UNIT I: THE CONTEMPORARY WORLD Globalization involves both the macro-structures of a global

INTRODUCTION TO GLOBALIZATION community and micro-structures of global person-hood. It

 Globalization is a process of interaction and integration extends deep into the core of the self and dispositions,
among the people, companies, and governments of facilitating the creation of multiple individual and collective
different identities nurtured by the intensifying relations between the
 nations, a process driven by international trade and personal and the global.
investment and aided by information technology.
 This process has effects on the environment, culture, GLOBALIZATION: A WORKING DEFINITION
political systems, economic development and Globalization
prosperity, and human physical well-being in societies  Primarily an economic process.
around the world.  The integration of the national markets to wider global
 According to the International Monetary Fund (IMF), markets is signified by the increased free trade.
globalization is the growing economic interdependence Anti-globalization (1990s)
of countries worldwide through increasing volume and  Resisting the trade that deals among countries
variety of cross-border transactions in goods and facilitated and promoted by global organizations.
services and of international capital flows and also  Globalization scholars do not necessarily disagree with
through the more rapid and wide diffusion of people who criticize unfair international trade deals or
technology. global economic organizations.
 One principal driver of globalization is technology.  Journalists and political activists view globalization has
 Economic life is dramatically transformed by a broader term because the view the process through
advancements in information technology. various lenses that consider multiple theories and
 Globalization is an expansion, and intensification of perspectives.
social relations and consciousness across world time
and world space. It is about growing worldwide HISTORICAL PERIODS OF GLOBALIZATION
connectivity according to Steger. 1. The Prehistoric Period (10000 BCE-3500 BCE)
In this earliest phase of globalization, contacts among
ATTRIBUTES, QUALITIES, OR CHARACTERISTICS OF hunters and gatherers–who were spread around the world –
GLOBALIZATION were geographically limited. In this period due to the
4 Characteristics or Qualities: absence of advanced forms of technology, globalization was
1. It involves both the creation of new social networks severely
and the multiplication of existing connections that cut limited.
across traditional, political, economic, cultural, and 2. The Pre-modern Period (3500 BCE - 1500 CE)
geographical boundaries. In this period the invention of writing and the wheel were
Example: Brazilian World Cup: Today’s media combine great social and technological boosts that moved
conventional TV coverage with multiple streaming feeds into globalization to a
digital devices and networking sites that transcend new level. The invention of the wheel in addition to roads
nationally based services. made the transportation of people and goods more
2. Globalization is reflected in the expansion and the efficient. On the other hand, writing facilitated the spread of
stretching of social relations, activities, and ideas and inventions.
connections. 3. The Early Modern Period (1500-1750)
Examples: It is the period between the Enlightenment and the
 Reaching financial markets around the globe. Renaissance. In this period, the European Enlightenment
 Occurrence of electronics around the clock. project tried to achieve a universal form of morality and law.
 Emergence of gigantic and virtually identical shopping This with the emergence of European metropolitan centers
malls on all continents to cater to consumers who can and unlimited material accumulation which led to the
afford commodities all over the world including capitalist world system helped to strengthen globalization.
products whose various components were 4. The Modern Period (1750-1970)
manufactured in different countries. This process is Innovations in transportation and communication
called social stretching. technology, population explosion, and increase in migration
3. Globalization involves the intensification and led to more
acceleration of social exchanges and activities. cultural exchanges and transformation in traditional social
Examples: patterns. The process of industrialization also accelerated.
 The worldwide web relays distant information in real- 5. The Contemporary Period (from 1970 to present)
time. The creation, expansion, and acceleration of worldwide
 Satellites provide consumers with instant pictures of interdependencies occurred in a dramatic way and it was a
remote events. kind
 Sophisticated social networking by means of Facebook of leap in the history of globalization.
or Twitter has become a routine activity for more than
a billion people around the globe. DIMENSIONS OF GLOBALIZATION
4. Globalization processes do not occur merely on an 1. Economic Dimension
objective, material level but they also involve the This refers to the extensive development of economic
subjective plane of human consciousness. Without relations across the globe as a result of technology and the
erasing local and national attachments, the enormous flow of capital that has stimulated trade both
compression of the world into a single place has sources and goods.
increasingly made global the frame of reference for Major Sources of Economic Growth across Countries
human thought and action. 1. Property rights
2. Regulatory institutions
 3. Institutions for macro-economics 1. Commutative justice- This aims at fulfilling the
4. Stabilization terms of contracts and other promises on both
5. Institutions for social influence personal and social levels.
6. Institutions for conflict management 2. Distributive justice- This ensures basic equity in
2. Political Dimension- This refers to the enlargement how both the burden and the goods of society are
and strengthening of political interrelations across the distributed and that ensures that every person
globe. enjoys a basically equal moral and legal standing
Political Issues that Surface in this Dimension apart from differences in wealth, privilege, talent,
1. The principle of state sovereignty. and achievements
2. Increasing impact of various intergovernmental 3. Social justice- This refers to the creation of the
3. organizations. conditions in which the first two categories of
4. Future shapes of regional and global governance. justice can be realized and the common good
3. Cultural Dimension- This refers to the increase in the identified and defended.
number of cultural flows across the globe. Cultural 8. Integral Humanism- is concerned with the whole
interconnections are at foundations of contemporary person
globalization.
 Individualism and consumerism which are the 5.Ideological Dimensions- Ideology is a system of widely
dominant cultural characteristics of our age and the shared ideas, beliefs, norms, and values among a group of
drive for economic success stimulated by the internet people. It is often used to legitimize certain political
and other technological devices circulate much more interests or to defend dominant power structures. Ideology
easily than they did in earlier periods. connects human actions with some generalized claims
 Cultural diversity often results in hybridization- a
constructive interaction process between global and
local characteristics which is often visible in food, MAJOR IDEOLOGICAL CLAIMS OF ADVOCATES OF
music, dance, film, fashion, and language. GLOBALISM
 Media empires generated and directed the extensive 1. Globalization is about the liberalization and global
flow of culture. Examples of these are Yahoo, Google, integration of markets. The problem with this claim is
Microsoft, and Disney. that liberalization and integration of markets happen
 Advertisement plays an important role in this cultural through the political project of engineering free
flow by featuring various celebrities on television aside markets by the interference of centralized state power,
from transforming newscasts into entertainment and it is in contrast to the neoliberal ideal of the limited
shows. role of governments.
4. Religious Dimension- Religion is a personal or 2. Globalization is inevitable and irreversible. Globalists
institutionalized set of attitudes, beliefs, and practices believe that the spread of market forces driven by
relating to or manifesting faithful devotion to an technological innovations is inevitable in globalization.
acknowledged ultimate reality or deity. Neoliberals use this claim to convince people to adopt
 Jihadist globalism is a religious response to the the natural discipline of the market if they want to
materialist assault by the ungodly West in the rest of prosper, which implies the elimination of government
the world. Coming out of what they consider a pure controls over the market.
form of Islam, its disciples seek to destroy all those 3. Nobody is in charge of globalization. This claim seeks
alien influences that have been imposed on Muslim to depoliticize the public debate on globalization
people. neutralizing anti-globalist movements.
Roman Catholic Teaching of Globalization 4. Globalization benefits everyone. Globalists talk about
There are eight (8) principles that summarize the Roman the benefits of market liberalization such as rising
Catholic Teachings: global living standards, economic efficiency, individual
1. Commitment to universal human rights. freedom, and technological progress.
2. Commitment to the social nature of the human 5. Globalization furthers the spread of democracy in the
person. world. For the globalists democracy and free markets
3. Commitment to the common good. are synonymous.
4. Solidarity (The principle of Solidarity affirms that The neoliberal explanation of globalization is ideological
membership in the human family means that all bear because it is politically motivated and contributes to the
responsibility for one another.) construction of particular meanings of globalization which
5. Preferential option of the poor (In the Theology of the stabilize existing power relations
Incarnation- Christ God Became poor for us so as to
enrich us by his poverty. The poor are susceptible to UNIT II: THE STRUCTURES OF GLOBALIZATION
the effects of environmental irresponsibility because ○ Economic globalization refers to the increasing
they live in countries where cheap building materials interdependence of world economies as a result of the
and cheap labor are readily available. They regularly growing scale of cross-border trade of commodities
work in farming, fishing, and forestry, areas which and services, flow of international capital, and wide and
suffer environmental damage). rapid spread of technologies.
6. Subsidiary (The Catholic Church teaches that decisions ○ According to the International Monetary Fund (18)
should be made at the lowest level in order to achieve economic globalization is a historical process, the result
the common good. of human innovation and technological progress
7. Justice
Justice is divided into three (3) categories: TWO MAJOR DRIVING FORCES FOR ECONOMIC
GLOBALIZATION
1. The rapid growth of information in all types of the main task of facilitating cross-border transactions,
productive activities. especially trade and investment.
2. Marketization
○ A restructuring process that enables state enterprises
operate as market-oriented firms by changing the legal EVOLUTION INTERNATIONAL MONETARY SYSTEMS
environment in which they operate and can be ○ From 1870 to 1914, with the help of gold and silver,
achieved through reduction of state subsidies, trade was carried out without any institutional support.
organizational restructuring of management such as ○ Gold was believed to guarantee a noninflationary,
corporatization, decentralization, and privatization. stable economic environment, a means for accelerating
Dimensions of Economic Globalization international trade Gold standard functioned as a fixed
1. The globalization of trade of goods and services. exchange rate regime, with gold as the only
2. The globalization of financial and capital markets. international reserve.
3. The globalization of technology and communication. ○ Gold Standard is a system of backing a country’s
4. The globalization of production. currency with its gold reserves. Such currencies are
freely convertible into gold at a fixed price, and the
DIFFERENCE BETWEEN ECONOMIC GLOBALIZATION country settles all its international trade transactions in
FROM INTERNATIONALIZATION gold.
○ Economic globalization is a functional integration ○ After World War I, the use of gold declined due to
between internationally dispersed activities which increased expenditure and inflation which were caused
means that it is a qualitative transformation rather by war and; the Great depression in 1931.
than quantitative change while internationalization is ○ In 1944, 730 representatives of 44 nations met at
an extension of economic activities between Bretton Woods, New Hampshire, United States, and
internationally dispersed activities created a new international monetary system called
○ Transnational corporation otherwise known as multi- the Bretton Woods system, he aim of which is to create
national corporation is a corporation that has a a stabilized international currency system and ensure
homebase, but is registered, operates, and has assets monetary stability for all the nations.
or other facilities in at least one other country at one ○ The Bretton Woods system ended in 1971 as the trade
time. deficit and growing inflation undermined the value of
○ Examples are the US-based General Electric (GE), the the dollar in the whole world.
Coca-Cola Company of Atlanta, Georgia, US Nike, and
others. EUROPEAN MONETARY INTEGRATION
○ European monetary integration refers to a 30- year-
ORIGIN OF ECONOMIC GLOBALIZATION long process that began at the end of the 1960s as a
○ In the 16th-century world system, analysts identify the form of monetary cooperation intended to reduce the
origin of modernity and globalization through long- excessive influence of the US dollar on domestic
distance trade in the 16th century. This best-known exchange rates, and led, through various attempts, to
example of archaic globalization is the Silk Road (Han the creation of a Monetary Union and a common
Dynasty), which started in western China, reached the currency.
boundaries of the Parthian empire, and continued ○ The European Monetary System (EMS) is a 1979
onwards towards Rome. arrangement between several European countries that
○ In the 17th and 18th centuries, the global economy links their currencies in an attempt to stabilize the
exists only in trade and exchange rather than exchange rate. This system was succeeded by the
production as the world export to World GDP did not European Economic and Monetary Union (EMU), an
reach 1 to 2 percent. institution of the European Union (EU), which
○ In the 19th century, the advent of globalization established a common currency called the euro.
approaching its modern form is witnessed. A short ○ The European Financial Stability Mechanism (EFSM) is
period before World War I is referred to as the golden a permanent fund created by the European Union (EU)
age of globalization is characterized by relative peace, to provide emergency assistance to member states
free trade, and financial and economic stability. within the Union. It raises money through the financial
○ The global economy in the 19th and 20th centuries markets and is guaranteed by the European
grew by an average of nearly 4 percent per annum, Commission.
which is roughly twice as high as growth in the national ○ The European Financial Stability Facility (EFSF) on the
incomes of the developed economies since the late other hand, is an organization created by the European
19th century. Union to provide assistance to member states with
○ unstable economies.
INTERNATIONAL MONETARY SYSTEMS AND GOLD ○ The EFSF is a special purpose vehicle (SPV) managed
STANDARD by the European Investment Bank, a lending institution.
○ International monetary system (IMS) refers to a The Fund raises money by issuing debt and distributes
system that forms rules and standards for facilitating the funds to Eurozone countries whose lending
international trade among nations. It helps in institutions need to be recapitalized who need help
reallocating capital and investment from one nation to managing their sovereign debt or who need financial
another. It is the global network of the government and stabilization.
financial institutions that determine the exchange rate
of different currencies for international trade. INTERNATIONAL TRADE AND TRADE POLICIES
○ IMS as rules, customs, instruments, facilities, and ○ International trade is the exchange of goods, services,
organizations for effecting international payments with and capital across national borders. It is a multi-million
dollar activity, central to the Gross Domestic Product
 (GDP) of many countries, and it is the only way for 1. Size of the country can affect the “thickness” of its
many countries to acquire resources. This type of trade markets.
allows for greater competition and more competitive 2. The technology for search affects the cost and
pricing in the market. likelihood of finding a suitable partner.
○ The two key concepts in the economics of 3. The technology for specializing components
international trade are specialization and comparative determines the willingness of a partner to undertake
advantage. the needed investment in a prototype.
○ Trading globally gives consumers and countries the 4. The contracting environments can impinge on a firm’s
opportunity to be exposed to goods and services not ability to induce a partner to invest in the relationship.
available in their own countries
○ Trade policies refer to the regulations and agreements MARKET INTEGRATION
of foreign countries. It defines standards, goals, rules, ○ Market integration refers to how easily two or more
and regulations that pertains to trade relations markets can trade with each other. It occurs when
between countries. prices among different locations or related goods
follow similar patterns over a long period of time.
FOCUSES ON TRADE POLICY IN INTERNATIONAL TRADE
○ Tariffs - taxes or duties paid for a particular class of TYPES OF RELATED MARKETS WHERE MARKET
imports or exports. INTEGRATION OCCURS
○ Trade barriers - measures that governments or public ○ Stock Market Integration- This is a condition in which
authorities introduce to make imported goods or stock markets in different countries trend together and
services less competitive than locally produced goods depict the same expected risk-adjusted returns.
and services.Tariffs, duties, subsidies, embargoes and ○ Financial Market Integration- It is an open market
quotas economy between countries facilitated by a common
○ are the most common trade barriers. currency and the elimination of technical, regulatory,
○ Safety - ensures that imported products in the country and tax differences to encourage the free flow of
are of high quality. capital and investment across borders.
Global corporation is a business that operates in two or
TYPES OF TRADE POLICIES more countries. It also goes by the name "multinational
○ National Trade Policy - safeguards the best interest of company.
its trade and citizen. ○ The Finance function in a Global Corporation as
○ Bilateral Trade Policy - regulates the trade and corporations go global, capital markets open up within
business relations between two nations, this policy is them, giving companies a powerful mechanism for
formed. arbitrage across national financial markets.
○ International Trade Policy - international trade policy ○ Chief financial officers (CFOs) must balance the
under their charter like the International economic opportunities with the challenges of operating in
organizations. multiple environments in managing their internal
markets in building an advantage.
○ Trade Policy and International Economy - in most The three functions below can be created by CFOs from
developed countries where an open market economy exploiting their internal capital markets.
prevails, international economic organizations support 1. Financing -A group’s tax bill can be reduced by the CFO
free trade policies. by borrowing from countries with high tax rates and
○ The World Trade Organization (WTO) - deals with the lending to operations in countries with lower rate.
global rules of trade between nations with the main 2. Risk Management- Global firms can offset natural
function of ensuring that trade flows smoothly, currency exposures through worldwide operations
predictably, and freely. instead of managing currency exposures through
financial markets.
GLOBAL ECONOMY OUTSOURCING 3. Capital budgeting- Getting smarter about valuing
○ Outsourcing- is an activity that requires a search for a investment opportunities CFOs can add value.
partner and relation-specific investments.
○ Subcontracting- is a central element of the new ○ Foreign Direct Investment (FDI) was of corporate
economy. It is the practice of assigning part of the origin. It is a major driver of extended global corporate
obligations and tasks under a contract to another party development.
known as a subcontractor. ○ Brazil, Russia, India, China, and South Africa (BRICS) is
There are three essential features of a modern an acronym for the combined economies of Brazil,
outsourcing strategy: Russia, India, China, and South Africa. BRIC, without
1. Firms must search for partners with the expertise that South Africa, was originally coined in 2003 by Goldman
allows them to perform the particular activities that are Sachs, which speculates that by 2050 these four
required. economies will be the most dominant.
2. They must convince potential suppliers to customize ○ The General Agreement on Trade in Services (GATS) is
products for their own specific needs. the first multilateral agreement covering trade in
3. They must induce the necessary relationship-specific services which was negotiated during the last round of
investments in an environment with incomplete multilateral trade negotiations, called the Uruguay
contracting. Round, and came into force in 1995.
○ GATS has a similar principle to the General Agreement
POSSIBLE DETERMINANT OF THE LOCATION OF on Tariffs and Trade (GATT) which deals with trade in
OUTSOURCING goods. The two primary objectives of GATTS are to
ensure that all signatories are treated equitably when
 accessing foreign markets, and the second is to tariff against non-members is involved in the Customs
promote progressive liberalization of trade and Union.
services. ○ One major step towards economic integration is
Common Market (CM).
THE GLOBAL INTERSTATE SYSTEM ○ The trading bloc that has both a common market
NEOLIBERALISM AND ECONOMIC SOVEREIGNTY between members and common trade policy towards
○ Neoliberalism is the intensification of the influence and non-members, although members are free to pursue
dominance of capital. It is the elevation of capitalism as independent macro-economic policies is termed
a mode of production into an ethic, a set of political Economic Union.
imperatives, and a cultural logic. ○ The Economic and Monetary Union (EMU) involves a
○ Economic sovereignty is the power of national single economic market, a common trade policy, a
governments to make decisions independently of those single currency, and a common monetary policy. It
made by other governments. represents a major step in the integration of EU
There are four different concepts of sovereignty: economies.
○ International Legal Sovereignty refers to the ○ Complete Economic Integration is the final stage of
acceptance of a given state as a member of the economic integration which member states completely
international community. forego the independence of both monetary and fiscal
○ Westphalian Sovereignty is based on the principle that policies.
one sovereign state should not interfere in the ○ Political integration refers to the integration of
domestic arrangements of another. components within political systems; the integration of
○ Interdependence Sovereignty is the capacity and political systems with economic, social, and other
willingness to control flows of people, goods, and human systems; and the political processes by which
capital into and out of the country. social, economic, and political systems becomes
○ Domestic Sovereignty is the capacity of a state to integrated.
choose and implement policies within the territory.
THEORIES OF EUROPEAN INTEGRATION
ECONOMIC AND POLITICAL INTEGRATION (EUROPEAN ○ Neofunctionalism- This theory focuses on the
INTEGRATION) supranational institution of the EU of which the main
○ European integration is the process of industrial, driving forces of integration are interest group activity
political, legal, economic, social, and cultural at the European and national levels, political party
integration of states wholly or partially in Europe. activity, and the role of governments and supranational
○ European Union (EU), is an international organization institutions.
comprising 28 European countries and governing ○ Intergovernmentalism - The main concept of
common economic, social, and security policies . In the Intergovernmentalism is emphasizing the role of
early 21st century EU expanded into central and national states in European integration; in another
eastern Europe with the following members: Austria, word, it argues that "European Integration is driven by
Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, the interest and actions of nation-states."
Denmark, Estonia, Finland, France, Germany, Greece, ○ Liberal Intergovernmentalism - This dominant political
Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, theory developed by Andrew Moravsik in 1993 explains
Malta, the Netherlands, Poland, Portugal, Romania, European integration. The application of rational
Slovakia, Slovenia, Spain, Sweden, and the United institutionalism to the field of European integration is
Kingdom. the aim of this theory.
○ Economic integration can be described as a process ○ New Institutionalism - This theory emphasized the
and a means by which a group of countries strives to importance of institutions in the process of European
increase their level of welfare Integration. Its three key strands are rational choice,
Seven Stages of Economic Integration sociological and historical.
1. Preferential trading area (PTA) ○ Multi-level Governance (MLG) -This is a new theory of
2. Free trade area European integration. Writers Liesbet Hooghe and Gary
3. Customs union Marks defined MLG as the dispersion of authority
4. Common market across multiple levels of political governance.
5. Economic union
6. Economic and monetary union TRANSNATIONAL ACTIVISM IN STATES
7. Complete economic integration ○ Transnational activism can be defined as the
○ Preferential Trade Areas (PTAs) happen when there’s mobilization of collective claims by actors located in
an agreement on reducing or eliminating tariff (tax or more than one country and/or addressing more than
duty to be paid on a particular class of imports or one national government and/or international
exports) barriers on selected goods imported from governmental organization or another international.
other members of countries within the geographical ○ Social Movement-It refers to the organizational
region or areas. The agreement can either be bilateral structures and strategies that may empower oppressed
(between two countries) or multilateral (several populations to mount effective challenges and resist
countries). the more powerful and advantaged elites.
○ Free Trade Agreements (FTAs) or Preferential Trade ○ Global Justice Movement- The movement is often
Agreements (PTAs) eliminate import tariffs as well as labeled the anti-globalization movement by the
import quotas between signatory countries. mainstream media.
○ Removal of tariff barriers between members, together ○ The new transnational activism is as multifaceted as
with the acceptance of a common or unified external internationalism. Although globalization and global
neoliberalism are frames around which many activists
 mobilize, the protests and organizations are not the processes:
product of a global imaginary but of domestically 1. It calls for a transfer of decisions to the
rooted activists who are the connective tissue of the international level.
global and the local, working as activators, brokers, and 2. It requires many decisions to be transferred to
advocates for claims both domestic and international. local levels of government due to an increase in
SOCIAL MEDIA AND THE STATE the demand for participation.
○ Social media is a computer-based technology that The following can be guaranteed only by the
facilitates the sharing of ideas and information and the States through independent courts:
building of virtual networks and communities. 1. Respect for human rights and justice
2. Promote the national welfare
THE CONTEMPORARY GLOBAL GOVERNANCE 3. Protect the general interest
○ Global governance or world governance is a The following can be guaranteed only by the
movement towards the political integration of States through independent courts:
transnational actors aimed at negotiating responses to 1. Respect for human rights and justice
problems that affect more than one state or region. It 2. Promote the national welfare
tends to involve institutionalization. 3. Protect the general interest
○ Global governance is a tool to identify solutions to
problems created by neoliberal globalization. UNIT III: WORLD OF REGIONS
○ Global South refers to the regions of Latin America,
THE ROLES AND FUNCTIONS OF THE UNITED NATIONS Asia, Africa, and Oceania mostly low income and often
○ The UN aims to save succeeding generations from the politically or culturally marginalized. It may also be
scourge of war; reaffirm faith in fundamental human called the "developing World" such as Africa, Latin
rights; establish conditions under which justice and America, and the developing countries in Asia,
respect for the obligations arising from treaties and "developing countries," "less developed countries," and
other sources of international law can be maintained, "less developed regions”.
and promote social progress and better standards of ○ Contemporary critics of neo-liberal globalization use
life in larger freedom the global south as a banner to rally countries
victimized by the violent economic cures of institutions
FOUR MAIN PURPOSES OF THE UN CHARTER like the International Monetary Fund.
1. Maintaining worldwide peace and security.
2. Developing relations among nations. THREE PRIMARY CONCEPTS OF GLOBAL SOUTH
3. Fostering cooperation between nations in order. to 1. It refers to economically disadvantaged nation states as
solve economic, social, cultural, or humanitarian a post-cold war alternative to the “Third World”.
international problems. 2. The Global South captures a deterritorialized
4. Providing a forum for bringing countries together to geography of capitalism’s externalities and means to
meet the UN's purpose and goals. account for subjugated peoples within the borders of
Challenges of Global Governance in the 21st Century Global wealthier countries, such that there are economic
governance can be understood as the sum of laws, norms, Souths in the geographic North and North in the
policies, and institutions that define, constitute, and geographic South.
mediate trans-border relations between states, cultures, 3. It refers to the resistant imaginary of a transnational
citizens, intergovernmental and nongovernmental political subject that results from a shared experience
organizations, and the market. of subjugation under contemporary global capitalism.
The Role of the Nation -State in Globalization The strongest vehicle for social redistribution and the main
Basic Elements of a State mechanism for social transfer is the state. The
1. Territory redistributive function of the state becomes crucial in the
2. People context of economic globalization where the goal of neo-
3. Sovereign Power liberal economists and institutions is precisely to dismantle
local state oversight.
GLOBALIZATION’S IMPACT ON THE STATE The global south is not relevant for those who live in
Factors that lead to the increase and acceleration of the countries traditionally associated with it but also signifies
movement of people, information, commodities, and that the south continues to be globalized. It also represents
capital. emergent forms of progressive cosmopolitanism. It is an
1. Lifting of trade barriers always emergent and provisional internationalism.
2. Liberalization of world capital markets ○ The International Monetary Fund (IMF) regards
3. Swift technological progress (information “economic globalization” as a historical process
technology, representing the result of human innovation and
4. transportation, and communication) technological progress.
The following are the problems afflicting the world today ○ New Internationalism in the Global South. The ills of
that are increasingly transnational in nature and those that the global south are being globalized. Underdeveloped
cannot be solved at the national level or State to State states of the global south are ravaged by merciless IMF
negotiations: policies in the 1980s.
1. Poverty ○ Asian Regionalism refers to the decentralization of
2. Environmental pollution political powers or competencies from a higher to a
3. Economic crisis lower political level. More specifically, it distinguishes
4. Organized crime and terrorism. between top-down from bottom-up regionalism where
The following are the effects of greater economic top-down regionalism describes the decentralization of
and social interdependence on national decision making competencies or the establishment of regional
 institutions Blyth estate while bottom-up includes all been a key part of the economy with highly successful
patterns of endeavors towards political software development exports.
decentralization from within the particular region. 4. India and China have also become major sources of
international migrant labor, which is also one of the
Views of Globalization in the Asia Pacific and South Asia fundamental characteristics of the era of globalization.
○ The Asia Pacific and South Asia refer together to the This includes the migration of highly skilled labor into
regions of East (or Northeast) Asia, South Asia, the the high-tech industry based in Silicon Valley.
Pacific Islands, and South Asia. It includes some of the 5. The trend of the rising regional free arrangements in
world's most economically developed states such as the Asia Pacific and South Asia. This kind of regionalism
Japan, South Korea, Singapore, and Taiwan, and highly would mean as a bulwark to globalization or as
impoverished countries such as Cambodia, Laos, and compatible and even pushing forward the process of
Nepal. global economic integration.
○ A foreign policy shift called “Pacific Pivot” was 6. In culture and globalization in the region, the source of
implemented by the United States to commit more a wide variety of cultural phenomena that have spread
resources and attention to the region. This shift which outward to the West and the rest of the world is the
is also called the “Atlantic Century” was termed region.
“Pacific Century” by US Secretary of States Hilary
Clinton. He stated that the Asia Pacific has become a THE REGION-MAKING IN SOUTHEAST ASIA AND MIDDLE-
key driver of global politics. It is the home to several CLASS FORMATION:
key allies and important emerging powers like China, The Third Waves
India, and Indonesia. The main engines of hybridization are explained by the
successive waves of regional economic development that is
ASIA PACIFIC AND SOUTH ASIA’S IMPACT ON powered by developmental states and national and
GLOBALIZATION transnational capitalism that nurtured sizeable middle
Asia was the central global force in the early modern world classes that share a lot in common in terms of professional
economy. It was the site of the most important trade routes lives and lifestyles, fashion, leisure, and entertainment, in
and in some places more advanced in technology than the their aspirations and dreams.
West such as science and medicine. Colonies in the Asia The first wave of regional economic development took
Pacific and South Asia influenced the West and vice versa. place
1. Japan embarked on procuring raw materials like coal in Japan from the mid-1950s to the early 1970s and led to
and iron at unprecedented economies of scale allowing the
them to gain a competitive edge in the global emergence of a middle-class by the early 1970s.
manufacturing market as well as globalized shipping The second wave took place between the 1960s and 1980s
and procurement patterns that other countries in South Korea, Taiwan, Hongkong, and Singapore and led to
modeled. the formation of middle-class societies in these countries by
2. China pursues a similar pattern of development at the 1980s.
present and is now the world’s largest importer of basic
raw materials such as iron and surpassed Japan, the US, Two salient points in the history of east Asian middle-class
and Europe in steel production. formation.
3. India opened up and emphasized an export-oriented 1. Middle-class formation in Southeast Asia was driven by
strategy. Textiles and other low-wage sectors have global and regional transnational capitalism working in
alliance with national states while middle-class Japan,
2. South Korea, and Taiwan were created by Japan, then in South Korea, Taiwan, Hongkong,
developmental states and national capitalism. Singapore, Thailand, Malaysia, Indonesia, and the
3. New urban middle classes in East Asia, whether in Philippines, and now in China.
Japan, South Korea, Taiwan, or Southeast Asia, with ○ Japanese, Chinese, South Korean, Islamic, and other
their middle-class jobs, education, and income, have in ways of life, are often mediated by the market. The
turn created their own new lifestyles commensurate political consequences of the rise of East Asia middle
with their middle-class income and status. classes vary.
○ The cultural and political hegemony of the South
Middle Classes in the Philippines Korean middle class is embodied by a single
New urban middle classes emerged in the post-1986 generation, while that of the Taiwanese middle class
Philippines. They were created through growth in retail manifests itself in the political assertiveness of an
trade, ethnic majority. Southeast Asian middle classes also
manufacturing, banking, real estate development, and an exemplify the diversity and complexity of class
expanding range of specialist services such as accounting, formation.
advertising, computing, and market research. ○ Thai middle classes are coherent socially, hegemonic
culturally, and ascend politically; their counterparts
REGIONAL IMPLICATIONS OF MIDDLE-CLASS FORMATION Malaysia and Indonesia are socially divided, dependent
IN EAST ASIA on the state, politically assertive, and vulnerable; and
○ Complex historical forces shaped new urban middle the Philippine middle classes are socially coherent, less
classes. They are products of regional economic dependent on the state, culturally ascendant, but
development, which has taken place in waves under politically vacillating.
the U.S. informal empire over a half century, first in