Chapter 1: Globalization Defined PDF

# Chapter 1: Globalization Defined ## Learning Objectives - Differentiate the competing conceptions of globalization. - Identify the underlying philosophies of the varying definitions of globalization. - Agree on a working definition of globalization for the course. ## Conceptions of Globalization...

# Chapter 1: Globalization Defined ## Learning Objectives - Differentiate the competing conceptions of globalization. - Identify the underlying philosophies of the varying definitions of globalization. - Agree on a working definition of globalization for the course. ## Conceptions of Globalization Globalization in terms of global interdependence started centuries ago although the term was just used recently. For James and Steger, it is an extraordinary and complicated concept that was rarely used until the 1990s but with processes that had been happening for centuries. In the contemporary context, the term "is used to indicate the global nature of capital, the emergence of a single global economy, and tremendous speed of exchange across vast distances". The globalization process in vogue greatly impacts on ideological, intellectual, economic, political, and above all social spheres. The essence of globalization is the individual's increasing awareness of other peoples, cultures, and religions as a result of technological advances in communications and travel. With the expansion of awareness, the concept of personal identity has also broadened. ### Key Terms - Globalization - Glocalization - Global Culture - Globality ## Underlying Philosophies of the Varying Definitions of Globalization According to the dictionary, globalization means different things to different people. Since its earliest appearance in the 1960s "globalization" has been used in both popular and academic literature to describe a wide variety of phenomenon, including a process, an outcome, a condition, a system, a force, an age, and even an ideology. ### Some Significant Scholars of Globalization or the Globalists offer the following definitions: - It is a process by which regional economies, societies, and cultures have become integrated through a globe-spanning network of communication and trade. - It is a set of multiple, uneven and sometimes overlapping historical processes, including economics, politics, and culture, that have combined with the evolution of media technology to create the conditions under which the globe itself can now be understood as "an imagined community". - It is a long-term effort to integrate the global dimensions of life into each nation's economics, politics, and culture. National development has ceased to be an isolated procedure and has now become part of a global process. In the context of modernization theory, globalization is an undertaking that engenders economic development, political progress, and sociocultural diversity. On the other hand, dependency theory sees it as a catalyst of economic underdevelopment and dependency, and the dissolution of local cultures. However, for Steger, the term globalization should be confined to a set of complex, social processes that are changing our current condition based on the modern system of independent nation-states. ### *The Mythology About Globalization* Ferguson challenges the varied assumptions about the meaning of globalization. She cited seven myths about globalization such as: - Big is Better - More is Better - Time and Space have Disappeared - Global Cultural Homogeneity - Saving Planet Earth - Democracy for Export via American TV - The New World Order ## Working Definition of Globalization Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology. This process has effects on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world. Globalization, as a concept, is then closely connected with the way we view our place and meaning on this planet. However, it is more than this, for it also describes processes which steer the policies of nation states which directly impact upon various significant institutions. This is inevitable since globalization is a process by which different parts of the world interact economically, politically, and culturally. It is international expansion on a world scale; a declining international variety; and increasing international interconnectedness. A globalizing world is now the context within which humanity lives and works. Thus, the transformative powers of globalization reach deeply into all aspects of contemporary socio-economic and cultural life. This brings the idea of global culture. Steger used the term globality to signify a future social condition characterized by thick economic, political, and cultural interconnections and global flows that make currently existing political borders and economic barriers irrelevant. Steger also proposed that the core of globalization is the unprecedented compression of time and space **as a result of political economic, and cultural change, as well as powerful technological innovations.** He then developed six core claims of globalism: 1. Globalization is about the liberalization and global integration of markets 2. Globalization is inevitable and irreversible 3. Nobody is in charge of globalization 4. Globalization benefits everyone 5. Globalization furthers the spread of democracy in the world 6. Globalization requires a global war on terror # Chapter 2: The Structures of Globalization ## Lesson 1: The Global Economy Assessing the different foundations in the institution, economy is the basic foundation which should be given primary importance. It is always the contention that if the economy is not stable, then politics is not also stable. Economy influences the condition of the society as well as in politics. With this phenomenon of globalization, which is not actually new in this modern era, removing barriers between national economies for smooth flow of goods, services, capital and labor greatly impacted states and nation-states around the globe. ### Key terms - Economic Globalization - Neoliberalism - Mercantilism - International Organizations - Transnationals - Multinationals - Core Regions - Periphery Regions - Semi-Periphery Region - External Areas - Regional Integration - Trade Liberalization - Privatization and Deregulation - Foreign Direct Investment According to **Mohan**, economic globalization refers to the free movement of goods, capital, services, technology and information. It results to an increasing economic integration and interdependence of national, regional, and local economies around the world by strengthening the cross-border movement of goods, technologies, and capital. Exchanging of goods and services is not new in the Philippines. Before the colonial era, the native Filipinos were already in contact with the Chinese and Arabs. Economic relationship was established then. Gold and spices of the Philippines were bartered for porcelains, silk, and perfumes. The opening of the Suez Canal in 1869 paved the way for European people to trade with the Asians. The Galleon trade was implemented by the Spaniards in the Philippines from 1565 to 1815 intensified more the transfer of goods from one country to another. Americans, for the first time, were directly connected to Asian trading routes. ### The ideology of mercantilism motivated countries to search for islands that are rich with natural resources, particularly gold. According to the mercantilism principle, the more gold the country has, in the addition to what it already possessed, the more powerful the country is. Later, the value of gold was used as a common basis for currency prices and a fixed exchange rate. At present, the amount of money circulating in the country is based on how much gold reserves are stored in the government bank. ## Key Players/Actors in Globalization There are many forces involved on the process of interconnecting more the world politically, culturally, and economically. These forces are very influential in the outcome of globalization which is focused on profits and on interest. One of these major players is the **international organization**. International organizations promote: - Voluntary cooperation and coordination between or among its members. - Intergovernmental Organization (IGO) - Supranational organizations **Key differences**: - IGOs are composed of nation-states that promote voluntary cooperation and coordination among its members. However, the decisions and agreements reached are not enforceable. Members of IGO do not surrender any sovereignty to it. - Supranational organizations, which is either global or regional, member states surrender their power in specific areas to the higher organization. This is an entity where member states formed for mutual benefit and in pursuit of shared goals. Decisions reached must be obeyed. ### *International Non-Governmental Organization (INGO)* - INGOs are not created by an international treaty or intergovernmental agreement and often focus on a specific issues around the world. - INGOs try to help in alleviating the problems such as hunger, disease, illiteracy, and inequalities. - INGOs are not-for-profit voluntary associations in which its projects are funded by philanthropies or through partial government funding. ## Lesson 2: Market Integration In order to create a global economic system that would ensure longer-lasting peace, a network of global financial institutions that would promote economic independence and prosperity was set up. It was in 1944 that the Bretton Woods System was inaugurated during the United Nations Monetary and Financial Conference. This system was largely influenced by British economist **John Maynard Keynes** who believed that economic crises occur when money is not being spent and, there, not moving. Governments have to revitalize markets with infusions of capital. ## International Financial Institutions - Bretton Woods System - International Monetary Fund - World Bank - General Agreement on Tariffs and Trade - World Trade Organization ### *Bretton Woods Agreement* With the Bretton Woods Agreement that currencies were pegged to the price of gold and the US dollar was seen as a reserve currency linked to the price of gold, the International Monetary Fund (IMF) was created in 1945. The valuation of gold and foreign exchange rates introduced remain important to this day. The IMF is based in Washington, D.C. and currently consists of 189 member countries. The IMF aims to promote global economic growth and financial stability to encourage international trade and reduce poverty. ### *World Bank* The World Bank Group was also created following the Bretton Wood agreements to provide financial assistance to countries affected by World War I for reconstruction projects in 1945. It has two ambitious goals to end extreme poverty and to promote shared prosperity. A family of five international organizations-International Bank for Reconstruction and Development (IBRD); International Development Association (IDA); International Finance Corporation (IFC); Multilateral Investment Guarantee Agency (MIGA); and International Centre for Settlement of Investment Disputes (ICSID)-it is the largest and well-known bank in the world that is focused on granting loans and assistance to developing countries. ### *General Agreement on Tariffs and Trade (GATT)* To further eliminate all restrictions on the use of its currency for international trade, the member states decided to come up with an agreement known as the General Agreement on Tariffs and Trade (GATT). Twenty-three nations signed the legal agreement in Geneva on 1947 and took effect on 1948 after World War II. The promotion of reducing or eliminating trade barriers such as tariffs and quotas in the international trade was the overall purpose. Until 1995, it was superseded by World Trade Organization (WTO). While GATT is focused on trades in goods, WTO is also responsible for the increasingly important trade in services. While the former is just a forum for the meeting of representatives of countries, the latter is an independent organization. ### *World Trade Organization* The World Trade Organization, which has 164 members and 23 observer governments, deals with the global rules of trade between states and nations. Its main function is to ensure smooth, predictable, and free trade flows as possible. Its goal is to help producers of goods and services, exporters, and importers conduct their business. However, the methods and actions of WTO evoke strong antipathies. Though it claims to be fixing, it is accused of being responsible in widening the social gap between rich and poor. WTO does not manage the global economy impartially, but is biased towards rich and multinational corporations, harming smaller countries which have less negotiation power. Labor and environment are consistently ignored. That in the absence of proper environmental regulation and resource management, increased trade might cause so much adverse damage that the gains from trade would be less than the environmental costs. ## Attributes of a Global Corporation - A global corporation operates in two or more countries and face a lot of challenges and opportunities in their quest to capture value in the world market. - It produces and sells goods or services in various countries. - It has large-scale operations and dominated mostly by developed countries and MNCs. - It has a very strong sense of completion with the other corporations. - Despite the many contributions to science and technology, a global corporation still has to follow some restrictions set forth by the countries where it sets its operation. ### Advantages - Cheaper labor - Broader market base - Tax cut ### Disadvantages - Potential abuse of workers - Threat to local business - Loss of jobs in developed countries ## Global Relevance Amid Globalization Despite the many concerns on the loss of sovereignty due to globalization, the state remains the key actor in the international and domestic arenas even with the assumption of the emergence of global civil society. It must not overlook that the entire set up for global governance is actually and currently designed by nation-states which are driven by initiatives to group together for common undertakings. The state is always from the start of its creation guarantees internal and external security. It has always been the principle of the state to protect and serve the people. Hence, security and services are its core responsibilities. In this contemporary world, there is still no evidence that globalization reduces the relevance of state's functions. Albeit, it has motivated the state to focus more in doing its responsibilities to prevent dominance and control by other states. According to Jones, the state will persist because the need for state has grown, and also the local resource pools and socioeconomic problems on which it is based are undiminished.. ### *State in the 21st century is different in many ways from the past. It has a significant role in providing affordable social services.* Globalization benefits society in countries that enjoy some degree of political and economic stability, have adequate infrastructure, and equitable safety nets. In other words, globalization needs strong states with strong democratic institutions. To ensure that globalization benefits are enjoyed equally by both developed and developing countries, good governance is a must. # Chapter 3: A World of Regions ## Lesson 1: Global Divides: The North and the South While globalization is a phenomenon, regionalism is also seen as political and economic phenomenon. The world consists of different regions which refers to group of countries situated in same geographic location or amalgamate one another to oversee flows and policy choices. Countries on these regions respond economically and politically to globalization thereby forming regional associations for common purposes like military defense and economic security. ### Key Terms - North-South Divide - Regionalism - Regionalization - Global North - Global South - Third World - First World - Second World ### Regionalism Regionalism is a political process characterized by economic policy cooperation and coordination among countries. Whereas regionalization is the concentration of economic flow within region thereby binding together the region's economy. Since regionalism is a process, regions are not given or naturally created. They are product of political and economic actors, and even social movements. Regions group and divide due to common traits and vested interests. The world is divided according to socio-economic and political aspects. ### North-South Divide The North-South Divide or Rich-Poor Divide is the socio-economic and political division between the wealthy developed countries known as "the North," and the poorer developing countries or "the South." Although most of the countries under "the North" are located in the Northern Hemisphere, the divide is purely not based on geographic location. Some countries located in the same hemisphere may not be qualified for "developed" status. In effect may deemed part of "the South." This divide is recently known as the gap between the economically rich and poor countries. ### *Global North* The Global North mostly encompasses the West and the First World, along with many of the Second World. It is the home of all the G8 (Canada, France, Germany, Italy, Japan, United Kingdom, United States and European Union). Global North also includes the outermost regions of the European Union, Australia, New Zealand, and developed members of Asia (the Four Asian Tigers - Hongkong, Singapore, Taiwan and South Korea). The North, with one quarter of the world population, controls four-fifths of the income earned anywhere in the world. It owned 90% of the manufacturing industries which are also located in the countries belonging to the North。 ### *Global South* The Global South refers to regions of Latin America, Asia, Africa, and Oceania. It includes the countries belonging to the Third World and Periphery. These are regions outside Europe and North America. With three-fourth of the world populations, only has access to one-fifth of the world income. Hence, countries that have low-income and often politically or culturally marginalized. " The use of the phrase Global South marks a shift from a central focus on development or cultural difference toward an emphasis on geopolitical relations of power,". The Brandt Line proposed by Willy Brandt in 1980s attempted to show growing income inequality between countries. Above the line are the rich countries, whereas below the line are the poor countries. However, this theory is no longer considered as valid since in today's context some of the world's strongest economies lie below the Brandt line. ## Global South vs The Third World The emergence of the term Global South is in part to aid countries in the Southern Hemisphere to work in collaboration on political, economic, social, environmental, cultural, and technical issues. This is called a South-South Cooperation (SSC), "a political and economical term referring to the long term goal of pursuing world economic changes that mutually benefit countries in the Global South and lead to greater solidarity among the disadvantaged in the world system". ### *Global South* It was a French demographer, anthropologist and economic historian Alfred Sauvy who coined the term "the Third World" in 1952, comparing it with Third Estate, a concept that emerged during the French Revolution which refers to the French population. The term was accepted because it clearly differentiated the poor countries from the First World where countries are wealthy, and to Second World (Communist states) though not so wealthy but characterized by greater order, higher incomes, and longer expectancies. ### *Third World* There growth and develop of the developing countries in the 1970's was slowing. Developed countries were becoming dependent on the Third World for energy due to the decline of US oil reserves. These likely increased the economic power of the Third World. It was at this time that the term North and South were firstly widely used in lieu of the long standing geographical and cultural partition of the East and West. The Global South was merged to the Third World in order to avoid the stigma brought about by the form "Third World" as being very poor and thus created a new world order. ### *Third World countries are experiencing deep poverty, inequality, and underdevelopment. They are the countries at the periphery that produce mainly agrarian and mineral raw materials for industrialized states.* In deeper sense, the developing countries originally belong to the Global South still has a chance to become a developed country. ## Global Relations in Latin America Latin America, like Africa, has small populations but endowed with rich natural resources. Because of this, this region is target for grand-scale pillage for capital accumulation by Europe and the United States. Countries in Latin America were under the control of either Spain or Portugal during the Colonial Era. During the 19th century, the world capitalist system exploited the peonized peasants. The tillers, laborers, and uneducated were subject to brutality by big agrarian landowners. The natural resources like mines were exploited by the developed countries. The emigration of peasants from the countryside in the 20th century resulted to "modernization poverty" replacing rural poverty in Latin America. A settlement of jerry-built shacks or favelas emerged in the cities. A lot of people were now living in the urban areas alongside with the change of politics imposing fascist dictatorship. Certain rights were abolished like right to vote. Specialized police services were established giving extra-legal authority to arrest and torture people who go against the government. The brutal super-exploitation in Latin America are worse compared to other regions in the world. Until now, some countries in the region are still suffering and recovering from the brutal treatment as the result of dictatorships. ### *The situation of the Philippines during and after the colonial era was much better compared to the experiences of Latin America.* Even before the current globalization trends appear in Latin America, they were actually experiencing the wide-raging globalization which resulted to exploitation and abuse. Danilo Antón in his article, "Different waves of globalization in Latin America", described the first wave of globalization was the military wave that happened around 15th to 16th centuries. Extracontinental military invasion of the Americas was immediately felt. There were political and cultural annihilation of the indigenous people. The first wave was extremely brutal. The second wave of globalization was the economic wave. The Spanish and Portuguese colonies were well established this time in the 90th century. Latin America was the basic source of raw materials by the European countries. During this time, the globalization development was mainly related to the requirements of the European industrial revolution. Natural resources in this period were exploited and workers were abused. However, infectious diseases were reduced, communication, and transportation were developed. The cultural wave was the third globalization wave. Due to the nature of technological changes, globalization affects the cultural sphere of Latin America. Computers and telecommunications were now made available and air travel has become widespread. The flow of merchandise and trade is easier and accomplishing lots of things. Women has become increasingly important in the workplace. A lot of changes were happening. Communication was becoming better. People within the region can now communicate with each other and to other regions of the world. But new disease was introduced like AIDS or HIV. Though the impact of the third wave was already felt during the 20th century, the impact of the second wave was still felt and very much alive. Both waves in the last decade was simultaneously experienced affecting many countries around the world. The better effects brought by the third wave were often outweighed by its negative impacts. A lot of raw materials were produced and exported outside the region resulting to higher income to the detriment of the environment. Native trees or crops were replaced by other plants highly demanded by the importing countries resulting to soil erosion. Increased consumption of sea products promoted expansion of aquaculture resulting to reduction the water quality. Despite of these effects, the national cultures of Latin America still exist. These are important assets to regional societies. However, many individuals and communities have no political control over their common destinies. The weakening of the state capacity and the increase in access of information might be a source of opportunity for the individuals and communities. The tools offered by this new globalization, according to Antón, might paved the way for planetary survival and social renewal. # Chapter 4: Contemporary Global Governance The government, which is an instrumentality through the will of the people is expressed, formulated, and realized. How the government is being run and managed by the people who are in the government is called governance. It relates to the system of interaction and decision-making among the actors involved in solving certain issues or problems leading to the creation, reinforcement or reproduction of norms and institutions. However, governance does not only refer to government but may also be undertaken by a market, or network, or over a social system. It is a broader term referring to how to solve problems that are faced in any society whether in community, national or global level. It is important in managing and solving problems in the society. With the current trend where nation-states agreed to come together and cooperate with a common goal of peace and posterity, global governance is necessary. Global governance is a movement among transnational actors towards political cooperation aimed to solve issues or problems that affect more than one state or region. This is not tantamount to global government. For the record, there is no such thing as global government. Each state has an independent government of which other states cannot and should not control. To negotiate and enforce compliance of the agreed norms set forth, institutions are created. ### *Key terms* - Governance - Global Governance - United Nations - UN General Assembly - UN Secretariat - International Court of Justice - UN Security Council - UN Economic and Social Council - UN Trusteeship Council - Knowledge gaps - Normative gaps - Policy gaps - Institutional gaps - Compliance gaps International organizations are important actors in the critical episodes of international politics, with power in mediation, dispute resolution, peace keeping, applying sanctions, and others. They also help in managing various key areas of international concern, from global health policy to the monetary policies around the world. ### *An international organizations can be defined as 'an institutional agreement between members of an international system in order to achieve objectives according to systemic conditions, reflecting attributes, aspirations and concerns of its members'. * These are Institutions drawing membership from at least three states, having activities in several states, whose members are held by a formal agreement. And what gives the basic rule of them is the sovereignty of the nation-state. In terms of the concept of global governance promoted by the international organizations, this was originally based on raw power, but has evolved to legitimacy and customs. With the current trend where nations-states agreed to come together and cooperate with a common goal of peace and posterity, global governance is necessary. Global governance is a movement among transnational actors towards political cooperation aimed to solve issues or problems that affect more than one state or region. ### *Brief History of the System* Modern international system has three main features: 1. The first stage concerns the definition of the state as a primary tool of decision in international relations. The Treaty of Westphalia in 1648 established peace in Europe after decades of conflicts and bloody wars. National sovereignty is considered the basis of global dialogue, where each country seeking political solutions to their religious problems. A norm was established against interference in another state's affairs. This treaty served as precedent of peace reached by diplomatic congress and a new system of political order in Europe based on the concept of co-existing sovereign states. Inter-state aggression was to be held in check by a balance of power. 2. The second stage refers to the agreements between states. This development is associated with the Congress of Vienna in 1815, where European powers negotiated the end of two decades of war and redrawn the political map of the continent. The Congress of Vienna was the first of a series of international meetings that came to be known as the Concert of Europe, an attempt to forge a peaceful balance of power in Europe. The basic tenet of the European balance of power is that no single European power should be allowed to achieve hegemony over a substantial part of the continent and that this is best curtailed by having a small number of ever-changing alliances contend for power. 3. The third stage consists of the multilateral system, having in its core the United Nations. Built largely in the period after the Second World War, it has antecedents in the postwar period by creating the League of Nations and the International Labor Organization. Conferences at Bretton Woods, New Hampshire developed plans for building a wide range of universal rules and specialized institutions in order to promote international cooperation in economic, political and security areas. ## Roles and Functions of the United Nations The United Nations is the most prominent international institution established. It is intergovernmental that promotes international cooperation, and creates and maintains international order. It replaces the ineffective League of Nations and was established after World War II on October 24, 1945 to prevent another global conflict. The name "United Nations" was coined by United States President Franklin D. Roosevelt and first used in the Declaration by United Nations of 1 January 1942, during Second World War. When it was founded, it had 50 member states. Now, it has 193 member states and two observer states. Its objectives are preserving international peace and security; elevating human rights; advancing social and economic development; securing the environment; and giving humanitarian aid in cases of natural calamities, famine, and armed conflict. The UN has six organs: 1. The General Assembly is the policymaking, main deliberative, and representative organ; 2. The Security Council decides certain policies for peace and security; 3. The Economic and Social Council (ECOSOC) promotes international social and economic cooperation, and development; 4. The Secretariat provides facilities, information, and studies needed by the UN; 5. The International Court of Justice is the primary judicial organ; 6. The UN Trusteeship Council which became inactive since 1994. Technically, this leads only to five principal organs. Mr. António Guterres of Portugal is the current Secretary-General of the UN. The UN Charter describes the Secretary-General as "chief administrative officer" of the Organization. The Key Documents of the United Nations are: - UN Charter - Universal Declaration of Human Rights - The Statute of the International Court of Justice ## Challenges of Global Governance in the 21st Century The United Nations has naturally faces numerous problems and challenges given the scope of its responsibilities. Take note that the institution is not a world government. It functions due to the voluntary cooperation from states. If one state refused to cooperate, there is always the tendency that the influence of UN is compromised. For instance, problems cannot be identified or addressed immediately if rapporteurs sent by the UN are not welcomed by the countries concerned. ### *Challenges of Global Governance* Weiss identified five global governance gaps: - Knowledge - Normative - Policy - Institutional - Compliance The UN's relationship to these gaps is explored through case studies of some of the most burning problems of this age, including terrorism, nuclear proliferation, humanitarian crises, development aid, climate change, human rights, and HIV/AIDS. ## Internationalism vs Globalism When different nations decided to cooperate with one another in political, economic and cultural aspects for the promotion of the common good, this is a principle of internationalism. While globalism is an ideology based on the belief that people, goods and information ought to be able to cross national borders unfettered. It is the attitude of putting the interests of the entire world above the interests of individual nations. ### *Internationalism** Internationalism comes in three types: 1. **Hegemonic internationalism** is the dominance of one country over a nation or nation-state. Most often, nations with ruling power will bring their successions to the less influenced states. Nations are integrated based on unequal terms. Colonialism and imperialism are example of this. The colonization of the Philippines by Spain imposing their own system to the Filipinos and their own cultural practices is a specific example of this type. 2. **Liberal internationalism** is a belief introduced by Immanuel Kant that nation-states should give up some of their freedoms and establish a continuously growing global system consisting of various nations working together to prevent lawlessness in the world. Nations cooperate one another to achieve common goals like peace and prosperity. Example of this is the United Nations and Group of Eight (G8) working hand in hand to maintain peace and order among nations. 3. **Revolutionary internationalism** believes that conflict in the society are due to international factors and alliances. Nation-states are forced to do what they think is right. The French Revolution and the protest against the Vietnam War in America are two of examples of this. ### *Globalism* Globalism is the network of nation-states. The degree of relationship, how thick or thin globalism is, refers to globalization which focuses on the changes on the forces, dynamism or speed. The distinct dimensions of globalism are economic, military, environmental, and social or cultural. - **Economic globalism** involves long distance flows of goods, services, capital and information that accompany market exchange. - **Environmental globalism** refers to the distant transportation of materials in the aerial, fluvial, or terrestrial aspects. This includes biological substances that may affect human health and well-being. - **Military globalism** is long distance networks in which force, and the threat or promise of force, are deployed. The "balance of terror" during the Cold war between Soviet Union and United States is an example. The attack on the Twin Towers or World Trade Center in New York on September 11, 2001 is an example of military globalization. There is a decline in the degree of globalism between Afghanistan and United States. - **Social or cultural globalism** is the transfer includes religions and diffusion of scientific knowledge. The flow of ideas has increasingly become independent since the social and cultural globalization in these present times are driven by the Internet. Changes in the various dimensions do not necessarily go together but one dimension may be affected by another dimension. Globalism is not certain. There is continuous increased in its complexity that stakeholders continue to exert efforts to comprehend and manage these process. # Chapter 5: Asian Regionalism Groups, associations, institutions, societies, communities and governments form organizations or networks in regions. The linkages and communications have made the people more aware of the world around them. Globalization has made various citizens cognizant of specific areas, particularly on territories or continents where they live. People are able to identify themselves with regions they belong to. ## Regionalization vs Globalization As discussed previously, regionalization is the concentration of economic flow within region thereby binding together the region's economy. It is a process of dividing areas into smaller segments called regions. While s promotes economic integrations across state borders around the world allowing many companies to trade internationally that permit free market. Whereas the former, may not allow corporations outside its region to trade and more likely create monopolies within the region. ### *Key Terms* - Regionalism - Regionalization - Globalization - Regional Integration - Economic Integration - Political Integration - Single Market - Processing Trade Regionalization and globalization are key defining features in contemporary world politics. They are not actually a complete new processes. Ever since men started to travel around the globe by boat or by land, globalization had started. As previously said, the exact meaning of globalization, and defining it is a controversial risk. It is always understood as the increased flow of goods, services, capital, people, and information across borders. Whether people share same culture, history or commerce, the most basic sense of region is a group of countries in the same geographic location. The countries in this region decided to integrate and interact socially and economically leading to regionalization. ## Integration of Asian Region The process by which two or more neighboring nation-states agree to cooperate and work closely together to achieve peace, stability, and wealth is regional integration. It is overcoming barriers among neighboring countries jointly managing shared resources and assets for common good. The European Union supports regional integration to achieve prosperity, peace, and security. Cooperation among countries within the region usually start with economic integration. It is the process by which different countries come to agreement to remove trade barriers (e.g., tariffs, quotas and border restrictions) between them. Eventually political integration follows as cooperating states have become completely integrated into a single market since there is a need for common policies in social aspect (e.g., education, health care, employment benefits, and pensions) and political institutions. Single market is the midpoint between political and economic integration the cooperating states become so integrated that all barriers are removed. It will come to a point that the countries involved are totally integrated that they will adopt a common currency with a monetary policy regulated by a single central bank, even share the same foreign policies and merge their armies. The European Union is the best example of regional integration. They are almost nearing to the point of total integration. They have their common currency, the Euro. Who knows in the near future, EU will combine politically and maximum scale of total integration. It took time for Asia to integrate economically due to, first, its unbalanced economic growth. Some countries in Asia have medium-high income (e.g., Singapore and South Korea), others are of medium-low income (e.g., Philippines and Indonesia), and low income earners (e.g., Pakistan and Cambodia). Second reason for the delay is diversified cultures, religions and customs among the people. Asia has a long history and brilliant ancient civilization but impedes the progress of integration. Issues and problems of security is the third cause of delay. The issues on terrorism and boundary disputes and other problems brought some negative consequences to the progress of Asia's economic integration. The integration of East and South Asia is the product of global economic integration. According to Sally, East-Asian integration is the strongest in trade in transport and machinery which the heart of these products is processing trade (also known as fragmented or network trade). This kind of trade is trade in parts or components where different parts of the production process are located in different countries. The production chains ended in a labor-intensive assembly operations happened mostly in China since 1990s before export to final consumer markets in the West. Accordingly, South Asia was seen to increase in manufactured exports but dropped compared to East Asia in 1970's except in garments. With this South Asia lacks global integration and the least integrated region in the world. Currently, Asian countries are driven to combine their resources for economic integration for obvious reason. ### ASEAN The ASEAN or South East Asian Nations was established on August 8, 1967 in Bangkok, Thailand. Up today, there are 10 member-states of which the Philippines is one of its founding members. The gist of the aims and purposes of ASEAN is to accelerate the economic growth, promote on matters of socio-cultural interests, and maintain regional peace and prosperity. In 2007, These objectives are clearly manifested in its three pillars: - ASEAN Political-Security Community; - ASEAN Economic Community; and - ASEAN Socio-Cultural Community. ASEAN has convened to form the ASEAN Community in 2015, of which its four main goals are: - Single Market and Production Base; - Highly- Competitive Economic Region; - Equitable Economic Development; and - Integration into the Global Economy. ### *Three factors that drive economic integration of the ASEAN* - **Market-led process** through the international production sharing of MNCs. The unilateral and multilateral reduction of barriers to trade and invest, rapid development of transportation, and information technology made it possible to establish and set up businesses in Asian Countries. TNCs or MNCs geared their businesses to developing countries where labor-intensive segment of the production chain is located and wages are low. - **Institution-led process** through the free trade, investment agreements, and functional cooperation. Barriers to intra-regional trade were reduced due to ASEAN