Global Governance Midterm PDF

GLOBAL GOVERNANCE What is Global Governance? - Is a movement towards political cooperation among transnational actors, aimed at negotiating responses to problems that affect more than one state or region. - It refers to the rule making efforts to sustain cooperation in order to ad...

GLOBAL GOVERNANCE What is Global Governance? - Is a movement towards political cooperation among transnational actors, aimed at negotiating responses to problems that affect more than one state or region. - It refers to the rule making efforts to sustain cooperation in order to address global problems or concerns. - As a subject field entrails an interdisciplinary examination of power and authority in the global arena and examines the variety of actors, institutions, ideas, rules, and processes that contribute to the management of global society - Exploring their origins their evolving roles, as well as their political, economic, social, environmental, and ethical consequences. - In addition to considering international organizations and inter-state interactions, global governance gives critical focus to various non- state actors, formal and informal networks and broader transnational, supranational, and subnational realities of contemporary that increasingly contribute to the establishment and functioning of global rules, norms and institutions. Global Governance - Virtually every important aspect of the contemporary world is being managed by certain **[governmental institutions.]** The demand for global governance increases as states, communities, and individuals are being exposed to issues and challenges **[they alone cannot address.]** - At the turn of the 20th century, the ascendancy of the state as the primary factor in world affairs is increasingly challenged by the presence of **[non-state actors]** like *[Intergovernmental Organizations (IGO's) and Nongovernmental Organizations (NGO's).]* Intergovernmental Organizations - Are made up of states established for single and multiple objectives - They were powers in making crucial decisions and coordinating actions in important policy areas like peace and security, trade, finance and development through **[global collective action.]** - Intergovernmental organizations, such as the **[United Nations]**, play important roles in global governance. They develop habits of **[global cooperation]** among states through regular interactions. Along with states, IGO's spearhead the creation and maintenance of principles, norms and rules based on **[collective concerns.]** Non-Governmental Organizations - They are generally private, voluntary organizations whose members are either individuals or groups gathered for a common purpose. They act as advocates for specific policies and offer alternative forum for political participation. The mobilize the public in the promotion of advocacies like health, education, etc. PERSPECTIVES ON GLOBAL GOVERNANCE - *[Neo-liberal institutionalists]* see institutions as the mediators and means to achieve cooperation among actors in the system. Regimes increase transparency of states. They provide confidence building measures to avoid misperceptions of states\' individual intention. They reduce *[Transaction costs]*- the costs of making and enforcing agreements. - *[Shadow of Future]* - which means that they provide states idea of [Sunk Costs] for deviating from them commitments and compliance. Lastly, they provide [enforcement mechanisms] and norms of reciprocity. - From a liberalist standpoint, what would largely explain the relative peace after World War II up to the contemporary time is regime governance. - Collective goods, such as a liberal trade and financial system, through mechanisms that dissuade [free-riding] and raise or internalize the costs of [defection]. The United Nations - Founded in 1945, the UN was the result of initiatives taken by governments of the states that had led the war against Germany and Japan - By 2018, there are 193 sovereign state members of the UN - When joining, member states agreed to accept the obligations of the [UN Charter], an international treaty that set out the basic principles of international relations: [sovereign equality of states]. - Only international problems are within UN jurisdiction, mostly related to [peace and security] - The UN is the only organization with the legitimacy that derives from universal membership, and a mandate that encompasses security, economic and social development, the protection of human rights, and the protection of the environment. The Security Council - This body was given the main responsibility for maintaining international peace and security - Its decisions are binding, and must only be passed by a majority of 9 out of 15 members. - When the security council considers a threat to international peace, it explores ways to settle the dispute peacefully. - It may suggest principles for a settlement or may suggest a mediation. - In the event of fighting, it tries to secure a ceasefire. General Assembly - All member states are represented in the General Assembly which meets to consider the world's most pressing problems. - Its decisions only have the status of recommendations, rather than binding decisions. - Its recommendations are important indications of global opinion regarding various issues, affecting not just states but communities as well as individuals. Secretariat - It carries out the substantive and administrative work of the United Nations. - It is led by the secretary-general, who provides over-all administrative guidance. - It is empowered to become involved in a large range of areas involving peace, including economic, social and humanitarian problems Economic and Social Council - It is intended to coordinate the economic and social work of the UN. - It consults with NGO's, thereby maintaining a vital link between the UN and civil society. GLOBAL SECURITY - Global security refers to the combination of measures taken by states and international organizations, such as the United Nations, European Union, and others, to ensure mutual survival and safety. Concept of Security Interstate Security - Intrastate is an existing or occurring within the boundaries of a state. - ex: civil war and ethnic conflict. - Before and during [cold war period,] the primary concern was how states could protect themselves from the threats passed from other states. - This state-centered view is not surprising considering the frequency of [interstate conflicts.] Human Security - Human Security is a concept that deals with the protection of an individual\'s personal safety and freedom from direct and indirect threats of violence. - These threats include environmental destruction, overpopulation, spread of infectious diseases, food supply, energy crisis, physical/mental harassment, racism, and others that endanger the well-being of our daily lives. - It is an emerging paradigm for understanding global vulnerabilities whose proponents challenge the traditional notion of national security by arguing that the proper referent for security should be at the human rather than national level.  Realist and Liberal Perspective 2 underlying principal causes which constitutes to the difficulty of attaining intrastate security 1\. The system lacks central authority that can regulate the conduct of states 2\. There is no one protect states from one another. - *[Anarchy]* -- There are no one to protect the states from one another. - *[Security dilemma]* --The only way for states to survive is to develop their own capability States are primarily concerned with their own interest and as rational actors, they make calculations and act only when the benefits of an action outweigh its cost. To some scholars, the level of security depends on the balance of power. How power is evenly or unevenly distributed may affect peace and security. A multipolar structure is seen unstable since many states are capable enough to challenge each other\'s position - *[Multipolarity]*- refers to the idea that power is not dominated by one country but distributed among multiple countries. *[Multipolar Structure ]* - is a [distribution of power] in which more than two nation-states have nearly [equal amounts] of military, cultural and economic influence Bipolar structure is seem relatively stable because strategic calculations is easier. - *[Bipolarity]*- a distribution of power in which two states have the majority of economic, military, and cultural influence internationally or regionally. - *[Unipolarity]* in international politics is a distribution of power in which one state exercises most of the cultural, economic, and military influence. - Second, it is argued that democratic states are more peaceful than autocracies. - Third, international institutions are also considered to have positive impact on security Symmetric and Asymmetric Security - *[Asymmetric]* (or asymmetric engagement) is war between belligerents whose relative military power differs significantly, or whose strategy or tactics differ significantly. - *[Symmetric]* refers to where two powers have comparable military power and resources and rely on tactics that are similar overall, differing only in details and execution. - The enormous amount of attention that the threat of [terrorism] receives since the 9/11 attacks an unprecedented in modern history. - *[Non-conventional security]* threats such as environmental devastation, climate change, displacement, and disaster relief are now considered part of national security issues. - Illicit trade is [a transitional organized crime]. It represents another are difficult security challenge. Many commodities are being traded in the [black markets] today, including people and human organs, endangered species, drugs, weapons, counterfeit goods, and laundered money. Global Economy Global Economy - Economic globalization is a prominent feature of the contemporary world. - It involves integration of economies around the world, particularly through free trade and financial flows. - Economic interconnectedness may not be entirely new, but the framework of the global economy can be said to have its roots in the planning for post-war economic order just before the end of World War II. - The institutions that were established have since been instrumental in the integration of markets. While these institutions indeed facilitated opening of markets, the process has not always been smooth. - The global economy was successfully revived after World war II, but it experienced a downturninthe1970's.It affected both the major economies and developing nations. Later on the global economy gained momentum with the end of Cold war. - Economic globalization focuses on the developments since [BRETTON WOODS CONFERENCE.] WHAT IS BRETTON WOODS CONFERENCE? - Formally known as the United Nations Monetary and Financial Conference, was the gathering of 730 delegates from all 44 allied nations at the Mount Washington, Hotel situated in Bretton Woods, New Hampshire, United States, July 1-22, 1944. - During world war II to make financial arrangements for the post war world after the expected defeat of Germany and Japan. - The conference was attended by experts noncommitally representing44 states or governments including the Soviet Union. It drew up a project for the International Bank for Reconstruction and Development(IBRD) to make long -- term capital - Available to states urgently needing such foreign aid and a project for the International Monetary Fund (IMF) to finance short term imbalances in international payments in order to estabilize exchange rates. - Although the conference recognized that exchange control and discriminatory tariffs would probably be necessary for some time after the war, it prescribed hat such measures should be ended as soon as possible. - After governmental ratifications the IBRD was constitutedlatein1945 and the IMF in1946, to become operative, respectively, inthe two following years. PLANNING FOR THE POST --WARGLOBALECONOMY - During the last phase at the Second World War delegates from different states assembled in the United States for the Bretton Woods Conference. - The objective was to set up a stable - A. *[Monetary System]* - B. *[Trade System]*-- that will help prevent another great depression, promote world trade and support post war economic rehabilitation institutions. The negotiations led to the creation of three multilateral institutions. - First, the International Monetary Fund (IMF)was established to supervise the fixed exchange rate system and help countries with their balance of payment problems. - Second, the International Bank for Reconstruction and Development (IBRD, or the World Bank). - Was created to assist in the recovery efforts and promotion of investments. - Third, the General Agreement on Tariffs and Trade (GATT), which served initially as an interim agreement until a trade organization would be put in place, became a forum for trade negotiations among states. - [CONTAINMENT] -- means that the US with its allies sought to encircle and isolate the adherents of communism from international affairs. - [MARSHALL PLAN] -- extended huge financial assistance to Europe, and supported the Bretton Woods system The Primary Dilemma Facing States before the Bretton Wood System was between: - the desire for domestic autonomy in economic policies. - the desire stability of the international monetary system - Beggar-thy-neighbor policies or engaging in - Competitive currency devaluations Two primary goals the dilemma between the domestic autonomy and international stability that the Bretton Woods system sought to address. - First, a system in which governments would have a considerable way to pursue economic objective. - Second, a monetary order that would be based on fixed exchange rate to prevent currency manipulation. How did the Bretton Woods System Work? - There are requirements for a stable international monetary system. - First, a system should provide liquidity to finance international transactions - *[LIQUIDITY]* -- refers to the amount of assets such as, money that can be available to finance trade. - Second, it should specify adjustment mechanisms or the methods to resolve balance of payments between balance of payment disequilibria. - *[Balance of payment]* -- refers to a payment between a country and its trading partners. - Third, the system should provide CONFIDENCE among states. - If a state is suffering temporary balance of payment disequilibria the IMF would provide a loan to that state. - But if a state is suffering fundamental balance of payment problems, the system would permit that state to change its exchange rate. It refers to the system as "EMBEDDED LIBERALISM" (John Gerard Ruggie) US AND GLOBAL ECONOMY IN DECLINE - Starting the 1960\'s the US economy slowed down, the foreign and domestic policies pursued by the US administration had taken their toll on the economy. - The escalating war in Vietnam - The heavy government spending on public education - Urban development had weakened US fiscal position. - As *[INFLATION]* - hit the economy that competitiveness of US goods and services in the global economy declined. The confidence of US dollar had likewise fallen. What is Inflation? - *[Inflation]* - is a quantitative measure of the rate at which the average price level of a basket of selected goods and services in an economy increases over a period of time. - It indicates a decrease in the purchasing power of a nation currency. - Increase in prices across in many goods and services in an economy over a sustained period of time. - Around this time other states were fast catching up. In *[Europe member]*- states of the European Economic Community (EEC) had greatly benefited from the intensification of regional economic integration. - This resulted in the less reliance on the US not only on the aspect of economic but also of security. In Asia the success of developmental states in Japan, South Korea and Taiwan in promoting export-oriented industrialization posed a serious challenge for US trade position - In the 1970\'s the global economy also slowed down. - The primary cause was the Oil Crisis in 1973. - When the Arab member states of the organization of the Petroleum Exporting Countries (OPEC) imposed an embargo after US and its allies decided to supply arms to Israel during the Yom kippur war. - The oil crisis plunge the world economy into stagflation, a phenomenon in which lack of economic growth as accompanied by high prices. - In monetary system, this series of events led the US to announce in 1971 that it will suspend the convertibility of dollar into gold. - The Bretton Woods system broke down and the role of the IMF collapsed. Era of Structural Adjustment Program - In the 1960\'s and 1970\'s, the US and European policies facilitated growth indirect foreign investments and global capital markets. Financial flow found their way to government in developing countries that were offered loans. The Philippines was among these countries of destinations. - However, in 1979, the US Federal Reserve raised the interest rates, its purpose was to reduce inflation by contracting economic activity in the US. The effect of the contractionary policy was felt by the rest in the global economy. - The rise of US interest rates was awake-up call to both borrowers and creditors many of whom were US based banks who suddenly realized that many of the loans could not be repaid. - The IMF was called in to prevent the governments in developing countries from defaulting on their loans. There was apprehension that it would cause a global financial crisis. Some critics in the Philippines argued that the country could have issued a a moratorium on its debt servicing, to address more pressing issues of poverty and income redistribution, which it was constrained to do because of the tough conditions imposed by the IMF. - The IMF ensured that in debted countries undertook structural adjustment measures. - These measures include - Reducing government spending - Tax Reform - Trade Liberalization - Liberalization of inflows of foreign direct investment - Privatization and deregulation. - These neo - liberal policies, later to be labelled collectively as the WASHINGTON CONSENSUS, aimed to minimize the role of the state in the economy The Philippines and the 1980\'s Debt Crisis - As part of undertaking the structural adjustment programs, during the debt crisis, the Philippines shifted towards all-out trade, investment and finance liberalization policies together with cuts on public spending and privatization / deregulationof public services to arrest negative balance of payments. It also started unilateral tariff reduction programs together with lifting of import restrictions on key products as well as reduction or withdrawal of domestic support for agriculture End of Cold War - Aid Conditionality - to promote good governance among members. - East Asian Crisis (1997) -- started in Thailand and spread across East Asia, showed that IMF might have gone too far in imposing conditionality. - 2008 Global Recession and recently the Eurozone Crisis -- The measures required among European countries where the Eurozone crisis erupted include cutbacks on government spending and raising of taxes. Multinational Corporations - [Multinational Corporations (MNC\'s)] is a striking feature of contemporary economic globalization. Individuals consume goods and services produced by MNC\'s. - [MNC\'S] - Are organizations that own or control overseas companies or production or service facilities in one or more countries other than the home country. Other refer to the mas Transnational Corporations (TNC\'s) which connotes operations in more than one country. - Their proliferation can be attributed largely to the liberalization of trade and investments. According to Kenichi Ohmae (1990), they are "a natural response to a borderless world economy. - [Economies of Scale] - a situation where firms incur falling average cash with increase in the volume of production. With open markets, firms can produce and sell goods or services in multiple locations. - [Foreign Direct Investment (FDI)] --the entry into a business enterprise in one country by an entry based in another country, or through Portfolio Investment, which is a passive investment on securities (as stocks and bonds) in a host country. Reasons for Foreign Corporate Investments - Market - seeking - Resource - seeking - Strategic asset -- seeking - Efficiency -- seeking Perspectives on Economic Globalization - [Hegemonic Theory] - argues that the preponderance of power and the willingness of the US to act as a hegemon made possible the establishment of a liberal global economy (Gilpin and Gilpin 2001) Reasons for Foreign Corporate Investments - [Neo - Liberal Institutionalist Theory]- explains that international institutions such as, the IMF, World Bank, and the GATT, have an independent impact on the global economy. GLOBAL DIVIDE What is Global Divide? - It Is A Disparities In Income And Living Conditions Between The Advance Industrialized States And Developing States. What is Gross Domestic Product (GDP)? - This measure of income is used to measure of how countries are improving or deteriorating based on the development aspect. 10 COUNTRIES WITH HIGHEST GDP (NOMINAL) - Unites States - China - Japan - Germany - India - United Kingdom - France - Russia - Canada - Italy 10 COUNTRIES WITH HIGHEST GDP (PPP) - China - United States - India - Japan - Germany - Russia - Indonesia - Brazil - United Kingdom - France Income Inequality - A measure of how the wealth in the economy is Distributed among the population. Poverty - Is A State Or Condition In Which A Person Or Community Lacks The Financial resources and Essentials For A Minimum Standard Of Living. - Refers to income below the minimum level required for physical survival. - A condition characterized by severe deprivation of basic human needs, including food, safe drinking water, sanitation facilities, health, shelter, education and information. - In 2018, extreme poverty widely refers to making below the international poverty line of \$1.90/day - Basic needs are barely met but survival is not actually threatened. - People in moderate poverty generally have access to the basic necessities of life, but they do not have much if any disposable income beyond that. - In moderate poverty as less than \$2 or \$5 a day HUMAN DEVELOPMENT INDEX - The HDI was created to emphasize that people and their capabilities should be the ultimate criteria for assessing the development of a country, not economic growth alone. - The HDI can also be used to question national policy choices, asking how two countries with the same level of GNI per capita can end up with different human development outcomes. - The Human Development Index (HDI) is a summary measure of average achievement in key dimensions of human development: a long and healthy life, being knowledgeable and have a decent standard of living. MODERNIZATION THEORY - Proponents of this theory argue that society undergoes stages of growth and move from being a traditional society to a modern one. - Poverty is the primordial condition of humanity. - All societies were once poor; but to overcome it, societies must advance from *[traditionalism to modernization.]* DEPENDENCY THEORY - It argues that the root cause of poverty and underdevelopment is imperialism as well as the dependency of poor nation on rich nations. - It is a counter argument to modernization theory, which prescribes that developing countries must follow the path of the developed nations. "ENDO" - It is a form of contractualization which involves companies giving workers temporary employment that last them less than six months and then terminating their employment just short of being regularized in order to skirt on the fees which come with regularization. some examples of such benefits contractual workers don\'t get as compared to regularized workers are the benefits of having an employer and employee SSS, PHILHEALTH, and the PAG-IBIG housing fund contribution, unpaid leaves, and the 13th month pay, among others. NEO-LIBERAL THEORY - The intellectual basis for neo-liberal theory comes from neo-classical economics, which combines arguments supportive of free market with scientifically inclined school of economics. - On the international level, the imf and the world bank champion their own form of neo-classical economics through the ideals of structural adjustments. - It calls nations to reduce government spending and bureaucracy to encourage free markets, to export, and to encourage entrepreneurship, as well as to entice foreign investment and foreign technology. - For economists, the culprits are paternalistic politics that favour cronyism, corruption, and bloated bureaucracies. WORLD SYSTEM THEORY - The argument of dependency thinkers that the cause of underdevelopment and poverty is external intervention continues in world system theory, developed by Immanuel Wallerstein.