The Contemporary World 2018 PDF

The Contemporary World UNIT I Lisandro E. Claudio Patricio N. Abinales 2018  Lesson I: Globalization As described by Manfred Steger; it is the process of expansion and intensification of social relations and consc...

The Contemporary World UNIT I Lisandro E. Claudio Patricio N. Abinales 2018  Lesson I: Globalization As described by Manfred Steger; it is the process of expansion and intensification of social relations and consciousness across world-time and world- space. Viewed as an “Economic Process” Refers to the integration of the national markets to a wider global market signified by the increased free trade.  Expansion refers to both the creation of new social networks and the multiplication of existing connections that cut across traditional political, economic, cultural and geographic boundaries. Intensification refers to expansion, stretching and acceleration of networks.  Globalization relates to the way people perceive time and space. Globalization processes do not occur merely at an objective, material level but they also involve the subjective plane of human consciousness. Globalization and Globalism According to Steger, if globalization represents many processes that allow for the expansion and intensification of global connection, globalism is a widespread belief among powerful people that the global integration of economic markets is beneficial for everyone, since it spreads freedom and democracy across the world.  Global Experiences The two premises of Globalization – First, Globalization is a complex phenomenon that occurs at multiple levels. – Second, it is uneven process that affects people differently.  Multiple Globalization Anthropologist Arjun Appadurai stated that scapes are different kinds of globalization that occurs on multiple and intersecting dimensions of integration. Ethnoscape refers to global movement of people. Mediascape refers to the flow of culture.  Technoscape refers to the circulation of mechanical goods and software. Financescape denotes the global circulation of money. Ideoscape is the realm where political ideas move around.  Lesson II: The Globalization of World Economics The International Momentary Fund (IMF) regards “ economic globalization” as a historical process of human innovation and technological process. It is characterized by the increasing integration of economies around the world through the movement of goods, services and capital across boarders.  These changes are the products of people, organizations, institutions and technologies. These days, supercomputers can execute millions of stock purchases and sales between different cities in a matter of seconds through a process called high-frequency International Trading Systems Silk Road (130 BCE- 1453 CE) The oldest known international trade route. A network of pathways in the ancient world that spanned from China to Middle East and to Europe. It was called such as because one of the most profitable products traded through this network was silk. Galleon trade (1571) Connected Manila in the Philippines and Acapulco in Mexico. This was the first time that the Americas were directly connected to Asian country routes. Mercantilism (16th- 18th century) Countries primarily in Europe competed with one another to sell more goods as a means to boost their country’s income. Open trade system (1867) Its goal was to create a common system. The countries thus established a common basis for currency prices and a Great Depression (1920s-1930s) This depression was the worst and longest recession ever experienced by the Western World. Economist argues that it was largely caused by the gold standard, since it limits the amount of circulating money and, therefore, reduced the demand and consumption. Economic Historian Barry Eichengreen argues that the recovery of the USA began when they abandoned the gold standard, the US government was able to free up money to spend on reviving the economy. The Gold Standard (1970s) Through more indirect versions of the gold standard were used until as late as the 1970s and the world never returned the gold standard of the early 20th century. Fiat Currencies (Present) Currencies that are not backed by precious metals and whose value is determined by their cost relative to  Fiat Currency This system allows governments to freely and actively manage their economies by increasing or decreasing the amount of money in circulation as they see fit. Economic Policy – Trade Policy (export vs import) – Monetary Policy (interest rate, investment rate) – Fiscal Policy (taxes)  GNP and GDP GDP vs. GNP: An Overview Gross domestic product (GDP) is the value of a nation's finished domestic goods and services during a specific time period. A related but different metric, the gross national product (GNP), is the value of all finished goods and services owned by a country's residents over a period of time.  Both GDP and GNP are two of the most commonly used measures of a country's economy, both of which represent the total market value of all goods and services produced over a defined period. There are differences between how each one defines the scope of the economy. While GDP limits its interpretation of the economy to the geographical borders of the country, GNP extends it to include the net overseas economic activities performed by its nationals. GNP=GDP+(Export-Import)+remittances Foreign Direct Investment  The Bretton Woods System A network of global financial institutions that would promote economic interdependence and prosperity. John Maynard Keynes; a British economist, believes that economic crises occur not when a country does not have enough money, but when money is not being spent and thereby not moving. Two Financial Institution of The Bretton Woods System International Bank for Reconstruction and Development (IBRD or World Bank) – responsible for funding postwar reconstruction projects. International Momentary Fund (IMF) – the global lender of last resort to prevent individual countries from spiraling into credit crises.  General Agreement on Tariffs and Trade (GATT) 1947 - GATT’s main purpose was to reduce tariffs and other hindrances to free trade. - countries committed themselves to further global economic integration through GATT.  Neoliberalism and its Discontents A New form of economic thinking. It became the codified strategy of the United States Treasury Department, the World Bank, the IMF and eventually the World Trade Organization (WTO).  World Trade Organization (WTO)- a new organization founded in 1995 that continues the tariff reduction under GATT. The policies they forwarded came to be called the Washington Consensus.  Washington Consensus It advocates for minimal government spending to reduce government debt. Called for the privatization of government-controlled services like water, power, communication and transportation. Believing that Free  Washington Consensus pressured governments, particularly in developing world, to reduce tariffs and open up their economies, arguing that it is the quickest way to progress. Shock Therapy- necessary for long-term economic growth, the consensus conceded that certain industries would be affected and die. The Global Financial Crisis and the Challenge to Neoliberalism Mortgage-backed Securities (MBSs)- to ease the risks of loans, banks that were lending house owners’ money pooled this mortgage payments and sold them as MBSs. One MBS would be a combination of multiple mortgages that they assumed would pay a steady rate.  Economic Globalization Today Economic Globalization remains an uneven process, with some countries, corporations and individuals benefiting a lot more than others. Developed countries are often protectionists, as they repeatedly refuse to lift policies that safeguard their primary products that could otherwise be overwhelmed by imports from the developing world.  Protectionist measures from powerful countries and blocs, poorer countries can do very little to make economic globalization more just. Trade imbalances, therefore, characterize economic relations between developed and developing countries  Surplus/ deficit China 100b ========== Phil 10b China trade surplus Phil trade deficit Rich and poor countries (developed vs developing) Trade imbalance TNC –multi national / transnational corp.  Race to the bottom- refers to countries lowering their labor standards, including the protection of workers interests to lure in foreign investors seeking high profit margins at the lowest possible cost. Government weakens environmental laws to attract investors, creating fatal consequences on their ecological balance and depleting them of infinite resources (oil, coal and minerals.  International economic integration is a central tenet of globalization. Nevertheless, much of globalization is anchored on changes in the economy.  LESSON III: A History of Global Politics: Creating an International Order International Relations - The individual states and the internal politics of the country. - Interaction and trade deals between states. - Political, military and other diplomatic engagements between two or more countries  Internationalization - The phenomenon of exploring the deepening of interactions between states. - Not equal to globalization, though it is a major part of globalization.  The Attributes of Today’s Global System First, There are countries or states that are independent and govern themselves. Second, These countries interact with each other through diplomacy. Third, There are international organization, like the United Nations (UN) that facilitates these interactions. Fourth, beyond simply facilitating meetings between states, international organizations also take on lives of their own.  Concept of nation, state, country "country," or what academics also call the nation-state. This concept is not as simple as it seems. The nation- state is a relatively modern phenomenon in human history, and people did not always organize themselves as countries. State is a political concept, nation is an ethnic concept. (religion, customs, traditions, languages etc) The nation-state is composed of two non- interchangeable terms. Not all states are nations and not all nations are states. The nation of Scotland, for example, has its own flag and national culture, but still belongs to a state called the United Kingdom.  United Kingdom of Great Britain and Northern Ireland Great Britain –England –London England, Wales and Scotland USA- 50 states/ nations=1 country; 1 state (USA); 50 nations Every “states” have their own laws based on their culture, but one federal gov’t (one state and that is United States of America composed of 50 distinctive states/nations)  Meanwhile, if there are states with multiple nations, there are also single nations with multiple states. The nation of Korea is divided into North and South Korea, whereas the "Chinese nation" may refer to both the People's Republic of China (the mainland) and Taiwan.  China PROC –Peoples Republic of China – Capital : Beijing ROC –Republic of China – Taiwan ; capital is Taipei One China Policy- there is only one China and that is PROC. Embassy in China –Beijing Embassy –political, economic, cultural relations (bilateral or diplomatic relations) Taiwan –no diplomatic relations, economic and cultural relations only Taipei (Taiwan) –MECO – Manila Economic Cultural Office Manila (Phil) TECO- Taipei Economic Cultural Office  Arab nations; – United by Islam and geography, Arabic language – Many states or independent govt Saudi Arabia, Jordan, Qatar, Syria, Sudan, Tunisia, UAE, etc https://www.thoughtco.com/list-of-arab-states-1435128 In general, this area is tied together as a region because all of the countries within it are Arabic-speaking. Some of the countries list Arabic as their only official language, while others speak it, in addition to other languages.  What then is the difference between nation and state? In layman's terms, state refers to a country and its government, i.e., the government of the Philippines. A state has four attributes. First, it exercises authority over a specific population, called its citizens. Second, it governs a specific territory. Third, a state has a structure of government that crafts various rules that people (society) follow. Fourth and the most crucial, the state has sovereignty over its territory. Sovereignty here refers to internal and external authority. Internally, no individuals or groups can operate in a given national territory by ignoring the state. This means that groups like churches, civil society organizations, corporations, and other entities have to follow the laws of the state where they establish their parishes, offices, or headquarters. Externally, sovereignty means that a state's policies and procedures are independent of the interventions of other states. Russia or China, for example, cannot pass laws for the Philippines and vice versa.  Calling it "imagined" does not mean that the nation is made- up. Rather, the nation allows one to feel a connection with a community of people even if he/she will never meet all of them in his/her lifetime. Nation and state are closely related because it is nationalism that facilitates state formation. In the modern and contemporary era, it has been the nationalist movements that have allowed for the creation of nation-states. States become independent and sovereign because of nationalist sentiment that clamors for this Sovereignty is, thus, one of the fundamental principles of modern state politics.  The Interstate System Treaty of Westphalia- a set of agreements signed in 1648 to end the thirty years war between the major continental powers of Europe. Provided a stability for the nations of Europe until it faced its major challenge by Napoleon Bonaparte.  The Napoleonic War- lasted from 1803- 1815 with Napoleon and his armies marching allover much of Europe. Napoleon believes in spreading the principles of the French Revolution (Liberty, Equality and Fraternity) to the rest of Europe and challenge the power of Kings, nobility and Religion.  Napoleonic Code- forbade birth privileges, encourage freedom or religion and promoted meritocracy in government services. Concert of Europe- an alliance of “great powers” (UK, Austria, Russia and Prussia) that sought to restore the world of monarchical, hereditary and religious privileges of the time before French revolution and Napoleonic Wars.  More importantly, it was an alliance that sought to restore the sovereignty of states. Klemens Von Metternich - The Austrian diplomat, who was the Concert of Europe’s main architect.  Internationalism A system of heightened interaction between various sovereign states, particularly the desire for greater cooperation and unity among states and people. Two broad categories; Liberal Internationalism and Socialist  Liberal Internationalism - First major thinker was Immanuel Kant - States like citizens of countries, must give up some freedom and establish a continuously growing state consisting of various nations which will ultimately include the nations of the world. - Kant imagined a form of global government.  Jeremy Bentham- coined the word “international” in 1780, advocated the creation of “international law” that would govern the inter-state relations. Bentham believed that objective global legislators should aim to propose legislation that would create “the greatest happiness of all nations  Guiseppe Mazzini- An Italian patriot and the first thinker to reconcile nationalism with liberal internationalism. Mazzini was both an advocate of the unification of the various Italian- speaking mini-states and a major critic of the Metternich System.  Mazzini also believes in a Republican Government (w/o kings, queens and hereditary succession) and proposed a system of free nations that cooperated with each other to create an international system. Republican (indirect democracy, representative democracy) For Mazzini, free independent states would be the basis of an equally free and cooperative international system.  Woodrow Wilson- US President (1913- 1921) who became one of the 20th century most prominent internationalist. Like Mazzini, Wilson saw nationalism as a prerequisite for internationalism. For his faith in nationalism, he forwarded the principle of self-determination- belief that the world’s nation had a right to a free, and sovereign government.  One of Mazzini’s biggest critics was German Socialist philosopher Karl Marx. Karl Marx believed that any true form of internationalism should deliberately reject nationalism, which rooted people in domestic concerns instead of global ones. Marx placed a premium on economic equality and he divided the world into classes.  Socialist Internationalism - A union of European socialist and labor parties established in Paris in 1889. - The achievement included the declaration of May 1 as Labor Day and the creation of International Women’s day and it initiated the successful campaign for an 8-hour workday.  As the SI collapsed during World War I, a more radical version emerged. In the so-called Russian Revolution of 1917, Czar Nicholas II was overthrown and replaced by a revolutionary government led by the Bolshevik Party and its leader, Vladamir Lenin. The new state was called the Union of the Soviet Socialist Republics (USSR).  Communist International (Comintern) – Russian Revolutionary Vladamir Lenin established it to encourage these socialist revolutions across the world. The Comintern served as the central body for directing only more radical than the Socialist International, it was also less democratic because it followed closely the top-down governance of the Bolsheviks.  Joseph Stalin- Lenin’s successor, dissolved the Comintern in 1943. However, Stalin re-established the Comintern as the Communist Information Bureau (Cominform). The Cominform, like the comintern before helped direct the various communist parties that had taken power in Eastern Europe  With the eventual collapsed of the Soviet Union in 1991, whatever existing thoughts about communist internationalism also practically disappeared. Mikhail Gorbachev –perestroika (economic reform, restructuring) Glasnost- political (transparency) The SI managed to re-establish itself in 1951, but its influence remained primarily confined to Europe, and has never been considered a major player in international relations to this very day.  Internationalism is a very crucial aspect of globalization since global interactions are heightened by the increased interdependence of states. Increasingly, international relations are also facilitated by international organizations that promote global norms and policies such as the United Nations.  LESSON IV: The United Nations and Contemporary Global Governance International Organizations - United Nations - International Bank for Reconstruction and Development (IBRD or World Bank) - International Momentary Fund (IMF) - World Trade Organization - International NGO  Powers of International Organization IO’s have the power of classification IO’s have the power to fix meaning IO’s have the power to diffuse norms  United Nations The most prominent International Organization (IO) in the contemporary world. Five Active Organs of the United Nations (UN) - General Assembly (GA) - Security Council (SC) - Economic and Social Council (ECOSOC) - International Court of Justice (ICJ) - Secretary General  General Assembly (GA) - Main deliberative policymaking and representative organ. - The GA elects its president annually to serve a one-year term of office. - Filipino Diplomat Carlos P. Romulo was elected as GA President from 1949-1950.  Security Council (SC) - Considered by many commentators as the most powerful organ of UN as it consists of 15 member states. - GA elects 10 of these 15 to two-year terms. Other five referred to as Permanent five (P5); China, France, Russia, UK and USA. - Takes lead in determining the existence of the threat to the peace. - Calls upon parties to a dispute to settle and recommends adjustment or term of settlement. - States that seek to intervene militarily in another state need to obtain the approval of SC. SC’s approval leads to military intervention may be deemed legal.  Economic and Social Council (ECOSOC) - The principal body for coordination, policy review, policy dialogue and recommendations on social and environmental issues as well as the implementation of internationally agreed development goals. - Has 54 members elected for three-year terms. - It is the UN’s central platform for discussions on sustainable development.  International Court of Justice (ICJ) - Its task is to settle in accordance with international law, legal disputes submitted to it by states and to give advisory opinions referred to it by authorized UN organs and specialized agencies.  Secretary General - It is the bureaucracy of the UN, serving as a kind of international civil service. - Members of the secretariat serve in their capacity as UN employees and not as state representatives.  The UN is not a world government, and its functions primarily because of voluntary cooperation from states. If states refuse to cooperate, the influence of UN can be severely circumscribed. Challenges of the United Nation Perhaps, the biggest challenge of UN is related to issues of security. The UN Security Council is tasked with authorizing international acts of military intervention. Despite these problems, it remains important for the SC to place a high bar on military intervention. The UN Security Council has been wrong on issues of intervention, but it has also made right decisions.  International organizations are highlighted because they are the most visible symbols of global governance. The UN particular is the closest to a world government that is why it is important to remember that international institutions like the UN are always in a precarious position.  Chapter V: A World of Regions Regionalism - Seen as a political and economic phenomenon and examines relation to identities, ethnics, religion, ecological sustainability and health. - A process that must be treated as an “emergent, socially constituted phenomenon. - Regions are not natural or given; they are constructed and defined by policymakers, economic actors and even social movements.  Regions Group of countries located in the same geographically specified area. Two regions united or a combination of more than two regions. Regionalization and Regionalism Regionalization refers to the regional concentration of economic flows while Regionalism is a political process characterized by economic policy cooperation and coordination among countries.  Countries It respond economically and politically to globalization in various ways. Large countries have a lot of resources to dictate how they participate in process of global integration. GNP/population =per capita Small countries take advantage of their strategic resources by turning themselves into financial and banking hubs. Reasons why Countries Form Regional Associations: - For Military Defense - NATO, Warsaw Pact - To pool their resources - OPEC - To protect their independence - NAM (non aligned movement) - Compels countries to come together - Economic crisis  Non- State Regionalism New Regionalism - Tiny associations that include no more than a few actors and focus on a single issue, or huge continental unions that address a multitudes of common problems from territorial defense to food security.  Contemporary Challenges to Regionalism Nationalism Populism Financial Crisis Regional Stability Different visions of what regionalism should be for.  Countries will found it difficult to reject all forms of global economic integration, it will also be hard for them to turn their backs on their regions. The future regionalism will be contingent on the immense changes in global politics that will emerge in the 21st century.