Contemporary World Midterm Reviewer PDF

LESSON 1: Introduction to Globalization Contemporary Globalization arguably distinct in terms of scope, intensity, velocity, and impact. Globalization – As a contested concept -"Since its...

LESSON 1: Introduction to Globalization Contemporary Globalization arguably distinct in terms of scope, intensity, velocity, and impact. Globalization – As a contested concept -"Since its Scope - contemporary globalization is diffused. earliest appearance in the 1960s, the term 'globalization' has been used in both popular and Intensity - there is generally a greater degree of academic literature to describe a process, a condition, a system, a force, and an age. Given that these interconnectedness and more patterns of interaction. competing labels have very different meaning their Velocity - today’s globalization is described as fluid, as indiscriminate usage is often obscure and invites many interactions could now occur instantly. confusion." - Manfred Steger Impact - globalization presents both opportunities and The expansion and intensification of social relations challenges. and consciousness across world-time and world-space - Manfred Steger Globalization Theories Expansion – refers to "both the creation of new social networks and the multiplication of existing Homogeneity - refers to the increasing sameness in connections that cut across traditional political, the world as cultural inputs, economic factors, and economic, cultural and geographic boundaries". political orientations of societies expand to create common practices, same economies, and similar Intensification – refers to “the expansion, stretching, forms of government and acceleration of these networks.” Heterogeneity - pertains to the creation of various Globalization – the widening, deepening, and cultural practices, new economies and political groups speeding up global interconnectedness (Held et al. because of the interaction of elements from different 1999) societies Globalization – refers to the existence of free exchange of goods, services, culture, and even people, between and among countries. (Theodore Levitt- Dynamics of Local and Global Culture Globalization Markets) Cultural Differentiation – emphasizes the fact that Globalization – British Broadcasting Corporation cultures are essentially different and are only (BCC) "the process by which the world is becoming superficially affected by global flows increasingly interconnected as a result of massively Cultural Hybridization – emphasizes the integration of increased trade and cultural exchange [which] has local and global cultures which leads to a "hybrid increased the production of goods services [and] has been taking place for hundreds of years, but has culture" speeded up enormously over the last half-century." Cultural Convergence – stresses homogeneity For anthropologist Arjun Appadurai, different kinds of globalization occur on multiple and intersecting introduced by globalization. Cultures are deemed to dimensions of integration that he calls "scapes.” be radically altered by strong flows. Cultural Imperialism – imposes itself on and tends to Five Scapes of Globalization destroy at least parts of another culture. 1. Ethnoscape – global movement of people - conviction that there is a better culture 2. Mediascape – flow of culture - Seeing cultures as superior to theirs 3. Technoscape – circulation of mechanical - Forming inferior or non-dominant culture goods and software - E.g. PH and USA 4. Financescape – global circulation of money 5. Ideoscape – the realm where political ideas Global Economic Imperialism – One nation assumes move around economic power over the others Global Village – The world has become a borderless - Age of Westernization (Americanization of world. Filipinos)  LESSON 2: Historical Background of League of Nations -> United Nations Globalization GOLD EXCHANGE STANDARD - Countries fixed the value of their currencies in terms of a fixed amount of PRE- WORLD WAR 1 another currency. International economic system worked well from 1880 until the eve of World War 1 POST-WORLD WAR 2 19th Century – The world's first international economic system called the Classical Gold Standard. Growth in The boost to economic, political, and social globalization. The world witnessed the practice of trade of goods, labor, and capital between countries. modern aid-giving. The period of the British Industrial Revolution Era BRETTON WOODS CONFERENCE – Paved way for the characterized by scientific advances and technological creation of institutions that help govern the innovations. international economy. The Concert of Europe – The world's first international organization. The development of international GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT) – To liberate trade through reduction or negotiations and diplomacy elimination of tariffs Gold Standard – a monetary standard under which INTERNATIONAL MONETARY FUND (IMF) – To ensure the basic currency unit is equal to, and can be exchanged for, a specific amount of gold. stability of the international monetary and financial system. People still used the same types of currency (greenbacks, silver certificates, etc) as they did before, WORLD BANK – To help in the Post War rehabilitation but now they could exchange them for gold at the Treasury. Bretton Woods System (1944) – Economic crises occur not when a country does not have enough money, but In 1900, US Congress passed the Gold Standard Act when money is not being spent, and, thereby not which fixed the price of gold at $20.67 per ounce. moving… (Influenced by British Economist John Maynard Keynes) Treaty of Westphalia – principles of sovereignty of states and the right to political self-determination, Delegates of Bretton Woods create 2 financial equality between states, and non-intervention of one institutions: state in the internal affairs of another. International Bank for Reconstruction and WORLD WAR 1 Development (IBRD, or World Bank) Military Globalization – Systemic militarism and the International Monetary Fund (IMF) – global lender rise of warfare states Bretton Woods Agreement – Gold was the basis for Technological Advancements in modern warfare The invention of railroads, small arms ammunitions the US dollar and other currencies were pegged to the and tanks. US dollar’s value. According to Keynes, when economies slow down, INTERWAR PERIOD governments have to reinvigorate markets with Gold Exchange Standard – The new international infusions of capital… financial system. This is global Keynesianism system… the active role of - It facilitated international trade. the governments in managing spending… - It saw the importance in developments in During this period, governments poured money in global governance. their economies, allowing people to purchase more President Woodrow Wilson wanted to create an goods… (increase demand for these products) international organization that will promote collective security and prevent future wars. To promote democracy and free trade. UNITED NATIONS – Maintaining international Peace SKEPTICAL (Global Pessimist – Negative) and Security - The national governments are essential to - Achieving economic social development the regulations of international economic - Adopted both binding and nonbinding activity and the continuing liberation of the conventions, treaties, and declarations. economy can only be made possible by the - Universal Declaration of Human Rights (UDHR) power of the national governments. - International Covenant on Civil and Political - The states shape globalization, and it is their rights (ICCPR) national interest that drives it. - International Covenant on Economics, Social and Cultural Rights (ICESCR.) TRANSFORMATIONALIST Cold War – It caused the breakdown of Bretton Woods - Globalization reconstitutes the interests and system identities of states. - The direction of contemporary globalization is - IMF took on structural adjustment programs indeterminate: there can be global - Upsurge in the interests for non-traditional integration or fragmentation. security issues. - A striking characteristic of the contemporary world is that it is no longer the dominance of There was a mounting rivalry between the two states as more and more actors now engage in superpowers. shaping a new world order. Capitalism (USA) vs Communism (USSR) - Claim that there will absolutely develop a global civilization where equality among individuals will prevail is untenable. POST-COLD WAR Globophilia – is a perspective that affirms the benefits The order of the Contemporary World is composed of and necessity of globalization. the following structural and purposive elements: Globophobia – points out the adverse consequences Polarity, Multilateralism, Regionalism, two worlds, of market-driven interconnectedness on local social state, identity, economic order, and liberal economies, cultures, and the environment. rights. (Ian Clark, 2008) Philia – love Many global firms continue to promote consumer Phobia – scared goods and services. GLOBALIZATION – As a system, is currently led and Increase of trade and investment flows within and promoted by ideologies and policymakers who across countries. subscribe to the capitalist and neoliberal ideologies. CAPITALISM – Is the dominant economic framework LESSON 3: The Globalization Debate and system in many parts of the world today. >people tend to buy stocks of profitable companies. HYPERGLOBALIST (Global Optimist – Positive) >government of the Third World countries allow - It de-nationalized human affairs. mining corporations to operate even in places where - In the global age the state will be replaced by the ecosystem is vulnerable. institutions of global governance in which NEOLIBERALISM – Built on the profit motive by people pledge allegiance to entities beyond asserting that for capitalism to thrive, markets should the state and develop global civilization; be free from government intervention, claiming that - It argues that the driving forces of “Free markets and free trade will set free the creative globalization are capitalism, democracy, and potential and the entrepreneurial spirit which is built international institutions. into the spontaneous order of any human society, and - The role of national authorities will be to thereby lead to more individual liberty and well-being, facilitate connections among and between and a more efficient allocation of resources.’ different parts of the world through international organizations. (ASEAN, EU)  SIX CORE CLAIMS individuals, there must be the guaranteed rights of those who are a bridge between the individual and 1. Globalization is about the liberation and the state, the family being the first and foremost of global integration markets. such institution. 2. Globalization is inevitable and irreversible; 3. Nobody is in charge of globalization; - POPE FRANCIS 4. Globalization benefits everyone (…in the long run) 5. Globalization furthers the spread of CONTEMPORARY WORLD QUIZ 2 democracy in the world; 6. Globalization requires war on terror. REVIEWER Critics STATE Anti-Globalization – wants an end to what it considers - A state is a community formed by people and as a highly imbalanced system of globalization that exercising permanent power within a specified favors the First World over the Third World, territory. corporations over citizens and communities, and profit-seeking over environmental sustainability. Alter-Globalization – favors “altering” or “changing” the current system of globalization to make it more humane, more pro-environment, and more grassroots- driven rather than staying as a top-down imposition. GLOBALIZATION is the result of powerful governments, especially that of the United States, pushing trade deals and other accords down the throats of the world’s people to make it easier for corporations and the - States during the 17th century were largely wealthy to dominate the economies of nations around absolutist in form. These empire states did not the world without having obligations to the peoples of represent the nation of the people. those nations. - ❑Empire states were replaced by welfare - ROBERT McCHESNEY states. GLOBALIZATION is an immense global opportunity, for It is a compulsory political organization with a each and every continent, because it forces us to act centralized government that maintains the legitimate together with others. The alternative to globalization use of force within a certain territory (Weber, 1997). would be shutting ourselves off from others, but this is Elements of State not a viable alternative. It would lead only to isolation and therefore misery. - People - ANGELA MERKEL - Territory - Government In a world that tends to economic and cultural - Sovereignty globalization, every effort must be made to ensure that growth and development are put at the service of all and not just limited parts of the population… Alongside the globalization of the markets there must also be a corresponding globalization of solidarity; together with economic growth there must be a greater respect for creation; alongside the rights of TERRITORY – States established the boundaries within NATION-STATE which they exercised exclusive jurisdiction and control. - This refers to modern countries and their Domains of National Territory political apparatuses rules over a single nation. - It is a political community that emanates from 1. Terrestrial civic society to legitimately execute peace. 2. Fluvial 3. Maritime - It is an integration of the subgroups that define 4. Aerial themselves as a nation with the organizational structure that constitutes the state. GOVERNMENT – Agency through which the will of the “Not all states are nations, and not all nations are state is formulated, expressed, or carried out states.” SOVEREIGNTY Scotland – - A state’s capability of fulfilling international Bangsamoro – commitments and of promoting good South Korea – governance. Treaty of Westphalia – A set of agreements signed in - freedom/independence 1648 to end the Thirty Years war between the major ❑ internal – power of the state to rule within its continental powers of Europe. own territory The Westphalian system provided stability for the ❑ external – power of the state to rule outside the nations of Europe, until it faced its first major challenge territory by Napoleon Bonaparte. NATION – The concept of nation emphasizes the organic To prevent another war and to keep their systems of ties that hold groups of people together and inspire a privilege, the royal powers created a new system that, in sense of loyalty and belonging-i.e., ethnicity, language, effect, restored the Westphalian system. religion, and others (Schattle, 2014). The Concert of Europe was an alliance of great powers – the United Kingdom, Austria, Russia and Prussia – that - It refers to a social group that is linked through sought to restore the world of monarchial, hereditary common descent, culture, language or and religious privileges of the time before the French territorial contiguity. Revolution and Napoleonic wars. Examples of Nations: Palestinians fighting for their territory Kurds: largest ethnic stateless nation The Interstate System - The idea of a “system” requires the existence of units, among which interactions take place (Buzan 1993) - In the interstate system, the units are the states, and their interactions include war, diplomacy and cooperation. All these interactions are structured according to certain ordering principles. - The use of the term “interstate” is preferred Mexico: a state patching diversity to be one nation over “international” to emphasize that what is being dealt with are states instead of nations. Global Interstate System – "It is a facet of contemporary INTERNATIONALISM – interaction between various political organization that seeks to form collaboration sovereign states, the desire for greater cooperation and among nation-states through the establishment of unity among states and people. intergovernmental organizations." (Brazalote & Liberal Internationalism – It proposes that nations Leonardo, 2019) must give up their freedom and submit to a larger Global Governance – Global Governance is sometimes system of laws that is embodied by common referred to as "world governance." Global is a international principles. movement towards political cooperation among Socialist Internationalism transnational actors, negotiating responses to problems that affect more than one state or region. "Global - It contradicts liberal internationalism. Governance" may mean the process of designating laws, - It is based on the view that capitalism is a global rules, or regulations intended for a global scale. system and that the working class must unite as Intergovernmental Organizations a global class to forward the struggle against capitalism. - In order to facilitate connections among nation states, intergovernmental organizations (IGOs) were established. Theoretical Perspectives - Their aim is to foster strong economic, political, cultural, educational and technical REALISM intergovernmental relationships - In general, realist theories are suspicious of any Association of Southeast Asian Nations (ASEAN) – long-term possibility of peace. Realists assume Member Countries: Indonesia, Malaysia, Philippines, that just like human individuals, states are Singapore, Thailand, Vietnam, Laos, Myanmar and rational actors and their primary concern is to Cambodia maximize their self-interests. - Realists also assume that the structure of the European Union (EU) has 28 member states which was international system is anarchy. established in November 1993 LIBERALISM World Trade Organization has 164 member states. It is the sole IGO that caters to rules of trade on a global - Liberalists emphasize the pacifying role of scale. Its objective is to ensure that trade runs smoothly, international organizations, economic predictably and freely as possible. interdependence and democracy. - Liberalists insist that the security dilemma created by anarchy can be managed. The world may lack a central authority, but there are international regimes in its place. - Liberalists argue that democracies do not fight other democracies. They treat of states not as functionally similar units. CONSTRUCTIVISM - As a social theory, constructivism is concerned with the relationship between units and structures. It answers how we can understand the relationship between states and anarchy. - Constructivism emphasizes the role of ideas. The world is shaped not just by material factors but also by ideational forces.  - Constructivists highlight the importance of Semi-periphery – are the middle-income countries, such norms. as India and Brazil. These are considered semi-periphery - Norms are ideas that have an effect on the due to their closer ties to the global economic core. behavior of agents. Peripheral countries share characteristics of both core MARXISM and peripheral countries. - Marxism is a social theory that aims to Periphery – called as the low-income countries, whose scrutinize and critique the underlying natural resources or labor support the wealthier foundations upon which the contemporary countries, first as colonies and now by working for world system is built. Marxists point to multinational corporations under neocolonialism. capitalism and the relations arising from the Peripheral countries are dependent on core countries capitalist mode of production. for capital and have underdeveloped industry. - They argue that the world is primarily divided along economic lines, between the core developed states and the peripheral developing states. - They argue that developing states simply cannot follow the path led by the developed states and embrace the policies they recommend. Instead of helping, advanced industrial states have been accused of ‘kicking away the ladder”. This ladder is economic protectionism which they have used in order to achieve growth but have discouraged most developing states to adopt and pursue. GLOBAL ECONOMY Global Economy – is an economic interdependence established between the most influential countries that drives the worldwide economic environment. It is also the aggregate economic output, movement and influence of all countries. Division of Labor Economic Globalization – is a prominent feature of the contemporary world. It involves integration of Core – high income nations in the world economy. This economies around the world, particularly through free is the manufacturing base of the planet where resources trade and financial flows. funnel in to become the technology and wealth enjoyed by the Western World today. They are dominant capitalist countries that exploit peripheral countries for labor and raw materials. Bretton Woods Conference B. International Bank for Reconstruction and Development (IBRD) World Bank - To set up a stable monetary system - 1944 in Washington D.C - Open trade system that will help prevent great - To assist in the recovery efforts and promotion depression, promote world trade and support of investments. postwar economic rehabilitation efforts. - Active role in promoting development in Bretton Woods System different states. - Provide financial and technical assistance to - The first fully negotiated international monetary developing countries around the world. system. - A system in which governments would have a considerable leeway to pursue economic C. General Agreement on Tariffs and Trade (GATT) objectives. - 1948 in Geneva - A monetary order that would be based on fixed - Promote international trade by reducing or exchange rate to prevent currency eliminating trade barriers such as tariffs or manipulation. quotas - A system should provide liquidity to finance international transactions. - It should specify adjustment mechanisms D. World Trade Organization (WTO) - balance of payment - 1995 in Geneva Balance of Payments Disequilibrium – occurs when - Liberalize trade there is an imbalance between domestic savings and - Settle trade disputes domestic investments. A deficit in the current account balance will result if domestic investments is higher than domestic savings since the excess investments will US and Global Economy in Decline be financed with capital from foreign sources. - 1960’s- 1970’s the US economy slowed down - Vietnam war MULTILATERAL INSTITUTIONS - Heavy government funding on public education and urban development A. International Monetary Fund (IMF) - Oil Crisis in 1973, (OPEC) imposed an embargo - It was established in 1944 in Washington D.C after US and its allies decided to supply arms to - To supervise the fixed exchange rate system and Israel during Yom Kippur War. help countries with their balance of payment - The oil crisis plunged the world economy into problems. stagflation. - Foster global monetary cooperation - Stagflation – lack of economic growth is - Secure financial stability accompanied by high prices. - Facilitate international trade - The Bretton Woods system broke down. - Promote high employment and sustainable - Collapse of IMF economic growth - High-rate imports - Reduce poverty around the world - East Asian Crisis Embedded Liberalism – But if the state is suffering - Eurozone Crisis 2008 fundamental balance of payment problems, the system would permit that state to change its exchange rate. MULTINATIONAL CORPORATIONS 5 Dimensions - Organizations that own or control overseas Human Security – human right; refers to the security of companies or production or services facilities in people & communities one or more countries other than the home Economic – Employment, Basic Income, Access country. to Safety Net - Is a striking feature of contemporary economic Health – Health Services, Safe Environment, globalization. Safe Water - The natural response to a borderless world Personal – Physical violence, Domestic Abuse, economy. Predatory Adults - Directly engage in investments. Political – Human Rights, Freedom of Press, o Foreign direct investment (FDI) speech and voting o Portfolio investments Food – Food Supply, Basic Nutrition Reasons for foreign corporate investments Environmental – Natural Disasters, Air & Water Pollution, Conservation of Lands - Firms go to overseas to expand markets and find Community – Conservation of Culture, new buyers (market-seeking). Language & values, Prevention of Ethnic - Firms may find it cheaper to produce products Conflicts, Protection of Indigenous People abroad and sell them at home or in foreign markets resource-seeking. Environmental Security - Firms may seek to invest in other companies - Preventing/Repairing military damage to the abroad to help build strategic assets (strategic- place asset seeking). - Preventing/Responding to environmentally - Firms may also seek to enter new overseas caused conflicts markets in response to broad developments - Protecting the environment (efficiency-seeking. National Security POGO – Philippine Offshore Gaming Operations - Political Security (Protecting the Press) - Computer Security (Cyber Attacks) Global Security - Economic Security (Inflation) - Physical Security Global Security – measures taken by states and - Infrastructure Security organizations to ensure mutual survival and safety - Ecological Security - Military actions & diplomatic agreement - Energy and Natural Resources Security (treaties & conventions) Transnational Security – Non-military threats that cross - In the past, security meant the ability of states borders and either threaten the political and social to protect themselves from external threats integrity of a nation or the health - Today, security extends to freedom of groups and people from various forms of threat - Organizational Crimes o Human Trafficking o Endangered Species 2 Kinds of Threats o Drugs o Weapon Symmetric Threats – threats posed by other states o Black Market Asymmetric Threats – impossible to know the exact o Counterfeit Goods identity, location, and actual capabilities of the source o Money Laundering (air pollution, climate change, terrorist attack) Transcultural Security – Integrity of large collective identities to the absence of hostile clashes between members of different cultures Examples: Religion Racism Language Beliefs and Practices Ethnic