TCW Prelims Reviewer PDF - Global Economy & Globalization

MODULE 1: Introduction to Globalization 3.​ Business outsourcing 1.​ Rich countries will become richer, History of Globalization 4.​ Education while the poor become poorer. ​ It is a fairly recent concept a...

MODULE 1: Introduction to Globalization 3.​ Business outsourcing 1.​ Rich countries will become richer, History of Globalization 4.​ Education while the poor become poorer. ​ It is a fairly recent concept and 5.​ Mass media 2.​ Trade barriers are not really vocabulary. eliminated. ​ Emerged forcefully in the 1990s. Advantages of Globalization 3.​ Jobs are lost in developed countries ​ Its processes are as old as history 1.​ Reduce trade barriers (like tariffs) and transferred to lower cost itself because the human race has 2.​ Represents free trade countries. always engaged in: (1) cultural 3.​ Competition among countries 4.​ Workers in developed countries like exchange; (2) dissemination of 4.​ Change for poor countries to the United States face pay-cut knowledge; and (3) trade of goods develop demand from employers who and services. 5.​ Globalization and democracy will go threaten to export jobs. ​ Important developments in the early hand in hand 5.​ Large Multinational corporations part of the 20th accelerated these 6.​ Worldwide market (MNCs) put up tax havens in other processes. 7.​ World market is created instead of countries to avoid taxes. compartmentalized power sector 6.​ Multinational corporations are Globalization = the intensification and 8.​ Influx of information between accused of: social justice, unfair expansion of politics across the globe. countries working conditions, and lack of 9.​ Cultural intermingling concern for the environment. Three (3) Dimensions of Globalization 10.​Financial interest, corporations and 7.​ Multinationals are increasingly Political Globalization government are trying to sort out influencing political decisions. ​ It refers to the intensification and ecological problems 8.​ Technologies are at risk of being expansions of political relations across the 11.​People have become more open copied or stolen. globe. and tolerant towards each other 9.​ Globalization is not working for the Economic Globalization 12.​Speedy travel, mass majority of the world. ​ It refers to the widespread communications, and quick 10.​Globalization leads to incursion of international movements of goods, capital, dissemination of information through communicable diseases like HIV or services, technology, and information. the internet AIDS. Social Globalization 13.​Labour can move from one country 11.​Leads to exploitation of labor. ​ It pertains to human interactions to another to market their skills 12.​Social welfare schemes are under within cultural communities encompassing 14.​Sharing technology with developing great pressure in developed topics like family, religion, work, and nations will help them progress countries like deficits and job losses. education. 15.​Transnational Companies (TNCs) installing plants in other countries MODULE 2: The Global Economy Causes of Globalization provide employment 1.​ Technological advances A. Definition of Economic Globalization 2.​ Policies that encourage international Disadvantages of Globalization As defined by Manfred Steger, business relations globalization refers to the expansion and intensification of social relations and economic processes and economic reduced transaction costs and bolstered consciousness across world-time and relations to more and more countries and by both internal and international exchange. world-space (Claudio, p.7). It refers to deepening the economic interdependence The relatively short period before World War worldwide interconnectedness of all aspects among them. I (1870-1913) is often referred to as the of social life. It is a multidimensional "golden age" of globalization, characterized phenomenon (Giddens, 1999). B. History of Economic Globalization by relative peace, free trade and financial For anthropologist Arjun To Grills and Thompson (2001), and economic stability (O'Rourke and Appadurai, different kinds of globalization globalization began since homo sapiens Williamson, 1999). occur on multiple and intersecting began migrating from the African continent According to historians Dennis dimensions of intersections which he calls to populate the rest of the world. Flynn and Arturo Giraldez, the age of “scapes” such as ethnoscapes, Frank and Grills (1993) considered globalization began when “all important mediascape, technoscape and ideoscape the Silk Road (Asia, Europe, Africa) the populated continents began to exchange (Claudio and Abinales, 2018). best example for archaic globalization 5,000 products continuously and their values According to one of the most often years ago. were sufficient to generate crucial cited definitions, economic globalization is a Adam Smith (1776) considered the impacts on all trading partners.” They historic process, the result of human discovery of America by Christopher traced this back in 1571 with the innovation and technological progress. It Columbus in 1492 and the discovery of the establishment of galleon trade that refers to the increasing integration of direct sea route to India by Vasco de Gama connected Manila in the Philippines and economies around the world through the in 1498 as the two (2) greatest Acapulco in Mexico. This was the first time movement of goods, services, and capital achievements of human history. the Americas were directly connected to across borders. The term sometimes also According to Gereffi (2005), if the Asian trading routes (as cited by Claudio refers to the movement of people (labor) global economy did exist during 1500 to and Abinales, 2018). and knowledge (technology) across 1800, it was only in the sense of trade and international borders (as cited by Benczes, exchange rather than production. Countries C. The International Monetary System (IMS) IMF 2008). were mostly self-sufficient and autarkic, the According to Salvatore (2007), the For Benczes (2014), economic UK and the Netherlands being the only international monetary system refers to globalization can thus have several exceptions. rules, customs, instruments, facilities, and interconnected dimensions such as the According to Maddison (2001), the organizations for affecting international following: (1) The globalization of trade of real breakthrough came only in the 19th payments. In the liberal tradition, the main goods and services; (2) The globalization of century. The annual average compound task of IMS is to facilitate cross-border financial and capital markets; (3) The growth rate of world trade saw a dramatic transactions involving trade and investment. globalization of technology and increase of 4.2% between 1820 to 1870, To Cohen (2000), IMS is, however, communication; and (4) The globalization of and was relatively high, at 3.4% between more than just money or currencies; it also production. 1870 and 1913. reflects economic power and interests as To Szentes (2003), it is a process By 1913, trade was equal to 16-17% money is inherently political, an integral part making the world economy an “organic of world income because of the transport of high politics of diplomacy. system” by extending transnational revolution: steam ships and railroads The Gold Standard Hampshire (US) in July 1944. Delegates of Global Keynesianism (Claudio and To Einaudi (2001), the origin of the 44 countries managed to agree on adopting Abinales, 2018). first modern – day IMS dates back to the an adjustable peg system, the Shortly after the Bretton Woods, early 19th century when the UK adopted gold-exchange standard. The US dollar many countries committed themselves to gold mono-metallism in 1821. Half a century was the only convertible currency of the further economic integration through the later, in 1867, the European nations, as well time, so the US committed itself to sell and General Agreement on Tariffs and Trade as the United States, propagated a purchase gold without restrictions at US$35 (GATT) in 1947. GATT’s main purpose was deliberate shift to gold at the International an ounce. All other participating but not to reduce tariffs and other hindrance to free Monetary Conference (IMC) in Paris. Gold convertible currencies were fixed to the US trade (Claudio and Abinales, 2018). was believed to guarantee a dollar (Benczes, 2014). In the 1970s, the prices of oil rose non-inflationary, stable, economic Delegates agreed on the sharply as the result of the Organization of environment, a means for accelerating establishment of two (2) international Arab Petroleum Exporting Countries’ international trade. institutions. The International Banks (OAPEC or OPEC) imposition of an According to Meisser (2005), Reconstruction and Development (IBRD embargo because of the US and its allies’ Germany joined the IMS in 1872, France in or World Bank) became responsible for support to the Israeli military during the Yom 1878, United States in 1879, Italy in 1884, post-war reconstruction, while the explicit Kippur War. When stock-markets crashed in Russia in 1897 and roughly 70% of the mandate of the International Monetary 1973-74 after the US stopped linking the nations participated in the gold standard just Fund (IMF) was to promote international dollar to gold, the Bretton Woods system before the outbreak of World War I. financial cooperation and buttress was dissolved (Claudio and Abinales, During World War I, when countries international trade. The IMF was expected 2018). depleted their gold reserves to fund their to safeguard the smooth functioning of the armies, many were forced to abandon the gold-exchange standard by providing The Washington Consensus gold standard. Since Europeans have low short-term financial assistance in case of A new economic thinking was gold reserves, they adopted floating temporary balance of payments difficulties beginning to challenge the Keynesian currencies that were no longer redeemable (Benczes, 2014). Today, these international system in the 1970s. Friedrich Hayek and in gold (Claudio, 2018). financial institutions are key players in the Milton Friedman argued that the global economy. governments’ practice of pouring money The Bretton Woods System and its The Bretton Woods system was into their economies had caused inflation by Dissolution largely influenced by the ideas of British increasing demand for goods without The dramatic consequences of the economist John Maynard Keynes who necessarily increasing supply. They beggar thy-neighbor policies of the inter-war believed that economic crisis occurs not believed that government intervention in period and the wish to return to peace and when a country does not have enough economies distort the proper functioning of prosperity impelled the allied nations to start money, but when money is not being spent the market. Critics labelled this thinking as negotiating about a new international and, thereby, not moving. When economies neoliberalism (Claudio and Abinales, monetary system in the framework of the slow down, according to Keynes, 2018). United Nations Monetary and Financial governments have to reinvigorate markets The 1990s saw the triumph of the Conference in Bretton Woods, New with infusions of capital. This is known as neo-liberal and pro-market economists. The Washington Consensus is a set of 10 Economic Community was established by market economy. To Brodie (1996), economic policy reform packages set by Germany, France, Italy, Netherlands, governments are acting as the midwives of Washington-based institutions such as the Belgium and Luxembourg. The original six globalization. International Monetary Fund (IMF), World (6) founding members created a common Milner and Keohane (1996) admit states are Bank (WB), United States Department of market where goods and services, capital not influenced uniformly by globalization. the Treasury and eventually by the World and labor moved freely. According to Gereffi (2005), the major Trade Organization (WTO). The term was The collapse of the Bretton Woods players of the present global economy are first used in 1989 by English economist system led to the setting up of the European the transnational corporations (TNCs) which John Williamson. Monetary System (EMS) in 1979. account roughly two-thirds of world export. The following rules are set under the The European Union (EU) was formally These TNCs are concerned more with Washington Consensus: established when the Maastricht Treaty profits than with assisting the social 1.​ Fiscal policy discipline came into force in 1993. It founded the programs of the governments hosting them. 2.​ Effective public spending European Economic and Monetary Union The term “race to the bottom” refers to 3.​ Tax reform (EMU). The members abandoned their countries’ lowering their labor standards, 4.​ Competitive exchange rates national currencies and delegated monetary including the protection of workers’ 5.​ Trade liberalization policy to the European Central Bank (ECB) interests, to lure foreign investors seeking 6.​ Financial market in 1999. Euro became the second most high profit margins at the lowest cost liberalization widely used reserve currency (European possible. Government weakens 7.​ Trade liberalization of foreign Commission, 2008). environmental laws to attract investors, direct investment creating fatal consequences on their 8.​ Privatization D. Impact of Economic Globalization ecological balance and depleting them of 9.​ Deregulation To what extent is the nation-state still a their finite resources like coal, oil and 10.​Security of property rights relevant actor in economic globalization is a minerals (Claudio and Abinales, 2018). major topic of current debates. According to According to Bairoch (1993), contemporary The European Monetary Integration Ohmae (1995), states ceased to exist as globalization is, however, considered to be a The United States started to primary economic organization units in the myth. More concerns have been raised with advocate an economically and militarily wake of a global market. regard to its impact on the worldwide strong Germany and Western Europe. The To Reich (1991), globalization transforms distribution of income. Marshall Plan, in 1948, was administered by the national economy into a global one Dollar and Kraay (2002) argue that only the Organization for European Economic where there will be no national products or non-globalizer countries failed to reduce Cooperation, the predecessor of the technologies, no national corporations, no absolute and relative poverty in the last few Cooperation for Economic Cooperation national industries. decades. On the other hand, countries that and Development (OECD). The economic Boyer and Drache (1996) admit that have embraced globalization (trade growth resulted in regional cooperation globalization is redefining the role of openness) have benefited from openness which established the European Coal and nation-state as an effective manager of the considerably. Steel Community in 1951. After the signing national economy. The state is the main of the Rome Treaty in 1957, the European shelter from the perverse effects of a free The World Bank (2002) claimed that Marketing Integration = fusing of markets -​ Technological change helped to globalization can indeed reduce poverty but into one. integrate markets because of steam it definitely does not benefit all nations. powered transport invention According to Maddison (2003), the ratio of Global Market Integration = price Great Depression of 1930s the richest region’s GDP per capita and that differences between countries are -​ Governments imposed tariffs, which of the poorest was only 1.1 in 1000, 2 in eliminated as all markets become one. were intended to switch the demand 1500 and still 3 in 1920. It widened to 5 in for domestically produced goods 1871 and stood at 9 at the outbreak of WWI. Market 1 + Market 2 = Single Market In 1950, it climbed to 15 and peaked to 18 Smoot-Hawley Tariff = enacted in the US, at the turn of the new millennium. History of Global Market Integration which raised tariffs on imported goods. Bairoch (1993) said that while in the First Millenium BC developed part of the world, industrial -​ Long distance trade existed for -​ Tariffs reduced demand for foreign revolution and intensified international centuries goods. relations reinforced growth and -​ Driven by growing population and -​ Foreign countries retaliated that development on an unprecedented scale, income worsened the effects of the the rest of the world did not manage to -​ Created a demand for new products depression of 1930s. capitalize on these processes. He claimed 1820s -​ It took decades to rebuild the world that the industrialization of the developed -​ Globalization took off economy. countries led to the de-industrialization of -​ Price differences started to close-up End of the 20th century the developing countries. because of: -​ Markets are more integrated as The best critical approach to the prevailing 1.​ Transport Revolution transportation cost have continued social division of labor and global a.​ Steamship to fall inequalities is offered by world system b.​ Railroads -​ Most tariffs have been scrapped analysis. This claims that capitalism under c.​ Invention of altogether globalization reinforces the structural refrigeration 1970s patterns of unequal change. According to 2.​ Opening of Suez Canal -​ Trend was toward a freer flow of Wallerstein (1983), capitalism, a historical a.​ Slashed the journey capital across borders social system, created a dramatically time between Europe -​ Liberalization of capital markets, diverging historical level of wages in the and Asia where funds for investment can be economic arena of the world system. Thus, borrowed the growing inequality, along with economic Eve of World War I and political dependence, are not -​ Global economy was highly independent at all from economic integrated Problems in Global Market Integration globalization. -​ Unprecedented flows of capital, ​ Institutional differences between goods, and labor across borders countries MODULE 3: Market Integration 19th century onwards ​ Incompatibility with democracy and sovereignty  ​ Removal of institutional variations ​ Based on this definition, the modern between countries state has four (4) elements. B. The (origin of) Interstate System ​ It suffocates countries’ economic 1.​ It exercises authority over a specific 1. The Peace Treaty of Westphalia development population or citizens. (Germany) Advantages of Global Market Integration 2.​ It governs a specific territory. ​ This was a package of treaties that ​ Harmonization of institutions across 3.​ State has a structure of the ended the 30 years European wars of countries government that sets rules that religion (1618 to 1648). European ​ Brings prosperity people follow. States—the Holy Roman Empire, Spain, 4.​ Most crucial: sovereignty. France, Sweden, and the Dutch Module 4: Global Interstate System Sovereignty = supreme power of the state Republic—agreed to respect one another’s to command and enforce to its will from territorial integrity. A. Definition of nation-state people within its jurisdiction and to have ​ The three (3) core points of the Nation = Schotle (2000): has four (4) freedom from foreign control; it is not Westphalian Treaty are the following: general features: absolute in practice because of the a.​ The principle of state sovereignty; 1.​ A nation encompasses a large development of internal relations and b.​ The principle of legal equity of population. consequently, of international law. states; and 2.​ A nation is a form of community by c.​ The principle of non-intervention of attachment to a specific territorial ​ Nation and state are closely one state in the internal affairs of homeland. related. It is the state that rules over a another. 3.​ A nation defines itself through an nation. ​ The earliest challenge to the emphasis of cultural attributes that Westphalian system was Napoleon set it apart from other people. World Politics = has four (4) attributes: Bonaparte, emperor of the French Empire. 4.​ Nations are mutually constitutive. 1.​ There are countries or nation-states He sought to spread the principles of the Benedict Anderson (1983): an that are independent and govern French Revolution across Europe by imagined community; it is limited because it themselves. launching the Napoleonic Wars between does not go beyond a given boundary and 2.​ These countries interact with each 1803 to 1815. The Napoleonic code forbade because rights and responsibilities are other through diplomacy birth privileges, upheld freedom of religion mainly the privilege and concerns of the (negotiations). and meritocracy in government service. citizens of the nation. 3.​ There are international organizations like the United Nations that 2. The Concert of Europe (1815 to 1914) State = James Wilford Garner: a facilitate these interactions. ​ The main aim was to restore the community of persons, more or less 4.​ International organizations take on Westphalian system. Alliances of “great numerous, permanently occupying a definite lives on their own; for example: the powers” of Austria, Prussia, Russian portion of territory, having a government of UN has task-specific agencies like Empire, and the United Kingdom agreed to their own to which the great body of the World Health Organization maintain the “balance of power” (no one inhabitants render obedience and enjoying (WHO) and the International Labor state is strong enough to dominate all freedom from external control. Organization. others), and would support each other if any achievement is the birth of task-specific 1943. It was a product of the Bolshevik revolutions broke out. international organizations like the World victory in Russia (USSR) under the ​ Sir Klemens von Metternich, an Health Organization (WHO) and the leadership of Vladimir Lenin. It became a Austrian diplomat, was the architect of the International Labor Organization (ILO). tool to promote revolution, a central body for Concert of Europe. These two interstate all Communist parties across the world. It systems divided the world into separate, 2. Social Internationalism dissolved in 1943 to appease Allied powers. sovereign nation-states. ​ The main proponent of Socialist Communist Internationalism has weakened Internationalism was Karl Marx. He did not since the dissolution of the USSR in 1991. C. Internationalism believe in nationalism (rooted in domestic ​ Internationalism has been brought concerns). He placed a premium concern ​ The United Nations (UN) propagated about by the Peace Treaty of Westphalia on economic equality. liberal internationalism since the end of and the Concert of Europe various He argued that the world is divided World War II to this day. sovereign states and people desire for into classes: greater global cooperation and unity. 1.​ The capitalist class or the owners ​ During the period of the Cold War, ​ Internationalism is divided into the of the factories and other means of the French demographer Alfred Sauvy following categories: production. coined the term Third World to describe the 1. Liberal Internationalism 2.​ The proletariat class or those who economically less-developed states that ​ The well-known liberal work for the capitalists. tended to share colonial past. They adopted internationalists are the following: ​ To Marx, the proletariat had no foreign policies based on non-alignment. In ​ 1.1 Immanuel Kant (German) nation. Its battle-cry is “Workers of the 1955, the Bandung Conference was imagined a form of “global movement”. World Unite”. He opposed nationalism attended by 29 countries which agreed to ​ 1.2 Jeremy Bentham (British) because it prevented the unification of the combat colonialism and neocolonialism by advocated the creation of “international law” world's workers. either the US or the USSR. This formally that would govern the interstate relations. ​ The Socialist International (1889 to gave birth to the non-aligned movement, a ​ 1.3 Giuseppe Mazzini (Italian) 1916) was an organization of labor and Mazinnian internationalism for believed that a free, unified nation-states socialist parties, mainly in Europe. Among decolonizing countries. should be the basis of an equally free, its achievements are the 8-hour working cooperative, international system. day, International Women’s Day, and ​ Today, the communist countries ​ 1.4 Woodrow Wilson (USA) International Labor Day on May 1. Its have almost totally vanished, thus making forwarded the “principle of parties became major players in the the term Third World obsolete. Now, the self-determination”. He became a notable electoral politics of Europe. In 1916, it terms Global North (the wealthy countries advocate of the League of Nations. collapsed when its member-parties previously known as the First World) and supported the war efforts of their respective the Global South (the less-developed League of Nations = founded after WW1 states. countries along the equator and in the in 1919; there were 58 members; main Southern Hemisphere) are popular. objective was to maintain world peace ​ The Communist International through international arbitration; primary (Comintern) was established in 1919 until D. The State as the Primary Actor in World world order might be emerging in the course more than one state or region when there is Politics of contemporary accelerated globalization, no power to enforce compliance. Schotle (2000): the sovereign, territorial the state has remained a major part of it. state has been the lead actor on the world Institutions of Global Governance stage for nearly four centuries. In some Module 5: Contemporary Global 1.​ United Nations respects, it is still flourishing because many Governance or World Governance 2.​ International Criminal Court people look to the state as a source of 3.​ World Bank security, welfare, and identity. Yet, Global Governance = movement towards ​ With limited or demarcated power to numerous states are failing to fulfill these political cooperation among transnational enforce compliance. traditional purposes, leading scholars to ask actors aimed at negotiating responses to whether the nation-state will remain capable problems that more than one state or region United Nations of addressing once considered its sole experience. ​ Atlantic Charter prerogative. With national boundaries ​ = process of designating laws, rules, ​ August 1941 becoming increasingly porous and policy or regulations intended for a global scale. ​ President Roosevelt and Prime problems transcending political frontiers, the ​ = used to designate all regulations Minister Churchill managerial capabilities of the state have intended for organization and centralization ​ Principles of war and peace been severely strained, regardless of form of human societies. ​ Establishment of a wider and of government. ​ = management of global processes permanent system of general ​ Auguste Comte, a 19th century in the absence of a global government. security sociologist, argued that human beings ​ = refers to concrete cooperative ​ Dumbarton Oaks, Washington D.C. create institutions to deal with serious problem-solving arrangements, many of ​ Blueprint for a better world problems. When they are no longer able to which increasingly involve not only the organization than the League of perform this vital function, they are replaced United Nations of states but also others, Nations by other institutions. Today, as the namely international secretariats and other ​ Yalta Conference in Crimea (Feb Westphalian state seems unable to cope non-state actors. 1945) with the many transnational problems, is the ​ = refers to the way in which global ​ President Roosevelt nation-state becoming obsolete. affairs are managed. ​ Prime Minister Churchill ​ = an international process of ​ Premier Stalin Dhonte and Kapur (1997): the Bretton consensus - forming which generates ​ Approved the proposals drafted at Woods institutions have recognized the guidelines and agreements that affect the Dumbarton Oaks Conference as a basis importance of the state for an effectively national government and international for drawing-up the Constitution of the United functioning global market. cooperation. Nations. ​ = global governance is not a world Purposes of the United Nations Scholte (2000): the rise of government. 1.​ To maintain international peace and supra-territoriality has encouraged changes ​ = refers to the political interaction security. in the character of the state without that is required to solve problems that affect 2.​ To develop friendly relations among undermining the state itself. Whatever new nations based on equal rights and  self-determination of people and to Principal Organs of the United Nations ○​ The principal judicial organ of take other appropriate measures to ​ General assembly the United Nations which sits strengthen peace. ○​ Main deliberative organ of at the Hague in the 3.​ To achieve cooperation in solving the United Nations. Netherlands. international, economic, social, ○​ Place where all member ​ Secretariat cultural, and humanitarian problems. countries meet on equal ○​ It performs the extensive 4.​ To promote and encourage respect terms to consider the administrative functions of and human rights and fundamental problems of the world before the United Nations. freedoms for all without distinction to it. Challenge to the United Nations race, sex, language, or religion. ​ Security council ​ How it can be an effective channel to 5.​ To be the center for harmonizing the ○​ The agency that can make attain lasting peace and security in the actions of nations in achieving these important decisions and take world. ends. decisive actions for the Basic Principles underlying the United Charter places upon it the ​ Global governance corresponds to Nation responsibility of maintaining the interrelationship among the different 1.​ All member states are sovereign and peace and security. players in political globalization, such as the equal. ​ Economic and social council states and various international 2.​ All members are pledged to fulfill ○​ Seeks to build a world of organizations that are involved in formal or their obligations under the Charted prosperity, stability, and informal undertaking for the promotion of in good faith. justice. common good. The United Nations is an 3.​ In all international relations, no ○​ It makes studies, reports, intergovernmental organization whose member shall use force or threaten and recommendations on stated purposes are to maintain force against the territory and international economics, international peace and security, develop political independence of any state social, cultural, educational, friendly relations, achieve international or behave in a manner inconsistent health, and related matters, cooperation, and act as a centre for with the purposes of the United and also with respect to harmonizing the actions of nations. Nations. human rights and ​ The United Nations acts as the 4.​ As it is necessary to preserve peace fundamental freedom for all. facilitator or a bridge in reaching out to the and security, the United Nations ​ Trusteeship council political and economic differences of the shall ensure that countries which are ○​ Supervises and administers states on the ground that it is not a state, not members act in accordance with trust territories. but an entity comprising 50 states. When the principles of the Charter. ○​ These are usually territories the world was devastated by World War II, 5.​ The UN shall not intervene in of non-self governing people countries from different parts of the world matters which are essentially within who voluntarily placed came up with a resolution of creating an the domestic jurisdiction of any state themselves under the control international organization that will serve as except when it is acting to enforce of the United Nations. a mechanism for the maintenance of world peace. ​ International Court of Justice peace. ​ The founding of the United Nations was not easy. There were several steps that led to its creation: 1. Moscow Declaration (Oct. 19 - Nov. 1, 1943) ​ Its principle was the establishment of a general international organization based on the sovereign equality of states. 2. Dumbarton Oaks Conference (Aug. 21 - Oct. 7, 1944) ​ Dumbarton Oaks plan, which was the blueprint of the proposed organization was drawn. 3. Yalta Conference (Feb. 3 - 11, 1945) ​ This conference was held at Yalta in Crimea. It was attended by President Roosevelt, Premier Stalin, and Winston Churchill. They agreed to hold a conference of Allied countries in San Francisco, California. 4. San Francisco Conference (April 15 - June 26, 1945) ​ This was attended by 50 countries, including the Philippines. After two months of discussion, the delegates approved the charter. 5. October 24, 1945 ​ The charter was approved by majority of the UN members.