Contemporary World Exam Study Guide PDF 2024-25

CONTEMPORARY WORLD PRELIM EXAMINATION STUDY GUIDE First Semester AY 2024-25 I. GLOBALIZATION A. What is the Contemporary World? It is a complex state, characterized by rapid scientific and technolog...

CONTEMPORARY WORLD PRELIM EXAMINATION STUDY GUIDE First Semester AY 2024-25 I. GLOBALIZATION A. What is the Contemporary World? It is a complex state, characterized by rapid scientific and technological advancements, colorful transfer of culture, and thriving economies. The circumstances and ideas of the present age. B. What is Globalization? It is the increased interconnectedness and interdependence of people and countries through opening of international borders to increasingly fast flows of goods, services, finance, people and the ideas and the changes in institutions and policies of national and international levels that facilitates or promote such flows. (WHO) Globalization refers to the technological, political, economic, financial, and cultural exchanges between peoples and nations that have made and continue to make the world a more interconnected and interdependent place. In the business world, this includes increased trade and investment flows, currency exchange, and the rise of multinational corporations. Communication and transportation technologies are capable of linking people who are physically distant from one another, thereby facilitating the exchange of culture, knowledge, and ideas. This refers to the widening, deepening and speeding up of Global interconnectedness such that events and interactions in one place have a growing impact on people elsewhere. (Held, et al. 1999) “the shrinkage of distance on a large scale. It can be contrasted with localization, nationalization or regionalization.” (keohane and Nyw, 2000) Global Village – the whole world is considered as being closely connected by modern telecommunications and as being interdependent economically, socially and politically. The world is considered as a single community in which telecommunication/social media link the inhabitants together. Globalization – the speed up of movements and exchanges of human resources, goods and services, capital, technologies and cultural practices between countries in the world or expansion and intensification of economic, political and social relations and consciousness across the world. Internationalization – describes designing a product in a way that it may readily consumed across multiple countries. Westernization – is a process whereby societies come under or adopt western culture in areas such as industry, technology, politics, economics, lifestyle, law, norms, mores, customs and traditions. Four Types of Globalization 1. Economic Globalization refers to the interconnectedness of economies through trade and exchange of resources. 2. Political Globalization refers to the amount of political co-operation that exists between different countries. 3. Social Globalization refers to the sharing of ideas and information between and through different countries. 4.Education increasing mobility of students and teachers across the world, and the need for educators to be more inclusive THREE 3 Views in the analysis of Globalization 1. Hyperglobalist View 2. Sceptical View 3. Transformational View 1, HyperGlobalist Views Holds that Globalization may not be entirely new, but what is new is how it has denationalized human affairs. The Nation-State will be replaced by institutions of Global Governance, thus weakening the power of National Governments (i.e. UN, WTO, IMF-World Bank, ASEAN, etc.) Free trade (Liberalization) and economic integration will make the world borderless 2. Skeptical View Holds that National Governments are essential to the regulation of international economic activity and the continued Liberalization of the economy can only be made possible by the power of National Governments. Globalization is made possible through the acquiescence and support of National Governments (ASEAN, EU, UN) 3. Transformational View Holds that there is a long term and continuous process that is characterized by uncertainties, crisis, and contradictions which makes it impossible to predict. The direction of the Contemporary Globalization is either Integration or Fragmentation. This attempts to find a middle ground between the Hyperglobalist and Skeptical claims. Homogeneity Refers to the increasing sameness in the world as cultural inputs, economic factors and political orientations of societies expand to create common practices, same economies, and similar forms of government. (i.e. Americanization, “McWorld”, “one-size-fits all” of the IMF) Heterogeneity Heterogeneity pertains to the creation of various cultural practices, new economies, and political groups because of the interaction of elements from different societies in the world. Refers to the differences or hybrids or combinations of cultures that can produced through different transplanetary processes. More specific concept is “glocalization” coined by Roland robertsonin 1992. Causes of Globalization 1. Economic 6. Technological 2. Financial 7. Geographical 3. Cultural 8. Ecological 4. Political 9. Military* 5. Sociological 10. Educational* Symbols of Globalization 1. Solid. Solidity also refers to the barriers that prevent or make difficult the movement of things. Solid can either natural or man-made blocks. 2. Liquid. Liquids are not fixed. Liquidity, therefore refers to the increasing ease of movement of people, things, information, and place in the contemporary world.  3. Flows. Flows are movement of people, things, places, and information brought about by the growing “porosity” of global limitations. Characteristics & Indicators of Globalization 1. Liberalization 2. Social mobility regardless of reasons. 3. Free Trade. 4. Cultural Globalization. 5. Political Globalization. 6. Opportunity 7. Active process 8. Spread of ideas, knowledge, technology, culture, and religion. Six Core Claims of Globalization 1.Globalization is about Liberalization and Global Integration of Markets. 2.Globalization is inevitable and irreversible. 3.Nobody is in charge of Globalization. 4.Globalization benefits everyone. 5.Globalization furthers the spread of Democracy in the world. 6.Globalization requires war on terror. LIBERALIZATION The loosening of government control and eliminating trade barriers between countries to promote free trade of goods and services. Import quotas Embargoes Non-tariff barriers DEREGULATION Reduction of Government power in a particular industry, usually enacted to create more competition within the industry. Mining companies Refinery companies Bank company PRIVATIZATION Transfer of ownership, property, and business from the government to the private sector. Water Electricity Oil MERITS AND DEMERITS OF GLOBALIZATION 1. Multicultural and Multilingualism – free exchange of goods and services need swift communication, hence they need to learn as many as possible. 2. Free Trade – reduces cost on selling products worldwide provided huge profits for a number of big transnational corporations and resulted in cheaper prices of some consumer goods such as cellphones and computers. 3. Migration – citizens can freely visits and work in any countries and the Third world migrants can relatively can easily find jobs in and eventually migrate to more develop countries.  4. Global cooperation – globalization rules and mechanisms are created and governed by global entities such as the WTO – where almost countries are represented, encourage global cooperation, on many issues ranging from climate change and poverty eradication. DEMERITS OF GLOBALIZATION 1. Linguistic Hegemony of English – globalization compels other countries to use English language, even prioritizing it over their own national languages. 2. Cultural Homogenization – big corporations such as fast food chains dominates markets in many countries because of their enormous financial power and presence in almost every country. 3. Third World dependency on First World – more Third World countries still complain that the current set-up favors develop countries even more. 4. Global income and wealth inequality – as only the bigger corporations seems to benefits from stiff competition and unbridled free trade. 5. Tax injustice - under globalization countries compete for foreign investments and are forced to lower their corporate taxes. 6. Racism and anti migrant sentiment - First world working citizens complain about being left behind in their own countries hence partly the rise of racism and anti migrant. Issues of Contemporary World today 1. Migrations of refugees and others 2. Ethnic and religious conflicts 3. Impact of new technologies 4. Contrasts between developed and developing nations 5. Factors affecting environment and society 6. Social challenges 7. Relationship between economic and political freedom 8. Economic interdependence 9. International Terrorism Historical Foundation of Globalization Because of our basic human need to make our lives better that made globalization possible. (Nayan Chanda, 2007) Their long journey finally led them to all known continents today roughly after 50,000 years. Commerce or trade, religion or missionary work, politics, adventures and conquest or warfare are the “urges” of people toward a better life. (Nayan Chanda, 2007) The origins of globalization trace its history long before the European Age of Discovery (Silk Trade) and voyages to the New World. Large scale globalization began in 1820s (Industrial Revolution). Six Great Epochs of Globalization (Ritzer, 2015) 1. Globalization of Religion (4th to 7th centuries)* 2. European colonial conquests (late 15th century) 3. Intra-European Wars (late 18th to early 19th centuries) 4. Heyday of European imperialism (mid-19th century to 1918) 5. Post-World War II period 6. Post-Cold War period * Church Apostolic Mission started in the 3rd Century AD. The Bible was written. I. Pre-World War 1 (before 1914)  Industrial Revolution Period of scientific and technological changes that led to Global trade expansion with Great Britain, France and Germany as the leading nations (Imperialism) Imperialism – is a policy of extending the rule or authority of a nation over foreign countries or acquiring colonies and dependencies. Treaty of Westphalia (Germany) - recognized the principles of sovereignty (power of states to rule themselves without interference from other States) The Concert of Europe – the world’s first International Organization. It was organized in order for European states to prevent and resolve conflict. The development of international negotiations and diplomacy. During this time Colonialism shaped political Globalization as empire states were in search for resources and markets. II. The Inter-war Period (1919-1939) The inter-war period saw the important development in Global Governance. States adopted a new international financial system called the Gold exchange standards. It facilitated international trade and worked well until World War II. Trauma of World War II induced Governments to pursue Peace at whatever costs and this overwhelming desire of States for collective security and the prevention of future wars, finds fulfillment in the founding of the League of Nations – the forerunner of the United Nations. League of Nations The first world-wide intergovernmental organization whose principal mission was to maintain world peace. It was founded on January 10, 1920 by the Paris Peace Conference that ended the First World War. Founded by the U.S. President Woodrow Wilson. The League of Nations was an international organization, headquartered in Geneva, Switzerland, created after the First World War to provide a forum for resolving international disputes. III. Post-World War II and the Cold War (1945 – 1991) The Bretton Woods Conference in New Hampshire USA (1944) paved the way for Global institutions that would govern Global Finance and Trade up to the present. (GATT, IMF, WB, WTO) The United Nations (UN) was established in 1945 to pick up what the League of Nations failed to achieve “lasting Peace based on Justice.” The UN is also mandated to achieve economic and social development. Member States adopted both binding and non-binding conventions, treaties and declarations. GATT – General Agreement on Tariff and Trade. This period after World War II saw a trend to increasing Globalization. IV. Post-Cold War (1992 – present) The struggle between Capitalism and Marxist socialism led to the Cold War between its main proponents, the US for capitalism and Soviet Union for Marxist-Socialist. Cold War is non- confrontational low intensity warfare between superpowers characterized by intense propaganda, espionage, arms race and the use of proxies and allies to fight one’s war. This period saw the increased role of international financial institutions particularly in poor countries. Upsurge of interest for non-traditional security issues like environmental degradation, human rights violations, gender inequality, terrorism and drugs and civil wars.  Actors of Globalization 1. WORLD BANK (WB) – facilitate investment of capital for member countries. Fund large-scale and long term projects by providing loans for member countries. Remove tariffs for imports. 2. INTERNATIONAL MONETARY FUND (IMF) – Provide short-term emergency loans. Conduct monitoring global economy, lends to countries, and provides policy and technical advisory functions to member countries. 3. WORLD TRADE ORGANIZATION (WTO) – regulates international trades, ensure smooth flow of trade, and provides forum for negotiations for trade agreements. 4. ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT (OECD) – aim to stimulate economic progress and world trade by providing a platform to compare policy experiences and identify good practices in domestic and international economic policies and programs. 5. INTERNATIONAL LABOR ORGANIZATION (ILO) – deals with labor problems and international labor standards and social protection for workers. 6. FOOD AND AGRICULTURE ORGANIZATION (FAO) – leads international efforts to defeat hunger, eliminate food insecurity and malnutrition, and increase resilience of livelihoods and food. 7. WORLD HEALTH ORGANIZATION (WHO) – responsible for global researches on medicines and vaccines including the World Health Report and Survey. 8. UNITED NATIONS (UN) – is an international government organization (IGO) playing the vital role in the world’s affairs. It is founded to maintain peace and order to avoid war in the whole world. It is designed to make the enforcement of international law, security, human rights, economic development and social progress. 9. UNTED NATIONS EDUCATIONAL, SCIENTIFIC, AND CULTURAL ORGANIZATION (UNESCO) – promoting international collaboration through educational, scientific, and cultural reforms. The concept of xenocentrism is the preference for the products, style, culture, people, significant others, and food of others, rather than of one's own. II. GLOBAL INTERSTATE SYSTEM In this lesson, we will learn the; The decrease in the power of the state and that other actors are becoming actually powerful. Development of regional alliances and worldwide organizations of states. Multinational corporations and non-governmental organizations are significant organizations that “replaced” the strength of national autonomy and global politics. It will also elaborate the growing role of non-state actors. It also examines the impact globalization on the interstate system. What is a Global Interstate? It is an institutional arrangement of governance that addresses regional or globalized issues that go beyond the scope of a nation-state. Global interstate is also known as International Relations. THE INTERSTATE SYSTEM HAS BEEN ORGANIZED AROUND THE PRINCIPLES OF SOVEREIGNTY, TERRITORIALITY, AND NON-INTERFERENCE.(Treaty of Westphalia of 1648) The use of the term “interstate” is preferred over “international” to emphasize that what is being dealt with are states instead of nations. The idea of a 'system' requires the existence of units, among which interactions take place (Buzan 1993). In the interstate system, the units are the states, and their interactions include war, diplomacy, and cooperation. History of Interstate System At the macro level, authority resided in the Holy Roman empire. This made the state being focus on power. The current interstate system is a result of convergence of economic and political factors, wealth and coercion. These factors (money and army) enabled monarchs to wield powers enough to challenge the dominance of the Holy Roman Empire as well as other feudal lords (i.e. The Barbaric tribes) The contemporary interstate system can be traced back to the Treaty of Westphalia (which accepted the Principle of Non-Intervention)which ended the Thirty Years War in Europe. The continent before 1648 consisted of political units smaller than the states. (Feudal states)(Holy Roman Empire vs the combined forces of France and Sweden) The Concert of Europe From 1815 - 1914 the concert of Europe established a set of principles, rules and practices that helped to maintain balance between the major powers after the Napoleonic wars, and to spare Europe from another broad conflict. Their goal was primarily to prevent any figure like Napoleon who would incite popular uprisings and cause Europe instability. AS A RULE, EVERY STATE MUST RESPECT EACH OTHER’S SOVEREIGNTY AND NOT INTERVENE IN THE EACH DOMESTIC AFFAIRS. What is a State? A COMMUNITY OF PERSONS, MORE OR LESS UNITED, OCCUPYING A DEFINITE PORTION OF TERRITORY, HAVING A GOVERNMENT OF ITS OWN IN WHICH A GREAT NUMBER OF INHABITANTS RENDER OBEDIENCE AND INDEPENDENT OF EXTERNAL CONTROL Elements of the State 1. TERRITORY- DEFINITE PORTION OF THE EARTH WHERE THE PEOPLE LIVE. 2. PEOPLE- MASS OF INHABITANTS WHO LIVE WITHIN THE TERRITORY OF STATE 3. GOVERNMENT- AGENCIES/OFFICES WHICH CARRIES OUT THE WILL OF STATE, THAT IS TO MAINTAIN ORDER AND SECURITY IN THE STATE. 4. SOVEREIGNTY- SUPREME POWER OF THE STATE TO COMMAND OBEDIENCE FROM ITS PEOPLE AND TO BE FREE FROM OUTSIDE INTERFERENCE (INDEPENDENCE). Four Types of Sovereignty Internal Sovereignty - Refers to the power that a government has within its own territory and the ability to exercise control over its citizens. That includes the power to make decisions and enforce laws within its borders. External Sovereignty - Refers to the ability of a country to conduct its own foreign affairs and make decisions about its relationships with other countries. This include negotiating treaties, making alliances, and engaging in diplomacy. (i.e., the punishment of death penalty for the person caught in a particular country with no such kind of law.)  Political Sovereignty - Derived from Latin “supranus” which means supreme. Sovereignty denotes the supreme power of the state to extract obedience from the people who inhabit it. In democratic state it is vested in the body of citizens who have the right to vote. Politics derived from Greek “politika” which means affairs of the cities. It is the way that people living in groups make planned decisions or agreements. Legal Sovereignty - Refers to the highest legal power such a power generally well-defined, constitutionally speaking, and often involve a separation of making laws and enforcing laws (i.e. executive and the legislative branch of the government). THEORIES OF Global Interstate System 1. Realism - IN AN ANARCHIC INTERNATIONAL SYSTEM, WHEREIN THERE’S AN ABSENCE OF CENTRAL AUTHORITY, STATES MUST FEND FOR THEMSELVES AND MUST AMASS POWER TO PROTECT THEMSELVES FROM THE DEPRADATIONS OF OTHER STATES. THE STATE’S POWER MAY BE BASED ON THE FOLLOWING ELEMENTS: 1. MILITARY STRENGTH 2. STRONG ECONOMY 3. INTERNAL STABILITY 4. FOREIGN ALLIANCES 2. Liberalism - LIBERALS MAINTAIN THAT ECONOMIC INTERDEPENDENCE MINIMIZES CONFLICTS. AS RATIONAL ACTORS, IT IS NOT IN STATE’S BEST INTERESTS TO SACRIFICE THE GAINS OF ECONOMIC TIES BY ENGAGING IN COSTLY CONFLICTS. CONFLICTS AND WARS CAN ONLY RESULT IN MUTUALLY ASSURED ECONOMIC DESTRUCTION. LIBERALS BELIEVE THAT DEMOCRATIC STATES DO NOT FIGHT OTHER DEMOCRACIES. THEY RESPECT EACH OTHER. 3. Constructivism - Constructivists argue that both state interests and anarchy are socially constructed, that is they are created by the states themselves. Constructivists highlight the importance of norms. Norms - are ideas that have an effect on the behavior of agents. Norms may be regulative, prescriptive, or constitutive. 4. Marxism - ARGUE THAT THE WORLD IS DIVIDED ALONG ECONOMIC LINES, BETWEEN DEVELOPED AND UNDEVELOPING STATES. RICH/DEVELOPED STATES EXPLOIT POOR/DEVELOPING STATES RESULTING TO MASS POVERTY AND GIVING RISE TO ANTI-IMPERALIST MOVEMENTS. IMPERIALISM MAKES THE CONFLICT BETWEEN RICH AND POOR STATES UNAVOIDABLE AND CONTINUOUS. IT IS THE AIM OF POOR STATES TO FREE THEMSELVES FROM IMPERIALISM AND PURSUE DEVELOPMENT ON THEIR OWN PATH. The Role of Non-State Actors 1.INTERNATIONAL ORGANIZATIONS - PROMOTE PEACE, SECURITY AND COOPERATION (UN, EU, ASEAN, NATO) 2. NON-GOVERNMENT ORGANIZATIONS - ENGAGE IN VARIOUS ADVOCACIES LIKE ENVIRONMENT PROTECTION ,HUMAN RIGHTS (AMNESTY INT’L, GREENPEACE) 3. MULTINATIONAL CORPORATIONS MONOPOLY FIRMS THAT OPERATE IN MANY COUNTRIES. PROMOTE INTERDEPENDENCE BY EXPANDING TRADE AND FOREIGN INVESTMENT. OWING TO THEIR ENORMOUS CAPITAL, THEY HAVE THE TENDENCY TO INTERFERE AND INFLUENCE THE INTERNAL AFFAIRS OF HOST COUNTRIES. Institutions that Govern International Relation 1. International Monetary Fund (IMF) 2. World Trade Organization (WTO) 3. World Health Organization (WHO)  4. Organization for Economic Cooperation and Development (OECD) 5. International Labor Organization (ILO) 6. Food and Agriculture Organization of the United Nations (FAO) 7. United Nations Educational, Scientific, and Cultural Organization (UNESCO) What is Trade Agreement? When two or more nations agree on terms of trade between them. They determine the tariffs and duties that the countries impose on imports and exports. All trade agreement affect international trade. Three Types of Trade Agreement 1. Unilateral 2. Bilateral 3. Multilateral Unilateral Trade Agreement - It occurs when a country imposes trade restrictions and no other country counters. A country can also unilaterally loosen trade restrictions, but that rarely happened. Bilateral Trade Agreement - Agreement happened between two countries. Both countries agree to loosen trade restrictions to expand business opportunities between them. They lower tariffs and confer preferred trade status with each other. Multilateral Trade Agreement - It is the most difficult to negotiate. These are among three countries or more. The greater the number of participants, the more difficult the negotiations are. They are also more complex than bilateral agreement. Each country has its own needs and requests. The Modern World System 1. CORE – high income nations in the world economy. This is the manufacturing base of the planet where resources funnel in to become the technology and wealth enjoyed by the Western world today. They are the dominant capitalist countries that exploit peripheral countries for labor and raw materials. 2. SEMI-PERIPHERY – are the middle-income countries (i.e. India and Brazil). They are considered semi-periphery due to their closer ties to the economic core. Semi-peripheral countries share characteristics of both core and peripheral countries. 3. PERIPHERY – they are the low-income countries, whose natural resources or labor support the wealthier countries, first as colonies and now by working for multinational corporations under the neo-colonialism. They are dependent on core countries for capital and have underdeveloped industry. Political scientists commonly called this international system and this is the focal point of the field of international relations. What is an Import and Export mean? 1. Imports are goods and services produced in a foreign country and bought by domestic residents. That includes anything shipped into the country even if it’s by the foreign subsidiary of a domestic firm. 2. Export are goods and services that are made in a country and sold outside it’s border. That include anything shipped from a domestic company to its foreign affiliate. The Principle of Interstate System Country states are sovereign in governance and law, but they make economic and legislative compromises for mutual benefit with other sovereign jurisdiction. Purpose of Interstate System The balance of power in the interstate system prevents any single state from controlling the world economy, and from imposing a political monopoly over accumulation. Prepared by: Dominador E. Torres, Jr. LPT MAED For CWORLD Prelim Examination Sept. 13, 2024