CHAPTER 1  Emergence of world economy should be taken as

a threshold of globalization.
Introduction to the Study of Globalization
 Commercial revolution coincided with a
 Giddens defines globalization as the revolution in the metaphysical, intellectual,
intensification of worldwide social relations ethical and religious aspects of man’s life.
which link distant localities in such a way that Religion and Ethical Philosophy
local happenings are shaped by events occurring o Zoroastrianism
many miles away and vice versa. o Buddhism
 The interconnectedness of human being o Confucianism and the teaching of Lau
brought about by technological changes, Tzu
modern transportation and communication o Judaism
technology. o Greek philosophy
 Robertson defines globalization as a concept o Christianism
that refers both to the compression of the world Globalization as a Condition
and intensification of consciousness of the world
as a whole.  Scholte (2008) refers to globality as social
 Harvey (1989) introduced globalization as the condition characterized by trans-planetary
compression of time and space and the connectivity and supra-territoriality.
annihilation of distance.  In terms of trans-planetary relation, globality is
 Globalization as a process of interaction and about the establishment of social links between
integration among the people, companies, and people located at the different places in our
governments of different nations. planet.
 A group of globalization scholars argue that  Supra-territorial relations are social connections
internationalization and multinationalization are that transcend territorial geography.
phases that precede globalization because of the  Dr. Vhin Ching, US-based medical doctor
latter heralds the end of the state system. “illustrates how this present world has become
 Globalization marks the increasing irrelevance of increasingly connected.
the nation state.  Globalization as a process and condition as it
 Globalization focuses on economic moved people from across the world. (having
 2000 (birth of modern world) sympathy) and (having interconnectedness)
 Globalization was first used as a term in the
Globalization as Ideology
academic circles in the decades of 1960’s and
1970’s  Steger (2005) – proponent
 Historians are more interested in determining  Michael Freeden explains that globalization
whether globalization is really a modern exists in people’s consciousness.
phenomenon,.
 Economists look into the changing patterns of Six Core Claims
international trade and commerce as well as the o Liberalization and global integration of
unequal distribution of wealth. markets (triumph of markets over
 Political scientists focus more on the impact of governments)
globalization o Inevitable and irreversible (neoliberal
Globalization as a Process policies have been heard proclaiming hat
globalization is happening and cannot be
 Globalization as a worldwide social stopped)
interdependencies and exchanges o Nobody is in charge of globalization (self-
 Globality is the thickening of social linkages regulating market) and (globalization does
between people from different parts of the not promote the agenda of any specific class
world, or group)
 Beginning of globalization was in the 1920’s o Globalization benefits everyone in the long
 Birth of globalization took place in 1571, the year run
Manila was founded as a Spanish entrepot
-Chinese businessman, Jack Ma, founder
connecting Asia and the Americas
and executive chairman of the Alibaba
 Group, who gained wealth and fame by 1. World System Paradigm
pioneering e-commerce in China Bank in - Immanuel Wallerstein the principal
1990s proponent of the theory
- Views globalization not as a recent
o Spread of Democracy (Francis Fukuyama phenomenon but a virtually synonymous
thinks that a certain level of economic with the birth and spread of world capitalism
development brought about by globalization - Core the powerful and developed centers of
would be conducive to the creation of the system
complex civil societies with a powerful middle - Periphery those regions that have been
class) forcibly subordinated to the core.
o Requires a global war on terror 2. Global Capitalism Paradigm
The impact of Globalization on the Academe - Globalization as a novel stage in the evolving
system of world capitalism
 FOCUS - Focus on new global production and
 Studies on transnational sexualities financial system
 Global tourism
 Evolution of state institutions Global Capitalist System
 Improvement of working conditions - Transnational corporations
 Transnational care-giving - Globalizing bureaucrats
 Crime syndicates - Politicians
 Global media - Professionals
 Shows how different we have become compared - Consumerist elites
Two Major Branches
1. Those studying specific problems or Three Planks
issues as they relate to globalization
- Transnational production
2. Those studying the concept of
- Transnational capitalists
globalization itself—theorizing the very
- Transnational state
nature of the process
3. The Network Society school of Thought
Domain Questions (Robinson, 2005) - Puts forth the premise that technology and
technological change are the underlying
 According to Robinson, 2005, should be based on causes of the several processes that
domain questions, which provide the assumptive comprise globalization
bases for theorizing. - Manuel Castells “The Rise of the Network
1. When din globalization begin? Society” (1996,1997,1998)
(ontological issue in globalization
studies) New Economy
2. Is the core of the process economic,
- Informational, knowledge-based
political or cultural? (casual
- Global in that production is organized on a
determination in globalization)
global scale
3. Does globalization refer to a process or
- Networked
condition? (globalization as a process of
4. Space, Time and Globalization
transformation) and ( globality as a
5. Transnationality and transnationalism
condition)
6. Global Culture paradigm
4. What is the relationship between
- McDonaldization to describe the socio-
globalization and the nation-state?
cultural process
(seen as an increased intensity of
 Internationalization includes activities by
exchanges among nation-states)
entities such as corporations, states,
5. What extent is the relationship
international organizations, private
between social structure and
organizations and even individuals with
territoriality being redefined by
reference to national boarders and national
globalization?
governments.
Theoretical paradigms associated with globalization
  Globalization includes a gamut of human  Szentes (2003) defines economic globalization
activities that do not require reference to a as a process making the world economy an
state’s national borders. “organic system”
 When globalization is interpreted as
The Post-World War II Economic System
internationalization the term refers to “growth
of transactions and interdependence between  Bretton Woods Conference in July 1944 formally
countries” known as the United Nations Monetary and
 Political Implication - that neo-liberalism is the Financial Conference, marked the birth of a new
only available policy framework for a truly global international economic framework.
world  44 countries
 As a homogenization process , globalization Two International Economic Organizations
destroys several indigenous cultures and - International Monetary Fund
practices - World Bank or International Bank for
 Contemporary world – social science that deals Reconstruction and Development
with the problem and issues of the:  Bretton Woods institution were known keystone
- Environment international economic organizations (KIEO’s)
- Power
- Population International Monetary Fund (IMF)
- Wealth - To promote global monetary cooperation and
- Tension and conflicts international financial stability
 Capitalism- investment - Created in 1945
 Globalization has grown because of the - When the states suffer from balance-of-
“advancement of transportation, payments deficits, they reduce the value of their
communication and interaction. currencies
3 Classification of Globalization - To provide short term loans
- Role of providing liquidity but ha more focus on
1. Political Globalization (government to countries tied to major currencies instead of
government interaction) countries supplying them
2. Social Globalization (organization or
socialization of people to people) Two Elements
3. Economic Globalization (international - IMF resource expansion to enhance capacity for
trade) financial crisis management
 Provincial rate – Php 373.00 - Increase in quota and voting power of emerging
economies within the institution
 BRIC – Brazil, Russia, India and China
CHAPTER 2  New Arrangement to Borrow (NAB) a
supplementary source of funding from countries
The Structure of Globalization
that are not tied to votig rights.
 Susan Stange defines the underlying
International Bank for Reconstruction and
foundation:
Development
- Production and trade
- Money and finance - Created to grant long-term loans for the
- Security economic development of less developed
- Knowledge and technology countries
 Trade is the oldest and most important - Provides lending to middle-income and
economic nexus among nations. –Robelt Gilpin creditworthy low-income countries
 Globalization involves the broadening and  International Development Association (IDA)
deepening of interdependence among peoples grants credits and loans to lowest income
and state. (Cohn, 2011:6) countries
 Globalization is the multidimensional
Three Other Institutions
phenomenon comprised of political, economic
and cultural features. - International Finance Corporation (IFC)
 - Multilateral Investment Guarantee Agency General Theory of Employment , Interests and
(MIGA) Money” 1936
- International Centre for Settlement of  Stagflation a combination of rising
Investment Disputes unemployment and inflation that occurred in the
 The role of World Bank in the Modern economy 1970
is to reduce extreme poverty  United States and Great Britain together with the
 African Development Bank (ABD) industrialized nation
 Capitalism would lead to economic prosperity
General Agreement on Tariffs and Trade (GATT) and the
alongside democratization
World Trade Organization (WTO)
 Washington Consensus a set of ten economic
 Purpose of GATT was to avoid trade wars by policy prescription
raising protectionist barriers as witnessed during  Washington Consensus was coined by John
the interwar period. Williamson 2004
 GATT was eventually suspended by a formal
Principles
World Trade Organization in 1995 that managed
to address issues - Fiscal Discipline
- Reordering Public Expenditure Priorities
International Monetary System
- Tax Reform
- Create institution - Liberalizing Interest Rates
- A set of general rules, legal norms, - A Competitive Exchange Rates
instruments and institutions shaping - Trade Liberalization
payment conditions in foreign trade - Liberalization of Inward Foreign Direct
 Gold Standard adopted by England (1816) being Investment
the first country to industrialize. - Privatization (deliver good quality and
 World War I marked the dissolution of the services)
classical gold standard and the shift to paper - Deregulation (removal of certain barriers)
money. - Property Rights
 Gold Bullion Standard is the new international CHAPTER 3
monetary system
 Bretton Woods System lasted from 1959-1968 The Global Interstate System and Global Governance
 1960’s and 1970’s a series of changes were
 Global Governance is defined as the formal and
introduced to maintain the operations of the
informal arrangements that produce a degree or
Bretton Woods system
order and collective action above the state in the
 Mercantilist period during the seventh and
absence of global government
eighteenth centuries
 United Nations serves as the primary
 Outbreak of World War I resulted to the
organization for international cooperation,
overturning of the free trade regime and the
peace and security.
return of protectionism
 50 countries convened at the United Nations
 Non-tariffs barriers (NTBs) in forms such as
Conference on International Organization more
environmental regulations and health and safety
commonly known as the San Francisco
requirement
Conference
 Trade-Related Intellectual Property Rights
 United Nations Charter established six principal
(TRIPs)
organs in 1945
 Agreement on Trade Related Investment - Economic and Social Councils (ECOSOC)
 General Agreement on Trade in Services (GATS) to advance the economic, social and
 Uruguay round also led to the creation of the environmental dimensions of
formal international institution in 1995 sustainable development
 Great Depression in 1930 - Trusteeship Council the main organ of
 John Maynard Keynes a prominent British UN, to provide international supervision
economist have been influential in shaping the of trust territories
economic policy of developed countries. “The
 - International Court of Justice United o They have better standard of living and quality of
Nations Principal judicial organ, to settle life
legal disputes between states o USA life expectancy at 79 years for women and
- Security Council most potent organ with 77 years for men; SOMALIA (LEDC) life
the power to make legally binding expectancy is 51 years for women and 48 years
resolutions for men
- General Assembly UN organ with o The distribution of Education and Healthcare is
universal representation with all 193 also a factor
member state represented in the body o Canada has free universal healthcare and three
(uniting for peace resolution of 1950) secondary education
- Reforming the United Nations 1963, for
the expansion of UNSC The Global South
 Uniting for Peace serves as the potential  Known as the SOUTH/DEVELOPING or “POOR
solution SIDE”
CHAPTER 4  GDP and HDI are considered interior; ex.
Somalia, Vietnam, Haiti and India
GLOBAL DIVIDES: The North and South
Why is it considered LEDC?
 The North-South – related to an economic
division between richer and poorer countries. o Unstable government
o Poor economy
 The Global North – viewed to be the affluent and
o Poor standard of living and quality of life
economically stable countries
o Low GDP
INCLUDES: (USA, Canada, GRP of 8 Four Permanent o Low HDI
member of UN Security Council) – Japan, Russia, UK, USA
Indonesia – skewed HDI due to a relatively high GDP and
(Below equator: Australia and New Zealand) exceptionally low standard of living

 The Global South – includes nations located in Why is the South at such disadvantage?
Africa, Latin America, and the developing part of
o COLONIZATION
Asia with exception to Japan.
o Most of the countries in MEDC are imperialist
 UNDP Human Development Index – attempts to
countries that were remain powerful
produce an objective classification
- France
 Global North consists of 64 countries which have
- United Kingdom
high HDI
- USA after being colonized by
 133 countries belong to the global South British(former colonizer), they become
G8 Member State powerful country

 Canada First, Second and Third Worlds

 France
 Global North – Global South first emerged in
 Germany
1996
 Italy
 Developed countries primarily located in the
 Japan
northern hemisphere and poorer developing
 Russia
countries located mainly in the southern
 UK
hemisphere
 USA
 The North – South divide – policymakers and
The Global North practitioners uses to summarize complex
political and economic tensions
 More Economically Developed Countries (MEDC)  First World – alliances with much of the western
 RICHER and more STABLE countries World who preached for democracy and
Why are the countries in the North considered MEDC? capitalism

o Because of the stability that their economy has

  Second World – the communist bloc led by - Benefited from globalization to become
USSR/Russia, China and other states that have more assertive in global relations with
Marxist Principles the PRC aspiring to world leadership
 Third World – non-aligned states, the
BRAZIL, CHINA, INDIA
underdeveloped nations and states that have
unstable political and economic conditions, - Developing worlds
“coined by French scholar Alfred Sauvy in 1952 - Three leading economies
Terms that Characterized the Third World BANGLADESH, CHILE, GHANA, TUNISIA
o The Less-Developed world - Experiencing rapid economic
o The Majority world development
o The Non-Western world  According to 2013 UNDP Human Development
o The Poor world Report, it is estimated that 80% of the world’s
o The undeveloped world middle class population will be living in
developing countries by 2030
Developing World refer to states that are previously
categorized as part of the third world (widely used in  The ongoing global transformation is
1980’s) phenomenon known as South-South
Cooperation
ASIAN Tigers  South-South cooperation is coming to occupy an
important place in the changingge theory of
o Singapore
development
o Hong-kong
 Jean Grugel enumerated three factors that
o Taiwan
direct the economic development of states
o South Korea
1. Elite behaviour within and between
Brandt Report – published by German Chancellor Willy nation states
Brandt 2. Integration and cooperation within
geographic areas
- It identified North/South line and thus 3. Resulting position of states and regions
popularized another term namely “The within the global market and related
South” political economic hierarchy
The South latitude 30◦ North, there were exceptions,  BRICS – acronym for an association of five major
Australia and New Zealand emerging national economies
B – Brazil
Flashpoints and Perspective of the Divide R – Russia
I – India
 Underdeveloped countries became more visible
C – China
– Global South
S – South Africa
 Australia and New Zealand – southern outliers
 Global North- South seen by as a result of
of North
international free trade and unhindered capital
 South was associated with starvation,
flows across countries
malnutrition, poverty, epidemics and low
 Closing or mitigating the divide has been goal for
educational levels
many developmental initiatives
 Latin America and Asia – contribute large
 The UN has developed a program dedicated to
numbers of well educated, competent
narrowing the divide through its MILLENIUN
professionals to the global workforce
DEVELOPMENT GOALS aimed at sustainable
 Inequality – deep structural detect that
development
diminishes individual and collective potential for
many CHAPTER 5
 According to Magallanes, global south a historic
and de-contextualized it omits a critical core of Asian Regionalism
dynamic variables Regionalism is fashioned out of the rationale that
People’s republic of CHINA, INDIA, BRAZIL, TURKEY regional organizations are treaty and charter-based
giving them formal status in international law.
 Acharya (2009) opined, regional organizations also  1930s, countries created preferential trade blocs
derive legitimacy through the articulation and in an attempt to shelter their economies from
implementation of distinctive regional norms and the Great Depression
practices
Four major areas in this Analysis:
ASEAN Way a consensus-based approached based
upon strict observance of sovereignty 1. Trade, investment, and integration of “real”
economic activity
Regionalism is the manifestation or expression of 2. Financial integration
common sense 3. Macro-economic policy links
4. Shared social and environmental concerns
Economic Regionalism refers to the institutional
arrangements designed to facilitate the free flow of Asian Regional Organizations
goods and services and to coordinate foreign
economic policies between countries in the same o ASEAN (Association of Southeast Asian Nations)
geographic region or nearby locale. o APEC (Asia Pacific Economic Cooperation)
o APT (ASEAN Plus Three)
Example: free trade areas, customs union, common o EAS (East Asian Summit)
markets, and economic unions o APc (Asia Pacific community)
o EAC (East Asian Community)
Regionalism in Asia
ASEAN
Economic Powerhouses
 The regional grouping of nation states
 Japan
predominantly occupying the Southeast Asian
 China
locale.
 South-Korea
 Established on August 08, 1967 in Bangkok,
 The Asian “miracle as many would refer to the
Thailand
rapid economic transformation in the 80’s did
not end with the 1997/98 financial crisis Founding Fathers
 Regionalism strength derives from the openness,
diversity and dynamism of its interconnected  Indonesia
economies  Malaysia
 Philippines
Benefits of Asian Regionalism  Singapore
 Thailand
 Sustain the region’s growth
o Brunei Darussalam (January 07, 1984)
 Underpin its stability
o Viet Nam (July 28, 1995)
 With the right policies
o Lao PDR and Myanmar (July 23, 1997)
 Reduce inequality
o Cambodia (April 30, 1999)
 Address the perennial problem of poverty
Aims and Purposes
The Imperative for Regionalism in Asia
1. Accelerate the economic growth, social
RESULT:
progress and cultural development
1. Generate productivity gains, new ideas, and 2. Promote regional peace and stability
competition that boost economic growth and 3. Promote active collaboration and mutual
raise incomes across the world assistance
2. Contribute to the efficiency and stability of 4. Provide assistance to each other
global financial markets 5. Collaborate more effective for the greater
3. Diversity sources and global demand, helping to utilization
stabilize the world economy 6. Promote southeast Asian studies
4. Provide leadership to help sustain open global 7. Maintain close and beneficial cooperation
trade and financial systems
Fundamental Principles
5. Create regional mechanisms to manage health,
safety, an environment issues better (Treaty Amity and Cooperation of Southeast Asia (TAC) of
1976)
 1. Mutual respect for the independence o Philippines
sovereignty, equality, territorial integrity,and o Russian Federation
national identity of all nations o Singapore
2. The right of every state to lead its national o Chinese Taipei
existence free from external interference, sub- o
version or coercion o United States of America
3. Non-interference in the internal affairs of one o Viet Nam
another  APEC’s structure is based on both a “bottom-up”
4. Settlement of differences of disputes by peaceful and “top-down”
manner  The 21 APEC member economies jointly work
5. Renunciation of the threat or use of force towards the realization of free and open trade
6. Effective cooperation among themselves and investment in the Asia-Pacific by 2020
 The establishment of greater regional
ASEAN Community
community to address the economic and social
 ASEAN Vision of 2020 , Agreed on the shared dimensions of development – a committee made
vision of ASEAN as a concert of Southeast Asian by APEC Leaders in 1994 known as the Bogor
nations, outward looking, living in peace, Goals
stability and prosperity, bonded together in
East Asian Summit (EAS)
partnership in dynamic development and in a
community of caring societies  Unique leaders-led forum of 18 countries who
 4.4 million square kilometres and covers formed to forum for the objectives of regional
roughly 3% of the total land area of earth peace
 Water covers about three times larger than its  Consist of 10 ASEAN member state
land counterpart  Established in 2005
 640 million people, 8.8% of the worlds  Allows the principal players in the Asia-Pacific
population combined nominal GDP had grown to region to discuss issues of common interest and
more than USD $2.8 trillion concern
 East Asia Grouping was first promoted in 1991 by
APEC
the Malaysian Prime Minister, Mahathir bin
 Regional economic forum established in 1989 to Mohamad
leverage the growing interdependencies of Asia-  ASEAN Ministerial Meeting (AMM) held in
Pacific. Vietnam on July 26,2005
 21 members
APT ASEAN Plus Three
 Ensures that goods, services, investment and
people move easily across borders  Cooperation begun in December 1997 and
institutionalized in 1999
APEC’s 21 Members
 Resolve and confidence in further strengthening
o Australia and deepening east asia cooperation at various
o Brunei Darussalam levels and in various areas including energy,
o Canada transport, information, and communication
o Chile  Can be considered as a forum that functions as
o People’s Republic of China a coordinator of co-operation between ASEAN
o Hong Kong and the three Asian nations of China, Japan and
o China South Korea
o Indonesia  10 members of ASEAN and 3 Northeast Asian
o Japan States
o Republic of Korea
o Malaysia
o Mexico Issues and Concerns of Asian Regionalism
o New Zealand
o Papua New Guinea
o Peru
 1. They have not played a role in the major and
longstanding regional conflicts, especially those
that are holdovers from cold wars
2. Criticism relates to their failure to make use of
available instrument of conflict-prevention and
resolution
3. The failure of regional trust-building, which is
supposed to have been brought about regional
groups like the ASEAN is reflected in the
emergence of what seems to be a significant
arms race across the region
4. The economic front, there has been no regional
free-trade area under the auspices of APEC,
which was created partly with that objective in
mind
5. While the region is regularly visited by natural
calamities, there are no standing regional
humanitarian and disaster assistance
mechanism in place, despite periodic attepmts
to create one
6. Human rights and social issues, ASEAN
Intergovernmental Commission of Human
Rights is merely a body for “promotion” rather
than “protection”
 Asian regional groups are not problem-solving or
law-enforcing mechanisms, but norms-making
and socializing agents
 ECOTECH pillar of APEC build the technical
capacity to promote trade, investment and
robust, secure and sustainable economic growth
that widely benefits the region’s people
 Spratly Island the island groupings that
Philippines claims to be a part of its territorial
limits in West Philippine Sea
Asian Regionalism and the Philippines
 South East Asia Treaty Organization (SEATO)
 Philippines firmly believes in establishing close
ties with its neighbors and pursue friendship,
amity and cooperation as embodied in its
constitution
 Philippines remains to be an important founding
member of the ASEAN having hosted several
summits recently

“But as for you BE STRONG and DO NOT GIVE UP for you
work will be rewarded.”
2 Chronicles 15:7

GOODLUCK FUTURE ENGINEER!!