The Contemporary World - SS113 Course Pack - Davao del Norte

The Contemporary World SS113 Course Pack Davao del Norte State College Academic Year 2022-2023 Preface It is a visible fact that the world has been constantly changing due to globalization. When we talk about globalization, it encompasses all aspects of our lives and the things around us intertwined with each other in different degrees and aspects. It can be economic, political or in socio-cultural level. Yet, as a consequence to this phenomenon we are facing in this contemporary world, new ideas, innovations, and even problems and issues emerged. These concepts are diverse and should be seen in a multi-faceted lens where all of us should participate in tackling and providing solutions even in our own little ways. This subject will discuss topics about geography, history, economics, culture and political science as we form our understanding towards globalization along the way. The aim of studying the contemporary world is to guide you, the young generation to become critical thinkers as you engaged in the current events and issues around us with the hope of developing your awareness, life competencies, construct knowledge, mindfulness and sense of accountability towards our evolving world. Lastly, the authors behind this course pack The Contemporary World, hopes that this set of modules will help you, the students of Davao del Norte State College, to cope with the challenging times we are in and to find light in continuing your education even while on a distant and blended learning. Padayon! Social Science Faculty Davao del Norte State College CLASS REMINDERS Welcome to The Contemporary World! Please take note of the following reminders before going through the modules. ☺ This course will take you to different aspect and parts of the world, so be ready to widen your imagination and sharpen your critical thinking skill. The course pack composes of several modules, where each module contains two or more lessons. Each lesson has a preliminary activity that will help you open your understanding on the lesson to be discussed. After Abstraction or the lesson discussion, you will have to answer or do an activity provided under the Application. Most of the times, answering the questions or doing the tasks are offline, but there are times that we really have to go online especially for research purposes and further readings. Do not pressure yourself! Each lesson has a time frame of one week or two so that you have enough time to finish your work. Be responsible and manage your time wisely. We are all in this together! Your instructors are your guide in this learning journey, always keep in touch with them in any possible way you can for announcements and further instructions. Do not be shy to contact them for clarifications about the subject. Online communication medium will be established for every class, so always be updated and keep in touch with your classmates. Always be respectful. Be polite when communicating with your teachers and even with your classmates. We may have a different platform of learning right now, but our good values must always be maintained whatever and whenever happens.☺ Enjoy the course! Keep going and always look at the brighter side of every situation. Learning can be done everywhere as long as we are determined to continue. ☺ TABLE OF CONTENTS TOPIC PAGE MODULE 2 Lesson 3 The Global Divides, Economy, and Interstate System……………. 1-14 Lesson 4 Market Integration ………………………………………………… 15-25 Lesson 5 Global Governance………………………………………………… 26-34 Lesson 6 Global Governance ………………………………………………… 35-46 MODULE 2 Structures of Globalization LESSON 3 The Global Divides, Economy, and Interstate System LEARNING OUTCOMES: At the end of the lesson, the students will be able to: ✓ Define economic globalization ✓ Identify the actors that facilitate economic globalization ✓ Define modern world system ✓ Articulate a stance on global economic integration TIME FRAME: one week INTRODUCTION Have you ever wonder how a single shirt you have in your closet was fabricated from outside the Philippines with the materials coming from different countries and manufactured into another place? Curiosities like this will be answered in this lesson as we discuss how our economies work closely with one another. ACTIVITY Before the pandemic happens, observe the economic roles of each member in your household, fill in the chart who is the corresponding member to the following roles. Role Household/Family Member 1. Breadwinner *ex. Father (you can have multiple answer if your family has more than one) 2. Decision-Maker Household Chores Student/s Professionals (who assist the breadwinner in the household expenses) 1 ANALYSIS Based on your answers above, reflect on the questions/sentence below: Among the roles mentioned above, what is the most crucial role that could negatively affect the family if not performed? Imagine that each member represents a country and each of you has significant roles to do in order to maintain the order of the economy. How important it is for everybody to maintain their roles? Just like a certain household or family, the global economy is connecting each country with each of them having a role to play. When one of them fails to do their tasks, it could affect the whole system. Provide a specific example regarding the mentioned situation. ABSTRACTION ABSTRACTION The International Monetary Fund (IMF) regards “economic globalization‟ as a historical process representing the result of human innovation and technological progress. It is characterized by the increasing integration of economies around the world through the movement of goods, services, and capital across borders. These changes are the products of people, organizations, institutions, and technologies. As with all other processes of globalization, there is a qualitative and subjective element to this definition. United Nations defines economic globalization as the “increasing interdependence of world economies as a result of the growing scale of cross-border trade of commodities and services, flow of international capital and wide and rapid spread of technologies. It reflects the continuing expansion and mutual integration of market frontiers and is an irreversible trend for the economic development in the whole world at the turn of the millennium. The rapidly growing significance of information in all types of productive activities and marketization are the two major driving forces for economic globalization.” According to Dennis O. Flynn and Arturo Giraldez, global trade emerged when all heavily populated continents began to exchange products continuously - both with each other directly and indirectly via other continents - and did so in values sufficient to generate lasting impacts on a trading partner. The Manila galleon trade or commonly known as galleon trade is the first global trade to date. It is through this trade that the American continent was directly connected to Asian trading routes which conduit for the exchange of goods, people, and ideas between the East and the West. 2 Given the complexity of the dynamic of global trade, conflicts between the trading countries may rise from time to time due to political and economic differences. One of the factors why countries in the past are at war and suffered economic downfall is due to unsettled trade conflicts as countries struggles to keep their track in the global trading. Economy of mostly all countries around the globe are intertwined since the start of economic globalization, this leads to the interdependent of each market. With this nature, if there exist discord even between two countries or is one country with bad economic condition could bring large impact to the global economy. You might now wonder how most of the countries around the globe are still in track of global trading despite of each other’s differences. Due to susceptibility of global economy, there are numerous global actors that facilitates economic globalization. Before delving deeper to the different roles of these global actors, it is important to note that these are the institutions and agencies acting at the global level who contributes to the processes of globalization especially in global politics (Madsel & Christensen, 2016). United Nations The United Nations is a diplomatic and political international organization with the intended purpose of maintaining international peace and security, develop friendly relations among nations, achieve international cooperation, and serve as a center for coordinating the actions of member nations. At its founding, the UN had 51 member states; as of 2024, it has 193 sovereign states, nearly all of the world's recognized sovereign states. Specialized Agencies 1. International Labor Organization is a United Nations agency dealing with labor problems, particularly international labor standards, social protection, and work opportunities for all. 2. Food and Agriculture Organization of the United Nations (FAO) a. A specialized agency of the United Nations that leads international efforts to defeat hunger b. Help eliminate hunger, food insecurity and malnutrition c. Reduce Rural Poverty d. Make agriculture, forestry, and fisheries more productive and sustainable e. Enable inclusive and efficient agricultural and food systems f. Increase the resilience of livelihoods to threats and crises 3. United Nations Educational, Scientific and Cultural Organization a. Contribute to peace and security by promoting international collaboration through educational, scientific, and cultural reforms to increase universal respect for justice, the rule of law, and human rights along with fundamental freedom. 3 b. Contribute to building peace 4. World Health Organization a. Building a better, healthier future for people all over the world b. Concern about public health c. The prime concern is to eradicate and combat dangerous diseases like AIDS/HIV d. Make researches in medicines and vaccines to eliminate diseases and development of nutritious foods e. Responsible for World Health Report and Survey Other Specialized International Institutions 1. International Civil Aviation Organization (ICAO) to foster the planning and development of international air transport to ensure the safe and orderly growth of international civil aviation throughout the world. 2. International Maritime Organization (IMO) responsibility for the safety and security of shipping and the prevention of marine pollution by ships 3. International Telecommunication Union (ITU) a. Connecting all the world's people b. Global radio spectrum and satellite orbits, develop the technical standards that ensure networks and technologies seamlessly interconnect and strive to improve access to ICTs to underserved communities worldwide 4. Universal Postal Union (UPU) a. Ensure a truly universal network of up-to-date products and services b. Sets the rules for international mail exchanges and makes recommendations to stimulate growth in mail, parcel and financial services volumes and improve quality of service for customers 5. World Meteorological Organization (WMO) a. A specialized agency of the United Nations for meteorology (weather and climate), operational hydrology and related geophysical sciences b. The UN system's authoritative voice on the state and behavior of the Earth's atmosphere, its interaction with the oceans, the climate it produces and the resulting distribution of water resources. 6. World Intellectual Property Organization (WIPO) a. Intellectual property (IP) refers to creations of the mind, such as inventions, literary and artistic works, designs, and symbols, names, and images used in commerce, e.g. patents, copyright, and trademarks b. Lead the development of a balanced and effective international intellectual property (IP) system that enables innovation and creativity for the benefit of all 7. International Fund for Agricultural Development (IFAD) a. Invest in rural people, empowering them to increase their food security, improve the nutrition of their families and increase their incomes b. Building resilience, expand their businesses and take charge of their development 4 8. United Nations Industrial Development Organization (UNIDO) a. The specialized agency of the United Nations that promotes industrial development for poverty reduction, inclusive globalization, and environmental sustainability 9. World Tourism Organization (UNWTO) a. Responsible for the promotion of responsible, sustainable, and universally accessible tourism b. Leading international organization in the field of tourism, which promotes tourism as driver of economic growth, inclusive development, and environmental sustainability and offers leadership and support to the sector in advancing knowledge and tourism policies worldwide. https://www.google.com/url?sa=i&url=https%3A%2F%2Fbusinessmirror.com.ph OTHER GLOBAL ACTORS Multinational Corporation (MNC) In economic globalization, companies seek the greatest possibility of efficient and maximized profits that will involve many regions and localities to global production. Many believe that the new technology will allow the intense movement of information, goods, services and people can create an environment of new economy -- increasing the networks in global production, free trade and capital. The interconnectedness of various components of production, where the stages in production takes place in different location depends on the favorable conditions such as cheap labor, raw material, skilled labor and market consumer. 5 It is a business organization whose activities are located in more than two countries and is the organizational firm that defines foreign direct investment. This firm consists of a country location where it is incorporated and established branches or subsidiaries in foreign countries (A.A Lazarus, 2001 p10197). The International Monetary Fund (IMF) The International Monetary Fund, founded at the Bretton Woods Conference 1944, is the official organization for securing international monetary cooperation. It has done useful work in various fields, such as research and the publication of statistics and the tendering of monetary advice to less-developed countries. It has also conducted valuable consultations with the more developed countries. North Atlantic Treaty Organization (NATO) NATO is based on the North Atlantic Treaty, which provides the organization a framework. The treaty provides that an armed attack against one or more of NATO‟s member nations shall be considered an attack against them 6 all. It is headquartered in Brussels, Belgium. The organization was formed in 1949. Many countries joined NATO -- even Iceland which is the only member without a military force. The organization was originally formed out of the fear that the Soviet Union would ally military with Eastern European nations i.e. the Warsaw Pact, and thus become a threat to Western Europe and the United States. Global Financial Institutions Associated with World Trade The World Trade Organization, the International Monetary Fund, and the World Bank are the three institutions that underwrite the basic rules and regulations of economic, monetary, and trade relations between countries. Many developing nations have loosened trade rules under pressure from the IMF and the World Bank. World Trade Organization (WTO) It is the only global international organization dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. The goal is to ensure that trade flows as smoothly, predictably and freely as possible. It has many roles: it operates a global system of trade rules, it acts as a forum for negotiating trade agreements, it settles trade disputes between its members and it supports the needs of developing countries. Also, it regulates international trade's deals with the rule of trade between nations. Ensures the trade will flow smoothly, predictably and freely as possible. Acts as a forum in negotiation trade agreements. World Bank It is a financial institution that extends financial assistance through loans to countries interested. It was founded by the United Nations Monetary and Financial Conference or the Bretton Woods Conference. World Bank Group International Bank Reconstruction and Development (IBRD) 1s an international financial institution that offers loan to middle-income countries willing to improve their economy 1. International Development Association (IDA) its primary purpose is to provide loans to developing countries to reduce inequalities and improve people's conditions and the country's economic growth. 2. International Finance Corporation (IFC) providing loans for private sectors in developing countries to create markets that open up opportunities for all 3. Multilateral Investment Guarantee Agency (MIGA) promotes foreign direct investment (FDI) into developing countries to help support economic growth, reduce poverty, and improve people's lives 4. International Centre for Settlement of Investment Disputes (ICSID) is an international organization of investors for investment treaties and laws and contracts. 7 5. The International Monetary Fund (IMF) is an organization of 189 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world. Its primary purpose is to ensure the stability of the international monetary system—the system of exchange rates and international payments that enables countries (and their citizens) to transact with each other. Also, ensure the stability of the international monetary system. It does so in three ways keeping track of the global economy and the economies of member countries, lending to countries with balance of payments difficulties, and giving practical help to members. The Organization for Economic Cooperation and Development (OECD), the Organization of Petroleum Exporting Countries (OPEC), and the European Union (EU) The most encompassing club of the richest countries in the world is the Organization for Economic Cooperation and Development (OECD) with 35 member states as of 2016, with Latvia as its latest member. It is highly influential, despite the group having little formal power. This emanates from the member countries‟ resources and economic power. In 1960, the Organization of Petroleum Exporting Countries (OPEC) was originally comprised of Saudi Arabia, lraq, Kuwait, Iran, and Venezuela. They are still part of the major exporters of oil in the world today. OPEC was formed because member countries wanted to increase the price of oil, which in the past had a relatively low price and had failed to keep up with inflation. Today, the United Arab Emirates, Algeria, Libya, Qatar, Nigeria, and Indonesia are also included as members. The European Union (EU) is made up of 28 member states. Most members in the Eurozone adopted the euro as basic currency but some Western European nations like the Great Britain, Sweden, and Denmark did not. Critics argue that the euro increased the prices in Eurozones and resulted in depressed economic growth rates, like in Greece, Spain, and Portugal. The policies of the European Central Bank are considered to be a significant contributor in these situations. North American Free Trade Agreement (NAFTA) now United States-Mexico-Canada Agreement (USMCA) The North American Free Trade Agreement (NAFTA) is a trade pact between the United States, Mexico, and Canada created on January 1, 1994, when Mexico joined the two other nations. It was first created in 1989 with only Canada and the United States as trading partners, but it was replaced by USMCA on July 1, 2020. The agreement creates a more balanced environment 8 for trade, supports high-paying jobs for Americans, and grows the North American economy. Overall, the so-called global actors have significantly contributed to the economic globalization we are currently witnessing. As the topic of the global economy varies across different fields, no single academic discipline can fully encompass it. Gereffi has proposed that the global economy can be examined from various perspectives. First is at the macro level which includes the international organizations and regimes that establish rules and norms for the global community. The World Bank, the International Monetary Fund, the World Trade Organization, and the International Labor Organization are the existing international organizations that make impact to the economy of the world. The regional integration schemes like the European Union and the North American Free Trade Agreement are also part of these organizations. Since these regimes blend both the rules and resources, they substantiate the widest parameters within which the global economy operates. Next is the meso level in which it is believed that the building blocks for the global economy are the countries and firms. The global economy is seen as the arena in which countries compete in different product markets. The last is at the micro level. There is a growing literature on the resistance to globalization by consumer groups, activists, and transnational social movements. Therborn (2000) expressed, “There are many theories related to economic sociology incorporate the global economy in their frameworks, but they differ in the degree to which it is conceptualized as a system that shapes the behavior and motivation of actors inside it, or as an arena where nationally determined actors meet, interact, and influence each other.” One theory that provides a comprehensive explanation for this phenomenon is the Modern World System (MWS) theory developed by Immanuel Wallerstein. It describes the economic interactions between core, semi-peripheral, and peripheral countries in the world. In this system, core states have a significant advantage over others through unequal exchange and the extraction of raw materials from the periphery and semi-periphery. Essentially, the world systems theory suggests that, despite the ever-changing nature of the global economy, countries can generally be classified into three groups: the core, the periphery, and the semi-periphery. The core countries exert control and exploit those on the periphery, with capital flowing mainly from core countries to peripheral countries. In essence, this theory proposes that wealthier countries benefit from and exploit the citizens of other countries. 9 Thus, the economic globalization and market integration of the 21st century are extensions of the same economic motives of imperial powers of the nineteenth and twentieth centuries (Balaamand Veseth, 2008). The modern world-system perspective offers a comprehensive framework for comprehending the complex relationships between states in the global economy. This perspective sees the world as a unified, interconnected economic system where the interactions between states are influenced by their position within a global hierarchy. State has been the traditional subject of global politics. It is viewed as the institution that creates warfare and sets economic policies for a country. Moreover, it is a political unit that has authority over its own affairs, and most of the time we refer to them as countries‟ in layman’s term. When we talk about state, it must always consist of the four elements such as fixed territory, people, government and sovereignty. It was during the Treaty of Westphalia on 1648 where the notion of nation-state and idea of state sovereignty has started. Today, the globalization of politics created an atmosphere where the ideas of the nation-state, state sovereignty, government control, and state policies are challenged from all sides. The following are suggested “replacements” for nation-states: 1. regional alliances and worldwide organizations 2. regional and international economic bonds 3. private capital groups 4. non-state organizations Interstate System The origins of the present-day concept of Sovereignty can be traced back to the Treaty of Westphalia, which was a set of agreements signed in 1648 to end the thirty years‟ war between the major continental powers of Europe. The Westphalian system provided stability for the nations of Europe, until it faced its major challenge by Napoleon Bonaparte. The latter believed in spreading the principles of the French Revolution - liberty, equality, and fraternity to the rest of Europe. Despite the challenge of Napoleon to the Westphalian system and the eventual collapse of the Concert of Europe after World War I, the present-day international system has traces of this history. The rise of globalization studies has shifted the focus to an emerging world society in which nation-states are understood as interacting organizations claiming sovereignty over a delimited territory and national societies are highly interdependent on the larger global system. The interstate system or world-systems perspective on modernity claims that this high degree of interdependence is not a recent phenomenon and that an important dimension of the global system has been, and continues to be, its stratification structure that is organized as a core/periphery hierarchy in which some national societies have far more power and wealth than others. 10 Further, the world-systems perspective emerged during the world revolution of 1968 and the anti-war movement that produced a generation of scholars who saw the peoples of Global South (then called the “Third World”) as more than an underdeveloped countries. It became widely understood that a global power structure existed and that the peoples of the non-core had been active participants in their own liberation. The history of colonialism and decolonization were seen to have importantly shaped the structures and institutions of the whole global system. Effects of Globalization on Governments One of the key aspects of state sovereignty is the government. It is a group of people who have the ultimate authority to act on behalf of a state. Each state has its own right to self-determination and other countries should not intervene in the affairs of that state unless there are extraordinary reasons to do so. Globalization has, in a way reshaped the role and functions of nation-states as governing bodies in their particular territories. First, globalization is seen to impose a forced choice upon nation-states. Either they conform to the neo-liberal ideas and free-market principles of deregulation, privatization, and free trade or run the risk of being left behind in terms of development. Of course, nation-states, in this contemporary age, are forced to submit themselves to the demands of globally accepted free-market principles. Second is the establishment of economic and political integrations. One good example is the European Union (EU) and the North America Free Trade Agreement (NAFTA).EU has a single currency and monetary system, a parliament with legislative powers, with common citizens‟ rights to live, work, vote, and run for office. The statehood of the members is not dissolved, what has changed is only how the nation-states function, in terms of economy and politics, as part of a whole. The third effect of globalization is the establishment of international laws and principles. This is observable in the establishment of the UN which operates as a forum for nation-states to air their differences and try to resolve them. The fourth effect is the rise of transnational activism (TNA). Such happens when activist groups of nation-states connect with their counterparts in other states. For example, an advocacy-based organization in the Philippines may connect itself with and get support from other human rights groups in Europe to pressure the Philippine government to realign its stance and actions in upholding human rights. Institutions that Govern International Relations Several countries and individuals collaborate in international organizations. Intergovernmental organizations (IGOs) were set up to make it easier for countries to work together. Their goal is to build strong relationships between governments in the areas of economics, politics, culture, education, and technology. Some groups don't work for the government that work for social and economic growth. Let's take a look at each of them. Peace Treaties and Military Alliances: The UN and NATO Global politics entails the relationship of countries and different governments and non-governmental organizations, The United Nations (UN) is one of the leading political organizations in the world where nation-states meet and deliberate. However, it remains as an 11 independent actor in global politics. Generally, it functions in four areas: military issues, economic issues, environmental issues, and human protection. It comprises nearly to 200countries from around the world, 193 member states to be exact (United Nations, 2011). Global Economic Associations: The WTO and NAFTA The next group is an economic association-WTO which was created to increase free trade. Countries, therefore, can buy and sell goods from one another without placing takes on imports or tariffs. In addition, tariffs are used to protect businesses and companies inside their country. Another famous economic organization is NAFTA. This is an economic treaty between the United States, Canada, and Mexico in which the three countries trade freely without taxing each other. NAFTA is not without critics either. Some American autoworkers protested against NAFTA as several car companies moved their factories to Mexico in search of cheaper labor. NAFTA, like WTO, represents the challenge in America of keeping manufacturing factories. Association of Southeast Asian Nations (ASEAN) Established in 1967, now has 10 member states. It aims to accelerate economic growth, social progress, and cultural development in the region; promote regional progression; advance peace and sustainability; promote active and beneficial cooperation and mutual assistance on matters of common interest in the economic, technical, cultural, administrative, and scientific fields. European Union (EU) An IGO with 28- state members was established in 1993. Its goals are to promote peace, its values, and well-being of its citizens; offer freedom, security and justice without internal borders; uphold sustainable development; combat social exclusion and discrimination; promote scientific and technological progress; enhance economic; social and territorial cohesion among member countries; respect cultural and linguistic diversity; and establish an economic and monetary union. Non-Governmental Organizations (NGOs) Another example of an international organization that was developed out of war is the Red Cross (Red Crescent in Muslim countries). NGOs are not tied to any country. This allows them to operate freely throughout the world. They provide emergency relief such as food, water, and medical supplies for those whose homes or towns have been destroyed by disaster or war. They also monitor the treatment of prisoner of wars and go to conflicts to make sure that no war crimes are taking place. The Red Cross began as an organization to help those who were wounded during wars. 12 References: Mendoza, Cheryl C. et al. 2019. “Worktext in The Contemporary World.” Nieme Publishing House Co. Ltd https://www.wto.org/english/thewto_e/thewto_e.htm https://www.imf.org/en/About https://www.worldbank.org/en/about/what-we-do Nau, H. (2009). Perspectives on International Relations: Power, Institutions, and Ideas. 2 nd edition. Washington DC: CQ Press Sage Publishing. 2009 De Ocampo, F., Ramos, B., Llomora, R.,Macaraeg, A., David, M.A. (2018), Introduction to Contemporary World. St. Andrew Publishing House. Claudio, L., Abinales, P. (2018),The Contemporary World. C & E Publishing, Inc., Aldama, P.K. 2018. “The Contemporary World First Edition.” Rex Book Store, Inc. Mendoza, Cheryl C. et al. 2019. “Worktext in The Contemporary World.” Nieme Publishing House Co. Ltd https://irows.ucr.edu/papers/irows86/irows86.htm#:~:text=The%20modern%20world%2Dsystem%20i s,the%20field%20of%20International%20Relations. Brazalote, T., Leonardo, R. (2018) The Contemporary World. C & E Publishing, Inc., ©2019 Claudio, L., Abinales, P. (2018), The Contemporary World. C & E Publishing, Inc. Goldstein, J.L.,RiversUnited Nations. (2011). Basic facts about the United Nations. New York, USA: United Nations Department of Public Information. Retrieved from http://munkiconference.weebly.com/uploads/1/5/4/2/15422056/basic-facts-about-the-un.pdf on May 13, 2020 Glossop, Ronald (2017) "Meaning of the Twenty-First Century: From Internationalism to Globalism," Comparative Civilizations Review: Vol. 76 : No. 76 , Article 15. 13 APPLICATION The Global Divides, Economy, and Interstate System Name:____________________________________ Program/Year/Set: __________ Date Submitted: _______________________ Score: ____________ Instruction: Read and examine the following news articles through the lens of Modern World System Theory. Use the table below to analyze each item. 1. US, Australia, Canada, Philippines stage naval and air force maneuvers in disputed South China Sea Link: https://abcnews.go.com/International/wireStory/us-australia-canada-philippines-stage-naval-air- 2. Putin calls for a project to promote 'traditional Russian values' overseas Link: https://abcnews.go.com/International/wireStory/putin-calls-project-promote-traditional-russian-values-overseas-112604 905 3. Cambodia breaks ground on controversial $1.7 billion canal funded by China Link: https://edition.cnn.com/2024/08/05/asia/cambodia-breaks-ground-on-china-funded-canal-intl-hnk/index.html 1 2 3 Identify the core countries involved in the event. Identify the semi-periphery countries involved in the event. Identify the periphery countries involved in the event. The political relevance of the event to the involved core or semi-periphery countries. The economic implications of the event to the involved periphery countries. 14 LESSON 4 Market Integration LEARNING OUTCOMES: At the end of the lesson, the students will be able to: ✓ Define market integration ✓ Explain the role of globalization in the integration of market TIME FRAME: one week INTRODUCTION In this lesson, we will further dive on understanding how our economy works as one when it comes to globalization. We should put in mind that our industries nowadays have been connected than ever before and if one part of it faces a challenge, everyone will be affected in way or another. ACTIVITY In your province or region, identify what types of industries have been greatly affected by the community lockdown imposed by the government. List them down on and explain briefly how each of them is affected by the said lockdown. ANALYSIS Reflect on the following questions or sentences: 1. Are there shops or business establishments that have shut down due to the pandemic? 2. Why do you think these establishments are forced or have decided to permanently closed their businesses? 3. Around the world, what industries are greatly affected by the pandemic? 4. Are you or is there anyone you know who have been working in a certain industry where it was badly hit by the pandemic? What happened to them when they lost their jobs? 5. What industries or businesses have emerged due to the pandemic? Did it help our markets to cope with the financial losses? 15 ABSTRACTION What is market integration? Market integration is the fusing of many markets into one. Market integration occurs when prices among different locations or related goods follow similar patterns over a long period of time. Groups of goods often move proportionally to each other and when this relation is very clear between different markets it is said that the markets are integrated. Types of market integration 1. Horizontal integration This occurs when a firm or agency gains control of other firms or agencies performing similar marketing functions at the same level in the marketing sequence. In this type of integration, some marketing agencies combine to form a union with a view to reducing their effective number and the extent of actual competition in the market. It is advantageous for the members who join the group. Horizontal Integration is a competitive strategy that can create economies of scale, increase market power over distributors and suppliers, increase product differentiation, and help businesses expand their market or enter new markets. By merging two 16 companies, they may be able to generate more revenue than they could have done independently. However, when horizontal mergers succeed, especially if they reduce competition, it is often at the expense of consumers. Some companies try to expand their presence in an industry by acquiring or merging with one of their rivals rather than relying on their efforts. Horizontal integration is known as this strategic move. The acquisition occurs when one company buys another. The acquired company is generally smaller than the company that purchases it. A merger is joining two firms into one. Mergers typically involve companies of the same size in 1993 and 2006. respectively. Disney was much larger than Miramax and Pixar when it merged with these companies Thus these two moves of horizontal integration are regarded as acquisitions. For several reasons, horizontal integration may be attractive. In many cases, by achieving greater economies of scale, horizontal integration aims at lowering costs. That was the reasoning behind a number of large oil companies mergers, including Petro-Canada and Suncor in 1998, Exxon and Mobıl ın 1999, and Chevron and Texaco in 2001. Exploration and refining of oil are costly Executives in charge of each of these six corporations believed that by combining forces with a former rival, greater efficiency could be achieved. Considering horizontal integration alongside Porter's five forces model highlights that such moves also reduce the intensity of rivalry in industry and thereby can make the industry more profitable. Horizontal integration can also provide access to new channels of distribution where a company can create or acquire production units for outputs that are both complementary and competitive. Kraft Foods, Nabisco, and Cadbury, each with international markets, were huge, successful companies. The parent company of Kraft merged Kraft and General Foods in 1989. In 2000, Kraft bought Nabisco Holdings, and in 2009 bought Cadbury for about US$19 billion, making Kraft a "global confectionery leader." At the time, Cadbury was the second-largest confectionery brand in the world after Wrigley's (Wikipedia, 2014). 17 2. Vertical integration This occurs when a firm performs more than one activity in the sequence of the marketing process. It is a linking together of two or more functions in the marketing process within a single firm or under single ownership. This type of integration makes it possible to exercise control over both quality and quantity of the product from the beginning of the production process until the product is ready for the consumer. It reduces the number of middlemen in the marketing channel. When pursuing a Vertical Integration strategy, a company becomes involved in new portions of the value chain This approach may be desirable if the suppliers or buyers of a company have gained too much power over the company and use their ability to earn more profit at the expense of the company By acquiring the supplier or buyer, executives can reduce or eliminate the leverage the supplier or buyer has over the company Considering vertical integration alongside the five-force model of Porter, it is highlighted that such movements can create more significant potential for profit. Companies can pursue vertical integration alone, such as when Apple opened stores bearing their brand, or through a merger or acquisition, such as when eBay purchased PayPal. As anyone who has ever taken an economics course can attest, the automotive industry is based on the concept of vertical integration that is, a company that owns both the manufacturing and the supply chain that leads to the factory floor as much as 18 possible Due to economic woes and other considerations, the Big Three North American automakers have moved away from this model. But it is a business plan that served them well in the industry's formative years when such a strategy helped manage the cost of manufacturing, ensured a steady stream of components, and established some strategic independence. That's why the recent announcement by electric car maker Tesla to build a so-called gigafactory to produce batteries for their upcoming electric vehicle lines seems to make sense. The automaker hopes that by taking over the company's battery end- probably the single most expensive component of an electric car- it can reduce the cost of its power sources per kilowatt-hour by more than 30%. It could also help accelerate the development of advanced battery technology and ensure a steady supply of the product in what is still a nascent end of the automotive industry. It wasn't long ago, after all, that many hybrid cars simply leveraged what amounted to a case of off-the-shelf interconnected rechargeable batteries that could otherwise be found in a laptop or power tool to power the vehicle. As a company, Tesla appears to be a force as dynamic as its founder, Elon Musk (also known as PayPal and SpaceX). It comes as no surprise that there would be the prevailing attitude that if someone were to build the better proverbial mousetrap, it would be them. Now, of course, Tesla is not going this route alone, either in terms of investment or expertise, as approximately half of the $ 5 billion expected to build the plant will come from its partners. which are expected to include the company's current Panasonic battery supplier. Admittedly, Tesla has lofty goals moving forward and is particularly vulnerable to the failure or success of its suppliers due to the start-up nature of both the company and the segment of the business in which it operates. Indeed, a recent study by the David Eccles School of Business at the University of Utah concluded that companies were 5 to 70% more likely to fail when outsourcing components were deemed critical to their competitive position within an industry. There are also risks of vertical integration. Engaging in new portions of the value chain can bring a company into very different businesses, requiring very different business skills in general. For example, a lumberyard that started building houses would find that the skills it developed in the lumber business have minimal value for 19 home building Such a company could be better off exploring the expansion of wood products production and selling to other retailers. There are two types of Vertical Integration: forward vertical integration and Backward vertical integration. a) Forward integration If a firm assumes another marketing function closer to the consumption function, it is a case of forward integration. Example: wholesaler assuming the function of retailing The acquisition of PayPal by eBay and the creation of Apple Stores by Apple are two recent examples of vertical integration forwarding. Despite its huge success, one concern for eBay is that many people avoid eBay because they are nervous about buying and selling goods with strangers online PayPal dealt with this issue by serving as an intermediary between online buyers and sellers in exchange for a fee. The acquisition of PayPal by eBay signaled to potential customers that their online transactions were utterly safe eBay was now not only the place where business took place but also protected buyers and sellers from ripping off. The ownership of Apple's branded stores distinguishes the company from computer manufacturers like Hewlett-Packard, Acer, and Gateway who distribute 20 their products only through retailers like Best Buy and Staples. Best Buy and Staples employees are likely to know just a bit about each of the different brands they carry in their store. Apple stores, on the other hand, are popular in part because store employees are Apple products experts. Therefore, they can provide accurate and insightful advice to customers on purchases, use of products, and repairs. This is a major advantage created by the integration of vertical forwarding. b) Backward integration This involves ownership or a combination of sources of supply. Example: when a processing firm assumes the function of assembling/purchasing the produce from the villages. 3. Conglomeration 21 A combination of agencies or activities not directly related to each other may, when it operates under a unified management, be termed a conglomeration. This integration is a fusion of companies involved in completely unrelated business activities. There are two kinds of mergers of conglomerates: pure and mixed. Pure mergers of conglomerates involve companies with nothing in common, while diverse mergers of conglomerates involve companies looking for product extensions or market extensions. This fusions occur when two companies that offer different services or are involved in various business sectors merge. This type of conglomerate merger can happen when two similar firms decide to unite to spread better across the market. This ensures that both companies are stronger than they would be on their own as one entity When these types of deals occur, some of the markets may be upset because it could allow a monopoly in a given market. These types of fusions have both advantages and disadvantages. Herman and Chomsky (2002) explained that large media conglomerates are owned by large corporations, which are then influenced or affected by the government's policies and legislatures. Thus, these organizations are unlikely to criticize a government that supports systems aligned with their interests. Companies have many reasons to merge, including increasing market share, synergy, and cross-selling. Companies also merge to diversify and reduce their risk exposure. However, if, as a result of acquisitions, a conglomerate becomes too large, the entire company's performance can suffer. 22 Global Market Integration Global market integration means that price differences between countries are eliminated as all markets become one. One way to the progress of globalization is to look at trends how prices converge or become similar across countries. The time when the costs of trading across the country fall and that is the time the other firm will take advantage of price differences, other countries may enter the market of other country. Trading cost fall when new product invented or developed become cheaper and also, some cost are man-made like when they impose barriers for trading. By the end of the 20th century, globalization across markets had returned to the levels seen just before World War I. Today, markets are more integrated than ever as transportation costs have continued to fall and most tariffs have been scrapped altogether. One vision of the future globalization involves the elimination of other barriers to trade caused by institutional differences between countries. Markets are embedded in institutions such as property rights, legal systems, and regulatory regimes. Differences in institutions among countries create trading costs in the same way that tariffs or distance do. For example, there may be different laws between Islamic countries and non-Islamic countries about securing that a certain food product does not contain pork or any non-halal (haram) ingredients. There are countries that cannot clearly assure Muslim-dominated countries that their product is non-pork or not, which could affect the flow of such products among countries. Borders still matter because of these kinds of institutional incompatibilities. Complete integration requires the ironing out of legal and regulatory differences to create a single institutional space. Some economists argue that this process is underway and inevitable and that global markets drive the harmonization of institutions across countries. Consider a multinational corporation choosing a country in which to locate its factory. To attract the firm’s investment, the government might cut business taxes and loosen regulatory requirements. Other competing countries follow suit. The resulting lower tax revenues make countries less able to finance welfare states and educational programs. All policy decisions become oriented toward maximizing integration with global markets. No goods or services would be provided that are incompatible with this. 23 This economic interest also became part of a political strategy that transformed people into individual political economic subjects. To establish, maintain, and expand their domination, the new states will make systematic use of scientific knowledge with the aim of assessing and influencing the behavior of their subjects. They will do this assuming that people’s behavior is mainly motivated by interest. The government now consciously wants to deal with the interests of individuals in order to serve its own interests. Political economics will not only consist of observing people’s self-interested behavior, but it will also promote it. The main issue in the politics of states will be to figure out ways to anticipate what might happen in order to influence economic expansion. According to Smith, it was no longer a question of teaching mankind what must be done with reference to the next world, but rather of understanding what the human being actually is and what can be done in this world with humans as they actually are. The social contract and the workings of society should be studied on the basis of natural humans (Bouchet: Adam Smith: Then & Now). Reference: Mendoza, Cheryl C. et al. 2019. “Worktext in The Contemporary World.” Nieme Publishing House Co. Ltd Lobo, Joliver et al. 2019. The Contemporary World. Books Atbp. Publishing Corp. 24 APPLICATION Market Integration Name:____________________________________ Program/Year/Set: __________ Date Submitted: _______________________ Score: ____________ Instruction: Write a film review about “The Corporation” directed by Mark Achbar and Jennifer Abbot using the scheme below: 1. Introductory part 2. Historical accuracy 3. Reliability of the sources used 4. The usage of creative elements 5. Your own opinion of the film 6. Summarizing the whole analysis Note: Your output will be graded based on this rubric. Criteria 3 4 5 Score The essay is The essay is The essay is focused focused on the focused, Focus/ Main on topic and includes topic and purposeful, and Point few loosely related includes relevant reflects clear ideas. ideas. insight and ideas Analysis of the Analysis of the movie for Analysis of the movie movie for historical historical accuracy for historical accuracy Historical accuracy covers all covers some of the is only briefly covered Analysis the major points of major points of or is inaccurate. interest. Sources interest. Sources Sources not cited. are cited correctly. are cited but not correctly. Persuasively Supports main Supports main supports main point with some point with point with well Details underdeveloped developed developed reasons and/or reasons and/or reasons and/or examples examples examples Organization Effectively & Some Organizes ideas organizes ideas Format organization of to build an to build a logical, ideas to build an argument. coherent (Paragraphs, argument. argument. Transitions) Comments: TOTAL 25 LESSON 5 Global Governance LEARNING OUTCOMES: At the end of the lesson, the students will be able to: ✓ Define global governance. ✓ Discuss the role of global governance in international relations. ✓ Discuss limitations to effective global governance. TIME FRAME: one week INTRODUCTION What is global governance? How do our leaders around the world work with one another to achieve a better global community. How does it affect our lives and our states? In this lesson, these are the questions we will try to understand. We will provide the meaning of global governance and how it plays a big role in our contemporary world, especially in the field of international relations. ACTIVITY Discuss the following issues and how they affect the cooperation of states (countries). Maximum of 50 words per item. 5 points each Terrorism Proliferation of Environmental Piracy and Weapons of Mass Degradation Transnational Destruction Crimes 26 ANALYSIS Is the Philippines experiencing the above mentioned issues? Provide examples. For the ASEAN, in which the Philippines is a member, which among the above mentioned issues you think is the LEAST paid attention to? Why? For the ASEAN, in which the Philippines is a member, which among the above mentioned issues you think is the MOST paid attention to? Why? For the United Nations Organization, which among the above mentioned issues is you think the MOST paid attention to? Why? ABSTRACTION Although many internationalists envisioned a worldwide government, there is none that exists presently. There is no single entity to whom all states must answer. Furthermore, no organization can compel a state to follow predefined global regulations through military force. The overall behavior of states, however, has some consistency. For instance, they largely adhere to global navigation routes and, in most cases, respect each other’s territorial borders. Furthermore, when they do not, which happened when Russia invaded Crimea in 202w4, it causes global worry and controversy. Despite the lack of a single world authority, states under an international order continue to adhere to some global rules, implying that there is some semblance of world order. The multiple intersecting processes that generate this order are referred to as global governance. Global governance can come from a variety of sources. Nations establish treaties and form organizations, enacting public international law (international standards that regulate relations between states rather than, for example, private enterprises). International non-governmental organizations (NGOs), though not having state power, can lobby individual states to behave in a certain way ( for example, an international animal protection NGO can pressure governments to pass animal cruelty laws). Powerful transnational corporations can likewise have tremendous effects on global labor laws, environmental legislation, trade policy and more. Even ideas such as the need for “global democracy” or the clamor for “good governance,” can influence the ways international actors behave. 27 One lesson will not be able to cover the various ways global governance occurs. As such, this lesson will only examine how global governance is articulated by intergovernmental organizations. It will focus primarily on the United Nations (UN) as the most prominent intergovernmental organization today. What is an International Organization? When scholars refer to groups such as the UN or institutions such as the IMF and the World Bank, they usually call them international organizations (IOs). Although international NGOs are sometimes considered IOs, the term is commonly used to refer to international intergovernmental organizations or groups that are primarily made up of member states. One major fallacy about international organizations is that they are merely amalgamations of various state interests. In the 1960s and 1970s, many scholars believed that IOs were just venues where the contradicting but sometimes intersecting agendas of countries were discussed – no more than talk shops. What has become more evident in recent years, however, is that IOs can take on lives of their own. For example, the IMF was able to promote a particular form of economic orthodoxy that stemmed mainly from the beliefs of its professional economists. IOs can thus become influential as independent organizations. International relations scholars Michael N. Barnett and Martha Finnemore listed the following powers of IOs. First, IOs have the power of classification, Because IOs can invent and apply categories, they create powerful global standards. For example, it is the UN High Commissioner for Refugees (UNHCR) that defines what a refugee is (see Lesson 10 for more). Furthermore, since states are required to accept refugees entering their borders, this power to establish identity has concrete effects. Second, IOs have the ability to change the meaning of words This is a more general function that is linked to the first. Various concepts, such as "security" and "development," must be clearly defined. IOs are seen as legitimate sources of information for states, organizations, and individuals. As a result, the meanings they generate have an impact on a variety of policies. For example, recently, the United Nations has started to define security as not just safety from military violence but also safety from environmental harm. 28 Finally, IOs have the power to diffuse norms. Norms are accepted codes of conduct that may not be strict laws but produce regularity in behavior. IOs do not only classify and fix meanings, they also spread their ideas across the world, thereby establishing global standards. Their members are, as Barnett and Finnemore emphasized, the "missionaries" of our time. Their power to diffuse norms stems from the fact that IOs are staffed with independent bureaucracies, who are considered experts in various fields. For example, World Bank economists come to be regarded as experts in development, and thus, carry some form of authority. As a result, they can establish standards for the implementation and conceptualization of development projects. Because of these immense powers, IOs can be sources of great good and great harm. They have the ability to promote important standards such as environmental conservation and human rights. However, similar to other entrenched bureaucracies, they can become closed communities that refuse to question their views. For example, Nobel Prize winner and economist Joseph Stiglitz publicly condemned the IMF for adopting a "one-size-fits-all" approach in making recommendations for developing countries." The United Nations Having examined the powers, limitations, and weaknesses of IOs, the spotlight will now fall on the most prominent IO in the contemporary world, the United Nations (UN). After the collapse of the League of Nations at the end of World War II, countries that worried about another global war began to push for the formation of a more lasting international league. The result was the creation of the UN. Although the organization is far from perfect, it should be emphasized that it has so far achieved its primary goal of averting another global war. For this reason alone, the UN should be considered a success. The UN is divided into five active organs. The General Assembly (GA) is UN's main deliberative policymaking and representative organ. Annually, the General Assembly elects a GA President to serve a one-year term of office. All member states (currently at 193) have seats in the GA. The Philippines played a prominent role in the GA's early years when Filipino diplomat Carlos P. Romulo was elected GA president from 1949-1950. 29 Despite the General Assembly (GA) being the most represented body in the UN, many critics believe the Security Council (SC) is the most powerful. According to the United Nations, the latter has 15 members. Ten of the fifteen members are elected to two-year terms by the GA. The other five- sometimes referred to as the Permanent 5 (P5)-are China, France, Russia, the United Kingdom, and the United States. These countries have been permanent members of the UN since its inception and cannot be removed or changed by elections. The SC is in charge of evaluating whether a threat to the peace or an act of aggression exists. It encourages the concerned parties to resolve their differences through peaceful ways and suggests measures for adjustment or terms of settlement. In some cases, it can resort to imposing sanctions or even authorizing the use of force to maintain or restore international peace and security. Because of these powers, states that seek to intervene militarily in another state need to obtain the approval of the SC. With the SC's approval, a military intervention may be deemed legal. This is an immense power. Much attention has been placed on the SC's P5 due to their permanent seats and because each country holds veto power over the council's decisions. It only takes one veto vote from a P5 member to stop an SC action dead in its tracks. In this sense, the SC is heir to the tradition of "great power" diplomacy that began with the Metternich/Concert of Europe system (see the previous lesson). It is especially telling that the P5 consists of the major Allied Powers that won World War II. The third UN organ is the Economic and Social Council (ECOSOC), which is "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.” It has 54 members elected for three-year terms. Currently, it is the UN's central platform for discussions on sustainable development. The fourth is the International Court of Justice whose 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 United Nations organs and specialized agencies." The major cases of the court consist of disputes between states that voluntarily submit themselves to the court for arbitration. The court, as such, cannot try individuals (international criminal cases are heard by the 30 International Criminal Court, which is independent of the UN), and its decisions are only binding when states have explicitly agreed to place themselves before the court's authority. The SC may enforce the rulings of the ICJ, but this remains subject to the P5's veto power. Did you know that Filipinos played a significant role in the creation of human rights arbitration rules in the United Nations? In the late 1960s, the diplomat Salvador P. Lopez was chairman of the United Nations Commission on Human Rights, Lopez and other Filipinos helped design the system whereby any citizen of any state may petition the UN to look into human rights violations in a country. That system exists until today. Human rights, therefore, are not foreign impositions. They are part of our national heritage. Finally, the secretariat consists of the "Secretary-General and tens of thousands of international UN staff members who carry out the day-to-day work of the UN as mandated by the General Assembly and the organization's other principal organs. As such, 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, not as state representatives. Challenges of the United Nations Given the scope of the UN's activities, it naturally faces numerous challenges. Chief among these are the limits placed upon its various organs and programs by the need to respect state sovereignty. The UN is not a world government, and it functions primarily because of voluntary cooperation from states. If states refuse to cooperate, the influence of the UN can be severely circumscribed. For example, the UN Council on Human Rights can send special rapporteurs to countries where alleged human rights violations are occurring. However, if a government does not welcome the rapporteur or imposes limits on his or her actions, this information-gathering process is unlikely to succeed. However, the United Nations' greatest difficulty may be attributed to issues of security. As previously stated, the UN Security Council is responsible for sanctioning international military intervention. Because of the P5's veto authority, the council finds it difficult to issue a formal resolution, let alone implement it. This became an issue, for example, in the late 1990s when the United States sought to 31 intervene in the Kosovo war. Serbian leader Slobodan Milošević was committing acts of ethnic cleansing against ethnic Muslim Albanians in the province of Kosovo. Hundreds and thousands of Albanians were victims of massacres, mass deportations, and internal displacement. Amid this systematic terror, members of the North Atlantic Treaty Organization, led by the United States, sought SC authorization to intervene in the Kosovo war on humanitarian grounds. China and Russia, however, threatened to veto any action, rendering the UN incapable of addressing the crisis. In response, NATO decided to intervene on its own. Though the NATO intervention was largely a success, it, nevertheless, left the UN ineffectual. Today, a similar dynamic is evident in Syria, which is undergoing a civil war. Russia has threatened to veto any SC resolution against Syria; thus, the UN has done very little to stop state-sanctioned violence against opponents of the government. Since Syrian President Bashar al-Assad is an ally of Russian dictator Vladimir Putin, the latter has shied away from any policy that could weaken the legitimacy of the former. As a result, the UN is again ineffectual amid a conflict that has led to over 220,000 people dead and 11 million displaced. 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 the right decisions. When the United States sought to invade Iraq in 2001, it claimed that Iraq's Saddam Hussein had weapons of mass destruction (WMD) which threatened the world. However, UN members Russia, China, and France were unconvinced and vetoed the UN resolution for intervention, forcing the United States to lead a small "coalition of the willing" with its allies. It has since been discovered that there were no weapons of mass destruction, and the invasion of Iraq has caused problems for the country and the region that last until today. Since then, there were 37 instances when the permanent members of the Security Council exercised their right to veto resolutions, 25 by Russia and China and 12 by the United States. The majority of these vetoes pertained to the volatile situation in the Middle East. Global governance is such a complex issue that one can actually teach an entire course in itself. This lesson has focused on the IOs and the United Nations in particular. International organizations are highlighted because they are the most visible symbols of global governance. The UN, in particular, is the closest to a 32 world government. What is important to remember is that international institutions such as the UN are always in a precarious position. On the one hand, they are groups of sovereign states. On the other, they are organizations with their own rationalities and agenda. It is this tension that will continue to inform the evolution of these organizations. However, note that many institutions, groups, and ideas hold international and global politics together. In your own time, you may want to explore these topics. References: Mendoza, Cheryl C. et al. 2019. “Worktext in The Contemporary World.” Nieme Publishing House Co. Ltd Claudio, L. & Abinales, P. 2022. The Contemporary World. C & E Publishing, Inc. 33 APPLICATION Global Governance Name:____________________________________ Program/Year/Set: __________ Date Submitted: _______________________ Score: ____________ Direction: Read and answer the following questions. Support your answer by citing recent references. 1. Why is global governance multi-faceted? 2. How do international organizations take on “lives of their own”? 3. What are the challenges faced by the United Nations in maintaining global security? 34 LESSON 6 Asian Regionalism LEARNING OUTCOMES: At the end of the lesson, the students will be able to: ✓ Differentiate between regionalization and globalization ✓ Identify the factors leading to a greater integration of the Asian regionalism ✓ Analyze how different Asian states confront the challenges of globalization and regionalization TIME FRAME: one week INTRODUCTION Regionalism is an approach to study the behaviour that emphasizes the geographical region as the unit of analysis, stressing the relationships between man and his immediate physical environment. Economic social and cultural organizations are analyzed in terms of their interrelationships and functions within the geographic region (W.P. Scott). ACTIVITY Enumerate the members of the Association of Southeast Asian Nations (ASEAN). MEMBERS 6. 2. 7. 3. 8. 4. 9. 5. 10. 35 ANALYSIS 1. What are the similarities you can infer from among the members of the ASEAN? Describe your answer in not more than 50 words. ABSTRACT Governments, associations, societies, and groups form regional organizations and/or networks as a way of coping with the challenges of globalization. Globalization has made people aware of the world in general, but it has also made Filipinos more cognizant of specific areas such as Southeast Asia. How, for instance, did the Philippines come to identify itself with the Southeast Asian region? Why is it part of a regional grouping known as the Association of Southeast Asian Nations (ASEAN)? While regionalism is often seen as a political and economic phenomenon, the term actually encompasses a broader area. It can be examined in relation to identities, ethics, religion, ecological sustainability, and health 32 Regionalism is also a process and must be treated as an "emergent, socially constituted phenomenon."33 It means that regions are not natural or given; rather, they are constructed and defined by policymakers, economic actors, and even social movements. This lesson will look at regions as political entities and examine what brings them together as they interlock with globalization. The other facets of regionalism will then be explored, especially those that pertain to identities, ethics, religion, ecological sustainability, and health. The lesson will conclude by asking where all these regionalisms are bringing us as members of a nation and as citizens of the world. COUNTRIES, REGIONS AND GLOBALIZATION Edward D. Mansfield and Helen V. Milner state that economic and political definitions of region vary, but there are certain basic features that everyone can agree on. First, regions are “a group of countries located in the same geographically specified area” or are “an amalgamation of two regions a combination of more than two regions organized to regulate” and “oversee flows and policy choices” while the latter is “a political process characterized by economic policy cooperation and coordination among countries. Countries respond to globalization in a variety of ways both economically and politically. Some are large enough and wealthy enough to be able to decide how they 36 participate in global integration process. China, for instance, offers its cheap labor and large workforce to entice foreign companies and grow commerce with countries it once saw as adversaries but now sees them as consumers for its good. Other countries compensate for their limited size by capitalizing on their advantageous geographic location. Singapore and Switzerland make up for their lack of resources by becoming financial banking powerhouse. Singapore improved its harbor facilities and established them as a first- class transit port for ships transporting various commodities from Africa, Europe, the Middle East, and mainland Southeast Asia to Asia-Pacific countries. In most cases, however, countries form a regional alliance, for – as they saying goes - there is strength in numbers. Countries form a regional association for several reasons. One is for military defense. The most widely known defense grouping is the North Atlantic Treaty Organization (NATO) formed during the cold war when several Western European countries plus the United States agreed to protect Europe against the threat of the Soviet Union. The Soviet Union responded by creating its regional alliance, the Warsaw Pact, consisting of the Eastern European countries under Soviet domination. The Soviet Union imploded in December 1991, NATO remains in place. Countries also form regional organization to pool their resources, get better returns for their exports, as well as expand their leverage against trading partners. The Organization of Petroleum Exporting Countries (OPEC) was established in 1960 by Iran, Iraq Kuwait, Saudi Arabia, and Venezuela to regulate the production and sale of oil. This regional alliance flexed its muscles in the 1970s when its member countries took over domestic production and dictated crude oil prices in the world market. In a world highly dependent on oil, this integration became a source of immense power. OPEC’s success convinced since other oil- producing countries to join it. Moreover, there are countries that form a regional bloc to protect their independence from the pressures of superpower politics. The presidents Egypt, Ghana, India, Indonesian, and Yugoslavia creates the Non-Aligned Movement (NAM) in 1961 to pursue world peace and international cooperation, human rights, national sovereignty, racial and national equality, non-intervention, and peaceful conflict resolution. It called non- aligned because the association refused to side with either the First World capitalist democracies in Western Europe and North America or the communist states in Eastern Europe. The NAM had 120 member countries at its peak. 37 However, the movement was never official and continues to exist today but with less vigor than in the past. Finally, economic downturns force governments to band together. In 1996, after foreign currency speculators and worried international banks demanded that the Thai government repay its loans, the Thai economy collapsed. Its economy was bankrupted as a result of a quick withdrawal of foreign capital. This crisis began to spread to other Asian countries as their currencies were also devalued and foreign investments were left in a hurry. The International Monetary Fund (IMF tried to reverse the crisis, but it was only after the ASEAN countries, along with China, Japan, and South Korea, agreed to establish an emergency fund to anticipate a crisis that the Asian economies stabilized. The crisis made ASEAN more "unified and coordinated." The Association has come a long way since it was formed as a coalition of countries which were pro-American and supportive of the United States intervention in Vietnam. After the Vietnam War. ASEAN continued to act as a military alliance to isolate Vietnam when it invaded Cambodia, but there were also the beginnings of economic cooperation. Better coordination has also yielded positive results in academic and intellectual exchanges. While each member country continues to support their respective nation universities, there has also evolved in the last few years a new regional perspective ASEAN Studies. Member countries have actively promoted this perspective, and it is gradually displacing "Southeast Asian" studies which originated in the West. This is a good sign as Western universities have been losing interest in Southeast Asia. With that being said, ASEAN studies may also have a drawback Since it is supported by the member countries, it may not be supportive of studies that are critical of ASEAN and its members. Non-State Regionalism It is not only states that agree to work together in the name of a single cause (or causes). Communities also engage in regional organization. This "new regionalism" varies in form; they can be "tiny associations that include no more than a few actors and focus on a single issue or huge continental unions that address a multitude of common problems from territorial defense to food security." Organizations representing this "new regionalism" likewise rely on the power of individuals, non- governmental organizations (NGOs), and associations to link up with one another in pursuit of a particular goal (or goals). Finally, "new regionalism" is identified with reformists who 38 share the same "values, norms, institutions, and system that exist outside of the traditional, established mainstream institutions and systems. Their strategies and tactics likewise vary. Some organizations partner with governments to initiate social change. Those who work with governments ("legitimizers") participate in "institutional mechanisms that afford some civil society groups voice and influence in technocratic policy-making processes." For example, the ASEAN issued its Human Rights Declaration in 2009, but the regional body left it to member countries to apply the declaration's principles as they see fit. Aware that democratic rights are limited in many ASEAN countries, "new regionalism" organizations used this official declaration to pressure these governments to pass laws and regulations that protect and promote human rights. In South America, left-wing governments support the Hemispheric Social Alliance's opposition to the North American Free Trade Agreement (NAFTA), while members of the Mesa de Articulación de Asociaciones Nacionales y Redes de ONGs de América Latina y El Caribe (Roundtable of National Associations and Networks and NGOs in Latin America and the Caribbean) participate in "forums, summits, and dialogues with presidents and ministers." Likewise, a group called the Citizen Diplomacy Forum tries to influence the policies and programs of the Organization of American States." In Southeast Asia, the organization of ASEAN Parliamentarians for Human Rights was, in part, the result of non- government organizations and civil society groups pushing to "prevent discrimination, uphold political freedom, and promote democracy and human rights throughout the region." Other regional organizations dedicate themselves to specialized causes. Activists across Central and South America established the Rainforest Foundation to protect indigenous peoples and the rainforests in Brazil, Guyana, Panama, and Peru.44 Young Christians across Asia, Africa, the Middle East, the Americas, and the Caribbean formed Regional Interfaith Youth Networks to promote "conflict prevention, resolution, peace education, and sustainable development." The Migrant Forum in Asia is another regional network of NGOs and trade unions "committed to protect[ing] and promot[ing] the rights and welfare of migrant workers." The moral standing of these organizations as well as their capacity to combine lobbying and pressure politics are their key assets. Unfortunately, the majority of them are underfunded putting them at a disadvantage when dealing with their government 39 counterparts who have access to large sums of money As a result, their influence on global politics is limited. New regionalism differs significantly from traditional state- to-state regionalism when it comes to identifying problems. example, states treat poverty or environmental degradation a technical or economic issues that can be resolved by refining existing programs of state agencies, making minor changes in economic policies, and creating new offices that address these Issues. However, proponents of new regionalism, such as the NGO Global Forum, regard these problems as the result of flawed economic development and environmental models. They use the term “flawed” to describe economic growth plans that are market-based. Profit driven, and have little regard for social welfare, particularly among the poor. Another challenge for new regionalists is the discord that may emerge among them. For example, disagreements surface over issues such as gender and religion, with pro-choice NGOs breaking from religious civil society groups that side with the Church, Muslim imams, or governments which oppose reproductive rights and other pro-women policies. Moreover, while civil society groups are able to dialogue with governments, the latter may not be welcoming to this new trend and set up one obstacle after another. Migrant Forum Asia and its ally, the Coordination of Action Research on AIDS (CARAM), lobbied ASEAN governments to defend migrant labor rights. Their program of action, however, slowed down once countries such as Malaysia, Singapore, and Thailand refused to recognize the rights of undocumented migrant workers and the rights of the families of migrants. Contemporary Challenges to Regionalism Today, regionalism faces multiple challenges, the most serious of which is the resurgence of militant nationalism and populism. The refusal to dismantle NATO after the collapse of the Soviet Union, for example, has become the basis of the anti-NATO rhetoric of Vladimir Putin in Russia. Now, even the relationship of the United States-the alliance's core member-with NATO has become problematic after Donald Trump demonized the organization as simply leeching off American military power without giving anything in return. Perhaps the most crisis-ridden regional organization of today is the European Union. The continuing financial crisis of the region is forcing countries such as Greece to consider leaving the Union to gain more flexibility in their economic policy. Anti- 40 immigrant sentiment and a populist campaign against Europe have already led to the United Kingdom voting to leave the European Union in a move the media has termed the "Brexit." ASEAN members continue to disagree over the extent to which member countries should sacrifice their sovereignty for the sake of regional stability.50 The Association's link with East Asia has also been problematic. Recently, ASEAN countries also disagreed over how to relate to China, with the Philippines unable to get the other countries to support its condemnation of China's occupation of the West Philippine Sea. Cambodia and Laos led the opposition, favoring diplomacy over confrontation, but the real reason was the dramatic increase of Chinese investments and economic aid to these countries. Moreover, when some formerly authoritarian countries democratized, this "participatory regionalism" clashed with ASEAN's policy of non-interference as civil society groups in Indonesia, the Philippines, and Thailand demanded that the other countries that democratized adopt a more open attitude towards foreign criticism. In 2021, non-interference has become the norm of ASEAN. Early that year, the Burmese military's arrest of the president of the country, Aung San Syu Ki, and leaders of the opposition, had led to massive popular protests in the cities. There had been academic and political discussions outside Myanmar that were critical of the military's action. Civil society groups in Southeast Asia and elsewhere have also appealed to their respective governments pressure the military to ease up and release those arrested. Not only have ASEAN governments refused to act, citing the principle of not interfering in domestic politics, there had also been attempts to silence Burmese activists living abroad and words of caution towards academic and even policy discussions on the state of Burmese politics. Finally, there are diverse perspectives on what regionalism should be used for. Regional organizations may be viewed by Western countries as agents of political democratization as well as economic formations. However, non-Western and developing countries may hold a dissimilar perspective on globalization, development, and democracy. For Singapore, China, and Russia, democracy is a barrier to the implementation and deepening of economic globalization because continual public scrutiny of economic projects and protracted debate hinder implementation or result in ambiguous results. Democracy's tedious procedures must, therefore, give way to efficiency 41 Conclusion Official regional associations now cover vast swaths of the world. The population of the countries that joined the Asia-Pacific Economic Council (APEC) alone comprised 37% of the world's population in 2007. These countries are also part of "smaller" organizations that include the Association of Southeast Asian Nations, the Shanghai Cooperation Organization, the North American Free Trade Agreement, the Caribbean and Pacific Group of States, and the Union of South American Nations. Even "isolationist" North Korea is part of the Regional Forum, which discusses security issues in the region. In the same way, the countries will find it difficult to reject all forms of global economic integration, it will also be hard for them to turn their backs on their regions. Even if the UK leaves the EU, it must continue to trade with its immediate neighbors; it will, therefore, be forced to implement many EU rules. None of this is to say that regional organizations will remain unaltered. The history of regionalism shows that regional associations emerge as new global concerns arise. The future of regionalism will be contingent on the immense changes in global politics that will emerge in the 21st century. Reference: Mendoza, Cheryl C. et al. 2019. “Worktext in The Contemporary World.” Nieme Publishing House Co. Ltd Claudio, L. & Abinales, P. 2022. The Contemporary World. C & E Publishing, Inc. 42 APPLICATION Asian Regionalism Name:____________________________________ Program/Year/Set: __________ Date Submitted: _______________________ Score: ____________ Instruction: The whole class will be divided in to five groups. Each group will be assigned an Asian country to research and report on. These groups will deliver 5-minute presentations on the contemporary foreign and economic policies that confront the challenges of globalization and regionalization in their respective countries. The instructor will decide which Asian countries should be used for the group reporting. 43 Note: The presentation of each group will be graded according to this rubric. Criteria 3 4 5 Score The presentation Content The presentation had had moments The presentation Did the a lot of important where valuable had significant presentation and useful information was information and have valuable information and was present, but as a benefited the and significant very helpful to the whole, content class. information? class as a whole. was lacking. The teammates The teammates The teammates worked from Collaboration always worked sometimes worked others’ ideas Did everyone from others’ ideas. from others’ ideas. most of the time. contribute to the It was evident that However it seems And it seems like presentation? all of the group as though certain everyone did Did everyone members people did not do some work, but seem well versed contributed as much work as some people are in the material? equally to the others. carrying the presentation. presentation. The presentation Organization had organizing Was the There were The presentation ideas but could presentation minimal signs of was well organized, have been much well organized organization or well prepared and stronger with and easy to preparation. easy to follow. better follow? preparation. Group name/number: Group members: Comments: TOTAL 44 For DAPECOL, DNLI, and DJAL students APPLICATION Asian Regionalism Essay Writing Name : _____________________________ Program/Year/Set: __________ Date submitted: _______________________ Score: ____________ Instruction: Read the article, “Sustainability of ASEAN integration, competition policy, and the challenges of COVID-19” by Hassan Qagaya. Write an essay on how ASEAN integration meets the COVID-19 challenges. Note: Your output will be graded based on this rubric. Criteria 3 4

The Contemporary World - SS113 Course Pack - Davao del Norte

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