CONTEMPORARY WORLD

MR. SAM BARBO, JR.

 GLOBALIZATION
Refers to the processes by which more people across large
distance become connected in more different ways.
Deterritorialization the process through which the constraints
of physical space lose their hold on social relations.
Is an interaction of people and primarily an economic process
of integration which has social and cultural aspects as well.
 GLOBALIZATION

The process by which capitalism expands across the globe

as powerful economic actors seek profit in global markets
and impose their rules everywhere.
Also known as Neoliberalism.
 GLOBALIZATION
Means different things to different people.
1. Korean Pentecostal missionary – new opportunity to spread
the faith and convert lost souls abroad.
2. Dominican immigration in the U. S. – growing new roots
while staying deeply involve in the home village.
3. Indian television viewer – sampling variety of new shows,
some adopted from foreign formats.
 GLOBALIZATION
Means different things to different people.
4. Chinese apparel worker – chance to escape rural poverty by
cutting threads off designer jeans.
5. American executive – managing a far-flung supply chain to
get products to stores.
6. Filipino global justice advocate – rules of global game that
favor the rich North over the South poor.
 THEORIES OF GLOBALIZATION

1. World-System Theory – a perspective that globalization is essentially

the expansion of the capitalist system around the globe.
 Capitalist world-system originated in the 16th century, when Europeans traders
established enduring connections with Asia Africa and the America.
 The core of the system, the dominant classes were supported by strong states as
they exploited labor, resources, and trade opportunities, most notably in
peripheral areas.
 Central purpose is capital accumulation by competing firms, which go through
cycles of growth and decline.
 THEORIES OF GLOBALIZATION

2. World Polity Theory – state remains an important component of world

society, but primarily attention goes to the global cultural and
organization.
 All-encompassing world-polity and its associated with world culture, which
supplies a set of cultural rules or scripts that specify how institution around the
world should deal with common problem.
 Key elements is a general, globally legitimated model of how to form a state.
 Carriers of global principles, these organizations then help to build and elaborate
world culture and world society further.
 THEORIES OF GLOBALIZATION

3. World Culture Theory – the world culture is indeed new and important,
but less homogeneous than world polity.
 Globalization is a process of relativization.
 World society thus consists of a complex set of relationships among multiple
units in the global field.
 Globalization compresses the world into a single entity, and people necessarily
become more and more aware of their relationship to this global presence.
 Central importance to this process is the problem of globality : how to make
living together in one global system meaningful or even possible.
 EMERGENCE OF GLOBALIZATION
 Globalization has been happening for a long time. (16th century Europe as the
original source.)
 Europeans established worldwide trade connections on their own terms, brought
their culture to different regions by settling vast areas, and defined the ways in ways
the different people were to interact with each other.
 Late 19th century the period of intense globalization, when million migrated, trade
generally expanded and new norms and organization came to govern international
conduct.
 In the 20th century, the movement of people, goods and finance across national
borders was at least as free and significant as it is today.
 In the 2nd half of 20th century was significant period of globalization in its own right.
World War II gave globalization a new impetus. Obscured by Cold War divisions, the
transformation of world society – in terms of linkages, institutions and culture and
consciousness was nevertheless profound.
GLOBALIZATION AND THE EXPANDING MARKET

• Expanding Market - is the process of offering a product or service to a wider

section of an existing market or into a new demographic, psychographic or
geographic market.
• An economic system operating along capitalist lines now encompasses most
region of the world,and economic motivates always have been important in
creating global linkages, globalization takes place in many sphere for many
reasons.
• Economy may be a driving force in creating global change in some periods,
but it effects depend on what happens outsde of world market.
HOMOGENEOUS WORLD

• Certain activities or institutions become global, they

must displace existing local variable activities and
institution.
• If there are more linkages, global institutions, and
global values, presumably this means that more
people will have more in common.
REASONS WHY GLOBALIZATION WILL NOT MAKE THE
WORLD HOMOGENEOUS
1. General rules and models are interpreted in light of local circumstances.
 Regions respond to similar economic constraints in different ways; countries
still have great leeway in structuring their own policies; the same television
program means different things to audiences; such as McDonald's adopts its
menu and marketing to local tastes.
2. Growing similarity provokes reactions.
 Advocates for many cultures seek to protect their heritage or assert their
identity. (action of indigenous people to claim their right to cultural survival.
REASONS WHY GLOBALIZATION WILL NOT MAKE THE
WORLD HOMOGENEOUS

3. Cultural and political differences have themselves

become globally valid.
The notion that the people and countries are entitled to their
particularity of distinctiveness is itself part to global culture. the
tension between homogeniety and heterogeniety is integral of
globalization.
IS GLOBALIZATION HARMFUL

• Globalization may be harmful to the well-being (fears) of

individuals, countries and cultures :
1. If the market is the driving force - it is bound to exacerbate (worsen)
inequality by creating winners and losers.
2. If makes world homogeneous - many cultures are in troubles
3. Loss of local autonomy may mean that the more people will be vulnerable
(defenseless) to economic swings, environmental degradation, and
epidemics.
INTERDISCIPLINARY UNDERSTANDING OF
GLOBALIZATION
1. Political Scientist
 political activity incresingly takes place at the global level.
 Uder globalization, politics can take place above the state through political integration schemes
such as the European Union, the ASEAN integration where Philippines is involved though
intergovernmental organizations such as the IMF, the WB, and the WTO.
 Political activity can also transcend national borders through global movements and Non-
Governmental Organization (NGO)
 Civil society organizations act globally by forming alliances with organizations in other countries,
using global communication system, and lobbying international organizations and actors directly,
instead of working through their national governments.
INTERDISCIPLINARY UNDERSTANDING OF
GLOBALIZATION
2. Economist
 Integration through international trade of markets in goods and services as reflected in
variety of possible measures (direct measures of barriers such as tariffs and transport
costs, trade volumes and price related measures).
 foreign direct investment, increased trade in intermediate product, international
outsourcing of services like the call center industry, and international movement of
persons like our OFWs.
 Include the international spread of ideas, from consumer tastes (like Coke and Hershey's)
to intellectual ideas like technology patents and management principles and accounting
standards.
INTERDISCIPLINARY UNDERSTANDING OF
GLOBALIZATION
3. Sociologist
 an ongoing process that involves interconnected changes in the cultural and social
spheres.
 it involves the spread and diffusion of ideologies-values, ideas, norms, beliefs and
expectations - that foster, justify and provide legitimacy for economic and political
globalization.
 fuelled by globally integrated communication systems like social media, media coverage
of the world's elite and their lifestyles, the movements of people around the world via
business and leisure travel, and the expectations of these travellers that the host
societies will provide amenities and experiences that reflects their own cultural norms.
INTERDISCIPLINARY UNDERSTANDING OF
GLOBALIZATION
4. Historian
 historian follow rather than lead theway.
 Globalization is not new as a phenomenon but the word itself took hold only
recently which records shows first use in English in 1930 and shows that usage
soared suddenly in 1990's.
 Globlization defined most succintly as the interconnection of places far distant
from each other.
 Globalization is still too muc entangled with world history, global history and
transnational history.
MARKET GLOBALIZATION

• an idea that reflects the concepts of

globalization.
• seeks to endow globalization with free market
norms and neoliberal meanings.
FIVE CORE CLAIMS OF MARKET GLOBALISM
1. Globalization is about the liberalization and global integration of markets.
 is anchored in the neo-liberal ideal of the self-regulating market as the normative basis
for a future global order.
 vital functions of free market - its rationality and efficiency, as well as its alleged ability to
bring about greater social integration and material progress - can only be realized in a
democratic society that values and protects individual freedom.
 the more you let market forces rule and the more you open your economy to free trade
and competition, the more efficient your ecnomy will be.
 Globalization means the spead of free-market capitalism to virtually every country in the
world.
FIVE CORE CLAIMS OF MARKET GLOBALISM
2. Globalization is inevitable and irreversible.
 Globalization reflects the spread of irreversible market forces driven by technoligical
innovations that make the global integration of national economies inevitable.
 market globalism is almost intertwined with the deep belief in the ability of markets to
use new technologies to solve social problems far better than any alternative course.
 Governments, political parties, and social movements had no choice but to adjust to the
inevitability of globalization.
 since the emergence of a world based on the primacy of market values reflects the
dictates of history, resistance would be unnatural, irrational and dangerous.
FIVE CORE CLAIMS OF MARKET GLOBALISM
3. Nobody is in charge of globalization.
 liberal concept of the self-regulating market.
 the link between globalization-market and the adjacent idea of leaderlessness is simple : if the
undisturbed working of the market indeed preordain a certain curse of history, then globalization
does not reflect arbitrary agenda of a particular social class or group.
 Globalists are not in charge in the sense of imposing their own politial agenda on people. rather,
they merely carry out the unalterable imperatives of a transcendental force much larger than
narrow partisan interest.
 like the market-globalist rhetoric of historical inevitability, the portrayal of globalization as a
leaderless process seeks to both depoliticize the public debate on the subject and demobilize
global justice movements.
FIVE CORE CLAIMS OF MARKET GLOBALISM
4. Globalization benefits everyone.
 the adjacnt idea of benefits for everyone is usually unpacked in material terms such as
economic growth and properity.
 when linked to globalism's peripheral concept, progress, the idea of benefit for everyone
taps not only into liberalism's progressive worldview, but also draws on the powerful
socialist vision of establishing an economic paradise on earth - albeit in the capitalist
form of a worlwide consumerist utopia.
 television, radio and internet frequently place existing economic, political, and social
realities within a neo-liberal framework; sustaining the claim that globalization benefits
everyone through omnipresent affirmative images, websites, banner advertisements,
and sound bites.
GLOBALIZATION EXPERIENCE
• no one experiences globalization in all its complexity but globalization is
significant insofar as it reshapes the daily lives of billion of people.
• experiencing globalization, does not mean that some abstract, impersonal
force overwhelms individuals.
• people participate and respond in different ways.
• they can shape, resist, absord, or try to avoid globalization.
• they can seek opportunity in it, feel the harm of it, or lament the power of it.
• globalization is a central reality; for others, it is still on the margins of their
lives.
• in short no experience of globalization.
FIVE CORE CLAIMS OF MARKET GLOBALISM

5. Globalization furthers the spread of democracy in the

world.
links globalization and market to adjacent concept of
democracy, which also plays a significant role in liberalism,
conservatism, and socialism.
globalists tend to treat freedom, free trade, and democracy as
synonymous.
GLOBALIZATION EXPERIENCE

• formation of a new world society doe not involve all people in the same way,
and it does not create the same texture in everyone's life.
• but there are some commonalities in the global experience of globalization.
• to one degree of another, globalization is real to almost everyone.
• it envelope everyone in new institution.
• it poses a challenge, in the sense that even marginally affected groups must
take a stance toward the world.
FROM LAISSEZ FAIRE TO NEOLIBERALISM

• Laissez faire - is the belief that economies and businesses function best
when there is no interference by the government. It comes from the French,
meaning to leave alone or to allow to do. It is one of the guiding principles of
capitalism and a free market economy.
• Neoliberalism - a theory of political economic practices that proposes that
human well-being can best be advance by liberating individual
entrepreneurial freedoms and skills within an institutional framework
characterized by a strong private property rights, free markets and free trade.
THE ROLE OF THE STATE IN NEOLIBERALISM
1. to create and preserve an isntitutional framework appropriate to such
practice.
2. to guarantee, for example the quality and integrity of money
3. set up those military, defense, police, and legal structures and functions
required secure private property rights and to guarantee, by force if need
be, the proper functioning of markets.
4. if markets do not exists (in areas such as land, water, education, health
care, social security or environmental pollution) then they must be
created, by the state, if necessry.
5. state interventions in markets must be kept to a bare minimum.
CHARACTERISTICS OF NEOLIBERALISM
1. Government must limit subsidies
2. Make a reforms to tax laws in order to expand tax base
3. Reduce deficit spending
4. Limit protectionism
5. Open markets
6. Removal of fixed exchange rates
7. Back deregulation
8. Privitazation
PRIVATIZATION
• is the process of transferring an enterprise or industry from the public sector
to the private sector.
• some of the government owned and controlled corporations were already
transferred from public to private sector:
1. Philippine Airlines (PAL)
2. Philippine Long Distance Corporation (PLDT)
3. Manila Electric Company (Meralco)
4. Manila Waterworks and Sewerage System (MWSS) now Maynilad Water Services and
Manila Water Company.
THE GLOBAL ECONOMY

• ECONOMIC GLOBALIZATION
the increasing integration of economies around the world
particularly through the movement of goods, services and
capital across borders.
the movement of people and knowledge across international
borders.
ECONOMIC GLOBALIZATION V.
INTERNATIONALIZATION
• the latter is about the extension of economic activities of nation state across
borders while the former is functional integration between internationally
dispersed activity.
• economic globalization is rather a qualitative transformation that just a
quantitative change.
• Economic term globalization is nothing but a process making the world
economy an organic system by extending transnational eonomic process and
economic relations to more and more countries and deepening the economic
interdependence among them.
INTERCONNECTED DIMENSIONS OF ECONOMIC
GLOBALIZATION

1.The globalization of trade of goods and services

2.The globalization of financial and capital markets
3.The globalization of technology and communications
4.The globalization of production
ECONOMIC GLOBALIZATION PHENOMENON
• Silk Road – the best known example of archaic
globalization, which connected Asia, Africa and Europe.
• Adopting Fernand Braudel’s innovative concept of long
duration, i.e. slow moving, almost imperceptible,
framework for historical analysis.
• World system analyst identify the origin of modernity and
globalization with the birth of 16th century long-distance
trade.
THE INTERNATIONAL MONETARY SYSTEM
• The most central area in international economy (important
transactions in the international economy all depend on the
availability of money and credit.)
• The IMF's 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.
• Is a system that forms rules and standards for facilitating
international trade among the nations in the world.
THE INTERNATIONAL MONETARY SYSTEM
• Functions
1. Current account surplus
2. Capital accounts
3. Balance of payments
4. Statiscal discrepancy
5. Change in Reserves Requirements
 The total of a country’s account, capital account, statistical discrepancy
and change of reserves = zero – balance of payments
THE INTERNATIONAL MONETARY SYSTEM

• Functions
1. Current account surplus
 A current account surplus indicates that the value of a country's net foreign assets
(i.e. assets less liabilities) grew over the period in question, and a current
account deficit indicates that it shrank. Both government and private payments are
included in the calculation.
 When credits exceed debits, the country enjoys a current account surplus, meaning
that the rest of the world is in effect borrowing from it. A current account
surplus increases a nation's net assets by the amount of the surplus.Capital
accounts
THE INTERNATIONAL MONETARY SYSTEM
• Functions
2. Capital accounts
 The capital account is part of a country's balance of payments. It
measures financial transactions that don't currently affect a country's
income, production, or savings. Their value is based on what they are
expected to produce in the future.
 is the part of the balance of payments which records net
changes in a country's financial assets and liabilities.
THE INTERNATIONAL MONETARY SYSTEM
• Functions
3. Balance of payments
 the difference in total value between payments into and out of a country over a period.
 These transactions consist of imports and exports of goods, services and capital, as well
as transfer payments such as foreign aid and remittances.
 is the record of all international financial transactions made by a country's residents. ...
A balance of payments deficit means the country imports more goods, services and
capital than it exports. It must borrow from other countries to pay for its imports.
 The main body of the balance of payments therefore informs us about a state’s over-all
position in terms of financial assets and liabilities.
THE INTERNATIONAL MONETARY SYSTEM
• Functions
4. Statistical discrepancy
 is equal to gross domestic product less gross domestic income. These two
measures are, in principle, the same. The difference reflects less than
perfect source data.
 is the difference between demand and supply in national accounts. Even
though by definition the items should be equal in the national economy,
they usually deviate from one another due to deviation
in statistical sources and they are not forced to be equal in the Finnish
system of accounts.
THE INTERNATIONAL MONETARY SYSTEM
• Functions
4. Change in Reserve Requirements
The reserve requirement is the proportion of customers'
deposits a bank is required by the Fed to hold
in reserve without loaning out. .
 required reserve ratio is sometimes used as a tool in monetary
policy, influencing the country's borrowing and interest rates by
changing the amount of funds available for banks to make loans
with.
THE INTERNATIONAL MONETARY SYSTEM

• CENTRAL Bank
A central bank, reserve bank, or monetary authority is an
institution that manages a state's currency, money supply,
and interest rates.
Each country has a central bank (oversees the monetary system
the country)
FOUR MONETARY REGIME

1.Classical gold standard (1870 – 1914)

2.Gold exchange standard
3.Bretton Woods system (1944-1973)
4.Non-system of floating and fixed exchange rate – 1973 to
present
FOUR MONETARY REGIME

1. Classical gold standard (1870 – 1914)

 the classical standard was a fixed rate regime
THE INTERNATIONAL MONETARY FUND

• The IMF’s fundamental mission is to 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 INTERNATIONAL MONETARY FUND

• Surveillance
The IMF oversees the international monetary system
and monitors the economic and financial policies of its
189 member countries. As part of this process, which
takes place both at the global level and in individual
countries, the IMF highlights possible risks to stability
and advises on needed policy adjustments.
THE INTERNATIONAL MONETARY FUND

• Lending
The IMF provides loans to member countries
experiencing actual or potential balance of payments
problems to help them rebuild their international
reserves, stabilize their currencies, continue paying for
imports, and restore conditions for strong economic
growth, while correcting underlying problems.
THE INTERNATIONAL MONETARY FUND

• Capacity Development
The IMF works with governments around the
world to modernize their economic policies and
institutions, and train their people. This helps
countries strengthen their economy, improve
growth and create jobs.
ASSIGNMENT
• 1. discuss the forms of integrations.
• 2. what are the legal basis of European Union & ASEAN?
• 3. What is Interstate System?
• 4. Discuss the idea of Global Governance.
• 5. discuss the six organs of UN and its responsibilities
• 6. Discuss the martime dispute in West Philippine Sea.
• 7. Discuss the Asian REgionalism.