the end of this topic/chapter, you must be able to: 1. Define economic globalization 2. Identify the actors that facilitate economic globalization 3. Define the world system theory **Lesson 1: The Global Economy** Economy is the basic foundation which should be given primary importance and it also influences the condition of the society as well as the politics. **In which the worldwide economic status of one country clearly shows that economic mobility is consider as major factor in competing in the global arena. Where the rich become more richer and the poor become poorer.** **Economic relationship was established then where Philippines bartered goods with China such as porcelains, silk, and other goods. The Galleon trade which was implemented by the Spaniards in the Philippines. The silk road which was introduced by China as the oldest international trade route where goods transported to the other side of the globe.** The fears of another Depression after World War II led to the Bretton Woods system in 1944. This was an attempt to create institutional structures which would foster international economic cooperation and encourage the free flow of capital around the world. The US dollar was adopted as the standard, almost a " global currency, " in order to establish stable international exchange rates. The Bretton Woods system led to the creation, either directly or indirectly, of various global economic structures. While the International Trade Organization (ITO) was unsuccessful because of a lack of US support, the General Agreement on Trade and Tariffs (GATT) sought to facilitate the liberalization of trade by the reduction of tariff barriers. GATT was eventually replaced by the World Trade Organization (WTO), which added a concern for the reduction of non - tariff barriers. This included the General Agreement on Trade in Services (GATS), protection of intellectual property through TRIPS, and TRIMS measures that allow a nation- state to control the distorting effects of foreign investment. The WTO is a forum for international negotiations on trade, with member countries participating in successive " rounds " of discussions. Bretton Woods also led to the creation of the International Monetary Fund in order to create a stable global monetary system. **According to Hamilton ,2008.** **One of the dimensions of globalization is the economic globalization it involves trading and investing between countries. Trade is a driving force behind international relations and trade impacts nearly every aspect of society.** This global economy has involved the global decentralization of production simultaneous to the centralization of command and control of the global production system within global cities. Here Sassen draws on the basic insight from the sociology of organization that any increase in the complexity of social activity must involve a concomitant increase in the mechanisms of coordination.(Robinson, 2008) Global trade operates through various economic networks such as supply chains, international production networks, global commodity chains and, most importantly, global value chains. Global value chains follow the creation of value through different stages, from the creation of a product, to its disposal after use. Commodities are often the first link in this chain. The demand for commodities is sky - rocketing, fueled primarily by enormous demand in the developed countries and increased consumption in developing countries (especially China). Oil is a case in point. Not only are prices escalating because of increased demand, but it is also becoming increasingly difficult to procure oil. These problems will be exacerbated in the future by a decrease in the global supply of oil, as well as by the fact that some of the current oil - exporting countries will start to import (rather than to export) oil to meet their domestic needs. Some countries stimulate trade and investment through low prices and low wages. This often leads to a " race to the bottom " among countries vying for increased investment and export business. However, some theorize that after a point, there is a move toward industrial " upgrading. " Countries that entered the world market at the bottom, such as China and Mexico, move on to produce higher - value products at higher wages. However, as some countries upgrade, others enter at the bottom, guaranteeing a supply of low - priced, low - wage products to the North. Outsourcing is also an important global flow. Offshore outsourcing involves contracting work to companies located in other countries. Apart from the economic domain, this process is also prevalent in the health care and military domains. Not only does the process operate at a macro - level, but increasingly, it can also be observed at micro - and meso - levels. Over the past few decades the political economy significantly changes , in the way that it is organized and governed by collaborating nations. These changes have repercussions that not only affect the flow of goods and services between countries, but also the movement of people. Interconnection of worldwide economic activities known as Global Economy that take place between multiple countries. These economic activities can have either a positive or negative impact on the countries involved.  - **Why is the global economy important?** **The increase in the world's population has led to emerging markets growing economically, making them one of the primary engines of world economic growth. The growth and resilience shown by emerging markets is a good sign for the [world economy]. Before delving into the next point, you need to understand the concept of microeconomics. It refers to the study of the behaviour of households, individuals, and firms with respect to the allocation of resources and decision-making. In simpler terms, this branch of economics studies how people make decisions, what factors affect their decisions, and how these decisions affect the price, demand, and supply of goods in the market. Therefore, from the perspective of microeconomics, some of the largest firms with high market value and a few of the richest individuals in the world hail from these emerging markets, which has helped in the higher distribution of income in these countries. However, many of these emerging countries are still plagued by poverty, and work still needs to be done to work towards eradicating it.** - **How does the global economy work?** **The functioning of the global economy can be explained through one word ---transactions. International transactions taking place between top economies in the world help in the continuance of the global economy. These transactions mainly comprise trade taking place between different countries. International trade includes the exchange of a variety of products between countries. It ranges all the way from fruits, and foods, to natural oil and weapons. Such transactions have a number of benefits including: providing a foundation for worldwide economic growth, with the international economy set to grow by 4%; encouraging competitiveness between countries in various markets; raising productivity and efficiency across countries; and helping in development of underdeveloped countries by allowing them to import capital goods(machinery and industrial raw materials) and export primary goods (natural resources and raw materials).** - **What are the effects of global economy?** **The main cause of these effects is economics --- based on the production and exchange of goods and services. Restrictions on the import and export of goods and services can potentially hamper the economic stability of countries who choose to impose too many** - **What are the benefits of global economy?**  **FACTORS affecting Global Economy** **According to the latest economic news, here are some of the key factors that influence and affect how well the global economy works:**  **Actors in Globalization** **Process of interconnecting involved many forces which are very influential in the result of globalization. This major actors played important roles and have been categorized either intergovernmental or supranational organization.**  **CATEGORY of Organization** **Intergovernmental Organizations or International Organization** **An organization composed primarily of sovereign states , or of other intergovernmental oganizations. IGO are established by a treaty that acts as a charter creating group. Treaties are formed when lawful representatives of several states go through a ratification process, providing the IGO with an international personality.** - **World Trade Organization** - **World Health Organization** - **Asian Development Bank** **Supranational Organization** **Organizations that extend beyond the borders of three or more states that seeks to promote economic, political, or cultural unity between members.** - **United Nations** - **International Labor Organization** - **European Union** **International Non --Governmental Organizations** **Organization extends the concept of a non-governmental organization to an international scope. NGOs are independent of governments and can be seen as two types , advocacy NGOs, which aim to influence governments with a specific goal and operational NGOs , which provide services.** - **Amnesty International** - **International Committee of the Red Cross** - **International Chamber of Commerce** **Multinational Corporation(MNC)** **Also known as global corporation, is an entity that owns and controls production of goods or services in one or more countries aside from their home country.** **Transnational Corporation (TNC)** **A commercial enterprise that operates substantial facilities that does business in more than one country. It is usually a large corporation incorporated in one country which produces or sells goods or services in various countries.** **The two main characteristics of TNCs are their large size and the fact that their worldwide activities are centrally controlled by the parent companies. They are often:** - **Importing and exporting goods and services** - **Making significant investments in a foreign country** - **Buying and selling licenses in foreign markets** - **Engaging in contract manufacturing -- permitting a local manufacturer in a foreign country to produce their products.** - **Opening manufacturing facilities or assembly operations in foreign countries.** A. **Modern** **World System** **World System Theory** **In the study of Wallerstein ,1979 he cited that a social system is known as world system which one that has boundaries, structures, member groups, rules of legitimation and coherence. Its life is made up of the conflicting forces which hold it together by tension and tear it apart as each group seeks eternally to remold it to its advantage.** **There are also semiperipheral areas which are in between the core and the periphery on a series of dimensions, such as the complexity of economic activities, strength of the state machinery, cultural integrity, etc. Some of these areas had been core-areas of earlier versions of a given world-economy. Some had been peripheral areas that were later promoted, so to speak, as a result of the changing geopolitics of an expanding world-economy. The semiperiphery is a necessary structural element in a world-economy. These areas play a role parallel to that played, mutatis mutandis, by middle trading groups in an empire. They are collection points of vital skills that are often poetically unpopular. These middle areas (like middle groups in an empire) partially deflect the political pressures which groups primarily located in peripheral areas might otherwise direct against core-states and the groups which operate within and through their state machineries. On the other hand, the interests primarily located in the semi periphery are located outside the political arena of the core-states, and find it difficult to pursue the ends in political coalitions that might be open to them were they in the same political arena. (Thompson, 2005)** **The states must be strong enough to stand and protect their own economies outside the control of other players in the economic field in order that sovereignty of the state will be maintained.** **The BRANDT LINE** **The Brandt Line is an invisible line across the world that divides the rich north from the poor south.** **The Brandt Line corresponds with the divide between economically developed and industrialized countries and those countries that are less economically developed.** **Where the Brandt Report is the report written by the Independent Commission, first chaired by Willy Brandt in 1980, to review international development issues. The result of this report provided an understanding of drastic differences in the economic development for both the North and South hemispheres of the world.** B. **Global Economic Integration** **The economic integration is not a new phenomenon. Since the travels of Marco Polo , global economic integration has been a trend to civilization. There are number of factors that contributes to global economic growth such as the privatization, deregulation, foreign direct investment, trade liberalization and regional integration.** **FACTORS that contributes to Global Economic Growth:** **Privatization the transfer of ownership , property or business from the government to the private sector is termed privatization The government ceases to be the owner of the entity or business.** **Deregulation is the process of removing or reducing state regulations, typically in the economic sphere.** **Foreign direct investment (FDI) is an investment in the form of a controlling ownership in a business in one country by an entity based in another country. It is distinguished from a foreign portfolio investment by a notion of direct control.** **Trade liberalization is the removal or reduction of restrictions or barriers on the free exchange of goods between nations. These barriers include [tariffs](https://www.investopedia.com/terms/t/tariff.asp), such as duties and surcharges, and nontariff barriers, such as licensing rules and [quotas](https://www.investopedia.com/terms/q/quota.asp). Economists often view the easing or eradication of these restrictions as steps to promote free trade.** **Regional integration is the process by which two or more nation-states agree to co-operate and work closely together to achieve peace, stability and wealth. Usually integration involves one or more written agreements that describe the areas of cooperation in detail, as well as some coordinating bodies representing the countries involved.** **Lesson 2: Market Integration** a. **International Financial Institutions** b. **Attributes of Global Corporation** **Intended Learning Outcomes** By the end of this topic/chapter, you must be able to: 1. Explain the role of international financial institutions 2. Describe the global market integration 3. Identify the characteristics of global corporation **Lesson 2: Market Integration** **Market integration in a term that is used to identify a phenomenon in which markets of goods and services that are somehow related to one another being to experience similar patterns of increase or decrease in terms of the prices of those products. The term can also refer to a situation in which the prices of related goods and services sold in a defined geographical location also begin to move in some sort of similar pattern to one another. (Tatum, 2020 ) At times, the integration may be intentional, with a government implementing certain strategies as a way to control the direction of the economy. At other times, the integrating of the markets may be due to factor such as shifts in supply and demand that have a spillover effect on several markets.** **EFFECT of Integration on Market Development** **1. Market integration provides opportunity to expand market coverage by selling** **2. Market integration help to reduce market failure** **3. Difference in the prices in integrated market should be equal if they are well** **A. International Financial Institutions** **In the International Financial Institutions, with the Bretton Woods Agreement that currencies were pegged to the price of gold and the US dollar was seen as a reserve currency which linked to gold standard. Bretton Woods had its most powerful effects on global trade, the global monetary order, and global investment (Peet, 2003 ).** **According to the study of** **Mofatt, 2020 under the Bretton Woods System the central banks of countries other than the United States were given the task of maintaining fixed exchange rates between their currencies and dollar which they did this by intervening in foreign exchange markets** - **In terms of global trade , a key was the idea of the " unconditional most - favored nation " which " required governments to offer the same trade concessions \[reductions in trade barriers, non- discrimination against a nation's products\] to all" (Frieden 2006 : 288). Restrictions on international trade were reduced over the years through various meetings (" rounds" ) under the auspices of GATT (General Agreement on Tariffs and Trade) and later the WTO.** - **In terms of the monetary order, it was the IMF that took center stage. The goal was to provide security, as well as flexibility, to the monetary order. What emerged between 1958 and 1971 was a system in which the US could not change the value of its dollar, while all other countries could, but as infrequently as possible. This made exchange rates stable enough to encourage international trade and investment which otherwise would have been discouraged by dramatic fluctuations in rates.** - **In terms of global investment , a key role was envisioned for the World Bank, but massive US aid through the Marshall Plan, and rapid European post - war recovery, made its work in that period of much less significance than had been anticipated. A key development in terms of investment involved MNCs, especially American based firms in fields like automobiles and computers, constructing their own plants and/or investing in indigenous companies in other countries.** **In many countries specially the welfare of the state global openness encourage by Bretton Woods contributed to the emergence or expansion of social welfare program. Welfare states sought to deal with various problems -- recession, layoffs, reductions in wages, and bankruptcies of uncompetitive firms. In the process, it gave a nation and its entrepreneurs the cover they needed to be actively involved in the global marketplace.** **Hence, to eliminate restrictions on the use of currency for international trade, the member states decided to come up with an agreement known as the General Agreement on Tariffs and Trade (GATT). GATT focused on trade in goods, the WTO also took on responsibility for the increasingly important trade in services. While GATT was simply a forum for the meeting of representatives of countries, the WTO is an independent organization.** **Trade-Related Aspects of Intellectual Property Rights (TRIPS) (Correa 2000 ) was negotiated through the WTO, which involves intangible ideas, knowledge, and expressions that require their use to be approved by their owner. Involved here is a wide range of intellectual property, such as movies, books, music recordings, and computer software, which exists, or whose value lies, largely in the realm of ideas.** **Trade- Related Investment Measures (TRIMs) " are a range of operating or performance measures that host- country governments impose on foreign firms to keep them from having a distorting effect on trade in goods and services" (Grimwade 2007 : 1178).** **World Trade Organization (WTO)** **The WTO is a multilateral organization headquartered in Geneva, Switzerland, with, as of 2008, 152 member nations (Krueger 2000; Trachtman 2007: 1308-- 1 5). Its focus on trade places it at the heart of economic globalization and has made it a magnet for those opposed either to the broader process of trade liberalization and promotion or to some specific aspect of WTO operations.** **While GATT focused on tariff reduction, the WTO has come to focus more on non- tariff- related barriers to trade.** **International Monetary Fund (IMF)** **The goal of the IMF is macroeconomic stability for both member nations and, more generally, the global economy (Cardim de Carvalho 2007: 658-- 6 3)** **World Bank** **The World Bank (officially the International Bank for Reconstruction and Development \[IBRD\]), a specialized agency of the UN, is the most important element of the World Bank Group (WBG) (Gilbert and Vines 2000 ; Bradlow 2007:1262 -- 7). The IBRD was established in 1944 at Bretton Woods and began operations in 1946. Membership is open to all member states of the IMF and as of this writing it includes 184 nations. It provides funds to government- sponsored or - guaranteed programs in so - called Part II countries (member states that are middle-income or creditworthy poorer nations).** **In the world of finance and investing, a global corporation is one that has significant investments and facilities in multiple countries and lacks a dominant headquarters. Global Corporations are governed by the laws of the country where they are incorporated. A global business connects its talent, resources and opportunities across political boundaries. Because a global corporation is more invested in its overseas locations, it can be more sensitive to local opportunities and also more vulnerable to threats.** **Global companies or MNCs operate on a global scale which means they have huge assets in almost all countries in which they operate. Their turnovers can also be incomprehensibly large. Also, these corporations** have unity of control. The management of the offices in other countries is controlled by one head office located in the home country. So while they have many branches in many countries, the main control will remain with the head office in its country of origin. Multinational corporations keep growing even as they operate in other countries, they strive to grow their economic size by constantly upgrading and by conducting mergers and acquisitions. And in order to achieve substantial growth, they have at its disposal huge amounts of wealth and capital-intensive technology. This allows them to use the best technology available for production and marketing to boost their products and their company. Furthermore, these companies employ only the best managers, those who are capable of handling large amounts of funds, using advanced technology, managing workers, and running a huge business entity. One of the most effective survival strategies of global corporations is spending a huge amount of money on marketing, advertising, and promotional activities. They target an international audience, so effective marketing becomes necessary. **Lesson 3: Global Interstate System** a. **Effects of Globalization on Government** b. **Institutions Governing International Relations** c. **Internationalism vs. Globalism** **Intended Learning Outcomes** By the end of this topic/chapter, you must be able to: 1. Explain the effects of globalization on governments 2. Identify the institutions that governs international relation 3. Describe the nation-state  **Lesson 3: Global Interstate System** **The origin of the modern nation - state is traced to the Treaty of Westphalia which led to the notion that nation - states are autonomous. Later developments led to the fusion of the cultural concept of a nation and the structure of the state; to the idea of the nation - state. With globalization, the nation - state faces innumerable challenges, leading to a significant loss of control over economic flows and transnational organizations. A debate has emerged over whether the " nation - state is dead. " Although the role of the nation - state has declined, it is still an important political structure.** **However, in the global age, the " porosity " of the nation - state, the increasing global flows through it, should be a focal concern. Benedict Anderson ' s " imagined community " is an important idea in thinking about the nation - state. As a result of the development of " print capitalism, " it came to be conceived of as being actively constructed, socially and politically, by people who identify with the community that is represented by the nation - state. This concept is extended further by examining how the nation - state transcends its geographic boundaries in the face of rapidly developing technology and increasing immigration flows. Emphasis is placed on the " re - imagining " of the nation - state in the light of such global flows.** **ATTRIBUTES of Global System** - **countries or states are independent and govern themselves;** - **these countries interact with each other through diplomacy;** - **international organizations facilitate these interactions (i.e. UN);** - **international organizations also take on lives of their own.** **Nation-States**  -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- **Nation, according to Benedict Anderson, is an "imagined community" and does not go beyond a given "official boundary". It is inherently limited and sovereign. It has boundaries, meaning not anyone can be a Filipino. - this refers to large group of people who share common characteristics such as language, traditions, and ethnicity.** **State refers to a country and its government where a community of persons more or less numerous occupying a definite territory completely free of external control and possessing an organized government to which the great body of inhabitants render habitual obedience.** -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------------------------------- **Nation-state--relatively modern phenomenon in the human history whereby it composed of** **two non-interchangeable terms: nation and state.** ------------------------------------------------------------------------------------------------------------------------------------------------- **Moreover, Interstate system is system of competing and allying states. Wherein, Treaty of Westphalia is a set of agreements signed in 1648 to end the Thirty Years' War between the major continental powers of Europe. It was designed to avert wars in the future by recognizing that the treaty signers exercise complete control over their domestic affairs and swear not to meddle in each other's affairs and provide stability for the nations of Europe.**  **PRINCIPLES of Interstate system:** **Nationalism --a doctrine and/or a political movement that seeks to make the nation the basis of a political structure especially a state. It is a sense of national consciousness that generally exalts one's own nation above others, and focuses on the promotion of interests.** **Internationalism- desire for greater cooperation and unity among states and people. In a more comprehensive definition, it is a political principle that places the interests of the entire world above those of individual nations and argues for cooperation among nations for common good. This can be divided into two broad categories: liberal internationalism and socialist internationalism.** A. **Effects of Globalization on Government** **Political Globalization** **Nation-states, the primary actors in this system, engage in diplomatic relations partly in the context of regional and global intergovernmental organizations (IGOs). Nation-states and IGOs, consult with and are lobbied by transnational corporations and non-governmental organizations (NGOs). NGOs in particular have distinct interactions with IGOs such as the United Nations, where they both play both an advisory role and take on activities such as relief, environmental protection, and protection of human rights.** **Nation-States and Intergovernmental Organizations** **Nation-states engage in international relations to establish trade, maintain boundaries, enforce rules, settle disputes, manage migration, etc. Most of these tasks were historically accomplished through negotiations among representatives of two or more states. During the last two centuries, however, nation-states have formed large intergovernmental organizations (IGOs) that are now responsible for many of these tasks. To maintain the sovereignty of nation-states, IGOs operate on principles inter-governmentalism, requiring unanimity among their members before agreements can be finalized. Some IGOs do however incorporate elements of supranationalism, in which majority rule may force member-states to implement IGO decisions or leave the organization. IGOs may be regional (e.g. the EU) or global (e.g. the WTO). As the number of IGOs has grown and their membership has expanded to include many new nation-states, the structure and organizational characteristics of nation-states have become more similar. This growing isomorphism implies that a normative process, affecting new nation-states, is occurring on a global scale.** **The End of the Nation State** **Arguably the power of the nation-state is waning. While still the major actors in international relations and sovereign within their own territories, countries are increasingly divesting themselves of responsibility for their citizens' welfare. Transnational corporations are taking on former state responsibilities through privatization and corporatization, profiting from providing public goods like water, health care, agricultural products, and education. At the same time, the dominant corporations in the global economy are using their wealth to gain power by influencing political and social institutions. NGOs, in both the role of international monitors and providers of relief services, have likewise taken over former state responsibilities, and some claim that IGOs aspire to become supranational regional or global governments with authority over states in federalist political system.** B. **Institutions Governing International Relations** International Institutions form a vital part of contemporary international relations. They are the central focus of policy making efforts around the world these are organizations with international membership, scope or presence. As mentioned in the other chapter we have the international non-governmental organization (INGO) and intergovernmental organizations(IGO) C. **Internationalism vs. Globalism**  The decisions of other nations to cooperate with one another in political , economic and cultural aspects for the promotion of the common good and welfare of the people known as the principle of Internationalism whereas Globalism is an ideology based on the belief that people , goods and information ought to be able to cross national borders unfettered. It is the attitude of putting the interests of the entire world above the interest of individual nations. **Lesson 4. Contemporary Global Governance** a. **Roles and Functions of the United Nation** b. **Challenges of Global Governance in the 21^st^ Century** **Intended Learning Outcomes** By the end of this topic/chapter, you must be able to: 1. Identify the roles 2. Identify the Challenges of global governance 3. Explain the effect of global governance to nation state **Lesson 4. Contemporary Global Governance**  **Governance** \-- defined as establishment of policies and continuous monitoring of their implementation by members of the governing body. **Global Governance** --collection of governance related activities , rules and mechanism, formal and informal, existing at a variety of levels in the world todays (Kams and Mingst) Global Governance is necessary because humanity increasingly faces both problems and opportunities that are global in scale. Presently, transnational problems such as violence and pandemics routinely reach across borders affecting us all. An effective global governance will allow us to end armed conflict which deal with new and emerging problems such as technological risks and automation, and to achieve levels of prosperity and progress( Bailey,2018) A. **Roles and Functions of the United Nations** United Nations is an intergovernmental organization that promotes international cooperation and creates and maintains international order. It replaces the ineffective League of Nations and was established after World War II on October 24, 1945 to prevent another global conflict. In this context, the United Nations emerges as an actor with distinct advantages, including the equal representation of its 192 Member States under the UN Charter. Even so, the global landscape requires further improvement in the General Assembly in four key areas. The United Nations is an international organization of countries. It was **created** for many reasons: - There should be **peace** and **security** in the world after the [Second World War](https://www.english-online.at/history/world-war-2/world-war-2-introduction.htm) - Countries should be friendly to each other - Countries should help each other **solve** problems - **Human rights** should be respected everywhere in the world. The main organs of the UN are the General Assembly, the Security Council, the Economic and Social Council, the Trusteeship Council, the International Court of Justice, and the UN Secretariat. All were [established in 1945](https://www.un.org/en/sections/un-charter/chapter-iii/index.html) when the UN was founded.  **ACHIEVEMENTS of The United Nations** - The UN has helped many countries become democratic and peaceful states. - The UN plays an important role in protecting our environment. The Earth Summit in [Rio de Janeiro](https://www.english-online.at/geography/rio-de-janeiro/rio-de-janeiro.htm) in 1992 was a big [conference about climate control](https://www.english-online.at/environment/copenhagen-climate-summit/copenhagen-climate-summit-and-global-warming.htm) other problems of our environment. - The International Atomic Energy Agency is a UN organization that controls the nuclear weapons of countries and sees to it that they don't build an atomic bomb. - Since 1950, the UN has given help to over 50 million [refugees](https://www.english-online.at/current_affairs/refugees/refugees.htm). These people had to leave their countries because of war, hunger or diseases. - Africa is the poorest continent in our world. The UN has given African countries money and other kinds of help so that they can feed people and give them work to do. - It helps give **[developing countries](https://www.english-online.at/geography/developing-countries/characteristics-of-developing-countries.htm)** safe and clean water. - It fights drug abuse and improves the lives of children who live in poverty. - It helps people learn how to read and write. - It helps farmers in poor countries where it is too hot or too dry. B. **Challenges of Global Governance in the 21^st^ Century** Weis (2015) identified five global governance gaps knowledge, normative, policy, institutional and compliance. The UN's relationship to these gaps is explored through case studies of some of the most problems of this time including terrorism, nuclear proliferation, humanitarian crises, development aid, climate change , human rights and other borderless diseases (Flu virus). Since knowledge is a valuable core asset which is both intangible and concrete, a general and specific source. It is a knowledge that makes cooperation among member states. System organizations ahould not focus on explicit and quantifiable knowledge only. Other challenge is the normative role of the UN which has been fundamental since the creation of the organization. Member-states are committed to review and reform their norms and standards. There should be a balance of norm setting and norm implementation.. Once norm is being identified norn could be set to address issues. Thus, Global governance must be challenge to comply the gaps to implement policies effectively or enforce penalties to those who violated it. Such violation could be a great threat to one state to anothers which will pose a danger to the peace and security. Berucci 2001, To ensure that globalization benefits are enjoyed equally by both developed and developing countries, good governance is a must