TCW Reviewer: Introduction to Globalization - PDF

TCW REVIEWER UNIT 1: INTRODUCTION TO THE STUDY OF GLOBALIZATION We can divide the modern history into three main periods i.e. the early modern period, the late modern period and the contemporary period. 1945 - This period is the most relevant to the present time and scenario whereas people witness...

TCW REVIEWER UNIT 1: INTRODUCTION TO THE STUDY OF GLOBALIZATION We can divide the modern history into three main periods i.e. the early modern period, the late modern period and the contemporary period. 1945 - This period is the most relevant to the present time and scenario whereas people witnessed the age of information and technologies. This shrinking of the world has taken place because of the combination of human feats/achievements including the modern transportation, information and communication technology, advanced transportation and medical innovations. This interconnectedness of human beings seem to be the common understanding of a phenomenon called globalization. Globalization – is a phenomenon used to describe the growing interdependence of the Other important concepts related to world’s economies, cultures and populations. Globalization Globalization According to some Scholars: Liberalization. This refers to the removal of barriers and restrictions imposed by national governments to create an open and borderless world economy. Internationalization. This refers to activities by entities such as corporations, states, international organizations, private organizations and even individuals with reference to Globalization According to Various Disciplines: national boarders and national governments. Glocalization. This term is used to describe a product or service that is developed and distributed globally Universalization. Denotes a process of spreading various objects, practices and experiences to the different parts of the world. If Western modernity spreads and In the absence of a generally accepted destroys local cultures, this variant definition of globalization, it can be seen or of universalization is called understood as either a process, a condition or Westernization, Americanization or Mcdonaldization. an ideology.  Universalization. Denotes a system. This system creates a geographic process of spreading various objects, practices and experiences division of labor. to the different parts of the world. If Core Nations, are those most modernized Western modernity spreads and nations, having diversified economies and destroys local cultures, this variant stable internal politics. Regarded as powerful of universalization is called and developed centers of the system. Westernization, Americanization or Comprises of Western Europe, North America, Mcdonaldization. and Japan. Theoretical Paradigms associated with The Peripheral Nations referring to those Globalization nations in the world system that are forced to specialized in the export of unprocessed raw materials and food to the core nations. This also refers to regions that have been forcibly subordinated to the core through colonialism or other means. It includes Latin America, Africa, Asia, the Middle East, and Eastern Europe. As globalization broadened, its literature has also boomed and resulted in the generation of Semi-peripheral, these are nations that fall in several theories and conceptual frameworks. between the core and peripheral nations, being Each of these theories gives us a distinct way most industrialized than the peripheral but less of interpreting social realities that form part of industrialized in than of the core. states and the phenomenon of globalization. regions that were previously in the core and are moving down the hierarchy, or those that were previously in the periphery and are moving up. World System Theory Like, Argentina, China India, Brazil, Mexico, Immanuel Wallerstein argues that the modern Indonesia, and Iran. world system emerged as early as the 1500s through a series of economic transitions and now connects all countries through a single division of labor. He pointed out that core Global Capitalism Theory countries in the developed world extract labor This theory treats globalization as a novel and raw materials from peripheral ones. Capital stage in the evolving system of the world according to Wallerstein, now accumulates capitalist. According to Sklair (2000, 2002), through an ever-expanding network of trade this theory espoused the “transnational routes, property rights, and labor agreements practices” (TNPs) as operational categories for that simultaneously connect the world while the analysis of the transnational phenomena. reinforcing its inequalities. adheres the idea Like for example TNPs: monetary remittances that capitalism has created a global enterprise migrant entrepreneurship collective transfer of that swept the 19th century leading to the resources or products. present time. Example of Transnational Capitalist Class: Executives of transnational Characteristics of World System Paradigm Corporations Globalizing bureaucrats The centrality and immanence of the inter-state Politicians, Professionals system and inter-state rivalry to the Consumerist Elites in the media maintenance and reproduction of the world Commercial sector According to Robinson (2003, 2004), risks of their activities intentionally, or, more Globalization creates new forms of transnational class relations across borders often than not, unintentionally produce. and new forms of class cleavages globally and within countries, regions, cities, and local David Harvey, in his now-classic 1990 study communities, in ways quite distinct from the “The Condition of Post-Modernity”, argues that: old national class structures and international globalization represents a new burst of time- class conflicts and alliances. space compression produced by the very dynamics of capitalist development. He also state that it is this compression of social time– The Theory of Network Society School of space through economic activity that is the Taught driving force behind globalization. The term “time–space compression” refers to the way the acceleration of economic activities leads to This paradigm does not subscribe to the the destruction of spatial barriers and contention that capitalism fuels globalization; distances. Instead, it put forth the premise that technology Saskia Sassen (1949), initiated that the and technological change are the causes that international spread of the notion of human comprise globalization. rights could override distinctions of nationality Manuel Castells wherein he suggests that the and citizenship. Under a global human rights rules of global capitalism have changed to regime, she argues that law must treat people embrace the new information technologies. as persons-qua-persons first, and citizens only Power now flows not from corporations or second. Moreover, she stated that, states, but through the informational flows and “globalization is more than its common codes that connect those corporations and representation as growing interdependence states and the world. Castells added that the and formation of self-evidently global advancement of the Information Age does not institutions. It also includes sub-national necessarily mean that the world has become spaces, processes, and actors. flat; rather with technological advance, he argues, come new global forms of inclusion, fragmentation, and integration. The Theory of Global Paradigm Anthony Giddens, another proponent of this Emphasizes the rapid growth of the mass theory, suggest that globalization has led to media and resultant global cultural flows and the creation of a ‘global risk society.’ Human images. Focuses on phenomena such as social and economic activities, especially in globalization and religion, nation and ethnicity, modernity, produces various risks such as global consumerism, global communications, pollution, crime, new illnesses, food shortages, and globalization of tourism. The concept market crashes, wars, etc. and societies have McDonaldization popularized by Ritzer become more responsible for managing the describes the sociocultural processes by which the principles of the fast-food restaurant came  New technology has provided the means for a to dominate more and more sectors of the US dramatic intensifying of and later world society. interconnections in the economy and the broader society. UNIT 2: THE GLOBAL ECONOMY Globalization is defined as the ongoing Formation and Role of Elites economic, technological, social, and political Elites are either defined relatively (they are integration of the world that began after the superior to the rest of their group) or defined Second World War. materially they possess more of a given asset, Shangquan (2002) defines economic whether material or symbolic, than others. globalization as an increasing interdependence Importantly, they are in both cases in a position of world economies as a result of the growing to exercise significant power concerning global scale of cross-border trade of commodities and processes and more power than non-elites. In services, the flow of international capital, and the concept of globalization refer to the global wide and rapid spread of technologies. corporate elite, in which they form transnational interlocking directorates, mostly coming from the "rich countries". Actors that Facilitate Economic Globalization Formation and Role of Instiution Globalization is taken primarily as an economic process (Abelos et.al 2019). Business organizations are aiming their produced product and services to meet not just local but international standards. These foster greater relationships among people across boarder and time and space. They form networks, groups of elites, and world organizations and The global economy refers to the serve as global actors that contributed unique interconnected worldwide economic activities insights into global politics, law, and economy. that take place between multiple countries. Szentes (2003) - economic Formation and Role of Networks globalization is a process of making the world economy an organic system by Economic Network, a combination of extending transnational economic individuals, groups, or countries interacting to processes and economic relations to benefit the community as a whole. These more and more countries and by networks also referring to the formation of an deepening the economic international organization such as APEC, interdependencies among them. ASEAN, UN, WTO, etc. and global business Benczes (2014) follows this definition organization, in which these organizations and emphasizes that he interpretation serve as networks of member countries in of the current trends in the world political, economic, socio-cultural, and even in economy. facing global problems like COVD 19 and global terrorism. In July 1944, representatives from the United States, Great Britain, France, Russia, and 40 other countries met at Bretton Woods, a resort in New  International Monetary Fund World Bank Important functions of IMF Important functions of WB Facilitate the cooperation of Aims to reduce poverty in middle- countries on monetary policy, income and creditworthy poorer including providing the necessary countries by promoting resources for both consultation sustainable development, through and the establishment of monetary loans, guarantees, and non- policy in order to minimize the lending-including analytical and effects of international financial advisory-services. crises. Tries to foster social reforms to Help stabilize exchange rates promote economic development, between countries. such the empowerment of women, building schools and health Provide a safeguard to members centers, provision of clean water of the IMF against balance of and electricity, fighting disease, payments crises. and protecting the environment. World Trade Organization General Agreements on Tariffs and Important functions of WTO Trade (defunct) Providing forum for trade Important functions of GATT before negotiations Avoid trade wars by raising Handling trade disputes protectionist barriers. Monitoring Members’ trade Aid economic recovery through policies reconstructing and liberalizing Providing technical assistance and global trade. training to developing and least developed economies Hampshire, to lay the foundation for the addressing the needs of developing world and post-war international financial economic its frailties and vulnerability to financial crises. system that gave birth to IMF, GATT, WB The IES’s are pillars of globalization. Designed and furthers with WTO. The main to help manage the international financial objectives of these economic systems is to system, they have taken on major roles as prevent another worldwide economic drivers of closer economic integration of all of cataclysm like the Great Depression, to aid the world’s countries, from the advanced to the the recovery of war-torn countries and to least developed. They have provided funds and foster economic cooperation among states. advice to assist countries with their economic The following are the functions of the development and policy-making. aforementioned economic systems. Globalization has brought the global economy into a wider range of perspectives and effects. International Economic System (IES) has Global economy before the way it is today, it been anchored in the neoliberal paradigm goes through a series of a process starting since 1980s. It involves reducing the from the ancient times up today. Remember government regulation in order to extend the that during the early times when civilization role of the private sector in the market and the began to develop, there has been a notable society. Global justice movements have sought series of engagement and interconnections to expose the inadequacies of the system in among people across the world. Starting from the silk road, a trade route GATT states that “All contracting parties must between China and the Mediterranean accord any advantage, favor, privilege, or promoted the exchange of ideas, goods like immunity granted to any product from any other silk, porcelain, which resulted in the exchange country immediately and unconditionally to all of cultures and beliefs. The economy back other members.” The concept of free trading is then was centered on expanding networks of another result of market integration. trading for the benefit of their own country, but mostly reliant on agricultural farmland Free Trade refers to a policy removing the especially in Eastern countries and barter trading. During the period of exploration and barriers in trading among to or more nations. colonization, economic activity focuses on Under this, goods and services can be bought finding gold and silver, this type of economic system refers to mercantilism. Eventually, this and sold across borders with little or no led to the rise of western powers like Spain, government tariffs, quotas, subsidies, or Portugal, England, and later on America, the prohibitions to inhibit their exchange. The Soviet Union, and Germany. After World War I a new global economic system emerges called Worlds Major Free Trade Areas are North capitalism. American Trade, Association of Southeast Asian Nations Free Trade Area, Southern Common Market, Common Market of Eastern and Southern Africa. There are also not free trade areas, but there are union and partnership Agreements, for example, are the European Union and Trans-Pacific Partnership. (World trade Organization, n.d.) What Explains the Rapid Market Integration in Recent Decades? First, perspective according to Garrett, “what we are witnessing today, is nothing new because the current level of market integration is only returning to those last era of Market Integration and Globalization economic internationalization the turn of the What is Market Integration? 20th century It is a process that refers to the expansion of The second perspective is the technological firms by consolidating marketing functions and activities under single management. For determinism, opposes that shrinkage of time example, the establishment of whole selling and space has been so intense and so facilities by food retailers, in these manners there is a concentration of decision making universal that there is essentially nothing that under one management. This also involves the can be done to stop it. This only means that price of related goods using the same currency, for example, the use of dollars in international technology changes the lives of people, trading, the Euro among European political, social, and economic systems across Nations. Market integration is also evident in the principle of the General Agreement on the world. Tariff and Trade GATT in 1945, Article 1 of the  manage this new economic order. (Zaide, Example, the transition from feudalism to 2015) capitalism, changing occupational and skills International Monetary Fund (IMF) structure of the labor in the labor force in the 20th century, the emergence of Post- This is an autonomous organization affiliated to industrialism in the Post- World War era, and the UNIO. From an initial strength of 31 the 24-hour global non-stop trading across the members, it now commands a 125- strong world. membership. The Third perspective is technological Functions of the IMF change, this involves big data, internet, 1. Works as a short-term credit machine learning, artificial intelligence, institution; robotics, 3D printing, biotechnology, 2. Provide for the orderly adjustment of nanotechnology, renewable energy exchange rates; technologies, satellite, and drone technologies. This impacted the political and socio-economic 3. Acts as a reserve base for member activities across the world. countries to borrow from 4. Provides foreign exchange loans against current transactions; The fourth perspective is the critical role of government in making policy. For example, 5. Provides international financial the formation of international organization and consultancy services. signing an agreement on trading among 6. Furthermore, the IMF promotes global member nations like GATT, WTO, etc. monetary cooperation and international financial stability. The role of IMF is to provide short-term Global Financial Institutions and Global loans to prevent devaluation and Market Integration retain the state’s fixed exchange rate in instances of the temporary balance Global Market integration paved the way for the of payments and deficits. emergence of global financial institutions that aided the nation-states in government and economic affairs. There are two major financial In addition, IMF assists countries that hit by international institutions: The World International Monetary Fund, and the World the crisis by providing financial support. So Bank. The formation of an international now, what are the situations that trigger a financial institution during Post-World War II are founded by groups of countries to promote crisis?(International Monetary Fund, n.d.) public and private investment to foster One is domestic factors, this includes economic and social development in inappropriate fiscal and monetary policies developing and transitioning countries. Allied which can lead to large economic imbalances powers came together in 1944 at the (large current account and fiscal deficit and conference known as Bretton Woods under the high level of external and public debt) an intellectual leadership of Harry Dexter White, exchange rate fix an inappropriate level, which US Senior Treasury official, and John Maynard can erode competitiveness and lead to Keynes. The conference planned new rules of persistent current account deficit and loss of new economic order to prevent countries official reserves and a weak financial system following the principle “beggar-thy-neighbour” which can create economic boom and busts. policies that had led to the Great Depression. It Political instability or weak institution can also also established the two key institutions, the trigger crises by exacerbating economic International Monetary Fund and World Bank to vulnerabilities. Another is external factors, this includes shocks ranging from natural disasters to the increase of the price of The Rise of Global Corporations commodities. This is also known as a global company, or any Whether the cause is domestic or external in company that operates in at least a country origin, crises can take many different other than the where it originated (LaMarco, forms: balance of payment problems occur 2018) when a nation is unable to pay for essential imports or service its external debt The global corporation has been existing for a repayments; financial crises stem from illiquid few centuries, the earliest of which were or insolvent financial institutions, and fiscal chartered around the sixteenth century in crises are caused by excessive fiscal deficits places like England, Holland, etc. At first, these and debt. Often, countries that come to the IMF corporations are said to be not-for-profit entities face more than one type of crisis as challenges to build institutions such as schools, hospitals in one sector spread throughout the economy. for public goods. Around the 17th century, Crises generally result in a sharp slowdown in these corporations focused on making money growth, higher unemployment, lower incomes, through profit. Their wealth was used for and greater uncertainty which causes a deep colonial expansion parts of Asia, Africa, and the recession. In acute crisis cases, defaults or Americas. The British merchant established restructuring of sovereign debt may become the British East India Company which unavoidable. monopolized trading in India. The Dutch East India Company was formed by the Dutch WORLD BANK Grants long-term loans for the economic merchant. The American Revolutionary War in development of less developed countries and 1776, and the publication of Adams Smith, the the reconstruction of war-torn countries in Europe. father of free trade theories, Wealth of Nations, argues that large business associations limit The functions of WB are: competition, and thus, the ending of colonial 1. Provides loan services to member monopoly. (Zaide, 2015) governments 2. Provides development loans on soft Multinational Corporations terms to poor member nations Also referred to as transnational corporations 3. Provides support to private or joint operate in more than one country. They act as sector projects modernizers of the world economy, promote 4. Provides insurance guarantees to efficiency and growth of the world economy, foreign investors promote regional agreements and alliances, 5. Setting investment-related disputes and increase money circulation in the economy among member nations through are some of the salient roles of MNC’s. (Ferrer, conciliation or arbitration.  billion dollars and increased 21% and diluted 2018). Western nations such as the United earnings per share was 1.38 dollars and States and the European Union member states increased 21%. Microsoft returned 7.9 billion dollars to shareholders in the form of dividends continued to dominate the world economy as and share repurchases in the first quarter of the financiers, producers, and consumers. Their fiscal year 2020, an increase of 28% compared to the first quarter of the fiscal year 2019. banking merchants, multinational corporations, and individual entrepreneurs dominated world Alphabet Inc. - The third biggest company in the world with a market capitalization of 902 finance and business. (Zaide and Zaide 2015, billion dollars is Alphabet Inc. In 2019 Alphabet p393) The new source of wealth came from the again delivered strong revenue growth, with intellectual properties and patents of Western revenues of 162 billion dollars, up 18% year over year. On capital returns, in the fourth inventors, including modern computers and quarter of 2019, the company repurchased 6.1 applications. American inventors like Bill billion dollars of shares, which was more than double the amount of repurchase in the fourth Gates, Steve Jobs, and Mark Zuckerberg quarter of 2018. As of year end, the company became the household names. The patented had 21 billion dollars remaining in the program. inventions as the Windows software, the iPod, Amazon - The company with a market iPad, iPhone, and Facebook. Thus the capitalization of 887 billion dollars is based in Seattle. Net sales increased 21% to 87.4 billion 20th century as also known as for new dollars in the fourth quarter of 2019, compared knowledge revolution.” a new “intellectual with 72.4 billion dollars in the fourth quarter of 2018. revolution,” or the computer revolution. Operating income increased to 3.9 billion WORLD’s 5 BIGGEST CORPORATE dollars in the fourth quarter 2019, compared with operating income of 3.8 billion dollars in GIANTS fourth quarter 2018. Net income in 2019 increased to 11.6 billion dollars, or 23.01 Apple - The company’s headquarters are in Cupertino, California. Apple, with a market dollars per diluted share, compared with net capitalization of 1.172 trillion dollars recently income of 10.1 billion dollars, or 20.14 dollars announced financial results for its fiscal 2020 per diluted share, in 2018. first quarter. The company posted quarterly revenue of 91.8 billion dollars, an increase of Berkshire Hathaway Inc. - Berkshire 9% from the year-ago quarter and an all-time Hathaway, with a market capitalization of 545.7 record, and quarterly earnings per diluted billion dollars is based in Omaha, Nebraska. share of 4.99 dollars, up 19%, also an all-time Berkshire earned 81.4 billion dollars in 2019 record. International sales accounted for 61% according to generally accepted accounting of the quarter’s revenue. principles. Microsoft Corporation - The computer tech The components of that figure are 24 billion company with a market capitalization of 1.101 trillion dollars produces, licenses, and supports dollars of operating earnings, 3.7 billion dollars dozens of software products and computing of realized capital gains and a 53.7 billion devices. Microsoft announced financial results for its fiscal 2020 first quarter as compared to dollars gain from an increase in the amount of the responding period of the last fiscal year. net unrealized capital gains that exist in the Revenue was 33.1 billion dollars and increased 14%, operating income was 12.7 billion dollars stocks the company holds and increased 27%, net income was 10.7 EMERGING ROLES OF MNCs useful means of improving international collaboration (National Research Council,2020) I. INCREASING INTERNATIONAL COMPANY ALLIANCES II. COMPREHENSIVE NATIONAL SECURITY Since the end of the Cold War, the world Most countries have been pursuing what we economic system has been strongly distorted call comprehensive national security for their by political intervention. Even though politically national interests. For example, Japan based oriented trade frictions are being heightened at MNCs have the strong belief in the coexistence the authority’s level between Japan and the that aims for mutual benefits for the United States, industrial leaders of the two advancement of social welfare. That means international locations are aggressively forming that local cultures and customs have to be strategic alliances and promotion pleasant respected and the unilateral enforcement of collaboration. This tide of corporate level domestic business and labor practices should competitive interdependence and world be avoided except as otherwise agreed upon alliance undertaking is steadily turning into a by both parties for their mutual benefit. We good sized issue in the world economy. Indeed, never underestimate the great benefits that it is paradoxical, but relying on company Japan has received from the U.S.-Japan alliances and interdependence is perhaps a Mutual Security Treaty. We do not deny the fact better method for growing industrial strength that the Japanese economy has advanced than financial nationalism. more rapidly than it otherwise would have. Moreover, the paradigm of modern However, Japan has also made extra efforts to technological innovation is rapidly changing. In make this possible within the framework of order to cope with the paradigm shift, many various restrictions. Many Japanese companies are forming strategic alliances companies have been restricted in their across national borders in order to survive. The businesses to peaceful applications for alliance network is so complex and tight that national security reasons. even nationalistic political pressure no longer LIST OF MAJOR COMPANIES THAT can break such alliances. We think this trend is DECLARED BANKRUPTCY very desirable for increasing international collaboration and for improving world peace. (Tucker,2020 of Forbes): International industrial collaboration is a strong Aeromedical, the largest weapon for comprehensive national airline in Mexico, filed on July 1, but security. The strategic business alliance is a planned to double its domestic flights and quadruple its international flights  in July compared with June as it is one remedy for companies that are unable ramps up operations following strict to pay their debts. coronavirus shutdowns. The Global Interstate System and Global The ALDO Group, a Governance Montreal-based shoe retailer that What is Global Interstate System? operates about 3,000 locations in more than 100 countries, filed on May The global interstate system is the whole 7 under pressure from store closures. system of human interconnections that develop Global Eagle, the company international relations among nation-states. that lets you surf the internet with in- These systems use mechanisms that govern flight Wi-Fi and watch movies in the the world to ensure the balance of power air, filed on July 22 to reduce its debt among the government and to avoid by $475 million as air travel has destructive competition. One of the sharply declined during the pandemic. mechanisms use is the formation of JCPenney filed on May 15, international organizations like the United weighed down by $4.2 billion in debt. Nations, and the international financial The prominent department store chain organization in which they facilitate relations has lost money for nine straight years, among states and promote international and its troubles were exacerbated by standards. the pandemic that forced its 850 On the other hand, modern politics is governed remaining locations to close. through nation-states. When we say state it NPC International, which is refers to a community of persons, more or less Pizza Hut’s largest franchisee with numerous, occupying a defined territory, about 1,200 locations and also possessing an organized government, and operates nearly 400 Wendy’s enjoying independence from external control. restaurants, filed on July 1 but planned On the other hand, Nation is defined as people, to keep its restaurants open. or aggregation of men, existing in the form of Fortunately, in the Philippines, no company an organized society, usually inhabiting a has filed for bankruptcy even after more than distinct portion of the earth. two months of community quarantine, The question now is, why is the world according to Labor Secretary Silvestre Bello organized the way it is? What are the historical III, although several companies have signified antecedents of contemporary world politics? opting for temporary closure. Under such circumstances, employees are still secured of Before the formation of sovereignty among their employment status. Filing for bankruptcy nations, the world was involved in two  to establish the precedent of peace reached by destructive wars, the Thirty Years War of the diplomatic congress and a new system of the Holy Roman Empire (1618-1648) and the political order in Europe that is now based upon the concept of co-existing sovereign countries Eighty Years War between Spain and the or known as the principle of Westphalian Dutch Republic ( Zaide and Zaide, 2015) sovereignty. This series of treaties were signed between May and October 1648 in held in The Thirty Years War of the Holy Roman Westphalian cities of Osnabruck and Munster. The peace negotiations involve a total of 190 Empire started as religious conflicts between delegations representing European powers. various Protestant and the Catholic States. When the Holy Roman Emperor Ferdinand II, Salient Points of Peace of Westphalia tried to impose religious uniformity and forcing his domains to accept Roman Catholicism. 1. The power taken by Ferdinand III in These resulted to fear and anger among contravention of the Holy Roman Northern Protestant states because the Empire’s constitution was stripped and imposition violated their rights as stipulated in returned to the rules of Imperial States the signed Peace Treaty of Augsburg. The 2. All parties would recognize the Peace conflict becomes a war not just of religions but of Augsburg of 1955, in which each of political powers and dominance. prince would have the right to determine the religion of his state, the Eighty Years War (1568-1648) also known as option being Catholicism, Lutheranism, Dutch Revolt. The Netherlands during the and Calvinism. This affirms the fourteenth and fifteenth century had been principle of ‘whose realm, his religion’ united under the Duke of Burgundy. It was inherited by Charles V, and became the Holy 3. Christians living in principalities where Roman Emperor and later on by Philip II of their domination was not the Spain. Various circumstances occurred during established church were guaranteed this period that caused dissatisfaction and the right to practice their faith in public unrest in the Netherlands. Just like the Thirty during allotted hours and in private at Years War, conflicts mainly focus on religion. their will The followers of John Calvin protested against 4. General recognition of the exclusive the imposition of the Holy Roman Empire that sovereignty of each party over its Catholicism must be the sole and only religion lands, people, and agents abroad, and to follow. In the course of history, this religious responsibility for the warlike acts of any conflict turns into a war of political power and of its citizens or agents dominance in Europe and the empire territories. IMPORTANCE OF PEACE OF WESTPHALIA The Thirty Years War and Eighty Years War did not end the conflicts in Europe but it was able The Peace of Westphalia helped us to Britain, Prussia, Russia, and Austria opposed understand and quantify the power of nation- states. French Empire and saw the collapsed of The treaty established new political norms and Napoleon Bonaparte in 1814, they started concepts of international political affairs and planning the postwar world. The Concert of dominance such as the legal equality of states, non-intervention, and a repudiation of the Europe also known as the Congress of Vienna principle of supra-nationalism. was the first of a series of international Supranationalism is defined as the voluntary meetings in which the purpose was to restore association of three or more independent states willing to yield some measure of the balance of power in Europe peacefully. This sovereignty for mutual benefit. later become the model of the first-formed For example, Europe has experienced strong international organizations such as the League centripetal and centrifugal forces throughout its of Nations in 1919 and the United Nations in history. From the Roman Empire to the European Union, the historical pattern of 1945. development in Europe is a model study in regional geography. From empire to nation- The Concert key points are reviving the power state and now to a union, the continent struggles to confront these cultural forces that of monarchy as a government system, return unite and divide. The EU is an example of what Christian values in Europe, repudiation of the supranationalism can produce. To compete in a global economy, the nation-states of Europe Napoleonic Code, and renewed peace in must cooperate and coordinate their industrial Europe through great power diplomacy. activities to support their high standard of living. The EU member states are a part of the elite “have” nations of the world. Global Politics and World War (Saylordotorg,2020) The main cause of war is not the nature of man, What happened to the international political but the nature of the international system itself. affairs after the Westphalia? (Cavendish, States are in competition for power, the 1988) international system will generate war like Kenneth Waltz who talks about war as The world faced a series of new events that something essentially related to the challenge the international order. The rise of international system being a balance of power in an anarchist system. As soon as we reach a power of Napoleon Bonaparte (1769-1821) certain order of balance, we will not fight. French emperor who sought to spread the (Baripedia,2020) principles of the French Revolution across Europe (Napoleonic Wars, 1803-1815) key World War I was the formation of Napoleonic code, where it pursued: Forbade birth privileges, freedom of World War I according to Martin (2020), is religion, meritocracy in government services known as the "war to end all wars," occurred and this event resulted to, a brief hegemony in between July 1914 and November 11, 1918. By Europe. the end of the war, over 17 million people had been killed, including over 100,000 American troops. While the causes of the war are infinitely more complicated than a simple Before World War I, several European timeline of events, and are still debated and countries had made competing imperialistic discussed to this day, the list below provides an claims in Africa and parts of Asia, making them overview of the most frequently-cited events points of contention. Because of the raw that led to war. materials these areas could provide, tensions around which country had the right to exploit CAUSES OF WORLD WAR 1 these areas ran high. The increasing Mutual Defense Alliances competition and desire for greater empires led Countries throughout the world have always to an increase in confrontation that helped push made mutual defense agreements with their neighbors, treaties that could pull them into the world into World War I. battle. These treaties meant that if one country was attacked, the allied countries were bound Militarism to defend them. Before World War 1 began, the following alliances existed: As the world entered the 20th century, an arms Russia and Serbia race had begun, primarily over the number of Germany and Austria-Hungary each country's warships, and the increasing France and Russia size of their armies in countries began, training Britain and France and Belgium more and more of their young men to be Japan and Britain prepared for battle. The warships themselves When Austria-Hungary declared war on increased in size, number of guns, speed, Serbia, Russia got involved to defend Serbia. method of propulsion, and quality armor, Germany, seeing that Russia was mobilizing, beginning in 1906 with Britain's HMS declared war on Russia. France was then Dreadnought. Dreadnought was soon out- drawn in against Germany and Austria- classed as the Royal Navy and Kaiserliche Hungary. Germany attacked France by Marine quickly expanded their ranks with marching through Belgium pulling Britain into increasingly modern and powerful warships. war. Then Japan entered the war to support its By 1914, Germany had nearly 100 warships British allies. Later, Italy and the United States and two million trained soldiers. Great Britain would enter on the side of the Allies (Britain, and Germany both greatly increased their France, Russia, etc.). navies in this time period. Further, in Germany Imperialism and Russia particularly, the military establishment began to have a greater Imperialism is when a country increases their influence on public policy. This increase in power and wealth by bringing additional militarism helped push the countries involved territories under their control, usually without into war. outright colonizing or resettling them. Nationalism Much of the origin of the war was based on the The assassination of Ferdinand led to Austria- desire of the Slavic peoples in Bosnia and Hungary declaring war on Serbia. When Herzegovina to no longer be part of Austria- Russia began to mobilize to defend its alliance Hungary but instead be part of Serbia. This with Serbia, Germany declared war on Russia. specific essentially nationalistic and ethnic Thus began the expansion of the war to include revolt led directly to the assassination of all those involved in the mutual defense Archduke Ferdinand, which was the event that alliances. tipped the scales to war. But more generally, nationalism in many of the EFFECTS of World War I countries throughout Europe contributed not WW1 caused the downfall of four only to the beginning but to the extension of the monarchies: Germany, Turkey, Austria-Hungary and Russia. war across Europe and into Asia. As each The war made people more open to country tried to prove their dominance and other ideologies, such as the power, the war became more complicated and Bolsheviks that came to power in Russia and fascism that triumphed in prolonged. Italy and even later in Germany. WW1 largely marked the end of Assassination of Archduke Franz colonialism, as the people became Ferdinand more nationalistic and the one country after the other started colonial revolts in The immediate cause of World War I that made Southeast Asia, the Middle East and Africa. the aforementioned items come into play The war changed the economical (alliances, imperialism, militarism, and balance of the world, leaving European nationalism) was the assassination of countries deep in debt and making the U.S. the leading industrial power and Archduke Franz Ferdinand of Austria-Hungary. creditor in the world. In June 1914, a Serbian-nationalist terrorist Inflation shot up in most countries and the German economy was highly group called the Black Hand sent groups to affected by having to pay for assassinate the Archduke. Their first attempt reparations. failed when a driver avoided a grenade thrown With troops traveling all over the world, influenza was spread easily and an at their car. However, later that day a Serbian epidemic started which killed more than nationalist named Gavrilo Princip shot the 25 million people across the world. Archduke and his wife while they were driving With all the new weapons that were used, WW1 changed the face of through Sarajevo, Bosnia which was part of modern warfare forever. Austria-Hungary. They died of their wounds. Due to the cruel methods used during the war and the losses suffered, WW1 The assassination was in protest to Austria- caused a lot of bitterness among nations, which also greatly contributed Hungary having control of this region: Serbia to WW1 decades later. wanted to take over Bosnia and Herzegovina.  Social life also changed: women had to war fatigue and hunger. Some of the high- run businesses while the men were at war and labor laws started to be profile agitators at this time were left-wing enforced due to mass production and Jews, which fuelled the conspiracy theory of a mechanization. People all wanted better living standards. Jewish Bolshevik disloyalty that later gained so After WW1, the need for an much traction as Hitler laid the psychological international body of nations that promotes security and peace groundwork in preparing Germany for another worldwide became evident. This war. The devastating experience of the First caused the founding of the League of Nations. World War left the victorious nations and their WW1 boosted research in technology people desperate to avoid a repeat. At the because better transport and means of insistence of the French, the terms of the communication gave countries an advantage over their enemies. Versailles Treaty were punitive in the extreme The harsh conditions of the Treaty of and left Germany destitute and its people Versailles caused a lot of dissent in feeling victimized. Europe, especially on the side of the Central Powers who had to pay a lot for Economic downturns financial reparations. Economic downturn can always be relied upon World War I saw a change in warfare, from the hand-to-hand style of older wars to the to create conditions of civil, political and inclusion of weapons that used technology and international unrest. Hyper-inflation hit removed the individual from close combat. The war had extremely high casualties over 15 Germany hard in 1923-4 and facilitated the million dead and 20 million injured. The face of early development of Hitler’s career. Although warfare would never be the same again. recovery was experienced, the fragility of the WORLD WAR 2 Weimar Republic was exposed by the global World War II was the biggest and deadliest war crash that hit in 1929. The ensuing Great in history, involving more than 30 countries. Depression in turn helped to create conditions, Sparked by the 1939 Nazi invasion of Poland, such as widespread unemployment, that the war dragged on for six bloody years until facilitated the National Socialist Party’s fatal the Allies defeated Nazi Germany and Japan in rise to prominence. 1945. Nazi ideology and Lebensraum CAUSES OF WORLD WAR 2 Hitler exploited the Treaty of Versailles and the The Treaty of Versailles and the German dents in German pride that it and defeat in war Desire for Revenge had created by instilling a renewed sense of German combatants had felt betrayed by the (extreme) national pride. This was predicated signing of the armistice at Compiègne on 11 in part by ‘us and them’ rhetoric that identified November 1918 amidst domestic political the German nation with Aryan supremacy over unrest that was driven by a civilian context of all other races, amongst whom particular disdain was reserved for the Slavic, Romany and Japan signed the Anti-Comintern Pact in and Jewish ‘Untermenschen’. This would have November 1936. The Japanese increasingly dire consequences throughout the years of distrusted the West following the Wall Street Nazi hegemony, as they sought a ‘final Crash and held designs on subjugating China solution’ to the ‘Jewish question’. As early as and Manchuria in a manner that echoed Nazi 1925, through the publication of Mein Kampf, objectives in the east of Europe. Superficially, Hitler had outlined an intention to unite the most unlikely of diplomatic agreements was Germans across Europe in a reconstituted established in August 1939, when the Nazi- territory that included Austria, before securing Soviet non-aggression pact was signed. In this vast tracts of land beyond this new Reich that act the two powers effectively carved up the would ensure self-sufficiency. In May 1939 he perceived ‘buffer zone’ that existed between explicitly referred to the oncoming war as being them in Eastern Europe and paved the way for bound up with the pursuit of the ‘Lebensraum’ the German invasion of Poland. to the east, with this referring to the whole of The Failure of Appeasement Central Europe and Russia up to the Volga. American isolationism was a direct response to The Rise of Extremism and the Forging of the European events of 1914-18 that the US Alliances had ultimately become embroiled in. This left Britain and France, already terrified by the Europe emerged from World War One a very prospect of another war, without a key ally in changed place, with swathes of political ground world diplomacy during the tense interwar being taken up by players on the extreme right period. This is most commonly highlighted in and left. Stalin was identified by Hitler as a key relation to the toothless League of Nations, future adversary and he was wary of Germany another product of Versailles, which patently being caught territorially between the Soviet failed in its mandate to prevent a second global Union in the east and a Bolshevik Spain, conflict. Through the mid-1930s the Nazis re- together with a leftist French government, in armed Germany in spite of the Treaty of the west. Thus, he chose to intervene in the Versailles and without sanction or protest from Spanish Civil War in order to bolster the right- Britain or France. The Luftwaffe was founded, wing presence in Europe, whilst trialing the Naval forces were expanded and conscription effectiveness of his new air force and the was introduced. Blitzkrieg tactics it could help deliver. During this time the friendship between Nazi Germany World War II and ITS and Fascist Italy was strengthened, with EFFECTS (Amadeo,2020) Mussolini also keen to protect the European The Allied nations won. Of those, the right while gaining the first place from which to United States and the Soviet Union gained the most. benefit from German expansionism. Germany  The war solidified the role of the U.S. victors dismantled their former superpower that had begun in World enemies' ability to make war by War I. The 1944 Bretton Woods dismantling factories. agreement established a new global East and West Germany were divided, monetary system. It replaced the gold as was Berlin. The U.N. Partition Plan standard with the U.S. dollar as the for Palestine led to Israel's global currency. It established America independence in 1948. President as the dominant power since it was the Truman said it was a matter of justice only country with the ability to print for the Jewish people. dollars. In 1941, Germany and Italy split up The agreement also created the World Yugoslavia into Croatia, Bosnia, and Bank to help emerging market Herzegovina.53 countries to reduce poverty. The International Monetary Fund provides North and South Korea were divided, technical assistance and short-term which led to the Korean War. The war loans to prevent financial crises in led to a four-year civil war in China that member countries. allowed communism to take power. In 1945, the Allies created the United The Bengal Famine led to India's Nationsto prevent another world war. uprising and independence from Great In 1949, the North Atlantic Treaty Britain. Japan's occupation of the Organization was founded to protect Dutch East Indies led to the formation European nations from threats by of an independent Indonesia. communist countries. Ideas Shaping the World The Soviet Union took over the eastern European countries it had liberated The beginning of the early 1800smark from the Germans. The war strengthened Joseph Stalin's the birth of ideology that shapes the rule.52The German annihilation of world as to what it is today. The French Soviet people created a "never again" mentality that led to the Cold War. Revolution that reached the With other countries focused on Philippines, contributed to the rebuilding, America and the Soviet Union engaged in the Cold War power awakening of nationalism. It is struggle. The nuclear bomb set up the manifested in the writings of our necessity of detente to prevent global annihilation. national heroes like Jose Rizal through his writings, Noli Me Tangere and El Filibusterismo. Other Impacts of World War II The birth of liberalism which meant to Since then, developed countries change the old order of things and to haven't fought each other. Most wars support the popular rule, and reforms in have been civil wars, often assisted by politics and society. Remember that foreign countries. the world was governed by Colonial Allied forces controlled the countries Empires such as the Roman Empire and territories of the Axis powers. which holds the religious and political Millions of Germans and Japanese were forced out of the territories they power in most of Europe, the French lived in and sent back "home." The  Empire, Spain, and Britain. Liberals He advocated the creation of international law support ed the principle of nationalism that would govern inter-state relations. because they seek independence from Bentham believed that objective global foreign control. legislators should aim the propose legislation that would create the greatest happiness of all Another political ideology the nations taken together. conservatism, on the other, resisted change. They supported the old Giuseppe Mazzini (1085-1872) traditions of political and social order. Edmund Burke, an English statesman Mazzini’s Nationalist Internationalism condemned the French Revolution He was an architect of Italian unification, ardent because according to him, it destroyed nationalist, and major critique of the Metternich monarchy and traditions. Unlike system. liberalism, conservatism suppressed nationalism because it threatened to He is the first one to reconcile nationalism with upset the traditional political order. universal internationalism. He also believed in Immanuel Kant a Republican government without kings, “For states in their relation to each other, there queens and hereditary succession and cannot be any reasonable way out of the proposed a system of free nations that lawless condition which entails only war except that they, like individual men, should give up cooperated with each other to create an their savage [lawless] freedom, adjust international system. For him, free and themselves to the constraints of public law, and thus establish a continuously growing state independent states would be the basis of an consisting of various nations which will equally free, cooperative international system. ultimately include all the nations of the world.” What does this mean? Agreements among states merely avert war and Nations US President Woodrow Wilson (1856-1924) needed to give up their freedom and subject themselves to a larger system of law (analog Wilsonian Internationalism with citizens in a country). A form of global government needed to create and enforce Nations were subject to the universal laws of these laws. God, which could be discovered through Jeremy Bentham (1748-1832) reason Principles include self-determination, democratic government, collective security, He coined the term “international” in 1780 international law, and a league of nations. “I am “International law”: law between states “The proposing, as it were, that the nations should end that a disinterested legislator upon with one accord adopt the doctrine of President international law would propose to himself Monroe as the doctrine of the world: that no would … be the greatest happiness of all nation should seek to extend its polity over any nations takes together.” other nation or people, but that every people International Women’s Day, May 1. Its parties should be left free to determine its polity, its became major players in the electoral politics way of development—unhindered, of Europe, eventually collapsed in 1916 as its unthreatened, unafraid, the little along with the member parties supported the war efforts of great and powerful.” their respective states Global Politics and the Formation of the Communist International (Comintern),1919- United Nations 1943 The 20th century marked as the “age of This was a product of the Bolshevik international organization. The ideas of Wilson, victory in Russia. Lenin’s tool to promote Kant, and Mazzini became the foundation in revolution Central body for all Communist the formation of League of Nations which was Parties across the world, Dissolved in 1943 to founded in the 1919 Paris Peace conference appease Allied Powers after WW1. The role of this organization is to maintain world peace through international arbitration, eventually, this leads to the birth of The Comintern and the Third World task-specific international organizations like Lenin: “Monopolies, oligarchy, the the WHO and the ILO (international civil striving for domination and not for freedom, the service). exploitation of an increasing number of small or The formation of the international weak nations by a handful of the richest or most organization was challenged by the ideology of powerful nations — all these have given birth Socialist internationalism, like socialism, is an to those distinctive characteristics of ideology that sees workers of the government imperialism which compel us to define it as should own and control the means of wealth for parasitic or decaying capitalism.” the benefit of all the people not just for a few Ho Chi Minh:“ You must excuse my (Zaide and Zaide, 2015) Karl Marx (1818-1883) frankness, but I cannot help but observe that believed that “Workers of the world should the speeches by comrades from the mother unite” and that “The proletariat has no nation” countries give me the impression that they wish to kill a snake by stepping on its tail. You all The Socialist International (1889-1916) know today the poison and life energy of the capitalist snake is concentrated more in the The organization of labor and socialist colonies than in the mother countries… Yet in parties, mainly in Europe, were able to achieve our discussion of the revolution, you neglect Achievements: 8-hour working day,  states. It also comprises of six principal organs the colonies, while capitalism uses them to in which the objectives of the UN are being support itself, define itself, and fight you.” carried out. Among the six organs of the UN, the Security Council is considered as the The Major Challenge to Internationalism: most potent organ with the power to make legally binding resolutions and comprises of the Fascism strongest military states. The rise of Hitler’s supreme power in Germany resulted in a new global order. The Functions the Security Council government controls the resources which are To veto a substantive resolution. vital in the economic and political process. This To determine the existence of a threat to the peace or act of aggression lead to colonization of different parts of the and to recommend what action should world with Japan and Italy as their ally. He be taken. advocated the primacy of ethnic majorities and To investigate any dispute or situation that might lead to international a regional sphere of influence. friction. The Formation of the United Nations To implement sets of instruments or intervention to maintain peace and aims to preserve peace after the war, order. (sanctions, peacekeeping and reinforced principles of sovereignty and non- peace enforcement) intervention, it reflected the postwar balance of The SC is composed of 15 member, five of them are considered as the five permanent power members (PM) and the rest are considered as the non-permanent members of the Security Council is to maintain peace council. The five permanent members are all and security Permanent 5 has veto (vestiges of allies of the Second World War, and are nuclear states. The other 10 non- the Concert). UN took over the duties of the permanent members of the council are League, grew larger than the league because elected by the General Assembly for overlapping two-year terms. of decolonization. GENERAL INORMATION ABOUT UNITED NATIONS The United Nations (UN) was created in 1945 by the Allied Powers, the victors of the Second World War. The mandate of this organization is to maintain international peace and security and to foster international cooperation in addressing humanitarian and, social, economic and cultural issues. This is the only The Purpose of UN Sanctions organization that can authorize the use of force to change undesirable behavior against aggressor. On the other hand, UN can (e.g. Syria); be a conflict actor in itself or an instrument for action driven by the interests of particular to limit opportunities for undesirable behavior (e.g. Iran, extensive  restrictions on technology/knowledge in the nuclear sector); to deter other countries from choosing an undesirable course of action. Functions the Economic and Social Council Responsible for the direction and coordination of the economic, social humanitarian and cultural activities carried out by the UN. It is also the largest and most complex subsidiary body. Although the UN is an organization that This organ is supported by WB and ensures peace and security and resolves IMF. conflicts, there are issues that arise inside this organization. Gould and Rablen (2017) state Functions the Trusteeship Council two distinct sets of criticisms relating to the To supervise the administration of efficiency of the council and the degree of territories as they transitioned from equity regarding power allocation. For the colonies to sovereign nations. inequity in the country level, the problem Functions the International Court of Justice lies in the over-representation of the PM countries; in the regional level, there is To settle legal disputes between lack of representation for Asia and Africa states (contentious cases) and while Eastern and Western Europe are provides advisory opinions on legal questions referred by the UN organs over-represented – an overt and specialized agencies, in manifestation of the North and South accordance to international law. Divide. Thus, different reforms have been raised to change the structure particularly Functions the General Assembly the Security Council to distribute the The only UN organ with universal concentration of power and to foster representation with all 193-member inclusive decision-making for states represented in the body. This marginalized and excluded member- remains to be the primary decision states. maker of the UN. Functions the Secretariat To carry out the substantive and administrative work of the United Nations as directed by the General Assembly, the SC and other councils. How do the United Nations work?