GEED 10043 The Contemporary World PDF

Republic of the Philippines POLYTECHNIC UNIVERSITY OF THE PHILIPPINES College of Social Science and Development DEPARTMENT OF SOCIOLOGY & ANTHROPOLOGY INSTRUCTIONAL MATERIAL FOR GEED 10043 Contemporary World Compiled by : Contact Information: Aguinaldo, Mieca [email protected] Cabalatungan, Simon [email protected] Lazaro, Angelica [email protected] Nabong, Guillen [email protected] Santero, Gil Mari [email protected] Tena, Mejedin [email protected] The Contemporary World ABOUT YOU 2 by 2 Picture Student Name: ________________________ Student Number: ______________________ Course and Section: ___________________ Email Address: ________________________ Contact Number: _______________________ Address: ______________________________ 2 The Contemporary World COURSE SYLLABUS WEEKS TOPIC RESOURCES/ READINGS ASSESSMENT Week 1 Understanding the Mills, C.W. (1967) The Promise. Assessment 1 Contemporary World In the Sociological Imagination. Understanding the New York. Anchor Books Contemporary Claudio, L.E., and Abinales, World P.N. (2018) Lesson 1. In the Contemporary World. Quezon City: C and E Publication Claudio, L.E., and Abinales, P.N. (2018) Lesson 2. In the Contemporary World. Quezon City: C and E Publication Hardin, Garrett (1986). “The Tragedy of the Commons” Science, New Series Vol. 162 Pp 1243-1248 Benczes, Istvan Chapter 9 (2014), in the SAGE Handbook of Globalization De Leon, Hector S. (2011) Textbook on the Philippine Constitution Rex Printing Company Inc. Week 2- Understanding Global Logan, Amanda L. (2016) “ Assessment 2 4 Inequalities Why Can’t People Feed Understanding Colonialism & Themselves”: Archaeology Global Inequalities Neocolonialism Alternative Archive of Food Theories on Security in Banda , Ghana. Global Inequality American Anthropologist. Vol. 118 No. 3 Lappe, Frances Moore & Collins, Joseph (o.n) Why Can’t People Feed Themselves? Article 33 Claudio, Lisandro E. (2014) “ Locating the Global South” The Sage Handbook of Globalization Wallerstein, Immanuel (2006) “ The Modern World System as a Capitalist World- Economy. The World System Theory Pp 20-29 Namkoong, Young (1999) “ Dependency Theory: Concepts, Classifications and Criticism” 3 The Contemporary World International Area Review Vol 2. No 1. Week 3- Structures of Claudio, L. E., & Abinales, P. N. Term Paper 1 : 5 Globalization 2018. The Contemporary world. The Globalization The South Triangle, Q.C.: C & E of World Globalization of Publishing, Inc. Economies World Quintos P. June 2020. Policy Economies Paper: The Philippines’ COVID- Global Politics 19 Response: Symptoms of Assessment 3: and Deeper Malaise in the Global Politics and Contemporary Philippine Health Systems. Contemporary Global University of the Philippines Global Governance National College of Public Governance Administration and Governance Week 6- The World of Regions Term Paper 2: 8 The World of Regions Week 9- Contemporary Forms Atkinson et.al. 2015. The Assessment 5: 11 of Connectivity Sociology Book: Big Ideas Media and Religion and Explained.DK publishing 345 Globalization Globalization Hudson Street, New York. Media and Pew Research Center, April 5, Globalization 2017, “The Changing Global Religious Landscape”. Lule, Jack.2014. “Globalization and Media: Creating the Global Village” Sage Handbook on Globalization Week Global Demography Aoki, H. 2008. Globalization Term Paper 3: 12-14 Global City and the Street Homeless in The Global City Demography Metro Manila. Philippine and Migration Studies, Vol. 56, No. 1, Blair & Assessment 6: Robertson. Ateneo De Manila Demography and University. Migration INTRODUCTION: Why do we study the contemporary world? We all study history and it makes us believe that the events in the past have something to do with the present, then we should also study the present which is relevant to us. With this, the concept or process of globalization is being brought up. For Manfred Steger, globalization refers to “the expansion and intensification of social relations and consciousness across world-time and world-space”. It forms various kinds of connectivity, not just only in terms of economic activity. When we say expansion, it is the formation 4 The Contemporary World of various connections in social, political, economic, cultural, and technological. As for intensification, it refers to acceleration or maintaining these affiliations globally. With these processes of intensification and expansion that globalization allows, globalism emerged that explains the belief that the integration of economic markets is beneficial for everyone in global connections. If people criticize globalization, they are, more often than not, criticizing the indication of globalism and not globalization as globalization is not only focused on economic affiliation. More so, Globalization is widely recognized to remake the traditional social structures that transform the reality of people in every corner of the world. ABOUT THE SUBJECT: This course introduces students to the contemporary world by examining the multifaceted phenomenon of globalization. Using the interdisciplinary approach, the subject examines the social, economic, political, and technological context of the contemporary world and the increasing awareness and interconnected relationship of people from different places in the world. Moreover, the course provides an overview of the contemporary problems faced by the globalizing world and the different discourses on development and governance. Beyond this course’s description, the instructional materials to be discussed in the class desire to enrich the student’s understanding of the world by which they act as agents of change. COURSE DESCRIPTION This will be a completely online course that will be delivered to you by the instructor once the class schedule is finalized. Course content, including lecture PowerPoints, readings, videos, quizzes, and instructions for term paper requirements will be sent to the class via google drive. Also, lecture presentations will be conducted via video sessions through google meet where the instructor will virtually meet with you to discuss the week’s lecture. All course requirements must be completed during the semester. All discussions, term papers, quizzes, exams and other requirements the instructor finds necessary to accomplish must be completed by the due dates shown on the subject syllabus. COURSE OUTCOMES The subject is to provide an educational experience for students to understand the world by examining social, economic, political, processes that shape it. By completing the course students should be able to: 1. Understand the different social issues that presently exist in the contemporary world 2. Understand and apply the theories discussed in class to make sense of social issues. 3. Examine the general social problems faced by urban and rural settlers alike in the contemporary world and critically provide solutions through research. 4. Demonstrate their skills in conducting social research through the methodologies discussed in class GRADE PERCENTAGE BREAKDOWN: 70% Subject Assessment 30% Term Paper 5 The Contemporary World 100 TOTAL COURSE RULES: 1.MISSED REQUIREMENTS: If a student misses any class activities such as quizzes, recitations, and group activities, the faculty-in-charge will not provide any make-up class activities. If the reason for the absence of the student is excusable, the faculty-in-charge will grade him or her according to her current standing on the activity he or she missed. On the other hand, if the absence is not excusable, then said student will receive a grade of zero (0) for the missed activity. 2.SUBMISSION OF REQUIREMENTS: Submission of papers and other requirements will only be allowed during the class session unless otherwise provided for by the faculty-in-charge. Outputs of students who have failed to adhere to the format given by the faculty-in-charge will suffer grade deductions. 3.PLAGIARISM AND ACADEMIC DISHONESTY: The faculty-in-charge will require her students to submit home works and other outputs from time to time. She need not remind you to always cite your sources in APA (6th edition). Your failure to do so will tantamount to a grade of zero (0) for the said output. Students who willfully engage in acts of academic dishonesty shall be given a grade of zero or F on the academic exercise concerned. 4. CONTACT SCHEDULE: The faculty-in-charge strictly implements a schedule on approaching her in this new mode of learning. For any clarification and concerns, send a message through email provided by the faculty-in-charge only every Saturday to avoid influx and unread emails, you will receive a response the next day. Do not forget to state your name, section, and concern clearly on your email. OUTPUT FORMAT: Since this will be an online course that will be delivered to you, the instructor will divide the following output formats into two for two kinds of students – Offline and Online Students. What is an Online Student? The online students are those who have access to the internet and can participate in online video lectures. Online students will receive a google drive containing the readings, PowerPoint, and other instructional materials to be used throughout the semester. The instructor will send a soft copy of this module- Understanding the Contemporary World Module, as well as the google drive link to the class at the start of the semester. If you are one of these students you must use this file to answer each self-test and term paper output. These student modules will then be compiled by a designated student in one google drive folder and sent to the instructor via email by the end of the term. All the Course Assessments must be passed to the instructor by the end of the semester. Online students must use this word document to answer each assessment, will serve as their main work book. Format for Self-Tests and Term Papers: Arial 11 Single spaced Justified 6 The Contemporary World What is an Offline Student? Offline students are those who do not have the means to participate in online lectures. If you are one of these students a printed version of this module- The Contemporary World Module, will be delivered to you. For offline students, this course will imitate the practice of homeschooling where students will be graded based on their outputs by the end of the term. Offline students could put their answers in a short bond paper to be attached with this module, to be sent back to the instructor by the end of the semester. Format for Self-Test and Term Papers: Students could answer the self-tests and term papers in the blank spaces provided per section. Additional bond papers could be used by the students to answer each self- test and term paper as long as it remains true to the format. Contents LESSON 1: UNDERSTANDING THE CONTEMPORARY WORLD........................................... 9 UNIT 1: Defining Globalization............................................................................................... 9 Sociological Imagination......................................................................................................... 9 The Approach to this Course: Interdisciplinary......................................................................11 Defining Globalization............................................................................................................11 Nation-State, Nations, and Nationalism.................................................................................13 UNIT 2: Understanding Global Inequalities............................................................................16 The History of Colonialism.....................................................................................................17 The Consequence of Colonialism..........................................................................................18 Neoliberal Globalization.........................................................................................................18 Theories on Global Inequality................................................................................................23 LESSON 2: STRUCTURES OF GLOBALIZATION...................................................................30 UNIT 1: The Globalization of World Economies....................................................................30 What is economic globalization?............................................................................................31 Early historical traces of exchange up to present...................................................................31 Economic Crisis into Social Crisis (Atkinson et.al 2015)......................................................34 UNIT 2: Global Politics & Contemporary Global Governance................................................35 Politics’ Premise....................................................................................................................36 The International State System..............................................................................................36 Internationalism.....................................................................................................................36 The Global Governance........................................................................................................38 The United Nations................................................................................................................38 LESSON 3: THE WORLD OF REGIONS..................................................................................45 7 The Contemporary World The Global North and South..................................................................................................45 Defining Regionalism.............................................................................................................46 What are Regions?................................................................................................................47 Why form Regions?...............................................................................................................47 What is a Non-State Regionalism?........................................................................................47 What are contemporary challenges to regionalism?..............................................................48 LESSON 4 CONTEMPORARY FORMS OF CONNECTIVITY..................................................49 Unit 1: Religion and Globalization..........................................................................................49 What is Religion....................................................................................................................50 Connection between religion and economic structures..........................................................50 Religion and Globalism..........................................................................................................51 Realities in Religion...............................................................................................................51 Religion and Globalization.....................................................................................................52 The Global Religious Change Landscape..............................................................................52 UNIT 2: Media and Globalization...........................................................................................53 Media’s role in glocalization...................................................................................................55 How media affect societies?..................................................................................................55 LESSON 5: GLOBAL DEMOGRAPHY......................................................................................56 UNIT 1: Global City................................................................................................................56 Global cities are strategic for new types of operations...........................................................57 Different Societies appropriate the materials of modernity differently.....................................58 Global Issues, Local Perspectives (Atkinson et.al 2015) p.146..............................................60 Globalization and the Street Homeless in Metro Manila.........................................................60 UNIT 2: Demography and Migration......................................................................................63 Global Demography...............................................................................................................64 Overpopulation......................................................................................................................65 Population Growth and Food Security...................................................................................66 What is Migration...................................................................................................................66 References...............................................................................................................................69 8 The Contemporary World LESSON 1: UNDERSTANDING THE CONTEMPORARY WORLD UNIT 1: Defining Globalization Learning Objectives: By the end of this unit students must be able to: 1. Understand and apply the sociological imagination 2. Understand the Interdisciplinary Approach 3. Demonstrate critical thinking in comprehending contemporary event in light of the globalizing economic, social, political and cultural processes. Sections of the Unit: 1. The Sociological Imagination 2. Defining Globalization 3. Nation-State, Nation, Nationalism Sociological Imagination Why should we care? Why is it important to know the different global processes that influence our society? Because, as C Wright Mills argues, we must understand our problems in light of the greater context of social structures. By doing this, we can cure the parochial outlook to one's immediate community. A person who only looks at his community's problems without looking at the wider context of society is parochial. Also, one who looks at his country's problems without analyzing the larger global context is close-minded. This course aims to stretch the limits of your imagination. To get under the hood and examine the intricate mechanisms of the different global structures working hand in hand to maintain social equilibrium. As mentioned before, one of the purposes of this course is to broaden your imagination to understand the relationship between different structures of the contemporary world that produce our social realities. It is then critical for us to understand what I mean by using the word imagination to achieve this level of understanding. Before further discussing its implication, I would like to invite you to first read C Wright Mills' (1916-1962) first chapter in his book, "sociological imagination." As C Wright Mills (1916-1962) discussed, sociological imagination is the ability to see the social patterns that influence individuals, families, groups, and organizations. It is the individual’s 9 The Contemporary World awareness of the relationship between the individual and the wider society, both today and in the past. By exercising it, we make connections to the root cause of structures and move away from seeing things through our own personal lens. Through it we will be able to understand and explain how some of our problems are caused by underlying structural obstacles caused by certain social issues. As C Wright Mills explains (1916-1962), neither the life of an individual nor the history of a society can be understood without understanding both,” For example, when a single person is without employment in a nation whose population is close to a hundred million, the problems in employment remains a personal problem. Possibly, the person just doesn’t have the desire to put himself to work. If, however, thousands are without jobs in a nation of a hundred million people, then there may be a larger barrier that must be addressed. It may be the issue of job mismatched where many students graduate with credible degrees but remain jobless due to the inadequacy of finding the jobs that fit their particular skills within the country. My point in this matter is that when people share a common problem, a common experience of difficulty there may be an underlying social issue that must be addressed. Since these issues are outside of the personal sphere of an individual it calls into action a collective to address it by its roots. When personal problems are collectively shared it may be the expression of larger social issues that must be addressed. Let us try to illustrate this by mapping out the cause of certain personal problems experienced by students daily to its structural cause. Given the provisions from the Polytechnic University of the Philippines’ student manual, illness excused by a medical certificate as well as absences authorized in writing by the University, are the only grounds for excusing tardiness or absence. Given the urban circumstances of massive traffic and frequent public transport malfunctions, increasing student’s travel time, it may be appropriate to interpret student tardiness beyond the student’s conduct and inspect its social cause. Just as 10 The Contemporary World we may refer to the graph, student tardiness may usually be caused by either traffic or public transportation malfunctions. Let us for a minute, try and trace the web of influence that transcends the student’s personal sphere. Let us then ask, why is traffic in Metro Manila so congested? One of its sources would likely be the state of the urban population in the city. Why are there so many people living in Metro Manila? Well, we could trace three social roots: First, it may be because of the Filipino Families’ lack of basic knowledge in family planning. One that we could also link to the opposing views of the church and long-standing Christian values embedded into Filipino families’ traditions and social norms. Because of the inadequacy of knowledge in this subject, a surge in the population may be expected. More so, there is also the issue of migration, not from country to country but from rural to urban. Many Filipinos flock into urban centers with the prospect of finding a sustainable job to match their standard of living. Why are they migrating? One probable cause is the unbalanced discourse on development. As traditional livelihoods found in rural areas continue to become unsustainable and harder some Filipinos decide to settle inside cities to find jobs. Why so? As technology advanced people are finding new innovative ways to work and get paid. These kinds of jobs are usually found in urban centers. This may also be attributed to the in flock of Transnational Companies who enter the country to provide people with jobs through either services or manufacturing processes conducted in infrastructures that are usually located within the city. This exercise merely demonstrates the networked system of relations that exist within the contemporary world. For a true scholar of society to understand it , he must broaden his horizon to trace the interlocked webs of relations and understand how his personal problems are also consequences of larger social issues. The Approach to this Course: Interdisciplinary ( Claudio 2014) Our study of Globalization and the Contemporary World must be inherently interdisciplinary. Using the illustration we notice that the conclusions of different experts are different from each other all though they are studying the same thing. Why do you think they differ in conclusions? Because of their parochial perspective, they do not consider each part as a member of a larger whole. With an interdisciplinary approach, we could paint an accurate picture of the various globalizing processes. Our study of the process of globalization must then be inherently interdisciplinary so that we will be able to accurately understand the social, economic, political, and cultural processes that shape its structures. We will be able to see the whole elephant as it is and conclude a more accurate diagnosis of current events and the world in general. Defining Globalization Let us first clarify what it is not. As opposed to popular/ activist definition globalization is not neoliberal globalization or market globalism. Market Globalism or Neoliberal Globalization specifically conceptualize how neoliberal policies desire to create an international framework for economies to raise profit by minimizing the cost of investment. Globalization on the other hand, according to Steger, refers to the expansion and intensification of social relations and consciousness across world time and world space. Fulcher and Scott (2007) on the other hand, defined Globalization as a complex of interrelated processes, which have in common the idea that relationships and organizations have increasingly spread across the world. Globalization is a 11 The Contemporary World process that has destroyed distance in the sense that its processes are no longer limited to geographic boundaries. Moreover, with the intensified social relations that have linked people across the globe, men have a greater awareness of the events that are continually happening in the world. Attributes of Globalization ( Claudio 2014) 1. Various Form of Connectivity - These are forms of connections that may be economic, political, or cultural. For example, the Philippines and Vietnam as both members of the ASEAN ( Association of Southeast Asian Nations) engaging with trade with each other may be considered as an economic form of connectivity. On the other hand, the friendship or courtship of Ed and Rose forged within the platforms of social media sites may also be a form of connectivity that transcend world space and time. 2. Expansion and Stretching of Social Relations - An example of this is the expanding function of NGO ( non-government organization) in protecting the rights and dignity of Overseas Filipino Workers abroad ( OFWs). Migrante International, for instance, is a non-government organization based on the Philippines that seeks to form a global alliance because of its mission to safeguard the rights and wellbeing of Filipinos who are working abroad. 3. Intensification and Acceleration of Social Exchanges and Activities - As we have already stated, the intensification of social relations and consciousness across world time and world space is one of the key components of globalization. The stated intensification of social relations is largely attributed to the advanced technologies that are invented to improve human communication. For example, in the past, it would take two to three days before a message may be received by another person in the next city due to the slow-paced transportation of mail. With the discovery of Facebook and many social media sites, communication is instant and easily accessible from our fingertips. This is an example of how globalization has restructured our concept of time and space. Usually, due to the slow-paced mailing system, the further the receiver of the message is the longer it would take to communicate its content. However, with the invention of the World Wide Web and various social media platforms, our messages could reach other people, no matter the distance in mere seconds. Another example would be the screening of live television. No matter where you are in the world, you could all share the same experience of watching a Pacquiao fight through our televisions and computers. This is how globalization reshaped our concept of time and space. We seemingly are liberated more from its constraints. 4. Occurs Subjectively - Lastly, Globalization occurs subjectively in the sense that we are more conscious of the world we are living in. We live in a network where we could trace the various forms of social connectivity that shape our perception of the world and at the same time influence our actions within it. For example, we now think about the world; we voice out our opinions and our position in social issues that do not necessarily involve us. We are affected by campaigns such as the #BlackLivesMatters that happened in the United States to end police brutality against African Americans. We grieve and pray for the Australians who lost their homes in the forest fires that torched their houses. We do our part to alleviate climate change because we become more conscious that there are also problems without passports that demand our collective actions. 12 The Contemporary World Nation-State, Nations, and Nationalism ( De Leon 2011) With the intensified social relations reaching across the globe, it is expected that there has been an increasing rate of interdependence between nations from different parts of the world. Let us first define the Nation-State. It is considered as a political unit that has: 1. A National Citizen (People) 2. A National Territory (Land) 3. A National Administration (Government) The State The State is considered to be the main political actor inside the global political and economic arena. It is based on the objective realities that define a country. Meaning, it is measurable and quantifiable in the sense that the citizens are numbered, its territories have bounds and the national government is recognized and defined by the constitution of the land. Moreover, the State is considered as a community of persons more or less numerous, permanently occupying definite portion of territory, having a government of their own to which the great body of inhabitants render obedience, and enjoying freedom from external control. Elements of the State ( De Leon 2011) a. People- this refers to the inhabitants living within the state. Without people there can be no functionaries to govern and no subjects to be governed. There is no requirement as to the number of people that should compose a state. Ideally, it should be neither too small nor too large: small enough to be well-governed and large enough to be self-sufficing. b. Territory- it includes not only the fixed portion of land over which the jurisdiction of the state extends ( territorial domain), but also the rivers and lakes therein, a certain area of the sea which abuts upon its coasts ( fluvial and maritime domain) and the air space above the land and the waters( aerial domain). Thus, the domain of the state may be described as terrestrial, fluvial, maritime and aerial. c. Government- Usually used to refer person/s who has the function of political control/ administration. It is the agency that carries the will of the state. d. Sovereignty- Supreme power of the state to command or enforce obedience. The term may be defined as the supreme power of the state to command and enforce obedience to its will from people within its jurisdiction and corollary, to have freedom from foreign control. It has, therefore, two manifestations: i. Internal- the power of the state to rule within its territory ii. External- the freedom of the state to carry out its activities without subjection to or control by other states. External sovereignty is usually referred to as independence. e. Constitution- a body of rules and principles in accordance with which the power of sovereignty is regularly exercised. ▪ Nature and Purpose/ Function of Constitution i. Serve as the supreme or fundamental law ii. Establishes basic framework and underlying principles of government 13 The Contemporary World Origin of the States ( De Leon 2011) There are several theories concerning the origin of states, among which are: 1. Divine Right Theory - It is ordained by God to govern the people references to the law which Moses receive at Mount Sinai. Laws are from God; the tablet of our hearts bear His signature and our conscience bears witness of it (Romans 2:14-15).We know that God has set natural laws as moral laws- rights that come from God, written into the human conscience (Romans 1:19; Romans 2:12;14-15; 27). Natural Laws are considered as general principles inherent to Human Nature. It is what God has written in our hearts as the universal standard for recognizing good and bad (Romans 2:14-15). Positive Law, on the other hand, are the rights granted by the State. It is the cornerstone for our notion of social justice; which artificially materializes the provision of natural laws and creates regulations for civil life. In other words, positive laws as laws created by men merely recognize the natural laws predisposed by God. We notice how both are recognized in the United States’ Declaration of Independence: We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. — That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, — That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to affect their Safety and Happiness. 14 The Contemporary World As expressed, there are unalienable rights that are appointed to men as God’s creation, among which is - Life, Liberty and the Pursuit of Happiness. The US government, having been instituted by men, must then uphold these rights. With this in mind, natural laws are the foundation of our government. Laws are then framed by the state to restrain sin and promote righteousness. The very purpose of the Constitution is to uphold and recognize these natural laws by obstructing the government. The Constitution not only recognizes people’s natural rights, endowed by God but also recognizes that men are free to exercise these rights. It is through the laws that our inherent , God given rights are recognized. As Attorney Patrick Henry also interpreted, “The Constitution is not an instrument for the government to restrain the people, it is an instrument for the people to restrain the government...- lest it comes to dominate our lives and interests.” This is what happens in governance, the government pass laws and remove certain liberties in the name of the “greater good” according to the pronouncement of natural laws and uphold “ social justice,” as long as it is not unconstitutional and a violation of “unalienable rights” outlined by the Constitution. Furthermore, based on the provision of human rights, recognizing both the written and unwritten nature of legal and moral entitlement, citizens are protected through the constitution from the government. It is these rights that limit the state's use of its power against the citizens ( Wahiu 2011; Sarmiento 2014). 2. Necessity or Force Theory – It maintains that states must have been created through force, by some great warriors who impose their will upon the weak 3. Social Contract Theory- It asserts that the early states must have been formed by deliberate and voluntary compact among the people to form a society and organize government for their common good. This theory justifies the fight of the people to revolt against a bad ruler. It is not known exactly which of the above theories is the correct one. History, however, has shown that the elements of all the theories have played an important part in the formation and development of the state. The Nation On the other hand, the concept of nation is based on the idea that a political unit corresponds to nations. It is somewhat subjectively defined through the people’s sense of collective or communal identity. It is what Max Weber considers as a “community of sentiment” with a specific sentiment of solidarity in the face of other groups. Whereas, Benedict Anderson considers it an “Imagined Community.” He considers it as such because this sense of community is not necessarily defined by the objective provision of the law or the constitution. Confronting Discourses To ask what came first, the idea of a nation or the structures of a State, is like asking what came first, the chicken or the egg. Giddens (1985) argued that a nation did not exist until the state had constructed a national administration that stretched over its territory. To illustrate, we can put Giddens explanation to the metaphor of a Body and Spirit- the Body signifying the objective and physical structures of the state and the Spirit as the unseen essence of a nation as a “community of sentiment.” For Giddens then, the objective vessel of the State (measurable, quantifiable) is first constructed for the people to build a communal sense of shared sentiments, stretched over the State’s territory. As Giddens (1985) argued it was the state’s unification of its citizens that created the nation. On the other hand, the nationalist movements run contrary to the sequenced relationship explained by Giddens. The Nationalist Movements typically seek to create new states on the basis of a presumed national identity (a community of sentiments). Nationalist 15 The Contemporary World Movements argue that the objective structures of a State is born out of the struggle of a community with a common national identity. They struggle to claim that a nation has the right to self- government through its own independence. __________________________________________________________________________ ASSESSMENT 1 Instruction: In this section of the module, your general knowledge and understanding of the subject so far will be tested. Please answer the following questions in a 150-word essay. Please answer each question using the following format- Arial 11, single-spaced. For those who will receive a printed version of this module please answer the following in a short bond paper. Indicate the Self Test #_ and write your name ( Last Name, First Name , M.I) and your Course and Section. 1. What is Globalization and How does it occur subjectively? 2. Why should we use the interdisciplinary approach in studying Globalization? 3. Why do we need to exercise our sociological imagination to make sense of the contemporary world? 4. Explain the difference between the State and The Nation. ___________________________________________________________________________ UNIT 2: Understanding Global Inequalities Introduction: What is global inequality and why does it exist? This section of the course desires to answer this question in light of the contemporary theories and studies that will be discussed in class. Specifically, it will examine the source of global inequalities and their effects. The theories that will be discussed in class will give the students a clear understanding of the structures of global inequalities and their social, economic, and political consequences. ___________________________________________________________________________ Learning Objectives: By the end of this unit students must be able to: 1. Understand and apply theories on examining world inequalities 2. Examine contemporary problems in light of the theories discussed in class 3. Demonstrate critical thinking in comprehending contemporary realities in light of global economic relationships. Sections of the Unit: 1. The History of Colonialism 2. The Consequence of Colonialism 3. Theories on Global Inequalities 16 The Contemporary World ___________________________________________________________________________ The History of Colonialism ( Lappe & Collins o.n ) According to Francis Moore Lappe and Joseph Collins, the world is only divided into two: Minority of Nations and Majority of Nations. The Minority of Nations represents the countries that prioritize agricultural and industrial revolution. Whereas, the majority of nations are the countries that remain primitive and underdeveloped. This expresses the conditions of global inequality in the contemporary world. Francis Moore Lappe and Joseph Collin desire to understand why some nations are not able to feed themselves. They traced its cause to the history of colonialism. Colonialism according to Moore and Collins destroyed the already and initially built cultural patterns of production and change. For them, hunger and underdevelopment must always be thought of as a process. The reason why so many countries remain to be in poverty and underdeveloped is its history of colonialism. Lappe and Collins further express the reasons why colonialism destroyed the initial built cultural pattern of production. 1. Colonial Mind This is the mentality of the colonizers who colonize other people to be their subjects. The colonizers see agriculture in the subjugated lands as primitive and backward. Because of this, their process of colonization is not only justified but they see it as a necessary process. John Stuart Mill, an English economist, philosopher, and colonizer-apologist argued that, “ Colonies should not be thought of as civilizations or countries, but as agricultural establishments whose sole purpose is to supply the larger community to which it belongs.” 2. Forced Peasant Production As Walter Rodney recounts in his book, "How Europe Underdeveloped Africa," cash crops were often grown literally under the threat of guns and whips. The communities that were colonized by neighboring countries were forced to plant cash crops instead of food crops. The initial practice of planting food crops was for the sole purpose of feeding the community; whereas, due to the desire of the colonizing nation to gain profit through the peasant’s production of crops, they were forced to plant cash crops. This are the crops that are planted for its market value. They are planted not on the basis of its ability to feed the populace but rather its price in the global market. Because of this change the people were no longer dependent to their own practice of production. More so, the colonial government ensured to continue this peasant production of cash crops in two ways: i. Taxation- This was the most preferred colonial technique to force Africans to grow cash crops. The colonial administration simply put taxes on cattle land, houses and even to the people themselves. ii. Marketing Board- this emerged in the 1930s in Africa. It was defined as an organization set up by the government to regulate the buying and selling of a certain commodity such as coffee, cotton and cocoa. Within a special area. These marketing boards of Africa 17 The Contemporary World were only the institutionalized rendition of what is the essence of colonialism, which is the extraction of wealth. 3. Plantation- The second approach was direct takeover of the land either by the colonizing government or by private foreign interests. Some farmers were forced to work in plantations fields through either enslavement or economic coercion. 4. Suppressing Peasant Farmers - The colonial government formulated a policy of keeping the price of imported food low through removal of tariffs and subsidies. Peasants were told that they do not need to grow their own food, for they can always buy it cheaply through imported goods. However, the cheap food imports In conclusion, Francis Moore Lappe and Collins answered, why people can’t feed themselves? It is as they expressed the result of a history of colonialism that has destroyed the initial pattern of production. Colonialism Forced peasants to replace food crops with cash crops that were expropriated at very low rates. More so the colonial government, took over the best agricultural land for export crop plantations and then forced the most able-bodied workers to leave the village fields to work as slaves or for very low wages on plantations. Policies that were also implemented encouraged a dependence on imported food; and blocked native peasant cash crop. Cash produced by settlers or foreign firm. The Consequence of Colonialism Colonialism as expressed to be a practice of domination, which involves the subjugation of one people to another remains in contemporary forms as many scholars would argue. It is usually called as Neocolonialism. Neocolonialism is an indirect form of control through economic or cultural dependence. This is expressed in the continued control of former colonies through ruling native elites compliant with neocolonial powers, populations that are exploited for their labor and resources in order to feed an insatiable appetite. Neocolonialism is defined as the continuing active control exercised by the past colonizer government to control the affairs of the newly independent state. It perpetuates a system where great powers (usually the past colonizer countries) maintain their exploitative relationship with past colonies. This covert and indirect form of control creates a system of dependency. The metropolitan centers in seeking to be even more developed by “underdeveloping” the peripheries through trade exploitation. The peripheral countries (usually bearing the mark of colonial history) is extremely vulnerable to fluctuations in price and demand. The products they market have a higher ratio of competition. It is because many other neighboring countries produce the same products. According to Harold Nyikal in his article- “Neocolonialism in Africa: The Economic Crisis in Africa and the Propagation of The Status Quo By the World Bank /IMF and WTO,” Neocolonialism is colonialism in its modern dress. Western countries masked under the pretext of economic support for Africa, directly enforced or institutionalized in the World Bank, the International Monetary Fund ( IMF) and the World Trade Organization ( WTO). The policies that are implemented in Africa because of the loan conditionalities with this institutions chained it to western economies to continue to be dependent upon them. Their discourse on development prevents self-help programs and perpetuate the continuing relationship of dependence. Neoliberal Globalization Neoliberal globalization is the main driving system that continue systems of exploitation. It is generally marked by three essential characteristics: 18 The Contemporary World 1. Economic Liberalization- it is characterized by the flooding of the local market with imported goods that destroy the local industries and livelihood of the populace. Because of this, poverty and unemployment increase because locally produced goods suffer from the unfair competition brought about by the cheaper imports from the global market. The consequence of economic liberalization may be expressed in the state of Food Insecurity in the Philippines. Under the WTO Agreement on Agriculture (AOA) the Philippines is required to allow the progressive importation of rice ( 1% of domestic consumption in 1995, 2% in 2000 and 4% by 2004). More so, the unregulated market cause the transnational corporations and richer foreign nations to control the local market, forcing local production and local entrepreneurs out of the market. 2. Deregulation – the price of the products sold in the local markets of the peripheral states are no longer regulated by the government. Many commodities and products consumed by local consumers are privatized. 3. Privatization- This is the core of IMF/WB’s structural adjustment policies. Trade liberalization and market deregulation also lead to the privatization of public utility. This eliminates public subsidies on social services and public sector corporations. Privatization of state-owned water utilities was one of the conditions for loan in the 1995-1997 structural adjustment of IMF. Metropolitan Waterworks and Sewerage System was privatized. 4. Labor Export- More so, the exportation of labor force becomes the government’s strategy to pay debt ad regulate unemployment. In 2000, Philippines become one of the most top labor exporter. This had also led to the feminization of migrant labor, since majority of Filipino women comprise majority of the export labor 5. International Division of Labor – Under the old international division of labor, underdeveloped areas were incorporated into the world economy principally as suppliers of mineral and agricultural commodities. As developing economies are merged into the world economy, more production takes place in these economies. The Unholy Trinity (Cavanagh & Mander 2003; Peet 2003) The World Trade Organization (WTO), World Bank (WB) and IMF (International Monetary Fund) are usually considered as the unholy trinity. WTO and WB were institutionalized in Bretton Woods NH in July 1944. It was set up to regulate and govern the contemporary global economy. IMF was established to promote international monetary cooperation and provide policy advice and capacity development support to help countries build and maintain strong economies. IMF provide loans (short and medium term) funded by the pool of quota contributions from its members to countries that need it. Whereas, the World Bank for a time was called IBRD(International Bank for Reconstruction and Development) was established to help stimulate economic activity within poor countries. It was established in the aftermath of World War II to help finance the reconstruction of European nations. In the modern age, The World Bank promotes long-term economic development and poverty reduction by providing technical and financial support to help in countries reform and development projects – such as building schools, health centers, providing water and electricity, fighting disease , etc. To an unsuspecting eye, these intentions are good intentions to help developing countries get up on their own feet and compete with other nations in the global market. The problem however, lies on the loan conditionalities and structural- 19 The Contemporary World adjustment programs imposed on low- and intermediate-income countries by these institutions. According to Cavanagh and Mander (2003) structural adjustment requires governments to do the following: a. Cut government spending on education, healthcare, the environment, and price subsidies for basic necessities such as food, grains and cooking oil b. Devalue the national currency and increase exports by accelerating the plunder of natural resources, reducing real wages and subsidizing export oriented foreign investment c. Liberalize (open) financial markets to attract speculative short-term portfolio investment that create enormous financial instability and foreign liabilities while serving little, if any, useful purpose d. Eliminate tariffs and other controls on imports, thereby increasing the import of consumer goods purchased with borrowed foreign exchange, undermining local industry and agricultural producers unable to compete with cheap import, Increasing the strain on foreign exchange accounts, and deepening external indebtedness. With these loan conditionalities and structural adjustment programs Countries suffer from trade liberalization and the increasing privatization of public utility. By Liberalizing the financial market and eliminating the tariff the country’s local producers suffer because of the global competition. Globalization, Liberalization and Protectionism: The Global Framework Affecting Rural Producers in Developing Countries ( Khor, Martin 2007) Globalization according to Khor (2007) is often taken to mean a process that is synonymous with liberalization, or the opening up of the local and national markets to the global market. However, the economic globalization process is much more nuanced than this simple or automatic linkage between globalization and liberalization; for example, the internationalization of intellectual property rights (IPR) systems through the WTO has led to increased monopolization, especially by transnational corporations, that are better able to charge higher prices for their products then if they there were greater competition. Also, the high subsidization of and high tariffs on agricultural products constitute the continuation of high protection of the agricultural sector in the rich countries. in many developing countries, the process of liberalization and trade, investment, and finance has been taking place at significant rate and scope. This process has promoted by the loan conditionalities of the international finance institutions, the rules of the world trade organization, and unilateral policy measures. Thus, the policies associated with the globalization process are a strange combination of liberalization and protectionism (the theory or practice of shielding a country's domestic industries from foreign competition by taxing imports). The strangeness is perhaps accentuated by the fact that in some important instances developing countries are asked to undertake more intensive liberalization, whilst the developed countries are proposing to retain or even increased protection is policies. it is strange because normally it is accepted that the poorer and weaker countries should be given more time and flexibility to liberalize as they have to prepare and be ready to face competition from the bigger and stronger and surprises of the developing world; and that the already developed countries should liberalize more and faster as they have already reached a high level of development and can compete. perhaps the most important aspect of globalization is the globalization of policymaking. policies and decisions on a range of issues that for once under the sole or main purview of national governments are now made through international 20 The Contemporary World agencies or under their influence. many developing countries are policymakers in the sense that they had little "say" in the making of the rules or policies of some of the powerful international agencies, particularly the International Monetary Fund, the World Bank and the World Trade Organization, and they have to implement the policies at national level which have been laid out through these agencies. Ocean, as its decisions are made on a one country one vote system and as the developing countries are better organized to represent their interests there. However, in recent years the influence of the united nation over economic and social matters has declined significantly and the mandate and influence of the IFI ( International Finance Institution) and the WTO have expanded this shift of power to institutions that are dominated by the developed countries has meant the reduction of the influence of the developing countries in decision-making over economic and social issues at the international level There have been increasing concerns that the policy is adopted at or by some the major international agencies have not been appropriate or effective in meeting the development needs of developing countries. in the area of trade and trade-related rules, the concerns of particularly centered on the disappointment of developing countries that have not benefited much in terms of trade or income from the implementation of world trade organizations rules and some of them have suffered cause and losses. they are also concerned that the implementation of the trade- related aspects of intellectual property rights or TRIPS Agreement in the world trade organization may arrow the rights of farmers and holders of traditional knowledge. there are also concerns that alone conditionalities of the IFI have caused many developing countries to liberalize their import successively and to rapidly, especially as the high subsidies and protection continued to dominate in the developing countries. for many developing countries, the potential benefits of meeting export opportunities have not been realized, whilst the risk of import liberalization have become very real and a half already adversely affected rural livelihood and national incomes. The Global Agriculture Policy Framework (Khor, Martin 2007) Many developing countries that at one stage or another suffered a debt default situation came under the purview of the world bank and IMF, which were agreeable to arranging death rescheduling and new credit on condition the countries agreed to implement conditions, now commonly known as structural adjustment policies. The policies normally include the following approaches and measures as they pertain to the rural sectors: the withdrawal of the state from economic activities, the closure or downgrading of state marketing boards, privatization, reduction or removal of subsidies, elimination of import control such as quantitative restrictions, reduction of import tariffs, free orientation towards exports, and investment liberalization and deregulation, or the opening up of assets to for rent ownership. The structural adjustment policies have had a major impact on agricultural policies in developing countries. In particular, the removal of subsidies and protection from imports has made the rural producers more vulnerable to the direct effects and vagaries of the global markets, as the interventionist measures and capacity of the state were withdrawn. In many countries, rural producers are facing intense competition from imports that are cheaper than their own produce. the effects of loan conditionalities began to be felt in the 1980s and 1990s for most of the affected countries. The WTO made a later entry, as it is published in 1995. at first, to developing, country governments were hopeful that they would benefit from the new rules in agriculture, as the incorporation of agriculture into the system of the WTO would presumably lead to the dismantling of protection in the developed countries. agriculture is one area where the developing countries are widely believed to have a comparative advantage, and thus they expected to benefit from expanded exports to the rich markets. However, they were sorely disappointed, as the expected benefits have not accrued, due to the continued protectionism in the North. This maintenance of protectionist measures was 21 The Contemporary World allowed within the framework of the Agreement on Agriculture (AoA) On the other hand, the developing countries had, under the AoA, also committed to play strict limits on their domestic subsidies, to give quantitative restrictions placed on imports, and to reduce their boundaries. these commitments made it even more difficult for them to promote and protect the interest of their rural producers. The global economic framework on agriculture shaped to a large extent by the loan conditionalities of the IFS and the rules of the WTO has resulted in a situation where the developed countries are able to continue with an even expanding domestic subsidies and to continue with a significant level of export subsidies, as well as high tariffs on their sensitive agricultural products, while the developing countries are constrained ( by the WTO rules, by loan conditionalities and by budget constraints) from increasing their farm subsidies, and have strong pressure( through loan conditionalities) to maintain low applied tariff rates and even reduce these, as well as to significantly reduce their bound tariffs( through existing WTO rules and new proposed rules). The imbalances in the global framework have handicapped to developing countries, which already have week starting points due to their lack of financial and technical resources and their low level of development. The unilateral policies taken under structural adjustment have been reinforced or complemented by multilateral commitments that the countries are obliged to implement under the world trade organization rules. This combination of policies initiated under loan conditionality and then reinforce under multilateral rules as bound the developing countries in a web of commitment and policy constraints and measures and they find it difficult within this context to maneuver or to be able to choose between policy options that are suitable for their agricultural development. More so, many developing countries that had faced a debt default situation has come under the influence of loan conditionalities of the IFI ( IMF and WB). The 'structural adjustment' programs and policies include measures that affect rural producers directly. These include the liberalization of imports, the dismantling of state marketing boards and state procurement systems, and the reduction or elimination of subsidies. These policies resulted in the rural communities of many of these countries facing greater vulnerability. Effect of Inequality to the Rural Population (IBON Databank Facts & Figures 2014) Worsening Exploitation The exploitative landlord-tenant relationship with crop sharing systems such as 50-50, 1/3- 2/3, ¼-3/4 of the gross harvest in favor of the landlord remain widespread. Farmers get only 21% of the value of their fross harvest in Southern Tagalog and Only 19% in Eastern Visayas. Farmworkers also continue to receive low wages ranging from Php35 to Php200 per day. In Hacienda Luisita, sacadas (farmworker) earn only an average of Php 35 to Php 80 per day. IN Eastern Visayas, farmworkers earn an average of 18,000 a year or only Php 49 per day. In Cagayan Valley, farm workers are paid only Php40-Php70 per day in cassava and sugarcane plantations. All these are way below the so-called minimum wages set by the Regional Wage Boards. In Eastern Visayas, rice farmers’ incomes average Php 23.50 per day. In Southern Tagalog copra famers are left with nothing and driven deeper to debt. For fishermen working in fish cages and fish farms, they earn only Php100 to Php150 for 20 hours of work. Labor flexibilization is enforced in the plantations through the systems of gang labor and contractualization. Under these systems, regular farmworkers have been displaced and the hacienderos deal only with contractors or labor gang foreman. Prices of farm inputs, from seeds to fertilizers and agri-chemicals, increase every year. Fertilizer prices are now at Php 2,000 per 22 The Contemporary World bag from Php436 per bag in 2001. Other agrichemicals such as pesticides cost between PHp800 to Php1,600 per bag. On the other hand, rent for farm tools is also exorbitant. For example, the rent for a tractor is Php6,000 per hectare; the rent for thresher is 1/10 of the threshed palay. Peasant Struggles Despite the continuing hardship and repression, Filipino farmers are undaunted. For centuries, they have suffered the same forms of exploitative relation and repression. The struggles against Spanish and American colonization were largely pushed by agrarian demands and peasant revolts where hundreds of thousands of peasants fought and perished. Even after the country gained nominal independence from the US, peasant struggles have continued precisely because of the same feudal and semi-feudal condition has persisted. Land Occupation Farmers and farmworkers also wage successful land occupation campaigns across the country. The network of advocates from the church and non-government organizations (NGOs) including lawyers and international organizations provide support to such campaigns. In the Visayas area members of the San Roque Farmers Association (SRFA) in Bgy. Bonbon, Aloguinsan, Cebu stood up for their rights over the 168-hectare corn lands claimed by the Gantuangco family and other vested interests. They made their claim stronger the disputed lands by cultivating the lands for organic farming and strengthening their organization. In Bohol, the Trinidad Talibon Integrated Farmers Association (TTIFA) successfully occupied and cultivated 1,900 hectares of idle lands which were once a cattle farm issued to Marcos crony Danding Cojuangco and partners. The farmers have occupied and cultivated the land since the 1980s and struggle to have their organization and members reorganized by the DAR and be issued certificates of land ownership awards (CLOAs). They asserted their rights for support services such as paved roads and water supply including farm implements from the DA and the LGU. To date, even as they are threatened with land-use conversion to oil palm plantation promoted by the DA, the TTIFA members remain steadfast in their struggle to assert their right to decide what to plant and how to appropriate their produce. They have their rice mill, trade their rice, and set their price independent from big rice traders in Bohol Theories on Global Inequality World System Theory (Internet Modern History Sourcebook o.n; Wallerstein 2006) Immanuel Wallerstein in his book, The Modern World System: Capitalist Agriculture and the Origins of the European World Economy in the Sixteenth Century, developed a theoretical framework to understand the historical changes involved in the rise of the modern world. The modern world system of capitalism emerged after the crisis of the feudal system. Wallerstein in developing this theory explained how Western Europe rose to supremacy between 1450 and 1670. As Wallerstein argued, before the 16th century Western Europe was dominated by the feudal system. A system of relation between those who “have” and “have not”— the landlords who own the land and the peasants who do not own the land but work within it for wages. Wallerstein argued that Europe moved towards a capitalist world economy to ensure the continuing economic growth of the nation. This however, meant the expansion of geographical size in controlling the process of production across different states. The new world economy was not forged through imperial system of government which used political force (usually showing brute colonial control) to direct the flow of economic goods from the periphery to the center. The 23 The Contemporary World modern world economy did not rely on political force or colonial systems of exploitation but rather through economic coercion. Immanuel Wallerstein argues that nations co-exist in a world economy- a large geographic zone where there is a division of labor, exchange of basic goods and constant flow of capital and labor. In this kind of world structure capitalism strives. Capitalism as Wallerstein simply defines is an economic system based on the private ownership of the means of production and their operation for profit. Characteristics central to capitalism include private property, capital accumulation, wage labor, voluntary exchange, a price system, and competitive markets. The World-Economy and a Capitalist System coexist because of the international division of labor. A capitalist system cannot exist within any framework except that of a world- economy. Wallerstein as he defined the world-system as the necessary condition for capitalism to thrive- the linkage of sate’s economically through the international division of labor. Wallerstein (1974) said that a world-system is a "multicultural territorial division of labor in which the production and exchange of basic goods and raw materials is necessary for the everyday life of its inhabitants." This international division of labor can be illustrated through these categories: Core Countries Countries that are classified under the category of core- exploit other countries for labor and raw materials. They benefit most from the capitalist world economy. They are referred to as the “haves”. These countries have industries, government, social elites, financial power and systems of education. For the period under discussion, Wallerstein argued that much of northwestern Europe (England, France and Holland) developed as the first core region. Politically, these states developed strong central governments, extensive bureaucracies and large mercenary armies. This permitted the bourgeoisie or the local capitalist to extend his international commerce to extract capital surpluses from other countries through trade. They are at the forefront of technological progress and have significant influence on less developed non-core nations 24 The Contemporary World Semi-Periphery Between the two extremes the semi-peripheries are the countries that attempt to improve their relative position in the world economic system. They often serve as buffers between the core regions and the peripheries. Economically, these countries fail to predominate in international trade and do not benefit as much from a capitalist world economy as the core countries. They are countries that are exploited by the core but are also able to exploit other peripheral countries. Periphery These countries are considered to be those who “have not” By contrast, the periphery countries possess mining, forestry, agriculture, less power, poor systems of education and low wages that are incapable of sustaining affluent lifestyles. These areas lacked strong central governments or were usually controlled by other states. They export raw materials to the core, and relied on coercive labor practices. These countries usually have a colonial history that have damaged the structures of their local economy. In our context for example, America is the core state and the Philippines is the peripheral state. We export raw materials (i.e. electronic parts) to America, which they, in turn, process into a product because they are the ones who have capital (i.e. cellphones). Then sell it back to us. The core countries dominate and exploit the peripheral countries for labor and raw materials. The peripheral countries are dependent on core countries for capital. Moreover, it is usually characterized by high percentages of uneducated people who can mainly provide cheap unskilled labor to the core nations. There is also a high level of social inequality, together with a relatively weak government which is unable to control country’s economic activity and the extensive influence of the core countries. Capitalism as a World System (Wallerstein 2006; Vela 2001) Within Immanuel Wallerstein’s work the theme of inequality marks the gap between the Third World and the West. Only a transformation of the world-system itself, dealing with the structures of the international division of labor can inequality truly be resolved. According to Wallerstein Capitalism de-territorialized meaningful state boundaries. As he argued, “the techniques of modern capitalism and the technology of modern science, the two being somewhat linked as we know, enabled this world-economy to thrive, produce and expand without the emergence of a unified political structure.” Wallerstein also mentioned in his book- The Modern World System: Capitalist Agriculture and the Origins of the European World Economy in the Sixteenth Century, how capitalism continue to thrive in the modern world economy. He used the Kondratieff Cycle developed by Nikolai Kondratiev as a reference. In the 1930s the Soviet Union asked Nikolai Kondratieff a mathematician, to create a model that would prove that capitalism would fall and communism would endure. However, Kondratiev’s work proved to be contrary to the ideals of the Soviet Union. In his study of economic history, he reached the conclusion that economics was better explained by technology than class struggle. Kondratiev observed that technology did not evolve linearly but rather it leaps every 50 to 60 years. Cycle Period Description 1st Cycle 1770-1820 Initial mechanization 25 The Contemporary World 2nd Cycle 1820-1870 Steam power, railroads and telegraphs 3rd Cycle 1870-1930 Electricity, internal combustion and heavy engineering 4th Cycle 1930-1980 Mass production, Fordism and nuclear energy 5th Cycle 1980-2030 Telecommunications and informatics 6th Cycle 2030-2080 Robotics, alternative energies, and Human Enhancement Technologies Karl Marx predicted that capitalism was crisis prone and that it would soon fall apart. But Kondratieff found that capitalism reinvented itself with each crisis. As the saying goes, “ desperate times call for desperate measures” Crisis give rise to new solutions( investment in technology and new business models). These periods of crisis and struggle , lasting generally between 12- 15 years eventually creates a new form of capitalism. Crisis Sub-phases of Kondratieff Cycles Cycle Period Description Pre-cycles 1770-1820 Seven years’ War (1756-63) 1st Cycle 1820-1870 Napoleonic Wars 2nd Cycle 1870-1930 Crimean War, Triple Alliance War, American Civil War, Unification of both Germany and Italy 3rd Cycle 1930-1980 World War I and inter-war period 4th Cycle 1980-2030 Vietnam War, Space Race, Cold War, Arab-Israeli Wars (1967,1973) 5th Cycle 2030-2080 ?? The 1939-1945 period was one of intensive technological development and economic growth, in the face of massive destruction. The post-war period gave us strong and fast expansion with a 26 The Contemporary World new public “business model” of the Welfare State. As the K wave propose it is in times of desperation that people are investing in new technologies and thinking out of the box, trying new things and accepting the previously unacceptable. This is when a set of new technologies that have bene too risky to develop becomes more feasible due to the increased tolerance of risk. How Business Models Adapt (Wallerstein 2006; Veil 2001) When technology changes, capitalism adapts. Business models evolve for companies to continue to gain profit. As technology and the economy co-evolved new business models are created. Models like retail business, public companies, franchises, manufacturing, joint ventures, Private-Public Partnership, etc. have been developed to cope with the increasing complexity of the modern world. To simplify, Kondratiev argued, every technological revolution gives capitalism the opportunity to reinvent itself. For example, we have recently seen the invention of new extra- national currencies such as bitcoin and commercial transactions are focused on reducing bureaucratic barriers between the provider of service and monetization, like Pay Pal. Understanding the consumersis important in developing new dynamic business models. The users may change over time which is why businesses must remain flexible. We could use the manufacture of drones as an example. It was initially created for military used; however, after some tie, it is also used as a tor or in agriculture to dust crops with insecticide. The Kondratieff Cycle or K Wave as some would call it is a long duration economic cycle of capital goods expansion that plays at over a period of about 50 years and underlies the usual boom-bust cycles characteristics of a capitalist economy. It may be divided into four phases. Spring- A time of new innovation sparks production and growth. People start investing into new technologies and think outside the box to try and find new things previously unacceptable. This is when a set of new technologies that had been too risky to develop becomes more feasible. Summer- increase in the general affluence level leads to changing attitudes toward work that result in a deceleration of economic growth. 27 The Contemporary World Autumn- Stagnating economic conditions give rise to a deflationary growth spiral that gives rise to isolationist policies, further curtailing growth prospects. Winter- Economy in the throes of a debilitating depression that tear the social fabrics of society. This is when the dwindling number of the “haves” and the expanding number of the “have-nots” increases dramatically. The first resulted from the invention of the steam engine and ran from 1780 to 1830.The second cycle arose because of the steel industry and the spread of railroads, and ran from 1830 to 1880.The third cycle resulted from electrification and innovation in the chemical industry, and ran from 1880 to 1930.The fourth cycle was fueled by autos and petrochemicals, and lasted from 1930 to 1970.The fifth cycle was based on information technology and began in 1970 and ran through the present, though some economists believe we are at the start of a sixth wave that will be driven by biotechnology and healthcare. Stages of Growth The development of the modern world economy according to Wallerstein lasted centuries. During this time, different regions changed their positions within the system. Wallerstein divided the emergence of the capitalist world economy into four stages. Stage 1 & 2 Wallerstein believed that this emerged between 1450-1670m, when the Hapsburg Empire failed to convert the emerging world economy to a world empire. Since it cannot be politically united under the same system of empire what emerged was the modern world system sustained by the international division of labor among states- existing interdependently. Bureaucratization was the process that aided the limited but growing power of the king. Because of the state’s power to collect taxes the king increased the state power to borrow money and thereby further expand the state bureaucracy. Homogenization also helped the process of solidifying the modern world economy. To underline the state involvement in the new capitalist system they encouraged the rise of indigenous capitalist groups. Minorities were expelled from the core states. Spain and France were expelled with the rise of absolute monarchy. Next, the Expansion of the militia (military force that is raised from the civil population), to support the centralized monarchy through military resources. More so, it would prevent the state from invasion. Next, Diversification was also important to improve the economic activities of the state to maximize its profits and strengthen the position of the local bourgeoisie. According to Wallerstein, by 1640 northwestern European states secured their position as core states in the emerging economy. Spain and Northern Italy was displaced; declining to the category of semi-periphery. Stage 3 & 4 Industrial rather than agricultural capitalism represented this era. With the shifting emphasis on industrial production. European state participated in exploration for the exploitation of new markets across the globe. The competitive world system emerged such as the Indian Ocean system. Asia and Africa entered the system in the 19th Century as peripheral zones. During this phase, the core region shifted to a combination of agricultural and industrial interest to purely industrial concern. 28 The Contemporary World Through this theory, Wallerstein attempts to explain why modernization had such wide- ranging and different effects on the world. He showed how political and economic conditions after the breakdown of feudalism transformed northwestern Europe. With his theory in mind, we could see how the geographic expansion of the capitalist world economy altered the political system and labor condition wherever it was able to penetrate. In hindsight the world system analysis gives us a narrative of world historical development from the 16th century to the present, with boundaries, structures, member groups, rules of legitimation and coherence. Dependency Theory The dependency theory explains the economic development of states. The theory was developed in the 1950s. to explain how both the development and the underdevelopment of countries are related in the international system. It in itself is a mixture of various theories that also include Wallerstein’s world system theory. This theory simply answers why there are countries that are poor and some rich. Economically, it argues that neoliberal policies continue the system of dependence that chain developing countries’ economic status to the developed countries. This is why developing countries remain poor. They fit in the mold of the economic hierarchy of the world economy. The core countries, 1st world countries perpetuate their dominance through resource bondage. Where instead of the practice of self-help- where developing countries produce goods and resources for themselves, they are economically coerced through the neoliberal policies and loan conditionalities established by the World Bank, World Trade Organization and the International Monetary Fund. These countries continue to be dependent to the core countries since synonymously the core countries need the infinite supply of raw material sand cheap labor that these peripheral countries provide to maintain their economic status. According to Romanuik (2017) there are three main characteristics of the dependency theory worth taking note of. First, the international system seen as the sum of two set of states- the dominant and the dependent. Secondly, the dependency theory holds that external forces are critical in terms of economic activity of dependent states. Lastly, the relationship of the two is based on historical patterns and dynamics. The years that followed the end of the Second World War in 1945 and the swift and extensive process of decolonization could be traced as the roots of state’s dependency. After the Second World War the United States and the Soviet Union acted as the new leaders of the new world (a world where there are more independent states liberated from their past masters). Both acted to lead the world into a new although with opposing ideals in mind. Neocolonialism was the dominating and expanding ideology of the United States and Socialism for the Soviet Union. Many countries did not follow the international framework of the United States, rather they pursued the influence of the Soviet Union’s socialist model. The economic system established by the neocolonial ideology of the United States explain the continuing structure of relationship between past colonies to their past colonizers. Peripheral countries become dominated by the foreign interest that originates from core countries. Although underdevelopment can be overcome, for it to be accomplished, countries need to be disconnected from the dominance of the core countries and the system or structure that their interest and policies produce. 29 The Contemporary World ASSESSMENT 2 Instruction: In this section of the module, your general knowledge and understanding of the subject so far will be tested. Please answer the following questions in a 150- word essay. Please answer each question using the following format- Arial 11, single-spaced. For those who will receive a printed version of this module please answer the following in a short bond paper. Indicate the Self-Test #_ and write your name ( Last Name, First Name , M.I) and your Course and Section. · Write a short paper (1,000 words min) that addresses the contemporary condition of the Philippines by applying both the dependency theory and the world system theory. By doing so, students must apply the theories discussed in this module to shed light on the present circumstance of the country’s economy. Students are advised to use newspaper articles to try and make sense of the Philippine’s position in the world economy. LESSON 2: STRUCTURES OF GLOBALIZATION UNIT 1: The Globalization of World Economies Introduction: We learn that politics, culture, and economy are interconnected. This chapter will focus on the economic area of globalization and how it came to be. This section will not only focus on the the global history but apply the theories on the present situation, specifically with the global pandemic we are experiencing. The discussion will provide how important the economy is. At the same time the discussion will also focus on the matter of macro (global market) perspective and micro perspective (community /individuals). The discussion will give the students a clear understanding of the structure of the global economy and its consequences. Learning Objectives: By the end of this unit students must be able to: 1. Define economic globalization 2. Identify the actors that facilitate economic globalization 3. narrate the short history of global market integration in the twentieth century 4. Demonstrate critical thinking in comprehending contemporary realities in light of global economic relationships. 5. And articulate stance on global economic integration Sections of the Unit : 1. What is economic globalization? 2. Early historical traces of exchange up to present 3. Economic Globalization today 4. Economic Crisis into Social Crisis 30 The Contemporary World What is economic globalization? According to Held et. Al (1999), globalization may be thought of initially as the widening, deepening, and speeding up of worldwide interconnectedness in all aspects of contemporary social life. Globalization is best thought of as a multidimensional phenomenon. It refers to the increasing integration of economies around the world, particularly through the movement of goods, services, capital and even people (labor) & knowledge (technology) across borders. In this discussion’s context these are the important terms and concepts: Internationalization- Extension of economic Activities. Economic Globalization - Integration between dispersed activities. As defined by Szentes, ‘in economic terms globalization is nothing but a process making the world economy an organic system by extending transnational economic processes and economic relations to more and more countries and by deepening the economic interdependencies among them. Nation State is still a relevant factor on globalization. Globalization- Globalization is nothing but a process making the world economy an “organic system”Globalization transforms the national economy into a global one.Globalization is an effective manager of the national economy. The International Monetary Fund (IMF) regards “economic globalization” as a historical process representing the result of human innovation and technological progress (Claudio and Abinales 2018). It is characterized by increasing integration of economies around the world through movement and exchange of goods, services and capital. (Claudio and Abinales 2018). Much like globalization, the definition of integration along with other consequences of it is qualitative and subjective. Are the increase in Growth Domestic Product (GDP) and Foreign Direct Investment (FDI) are good indicators of the increasing integration? According to the United Nations Conference on Trade and development (UNCTAD), the amount of FDIs flowing across the world was 57 billion US dollars in 1982, by 2015 that number was 1.76 trillion dollars (Claudio and Abinales 2018). These dramatic increases in global trade happened in the span of just a few decades. Considering the increased speed in exchange and frequency of trading due to technological advancements, the world is quickly evolving. From songs Compact Disks to MP3 format that you can download online. Physical exchange was gradually replaced or supplemented by online virtual access. On the other hand, there is a cultural lag between not only nations but also in the communities that belong to it. Internet connection is now considered as an essential commodity especially now that everything that we do is now anchored to the world wide web. In these trying times of the COVID-19 pandemic, access to the internet and personal priorities were the problems of a poor student. The discrepancies between the rich and poor are still significant. This chapter assesses economic globalization and examines who benefits and who is left out. Early historical traces of exchange up to present Gills and Thompson (2006) suggests that globalization processes have been ongoing since Homo sapiens began migrating from the African continent ultimately to populate the rest of the world. International Trading Systems is not new, the oldest known international trade was the Silk Road – a network of pathways in the ancient world that spanned from China to what is now 31 The Contemporary World the Middle East and to Europe. Traders used the Silk Road from 130 BCE when the Chinese Han Dynasty opened the trade to the West up until 1453 BCE when the Ottoman Empire closed it. However, the Silk Road was not considered “global” because it had no ocean routes that could reach the American continent. According to historians Dennis O. Flynn and Arturo Giraldez, “all important populated continents began to exchange products continuously – both with each other directly and indirectly via other continents – and in values sufficient to generate crucial impacts on all trading partners.” Flynn and Giraldez, trace this back to 1571 when the galleon trade was established, that connected Manila in Acapulco. This was the first time that the Americas were connected to Asian trading routes. Important concept: International Monetary System (IMS)-Rules, customs, instruments, facilities, and organizations for affecting international payments (Salvatore, 2007

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