Globalization - Lesson 1 and 2 PDF

Lesson 1: GLOBALIZATION Lesson 2: Global Interstate System Steger (2014) According to Manfred Steger Global Interstate System is an organized (2014), Globalization is “the expansion and institution that governs international...

Lesson 1: GLOBALIZATION Lesson 2: Global Interstate System Steger (2014) According to Manfred Steger Global Interstate System is an organized (2014), Globalization is “the expansion and institution that governs international intensification of social relations and relations for mutual benefits. consciousness across world-time and across According to Chase-Dunn (1981) that GIS is world-space”. an institutional arrangement of governance Albrow (1996) Globalization as the reality of that addresses regional or globalized issues omnipresence of globalization makes us see that go beyond the scope of a nation-state. ourselves as part of what we refer to as the State “global age”. A community of persons more or less Danug & Campanilla (2004) Globalization …. “as numerous, permanently residing in a definite the process through which an increasingly flow portion of territory, having a government of of ideas, people, goods and services, technology their own to which a great body of and capital leads to the integration of inhabitants render obedience to, and economics and societies at a speed enjoying freedom from external control. unprecedented in effect and outcomes” Mittelman (2006) He viewed that Globalization Origin of States is complex and multi-effect phenomenon. He Divine Right Theory – the state is of divine describes it in 3 ways namely: creation and the ruler is obtained by a god. Factors in production intensification Necessity or Force Theory – the state must Compression of time and space have been created through force, by some A material power in historical structure great warrior who imposed their will on the Various Analysts Globalization implies the people. opening of local and nationalistic Paternalistic Theory - the origin of states is perspectives to a broader outlook of an due to the enlargement of the family which interconnected and interdependent world remained under the authority of the father with free transfer of capital, goods, and services or the mother. across national frontiers. Social Contract Theory – the early states must have been formed by deliberate and Theories in view of Globalization voluntary compact among the people to form a society and organize government for their common good. This theory justifies the right of the people to revolt against their ruler. Elements of State Territory It includes not only the land over which the jurisdiction of the state extends. Territorial Domains: Development Paradigms of Globalization Terrestrial (Land) Fluvial (Inland Waters) Economic Globalization Maritime (Sea or Ocean Waters) measures long distance flow goods, capital, Aerial (Air and space above) and services as well as information that People accompany market exchanges. It pertains to the mass population permanently living within the state. Social and Cultural Globalization There is no requirement but it should measures the spread of ideas, information, be small enough to be well-governed images, and people. but large enough to be self-sufficient. Political Globalization This population does not refer to a nomadic people that move from one measures the diffusion of government place to another in an indefinite time. policies in terms of the number of embassies Government and consulates in a country, membership in international organizations, likewise It is the instrument that provides participation of a country in United Nations mechanisms in determining, peace missions and similar advocates. formulating, and implementing the policies of the state. It is the essential instrument or machinery of the state  that carries out its will, purposes and Designed to make the enforcement of objectives. international law, security, human rights, The government is the one exercising economic development, and social progress the three inherent power of the state. easier for countries around the world. Sovereignty This organization is the world’s largest The supreme power of the State to voluntary corporate responsibility initiative exact obedience to its laws upon the brings together companies, national and citizens. international agencies, trade unions, and The power of the State to command other labor organizations and various organs obedience, the power to which of civil society to support universal legally speaking, all interest are environmental protection, human rights, and practically subject and all will social principles. coordinate. 1. The UN General Assembly Effects of Globalization to Governments is the main decision-making and National and local policies are not only based representative assembly and is on local context but also international and responsible for upholding the global realities. principles of the UN through its Creation of International Agreements and policies and recommendations. efforts could fight borderless challenges and It is composed of all member states issues. and headed by a president elected by Create job opportunities from major global the member states. investors. 2. The UN Security Council Displaced individuals due to industry can authorize the deployment of UN expansion. member state’s militaries, can Inequality to incomes from a rural and urban mandate cease-fire during conflicts, area. and can enforce penalties on Globalism and Internationalism countries of they do not comply Both terms are commonly interchangeably within given mandates. and pertain to the increasing It is composed of five permanent interconnectivity of countries and people of members and 10 rotating members. the world through communications, 3. The International Court of Justice transport, and technology. (Roudometof, can settle, according to international 2005) law, legal disputes between States and give opinions, mostly advisory, on legal questions brought to it by UN organs and agencies. 4. The Economic and Social Council assists the UN General Assembly in promoting economic and social development, as well as cooperation of member states. Lesson 3: THE GLOBAL GOVERNANCE 5. The Secretariat headed by the Secretary-General, According to Weiss (2013), global provides studies, information, and governance is a set of questions that enable other dates when needed by other us to work out how the world is, was, and UN branches for their meetings. could be governed, and how changes in Gaps in Global Governance grand and not-so-grand patterns of governance occurred, are occurring, and The Jurisdictional Gap ought to occur. between the increasing need for “Global governance is the management of global governance in many areas global processes in the absence of any form such as health and the lack of an of global government.” authority with the power, or United Nations jurisdiction, to take action. United Nations is an important example of The Incentive Gap non-state actor, an international government between the need for international organization (IGO) playing a vital role in the cooperation and the motivation to world’s affairs. undertake it. The incentive gap is said to be closing as globalization  provides the increasing impetus for different countries. They also help facilitating countries to cooperate. trade and development discussions among The Participation Gap various states. which refers to the fact that International Monetary Fund (IMF) international cooperation remains World Bank primarily the affair of governments, Organization for Economic Cooperation leaving civil society groups on the and Development (OECD) fringes of policymaking. On the other hand, globalization of 2. Multinational and Transnational Companies communication is facilitating the Multinational and Transnational Companies development of global civil society (MNC’s) are the main carriers of economic movements.” globalization. MNCs are centralized planning and decision- Lesson 4: THE GLOBAL ECONOMY AND MARKET making for all its international companies. INTEGRATION While, TNCs are decentralized and each of their international companies may decide ECONOMIC GLOBALIZATION individual which is beneficial to its market. According to Sudgen & Wilson (2005), Economic Globalization is the expansion of 3. Central Banks national economies, the global market driven They are considered one of the most powerful by modern technologies and institutional set institutions in the world economy since they ups that promote faster and easier flow of can lead economic development, and some goods and capital. authors contend that central bank governors focus on increasing economic trade are more influential in their own national interrelations among countries (Steger, 2010; economy than some politicians (Shangquan, Al-Rodhan, et al., 2006; Shangquan, 2000) 2000: 280) Governed by neoliberal principles with the 4. Global Civil Society role of the marker as a central driver of Serves as a major driver of economic economic activities, with less government globalization. interventions (Martin, Schumann & Camiller, Global civil society seen as either composed of 1997). individuals or groups of individuals Economic Globalization entails global disadvantaged by the effects of the industries restructuring and readjustments globalization of the world economy, they where developed countries play a dominant protest and seek alternatives while on the role (Shangquan, 2000:3). other hand, global social movement constituting a basis for an alternative to a new Who are the Actors that Facilitate Economic world order (Gherghel, n.d.) Globalization? Part of the global civil society are Transnational Advocacy Networks (TAN), 1. International Economic Organizations networks which are "organized to promote The Group of 8 (G8) and G20 are advisory causes principled ideas, and norms, and they organizations that discuss current economic often involve individuals advocating policy and political problems and transfer the ideas changes that cannot be easily linked to a from the group's forum to national legislative rationalist understanding of their interests" regulations (Shangquan, 2000:280). (Keck & Sikking, 1998:8-9) Non-state actors include international economic organizations private sector led by Market Integration multinational companies, central banks, and a process by which economies are becoming civil society more interdependent and interconnected in These organizations promote regional terms of commodity flows including agreements and standards that facilitate better externalities and spillover of impacts (Genshel trade and exchange of knowledge, human & Jacktenfuchs, 2017) resources, and regional cooperation e.g. of market integration are establishment by Association of Southeast Asian Nations food retailers of wholesale facilities and the (ASEAN) establishment by a milk processor of another North American Free Trade Agreement plant. (NAFTA) These organizations are critical in developing TYPES OF MARKET INTEGRATION and pushing for neoliberal policies among HORIZONTAL INTEGRATION The Rise of Global Corporations Horizontal Integration is a competitive strategy History of Global Economy that can create economies of scale, increase The start of the modern global trade leading to market power over distributors and suppliers, 1914 was considered the first period of increase product differentiation, and help globalization (Bhagarva, 2006). businesses expand their market or enter new It is when trade, capital, and immigration flows markets. By merging two companies, they may grew tremendously and in large volume, but the be able to generate more revenue than they global institutional architecture to manage could have done independently. these were quite limited (ibid.). Horizontal integration can also provide access From the Second World War to the late 1990s, to new channels of distribution where a the modern international economic enabling company can create or acquire production units architecture was established (Freiden, 2012). for outputs that are both complementary and In addition, we see the expansion of MNCs competitive. across the globe, supported by enabling policies VERTICAL INTEGRATION and improved communications and transport Vertical Integration strategy, a company (Bhagarva, 2006) becomes involved in new portions of the Political changes like the fall of the Berlin Wall, value chain. This approach may be desirable if establishment of regional networks, and trade the suppliers or buyers of a company have agreements resulted to trade liberalization and gained too much power over the company and free flow of capital in the world (Neubauer, use their ability to earn more profit at the 2014) expense of the company. the euphoria on globalization and global free By acquiring the supplier or buyer, executives trade was put into question with the 1994/95 can reduce or eliminate the leverage the Mexico crisis, when Mexico's multi-billion supplier or buyer has over the company loan from IMF created a negative spillover effect on US, Europe, Portugal, and Spain BACKWARD VERTICAL INTEGRATION (Neubauer, 2014). backward strategy of vertical integration This was offset by the exponential rise of the involves a company moving back or upstream Asian economy and the advancement in along with the value chain and entering the digitalization and technology that ushered business of a supplier in a new wave of globalization (Neubauer, If executives are concerned that a supplier has 2014) too much power over their firms, some firms late 1990s until very recently, Bhavarga (2006) use this strategy. contends and characterizes the third wave of Ford Motor Company created subsidiaries in market integration. We see the advent of the the early days of the automotive business, modern Internet, the WTO establishment, and providing vital inputs to vehicles such as formal entry of China into the trading system rubber, glass, and metal. through its accession to international financial institutions (Frieden, 2012). FORWARD VERTICAL INTEGRATION Despite the world economy boom-where the involves a company moving further down the world enjoyed increased growth-the global value chain to enter the business of a purchaser. debt crisis, political and civil unrests even in vertical integration can also be useful to developed countries like the US resulted to neutralize influential buyer’s effects. Because market crash and started the war on terror that they buy thousands of cars, rental car agencies affected global diplomacy and economy (Buiter, can insist on low prices for the vehicles they buy 2011). from automakers. the world enters what the World Economic Forum argues as the "Fourth Industrial CONGLOMERATE INTEGRATION Revolution," Mueller (2010) predicted that is a fusion of companies involved in completely there will be slower economic growth, political unrelated business activities. destabilization, and diffusion of power. Some of There are two kinds of mergers of his recommendations to remedy these include conglomerates: pure and mixed. reforms in work, economic spending, improving Pure mergers of conglomerates involve solidarity, openness, and cooperation among companies with nothing in common; countries. While diverse mergers of conglomerates involve companies looking for product The role of Financial Institutions and Global extensions or market extensions Corporations International Financial Institutions growth – all while tackling climate change and International Financial Institutions (IFIs) are working to preserve our oceans and forests. institutions that provide support through local or grants and technical advices to promote a country’s economic and social development (Bhargava, 2006:393) The most significant contribution of the IFI was its analysis and ideas that dominated the aspects of development strategy and ideology. an international organization with 183 member countries that promotes international monetary cooperation and exchange stability to foster economic growth and high employment and to provide short-term financial assistance to countries to help ease balance of payments adjustments (IMF, 2019) SDGs 1: No Poverty International Monetary Fund Goal 1 calls for an end to poverty in all its an international organization with 183 member manifestations by 2030. It also aims to ensure countries that promotes international monetary social protection for the poor and vulnerable, cooperation and exchange stability to foster increase access to basic services and support economic growth and high employment and to people harmed by climate-related extreme events provide short-term financial assistance to and other economic, social and environmental countries to help ease balance of payments shocks and disasters. adjustments (IMF, 2019 SDGs 2: Zero Hunger World Bank Goal 2 aims to end hunger and all forms of plays a central role in overseeing economic malnutrition by 2030. It also commits to policy and reforming public institutions in universal access to safe, nutritious and sufficient developing countries and defining the global food at all times of the year. This will require macroeconomic agenda sustainable food production systems and Its fund both coming from the global capital resilient agricultural practices, equal access to markets and its member states land, technology and markets and international cooperation on investments in infrastructure and The Composition of the World Bank technology to boost agricultural productivity. 1. The International Bank for Reconstruction and1 Development (IBRD SDGs 3: Good Health and Well-being. 2. The International Development Association Goal 3 seeks to ensure health and well-being for (IDA) all, at every stage of life. The Goal addresses all 3. The International Finance Corporation (IFC) major health priorities, including reproductive, 4. The Multilateral Investment Guarantee maternal and child health; communicable, non- Agency (MIGA) communicable and environmental diseases; 5. The International Centre for Settlement of universal health coverage; and access for all to Investment Disputes (ICSID) safe, effective, quality and affordable medicines and vaccines. It also calls for more research and Lesson 5: Sustainable Development Goals development, increased health financing, and strengthened capacity of all countries in health The 2030 Agenda for Sustainable risk reduction and management. Development, adopted by all United Nations Member States in 2015, provides a shared blueprint SDGs 4: Quality Education for peace and prosperity for people and the planet, Despite progress, the world failed to meet the now and into the future. At its heart are the 17 Millennium Development Goal of achieving Sustainable Development Goals (SDGs), which are an universal primary education by 2015. In 2013, urgent call for action by all countries - developed and the latest year for which data are available, 59 developing - in a global partnership. They recognize million children of primary-school age were out that ending poverty and other deprivations must go of school. Estimates show that, among those 59 hand-in-hand with strategies that improve health million children, 1 in 5 of those children had and education, reduce inequality, and spur economic dropped out and recent trends suggest that 2 in 5  of out-of-school children will never set foot in a sectors and prompts the development of new classroom. The Sustainable Development Goals skills. clearly recognize that this gap must be closed, even as the international community more SDGs 10: Reduced Inequalities explicitly addresses the challenges of quality and Goal 10 calls for reducing inequalities in income equity. as well as those based on age, sex, disability, race, ethnicity, origin, religion or economic or other SDGs 5: Gender Equality status within a country. The Goal also addresses Gender equality and women’s empowerment inequalities among countries, including those have advanced in recent decades. Girls’ access to related to representation, migration and education has improved, the rate of child development assistance. marriage declined and progress was made in the area of sexual and reproductive health and SDGs 11: Sustainable Cities and Communities reproductive rights, including fewer maternal More than half the world’s population lives in deaths. Nevertheless, gender equality remains a cities. By 2030, it is projected that 6 out of 10 persistent challenge for countries worldwide and people will be urban dwellers. Despite numerous the lack of such equality is a major obstacle to planning challenges, well-managed cities and sustainable development. other human settlements can be incubators for innovation and ingenuity and key drivers of sustainable development. SDGs 6: Clean and Water Sanitation Water and sanitation are at the very core of SDGs 12: Responsible Consumption and sustainable development, critical to the survival Production of people and the planet. Goal 6 not only Economic growth and development require the addresses the issues relating to drinking water, production of goods and services that improve sanitation and hygiene, but also the quality and the quality of life. Sustainable growth and sustainability of water resources worldwide. development require minimizing the natural resources and toxic materials used, and the SDGs 7: Affordable and Clean Energy waste and pollutants generated, throughout the Energy is crucial for achieving almost all of the entire production and consumption process. Sustainable Development Goals, from its role in the eradication of poverty through SDGs 13: Climate Action advancements in health, education, water supply Climate change presents the single biggest threat and industrialization, to combating climate to development, and its widespread, change. unprecedented impacts disproportionately burden the poorest and most vulnerable. Urgent SDGs 8: Decent Work and Economic Growth action to combat climate change and minimize Sustained and inclusive economic growth is its disruptions is integral to the successful necessary for achieving sustainable implementation of the Sustainable Development development. The global annual growth rate of Goals. real GDP per capita increased by 1.3 per cent in 2014, a significant slowdown compared to 2010 SDGs 14: Life Below Water (2.8 per cent growth) and 2000 (3.0 per cent Oceans, along with coastal and marine growth). Developing regions grew far faster than resources, play an essential role in human well- developed regions, with average annual growth being and social and economic development rates in 2014 of 3.1 per cent and 1.4 per cent, worldwide. They are particularly crucial for respectively. people living in coastal communities, who represented 37 per cent of the global population SDGs 9: Industry, Innovation and Infrastructure in 2010. Oceans provide livelihoods and tourism Goal 9 encompasses three important aspects of benefits, as well as subsistence and income. sustainable development: infrastructure, industrialization and innovation. Infrastructure SDGs 15: Life on Land provides the basic physical systems and Preserving diverse forms of life on land requires structures essential to the operation of a society targeted efforts to protect, restore and promote or enterprise. Industrialization drives economic the conservation and sustainable use of growth, creates job opportunities and thereby terrestrial and other ecosystems. Goal 15 focuses reduces income poverty. Innovation advances specifically on managing forests sustainably, the technological capabilities of industrial restoring degraded lands and successfully  combating desertification, reducing degraded natural habitats and ending biodiversity loss. SDGs 16: Peace, Justice and Strong Institutions Peace, justice and effective, accountable and inclusive institutions are at the core of sustainable development. Several regions have enjoyed increased and sustained levels of peace and security in recent decades. But many countries still face protracted armed conflict and violence, and far too many people struggle as a result of weak institutions and the lack of access to justice, information and other fundamental freedoms. SDGs 17: Partnership for the Goals Achieving the ambitious targets of the 2030 Agenda requires a revitalized and enhanced global partnership that brings together Governments, civil society, the private sector, the United Nations system and other actors and mobilizes all available resources. Enhancing support to developing countries, in particular the least developed countries and the small island developing States, is fundamental to equitable progress for all. Lesson 6: Indigenous Peoples’ Studies (READ THE SHARED MATERIALS FOR THIS TOPIC)