TCW 101 The Contemporary World Module - Bulacan State University PDF

College of Social Sciences and Philosophy AY 2020-2021 MODULE IN THE CONTEMPORARY WORLD (TCW 101) Ria I. dela Merced Darwin S. Enriquez Elmira Thrina C. Pelayo Catherine L. Roxas Elizabeth D. Santiago Nicolo B. Velasco Page | 1 Overview of the module The module explains the basic concept of globalization as an attempt to further understand the current world in which we live. It also discusses contemporary global issues and events that will help students in analysing the multi-faceted phenomenon of globalization. Economic, political, cultural and historical relationships among nations can be seen in the discussion of the module. It is expected that students will become responsible global citizens at the end of the module. Units to be discussed include 1.) Introduction to Globalization,2.) The Structures of Globalization,3.)The World of Regions,4.) The World of Ideas,5.) Global Population and Mobility, and 6.) Towards a Sustainable World. At the end of the module, students are expected to: 1. Define globalization; 2. Distinguish different interpretations and approaches to globalization; 3. Describe the emergence of global economic, political, social, and cultural systems; 4. Analyze the various contemporary drivers of globalization; and 5. Understand the issues confronting the nation-state. Learning activities and suggested readings are included in the module to assess students‘ understanding about the lesson. Page | 2 Page | 3 Title of the Lesson Page number UNIT 1: Introduction to Globalization Lesson 1: Definition of Globalization 1 Lesson 2: Theories of Globalization 5 Lesson 3: History of Globalization 11 Lesson 4: Market Globalism 17 UNIT 2: The Structures of Globalization Lesson 1: The Global Economy 24 Lesson 2: Market Integration 33 Lesson 3: The Global Interstate System 46 Lesson 4: Contemporary Global Governance 53 UNIT 3: The World of Regions Lesson 1: Global Divides 62 Lesson 2: Characteristics of Global North and Global South 66 Lesson 3: Theoretical Understanding of Global North and Global South 71 Lesson 4: Asian Regionalism 73 UNIT 4: The World of Ideas Lesson 1: Global Media Culture 78 Lesson 2: Culturalism, Multiculturalism and Globalization 83 Lesson 3: Digital Divide 87 Lesson 4: Globalization of Religion UNIT 92 5: Global Population and Mobility Lesson 1: Global City 100 Lesson 2: Global Demography 105 Lesson 3: Demographic Transition 112 Lesson 4: Global Migration UNIT 120 6: Towards a Sustainable World Lesson 1: Sustainable Development 130 Lesson 2: Global Food Security 138 Lesson 3: Global Citizenship 141 Lesson 4: Conclusion 144 Final Requirement 148 Suggested Readings and Websites 149 Glossary 151 Page | 4 Answer Key 156 References 162 Republic of the Philippines Bulacan State University City of Malolos, Bulacan COURSE SYLLABUS CONSULTATION HOURS: COLLEGE : CSSP DEPARTMENT : Social Sciences COURSE CODE : TCW 101 COURSE TITLE : The Contemporary World FACULTY : COURSE DESCRIPTION: This course introduces students to the contemporary world by examining the multifaceted phenomenon of globalization. Using the various disciplines of the social sciences, it examines the economic, social, political, technological, and other transformations that have created an increasing awareness of the interconnectedness of peoples and places around the globe. To this end, the course provides an overview of the various debates in global governance, development, and sustainability. Beyond exposing the student to the world outside the Philippines, it seeks to inculcate a sense of global citizenship and global ethical responsibility. This course includes mandatory topics on population education in the context of population and demography. LEARNING OUTCOMES (LO): On completion of the course, the student is expected to be able to do the following: ATTRIBUTES OF IDEAL GRADUATE (AIG) Learning Outcomes (LO) Highly Competent LO1 Distinguish different interpretations of and approaches to globalization LO2 Describe the emergence of global economic, political, social, and cultural systems LO3 Analyze the various contemporary drivers of globalization LO4 Understand the issues confronting the nation-state Ethical Professional LO5 Articulate personal positions on various global issues LO6 Identify the ethical implications of Page | 5 global citizenship. Contribute to country’s LO7 Analyze contemporary news sustainable development events in the context of globalization LO8 Analyze global issues in relation to Filipinos and the Philippines LO9 Write a research paper with proper citations on a topic related to globalization Service-Oriented LO10 Assess the effects of globalization on different social units and their responses FINAL COURSE OUTPUT 1. Written Examinations 2. Term Paper 3. Reflection Papers RUBRICS FOR ASSESSMENT Term Paper / Reflection Paper / Academic Paper / Concept Map Page | 6 Source: http://academics.adelphi.edu/edu/hpe/healthstudies/whalen/HED6 01_r2.shtml Debate Page | 7 Superior - 4 Proficient - 3 Poor - 2 Unsatisfactory - SCORE 1 Used many Used some Used few facts Did not present Informatio facts to facts to to support facts to support Factual support all support all arguments. arguments. n arguments. arguments. Demonstrate d Demonstrated Demonstrated Demonstrated thorough accurate minimal misunderstanding Comprehension understandin g understanding understanding of the information of information. of important of information. information. All arguments Most Some Few Persuasivene were logical arguments arguments arguments and were logical were logical were logical ss convincing and convincing and convincing and convincing Communicate Communicated Seldom Failed to Delivery d clearly and clearly; frequent communicated communicate confidently; eye contact; clearly; poor eye clearly; no eye maintained good voice and contact; poor contact; eye contact; delivery rate. voice and monotone excellent delivery rate. delivery. voice inflection and delivery rate. Addressed all Addressed Addressed Did not address Rebuttal opponent most of some of opponent‘s arguments opponent‘s opponent‘s arguments. with counter- arguments with arguments with evidence. counter- counter- evidence. evidence. speci Com nt me ) s ( fy Total Score Source: http://www.educationworld.com/tools_templates/Final_templates_set2 _d ebate.doc Page | 8 OTHER REQUIREMENTS AND ASSESSMENTS: 1. Regular Attendance 2. Quizzes, Assignments, Seatwork 3. Active participation in class discussion 4. Case Studies 5. Brainstorming and Group Reporting 6. Debate 7. Film Viewing GRADING SYSTEM Attendance 10% Recitation 10% Assignments/Projects/Seat works 20% Quizzes 30% Midterms/Finals 30% Total 100% Grades Percentage Descriptive Rating 1.00 97-100 Excellent 1.25 94-96 Excellent 1.50 91-93 Very Good 1.75 88-90 Very Good 2.00 85-87 Good 2.25 82-84 Good 2.50 79-81 Satisfactory 2.75 76-78 Satisfactory 3.00 75 Passed 5.00 74 & below Failed LEARNING PLAN Learning Topics Week Learning Outcomes Activities Course Syllabus 1 Course Orientation LO1, 2, 7, &  Introduction to Class 10 Globalization 1-2 Discussion,Concept Page | 9 Defining Mapping & Quizzes Globalization  Theories of Globalization  History of Globalization  Market Globalism The Structures of LO2, 3, 4, 5, Globalization Class 6, 7, 8, & 10 The Global Economy 3-5 Discussion,Concept  Market Integration Mapping, Quizzes  The Global Interstate & Term Paper  System Contemporary Global  Governance A World of Regions Class Discussion, LO1, 2, 3, 4,  Global Divides: The 6-8 Concept Mapping, 8, & 10 North and the South Quizzes & Case  Characteristics of Studies Global North and Global South  Theoretical Understanding of Global North and South  Asian Regionalism Midterm 9 Examination A World of Ideas Class LO2, 5, 6, 7,  Global Media 10 - Discussion,Concept 8, 10 Cultures 11 Mapping, Debate &  Culturalism, Quizzes Multiculturalism and Globalization  Digital Divide  The Globalization of Religion Global Population Class LO2, 4, & 7 and Mobility The 12 - Discussion,Concept  Global City 14 Mapping, Case  Global Demography Studies & Quizzes  Demographic Transition  Global Migration Towards a LO2, 4, Sustainable World 15 - Class Discussion&  Sustainable 5,6,7,8,9 & 18 Conduct of Seminar 10 Development  Global Food Security  Global Citizenship  Conclusion Final Examination 18 Page | 10 REFERENCES: Banks, J.A. (2003). Educating global citizens in a diverse world. Retrieved February 24, 2006. from www.newhorizons.org Baylis& Smith.(2001) Globalization of world politics 2nd edition.Oxford: Oxford University Press Carbaugh, R. (2015). International economics: Theory and policy 9th Edition.Cengage Learning. Castells, M. (1999). Information technology, globalization, and social development. Switzerland: United Nations Research Institute for Social Development. Choy, C. P. (2006). Education and globalization. Retrieved from http://www.gse.harvard.edu/news/features/mso04012004.html Clayton, T. (2004).Competing conceptions of globalization revisited: Relocating the tension between world-systems analysis and globalization analysis. Comparative Education Review 48(3): 274-294. Figel, J. (2005). Globalization and education: Speech, Retrieved from http://europa.eu.int/rapid/pressReleasesAction.do?reference=SPEECH/05/321&for mat=HTML&aged=0&language=EN&guiLanguage=en Friedman, T. L. (2005). The world is flat. New York: Farrar, Straus and Giroux. Krugman, P. et. al. (2012).International economics: Theory and policy 9th edition. Boston: Pearson Education, Inc. Lawson, S. (2001). The new agenda for international relations. New Jersey: John Wiley & Sons, Inc. Sanders, T. and V. Stewart (2004).International education: From community innovation to national policy. Phi Delta Kappan 86(3): 200-205. Smith, M. K. (2006). Globalization and the incorporation of education. Retrieved on March 1, 2006, from http://www.infed.org/biblio/globalization_and_education.htm Steger, M. (2013).Globalization: A very short introduction (Very Short Introductions). Oxford: Oxford University Press Vivarelli, M. (2006).The social impact of globalization in the developing countries. Bonn: The Institute for the Study of Labor (IZA) Page | 11 UNIT TITLE: INTRODUCTION TO GLOBALIZATION TITLE OF THE LESSON: Defining Globalization DURATION: 1.5 hours Introduction: Globalization is one of the key concepts of our time. It has been the topic of debates and perhaps one of the descriptions being given about this topic is the idea that the world is becoming more similar in terms of beliefs, practices, and culture. The concept is being tied up with modernity, with continuous technological advancements and increasing economic, cultural, political and historical relationships among nations. This lesson will focus on the various definitions of globalization. It also aims to understand globalization using different interpretations and approaches. Objectives/Competencies: At the end of the lesson, the students are expected to: General: Understand the meaning of globalization. 1. Define globalization using different concepts. 2. Be knowledgeable on the different interpretations and approaches of globalization. 3. Tell their globalization experience. Pre-test. Name: CYS: Part I. Write down 5 words which you think are related to globalization. Provide two sentences to explain each word. 1. 2. 3. 4. 5. Lesson Proper/Course Methodology: DEFINING GLOBALIZATION Several definitions of globalization have been Page | 12 written in various materials over the years. It was defined as a process, a concept and an ideology to mention a few. So how do we fully understand the term? In this lesson, we will try to discuss the concept of globalization using different perspectives. Globalization cannot be defined clearly in one term or one definition. It‗s definition can be different depending on the field, situation, or events (Al- Rodhan,2006). The meaning of globalization may reflect one's point of view, may it be political, cultural, historical and others. In a journal, Steger (2005) said that the term globalization should be confined to a set of complex, sometimes contradictory, social processes that are changing our current social condition based on the modern system of independent nation-states. Globalization includes economic integration; the transfer of policies across borders; the transmission of knowledge; cultural stability; the reproduction, relations, and discourses of power; it is a global process, a concept, a revolution, and an establishment of the global market free from socio-political control. It is also a concept that has been defined variously over the years, where most of it refers integration and cooperation, development, progress, integration and cooperation, colonialism, regression, and destabilization. Nevertheless, these challenges do not change the true purpose of this term that brings with it a multiple hidden agendas. An individual's political ideology, geographic location, social status, cultural background, and ethnic and religious affiliation also provide a background that determines globalization. Let the following diagram aid us in our discussion. Martin Khor, in 1995, referred to globalization as colonization. From one country to another, colonizers left us with political, cultural, historical and economic influences many of which are very evident up to this day and age. At the same time, Swedish journalist Thomas Larsson, in his book The Race to the Top: The Real Story of Globalization (2001), said that globalization make the world shrink with distances getting shorter and things moving closer. It refers to the increasing ease with which somebody on one side of the world can interact, to mutual benefit, with somebody on the other side of the world. Almost similar to the definition given by David Harvey in his book The Condition of Post-Modernity (1989) where he stated that globalization is the compression of time and space. In today's time, we don't need to spend too much time to reach a particular destination, connect with someone from afar or talk to a family member from the other side of the world real time. Globalization gives us this convenience in the form of technological innovations. On the other hand, Kenichi Ohmae in his book The Borderless World: Power and Strategy in the Global Marketplace (1992) said that globalization is the onset of a borderless world. With globalization, there is an increasing interconnectedness among the countries around the world. There is diffusion of values, beliefs, practices and technology. There is continuous exchange of goods and services. Page | 13 Figure 1. What is globalization? The difficulty in defining globalization is far from disappearing. Nevertheless, exploring the different meanings and idea behind globalization, we are able to see how the concept has been The process of Compression of world shrinkage GLOBALIZATION time and space (Larsson,2001) (Harvey, 1989) identified over the course of a relative number of years. The onset of borderless world. It is what we in the Third World (Ohmae, 1992) have for several centuries called colonization. (Khor,1995) UNIT TITLE: INTRODUCTION TO GLOBALIZATION TITLE OF THE LESSON: Theories of Globalization DURATION: 1.5 hours Introduction Page | 14 The academic debates as to how globalization should be defined can be overwhelming. In the previous discussions, we realized that depending on the author, we either see globalization as a shadow from the past or a big part of the current world in which we live. This lesson will discuss the different theories of globalization as an attempt to further understand the term using different lenses. A brief discussion is provided to see globalization as an economic, political and cultural process using different theories. Objectives/Competencies: At the end of the lesson, the students are expected to: General: Differentiate the theories of globalization. 1. Define the theories of globalization. 2. Describe the materialization of global economic, political, social, and cultural systems. 3. Analyze contemporary issues and events in the context of globalization Activity/ Ice breaker. Answer the following questions. Have you been to a foreign country? Tell the highlights of your travel. If not, where do you wish to go if given the chance? Cite your reasons. Lesson Proper/Course Methodology: THOERIES OF GLOBALIZATION At this point, we cannot deny the realities of globalization especially in the period of massive evidences. What makes it more crucial is to understand the concept in the middle of several scholarly debates. Is it really happening? Is it beneficial to everyone? Does it bring convergence or divergence among countries? The following theories will help us understand globalization from different point of views. A. World System Theory This theory is greatly associated with Immanuel Wallerstein who in 1974 published what is regarded as a seminal paper, The Rise and Future Demise of the World Capitalist System: Concepts for Comparative Analysis. In 1976, Wallerstein published ―The Modern World System I: Capitalist Agriculture and the Origins of the European World-Economy in the Sixteenth Century‖. This is Wallerstein‗s landmark contribution to sociological and historical thought and it triggered numerous reactions, and inspired many others to build on his ideas. World-system theory is a macro sociological perspective that seeks to explain the dynamics of the "capitalist world economy" as a "total social system" (Martinez-Vela, 2001). For Wallerstein, a world-system is a multicultural territorial division of labor in which the production and exchange of goods and materials is important for surviving everyday life. This division of labor is explained as the forces of production of the world economy and the reason for the existence of the two interdependent regions called core and periphery. Both of the regions are culturally and geographically different. One is focused on labor-intensive production, while the other one is focused on capital-intensive production (Goldfrank, 2000). In simple terms, world system theory is a perspective that globalization is essentially the expansion of the capitalist system around the globe. Capitalist system Page | 15 is a political and economic system where trade, industries, and economy in general are dominated by private ownership instead of being state owned. Adding one to what Goldfrank stated as interdependent regions, World system theory is characterized by three interdependent regions: core, semi- periphery and periphery. 1. Core: refers to advanced or highly developed countries/ incorporate higher levels of education, higher salaries and more technology/ generate more wealth in the world economy. Examples: Western Europe, USA, Japan. 2. Semi-periphery: acts as defense zone between core and periphery, and has a mix of the kinds of activities and institutions that exist on them/ may be exploited by the core but in turn exploit the periphery. Examples: China, Ireland, Mexico. 3. Periphery: refers to less developed (Third World) countries, incorporate lower levels of education, lower salaries and less technology/ generate less wealth in the world economy. Examples: Philippines, Vietnam, Africa Semi - Core periphery Periphery Figure 1. World System Theory’s Three Interdependent Regions The figure above shows the basic idea of the world system theory. It implies the hierarchy of power among the countries in the world. The core countries dominate the economy, exploit the poor peripheral countries, and depend on them in terms of cheap labor and raw materials. The core countries are considered capital intensive while peripheral countries are labor intensive. Semi-peripheral region on the other hand acts as a buffer zone between the two regions. Prior to the discussion of the next theory, answer the activity below. Activity # 1. Think of or search for a global issue that has happened within the last three years involving two or more nations. Identify whether the countries involved are core, Page | 16 semi-periphery or periphery. Explain how these countries worked interdependently in the issue. Global Issue: Y our observation:. B. World Polity Theory In this perspective, state remains an important component of world society. Societies were becoming more similar in terms of government and policies. This is considered as a response to modernization theory. The expectation that countries will march through the same stages of development. Because while countries differ a lot in their level of development, many aspects of their government look quite similar. Hence, this theory argues that this conformity reflects the existence of a common global culture. World polity theory emphasizes culture not economy and focuses on how culture affects us by providing norms. Norms are unquestionable standards of the society. They are like natural laws where it indicates the proper behavior depending on the situation. Created by man and sanctioned by the society through ostracism (e.g. discrimination, bullying, labeling etc.). In addition to the modernization theory, it implies that all societies start out as traditional economies, then they have an industrial revolution,(a period where economies are dominated by industries and machine manufacturing and countries are becoming urbanized and less agricultural) eventually they become modern, high- technology societies. (Schofer, 2010). This premise is being shown in the figure below. subsistence Industrial modern/ high farming/ technology traditional societies economy Figure 2.llustration of the Modernization Theory While world polity theory envisions a densely interconnected global network, the theory‗s dynamic implications are actually stronger. States are becoming more similar as they are integrating more deeply into the world polity, as many studies and hypotheses suggest. C. World Culture Theory Page | 17 This perspective agrees that world culture is new and important, but it is less homogenous than world polity scholars imply. Globalization is a process of relativization. World society consists of a complex set of relationships among multiple units in the global field. It focuses on the way in which participants in the process become conscious of and give meaning to living in the world as a single place. By this, globalization refers both to the compression of the world and the intensification of consciousness of the world as a whole (Lechner, nd). He also added that the structure of world culture works based on the following ideas: Relativization. This means that each unit emerging in the world order takes shape depending on its surroundings. For example, as nation-states become subject to universal standards derived from a common conception of humankind, citizenship in those societies become relativized. Emulation. Although globalization cannot create a common culture, where everyone has the same values and beliefs, it can create a single arena in which all actors pursue their goals with comparison to others, employing at least some common standards as yardsticks. Glocalization. The ideas and processes inside globalization are interpreted differently according to the point of particular groups and their history. In other cases, this is done strategically, for example when global marketers create local traditions on the assumption that difference sells. Moreover, glocalization captures the way in which heterogenization and homogenization combines. Glocalization is a practice that involves both local and global considerations. Homogenization is the process of making things alike while heterogenization is the process of adoption of elements of global culture to local cultures also known as cultural heterogenization. Homogenization is more on the structural level like the similarities of the architectural layout in all McDonalds branches here and abroad. On the other hand, heterogenization is more on the symbolic level like the way hamburgers and French fries are eaten. While the above discussion highlighted how world culture works, the following shows how it changes. Inherent dynamics of globalization. The world culture theory shows the process as ongoing and open-ended, this means that all characteristic of world culture, discussed above, entails continual change, where cultural conflict is the common mechanism. Movements of de/reglobalization. Globalization triggers resistance or reaction. For example, the Islamic fundamentalism. While against in the form of globalization that builds equal cultures in the world, fundamentalism replace its own global vision. The fundamentalists define global fundamentals and operate in terms of globally dim ideas. Multiple sources. While world culture theory emphasizes the role of reflexivity and worldviews in globalization, in principle change can originate anywhere. World culture theory is causally agnostic. D. Neoliberalism Basically, neoliberalism is a theory of political economic practices that proposes that human well-being can best be advanced by liberating individual entrepreneurial freedoms and skills characterized by strong private property rights, free markets, and free trade. The concept also suggests its meaning, ―revival of liberalism‖. From the word ―neo‖ which means new or revived. Page | 18 According to Saad-Filho and Johnston (2005), ―we live in the age of neoliberalism‖. Along with other scholars, they share the quite common, but not necessarily accurate, view that power and wealth are, to an increasing degree, concentrated within transnational corporations and elite groups, as a result of the practical implementation of an economic and political ideology they identify as ―neoliberalism‖. On the other hand, Munck (2005), stated that the possibility of a ―self-regulating market‖ is a core assumption in classical liberalism, and an important presumption among neoliberals as well. Efficient allocation of resources is the most important purpose of an economic system, and the most efficient way to allocate resources goes through market mechanisms. This is what Munck describes as ―neoliberal economic theories‖. For David Harvey (2005), in the existence of neoliberalism, the role of the state is to create and preserve an institutional framework appropriate to such practices. The state has to guarantee the quality and integrity of money. It must set up military defense, police, and legal structures. Furthermore, if markets do not exist, then they must be created. Nevertheless the state should not venture. The state interventions in markets must be kept minimum because, according to the theory, the state cannot possibly possess enough information to second-guess market signals (prices) and because powerful interest groups will inevitably distort and bias state interventions (particularly in democracies) for their own benefit. It was given emphasis in the definitions that the basic characteristics of neoliberalism are free markets and free trade. Figure 3 shows some of the ideas of the free market. Whenever free market exists, price is determined by competition and there is little or no government control. Hence, you are free to choose your work, with little or no free to set prices, be an government investor, as well as buy, own control and sell properties. This is believed to set free the creative potential and the entrepreneurial spirit price is free to be an Free among people and lead determined investor or Market to more individual liberty by entrepreneur and well-being. competition In free trade, two or more nations agreed to reduce import and export barriers free to own, among them. If policies were buy and sell created, goods and services properties can be bought and sold across international borders with little or no government control with regards to tariffs, quotas and subsidies. Perhaps one of the major criticisms about free trade is highlighted in a protectionist‗s Figure 3. Characteristics of a free market points of view. Free trade creates strong competition in the international market thereby affecting local or domestic industries. Protectionism refers to actions or policies that allow the government of a country to promote domestic or local producers, and thereby boost its own production of goods and services by imposing tariffs or otherwise limiting foreign goods and services in the marketplace. Page | 19 Aside from the characteristics mentioned in the previous discussion, other characteristics of neoliberalism include open market, tax reforms and privatization (the transfer of state owned properties or businesses to the private sector).Privatization has pros and cons. One reason for privatization is financial constraint on the part of the government. It is expected that after an enterprise has been privatized, it will offer better and quality services among its consumers. On the other side, this may also mean higher price of the product or service being offered. Most privatized businesses in the country offer basic social services. Examples are Philippine Airlines which was privatized in 1992 and PLDT which was privatized in 1995. PAL remains to be the dominant air carrier in the country and is now under PAL holdings owned primarily by business tycoon Lucio Tan. UNIT TITLE: INTRODUCTION TO GLOBALIZATION TITLE OF THE LESSON: History of Globalization DURATION: 1.5 hours Introduction Page | 20 Globalization is one of the most debated topics in the field of Social Sciences. Scholars still argue on the issue as to when and where it started. In the previous lesson, we mentioned that globalization is a process which cannot be defined clearly with beginning and an ending. This lesson will discuss different factors related to globalization and put them into a historical perspective. The different periods that contributed to the emergence of globalization will also be included in the lesson. Objectives/Competencies: At the end of the lesson, the students are expected to: General: Describe the emergence of globalization. 1. Categorize the different periods in the history of globalization. 2. Analyze the factors that lead to the emergence of globalization. 3. Compare the highlights of the different periods in the history of globalization. Lesson Proper/Course Methodology: Technology is always evolving, it is never regressive. It also provides efficiency and enables us to perform tasks in less time. Over the years, we have seen how globalization brought convenience in our lives in the form of technological innovations. But the question is where do we attribute the beginning of globalization? According to Kenneth Waltz as cited by Brawley (2008), many of those who argue that globalization is something quite new underestimate the extent to which the present looks like the past. Is globalization all that new? In this lesson we will look into several eras which can be seen as periods when globalization is seen as powerful political, economic, cultural and historical responses. Trade is measured as one of the most important factors that started the cross- border relationship among nations. This process involves transfer or exchange of goods and services from one person to another or one country to another. The following are the most important periods in the emergence of globalization. Silk roads Page | 21 Silk roads are ancient network of trade routes that connect the east and the west. (as shown in figure 1)These routes have been useful to carry out goods and services. Silk is one of the most common products for trading at that time. Silk is a fiber obtained from silkworms which can be woven into textiles. Image source: https://www.weforum.org/agenda/2019/01/how-globalization-4-0-fits-into -the-history-of- globalization/ Figure 1. The Silk Road People have been trading goods from the very start. Yet in the 1 st century BC, an incredible phenomenon occurred. Luxury products from China started to appear in Rome. They got there after being hauled for thousands of miles along the Silk Road. Trade had stopped being a local or regional affair and started to become global (Vanham, 2019). This is not to conclude that globalization started intense. Silk was considered a luxury good, together with the spices that were added to the intercontinental trade between Asia and Europe. The value of these exports was tiny, in relation with the total income of the economy, yet many middlemen were involved to get the goods to their destination. But because of this, global trade links were established. Silk road served as the key to people‗s movements and open the doors for trans-border relations among countries. According to Kuzmina (2008) this was the road that for many centuries saw the movement of people, object and ideas. Ethnic migrations, trade that was first conducted in stages and later by caravan, the spread of advanced technologies and ideological conceptions- all were part of the process by which the achievements of the different people of Eurasia blended into a universal stream. 16th century During this period, Europeans was recognized worldwide by building trade connections on their own terms, bringing their culture to different regions by settling vast areas, and defined the ways in which different people were to interact with each other. The main focus of the Islamic trade in the Middle Aged was spices. The spices were traded mainly by sea since ancient times, unlike silk. But by the Medieval Era spices had become the focus of international trade. Leading among them were the mace, nutmeg, and cloves from the Maluku islands in Indonesia. These spices were extremely expensive and in high demand, not only in Indonesia but also in Europe. But compared with silk, they remained a luxury product, and trade remained relatively low volume. Globalization at this time still didn‗t take off, but the original Belt (sea route) and Road (Silk Road) of trade between East and West did now exist (Vanham, 2019). During this period, colonization took place in different parts of the world. Several sponsored expeditions were made by European countries in search for spices. Spices are also popular goods for trading at that time. They are considered highly valuable goods because they are very hard to obtain. Because of minimal technological advancements, spices are being used as medicine and food preservatives. First wave of globalization (19th century) Page | 22 This marked the period of intense globalizations, when millions migrated, trade greatly expanded, and new norms and organizations came to govern international conduct. International relations and cross-border activities started to change with the first wave of globalization, which roughly occurred over the century ending in 1914. By the end of the 18th century, Great Britain had started to dominate the world both geographically, through the establishment of the British Empire, and technologically, with innovations like the steam engine, the industrial weaving machine and more. It was the era of the First Industrial Revolution. This period is characterized by machine manufacturing and industries. During these times, cities grew as people shifted from farming/agriculture to industry and commerce. According to Allen (2017), Industrial Revolution refers to the far reaching transformation of British Society that occurred between the mid-18 th and mid-19th centuries. Some of the advantages of this period are; Invention of machines to spin and weave cloth. Steam engine was widely used as a source of power. Using of coal in smelting and refining iron. Construction of railways. However, the Industrial revolution also had a downside for it brought poverty along with progress. Some of the disadvantages are; Technical change threw people out of work. The cities were polluted. The provision of education was limited. Worker‗s housing condition was poor. Allen (2017) added that the Industrial Revolution made for a fantastic twin engine of global trade. On another note, trains and steamships could transport goods, both within countries and across countries. Moreover, its industrialization authorized Britain to produce products that were in demand all over the world, like manufactured goods, textiles, and iron. With its advanced industrial technologies, Britain was also able to bombard a huge enlarging international market. The result of globalization could be seen through numbers. Trade grew on average 3% per year, for about a century. That growth rate drove exports from a share of 6% in the early 19th century, to 14% in the eve of WW I. As stated by the Economist, John Maynard Keynes, London could order through telephone the goods and services it wants while sipping tea and lying on bed. While Britain was the country who benefited most from globalization, as it had the most technology and capital, other countries did benefitted too, by exporting goods. For instance, the invention of the refrigerated cargo ship or ―reefer ship‖ in the 1870s, allowed countries like Uruguay and Argentina, to enter the golden age of globalization. They started to mass export meat, from cattle grown on their vast lands. Other countries, too, started to specialize their production in those fields in which they were most competitive. For More (2000), Industrial Revolution implies industrialization- that is both the absolute growth of industry and its expansion relative to the other sectors of the economy, those being agriculture and services. Industry in this context covers manufacturing, mining and building. Yetthe first wave of industrialization and globalization also coincided with darker events, too. Many workers in the industrialized nations did not benefit from globalization, for their work is commoditized by industrial machinery, or their output undercut by foreign imports. Page | 23 Image source: https://www.google.com/search?q=industrial+revolution&tbm=isch&ved Figure 2. Illustration of the Industrial Revolution Figure 2 shows the illustration of how industrial revolution brought rapid changes in our world today. As they say, it took centuries for us to reach this golden age. Several waves of industrialization bring us to today, when a new era of globalization is once again upon us. According to Schwab (2016), the first industrial revolution traversed around 1760 to 1840. It is triggered by the invention of steam engine and construction of railroads. The second industrial revolution which started in the late 19 th century and into the early 20th century, made mass production possible, fostered by the advent of electricity and the assembly line. The third industrial revolution began in the 1960‗s. It is usually called the computer or the digital revolution because it was catalyzed be the development of semi-conductors, main frame computing and the internet. Nowadays, we are at the beginning of the fourth industrial revolution or the globalization 4.0. It is characterized by a much more present mobile internet, by smaller and more powerful sensors that have become cheaper, and by artificial intelligence and machine learning. Globalization 4.0 (20th Century) Globalization in the 20th century is considered as the golden age of globalization. Movement of people, goods and services across national borders was at least as free and significant as it is today. In a world dominated by two powerful countries, China, and the US, the new partition of globalization is the cyber world. Digital economy, in its early years during the 3rd wave of globalization, is now becoming a strength to reckon with through 3D printing, digital services, and e-commerce. It is further empowered with artificial intelligence, but is threatened by cross-border hacking and cyber-attacks (Vanham, 2019). Moreover, a negative globalization is enlarging too, through climate change. Pollution often leads to extreme weather events in another. This has a further devastating effect not just on the world‗s biodiversity, but also in its capacity to cope with hazardous greenhouse gas emissions. As they say, for every production, there is destruction, and for every consumption, there is waste. Page | 24 UNIT TITLE: INTRODUCTION TO GLOBALIZATION TITLE OF THE LESSON: Market Globalism DURATION: 2 hours Introduction In the previous lesson, we were able to see the significant periods that may have started globalization The role of Western countries in the process was highlighted. As a result, globalization is often seen as Westernization. But to see globalization as a mere dominance of Western culture, beliefs and ideas could create a problem. Globalization is a collection of world ideas, culture and civilization as a whole. In this lesson, we will try to differentiate globalization with globalism. The six core claims of market globalism will be given emphasis. Contemporary global events will be used to understand the lesson better. Objectives/Competencies: At the end of the lesson, students are expected to: General: Define market globalism. 1. Differentiate globalism from globalization. 2. Enumerate and discuss the six core claims of market globalism. 3. Analyze contemporary news events in the context of globalization. Activity/ Ice breaker: What’s inside?! Inside this crossword puzzle are ten (10) words that we will encounter during the discussion of the lesson. Encircle all these words and get one (1) point for each correct answer. G L O B A L I S M M K T A R T T R F T H U B H I P D E R T M V E A A L L I S M R B I T E A S P C S D K H V B K F R A C N A S D H X G T J R E W E R T F V Q W I N F R E E T R A D E R K L D E M O C R A C Y O I U E X D I P S E L A V U L N E R D C A P T E R R O R I S M I S S T W A P R T Y B G M K L G F T R A R A N T B I G Y D O I T E U L I N E V I T A B L E L F G M S K T H A N S I B K M H R E S I I R R E V E R S I B L E R G L O B A L I Z A T I O N E D Page | 25 Lesson Proper/Course Methodology: You have learned the meaning of globalization in the previous lessons. However, we have to emphasize that globalization and globalism are two different concepts. Globalism is the driving force of globalization. It helps us understand the inter-connections of the countries in the modern world. What is Market Globalism? Manfred Steger (2005) introduced the idea of market globalism as a rising political system. According to him, it reflects the concepts of globalization. It seeks to endow globalization with free market norms and neoliberal meanings. He used six core claims to better understand its meaning. These six core claims play crucial semantic and political roles. With regard to semantics, Steger argue that these claims absorb and rearrange bits and pieces of several established ideologies and integrate them with new concepts into a hybrid meaning structure of genuine novelty. Their political role consists chiefly in preserving and enhancing asymmetrical power structures that benefit particular social groups. The following are market globalism‗s six core claims. Taken from Manfred Steger‗s Ideologies of Globalization (2005). Claim No. 1: Globalization is focused on the global integration and liberalization of markets. This core claim of market globalism explores to shape global predisposition without exercising verbal threats and, therefore, represents the essence of soft power. It activates the neoliberal ideal, that self-regulating market is the basis for a future global order. The vital functions of the free market is its rationality and efficiency, as well as its alleged ability to bring about greater social integration and material progress can only be realized in a liberal society that values and protects individual freedom. This core claim believes that globalization is about the victory of markets over governments. Both the proponents and opponents of globalization agree that the driving force today is markets, where the truth is that the size of government has been shrinking relative to the economy almost everywhere. Claim No. 2: Globalization is irreversible and inevitable. The study of the observation of the influential globalists in the 1990s reveals their reliance on an economistic narrative of historical inevitability. While disagreeing with Marxists on the final goal of historical development, globalists nevertheless share with their ideological opponents a attachment for such terms as ‗irreversible‗, ‗irresistable‗, and ‗inevitable‗ to explain the predicted path of globalization. For instance, in a speech on the US foreign policy, President Clinton (as cited by Steger (2005) told his audience: ―Today we must embrace the inexorable logic of globalization.Globalization is irreversible. Protectionism will only make things worse‖.FrederickW. Smith, CEO of FedEx Corporation, suggests that ‗globalization is inevitable and it will happen whatever the situation is (Smith, 1999). The global south neo liberalist faithfully echoed the globalist language of inevitability. For instance, the Philippines Speaker of the House of Representatives, Manuel Page | 26 Villar, insisted that the process of globalization is the reality of the modern world (Villar, 1998). Around the 1990s, the neoliberal depiction of globalization as a natural force, like the gravity or weather, made it simple for globalists to persuade people that they would have to transform to the market discipline if they want to prosper and survive. Therefore, the globalist claim of inevitability neutralized the challenges of anti- globalist opponents by depoliticizing the public discourse about globalization: neoliberal policies were above politics, because they simply carried out what was ordained by nature. This view implied that, instead of acting according to a set of choices, people merely fulfill world-market laws that demanded the elimination of government controls. The irreversible characteristics of globalization can be attributed to technological innovations. The progressive characteristics of technology seem to make globalization unstoppable. Claim No. 3: No one is in charge of globalization. This core claim emphasizes the leaderless idea of globalization. Market globalism‗s deterministic language offered its proponents in the 1990s yet another rhetorical advantage. If the market natural laws have indeed predetermined a neoliberal course, then globalization does not reflect the arbitrary agenda of a particular social class or group. In other words, the one in charge with globalization are the market and technology, and not the people. Here are two examples. Robert Hormats in 1998, the vice chairman of Goldman Sachs International, emphasized that the true beauty of globalization lies on the concept that no one is in control of it, not individuals, institutions, or even government. Meanwhile, Thomas Friedman in 2000, alleged that the basic truth about globalization is that no one is responsible or in charge of it. People like to believe that there is someone controlling it, but the truth is no one. After 9/11, it became increasingly difficult for market globalists to maintain the position that ‗nobody is in charge of globalization‗. Yet number of corporate leaders still reflexively referred to the ‗leaderless market‗, neoconservatives close to the Bush administration lectured market globalists that global security and a global liberal order depend on the United States that ―indispensable nation‖ wielding its power‗ (Kagan, 2002). Claim No. 4: Globalization benefits everyone (... in the long run) This claim rest at the very center of market globalism because it provides an affirmative answer to the crucial normative question of whether globalization represents a ‗good‗ or a ‗bad‗ phenomenon. Market globalists in the 1990s frequently connected their arguments in favor of the integration of global markets to the alleged benefits resulting from the liberalization and expansion of world trade. At the 1996 G- 7 Summit in France, for instance, the heads of states of the 7 major industrialized countries issued a joint communique´ that contains the following passage: today‗s economic progress and growth bounced because of globalization. The process of globalization supplies great window of opportunities for all countries in the future. Its positive aspects including opening of international trade and expansion of investments, give populous regions with more opportunities, specifically in improving their standard of living, technological innovation, increase in skills that are needed in work, and rapid dissemination of information. These attributes of Page | 27 globalization led in the expansion of prosperity and wealth in the world. Hereby, we are assured that globalization is the hope of the future (Economic Communique´, 1996). In addition, globalists often seek to cementum their de-contestation of globalization as benefits for everyone by coopting the powerful language of science which claims to separate fact from fiction in a neutral fashion, that is, solely on the basis of hard evidence. Claim No. 5: Globalization Furthers the Spread of Democracy in the World This claim is anchored in the neoliberal assertion that freedom, free markets, free trade and democracy are synonymous terms. Affirmed as common sense throughout the 1990s, the compatibility of these concepts often went unchallenged in the public discourse. Francis Fukuyama, for example, asserted that there existed a clear connection between a country's successful democracy and economic development. While capital development and globalization did not automatically produce democracies, ‗the level of economic development resulting from globalization is contributory to the creation of complex civil societies with powerful middle class, where they facilitate democracy (Fukuyama, n.d.). This idea of securing freedom through an American-led drive for political and economic ‗democratization‗ around the globe, thus connecting the military objectives of the War on Terror to the neoliberal agenda of liberalizing markets has emerged as the centerpiece of imperial globalism. Claim No. 6: Globalization requires a war on terror. It argues that while globalization studies have focused substantially on the marketization of life, including the realms of politics and culture, the current ‗war on terror‗ phase has directed focus in theory and practice back to traditional state- centered security concerns and critical investigation of state–citizen relations, notably in the context of multicultural societies. (Youngs and Widdows, 2009) Two representative samples of how this new claim has been circulating in the public discourse are Thomas Barnett‗s ‗The Pentagon‗s New Map‗, published in the March 2003 issue of Esquire magazine, and Robert Kaplan‗s ‗Supremacy by Stealth‗ featured in the July 2003 issue of The Atlantic Monthly. Both publications reach a mass readership and its authors are respected professionals in their fields. Since then, he has been giving his briefings regularly at the Pentagon, in the intelligence community, and to high-ranking officers from branches of the military. In his much- debated Esquire article, which he later expanded into a best-selling book, Barnett argues that the Iraq War tag the moment when Washington occupy the real ownership of strategic security in the age of globalization. He split up the globe down into three distinct regions. The first is characterized by globalization thick with network connectivity, financial transactions, liberal media flows, collective security, rising standards of living, transparency, and more deaths by suicide than by murder. The countries that have these characteristics are America, New Zealand, Australia, and Europe. He calls these regions the 'Functioning Core', or 'Core'. The breeding ground of ‗global terrorists', is called the 'Non-Integrating Gap', or 'Gap'. These are Thailand, Malaysia, the Philippines, Pakistan, Indonesia, Mexico, Greece, South Africa, Turkey, Morocco, and Brazil. For Barnett, the significance of September 11 is that the attacks forced the United States and its allies to make a long-term military commitment to deal with the entire Gap as a strategic threat environment. In other Page | 28 words, in order for globalization to spread, there must be a War on Terror. Its three main objectives are: (1) to increase the capabilities of the Core's immune system in responding to situations like the September 11 attack; (2) to strengthen the Core from exports like drugs, diseases, terror, etc.; (3) to shrink the gap. The third point is particularly important, because the real battlegrounds in the global war on terrorism are still over there. Page | 29 UNIT TITLE: THE STRUCTURES OF GLOBALIZATION TITLE OF THE LESSON: The Global Economy DURATION: 2 hours Introduction This lesson will primarily discuss the concept of economic globalization, how does it form, the elements that facilitate its formation and examine who benefits from it and who is left out. Objectives / Competencies At the end of the lesson, the students are expected to: 1. To define economic globalization. 2. To explain the attributes of economic globalization. 3. To articulate a stance on global economic integration. Economic Globalization Most scholars of globalization have agreed that globalization is best thought of as a multidimensional phenomenon. Thus, approaching globalization purely through the lense of economics is a ‗categorical mistake‗ (Benczes, 2014). However, it is an inarguable fact that in order to fully understand the meaning, processes and implication of globalization, the economic dimension, should be given attention. As this dimension serves as one of the major driving forces in the process of globalization. What is Economic Globalization? Economic globalization according to International Monetary Fund or IMF (2008) is a historical process demonstrating the result of technological progress and human innovation. It is distinguished by the increasing integration of economies around the world through the movement of goods, services, and capital across borders. These changes are all products of people, organizations, institutions, and technologies. But this definition of IMF according to Benczes (2014) is not Page | 30 substantive as it only reflects quantitative change than qualitative transformation. Economic globalization is not only about extending and increasing economic activities (e.g production, trade etc.) but more of creating a functional integration among the said activities across borders. Stiglitz (2008) believes that ''the great hope of economic globalization is that it will help to raise the living standards all over the world by the opportunity to give the poor countries access to foreign markets in order to sell their products; by inviting foreign investments, in order to facilitate the emergence of new products at lower prices; open borders that allow easy movement of people all over the world, in order to train, to work, to build new businesses'', the author also believes that ''the economy has led to globalization, especially by reducing communications and transport costs, but the policy was the one that defined this process'' Elements of Economic Globalization According to Stiglitz (2003), the growth in cross-border economic activities takes five principal forms: (1) international trade; (2) foreign direct investment; (3) capital market flows; (4) migration (movement of labor); and (5) diffusion of technology Figure 1: Elements of Economic Globalization 1. International trade: International trade is the economic transactions made between countries. Every day, a network of planes, trucks, and ships moves huge quantities of goods around the world. Your TV might come from China (TCL), your T- shirt from Bangladesh (H & M) and your lunch from South Korea (Samgyeopsal). Trade transactions include both goods (tangible products) and services (intangible commodities). The production chains of goods and services is getting more and more complex and global (Ospina, 2018). It allows products to be sourced, assembled, packaged, and sold in different areas of the world. The materials for your TV or shirt or the marinade for the pork you had for lunch might have been produced in one country, processed in another country, assembled in a third country, and packaged somewhere else, all before getting to your local store or Page | 31 even to your table. How does this make sense? Why can‗t countries just make their own TV, shirt, or food and provide more jobs and business domestically? Before the 19th century, most European countries tried to do prioritize self- sufficiency in a system called mercantilism. The Mercantilism aimed to minimize imports and maximize exports while increasing the supply of gold in the country. Mercantilism formed barriers to international trade, where countries aimed to produce everything on their own. In the late 18 thcentury, the so-called classical economists, led by David Ricardo, contested these long-held beliefs by campaigning the idea that societies should trade with one another to be more successful because of comparative advantage. It follows the idea that countries should only export the goods that they are able to produce more efficiently than others and import the goods that other countries are able to produce more efficiently than them. Thus, when countries focus on making things they‗re reasonably good at and import the rest that they can‗t do efficiently, everyone benefits. This process is known as specialization, so that countries don‗t have to spend time and resources producing cloth or wine, for example, there‗s more room for them to innovate and develop entirely new products. Today, we measure countries‗ economies on productivity—their ability to utilize their limited resources for maximum value. This measure is known as gross domestic product, which totals the sum of all the final goods and services a country produces in a year. Countries‗ human, technological, and financial resources determine what they can produce efficiently and productively. The Costa Rica excels in exporting pineapples and coffee, while Germany exports millions of computers and cars. With the acceptance of new ideas, international trade took off. At the same time, advances in technology and travel made markets much more accessible. Massive container ships, cargo planes, and cheaper, faster communication connected the world‗s producers with millions of new customers. The remarkable growth in trade has been recorded for the last two centuries and completely transforming the global economy. Today about 1/4 of total global production is exported. Considering this transformative process is important because trade has generated gains, but it has also had important distributional consequences (Ospina et. al, 2018). Its link on household welfare, jobs and wages has also to be considered. For example, the impact of Chinese imports on the jobs in the United States. In the study of Dorn and Hanson (2013): found that rising exposure increased unemployment, lowered labor force participation, and reduced wages are the effects of Chinese competition in the country‗s local labor market. In addition to that, claims for unemployment and healthcare benefits also increased in more trade- exposed labor markets. Protectionism vs. Free Trade Page | 32 Figure 2: Protectionism vs. Free Trade 2. Foreign Direct Investment (FDI): According to Organization for Economic Cooperation and Development (OECD), FDI is a category of cross-border investment in which an investor resident in one economy establishes a lasting interest in and a significant degree of influence over an enterprise resident in another economy. A possession of 10 percent or more of the voting power in an enterprise in one economy by an investor in another economy is evidence of such a relationship. FDI is a key element in international economic integration because it creates stable and long-term connections between economies. It is also an important network for the transfer of technology between countries, stimulates international trade through access to foreign markets, and serves as an important vehicle for economic development. Foreign direct investments increase and helped to develop economies during the last decade. Areas such as agriculture, education, infrastructure, health, etc., give the country, where the investment is made, the desired standard of living and also a strong economic recovery. In global economic level, Foreign Direct Investment is leaning mainly towards developed countries, but developing countries also have great interest in this type of investments due to foreign capital inflows, innovative experience, knowledge and access to markets. United Nations Conference on Trade and Development (UNCTAD) reports concluded that FDI have become an important engine of economic growth because it grew faster than gross domestic product (GDP) and international trade and international corporate sales exceeded by far global exports (UNCTAD, 2006). Examples of foreign direct investments include mergers, acquisitions, retail, services, logistics, and manufacturing, among others. In 2017, for example, U.S.- based Apple announced a $507.1 million investment to boost its research and development work in China, Apple's third-largest market after the Americas and Europe. The announced investment relayed CEO Tim Cook's bullishness toward the Chinese market despite a 12% year-over-year decline in Apple's Greater China revenue in the quarter preceding the announcement. China's economy has been fueled by a remarkable increase of FDI targeting the country‗s high-tech manufacturing and services, which according to China's Ministry of Commerce (2017), grew 11.1% and 20.4% year over year, respectively, in the first half of 2017. Meanwhile, relaxed FDI regulations in India now allow 100% foreign direct investment in single-brand retail even without government approval (Government of India Ministry of Commerce and Industry, 2018). The regulatory Page | 33 decision reportedly facilitates Apple's desire to open a physical store in the Indian market. Thus far, the firm's iPhones have only been available through third-party physical and online retailers. 3. Capital market flows: To define international financial integration, you have to look at the amount of cross-border capital flows (Stiglitz, 2003). The term ' capital flows' refers to the movement of capital (money for investment) from one country to another as a consequence of investment flows. In this case, the money being referred to is not the money that flows between countries to purchase each other‗s goods and services, but rather referring to the money flowing into and out across the the world such as stock and bond, as well as factors such as real estate and crossborder mergers and acquisitions. Cross-border capital flows according to Rajan (2019) are neither an unmitigated blessing nor an undoubted curse. Meaning, if it is used wisely, they can be beneficial to recipient countries by making up deficiencies in the availability of long-term risk capital and reducing gaps in local corporate governance. They can also be beneficial to sending countries, offering investment opportunities for savings generated by aging populations. 4. Migration (movement of labor): Migration is the movement of people from one country to another. In economics, it is in consonant to the movement of labor. Whether it is physicians or nurse who emigrate from Philippines to Great Britain or seasonal farm workers emigrating from Mexico to the United States, labor is increasingly mobile. For sending countries, the short-term economic advantage of emigration (moving abroad) is located in remittances. Remittances are funds that emigrants earn abroad and send back to their home countries, mainly in order to support families left behind. According to the World Bank, remittances totaled $689 billion worldwide in 2018, with $529 billion of that money flowing into developing nations (World Bank, 2019). Magnifying it locally, Philippines is also on the map of those countries with higher remittances. According to World Bank‗s Report, in 2018, Philippines ranked fourth among the top remittance-receiving countries in the world with a total of $33.8 billion. Page | 34 Figure 3: The World‗s Top Remittance Recipients Migration, apart from the remittance contribution, can also benefit developing economies when migrants who acquired education and knowledge abroad return home to establish new enterprises. Unfortunately, migration can also hurt the economy in the process in which a country loses its most educated and talented workers to other countries. The flight of this human capital is essential for countries‗ economic growth. 5. Diffusion of technology: Technology plays a vital role in expediting the process of globalization. It is considered as a major facilitator and a driving force in the globalization processes. Technological improvement has allowed companies to rapidly globalize their products. Global food chains are able to produce and standardized their products across globe through wider and fine connectivity facilitated by technology. The development of containerized ships and air freight is considered to be a key technological advancement in trade and commerce. Similarly, the introduction of universal bar code has increased the movement and flow of goods worldwide. The creation of personal computers and internet formed electronic business (E-Business) and electronic commerce (E-Commerce), which are used as a validation of recent techno-globalism. Financial sector is also benefitted from technology through electronic banking or the online banking. Electronic transfer of funds is regarded to be the first operating form of global electronic financial system. Technological globalization is speeded significantly by technological diffusion, defined as the spread of technology among countries. There has been rapid advancement in the spread of technology to semi-peripheral and peripheral nations for the past two decades, and World Bank in 2008 reported the benefits and challenges of technological diffusion. In general, the report found that technological growth and economic growth rates were linked, and that increase in technological progress helps improve the situations of the poor. The report recognizes that the lowtech products found in rural areas such as corn that can benefit from new technological innovations, while, technologies like mobile banking can help those whose rural existence consists of low-tech market transaction. Furthermore, technological advances like in mobile phones can lead to competition lowering the prices and parallel developments in related areas such as mobile banking and information sharing. The contemporary era of globalization is now experiencing ‗internet economies‗ due to advancement in technology. Internet growth is a key factor for developing interpersonal relationship across the globe. It is one of the necessary components for social globalization, and it would not be complete without the invention of internet. Innovations in telecommunications, information technology, and computing have lowered communication costs and facilitated the cross-border flow of ideas, including technical knowledge as well as more fundamental concepts such as democracy and free markets (Stiglitz, 2003). Page | 35 Figure 4: The Accelerating Speed of World Trade Due to technological progress, costs of transportation and of communication decreased strongly during the last decades. Without these reductions of costs, phenomena such as outsourcing, long-distance trade and global value chains would not be possible. Conclusion: The formation of economic globalization would not be possible without the elements of trade, flows of capital, foreign direct investment, migration or the movement of labor, and technology. They attributed rapid transformation to the world economy. They have created difficult challenges, and countries will continue to struggle to increase growth and productivity, while reducing inequality and creating jobs and more opportunities. However, drawbacks will always be part of the picture. Turning back the clock to restore the old frameworks is impossible. The challenge is to build new ones that work. REFLECTIONS/ LEARNING INSIGHTS: To assess your understanding of the lesson, please answer the activity below. NAME: CYS: DATE: Activity: Using the graphic organizer below, consider the positive and negative impact of economic globalization from each of the points of view below: Developed Countries Page | 36 Positive Negative Developing Countries Positive Negative Page | 37 UNIT TITLE: THE STRUCTURES OF GLOBALIZATION TITLE OF THE LESSON: Market Integration DURATION: 2 hours Introduction This lesson will explore the role of the different economic and financial institutions, including global corporations, and the formation of an integrated world economy. Objectives / Competencies: At the end of the lesson, the students are expected to: 1. To identify the actors that facilitate economic globalization. 2. To explain the role of economic and financial institutions in the creation of an integrated global economy. 3. To identify the attributes of global corporations. 4. To narrate a short history of global market integration in the twentieth century. ACTIVITY: NAME: DATE: CYS: Part 1: ACTIVITY. How Globalization Affects What’s for Lunch: Globalization‗s effects can appear where you least expect them—including on your plate. Write a short narrative on what you eat for lunch. Consider the steps it takes before it reached your plate (e.g. ingredients, the extraction of raw material, manufacturing, movement, distribution, manner of cooking). (Minimum of 8 sentences). Title. Page | 38 Lesson Proper/ Course Methodology Actors that Facilitate Economic Globalization What is your favourite Netflix series? Have you felt ―kilig‖ also while watching Crash Landing on You? What made you watched it? Most of the time, apart from the story, the actors are the reason why you got hooked in watching a series. Just like your favourite series, economic globalization is also narrating stories with several actors performing. These actors are making a new script for the world economy. Generally, they are termed as international economic institutions and the transnational corporations. Netflix, as a transnational corporation, has also a role in economic globalization. International Economic and Financial Institutions In July 1944, 44 countries assembled the Bretton Woods Conference, and countersigned a framework for the international economic cooperation after WW II. Two international economic organizations resulted from the Bretton Woods Conference—the International Monetary Fund (IMF) and International Bank for Reconstruction and Development (IBRD) or what is known today as the World Bank — and in 1947 the General Agreement on Tariffs and Trade (GATT), became the primary global trade organization. The mentioned organizations became a part of a complex institutional structure to help manage the post war global economy. The Bretton Woods institutions were known as keystone international economic organizations (KIEOs) due to their central role in trade, development and monetary relations (Cohn, 2011). 1. The World Bank World Bank or formerly known as International Bank for Reconstruction and Development (IBRD) was conceived in 1944 at the Bretton Woods Monetary Conference in Bretton Woods, New Hampshire USA. Its initial goal was to help rebuild countries in Europe devastated by the WW II. World Bank first loan was to France in 1947 for post-war reconstruction ($250 million). Then, later shifted its support and attention to other member countries in Asia, Africa, and Latin America.  In the 1950s and 1960s, the funding of large infrastructure projects, such as roads, dams, irrigation systems, and electrical grids was World Bank‗s primary focus.  In 1970s, the agriculture sector became the bank‗s major focus. In the same period, World Bank shifted its attention to poverty eradication. Projects related to health and nutrition, food production, Page | 39 population, and rural and urban development were intended to reach the poor directly. Missions of the World Bank 1. To end extreme poverty. Considering the more than 1 billion people that still living today in deep poverty, the Bank's first goal is to end extreme poverty by decreasing the percentage of people living with less than $1.90 a day to no more than 3 percent by 2030. 2. Promote shared prosperity. World Bank see that rising inequality and social exclusion seems to accompany rising prosperity in many countries. Thus, the Bank‗s second goal is to promote shared prosperity by improving the income of the bottom 40 percent of the population in each country (World Bank, 2013). Organizations of the World Bank (World Bank, 2013) The World Bank is not common bank in the standard sense of the word. Instead, it consists of organizations that help in achieving its goals. The World Bank Group consists of five organizations: International Bank for Reconstruction and Development (IBRD) - it lends to governments of middle-income and creditworthy low-income countries. It is the world‗s largest development bank. It provides financial products and policy advice to help countries reduce poverty and extend the benefits of sustainable growth to all of their people. International Development Association (IDA) - it provides interest-free loans — called credits — and grants to governments of the poorest countries. It is one of the largest sources of assistance for the world‗s 74 poorest countries and is the single largest source of donor funds for basic social services in these countries. Eligibility for IDA support depends primarily on a country‗s relative poverty, defined as Gross National Income or GNI per capita below, an established threshold and updated annually ($1,185 in fiscal year 2021). The IDA‗s lending operations are financed by the contributions of developed countries. International Finance Corporation (IFC) - is the largest global development institution focused on helping the private sector. It helps developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. Multilateral Investment Guarantee (MIGA) - was created in 1988 to provide loan guarantees and insurance to foreign investors against loss caused by non-commercial risks in developing countries. International Centre for Settlement of Investment Disputes (ICSID) - ICSID, which operates independently of the IBRD, is responsible for the settlement by conciliation or arbitration of investment disputes between foreign investors and their host developing countries. Page | 40 IBRD and IDA are both partnering with governments of developing countries, while IFC, MIGA and ICSID focus on strengthening the private sector in developing countries. World Bank's Top 10 Borrowers Original Principal RANK COUNTRY Amount (in million $) 1 Peru 2,850 2 India 2,820 3 China 1,982 4 Indonesia 1,700 5 Ukraine 1,560 6 Egypt 1,550 7 Iraq 1,550 8 Poland 1,504 9 Colombia 1,400 10 Kazakhstan 1,080 Based on data from World Bank, 2020 Table 1: World Bank's Top 10 Borrowers *Philippines ranked no. 13 – $950 million 2. International Monetary Fund (IMF) Page | 41 The International Monetary Fund (IMF) was the other institution established as a result of the Bretton Woods Conference in 1944. It is an organization of 189 countries working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world (IMF, 2020). It is also regarded as the ―guardians of good conduct‖ in the area of balance of payments. The IMF's primary purpose is to promote global monetary cooperation and international financial stability. Core Functions of the IMF 1. Surveillance. This is also known as economic surveillance. Since the IMF‗s primary job is to promote stability in the international monetary system, thus, its first function is to oversee and monitor the economic condition of its member countries, including their monetary system and economic and financial policies. Acting like a doctor, the IMF will identify potential risks to stability and recommends appropriate policy adjustments needed to sustain economic growth and promote financial and economic stability. 2. Lending. The second function of the IMF is to provide financial support to nurture the economies of member countries with balance of payments problems. This assistance can replenish international reserves, stabilize currencies, and reinforce conditions for economic growth. Unlike World Bank, the IMF does not lend for specific projects. Typically, a country‗s government and the IMF must agree on a program of economic policies before the IMF provides lending to the country. A country‗s commitments to undertake certain policy actions, known as policy conditionality, are in most cases an integral part of IMF lending. These policy adjustments are conditions for IMF loans and serve to ensure that the country will be able to repay the IMF. Examples of policy adjustments to be made are trade liberalization, privatization of estate owned assets, tax adjustments and reducing government expenditures, as the case of the Philippines. 3. Capacity Development. The third function of the IMF is to give technical assistance and training to help countries build effective economic institutions for the implementation of right policies. These capacity development efforts are expected to help countries achieve their growth and development objectives and are an important contribution to countries‗ progress toward their Sustainable Development Goals (SDGs). Capacity development is integrated with IMF surveillance and lending. IMF's Source of fund: The IMF's primary source of fund is from the quotas paid by its member states. The size of each quota is determined by how much each government can pay according to the size of its economy. Hence, the quota of states reflects their relative position in the global economy and determines the voting power of states in IMF decisions. Multilateral and bilateral borrowing are the secondary and tertiary line of defense in case quotas would not be sufficient. Page | 42 3. World Trade Organization (WTO) Timeline of GATT and the WTO (Crowley, 2003) 1944: At the Bretton Woods Conference, which created the World Bank and International Monetary Fund (IMF), there is talk of a third organization, the International Trade Organization (ITO). 1947: As support for another international organization wanes in the U.S. Congress, the General Agreement on Tariffs and Trade (GATT) is created. The GATT treaty creates a set of rules to govern trade among 23 member countries rather than a formal institution. 1950: Formal U.S. withdrawal from the ITO concept as the U.S. administration abandons efforts to seek congressional ratification of the ITO. 1951–86: Periodic negotiating rounds occur, with occasional discussions of reforms of GATT. In the 1980‗s, serious problems with dispute resolutions arise. 1986–94: The Uruguay Round, a new round of trade negotiations, is launched. This culminates in a 1994 treaty that establishes the World Trade Organization (WTO). 1995: The WTO is created at the end of the Uruguay Round, replacing GATT. Figure 2: Timeline of GATT and the WTO GATT has been effective in liberalizing trade, however, it unable to address the expansion of trade in services, investment, and intellectual property. It has also been incapable of providing a strong and efficient system for dispute settlement. GATT eventually replaced by WTO in 1995 to managed these issues. WTO's Mission: To manage the rules of international trade and ensure the fair and equitable treatment of all members through negotiations and trade dispute settlements (WTO, 2020). "The WTO was born out of negotiations; everything the WTO does is the result of negotiations" Functions of WTO: To implement trade agreements To provide forum for trade negotiations To handle trade disputes To monitor national trade policies To provide technical assistance and training for developing countries To cooperate with other international organizations Principles of Trading System under WTO The trading system should be … (WTO, 2015) Page | 43 without discrimination — under WTO, member countries must not discriminate against any of their trading partners (giving them equally ―most-favoured-nation‖ or MFN status); and it should not discriminate between its own and foreign products, services or nationals (giving them ―national treatment‖); 'Most-favoured-nation or MFN' treatment. The term 'most-favoured' sounds like an opposition. It suggests a special treatment, but under WTO, it actually means non-discrimination and to treat everyone equally, where every member treats their trading partner as the most-favoured. For instance, if a country improves the benefits that it gives to one trading partner, it has to give the same ―best‖ treatment to all the other WTO members so that they all remain ―most-favoured‖. National treatment. This means imported and locally-produced goods should be treated equally — at least after the imported goods have entered the market and been cleared by custom custody. This likewise should apply to foreign and domestic services, and in the protection of intellectual property rights e.g. trademarks, copyrights and patents. However, trade without discrimination has an exception. Specifically, the WTO agreements allow countries to have a regional trading bloc (e.g. ASEAN Free Trade Area (AFTA), European Union, and NAFTA) to provide special privileges for trade among member countries within the bloc. free — trimming down of trade barriers to promote trades among countries through negotiation. The barriers concerned include the tariff (or custom duties) and non- tariff barriers such as import bans or quotas that restrict the quantities of imports selectively. predictable — this is through binding and transparency. In the WTO, when countries acknowledge the opening of their market to goods and services, they ―bind‖ their commitments. Under the goods, these bindings amount to ceilings on customs tariff rates. Thus, if a country agrees to a ceiling for tariff rates on imported products, it cannot unilaterally increase its rates beyond the ceiling without attracting reciprocal action from other countries. more competitive — this discourages ―unfair‖ practices such as dumping (exporting at a low price to increase market share) and export subsidies. The WTO is occasionally described as a ―free trade‖ institution, but according to WTO itself, it is not accurate. The WTO system allows tariffs but in limited circumstances and in other forms of protection. Specifically, it is a system of rules dedicated to open, fair and undistorted competition (WTO, 2015). The WTO system therefore seeks to promote fair trade among member countries even if it allows countries to maintain

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